HID Global et. al. v. Soundcraft et. al.

8/13/2019 HID Global et. al. v. Soundcraft et. al.

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HID GLOBAL CORPORATION, aDelaware corporation; ASSA ABLOYAB, a Swedish Limited LiabilityCompany; and DESTRON FEARINGCORPORATION, a Delawarecorporation,Plaintiffs,

VS.SOUNDCRAFT, INC., a Californiacorporation; and DOES 1 through 10,inclusive,

Defendants.

Michael T. Hornak (State Bar No. 81936)email: mhomak rutan.cornRonald P. Oines State Bar No. 145016)email: [email protected] A. Chapin (State Bar No. 232885)email: bcha pin@ rutan.comTimothy Spivey State Bar No. 269084)RUTAN & TUC R, LLP611 Anton Boulevard, Fourteenth FloorCosta Mesa, California 92626-1931Telephone: 714-641-5100Facsimile: 714-546-9035Attorneys for Plaintiffs IED GLOBALCORPORATION, ASSA ABLOY AB andDESTRON FEARING CORPORATION

UNITED STATES DISTRICT COURTCENTRAL DISTRICT OF CALIFORNIA

Case No. SACV13-01890 AG ANx)COMPLAINT FOR INJUNCTIONAND DAMAGES FOR PATENTINFRINGEMENTDEMAND FOR JURY TRIAL

COMPLAINT FOR PATENTINFRINGEMENT2118/025100-0007

5843186.1 a12/03/13

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Plaintiffs HID GLOBAL CORPORATION ( HID ), ASSA ABLOY AB( AAAB ) and DESTRON FEARING CORPORATION ( Destron ) (collectively,Plaintiffs ), for their Complaint against defendants SOUNDCRAFT, INC.

( Soundcraft ), and DOES 1 through 10, inclusive (collectively, Defendants ),allege as follows:

JURISDICTION AND VENUE1 . This is an action involving claims of patent infringement under Title

35, United States Code. This Court has jurisdiction pursuant to 28 U.S.C. 1331and 133 8 (a) .

2 . Venue is proper in this judicial district pursuant to 28 U.S.C. 1400(b)and 1391(c), as Defendants reside in this judicial district, have committed acts ofinfringement in this judicial district, and have a regular and established place ofbusiness in this judicial district.

THE PARTIES3 . HID is a Delaware corporation having its principal place of business

located at 15370 Barranca Parkway, Irvine, California.4. AAAB is a Limited Liability Company established under the laws of

Sweden and having a principal place of business in Stockholm, Sweden. AAAB isHID s parent comp any.

5 . Destron is a Delaware corporation having its principal place of businesslocated in St. Paul, Minnesota.

6 . Plaintiffs are informed and believe, and thereon allege, that Soundcraftis a California corporation having its principal place of business located at 20301Nordhoff Street, Chatsworth, California 91311. On information and belief,Soundcraft sells and offers to sell the products that are the subject of this actionthrough its Secura Key division.

7. The true names and capacities, whether individual, corporate, associateor otherwise, of defendants DOES 1 through 10, inclusive, are unknown to

COMPLAINT FOR PATENTINFRINGEMENT

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Plaintiffs, which therefore sue said defendants by such fictitious names. Plaintiffswill seek leave of this Court to amend this Complaint to include their proper namesand capacities when they have been ascertained. Plaintiffs are informed and believe,and based thereon allege, that each of the fictitiously named defendants participatedin and is in some manner responsible for the acts described in this Complaint andthe damage resulting therefrom.

8 . Plaintiffs allege on information and belief that each of the defendantsnamed herein as Does 1 through 10, inclusive, performed, participated in, or abettedin some manner, the acts alleged herein, proximately caused the damages allegedhereinbelow, and are liable to Plaintiffs for the damages and relief sought herein.

9 . Plaintiffs allege on information and belief that, in performing the actsand omissions alleged herein, and at all times relevant hereto, each of theDefendants was the agent and employee of each of the other Defendants and was atall times acting within the course and scope of such agency and employment withthe knowledge and approval of each of the other Defendants.

