`
`
`
`ADAM K. YOWELL
`Nevada Bar No. 11748
`Adam.yowell@fisherbroyles.com
`FISHERBROYLES, LLP
`59 Damonte Ranch Pkwy
`Ste B # 508
`Reno, NV 89521
`Telephone: (775) 230-7364
`Counsel for Plaintiff
`
`UNITED STATES DISTRICT COURT
`
`DISTRICT OF NEVADA
`
`NEXRF Corp., a Nevada Corporation
`
` Plaintiff,
`
`
`v.
`
`Playtika Ltd., an Israel Corporation,
`Playtika Holding Corp., a Delaware
`Corporation, and Caesars Interactive
`Entertainment LLC, a Delaware LLC,
`
`
`
` Defendants.
`
`
`
` Case No.: 3:20-cv-603
`
`
`COMPLAINT FOR PATENT
`INFRINGEMENT
`
`
`
`
`
`DEMAND FOR JURY TRIAL
`
`
`
`
`
`
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`
`
`Telephone: (775) 230-7364
`
`Palo Alto, CA 94301
`
`530 Lytton Avenue, Second Floor
`FISHERBROYLES, LLP
`
`
`
`17
`
`Plaintiff NEXRF Corp. (“NEXRF”), a Nevada Limited Liability Company (“Plaintiff”)
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`files this Complaint for damages, injunctive relief and demand for a jury trial against Playtika Ltd.,
`
`Playtika Holding Corp. (collectively “Playtika”), and Caesars Interactive Entertainment, LLC
`
`(“CIE”), (collectively “Defendants”), and alleges as follows:
`
`NATURE OF THE CASE
`
`1.
`
`NEXRF brings this action against Defendants for infringement of U.S. Patent Nos.
`
`8,747,229 (the ‘229 patent), 8,506,406 (the ‘406 patent), 9,646,454 (the ‘454 patent), 8,506,407
`
`(the ‘407 patent), and 9,373,116 (the ‘116 patent) (collectively, the “patents in suit”).
`
`BACKGROUND
`
`2.
`
`The casino gaming industry has sought to create and encourage new ways for
`
`patrons to gamble on casino games. While many patrons enjoyed the experience of playing a real
`
`slot machine in front of them, many potential gaming patrons were underserved.
`
`1
`
`COMPLAINT
`4818-9333-3966, v. 3
`
`
`
`Case 3:20-cv-00603-MMD-CLB Document 1 Filed 10/26/20 Page 2 of 24
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`3.
`
`One area of interest to the casino industry was remote gaming, where a patron could
`
`play a casino game while not physically sitting in front of and interacting with a typical casino
`
`gaming device. Examples of prior art devices included systems where a patron would use a
`
`handheld device to “play” a casino game by causing a remotely located but otherwise typical slot
`
`machine to spin, and the information about the game outcome and the winnings would be
`
`communicated to the player through the handheld device. These devices were flawed. For
`
`example, they did not have a strict correlation between the actual game outcome and what the
`
`player was shown, and additionally required the operation of a physical slot machine as an input.
`
`4.
`
`The patents in suit disclose various systems and methods for embodiments of a fully
`
`remote, multiplayer capable, secure, and engaging casino-style gaming system. This novel design
`
`departed from prior art systems in that it, among other advancements, provided for streamlined
`
`media delivery for increased engagement with less resources, increased security to reduce
`
`unauthorized use, multiplayer extensibility with improved scaling and reliability, and a flexible
`
`infrastructure that could accommodate gambling or social gaming and different types of games.
`
`5.
`
`The inventive concepts of the patents in suit were unconventional. At the time of
`
`the patents in suit, it was not well-understood, conventional, or routine to have, among other
`
`
`
`Telephone: (775) 230-7364
`
`Palo Alto, CA 94301
`
`530 Lytton Avenue, Second Floor
`FISHERBROYLES, LLP
`
`
`
`17
`
`distinctions: 1) a central gaming server that determined game outcome, associated that game
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`outcome with an image ID, and transmitted that image/video and game outcome to a remote
`
`device; 2) a verification server coupled with a central gaming server to control access to gaming
`
`activities; and, 3) an image and/or video delivery component that included relatively fast memory
`
`to store and communicate media associated with recently generated game outcomes. These
`
`unconventional centralized server-based elements allowed for a stable, secure, flexible, engaging
`
`multiplayer-compatible online gaming experience for the user while minimizing the hardware,
`
`storage, and network burdens and requirements on the user’s device. This combination of
`
`desirable qualities was absent in prior art gaming systems, and providing popular features such as
`
`progressive jackpots was made simpler and more flexible by the system of the patents in suit.
