`CARDWARE INC.
`
`
`Plaintiff,
`
`
`v.
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`
`Civil Action No. 2:22-cv-00141
`
`
`COMPLAINT FOR PATENT
`INFRINGEMENT AND DAMAGES
`
`JURY TRIAL DEMANDED
`
`
`
`SAMSUNG ELECTRONICS CO., LTD.;
`SAMSUNG ELECTRONICS AMERICA,
`INC.,
`
`
`Defendants.
`
`
`
`
`
`
`COMPLAINT FOR PATENT INFRINGEMENT AND DAMAGES
`AND DEMAND FOR JURY TRIAL
`
`Plaintiff CardWare Inc., files this Complaint for Patent Infringement and Damages against
`
`Defendants Samsung Electronics Co., Ltd. and Samsung Electronics America, Inc., and would
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`respectfully show the Court as follows:
`
`PARTIES
`
`1.
`
`Plaintiff CardWare Inc. (“CardWare” or “Plaintiff”) is a California corporation with
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`its principal place of business located at 5201 Great America Parkway, Santa Clara, CA 95054.
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`CardWare is an American firm that develops secure systems for electronic payments.
`
`2.
`
`Defendant Samsung Electronics Co., Ltd. (“SEC”) is a company organized and
`
`existing under the laws of the Republic of Korea. SEC has a principal place of business located at
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`129 Samsung-Ro, Yeongtong-Gu, Suwon-Shi, Gyeonggi-Do, 443-742, Republic of Korea. SEC
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`may be served at least by process under the Hague Convention. SEC’s “Information Technology
`
`& Mobile Communications” division is responsible for the design, manufacture, and sale of mobile
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`
`
`1
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`SAMSUNG 1100
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`
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`devices, such as smartphones, and related software, applications, and payment services that operate
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`on cellular networks around the world and in the United States.
`
`3.
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`Defendant Samsung Electronics America, Inc. (“SEA”; collectively with SEC,
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`“Defendants”) is a New York corporation with its principal place of business at 85 Challenger
`
`Road, Ridgefield Park, New Jersey 07660. SEA is a wholly-owned subsidiary of SEC. SEA has a
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`business location in this District at 6625 Excellence Way, Plano, TX. 75023. SEA may be served
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`in Texas at least via its registered agent, CT Corporation System, 1999 Bryan Street, Suite 900,
`
`Dallas, Texas 75201.
`
`4.
`
`On information and belief, Defendants directly and/or indirectly develop, design,
`
`manufacture, distribute, market, offer to sell and/or sell infringing products and services in the
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`United States, including in the Eastern District of Texas, and otherwise direct infringing activities
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`to this District in connection with their products and services as set forth in this Complaint.
`
`JURISDICTION
`
`5.
`
`This civil action arises under the Patent Laws of the United States, 35 U.S.C. § 1 et
`
`seq., including without limitation 35 U.S.C. §§ 271, 281, 283, 284, and 285. This is a patent
`
`infringement lawsuit over which this Court has subject matter jurisdiction under, inter alia, 28
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`U.S.C. §§ 1331, 1332, and 1338(a).
`
`6.
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`This District has general and specific personal jurisdiction over Defendants
`
`because, directly or through intermediaries, Defendants have committed acts within this District
`
`giving rise to this action; are present in and transact and conduct business in this District and the
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`State of Texas; and transact and conduct business with residents of this District and the State of
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`Texas.
`
`
`
`2
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`
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`7.
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`CardWare’s causes of action arise, at least in part, from Defendants’ contacts with
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`and activities in this District and the State of Texas.
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`8.
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`Defendants have infringed the patents-in-suit within this District and the State of
`
`Texas by making, using, selling, offering for sale, and/or importing in or into this District and
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`elsewhere in the State of Texas, products claimed by the patents-in-suit, including without
`
`limitation products made by practicing the claimed methods of the patents-in-suit. Defendants,
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`directly and through intermediaries, make, use, sell, offer for sale, import, ship, distribute,
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`advertise, promote, and/or otherwise commercialize such infringing products in or into this District
`
`and the State of Texas. Defendants regularly conduct and solicit business in, engage in other
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`persistent courses of conduct in, and/or derive substantial revenue from goods and services
`
`provided to residents of this District and the State of Texas.
