Case 5:18-cv-00356-AB-SP Document 37 Filed 03/23/18 Page 1 of 24 Page ID #:207
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`PILLSBURY WINTHROP SHAW PITTMAN LLP
`Steven A. Moore, State Bar No. 232114
`steve.moore@pillsburylaw.com
`Nicole S. Cunningham, State Bar No. 234390
`nicole.cunningham@pillsburylaw.com
`501 West Broadway, Suite 1100
`San Diego, CA 92101-3575
`Telephone: 619-234-5000
`Facsimile: 619-236-1995
`
`Kecia J. Reynolds (admitted pro hac vice)
`kecia.reynolds@pillsburylaw.com
`PILLSBURY WINTHROP SHAW PITTMAN LLP
`1200 Seventeenth Street, NW
`Washington, DC 20036
`Telephone: 202-663-8000
`Facsimile: 202-663-8007
`
`Andrew S. Hansen (admitted pro hac vice)
`ahansen@foxrothschild.com
`Archana Nath (admitted pro hac vice)
`anath@foxrothschild.com
`Elizabeth A. Patton (admitted pro hac vice)
`epatton@foxrothschild.com
`FOX ROTHSCHILD LLP
`222 South Ninth Street, Suite 2000
`Minneapolis, MN 55402
`Telephone: 612-607-7000
`Facsimile: 612-607-7100
`
`Ashe P. Puri, State Bar No. 297814
`apuri@foxrothschild.com
`FOX ROTHSCHILD LLP
`10250 Constellation Blvd., Suite 900
`Los Angeles, CA 90067
`Telephone: 310-598-4150
`Facsimile: 310-556-9828
`
`Attorneys for Plaintiff
`
`
`UNITED STATES DISTRICT COURT
`CENTRAL DISTRICT OF CALIFORNIA
`EASTERN DIVISION
`
`SLEEP NUMBER CORPORATION,
`
`
`Plaintiff,
`
`v.
`
`
`
`
`
`
`SIZEWISE RENTALS, L.L.C.,
`
`
`Defendant.
`
`Civil Action No. 5:18-cv-00356 AB
`(SPx)
`
`
`FIRST AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
`
`
`JURY TRIAL DEMANDED
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`AMERICAN NATIONAL MANUFACTURING INC. - EX 1016 - Page 1
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`Case 5:18-cv-00356-AB-SP Document 37 Filed 03/23/18 Page 2 of 24 Page ID #:208
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`
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`Plaintiff Sleep Number Corporation (“Sleep Number”), by and through its
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`undersigned counsel, files this amended complaint against Sizewise Rentals, L.L.C.
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`(“Sizewise” or “Defendant”) for infringement of United States Patent Nos.
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`5,904,172 (“the ’172 patent”), 9,737,154 (“the ’154 patent”), and 8,769,747 (“the
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`’747 patent”) (collectively, “the patents-in-suit”).
`
`THE PARTIES
`
`Plaintiff
`
`1.
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`Sleep Number is a Minnesota corporation with a principal place of
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`business at 1001 Third Avenue South, Minneapolis, Minnesota 55404.
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`2.
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`Sleep Number is in the business of designing, manufacturing, and
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`selling adjustable air mattress systems, most notably the Sleep Number® bed, and
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`components thereof, including products that practice the patents-in-suit.
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`Sizewise Rentals, L.L.C.
`
`3.
`
`On information and belief, Defendant Sizewise Rentals, L.L.C.
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`(“Sizewise”) is a Nevada Limited Liability Company organized and existing under
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`the laws of Nevada with a principal place of business at 206 Jefferson Street, Ellis,
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`Kansas 67637. Sizewise may be served via its registered agent for service of
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`process in California: Registered Agent Solutions, Inc., 1220 S Street, Suite 150,
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`Sacramento, California 95811.
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`4.