HID'S BUSINESS10. HID is a leader in the delivery of secure identity solutions for millions

of customers throughout the world. HID' s identity solutions are used in a variety ofapplications, including physical access control, logical access control, access cardprinting and personalization, highly secure government identification and animalidentification. HID's products, solutions and services are sold through a well-established network of OEMs, developers, systems integrators and distributorsworldwide. End users of HID's products, solutions and services include businessesand organizations in virtually all industry sectors, including goverment, healthcare,retail, industrial, commercial, airports, ports, finance and education.

11. HID's physical access control products and solutions are sold underHID s well-known brands, including iCLASSO, SmartIDCD, HID Prox andIndala0 Prox. These industry leading products, include radio frequency


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identification ( RFID ) readers and credentials that operate at low frequency(i.e., 125 kHz), high frequency (i.e., 13.56 MHz), or both.

THE PATENT AT ISSUE12. HID owns or is a licensee to numerous patents and other intellectual

property that relate to various aspects of HID's business. The patent that is thesubject of this action, United States patent no. 5,952,935 (the '935 Patent ), relatesgenerally to multi-technology readers and credentials.

13 . The '935 Patent, entitled Reprogrammable Channel Search Reader,issued on September 14, 1999. Destron owns the '935 Patent. Pursuant to a licenseagreement dated September 21, 2007 (the License Agreement ), Destron'spredecessor granted to Assa Abloy Identification Technology Group AB( AAITG ) an exclusive license in certain fields to the '935 Patent. Destron'spredecessor further granted to AAITG the right to enforce the '935 Patent to the fullextent of the license granted, including the right to file actions for patentinfringement for any current or past infringement. By assignment, AAAB owns therights granted to AAITG pursuant to the license from Destron's predecessor. HIDhas a sublicense to the '935 Patent. Pursuant to the License Agreement, Destron'spredecessor, as owner of the '935 Patent, agreed to participate in any infringementaction brought by AAITG, or its successor to the rights under the LicenseAgreement, AAAB. Destron is named as a plaintiff in this action for that reasonalone.

14. The '935 Patent generally discloses an RFID reader that is capable ofreading identification signals from transponders that use different frequencies,different methods of modulation, and/or different methods of encoding tocommunicate with the RFID reader. Another key aspect of the '935 Patent providesthat the RFID reader is programmable.

SOUNDCRAFT S INFRINGEMENT15 . Soundcraft also is in the business of providing physical access control


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solutions, including RFID readers that operate at 125 kHz carrier frequency.Soundcraft competes directly with HID, and sells and seeks to sell its RFID readersto various industry sectors, including those to which HID sells its products. As setforth below, certain of Soundcraft's readers incorporate inventions that are disclosedin and protected by the '935 patent.

CLAIM FOR RELIEF(Patent Infringement 93 5 Patent)

16. Plaintiffs reallege each and every allegation set forth in paragraphs 1through 15, inclusive, and incorporate them herein by this reference.

17. Defendants make, use, sell, offer for sale, and/or import into the UnitedStates products that meet each and every element of one or more claims of the '935patent. As such, Defendants have infringed and are infringing the '935 patent.

18 . Plaintiffs have marked relevant products and/or product literature withthe '935 Patent pursuant to 35 U.S.C. 287. On information and belief, Defendantshave had actual knowledge of the '935 Patent before and during their infringementof the '935 Patent. On information and belief, Defendants' infringement of the'935 patent has been and will continue to be willful, wanton and deliberate with fullknowledge and awareness of Plaintiffs' patent rights.

19. Plaintiffs have been damaged in an amount to be determined at trial,but which is no less than a reasonable royalty, and irreparably injured byDefendants' infringing activities. Plaintiffs will continue to be so damaged andirreparably injured unless such infringing activities are enjoined by this Court.

20. Moreover, in light of the willful nature of Defendants' conduct, thiscase should be deemed exceptional under the Patent Laws. As a result, in additionto damages, Plaintiffs are entitled to enhanced damages and their attorneys' fees andcosts incurred herein.

YER FOR RELIEFWHEREFORE, Plaintiffs pray for judgment against Defendants as follows:


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1 . That Defendants, their officers, directors, agents, servants, employees,and all persons and entities in active concert or participation with them, or any ofthem, be preliminarily and permanently enjoined and restrained from furtherinfringement of the '935 Patent;

2. A judgment by the Court that Defendants have infringed and areinfringing the '935 Patent;

3 . An award of damages for infringement of the '935 Patent, together withprejudgment interest and costs, said damages to be trebled by reason of theintentional and willful nature of Defendants' infringement, as provided by 35 U.S.C. 284;

4. A determination that this case is exceptional under 35 U.S.C. 285,and an award of Plaintiffs' reasonable attorneys' fees;

5 . That any monetary award include pre- and post-judgment interest at thehighest rate allowed by law;

6 . For costs of suit; and7. For such other and further relief as the Court may deem just and proper.

