`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT TEXAS
`MARSHALL DIVISION
`
`Plaintiff,
`
`v.
`
`AGIS SOFTWARE DEVELOPMENT LLC,
`
`
`
`
`
`SAMSUNG ELECTRONICS CO., LTD. and
`SAMSUNG ELECTRONICS AMERICA, INC.,
`
`
`
`
`
`
`
` Civil Action No. 2:22-cv-00263-JRG-RSP
`
` JURY TRIAL DEMANDED
`
`Defendants.
`
`
`
`DEFENDANTS’ MOTION TO DISMISS PLAINTIFF’S COMPLAINT FOR FAILURE
`TO STATE A CLAIM UNDER RULE 12(B)(6)
`
`
`
`
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`
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`Case 2:22-cv-00263-JRG-RSP Document 22 Filed 11/21/22 Page 2 of 13 PageID #: 311
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`TABLE OF CONTENTS
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`Page
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`I.
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`II.
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`INTRODUCTION .............................................................................................................. 1
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`STATEMENT OF FACTS ................................................................................................. 2
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`III.
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`LEGAL STANDARDS ...................................................................................................... 3
`
`A.
`
`B.
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`Motion to Dismiss ................................................................................................... 3
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`Section 1498(a) ....................................................................................................... 4
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`IV.
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`V.
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`ARGUMENT ...................................................................................................................... 5
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`CONCLUSION ................................................................................................................... 8
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`
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`Case 2:22-cv-00263-JRG-RSP Document 22 Filed 11/21/22 Page 3 of 13 PageID #: 312
`
`TABLE OF AUTHORITIES
`
`
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`Page(s)
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`CASES
`
`Advanced Software Design Corp. v. Fed. Res. Bank,
`583 F.3d 1371 (Fed. Cir. 2009)..................................................................................................8
`
`Ashcroft v. Iqbal,
`556 U.S. 662 (2009) ...................................................................................................................3
`
`Astornet Techs. Inc. v. BAE Sys., Inc.,
`802 F.3d 1271 (Fed. Cir. 2015)..............................................................................................4, 5
`
`Bell Atl. Corp. v. Twombly,
`550 U.S. 544 (2007) ...................................................................................................................3
`
`Decca Ltd. v. United States,
`640 F.2d 1156 (Ct. Cl. 1980) .....................................................................................................4
`
`FastShip, LLC v. United States,
`131 Fed. Cl. 592, 607 (2017), aff’d as modified, 892 F.3d 1298 (Fed. Cir. 2018)....................4
`
`Garteiser Honea, P.C. v. Moskowitz,
`No. 2:18-CV-00372-JRG, 2018 WL 6617780 (E.D. Tex. Dec. 18, 2018) ........................4, 6, 7
`
`IRIS Corp. v. Japan Airlines Corp.,
`769 F.3d 1359 (Fed. Cir. 2014)..............................................................................................4, 5
`
`Kitty Hawk Aircargo, Inc. v. Chao
`418 F.3d 453, 457 (5th Cir. 2005) .............................................................................................6
`
`Madey v. Duke Univ.,
`307 F.3d 1351 (Fed. Cir. 2002)..................................................................................................4
`
`Richmond Screw Anchor Co. v. United States,
`275 U.S. 331 (1928) ...................................................................................................................8
`
`Swindol v. Aurora Flight Scis. Corp.,
`805 F.3d 516 (5th Cir. 2015) .................................................................................................4, 6
`
`Tellabs, Inc. v. Makor Issues & Rights, Ltd.,
`551 U.S. 308 (2007) ...................................................................................................................3
`
`Zoltek Corp. v. United States,
`672 F.3d 1309 (Fed. Cir. 2012)..................................................................................................4
`
`
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`Case 2:22-cv-00263-JRG-RSP Document 22 Filed 11/21/22 Page 4 of 13 PageID #: 313
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`STATUTES
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`28 U.S.C. § 1498(a) .....................................................................................................................4, 8
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`OTHER AUTHORITIES
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`Fed. R. Evid. 201(b)(2) ....................................................................................................................4
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`
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`
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`ii
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`Case 2:22-cv-00263-JRG-RSP Document 22 Filed 11/21/22 Page 5 of 13 PageID #: 314
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`I.