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`On information and belief, Sizewise is in the business of distributing
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`and leasing medical air bed systems and components thereof, which are
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`manufactured by American National Manufacturing, Inc. (“American National”), in
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`the United States.
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`NATURE OF THE ACTION, JURISDICTION, AND VENUE
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`5.
`
`Sleep Number brings this action for patent infringement under the
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`patent laws of the United States, 35 U.S.C. § 271 et seq.
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`Case 5:18-cv-00356-AB-SP Document 37 Filed 03/23/18 Page 3 of 24 Page ID #:209
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`6.
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`This Court has subject matter jurisdiction over the subject matter of this
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`action pursuant to 28 U.S.C. §§ 1331 and 1338(a) because the action arises under
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`the patent laws of the United States.
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`FACTUAL BACKGROUND
`
`Sizewise
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`7.
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`This Court has personal jurisdiction over Sizewise at least in part
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`because Sizewise is present in and/or transacts and conducts business in and with
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`residents of this District and the State of California. For example, on information
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`and belief, Sizewise has significant operations in California and in this District,
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`including a manufacturing facility and branch locations.
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`8.
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`This Court has specific personal jurisdiction over Sizewise pursuant to
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`the California Long Arm Statute because, on information and belief, Sizewise,
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`directly or through intermediaries, has conducted and conducts substantial business
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`in this forum, including but not limited to: (i) engaging in at least part of the
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`infringing acts alleged herein; (ii) purposefully and voluntarily placing one or more
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`infringing products into the stream of commerce with the expectation that they will
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`be purchased and/or used by consumers in this forum; and/or (iii) regularly doing or
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`soliciting business or deriving substantial revenue from goods provided to
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`individuals in the State of California and in this District. In addition, Sizewise
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`maintains highly interactive and commercial websites, such as http://sizewise.com/,
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`which is accessible to residents of California and this District, through which
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`Sizewise promotes its products, including products that infringe the patents-in-suit.
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`9.
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`Venue is proper is this District under 28 U.S.C. § 1400(b) for the
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`reasons set forth above. In addition, venue is proper because acts of infringement
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`are occurring in this District and because Sizewise has a regular and established
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`place of business in this District. For example, on information and belief, Sizewise
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`has a manufacturing facility and branch locations located within this District. One
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`AMERICAN NATIONAL MANUFACTURING INC. - EX 1016 - Page 3
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`Case 5:18-cv-00356-AB-SP Document 37 Filed 03/23/18 Page 4 of 24 Page ID #:210
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`such location is 3493 Durahart Street, Riverside, California 92507 where Sizewise
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`currently has a physical storefront. Other locations include 1622 N Missile Way,
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`Anaheim, California 92801 and 16657 Arminta Street, Van Nuys, California 91406.
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`Sleep Number
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`10. Sleep Number provides products and services, including air mattress
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`systems, most notably the Sleep Number® bed, and components thereof, including
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`pumps for air mattresses, valve enclosure assemblies, and air bladders to consumers
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`throughout the United States and the world.
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`11. Sleep Number’s air mattress systems are market successes.
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`Specifically, Sleep Number’s air mattress systems have significantly changed the
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`specialty sleep industry by providing an alternative to traditional innerspring and
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`foam mattresses. Sleep Number has repeatedly improved the technology behind air
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`mattresses, transforming them from noisy and uncomfortable substitutes for
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`innerspring or foam mattresses into luxury items that give consumers precise control
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`over the firmness of their mattress.
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`12. Sleep Number has invested significantly in the acquisition and
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`maintenance of equipment used to engineer and manufacture the Sleep Number air
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`mattress systems. Sleep Number employs thousands of individuals in the United
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`States
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`in relation
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`to
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`the design, engineering, research and development,
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`manufacture, marketing, and sale of the Sleep Number air mattress systems. Sleep
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`Number invests substantially in the design, engineering, and research and
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`development of the Sleep Number air mattress systems.