`
`9.
`
`This Court has personal jurisdiction over Defendants pursuant to TEX. CIV. PRAC.
`
`& REM. CODE § 17.041 et seq.
`
`10.
`
`Personal jurisdiction exists over Defendants because Defendants have minimum
`
`contacts with this forum as a result of business regularly conducted within this District and the
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`State of Texas, and, on information and belief, specifically as a result of, at least, committing the
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`tort of patent infringement within this District and the State of Texas.
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`11.
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`This Court also has personal jurisdiction over Defendants, in part, because
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`Defendants each do continuous and systematic business in this District, including by providing
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`infringing products and services to the residents of this District that Defendants knew would be
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`used within this District, and by soliciting business from the residents of this District.
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`12.
`
`For example, Defendants are subject to personal jurisdiction in this Court because,
`
`inter alia, Defendants through agents regularly solicit and transact business in this District and
`
`
`
`3
`
`
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`have an established place of business in this District. Accordingly, this Court’s jurisdiction over
`
`the Defendants comports with the constitutional standards of fair play and substantial justice and
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`arises directly from Defendants’ purposeful minimum contacts with the State of Texas.
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`13.
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`This Court also has personal jurisdiction over Defendants because Defendants have
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`made their products available for, at least, purchase and use within this District.
`
`14.
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`15.
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`Venue is proper in this Court under 28 U.S.C. §§ 1391 and 1400(b).
`
`For example, SEC maintains a regular and established place of business in this
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`judicial district at 6625 Excellence Way, Plano, Texas 75023 and has committed acts of
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`infringement in this District.
`
`16.
`
`As another example, SEA maintains a regular and established place of business in
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`this judicial district at 6625 Excellence Way, Plano, Texas 75023 and has committed acts of
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`infringement in this District.
`
`17.
`
`Defendants have not contested proper venue and exercise of personal jurisdiction
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`in this District for patent infringement actions in the past. See, e.g., Answer at ¶¶ 13, 18, Cal. Inst.
`
`Tech. v. Samsung Elecs. Co., Ltd. et al., No. 2:21-cv-0046, Dkt. 19 (E.D. Tex. Apr. 5, 2022);
`
`Answer to Amended Complaint at ¶¶ 6, 7, Jawbone Innovations, LLC v. Samsung Elecs. Co., Ltd.
`
`et al., No. 2:21-cv-00186, Dkt. 27 (E.D. Tex. Dec. 9, 2021).
`
`THE PATENTS-IN-SUIT
`
`18.
`
`On July 2, 2019, United States Patent No. 10,339,520 (“the ’520 patent”), entitled
`
`“MULTI-FUNCTIONAL CREDIT CARD TYPE PORTABLE ELECTRONIC DEVICE” was
`
`duly and legally issued by the United States Patent and Trademark Office (“USPTO”). A true and
`
`correct copy of the ’520 patent is attached hereto as Exhibit A.
`
`19.
`
`The ’520 patent claims patent-eligible subject matter and is valid and enforceable.
`
`
`
`4
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`
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`20.
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`CardWare is the exclusive owner by assignment of all rights, title, and interest in
`
`the ’520 patent, including the right to bring this suit for injunctive relief and damages, and
`
`including the right to sue and recover all past, present, and future damages for infringement of
`
`the ’520 patent.
`
`21.
`
`Defendants are not licensed to the ’520 patent, either expressly or implicitly, nor do
`
`they enjoy or benefit from any rights in or to the ’520 patent whatsoever.
`
`22.
`
`On April 21, 2020, United States Patent No. 10,628,820 (“the ’820 patent”), entitled
`
`“MULTI-FUNCTION ELECTRONIC PAYMENT DEVICE” was duly and legally issued by the
`
`USPTO. A true and correct copy of the ’820 patent is attached hereto as Exhibit B.
`
`23.
`
`24.
`
`The ’820 patent claims patent-eligible subject matter and is valid and enforceable.
`
`CardWare is the exclusive owner by assignment of all rights, title, and interest in
`
`the ’820 patent, including the right to bring this suit for injunctive relief and damages, and
`
`including the right to sue and recover all past, present, and future damages for infringement of
`
`the ’820 patent.
