`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`
`VARTA MICROBATTERY GMBH,
`
`Plaintiff,
`
`Civil Action No. ___________
`
`v.
`
`JURY TRIAL DEMANDED
`
`AUDIO PARTNERSHIP LLC and AUDIO
`PARTNERSHIP PLC d/b/a CAMBRIDGE
`AUDIO,
`
`Defendants.
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`Plaintiff VARTA Microbattery GmbH (“VARTA”) files this Complaint for Patent
`
`Infringement of United States Patent Nos. 9,153,835; 9,496,581; 9,799,913; 11,024,869;
`
`11,024,904; and 11,024,905 (collectively “the Patents-in-Suit”) against Defendants Audio
`
`Partnership LLC and Audio Partnership PLC d/b/a “Cambridge Audio” (collectively “Audio
`
`Partnership” or “Defendants”) and alleges as follows:
`
`PARTIES
`
`1.
`
`VARTA is a German limited liability company headquartered at VARTA-Platz 1,
`
`73479 Ellwangen, Baden-Württemberg, Germany.
`
`2.
`
`Audio Partnership LLC is a corporation organized under the laws of the State of
`
`Florida with a place of business at 4600 140th Avenue N. Suite 180, Clearwater, Florida.
`
`3.
`
`Audio Partnership PLC is a corporation organized under the laws of the United
`
`Kingdom with a place of business at Gallery Court, Hankey Place, London SE1 4BB, United
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`1
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`VARTA Ex. 2038 Page 1 of 23
`EVE Energy v. VARTA
`IPR2022-01484
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`Kingdom. On information and belief, Audio Partnership PLC owns 100% of the equity in Audio
`
`Partnership LLC.
`
`4.
`
`On information and belief, Audio Partnership LLC and Audio Partnership PLC
`
`(collectively “Audio Partnership”) conduct business in the United States including in this
`
`jurisdiction under the name Cambridge Audio.
`
`JURISDICTION AND VENUE
`
`5.
`
`This is an action for patent infringement arising under the patent laws of the
`
`United States, 35 U.S.C. et seq. This Court has subject matter jurisdiction over this action
`
`pursuant to 28 U.S.C. §§ 1331 and 1338(a).
`
`6.
`
`This Court has personal jurisdiction over Audio Partnership in this action because
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`Audio Partnership has and continues to commit infringing acts within the Eastern District of
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`Texas and has established minimum contacts with this District such that exercise of jurisdiction
`
`would not offend traditional notions of fair play and substantial justice.
`
`7.
`
`Audio Partnership by and through established distribution channels including
`
`authorized retailers and including internet sites such as www.cambridgeaudio.com sells and
`
`offers for sale in the State of Texas and/or imports into the State of Texas the infringing products
`
`with the knowledge and understanding that such products will be sold throughout the State of
`
`Texas including in this District. Audio Partnership has purposefully availed itself of the
`
`privileges of conducting business in the State of Texas, including by deriving substantial
`
`revenues by making the infringing products available for sale here through its network of
`
`authorized retailers including Direct Audio, who maintains a physical presence in this district at
`
`its retail facility located at 12095 Spur 364, Tyler, Texas.
`
`8.
`
`Audio Partnership has consented to this District’s jurisdiction in previous actions
`
`titled VARTA Microbattery GmbH v. Costco Wholesale Corporation et al., 2:20-cv-00051 and
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`2
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`VARTA Microbattery GmbH v. Audio Partnership LLC et al., 2:21-cv-00037. In those actions,
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`VARTA has asserted infringement of certain of the Patents-in-Suit by virtue of Defendants’
`
`incorporation into certain of their products button cell batteries made by a different
`
`manufacturer, Guangdong Mic-Power New Energy Co., Ltd. (“Mic-Power”).
`
`9.
