Case 6:22-cv-00288-ADA Document 20 Filed 06/24/22 Page 1 of 27
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`WACODIVISION
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`Civil Action No.: 6:22-cv-00288-ADA
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`JURY TRIAL DEMANDED
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`§§
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`§§
`
`:
`:
`
`FINTIV,INC.,
`
`Plaintiff,
`
`v.
`PAYPAL HOLDINGS,INC.
`
`Defendant.
`
`§
`
`FIRST AMENDED COMPLAINT FOR PATENT INFRINGEMENT
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`Plaintiff Fintiv, Inc. (“Fintiv”’), by and through its attorneys, for its First Amended Original
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`Complaint for Patent Infringement against Defendant PayPal Holdings, Inc. (“PayPal”), hereby
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`alleges the following:
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`I. NATURE OF THE ACTION
`
`1.
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`PayPal, a $112 billion company, for years has been unlawfully using property
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`owned by Fintiv — mobile wallet patents invented by Fintiv, a small technology company — and
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`making enormousprofits from its use of those extremely valuable patents. PayPal has not only
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`been knowingly and unlawfully using Fintiv’s patents without Fintiv’s permission, but it has flatly
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`refused to pay Fintiv for its use of those patents. Accordingly, Fintiv brings this patent
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`infringementaction to put an end to PayPal’s unauthorized and infringing use of Fintiv’s patented
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`inventions and to recover the damages Fintiv has suffered as a result of PayPal’s egregious
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`misconduct.
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`2.
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`Fintiv is the ownerofall rights, titles, and interests in and to United States Patent
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`Nos. 8,538,845 (the “’845 Patent”), 9,892,386 (the “386 Patent”), and 11,120,413 (the “’413
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`Patent”), 9,208,488 (the “’488 Patent’), and the 10,438,196 (the “’196 Patent’’) (collectively the
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`“Patents-in-Suit”). The ’845 Patent, ’386 Patent, and ’413 Patent are titled “Monetary Transaction
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`System.” The °488 Patent and ’196 Patent are titled “Using a Mobile Warrant Infrastructure to
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`Support Multiple Mobile Wallet Providers.” True and correct copies of the Patents-in-Suit are
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`attached hereto as Exhibits.
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`3.
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`PayPal makes, provides,sells, offers for sale, uses, and/or distributes products and
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`services which directly infringe the Patents-in-Suit. Further, PayPal indirectly infringes the
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`Patents-in-Suit by inducing and/or contributing to infringement by others, including PayPalusers.
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`4.
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`Fintiv seeks monetary damages, injunctive relief, and pre- and post—judgment
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`interest for PayPal’s past and continuing infringementof the Patents-in-Suit.
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`II. PARTIES
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`5.
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`Plaintiff Fintiv, Inc.
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`is a Delaware corporation having a principal place of
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`business at 801 Barton Springs, Austin, Texas 78704.
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`6.
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`Fintiv is a financial technology companythat provides mobile commerce, payment
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`solutions, and digital currency globally.
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`7.
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`Fintiv’s cloud-based technology delivers payments, mobile loyalty solutions, and
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`digital currency to companies in retail, financial services, consumer packaged goods, and telecom
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`that serve both banked and unbanked consumers worldwide via the mobile phone. Fintiv also
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`offers mobile wallet solutions that are capable of a variety of transactions, including mobile
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`payments, digital currency, money transfer, remittance, bill payment, point-of-sale integration,
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`loyalty rewards, and cloud payments.
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`8.
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`Fintiv,
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`through its wholly-owned operating subsidiary, Cloud Payments LLC
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`(“Cloud Payments”), processes merchant and consumer payments and loyalty. Cloud Payments
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`uses sophisticated and proprietary technologies and techniques to optimize online, point ofsale,
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`and mobile payments. Cloud Payments’ optimized payment processing service delivers a lower
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`cost and higher value, offers a suite of digital engagement tools enabling marketing automation
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`using payment data, and employs data monetization to generate net-new revenue for customers. It
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`is available through app store through the apptitled “Fundz.”
