throbber

` Case 3:17-cv-03517-B Document 1 Filed 12/29/17 Page 1 of 16 PageID 1
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`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE NORTHERN DISTRICT OF TEXAS
`DALLAS DIVISION
`
`
`
`
`
`
`Civil Action No. 3:17-cv-3517
`
`JURY TRIAL DEMANDED
`
`Plaintiff,
`
`v.
`
`SLEEP NUMBER CORPORATION,
`
`
`
`
`
`AMERICAN NATIONAL
`MANUFACTURING, INC.
`
`
`
`
`Defendant.
`
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`Plaintiff Sleep Number Corporation (“Sleep Number”), by and through its undersigned
`
`counsel, files this complaint against American National Manufacturing, Inc. (“American
`
`National” or “Defendant”) for infringement of 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 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 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 National may be served via its registered
`
`
`
`Sleep Number Corp.
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`agent for service of process in Texas: Registered Agent Solutions, Inc., 1701 Directors
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`Boulevard, Suite 300, Austin, Texas 78744.
`4.
`
`On information and belief, American National is in the business of, among other
`
`things, manufacturing and selling consumer and medical air bed systems in the United States.
`
`NATURE OF THE ACTION, JURISDICTION, AND VENUE
`
`5.
`
`Sleep Number brings this action for patent infringement under the 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
`
`7.
`
`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 Texas. For example, on information and belief,
`
`American National has significant operations in Texas and in this District, including a
`
`manufacturing plant in Carrollton, Texas.
`8.
`
`This Court has specific personal jurisdiction over American National pursuant to
`
`the Texas Long Arm Statute because, on information and belief, American National, directly or
`
`through intermediaries, has conducted and conducts substantial business in this forum, including
`
`but not limited to: (i) engaging in at least part of the infringing acts alleged herein;
`
`(ii) purposefully and voluntarily placing one or more infringing products into the stream of
`
`commerce with the expectation that they will be purchased and/or used by consumers in this
`
`forum; and/or (iii) regularly doing or soliciting business or deriving substantial revenue from
`
`goods provided to individuals in the State of Texas and in this District. In addition, American
`
`National maintains highly interactive and commercial websites, such as
`
`http://www.americannationalmfg.com/index.html, which is accessible to residents of Texas and
`
`2
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`Sleep Number Corp.
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` Case 3:17-cv-03517-B Document 1 Filed 12/29/17 Page 3 of 16 PageID 3
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`this District, through which American National promotes its products, including products that
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`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 established place of business in this District.
`
`For example, on information and belief, American National has a manufacturing plant located at
`
`1825 W. Belt Line Rd, Carrollton, Texas 75006.
`
`FACTUAL BACKGROUND
`
`Sleep Number
`
`10.
`
`Sleep Number provides products and services, including air mattress 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, and have repeatedly
`
`improved the technology behind air mattresses, transforming them from noisy and uncomfortable
`
`substitutes for 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® bed 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® bed systems.
`
`Sleep Number invests substantially in the design, engineering, and research and development of
`
`the Sleep Number® bed systems.
`
`3
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`The Technology At Issue
`
`13.
`
`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 mattresses cannot solve this problem; such mattresses have uniform, constant firmness.
`14.
`
`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 mattress system allows a mattress’s
`
`firmness to be changed over time, allowing persons whose desired firmness changes to have, for
`
`example, a relatively firm mattress one night and a soft one the next.
`
`PATENTS-IN-SUIT
`
`15.
`
`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.
`16.
`
`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
`
`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.
`17.
`
`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
`
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`Number is the sole owner by assignment of the ’154 patent, a copy of which is attached hereto as
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`Exhibit 2. The ’154 patent relates generally to a system and method for adjusting the pressure in
`
`an air bed.
`18.
`
`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.
`19.
`
`in-suit.
`20.
`
`Sleep Number is the exclusive owner of all rights, title, and interest in the patents-
`
`Sleep Number implements the technology claimed in the patents-in-suit in its
`
`Sleep Number® bed systems.
`
`DEFENDANT’S KNOWLEDGE OF THE ’172 PATENT AND INFRINGEMENT
`21.
`
`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 importing certain accused devices into the
`
`United States.
`22.