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`Craig Miller and Dires, LLC
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`13. Sizewise’s Chief Manufacturing and Innovation Officer, Craig Miller,
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`who is also American National’s president, was a consultant for Sleep Number from
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`August 2006 through December 2011.
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`AMERICAN NATIONAL MANUFACTURING INC. - EX 1016 - Page 4
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`Case 5:18-cv-00356-AB-SP Document 37 Filed 03/23/18 Page 5 of 24 Page ID #:211
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`14. American National manufactures products for a company called Dires,
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`LLC d/b/a Personal Comfort Bed, of which Craig Miller is managing member and
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`the principal manager. Dires, LLC focuses all facets of its advertising, including
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`online video bed demonstrations, on comparisons to Sleep Number and Sleep
`
`Number’s technology.
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`The Technology At Issue
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`15. The technology at issue relates to systems and methods for adjusting
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`the pressure in an air mattress system, and components thereof. Traditional
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`mattresses offer a static level of firmness to consumers, so if the bed is shared, both
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`persons using it must agree on the firmness level. Further, even if the mattress is not
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`shared, some people may wish to adjust the firmness of their mattress periodically,
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`without buying an entirely new mattress. Traditional innerspring and foam
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`mattresses cannot solve this problem; such mattresses have uniform, constant
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`firmness.
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`16. An air mattress system, on the other hand, can be designed to allow for
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`individualized comfort sections, which allows those with different firmness
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`preferences to share the same bed without compromising comfort. Further, an air
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`mattress system allows a mattress’s firmness to be changed over time, allowing
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`persons whose desired firmness changes to have, for example, a relatively firm
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`mattress one night and a soft one the next.
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`PATENTS-IN-SUIT
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`17. On May 18, 1999, the United States Patent & Trademark Office
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`(“PTO”) duly and lawfully issued U.S. Patent No. 5,904,172 (“the ’172 patent”),
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`entitled “Valve Enclosure Assembly.” Sleep Number is the sole owner by
`
`assignment of the ’172 patent, a copy of which is attached hereto as Exhibit 1.
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`18. The ’172 patent relates generally to an improved valve enclosure
`
`assembly. The improved assembly is used with an air mattress system such as the
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`Case 5:18-cv-00356-AB-SP Document 37 Filed 03/23/18 Page 6 of 24 Page ID #:212
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`Sleep Number® bed. The ’172 patent describes improvements over prior art valve
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`enclosure assemblies that have problems with air leakage due to counter pressure in
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`the air bladder and overheating. The ’172 patent also describes embodiments of a
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`valve enclosure assembly that is able to monitor the pressure inside the air mattress
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`during an inflate/deflate cycle, which prior art valve enclosure assemblies were
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`unable to accomplish. The ’172 patent also describes a method of achieving a
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`desired firmness in an air mattress system through the use of an improved valve
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`enclosure assembly.
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`19. On August 22, 2017, the PTO duly and lawfully issued U.S. Patent No.
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`9,737,154 (“the ’154 patent”), entitled “System and Method for Improved Pressure
`
`Adjustment.” Sleep Number is the sole owner by assignment of the ’154 patent, a
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`copy of which is attached hereto as Exhibit 2. The ’154 patent relates generally to a
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`system and method for adjusting the pressure in an air bed.
`
`20. On July 8, 2014, the PTO duly and lawfully issued U.S. Patent No.
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`8,769,747 (“the ’747 patent”), entitled “System and Method for Improved Pressure
`
`Adjustment.” Sleep Number is the sole owner by assignment of the ’747 patent, a
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`copy of which is attached hereto as Exhibit 3. The ’747 patent relates generally to a
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`system and method for adjusting the pressure in an air bed.
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`21. Sleep Number is the exclusive owner of all rights, title, and interest in
`
`the patents-in-suit.
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`22. Sleep Number implements the technology claimed in the patents-in-suit
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`in its Sleep Number air mattress systems.
