Case 1:17-cv-00184-VAC-SRF Document 1 Filed 02/22/17 Page 1 of 20 PageID #: 1
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELAWARE
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`FRAUNHOFER-GESELLSCHAFT ZUR
`FÖRDERUNG DER ANGEWANDTEN
`FORSCHUNG E.V.,
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`Plaintiff,
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`SIRIUS XM RADIO INC.,
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`vs.
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`Defendant.
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`Case No. _________________
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`DEMAND FOR JURY TRIAL
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`Plaintiff Fraunhofer-Gesellschaft Zur Förderung der angewandten Forschung e.V.
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`COMPLAINT
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`(“Fraunhofer”) hereby pleads the following claims for relief against Defendant Sirius XM
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`Radio Inc. (“Sirius XM”) and alleges as follows:
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`NATURE OF THE ACTION
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`1.
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`Fraunhofer is one of the largest and most successful applied research
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`organizations in Europe and the world. Founded in 1946, Fraunhofer now includes over 60
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`institutes and research units dedicated to developing real-world innovations in the fields of
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`health, communications, security, transportation, and energy, both for private industry
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`contracts and publicly funded projects. One of Fraunhofer’s most famous inventions is the
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`MP3, a compressed audio recording format that has become the standard for digital audio
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`around the world. Fraunhofer has been named to the Thomson Reuters Top 100 Global
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`Innovators list three times in the five years since the list’s inception.
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`2.
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`In the late 1990s, Fraunhofer’s institutes began developing technology for a
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`Digital Audio Radio Service (“DARS”), now more commonly known as satellite radio.
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`Satellite radio has transformed the way that consumers experience radio, both in their homes
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`and while traveling. Before satellite radio, radio listeners were restricted by the
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`geographical limitations of traditional AM and FM radio. Most traditional radio signals
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`extend only 30 or 40 miles from their source, and radio listeners were forced to change
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`stations as they traveled in and out of range.
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`3.
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`Satellite radio eliminates these geographic restrictions. With satellite radio,
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`instead of broadcasting directly from a ground station, a radio broadcaster transmits its
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`signal more than 22,000 miles away to a satellite, which then transmits the signal back to
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`radio receivers installed in cars and homes nationwide.
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`4.
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`Satellite radio operates by transmitting a signal from a satellite orbiting the
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`planet to terrestrial radio receivers or ground repeaters. However, because the satellite and
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`the ground receivers and repeaters are moving at different relative speeds, the signal can
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`become disrupted in a process known as “channel fading.” To reduce the effect of channel
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`fading—and thereby ensure the clarity of satellite broadcasts—Fraunhofer developed certain
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`multicarrier modulation (“MCM”) technologies for use in satellite radio broadcasting.
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`MCM is a method of transmitting data by splitting it into several components and sending
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`each of the components over separate carrier signals. Fraunhofer’s novel inventions
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`contributed to the development of a satellite radio system that permit listeners to access
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`hundreds of music, news, and entertainment broadcasts anywhere in the United States, with
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`absolute clarity.
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`5.
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`Fraunhofer has sought to protect its hard work and ingenuity by seeking and
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`obtaining extensive intellectual property protection for its innovations. As of the end of
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`2015, Fraunhofer held a portfolio of more than 6,500 patent families. This portfolio
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`includes more than 1,500 issued United States patents on Fraunhofer’s inventions, including
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`more than 50 directly related to Fraunhofer’s work on satellite communications, such as
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`patented inventions relating to signal transmission, data coding, and receiver processing,
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`among others.
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`6.
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`Sirius XM is the only satellite radio provider in the United States. It
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`broadcasts hundreds of radio channels from studios in New York City, Washington, D.C.,
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`Nashville, Memphis, and Los Angeles to more than 30.6 million subscribers across the
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`country. In addition to the subscription service, Sirius XM also sells and supplies satellite
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`radio receiver units directly to consumers and to major auto manufacturers for pre-
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`installation into new vehicles.
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`7.
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`Sirius XM is capitalizing on Fraunhofer’s innovation and success by making,
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`selling, and using satellite radios and subscription satellite radio services that infringe
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`Fraunhofer’s patents. Sirius XM is utilizing Fraunhofer’s patented inventions without
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`license or authority from Fraunhofer.
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`8.
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`Fraunhofer has brought this action to remedy Sirius XM’s infringement.
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`PARTIES
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`9.