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`9.
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`Defendant PayPal Holdings,Inc. is a corporation organized and existing under the
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`laws of Delaware and has a regular and established place of business at 7700 W Palmer Lane,
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`Building D, Austin, Texas 78729 (the “Austin Office”). Upon information and belief, PayPal has
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`over 150 employees at this location, including engineers, developers, and business analysts.
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`PayPal consistently advertises jobs for its Austin Office, and hosts meetings at the Austin Office.
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`For example, PayPal currently is advertising numerous technical and businessroles involving the
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`technology disclosed in the asserted Patents, including specifically positions related to mobile
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`wallets, mobile payments including engineering, software development, marketing, sales, and
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`related positions.
`
`e
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`https://jobsearch.paypal-corp.com/en-US/job/branded-experiences-quality-
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`engineer/J3Q3006WVSS8T769XVH
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`e
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`https://jobsearch.paypal-corp.com/en-US/job/branded-experiences-backend-
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`engineer/J3M69M66890YLKYXGX5
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`e=https://jobsearch.paypal-corp.com/en-US/job/branded-experiences-ios-
`
`engineer/J3V4TJ6S2WF7LFMYC7K
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`e=https://jobsearch.paypal-corp.com/en-US/job/staff-software-
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`engineer/J3T1Q16N10753B123TQ
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`e
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`https://jobsearch.paypal-corp.com/en-US/job/director-payment-optimization-
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`bd/J3V6DNSWBDG4TZG898Z
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`e
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`https://jobsearch.paypal-corp.com/en-US/job/str-product-insights-market-
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`research/J3R8F366SP695212H44
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`e
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`https://jobsearch.paypal-corp.com/en-US/job/mobile-software-engineer-
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`android/J3W2M8757N3NRY06Z67
`
`e
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`https://jobsearch.paypal-corp.com/en-US/job/sr-sales-
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`engineer/J3P8635X03KDV1WFH32
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`10.=PayPalis a financial technology companythat operates an online payments system,
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`serves as an electronic alternative to traditional paper methods such as checks and moneyorders,
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`and processes payments.
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`Ii. JURISDICTION AND VENUE
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`11.
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`This is an action for patent infringement, which arises under the Patent Lawsofthe
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`United States, in particular, 35 U.S.C. §§ 271, 281, 282, 284, and 285. The Court hasjurisdiction
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`over the subject matter of this action under 28 U.S.C. §§ 1331 and 1338(a).
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`12.|This Court has personal jurisdiction over PayPal because it has committed acts
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`givingrise to this action within Texas and within this judicial district. PayPal also regularly does
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`business or solicits business in this District and in Texas, engages in other persistent courses of
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`conduct and derives substantial revenue from products and/or services providedin this District and
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`in Texas, and has purposefully established substantial, systematic, and continuous contacts within
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`this District and should reasonably expectto be sued in a court in this District. For example, PayPal
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`has offices and employees in this District, including the Austin Office, and has a Texas registered
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`agent for service. Given these contacts, the Court’s exercise of jurisdiction over PayPal will not
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`offendtraditional notions of fair play and substantial justice.
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`13.
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`Venue in the Western District of Texas is proper pursuant to 28 U.S.C. §§ 1391(b),
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`(c) and 1400(b) because PayPalhasan established place ofbusinessin this District at 7700 W Palmer
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`Lane, Building D, Austin, Texas 78729, has committed acts within this judicial district giving rise
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`to this action, and continues to conduct businessin this judicial district, including one or moreacts
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`of making, selling, using, importing and/or offering for sale infringing products and services to
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`PayPal’s customersin this District.
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`IV. THE PATENTS-IN-SUIT
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`The ’845 Patent
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`14.
