throbber

`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELAWARE
`
`
`
`
`
`
`
`KONINKLIJKE PHILIPS N.V.,
`U.S. PHILIPS CORPORATION,
`
`
`
`Plaintiffs,
`
`
` v.
`
`ACER INC.,
`ACER AMERICA CORPORATION,
`
`
`
`Defendants.
`
`
`
`
`Case No.:
`
`JURY TRIAL DEMANDED
`
`
`
`
`
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`
`Plaintiffs Koninklijke Philips N.V. and U.S. Philips Corporation (collectively,
`
`“Plaintiffs” or “Philips”), bring this Complaint for patent infringement against Defendants Acer
`
`Inc. and Acer America Corporation (collectively, “Defendants” or “Acer”), and hereby allege as
`
`follows:
`
`Nature of the Action
`
`1.
`
`This is an action for patent infringement under 35 U.S.C. § 271, et seq., by Philips
`
`against Acer for infringement of United States Patent Nos. RE 44,913 (“the ’913 patent”),
`
`6,690,387 (“the ’387 patent”), 7,184,064 (“the ’064 patent”), 7,529,806 (“the ’806 patent”),
`
`5,910,797 (“the ’797 patent”), 6,522,695 (“the ’695 patent”), RE 44,006 (“the ’006 patent”),
`
`8,543,819 (“the ’819 patent”), 6,772,114 (“the ’114 patent”), and RE 43,564 (“the ’564 patent”)
`
`(collectively, the “patents-in-suit”).
`
`
`ME1 21677396v.1
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`PHILIPS 2001
`Microsoft v. Philips
`IPR2018-00026
`
`

`

`
`
`The Parties
`
`2.
`
`Plaintiff Koninklijke Philips N.V., formerly known as Koninklijke Philips
`
`Electronics N.V., is a corporation duly organized and existing under the laws of the Netherlands.
`
`Its principal place of business is High Tech Campus 5, 5656 AE Eindhoven, the Netherlands.
`
`3.
`
`Plaintiff U.S. Philips Corporation is a corporation duly organized and existing
`
`under the laws of Delaware. Its principal place of business is 3000 Minuteman Road, Andover,
`
`Massachusetts, 01810.
`
`4.
`
`Upon information and belief, Acer Inc. is a corporation organized and existing
`
`under the laws of Taiwan, with its principal place of business located at 8F, 88, Sec. 1, Xintai 5th
`
`Rd., Xizhi, New Taipei City 221, Taiwan, Republic of China.
`
`5.
`
`Upon information and belief, Acer America Corporation is a corporation
`
`organized and existing under the laws of California, with its principal place of business located at
`
`333 West San Carlos Street, Suite 1500, San Jose, California 95110.
`
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`Jurisdiction and Venue
`
`6.
`
`This is an action for patent infringement arising under the patent laws of the
`
`United States, Title 35 of the United States Code. This Court has subject matter jurisdiction
`
`pursuant to 28 U.S.C. §§ 1331 and 1338.
`
`7.
`
` This Court has personal jurisdiction over Defendants because Defendants have,
`
`directly or through intermediaries, committed acts within Delaware giving rise to this action
`
`and/or have established minimum contacts with Delaware such that the exercise of jurisdiction
`
`would not offend traditional notions of fair play and substantial justice. Defendants have placed,
`
`and are continuing to place, infringing products into the stream of commerce, via an established
`
`distribution channel, with the knowledge and/or understanding that such products are sold in the
`
`State of Delaware, including in this District. Upon information and belief, Defendants have
`
`derived substantial revenues from its infringing acts occurring within the State of Delaware and
`
`within this District.
`
`8.
`
`In addition, Defendants have, and continue to, knowingly induce infringement
`
`within this District by advertising, marketing, offering for sale and/or selling devices pre-loaded
`
`with hardware and/or software containing infringing functionality within this District, to
`
`consumers, customers, manufacturers, distributers, resellers, partners, and/or end users, and
`
`providing instructions, user manuals, advertising, and/or marketing materials which facilitate,
`
`direct or encourage the use of infringing functionality with knowledge thereof.