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`DEFENDANT’S KNOWLEDGE OF THE ’172 PATENT AND
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`INFRINGEMENT
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`23. On October 16, 2015, Select Comfort Corporation and Select Comfort
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`SC Corporation (collectively, “Select Comfort”)1 filed a complaint to institute an
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`1 On October 27, 2017, Select Comfort Corporation amended its articles of
`incorporation to change its name to Sleep Number Corporation.
`
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`Case 5:18-cv-00356-AB-SP Document 37 Filed 03/23/18 Page 7 of 24 Page ID #:213
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`investigation in the United States International Trade Commission (“ITC”). Select
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`Comfort alleged that Sizewise infringed the ’172 patent by unlawfully importing
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`certain accused devices into the United States.
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`24. The ITC instituted an investigation on November 17, 2015, to
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`determine inter alia:
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`[W]hether there is a violation of subsection (a)(1)(B) of section 337 in
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`the importation into the United States, the sale for importation, or the
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`sale within the United States after importation of certain air mattress
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`systems, components thereof, and methods of using the same by reason
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`of infringement of one or more of claims 2, 6, 9, 12, 16, 20 and 22-241
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`of the ’172 patent . . .
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`Certain Air Mattress Systems, Components Thereof, and Methods of Using the
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`Same, USITC Inv. No. 337-TA-971, Commission Notice, 2015 WL 13662336, at
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`*2, 80 Fed. Reg. 72,738 (Nov. 17, 2015).
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`25. An evidentiary hearing was held on August 8-12, 2016.
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`26. On November 18, 2016, the Administrative Law Judge (“ALJ”) issued
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`an Initial Determination (“ID”) that “Respondents infringe claims 12 and 16 of U.S.
`
`Patent No. 5,904,172” and that claims 12 and 16 of the ’172 patent are not invalid.
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`27. Despite finding infringement of Claims 12 and 16 of the ’172 patent by
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`Sizewise, the ALJ additionally found that the domestic industry requirement had not
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`been satisfied and thus, a violation of Section 337 of the Tariff Act had not been
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`established.
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`28. Select Comfort petitioned the ITC to review that aspect of the ALJ’s
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`ID, and the Commission determined to review this portion of the ID, among others.
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`On May 17, 2017, on review, the Commission reversed the ALJ’s ID that a violation
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`of Section 337 of the Tariff Act had not been established.
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`Case 5:18-cv-00356-AB-SP Document 37 Filed 03/23/18 Page 8 of 24 Page ID #:214
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`29. Sizewise also petitioned the ITC to review the ALJ’s determination that
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`claims 12 and 16 of ’172 patent were infringed and that the ’172 patent is not
`
`invalid, but the ITC declined to review these aspects of the ID other than to
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`determine whether certain of the respondents’ products met one specific claim
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`limitation of claim 12 of the ’172 patent, which the ITC determined they did.
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`30. Ultimately, the ITC case reflects a determination that Sizewise’s air
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`mattress systems utilizing its Platinum 5000 and Platinum 6000 air controllers meet
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`all of the claim limitations of claims 12 and 16 of the ’172 patent.
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`31. During the Commission’s review of the ALJ’s ID, Sizewise continued
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`to infringe the ’172 patent, which caused irreparable harm to Sleep Number.
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`32. Sizewise appealed the Commission’s final determination to the Federal
`
`Circuit, which the ITC moved to dismiss as moot after the ‘172 patent expired. On
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`December 26, 2017, the Federal Circuit held the appeal was moot in light of the
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`‘172 patent having expired and remanded to the Commission to address Sizewise’s
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`request to vacate the Commission’s final determination.
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`FIRST CLAIM FOR RELIEF
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`(Infringement of U.S. Patent No. 5,904,172)
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`33. Sleep Number re-alleges and incorporates by reference the allegations
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`contained in the paragraphs above of this Complaint as though fully set forth herein.