`
`6.
`
`The ‘229 patent contains the additional unconventional element of a paytable
`
`module associated with the centralized gaming server, which allowed further advantages such as
`2
`
`COMPLAINT
`4818-9333-3966, v. 3
`
`
`
`Case 3:20-cv-00603-MMD-CLB Document 1 Filed 10/26/20 Page 3 of 24
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`the ability to change game outcome distributions and rewards for all connected devices with any
`
`software updates on the device.
`
`7.
`
`The ‘407 patent contains the additional unconventional element of a transactional
`
`system that credited funds from winning game outcomes to a user’s financial account, which
`
`increases security of the system and reduced the amount of processing and network activity
`
`required of the user’s device and its associated software.
`
`8.
`
`The ‘116 patent contains the additional unconventional elements of location
`
`tracking of the user and providing rewards to the user for their historical play, which increase the
`
`security of play and engagement of the user with the game.
`
`9.
`
`These are just exemplary reasons why the claimed inventions of the patents in suit
`
`were not well-understood, routine, or conventional.
`
`10.
`
`The value and unconventional nature of the claimed inventions of the patents in suit
`
`are further demonstrated by the fact that, despite being described nearly twenty years ago, it is
`
`only in the last few years that online mobile gambling and social casino gaming have become
`
`wide-spread. In those short recent years, however, both mobile casino gambling and social casino
`
`gaming have become massive, multi-billion dollar industries.
`
`
`
`Telephone: (775) 230-7364
`
`Palo Alto, CA 94301
`
`530 Lytton Avenue, Second Floor
`FISHERBROYLES, LLP
`
`
`
`17
`
`PARTIES
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`11.
`
`NEXRF Corp. is a Nevada corporation with a principal place of business at 9190
`
`Double Diamond Pkwy, Reno, NV 89521.
`
`12.
`
`Defendant Playtika Ltd. is a limited company incorporated and existing under the
`
`laws of Israel, with its principal place of business at 8 HaChoshlim Street, Herzliya 4672408,
`
`Israel. Playtika Ltd. conducts business throughout Nevada and the United States.
`
`13.
`
`Defendant Playtika Holding Corp. is a corporation incorporated and existing under
`
`the laws of Delaware, with its principal place of business at 2225 Village Walk Drive #240,
`
`Henderson, Nevada 89052. Playtika Holding Corp. conducts business throughout Nevada and the
`
`United States.
`
`14.
`
`Defendant Caesars Interactive Entertainment, LLC is a limited liability company
`
`organized and existing under the laws of Delaware, with its principal place of business at One
`3
`
`COMPLAINT
`4818-9333-3966, v. 3
`
`
`
`Case 3:20-cv-00603-MMD-CLB Document 1 Filed 10/26/20 Page 4 of 24
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`Caesars Palace Drive, Las Vegas, Nevada 89109. Caesars Interactive conducts business
`
`throughout Nevada and the United States.
`
`JURISDICTION AND VENUE
`
`15.
`
`This is a civil action seeking damages and injunctive relief for patent infringement
`
`under the patent laws of the United States, Title 35 of the United States Code. This Court has
`
`exclusive subject matter jurisdiction over this Complaint pursuant to 28 U.S.C. Sections 1331 and
`
`1338(a).
`
`16.
`
`This Court has personal jurisdiction over Playtika Ltd. Playtika Ltd. directly and
`
`through its agents regularly does, solicits, and transacts business in the State of Nevada, including
`
`making available the Accused Games (defined below) and related conduct and transactions with
`
`co-defendants Playtika Holding Corp. and CIE. Those acts have caused and continue to cause
`
`injury to NEXRF.
`
`17.
`
`This Court has personal jurisdiction over defendants Playtika Holding Corp. and
`
`CIE. Each of these entities has its principal place of business in Nevada, and directly and through
`
`its agents regularly does, solicits, and transacts business in the State of Nevada. Those acts have
`
`caused injury to NEXRF.
