Case 2:19-cv-10604 Document 1 Filed 12/16/19 Page 1 of 14 Page ID #:1
`
`Nathaniel L. Dilger (Bar No. 196203)
`Email: ndilger@onellp.com
`Deepali A. Brahmbhatt (Bar No. 255646)
`Email: dbrahmbhatt@onellp.com
`ONE LLP
`4000 MacArthur Boulevard
`East Tower, Suite 500
`Newport Beach, CA 92660
`Telephone: (949) 502-2870
`Facsimile:
`(949) 258-5081
`John E. Lord (Bar No. 216111)
`Email: jlord@onellp.com
`ONE LLP
`9301 Wilshire Boulevard
`Penthouse Suite
`Beverly Hills, CA 92660
`Telephone: (310) 866-5157
`Facsimile:
`(310) 943-2085
`Attorneys for Plaintiff,
`THROOP, LLC
`
`UNITED STATES DISTRICT COURT
`CENTRAL DISTRICT OF CALIFORNIA
`WESTERN DIVISION
`
`THROOP, LLC, a California limited
`liability company,
`Plaintiff,
`
`v.
`MICROSOFT CORPORATION, a
`Washington corporation,
`Defendant.
`
`Case No. 2:19-cv-10604
`COMPLAINT FOR PATENT
`INFRINGEMENT
`DEMAND FOR JURY TRIAL
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`COMPLAINT
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`

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`Case 2:19-cv-10604 Document 1 Filed 12/16/19 Page 2 of 14 Page ID #:2
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`Plaintiff Throop, LLC (“Throop” or “Plaintiff”) hereby alleges for its
`Complaint for Patent Infringement against Microsoft Corporation (“Microsoft” or
`“Defendant”) the following:
`NATURE OF THE ACTION
`I.
`This is an action for patent infringement of United States Patent Nos.
`1.
`7,035,897 (the “’897 Patent”) and 9,479,726 (the “’726 Patent”) (collectively, the
`“Patents-in-Suit”) arising under the Patent Laws of the United States, 35 U.S.C. § 1,
`et seq., seeking damages and other relief under 35 U.S.C. § 281, et seq.
`II. THE PARTIES
`Throop is a California limited liability company having a principal
`2.
`place of business at 3580 Wilshire Blvd., Ste. 1460, Los Angeles, CA 90010.
`Defendant Microsoft Corporation is a corporation organized under the
`3.
`laws of Washington with its principal place of business located at One Microsoft
`Way, Redmond, WA 98052. Microsoft’s registered agent for Service of Process is
`located at Corporation Service Company, d/b/a CSC – Lawyering Incorporating
`Service, 2710 Gateway Oaks Drive, Suite 150N, Sacramento, CA 95833.
`III. JURISDICTION AND VENUE
`This is an action for patent infringement arising under the provisions of
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`the Patent Laws of the United States of America, Title 35, United States Code.
`This Court has subject matter jurisdiction over Throop’s claims under
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`28 U.S.C. §§ 1331 and 1338(a).
`This Court has personal jurisdiction over Defendant in this action
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`because Defendant has committed acts within the Central District of California
`giving rise to this action and has established minimum contacts with this forum such
`that the exercise of jurisdiction over the Defendant would not offend traditional
`notions of fair play and substantial justice. The Defendant, directly and through
`subsidiaries or intermediaries, has committed and continues to commit acts of
`
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`1
`COMPLAINT
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`Case 2:19-cv-10604 Document 1 Filed 12/16/19 Page 3 of 14 Page ID #:3
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`infringement in this District by, among other things, offering to sell and selling
`products and/or services that infringe the asserted patents.
`Venue is proper in this judicial district pursuant to 28 U.S.C. § 1391(b),
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`(c) and/or 28 U.S.C. § 1400(b). Defendant transacts business within this District
`and offers for sale in this District products that infringe the Patents-in-Suit.
`Defendant is registered to do business in California. Defendant has a regular and
`established place of business in Central District of California. For example,
`Defendant has offices located at 13031 W Jefferson Blvd., #200, Los Angeles, CA
`90094.
`
`IV. THROOP’S PATENTS-IN-SUIT
`On April 25, 2006, the ’897 Patent, entitled “Wireless Augmented
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`Reality Communication System,” was duly and legally issued by the United States
`Patent and Trademark Office. A true and correct copy of the ’897 Patent is attached
`as Exhibit A.
`On October 25, 2016, the ’726 Patent, entitled “Wireless Augmented
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`Reality Communication System,” was duly and legally issued by the United States
`Patent and Trademark Office. A true and correct copy of the ’726 Patent is attached
`as Exhibit B.
`The inventors listed on the Patents-in-Suit were all engineers who
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`worked at NASA’s Jet Propulsion Laboratory. Founded by Caltech faculty, NASA's
`Jet Propulsion Laboratory is the leading U.S. center for the robotic exploration of
`the solar system.