`
`The ITC instituted an investigation on November 20, 2015, Inv. No. 337-TA-971,
`
`Certain Air Mattress Systems, Components Thereof, and Methods of Using the Same, to
`
`determine inter alia:
`
`[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 sale within the
`United States after importation of certain air mattress systems, components
`thereof, and methods of using the same by reason of infringement of one or more
`of claims 2, 6, 9, 12, 16, 20 and 22-241 of the ’172 patent . . .
`
`
`
`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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`80 Fed. Reg. 72,738 (Nov. 20, 2015).
`23.
`An evidentiary hearing was held on August 8-12, 2016.
`24.
`
`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.
`25.
`
`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.
`26.
`
`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.
`27.
`
`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.
`28.
`
`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.
`29.
`
`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)
`
`30.
`
`Sleep Number re-alleges and incorporates by reference the allegations of
`
`paragraphs 1 through 29 of this Complaint as though fully set forth herein.
`
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`31.
`
`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.
`32.
`
`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.
`33.
`
`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, offering for
`
`sale, and/or importing into the United States air mattress bed systems that include assembly
`
`components such as an air bladder(s) and an air controller, including but not limited to the Gen 3
`
`Arco and Gen 3 Koge and other versions of those air controllers, (“Accused Products”) in
`
`violation of 35 U.S.C. § 271(a).
`34.
`
`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, offering for
`
`sale, and/or importing the Accused Products to customers in the United States.
`35.
`
`On 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 advertising the
`
`Accused Products to customers in the United States. On 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 quality control testing of the Accused Products in the United
`
`States.
`
`36.
`
`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).
`37.
`
`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,
`
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`sell, or offer to sell the Accused Products in the United States, or to import the Accused Products
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`into the United States, without license or 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 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.
`38.
`
`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 selling and offering for
`
`sale, in this judicial District and throughout the United States, the Accused Products, which
`
`embodied a material component 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 were not staple articles of
`
`commerce or commodities suitable for a substantial, non-infringing use. 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 of
`
`the ’172 patent by others, including customers, resellers, and end users of the Accused Products
`
`in violation of 35 U.S.C. § 271(c).
`39.
`
`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.
`
`8
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`40.
`
`On information and belief, American National’s infringement of the ’172 patent
`
`was willful and deliberate. For example, despite having knowledge of the ’172 patent, and
`
`knowledge that it was directly and/or indirectly infringing one or more claims of the ’172 patent,
`
`American National nevertheless continued its infringing conduct in an egregious manner. 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; and (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. For at least these reasons, American National’s infringing
`
`activities detailed above were willful, wanton, and deliberate in disregard of Sleep Number’s
`
`rights. Accordingly, Sleep Number is entitled to enhanced damages pursuant to 35 U.S.C. § 284
`
`and to an award of attorney’s fees and costs incurred in prosecuting this action pursuant to 35
`
`U.S.C. § 285.
`
`SECOND CLAIM FOR RELIEF
`
`(Infringement of U.S. Patent No. 9,737,154)
`
`41.
`
`Sleep Number re-alleges and incorporates by reference the allegations of
`
`paragraphs 1 through 40 of this Complaint as though fully set forth herein.
`42.
`
`By way of assignment, Sleep Number owns all right, title, and interest in the ’154
`
`patent, including the exclusive right to seek damages for past, current, and future infringement
`
`thereof. The ’154 patent is valid and enforceable.
`43.
`
`American National has had actual notice of its infringement of the ’154 patent no
`
`later than the time of service of this Complaint.
`44.
`
`American National has directly infringed and continues to directly infringe,
`
`literally or under the doctrine of equivalents, at least claim 1 of the ’154 patent by making, using,
`
`selling, offering for sale, and/or importing into the United States the Accused Products in
`
`violation of 35 U.S.C. § 271(a).
`
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`45.
`
`American National has directly infringed and continues to directly infringe,
`
`literally or under the doctrine of equivalents, at least claim 1 of the ’154 patent by making, using,
`
`selling, offering for sale, and/or importing the Accused Products to customers in the United
`
`States.
`
`46.
`
`On information and belief, American National has directly infringed and
`
`continues to directly infringe, literally or under the doctrine of equivalents, at least claim 1 of the
`
`’154 patent by advertising the Accused Products to customers in the United States. On
`
`information and belief, American National has directly infringed and continues to directly
`
`infringe, literally or under the doctrine of equivalents, at least claim 1 of the ’154 patent by
`
`performing quality control testing of the Accused Products in the United States.
`47.
