Case 5:18-cv-00357-AB-SP Document 38 Filed 03/23/18 Page 1 of 24 Page ID #:206
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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,
`
`Civil Action No. 5:18-cv-00357 AB
`(SPx)
`
`
`FIRST AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
`
`
`JURY TRIAL DEMANDED
`
`v.
`
`
`
`
`
`
`AMERICAN NATIONAL
`MANUFACTURING, INC.,
`
`
`Defendant.
`
`AMERICAN NATIONAL MANUFACTURING INC. - EX 1017 - Page 1
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`Case 5:18-cv-00357-AB-SP Document 38 Filed 03/23/18 Page 2 of 24 Page ID #:207
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`Plaintiff Sleep Number Corporation (“Sleep Number”), by and through its
`
`undersigned counsel, files this amended complaint against American National
`
`Manufacturing, Inc. (“American National” or “Defendant”) for infringement of
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`United States Patent Nos. 5,904,172 (“the ’172 patent”), 9,737,154 (“the ’154
`
`patent”), and 8,769,747 (“the ’747 patent”) (collectively, “the patents-in-suit”).
`
`THE PARTIES
`
`Plaintiff
`
`1.
`
`Sleep Number is a Minnesota corporation with a principal place of
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`business at 1001 Third Avenue South, Minneapolis, Minnesota 55404.
`
`2.
`
`Sleep Number is in the business of designing, manufacturing, and
`
`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.
`
`American National Manufacturing, Inc.
`
`3.
`
`On information and belief, American National is a California
`
`corporation organized and existing under the laws of California with a principal
`
`place of business at 252 Mariah Circle, Corona, California 92879. American
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`National may be served via its registered agent for service of process in California:
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`Ric Jansen, 252 Mariah Circle, Corona, California 92879.
`
`4.
`
`On information and belief, American National is in the business of,
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`among other things, manufacturing and selling consumer and medical air bed
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`systems in the United States.
`
`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.
`
`6.
`
`This Court has subject matter jurisdiction over the subject matter of this
`
`action pursuant to 28 U.S.C. §§ 1331 and 1338(a) because the action arises under
`
`the patent laws of the United States.
`
`AMERICAN NATIONAL MANUFACTURING INC. - EX 1017 - Page 2
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`Case 5:18-cv-00357-AB-SP Document 38 Filed 03/23/18 Page 3 of 24 Page ID #:208
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`FACTUAL BACKGROUND
`
`American National
`
`7.
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`This Court has personal jurisdiction over American National at least in
`
`part because American National is present in and/or transacts and conducts business
`
`in and with residents of this District and the State of California. For example,
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`American National has significant operations in California and in this District,
`
`including a manufacturing and distribution plant in Corona, California.
`
`8.
`
`This Court has specific personal jurisdiction over American National
`
`pursuant to the California Long Arm Statute because, on information and belief,
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`American National, directly or through intermediaries, has conducted and conducts
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`substantial business in this forum, including but not limited to: (i) engaging in at
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`least part of the infringing acts alleged herein; (ii) purposefully and voluntarily
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`placing one or more infringing products into the stream of commerce with the
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`expectation that they will be purchased and/or used by consumers in this forum;
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`and/or (iii) regularly doing or soliciting business or deriving substantial revenue
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`from goods provided to individuals in the State of California and in this District. In
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`addition, American National maintains highly interactive and commercial websites,
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`such as http://www.americannationalmfg.com/index.html, which is accessible to
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`residents of California and this District, through which American National promotes
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`its products, including products that infringe the patents-in-suit.
`
`9.
`
`Venue is proper is this District under 28 U.S.C. § 1400(b) for the
`
`reasons set forth above. In addition, venue is proper because acts of infringement
`
`are occurring in this District and because American National has a regular and
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`established place of business in this District. For example, American National has a
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`manufacturing and distribution plant located at 252 Mariah Circle, Corona,
`
`California 92879.
`
`AMERICAN NATIONAL MANUFACTURING INC. - EX 1017 - Page 3
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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
`
`pumps for air mattresses, valve enclosure assemblies, and air bladders to consumers
`
`throughout the United States and the world.
`
`11. Sleep Number’s air mattress systems are market successes.