`
`
`
`Telephone: (775) 230-7364
`
`Palo Alto, CA 94301
`
`530 Lytton Avenue, Second Floor
`FISHERBROYLES, LLP
`
`
`
`17
`
`18.
`
`Venue is proper in this District under 28 U.S.C. Sections 1391 and 1400(b).
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Playtika Ltd. is a foreign corporation, and both Playtika Holding Corp and CIE have regular and
`
`established places of business in this District. Playtika Holding Corp. has its principal place of
`
`business at 2225 Village Walk Drive #240, Henderson, Nevada 89052. CIE has its principal place
`
`of business at One Caesars Palace Drive, Las Vegas, Nevada 89109. Defendants have also
`
`committed acts of infringement in this district by selling, using, and/or offering for sale the
`
`Accused Games in this District.
`
`JOINDER
`
`19.
`
`In 2011, CIE purchased Playtika Ltd.,1 and owned and operated Playtika Ltd. for
`
`several years until it sold Playtika Ltd. to a Chinese entity, Giant Interactive Group.2 The 2016
`
`1 Caesars Acquires Israel’s Playtika, Global Gaming Business, https://ggbmagazine.com/article/caesars-acquires-
`israels-playtika/ (last visited 10/20/2020).
`2 China's Giant leads consortium to buy Playtika for $4.4 billion, Game Beat,
`
`4
`
`COMPLAINT
`4818-9333-3966, v. 3
`
`
`
`Case 3:20-cv-00603-MMD-CLB Document 1 Filed 10/26/20 Page 5 of 24
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`sale of Playtika did not include the World Series of Poker game or the real-money online gaming
`
`business.3
`
`20.
`
`Playtika has continued to operate CIE-branded games, such as Caesars Casino.4
`
`The Caesars Rewards program is still associated with other Playtika games, such as Slotomania
`
`and Bingo Blitz.5
`
`21.
`
`Playtika and CIE’s ongoing relationship relating to many of the Accused Games
`
`means that the use of those same games amounts to a single transaction or occurrence as between
`
`Defendants. Defendants have been and are acting in concert, and are liable jointly, severally, or
`
`otherwise for a right to relief related to or arising out of the same transaction, occurrence, or series
`
`of transactions or occurrences related to the making, using, importing into the United States,
`
`offering for sale or selling the infringing products in this District. This action involves questions
`
`of law and fact that are common to all Defendants.
`
`22.
`
`Joinder of all Defendants is proper under 35 U.S.C. Section 299(a)(1) & (2).
`
`DEFENDANTS’ INFRINGEMENT OF NEXRF’S INTELLECTUAL PROPERTY
`
`23.
`
`The recent ubiquity of internet-connected personal devices combined with the
`
`unprecedented consequences of the current global pandemic have created a perfect storm for online
`
`
`
`Telephone: (775) 230-7364
`
`Palo Alto, CA 94301
`
`530 Lytton Avenue, Second Floor
`FISHERBROYLES, LLP
`
`
`
`17
`
`real-money gambling and social free-to-play gaming.
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`24.
`
`Online real-money gaming was recently legalized in a few states, and allows users
`
`to wager real money in an online environment similar to a real casino. Online real-money games
`
`are associated with a real casino and provide the closest virtual alternative to the physical play of
`
`a slot machine in a casino. In the second quarter of 2020 alone, the online casino gambling games
`
`market in the US generated over $400 million in revenue.6
`
`25.
`
`Despite the name, “free-to-play” social casino games are enormously lucrative.
`
`https://venturebeat.com/2016/07/30/chinas-giant-leads-consortium-to-buy-playtika-for-4-4-billion/ (last visited
`10/20/2020).
`3 Id.
`4 Google Play Store page for Caesars Casino: Free Slots Games,
`https://play.google.com/store/apps/details?id=com.playtika.caesarscasino&hl=en_US (last visited 10/20/2020).
`5 Caesars Play Online, https://www.caesars.com/play (last visited 10/20/2020).
`6 Online poker and casino games have tripled their revenue from last year as real-world casinos shut their doors,
`Business Insider, https://www.businessinsider.com/online-poker-casino-games-business-triple-as-casinos-close-
`2020-8 (last visited 10/20/2020).
