Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 1 of 48 PageID# 1
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF VIRGINIA
`' 2IH NOV -M p
`ALEXANDRIA DIVISION
`
`J 30
`
`FILED
`
`CIVIL ACTION^Q^M^\C?S
`
`ALEOT
`
`'!ftG;i'HA
`
`JURY TRIAL DEMANDED
`
`SAMSUNG ELECTRONICS CO., LTD., and
`SAMSUNG ELECTRONICS AMERICA,
`INC.,
`
`Plaintiffs,
`
`NVIDIA CORPORATION, VELOCITY
`MICRO, INC. D/B/A VELOCITY MICRO,
`AND VELOCITY HOLDINGS, LLC
`
`Defendants.
`
`COMPLAINT
`
`Plaintiffs Samsung Electronics Company, Ltd. ("SEC") and Samsung Electronics
`
`America, Inc. ("SEA") (collectively "Samsung"), by and through their undersigned attorneys,
`
`hereby file this Complaint against NVIDIA Corporation ("NVIDIA"), Velocity Micro, Inc. d/b/a
`
`Velocity Micro, and Velocity Holdings, LLC (collectively "Velocity"). All defendants will be
`
`referred to collectively as "Defendants." Samsung statesas follows:
`
`THE PARTIES
`
`1.
`
`Plaintiff SEC is a multi-national corporation organized under the laws of Korea
`
`with its principal place of business located at 416 Maetan-3dong, Yeongtong-gu, Suwon-City,
`
`Gyeonggi-do, Korea 443-742.
`
`2.
`
`Plaintiff SEA is a corporation organized and existing under the laws of the state of
`
`New York with its principal place of business in Ridgefield Park, New Jersey and is a wholly-
`
`owned subsidiary of SEC.
`
`3.
`
`Defendant NVIDIA is a Delaware corporation with its headquarters located at
`
`2701 San Tomas Expressway, Santa Clara, California 95050. NVIDIA imports into the United
`
`-1
`
`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF VIRGINIA
`' 2IH NOV -M p
`ALEXANDRIA DIVISION
`
`J 30
`
`FILED
`
`CIVIL ACTION^Q^M^\C?S
`
`ALEOT
`
`'!ftG;i'HA
`
`JURY TRIAL DEMANDED
`
`SAMSUNG ELECTRONICS CO., LTD., and
`SAMSUNG ELECTRONICS AMERICA,
`INC.,
`
`Plaintiffs,
`
`NVIDIA CORPORATION, VELOCITY
`MICRO, INC. D/B/A VELOCITY MICRO,
`AND VELOCITY HOLDINGS, LLC
`
`Defendants.
`
`COMPLAINT
`
`Plaintiffs Samsung Electronics Company, Ltd. ("SEC") and Samsung Electronics
`
`America, Inc. ("SEA") (collectively "Samsung"), by and through their undersigned attorneys,
`
`hereby file this Complaint against NVIDIA Corporation ("NVIDIA"), Velocity Micro, Inc. d/b/a
`
`Velocity Micro, and Velocity Holdings, LLC (collectively "Velocity"). All defendants will be
`
`referred to collectively as "Defendants." Samsung statesas follows:
`
`THE PARTIES
`
`1.
`
`Plaintiff SEC is a multi-national corporation organized under the laws of Korea
`
`with its principal place of business located at 416 Maetan-3dong, Yeongtong-gu, Suwon-City,
`
`Gyeonggi-do, Korea 443-742.
`
`2.
`
`Plaintiff SEA is a corporation organized and existing under the laws of the state of
`
`New York with its principal place of business in Ridgefield Park, New Jersey and is a wholly-
`
`owned subsidiary of SEC.
`
`3.
`
`Defendant NVIDIA is a Delaware corporation with its headquarters located at
`
`2701 San Tomas Expressway, Santa Clara, California 95050. NVIDIA imports into the United
`
`-1
`
`
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`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 2 of 48 PageID# 2
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`States, offers for sale, sells and/or uses in the United States graphics processing units (GPUs),
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`system on a chip (SOC) units, graphics cards, and mobile computing devices such as tablet
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`computers.
`
`4.