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`Plaintiff Fraunhofer is a non-profit corporation organized and existing under
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`the laws of the Federal Republic of Germany, with its principal place of business at Postfach
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`20 07 33, 80007 Munich, Germany.
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`10.
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`Defendant Sirius XM is a corporation organized and existing under the laws
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`of Delaware with its principal place of business at 1221 Avenue of the Americas, New York,
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`New York 10020. Upon information and belief, Sirius operates through an agent, The
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`Corporation Trust Company, with its principal place of business at 1209 Orange Street,
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`Wilmington, Delaware 19801.
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`JURISDICTION AND VENUE
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`11.
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`This is an action for patent infringement arising under the patent laws of the
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`United States of America, 35 U.S.C. § 1, et seq., including 35 U.S.C. § 271. This Court has
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`subject matter jurisdiction over the claims of patent infringement alleged in this Complaint
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`under 28 U.S.C. §§ 1331 and 1338(a).
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`12.
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`This Court has personal jurisdiction over Sirius XM because it is organized
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`and existing under the laws of Delaware. Furthermore, Fraunhofer is informed and believes,
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`and on that basis alleges, that Sirius has committed and continues to commit acts of
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`infringement in Delaware in violation of 35 U.S.C. § 271 by, among other things, using,
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`selling, and offering to sell infringing products and services in this judicial district.
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`13.
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`Venue in the District of Delaware is proper pursuant to 28 U.S.C. §§ 1391(b)
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`and (c) because, among other reasons, Sirius XM resides and is subject to personal
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`jurisdiction in this judicial district. Furthermore, a substantial part of the events or
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`omissions giving rise to claims alleged herein occurred in this judicial district. Sirius XM
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`has committed acts of infringement in this judicial district by, among other things,
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`marketing, selling, and offering for sale infringing products and services in this judicial
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`district.
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`FACTUAL BACKGROUND
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`14.
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`Fraunhofer’s investment in research and development has resulted in more
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`than 1,500 patents recognized by the United States Patent and Trademark Office. This case
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`involves four of those patents.
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`15.
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`Fraunhofer is the owner of the entire right, title, and interest in and to U.S.
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`Patent No. 6,314,289 (“the ’289 Patent”), entitled “Apparatus and Method for Transmitting
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`Information and Apparatus and Method for Receiving Information,” which was duly issued
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`on November 6, 2001. Fraunhofer holds the exclusive rights to bring suit with respect to
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`any past, present, and future infringement of the ’289 Patent. A copy of the ’289 Patent is
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`attached as Exhibit A hereto.
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`16.
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`Fraunhofer is the owner of the entire right, title, and interest in and to U.S.
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`Patent No. 6,931,084 (“the ’1084 Patent”), entitled “Differential Coding and Carrier
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`Recovery for Multicarrier Systems,” which was duly issued on August 16, 2005.
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`Fraunhofer holds the exclusive rights to bring suit with respect to any past, present, and
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`future infringement of the ’1084 Patent. A copy of the ’1084 Patent is attached as Exhibit B
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`hereto.
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`17.
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`Fraunhofer is the owner of the entire right, title, and interest in and to U.S.
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`Patent No. 6,993,084 (“the ’3084 Patent”), entitled “Coarse Frequency Synchronization in
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`Multicarrier Systems,” which was duly issued on January 31, 2006. Fraunhofer holds the
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`exclusive rights to bring suit with respect to any past, present, and future infringement of the
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`’3084 Patent. A copy of the ’3084 Patent is attached as Exhibit C hereto.
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`18.
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`Fraunhofer is the owner of the entire right, title and interest in and to U.S.
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`Patent No. 7,061,997 (“the ’997 Patent”), entitled “Method and Apparatus for Fine
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`Frequency Synchronization in Multi-Carrier Demodulation Systems,” which was duly
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`issued on June 13, 2006. Fraunhofer holds the exclusive rights to bring suit with respect to
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`any past, present, and future infringement of the ’997 Patent. A copy of the ’997 Patent is
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`attached as Exhibit D hereto.
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`19.
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`The ’289, ’1084, ’3084, and ’997 Patents are directed to apparatuses and
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`methods used to receive and decode encoded satellite signals, identify any “channel fading”
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`effects, such as offsets in the phase shift, frequency, or amplitude of the signal waves, and
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`correct for those offsets. This correction process occurs using a channel decoder, which is a
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`component of a satellite radio receiver.