`
`25.
`
`Defendants are not licensed to the ’820 patent, either expressly or implicitly, nor do
`
`they enjoy or benefit from any rights in or to the ’820 patent whatsoever.
`
`26.
`
`On October 20, 2020, United States Patent No. 10,810,579 (“the ’579 patent”),
`
`entitled “SMART TOKENIZING PAYMENT CARD AND DEVICE AND TRANSACTION
`
`PROCESSING THEREOF, SYSTEM AND METHOD” was duly and legally issued by the
`
`USPTO. A true and correct copy of the ’579 patent is attached hereto as Exhibit C.
`
`27.
`
`28.
`
`The ’579 patent claims patent-eligible subject matter and is valid and enforceable.
`
`CardWare is the exclusive owner by assignment of all rights, title, and interest in
`
`the ’579 Patent, including the right to bring this suit for injunctive relief and damages, and
`
`
`
`5
`
`
`
`including the right to sue and recover all past, present, and future damages for infringement of
`
`the ’579 Patent.
`
`29.
`
`Defendants are not licensed to the ’579 patent, either expressly or implicitly, nor do
`
`they enjoy or benefit from any rights in or to the ’579 patent whatsoever.
`
`30.
`
`On November 16, 2021, United States Patent No. 11,176,538 (“the ’538 patent”),
`
`entitled “MULTI-FUNCTION SMART TOKENIZING ELECTRONIC PAYMENT DEVICE”
`
`was duly and legally issued by the USPTO. A true and correct copy of the ’538 patent is attached
`
`hereto as Exhibit D.
`
`31.
`
`32.
`
`The ’538 patent claims patent-eligible subject matter and is valid and enforceable.
`
`CardWare is the exclusive owner by assignment of all rights, title, and interest in
`
`the ’538 patent, including the right to bring this suit for injunctive relief and damages, and
`
`including the right to sue and recover all past, present, and future damages for infringement of
`
`the ’538 patent.
`
`33.
`
` Defendants are not licensed to the ’538 patent, either expressly or implicitly, nor
`
`do they enjoy or benefit from any rights in or to the ’538 patent whatsoever.
`
`34.
`
`On May 10, 2022, United States Patent No. 11,328,286 (“the ’286 patent”), entitled
`
`“MULTI-FUNCTION ELECTRONIC PAYMENT CARD AND DEVICE SYSTEM” was duly
`
`and legally issued by the USPTO. A true and correct copy of the ’286 patent is attached hereto as
`
`Exhibit E.
`
`35.
`
`36.
`
`The ’286 patent claims patent-eligible subject matter and is valid and enforceable.
`
`CardWare is the exclusive owner by assignment of all rights, title, and interest in
`
`the ’286 patent, including the right to bring this suit for injunctive relief and damages, and
`
`
`
`6
`
`
`
`including the right to sue and recover all past, present, and future damages for infringement of
`
`the ’286 patent.
`
`37.
`
` Defendants are not licensed to the ’286 patent, either expressly or implicitly, nor
`
`do they enjoy or benefit from any rights in or to the ’286 patent whatsoever.
`
`38.
`
`The ’520, ’820, ’579,’538, and ’286 patents are collectively referred to herein as
`
`the “CardWare Patents” or the “patents-in-suit.”
`
`ACCUSED INSTRUMENTALITIES
`
`39.
`
`Defendants manufacture, use, test, market, offer for sale, sell and/or import into the
`
`United States payment cards and electronic devices that are enabled with Samsung Pay for making
`
`secure
`
`electronic
`
`payments
`
`(see,
`
`e.g.,
`
`https://www.samsung.com/us/samsung-pay/;
`
`https://www.samsung.com/my/samsung-pay/supported-devices/;
`
`https://www.samsung.com/in/support/mobile-devices/samsung-pay-what-is-it-where-is-it-and-
`
`how-to-use-it/).
`
`40.