`
`Defendant Velocity Micro, Inc., which does business in Virginia as Velocity
`
`Micro, is a corporation organized and existing underthe laws of Delaware with its principal
`
`place ofbusiness located at 7510 Whitepine Road, Richmond, Virginia 23237. The State
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`Corporation Commission of the Commonwealth ofVirginia listsVelocity Micro, Inc.'s principal
`
`office as 9030 Stony Point Parkway, Suite 400, Richmond, Virginia, 23235. Velocity Micro,
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`Inc. incorporates NVIDIA GPUs, SOCs, and/or graphics cards in products that it offers for sale,
`
`sells and/or uses in the United States.
`
`5.
`
`Defendant Velocity Holdings, LLC is a limited liability corporation organized and
`
`existing under the laws ofVirginia with its principal place of business located at 825 Grove Rd.
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`Suite 3, Midlothian, Virginia 23114. The members of Velocity Holdings, LLC reside in the
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`Eastern District ofVirginia. Velocity Holdings, LLC is a manufacturer of computers that it
`
`offers for sale, sells and/or uses in the United States.
`
`SAMSUNG
`
`6.
`
`From its inception as a small business in Taegu, Korea, Samsung has grown to
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`become one of the world's leading electronics companies, specializing in digital products,
`
`semiconductors, memory, and system integration. Today, Samsung's innovative consumer
`
`products are widely recognized andappreciated across the globe. Samsung designs, develops,
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`manufacturers, and sells leading consumer electronics, including mobile phones, smartphones,
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`tablet computers, and laptop computers.
`
`
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`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 3 of 48 PageID# 3
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`7.
`
`Samsung has a longhistory of groundbreaking innovation across a wide range of
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`technologies. During the 1970s and 1980s, Samsung's core technology businesses diversified
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`and expanded globally. For example, Samsung began production of personal computers in 1983
`
`and selected telecommunications and semiconductors as core business lines in 1988. About
`
`Samsung, Samsung, http://www.samsung.com/us/aboutsamsung/corporateprofile/history04.html.
`
`During this period, Samsung additionally challenged itself to restructure old businesses and enter
`
`new ones with the aim of becoming one of the world's top five electronics companies.
`
`8.
`
`Samsung's commitment to innovation is demonstrated in partby the billions of
`
`dollars in research and development expenditures incurred over the years. From 2005 through
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`2010 alone, Samsung invested more than $35 billion in research and development. More than a
`
`quarter of all Samsung employees—over 55,100 engineers overall—are engaged in cutting-edge
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`research and development projects.
`
`9.
`
`Samsung's commitment to innovation and investment in research and
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`development is demonstrated by the fact that SEC has in its portfolio over 40,000 United States
`
`utility patents and over 4,000 design patents. Samsung is consistently ranked ahead of other
`
`technology companies in terms of the number of issued patents obtained in the United States,
`
`with over 4,000 U.S. utility patents issued each year in recent years.
`
`10.
`
`Samsung is the assignee and owner of the patents at issue in this action, which
`
`relate to semiconductor technologies and computing devices: U.S. Patent No. 5,860,158 (the
`
`"'158 Patent"), U.S. Patent No. 6,282,938 (the "'938 Patent"), U.S. Patent No. 6,287,902 (the
`
`"'902 Patent"), U.S. Patent No. 6,819,602 (the '"602 Patent"), U.S. Patent No. 8,252,675 (the
`
`"'675 Patent"), U.S. Patent No. 6,804,724 (the "'724 Patent), U.S. Patent No. 7,073,054 (the
`
`-3
`
`
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`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 4 of 48 PageID# 4
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`"'054 Patent), and U.S. Patent No. 5,777,854 (the "'854 Patent") (collectively the "Asserted
`
`Patents").
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`11.
`
`Samsung has expended significant resources and efforts to become a pioneer in
`
`the area of mobile devices including smartphones, tablets, and computers. Samsung's research
`
`and development successes have propelled the company to its status as one of the world's
`
`leading electronics companies.
`
`12.
`
`As the Android operating system has grown, Samsung has grown with it to
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`become the leading supplier of Android-based devices, including both Android-based
`
`smartphones and Android-based tablet computers.
`
`13.
`
`Samsung has also continuously innovated in the design and manufacturing of
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`semiconductor products. Samsung established its first semiconductor fabrication facility in 1984
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`and began solidifying its position as a leading company in semiconductor technology.
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`Samsung's semiconductor research and development has led numerous industry innovations.