`
`Specifically, Sleep Number’s air mattress systems have significantly changed the
`
`specialty sleep industry by providing an alternative to traditional innerspring and
`
`foam mattresses. Sleep Number has repeatedly improved the technology behind air
`
`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
`
`over the firmness of their mattress.
`
`12. Sleep Number has invested significantly in the acquisition and
`
`maintenance of equipment used to engineer and manufacture the Sleep Number air
`
`mattress systems. Sleep Number employs thousands of individuals in the United
`
`States
`
`in relation
`
`to
`
`the design, engineering, research and development,
`
`manufacture, marketing, and sale of the Sleep Number air mattress systems. Sleep
`
`Number invests substantially in the design, engineering, and research and
`
`development of the Sleep Number air mattress systems.
`
`Craig Miller and Dires, LLC
`
`13. American National’s president, Craig Miller, was a consultant for Sleep
`
`Number from August 2006 through December 2011.
`
`14. American National manufactures products for a company called Dires,
`
`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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`Case 5:18-cv-00357-AB-SP Document 38 Filed 03/23/18 Page 5 of 24 Page ID #:210
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`The Technology At Issue
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`15. The technology at issue relates to systems and methods for adjusting
`
`the pressure in an air mattress system, and components thereof. Traditional
`
`mattresses offer a static level of firmness to consumers, so if the bed is shared, both
`
`persons using it must agree on the firmness level. Further, even if the mattress is not
`
`shared, some people may wish to adjust the firmness of their mattress periodically,
`
`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
`
`individualized comfort sections, which allows those with different firmness
`
`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
`
`17. On May 18, 1999, the United States Patent & Trademark Office
`
`(“PTO”) duly and lawfully issued U.S. Patent No. 5,904,172 (“the ’172 patent”),
`
`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.
`
`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
`
`Sleep Number® bed. The ’172 patent describes improvements over prior art valve
`
`enclosure assemblies that have problems with air leakage due to counter pressure in
`
`the air bladder and overheating. The ’172 patent also describes embodiments of a
`
`valve enclosure assembly that is able to monitor the pressure inside the air mattress
`
`during an inflate/deflate cycle, which prior art valve enclosure assemblies were
`
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`Case 5:18-cv-00357-AB-SP Document 38 Filed 03/23/18 Page 6 of 24 Page ID #:211
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`unable to accomplish. The ’172 patent also describes a method of achieving a
`
`desired firmness in an air mattress system through the use of an improved valve
`
`enclosure assembly.
`
`19. On August 22, 2017, the PTO duly and lawfully issued U.S. Patent No.
`
`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
`
`copy of which is attached hereto as Exhibit 2. The ’154 patent relates generally to a
`
`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.
`
`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
`
`copy of which is attached hereto as Exhibit 3. The ’747 patent relates generally to a
`
`system and method for adjusting the pressure in an air bed.
`
`21. Sleep Number is the exclusive owner of all rights, title, and interest in
`
`the patents-in-suit.
`
`22. Sleep Number implements the technology claimed in the patents-in-suit
`
`in its Sleep Number air mattress systems.
`
`DEFENDANT’S KNOWLEDGE OF THE ’172 PATENT AND
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`INFRINGEMENT
`
`23. On October 16, 2015, Select Comfort Corporation and Select Comfort
`
`SC Corporation (collectively, “Select Comfort”)1 filed a complaint to institute an
`
`investigation in the United States International Trade Commission (“ITC”). Select
`
`Comfort alleged that American National infringed the ’172 patent by unlawfully
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`importing certain accused devices into the United States.
`
`1 On October 27, 2017, Select Comfort Corporation amended its articles of
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`incorporation to change its name to Sleep Number Corporation.
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`Case 5:18-cv-00357-AB-SP Document 38 Filed 03/23/18 Page 7 of 24 Page ID #:212
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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
`
`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
`
`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
`
`of the ’172 patent . . .
`
`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).
`
`25. An evidentiary hearing was held on August 8-12, 2016.
`
`26. On November 18, 2016, the Administrative Law Judge (“ALJ”) issued
`
`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.
`
`27. Despite finding infringement of Claims 12 and 16 of the ’172 patent by
`
`American National, the ALJ additionally found that the domestic industry
`
`requirement had not been satisfied and thus, a violation of Section 337 of the Tariff
`
`Act had not been established.