`
`Venue is proper in the Eastern District of Texas over Audio Partnership PLC
`
`pursuant to 28 U.S.C. § 1391(c)(3) because Audio Partnership PLC is a foreign alien that may be
`
`sued in any judicial district.
`
`10.
`
`Venue is proper in the Eastern District of Texas over Audio Partnership LLC
`
`pursuant to 28 U.S.C. § 1400(b) because Audio Partnership LLC has committed and continues to
`
`commit acts of infringement by selling and offering to sell in and/or importing into this District
`
`the infringing products.
`
`11.
`
`Audio Partnership has consented to venue in this District in previous actions titled
`
`VARTA Microbattery GmbH v. Costco Wholesale Corporation et al., 2:20-cv-00051 and VARTA
`
`Microbattery GmbH v. Audio Partnership LLC et al., 2:21-cv-00037.
`
`BACKGROUND
`
`12.
`
`VARTA is a leading manufacturer of microbatteries, which include those referred
`
`to as “button” cells and “coin” cells due to their small form factor and low height. Applications
`
`for VARTA microbatteries include, for example, watches, hearing aids, and wearable cordless
`
`devices such as wireless earphones.
`
`13.
`
`In the mid-to-late 2000’s, VARTA undertook efforts to design and develop a
`
`novel and proprietary microbattery technology with excellent mechanical strength
`
`characteristics, increased power density, and better space utilization.
`
`14.
`
`VARTA’s novel and proprietary design includes an electrode-separator assembly
`
`located between a housing cup and a housing top that includes at least one positive electrode and
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`3
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`at least one negative electrode separated by a separator. The electrodes and the separator may be
`
`formed from flat layers and form the electrode-separator assembly. The assembly is wound into
`
`a spiral winding and located in the housing so that the electrodes are disposed at essentially right
`
`angles to the flat bottom and top areas of the housing.
`
`15.
`
`Figures 3b and 4 of United States Patent No. 9,153,835 illustrate an example of an
`
`embodiment of the invention of the Patents-in-Suit. The electrodes 407 of one polarity
`
`(highlighted in green) and the electrodes 408 of the other polarity (highlighted in red) are wound
`
`in a spiral configuration (shown generally in FIG. 3b). The electrodes 407, 408 may be
`
`separated from each other by separator layers 405, 406 of non-electrically conductive material.
`
`
`
`
`
`16.
`
`The lower housing cup 401 and the upper housing top 402 are fitted together to
`
`
`
`form a housing about the electrode-separator assembly arranged in a spiral winding 404.
`
`17.
`
`Electrical contact between the electrode-separator assembly and the flat top and/or
`
`bottom areas of the housing may occur through output conductors 410, 409 comprising a piece of
`
`foil resting between the spiral winding and the respective portion of the housing.
`
`18.
`
`VARTA sells and offers for sale its patented microbatteries in the United States
`
`and worldwide inter alia under the trademark CoinPower®.
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`4
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`THE PATENTS IN SUIT
`
`19.
`
`VARTA spent a great deal of time, effort, and expense in the research and
`
`development that lead to the CoinPower microbatteries. Because of their outstanding
`
`performance, the CoinPower microbatteries have been highly successful and well accepted by
`
`the market across the world. In recognition of the break-through nature of its invention, VARTA
`
`was granted an international patent portfolio covering various aspects of the CoinPower
`
`microbatteries, including a number of patents in the United States, with additional patent
`
`applications still pending in the United States Patent and Trademark Office.
`
`20.
`
`On October 6, 2015, the United States Patent and Trademark Office duly and
`
`legally issued United States Patent No. 9,153,835 (“the ’835 Patent”), entitled “Button Cells and
`
`Method for Producing Same” to the listed inventors Eduard Pytlik, Jürgen Lindner, Ulrich
`
`Barenthin, and Winfried Gaugler, all of Ellwangen, Germany. VARTA is the assignee and
`
`owner of all right, title, and interest in the ’835 Patent, including the right to sue for and recover
`
`all past, present, and future damages and to seek injunctive relief for infringement of the ’835
`
`Patent. A true and correct copy of the ’835 Patent is attached hereto as Exhibit A.