`
`Just one year after its initial semiconductor facility was established, Samsung established the
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`industry's first 6 inch fabrication facility in 1985. In 1992, Samsung developed the world's first
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`64Mb DRAM. In 1998, Samsung began shipping the world's first 128 Mb flash memory, and in
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`2006 Samsung launched the world's first 32GB solid state disk drive.
`
`14.
`
`Because of Samsung's commitment to semiconductor research and development,
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`Samsung is now recognized as one of the world's leading semiconductor manufacturers.
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`Samsung's semiconductor foundry labs include state-of-the-art facilities that support volume
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`production of chips using 90 nm, 65 nm, 45/40 nm, and 32/28 nm processes.
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`-4
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`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 5 of 48 PageID# 5
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`15.
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`Samsung's deep experienceand comprehensive knowledge of high-volume
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`manufacturing technology has led to numerous innovations in the design and manufacturing of
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`graphics technologies and computing devices.
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`16. Without the ability to enforce its intellectual property rights, such as those relating
`
`to the semiconductortechnologiesand computing devices at issue in this action, Samsungwould
`
`not be able to sustain the extensive commitment to research and development that has enabled it
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`to lead the way into numerous improvements across a broad range of technologies.
`
`NVIDIA
`
`17.
`
`NVIDIA designs, develops, manufactures, imports, and sells GPUs, SOCs, and
`
`graphics cards for a wide range of products including mobile devices and desktop systems.
`
`NVIDIA creates and uses reference graphics card designs for incorporating NVIDIA GPUs and
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`SOCs into graphics cards, in addition to designing, manufacturing, using and selling graphics
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`cards. NVIDIA additionally manufactures, or contracts others to manufacture, mobile processors
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`for smartphones and tablets. NVIDIA sells tablet computers under the name "SHIELD Tablet."
`
`NVIDIA's tablet computers use the Android operating system and compete directly with
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`Samsung tablet computers that also incorporate the Android operating system.
`
`18.
`
`NVIDIA sells and offers to sell products and services throughout the United
`
`States, including in this Judicial District, through its website and through major electronics
`
`retailers in North America. NVIDIA introduces products and services that infringe the Asserted
`
`Patents knowing that they would be sold in this Judicial District and elsewhere in the United
`
`States.
`
`19.
`
`NVIDIA conducts a significant amount of business in Virginia through online
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`sales and advertisements directly to consumers and through product sales by NVIDIA's
`
`
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`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 6 of 48 PageID# 6
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`distributors and resellers. NVIDIA targets Virginia residents through training programs offered
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`in this Judicial District, such as "CUDA Defense Workshops" offered for consumers of its GPU
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`platforms and products. See Cuda Defense Workshops, Acceleware
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`http://www.acceleware.com/cuda-defense-workshops. CUDA Defense Workshops are multi-day
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`trainingprograms"designed for programmers working in the defense industry, who are looking
`
`to develop skills in application design and optimization to fully leveragethe parallel computing
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`capabilities of compute GPUsusingthe CUDA platform." (Id.) For example, NVIDIA
`
`sponsoredand delivered a free two-day CUDA Defense Workshop on its GPU products on May
`
`23-24, 2013 at 13600 Eds Dr., Herndon, VA 20171. Id.
`
`20.
`
`NVIDIA is registered as a foreign corporation with the Commonwealth of
`
`Virginia and may be served with process through its registered agent in the Commonwealth of
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`Virginia, Corporation Service Company, HUE. Main St., Richmond, VA 23219.
`
`VELOCITY
`
`21.
`
`Velocity produces custom high-performance desktop and mobile computers
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`(including tablets) that are designed for applications such as gaming, digital graphic design,
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`home theater use, and common home and office use. Velocity also provides personal computers
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`designed for specialized applications, including scientific workstations. As of October 29, 2014,
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`Velocity advertised itself as "the premier high-performance innovator of consumer technology
`
`and electronics in North America." About Us, Velocity,
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`http://www.velocitymicro.com/about.php. Velocity additionally advertised that it is "100%
`
`based in the USA in Richmond, VA" id. and that its laptop computers are "[assembled by our
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`expert engineers in Richmond, VA" Gamingand Enthusiast Laptops, Velocity,
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`http://www.velocitymicro.com/gaming-laptops.php.
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`
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`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 7 of 48 PageID# 7
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`22.
