Case 2:22-cv-00422 Document 1 Filed 10/26/22 Page 1 of 23 PageID #: 1
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`UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
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`Headwater Research LLC,
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`Case No. 2:22-cv-00422
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`Plaintiff,
`
`vs.
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`Complaint for Patent Infringement
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`Samsung Electronics Co., Ltd., Samsung
`Electronics America, Inc.,
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`JURY DEMANDED
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`Defendants.
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`COMPLAINT FOR PATENT INFRINGEMENT
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`Plaintiff Headwater Research LLC (“Headwater”) files this complaint against Defendants
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`Samsung Electronics Co., Ltd., and Samsung Electronics America, Inc. (collectively,
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`“Defendants” or “Samsung”), alleging infringement of U.S. Patent Nos. 9,137,701, 9,271,184,
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`and 9,521,578. The Accused Instrumentalities are mobile electronic devices, including mobile
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`phones and tablets used, made, offered for sale, sold, and/or imported by Defendants in the United
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`States and supplied by Defendants to customers in the United States.
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`BACKGROUND
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`1.
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`This complaint arises from Defendants’ infringement of the following United States
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`patents owned by Headwater, each of which relate to wireless communications technology: United
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`States Patent Nos. 9,137,701 (“the ’701 patent”), 9,271,184 (“the ’184 patent”), and 9,521,578
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`(“the ’578 patent”) (collectively, the “Asserted Patents”).
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`2.
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`Dr. Gregory Raleigh—the primary inventor of the Asserted Patents—is a world-
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`renowned scientist, inventor, and entrepreneur, with over 25 years of executive experience in several
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`SAMSUNG 1004
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`technology sectors including networking, cloud software, consumer services, wireless and military
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`systems. Dr. Raleigh holds Ph.D. and Masters degrees in Electrical Engineering from Stanford
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`University, and a BS in Electrical Engineering from Cal Poly San Luis Obispo. He is the inventor of
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`over 350 issued U.S. and international patents in several fields including radio systems and
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`components, radar, mobile operating systems, cloud services, IoT, networking, consumer
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`electronics, radiation beam cancer therapy and medical imaging.
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`3.
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`Dr. Raleigh has a long and distinguished record of significant contributions and
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`advancements in wireless communications technology. His inventions, companies, and products
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`have profoundly and positively impacted virtually every aspect of the mobile device and
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`communications market. In 2005, Dr. Raleigh was named one of the “50 most powerful people in
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`networking” because of his discoveries in wireless communications technology, and his work in
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`multiplying the capacity of a radio link using multiple transmission and receiving antennas to exploit
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`multipath propagation was described as the “most important wireless technology in the works.” See
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`https://www.networkworld.com/article/2316916/the-50-most-powerful-people-in-
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`networking.html?page=2.
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`4.
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`In 1996, while at Stanford University, Dr. Raleigh presented the first mathematical
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`proof demonstrating that multiple antennas may be used with special signal processing techniques
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`to transmit multiple data streams at the same time and on the same frequency while in the presence
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`of naturally occurring multipath propagation. Dr. Raleigh’s work at Stanford has been widely
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`adopted in modern multiple-input and multiple-output (“MIMO”) radio communication and
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`implemented in major wireless communication standards including 4G and 5G. See, e.g.,
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`https://en.wikipedia.org/wiki/Gregory_Raleigh.
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`5.
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`Dr. Raleigh’s groundbreaking work solved problems that had existed in wireless
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`communication since the late 1800s and overturned a century of research and practice in the fields
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`of radio science and wireless communication theory. His work revealed that a new class of MIMO
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`signal processing architectures would allow wireless devices to transmit multiple data streams at the
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`same time on the same frequency thereby multiplying the information-carrying capacity of wireless
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`networks.
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`6.
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`Based on his discoveries, Dr. Raleigh co-founded Clarity Wireless to develop smart
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`antenna products incorporating the advances of his MIMO signal processing architecture, and
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`obtained patents now used in 4G and 5G cellular and Wi-Fi standards. Field trials of the smart
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`antennas developed by Clarity Wireless demonstrated performance signifcantly above anything else
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`contemplated at the time and continue to set standards for multipath broadband wireless access links.