`The ’897 Patent has been cited by twenty-four issued United States
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`patents as relevant prior art.
`Throop is the owner of the Patents-in-Suit asserted in this action and
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`has the exclusive right to sue and collect remedies for past, present, and future
`infringement of the Patents-in-Suit.
`//
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`Case 2:19-cv-10604 Document 1 Filed 12/16/19 Page 4 of 14 Page ID #:4
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`V. ACCUSED PRODUCTS AND/OR SERVICES
`Defendant manufactures, provides, uses, sells, offers for sale, imports,
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`and/or distributes infringing services for wearable devices, including, for example,
`Microsoft HoloLens (collectively, “Accused Products and/or Services”).
`The Accused Products and/or Services offer the benefits of Plaintiff’s
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`technology by, for example, incorporating a highly integrated radio communication
`system allowing for true two-way multimedia access via a wearable device.
`Defendant has had knowledge of the ’726 Patent and its infringement
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`since at least the filing of the Original Complaint in this action, or shortly thereafter,
`including by way of this lawsuit. Defendant has had notice and/or knowledge of the
`’897 Patent and its infringement since at least December 2010, or shortly thereafter,
`when Microsoft Corporation cited the ’897 Patent on an Information Disclosure
`Statement on its own patent application (Application No. 12/969,148) that led to
`issued U.S. Patent No. 8,898,310.
`COUNT I: INFRINGEMENT OF U.S. PATENT NO. 7,035,897
`Throop reasserts and incorporates herein by reference the allegations of
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`all preceding paragraphs of this Complaint as if fully set forth herein.
`Defendant has infringed and continue to infringe at least claim 1 and
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`one or more of its dependents of the ’897 Patent under 35 U.S.C. § 271(a), literally
`or under the doctrine of equivalents, by making, using, selling, and/or offering for
`sale in the United States, and/or importing into the United States, the Accused
`Products and/or Services.
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`Case 2:19-cv-10604 Document 1 Filed 12/16/19 Page 5 of 14 Page ID #:5
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`For example, the Accused Products and/or Services meet all of the
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`claim limitations of claim 1 of the ’897 Patent, set forth below with claim language
`in italics. To the extent the preamble is limiting, the Accused Products and/or
`Services include [a] mobile access unit for use in a localized communications
`system.
`
`
`https://www.microsoft.com/en-us/hololens#
`The Accused Products and/or Services include a video input configured
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`to receive real-time video information; a video output configured to provide real-
`time video information; a wearable display connected to the video output; a codec
`connected to the video input and video output; and a transceiver.
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`COMPLAINT
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`Case 2:19-cv-10604 Document 1 Filed 12/16/19 Page 6 of 14 Page ID #:6
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`https://www.microsoft.com/en-us/hololens#
`
`https://www.microsoft.com/en-us/hololens/hardware
`The Accused Products and/or Services include a transmitter connected
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`to the codec that is configured to transmit a data stream provided by the codec over
`an upstream wireless communication link; and a receiver connected to the codec
`that is configured to receive a data stream transmitted over a downstream wireless
`communication link, which includes encoded real-time video.
`
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`https://www.microsoft.com/en-us/hololens/apps
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`WiFi
`802.11ac 2x2
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`Bluetooth
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`USB
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`Case 2:19-cv-10604 Document 1 Filed 12/16/19 Page 7 of 14 Page ID #:7
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`USB Type-C
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`https://www.microsoft.com/en-us/hololens/hardware
`The Accused Products and/or Services include wherein the codec is
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`configured to: encode real-time video information received from the video input;
`and multiplex the encoded real-time video with other data to generate the data
`stream provided by the codec to the transmitter; and wherein the codec is also
`configured to: demultiplex the encoded real-time video from the data stream
`provided to the codec by the receiver; and decode the encoded real-time video
`information and provide the decoded real-time video information to the video
`output.
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`Case 2:19-cv-10604 Document 1 Filed 12/16/19 Page 8 of 14 Page ID #:8
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`https://www.youtube.com/watch?v=4QiGYtd3qNI
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`Defendant has committed acts of infringement without license or
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`authorization. Defendant knew or should have known that its actions would cause
`direct and indirect infringement of the ’897 Patent. On information and belief,
`Defendant acted with objective recklessness by proceeding despite an objective high
`likelihood that its actions constituted infringement of a valid patent.