`
`9.
`
`10.
`
`Venue is proper under 28 U.S.C. §§ 1391(b) and (c), and 1400.
`
`Philips’s Patents-in-Suit
`
`On May 27, 2014, the U.S. Patent and Trademark Office duly and legally issued
`
`United States Patent No. RE 44,913, entitled “Text entry method and device therefor,” to
`
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`inventor Matthew J. Bickerton. Philips is the assignee and owner of the ’913 patent, a true copy
`
`of which is attached hereto as Exhibit 1.
`
`11.
`
`On February 10, 2004, the U.S. Patent and Trademark Office duly and legally
`
`issued United States Patent No. 6,690,387, entitled “Touch-screen image scrolling system and
`
`method,” to inventors John Zimmerman and Jacquelyn Annette Martino. Philips is the assignee
`
`and owner of the ’387 patent, a true copy of which is attached hereto as Exhibit 2.
`
`12.
`
`On February 27, 2007, the U.S. Patent and Trademark Office duly and legally
`
`issued United States Patent No. 7,184,064, entitled “Touch-screen image scrolling system and
`
`method,” to inventors John Zimmerman and Jacquelyn Annette Martino. Philips is the assignee
`
`and owner of the ’064 patent, a true copy of which is attached hereto as Exhibit 3.
`
`13.
`
`On May 5, 2009, the U.S. Patent and Trademark Office duly and legally issued
`
`United States Patent No. 7,529,806, entitled “Partitioning of MP3 content file for emulating
`
`streaming,” to inventor Yevgeniy Eugene Shteyn. Philips is the assignee and owner of the ’806
`
`patent, a true copy of which is attached hereto as Exhibit 4.
`
`14.
`
`On June 8, 1999, the U.S. Patent and Trademark Office duly and legally issued
`
`United States Patent No. 5,910,797, entitled “Portable data processing apparatus provided with a
`
`screen and a gravitation-controlled sensor for screen orientation,” to inventor Leonardus G.M.
`
`Beuk. Philips is the assignee and owner of the ’797 patent, a true copy of which is attached
`
`hereto as Exhibit 5.
`
`15.
`
`On February 18, 2003, the U.S. Patent and Trademark Office duly and legally
`
`issued United States Patent No. 6,522,695, entitled “Transmitting device for transmitting a
`
`digital information signal alternately in encoded form and non-encoded form,” to inventors
`
`Alphons A.M.L. Bruekers, Johannes M.M. Verbakel, and Marcel S.E. Van Nieuwenhoven.
`
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`Philips is the assignee and owner of the ’695 patent, a true copy of which is attached hereto as
`
`Exhibit 6.
`
`16.
`
`On February 19, 2013, the U.S. Patent and Trademark Office duly and legally
`
`issued United States Patent No. RE 44,006, entitled “User interface for television,” to inventors
`
`Lisa Cherian, Robert Andrew Lambourne, and Guy James Roberts. Philips is the assignee and
`
`owner of the ’006 patent, a true copy of which is attached hereto as Exhibit 7.
`
`17.
`
`On September 24, 2013, the U.S. Patent and Trademark Office duly and legally
`
`issued United States Patent No. 8,543,819, entitled “Secure authenticated distance
`
`measurement,” to inventor Franciscus Lucas Antonius Johannes Kamperman. Philips is the
`
`assignee and owner of the ’819 patent, a true copy of which is attached hereto as Exhibit 8.
`
`18.
`
`On August 3, 2004, the U.S. Patent and Trademark Office duly and legally issued
`
`United States Patent No. 6,772,114, entitled “High frequency and low frequency audio signal
`
`encoding and decoding system,” to inventors Robert Johannes Sluijter, Andreas Johannes
`
`Gerrits, Rakesh Taori, and Samir Chennoukh. Philips is the assignee and owner of the ’114
`
`patent, a true copy of which is attached hereto as Exhibit 9.
`
`19.