`
`21.
`
`On November 15, 2016, the United States Patent and Trademark Office duly and
`
`legally issued United States Patent No. 9,496,581 (“the ’581 Patent”), entitled “Button Cells and
`
`Method of Producing Same” to the listed inventors Eduard Pytlik, Jürgen Lindner, Ulrich
`
`Barenthin, and Winfried Gaugler, all of Ellwangen, Germany. VARTA is the assignee and
`
`owner of all right, title, and interest in the ’581 Patent, including the right to sue for and recover
`
`all past, present, and future damages and to seek injunctive relief for infringement of the ’581
`
`Patent. A true and correct copy of the ’581 Patent is attached hereto as Exhibit B.
`
`22.
`
`On October 24, 2017, the United States Patent and Trademark Office duly and
`
`legally issued United States Patent No. 9,799,913 (“the ’913 Patent”), entitled “Button Cells and
`
`5
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`
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`Method of Producing Same” to the listed inventors Eduard Pytlik, Jürgen Lindner, Ulrich
`
`Barenthin, and Winfried Gaugler, all of Ellwangen, Germany. VARTA is the assignee and
`
`owner of all right, title, and interest in the ’913 Patent, including the right to sue for and recover
`
`all past, present, and future damages and to seek injunctive relief for infringement of the ’913
`
`Patent. A true and correct copy of the ’913 Patent is attached hereto as Exhibit C.
`
`23.
`
`On June 1, 2021, the United States Patent and Trademark Office duly and legally
`
`issued United States Patent No. 11,024,869 (“the ’869 Patent”), entitled “Button Cells and
`
`Methods of Producing the Same” to the listed inventors Eduard Pytlik, Jürgen Lindner, Ulrich
`
`Barenthin, and Winfried Gaugler, all of Ellwangen, Germany. VARTA is the assignee and
`
`owner of all right, title, and interest in the ’869 Patent, including the right to sue for and recover
`
`all past, present, and future damages and to seek injunctive relief for infringement of the ’869
`
`Patent. A true and correct copy of the ’869 Patent is attached hereto as Exhibit D.
`
`24.
`
`On June 1, 2021, the United States Patent and Trademark Office duly and legally
`
`issued United States Patent No. 11,024,904 (“the ’904 Patent”), entitled “Button Cell Having
`
`Winding Electrode and Method For the Production Thereof” to the listed inventor Winfried
`
`Gaugler of Ellwangen, Germany. VARTA is the assignee and owner of all right, title, and
`
`interest in the ’904 Patent, including the right to sue for and recover all past, present, and future
`
`damages and to seek injunctive relief for infringement of the ’904 Patent. A true and correct
`
`copy of the ’904 Patent is attached hereto as Exhibit E.
`
`25.
`
`On June 1, 2021, the United States Patent and Trademark Office duly and legally
`
`issued United States Patent No. 11,024,905 (“the ’905 Patent”), entitled “Button Cell Having
`
`Winding Electrode and Method For the Production Thereof” to the listed inventor Winfried
`
`Gaugler of Ellwangen, Germany. VARTA is the assignee and owner of all right, title, and
`
`6
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`VARTA Ex. 2038 Page 6 of 23
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`interest in the ’905 Patent, including the right to sue for and recover all past, present, and future
`
`damages and to seek injunctive relief for infringement of the ’905 Patent. A true and correct
`
`copy of the ’905 Patent is attached hereto as Exhibit F.
`
`THE INFRINGING PRODUCTS
`
`26.
`
`On information and belief, Audio Partnership sells and offers for sale in the
`
`United States and/or imports into the United States products with infringing microbatteries
`
`including microbatteries from EVE Energy of China bearing at least the partner number ICR
`
`1254 found in products such as, for example, wireless earphones by Audio Partnership under the
`
`name Melomania Touch (“the Audio Partnership earphones”).