`
`28. Select Comfort petitioned the ITC to review that aspect of the ALJ’s
`
`ID, and the Commission determined to review this portion of the ID, among others.
`
`On May 17, 2017, on review, the Commission reversed the ALJ’s ID that a violation
`
`of Section 337 of the Tariff Act had not been established.
`
`29. American National also petitioned the ITC to review the ALJ’s
`
`determination that 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
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`than to determine whether certain of the respondents’ products met one specific
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`claim limitation of claim 12 of the ’172 patent, which the ITC determined they did.
`
`30. Ultimately, the ITC case reflects a determination that American
`
`National’s air mattress systems utilizing its Gen 3 Arco and Gen 3 Koge air
`
`controllers meet all of the claim limitations of claims 12 and 16 of the ’172 patent.
`
`31. During the Commission’s review of the ALJ’s ID, American National
`
`continued to infringe the ’172 patent, which caused irreparable harm to Sleep
`
`Number.
`
`32. American National appealed the Commission’s final determination to
`
`the Federal Circuit, which the ITC moved to dismiss as moot after the ‘172 patent
`
`expired. On December 26, 2017, the Federal Circuit held the appeal was moot in
`
`light of the ‘172 patent having expired and remanded to the Commission to address
`
`American National’s request to vacate the Commission’s final determination.
`
`FIRST CLAIM FOR RELIEF
`
`(Infringement of U.S. Patent No. 5,904,172)
`
`33. Sleep Number re-alleges and incorporates by reference the allegations
`
`contained in the paragraphs above of this Complaint as though fully set forth herein.
`
`34. By way of assignment, Sleep Number owns all right, title, and interest
`
`in the ’172 patent, including the exclusive right to seek damages for past
`
`infringement thereof. The ’172 patent was valid and enforceable at the time of
`
`American National’s infringement thereof.
`
`35. American National had actual knowledge of its infringement of the
`
`’172 patent at least by prior written notice mailed on October 15, 2015, and/or
`
`service of the complaint to institute an investigation in the ITC filed on October 16,
`
`2015.
`
`36. American National directly infringed, literally or under the doctrine of
`
`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 Gen 3 Arco and Gen 3 Koge and other versions of
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`those air controllers, (collectively herein “Accused Products”), in violation of 35
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`U.S.C. § 271(a).
`
`37. American National directly infringed, literally or under the doctrine of
`
`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
`
`States.
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`38. On information and belief, American National directly infringed,
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`literally or under the doctrine of equivalents, at least claims 12 and 16 of the ’172
`
`patent by advertising the Accused Products to customers in the United States. On
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`information and belief, American National directly infringed, literally or under the
`
`doctrine of equivalents, at least claims 12 and 16 of the ’172 patent by performing
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`quality control testing of the Accused Products in the United States.
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`39. For example, American National’s Accused Products consist of
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`assembly components such as an inflatable air bladder(s), hose, remote, and pump
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`housing which contains a valve enclosure assembly, printed circuit board, processor,
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`transducer, pump, and other internal components that are configured to monitor and
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`inflate/deflate the pressure in the air bladder(s). Together, these components meet
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`the claim limitations of at least claims 12 and 16 of the ’172 patent.
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`40.
`
`Indeed, American National’s Accused Products contain an improved
`
`valve enclosure assembly for use with an air inflatable mattress having at least one
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`air bladder inflated by compressed air, a pump fluidly coupled to the at least one air
`
`bladder for providing compressed air thereto, and a processor for providing
`
`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, American National’s Accused Products contain an
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`improved valve enclosure assembly comprising an enclosure defining a substantially
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`fluidly sealed air chamber and having at least one air inlet to the air chamber being
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`fluidly coupled to the pump, a plurality of guides and stops being disposed within
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`the enclosure for correctly positioning components within the enclosure; at least one
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`valve operably coupled to the enclosure being in selective fluid communication with
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`the air chamber and being in fluid communication with the at least one air bladder
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`for selectively fluidly coupling the air chamber to at least one air bladder; and
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`pressure 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.
`
`42.