`
`Hereafter, the term “Accused Instrumentalities” or “Accused Products” refers to all
`
`products manufactured, used, tested, imported, or sold by or on behalf of Defendants that embody
`
`the electronic devices claimed by the patents-in-suit and all processes employed by Defendants
`
`that practice the methods claimed by the patents-in-suit, consisting of at least Defendants’ products
`
`that support Samsung Pay, including, by way of example and without limitation, the Samsung
`
`Money payment card and Samsung-branded mobile devices and smart watches, including without
`
`limitation, Defendants’ Samsung-branded mobile devices which support Samsung Pay including
`
`at least the following: Samsung Galaxy S6 (including S6 Edge, Active, and Edge+; S6, S6 Edge
`
`and S6 Active), Samsung Galaxy S7 (including S7 Edge & Active), Samsung Galaxy S8 (including
`
`S8+ & Active), Samsung Galaxy S9 (including S9+), Samsung Galaxy S10 (including S10e, S10+,
`
`
`
`7
`
`
`
`S10 5G and S10 Lite), Samsung Galaxy S20 (including S20 5G, S20+, S20+ 5G, S20 Ultra, S20
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`Ultra 5G, S20 FE, S20 FE 5G), Samsung Galaxy S21 (including S21+, S21 Ultra, S21 Ultra 5G,
`
`S21 FE, and S21 FE 5G), Samsung Galaxy S22 (including S22+, S22 Ultra, and S22 Ultra 5G),
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`Samsung Galaxy Note 5, Samsung Galaxy Note 7, Samsung Galaxy Note FE, Samsung Galaxy
`
`Note 8, Samsung Galaxy Note 9, Samsung Galaxy Note 10 (including Note 10+, Note 10 5G, Note
`
`10+ 5G and Note 10 Lite), Samsung Galaxy Note 20 (including Note 20 5G, Note 20 Ultra, Note
`
`20 Ultra 5G), Samsung Galaxy Fold (including Fold 5G), Samsung Galaxy Z Flip (including Z
`
`Flip 5G), Samsung Galaxy Z Fold 2 (including Z Fold 2 5G), Samsung Galaxy Z Fold 3 (including
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`Z Fold 3 5G), Samsung Galaxy Z Flip 3 (including Z Flip 3 5G), Samsung Galaxy A3, Samsung
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`Galaxy A5 (including A5 2016 and A5 2017), Samsung Galaxy A7 (including A7 2016, A7 2017,
`
`and A7 2018), Samsung Galaxy A8 (including A8+ and A8 Star), Samsung Galaxy A9 (including
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`A9 Pro and A9 2018), Samsung Galaxy A80, Samsung Galaxy A30s, Samsung Galaxy A31,
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`Samsung Galaxy A32 (including A32 5G), Samsung Galaxy 42 5G, Samsung Galaxy A50s,
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`Samsung Galaxy A51, Samsung Galaxy A52 (including A52 5G and A52s 5G), Samsung Galaxy
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`A71, Samsung Galaxy A72, Samsung Galaxy M22, Samsung Galaxy M32, Samsung Galaxy M52
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`5G, Samsung Galaxy M22, and Samsung Galaxy M42 as well as Defendants’ Samsung-branded
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`smart watches which support Samsung Pay including at least the following: Samsung Galaxy
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`Watch, Samsung Galaxy Watch 3, Samsung Galaxy Watch 4, Samsung Galaxy Watch 4 Classic,
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`Samsung Galaxy Watch Active, Samsung Galaxy Watch Active 2, Samsung Gear S2, Samsung
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`Gear S3, and Samsung Gear Sport. Plaintiff reserves its right to amend this list based on additional
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`information from the discovery process.
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`41.
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`On information and belief, Defendants have pre-loaded each of the above Samsung-
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`branded mobile devices and smart watches with their Samsung Pay software prior to offering them
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`
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`8
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`
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`for sale to consumers, thus allowing their customers to utilize the infringing functionalities of
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`Samsung Pay, with and without an accompanying Samsung Money payment card, immediately
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`after purchase.
`
`COUNT I
`PATENT INFRINGEMENT OF THE ’520 PATENT
`
`Plaintiff restates and realleges the preceding paragraphs of this Complaint.
`
`Defendants have, under 35 U.S.C. §271(a), directly infringed, and continue to
`
`42.
`
`43.
`
`directly infringe, literally and/or under the doctrine of equivalents, one or more claims, including
`
`without limitation at least claim 1 of the ’520 patent, by making, using, testing, selling, offering
`
`for sale and/or importing into the United States the Accused Products.
