\
`
`Case 2:l4—c—v--01661-ES—JAD ‘Document 21$;meGigi 80/26/14 Pagé~1~of 66 PageID: 163
`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 1 of 66 PageID: 163
`
`\I\(.3’
`19910737! in: nbmn
`ADMINISTRATION OF COURTS
`
`Office Of the Legal Adviser
`Legal Assistance to Foreign Countries
`
`rowan ram-I nnw'v
`mat mv‘mb vvvb npbnnn
`
`Date: 22/05/ I 4
`
`File: l-252/14
`
`John Pierceall, Attorney
`Ancillary Legal Corporation
`74 Goldrush Circle
`
`Atlanta, GA 30328
`
`USA
`
`Dear Sir/Madam,
`
`Subject: Request for Service of Documents
`
`Your request for service of documents upon Coolvision Ltd. has been executed.
`
`Please find attached the certificate.
`
`Please forward the attached documents to the proper authorities
`
`Sincerely,
`Sternthal'Daniel
`Legal Assistance to Foreign Countries
`
`
`
`95464 0"7W1'1’ 22 WW): ’DJD ’n'l
`
`Kanfey Ncsharim st 22. Jerusalem. 95464. Israel
`02-6556887 :ops
`02-6556712 :"w
`E-mail: F0reign.Countries@court.gov.il
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 2 of 66 PageID: 164
`Case 2:14-cv-01661-ES—JAD Document 20 Filed 08/26/14 Page 2 of 66 PagelD: 164
`
`Reverse of the request
`CERTIFICATE
`
`The undersigned authority ha
`Convention,
`
`s the honor to certify, in conformity with Article 6 of the
`
`.11 l-thtfl, 15%me salami“
`.
`
`-A .1
`
`W w
`
`ere. '
`
`- In one of the following methods authorized by Article 5:
`
`a) In accordance with the provisions of sub-paragraph (a) ofthe first paragraph of
`Article 5 of the Convention*.
`
`The documents referred to in the request have been delivered to:
`
`0
`
`0
`
`identity and description of person:
`
`relationship to the addressee: Authorized Signer
`
`In conformity with the second paragraph
`applicant is requested to pay or reimburse
`statement*.
`
`of Article 12 of the Convention, the
`the expenses detailed in the attached
`
`Annexes
`
`Documents returned: ...............................................................................
`
`In appropriate cases, documents establishing the service:
`
`
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 3 of 66 PageID: 165
`Case 2:14-cv-01661-ES—JAD Document20 Filed 08/26/14 F79e3 of66 PageID: 165
`4 252M
`$1?
`if? 8"!»
`REQUEST FOR SERVICE ABROAD
`WW9”?
`
`OF JUDICIAL OR EXTRAJUDICIAL DOCUMENTS
`
`/
`
`Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or
`Commercial Matters, signed at The Hague, the 15th of November 1965
`
`
`Identity and address of the applicant
`
`Address of receiving authority
`
`Fax: 972 2 655 6954
`
`John Pierceall, Attorney
`Ancillary Legal corporation
`74 Goldrush Circle
`Atlanta,GA 30328, USA
`John.pierceall@ancillarylegal.com
`404-459-8006
`(FaX) 404-459-0916
`
`The Director of Courts
`Directorate of Courts
`22 Kanfei Nesharin St.
`Jerusalem 95464
`Israel
`Phone: 972 2 655 6847
`
`The undersigned applicant has the honour to transmit -- in duplicate -- the documents listed below
`and, in conformity with Article 5 of the above-mentioned Convention, requests prompt service of
`one copy thereof on the addressee, i.e.
`Coolvision Ltd.
`
`6 Ha-barzel St.,
`
`Ramat Hachayal,
`Tel Aviv, Israel
`
`(x) (a) in accordance with the provisions of sub-paragraph (a) of the first paragraph of
`Article 5 of the Convention.*
`
`( )(b) in accordance with the following particular method (sub-paragraph (b) of the first
`
`paragraph of Article 5):*
`
`( )(c) by delivery to the addressee, if the addressee accepts it voluntarily (second paragraph of
`
`Article 5)*
`
`The authority is requested to return or to have returned to the applicant a copy of the documents -
`and of the annexes * - with a certificate as provided on the next page.