`
`On August 7, 2012, the U.S. Patent and Trademark Office duly and legally issued
`
`United States Patent No. RE 43,564, entitled “Hand-held with auto-zoom for graphical display of
`
`web page,” to inventor Jan Van Ee. Philips is the assignee and owner of the ’564 patent, a true
`
`copy of which is attached hereto as Exhibit 10.
`
`Factual Background
`
`20.
`
`Philips is a world-renowned company that expends enormous efforts and
`
`resources to advance research and development in various technological fields. One of those
`
`fields is applied electronics, in which Philips has conducted groundbreaking research relating to
`
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`graphical user interfaces, electronic displays of information, and the control of content delivery
`
`between multiple devices, among other things. The patents-in-suit stem from this work and
`
`claim protection for interactive systems for which users can control apparatuses, displays, and
`
`content in an intuitive manner. These intuitive mechanisms are used in present-day smartphones
`
`and tablet computers.
`
`Notice to Defendants
`
`21.
`
`Upon information and belief, Defendants are well-aware of Plaintiffs’ patent
`
`portfolio relating to Defendants’ smartphones, tablet computers, laptops, all-in-one PCs, 2-in-1
`
`PCs, and chromebooks. Plaintiffs’ patent portfolio in this area has been the subject of extensive
`
`discussion between the parties.
`
`22.
`
`Upon information and belief, Defendants have had knowledge of the ’913 patent
`
`in advance of the filing of this Complaint. At the very latest, Acer was given notice of its
`
`infringement of the ’913 patent upon receiving a letter from Philips dated May 31, 2013.
`
`23.
`
`Upon information and belief, Defendants have had knowledge of the ’387 patent
`
`in advance of the filing of this Complaint. At the very latest, Acer was given notice of its
`
`infringement of the ’387 patent upon receiving a letter from Philips dated May 31, 2013.
`
`24.
`
`Upon information and belief, Defendants have had knowledge of the ’064 patent
`
`in advance of the filing of this Complaint. At the very latest, Acer was given notice of its
`
`infringement of the ’064 patent upon receiving a letter from Philips dated May 31, 2013.
`
`25.
`
`Upon information and belief, Defendants have had knowledge of the ’806 patent
`
`in advance of the filing of this Complaint, upon viewing a presentation made by Philips dated
`
`September 19, 2013. At the very latest, Acer was given further notice of its infringement of the
`
`’806 patent upon viewing a presentation made by Philips on November 21, 2013.
`
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`26.
`
`Upon information and belief, Defendants have had knowledge of the ’797 patent
`
`in advance of the filing of this Complaint, upon viewing a presentation made by Philips dated
`
`September 19, 2013. At the very latest, Acer was given further notice of its infringement of the
`
`’797 patent upon receiving a letter from Philips dated November 21, 2013.
`
`27.
`
`Upon information and belief, Defendants have had knowledge of the ’695 patent
`
`in advance of the filing of this Complaint. At the very latest, Acer was given notice of its
`
`infringement of the ’695 patent upon receiving a letter from Philips dated May 31, 2013.
`
`28.
`
`Upon information and belief, Defendants have had knowledge of the ’006 patent
`
`in advance of the filing of this Complaint, upon receiving a letter from Philips dated May 31,
`
`2013. At the very latest, Acer was given further notice of its infringement of the ’006 patent
`
`upon receiving a letter from Philips dated December 14, 2015.
`
`29.
`
`Upon information and belief, Defendants have had knowledge of the ’819 patent
`
`in advance of the filing of this Complaint, upon receiving a letter from Philips dated May 31,
`
`2013. At the very latest, Acer was given further notice of its infringement of the ’819 patent
`
`upon receiving a letter from Philips dated December 14, 2015.
`
`30.
`
`Upon information and belief, Defendants have had knowledge of the ’114 patent
`
`in advance of the filing of this Complaint. At the very latest, Acer was given notice of its
`
`infringement of the ’114 patent upon receiving a letter from Philips dated May 31, 2013.
`
`31.
`
`Upon information and belief, Defendants have had knowledge of the ’564 patent
`
`in advance of the filing of this Complaint. At the very latest, Acer was given notice of its
`
`infringement of the ’564 patent upon receiving a letter from Philips dated May 31, 2013.