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`Shortly after those field trials, Cisco acquired Clarity in 1998 and hired Dr. Raleigh to continue to
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`commercialize these technologies.
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`7.
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`After leaving Cisco, Dr. Raleigh founded Airgo Networks to develop the world’s first
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`MIMO wireless chipsets, networking software, reference design systems and commercial OEM
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`products. Airgo Networks’s chipset products significantly improved the speed and reliability of Wi-
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`Fi, leading to the adoption of its technology as the core of Wi-Fi radio standards since 2006, and
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`adoption of the chipsets into products sold across the globe. In 2006, Qualcomm acquired Airgo
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`Networks and hired Dr. Raleigh to continue to commercialize these technologies. The Airgo team at
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`Qualcomm spearheaded the creation of Wi-Fi standards and developed the first Qualcomm Wi-Fi
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`chips for cell phones.
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`8.
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`Dr. Raleigh’s innovations at Clarity Wireless, Cisco, Airgo Networks, and
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`Qualcomm, resulted in the widespread adoption of his technologies in a multitude of cellular and
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`Wi-Fi standards, such as LTE, WiMAX, 802.11n, 802.11ac (Wi-Fi 5), as well as 802.11ax (Wi-Fi
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`6).
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`9.
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`After successfully founding and selling Clarity Wireless and Airgo Networks to
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`Cisco and Qualcomm, respectively, Dr. Raleigh shifted his focus from solving radio-centric
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`problems to solving problems in how wireless services are provided to consumers. Dr. Raleigh
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`foresaw significant data demand problems presented by the advent and adoption of smartphones. He
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`sought to solve these data demand problems by improving end-user wireless devices and the services
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`that support them.
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`10.
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`In 2008, Dr. Raleigh formed Headwater to develop mobile operating systems and
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`cloud technology, which today, underpin the mobile phone and app industries. The patents in this
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`action describe and claim some of the extraordinary inventions developed by Dr. Raleigh and the
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`Headwater team.
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`11.
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`Smartphones and other mobile devices have become ubiquitous and inseparable
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`components of our daily lives, allowing us to make and receive phone calls, get notifications,
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`download music, upload photos, stream entertainment, transact business, exchange ideas, and keep
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`us connected to our family and friends whether they are down the hall or around the globe. Users
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`can get email, install apps, and browse the internet from these tiny devices by making use of data
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`connectivity services. These devices accomplish these amazing feats by exchanging staggering
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`amounts of data over the internet using wireless and cellular networks, relying on ubiquitous data
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`connectivity to keep users up-to-date and connected.
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`12.
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`Since 2011, mobile device data demand has exploded—increasing by almost
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`400%—with each user consuming approximately 11.5 gigabytes of data per month. In the aggregate,
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`this equates to approximately 90 exabytes of data consumption per month. See, e.g.,
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`https://www.ericsson.com/en/reports-and-papers/mobility-report/mobility-
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`visualizer?f=9&ft=2&r=1&t=11,12,13,14,15,16,17&s=4&u=3&y=2011,2027&c=3. For context: a
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`single exabyte of data is equivalent to one billion gigabytes of data. Said another way, if one gigabyte
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`is
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`the size of
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`the Earth,
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`then an exabyte
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`is
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`the size of
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`the sun. See, e.g.,
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`https://www.backblaze.com/blog/what-is-an-exabyte/.
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`13.
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`And mobile device data demand shows no sign of slowing down. Between now and
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`2027, mobile data demand is projected to increase more than three-fold, from 90 exabytes per
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`month to a staggering 282 exabytes per month, with each user consuming an average of 41
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`gigabytes of data each and every month. See, e.g., https://www.ericsson.com/en/reports-and-
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`papers/mobility-report/mobility-calculator?up=2&bp=1&v=0&c=2;
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`https://www.ericsson.com/en/reports-and-papers/mobility-report/mobility-
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`visualizer?f=9&ft=2&r=1&t=11,12,13,14,15,16,17&s=4&u=3&y=2011,2027&c=3.
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`14.
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`Also in 2008, Dr. Raleigh founded ItsOn Inc., which licensed Headwater’s
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`intellectual property and implemented Headwater’s technology into software and services that
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`expanded cellular service plan offerings and improved device and data management capabilities.