`
`American National has also indirectly infringed and continues to indirectly
`
`infringe at least claim 1 of the ’154 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, American National has been, and currently is, inducing
`
`infringement of at least claim 1 of the ’154 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 States, or to import the
`
`Accused Products into the United States, without license or authority from Sleep Number. On
`
`information and belief, American National provides instructions to customers, resellers, and end
`
`users on how to use and operate the Accused Products. For example, on information and belief,
`
`American National provides instructional materials, such as user guides, owner manuals, and
`
`similar online resources, on how to use and operate the Accused Products with specific intent of
`
`inducing customers, resellers, and end users to infringe at least claim 1 of the ’154 patent. By
`
`providing such instructions, American National knows (and has known), or should know (and
`
`should have known), that its actions have, and continue to, actively induce infringement of at
`
`least claim 1 of the ’154 patent.
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`49.
`
`On information and belief, American National has been, and currently is,
`
`contributorily infringing at least claim 1 of the ’154 patent in violation of 35 U.S.C. § 271(c) by
`
`selling and offering for sale, in this judicial District and throughout the United States, the
`
`Accused Products, which embody a material component of the inventions claimed in at least
`
`claim 1 of the ’154 patent, are known by American National to be especially made or especially
`
`adapted for use in infringement of at least claim 1 of the ’154 patent, and are not staple articles of
`
`commerce or commodities suitable for a substantial, non-infringing use. On information and
`
`belief, the Accused Products are used to practice the claimed inventions of the ’154 patent and
`
`are especially made and designed to infringe at least claim 1 of the ’154 patent. On information
`
`and belief, there are no substantial non-infringing uses. On information and belief, American
`
`National’s actions contribute to the direct infringement of at least claim 1 of the ’154 patent by
`
`others, including customers, resellers, and end users of the Accused Products in violation of 35
`
`U.S.C. § 271(c).
`50.
`
`Unless enjoined by this Court, American National will continue to infringe at
`
`least claim 1 of the ’154 patent, and Sleep Number will continue to suffer irreparable harm for
`
`which there is no adequate remedy at law. Accordingly, Sleep Number is entitled to preliminary
`
`and/or permanent relief against such infringement pursuant to 35 U.S.C. § 283.
`51.
`
`As a result of American National’s infringement of the ’154 patent, Sleep Number
`
`has been and continues to be 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.
`
`On information and belief, American National’s infringement of the ’154 patent is
`
`willful and deliberate. For example, despite having knowledge of the ’154 patent, and
`
`knowledge that it is directly and/or indirectly infringing at least claim 1 of the ’154 patent,
`
`American National has nevertheless continued its infringing conduct in an egregious manner.
`
`For at least these reasons, American National’s infringing activities detailed above have been,
`
`and continue to be, willful, wanton, and deliberate in disregard of Sleep Number’s rights.
`
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`Accordingly, Sleep Number is entitled to enhanced damages pursuant to 35 U.S.C. § 284 and to
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`an award of attorney’s fees and costs incurred in prosecuting this action pursuant to 35 U.S.C.
`
`§ 285.
`
`THIRD CLAIM FOR RELIEF
`
`(Infringement of U.S. Patent No. 8,769,747)
`
`53.
`
`Sleep Number re-alleges and incorporates by reference the allegations of
`
`paragraphs 1 through 52 of this Complaint as though fully set forth herein.
`54.
`
`By way of assignment, Sleep Number owns all right, title, and interest in the ’747
`
`patent, including the exclusive right to seek damages for past, current, and future infringement
`
`thereof. The ’747 patent is valid and enforceable.
`55.
`
`American National has had actual notice of its infringement of the ’747 patent no
`
`later than the time of service of this Complaint.
`56.
`
`American National has directly infringed and continues to directly infringe,
`
`literally or under the doctrine of equivalents, at least claim 1 of the ’747 patent by making, using,
`
`selling, offering for sale, and/or importing into the United States the Accused Products in
`
`violation of 35 U.S.C. § 271(a).
`57.
`
`American National has directly infringed and continues to directly infringe,
`
`literally or under the doctrine of equivalents, at least claim 1 of the ’747 patent by making, using,
`
`selling, offering for sale, and/or importing the Accused Products to customers in the United
`
`States.
`
`58.
`
`On information and belief, American National has directly infringed and
`
`continues to directly infringe, literally or under the doctrine of equivalents, at least claim 1 of the
`
`’747 patent by advertising the Accused Products to customers in the United States. On
`
`information and belief, American National has directly infringed and continues to directly
`
`infringe, literally or under the doctrine of equivalents, at least claim 1 of the ’747 patent by
`
`performing quality control testing of the Accused Products in the United States.