`
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`Defendants’ Infringing Activities
`
`32.
`
`Upon information and belief, Defendants are, and have been, engaged in the
`
`business of manufacturing and/or having manufactured, selling and/or offering to sell within the
`
`United States, using, and/or importing into the United States smartphones, tablet computers,
`
`laptops, all-in-one PCs, 2-in-1 PCs, and chromebooks which are pre-loaded with hardware
`
`and/or software containing functionality covered by one or more claims of the ’913, ’387, ’064,
`
`’806, ’797, ’695, ’006, ’819, ’114, and ’564 patents (“Accused Devices”).
`
`33.
`
`Non-limiting examples of the Accused Devices manufactured, sold, offered for
`
`sale, used, and/or imported by or for Defendants are the Iconia Tab, Iconia A, Iconia One, Iconia
`
`A1, Iconia W, Liquid, Liquid E2, Liquid Jade, Chromebook, One, Aspire, and Aspire Switch
`
`families of devices (“Accused Devices”), which, on information and belief, have been sold
`
`within this judicial District, without limitation, through http://us-store.acer.com/, and the
`
`websites and retail locations of third parties.
`
`34.
`
`Upon information and belief, Defendants purposefully direct sales and offers for
`
`sale of the Accused Devices, including those specifically identified above, toward the state of
`
`Delaware, including this District.
`
`35.
`
`Upon information and belief, Defendants maintain established distribution
`
`channels within the United States that permit Defendant to ship the Accused Devices, including
`
`those specifically identified above, to the state of Delaware, including this District, within a few
`
`days.
`
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`
`
`First Cause of Action: Infringement of U.S. Patent No. RE 44,913
`
`36.
`
`Philips repeats and incorporates by reference each and every allegation of
`
`paragraphs 1 through 35 of this Complaint, as though set forth here in their entirety.
`
`37.
`
`Philips is the sole owner of the entire right, title, and interest in and to the ’913
`
`patent, including the right to sue and recover for any and all infringements thereof.
`
`38.
`
`Defendants are directly infringing, either literally or under the doctrine of
`
`equivalents, the ’913 patent by making, using, selling, and/or offering to sell within the United
`
`States, and/or importing into the United States, the Accused Devices, including but not limited
`
`to, for example, the Acer Iconia Tab A500, Acer Iconia One 10, Acer Liquid E2, and Acer
`
`Aspire V7-482, which embody and/or practice at least one claim of the ’913 patent in violation
`
`of 35 U.S.C. § 271. For example, claim 1 of the ’913 patent is directed to a method for inputting
`
`characters to a device including a keypad which allows for entry of primary and secondary
`
`characters in different states. The Accused Devices embody the claimed invention, without
`
`limitation, by including keypad entry functionality which practices each of the steps of at least
`
`claim 1 of the ’913 patent, either literally or under the doctrine of equivalents, in accord with
`
`user finger input.
`
`39.
`
`Defendants are also indirectly infringing the ’913 patent at least by virtue of their
`
`inducement of direct infringement of the ’913 patent by customers, end users, and others who
`
`use Defendants’ devices referenced in paragraph 38. Defendants have induced, and continue to
`
`induce, others to infringe the ’913 patent in violation of 35 U.S.C. § 271, by taking active steps
`
`to encourage and facilitate others’ direct infringement of the ’913 patent with knowledge or
`
`willful blindness of that infringement. Upon information and belief, these affirmative acts
`
`include, without limitation, advertising, marketing, promoting, offering for sale and/or selling the
`
`
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`above-referenced devices, pre-loaded with software containing infringing functionality, to
`
`consumers, customers, manufacturers, distributers, resellers, partners, and/or end users, and
`
`providing instructions, user manuals, advertising, and/or marketing materials which facilitate,
`
`direct or encourage the direct infringement of the ’913 patent by others with knowledge thereof.
`
`See, e.g., http://global-
`
`download.acer.com/GDFiles/Document/User%20Manual/User%20Manual_Acer_1.0_A_A.pdf?