`
`5
`
`COMPLAINT
`4818-9333-3966, v. 3
`
`
`
`Case 3:20-cv-00603-MMD-CLB Document 1 Filed 10/26/20 Page 6 of 24
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`While the download of the game is free, thousands of “in-app” items range in price from a few
`
`cents to hundreds of dollars. These in-app purchases are often subject to heavy discounts in flash
`
`sales and are constantly presented to the player. Defendant Playtika alone generated $425 million
`
`in revenue in the first quarter of 2020.7 Total revenue for the social casino market are projected to
`
`be approximately $6 billion in 2020. Id.
`
`26.
`
`Defendants provided games in both the real-money and social categories. In the
`
`real money category, Defendants have at least the Caesars Casino and Sports App. The Caesars
`
`Casino and Sports App is made available to the public at least through the iOS App Store8 and the
`
`Caesars Casino website.9 The Caesars Casino website includes instructions for the download,
`
`installation, and account creation steps for the user.10
`
`27.
`
`The use, operation, and distribution of the Caesars Casino and Sports App is
`
`representative of Defendants’ real money online slot games, which are collectively referred to as
`
`the “Accused Gambling Games.” “Accused Gambling Games” includes the game application and
`
`the infrastructure necessary to operate the game, such as game servers.
`
`28.
`
`In the social casino games category, Defendants are some of the leading game
`
`publishers. Playtika claims over 280,000,000 installations of its Social Casino Games.11 CIE also
`
`
`
`Telephone: (775) 230-7364
`
`Palo Alto, CA 94301
`
`530 Lytton Avenue, Second Floor
`FISHERBROYLES, LLP
`
`
`
`17
`
`claims to be a “leading provider of social slots games for players on iOS and Android devices.”12
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Exemplary social casino games from Defendants include Slotomania, Caesars Casino: Free Slots
`
`Games, and Vegas Downtown Slots – Slot Machines & Word Games. The use, operation, and
`
`distribution of these exemplar apps is representative of Defendants’ social casino slot games,
`
`which are collectively referred to as the “Accused Social Games.” “Accused Social Games”
`
`includes the game application and the infrastructure necessary to operate the game, such as game
`
`servers. The Accused Gambling Games and the Accused Social Games are, collectively, the
`
`
`7 No slots, no problem: Social gaming steps in to fill the empty space, CDC Gaming Reports,
`https://www.cdcgamingreports.com/commentaries/no-slots-no-problem-social-gaming-steps-in-to-fill-the-empty-
`space/ (last visited 10/20/2020).
`8 https://apps.apple.com/us/app/caesars-casino-sportsbook-nj/id876336616 (last visited 10/20/2020).
`9 https://www.caesarscasino.com/ (last visited 10/20/2020).
`10 https://www.caesarscasino.com/p/mobile-casino/ (last visited 10/20/2020).
`11 https://play.google.com/store/apps/dev?id=8370476508159322879&hl=en&gl=US (last visited 10/20/2020).
`12 https://www.caesarsgames.com/2018/08/30/can-you-win-real-money-on-slot-apps/ (last visited 10/20/2020).
`
`6
`
`COMPLAINT
`4818-9333-3966, v. 3
`
`
`
`Case 3:20-cv-00603-MMD-CLB Document 1 Filed 10/26/20 Page 7 of 24
`
`
`
`“Accused Games.”
`
`COUNT I – INFRINGEMENT OF U.S. PATENT NO. 8,747,229
`
`(Against all Defendants)
`
`Paragraphs 1 through 28 are incorporated herein by reference.
`
`U.S. Patent No. 8,747,229, titled “Gaming System Network and Method for
`
`29.
`
`30.
`
`Delivering Gaming Media,” was duly and lawfully issued by the United States Patent and
`
`Trademark Office on June 10, 2014. A true and correct copy of the ‘229 patent is attached as
`
`Exhibit 1.
`
`31.
`
`NEXRF is the owner by assignment of all rights, title, and interest in the ‘229
`
`patent, including the right to bring this suit for past and future damages and/or injunctive relief.
`
`32.
`
`33.
`
`The ‘229 patent is valid and enforceable.
`
`Defendants infringe one or more claims of the ‘229 patent, including but not limited
`
`to claim 1, directly and/or indirectly via induced infringement and/or contributory infringement.