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`The tools and technologies delivered by ItsOn allowed carriers to implement Headwater’s
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`technologies in end-user devices—such as mobile phones and tablets—opening up new business
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`models while also providing greater flexibility to carriers and device manufacturers, allowing them
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`to reduce costs while simultaneously improving their devices and services.
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`15.
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`The Headwater technologies disclosed in the Asserted Patents laid the groundwork
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`for many of the infringing features and functionalities that help device manufacturers, wireless
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`carriers, and customers reduce data usage and network congestion, extend battery life by decreasing
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`power consumption, and enable users to stay connected.
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`NOTICE OF THE ASSERTED PATENTS
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`16.
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`The patented technologies which are the subject of this lawsuit are well known to
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`Defendants.
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`17.
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`18.
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`In April of 2010, ItsOn entered into an NDA with Sprint (now T-Mobile).
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`Under that NDA, ItsOn and Sprint’s product development and engineering teams
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`discussed implementing Headwater’s patented technological solutions to solve Sprint’s data
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`demand problems. Over the next several years, ItsOn and Sprint continued sharing confidential
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`information under NDA discussing how the Headwater/ItsOn unique and unconventional
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`technological solutions would provide Sprint and its customers with an improved user experience
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`on the Sprint network, while lowering costs for both Sprint and its users.
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`19.
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`In 2013, ItsOn and Sprint began implementing use cases of Headwater’s
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`technologies in connection with Sprint’s network, including roaming controls, background
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`controls, data offloading, family device management, as well as on-demand data purchasing
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`functionalities. Each of these features make use of technologies developed by Headwater and
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`protected by patents issued to Headwater.
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`20.
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`Between 2013-2016, ItsOn worked with Sprint and Samsung USA, also under
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`NDA, to implement Headwater-patented technology directly into Samsung’s devices.
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`21.
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`As part of the ItsOn, Sprint, and Samsung relationship, ItsOn software
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`implementing Headwater’s patented inventions was installed on numerous end-user wireless
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`devices sold by Sprint, including Samsung devices.
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`22.
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`Sprint mandated that Android handset manufactures, including Samsung, integrate
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`ItsOn’s software into device operating systems and kernels.
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`23.
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`ItsOn and Samsung held frequent, in-depth meetings to discuss engineering details
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`and implement ItsOn’s solutions into Samsung’s software builds.
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`24.
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`Headwater’s patents were disclosed to Samsung in various meetings and through
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`various presentations.
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`25.
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`As part of this work, ItsOn installed its confidential and proprietary software onto
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`Samsung devices, granting Samsung executives and engineering teams root and debug access—
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`under NDA—for testing and implementation.
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`26. More than a dozen different models of Samsung devices were enabled with ItsOn
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`solutions implementing Headwater’s patented technologies.
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`27.
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`By the end of 2015, millions of Sprint devices (including Samsung devices) were
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`running the ItsOn application, which included Headwater’s intellectual property.
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`28.
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`The ItsOn application included a link to http://www.itsoninc.com/patent-notices,
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`which provided notice of Headwater’s patents licensed by ItsOn.
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`29.
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`But what began as a mutual undertaking abruptly became a losing proposition for
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`ItsOn and Headwater.
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`30.
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`In early October 2015, Sprint personnel indicated to ItsOn team members that
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`Samsung planned to implement the Headwater/ItsOn proprietary technology in Samsung’s own
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`device software without further involvement from ItsOn.
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`31.
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`On October 9, 2015, Samsung USA unexpectedly announced to ItsOn that
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`Samsung Korea would be taking over negotiations with ItsOn going forward.
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`32.
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`On October 20, 2015, Samsung personnel requested that ItsOn provide its
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`proprietary and confidential “roaming control policy”—its source code—to Samsung.
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`33.
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`This “roaming control policy” was the subject of the Roaming Reduction project
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`and included functionality implicated in other projects undertaken by Sprint and ItsOn, including
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`Project RuST.
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`34.
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`The “roaming control policy” technology is protected by Headwater’s issued
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`patents.
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`35.
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`Shortly after requesting ItsOn’s “roaming control policy,” Samsung Korea cut off
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`the ItsOn implementation project, leaving ItsOn in the dark about Sprint’s and Samsung’s plans to
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`implement Headwater’s technology.