`
`Velocity prominently advertises that several of its product lines use NVIDIA
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`GPUs. For example, on February 18, 2014, Velocity announced "the immediate availability of
`
`the NVIDIA GeForce GTX 750, GTX 750 Ti, and the amazing GTX TITAN Black in select
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`Gaming/Enthusiast and Workstation desktops." Press Release - NVIDIA GeForce GTX 750, 750
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`Ti, and TITAN Black, Velocity (Feb. 18, 2014), http://www.velocitymicro.com/press-release-
`
`nvidia-geforce-gtx.php.
`
`'"Every evolution of the GeForce cards presents better and better
`
`choices for consumers, and these new products are no exception,' said Randy Copeland,
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`President and CEO of Velocity.
`
`'With the best-in-class performance of the TITAN Black and
`
`incredible price for performance of the GTX 750 and 750 Ti, NVIDIA has brought two great
`
`choices to market. We're excited to offer them to our enthusiast customers.'" Id.
`
`23.
`
`In another example, on May 23,2013, Velocity issued a press release announcing
`
`"desktops powered by NVIDIA GeForce GTX 780." Press Release, Velocity (May 23, 2013),
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`http://www.velocitymicro.com/pr_20130523.php. "'Since our first Editors' Choice award in
`
`2002, we've seen PC hardware come a long way. NVIDIA has always led the way in that
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`innovation,' said Randy Copeland, President and CEO of Velocity.
`
`'After spending a few days
`
`testing the GeForce GTX 780, all I can say is WOW - they've done it again. This is seriously
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`fast hardware and a must have for enthusiasts.'" Id.
`
`24.
`
`In yet another example, on May 25, 2010, Velocity issued a press release
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`announcing the release of its "Raptor XI7 Notebook Featuring NVIDIA® GeForce® GTX
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`480M Mobile Graphics." Press Release, Velocity (May 25, 2010),
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`http://www.velocitymicro.com/pr_20102505.php.
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`'"With the release of the NVIDIA GeForce
`
`GTX 480M, we're able to provide a new level of mobile gaming performance to our customers
`
`
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`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 8 of 48 PageID# 8
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`who demand the best hardware,' said Chip Lowell, VP of Sales for Velocity.
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`'This is more than
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`just a desktop replacement. It's the ultimate mobile gaming system.'" Id.
`
`25.
`
`Velocity has a history of issuing press releases prominently advertising Velocity
`
`as the global launch partner of select NVIDIA GPUs. For example, on June 5, 2006, Velocity
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`issued a press release announcing it as a global launch partner for NVIDIA's GeForce 7950 GX2
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`Graphics Solution. Press Release, Velocity (June 5, 2006),
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`http://www.velocitymicro.com/press-release-nvidia-geforce-gtx.php.
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`'"We are proud to be a
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`global launch partner with NVIDIA on this exciting new graphics solution. NVIDIA GeForce
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`7950 GX2 takes gaming performance to extreme levels,'" said Randy Copeland, Velocity
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`President and founder. Our strong relationship with NVIDIA enables us to continue to offer our
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`customers the level of innovation and performance that they've grown to expect from us.'" Id.
`
`Ujesh Desia, general manager of desktop GPUs at NVIDIA, stated that "[w]ith that kind of
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`graphics horsepower at their disposal, Velocity has the knowledge necessary to configure a PC
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`for customers of BestBuy.com that will deliver an immersive, high-performance gaming
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`experience.'" Id
`
`26.
`
`In another example, Velocity issued a press release announcing that "Velocity
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`Micro Partners With NVIDIA To Launch GeForce 6 Series of Graphics." Press Release,
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`Velocity (April 16, 2004), http://www.velocitymicro.com/pr_20041604.php.
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`'"We're pleased to
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`be able to launch such compelling technology in conjunctionwith a well-respected company like
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`NVIDIA,' said Velocity founder and president Randall Copeland. 'This partnership is just one of
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`the many reasons why Velocity Micro is able to offer premium products to meet the needs of all
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`its customers.'" Id.
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`
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`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 9 of 48 PageID# 9
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`27.
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`Velocity sells desktop and laptop computers that incorporate NVIDIA GPUs.
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`Velocity competes with Samsung in the sale of computers.
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`28.