Dated: December 4, 2013 UTAN & TUCKER, LLPMICHAEL T. HORNAKRONALD P. OINESBRADLEY A. CHAPINTIMOTHY SPIVEYBy:

Ronald POinesAttorneys for Plaintiffs HID GLOBALCORPORATION, ASSA ABLOYAB, and DESTRON FEARINGCORPORATION


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DEMAND FOR JURY TRIALPursuant to Local Rule 38-1 of the Local Rules of the United States District

Court for the Central District of California, Plaintiffs hereby demand a jury trial inthis action.Dated: December 4, 2013 RUTAN & TUCKER, LLPMICHAEL T. HORNAKRONALD P. OINESBRADLEY A. CHAPINTIMOTHY SPIVEY

tAonald RflinesAttorneys or Plaintiffs HID GLOBALCORPORATION, ASSA ABLOY ABand DESTRON FEARINGCORPORATION

COMPLAINT FOR PATENTINFRINGEMENT2118/025100-00075843186.1 a 1 2/03/13

By:

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UNITED STATES DISTRICT COURTCENTRAL DISTRICT OF CALIFORNIANOTICE OF ASSIGNMENT TO UNITED STATES JUDGES

This case has been assigned to District JudgeMagistrate Judge is rthur Nakazato

Andrew J. G uilford nd the assigned

The case number on all documents filed with the Court should read as follows:

SACV13-018 90 AG (ANx)

Pursuant to General Order 05-07 of the United States District Court for the Central District ofCalifornia, the Magistrate Judge has been designated to hear discovery related motions.

All discovery related motions should be noticed on the calendar of the Magistrate Judge.

Clerk, U. S. District Court

December 4, 2013 By . BarrDeputy Clerkate

NOTICE TO COUNSELA copy of this notice must be served with the summons and complaint on all defendants if a removal action isfiled a copy of this notice must be served on all plaintiffs).

Subsequent documents must be filed at the following location:r] Western Division

31 2 N. Spring Street, G-8Los Angeles, CA 900 12Southern Division411 W est Fourth St., Ste 10 53Santa Ana, CA 92701

11 Eastern Division34 70 Tw elfth Street, Room 13 4Riverside, CA 925 01

Failure to file at the proper location will result in your docum ents being returned to you.NOTICE OF ASSIGNMENT TO UNITED STATES JUDGESV-18 (08/13)


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UNITED ST, S DISTRICT COURT, CENTRAL DISTRICT OF IFORNIACIVIL COVER SHEET

(a) PLAINTIFFS ( Check box if you are representing yourseli E ) EFENDANTS Check box if you are representing yourself E LCORPORATION, a Delaware corporation; ASSA

Plaintiff Orange

Attorneys Fi rm Nam e, Address and Telephone N umber) If you areT. Hornak SBN 81936/ Ronald P. Oines SBN 145016269084

elephone: 714-641-5100

SOUNDCRAFT, INC., a California corporation; and DOES 1through 10, inclusive,County of Residence of First Listed DefendantIN US. PLAINTIFF CASES ONLY)

Attorneys Firm Name, Address and Telephone Number) If you arerepresenting yourself, provide the same information.

Incorporated or Principal Placeof Business in this State

III. CITIZENSHIP OF PRINCIPAL PARTIES-For Diversity Cases Only(Place an X in one box for plaintiff and one for defendant)PTF DEF TF

El 4111 5ncorporated and Principal Placeof Business in Another State

Citizen of This StateCitizen of Another StateCitizen or Subject of aForeign Country

(Place an X in one box only.)1. Original 2. Removed from l 3. Remanded from l 4. Reinstated or 5. Transferred from Another

Proceeding tate Court ppellate Court eopened istrict (Specify)

23: E] Yes o MONEY DEMANDED IN COMPLAINT: $ According to proof.