`Defendant is also liable under 35 U.S.C. § 271(b) for actively inducing
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`infringement and continuing to actively induce infringement. Defendant actively
`induces and continues to induce its customers, distributors, end-users, vendors
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`COMPLAINT
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`Case 2:19-cv-10604 Document 1 Filed 12/16/19 Page 9 of 14 Page ID #:9
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`including customer-support and/or manufacturers to infringe the ’897 Patent. On
`information and belief, Defendant possessed a specific intent to induce
`infringement, and in fact did induce infringement, by engaging in affirmative acts
`such as by selling and causing the Accused Products and/or Services to be
`manufactured, by providing user guides, installation or instruction manuals, and
`other training materials, by advertising and solicitation and otherwise providing
`sales-related materials, and by instructing and/or demonstrating to customers,
`distributers, end-users, vendors including customer-support and/or manufacturers
`the normal operation of the Accused Products and/or Services that infringe the ’897
`Patent. Defendant is aware and/or willfully blind that these affirmative acts infringe
`and/or would induce infringement of the ’897 Patent, of which it had knowledge.
`Defendant is also liable under 35 U.S.C. § 271(c) for contributing to
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`and continuing to contribute to the infringement of the ’897 Patent by, among other
`things, providing seamless external storage capability that operates as internal
`storage in its Accused Products and/or Services and by encouraging, at a minimum,
`customers, distributors, end-users, vendors including customer-support and/or
`manufacturers in this District and elsewhere, to infringe the ’897 Patent. By
`importing, exporting, manufacturing, distributing, selling, and/or providing the
`Accused Products and/or Services for their intended use to customers, distributors,
`end-users, vendors including customer-support and/or manufacturers, Defendant
`has, in the past and continue to contribute to the infringement of one or more claims
`of the ’897 Patent. The Accused Products and/or Services are material to the
`inventions claimed in the ’897 Patent, has no substantial non-infringing uses, and
`are known by Defendant (on information and belief) to be especially made or
`especially adapted for use in infringing the ’897 Patent, and which are otherwise not
`staple articles of commerce suitable for substantial non-infringing use. Defendant
`are aware and/or willfully blind that these affirmative acts infringe and/or constitute
`contributory infringement of the ’897 Patent, of which it had knowledge.
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`Case 2:19-cv-10604 Document 1 Filed 12/16/19 Page 10 of 14 Page ID #:10
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`Defendant is liable for indirect infringement, i.e., both inducement and
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`contributory infringement, based on the direct infringement that is the result of
`activities performed by customers, distributors, end-users, vendors including
`customer-support and/or manufacturers who use all elements or perform all steps of
`one or more claims of the ’897 Patent. For example, end users of Defendant’s
`Accused Products and/or Services infringe, either directly or under the doctrine of
`equivalents, one or more claims of the ’897 Patent (e.g., claim 1 and one or more of
`its dependents). At a minimum, Defendant is liable for the indirect infringement of
`claim 1 and one or more of its dependents of the ’897 Patent.
`Defendant will continue to infringe unless this Court enjoins Defendant
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`and its agents, servants, employees, representatives and all others acting in active
`concert with it from infringing the ’897 Patent.
`Plaintiff has been damaged as a result of Defendant’s infringing
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`conduct. Defendant is, thus, liable to Plaintiff in an amount that adequately
`compensates Plaintiff for Defendant’s infringement, which, by law, cannot be less
`than a reasonable royalty, together with interest and costs as fixed by this Court
`under 35 U.S.C. § 284.
`COUNT II: INFRINGEMENT OF U.S. PATENT NO. 9,479,726
`Throop reasserts and incorporates herein by reference the allegations of
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`all preceding paragraphs of this Complaint as if fully set forth herein.
`Defendant has infringed and continues to infringe at least claims 1, 25
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`and one or more of its dependents of the ’726 Patent under 35 U.S.C. § 271(a),
`literally or under the doctrine of equivalents, by making, using, selling, and/or
`offering for sale in the United States, and/or importing into the United States, the
`Accused Products and/or Services.
`Defendant has committed acts of infringement without license or
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`authorization. Defendant knew or should have known that its actions would cause
`direct and indirect infringement of the ’726 Patent. On information and belief,
`
`9
`COMPLAINT
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`Case 2:19-cv-10604 Document 1 Filed 12/16/19 Page 11 of 14 Page ID #:11
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`Defendant acted with objective recklessness by proceeding despite an objective high
`likelihood that its actions constituted infringement of a valid patent.
`Defendant is also liable under 35 U.S.C. § 271(b) for actively inducing
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`infringement and continuing to actively induce infringement. Defendant actively
`induces and continues to induce its customers, distributors, end-users, vendors
`including customer-support and/or manufacturers to infringe the ’726 Patent. On
`information and belief, Defendant possessed a specific intent to induce
`infringement, and in fact did induce infringement, by engaging in affirmative acts
`such as by selling and causing the Accused Products and/or Services to be
`manufactured, by providing user guides, installation or instruction manuals, and
`other training materials, by advertising and solicitation and otherwise providing
`sales-related materials, and by instructing and/or demonstrating to customers,
`distributers, end-users, vendors including customer-support and/or manufacturers
`the normal operation of the Accused Products and/or Services that infringe the ’897
`Patent. Defendant is aware and/or willfully blind that these affirmative acts infringe
`and/or would induce infringement of the ’726 Patent, of which it had knowledge.