`
`
`(source https://www.cambridgeaudio.com/usa/en/products/headphones/melomania-touch)
`
`27.
`
`The EVE batteries provide a source of rechargeable power for the Audio
`
`
`
`Partnership earphones in which they are included.
`
`28.
`
`The EVE batteries include a housing cup with a flat bottom area and a housing
`
`top with a flat top area as shown below.
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`7
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`
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`29.
`
`The EVE batteries include an electrode-separator assembly within the housing
`
`
`
`having a positive electrode and a negative electrode in the form of flat layers connected to and
`
`separated by a flat separator.
`
`30.
`
`The electrode-separator assembly of the EVE battery is in the form of a spiral
`
`winding with end faces facing in the axial direction relative to the flat bottom area and the flat
`
`top area so that the electrodes are aligned essentially at right angles to the flat bottom area and
`
`the flat top area when the housing cup and housing top are closed.
`
`31.
`
`On information and belief, Audio Partnership had pre-suit knowledge of the
`
`Patents-in-Suit and that the EVE batteries infringe one or more claims of each of the Patents-in-
`
`Suit, but continued its infringing activities.
`
`32.
`
`On March 3, 2020, prior to the filing of this Complaint, VARTA filed a lawsuit
`
`asserting infringement of the ’835 Patent, the ’581 Patent, and the ’913 Patent against Audio
`
`Partnership for including infringing microbatteries from another source in its wireless earphones.
`
`In that lawsuit, Audio Partnership denied that it infringed the asserted patents and further
`
`asserted as an affirmative defense that the patents were invalid. The ’835 Patent, the ’581 Patent,
`
`and the ’913 Patent are parent patents to the ’869 Patent.
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`8
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`33.
`
`On February 2, 2021, VARTA filed a lawsuit asserting infringement of U.S.
`
`Patent No. 10,804,506 (“the ’506 Patent”) and U.S. Patent No. 10,971,776 (“the ’776 Patent”)
`
`against Audio Partnership for including infringing microbatteries from another source in its
`
`wireless earphones. In that lawsuit, Audio Partnership also denied that it infringed the ’506
`
`Patent and ’776 Patent and asserted as an affirmative defense that the patents were invalid. The
`
`’506 Patent and the ’776 Patent are parent patents to the ’904 Patent, and the ’905 Patent.
`
`34.
`
`On July 7, 2020, Audio Partnership filed petitions for inter partes review of the
`
`’835 Patent, the ’581 Patent, and the ’913 Patent in the United States Patent and Trademark
`
`Office alleging that those patents are invalid in view of the prior art. The Patent Office has
`
`designated those proceedings as IPR Nos. 2020-01212, 2020-01211, and 2020-01214
`
`respectively.
`
`35.
`
`On July 7, 2020, Audio Partnership filed a petition for inter partes of U.S. Patent
`
`No. 9,799,858 (“the ’858 Patent”) in the United States Patent and Trademark Office alleging that
`
`the ’858 Patent is invalid in view of the prior art. The Patent Office has designated that
`
`proceeding as IPR No. 2020-01213. The ’858 Patent is a parent patent to the ’904 Patent and the
`
`’905 Patent.
`
`36.
`
`On June 30, 2021, Audio Partnership filed petitions for inter partes review of the
`
`’506 Patent and the ’776 Patent with the Patent Office alleging that those patents are invalid in
`
`view of the prior art. The Patent Office designated those proceedings as IPR Nos. 2021-01207
`
`and 2021-01206 respectively.
`
`37.
`
`On information and belief, and based on Audio Partnership’s activities with
`
`respect to the parent patents described above, Audio Partnership knew of the pending
`
`applications for the ’869 Patent, the ’904 Patent, and the ’905 Patent, or was at least willfully
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`blind as to the existence of those applications and/or patents since at least June 1, 2021 when
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`the’869 Patent, the ’904 Patent, and the ’905 Patent issued.