`
`List of documents:
`
`Summons, First Amended Complaint for Patent Infringement, Complaint for Patent
`Infringement, Certification Pursuant to Local Rule 11.2, Plaintiff WAG Acquisition, LLC’s
`Corporate Disclosure Statement, and attached Exhibits
`
`Done at Atlanta, GA, USA, April 29, 2014
`
`
`Signature and!
`
`
`ohn Pierceall. Esq.. Ancillary Legal Corporation.
`74 Goldrush Circle, Atlanta, GA 30328 USA
`404-459-8006, john.pierceall@ancillarylegal.com
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 4 of 66 PageID: 166
`Case 2:14-cv-01661-ES—JAD Document 20 Filed 08/26/14 Page 4 of 66 PagelD: 166
`
`CERTIFICATE
`
`The undersigned authority has the honour to certify, in conformity with Article 6 of the
`
`Convention,
`
`1) * that the document has been served
`
`- the (date)
`
`- at (place, street, number)
`
`- in one of the following methods authorized by Article 5:
`
`(
`
`) (a) in accordance with the provisions of sub-paragraph (a) of the first paragraph
`of Article 5 of the Convention.*
`
`(
`
`) (b) in accordance with the following particular method:*
`
`(
`
`) (c) by delivery to the addressee, who accepted it voluntarily.*
`
`The documents referred to in the request have been delivered to:
`
`- (identity and description of person)
`
`- relationship to the addressee (family, business or other):
`
`2) * that the document has not been served, by reason of the following facts:
`
`In conformity with the second paragraph of Article 12 of the Convention, the applicant is
`
`requested to pay or reimburse the expenses detailed in the attached statement. *
`
`--ANNEXES-Documents returned:
`
`In appropriate cases, documents establishing the service:
`
`Done at . the
`
`Signature and/or stamp
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 5 of 66 PageID: 167
`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 5 of 66 PagelD: 167
`
`SUMMARY OF THE DOCUMENT TO BE SERVED
`
`Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or
`Commercial Matters,
`signed at The Hague, the 15th of November 1965
`(Article 5, fourth paragraph)
`ldentité et adresse du destinataire [Identity and address of the addressee /
`
`Coolvision Ltd.
`
`6 Ha—barzel St.,
`
`Ramat Hachayal,
`Tel Aviv, Israel
`
`IMPORTANT
`LE DOCUMENT Cl-JOINT EST DE NATURE JURIDIQUE ET PEUT AFFECTER VOS DROITS
`
`ETOBLIGATIONS. LES ((ELEMENTS ESSENTIELS DE L'ACTB> VOUS DONNENT
`QUELQUESINFORMATIONS SUR SA NATURE ET SON OBJET. |L EST TOUTE FOIS
`INDISPENSABLE DE LIREATTENTIVEMENT LE TEXTE MEME DU DOCUMENT. IL PEUT
`ETRE NECESSAIRE DE DEMANDER UN AVIS JURIDIQUE.
`
`SI VOS RESSOURCES SONT INSUFFISANTES, RENSEIGNEZ-VOUS SUR LA POSSIBILITE
`D'OBTENIR L'ASSISTANCE JUDICIAIRE ET LA CONSULTATION JURIDIQUE SOIT DANS
`VOTRE PAYS SOIT DANS LE PAYS D'ORIGINE DU DOCUMENT.
`
`LES DEMANDES DE RENSEIGNEMENTS SUR LES POSSIBILITES D'OBTENIR
`L'ASSISTANCE JUDICIAIRE OU LA CONSULTATION JURIDIQUE DANS LE PAYS D'ORIGINE
`PEUVENT ETRE ADRESSEES A:
`
`IMPORTANT
`THE ENCLOSED DOCUMENT IS OF A LEGAL NATURE AND MAYAFFECT YOUR RIGHTS
`AND OBLIGATIONS. THE 'SUMMARY OF THE DOCUMENT TO BE SERVED' WILL GIVE YOU
`SOME INFORMATION ABOUT ITS NATURE AND PURPOSE. YOU SHOULD HOWEVER
`READ THE DOCUMENT ITSELF CAREFULLY. IT MAY BE NECESSARY TO SEEK LEGAL
`ADVICE.