`
`acerid=635772874213707151&Step1=TABLET&Step2=ICONIA%20ONE%2010&Step3=B3-
`
`A10&OS=ALL&LC=en&BC=ACER&SC=PA_6#_ga=1.186723368.1061643970.1447434622
`
`(at page 21).
`
`40.
`
`Defendants have contributorily infringed the ’913 patent in violation of 35 U.S.C.
`
`§ 271, without limitation, by offering to sell, selling, or importing the devices referenced in
`
`paragraph 38 with knowledge that they include or constitute a material part of the inventions
`
`claimed in the ’913 patent and/or are especially made or adapted for use by others, including
`
`consumers or end users, to infringe the ’913 patent, and are not staple articles or commodities of
`
`commerce suitable for substantial, non-infringing use.
`
`41.
`
`By reason of Defendants’ infringing activities, Plaintiffs have suffered, and will
`
`continue to suffer, substantial damages in an amount to be determined at trial.
`
`42.
`
`Defendants have had actual notice of the ’913 patent, and upon information and
`
`belief, have known or should have known that their activities outlined in paragraphs 38 to 40
`
`above infringe the ’913 patent directly or indirectly. Defendants have nonetheless continued to
`
`engage in their infringing acts. Accordingly, Defendants’ infringement is willful and deliberate,
`
`and this case is exceptional under 35 U.S.C. § 285.
`
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`
`
`Second Cause of Action: Infringement of U.S. Patent No. 6,690,387
`
`43.
`
`Philips repeats and incorporates by reference each and every allegation of
`
`paragraphs 1 through 35 of this Complaint, as though set forth here in their entirety.
`
`44.
`
`Philips is the sole owner of the entire right, title, and interest in and to the ’387
`
`patent, including the right to sue and recover for any and all infringements thereof.
`
`45.
`
`Defendants are directly infringing, either literally or under the doctrine of
`
`equivalents, the ’387 patent by making, using, selling, and/or offering to sell within the United
`
`States, and/or importing into the United States, the Accused Devices, including but not limited
`
`to, for example, the Iconia Tab, Iconia A, Iconia One, Iconia A1, Iconia W, Liquid, Liquid E2,
`
`Liquid Jade, Chromebook, One, Aspire, and Aspire Switch families of devices, which embody
`
`and/or practice at least one claim of the ’387 patent in violation of 35 U.S.C. § 271. For
`
`example, claim 9 of the ’387 patent is directed to a method of controlling the scroll-like display
`
`of data on an electronic display screen in response to a user’s finger. The Accused Devices
`
`embody the claimed invention, without limitation, through pre-loaded touch screen control
`
`functionality which performs each of the steps of at least claim 9 of the ’387 patent, either
`
`literally or under the doctrine of equivalents, to enable control of the scroll-like display of data in
`
`response to user finger input.
`
`46.
`
`Defendants are also indirectly infringing the ’387 patent at least by virtue of their
`
`inducement of direct infringement of the ’387 patent by customers, end users, and others who
`
`use Defendants’ devices referenced in paragraph 45. Defendants have induced, and continue to
`
`induce, others to infringe the ’387 patent in violation of 35 U.S.C. § 271, by taking active steps
`
`to encourage and facilitate others’ direct infringement of the ’387 patent with knowledge or
`
`willful blindness of that infringement. Upon information and belief, these affirmative acts
`
`
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`include, without limitation, advertising, marketing, promoting, offering for sale and/or selling the
`
`above-referenced devices, pre-loaded with software containing infringing functionality, to
`
`consumers, customers, manufacturers, distributers, resellers, partners, and/or end users, and
`
`providing instructions, user manuals, advertising, and/or marketing materials which facilitate,
`
`direct or encourage the direct infringement of the ’387 patent by others with knowledge thereof.
`
`See, e.g., http://global-
`
`download.acer.com/GDFiles/Document/User%20Manual/User%20Manual_Acer_1.0_A_A.pdf?
`
`acerid=635772874213707151&Step1=TABLET&Step2=ICONIA%20ONE%2010&Step3=B3-
`
`A10&OS=ALL&LC=en&BC=ACER&SC=PA_6#_ga=1.186723368.1061643970.1447434622
`
`(at page 10).