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`In addition, American National’s Accused Products contain an
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`improved valve enclosure assembly for controlling the inflation of the at least one
`
`air bladder and comprising an enclosure defining a substantially fluidly sealed air
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`chamber and having at least one air inlet to the air chamber being fluidly coupled to
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`the pump, the enclosure being formed of an enclosure portion and a rear cover
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`portion, a flexible seal being compressively interposed between the enclosure
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`portion and a rear cover portion to effect a substantially fluidly tight seal
`
`therebetween; at least one valve operably coupled to the enclosure being in selective
`
`fluid communication with the air chamber and being in fluid communication with
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`the at least one air bladder for selectively fluidly coupling the air chamber to at least
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`one air bladder; and pressure monitor means being operably coupled to the
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`processor and being in fluid communication with the at least one valve for
`
`monitoring the pressure in the at least one bladder.
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`43. Therefore, American National’s Accused Products meet the claim
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`limitations of at least claims 12 and 16 of the ’172 patent.
`
`44. As a specific example, American National sells a number of air
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`mattress system models utilizing the Gen 3 Arco and Gen 3 Koge air controllers,
`
`and each of those models directly infringes, literally or under the doctrine of
`
`equivalents, at least claims 12 and 16 of the ’172 patent.
`
`45. Notably, an expert witness who was retained in the ITC case, Dr. John
`
`P. Abraham, issued an infringement report and testified in detail regarding how
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`American National’s air mattress systems utilizing the Gen 3 Arco and Gen 3 Koge
`
`air 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 American National’s air
`
`mattress systems utilizing the Gen 3 Arco and Gen 3 Koge air controllers meet all of
`
`the claim limitations of claims 12 and 16 of the ’172 patent.
`
`47. American National also indirectly infringed at least claims 12 and 16 of
`
`the ’172 patent by active inducement under 35 U.S.C. § 271(b) and by contributory
`
`infringement under 35 U.S.C. § 271(c).
`
`48. On information and belief, through various sales channels, American
`
`National has sold, and has provided instructions for using/operating, the Accused
`
`Products, including without limitation the air mattress system models utilizing the
`
`Gen 3 Arco and Gen 3 Koge air controllers, to customers, resellers, and end users,
`
`whose use/operation of those models directly infringes at least claims 12 and 16 of
`
`the ’172 patent.
`
`49. On information and belief, American National induced infringement of
`
`at least claims 12 and 16 of the ’172 patent in violation of 35 U.S.C. § 271(b), by
`
`knowingly encouraging and instructing others, including customers, resellers, and
`
`end users, to make, use, sell, or offer to sell the Accused Products in the United
`
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`States, or to import the Accused Products into the United States, without license or
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`authority from Sleep Number. On information and belief, American National
`
`provided instructions to customers, resellers, and end users on how to use and
`
`operate the Accused Products. For example, on information and belief, American
`
`National provided instructional materials, such as user guides, owner manuals, and
`
`similar online resources, on how to use and operate the Accused Products with
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`specific intent of inducing customers, resellers, and end users to infringe at least
`
`claims 12 and 16 of the ’172 patent. By providing such instructions, American
`
`National 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, American National contributorily infringed
`
`at least claims 12 and 16 of the ’172 patent in violation of 35 U.S.C. § 271(c) by
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`selling and offering for sale, in this judicial District and throughout the United
`
`States, the Accused Products, which embodied a material component (e.g. an air
`
`controller 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 known by American National to be especially made or especially
`
`adapted for use in infringement of at least claims 12 and 16 of the ’172 patent, and
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`were not staple articles of commerce or commodities suitable for a substantial, non-
`
`infringing use. American National’s knowledge is inferred from its distribution of
`
`instructional materials, 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 are especially made and designed to
`
`infringe at least claims 12 and 16 of the ’172 patent. On information and belief,
`
`there were no substantial non-infringing uses. On information and belief, American
`
`National’s actions contributed to the direct infringement of at least claims 12 and 16
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`of the ’172 patent by others, including customers, resellers, and end users, of the
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`Accused Products, in violation of 35 U.S.C. § 271(c).
`
`51. As a result of American National’s infringement of the ’172 patent,
`
`Sleep 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. § 284 in an amount to be determined at trial.
`
`52. As stated above, American National has had knowledge of the ’172
`
`patent at least as early as October 2015. Further, American National’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 the parties’ prior disputes, including the ITC case.