`
`IF YOUR FINANCIAL RESOURCES ARE INSUFFICIENT YOU SHOULD SEEK INFORMATION
`ON THE POSSIBILITY OF OBTAINING LEGAL AID OR ADVICE EITHER IN THE COUNTRY
`WHERE YOU LIVE OR IN THE COUNTRY WHERE THE DOCUMENT WAS ISSUED.
`
`ENQUIRIES ABOUT THE AVAILABILITY OF LEGAL AID OR ADVICE IN THE COUNTRY
`WHERE THE DOCUMENT WAS ISSUED MAY BE DIRECTED TO:
`
`ll est recommandé que les mentions imprimées dans cette note solent redigees en langue
`francaise et en langue anglaise et le cas échéant, en outre, dans la langue ou l'une des langues
`officielles de I'Etat d'origine de l'acte. Les blancs pourraient etre remplis soit dans la langue de
`I'Etat oil le document doit etre adresse, soit en langue francaise. soit en langue anglaise.
`
`It is recommended that the standard terms in the notice be written in English and French and
`where appropriate also in the official language, or one of the official languages of the State in
`which the document originated. The blanks could be completed either/n the language of the State
`to which the documents is to be sent, or in English or Fr
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 6 of 66 PageID: 168
`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 6 of 66 PagelD: 168
`
`Name and address of the requesting authority:
`John Pierceall, Attorney, Ancillary Legal Corporation
`74 Goldrush Circle
`
`Atlanta, GA 30328 USA
`
`Particulars of the parties: *
`WAG Acquisition, LLC, Plaintiff by Attorneys Ronald Abramson and David G. Liston,
`Lewis Baach PLLC, The Chrysler Building, 405 Lexington Avenue, New York, New York
`10174 USA, Telephone number 212-826-7001 vs. Coolvision Ltd. et al., 6 Ha-barzel St.,
`Ramat Hachayal, Tel Aviv, Israel
`Case filed in the United States District Court, District of New Jersey; Case number 2:14-
`CV-0l661-ES-JAD
`
`JUDICIAL DOCUMENT **
`
`Nature and purpose of the document:
`To initiate complaint for patent infringement
`
`Nature and purpose of the proceeding and, where appropriate, the amount in dispute:
`Plaintiff demands for a trial by jury, and requests an entry of judgment in its favor and
`against the defendants as follows: declaration that defendants have each infringed United
`States Patent Nos. 8,122,141, 8,327,011, 8,185,611 and 8,364,839; declaration that each of
`defendants’ infringement has been willful, and award plaintiff enhanced damages as a
`result under 35 U.S.C. § 284, jointly and severally against defendants; permanently
`enjoining defendants and all those in participation with them from continued infringement;
`to award the plaintiff past and future damages arising out of defendants infringement,
`together with prejudgment and post-judgment interest, in an amount according to proof,
`jointly and severally against defendants; to award plaintiff attorneys’ fees, costs, or other
`damages pursuant to 35 U.S.C. §§ 284 or 285 or as otherwise permitted by law, jointly and
`severally against defendants; and for such other costs and further relief as the Court may
`deem just and proper
`
`Date and place for entering appearance: **
`You must file an answer to the complaint in this action with the Court at 225 Cadman Plaza
`E., New York, New York 11201 USA and serve a copy of your answer on the plaintiff’s
`attorneys Ronald Abramson and David G. Liston at 405 Lexington Avenue, New York, New
`York 10174 USA within 21 days after service of the documents, not including the day you
`received them
`
`Time limits stated in the document: **
`
`File your answer with the Court and serve a copy on the plaintiff’s attorneys within 21 days
`after receiving the documents (not including the day you received them)
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 7 of 66 PageID: 169
`Case 2:14-cv—01661-ES—JAD Document 20 Filed 08/26/14 Page 7 of 66 PageID: 169
`Case 2:14-cv—01661—ES-JAD Document 3 Filed 03/17/14 Page 1 of 2 PagelD: 44
`
`UNITED STATES DISTRICT COURT
`DISTRICT OF NEW JERSEY
`
`WAG ACQUISITION, L.L.C.,
`Plainnfl
`
`V.