`
`INTRODUCTION
`
`Plaintiff AGIS Software Development LLC’s (“AGIS’s”) Complaint against Defendants
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`Samsung Electronics Co., Ltd. and Samsung Electronics America, Inc. (collectively, “Samsung”)
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`sets forth allegations of infringement of four AGIS patents by a collection of apps known as the
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`Team Awareness Kit, or “TAK,” suite of apps, the Android version of which is ATAK. See Dkt.
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`1, Case No. 2:22-cv-00263-JRG-RSP, ¶ 16 (hereinafter “Complaint”). As made clear in the below
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`excerpt from AGIS’s Complaint, TAK was developed and is maintained by the United States
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`Government, not Samsung:
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`
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`Id. at ¶ 17, p. 11. The Complaint also demonstrates U.S. Government ownership and control of
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`the accused TAK apps. See, e.g., id. (screenshot of TAK video bearing a U.S. Government
`
`confidentiality designation); id. at ¶ 24, p. 19 (describing TAK as a “Government-off-the-shelf
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`(GOTS) software application,” meaning it is owned and controlled by the U.S. Government). And
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`the U.S. Government’s TAK website confirms that the accused TAK apps are owned by the U.S.
`
`Government and their use requires proper authorization:
`
`The TAK capability suite is a United States Government (USG)
`owned product. Use of these USG owned products outside of test
`and evaluation require the proper authority to operate (ATO)
`paperwork granted by your organization’s headquarters (HQ).
`Before installing and/or using any of the products, ensure you are
`within the guidelines of your organization.
`
`Ex. A, TAK.gov, https://tak.gov/products (last accessed Nov. 18, 2022) (emphasis added). AGIS’s
`
`
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`Case 2:22-cv-00263-JRG-RSP Document 22 Filed 11/21/22 Page 6 of 13 PageID #: 315
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`Complaint therefore fails to set forth a plausible claim of infringement against Samsung because,
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`pursuant to 28 U.S.C. § 1498(a), AGIS’s exclusive remedy for the purported acts of infringement
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`is an action against the U.S. Government in the United States Court of Federal Claims.
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`
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`AGIS’s Complaint contains a broad, unsupported allegation that the manufacture, use, sale,
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`offer for sale and/or importation of 264 identified Samsung Galaxy devices infringe AGIS’s
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`patents. Complaint, ¶ 16. But the only factual allegations within the 169-page Complaint relate
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`to the operation of the U.S. Government’s TAK apps. No other plausible allegation of
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`infringement for any of AGIS’s asserted patents is made, and not a single plausible allegation of
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`infringement that can be maintained in this Court is contained in the Complaint. The Complaint
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`must therefore be dismissed in its entirety (Counts I-IV).
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`II.
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`STATEMENT OF FACTS
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`In its Complaint, AGIS alleges Samsung infringes claim 10 of the ’970 Patent, claim 54 of
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`the ’838 Patent, claim 34 of the ’829 Patent, and claim 23 of the ’123 Patent. Complaint, ¶¶ 21,
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`31, 46, 62. Each of the four asserted patents is directed, generally, to coordinating or managing
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`two or more people through the use of a communications network. See ’970 Patent, ECF 1-1,
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`1:15-23; ’838 Patent, ECF 1-2, 1:30-43; ’829 Patent, ECF 1-3, 1:33-46; ’123 Patent, ECF 1-4,
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`1:33-46.