`
`44.
`
`45.
`
`To the extent required, Plaintiff has fulfilled all requirements of 35 U.S.C. § 287(a).
`
`Defendants also indirectly infringe the ’520 patent (from the date of this Complaint)
`
`under 35 U.S.C. §§ 271(b) and (c).
`
`46.
`
`Defendants knowingly and intentionally actively aid, abet, and induce others to
`
`directly infringe at least claim 1 of the ’520 patent (such as its customers in this District and
`
`throughout the United States).
`
`47.
`
`48.
`
`Defendants continue to induce infringement of the ’520 patent.
`
`Defendants contribute to the direct infringement of at least claim 1 of the ’520
`
`patent under 35 U.S.C. § 271(c) by supplying, with knowledge of the ’520 patent, a material part
`
`of a claimed combination, where such material part is not a staple article of commerce and is
`
`incapable of substantial noninfringing use.
`
`49.
`
`Defendants contribute to their customers’ and/or other third parties’ infringement
`
`because, with knowledge of the ’520 patent, Defendants supply the technology that allows their
`
`customers to infringe the ’520 patent.
`
`
`
`9
`
`
`
`50.
`
`Defendants have knowledge that their activities concerning the Accused Products
`
`infringe at least claim 1 of the ’520 patent.
`
`51.
`
`On information and belief, Defendants will continue to encourage, aid, or otherwise
`
`cause third parties to import, sell, offer for sale, and use the Accused Products (which are acts of
`
`direct infringement of the ’520 patent) and Defendants have and will continue to encourage those
`
`acts with the specific intent to infringe at least claim 1 of the ’520 patent.
`
`52.
`
`Further, Defendants provide information and technical support to their customers,
`
`including promotional materials, product manuals, brochures, videos, demonstrations, and website
`
`materials encouraging their customers to purchase the Accused Products and instructing their
`
`customers on how to use the Accused Products—which are acts of direct infringement of the ’520
`
`patent.
`
`53.
`
`Alternatively, Defendants know and/or will know that there is a high probability
`
`that the importation, sale, offer for sale, and use of the Accused Products constitutes direct
`
`infringement of the ’520 patent but took deliberate actions to avoid learning of these facts.
`
`54.
`
`On information and belief, Defendants have made no attempt to design around the
`
`claims of the ’520 patent.
`
`55.
`
`On information and belief, Defendants did not have a reasonable basis for believing
`
`that the claims of the ’520 patent were invalid.
`
`56.
`
`On information and belief, Defendants’ Accused Products are available to
`
`businesses and individuals throughout the United States and in the State of Texas, including in this
`
`District.
`
`57.
`
`Defendants have caused and will continue to cause CardWare irreparable injury and
`
`damage by infringing at least claim 1 of the ’520 patent. CardWare will suffer further irreparable
`
`
`
`10
`
`
`
`injury, for which it has no adequate remedy at law, unless and until Defendants are enjoined from
`
`infringing the claims of the ’520 patent.
`
`58.
`
`On information and belief, Defendants’ infringement of the ’520 patent has been
`
`exceptional, warranting an award of attorneys’ fees under 35 U.S.C. § 285.
`
`59.
`
`The claim chart attached hereto as Exhibit F describes how claim 1 of the ’520
`
`patent is infringed by the Accused Products. This provides details regarding only one example of
`
`Defendants’ infringement, and only as to a single patent claim, and Plaintiff reserves its right to
`
`provide greater detail and scope via its Infringement Contentions at the time required under this
`
`Court’s scheduling order.
`
`COUNT II
`PATENT INFRINGEMENT OF THE ’820 PATENT
`
`Plaintiff restates and realleges the preceding paragraphs of this Complaint.
`
`Defendants have, under 35 U.S.C. §271(a), directly infringed, and continue to
`
`60.
`
`61.
`
`directly infringe, literally and/or under the doctrine of equivalents, one or more claims, including
`
`without limitation at least claim 1 of the ’820 patent, by making, using, testing, selling, offering
`
`for sale and/or importing into the United States the Accused Products.
`
`62.
`
`63.
`
`To the extent required, Plaintiff has fulfilled all requirements of 35 U.S.C. § 287(a).