SACV13 018ase Number:R OFFICE USE ONLY:(11/13) CIVIL COVER SHEET Page 1 of 3

6. Multi-DistrictLitigation

Yes r] No (Check Yes only if demanded in complaint.)

CAUSE OF ACTION (Cite the U.S. Civil Statute under which you are filing and write a brief statement of cause. Do not cite jurisdictional statutes unless diversity.)This is an action involving claims of patent infringement under Title 35, United States Code.NATURE OF SUIT Place an X in one box onl .OTHER STATUTES CONTRACT REAL PROPERTY CONT. :IMMIGRATION PRISONER PETITIONS - PROPERTY RIGHTS.375 False Claims Act

400 StateReapportionment410 Antitrust430 Banks and Banking

450 Commerce/ICCates/Etc.460 Deportation

470 Racketeer Influ-enced & Corrupt Org.480 Consumer Credit490 Cable/Sat TV

850 Securities/Com-modities/Exchange90 Other Statutory

Actions891 Agricultural Acts893 EnvironmentalMatters

.895 Freedom of Info.Act896 Arbitration899 Admin. Procedures1 Act/Review of Appeal ofAgency Decision950 Constitutionality of

I State Statutes

110 Insurance120 Marine130 Miller Act140 NegotiableLi Instrument150 Recovery ofOverpayment &Enforcement ofJudgment151 Medicare Act152 Recovery ofDefaulted StudentLoan (Excl. Vet.)153 Recovery ofOverpayment ofVet. Benefits160 Stockholders'Suits

El 190 OtherContract195 ContractProduct Liability196 Franchise

240 Torts to Land245 Tort ProductLiability290 All Other RealProperty

462 NaturalizationApplication465 OtherImmigration Actions

Habeas Corpus: 820 CopyrightsIII 463 Alien Detainee 830 PatentEl 510 Motions to VacateSentenceEl 530 General

535 Death Penalty840 Trademark

TORTSPERSONAL PROPERTY

OCIAL SECURITY _TORTSPERSONAL INJURY 861 HIA (1395ff)862 Black Lung (923)L310 Airplane--- 315 AirplaneProduct Liabil ity

320 Assault, Libel &Li Slander330 Fed. Employers'Liability340 Marine345 Marine ProductLiability350 Motor Vehicle355 Motor VehicleProduct Liability360 Other PersonalLi Injury

r1 362 Personal Injury-Med Malpratice365 Personal Injury-Li Product Liability367 Health Care/El PharmaceuticalPersonal InjuryProduct Liability368 AsbestosPersonal InjuryProduct Liability

370 Other Fraud371 Truth in Lending380 Other PersonalProperty Damage385 Property DamageProduct Liability

Other:540 Mandamus/Other550 Civil Rights555 Prison Condition560 Civil DetaineeLi Conditions ofConfinement

863 DIWC/DIWW (405 (g))864 SSID Title XVI865 RSI (405 (g))

FEDERAL 1 -AX SUITSBANKRUPTCY 870 Taxes (U.S. Plaintiff or

Defendant)871 IRS-Third Party 26 USC7609

422 Appeal 28USC 158423 Withdrawal 28Li USC 157

FORFEITURE/PENALTY625 Drug RelatedSeizure of Property 21USC 881Li 690 OtherCIVIL RIGHTS.40 Other Civil Rights

441 Voting442 Employment443 Housing/Accomodations445 American withDisabilit ies-Employment

El 446 American withDisabilities-Other448 Education

LABOR710 Fair Labor StandardsAct720 Labor/Mgmt.Relations .740 Railway Labor Act

Li 751 Family and MedicalLeave ActEl 790 Other LaborLitigation

791 Employee Ret. Inc.Security Act

REAL PROPERTY210 LandCondemnation220 Foreclosure230 Rent LeaseEjectment

JURISDICTION (Place an X in one box only.). Federal Question (U.S.

