Case 6:22-cv-01000-AM Document 1 Filed 09/22/22 Page 1 of 8
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`WACO DIVISION
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`TRAXCELL TECHNOLOGIES, LLC.,
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`Plaintiff,
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`v.
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`SHOPIFY DATA PROCESSING (USA), INC.,
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`Defendant
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`Civil Action No. 6:22-cv-01000
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`JURY TRIAL DEMANDED
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`COMPLAINT FOR PATENT INFRINGEMENT
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`TO THE HONORABLE JUDGE OF SAID COURT:
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`Plaintiff Traxcell Technologies, LLC (“Traxcell” or “Plaintiff”), files this Complaint for
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`Patent Infringement and demand for jury trial seeking relief from patent infringement by Shopify
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`Data Processing (USA), Inc. (“Shopify” or “Defendant”), alleging infringement of the claims of
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`U.S. Patent No. 10,820,147 (the “patent-in-suit”), and would respectfully show the Court as
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`follows:
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`PARTIES
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`1. Plaintiff is a Texas Limited Liability Company, with its principal place of business
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`located at Traxcell Technologies LLC, 617 North 4th Street, Suite "S," Waco, Texas 76701.
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`2. On information and belief, Defendant is a Delaware corporation with a principal address
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`of 33 New Montgomery St #750, San Francisco, California, 94105 and has regular and
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`established places of business with over 25,000 business partners
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`in Texas.
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` See
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`https://trends.builtwith.com/websitelist/Shopify/United-States/Texas.
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`Defendant’s
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`parent
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`company, Shopify Inc., and Defendant’s holding company, Shopify Holdings (USA), Inc. are
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`registered to do business in Texas and Defendant may be served via its registered agent
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`Corporation Service Company, located at 251 Little Falls Drive, Wilmington, Delaware 19808,
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`or wherever else they may be found.
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`3. On information and belief, Defendant directly and/or indirectly develops, designs,
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`manufactures, distributes, markets, offers to sell and/or sells infringing products and services in
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`the United States, including in the Western District of Texas, and otherwise directs infringing
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`activities to this District in connection with its products and services.
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`JURISDICTION
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`4. This civil action arises under the Patent Laws of the United States, 35 U.S.C. § 1 et seq.,
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`including without limitation 35 U.S.C. §§ 271, 281, 283, 284, and 285 based on Defendant's
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`unauthorized commercial manufacture, use, importation, offer for sale, and sale of the Accused
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`Products in the United States. This is a patent infringement lawsuit over which this Court has
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`subject matter jurisdiction under, inter alia, 28 U.S.C. §§ 1331, 1332, and 1338(a).
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`5. This United States District Court for the Western District of Texas has general and
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`specific personal jurisdiction over Defendant because, directly or through intermediaries,
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`Defendant has committed acts within the District giving rise to this action and are present in and
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`transact and conduct business in and with residents of this District and the State of Texas.
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`6. Plaintiff’s causes of action arise, at least in part, from Defendant’s contacts with and
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`activities in this District and the State of Texas.
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`7. Defendant has committed acts of infringing the patent-in-suit within this District and the
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`State of Texas by making, using, selling, offering for sale, and/or importing in or into this District
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`and elsewhere in the State of Texas, products claimed by the patent-in-suit, including without
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`limitation products made by practicing the claimed methods of the patent-in-suit. Defendant,
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`directly and through intermediaries, makes, uses, sells, offers for sale, imports, ships, distributes,
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`advertises, promotes, and/or otherwise commercializes such infringing products into this District
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`and the State of Texas. Defendant regularly conducts and solicits business in, engages in other
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`persistent courses of conduct in, and/or derives substantial revenue from goods and services
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`provided to residents of this District and the State of Texas.
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`8.
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`This Court has personal jurisdiction over Defendant pursuant to TEX. CIV. PRAC.
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`& REM. CODE § 17.041 et seq. Personal jurisdiction exists over Defendant because Defendant
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`has minimum contacts with this forum as a result of business regularly conducted within the
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`State of Texas and within this district, and, on information and belief, specifically as a result of,
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`at least, committing the tort of patent infringement within Texas and this District. This Court has
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`personal jurisdiction over Defendant, in part, because Defendant does continuous and systematic
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`business in this District, including by providing infringing products and services to the residents
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`of the Western District of Texas that Defendant knew would be used within this District, and by
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`soliciting business from the residents of the Western District of Texas. For example, Defendant is
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`subject to personal jurisdiction in this Court because Defendant regularly does, solicits, and
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`transacts business in the Western District of Texas including with over 25,000 business partners
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`in Texas.