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`The °845 Patent
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`is titled “Monetary Transaction System.” The provisional
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`applications of the ’845 Patent were filed on June 3, 2011 and August 10, 2011. The non-
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`provisional application of the ’845 Patent was filed on May 30, 2012. The ’845 Patent issued on
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`September 17, 2013. A true and correct copy of the 845 Patent is attached hereto as Exhibit A
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`and incorporated herein by reference.
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`15.
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`The ’845 Patent is fully described and explained in the attached Exemplary ’845
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`Patent Infringement Chart. A true and correct copy of the Exemplary ’845 Patent Infringement
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`Chart is attached hereto as Exhibit B.
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`16.
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`Fintiv ownsall substantial and material rights to and interests in the ’845 Patent,
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`including the right to recover damagesforall past and future infringementthereof.
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`17.
`
`The ’845 Patentis valid and enforceable.
`
`The ’386 Patent
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`18.
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`The 386 Patent is titled “Monetary Transaction System.” The non-provisional
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`application of the ’386 Patent was filed on July 1, 2016, which is a continuation of provisional
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`applications filed on June 3, 2011 and August 10, 2011, and claimspriority to the same. The ’386
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`Patent issued on February 13, 2018. A true and correct copy of the ’386 Patent is attached hereto
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`as Exhibit C and incorporated herein by reference.
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`19.
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`The ’386 Patent is fully described and explained in the attached Exemplary °386
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`Patent Infringement Chart. A true and correct copy of the Exemplary ’386 Patent Infringement
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`Chart is attached hereto as Exhibit D.
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`20.—Fintiv ownsall substantial and material rights to and interests in the 386 Patent,
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`including the right to recover damagesforall past and future infringementthereof.
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`21. The ’386 Patent is valid and enforceable.
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`The °413 Patent
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`22.
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`The ’413 Patent is titled “Monetary Transaction System.” The non-provisional
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`application of the ’413 Patent was filed on September 12, 2019, which is a continuation of
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`provisional applications filed on June 3, 2011 and August 10, 2011, and claimspriority to the
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`same. The ’413 Patent issued on September 14, 2021. A true and correct copy of the ’413 Patent
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`is attached hereto as Exhibit E and incorporated herein by reference.
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`23.
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`The 413 Patent is fully described and explained in the attached Exemplary ’413
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`Patent Infringement Chart. A true and correct copy of the Exemplary °413 Patent Infringement
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`Chart is attached hereto as Exhibit F.
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`24.
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` Fintiv ownsall substantial and material rights to and interests in the ’413 Patent,
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`including the right to recover damagesforall past and future infringementthereof.
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`25.
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`The ’413 Patent is valid and enforceable.
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`The °488 Patent
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`26.
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`The ’488 Patentis titled “Using a Mobile Wallet Infrastructure to Support Multiple
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`Mobile Wallet Providers.” The non-provisional application of the ’488 Patent was filed on
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`November 19, 2012, which is a continuation of provisional applications filed on November21,
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`2011 and claimspriority to the same. The ’488 Patent was issued on December8, 2015. A true
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`and correct copy of the ’488 Patent is attached hereto as Exhibit G and incorporated herein by
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`reference.
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`27.
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`The *488 Patent is fully described and explained in the attached Exemplary ’488
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`Patent Infringement Chart. A true and correct copy of the Exemplary °488 Patent Infringement
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`Chart is attached hereto as Exhibit H.
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`28.
`
` Fintiv ownsall substantial and material rights to and interests in the 488 Patent,
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`including the right to recover damagesforall past and future infringementthereof.
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`29.
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`The ’488 Patent is valid and enforceable.
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`The°196 Patent
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`30.
`
`The ’196 Patent is titled “Using a Mobile Wallet Infrastructure to Support Multiple
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`Mobile Wallet Providers.” The non-provisional application of the ’196 Patent was filed on
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`October 30, 2015, which is a continuation of provisional applications filed on November 21, 2011
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`and claimspriority to the same. The ’196 Patent was issued on October 8, 2019. A true and correct
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`copy ofthe ’196 Patent is attached hereto as Exhibit I and incorporated herein by reference.