`
`Defendants infringe the asserted claims of the ‘229 patent by making, using, importing, selling for
`
`importation, and/or selling after importation into the United States at least the Accused Games in
`
`violation of 35 U.S.C. Section 271(a)-(b). The Accused Games satisfy all limitations of the
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`
`
`Telephone: (775) 230-7364
`
`Palo Alto, CA 94301
`
`530 Lytton Avenue, Second Floor
`FISHERBROYLES, LLP
`
`
`
`17
`
`asserted claims of the ‘229 patent at least when the respective game is made available for download
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`and play by a user, or after being installed by a user, or after being installed and played by a user.
`
`34.
`
`Defendants had actual knowledge of the ‘229 patent or were willfully blind to its
`
`existence and their infringement no later than the filing of this action. Defendants’ ongoing
`
`infringement is willful and deliberate, entitling NEXRF to enhanced damages.
`
`35.
`
`Defendants directly infringe the asserted claims of the ‘229 patent by making,
`
`using, offering to sell, or selling the Accused Games in the United States in violation of 35 U.S.C.
`
`Section 271(a). Claim 1 of the ‘229 patent is exemplary and recites:
`1. A gaming server system configured to communicate with at least one network
`access device communicatively coupled to a network, the gaming server system
`comprising:
`a verification system configured to access a registration database having a
`plurality of registration data associated with each registered user;
`a memory module configured to store a plurality of images corresponding to
`at least one game outcome that are communicated to the at least one network access
`device;
`
`7
`
`COMPLAINT
`4818-9333-3966, v. 3
`
`
`
`Case 3:20-cv-00603-MMD-CLB Document 1 Filed 10/26/20 Page 8 of 24
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`a centralized gaming server communicatively coupled to each of the at least
`one network access device, the centralized gaming server configured to generate at
`least one random game outcome by random generation at the centralized gaming
`server;
`
`a paytable module associated with the centralized gaming server, the
`paytable module configured to determine one or more prizes associated with a game
`outcome; and
`the centralized gaming server configured to access the memory module and
`communicate the plurality of images corresponding to the at least one random game
`outcome to the at least one network access device.
`
`36.
`
`37.
`
`Defendants infringe claim 1 for at least the following reasons:
`
`To the extent the preamble is limiting, the Accused Games comprise a gaming
`
`server system configured
`
`to communicate with at
`
`least one network access device
`
`communicatively coupled to a network.
`
`38.
`
`On information and belief, the Accused Games include a verification system
`
`configured to access a registration database having a plurality of registration data associated with
`
`each registered user. The Accused Games allow and/or require a user to register for a user account,
`
`which includes the transmission of registration that may include the player’s name, user name,
`
`password, Facebook account, and/or other registration data. The Accused Gambling Games also
`
`require more substantive registration data to comply with online gambling regulations. The user
`
`registration data is stored in a database in a verification system such that the registration data is
`
`
`
`Telephone: (775) 230-7364
`
`Palo Alto, CA 94301
`
`530 Lytton Avenue, Second Floor
`FISHERBROYLES, LLP
`
`
`
`17
`
`associated with the registered user.
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`39.
`
`On information and belief, the Accused Games include a memory configured to
`
`store a plurality of images corresponding to at least one game outcome that are communicated to
`
`the at least one network access device. For example, the Accused Games display celebration
`
`graphics and text and/or the display of the slot machine reels when the player achieves certain
`
`winning outcomes, such as a winning slot machine spin. At least some of those images are
`
`transmitted to the user device over normal internet protocols after the particular game is installed.
`
`40.
`
`On information and belief, the Accused Games include a centralized gaming server
`
`communicatively coupled to each of the at least one network access device, the centralized gaming
`
`server configured to generate at least one random game outcome by random generation at the
`
`centralized gaming server. For example, the Accused Games include one or more servers that
`
`players connect to in order to play the games, and which generate at least some game outcomes
`8
`
`COMPLAINT
`4818-9333-3966, v. 3
`
`
`
`Case 3:20-cv-00603-MMD-CLB Document 1 Filed 10/26/20 Page 9 of 24
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`for players playing the game. These game outcomes are generated using a random number
`
`generator (“RNG”). For the Accused Gambling Games, the RNG game outcome determination is
`
`required by regulations to be conducted at a centralized server.
`
`41.
