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`EXHIBIT 2
`EXHIBIT 2
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`

`

`
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELAWARE
`
`KONINKLIJKE PHILIPS N.V., and
`PHILIPS NORTH AMERICA LLC
`Plaintiffs,
`
`v.
`REALTEK SEMICONDUCTOR
`CORP.,
`
`Defendant.
`
`
`
`C.A. No.:
`
`JURY TRIAL DEMANDED
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`
`Plaintiffs Koninklijke Philips N.V. and Philips North America LLC
`(collectively, “Philips” or “Plaintiffs”) bring this action for patent infringement
`under 35 U.S.C. § 271 against Realtek Semiconductor Corp. (“Realtek” or
`“Defendant”), and allege as follows:
`THE PARTIES
`1.
`Plaintiff Koninklijke Philips N.V. (formerly known as Koninklijke
`Philips Electronics N.V.) (“Philips N.V.”) is a corporation duly organized and
`existing under the laws of The Netherlands, with its principal place of business at
`High Tech Campus 5, 5656 AE Eindhoven, The Netherlands.
`2.
`Plaintiff Philips North America LLC (formerly known as Philips
`Electronics North America Corporation) (“Philips North America”) is a limited
`liability company duly organized and existing under the laws of the State of
`Delaware with its principal place of business at 222 Jacobs Street, Cambridge, MA
`02141. Philips N.V. is the parent of Philips North America.
`
`
`
`
`1
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`3.
`Defendant Realtek Semiconductor Corp. is a corporation duly
`organized and existing under the laws of Taiwan with a principal place of business
`located at No. 2 Innovation Road II, Hsinchu Science Park, Hsinchu 300, Taiwan.
`4.
`Defendant, either itself and/or through the activities of its subsidiaries,
`affiliates, or intermediaries (including distributors, retailers, and others), makes,
`uses, sells, offers for sale, and/or imports throughout the United States, including
`within the District of Delaware (this “District”), products, such as digital video-
`capable integrated circuits and associated firmware that infringe the Asserted
`Patents, defined below. Defendant makes, uses, sells, offers to sell, and/or imports
`digital video-capable integrated circuits, that it or its customers incorporate into
`digital video-capable devices that are made, used, sold, offered for sale, and/or
`imported throughout the United States, including within this District. These digital
`video-capable devices may include, but are not limited to, televisions, monitors,
`displays, projectors, video adapters, and/or video hubs.
`THE ASSERTED PATENTS
`U.S. Patent No. 9,590,977
`5.
`United States Patent No. 9,590,977 (the “’977 Patent”) is entitled
`“Secure Authenticated Distance Measurement” and issued on March 7, 2017 to
`inventor Franciscus L. A. J. Kamperman. The ’977 Patent issued from United States
`Patent Application No. 15/229,207 filed on August 5, 2016. A copy of the ’977
`Patent is attached hereto as Exhibit A.
`U.S. Patent No. 10,298,564
`6.
`United States Patent No. 10,298,564 (the “’564 Patent”) is entitled
`“Secure Authenticated Distance Measurement” and issued on May 21, 2019 to
`inventor Franciscus L. A. J. Kamperman. The ’564 Patent issued from United States
`Patent Application No. 16/117,019 filed on August 30, 2018. A copy of the ’564
`Patent is attached hereto as Exhibit B.
`
`
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`2
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`7.
`By way of assignment, Philips N.V. owns all rights, title, and interest
`to the ’977 Patent and ’564 Patent (collectively, the “Asserted Patents”).
`8.
`The Asserted Patents are each valid and enforceable.
`JURISDICTION AND VENUE
`9.
`This is a civil action for patent infringement arising under the Patent
`Act, 35 U.S.C. § 1 et seq.
`10. This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§
`1331 and 1338(a).
`11. Venue in this District is proper pursuant to 28 U.S.C. §§ 1391(b), (c)
`and 1400(b) because Defendant is not a resident of the United States and may be
`sued in any judicial district, and has committed acts of infringement in this District.