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`36.
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`Approximately one week later on October 27, 2015, Sprint purported to terminate
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`the Sprint/ItsOn MSA.
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`37.
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`On October 29, 2015, ItsOn team members met with Sprint personnel to discuss
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`the Sprint and ItsOn relationship going forward, and the ramifications of Sprint’s and Samsung’s
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`apparent plans to implement Headwater’s patent-protected technologies in Samsung’s devices.
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`38.
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`ItsOn and Sprint continued to work together into 2016 to implement Headwater’s
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`patented technologies into Sprint devices, including Samsung’s phones and tablets.
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`39.
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`Over the next several years, Samsung released new devices with features and
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`functionalities that help device manufacturers, wireless carriers, and customers save data, reduce
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`power consumption, and stay connected. These new features and functionalities were the subject of
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`the Sprint, Samsung, and ItsOn relationship, use information learned from ItsOn, and infringe
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`Headwater’s Asserted Patents.
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`PLAINTIFF HEADWATER AND THE PATENTS-IN-SUIT
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`40.
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`Plaintiff Headwater was formed in 2011 and has been in continued existence and
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`operation since that time. Headwater is a Texas limited liability company organized under the laws
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`of Texas, with its headquarters at 110 North College Avenue, Suite 1116, Tyler, Texas 75702.
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`41.
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`Headwater is the owner of U.S. Patent No. 9,137,701, entitled “Wireless end-user
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`device with differentiated network access for background and foreground device applications,”
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`which issued on September 15, 2015. A copy of the ’701 patent is attached to this complaint as
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`Exhibit 1.
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`42.
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`Headwater is the owner of U.S. Patent No. 9,271,184, entitled “Wireless end-user
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`device with per-application data limit and traffic control policy list limiting background
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`application traffic,” which issued on February 23, 2016. A copy of the ’184 patent is attached to
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`this complaint as Exhibit 2.
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`43.
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`Headwater is the owner of U.S. Patent No. 9,521,578, entitled “Wireless end-user
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`device with application program interface to allow applications to access application-specific
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`aspects of a wireless network access policy,” which issued on December 13, 2016. A copy of the
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`’578 patent is attached to this complaint as Exhibit 3.
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`DEFENDANTS AND THE ACCUSED INSTRUMENTALITIES
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`44.
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`On information and belief, Defendant Samsung Electronics Co., Ltd. (“SEC”) is a
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`corporation organized under the laws of South Korea, with its principal place of business at 129,
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`Samsung-Ro, YeongTong-Gu, Suwon-Si, Gyonggi-Do, 443-742, South Korea.
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`45.
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`On information and belief, Defendant Samsung Electronics America, Inc. (“SEA”)
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`is a United States corporation organized under the laws of the State of New York, with its principal
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`place of business at 85 Challenger Road, Ridgefield Park, New Jersey 07660. SEA is a wholly-
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`owned subsidiary of SEC. SEA distributes certain Samsung consumer electronics products,
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`including the Accused Instrumentalities, in the United States.
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`46.
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`On information and belief, SEA has corporate offices in the Eastern District of
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`Texas at 1303 East Lookout Drive, Richardson, Texas 75082, 2800 Technology Drive, Suite 200,
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`Plano, Texas 75074, and at 6625 Excellence Way, Plano, Texas 75023.1 On information and belief,
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`SEA may be served with process through its registered agent CT Corporation System, 1999 Bryan
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`Street, Suite 900, Dallas, Texas 75201-3136.
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`47.
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`The Accused Instrumentalities are mobile electronic devices, including mobile
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`phones and tablets used, offered for sale, sold, and/or imported by Defendants in the United States.
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`JURISDICTION AND VENUE
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`48.
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`This action arises under the patent laws of the United States, Title 35 of the United
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`States Code.
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`49.
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`This Court has original subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331
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`and 1338(a).
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`50.