`
`In 2010, Velocity introduced a tablet computer under the name "Cruz Tablet" that
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`uses the Android operating system and competes with Samsung tablet computers that incorporate
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`the Android operating system.
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`29.
`
`Velocity sells and offers to sell products and services throughout the United
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`States, including in this Judicial District, through its website and through major electronics
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`retailers in North America. Velocity advertises that it "competes on a national level with a full
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`product line that includes PCs, notebooks, and peripherals. Velocity products have been sold at
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`nearly every major electronics retailer in North America including Best Buy, Circuit City,
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`RadioShack, Costco, Sears, Target, and many others." Company History, Velocity,
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`http://www.velocitymicro.com/velocity-story.php. Velocity introduces products and services
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`that infringe the Asserted Patents knowing that they would be sold in this Judicial District and
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`elsewhere in the United States.
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`JURISDICTION AND VENUE
`
`30.
`
`This action arises under the patent laws of the United States, Title 35 of the
`
`United States Code. This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331
`
`and 1338(a).
`
`31.
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`Pursuant to 28 U.S.C. § 1367(a), this Court also has supplemental jurisdiction
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`over the state law claim of false advertising under Va. Code §§ 18.2-216 and 59.1-68.3. This
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`state law claim is so related to the claims under which the Court has original subject matter
`
`jurisdiction that it forms part of the same case and controversy under Article III of the United
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`States Constitution.
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`
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`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 10 of 48 PageID# 10
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`32.
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`Pursuant to 28 U.S.C. § 1332, this Court also has subject matter jurisdiction over
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`the state law claim asserted in this action because there is complete diversity between the parties
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`to the state law claim and because the amount in controversy against defendant NVIDIA
`
`separatelyexceeds the value of $75,000, exclusiveof interests and costs.
`
`33.
`
`This Court has personal jurisdiction over NVIDIA and Velocity by virtue of the
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`business activities Defendants conduct within the Commonwealth of Virginia, resulting in
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`sufficient minimum contacts with this forum. NVIDIA and Velocity conduct substantial
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`business activities in the state, including acts of patent infringement that have injured Samsung,
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`and therefore Defendants have purposefully availed themselves of the laws of the
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`Commonwealth of Virginia.
`
`34.
`
`NVIDIA and Velocity directly and/or through intermediaries make, offer for sale,
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`sell, and/or advertise (including through a website) products and services in the Commonwealth
`
`of Virginia and in this Judicial District. Defendants NVIDIA and Velocity purposefully and
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`voluntarily place their infringing products into the stream of commerce with the expectation that
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`they will be purchased by consumers in the Commonwealth of Virginia and in this Judicial
`
`District. These infringing products have been and continue to be purchased by consumers in the
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`Commonwealth of Virginia and in this Judicial District.
`
`35.
`
`NVIDIA has been registered as a foreign corporation with the Commonwealth of
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`Virginia since at least May 12, 2010. NVIDIA may be served with process through its registered
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`agent in the Commonwealth of Virginia, Corporation Service Company, HUE. Main St.,
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`Richmond, VA 23219.
`
`36.
`
`Velocity advertised that it is "100% based in the USA in Richmond, VA." About
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`Us, Velocity, http://www.velocitymicro.com/about.php. Velocity additionally advertised that its
`
`10
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`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 11 of 48 PageID# 11
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`laptop computers are "[ajssembled by our expert engineers in Richmond, VA." Gamingand
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`Enthusiast Laptops, Velocity, http://www.velocitymicro.com/gaming-laptops.php. Velocity has
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`been registered as a corporation with the Commonwealth of Virginia since at least January 7,
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`1998. Velocity may be served with process through their registered agents in the
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`Commonwealth of Virginia, Freed & Shepherd, P.C., 9030 Stony Point Pkwy Suite 400,
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`Richmond, VA 2325 and Gary S Cook, 4551 Cox Rd Suite 210, Glen Allen, VA 23060.
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`37.
`
`Venue is proper in this Judicial District pursuant to 28 U.S.C. §§ 1391(b)-(c) and
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`1400(b) because Defendants have conducted business in this Judicial District, have offices and
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`facilities in this District, have committed specific acts of infringement and/or induced or
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`contributed to acts of infringement in this District, and continue to commit and/or induce or
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`contribute to acts of infringement in this District, entitling Samsung to relief.