`12. This Court has personal jurisdiction over Defendant. Defendant is not
`subject to jurisdiction in any state’s courts of general jurisdiction and the exercise of
`personal jurisdiction over it is consistent with the United States Constitution and
`laws. Defendant has and does conduct business within the State of Delaware
`including in this District. Defendant, directly or through subsidiaries, affiliates or
`intermediaries (including distributors, retailers, and others), ships, distributes,
`makes, uses, offers for sale, imports and/or advertises (including by providing an
`interactive web page) its products and/or services in the United States and this
`District, and/or contributes to and actively induces its customers to ship, distribute,
`make, use, offer for sale, sell, import, and/or advertise (including the provision of
`interactive web pages) infringing products and/or services in the United States and
`this District. Defendant, directly or through subsidiaries, affiliates or intermediaries
`(including distributors, retailers, and others), has purposefully and voluntarily placed
`one or more of its infringing products, or components thereof as described below,
`into the stream of commerce with the expectation that those products will be
`purchased, used, and or incorporated into digital video-capable devices made, used,
`
`
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`sold, offered for sale, purchased, and/or imported by customers and/or consumers in
`this District.
`
`BACKGROUND
`13. Philips incorporates the allegations of all of the foregoing paragraphs
`as if fully restated herein.
`14. Philips is a world-renowned company that engages in research and
`development in numerous fields. One of these fields pertains to digital video-capable
`devices for delivering and displaying content to users. Exemplary products in this
`field include televisions, monitors, displays, projectors, video adapters, and/or video
`hubs. The Asserted Patents derive from Philips’s efforts in this field and claim
`protection for, among other things, delivering and displaying content to users.
`15. Defendant made, used, sold, offered for sale, imported, tested,
`designed, and/or marketed in the United States digital video-capable integrated
`circuits and associated firmware for delivering and displaying content to users that
`infringe the Asserted Patents. Such digital video-capable integrated circuits and
`associated firmware are incorporated into digital video-capable devices made, used,
`sold, offered for sale or imported into the United States by companies, including but
`not limited to, Lenovo Group Ltd., LG Electronics Inc., and TCL Industries
`Holdings Co., and/or their affiliates, subsidiaries or intermediaries (the “Exemplary
`Customers”).
`16. Defendant has actual notice of the Asserted Patents. Defendant received
`actual notice of the Asserted Patents at least as early as September 16, 2020 by way
`of a letter to Defendant dated September 16, 2020. That letter included allegations
`of infringement of the Asserted Patents. Additionally, the filing of this Complaint
`also constitutes notice in accordance with 35 U.S.C. § 287.
`17. With actual notice of the Asserted Patents, Defendant has directly
`infringed, and continues to directly infringe the Asserted Patents under 35 U.S.C. §
`
`
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`4
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`271(a) and (g) by one or more of making, using, selling and/or offering to sell, in
`this District and elsewhere in the United States, and importing into this District and
`elsewhere in the United States, certain infringing digital video-capable integrated
`circuits that infringe the Asserted Patents (the “Accused Products”), as further
`described in detail in Counts I-II infra.
`18. The Accused Products include, but are not limited to, all digital video-
`capable integrated circuits and associated firmware designed to facilitate digital
`video-capable playback supporting the HDCP 2.0 protocol and above that
`Defendant, either itself and/or through the activities of its subsidiaries, affiliates, or
`intermediaries (including distributors, retailers, and others), makes, uses, sells, offers
`for sale, and/or imports throughout the United States, including, but not limited to,
`the following products and/or product lines, their associated firmware/software,
`and/or any development boards or printed circuit board assemblies containing the
`same: RTD2795Y, LGE0551-AS1, RTD2873SAJ, “Integrated High Resolution
`5K3K/4K2K/QHD LCD Controller with HDR, DP1.4, HDMI2.0, and HDCP2.2”,
`“Integrated High Resolution 4K2K 144Hz/QHD165Hz Gaming LCD Display
`Controller with Realtek Owl Sight Technology, DSC, HDR, DP1.4, HDMI2.0, ad
`HDCP2.3”, “High Resolution 4K2K 144Hz/QHD 165Hz Gaming LCD Controller
`with Realtek Owl Sight Technology, DSC, HDR, DP1.4, HDMI2.0, and HDCP2.3”,
`“Ultra-low Power High Resolution 5K3K/4K2K LCD Controllers with HDR,
`DP1.4, HDMI2.0, and HDCP2.2.”1 This list of Defendant’s currently known digital
`video-capable integrated circuits and associated firmware is exemplary and, on
`information and belief, many other of Defendant’s digital video-capable integrated
`circuits and associated firmware infringe the Asserted Patents.