`
`47.
`
`Defendants have contributorily infringed the ’387 patent in violation of 35 U.S.C.
`
`§ 271, without limitation, by offering to sell, selling, or importing the devices referenced in
`
`paragraph 45 with knowledge that they include or constitute a material part of the inventions
`
`claimed in the ’387 patent and/or are especially made or adapted for use by others, including
`
`consumers or end users, to infringe the ’387 patent, and are not staple articles or commodities of
`
`commerce suitable for substantial, non-infringing use.
`
`48.
`
`By reason of Defendants’ infringing activities, Plaintiffs have suffered, and will
`
`continue to suffer, substantial damages in an amount to be determined at trial.
`
`49.
`
`Defendants have had actual notice of the ’387 patent, and upon information and
`
`belief, have known or should have known that their activities outlined in paragraphs 45 to 47
`
`above infringe the ’387 patent directly or indirectly. Defendants have nonetheless continued to
`
`engage in their infringing acts. Accordingly, Defendants’ infringement is willful and deliberate,
`
`and this case is exceptional under 35 U.S.C. § 285.
`
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`
`Third Cause of Action: Infringement of U.S. Patent No. 7,184,064
`
`50.
`
`Philips repeats and incorporates by reference each and every allegation of
`
`paragraphs 1 through 35 of this Complaint, as though set forth here in their entirety.
`
`51.
`
`Philips is the sole owner of the entire right, title, and interest in and to the ’064
`
`patent, including the right to sue and recover for any and all infringements thereof.
`
`52.
`
`Defendants are directly infringing, either literally or under the doctrine of
`
`equivalents, the ’064 patent by making, using, selling, and/or offering to sell within the United
`
`States, and/or importing into the United States, the Accused Devices, including but not limited
`
`to, for example, the Iconia Tab, Iconia A, Iconia One, Iconia A1, Iconia W, Liquid, Liquid E2,
`
`Liquid Jade, Chromebook, One, Aspire, and Aspire Switch families of devices, which embody
`
`and/or practice at least one claim of the ’064 patent in violation of 35 U.S.C. § 271. For
`
`example, claim 1 of the ’064 patent is directed to a touch screen image scrolling system that
`
`controls scrolling of data in response to a user’s finger. The Accused Devices embody the
`
`claimed invention, without limitation, through pre-loaded touch screen control functionality
`
`which embodies each of the elements of at least claim 1 of the ’064 patent, either literally or
`
`under the doctrine of equivalents, to enable control of data scrolling in response to user finger
`
`input.
`
`53.
`
`Defendants are also indirectly infringing the ’064 patent at least by virtue of their
`
`inducement of direct infringement of the ’064 patent by customers, end users, and others who
`
`use Defendants’ devices referenced in paragraph 52. Defendants have induced, and continue to
`
`induce, others to infringe the ’064 patent in violation of 35 U.S.C. § 271, by taking active steps
`
`to encourage and facilitate others’ direct infringement of the ’064 patent with knowledge or
`
`willful blindness of that infringement. Upon information and belief, these affirmative acts
`
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`include, without limitation, advertising, marketing, promoting, offering for sale and/or selling the
`
`above-referenced devices, pre-loaded with software containing infringing functionality, to
`
`consumers, customers, manufacturers, distributers, resellers, partners, and/or end users, and
`
`providing instructions, user manuals, advertising, and/or marketing materials which facilitate,
`
`direct or encourage the direct infringement of the ’064 patent by others with knowledge thereof.
`
`See, e.g., http://global-
`
`download.acer.com/GDFiles/Document/User%20Manual/User%20Manual_Acer_1.0_A_A.pdf?
`
`acerid=635772874213707151&Step1=TABLET&Step2=ICONIA%20ONE%2010&Step3=B3-
`
`A10&OS=ALL&LC=en&BC=ACER&SC=PA_6#_ga=1.186723368.1061643970.1447434622
`
`(at page 10).
`
`54.
`
`Defendants have contributorily infringed the ’064 patent in violation of 35 U.S.C.