`
`SUMMONS IN A CIVIL CASE
`
`SOBONITO INVESTMENTS, LTD., ET AL.,
`Defendant
`
`CASE NUMBER: 2:14-CV—01661~ES-JAD
`
`T0: (Norrie and address ofDefendant):
`
`A law's11ithas been filed against you.
`Within 2d days after service of this summons on you (not counting the day you received it) — or 60 days if
`you are the United States or a United States Agency, or an office or employee of the United States described in
`Fed. R. eiv. P. 12 (a)(2) or (3) - you must serve on the plaintiff an answer to the attached complaint or a
`motion under rule 12 of the Federal Rules of Civil Procedure. The answer or motion must be served on the
`plaintiff or plaintiffs attorney, whose name and address are:
`
`Ifyou fail to respond, judgment by default will be entered against you for the reliefdemanded in the
`complaint. You also must file your answer or motion with the court.
`
`WILLIAM T. WALSH
`
`CLERK.
`
`(By) DEPUTY CLERK
`
`LEROY DUNBAR
`
`ISSUED 0N 2014—03—1714:3s:40.o, Clerk
`usoc mo
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 8 of 66 PageID: 170
`Case 2:14-cv-01661-ES—JAD Document 20 Filed 08/26/14 Page 8 of 66 PagelD: 170
`
`Case 2:14-cv-01661-ES-JAD Document 5 Filed 04/24/14 Page 1 of 16 PagelD: 47
`
`Ronald Abramson
`
`David G. Liston
`
`LEWIS BAACH pllc
`The Chrysler Building
`405 Lexington Avenue
`New York, NY 10174
`
`Tel: (212) 826-7001
`
`Attorneysfor Plaintiff
`
`FOR THE DISTRICT OF NEW IERSEY
`
`
`UNITED STATES DISTRICT COURT
`
`WAG ACQUISITION, L.L.C.,
`
`Plaintiff,
`
`Vi
`
`SOBONITO INVESTMENTS, LTD.,
`COOLVISION LTD., I.M.L. SLU, and
`DOES 1-20,
`
`Defendants.
`
`
`
`Civil Action No.: 2:14-Cv-01661-ES-IAD
`
`FIRST AMENDED COMPLAINT
`
`FOR PATENT INFRINGEMENT
`
`AND IURY TRIAL DEMAND
`
`C MPLAINT F R PA ENT I FRIN EMENT
`
`Plaintiff WAG ACQUISITION, L.L.C., for its complaint against Defendants,
`
`alleges infringement of United States Patent Nos. 8,122,141, 8,327,011, 8,185,611,
`
`and 8,364,839 [the "patents-in-suit”). Plaintiff alleges that Defendants directly and
`
`indirectly infringe the patents-in-suit in their Internet delivery of live adult video
`
`web cam performances, as more particularly specified herein.
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 9 of 66 PageID: 171
`Case 2:14-cv-01661-ES—JAD Document 20 Filed 08/26/14 Page 9 of 66 PageID: 171
`
`Case 2:14-cv-01661—ES-JAD Document 5 Filed 04/24/14 Page 2 of 16 PageID: 48
`
`2
`
`HE
`
`RT
`
`1. Plaintiff WAG Acquisition, L.L.C. is a New Jersey limited liability company
`
`with its principal place of business at 3 Gold Mine Road, Suite 104, Flanders, New
`
`Jersey 07836.
`
`2. On information and belief, Defendant Sobonito Investments, Ltd.
`
`(“Sobonito”) is a corporation organized under the laws of Cyprus with its principal
`
`place of business in Cyprus and a business address at 41 East 11th Street, New York,
`
`New York 10003.
`
`3. On information and belief, Defendant Coolvision Ltd. (“Coolvision") is a
`
`corporation organized under the laws of Israel with its principal place of business at
`
`6 Ha-barzel St., Ramat Hachayal, Tel AviV, Israel.
`
`4. On information and belief, Defendant I.M.L. SLU ("Imlive") is a company
`
`organized under the laws of the Principality of Andorra, with its principal place of
`
`business at Edifici Burges, Avinguda Sant Antoni 27, La Massana, AD 400, Principat
`
`D'Andorra.
`
`5. On information and belief, Defendants DOE 1 — DOE 20 are entities whose
`
`precise identities are unknown to Plaintiff at this time, which operate in concert
`
`with the above-named defendants and infringe or induce or contribute to
`
`infringement of Plaintiffs patents.