`
`53. On information and belief, American National’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, American National nevertheless continued its infringing
`
`conduct in an egregious manner through at least the term of the patent. This
`
`includes, but is not limited to: (i) American National’s collective willful blindness,
`
`including its steadfast refusal to investigate whether the Accused Products infringed
`
`at least claims 12 and 16 of the ’172 patent; (ii) American National’s active
`
`participation as Respondent in the prior ITC Investigation in which it failed to prove
`
`that at least claims 12 and 16 of the ’172 patent were invalid and not infringed; and
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`(iii) American National’s continued
`
`infringement after a determination of
`
`infringement by the ITC. For at least these reasons, American National’s infringing
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`activities detailed above were willful, wanton, and deliberate in disregard of Sleep
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`Number’s rights. Accordingly, Sleep Number is entitled to enhanced damages
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`pursuant to 35 U.S.C. § 284 and to an award of attorneys’ fees and costs incurred in
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`prosecuting this action pursuant to 35 U.S.C. § 285.
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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. American National has directly infringed and continues to directly
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`infringe, literally or under the doctrine of equivalents, at least claim 1 of the ’154
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`patent by making, using, selling, offering for sale, and/or importing into the United
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`States the Accused Products in violation of 35 U.S.C. § 271(a).
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`57. American National has directly infringed and continues to directly
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`infringe, literally or under the doctrine of equivalents, at least claim 1 of the ’154
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`patent by making, using, selling, offering for sale, and/or importing the Accused
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`Products to customers in the United States.
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`58. On information and belief, American National has directly infringed
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`and continues to directly infringe, literally or under the doctrine of equivalents, at
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`least claim 1 of the ’154 patent by advertising the Accused Products to customers in
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`the United States. On information and belief, American National has directly
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`infringed and continues to directly infringe, literally or under the doctrine of
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`equivalents, at least claim 1 of the ’154 patent by performing quality control testing
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`of the Accused Products in the United States.
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`59. American National’s Accused Products utilize a method for adjusting
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`pressure within an air bed and include an air chamber and a pump having a pump
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`housing. After a user selects a desired pressure for the air chamber of the air
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`Case 5:18-cv-00357-AB-SP Document 38 Filed 03/23/18 Page 15 of 24 Page ID #:220
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`mattress system, the Accused Products perform steps in order to adjust, and modify,
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`the air chamber pressure through the use of software code.
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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, American National’s Accused Products meet each claim
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`limitation of 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. American National has also indirectly infringed and continues to
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`indirectly infringe at least claim 1 of the ’154 patent by active inducement under 35
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`U.S.C. § 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, American
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`National has sold, and has provided instructions for using/operating, the Accused
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`Products, including without limitation the air mattress system models utilizing the
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`Gen 3 Arco and Gen 3 Koge 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, American National has been, and currently
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`is, inducing infringement of at least claim 1 of the ’154 patent in violation of 35
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`U.S.C. § 271(b), by knowingly encouraging and instructing others, including
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`customers, resellers, and end users, to make, use, sell, or offer to sell the Accused
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`Products in the United States, or to import the Accused Products into the United
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`States, without license or authority from Sleep Number. On information and belief,
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`American National provides instructions to customers, resellers, and end users on
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`how to use and operate the Accused Products. For example, on information and
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`belief, American National provides instructional materials, such as user guides,
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`owner manuals, and similar online resources, on how to use and operate the
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`Accused Products with specific intent of inducing customers, resellers, and end
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`users to infringe at least claim 1 of the ’154 patent. By providing such instructions,
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`American National knows (and has known), or should know (and should have
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`known), that its actions have, and continue to, actively induce infringement of at
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`least claim 1 of the ’154 patent.
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`66. On information and belief, American National has been, and currently
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`is, contributorily infringing at least claim 1 of the ’154 patent in violation of 35
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`U.S.C. § 271(c) by selling and offering for sale, in this judicial District and
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`throughout the United States, the Accused Products, which embody a material
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`component (e.g. a pump housing containing components configured to determine
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`and adjust the air bladder pressure in an air mattress system through the use of
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`software code) of the inventions claimed in at least claim 1 of the ’154 patent, are
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`known by American National to be especially made or especially adapted for use in
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`infringement of at leas