`
`§ 271, without limitation, by offering to sell, selling, or importing the devices referenced in
`
`paragraph 52 with knowledge that they include or constitute a material part of the inventions
`
`claimed in the ’064 patent and/or are especially made or adapted for use by others, including
`
`consumers or end users, to infringe the ’064 patent, and are not staple articles or commodities of
`
`commerce suitable for substantial, non-infringing use.
`
`55.
`
`By reason of Defendants’ infringing activities, Plaintiffs have suffered, and will
`
`continue to suffer, substantial damages in an amount to be determined at trial.
`
`56.
`
`Defendants have had actual notice of the ’064 patent, and upon information and
`
`belief, have known or should have known that their activities outlined in paragraphs 52 to 54
`
`above infringe the ’064 patent directly or indirectly. Defendants have nonetheless continued to
`
`engage in their infringing acts. Accordingly, Defendants’ infringement is willful and deliberate,
`
`and this case is exceptional under 35 U.S.C. § 285.
`
`
`ME1 21677396v.1
`
`-14-
`
`

`

`
`
`Fourth Cause of Action: Infringement of U.S. Patent No. 7,529,806
`
`57.
`
`Philips repeats and incorporates by reference each and every allegation of
`
`paragraphs 1 through 35 of this Complaint, as though set forth here in their entirety.
`
`58.
`
`Philips is the sole owner of the entire right, title, and interest in and to the ’806
`
`patent, including the right to sue and recover for any and all infringements thereof.
`
`59.
`
`Defendants are directly infringing, either literally or under the doctrine of
`
`equivalents, the ’806 patent by making, using, selling, and/or offering to sell within the United
`
`States, and/or importing into the United States, the Accused Devices, including but not limited
`
`to, for example, the Acer Iconia Tab A500 and Acer Liquid E2, which support MPEG-DASH
`
`(Dynamic Adaptive Streaming over HTTP) and/or HTTP Live Streaming or otherwise embody
`
`and/or practice at least one claim of the ’806 patent in violation of 35 U.S.C. § 271. For
`
`example, claim 12 of the ’806 patent is directed to a client device for forming a media
`
`presentation from multiple related files stored on server computers within a computer network.
`
`The Accused Devices include media presentation functionality which, for example, supports
`
`MPEG-DASH and/or HTTP Live Streaming to stream content, and which embodies each of the
`
`elements of at least claim 12 of the ’806 patent, either literally or under the doctrine of
`
`equivalents.
`
`60.
`
`Defendants are also indirectly infringing the ’806 patent at least by virtue of their
`
`inducement of direct infringement of the ’806 patent by customers, end users, and others who
`
`use Defendants’ devices referenced in paragraph 59. Defendants have induced, and continue to
`
`induce, others to infringe the ’806 patent in violation of 35 U.S.C. § 271, by taking active steps
`
`to encourage and facilitate others’ direct infringement of the ’806 patent with knowledge or
`
`willful blindness of that infringement. Upon information and belief, these affirmative acts
`
`
`ME1 21677396v.1
`
`-15-
`
`

`

`
`include, without limitation, advertising, marketing, promoting, offering for sale and/or selling the
`
`above-referenced devices, pre-loaded with software containing infringing functionality, to
`
`consumers, customers, manufacturers, distributers, resellers, partners, and/or end users, and
`
`providing instructions, user manuals, advertising, and/or marketing materials which facilitate,
`
`direct or encourage the direct infringement of the ’806 patent by others with knowledge thereof.
`
`See, e.g., http://global-
`
`download.acer.com/GDFiles/Document/User%20Manual/User%20Manual_Acer_1.0_A_A.pdf?
`
`acerid=634558081604921091&Step1=TABLET&Step2=ICONIA%20A&Step3=A500&OS=AL
`
`L&LC=en&BC=ACER&SC=PA_6#_ga=1.128157708.1061643970.1447434622 (at page 29).
`
`61.
`
`Defendants have contributorily infringed the ’806 patent in violation of 35 U.S.C.