`
`38.
`
`Audio Partnership, without license or authorization, has sold and offered to sell
`
`and continues to sell and offers to sell in the United States and/or imports into the United States
`
`infringing products having at least the infringing microbatteries.
`
`39.
`
`Audio Partnership has infringed and continues to infringe by selling and offering
`
`to sell in the United States and/or importing into the United States infringing products having at
`
`least the infringing microbatteries.
`
`COUNT I: INFRINGEMENT OF THE ’835 PATENT
`
`
`
`40.
`
`VARTA incorporates and re-alleges the allegations in the preceding paragraphs of its
`
`Complaint as if fully set forth herein.
`
`41.
`
`On information and belief, Audio Partnership has infringed and continues to infringe
`
`at least claim 1 of the ’835 Patent under 35 U.S.C. § 271(a) by selling in, offering to sell in, and/or
`
`importing into the United States products that include at least the infringing EVE batteries.
`
`42. More particularly, the EVE batteries have a housing cup and a housing top separated
`
`from one another by an electrically insulating seal to form a housing with a flat bottom area and a
`
`flat top area.
`
`43.
`
`The EVE batteries have an electrode-separator assembly within the housing with a
`
`positive and a negative electrode in the form of flat layers and that are connected to one another by a
`
`flat separator.
`
`44.
`
`The EVE batteries have an electrode-separator assembly where the electrode layers
`
`are aligned essentially at right angles to the flat bottom area and the flat top area and the housing
`
`cup and the housing top are closed without being beaded over.
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`10
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`45.
`
`The EVE batteries have an electrode-separator assembly in the form of a spiral
`
`winding with end faces facing in the axial direction relative to the flat bottom area and the flat top
`
`area.
`
`46.
`
`The EVE batteries have an insulator arranged between the end faces of the spiral
`
`winding and the housing cup and the housing top.
`
`47.
`
`On information and belief, Audio Partnership has infringed and continues to infringe
`
`at least claim 10 of the ’835 Patent under 35 U.S.C. § 271(g) by importing into the United States
`
`and/or offering to sell, selling, and/or using within the United States products that include the
`
`infringing EVE batteries which are made by a process that includes each and every step set forth in
`
`at least claim 10.
`
`48.
`
`On information and belief, the EVE batteries are produced by inserting an electrode-
`
`separator assembly with electrodes in the form of a flat layer into the housing such that the
`
`electrodes are aligned at essentially right angles to the flat bottom and top areas.
`
`49.
`
`Audio Partnership is not and has never been licensed or authorized to commit the
`
`acts described above with respect to any claim of the ’835 Patent.
`
`50.
`
`As a result of Audio Partnership’s infringement of the ’835 Patent, VARTA has
`
`suffered and continues to suffer damages, in an amount to be determined, of at least a reasonable
`
`royalty and/or lost profits due to lost sales, profits, and potential sales that VARTA would have
`
`made but for Audio Partnership’s infringing acts.
`
`51.
`
`VARTA has been, and will continue to be, damaged by Audio Partnership’s
`
`infringement of the ’835 Patent and will suffer irreparable injury unless the infringement is enjoined
`
`by this Court pursuant to 35 U.S.C. § 283 and/or the equitable powers of this Court.
`
`11
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`52.
`
`Upon information and belief, Audio Partnership has known of the ’835 Patent and its
`
`infringement of the ’835 Patent, since, at least, March 3, 2020. Despite such knowledge, Audio
`
`Partnership has continued its infringing activities. Upon information and belief, Audio
`
`Partnership’s infringement of the ’835 Patent is willful entitling VARTA to enhanced damages
`
`pursuant to 35 U.S.C. § 284. This action, therefore, is “exceptional” within the meaning of 35
`
`U.S.C. § 285 entitling VARTA to its attorneys’ fees and expenses.