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`34. By way of assignment, Sleep Number owns all right, title, and interest
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`in the ’172 patent, including the exclusive right to seek damages for past
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`infringement thereof. The ’172 patent was valid and enforceable at the time of
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`Sizewise’s infringement thereof.
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`35. Sizewise had actual knowledge of its infringement of the ’172 patent at
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`least by prior written notice mailed on October 15, 2015, and/or service of the
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`complaint to institute an investigation in the ITC filed on October 16, 2015.
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`36. Sizewise directly
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`infringed,
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`literally or under
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`the doctrine of
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`equivalents, at least claims 12 and 16 of the ’172 patent by making, using, selling,
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`offering for sale, and/or importing into the United States air mattress systems that
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`include assembly components such as an air bladder(s) and an air controller,
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`including but not limited to the Platinum 5000 and Platinum 6000 and other versions
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`of those air controllers, (collectively herein “Accused Products”), in violation of 35
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`U.S.C. § 271(a).
`
`37. Sizewise directly
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`infringed,
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`literally or under
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`the doctrine of
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`equivalents, at least claims 12 and 16 of the ’172 patent by making, using, selling,
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`offering for sale, and/or importing the Accused Products to customers in the United
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`States.
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`38. On information and belief, Sizewise directly infringed, literally or
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`under the doctrine of equivalents, at least claims 12 and 16 of the ’172 patent by
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`advertising the Accused Products to customers in the United States. On information
`
`and belief, Sizewise directly infringed, literally or under the doctrine of equivalents,
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`at least claims 12 and 16 of the ’172 patent by performing quality control testing of
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`the Accused Products in the United States.
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`39. Sizewise’s Accused Products consist of assembly components such as
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`an inflatable air bladder(s), hose, remote, and pump housing which contains a valve
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`enclosure assembly, printed circuit board, processor, transducer, pump, and other
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`internal components that are configured to monitor and inflate/deflate the pressure
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`in the air bladder(s). Together, these components meet the claim limitations of at
`
`least claims 12 and 16 of the ’172 patent.
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`40.
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`Indeed, Sizewise’s Accused Products contain an improved valve
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`enclosure assembly for use with an air inflatable mattress having at least one air
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`bladder inflated by compressed air, a pump fluidly coupled to the at least one air
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`bladder for providing compressed air thereto, and a processor for providing
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`Case 5:18-cv-00356-AB-SP Document 37 Filed 03/23/18 Page 10 of 24 Page ID #:216
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`commands to the improved valve enclosure assembly during an inflate/deflate cycle,
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`the improved valve enclosure assembly being fluidly coupled intermediate the pump
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`and the at least one air bladder.
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`41.
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`In addition, Sizewise’s Accused Products contain an improved valve
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`enclosure assembly comprising an enclosure defining a substantially fluidly sealed
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`air chamber and having at least one air inlet to the air chamber being fluidly coupled
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`to the pump, a plurality of guides and stops being disposed within the enclosure for
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`correctly positioning components within the enclosure; at least one valve operably
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`coupled to the enclosure being in selective fluid communication with the air
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`chamber and being in fluid communication with the at least one air bladder for
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`selectively fluidly coupling the air chamber to at least one air bladder; and pressure
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`monitor means being operably coupled to the processor and being in fluid
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`communication with the at least one valve for monitoring the pressure in the at least
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`one bladder.
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`42.
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`In addition, Sizewise’s Accused Products contain an improved valve
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`enclosure assembly for controlling the inflation of the at least one air bladder and
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`comprising an enclosure defining a substantially fluidly sealed air chamber and
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`having at least one air inlet to the air chamber being fluidly coupled to the pump, the
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`enclosure being formed of an enclosure portion and a rear cover portion, a flexible
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`seal being compressively interposed between the enclosure portion and a rear cover
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`portion to effect a substantially fluidly tight seal therebetween; at least one valve
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`operably coupled to the enclosure being in selective fluid communication with the
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`air chamber and being in fluid communication with the at least one air bladder for
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`selectively fluidly coupling the air chamber to at least one air bladder; and pressure
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`monitor means being operably coupled to the processor and being in fluid
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`communication with the at least one valve for monitoring the pressure in the at least
`
`one bladder.
