Case 2:13-cv-01016-JRG-RSP Document 1 Filed 11/26/13 Page 1 of 6 PageID #: 1
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
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`PI-NET INTERNATIONAL, INC.,
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`Plaintiff,
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`Civil Action No:
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`v.
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`STAPLES, INC.,
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`JURY TRIAL REQUESTED
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`Defendant.
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`PLAINTIFF PI-NET INTERNATIONAL, INC.’S COMPLAINT
`FOR PATENT INFRINGEMENT
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`Plaintiff Pi-Net International, Inc. (“Pi-Net” or “Plaintiff”) hereby files this Complaint for
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`Patent Infringement pursuant to the Patent Laws of the United States, Title 35 of the United
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`States Code, against Staples, Inc. (“Defendant”) for infringement of U.S. Patent No. 8,346,894
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`(the “’894 Patent”).
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`THE PARTIES
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`1.
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`Plaintiff Pi-Net is a California corporation with its principal place of business at
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`222 Stanford Avenue, Menlo Park, California 94025. Dr. Lakshmi Arunachalam is the inventor
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`of the ’894 Patent. The ’894 Patent is directed to interactive Web applications offered as on-line
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`services atop the Web and exchange of structured data across a service network atop the Web. It
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`is a pioneering invention, because the priority application was the first to disclose a Web
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`application on a service network for connecting a Web client to a provider’s (e.g. Web merchant)
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`services, as opposed to then state-of-the-art’s reliance on CGI scripting and hyperlinks. Dr.
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`Arunachalam has also been a provider of innovative software products, services and solutions
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`that enable distributed transaction processing and control over public and private networks.
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`2.
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`In the early 1990s the Internet (and the World Wide Web), as we know it today,
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`was in its infancy. Much of the technology that we take for granted today was just being
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`developed. For example, the web-browser (with the ability to access the pictures, sounds, text
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`and video) was in development. It wasn’t until 1993 that this technology was finally popularized
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`by the release of the Mosaic web-browser.1
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`3.
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`Also, the concept of conducting business on-line was in its infancy. Some of the
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`early efforts at on-line transactions used email to complete transactions, but those methods
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`required a person, or machine, to read and respond to the message. In other words, the
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`transactions were not real-time. However, in late 1995, Dr. Arunachalam filed a provisional
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`patent application (the ’894 Patent claims priority to that application) that introduced the ground-
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`breaking concept of utilizing interactive web applications for conducting real-time web-based
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`transactions at the application layer of the OSI model2. That ground breaking technology is
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`embodied in the ’894 Patent.
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`4.
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`The ’894 Patent discloses the fundamental technology underlying Web commerce
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`and real-time Web based transactions that are embodied in Defendant’s accused products and
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`services.
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`5.
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`Defendant is a corporation organized and existing under the laws of the State of
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`Delaware with its Principal Executive Offices at Five Hundred Staples Drive, Framingham, MA
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`1 Netscape Navigator was later developed by Netscape, which employed many of the original Mosaic authors;
`however, it intentionally shared no code with Mosaic. (See,
`http://en.wikipedia.org/wiki/Mosaic_%28web_browser%29).
`2 The Open Systems Interconnection (OSI) model (ISO/IEC 7498-1) is a conceptual model that characterizes and
`standardizes the internal functions of a communication system by partitioning it into abstraction layers. The model is
`a product of the Open Systems Interconnection project at the International Organization for Standardization (ISO).
`The model groups similar communication functions into one of seven logical layers. A layer serves the layer above
`it and is served by the layer below it. (See e.g., http://en.wikipedia.org/wiki/Osi_model).
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`Case 2:13-cv-01016-JRG-RSP Document 1 Filed 11/26/13 Page 3 of 6 PageID #: 3
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`01702. Defendant resides in this judicial district of this Court and regularly transacts business
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`throughout the State of Texas, including in this judicial district. In addition to Defendant
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`continuously and systematically conducting business in Texas, the instant cause of action arose
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`from, or is connected with, Defendant’s acts committed in Texas, including real-time Web
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`transactions from Web applications that fall within the scope of or constitute a material portion
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`of at least one claim of the ’894 Patent.
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`6.
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`Defendant engages in business in Texas but has not designated or maintained a
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`resident agent for service of process. Accordingly, pursuant to Federal Rule of Civil Procedure
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`4, section 17.044 of the Texas Civil Practice and Remedies Code, and Articles 2.11 of the Texas
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`Business Corporations Act, the Texas Secretary of State is designated as Defendant’s agent for
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`service of process in this action. The Texas Secretary of State Citations Unit may be served at
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`P.O. Box 12079, Austin, Texas 78711-2079 by certified mail, return receipt requested. Pursuant
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`to section 17.045(a) of the Civil Practice and Remedies Code, the Secretary of State shall
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`forward citation and a copy of this Complaint to Defendant’s home or home office, c/o The
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`Corporation Trust Company, Corporation Trust Center, 1209 Orange St., Wilmington, New
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`Castle County, Delaware 19801.