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`This Court has personal jurisdiction over Samsung in this action because Samsung
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`has committed acts of infringement within this District giving rise to this action, has a regular and
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`established place of business in this District, and has established minimum contacts with this forum
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`such that the exercise of jurisdiction over Samsung would not offend traditional notions of fair
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`play and substantial justice. Samsung, directly and/or through subsidiaries or intermediaries,
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`conducts its business extensively throughout Texas, by shipping, distributing, offering for sale,
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`selling, and advertising its products and/or services in Texas and the Eastern District of Texas,
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`regularly do business or solicit business, engage in other persistent courses of conduct, and/or
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`derive substantial revenue from products and/or services provided to individuals in Texas, and
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`commit acts of infringement of Headwater’s patents in this District by, among other things,
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`making, using, importing, offering to sell, and selling products that infringe the asserted patents,
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`1 https://news.samsung.com/us/samsung-electronics-america-open-flagship-north-texas-campus/;
`https://www.themuse.com/profiles/samsungelectronicsamerica/location/plano.
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`including without limitation the Samsung tablets and phones accused of infringement in this case.
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`51.
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`Samsung, directly and/or through subsidiaries or intermediaries, have purposefully
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`and voluntarily placed one or more products and/or services in the stream of commerce that
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`practice the Asserted Patents with the intention and expectation that they will be purchased and
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`used by consumers in the Eastern District of Texas. These products and/or services have been and
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`continue to be purchased and used in the Eastern District of Texas.
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`52.
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`Venue as to Samsung is proper in this District under 28 U.S.C. §§ 1391 and
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`1400(b). On information and belief, Samsung has transacted business in this District and has
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`committed acts of direct and indirect infringement in this District by, among other things, making,
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`using, importing, offering to sell, and selling products that infringe the Asserted Patents.
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`53.
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`Defendant SEA maintains a regular and established place of business at 1303 East
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`Lookout Drive, Richardson, Texas 75082, 2800 Technology Drive, Suite 200, Plano, Texas 75074,
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`and 6625 Excellence Way, Plano, Texas 75023.
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`54.
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`Defendant SEC is a foreign corporation. Venue is proper as to a foreign defendant
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`in any district. 28 U.S.C. § 1391(c)(3).
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`55.
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`Further, upon information and belief, Samsung has admitted or not contested proper
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`venue in this Judicial District in other patent infringement actions.
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`COUNT 1 – CLAIM FOR INFRINGEMENT OF THE ’701 PATENT
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`56.
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`Headwater incorporates by reference each of the allegations in paragraphs 1–55
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`above and further alleges as follows:
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`57.
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`On September 15, 2015, the United States Patent and Trademark Office issued U.S.
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`Patent No. 9,137,701, entitled “Wireless end-user device with differentiated network access for
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`background and foreground device applications.” Ex. 1.
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`58.
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`Headwater is the owner of the ’701 patent with full rights to pursue recovery of
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`royalties for damages for infringement, including full rights to recover past and future damages.
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`59.
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`The written description of the ’701 patent describes in technical detail each
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`limitation of the claims, allowing a skilled artisan to understand the scope of the claims and how
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`the nonconventional and non-generic combination of claim limitations is patently distinct from
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`and improved upon what may have been considered conventional or generic in the art at the time
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`of the invention.
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`60.
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`Headwater and its predecessors in interest have satisfied the requirements of 35
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`U.S.C. § 287(a) with respect to the ’701 patent, and Headwater is entitled to damages for
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`Defendants’ past infringement.
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`61.
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`Defendants have directly infringed (literally and equivalently) and induced others
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`to infringe the ’701 patent by making, using, selling, offering for sale, or importing products that
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`infringe the claims of the ’701 patent and by inducing others to infringe the claims of the ’701
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`patent without a license or permission from Headwater, such as for example instructing users of
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`the Accused Instrumentalities to perform the patented methods of the ’701 patent.
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`62.
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`On information and belief, Defendants use, import, offer for sale, and sell certain
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`infringing products in the United States. The Accused Instrumentalities are, for example, mobile
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`electronic devices, including mobile phones and tablets.
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`63.
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`For example, attached as Exhibit 4 is a chart setting forth an exemplary description
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`of Defendants’ infringement claim 1 of the ’701 patent.
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`64.