`
`
`1 Realtek Semiconductor Corp. 2019 Annual Report at 62, 73, retrieved from
`(https://www.realtek.com/images/ar/Annual_Report_2019__20200519.pdf)
`
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`19. Defendant has also indirectly infringed, and continues to indirectly
`infringe the Asserted Patents under 35 U.S.C. § 271(b) and (c). Defendant knew and
`intended to induce and contribute to the infringement of the Asserted Patents. The
`Accused Products have no substantial non-infringing use, are a material part of the
`invention of each Asserted Patent, especially made or especially adapted for use in
`an infringement of such patents, and not a staple article or commodity of commerce
`suitable for substantial non-infringing use.
`20. After receiving actual notice of the Asserted Patents, Defendant
`proceeded to actively induce, and materially contribute to, its customers’
`infringement of the Asserted Patents by making, using, selling, offering for sale,
`marketing, advertising, and/or importing digital video-capable integrated circuits
`with associated firmware that are incorporated into Defendants’ digital video-
`capable devices that infringe the Asserted Patents, and instructing customers to
`infringe the Asserted Patents.
`21. For example, Defendants specifically intended and advertised that their
`digital video-capable integrated circuits and associated firmware for use within
`digital video-capable devices such as smart televisions.2 Such digital video-capable
`integrated circuits and associated firmware are advertised as providing supporting
`“HDMI 2.0/ HDCP-2.2” interfaces. Further, on information and belief, Realtek
`presents and demonstrates infringing uses such infringing digital video-capable
`integrated circuits and associated firmware to customers at trade shows such as
`Consumer Electronics Solutions (“CES”) in Las Vegas, Nevada. Thus, Defendants
`induce their customers to infringe the Asserted Patents by advertising and/or
`
`
`2 https://www.realtek.com/en/press-room/news-releases/item/realtek-to-
`demonstrate-full-range-of-connectivity-multimedia-and-consumer-electronics-
`solutions-at-2016-ces.
`
`
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`instructing their customers regarding infringing uses of the Accused Products. On
`information and belief, Defendants did so with the specific intent to bring about
`infringement in the United States knowing that, among others, at least the Exemplary
`Customers would incorporate Defendants’ digital-video capable integrated circuits
`and associated firmware in digital-video capable devices made, used, sold, offered
`for sale or imported into the United States.
`22. As another example, Defendants contribute to the same infringement
`by selling digital video-capable integrated circuits and associated firmware to
`customers who incorporate said digital video-capable integrated circuits and
`associated firmware into their infringing digital video-capable devices. On
`information and belief, Defendants had knowledge that digital video-capable
`integrated circuits and associated firmware were especially made or especially
`adapted for use in an infringement of the Asserted Patents by practicing the HDCP
`2.0 protocol or above, and were not a staple article or commodity of commerce
`suitable for substantial non-infringing use.
`23. Thus, Defendant has indirectly infringed, and continues to indirectly
`infringe, the Asserted Patents under 35 U.S.C. § 271(b) by actively inducing its
`customers to infringe the Asserted Patents by making, using, selling, offering for
`sale, marketing, advertising, and/or importing the Accused Products to its customers
`and by instructing customers to infringe the Asserted Patents, as described in detail
`in Counts I-II infra. Additionally, Defendant has indirectly infringed, and continue
`to indirectly infringe the Asserted Patents under 35 U.S.C. § 271(c) by materially
`contributing to their own customers’ infringement of the Asserted Patents by
`making, using, selling, offering for sale, advertising, marketing, and/or importing
`the Accused Products to its customers and instructing customers to infringe the
`Asserted Patents, as described in detail in Counts I-II infra.