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`31.
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`The 196 Patent is fully described and explained in the attached Exemplary 196
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`Patent Infringement Chart. A true and correct copy of the Exemplary ’196 Patent Infringement
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`Chart is attached hereto as Exhibit J.
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`32.
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` Fintiv ownsall substantial and material rights to and interests in the ’196 Patent,
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`including the right to recover damagesforall past and future infringementthereof.
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`33.
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`The °196 Patent is valid and enforceable.
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`V. PAYPAL’S PRE-SUIT KNOWLEDGEOF FINTIV
`AND THE PATENTS-IN-SUIT
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`34.
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`Priorto filing this complaint, Fintiv informed PayPal that it was using the Patents-
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`in-Suit, offered to license its patents, including the Patents-in-Suit, to PayPal, and shared detailed
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`information aboutits patents, including the Patents-in-Suit, with PayPal. Accordingly, PayPal had
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`knowledgeof Fintiv and the Patents-in-Suit prior to the filing of this complaint.
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`35.
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`On or about March 15, 2016, the Global Strategic Partner of Business Development
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`for PayPalat the time (““PayPal’s Agent”) emailed Fintiv requesting contact info or a teleconference
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`with one of the founders of Fintiv (the “Fintiv’s Founder”). PayPal’s Agent held numerousrolesat
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`PayPal from August 2011 to November 2020, whenheleft to serve as Head ofNorth America New
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`Channel Sales at PayPal for Hyperwallet (where he remainstoday).
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`36.
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`On or about March 16, 2016, Fintiv’s Founder and PayPal’s Agent had a phonecall
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`that lasted over an hour to discuss Fintiv’s patented technology,a strategic partnership between the
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`two companies, and PayPal’s interest in acquiring Fintiv. On this call Fintiv, discussed the ’845
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`and °488 Patents extensively.
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`37.
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`In addition, during the call, PayPal asked about acquiring Fintiv. PayPal’s Agent
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`asked Fintiv’s Founder if he and the management team would be available for a meeting with
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`PayPal’s Senior Vice President, Head of Corporate Development (M&A)(“PayPal’s SVP”) at the
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`time. PayPal’s Agent said that the meeting could be held within ten days at Fintiv headquarters in
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`Austin. PayPal’s Agent informed Fintiv’s Founder that PayPal’s SVP traveled regularly to PayPal’s
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`Austin offices. The meeting in Austin did not end up taking place.
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`38.
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`On or about June 13, 2019, the Chairman of Advection Growth Capital LLC
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`(“Advection”), acting on behalf of Fintiv, sent an email to PayPal’s Director of Global Corporate
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`Development (“PayPal’s Director”) specifically identifying the 845, ’386, and ’488 Patents and
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`explaining how these patents could be of benefit to PayPal under a section titled “PayPal
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`Engagement Notes.” PayPal’s Director has been employed at PayPal since May 2015, and currently
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`serves as PayPal’s Senior Director of Global Corporate Development. This email also attached a
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`15-page PowerPoint presentation created by Fintiv that specifically discussed the ’845, ’386, and
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`°488 Patents and the technology claimed by them to furtherillustrate the benefits of those patents
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`to PayPal, and described Fintiv’s lines ofbusiness, including Cloud Payments’ payment processing
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`and interchange optimization.
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`39.
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`On or about August 1, 2019, Fintiv’s President, one of Fintiv’s directors (“Fintiv’s
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`Director’), and Advection, had a call with PayPal’s Director, to further explore PayPal’s licensing
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`of the Patents-in-Suit due to their continued infringementofthe patents.
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`40.