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`AGIS’s infringement allegations are based on the alleged “manufacture, use, [sale], offer
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`for sale, and/or import[ation] into the United States [of] the . . . TAK, ATAK, and CivTAK,
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`applications, products, and solutions, which also include related servers and services for supporting
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`. . . TAK, ATAK and CivTAK (‘Accused Products’).” Complaint, ¶ 16.1 AGIS further alleges
`
`
`1 The Complaint also includes allegations of infringement by a purported “Samsung Tactical”
`application and/or service. See, e.g., Complaint, ¶ 16. Samsung is unaware of any such application
`or service, and the Complaint does not include any supporting factual allegations relating to
`footnote continued on next page
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`2
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`Case 2:22-cv-00263-JRG-RSP Document 22 Filed 11/21/22 Page 7 of 13 PageID #: 316
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`infringement by a long list of Samsung Galaxy devices “all of which are [purportedly] configured
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`and/or adapted with . . . TAK, ATAK, and CivTAK . . . .” and that “[t]he Accused Products
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`comprise any and all versions of the . . . TAK, ATAK, and CivTAK solutions, applications, and
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`services including but not limited to, the ATAK-CIV, ATAK-MIL, and ATAK-MIL versions.”
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`Id. AGIS’s Complaint also relies extensively on cut-and-pasted pages from an ATAK manual and
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`certain CivTAK websites describing ATAK capabilities as purported support for the alleged
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`infringement. See, e.g., id. at pp. 19-29, 37-48, 51-64, 68-70, 73-75, 84-95, 98-110, 114-116, 119-
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`121, 130-141, 144-155, 159-161, 164-166. The ATAK documentation provides the only factual
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`allegations in the Complaint in support of AGIS’s infringement claims.
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`III. LEGAL STANDARDS
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`A. Motion to Dismiss
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`To survive a motion to dismiss, a complaint must contain sufficient facts, which if accepted
`
`as true, “state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678
`
`(2009). “A claim has facial plausibility when the plaintiff pleads factual content that allows the
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`court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id.
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`(citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 556 (2007)). Conclusory allegations or a
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`“formulaic recitation of the elements of a cause of action will not do.” Id.
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`A court “must consider the complaint in its entirety, as well as other sources courts
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`ordinarily examine when ruling on Rule 12(b)(6) motions to dismiss, in particular, documents
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`incorporated into the complaint by reference, and matters of which a court may take judicial
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`notice.” Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308, 322 (2007). A court may take
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`judicial notice of facts that “can be accurately and readily determined from sources whose accuracy
`
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`infringement by the purported “Samsung Tactical” application and/or service.
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`3
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`Case 2:22-cv-00263-JRG-RSP Document 22 Filed 11/21/22 Page 8 of 13 PageID #: 317
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`cannot reasonably be questioned,” Fed. R. Evid. 201(b)(2), including government websites.
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`Swindol v. Aurora Flight Scis. Corp., 805 F.3d 516, 519 (5th Cir. 2015) (taking judicial notice of
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`records on the Mississippi Secretary of State’s and the Virginia State Corporation Commission’s
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`websites); see also Garteiser Honea, P.C. v. Moskowitz, No. 2:18-CV-00372-JRG, 2018 WL
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`6617780, at *2 n.1 (E.D. Tex. Dec. 18, 2018) (explaining that “[i]nformation obtained from online
`
`sources is becoming a frequently used basis for judicial notice” and that “government and
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`corporate websites . . . are among the most commonly relied upon sources”).
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`B.
`
`Section 1498(a)
`
`28 U.S.C. § 1498(a) provides, in relevant part:
`
`Whenever an invention described in and covered by a patent of the
`United States is used or manufactured by or for the United States
`without license of the owner thereof or lawful right to use or
`manufacture the same, the owner’s remedy shall be by action against
`the United States in the United States Court of Federal Claims for
`the recovery of his reasonable and entire compensation for such use
`and manufacture.
`
`28 U.S.C. § 1498(a). Accordingly, § 1498(a) waives the U.S. Government’s immunity when there
`
`is an allegation of unauthorized use of a patented invention by or for the United States. See Zoltek
`
`Corp. v. United States, 672 F.3d 1309, 1319 (Fed. Cir. 2012); see also FastShip, LLC v. United
`
`States, 131 Fed. Cl. 592, 607 (2017), aff'd as modified, 892 F.3d 1298 (Fed. Cir. 2018) (citing
`
`Decca Ltd. v. United States, 640 F.2d 1156, 1167 n.15 (Ct. Cl. 1980)) (“The government directly
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`infringes a patent when it uses or manufactures the patented invention without a license.”).