`
`IURISDICTION AND VENUE
`
`6. The Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331
`
`and 1338(a) because this action arises under the patent laws of the United States, 35
`
`U.S.C. §§ 1 et seq.
`
`

`

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`
`Case 2:14-cv-01661—ES—JAD Document 5 Filed 04/24/14 Page 3 of 16 PagelD: 49
`
`3
`
`7. Venue is proper in this district pursuant to 28 U.S.C. §§ 1391(b)-(c) and
`
`1400(b).
`
`PLAIN IFF’ DE EL PMEN
`
`AN B
`
`NE
`
`8. Plaintiff, operating under the trade name SurferNETWORK, is in the
`
`business of providing Internet broadcasting services for live and on-demand audio
`
`and video program material. Plaintiff began this business in 1998, and has been one
`
`of the leading providers of such services to the terrestrial radio stations and other
`
`content providers that comprise its customer base.
`
`9. Early in developing its business, two of Plaintiff s principals, William A.
`
`Grywalski, (“Grywalski”) and Harry Emerson (“Emerson"), recognized a need that
`
`existed in the field due to the shortcomings in then current Internet streaming
`
`technologies. They observed that long startup delays due to "buffering" and
`
`frequent program interruptions (sometimes referred to as “jitter") made the
`
`experience of trying to listen to or view streaming Internet content frustrating to the
`
`end user, and therefore impractical as a content delivery mechanism. They were
`
`interested in making the Internet streaming experience more like radio or
`
`television, including the immediacy of having the programming appear to start
`
`instantly on demand (e.g., turning on a radio or flipping channels), and continue
`
`playing once started without random interruptions.
`
`10. Plaintiff engaged the assistance of a software design engineer, Harold
`
`Price (“Price"), to develop solutions for the shortcomings they saw in the current
`
`technology, with respect to streaming media playback performance, as well as other
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 11 of 66 PageID: 173
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`
`Case 2:14-cv-01661-ES-JAD Document 5 Filed 04/24/14 Page 4 of 16 PageID: 50
`
`4
`
`technological issues concerning Internet delivery of broadcast media. Price worked
`
`on several aspects of this matter for Plaintiff over the period 1999-2001.
`
`11. Price was aware of the then current approach to streaming, which
`
`attempted to overcome streaming transmission delays and jitter by a variety of
`
`techniques, including, for example, establishing a 20-second or so content buffer on
`
`the receiving (user or "client”) end of the communication, within the client's media
`
`player or media player browser plugin. After the user selected (e.g., clicked on) a
`
`stream, the player would start filling this buffer at the playback rate and then start
`
`playing when the buffer was full. While this method did provide some protection
`
`against interruptions for the duration of whatever content was initially buffered, it
`
`entailed an undesirable startup delay for “buffering," and provided no means for
`
`graceful recovery once the 20 seconds worth of content in the buffer was used up.
`
`12. Price conceived of solutions to these problems. He built a prototype that
`
`implemented one embodiment of those solutions, and demonstrated that a system
`
`according to his new design could overcome the problems put to him by Grywalski
`
`and Emerson.
`
`13. Plaintiff and its predecessors in interest filed a number of U.S. patent
`
`applications on these developments, as enumerated below. To date, this family of
`
`patent applications has resulted in seven issued U.S. patents, including the patents-
`
`in-suit. All of these patent applications were assigned to Plaintiff, or to a
`
`predecessor-in-interest of Plaintiff and reassigned to Plaintiff.
`
`14. Plaintiff has been conducting an active, operating business ever since the
`
`developments described above, and has actively practiced under the technology
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 12 of 66 PageID: 174
`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 12 of 66 PageID: 174
`
`Case 2:14-cv—01661-ES-JAD Document 5 Filed 04/24/14 Page 5 of 16 PageID: 51
`
`5
`
`taught in the patents-in-suit, from then to the present. Plaintiff has developed
`
`commercial arrangements under which it provides the service of streaming content
`
`for numerous terrestrial radio stations and content providers in New Jersey,
`
`regionally, nationally, and internationally. It also provides a One—Click Royalty
`
`ReporterTM for radio stations to report streaming media performance royalty
`
`information to SoundExchange, among other services.