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`On or about August 8, 2019, Fintiv’s President, Fintiv’s Director, and Advection
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`met with PayPal at PayPal’s headquarters in San Jose. PayPal’s Director and its Investor of PayPal
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`Ventures (“PayPal’s Investor’), attended this one-hour meeting, during which Fintiv shared further
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`details regarding the Patents-in-Suit for the purpose of entering into a license deal with PayPal.
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`Fintiv further told PayPal’s representatives of about the applications, amendments, and portfolio of
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`an additional 80 pending patents it had and noted that PayPal would be infringing on said patents
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`in addition to the issued patents they were already infringing upon. The Parties also talked about
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`PayPal’s continued interested in acquiring Fintiv.
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`Al.
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`After delaying over the course of a year, Defendant decided not to license the
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`Patents-in-Suit or acquire Fintiv.
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`42.
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`However, PayPal has continued to make, provide,sell, offer for sale, use, and/or
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`distribute products and services which directly infringe the Patents-in-Suit. Further, PayPal has
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`continued to indirectly infringe the Patents-in-Suit by inducing and/or contributing to the
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`infringement by others, including PayPal users and partners.
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`COUNTI: DIRECT INFRINGEMENT OF THE ’845 PATENT
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` Fintiv incorporates paragraphs 1 through 42 herein by reference.
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`PayPal, without authorizationor license from Fintiv, has been andis presently directly
`
`43.
`
`44.
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`infringing,
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`literally or under the doctrine of equivalents, at least claim 5 of the ’845 Patent
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`(“Exemplary °845 Patent Claims’), as infringement is defined by 35 U.S.C. § 271(a), including
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`through making, using (including for testing purposes), selling, offering for sale, and/or distributing
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`infringing products. Exemplary infringing products include at least PayPal’s servers and Backend
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`System that interacts with mobile devices (collectively, “Exemplary PayPal Products”).
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`45.
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`Exhibit B attached hereto includes charts comparing the Exemplary ’845 Patent
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`Claims to the Exemplary PayPal Products. As set forth in these charts, the Exemplary PayPal
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`Products practice the technology claimed by the 845 Patent. Accordingly, the Exemplary PayPal
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`Products incorporated in these charts satisfy all elements of the Exemplary ’845 Patent Claims
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`literally or under the doctrine of equivalents.
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`46.
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`On information and belief, Fintiv asserts that PayPal has directly infringed and
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`continues to directly infringe the Asserted Claims through PayPal Mobile Payment systems and
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`back end servers used with PayPal’s mobile applications and Business offerings.
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`See e.g.
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`https://www.paypal.com/us/business/accept-payments; https://venmo.com/business/start/,
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`On
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`information andbelief, Fintiv asserts that direct infringementis performed, for example, by PayPal
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`through making, selling, offering to sell and/or use of the PayPal and/or Venmo Systems. On
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`information and belief, Fintiv asserts that PayPal also makes and uses the system, for example,
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`10
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`through testing the accused products, including with mobile devices that communicate with the
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`PayPal and/or VenmoSystems, within the United States at PayPal and/or Venmolocations.
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`47.
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` PayPal’s acts of infringement have caused damage to Fintiv. Fintiv is entitled to
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`recover damages in an amountto be determinedat trial. Further, PayPal’s infringement of Fintiv’s
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`rights under the 845 Patent will continue to damage Fintiv’s business, causing irreparable harm for
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`whichthere is no adequate remedyat law, unless enjoined by the Court.
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`48.
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`PayPalis and has been awareof the ’845 Patentsince at least March 2016, well before
`
`this Complaint. Consequently, PayPal’s infringement of the *845 Patent is willful and deliberate,
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`entitling Fintiv to enhanced damages pursuant to 35 U.S.C. § 284.
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`COUNT II:
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`INDIRECT INFRINGEMENT OF THE ’845 PATENT
`
` Fintiv incorporates paragraphs 1 through 48 herein byreference.
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`As described above, PayPal is and has been aware of the ’845 Patent since at least
`
`49.