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`43. Therefore, Sizewise’s Accused Products meet the claim limitations of
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`at least claims 12 and 16 of the ’172 patent.
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`44. As a specific example, Sizewise sells a number of air mattress system
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`models utilizing the Platinum 5000 and Platinum 6000 air controllers, and each of
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`those models directly infringes, literally or under the doctrine of equivalents, at least
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`claims 12 and 16 of the ’172 patent.
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`45. Notably, an expert witness who was retained in the ITC case, Dr. John
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`P. Abraham, issued an infringement report and testified in detail regarding how
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`Sizewise’s air mattress systems utilizing the Platinum 5000 and Platinum 6000 air
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`controllers meet all of the claim limitations of claims 12 and 16 of the ’172 patent.
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`46. Further, the ITC has already determined that Sizewise’s air mattress
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`systems utilizing the Platinum 5000 and Platinum 6000 air controllers meet all of
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`the claim limitations of claims 12 and 16 of the ’172 patent.
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`47. Sizewise also indirectly infringed at least claims 12 and 16 of the ’172
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`patent by active inducement under 35 U.S.C. § 271(b) and by contributory
`
`infringement under 35 U.S.C. § 271(c).
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`48. On information and belief, through various sales channels, Sizewise has
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`sold, and has provided instructions for using/operating, the Accused Products,
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`including without limitation the air mattress system models utilizing the Platinum
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`5000 and Platinum 6000 air controllers, to customers, resellers, and end users,
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`whose use/operation of those models directly infringes at least claims 12 and 16 of
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`the ’172 patent.
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`49. On information and belief, Sizewise induced infringement of at least
`
`claims 12 and 16 of the ’172 patent in violation of 35 U.S.C. § 271(b), by knowingly
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`encouraging and instructing others, including customers, resellers, and end users, to
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`make, use, sell, or offer to sell the Accused Products in the United States, or to
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`import the Accused Products into the United States, without license or authority
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`from Sleep Number. On information and belief, Sizewise provided instructions to
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`customers, resellers, and end users on how to use and operate the Accused Products.
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`For example, on information and belief, Sizewise provided instructional materials,
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`such as user guides, owner manuals, and similar online resources, on how to use and
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`operate the Accused Products with specific intent of inducing customers, resellers,
`
`and end users to infringe at least claims 12 and 16 of the ’172 patent. By providing
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`such instructions, Sizewise knew, or should have known, that its actions actively
`
`induced infringement of at least claims 12 and 16 of the ’172 patent.
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`50. On information and belief, Sizewise contributorily infringed at least
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`claims 12 and 16 of the ’172 patent in violation of 35 U.S.C. § 271(c) by selling and
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`offering for sale, in this judicial District and throughout the United States, the
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`Accused Products, which embodied a material component (e.g. an air controller
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`configured to monitor and inflate/deflate the air bladder pressure in an air mattress
`
`system) of the inventions claimed in at least claims 12 and 16 the ’172 patent, were
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`known by Sizewise to be especially made or especially adapted for use in
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`infringement of at least claims 12 and 16 of the ’172 patent, and were not staple
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`articles of commerce or commodities suitable for a substantial, non-infringing use.
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`Sizewise’s knowledge is inferred from its distribution of instructional materials,
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`such as user guides, owner manuals, and similar online resources. On information
`
`and belief, the Accused Products were used to practice the claimed inventions of the
`
`’172 patent and were especially made and designed to infringe at least claims 12 and
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`16 of the ’172 patent. On information and belief, there were no substantial non-
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`infringing uses. On information and belief, Sizewise’s actions contributed to the
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`direct infringement of at least claims 12 and 16 of the ’172 patent by others,
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`including customers, resellers, and end users of the Accused Products, in violation
`
`of 35 U.S.C. § 271(c).