`
`15. Despite its successes, Plaintiff’s business has been damaged by
`
`infringement such as that practiced by the Defendants.
`
`THE PATENT -I
`
`-
`
`IT
`
`16. United States Patent No. 8,122,141 (the ’141 patent") was duly and
`
`legally issued on February 21, 2012 for an invention entitled “STREAMING MEDIA
`
`BUFFERING SYSTEM." Plaintiff is the owner by assignment of the '141 patent and
`
`owns all rights to recover for past infringement thereof.
`
`17. United States Patent No. 8,327,011 (the '011 patent”) was duly and
`
`legally issued on December 4, 2012 for an invention entitled “STREAMING MEDIA
`
`BUFFERING SYSTEM." Plaintiff is the owner by assignment of the '011 patent and
`
`owns all rights to recover for past infringement thereof.
`
`18. United States Patent No. 8,185,611 (the ’611 patent") was duly and
`
`legally issued on May 22, 2012, for an invention entitled "STREAMING MEDIA
`
`DELIVERY SYSTEM.” Plaintiff is the owner by assignment of the ’611 patent and
`
`owns all rights to recover for past infringement thereof.
`
`19. United States Patent No. 8,364,839 (the '839 patent”) was duly and
`
`legally issued on January 29, 2013, for an invention entitled "STREAMING MEDIA
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 13 of 66 PageID: 175
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`
`Case 2:14-cv-01661-ES-JAD Document 5 Filed 04/24/14 Page 6 of 16 PagelD: 52
`
`6
`
`DELIVERY SYSTEM." Plaintiff is the owner by assignment of the ’839 patent and
`
`owns all rights to recover for past infringement thereof.
`
`DEFENDANTS' AQTIVITIES
`
`20. Defendants are in the business of providing live adult webcam
`
`performances over the Internet. Defendants arrange for numerous individuals to
`
`perform in front of video cameras and to feed the streams of these performances to
`
`server installations under defendants' ownership or control. The performances are
`
`distributed from there, in real time, to Internet viewers around the world, on
`
`diverse systems, including without limitation desktop computers, as well as Apple®
`
`iOS, AndroidTM, and Blackberry® smartphones and tablets. Defendants provide
`
`interactive facilities for users to communicate requests and comments to the
`
`performers, and for Defendants to charge the users' credit cards for their use of the
`
`system and the tips they give to the performers. Defendants aggressively market
`
`these services to a worldwide audience, including a substantial volume of users in
`
`this District, from which defendants derive substantial revenues.
`
`21. Adult streaming media is an extremely high volume business, which is
`
`well known as consuming a high percentage of the total bandwidth available on the
`
`Internet. Operating in this market requires sophisticated technology and complex
`
`infrastructure.
`
`22. While the operational demands of the adult streaming business entail
`
`high infrastructure cost, the market for Defendants’ services is also very large,
`
`making the business extremely lucrative.
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 14 of 66 PageID: 176
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`
`Case 2:14-cv-01661-ES—JAD Document 5 Filed 04/24/14 Page 7 of 16 PagelD: 53
`
`7
`
`23. Success in Defendants' business is highly dependent on fast, smooth,
`
`uninterrupted delivery of streaming media content, such as that made possible by
`
`Plaintiffs patents. Defendants derive great value as a result of operating under
`
`Plaintiffs patented technology, for which they have not compensated Plaintiff.
`
`24. On information and belief, Defendants Sobonito and Coolvision are the
`
`financial and operational masterminds behind Defendants’ infringing operations.
`
`They have recruited a large number of webcam performers in Eastern Europe and
`
`elsewhere and assembled Internet distribution, billing, and syndication platforms
`
`for their performances, to form a global pornography enterprise that reaches all
`
`parts of the world. On information and belief, Defendants' retinue of live performers
`
`include New Jersey residents, who perform online over Defendants’ infringing
`
`services, from New Jersey, using facilities provided by Defendants.
`
`25. On information and belief, Defendant Imlive operates the web site
`
`Imlive.com, which serves as Defendants' the “flagship" site for streaming webcam
`
`performances originating from Defendants’ global enterprises. Imlive streams these
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`performances over a variety of delivery technologies to, inter alia, desktop
`
`computers and mobile devices, including without limitation smartphones and
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`tablets operating under the iOS and Android operating systems, in a manner that
`
`infringes Plaintiff’s patents.