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`20.
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`Fraunhofer developed the patented MCM technologies under a “Frame
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`Agreement” it entered with WorldSpace on July 3, 1996.
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`21.
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`In 1998, Fraunhofer granted an exclusive right to WorldSpace International
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`Network Inc. (“WorldSpace”) to license all Fraunhofer intellectual property rights for MCM
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`technologies suitable for use with digital satellite broadcasts, including patents to be sought
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`relating to MCM. Fraunhofer subsequently applied for and obtained the ’289, ’1084, ’3084,
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`and ’997 Patents, all of which relate to MCM technologies and are covered by this exclusive
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`license to WorldSpace (the “MCM License”).
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`22. WorldSpace in turn granted a sub-license under the MCM License to
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`American Mobile Radio Corporation, which was later renamed as XM Satellite Radio, Inc.
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`(“XM Satellite”). XM Satellite sought to use the sublicensed technology in connection with
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`the development of XM Satellite’s Digital Audio Radio Services System (the “XM DARS
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`System”).
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`23.
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`In July 1999, XM Satellite entered into a Technical Consulting Contract with
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`Fraunhofer to facilitate its development efforts (the “XM Radio Contract”). Under the terms
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`of that contract, Fraunhofer was to engineer the XM DARS System for XM Satellite, and
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`develop and test the equipment needed to generate, receive, and decode satellite and
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`terrestrial signals. Although the parties acknowledged that certain “background intellectual
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`property” owned by Fraunhofer would be used to complete the development of the DARS
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`System, the contract specifically excluded the MCM technologies that Fraunhofer had
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`exclusively licensed to WorldSpace, for which XM Satellite had already obtained a separate
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`sublicense from WorldSpace. A copy of the XM Radio Contract is attached as Exhibit E
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`hereto.
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`24.
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`To fulfill its obligations under the XM Radio Contract, Fraunhofer worked in
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`close cooperation with STMicroelectronics (an agent of XM Satellite) to develop the
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`channel decoder IC, a decoding device that performed the phase offset correction. The
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`channel decoder IC was the initial basis for all XM receiver developments, and is a critical
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`component of the XM DARS System. Since 2001, STMicroelectronics chips bearing the
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`designations STA400 (Channel Decoder), STA850 (Channel and Service & Source
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`Decoder), STA875 (Channel and Service & Source Decoder with EEPROM), and STA895
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`(system on a chip (“SOC”) containing a Channel Decoder) have been used in XM Satellite’s
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`satellite radio receivers.
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`25.
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`Fraunhofer specifically developed the channel decoder to implement the
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`MCM methods and apparatuses patented by Fraunhofer and licensed to WorldSpace. Thus,
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`Fraunhofer built the infringing aspects of the XM DARS System at the request of XM
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`Satellite using the technologies covered by the ’289, ’1084, ’3084, and ’997 Patents.
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`26.
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`In 2008, XM Satellite merged with a company named Sirius Satellite Radio,
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`which had developed its own satellite radio system, to form Sirius XM.
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`27.
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`On October 17, 2008, WorldSpace filed a voluntary petition for relief under
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`chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of
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`Delaware. On June 1, 2010, the Bankruptcy Court approved an agreement between
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`Fraunhofer, WorldSpace, and a potential buyer of WorldSpace’s assets that unambiguously
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`rejected the MCM License.1 As a result, WorldSpace lost all rights relating to Fraunhofer’s
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`1 The agreement stated: “In the event that Fraunhofer and Yazmi [the buyer] have
`not entered into an agreement on the going forward business arrangements as provided for in
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`MCM technologies. By the same token, all WorldSpace sub-licensees, including Sirius XM,
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`also lost any rights to the MCM technologies that had been conferred or sublicensed based
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`on WorldSpace’s License.
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`28.
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`On June 12, 2012, WorldSpace’s Chapter 11 case was converted to Chapter
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`7. Pursuant to 11 U.S.C. § 365(d), the MCM License was confirmed rejected as of August
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`12, 2012, when the bankruptcy trustee failed to assume either the MCM License or the sub-
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`license to Sirius XM within sixty days after the conversion. Accordingly, Sirius XM’s
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`license terminated, at the latest, by August 12, 2012.
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`29.