`
`COUNT II: INFRINGEMENT OF THE ’581 PATENT
`
`53.
`
`VARTA incorporates and re-alleges the allegations in the preceding paragraphs of its
`
`Complaint as if fully set forth herein.
`
`54.
`
`On information and belief, Audio Partnership has infringed and continues to infringe
`
`at least claim 1 of the ’581 Patent under 35 U.S.C. § 271(a) by selling in, offering to sell in, and/or
`
`importing into the United States products that include at least the infringing EVE batteries.
`
`55. More particularly, the EVE batteries have a housing cup and a housing top separated
`
`from one another by an electrically insulating seal to form a housing with a flat bottom area and a
`
`flat top area.
`
`56.
`
`The EVE batteries have an electrode-separator assembly within the housing with a
`
`positive and a negative electrode in the form of flat layers and that are connected to one another by a
`
`flat separator.
`
`57.
`
`The EVE batteries have an electrode-separator assembly where the electrode layers
`
`are aligned essentially at right angles to the flat bottom area and the flat top area.
`
`58.
`
`The EVE batteries have an electrode-separator assembly in the form of a spiral
`
`winding with end faces facing in the axial direction relative to the flat bottom area and the flat top
`
`area.
`
`12
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`59.
`
`The EVE batteries have one of the electrodes that connects to the flat bottom area or
`
`the flat top area via an output conductor comprising a foil resting flat between an end face of the
`
`spiral winding and the flat top or the flat bottom area to which it is connected.
`
`60.
`
`On information and belief, Audio Partnership has infringed and continues to infringe
`
`at least claim 10 of the ’581 Patent under 35 U.S.C. § 271(g) by importing into the United States
`
`and/or offering to sell, selling, and/or using within the United States products that include the
`
`infringing EVE batteries which are made by a process that includes each and every step set forth in
`
`at least claim 10.
`
`61.
`
`On information and belief, the EVE batteries are produced with the electrode-
`
`separator assembly inserted into the housing such that the electrodes are aligned at essentially right
`
`angles to the flat bottom area and the flat top area.
`
`62.
`
`Audio Partnership is not and has never been licensed or authorized to commit the
`
`acts described above with respect to any claim of the ’581 Patent.
`
`63.
`
`As a result of Audio Partnership’s infringement of the ’581 Patent, VARTA has
`
`suffered and continues to suffer damages, in an amount to be determined, of at least a reasonable
`
`royalty and/or lost profits due to lost sales, profits, and potential sales that VARTA would have
`
`made but for Audio Partnership’s infringing acts.
`
`64.
`
`VARTA has been, and will continue to be, damaged by Audio Partnership’s
`
`infringement of the ’581 Patent and will suffer irreparable injury unless the infringement is enjoined
`
`by this Court pursuant to 35 U.S.C. § 283 and/or the equitable powers of this Court.
`
`65.
`
`Upon information and belief, Audio Partnership has known of the ’581 Patent and its
`
`infringement of the ’581 Patent, since, at least, March 3, 2020. Despite such knowledge, Audio
`
`Partnership has continued its infringing activities. Upon information and belief, Audio
`
`13
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`Partnership’s infringement of the ’581 Patent is willful entitling VARTA to enhanced damages
`
`pursuant to 35 U.S.C. § 284. This action, therefore, is “exceptional” within the meaning of 35
`
`U.S.C. § 285 entitling VARTA to its attorneys’ fees and expenses.
`
`COUNT III: INFRINGEMENT OF THE ’913 PATENT
`
`66.
`
`VARTA incorporates and re-alleges the allegations in the preceding paragraphs of its
`
`Complaint as if fully set forth herein.
`
`67.