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`Application of Section 1498(a) is an affirmative defense. Madey v. Duke Univ., 307 F.3d
`
`1351, 1359 (Fed. Cir. 2002). Nevertheless, courts may grant Rule 12(b)(6) motions to dismiss
`
`claims under § 1498(a) in appropriate circumstances. See, e.g., IRIS Corp. v. Japan Airlines Corp.,
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`769 F.3d 1359, 1363 (Fed. Cir. 2014) (affirming the district court’s decision to grant the
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`4
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`Case 2:22-cv-00263-JRG-RSP Document 22 Filed 11/21/22 Page 9 of 13 PageID #: 318
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`defendant’s Rule 12(b)(6) motion to dismiss under § 1498(a)); Astornet Techs. Inc. v. BAE Sys.,
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`Inc., 802 F.3d 1271, 1283 (Fed. Cir. 2015).
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`IV. ARGUMENT
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`The Court should dismiss Counts I–IV of the Complaint because AGIS fails to allege facts
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`sufficient to support a claim against Samsung. AGIS’s Complaint alleges in Counts I–IV that
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`Samsung infringes AGIS’s patents based solely on the operation of the U.S. Government’s TAK
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`apps. E.g., Complaint, ¶¶ 23, 33, 48, 63. Pursuant to 28 U.S.C. § 1498(a), AGIS’s exclusive
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`remedy for the purported acts of infringement set forth in the Complaint is an action against the
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`U.S. Government in the United States Court of Federal Claims. The accused apps are not
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`Samsung-developed apps. Rather, as stated in AGIS’s Complaint, TAK was developed and is
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`maintained by the U.S. Government:
`
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`Complaint, ¶ 17, p. 11 (citing https://www.civtak.org/atak-about/); see also id. at ¶ 24, p. 28
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`(“There are numerous products in the TAK family, all developed at government expense.”).
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`The Complaint also includes a screenshot of a graphic on the cited www.civtak.org
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`webpage, shown below, that includes a standard U.S. military distribution statement: “Distribution
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`Statement A: Approved for public release; distribution is unlimited.”
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`5
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`Case 2:22-cv-00263-JRG-RSP Document 22 Filed 11/21/22 Page 10 of 13 PageID #: 319
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`Id. at ¶ 17, p. 11 (screenshot annotated and excerpted).
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`
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`As explained in a Department of Defense Instruction memorandum, this statement
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`indicates that U.S. Government approval was required and obtained to distribute the information
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`publicly: “If public release clearance is obtained, the controlling DoD office shall assign
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`Distribution Statement A, cancel any other distribution statement, and notify all known holders of
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`the change.” Ex. B, DoD Instruction No. 5230.24 (August 23, 2012, incorporating Change 3,
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`October 15, 2018) at 12 (available at https://www.esd.whs.mil/Portals/54/Documents/DD
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`/issuances/dodi/523024p.pdf); see also id. at 14-15 (“This statement may be used only on
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`unclassified technical documents that have been cleared for public release by competent authority
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`. . . .”).2
`
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`2 This Court can, and Samsung respectfully submits should, take judicial notice of the relevant
`information set forth in government websites and documents cited herein. For example, in Kitty
`Hawk Aircargo, Inc. v. Chao, the Fifth Circuit took judicial notice of the National Mediation
`Board’s approval of a transfer of a certification where the approval was available on the agency’s
`government website. 418 F.3d 453, 457 (5th Cir. 2005); see also Swindol, 805 F.3d at 519.
`Moreover, this Court has previously taken judicial notice of information on websites in ruling on
`footnote continued on next page
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`6
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`Case 2:22-cv-00263-JRG-RSP Document 22 Filed 11/21/22 Page 11 of 13 PageID #: 320
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`In addition, the Complaint explains that ATAK is a “Government-off-the-Shelf (GOTS)
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`software application”:
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`Id. at ¶ 24, p. 19. A “Government off the shelf (GOTS)” product is defined by the U.S.