`
`§ 271, without limitation, by offering to sell, selling, or importing the devices referenced in
`
`paragraph 59 with knowledge that they include or constitute a material part of the inventions
`
`claimed in the ’806 patent and/or are especially made or adapted for use by others, including
`
`consumers or end users, to infringe the ’806 patent, and are not staple articles or commodities of
`
`commerce suitable for substantial, non-infringing use.
`
`62.
`
`By reason of Defendants’ infringing activities, Plaintiffs have suffered, and will
`
`continue to suffer, substantial damages in an amount to be determined at trial.
`
`63.
`
`Defendants have had actual notice of the ’806 patent, and upon information and
`
`belief, have known or should have known that their activities outlined in paragraphs 59 to 61
`
`above infringe the ’806 patent directly or indirectly. Defendants have nonetheless continued to
`
`engage in their infringing acts. Accordingly, Defendants’ infringement is willful and deliberate,
`
`and this case is exceptional under 35 U.S.C. § 285.
`
`
`ME1 21677396v.1
`
`-16-
`
`

`

`
`
`Fifth Cause of Action: Infringement of U.S. Patent No. 5,910,797
`
`64.
`
`Philips repeats and incorporates by reference each and every allegation of
`
`paragraphs 1 through 35 of this Complaint, as though set forth here in their entirety.
`
`65.
`
`Philips is the sole owner of the entire right, title, and interest in and to the ’797
`
`patent, including the right to sue and recover for any and all infringements thereof.
`
`66.
`
`Defendants are directly infringing, either literally or under the doctrine of
`
`equivalents, the ’797 patent by making, using, selling, and/or offering to sell within the United
`
`States, and/or importing into the United States, the Accused Devices, including but not limited
`
`to, for example, the Iconia Tab, Iconia A, Iconia One, Iconia A1, Iconia W, Liquid, Liquid E2,
`
`and Liquid Jade families of devices, which embody and/or practice at least one claim of the ’797
`
`patent in violation of 35 U.S.C. § 271. For example, claim 6 of the ’797 patent is directed to a
`
`manipulatable apparatus for displaying objects and for imparting an acceleration based motion
`
`pattern, wherein the motion is non-uniform in time under control of a static orientation of the
`
`screen. The Accused Devices embody the claimed invention, without limitation, through pre-
`
`loaded screen orientation functionality and/or pre-loaded game applications which embody each
`
`of the elements of at least claim 6 of the ’797 patent, either literally or under the doctrine of
`
`equivalents.
`
`67.
`
`Defendants are also indirectly infringing the ’797 patent at least by virtue of their
`
`inducement of direct infringement of the ’797 patent by customers, end users, and others who
`
`use Defendants’ devices referenced in paragraph 66. Defendants have induced, and continue to
`
`induce, others to infringe the ’797 patent in violation of 35 U.S.C. § 271, by taking active steps
`
`to encourage and facilitate others’ direct infringement of the ’797 patent with knowledge or
`
`willful blindness of that infringement. Upon information and belief, these affirmative acts
`
`
`ME1 21677396v.1
`
`-17-
`
`

`

`
`include, without limitation, advertising, marketing, promoting, offering for sale and/or selling the
`
`above-referenced devices, pre-loaded with software containing infringing functionality, to
`
`consumers, customers, manufacturers, distributers, resellers, partners, and/or end users, and
`
`providing instructions, user manuals, advertising, and/or marketing materials which facilitate,
`
`direct or encourage the direct infringement of the ’797 patent by others with knowledge thereof.
`
`See, e.g., http://global-
`
`download.acer.com/GDFiles/Document/User%20Manual/User%20Manual_Acer_1.0_A_A.pdf?
`
`acerid=635772874213707151&Step1=TABLET&Step2=ICONIA%20ONE%2010&Step3=B3-
`
`A10&OS=ALL&LC=en&BC=ACER&SC=PA_6#_ga=1.186723368.1061643970.1447434622
`
`(at page 46).
`
`68.
`
`Defendants have contributorily infringed the ’797 patent in violation of 35 U.S.C.
`
`§ 271, without limitation, by offering to sell, selling, or importing the devices referenced in
`
`paragraph 66 with knowledge that they include or constitute a material part of the

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