`
`FIRST CLAIM FOR RELIEF
`INFRINGEMENT OF U.S. PATENT NO. 5,860,158
`(AGAINST NVIDIA AND VELOCITY)
`
`38.
`
`Each of the above listed paragraphs is incorporated herein by reference, and
`
`adopted, as if set forth fully again.
`
`39.
`
`The '158 Patent was filed on November 15,1996, issued on January 12,1999,
`
`and is entitled "Cache Control Unit With A Cache Request Transaction-Oriented Protocol." The
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`'158 Patent is generally directed to a cache control unit and a method of controlling a cache.
`
`40.
`
`SEC was assigned the ' 158 Patent and continues to hold all rights, title, and
`
`interest in the '158 Patent. A true and correct copy of the '158 Patent is attached hereto as
`
`Exhibit A.
`
`41.
`
`NVIDIA has directly infringed and continues to directly infringe one or more of
`
`the claims of the '158 Patent by making, using, offering to sell, selling, or importing its
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`-11
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`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 12 of 48 PageID# 12
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`infringing devices, including but not limited to the NVIDIA Tegra 250 processor and the
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`NVIDIA Tegra 3 T33 processor.
`
`42.
`
`Velocity has directly infringed and continues to directly infringe one or more of
`
`the claims of the '158 Patent by making, using, offering to sell, selling, or importing its
`
`infringing devices, including but not limited to the Cruz Tablet L510 incorporating the NVIDIA
`
`Tegra 250 processor.
`
`43.
`
`NVIDIA and Velocity indirectly infringe the ' 158 Patent by inducing
`
`infringement by others, such as OEMs, manufacturers, importers, resellers, customers, and end
`
`users, in accordance with 35 U.S.C. § 271(b), in this District and elsewhere in the United States.
`
`Direct infringement is the result of activities performed by the OEMs, manufacturers, customers,
`
`importers, resellers, and/or end-use customers by, for example, the manufacture, offer for sale,
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`sale, importation, or use of infringing devices.
`
`44.
`
`NVIDIA and Velocity have induced and continue to induce infringement of the
`
`'158 Patent by intending that others infringe the '158 patent by making, using, importing,
`
`offering for sale, or selling in the United States products covered by one or more claims of the
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`'158 Patent including, but not limited to, the products listed above.
`
`45.
`
`NVIDIA and Velocity provide the identified products to others, such as
`
`manufacturers, customers, resellers, and end-use consumers who, in turn, make, use, import into,
`
`offer for sale, or sell in the United States products that infringe one or more claims of the ' 158
`
`Patent.
`
`46.
`
`NVIDIA has had actual knowledge of, or was willfully blind to, the Asserted
`
`Patents since at least as early as August 7, 2013. In 2013, Samsung and NVIDIA were engaged
`
`in negotiations regarding rights to various patents and, on August 7, 2013, Samsung sent
`
`12
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`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 13 of 48 PageID# 13
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`infringement claim charts and other documents to NVIDIA that specifically highlighted certain
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`exemplary patents, claims, and products. Although Samsung avers that NVIDIA had notice of
`
`the Asserted Patents at least as of that submission date, at the very latest, NVIDIA received
`
`actual notice of the Asserted Patents as of the date this complaint was filed and served.
`
`47.
`
`Velocity received notice of the Asserted Patents at least as of the date this
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`complaint was filed and served.
`
`48.
`
`NVIDIA and Velocity designed the infringing products such that they would each
`
`infringe one or more claims of the ' 158 Patent if made, used, sold, offered for sale, or imported
`
`into the United States.
`
`49.
`
`NVIDIA provides the infringing products, and reference designs for the
`
`infringing products, to others, such as OEMs, manufacturers, importers, resellers, customers, and
`
`end users, who, in turn, offer for sale, sell, import into, or use these infringing products to
`
`infringe one or more claims of the ' 158 Patent. Through its manufacture (either directly, or
`
`through contract manufacturing facilities) and/or sale of the infringing products, NVIDIA
`
`specifically intends that OEMs, manufacturers, importers, resellers, customers, and end users
`
`will infringe one or more claims of the ' 158 Patent.
`
`50.
`
`Velocity provides the infringing products to others, such as OEMs,
`
`manufacturers, importers, resellers, customers, and end users, who, in turn, offer for sale, sell,
`
`import into, or use these infringing products to infringe one or more claims of the ' 158 Patent.