`
`Defendants also indirectly infringe the ’820 patent (from the date of this Complaint)
`
`under 35 U.S.C. §§ 271(b) and (c).
`
`64.
`
`Defendants knowingly and intentionally actively aid, abet, and induce others to
`
`directly infringe at least claim 1 of the ’820 patent (such as its customers in this District and
`
`throughout the United States).
`
`65.
`
` Defendants continue to induce infringement of the ’820 patent.
`
`
`
`11
`
`
`
`66.
`
` Defendants contribute to the direct infringement of at least claim 1 of the ’820
`
`patent under 35 U.S.C. § 271(c) by supplying, with knowledge of the ’820 patent, a material part
`
`of a claimed combination, where the material part is not a staple article of commerce and is
`
`incapable of substantial noninfringing use.
`
`67.
`
` Defendants contribute to their customers’ and/or other third parties’ infringement
`
`because, with knowledge of the ’820 patent, Defendants supply the technology that allows their
`
`customers to infringe the ’820 patent.
`
`68.
`
`Defendants have knowledge that their activities concerning the Accused Products
`
`infringe at least claim 1 of the ’820 patent.
`
`69.
`
`On information and belief, Defendants will continue to encourage, aid, or otherwise
`
`cause third parties to import, sell, offer for sale, and use the Accused Products (which are acts of
`
`direct infringement of the ’820 patent) and Defendants have and will continue to encourage those
`
`acts with the specific intent to infringe at least claim 1 of the ’820 patent.
`
`70.
`
`Further, Defendants provide information and technical support to their customers,
`
`including promotional materials, product manuals, brochures, videos, demonstrations, and website
`
`materials encouraging their customers to purchase the Accused Products and instructing their
`
`customers to use the Accused Products—which are acts of direct infringement of the ’820 patent.
`
`71.
`
`Alternatively, Defendants know and/or will know that there is a high probability
`
`that the importation, sale, offer for sale, and use of the Accused Products constitutes direct
`
`infringement of the ’820 patent but took deliberate actions to avoid learning of these facts.
`
`72.
`
`On information and belief, Defendants have made no attempt to design around the
`
`claims of the ’820 patent.
`
`
`
`12
`
`
`
`73.
`
`On information and belief, Defendants did not have a reasonable basis for believing
`
`that the claims of the ’820 patent were invalid.
`
`74.
`
`On information and belief, Defendants’ Accused Products are available to
`
`businesses and individuals throughout the United States and in the State of Texas, including in this
`
`District.
`
`75.
`
`Defendants have caused and will continue to cause CardWare irreparable injury and
`
`damage by infringing at least claim 1 of the ’820 patent. CardWare will suffer further irreparable
`
`injury, for which it has no adequate remedy at law, unless and until Defendants are enjoined from
`
`infringing the claims of the ’820 patent.
`
`76.
`
`On information and belief, Defendants’ infringement of the ’820 patent has been
`
`exceptional, warranting an award of attorneys’ fees under 35 U.S.C. § 285.
`
`77.
`
`The claim chart attached hereto as Exhibit G describes how claim 1 of the ’820
`
`patent is infringed by the Accused Products. This provides details regarding only one example of
`
`Defendants’ infringement, and only as to a single patent claim, and Plaintiff reserves its right to
`
`provide greater detail and scope via its Infringement Contentions at the time required under this
`
`Court’s scheduling order.
`
`COUNT III
`PATENT INFRINGEMENT OF THE ’579 PATENT
`
`Plaintiff restates and realleges the preceding paragraphs of this Complaint.
`
`Defendants have, under 35 U.S.C. §271(a), directly infringed, and continue to
`
`78.
`
`79.
`
`directly infringe, literally and/or under the doctrine of equivalents, one or more claims, including
`
`without limitation at least claim 19 of the ’579 patent, by making, using, testing, selling, offering
`
`for sale and/or importing into the United States the Accused Products.
`
`80.
`
`To the extent required, Plaintiff has fulfilled all requirements of 35 U.S.C. § 287(a).
`
`
`
`13
`
`
`
`81.
`
`Defendants also indirectly infringe the ’579 patent (from the date of this Complaint)
`
`under 35 U.S.C. §§ 271(b) and (c).