`
`12
`
`Sleep Number Corp.
`EXHIBIT 2012
`IPR2019-00514
`Page 12
`
`

`

`
` Case 3:17-cv-03517-B Document 1 Filed 12/29/17 Page 13 of 16 PageID 13
`
`
`59.
`
`American National has also indirectly infringed and continues to indirectly
`
`infringe at least claim 1 of the ’747 patent by active inducement under 35 U.S.C. § 271(b) and by
`
`contributory infringement under 35 U.S.C. § 271(c).
`60.
`
`On information and belief, American National has been, and currently is, inducing
`
`infringement of at least claim 1 of the ’747 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 States, or to import the
`
`Accused Products into the United States, without license or authority from Sleep Number. On
`
`information and belief, American National provides instructions to customers, resellers, and end
`
`users on how to use and operate the Accused Products. For example, on information and belief,
`
`American National provides instructional materials, such as user guides, owner manuals, and
`
`similar online resources, on how to use and operate the Accused Products with specific intent of
`
`inducing customers, resellers, and end users to infringe at least claim 1 of the ’747 patent. By
`
`providing such instructions, American National knows (and has known), or should know (and
`
`should have known), that its actions have, and continue to, actively induce infringement of at
`
`least claim 1 of the ’747 patent.
`61.
`
`On information and belief, American National has been, and currently is,
`
`contributorily infringing at least claim 1 of the ’747 patent in violation of 35 U.S.C. § 271(c) by
`
`selling and offering for sale, in this judicial District and throughout the United States, the
`
`Accused Products, which embody a material component of the inventions claimed in at least
`
`claim 1 of the ’747 patent, are known by American National to be especially made or especially
`
`adapted for use in infringement of at least claim 1 of the ’747 patent, and are not staple articles of
`
`commerce or commodities suitable for a substantial, non-infringing use. On information and
`
`belief, the Accused Products are used to practice the claimed inventions of the ’747 patent and
`
`are especially made and designed to infringe at least claim 1 of the ’747 patent. On information
`
`and belief, there are no substantial non-infringing uses. On information and belief, American
`
`National’s actions contribute to the direct infringement of at least claim 1 of the ’747 patent by
`
`13
`
`Sleep Number Corp.
`EXHIBIT 2012
`IPR2019-00514
`Page 13
`
`

`

`
` Case 3:17-cv-03517-B Document 1 Filed 12/29/17 Page 14 of 16 PageID 14
`
`
`others, including customers, resellers, and end users of the Accused Products in violation of 35
`
`U.S.C. § 271(c).
`62.
`
`Unless enjoined by this Court, American National will continue to infringe at
`
`least claim 1 of the ’747 patent, and Sleep Number will continue to suffer irreparable harm for
`
`which there is no adequate remedy at law. Accordingly, Sleep Number is entitled to preliminary
`
`and/or permanent relief against such infringement pursuant to 35 U.S.C. § 283.
`63.
`
`As a result of American National’s infringement of the ’747 patent, Sleep Number
`
`has been and continues to be 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.
`64.
`
`On information and belief, American National’s infringement of the ’747 patent is
`
`willful and deliberate. For example, despite having knowledge of the ’747 patent, and
`
`knowledge that it is directly and/or indirectly infringing at least claim 1 of the ’747 patent,
`
`American National has nevertheless continued its infringing conduct in an egregious manner.
`
`For at least these reasons, American National’s infringing activities detailed above have been,
`
`and continue to be, willful, wanton, and deliberate in disregard of Sleep Number’s rights.
`
`Accordingly, Sleep Number is entitled to enhanced damages pursuant to 35 U.S.C. § 284 and to
`
`an award of attorney’s fees and costs incurred in prosecuting this action pursuant to 35 U.S.C.
`
`§ 285.
`
`
`PRAYER FOR RELIEF
`
`WHEREFORE, Sleep Number prays for judgment against Defendant as follows:
`
`A.
`
`A judgment declaring that Defendant has infringed one or more claims of each
`
`of the patents-in-suit in this litigation pursuant to 35 U.S.C. §§ 271(a), 271(b), and/or 271(c);
`
`B.
`
`A judgment pursuant to 35 U.S.C. § 283, preliminary and permanently enjoining
`
`Defendant, its

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