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`In operating the XM DARS System as well as making, using, and selling
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`satellite radios as part of that system, Sirius XM continues to use the technologies covered
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`by the ’289, ’1084, ’3084, and ’997 Patents for which Sirius XM no longer holds a license.
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`30.
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`In October 2015, Fraunhofer informed Sirius XM that Sirius XM was
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`infringing on Fraunhofer’s valid patents and attempted to ascertain the basis upon which
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`Sirius XM was continuing to use the patented MCM technologies. Sirius XM advised
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`Fraunhofer that it believed that it had authority to continue using the patented MCM
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`technologies. However, as shown above, any license or authority that Sirius XM may have
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`had to the patented MCM technologies was terminated in connection with the bankruptcy
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`proceedings involving WorldSpace.
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`31.
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`Sirius XM offers the XM DARS System on a subscription basis to its more
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`than 30.6 million customers. Fraunhofer is informed and believes, and on that basis alleges,
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`that certain Sirius XM radio receivers, which are required to use the XM DARS System,
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`contain a channel decoder IC. Thus, the XM DARS System uses Fraunhofer’s MCM
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`the agreement, the license agreement will be deemed rejected.” Fraunhofer and Yazmi
`never entered into an agreement relating to the MCM License.
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`technology, including the ’289, ’1084, ’3084, and ’997 Patents, to compensate for channel
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`fading effects, without license or authority from Fraunhofer.
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`32.
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`Sirius XM also develops and supplies the equipment, including satellite
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`radios, needed to use the XM DARS system. Sirius XM sells these satellite radios directly
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`to consumers and businesses. Sirius XM also supplies satellite radios to the largest
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`automakers in the world, including but not limited to Toyota, General Motors, Volkswagen,
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`Nissan, and Hyundai. Sirius XM’s website identifies the full list of automakers that make
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`Sirius XM satellite radios available for installation. See
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`http://www.siriusxm.com/vehicleavailability. In 2015, Sirius XM radios were available in
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`more than 75% of all new cars sold, and approximately one third of cars currently on the
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`road in America are equipped with a factory-installed satellite radio. Thus, Sirius XM has
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`caused its infringing satellite radios to be widely deployed without license or authority from
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`Fraunhofer. These satellite radios include but are not limited to radios bearing the model
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`designations XEZ1V1, SXPL1V1, SSV7V1, SST8V1, and GDI-SXBR1 and other radios
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`having the same or similar functionality with respect to the ’289, ’1084, ’3084, and ’997
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`Patents (the “Sirius XM Satellite Radios”). The ability to access the XM DARS System on
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`the Sirius XM Satellite Radios is an essential feature and function of these devices.
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`33.
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`Fraunhofer is informed and believes that Sirius XM was well aware of
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`Fraunhofer and had knowledge of Fraunhofer’s ’289, ’1084, ’3084, and ’997 Patents before
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`the filing of this action.
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`34.
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`For example, Sirius XM obtained knowledge of Fraunhofer’s patents through
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`the contractual agreements between and among Fraunhofer, WorldSpace, and XM Satellite
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`related to the licensing of Fraunhofer’s MCM technologies.
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`35.
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`In addition, Sirius XM obtained knowledge of Fraunhofer’s patents and its
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`infringement through communications from Fraunhofer in 2015 informing Sirius XM of its
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`infringement.
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`36.
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`Sirius XM also gained knowledge of Fraunhofer, Fraunhofer’s patents, and
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`its infringement of the ’289, ’1084, ’3084, and ’997 Patents as a result of this Complaint.
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`FIRST CLAIM FOR RELIEF
`Infringement of U.S. Patent No. 6,314,289
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`37.
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`Fraunhofer realleges and incorporates by reference Paragraphs 1 through 36
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`of this Complaint, as if fully set forth herein.
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`38.
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`Fraunhofer is the owner of the entire right, title, and interest in and to the
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`’289 Patent.
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`39.
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`Sirius XM has infringed and is currently infringing one or more claims of the
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`’289 Patent, in violation of 35 U.S.C. § 271.
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`40.
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`Sirius XM has infringed and continues to infringe the ’289 Patent in violation
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`of 35 U.S.C. § 271(a), literally and/or under the doctrine of equivalents by, among other
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`things, making, using, offering for sale, selling, and/or importing within this judicial district
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`and elsewhere in the United States, without license or authority, the XM DARS System and
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`the Sirius XM Satellite Radios and related products and/or processes falling within the scope
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`of one or more claims of the ’289 Patent.