`
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`24. Defendant’s acts of infringement have caused damage to Philips.
`Philips is entitled to recover from Defendant the damages incurred by Philips as a
`result of Defendant’s wrongful acts.
`COUNT I
`Defendant’s Infringement of the ’977 Patent
`25. Philips incorporates the allegations of all of the foregoing paragraphs
`as if fully restated herein.
`26. Defendant has directly infringed, and continues to directly infringe, the
`’977 Patent by making, using, selling, offering for sale, or importing throughout the
`United States products and/or methods covered by one or more claims of the ’977
`Patent including, but not limited to, digital video-capable integrated circuits and
`associated firmware for inclusion in digital video-capable devices. The products that
`infringe one or more claims of the ’977 Patent include, but are not limited to, at least
`the Accused Products. Further discovery may reveal additional infringing products
`and/or models.
`27. For example and without limitation, the Accused Products infringe
`claim 1 of the ’977 Patent.
`28. Attached hereto as Exhibit C, and incorporated into this Complaint, is
`a claim chart showing where in the Realtek (LGE0551-AS1) integrated circuit and
`associated firmware incorporated in the LG 43” Class UN7300 Series LED 4K
`UHD Smart webOS TV (Model 43UN7300PUF) each limitation of claims 1 and 11
`are met. This claim chart is exemplary and, on information and belief, many other
`products provided by Defendant and/or Defendant’s customers infringe the ’977
`Patent.
`29. Defendant has, and continues to, indirectly infringe the ’977 Patent by
`actively inducing and contributing to the infringement of the ’977 Patent by others,
`such as customers, resellers, and retailers. These others include, but are not limited
`
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`to the Exemplary Customers, who, for example, sell, offer for sale, and/or import
`throughout the United States, including within this District, digital video-capable
`devices incorporating the Accused Products.3
`30. Defendant specifically intended others, such as customers, resellers,
`and retailers, to infringe the ’977 Patent and knew that these others perform acts that
`constituted direct infringement. For example, Exhibit C shows that an exemplary
`product, the Realtek (LGE0551-AS1) integrated circuit and associated firmware
`incorporated
`in
`the LG
`43” Class UN7300
`Series LED
`4K
`UHD Smart webOS TV (Model 43UN7300PUF)LG 43” Class UN7300 Series LED
`4K UHD Smart webOS TV (Model 43UN7300PUF), which is sold by Best Buy Co.,
`Inc., infringes the ’977 Patent. Defendant designed the Accused Products such that
`they would each infringe the ’977 Patent as described in Exhibit C if made, used,
`sold, offered for sale, or imported throughout the United States. Defendant provided,
`directly or indirectly, Accused Products to others, such as, but not limited to,
`customers, knowing and intending that those others would use, sell, offer for sale,
`and/or import the Accused Products throughout the United States, thereby directly
`infringing one or more claims of the ’977 Patent.
`31.
`In addition, upon information and belief, Defendant provides
`instructions, user guides, and/or other documentation to the infringing others
`regarding the use and operation of the Accused Products. When others follow such
`instructions, user guides, and/or other documentation, they directly infringe one or
`more claims of the ’977 Patent. By providing such instructions, user guides, and/or
`other documentation, Defendant knows and intends that others will follow those
`instructions, user guides, and other documentation, and thereby directly infringe one
`
`
`3 https://www.bestbuy.com/site/lg-43-class-un7300-series-led-4k-uhd-smart-
`webos-tv/6401788.p?skuId=6401788.
`
`
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`or more claims of the ’977 Patent. Thus, Defendant knows that their actions actively
`induce infringement.
`32. The Accused Products have no substantial non-infringing uses and are
`a material part of the invention. As described in Exhibit C, any manufacture, use,
`sale offer for sale or importation throughout the United States of an Accused Product
`, or incorporation of any of the Accused Products in digital video-capable devices
`infringers the ’977 Patent. Thus, the Accused Products have no substantial non-
`infringing uses.