`
`82.
`
`Defendants knowingly and intentionally actively aid, abet, and induce others to
`
`directly infringe at least one claim of the ’579 patent (such as its customers in this District and
`
`throughout the United States).
`
`83.
`
`84.
`
` Defendants continue to induce infringement of the ’579 patent.
`
` Defendants contribute to the infringement of at least claim 19 of the ’579 patent
`
`under 35 U.S.C. § 271(c) by supplying, with knowledge of the ’579 patent, a material part of a
`
`claimed combination, where such material part is not a staple article of commerce and is incapable
`
`of substantial noninfringing use.
`
`85.
`
` Defendants contribute to their customers’ and/or other third parties’ infringement
`
`because, with knowledge of the ’579 patent, Defendants supply the technology that allows their
`
`customers to infringe the ’579 patent.
`
`86.
`
`Defendants have knowledge that their activities concerning the Accused Products
`
`infringe at least claim 19 of the ’579 patent.
`
`87.
`
`On information and belief, Defendants will continue to encourage, aid, or otherwise
`
`cause third parties to import, sell, offer for sale, and use the Accused Products (which are acts of
`
`direct infringement of the ’579 patent) and Defendants have and will continue to encourage those
`
`acts with the specific intent to infringe at least claim 19 of the ’579 patent.
`
`88.
`
`Further, Defendants provide information and technical support to their customers,
`
`including product manuals, brochures, videos, demonstrations, and website materials encouraging
`
`their customers to purchase the Accused Products and instructing their customers to use the
`
`Accused Products—which are acts of direct infringement of the ’579 patent.
`
`
`
`14
`
`
`
`89.
`
`Alternatively, Defendants know and/or will know that there is a high probability
`
`that the importation, sale, offer for sale, and use of the Accused Products constitutes direct
`
`infringement of the ’579 patent but took deliberate actions to avoid learning of these facts.
`
`90.
`
`On information and belief, Defendants have made no attempt to design around the
`
`claims of the ’579 patent.
`
`91.
`
`On information and belief, Defendants did not have a reasonable basis for believing
`
`that the claims of the ’579 patent were invalid.
`
`92.
`
`On information and belief, Defendants’ Accused Products are available to
`
`businesses and individuals throughout the United States and in the State of Texas, including in this
`
`District.
`
`93.
`
`Defendants have caused and will continue to cause CardWare irreparable injury and
`
`damage by infringing at least claim 19 of the ’579 patent. CardWare will suffer further irreparable
`
`injury, for which it has no adequate remedy at law, unless and until Defendants are enjoined from
`
`infringing the claims of the ’579 patent.
`
`94.
`
`On information and belief, Defendants’ infringement of the ’579 patent has been
`
`exceptional, warranting an award of attorneys’ fees under 35 U.S.C. § 285.
`
`95.
`
`The claim chart attached hereto as Exhibit H describes how claim 19 of the ’579
`
`patent is infringed by the Accused Products. This provides details regarding only one example of
`
`Defendants’ infringement, and only as to a single patent claim, and Plaintiff reserves its right to
`
`provide greater detail and scope via its Infringement Contentions at the time required under this
`
`Court’s scheduling order.
`
`COUNT IV
`PATENT INFRINGEMENT OF THE ’538 PATENT
`
`Plaintiff restates and realleges the preceding paragraphs of this Complaint.
`
`96.
`
`
`
`15
`
`
`
`97.
`
`Defendants have, under 35 U.S.C. §271(a), directly infringed, and continue to
`
`directly infringe, literally and/or under the doctrine of equivalents, one or more claims, including
`
`without limitation at least claim 1 of the ’538 patent, by making, using, testing, selling, offering
`
`for sale and/or importing into the United States Defendants’ Accused Products.
`
`98.
`
`99.
`
`To the extent required, Plaintiff has fulfilled all requirements of 35 U.S.C. § 287(a).
`
`Defendants also indirectly infringe the ’538 patent (from the date of this Complaint)
`
`under 35 U.S.C. §§ 271(b) and (c).
`
`100. Defendants knowingly and intentionally actively aid, abet, and induce others to
`
`directly infringe at least claim 1 of the ’538 patent (such as its customers in this District and
`
`throughout the United States).