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`Defendants also knowingly and intentionally induce and contribute to infringement
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`of the ’701 patent in violation of 35 U.S.C. §§ 271(b) and 271(c). For example, Defendants have
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`had knowledge or were willfully blind of the ’701 patent and the infringing nature of the Accused
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`Instrumentalities at least because the ItsOn software installed on Defendants phones and tablets in
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`2013-2016 included a patent marking notice which listed the ’701 patent. Similarly, Defendants
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`have had knowledge or were willfully blind of the ’701 patent and the infringing nature of the
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`Accused Instrumentalities at least because of communications by and among ItsOn, Sprint, and
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`Samsung discussing ItsOn’s and Headwater’s intellectual property, including pending patent
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`applications (such as the application which led to the issuance of the ’701 patent) and issued patents
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`(including the ’701 patent), during the integration and installation of the ItsOn software and
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`solutions into Defendants’ operating systems, source code, and kernels in 2013-2016.
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`Additionally, on information and belief, Samsung has cited this specification in at least four
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`Samsung Electronics Co., Ltd. patents, all of which issued after the ’701 patent was published and
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`granted.
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`65.
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`Despite their knowledge of the ’701 patent, Defendants continue to actively
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`encourage and instruct its customers to use and integrate the Accused Instrumentalities in ways
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`that directly infringe the ’701 patent. Defendants do so knowing and intending that their customers
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`will commit these infringing acts. Defendants also continue to make, use, offer for sale, sell, and/or
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`import the Accused Instrumentalities, despite their knowledge of the ’701 patent, thereby
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`specifically intending for and inducing its customers to infringe the ’701 patent through the
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`customers’ normal and customary use of the Accused Instrumentalities.
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`66.
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`Defendants have infringed multiple claims of the ’701 patent, including
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`independent claim 1. By way of example only, the normal and customary use of the mobiles phones
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`and tablets made, used, sold, offered for sale and/or imported by Defendants infringes an
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`exemplary claim of the ’701 patent, as in the description set forth in Exhibit 4, which Headwater
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`provides without the benefit of information about the Accused Instrumentalities obtained through
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`discovery.
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`67.
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`Defendants have known how the Accused Instrumentalities are made and have
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`known, or have been willfully blind to the fact, that making, using, offering to sell, and selling the
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`Accused Instrumentalities to their customers, would constitute willful infringement of the ’701
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`patent. Those products imported into and sold within the United States include, without limitation,
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`Samsung Galaxy tablets and phones.
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`68.
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`Defendants have induced, and continue to induce, infringement of the ’701 patent
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`by actively encouraging others (including its customers) to use, offer to sell, sell, and import the
`
`Accused Instrumentalities. On information and belief, these acts include providing information
`
`and instructions on the use of the Accused Instrumentalities; providing information, education and
`
`instructions to its customers; providing the Accused Instrumentalities to customers; and
`
`indemnifying patent infringement within the United States.
`
`69.
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`Headwater has been damaged by Defendant’s infringement of the ’701 patent and
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`is entitled to damages as provided for in 35 U.S.C. § 284, including reasonable royalty damages.
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`COUNT 2 – CLAIM FOR INFRINGEMENT OF THE ’184 PATENT
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`70.
`
`Headwater incorporates by reference each of the allegations in paragraphs 1–69
`
`above and further alleges as follows:
`
`71.
`
`On February 23, 2016, the United States Patent and Trademark Office issued U.S.
`
`Patent No. 9,271,184, entitled “Wireless end-user device with per-application data limit and traffic
`
`control policy list limiting background application traffic.” Ex. 2.
`
`72.
`
`Headwater is the owner of the ’184 patent with full rights to pursue recovery of
`
`royalties for damages for infringement, including full rights to recover past and future damages.
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`73.
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`The written description of the ’184 patent describes in technical detail each
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`limitation of the claims, allowing a skilled artisan to understand the scope of the claims and how
`
`the nonconventional and non-generic combination of claim limitations is patently distinct from
`
`and improved upon what may have been considered conventional or generic in the art at the time
`
`of the invention.
`
`74.
`
`Headwater and its predecessors in interest have satisfied the requirements of 35
`
`U.S.C. § 287(a) with respect to the ’184 patent, and Headwater is entitled to damages for
`
`Defendants’ past infringement.
`
`75.
`
`Defendants have directly infringed (literally and equivalently) and induced others
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`to infringe the ’184 patent by making, using, selling, offering for sale, or importing products that
`
`infringe the claims of the ’184 patent and by inducing others to infringe the claims of the ’184
`
`patent without a license or permission from Headwater, such as for example instructing users of
`
`the Accused Instrumentalities to perform the patented methods of the ’184 patent.