`
`50.
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`August 2016. And since that time, despite actual knowledge of the ’845 Patent, PayPal has been
`
`and continuesto indirectly infringe the ’845 Patent.
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`51.|PayPal has been indirectly infringing, and continuesto indirectly infringe, at least
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`claim 5 of the ’845 Patent through its partners’, merchants’, customers’, and end-users’ direct
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`infringementofat least claim 5 of the ’845 Patent, through at least the use of the Exemplary PayPal
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`Products without authorization of license from Fintiv.
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`52.
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`PayPal is contributing to the infringement by others and/or inducing infringement
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`by others by, among otherthings, providing instructionsto its partners, merchants, customers, and
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`end-users on how to download and use the PayPal application, including through its website
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`www.PayPal.com and through instructions on third-party application providers, in a manner that
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`infringes the Exemplary ’845 Patent Claims.
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`53.
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`PayPal has also contributed and/or induced, and continues to contribute and/or
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`induce the infringementof at least claim 5 of the ’845 Patent by contributing to and/or inducing
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`its partners, merchants, customers, and end-users to use its products, such as Exemplary PayPal
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`Products, in an infringing manneras described above, including encouraging and instructing its
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`partners, merchants, customers, and end-users through software and documentation provided by
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`PayPal.
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`54.
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`For example, PayPal’s website www.PayPal.com and its mobile application
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`specifically instruct users how to use the PayPal front and backend systems in a mannerthat
`
`infringes the patents. Moreover, third party application stores such as the Google Play store and
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`the Apple App store provides instructions and information for end-users. On information and
`
`belief, this information is supplied by PayPal. In addition, PayPal provides instructions onits the
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`PayPal mobile application that instructs users to interact with the PayPal front and backend
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`systems in a mannerthat infringes the Patents.
`
`55.
`
`PayPal has knownthat its infringing products, such as the Exemplary PayPal
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`Products, cannot be used without infringing the technology claimed in the ’845 Patent, as described
`
`in Exhibit B, and are notstaple articles of commerce suitable for substantial non-infringing uses.
`
`56.
`
` Fintiv has been damaged by PayPal’s infringement of the ’845 Patent and will
`
`continue to be damaged by such infringement. Fintiv is entitled to recover damages from PayPal
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`to compensate it for PayPal’s infringement, as alleged above, in an amount measured by noless
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`than a reasonable royalty under 35 U.S.C. § 284, as well as enhanced damages pursuant to 35
`
`U.S.C. § 284.
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`COUNT II: DIRECT INFRINGEMENT OF THE ’386 PATENT
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`57.
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`Fintiv incorporates paragraphs 1 through 56 herein by reference.
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`58.
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`PayPal, without authorization or license from Fintiv, has been andis presently directly
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`infringing,
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`literally or under the doctrine of equivalents, at least claim 1 of the °386 Patent
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`(“Exemplary ’386 Patent Claims”), as infringement is defined by 35 U.S.C. § 271(a), including
`
`through making, using (including for testing purposes), selling, offering for sale, and/or distributing
`
`infringing products. Exemplary infringing products include at least PayPal’s servers and Backend
`
`System that interacts with mobile devices (collectively, “Exemplary PayPal Products”).
`
`59.
`
`Exhibit D attached hereto includes charts comparing the Exemplary °386 Patent
`
`Claims to the Exemplary PayPal Products. As set forth in these charts, the Exemplary PayPal
`
`Products practice the technology claimed by the ’386 Patent. Accordingly, the Exemplary PayPal
`
`Products incorporated in these charts satisfy all elements of the Exemplary ’386 Patent Claims
`
`literally or by the doctrine of equivalents.
`
`60.
`
`On information and belief, Fintiv asserts that PayPal has directly infringed and
`
`continues to directly infringe the Asserted Claims through PayPal Mobile Payment systems and
`
`back end servers used with PayPal’s mobile applications and Business offerings.