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`Government as:
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`
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`A software and/or hardware product that is developed by the technical staff of a
`Government organization for use by the U.S. Government. GOTS software and
`hardware may be developed by an external entity, with specification from the
`Government organization to meet a specific Government purpose, and can
`normally be shared among Federal agencies without additional cost. GOTS
`products and systems are not commercially available to the general public. Sales
`and distribution of GOTS products and systems are controlled by the
`Government.
`Source: NSA/CSS Policy 3-14
`
`Ex. C, Committee on National Security Systems (CNSS) Glossary, CNSSI No. 4009 (March 2,
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`2022) at 96 (available at https://www.niap-ccevs.org/Ref/CNSSI_4009.pdf) (emphasis added).
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`The U.S. Government’s ownership and control of the TAK apps is also confirmed by the
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`Government’s TAK website, which states at the bottom of every page:
`
`The TAK capability suite is a United States Government (USG)
`owned product. Use of these USG owned products outside of test
`and evaluation require the proper authority to operate (ATO)
`paperwork granted by your organization’s headquarters (HQ).
`Before installing and/or using any of the products, ensure you are
`within the guidelines of your organization.
`
`
`Rule 12 motions to dismiss. In Garteiser Honea, this Court took judicial notice of information on
`the defendant’s own website and on a third-party real estate website in determining the address
`and property type of the defendant’s principal place of business. 2018 WL 6617780, at *1; see
`also id. at *1 n.1 (citing other examples of courts taking judicial notice of information on websites).
`Samsung submits that the government websites cited here are even more reliable than the private
`websites relied upon in Garteiser Honea.
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`
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`7
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`Case 2:22-cv-00263-JRG-RSP Document 22 Filed 11/21/22 Page 12 of 13 PageID #: 321
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`E.g., Ex. A, TAK.gov, https://tak.gov/products (last accessed Nov. 18, 2022), p. 2 (emphasis
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`added); see also id. (the “TAK capability suite” is maintained by the TAK Product Center, located
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`at Fort Belvoir, in Virginia).
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`The accused TAK apps are indisputably apps that are “used or manufactured by or for the
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`United States.” 28 U.S.C. § 1498(a). Therefore, the exclusive remedy for the alleged infringement
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`based on the TAK apps set forth in the Complaint is a suit against the United States in the Court
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`of Federal Claims, and the case should be dismissed. See Advanced Software Design Corp. v. Fed.
`
`Res. Bank, 583 F.3d 1371, 1375 (Fed. Cir. 2009) (Section 1498(a) “is more than a waiver of
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`immunity and effects an assumption of liability by the government.”) (quoting Richmond Screw
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`Anchor Co. v. United States, 275 U.S. 331, 344 (1928)).
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`V. CONCLUSION
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`AGIS has failed to plead factual allegations sufficient to support an action for patent
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`infringement against Samsung. Based on the allegations pled in the Complaint, pursuant to 28
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`U.S.C. § 1498(a), AGIS’s exclusive remedy for the purported acts of infringement is an action
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`against the U.S. Government in the United States Court of Federal Claims. Accordingly, Samsung
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`respectfully requests that the Court dismiss Counts I, II, III, and IV of AGIS’s Complaint with
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`prejudice.
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`Dated: November 21, 2022
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`Respectfully submitted,
`
`
`
`
`
`
`
`/s/Neil P. Sirota
`
` Neil P. Sirota
`
`neil.sirota@bakerbotts.com
` Margaret M. Welsh
` margaret.welsh@bakerbotts.com
` BAKER BOTTS L.L.P.
`
`30 Rockefeller Plaza
` New York, NY 10112-4498
`
`Phone: (212) 408-2500
`
`Fax: (212) 408-2501
`
`
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`8
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`Case 2:22-cv-00263-JRG-RSP Document 22 Filed 11/21/22 Page 13 of 13 PageID #: 322
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`
` Melissa R. Smith
`
`Texas State Bar No. 24001351
` melissa@gillamsmithlaw.com
` GILLAM & SMITH, LLP
`
`303 South Washington Avenue
` Marshall, Texas 75670
`
`Phone: (903) 934-8450
`
`Fax: (903) 934-9257
`
`
`Counsel for Defendants Samsung
`Electronics Co., Ltd. and Samsung
`Electronics America, Inc.
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`9
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