`
`Through its manufacture, testing, use, and/or sale of the infringing products, Velocity
`
`specifically intends that OEMs, manufacturers, importers, resellers, customers, and end users
`
`will infringe one or more claims of the '158 Patent.
`
`13
`
`
`
`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 14 of 48 PageID# 14
`
`51.
`
`NVIDIA specifically intends for others, such as OEMs, manufacturers, importers,
`
`resellers, customers, and end users, to directly infringe one or more claims of the '158 Patent in
`
`the United States. For example, NVIDIA advertised its "NVIDIA Authorized Board Partner
`
`Program ensures an exceptional customer experience when purchasing graphics cards and
`
`motherboards manufactured by partners that make use of NVIDIA's latest technologies."
`
`NVIDIA PartnerForce Info, NVIDIA, http://www.nvidia.com/object/pf_boardpartners.html.
`
`NVIDIA claims that its "NVIDIA Authorized Board Partners offer the latest technologies from
`
`NVIDIA" and lists six Authorized Board Partners in the United States, six in Canada, and none
`
`in any other countries. Id. NVIDIA also lists ten distributors in the United States (including
`
`"pre and post sales technical support") and seven in Canada but none in any other country. See
`
`id.
`
`52.
`
`As an additional example, as of October 31, 2014, NVIDIA also advertised the
`
`"NVIDIA PartnerForce Program" which is "a sales and marketing program for value-added
`
`resellers, system builders, etailers and retailers who sell NVIDIA based components or systems."
`
`NVIDIA PartnerForce Program, NVIDIA, http://www.nvidia.com/page/channel.html. NVIDIA
`
`advertises in the United States and in this judicial district that "[b]y joining the PartnerForce
`
`Program, you may leverage the world-class brands and technology platforms from NVIDIA,
`
`sales and technical support from our experienced team and hundreds of turnkey sales and
`
`marketing tools." Id.
`
`53.
`
`NVIDIA also provides marketing materials and templates, including retail display
`
`items, web banners, copy blocks, logos, product shots, email and web page templates, to
`
`members of the "NVIDIA PartnerForce Program" which includes value-added resellers, system
`
`-14
`
`
`
`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 15 of 48 PageID# 15
`
`builders, etailers and retailers inducing them to offer to sell and sell NVIDIA products that
`
`infringe the '158 Patent in the United States. See id.
`
`54.
`
`NVIDIA and Velocity also provide OEMs, manufacturers, importers, resellers,
`
`customers, and end users instructions, user guides, and technical specifications. When OEMs,
`
`manufacturers, importers, resellers, customers, and end users follow such instructions, user
`
`guides, and/or other design documentation, they directly infringe one or more claims of the ' 158
`
`Patent. NVIDIA and Velocity know that by providing such instructions, user guides, and/or
`
`other design documentation, OEMs, manufacturers, importers, resellers, customers, and end
`
`users follow those instructions, user guides, and other design documentation, and directly
`
`infringe one or more claims of the ' 158 Patent. NVIDIA and Velocity thus know that their
`
`actions actively induce infringement.
`
`55.
`
`NVIDIA and Velocity also specifically target the United States market for their
`
`products listed above and actively induce OEMs, manufacturers, importers, resellers, customers,
`
`and end users to directly infringe one or more claims of the '158 Patent in the United States.
`
`56.
`
`For example, at the Ford Event and Conference Center, in Dearborn, Michigan,
`
`NVIDIA showcased its latest processor technologies, which power everything from the CAD
`
`software that designers use to style cars to the infotainment systems that drivers use to map their
`
`trips and listen to music, in an effort to encourage domestic car manufacturers to include
`
`infringing technology in vehicles manufactured and sold in the United States. See Traveling The
`
`Road ToSilicon Motown, NVIDIA Blog (Feb. 2, 2012),
`
`http://blogs.nvidia.coni/blog/2012/02/02/traveling-the-road-to-silicon-motown/.
`
`57.
`
`Velocity products have been sold at nearly every major electronics retailer in
`
`North Americaincluding Best Buy, CircuitCity, RadioShack, Costco, Sears, Target, and many
`
`15
`
`
`
`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 16 of 48 PageID# 16
`
`others. See Company History, Velocity,http://www.velocitymicro.com/velocity-story.php.