`
`See e.g.
`
`https://www.paypal.com/us/business/accept-payments; https://venmo.com/business/start/,
`
`On
`
`information andbelief, Fintiv asserts that direct infringement is performed, for example, by PayPal
`
`through making, selling, offering to sell and/or use of the PayPal and/or Venmo Systems. On
`
`information and belief, Fintiv asserts that PayPal also makes and uses the system, for example,
`
`through testing the accused products, including with mobile devices that communicate with the
`
`PayPal and/or Venmo Systems, within the United States at PayPal and/or Venmolocations.
`
`61.
`
`PayPal’s acts of infringement have caused damage to Fintiv. Fintiv is entitled to
`
`recover damages in an amountto be determinedattrial. Further, PayPal’s infringement of Fintiv’s
`
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`rights under the ’386 Patent will continue to damage Fintiv’s business, causing irreparable harm for
`
`whichthere is no adequate remedyat law, unless enjoined by the Court.
`
`62.
`
`PayPal is and has been awareofthe ’386 Patent since at least August 2019, well before
`
`this Complaint. Consequently, PayPal’s infringement of the ’386 Patent is willful and deliberate,
`
`entitling Fintiv to enhanced damagespursuantto 35 U.S.C.§ 284.
`
`COUNT IV:
`
`INDIRECT INFRINGEMENT OF THE ’386 PATENT
`
` Fintiv incorporates paragraphs 1 through 62 herein by reference.
`
`As described above, PayPal is and has been awareof the ’386 Patent since at least
`
`63.
`
`64.
`
`August 2019. And since that time, despite actual knowledge of the ’386 Patent, has been and
`
`continuesto indirectly infringe the ’386 Patent.
`
`65.
`
`PayPal has been indirectly infringing, and continues to indirectly infringe, at least
`
`claim 1 of the ’386 Patent through its partners’, merchants’, customers’, and end-users’ direct
`
`infringementofat least claim 1 of the ’386 Patent, through at least the use of the Exemplary PayPal
`
`Products without authorization of license from Fintiv.
`
`66.
`
`PayPal is contributing to the infringement by others and/or inducing infringement
`
`by others by, amongotherthings, providing instructionsto its partners, merchants, customers, and
`
`end-users on how to download and use the PayPal application, including through its website
`
`www.PayPal.com and through instructions on third-party application providers, in a mannerthat
`
`infringes Exemplary ’386 Patent Claims.
`
`67.
`
`PayPal has also contributed and/or induced, and continues to contribute and/or
`
`induce the infringement ofat least claim 1 of the ’386 Patent by contributing to and/or inducing
`
`its partners, merchants, customers, and end-users to use its products, such as Exemplary PayPal
`
`Products, in an infringing manner as described above, including encouraging and instructing its
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`partners, merchants, customers, and end-users through software and documentation provided by
`
`PayPal.
`
`68.
`
`For example, PayPal’s website www.PayPal.com and its mobile application
`
`specifically instruct users how to use the PayPal front and backend systems in a mannerthat
`
`infringes the patents. Moreover, third party application stores such as the Google Play store and
`
`the Apple Appstore provides instructions and information for end-users. On information and
`
`belief, this information is supplied by PayPal. In addition, PayPal provides instructions onits the
`
`PayPal mobile application that instructs users to interact with the PayPal front and backend
`
`systemsin a mannerthat infringes the Patents. PayPal has known thatits infringing products, such
`
`as the Exemplary PayPal Products, cannot be used without infringing the technology claimed in
`
`the *386 Patent, as described in Exhibit D, and are notstaple articles of commerce suitable for
`
`substantial non-infringing uses.
`
`69.