`
`On information and belief, the Accused Games include a paytable module
`
`associated with the centralized gaming server, the paytable module configured to determine one
`
`or more prizes associated with a game outcome. For example, each slot skin playable on an
`
`Accused Game has a paytable, and those paytables can often be displayed to the user if the user
`
`performs certain commands. These paytables comprise a matrix of game outcomes, such as slot
`
`reel positions, and the resulting prize, such as a multiple of a bet, a jackpot, free spins, a bonus
`
`game, or nothing.
`
`42.
`
`On information and belief, the centralized gaming server(s) of the Accused Games
`
`are configured to access the memory module and communicate the plurality of images
`
`corresponding to the at least one random game outcome to the at least one network access device.
`
`For example, the mobile application for the particular Accused Game is first downloaded from the
`
`appropriate mobile application store, such as the Apple App Store or Google Play. However, after
`
`the mobile app is downloaded and installed, additional graphical assets are downloaded for display
`
`
`
`Telephone: (775) 230-7364
`
`Palo Alto, CA 94301
`
`530 Lytton Avenue, Second Floor
`FISHERBROYLES, LLP
`
`
`
`17
`
`to the player, including some that are downloaded contemporaneously with play. At least some of
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`these post-install graphical assets are communicated to the user device from the centralized gaming
`
`server(s).NEXRF has and continues to be damaged by the Defendants’ infringement of the ‘229
`
`patent.
`
`43.
`
`44.
`
`COUNT II – INFRINGEMENT OF U.S. PATENT NO. 8,506,406
`
`(Against all Defendants)
`
`Paragraphs 1 through 42 are incorporated herein by reference.
`
`U.S. Patent No. 8,506,406, titled “Network Access Device and Method to Run a
`
`Game Application,” was duly and lawfully issued by the United States Patent and Trademark
`
`Office on August 13, 2013. A true and correct copy of the ‘406 patent is attached as Exhibit 2.
`
`45.
`
`NEXRF is the owner by assignment of all rights, title, and interest in the ‘406
`
`patent, including the right to bring this suit for past and future damages and/or injunctive relief.
`
`9
`
`COMPLAINT
`4818-9333-3966, v. 3
`
`
`
`Case 3:20-cv-00603-MMD-CLB Document 1 Filed 10/26/20 Page 10 of 24
`
`
`
`46.
`
`47.
`
`The ‘406 patent is valid and enforceable.
`
`Defendants infringe one or more claims of the ‘406 patent, including but not limited
`
`to claim 1, directly and/or indirectly via induced infringement and/or contributory infringement.
`
`Defendants infringe the asserted claims of the ‘406 patent by making, using, importing, selling for
`
`importation, and/or selling after importation into the United States at least the Accused Games in
`
`violation of 35 U.S.C. Section 271(a)-(b). The Accused Games satisfy all limitations of the
`
`asserted claims of the ‘406 patent at least when the respective game is made available for download
`
`and play by a user, or after being installed by a user, or after being installed and played by a user.
`
`48.
`
`Defendants had actual knowledge of the ‘406 patent or were willfully blind to its
`
`existence and their infringement no later than the filing of this action. Defendants’ ongoing
`
`infringement is willful and deliberate, entitling NEXRF to enhanced damages.
`
`49.
`
`Defendants directly infringe the asserted claims of the ‘406 patent by making,
`
`using, offering to sell, or selling the Accused Games in the United States in violation of 35 U.S.C.
`
`Section 271(a). Defendants directly infringe the asserted claims of the ‘406 patent, at minimum,
`
`through use of the system for testing. Claim 1 of the ‘406 patent is exemplary and recites:
`1. A system to run a gaming application on a network access device, comprising:
`the network access device; and
`a remote gaming system including a verification system;
`the network access device configured to transmit user identification information
`and security information to the verification system;
`the network access device configured to receive an acknowledgement from the
`verification system indicating that the user identification information and security
`information are valid;
`the network access device configured to receive a game input from a user of the
`network access device and transmit the game input to the remote gaming system;
`the remote gaming system configured to receive the game input and generate a
`random game output, the remote gaming system further configured to associate an image
`ID with the random game output and select one or more images associated with the image
`ID for encoding and broadcasting to the network access device;
`the network access device configured to receive a plurality of broadcast images
`generated by the remote gaming system.
`
`50.
`
`51.