`33. Philips has been and continues to be damaged and irreparably harmed
`by Defendant’s infringement of the ’977 Patent. This irreparable harm will continue
`unless this Court enjoins Defendant from further infringement of the ’977 Patent.
`34. Philips is entitled to recover damages under 35 U.S.C. § 284 to
`adequately compensate for Defendant’s infringement of the ’977 Patent.
`COUNT II
`Defendant’s Infringement of the ’564 Patent
`35. Philips incorporates the allegations of all of the foregoing paragraphs
`as if fully restated herein.
`36. Defendant has directly infringed, and continues to directly infringe, the
`’564 Patent by making, using, selling, offering for sale, or importing throughout the
`United States products and/or methods covered by one or more claims of the ’564
`Patent including, but not limited to, digital video-capable integrated circuits and
`associated firmware for inclusion in digital video-capable devices. The products that
`infringe one or more claims of the ’564 Patent include, but are not limited to, at least
`the Accused Products. Further discovery may reveal additional infringing products
`and/or models.
`37. For example and without limitation, the Accused Products infringe
`claim 1 of the ’564 Patent.
`
`
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`38. Attached hereto as Exhibit D, and incorporated into this Complaint, is
`a claim chart showing where in the Realtek (LGE0551-AS1) integrated circuit and
`associated firmware incorporated in the LG 43” Class UN7300 Series LED 4K
`UHD Smart webOS TV (Model 43UN7300PUF) the LG 43” Class UN7300 Series
`LED 4K UHD Smart webOS TV (Model 43UN7300PUF) each limitation of claim
`1 is met. This claim chart is exemplary and, on information and belief, many other
`products provided by Defendant infringe the ’564 Patent.
`39. Defendant has, and continues to, indirectly infringe the ’564 Patent by
`actively inducing and contributing to the infringement of the ’564 Patent by others,
`such as customers, resellers, and retailers. These others include, but are not limited
`to, Best Buy Co., Inc. and its affiliates, who, for example, sell, offer for sale, and/or
`import throughout the United States, including within this District, the Accused
`Products.
`40. Defendant specifically intended others, such as customers, resellers,
`and retailers, to infringe the ’564 Patent and knew that these others perform acts that
`constituted direct infringement. For example, Exhibit D shows that an exemplary
`product, the Realtek (LGE0551-AS1) integrated circuit and associated firmware
`incorporated
`in
`the LG
`43” Class UN7300
`Series LED
`4K
`UHD Smart webOS TV (Model 43UN7300PUF) the LG 43” Class UN7300 Series
`LED 4K UHD Smart webOS TV (Model 43UN7300PUF), which is sold by Best
`Buy Co., Inc., infringes the ’564 Patent. Defendant designed the Accused Products
`such that they would each infringe the ’564 Patent as described in Exhibit D if made,
`used, sold, offered for sale, or imported throughout the United States. Defendant
`provided, directly or indirectly, Accused Products to others, such as, but not limited
`to, customers, knowing and intending that those others would use, sell, offer for sale,
`and/or import the Accused Products throughout the United States, thereby directly
`infringing one or more claims of the ’564 Patent.
`
`
`
`
`11
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`41.
`In addition, upon information and belief, Defendant provides
`instructions, user guides, and/or other documentation to the infringing others
`regarding the use and operation of the Accused Products. When others follow such
`instructions, user guides, and/or other documentation, they directly infringe one or
`more claims of the ’564 Patent. By providing such instructions, user guides, and/or
`other documentation, Defendant knows and intend that others will follow those
`instructions, user guides, and other documentation, and thereby directly infringe one
`or more claims of the ’564 Patent. Thus, Defendant knows that their actions actively
`induce infringement.
`42. The Accused Products have no substantial non-infringing uses and are
`a material part of the invention. As described in Exhibit D, any manufacture, use,
`sale offer for sale or importation throughout the United States of an Accused
`Product, or incorporation of any of the Accused Products in digital video-capable
`devices infringes the ’564 Patent. Thus, the Accused Products have no substantial
`non-infringing uses.