`
`Fintiv has been damaged by PayPal’s infringement of the ’386 Patent and will
`
`continue to be damaged by such infringement. Fintiv is entitled to recover damages from PayPal
`
`to compensate it for PayPal’s infringement, as alleged above, in an amount measuredby noless
`
`than a reasonable royalty under 35 U.S.C. § 284, as well as enhanced damages pursuant to 35
`
`U.S.C. § 284.
`
`COUNT V: DIRECT INFRINGEMENTOF THE 7413 PATENT
`
`70.
`
` Fintiv incorporates paragraphs 1 through 69 herein by reference.
`
`71.|PayPal, without authorization or license from Fintiv, has been andis presently directly
`
`infringing,
`
`literally or under the doctrine of equivalents, at least claim 1 of the °413 Patent
`
`(“Exemplary °413 Patent Claims’), as infringement is defined by 35 U.S.C. § 271(a), including
`
`through making, using (including for testing purposes), selling, offering for sale, and/or distributing
`
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`infringing products. Exemplary infringing products include at least PayPal’s servers and Backend
`
`System that interacts with mobile devices (collectively, “Exemplary PayPal Products”).
`
`72.
`
`Exhibit F attached hereto includes charts comparing the Exemplary *413 Patent
`
`Claims to the Exemplary PayPal Products. As set forth in these charts, the Exemplary PayPal
`
`Products practice the technology claimed by the *413 Patent. Accordingly, the Exemplary PayPal
`
`Products incorporated in these charts satisfy all elements of the Exemplary ’413 Patent Claims
`
`literally or by the doctrine of equivalents.
`
`73.
`
`On information and belief, Fintiv asserts that PayPal has directly infringed and
`
`continues to directly infringe the Asserted Claims through PayPal Mobile Payment systems and
`
`back end servers used with PayPal’s mobile applications and Business offerings.
`
`See e.g.
`
`https://www.paypal.com/us/business/accept-payments; https://venmo.com/business/start/,
`
`On
`
`information andbelief, Fintiv asserts that direct infringementis performed, for example, by PayPal
`
`through making, selling, offering to sell and/or use of the PayPal and/or Venmo Systems. On
`
`information and belief, Fintiv asserts that PayPal also makes and uses the system, for example,
`
`through testing the accused products, including with mobile devices that communicate with the
`
`PayPal and/or Venmo Systems, within the United States at PayPal and/or Venmolocations.
`
`74.
`
`PayPal’s acts of infringement have caused damage to Fintiv.
`
`Fintiv is entitled to
`
`recover damages in an amount to be determinedat trial. Further, PayPal’s infringement of Fintiv’s
`
`rights under the °413 Patent will continue to damage Fintiv’s business, causing irreparable harm for
`
`which there is no adequate remedy at law, unless enjoined by the Court.
`
`75.
`
`PayPal is and has been aware of the non-provisional application that lead to the
`
`issuance of °413 Patent since at least August 2019, well before this Complaint. Consequently,
`
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`PayPal’s infringement of the °413 Patent is willful and deliberate, entitling Fintiv to enhanced
`
`damages pursuant to 35 U.S.C. § 284.
`
`COUNT VI:
`
`INDIRECT INFRINGEMENTOF THE °413 PATENT
`
` Fintiv incorporates paragraphs 1 through 75 herein by reference.
`
`As described above, PayPal
`
`is and has been aware of the non-provisional
`
`76.
`
`77.
`
`application that led to the issuance of the ’413 Patent since at least August 2019. And since that
`
`time, despite actual knowledge of the °413 Patent, has been and continuesto indirectly infringe
`
`the °413 Patent.
`
`78.
`
`PayPal has been indirectly infringing, and continuesto indirectly infringe, at least
`
`claim 1 of the °413 Patent through its partners’, merchants’, customers’, and end-users’ direct
`
`infringementofat least claim 1 of the ’413 Patent, through at least the use of the Exemplary PayPal
`
`Products without authorization of license from Fintiv.
`
`79.
`
`PayPal is contributing to the infringement by others and/or inducing infringement
`
`by others by, amongotherthin