Plaintiff overnment Not a Party)

2. U.S. Government 1] 4. Diversity (Indicate CitizenshipDefendant f Parties in Item III) Foreign Nation l 6

DEFEl 4

El


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UNITED ST, DISTRICT COURT, CENTRAL DISTRICT OF IFORNIACIVIL COVER SHEET

Your answers to the questions below will determine the division of the Court to which this case will most likely be initially assigned. This initial assignmen

Li Yes oSTATE CASE WAS P ENDING IN THE COUNTY OF: INITIAL DIVISION IN CACD IS'

Li Los Angeles Westernno, go to Question B. If yes, check the Li Ventura, Santa Barbara, or San Luis Obispo Western

Li Orange Southern111 Riverside or San Bernardino Eastern

If the United States, or one of its agencies or employees, is a party, is it:INITIAL

DIVISION INCACD IS

A PLAINTIFF?Then check the box below for the county inwhich the majority of DEFENDANTS reside.

A DEFENDANT?Then check the box below for the county inwhich the majority of P LAINTIFFS reside.

Li Yes Nono, go to Question C. If yes, check the Li Los Angeles Li Los Angeles Western

Ventura, Santa Barbara, or San LuisObispo

Ventura, Santa Barbara, or San LuisObispo Western

Li Orange Li Orange SouthernRiverside or San Bernardino Li Riverside or San Bernardino Eastern

Li Other Li Other WesternQuestion C: Location of _ Los Angeles

CountyVentura, Santa Barbara, or- San Luis Obispo Counties

C.Orange Countyi

D.Riverside or SanBernardino Counties '

E.Outside the CentralDistrict of California

F.Other

plaintiffs reside:

rd

following true? If so, check theC

and no answers

be assignedDIVISION.to Question

question C2

one that applies:

in Column D

to theD, below.

to the

C.2. Is either of the following true? If so, check the one that applies:2 or more answers in Column Donly 1 answer in Column D and no answers in Column C

Your case will initially be assigned to theEASTERN DIVISION.Enter Eastern in response to Question D, below.If none applies, go to the box below.

2 or more answers in ColumnLi only 1 answer in Column C

Your case will initiallySOUTHERN

Enter Southern in responseIf none applies, answer right.

Your case will initially be assigned to theWESTERN DIVISION.

Enter 'Western in response to Question D below.

INITIAL DIVISION IN CACD

SOUTHERNhe initial division determined by Question A, B, or C above:

1 (11113) CIVIL COVER SHEET Page 2 of 3American LegaiNet, Inc.www FormsWorkFlow com


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UNITED ST. S DISTRICT COURT, CENTRAL DISTRICT OF IFORNIACIVIL COVER SHEETHas this action been previously filed in this court and dismissed, remanded or closed? NO ll YES

If yes, list case number(s):

Have any cases been previously filed in this court that are related to the present case? i NOYESSACV10-1954 JVS (RNBx); SACV13-01272 JVS (RNBx); SACV13-01301 JVS (RNBx); andIf yes, list case number(s): SACV13-01302 JVS (RNBx)

Civil cases are deemed related if a previously filed case and the present case:

(Check all boxes that apply) El A. Arise from the same or closely related transactions, happenings, or events; orB. Call for determination of the same or substantially related or similar questions of law and fact; orC. For other reasons would entail substantial duplication of labor if heard by different judges; or

L D. Involve the same patent, trademark or copyright and one of the factors identified above in a, b or c also is present.

DATE: December 4, 2013Ronald inesCV-71 (JS-44) Civil Cover Sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or

Nature of Suit Code Abbreviation ubstantive Statement of Cause of ActionAll claims for health insurance benefits (Medicare) under Title 18, Part A, of the Social Security Act, as amended. Also,861 IA nclude claims by hospitals, skilled nursing facilities, etc., for certification as providers of services under the program.(42 U.S.C, 1935FF(b))

862 L ll claims for Black Lung benefits under Title 4, Part B, of the Federal Coal Mne Health and Safety Act of 1969. (30 U.S.C.923)All claims filed by insured workers for disability insurance benefits under Title 2 of the Social Security Act, as amended; plus863 IWC ll claims filed for child's insurance benefits based on disability. (42 U.S.C. 405 (g))All claims filed for widows or widowers insurance benefits based on disability under Title 2 of the Social Security Act, as863 IVVW mended. (42 U.S.C, 405 (g))

864 SID ll claims for supplemental security income payments based upon disability filed under Title 16 of the Social Security Act, aamended.865 SI ll claims for retirement (old age) and survivors benefits under Title 2 of the Social Security Act, as amended.(42 U.S.C. 405 (g))

IVIL COVER SHEET age 3 of 3

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HID Global et. al. v. Soundcraft et. al.

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