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`51. As a result of Sizewise’s infringement of the ’172 patent, Sleep
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`Number was irreparably injured with respect to its business and intellectual property
`
`rights, and is entitled to recover damages for such injuries pursuant to 35 U.S.C. §
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`284 in an amount to be determined at trial.
`
`52. As stated above, Sizewise has had knowledge of the ’172 patent at least
`
`as early as October 2015. Further, Sizewise’s knowledge is supported by Sleep
`
`Number’s prior relationship with Craig Miller, the comparative advertising of
`
`American National manufactured products, the parties’ competitive positions, and
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`the parties’ prior disputes, including the ITC case.
`
`53. On information and belief, Sizewise’s infringement of the ’172 patent
`
`was willful and deliberate. For example, despite having pre-suit knowledge of the
`
`’172 patent at least as early as October 2015, and knowledge that it was directly
`
`and/or indirectly infringing one or more claims of the ’172 patent as confirmed by
`
`the ITC, Sizewise nevertheless continued its infringing conduct in an egregious
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`manner through at least the term of the patent. This includes, but is not limited to:
`
`(i) Sizewise’s collective willful blindness, including its steadfast refusal to
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`investigate whether the Accused Products infringed at least claims 12 and 16 of the
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`’172 patent; and (ii) Sizewise’s active participation as Respondent in the prior ITC
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`Investigation in which it failed to prove that at least claims 12 and 16 of the ’172
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`patent were invalid and not infringed; and (iii) Sizewise’s continued infringement
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`after a determination of infringement by the ITC. For at least these reasons,
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`Sizewise’s infringing activities detailed above were willful, wanton, and deliberate
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`in disregard of Sleep Number’s rights. Accordingly, Sleep Number is entitled to
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`enhanced damages pursuant to 35 U.S.C. § 284 and to an award of attorneys’ fees
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`and costs incurred in prosecuting this action pursuant to 35 U.S.C. § 285.
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`AMERICAN NATIONAL MANUFACTURING INC. - EX 1016 - Page 13
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`Case 5:18-cv-00356-AB-SP Document 37 Filed 03/23/18 Page 14 of 24 Page ID #:220
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`SECOND CLAIM FOR RELIEF
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`(Infringement of U.S. Patent No. 9,737,154)
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`54. Sleep Number re-alleges and incorporates by reference the allegations
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`contained in the paragraphs above of this Complaint as though fully set forth herein.
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`55. By way of assignment, Sleep Number owns all right, title, and interest
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`in the ’154 patent, including the exclusive right to seek damages for past, current,
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`and future infringement thereof. The ’154 patent is valid and enforceable.
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`56. Sizewise has directly infringed and continues to directly infringe,
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`literally or under the doctrine of equivalents, at least claim 1 of the ’154 patent by
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`making, using, selling, offering for sale, and/or importing into the United States the
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`Accused Products in violation of 35 U.S.C. § 271(a).
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`57. Sizewise has directly infringed and continues to directly infringe,
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`literally or under the doctrine of equivalents, at least claim 1 of the ’154 patent by
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`making, using, selling, offering for sale, and/or importing the Accused Products to
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`customers in the United States.
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`58. On information and belief, Sizewise has directly infringed and
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`continues to directly infringe, literally or under the doctrine of equivalents, at least
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`claim 1 of the ’154 patent by advertising the Accused Products to customers in the
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`United States. On information and belief, Sizewise has directly infringed and
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`continues to directly infringe, literally or under the doctrine of equivalents, at least
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`claim 1 of the ’154 patent by performing quality control testing of the Accused
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`Products in the United States.
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`59. Sizewise’s Accused Products utilize a method for adjusting pressure
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`within an air bed and include an air chamber and a pump having a pump housing.