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`41.
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`Sirius XM has infringed and continues to infringe the ’289 Patent in violation
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`of 35 U.S.C. § 271(b) by actively inducing infringement of the ’289 Patent, literally and/or
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`under the doctrine of equivalents, with knowledge of the ’289 Patent and knowledge that it
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`was inducing the infringement of the ’289 Patent by, among other things, actively and
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`knowingly aiding and abetting, assisting and encouraging others, including without
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`limitation Toyota, General Motors, Volkswagen, Nissan, and Hyundai, and other
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`automakers, and other customers and end users of Sirius XM products and services, to
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`directly infringe the ’289 Patent with respect to the making, using, offering for sale, selling,
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`and/or importing within this judicial district and elsewhere in the United States, without
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`license or authority, the XM DARS System and the Sirius XM Satellite Radios and related
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`products and/or processes falling within the scope of one or more claims of the ’289 Patent.
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`Moreover, Sirius XM had knowledge of its infringement of the Fraunhofer patents, as set
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`forth in Paragraphs 32 through 36.
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`42.
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`Sirius XM has infringed and continues to infringe the ’289 Patent in violation
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`of 35 U.S.C. § 271(c) by contributing to infringement of the ’289 Patent, literally and/or
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`under the doctrine of equivalents, by, among other things, selling, offering for sale, and/or
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`importing within this judicial district and elsewhere in the United States, without license or
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`authority, the XM DARS System and the Sirius XM Satellite Radios and related products
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`and/or processes falling within the scope of one or more claims of the ’289 Patent, with
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`knowledge of the ’289 Patent knowing that such products and/or components are especially
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`made or especially adapted for use in the infringement of the ’289 Patent, and not staple
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`articles or commodities of commerce suitable for substantial noninfringing use. Moreover,
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`Sirius XM had knowledge of its infringement of the Fraunhofer patents, as set forth in
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`Paragraphs 32 through 36.
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`43.
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`Fraunhofer is informed and believes, and on that basis alleges, that Sirius
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`XM’s infringement of the ’289 Patent has been and continues to be willful and deliberate,
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`entitling Fraunhofer to increased damages under 35 U.S.C. § 284. Fraunhofer is informed
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`and believes, and on that basis alleges, that Sirius XM had knowledge of the ’289 Patent and
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`its infringement, and nonetheless engaged in objectively reckless conduct by continuing to
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`engage in infringing activity in the face of an objectively high risk that Sirius XM was
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`infringing Fraunhofer’s valid ’289 Patent.
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`44.
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`Sirius XM’s acts of infringement have caused damage to Fraunhofer in an
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`amount to be proven at trial. As a consequence of Sirius XM’s infringement, Fraunhofer is
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`entitled to recover damages adequate to compensate it for the infringement complained of
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`herein, but in no event less than a reasonable royalty.
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`45.
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`Fraunhofer has suffered irreparable injury as a direct and proximate result of
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`Sirius XM’s infringement for which there is no adequate remedy at law. Unless Sirius XM
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`is enjoined, Fraunhofer will continue to suffer such irreparable injury as a direct and
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`proximate result of Sirius XM’s conduct.
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`SECOND CLAIM FOR RELIEF
`Infringement of U.S. Patent No. 6,931,084
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`46.
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`Fraunhofer realleges and incorporates by reference Paragraphs 1 through 45
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`of this Complaint, as if fully set forth herein.
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`47.
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`Fraunhofer is the owner of the entire right, title, and interest in and to the
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`’1084 Patent.
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`48.
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`Sirius XM has infringed and is currently infringing one or more claims of the
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`’1084 Patent, in violation of 35 U.S.C. § 271.
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`49.
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`Sirius XM has infringed and continues to infringe the ’1084 Patent in
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`violation of 35 U.S.C. § 271(a), literally and/or under the doctrine of equivalents by, among
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`other things, making, using, offering for sale, selling, and/or importing within this judicial
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`district and elsewhere in the United States, without license or authority, the XM DARS
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`System and the Sirius XM Satellite Radios and related products and/or processes falling
`
`within the scope of one or more claims of the ’1084 Patent.
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`9898763
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`Fraunhofer Ex 2010-12
`Sirius XM v Fraunhofer, IPR2018-00681
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`Case 1:17-cv-00184-VAC-SRF Document 1 Filed 02/22/17 Page 13 of 20 PageID #: 13
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`50.