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` See https://trends.builtwith.com/websitelist/Shopify/United-States/Texas. Also,
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`Defendant has hired and is hiring within this District for positions that, on information and
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`belief, relate to infringement of the patent-in-suit. Accordingly, this Court’s jurisdiction over the
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`Defendant comports with the constitutional standards of fair play and substantial justice and
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`arises directly from the Defendant’s purposeful minimum contacts with the State of Texas.
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`9.
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`This Court also has personal jurisdiction over Defendant, because in addition to
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`Defendant’s own online website and advertising with this District, Defendant has also made its
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`products available within this judicial district and advertised to residents within the District to
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`hire employees to be located in this District.
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`10.
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`11.
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`The amount in controversy exceeds $75,000 exclusive of interests and costs.
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`Venue is proper in this Court under 28 U.S.C. § 1400(b) based on information set
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`forth herein, which is hereby repeated and incorporated by reference. Further, upon information
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`and belief, Defendant has committed or induced acts of infringement, and/or advertise, market,
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`sell, and/or offer to sell products, including infringing products, in this District.
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`THE PATENT-IN-SUIT
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`12.
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`On October 27, 2020, United States Patent No. 10,820,147 (“the ’147 patent”),
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`entitled “Mobile wireless device providing off-line and on-line geographic navigation
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`information” was duly and legally issued by the United States Patent and Trademark Office
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`(“USPTO”). On October 3, 2016, the ’147 patent was duly and lawfully conveyed to Traxcell
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`Technologies, LLC, including all rights, title, and interest in and to the invention of the ’147
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`patent and its underlying patent applications, including the right to sue and recover for patent
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`infringements, by written assignments recorded on February 12, 2020 in the United States Patent
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`and Trademark Office. The ’147 patent claims patent-eligible subject matter and is valid and
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`enforceable. Traxcell is the exclusive owner by assignment of all rights, title, and interest in the
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`’147 patent, including the right to bring this suit for damages, and including the right to sue and
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`recover all past, present, and future damages for infringement of the ’147 patent. Defendant is
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`not licensed to the ’147 patent, either expressly or implicitly, nor do they enjoy or benefit from
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`any rights in or to the ’147 patent whatsoever. A true and correct copy of the ’147 patent is
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`attached hereto as Exhibit A.
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`13.
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`The ’147 patent is referred to herein as the “patent-in-suit.”
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`14.
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`Plaintiff Traxcell is the owner of the entire right, title, and interest in and to the
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`patent-in-suit. The patent-in-suit is presumed valid under 35 U.S.C. § 282.
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`ACCUSED INSTRUMENTALITIES
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`15.
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`The term “Accused Instrumentalities” or “Accused Products” refers to, by way of
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`example and without limitation, Shopify’s technology platform for connecting consumers with
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`merchants (see, e.g., https://www.shopify.com/).
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`COUNT I
`PATENT INFRINGEMENT OF THE ’147 PATENT
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`Plaintiff restates and realleges the preceding paragraphs of this Complaint as if
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`16.
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`fully set forth herein.
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`17.
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`Defendant has, under 35 U.S.C. §271(a), directly infringed, and continues to
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`directly infringe, literally and/or under the doctrine of equivalents, one or more claims, including
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`without limitation at least claim 1 of the ’147 patent, by making, using, testing, selling, offering
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`for sale and/or importing into the United States Defendant’s Accused Products including but not
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`limited to U.S. wireless networks, wireless-network components, and related services that use
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`identified locations of wireless devices to provide direction.
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`18.
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`Defendant also indirectly infringes the ’147 patent by actively inducing the direct
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`infringement by third parties under 35 U.S.C. § 271(b). Defendant has knowingly and
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`intentionally actively aided, abetted and induced others to directly infringe at least one claim of
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`the ’147 patent (such as its customers in this District and throughout the United States) by
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`encouraging or instructing its customers how to use its products and services (e.g. U.S. wireless
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`networks, wireless-network components that provide on- line and off-line navigation). Defendant
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`continues to induce infringement of the ’147 patent. Defendant has contributorily infringed and
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`is a contributory infringer because, with knowledge of the ’147 patent, it supplies a material part
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`of an infringing method and/or system, where the material part is not a staple article of
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`commerce, and is incapable of substantial noninfringing use. Defendant contributes to its
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`customers’ infringement because, with knowledge of the ’147 patent, Defendant supplies the
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`technology that allows its customers to infringe the patent.