`
`76.
`
`On information and belief, Defendants use, import, offer for sale, and sell certain
`
`infringing products in the United States. The Accused Instrumentalities are, for example, mobile
`
`electronic devices, including mobile phones and tablets.
`
`77.
`
`For example, attached as Exhibit 5 is a chart setting forth a description of
`
`Defendants’ infringement claim 1 of the ’184 patent.
`
`78.
`
`Defendants also knowingly and intentionally induce and contribute to infringement
`
`of the ’184 patent in violation of 35 U.S.C. §§ 271(b) and 271(c). For example, Defendants have
`
`had knowledge or were willfully blind of the ’184 patent and the infringing nature of the Accused
`
`Instrumentalities at least because the ItsOn software installed on Defendants phones and tablets in
`
`2013-2016 included a patent marking notice which listed the ’184 patent. Similarly, Defendants
`
`
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`Case 2:22-cv-00422 Document 1 Filed 10/26/22 Page 17 of 23 PageID #: 17
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`have had knowledge or were willfully blind of the ’184 patent and the infringing nature of the
`
`Accused Instrumentalities at least because of communications by and among ItsOn, Sprint, and
`
`Samsung discussing ItsOn’s and Headwater’s intellectual property, including pending patent
`
`applications (such as the application which led to the issuance of the ’184 patent) and issued patents
`
`(including the ’184 patent), during the integration and installation of the ItsOn software and
`
`solutions into Defendants’ operating systems, source code, and kernels in 2013-2016.
`
`Additionally, on information and belief, Samsung has cited this specification in at least four
`
`Samsung Electronics Co., Ltd. patents, all of which issued after the ’184 patent was published and
`
`granted.
`
`79.
`
`Despite this knowledge of the ’184 patent, Defendants continue to actively
`
`encourage and instruct its customers to use and integrate the Accused Instrumentalities in ways
`
`that directly infringe the ’184 patent. Defendants do so knowing and intending that their customers
`
`will commit these infringing acts. Defendants also continue to make, use, offer for sale, sell, and/or
`
`import the Accused Instrumentalities, despite their knowledge of the ’184 patent, thereby
`
`specifically intending for and inducing its customers to infringe the ’184 patent through the
`
`customers’ normal and customary use of the Accused Instrumentalities.
`
`80.
`
`Defendants have infringed multiple claims of the ’184 patent, including
`
`independent claim 1. By way of example only, the normal and customary use of the mobiles phones
`
`and tablets made, used, sold, offered for sale and/or imported by Defendants infringes an
`
`exemplary claim of the ’184 patent, as in the description set forth in Exhibit 5, which Headwater
`
`provides without the benefit of information about the Accused Instrumentalities obtained through
`
`discovery.
`
`
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`17
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`Case 2:22-cv-00422 Document 1 Filed 10/26/22 Page 18 of 23 PageID #: 18
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`81.
`
`Defendants have known how the Accused Instrumentalities are made and have
`
`known, or have been willfully blind to the fact, that making, using, offering to sell, and selling the
`
`Accused Instrumentalities to their customers, would constitute willful infringement of the ’184
`
`patent. Those products imported into and sold within the United States include, without limitation,
`
`Samsung Galaxy tablets and phones.
`
`82.
`
`Defendants have induced, and continue to induce, infringement of the ’184 patent
`
`by actively encouraging others (including its customers) to use, offer to sell, sell, and import the
`
`Accused Instrumentalities. On information and belief, these acts include providing information
`
`and instructions on the use of the Accused Instrumentalities; providing information, education and
`
`instructions to its customers; providing the Accused Instrumentalities to customers; and
`
`indemnifying patent infringement within the United States.
`
`83.
`
`Headwater has been damaged by Defendant’s infringement of the ’184 patent and
`
`is entitled to damages as provided for in 35 U.S.C. § 284, including reasonable royalty damages.
`
`COUNT 3 – CLAIM FOR INFRINGEMENT OF THE ’578 PATENT
`
`84.
`
`Headwater incorporates by reference each of the allegations in paragraphs 1–83
`
`above and further a