`
`101.
`
`102.
`
` Defendants continue to induce infringement of the ’538 patent.
`
` Defendants contribute to the infringement of at least claim 1 of the ’538 patent
`
`under 35 U.S.C. § 271(c) by supplying, with knowledge of the ’538 patent, a material part of a
`
`claimed combination, where such material part is not a staple article of commerce and is incapable
`
`of substantial noninfringing use.
`
`103.
`
` Defendants contribute to their customers’ and/or other third parties’ infringement
`
`because, with knowledge of the ’538 patent, Defendants supply the technology that allows their
`
`customers to infringe the ’538 patent.
`
`104. Defendants have knowledge that their activities concerning the Accused Products
`
`infringe at least claim 1 of the ’538 patent.
`
`105. On information and belief, Defendants will continue to encourage, aid, or otherwise
`
`cause third parties to import, sell, offer for sale, and use the Accused Products (which are acts of
`
`
`
`16
`
`
`
`direct infringement of the ’538 patent) and Defendants have and will continue to encourage those
`
`acts with the specific intent to infringe at least claim 1 of the ’538 patent.
`
`106. Further, Defendants provide information and technical support to their customers,
`
`including product manuals, brochures, videos, demonstrations, and website materials encouraging
`
`their customers to purchase the Accused Products and instructing their customers to use the
`
`Accused Products—which are acts of direct infringement of the ’538 patent.
`
`107. Alternatively, Defendants know and/or will know that there is a high probability
`
`that the importation, sale, offer for sale, and use of the Accused Products constitutes direct
`
`infringement of the ’538 patent but took deliberate actions to avoid learning of these facts.
`
`108. On information and belief, Defendants have made no attempt to design around the
`
`claims of the ’538 patent.
`
`109. On information and belief, Defendants did not have a reasonable basis for believing
`
`that the claims of the ’538 patent were invalid.
`
`110. On information and belief, Defendants’ Accused Products are available to
`
`businesses and individuals throughout the United States and in the State of Texas, including in this
`
`District.
`
`111. Defendants have caused and will continue to cause CardWare irreparable injury and
`
`damage by infringing at least claim 1 of the ’538 patent. CardWare will suffer further irreparable
`
`injury, for which it has no adequate remedy at law, unless and until Defendants are enjoined from
`
`infringing the claims of the ’538 patent.
`
`112. On information and belief, Defendants’ infringement of the ’538 patent has been
`
`exceptional, warranting an award of attorneys’ fees under 35 U.S.C. § 285.
`
`
`
`17
`
`
`
`113. The claim chart attached hereto as Exhibit I describes how claim 1 of the ’538
`
`patent is infringed by the Accused Products. This provides details regarding only one example of
`
`Defendants’ infringement, and only as to a single patent claim, and Plaintiff reserves its right to
`
`provide greater detail and scope via its Infringement Contentions at the time required under this
`
`Court’s scheduling order.
`
`COUNT V
`PATENT INFRINGEMENT OF THE ’286 PATENT
`
`114. Plaintiff restates and realleges the preceding paragraphs of this Complaint.
`
`115. Defendants have, under 35 U.S.C. §271(a), directly infringed, and continue to
`
`directly infringe, literally and/or under the doctrine of equivalents, one or more claims, including
`
`without limitation at least claim 20 of the ’286 patent, by making, using, testing, selling, offering
`
`for sale and/or importing into the United States Defendants’ Accused Products.
`
`116. To the extent required, Plaintiff has fulfilled all requirements of 35 U.S.C. § 287(a).
`
`117. Defendants also indirectly infringe the ’286 patent (from the date of this Complaint)
`
`under 35 U.S.C. §§ 271(b) and (c).
`
`118. Defendants knowingly and intentionally actively aid, abet, and induce others to
`
`directly infringe at least claim 20 of the ’286 patent (such as its customers in this District and
`
`throughout the United States).
`
`119.
`
`120.
`
` Defendants continue to induce infringement of the ’286 patent.
`
` Defendants contribute to the infringement of at least claim 20 of the ’286 patent
`
`under 35 U.S.C. § 271(c) by supplying, with knowledge of the ’286 patent, a material part of
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