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`19.
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`Defendant has knowledge that its activities concerning the Accused Products
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`infringe one or more claims of the ’147 patent. On information and belief, Defendant will
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`continue to encourage, aid, or otherwise cause third parties to import, sell, offer for sale, and use
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`the Accused Products (which are acts of direct infringement of the ’147 patent) and Defendant
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`has and will continue to encourage those acts with the specific intent to infringe one or more
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`claims of the ’147 patent. Further, Defendant provides information and technical support to its
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`customers, including product manuals, brochures, videos, demonstrations, and website materials
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`encouraging its customers to download and/or purchase and instructing them to use Defendant’s
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`Accused Products (which are acts of direct infringement of the ’147 patent). Alternatively,
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`Defendant knows and/or will know that there is a high probability that the importation, sale, offer
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`for sale, and use of the Accused Products constitutes direct infringement of the ’147 patent but
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`took deliberate actions to avoid learning of these facts.
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`20.
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`On information and belief, Defendant has made no attempt to design around the
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`claims of the ’147 patent.
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`21.
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`On information and belief, Defendant did not have a reasonable basis for
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`believing that the claims of the ’147 patent were invalid.
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`22.
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`On information and belief, Defendant’s Accused Products are available to
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`businesses and individuals throughout the United States and in the State of Texas, including in
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`this District.
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`23.
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`Traxcell has been damaged as the result of Defendant’s infringement. Upon
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`information and belief, Defendant will continue to infringe one or more claims of the ’147 patent
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`unless and until they are enjoined by this Court.
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`24.
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`The claim chart attached hereto as Exhibit B describes how the elements of an
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`exemplary claim 1 from the ’147 patent are infringed by the Accused Products. This provides
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`details regarding only one example of Defendant’s infringement, and only as to a single patent
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`claim. Plaintiff reserves its right to amend and fully provide its infringement arguments and
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`evidence thereof until its Preliminary and Final Infringement Contentions are later produced
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`according to the court’s scheduling order in this case.
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`PRAYER FOR RELIEF
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`WHEREFORE, Plaintiff Traxcell respectfully requests the following relief:
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`A.
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`A judgment that Defendant has directly infringed either literally and/or under the
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`doctrine of equivalents and continue to directly infringe the patent-in-suit;
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`B.
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`A judgment that Defendant has induced infringement and continues to induce
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`infringement of the patent-in-suit;
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`C.
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`A judgment that Defendant has contributorily infringed and continues to
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`contributorily infringe the patent-in-suit;
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`D.
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`A judgment and order requiring Defendant to pay Plaintiff damages under 35
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`U.S.C. § 284 including past damages based on, inter alia, any necessary compliance with 35
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`U.S.C. §287, and supplemental damages for any continuing post-verdict infringement through
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`entry of the final judgment with an accounting as needed;
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`E.
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`A judgment that this is an exceptional case within the meaning of 35 U.S.C. § 285
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`and Plaintiff is therefore entitled to reasonable attorneys’ fees;
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`F.
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`A judgment and order requiring Defendant to pay Plaintiff pre-judgment and post-
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`judgment interest on the damages awarded;
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`G.
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`A judgment and order awarding a compulsory ongoing royalty;
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`H.
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`A judgment and order awarding Plaintiff costs associated with bringing this
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`action;
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`I.
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`A judgment granting a preliminary and permanent injunction that restrains and
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`enjoins Defendant, its officers, directors, divisions, employees, agents, servants, parents,
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`subsidiaries, successors, assigns, and all those in privity, concert or participation with them from
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`directly or indirectly infringing the patent-in-suit; and
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`J.
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`Such other and further relief as the Court deems just and equitable.
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`JURY TRIAL DEMANDED
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`Pursuant to FED. R. CIV. P. 38, Plaintiff Traxcell hereby demands a trial by jury on all
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`issues so triable.
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`Respectfully submitted,
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`Ramey LLP
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`By: /s/ William P. Ramey, III
`William P. Ramey, III
`Texas Bar No. 24027643
`5020 Montrose Blvd., Suite 800
`Houston, Texas 77006
`(713) 426-3923 (telephone)
`(832) 900-4941 (fax)
`wramey@rameyfirm.com
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`Attorneys for Traxcell Technologies, LLC
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