`
`On information and belief, Audio Partnership has infringed and continues to infringe
`
`at least claims 1, 4, and 6 of the ’913 Patent under 35 U.S.C. § 271(a) by selling in, offering to sell
`
`in, and/or importing into the United States products that include at least the infringing EVE
`
`batteries.
`
`68. More particularly, the EVE batteries have a housing cup and a housing top separated
`
`from one another by an electrically insulating seal to form a housing with a flat bottom area and a
`
`flat top area.
`
`69.
`
`The EVE batteries have an electrode-separator assembly within the housing with a
`
`positive and a negative electrode in the form of flat layers and that are connected to one another by a
`
`flat separator.
`
`70.
`
`The EVE batteries have an electrode-separator assembly where the electrode layers
`
`are aligned essentially at right angles to the flat bottom area and the flat top area.
`
`71.
`
`The EVE batteries have an electrode-separator assembly in the form of a spiral
`
`winding with end faces facing in the axial direction relative to the flat bottom area and the flat top
`
`area.
`
`14
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`
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`Case 2:21-cv-00400 Document 1 Filed 10/25/21 Page 15 of 23 PageID #: 15
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`72.
`
`The EVE batteries have an electrode-separator assembly where at least one of the
`
`electrodes connects to the flat bottom area or flat top area by an output connector comprising a foil
`
`resting between the end faces of the spiral winding and the flat top or bottom areas.
`
`73.
`
`The EVE batteries have an insulator arranged between the end faces of the spiral
`
`winding and the housing cup and the housing top preventing direct mechanical and electrical
`
`contact.
`
`74.
`
`Audio Partnership is not and has never been licensed or authorized to commit the
`
`acts described above with respect to any claim of the ’913 Patent.
`
`75.
`
`As a result of Audio Partnership’s infringement of the ’913 Patent, VARTA has
`
`suffered and continues to suffer damages, in an amount to be determined, of at least a reasonable
`
`royalty and/or lost profits due to lost sales, profits, and potential sales that VARTA would have
`
`made but for Audio Partnership’s infringing acts.
`
`76.
`
`VARTA has been, and will continue to be, damaged by Audio Partnership’s
`
`infringement of the ’913 Patent and will suffer irreparable injury unless the infringement is enjoined
`
`by this Court pursuant to 35 U.S.C. § 283 and/or the equitable powers of this Court.
`
`77.
`
`Upon information and belief, Audio Partnership has known of the ’913 Patent and its
`
`infringement of the ’913 Patent, since, at least, March 3, 2020. Despite such knowledge, Audio
`
`Partnership has continued its infringing activities. Upon information and belief, Audio
`
`Partnership’s infringement of the ’913 Patent is willful entitling VARTA to enhanced damages
`
`pursuant to 35 U.S.C. § 284. This action, therefore, is “exceptional” within the meaning of 35
`
`U.S.C. § 285 entitling VARTA to its attorneys’ fees and expenses.
`
`15
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`VARTA Ex. 2038 Page 15 of 23
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`COUNT IV: INFRINGEMENT OF THE ’869 PATENT
`
`78.
`
`VARTA incorporates and re-alleges the allegations in the preceding paragraphs of its
`
`complaint as if fully set forth herein.
`
`79.
`
`On information and belief, Audio Partnership has infringed and continues to infringe
`
`at least claim 1 of the ’869 Patent under 35 U.S.C. § 271(a) by selling in, offering to sell in, and/or
`
`importing into the United States products that include at least the infringing EVE batteries.
`
`80. More particularly, the EVE batteries include a housing having a cell cup and a cell
`
`top where the cell cup includes a flat bottom area, a cell cup casing, and a bottom edge forming a
`
`transition between the flat bottom area and the cell cup casing, and the cell top includes a flat top
`
`area, a cell top casing, and a top edge forming a transition between the flat top area and the cell top
`
`casing.
`
`81.