`
`26. On information and belief, Defendant Imlive also operates the web sites
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`Pussycash.com and Webcamwiz.com, which provide “Affiliate" programs for
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`Defendants. Under the Affiliate programs, Defendants’ Imlive.com and other
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`webcam sites are “white labeled" to other Internet service providers on a revenue
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`

`

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`8
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`splitting basis. Under such white labeling, providers of other prominent
`
`pornography sites (frequently “tube" sites offering short, low-quality clips on a free
`
`basis] provide a paid, revenue-generating webcam adjunct service under the
`
`provider's own branding, which will appear to the user as a click-through or pop-
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`under site. Though branded to look like the provider's tube site, the affiliated
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`webcam site is actually provided by Imlive and/or one of the Defendants named
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`herein. The affiliate provider and such Defendant will generally split the revenue
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`resulting from the white-labeled site.
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`27. On information and belief, defendants DOE 1— DOE 20 are operators of
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`“affiliated" web sites that are cosmetically modified versions of Imlive.com or others
`
`of Defendants' webcam sites carrying the DOE defendants' branding. On
`
`information and belief, DOES 1-20 have revenue split deals with the other
`
`Defendants named herein, under which they take a substantial share in revenues
`
`derived from infringing Plaintiffs patents.
`
`28. Defendants have infringed and are continuing to infringe Plaintiff’s
`
`patents, including at least the patents-in-suit. Defendants’ servers are configured to
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`stream Defendants' live webcam performances and other video streams over a
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`variety of delivery technologies to, inter alia, the smartphones, tablets, browsers and
`
`other mobile platforms (“Mobile Platforms”), and desktop cumputers (“Desktop
`
`Platforms”), in a manner that infringes Plaintiffs patents. Defendants employ
`
`different techniques to stream video to Mobile Platforms and Desktop Platforms,
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`which techniques infringe Plaintiff's patents in different respects.
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`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 16 of 66 PageID: 178
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`Case 2:14-cv-01661-ES-JAD Document 5 Filed 04/24/14 Page 9 of 16 PagelD: 55
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`9
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`C0 N I: INFRIN
`
`ENT F TH ’1 1 PATENT
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`29. Plaintiff repeats and realleges the allegations of paragraphs 1-28 above
`
`as if fully set forth at length herein.
`
`30. Defendants have infringed and continue to infringe the ‘141 patent by
`
`providing live streaming performances over the Internet to, inter alia, Mobile
`
`Platforms, through their manufacture, distribution, use, sale, importation, and/or
`
`offer for sale of systems, methods, products, and processes for:
`
`0
`
`creating or storing on their servers streaming media from a live
`
`source (or from a disk file) in a form comprising a plurality of
`
`sequential media data elements, which are identified by serial
`
`identifiers,
`
`0
`
`programming the servers to receive requests from user systems for
`
`media data elements corresponding to serial identifiers specified in
`
`the requests,
`
`0
`
`programming the servers to send the media data elements responsive
`
`to the user requests, with the result that the streaming media
`contained in the media data elements are sent to the user at a rate
`
`more rapid than its playback rate,
`
`0
`
`sending software to the user to implement a media player on the
`
`user's system for receiving streaming media from Defendants’
`
`specially programmed servers, and for playing the streaming media so
`
`received,
`
`0
`
`programming the media player as sent to the user, to cause it to
`maintain a record of the identifier of the last data element that has
`
`been received,
`
`0
`
`programming the media player as sent to the user, to transmit to the
`
`server requests to send one or more data elements, specifying the
`
`identifier of the data elements, as required by the media player to
`maintain a sufficient number of media data elements in the media
`
`player for uninterrupted playback,
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 17 of 66 PageID: 179
`Case 2:14-cv-01661-ES—JAD Document 20 Filed 08/26/14 Page 17 of 66 PageID: 179
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`Case 2:14-cv-01661-ES-JAD Document 5 Filed 04/24/14 Page 10 of 16 PageID: 56
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`10
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`and additionally and alternatively by their contributing to and inducement of others
`
`to manufacture, use, sell, import, and/ or offer for sale infringing systems, methods,
`
`products, and processes in the manners described above. Defendants are liable for
`
`their infringement of the '141 patent pursuant to 35 U.S.C. §§ 271(a)-(c).