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`After a user selects a desired pressure for the air chamber of the air mattress system,
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`the Accused Products perform steps in order to adjust, and modify, the air chamber
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`pressure through the use of software code.
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`AMERICAN NATIONAL MANUFACTURING INC. - EX 1016 - Page 14
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`Case 5:18-cv-00356-AB-SP Document 37 Filed 03/23/18 Page 15 of 24 Page ID #:221
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`60. The Accused Products perform the following claimed steps: receiving a
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`selection for a desired pressure setpoint for the air chamber; calculating a pressure
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`target for the pump housing, wherein the pressure target for the pump housing is
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`calculated based upon the desired pressure setpoint for the air chamber and a
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`pressure adjustment factor; adjusting pressure within the air chamber until a
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`pressure sensed within the pump housing is substantially equal to the pressure
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`target; determining an actual chamber pressure within the air chamber; comparing
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`the actual chamber pressure to the desired pressure setpoint to determine an
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`adjustment factor error; and modifying the pressure adjustment factor based upon
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`the adjustment factor error.
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`61. Therefore, Sizewise’s Accused Products meet each claim limitation of
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`at least claim 1 of the ’154 patent.
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`62. Prior to filing suit, Sleep Number retained an expert, Dr. John P.
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`Abraham, who concluded that it was likely that the Accused Products infringe the
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`’154 patent, and he signed a declaration attesting to that conclusion.
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`63. Sizewise has also indirectly infringed and continues to indirectly
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`infringe at least claim 1 of the ’154 patent by active inducement under 35 U.S.C. §
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`271(b) and by contributory infringement under 35 U.S.C. § 271(c).
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`64. On information and belief, through various sales channels, Sizewise has
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`sold, and has provided instructions for using/operating, the Accused Products,
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`including without limitation the air mattress system models utilizing the Platinum
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`5000 and Platinum 6000 air controllers, to customers, resellers, and end users,
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`whose use/operation of those models directly infringes at least claim 1 of the ’154
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`patent.
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`65. On information and belief, Sizewise has been, and currently is,
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`inducing infringement of at least claim 1 of the ’154 patent in violation of 35 U.S.C.
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`§ 271(b), by knowingly encouraging and instructing others, including customers,
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`AMERICAN NATIONAL MANUFACTURING INC. - EX 1016 - Page 15
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`Case 5:18-cv-00356-AB-SP Document 37 Filed 03/23/18 Page 16 of 24 Page ID #:222
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`resellers, and end users, to make, use, sell, or offer to sell the Accused Products in
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`the United States, or to import the Accused Products into the United States, without
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`license or authority from Sleep Number. On information and belief, Sizewise
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`provides instructions to customers, resellers, and end users on how to use and
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`operate the Accused Products. For example, on information and belief, Sizewise
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`provides instructional materials, such as user guides, owner manuals, and similar
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`online resources, on how to use and operate the Accused Products with specific
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`intent of inducing customers, resellers, and end users to infringe at least claim 1 of
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`the ’154 patent. By providing such instructions, Sizewise knows (and has known),
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`or should know (and should have known), that its actions have, and continue to,
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`actively induce infringement of at least claim 1 of the ’154 patent.
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`66. On information and belief, Sizewise has been, and currently is,
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`contributorily infringing at least claim 1 of the ’154 patent in violation of 35 U.S.C.
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`§ 271(c) by selling and offering for sale, in this judicial District and throughout the
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`United States, the Accused Products, which embody a material component (e.g. a
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`pump housing containing components configured to determine and adjust the air
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`bladder pressure in an air mattress system through the use of software code) of the
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`inventions claimed in at least claim 1 of the ’154 patent, are known by Sizewise to
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`be especially made or especially adapted for use in infringement of at least claim 1
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`of the ’154 patent, and are not staple articles of commerce or commodities suitable
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`for a substantial, non-infringing use. Sizewise’