`
`Velocity introduces products and services that infringe the Asserted Patents intendingthat they
`
`would be sold in this Judicial District and elsewhere in the United States.
`
`58.
`
`NVIDIA and Velocity indirectly infringe the '158 Patent by contributing to
`
`infringementby others, such as OEMs, manufacturers, importers, resellers, customers, and end
`
`users, in accordance with 35 U.S.C. § 271(c), in this District and elsewhere in the United States.
`
`Direct infringement is the result of activities performed by the OEMs, manufacturers, importers,
`
`resellers, customers, and end users of the infringing products.
`
`59.
`
`For example, NVIDIA's and Velocity's infringing products identified above
`
`allow for the control of cache. When the infringing products are used as intended in the products
`
`of their OEMs, manufacturers, importers, resellers, customers, and end users, the infringing
`
`products must necessarily control the cache in an infringing manner. The infringing products
`
`cannot operate in an acceptable manner without controlling the cache as claimed in the '158
`
`Patent.
`
`60.
`
`From the facts set forth above, it is evident that NVIDIA and Velocity knew or
`
`should have known that the ability to control the cache in the infringing products is especially
`
`made or especially adapted to operate in the products ofNVIDIA's and Velocity's OEMs,
`
`manufacturers, importers, resellers, customers, and end users, and is not a staple article or
`
`commodity of commerce and that its infringing use is required for operationof the infringing
`
`products. Any other use would be unusual, far-fetched, illusory, impractical, occasional,
`
`aberrant, or experimental.
`
`61.
`
`NVIDIA's and Velocity's infringing products, with the ability to controlthe
`
`cache, are each a material part of the invention of the '158 Patentand are especially madeor
`
`16
`
`
`
`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 17 of 48 PageID# 17
`
`adapted to infringe one or more claims of the '158 Patent. Because the manufacturing, offering
`
`for sale, sales, and use of the infringing products necessarily infringe one or more claims of the
`
`'158 Patent, NVIDIA's and Velocity's sales of its infringing products have no substantial non
`
`infringing uses.
`
`62.
`
`Accordingly, NVIDIA and Velocity offer to sell, or sell a component, material, or
`
`apparatus for use in practicing one or more claims of the ' 158 Patent knowing the same to be
`
`especially made or especially adapted for use in an infringement of such patent, and not a staple
`
`article or commodity of commerce suitable for substantial non-infringing use.
`
`63.
`
`NVIDIA's infringement of the '158 Patent is willful and deliberate, entitling
`
`Samsung to increased damages under 35 U.S.C. § 284 and to attorneys' fees and costs incurred
`
`in prosecuting this action under 35 U.S.C. § 285.
`
`64.
`
`Samsung has no adequate remedy at law for NVIDIA's and Velocity's
`
`infringement of the '158 Patent and is suffering irreparable harm, requiring permanent injunctive
`
`relief.
`
`SECOND CLAIM FOR RELIEF
`INFRINGEMENT OF U.S. PATENT NO. 6,262,938
`(AGAINST NVIDIA AND VELOCITY)
`
`65.
`
`Each of the above listed paragraphs is incorporated herein by reference, and
`
`adopted, as if set forth fully again.
`
`66.
`
`The '938 Patent was filed on March 3, 2000, issued on July 17, 2001, and is
`
`entitled "Synchronous DRAM Having Posted CAS Latency And Method For Controlling CAS
`
`Latency." The '938 Patent is generally directed to an SDRAM that supports an operation
`
`generally referred to as "posted CAS" and a method for controlling the CAS latency of an
`
`SDRAM.
`
`17
`
`
`
`Case 3:14-cv-00757-REP-DJN Document 1 Filed 11/04/14 Page 18 of 48 PageID# 18
`
`67.
`
`SEC was assigned the '938 Patent and continues to hold all rights, title, and
`
`interest in the '938 Patent. A true and correct copy of the '938 Patent is attached hereto as
`
`Exhibit B.
`
`68.
`
`NVIDIA has directly infringed and continues to directly infringe one or more of
`
`the claims of the '938 Patent by making, using, offering to sell, selling, or importing its
`
`infringing devices, including but not limited to the NVIDIA Tegra 250 processor and the
`
`NVIDIA Tegra 4 processor.
`
`69.
`
`Velocity has directly infringed and continues to directly inf
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