`
`31. Defendants’ acts of infringement have caused and are continuing to cause
`
`damage to Plaintiff, and Plaintiff is entitled to recover from Defendants the damages
`
`sustained by Plaintiff as a result of Defendants' infringing acts in an amount subject
`
`to proof at trial.
`
`32. Defendants’ widespread infringement has injured Plaintiffs ability to
`
`expand its operations based on its patented technology. Plaintiffs remedy in
`
`damages for such continuing infringing activity is inadequate to fully compensate
`
`Plaintiff for the invasion of its exclusive rights, and Plaintiff is entitled to an
`
`injunction to protect its business against such continuing infringement.
`
`NT 11: IN RIN EM T F THE '
`
`PATENT
`
`33. Plaintiff repeats and realleges the allegations of paragraphs 1—32 above
`
`as if fully set forth at length herein.
`
`34. Defendants have and are continuing to infringe the '011 patent by their
`
`manufacture, distribution, use, sale, importation, and/or offer for sale of software
`
`components to combine with a user’s processor, memory, and network connection,
`
`specially adapted to create, inter alia, on Mobile Platforms, a media player for the
`
`user to interact with Defendants' media servers (which provide streaming media as
`
`a series of sequentially identified data elements), the software components
`
`comprising:
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 18 of 66 PageID: 180
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`Case 2:14-cv-01661-ES-JAD Document 5 Filed 04/24/14 Page 11 of 16 PagelD: 57
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`11
`
`o
`
`instructions to cause the media player to request from the media
`
`source a predetermined number of media data elements,
`
`0
`
`instructions to cause the media player to receive media data elements
`
`sent to the media player by the media source and store the media data
`
`elements in the player memory,
`
`0
`
`instructions to implement a player buffer manager to maintain a
`
`record of the serial number of the last media data element received
`
`and stored in a player buffer in the player memory,
`
`0
`
`0
`
`instructions to cause the media player to play the media data
`
`elements sequentially from the player buffer,
`
`instructions to cause the media player to request media data elements
`
`from the server by serial number and to repeat such requests so as to
`
`maintain a pre-determined number of media data elements in the
`
`player buffer,
`
`and additionally and alternatively by their contributing to and inducement of others
`
`to manufacture, use, sell, import, and/or offer for sale infringing systems, methods,
`
`products, and processes in the manners described above. Defendants are liable for
`
`their infringement of the ’011 patent pursuant to 35 U.S.C. §§ 271(aj-(c).
`
`35. Defendants’ acts of infringement have caused and are continuing to cause
`
`damage to Plaintiff, and Plaintiff is entitled to recover from Defendants the damages
`
`sustained by Plaintiff as a result of Defendants' infringing acts in an amount subject
`
`to proof at trial.
`
`36. Defendants' widespread infringement has injured Plaintiff‘s ability to
`
`expand its operations based on its patented technology. Plaintiffs remedy in
`
`damages for such continuing infringing activity is inadequate to fully compensate
`
`Plaintiff for the invasion of its exclusive rights, and Plaintiff is entitled to an
`
`injunction to protect its business against such continuing infringement.
`
`

`

`Case 2:14-cv-01661-ES-JAD Document 20 Filed 08/26/14 Page 19 of 66 PageID: 181
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`Case 2:14-cv-01661-ES-JAD Document 5 Filed 04/24/14 Page 12 of 16 PageID: 58
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`12
`
`CQUNT III: INFRINQEMENT QF THE '611 PATENT
`
`37. Plaintiff repeats and realleges the allegations of paragraphs 1-36 above
`
`as if fully set forth at length herein.
`
`38. Defendants have and continue to directly and indirectly infringe at least
`
`at least claims 1-2, 6-7, 8, 10-11 and 14 of the '611 patent, in their manner of
`
`providing streaming performances over the Internet. Such infringement occurs as a
`
`result of Defendants' streaming of live performance webcam video to Desktop
`
`Platforms, in which Defendants perform, use, or provide, without limitation,
`
`metho