`
`Sirius XM has infringed and continues to infringe the ’1084 Patent in
`
`violation of 35 U.S.C. § 271(b) by actively inducing infringement of the ’1084 Patent,
`
`literally and/or under the doctrine of equivalents, with knowledge of the ’1084 Patent and
`
`knowledge that it was inducing the infringement of the ’1084 Patent by, among other things,
`
`actively and knowingly aiding and abetting, assisting and encouraging others, including
`
`without limitation Toyota, General Motors, Volkswagen, Nissan, and Hyundai, and other
`
`automakers, and other customers and end users of Sirius XM products and services, to
`
`directly infringe the ’1084 Patent with respect to the making, using, offering for sale, selling,
`
`and/or importing within this judicial district and elsewhere in the United States, without
`
`license or authority, the XM DARS System and the Sirius XM Satellite Radios and related
`
`products and/or processes falling within the scope of one or more claims of the ’1084 Patent.
`
`Moreover, Sirius XM had knowledge of its infringement of the Fraunhofer patents, as set
`
`forth in Paragraphs 32 through 36.
`
`51.
`
`Sirius XM has infringed and continues to infringe the ’1084 Patent in
`
`violation of 35 U.S.C. § 271(c) by contributing to infringement of the ’1084 Patent, literally
`
`and/or under the doctrine of equivalents, by, among other things, selling, offering for sale,
`
`and/or importing within this judicial district and elsewhere in the United States, without
`
`license or authority, the XM DARS System and the Sirius XM Satellite Radios and related
`
`products and/or processes falling within the scope of one or more claims of the ’1084 Patent,
`
`with knowledge of the ’1084 Patent knowing that such products and/or components are
`
`especially made or especially adapted for use in the infringement of the ’1084 Patent, and
`
`not staple articles or commodities of commerce suitable for substantial noninfringing use.
`
`Moreover, Sirius XM had knowledge of its infringement of the Fraunhofer patents, as set
`
`forth in Paragraphs 32 through 36.
`
`9898763
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`Fraunhofer Ex 2010-13
`Sirius XM v Fraunhofer, IPR2018-00681
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`Case 1:17-cv-00184-VAC-SRF Document 1 Filed 02/22/17 Page 14 of 20 PageID #: 14
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`52.
`
`Fraunhofer is informed and believes, and on that basis alleges, that Sirius
`
`XM’s infringement of the ’1084 Patent has been and continues to be willful and deliberate,
`
`entitling Fraunhofer to increased damages under 35 U.S.C. § 284. Fraunhofer is informed
`
`and believes, and on that basis alleges, that Sirius XM, had knowledge of the ’1084 Patent
`
`and its infringement, and nonetheless engaged in objectively reckless conduct by continuing
`
`to engage in infringing activity in the face of an objectively high risk that Sirius XM was
`
`infringing Fraunhofer’s valid ’1084 Patent.
`
`53.
`
`Sirius XM’s acts of infringement have caused damage to Fraunhofer in an
`
`amount to be proven at trial. As a consequence of Sirius XM’s infringement, Fraunhofer is
`
`entitled to recover damages adequate to compensate it for the infringement complained of
`
`herein, but in no event less than a reasonable royalty.
`
`54.
`
`Fraunhofer has suffered irreparable injury as a direct and proximate result of
`
`Sirius XM’s infringement for which there is no adequate remedy at law. Unless Sirius XM
`
`is enjoined, Fraunhofer will continue to suffer such irreparable injury as a direct and
`
`proximate result of Sirius XM’s conduct.
`
`THIRD CLAIM FOR RELIEF
`Infringement of U.S. Patent No. 6,993,084
`
`55.
`
`Fraunhofer realleges and incorporates by reference Paragraphs 1 through 54
`
`of this Complaint, as if fully set forth herein.
`
`56.
`
`Fraunhofer is the owner of the entire right, title, and interest in and to the
`
`’3084 Patent.
`
`57.
`
`Sirius XM has infringed and is currently infringing one or more claims of the
`
`’3084 Patent, in violation of 35 U.S.C. § 271.
`
`58.