`43. Philips has been and continues to be damaged and irreparably harmed
`by Defendant’s infringement of the ’564 Patent. This irreparable harm will continue
`unless this Court enjoins Defendant from further infringement of the ’564 Patent.
`Philips is entitled to recover damages under 35 U.S.C. § 284 to adequately
`compensate for Defendant’s infringement of the ’564 Patent.
`DAMAGES
`44. Defendant has refused to compensate Philips for its infringement of the
`Asserted Patents. Philips is entitled to monetary damages adequate to compensate
`Philips for Defendant’s infringement in an amount no less than a reasonable royalty
`for the use made of the patented inventions by Defendant. The precise amount of
`damages will be determined through discovery in this action and proven at trial.
`MARKING
`
`
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`c)
`
`d)
`
`45. Philips and its licensees of the Asserted Patents have complied with 35
`U.S.C. § 287, and relative to its licensees, Philips has taken reasonable steps to
`ensure compliance with marking.
`PRAYER FOR RELIEF
`WHEREFORE, Philips respectfully asks the Court for an order granting the
`following relief:
`a)
`A judgment that the Asserted Patents are valid and enforceable;
`b)
`A judgment that Defendant has infringed, directly and indirectly, either
`literally or under the Doctrine of Equivalents, one or more claims of the
`’977 Patent;
`A judgment that Defendant has infringed, directly and indirectly, either
`literally or under the Doctrine of Equivalents, one or more claims of the
`’564 Patent;
`An injunction against Defendant, its officers, agents, servants,
`employees, all parent and subsidiary entities, all assignees and
`successors in interest, and those persons or entities acting in concert or
`participation with Defendant, including distributors, retailers, and
`others, enjoining them from further infringement of the Asserted
`Patents;
`A judgment awarding Philips all appropriate damages under 35 U.S.C.
`§ 284 for Defendant’s past infringement, and any continuing or future
`infringement of the Asserted Patents, including pre and post judgment
`interest, costs, and disbursements pursuant to 35 U.S.C. § 284;
`An accounting for infringing sales not presented at trial and an award
`by the Court of additional damages for any such infringing sales;
`A finding that this case is exceptional within the meaning of 35 U.S.C.
`§ 285 and that Philips be awarded its reasonable attorneys’ fees against
`
`e)
`
`f)
`
`g)
`
`
`
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`h)
`
`i)
`
`Defendant incurred in prosecuting this action;
`An award of reasonable attorneys’ fees, costs, and expenses incurred
`by Philips in connection with prosecuting this action; and
`Any and all other relief as the Court finds just, equitable, and proper
`under the circumstances.
`
`
`DEMAND FOR JURY TRIAL
`Pursuant to Fed. R. Civ. P. 38, Philips hereby respectfully demands trial by
`jury on all claims and issues so triable.
`
`Dated: September 17, 2020
`
`
`OF COUNSEL:
`
`Michael T. Renaud
`Adam S. Rizk
`Andrew H. DeVoogd
`MINTZ LEVIN COHN FERRIS
`GLOVSKY & POPEO PC
`One Financial Center
`Boston, Massachusetts 02111
`Phone: (617) 542-6000
`Fax:
`(617) 542-2241
`MTRenaud@mintz.com
`ARizk@mintz.com
`DHDeVoogd@mintz.com
`
`
`Respectfully submitted,
`
`FARNAN LLP
`
`
`
`/s/ Brian E. Farnan
`Brian E. Farnan (Bar No. 4089)
`Michael J. Farnan (Bar No. 5165)
`919 N. Market St., 12th Floor
`Wilmington, DE 19801
`Phone:
`(302) 777-0300
`Fax:
`(302) 777-0301
`BFarnan@farnanlaw.com
`MFarnan@farnanlaw.com
`
`Attorneys for Plaintiffs
`Koninklijke Philips N.V. and
`Philips North America LLC
`
`
`
`
`
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`14
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