`
`The EVE Batteries include an electrode-separator assembly winding disposed within
`
`the housing, the electrode-separator assembly winding including a multi-layer assembly wound in a
`
`spiral shape about an axis. The electrode-separator assembly winding includes a positive electrode
`
`formed from a first portion of a first metallic film or mesh coated with a first electrode material, a
`
`negative electrode formed from a first portion of a second metallic film or mesh coated with a
`
`second electrode material, and a separator disposed between the positive electrode and the negative
`
`electrode.
`
`82.
`
`In the EVE batteries, the first metallic film or mesh is bent such that a second portion
`
`of the first metallic film or mesh extends out of the electrode-separator assembly winding and
`
`partially lies flat between an end face of the electrode-separator assembly winding and the flat
`
`bottom area or the flat top area.
`
`16
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`VARTA Ex. 2038 Page 16 of 23
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`
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`Case 2:21-cv-00400 Document 1 Filed 10/25/21 Page 17 of 23 PageID #: 17
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`83.
`
`The EVE batteries include a first insulator disposed between the first end face of the
`
`electrode-separator assembly winding and the second portion of the first metallic film or mesh.
`
`84.
`
`At least part of the second portion of the first metallic film or mesh is not coated with
`
`the first electrode material and serves as an output conductor that is welded to the flat bottom area or
`
`flat top area.
`
`85.
`
`Audio Partnership is not and has never been licensed or authorized to commit the
`
`acts described above with respect to any claim of the ’869 Patent.
`
`86.
`
`As a result of Audio Partnership’s infringement of the ’869 Patent, VARTA has
`
`suffered and continues to suffer damages, in an amount to be determined, of at least a reasonable
`
`royalty and/or lost profits due to lost sales, profits, and potential sales that VARTA would have
`
`made but for Audio Partnership’s infringing acts.
`
`87.
`
`VARTA has been, and will continue to be, damaged by Audio Partnership’s
`
`infringement of the ’869 Patent and will suffer irreparable injury unless the infringement is enjoined
`
`by this Court pursuant to 35 U.S.C. § 283 and/or the equitable powers of this Court.
`
`88.
`
`Upon information and belief, Audio Partnership has known of the ’869 Patent and its
`
`infringement of the ’869 Patent since at least June 1, 2021, when the ’869 Patent issued. Despite
`
`such knowledge, Audio Partnership has continued its infringing activities. Upon information and
`
`belief, Audio Partnership’s infringement of the ’869 Patent is willful entitling VARTA to enhanced
`
`damages pursuant to 35 U.S.C. § 284. This action, therefore, is “exceptional” within the meaning of
`
`35 U.S.C. § 285 entitling VARTA to its attorneys’ fees and expenses.
`
`COUNT V: INFRINGEMENT OF THE ’904 PATENT
`
`89.
`
`VARTA incorporates and re-alleges the allegations in the preceding paragraphs of
`
`the complaint as if fully set forth herein.
`
`17
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`VARTA Ex. 2038 Page 17 of 23
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`
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`Case 2:21-cv-00400 Document 1 Filed 10/25/21 Page 18 of 23 PageID #: 18
`
`90.
`
`On information and belief, Audio Partnership has infringed and continues to infringe
`
`at least claims 1, 11, and 17 of the ’904 Patent under 35 U.S.C. § 271(a) by selling in, offering to
`
`sell in, and/or importing into the United States products that include at least the infringing EVE
`
`batteries.
`
`91. More particularly, the EVE batteries have a height-to-diameter ratio of less than one
`
`and are assembled from two metal housing components separated from one another by an
`
`electrically insulating injection molded seal or film seal to form a housing having a plane bottom
`
`region and a plane top region that is parallel to the plane bottom region.
`
`92.
`
`The EVE batteries include an electrode separator assembly comprising a positive
`
`electrode and a negative electrode inside the housing. The electrode separator assembly is in the
`
`form of a winding, the end sides of which face in the direction of the plane bottom region and the
`
`plane top reg