`
`Sirius XM has infringed and continues to infringe the ’3084 Patent in
`
`violation of 35 U.S.C. § 271(a), literally and/or under the doctrine of equivalents by, among
`
`9898763
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`Fraunhofer Ex 2010-14
`Sirius XM v Fraunhofer, IPR2018-00681
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`Case 1:17-cv-00184-VAC-SRF Document 1 Filed 02/22/17 Page 15 of 20 PageID #: 15
`
`
`other things, making, using, offering for sale, selling, and/or importing within this judicial
`
`district and elsewhere in the United States, without license or authority, the XM DARS
`
`System and the Sirius XM Satellite Radios and related products and/or processes falling
`
`within the scope of one or more claims of the ’3084 Patent.
`
`59.
`
`Sirius XM has infringed and continues to infringe the ’3084 Patent in
`
`violation of 35 U.S.C. § 271(b) by actively inducing infringement of the ’3084 Patent,
`
`literally and/or under the doctrine of equivalents, with knowledge of the ’3084 Patent and
`
`knowledge that it was inducing the infringement of the ’3084 Patent by, among other things,
`
`actively and knowingly aiding and abetting, assisting and encouraging others, including
`
`without limitation Toyota, General Motors, Volkswagen, Nissan, and Hyundai, and other
`
`automakers, and other customers and end users of Sirius XM products and services, to
`
`directly infringe the ’3084 Patent with respect to the making, using, offering for sale, selling,
`
`and/or importing within this judicial district and elsewhere in the United States, without
`
`license or authority, the XM DARS System and the Sirius XM Satellite Radios and related
`
`products and/or processes falling within the scope of one or more claims of the ’3084 Patent.
`
`Moreover, Sirius XM had knowledge of its infringement of the Fraunhofer patents, as set
`
`forth in Paragraphs 32 through 36.
`
`60.
`
`Sirius XM has infringed and continues to infringe the ’3084 Patent in
`
`violation of 35 U.S.C. § 271(c) by contributing to infringement of the ’3084 Patent, literally
`
`and/or under the doctrine of equivalents, by, among other things, selling, offering for sale,
`
`and/or importing within this judicial district and elsewhere in the United States, without
`
`license or authority, the XM DARS System and the Sirius XM Satellite Radios and related
`
`products and/or processes falling within the scope of one or more claims of the ’3084 Patent,
`
`with knowledge of the ’3084 Patent knowing that such products and/or components are
`
`9898763
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`Fraunhofer Ex 2010-15
`Sirius XM v Fraunhofer, IPR2018-00681
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`Case 1:17-cv-00184-VAC-SRF Document 1 Filed 02/22/17 Page 16 of 20 PageID #: 16
`
`
`especially made or especially adapted for use in the infringement of the ’3084 Patent, and
`
`not staple articles or commodities of commerce suitable for substantial noninfringing use.
`
`Moreover, Sirius XM had knowledge of its infringement of the Fraunhofer patents, as set
`
`forth in Paragraphs 32 through 36.
`
`61.
`
`Fraunhofer is informed and believes, and on that basis alleges, that Sirius
`
`XM’s infringement of the ’3084 Patent has been and continues to be willful and deliberate,
`
`entitling Fraunhofer to increased damages under 35 U.S.C. § 284. Fraunhofer is informed
`
`and believes, and on that basis alleges, that Sirius XM, had knowledge of the ’3084 Patent
`
`and its infringement, and nonetheless engaged in objectively reckless conduct by continuing
`
`to engage in infringing activity in the face of an objectively high risk that Sirius XM was
`
`infringing Fraunhofer’s valid ’3084 Patent.
`
`62.
`
`Sirius XM’s acts of infringement have caused damage to Fraunhofer in an
`
`amount to be proven at trial. As a consequence of Sirius XM’s infringement, Fraunhofer is
`
`entitled to recover damages adequate to compensate it for the infringement complained of
`
`herein, but in no event less than a reasonable royalty.
`
`63.
`
`Fraunhofer has suffered irreparable injury as a direct and proximate result of
`
`Sirius XM’s infringement for which there is no adequate remedy at law. Unless Sirius XM
`
`is enjoined, Fraunhofer will continue to suffer such irreparable injury as a direct and
`
`proximate result of Sirius XM’s conduct.
`
`FOURTH CLAIM FOR RELIEF
`Infringement of U.S. Patent No. 7,061,997
`
`64.
`
`Fraunhofer realleges and incorporates by reference Paragraphs 1 through 63
`
`of this Complaint, as if fully set forth herein.
`
`65.
`
`Fraunhofer is the owner of the entire right, title