`
`Defendants infringe claim 1 for at least the following reasons:
`
`To the extent the preamble is limiting, the Accused Games as operated include a
`
`system to run a gaming application on a network access device.
`
`52.
`
`On information and belief, the Accused Games, in operation, include a network
`
`access device such as a phone or laptop.
`
`COMPLAINT
`4818-9333-3966, v. 3
`
`10
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`
`
`Telephone: (775) 230-7364
`
`Palo Alto, CA 94301
`
`530 Lytton Avenue, Second Floor
`FISHERBROYLES, LLP
`
`
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`Case 3:20-cv-00603-MMD-CLB Document 1 Filed 10/26/20 Page 11 of 24
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`53.
`
`On information and belief, the Accused Games include a remote gaming system
`
`including a verification system. For example, the Accused Games allow and/or require a user to
`
`register for a user account and log into a central gaming server system in order to play the games.
`
`54.
`
`On information and belief, the Accused Games include that the network access
`
`device is configured to transmit user identification information and security information to the
`
`verification system. For example, the Accused Games when operated on a user device collect and
`
`transmit registration data that may include the player’s name, user name, password, and other
`
`registration data to the verification system.
`
`55.
`
`On information and belief, the Accused Games include that the network access
`
`device is configured to receive an acknowledgement from the verification system indicating that
`
`the user identification information and security information are valid. For example, the
`
`verification system of the central gaming server system sends a message to the Accused Game
`
`application running on a user device that the login information is verified, and the login is allowed
`
`to complete and the user to play the game.
`
`56.
`
`On information and belief, the Accused Games include that the network access
`
`device is configured to receive a game input from the user and transmit the game input to the
`
`
`
`Telephone: (775) 230-7364
`
`Palo Alto, CA 94301
`
`530 Lytton Avenue, Second Floor
`FISHERBROYLES, LLP
`
`
`
`17
`
`remote gaming system. For example, an Accused Game on a user device will receive an input,
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`such as a touch input, of a user selecting an action, such as touching or clicking the spin button in
`
`the game. This input is then transmitted by the Accused Game application to the remote gaming
`
`server system and the inputted command is executed, such as by initiating the play of the game.
`
`57.
`
`On information and belief, the Accused Games include that the remote gaming
`
`system is configured to receive the game input and generate a random game output, the remote
`
`gaming system further configured to associate an image ID with the random game output and
`
`select one or more images associated with the image ID for encoding and broadcasting to the
`
`network access device. For example, the Accused Games include one or more servers that players
`
`connect to in order to play the games, and which generate at least some game outcomes for players
`
`playing the game. These game outcomes will be generated after the player initiates play, which is
`
`communicated to the gaming server from the Accused Game application running on the user
`11
`
`COMPLAINT
`4818-9333-3966, v. 3
`
`
`
`Case 3:20-cv-00603-MMD-CLB Document 1 Filed 10/26/20 Page 12 of 24
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`device. These game outcomes are generated using a RNG. For the Accused Gambling Games,
`
`the RNG game outcome determination is required by regulations to be conducted at a centralized
`
`server. The central gaming server system further associates the generated game outcome with an
`
`image ID, such as a celebratory graphic for a winning spin, or the icons on the virtual slot reels.
`
`These images are then encoded and transmitted to the user device over the internet.
`
`58.
`
`On information and belief, the Accused Games include that the network access
`
`device is configured to receive a plurality of broadcast images generated by the remote gaming
`
`system. The Accused Game application running on the user device includes instructions sufficient
`
`for the user device to be configured to receive the broadcast images from the central gaming server
`
`system and display one or more of those images to the user.
`
`59.
`
`Defendants directly infringe the asserted claims of the ‘406 patent because they use
`
`the system as a whole and put it into service. Defendants or their agents supply every component
`
`of the system except the user device, to the extent that is a required element of an asserted claim.
`
`Further, Defendants’ applications on a user device control all claimed components, configurations,
`
`functions, and processes, which constitutes sufficient control over the user device.
`
`60.
`
`In addition, Defendants are vicariously liable for the actions of its customers
`
`
`
`Telephone: (775) 230-7364
`
`Palo Alto, CA 94301
`
`530 Lytton Avenue, Second Floor
`FISHERBROYLES, LLP
`
`
`
`17
`
`because the only action required of a user is to play the Accused Game. Defendants condition the
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`benefits of playing the game upon th