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`JURISDICTION AND VENUE
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`7.
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`This is an action for patent infringement arising under the Patent Laws of the
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`United States, Title 35 of the United States Code. This Court has subject matter jurisdiction over
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`this action pursuant to 28 U.S.C. §§ 1331 and 1338(a).
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`8.
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`This Court has personal jurisdiction over Defendant under the laws of the State of
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`Texas, including the Texas long-arm statute, Tex. Civ. Prac. & Rem. Code § 17.042.
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`9.
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`Venue is proper in this judicial district pursuant to 28 U.S.C. §§ 1391 and
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`1400(b).
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`10.
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`This Court has personal jurisdiction over Defendant. Pi-Net incorporates herein
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`all statements of jurisdiction in the preceding paragraphs. Defendant has conducted and does
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`conduct business within the State of Texas, and on information and belief provides products or
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`services that infringe at least one claim of the ’894 Patent to customers within the State of Texas.
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`THE PATENT-IN-SUIT
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`11.
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`On January 1, 2013, the United States Patent and Trademark Office duly and
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`legally issued the ’894 Patent, entitled “Real-Time Web Transactions From Web-Applications,”
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`to Dr. Arunachalam after full and fair examination. A true and correct copy of the ’894 Patent is
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`attached hereto as Exhibit A. Pi-Net is the assignee of all rights, title, and interest in and to the
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`’894 Patent and possesses all rights of recovery under the ’894 Patent, including the right to
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`recover damages for past infringement. The ’894 Patent is valid and enforceable.
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`12.
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`Defendant provides real-time Web transactions from Web applications accessible
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`at least through its website including, but not limited to the website https://www.staples.com/.
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`This infringing functionality is exemplified, in part, by Exhibit B attached hereto, which is a true
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`and correct copy of a screen shot of a page from Defendant’s website.
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`INFRINGMENT OF THE PATENT-IN-SUIT
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`Plaintiff incorporates and realleges paragraphs 1 – 12.
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`Defendant has directly infringed, and is continuing to infringe, at least one claim
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`13.
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`14.
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`of the ’894 Patent by conducting real-time Web transactions from Web applications. The claims
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`of the ’894 Patent are either literally infringed and/or infringed under the doctrine of equivalents.
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`Defendant’s infringement has injured Plaintiff. Accordingly, Pi-Net is entitled to recover
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`damages adequate to compensate it for such infringement, but in no event less than a reasonable
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`royalty, and an injunction to prohibit further infringement of the ’894 Patent, or future
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`compensation for use of the inventions.
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`15.
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`16.
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`Pi-Net is in compliance with the requirements of 35 U.S.C. § 287.
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`Defendant’s infringement (and the harm caused to Pi-Net) will continue unless
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`enjoined by this Court.
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`PRAYER FOR RELIEF
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`WHEREFORE, Plaintiff asks this Court to enter judgment against Defendant and against
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`its subsidiaries, affiliates, agents, servants, employees and all persons in active concert or
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`participation with them, granting the following relief:
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`That Defendant be adjudged to have infringed the ’894 Patent;
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`An award of damages adequate to compensate Pi-Net for the infringement that
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`1.
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`2.
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`has occurred;
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`3.
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`An award to Pi-Net of all remedies available under 35 U.S.C. § 285, including
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`reasonable attorney fees and costs of suit;
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`4.
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`A permanent injunction under 35 U.S.C. § 283 prohibiting Defendant, and those
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`in active concert or participation with Defendant from further infringement of the ’894 Patent, or,
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`in the alternative, in the event injunctive relief is not granted as requested by Plaintiff, an award
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`of a compulsory future royalty; and
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`5.
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`Such other and further relief as this Court or a jury may deem proper and just.
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`JURY DEMAND
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`Plaintiff demands a trial by jury on all issues so triable.
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`Dated: November 26, 2013
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`614\1056909.1
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`HOPKINS & CARLEY
`A Law Corporation
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`
`By: /s/ John V. Picone III
`John V. Picone III
`Jennifer S. Coleman
`Christopher A. Hohn
`Hopkins & Carley
`A Law Corporation
`The Letitia Building
`70 South First Street
`San Jose, CA 95113-2406
`Telephone:
`(408) 286-9800
`Facsimile:
`(408) 998-4790
`jpicone@hopkinscarley.com
`jcoleman@hopkinscarley.com
`chohn@hopkinscarley.com
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`ATTORNEYS FOR PLAINTIFF
`PI-NET INTERNATIONAL, INC.
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`Page 6
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