`Defendant is also liable under 35 U.S.C. § 271(c) for contributing to
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`and continuing to contribute to the infringement of the ’726 Patent by, among other
`things, providing seamless external storage capability that operates as internal
`storage in its Accused Products and/or Services and by encouraging, at a minimum,
`customers, distributors, end-users, vendors including customer-support and/or
`manufacturers in this District and elsewhere, to infringe the ’726 Patent. By
`importing, exporting, manufacturing, distributing, selling, and/or providing the
`Accused Products and/or Services for their intended use to customers, distributors,
`end-users, vendors including customer-support and/or manufacturers, Defendant
`has, in the past and continue to contribute to the infringement of one or more claims
`of the ’726 Patent. The Accused Products and/or Services are material to the
`inventions claimed in the ’726 Patent, has no substantial non-infringing uses, and
`
`10
`COMPLAINT
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`Case 2:19-cv-10604 Document 1 Filed 12/16/19 Page 12 of 14 Page ID #:12
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`are known by Defendant (on information and belief) to be especially made or
`especially adapted for use in infringing the ’726 Patent, and which are otherwise not
`staple articles of commerce suitable for substantial non-infringing use. Defendant is
`aware and/or willfully blind that these affirmative acts infringe and/or constitute
`contributory infringement of the ’726 Patent, of which it had knowledge.
`Defendant is liable for indirect infringement, i.e., both inducement and
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`contributory infringement, based on the direct infringement that is the result of
`activities performed by customers, distributors, end-users, vendors including
`customer-support and/or manufacturers who use all elements or perform all steps of
`one or more claims of the ’726 Patent. For example, end users of Defendant’s
`Accused Products and/or Services infringe, either directly or under the doctrine of
`equivalents, one or more claims of the ’726 Patent (e.g., claims 1, 25 and one or
`more of its dependents). At a minimum, Defendant is liable for the indirect
`infringement of claims 1, 25 and one or more of its dependents of the ’726 Patent.
`Defendant will continue to infringe unless this Court enjoins Defendant
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`and its agents, servants, employees, representatives and all others acting in active
`concert with it from infringing the ’726 Patent.
`Plaintiff has been damaged as a result of Defendant’s infringing
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`conduct. Defendant is, thus, liable to Plaintiff in an amount that adequately
`compensates Plaintiff for Defendant’s infringement, which, by law, cannot be less
`than a reasonable royalty, together with interest and costs as fixed by this Court
`under 35 U.S.C. § 284.
`
`PRAYER FOR RELIEF
`WHEREFORE, Plaintiff respectfully requests the following relief:
`A judgment that Defendant has infringed the Patents-in-Suit;
`a)
`b)
`An injunction barring Defendant and its officers, directors, agents,
`servants, employees, affiliates, attorneys, and all others acting in privity or in
`concert with them, and their parents, subsidiaries, divisions, successors and assigns,
`
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`Case 2:19-cv-10604 Document 1 Filed 12/16/19 Page 13 of 14 Page ID #:13
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`from further acts of infringement of the Patents-in-Suit; alternatively, a judicial
`decree that Defendant pay an ongoing royalty in an amount to be determined for
`continued infringement after the date of judgment;
`c)
`An award of damages adequate to compensate for Defendant’s
`infringement of the Patents-in-Suit, and in no event less than a reasonable royalty
`for Defendant’s acts of infringement, including all pre-judgment and post-judgment
`interest at the maximum rate permitted by law;
`d)
`An award of trebled damages under 35 U.S.C. § 284;
`e)
`A declaration that this case is exceptional under 35 U.S.C. § 285; and
`An award of Plaintiff’s costs and attorney’s fees under 35 U.S.C. § 285
`f)
`and other applicable law; and any other remedy to which Plaintiff may be entitled.
`
`Dated: December 16, 2019
`
`ONE LLP
`
`By: /s/ Nathaniel L. Dilger
`Nathaniel L. Dilger
`Deepali A. Brahmbhatt
`John E. Lord
`
`Attorneys for Plaintiff,
`Throop, LLC
`
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`COMPLAINT
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`Case 2:19-cv-10604 Document 1 Filed 12/16/19 Page 14 of 14 Page ID #:14
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`DEMAND FOR JURY TRIAL
`Throop demands trial by jury on all claims and issues so triable.
`
`Dated: December 16, 2019
`
`ONE LLP
`
`By: /s/ Nathaniel L. Dilger
`Nathaniel L. Dilger
`Deepali A. Brahmbhatt
`John E. Lord
`
`Attorneys for Plaintiff,
`Throop, LLC
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`COMPLAINT
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