Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 1 of 41
`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 1 of 41
`
` 
`AKERMAN LLP
`      
`Michael L. Gallion (State Bar No. 189128)
`
`michael.galli0n@akerman. com
`      
`David Van Pelt (State Bar No. 163690)
`
`david.vanpelt@akerman.com
`      
`Kanika D. Corley (State Bar No. 223607)
`
`kanika.corley@akerman.com
`     
`601 West Fifth Street, Suite 300
`   
`Los Angeles, CA 90071
`  
`Telephone: (213) 688-9500
`  
`Facsimile: (213) 627-6342
`
`  
`Attorneys for Plaintiffs
`      
`GA TELESIS, LLC and CONSTANT AVIATION, LLC
`
`   
`UNITED STATES DISTRICT COURT
`
`       
`NORTHERN DISTRICT OF CALIFORNIA - SAN FRANCISCO DIVISION
`
`     
`GA TELESIS, LLC, a Delaware limited
`   
`liability corporation, and CONSTANT
`    
`AVIATION, LLC, a Delaware limited
` 
`liability company,
`
`
`Plaintiffs,
`
`
`V.
`
`   
`SALESFORCE.COM, INC., a Delaware
`    
`corporation, and DOES l-lO, inclusive,
`
`
`Defendants.
`
` 
`CASE NO.
`
`
`2.
`
` 
`COMPLAINT FOR:
`
`  
`1.
`VIOLATION OF DEFEND
`  
`TRADE SECRETS ACT
` 
`VIOLATION OF
` 
`CALIFORNIA UNIFORM
`  
`TRADE SECRET ACT
`  
`BREACH OF CONTRACT
`  
`BREACH OF CONTRACT
` 
`UNFAIR COMPETITION
`  
`UNDER LANHAM ACT
`
`§43(a)
`
`
`3.
`
`4.
`
`5.
`
`
`
`   
`DEMAND FOR JURY TRIAL
`
`
`601WESTFIFTHSTREET.SUITE300LOSANGELES,
`
`
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`CALIFORNIA
`
`
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`
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`
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`
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`
`
`90071TEL:(213)688-9500—FAX:(213)627-6342
`
`\IQKII-lkUJNl—‘OOOOflQUl-hUJNI—‘O
`
`        
`
`\OOO\IO\Ul-I>UJNl—‘
`
`
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`
`
`
`
`
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`
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`
`
`
`
`
`AKERMANLLP
`
`NNNNNNNNl—‘l—‘D—‘D—‘D—‘D—KD—KD—KD—KD—K
`
`
`
`
`
`
`
`
`
`
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`
`
`
`
`
`
`
`
`
`
`
`N 00
`
`56018798;1
`
`
`COMPLAINT BY GA TELESIS, LLC AND CONSTANT AVIATION, LLC
`        
`
`CASE NO.
` 
`
`

`

`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 2 of 41
`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 2 of 41
`
`  
`TABLE OF CONTENTS
`
`
`I.
`
`
`II.
`
`
`III.
`
`
`IV.
`
` 
`INTRODUCTION ........................................................................................... 1
`
` 
`PARTIES ......................................................................................................... 3
`
`    
`JURISDICTION, VENUE & INTRADISTRICT ASSIGNMENT ................ 4
`
` 
`FACTUAL ALLEGATIONS .......................................................................... 5
`
`
`A.
`
`      
`Scope of Defendant’s Business and Self-Identified Market
`
` 
`Challenges ............................................................................................. 5
`
`      
`GA Telesis and its Agreements with Defendant ................................... 6
`
`       
`Constant Aviation and Its Agreement with Defendant ....................... 1 1
`
`   
`Defendant Creates “Use Cases” .......................................................... 13
`
`
`B.
`
`
`C.
`
`
`D.
`
`
`1)
`
`
`2)
`
`   
`“Constant Aviation Use Case” .................................................. 14
`
`       
`“GA Telesis and Constant Aviation Use Cases” ...................... 15
`
`         
`COUNT I - VIOLATION OF DEFEND TRADE SECRETS ACT ....................... 18
`
`          
`COUNT II - VIOLATION OF CAL. UNIFORM TRADE SECRET ACT ........... 21
`
`      
`COUNT III - BREACH OF CONTRACT .............................................................. 24
`
`      
`COUNT IV - BREACH OF CONTRACT .............................................................. 29
`
`     
`COUNT V - UNFAIR COMPETITION ................................................................. 32
`
`   
`PRAYER FOR RELIEF .......................................................................................... 38
`
`    
`DEMAND FOR JURY TRIAL ............................................................................... 39
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`COMPLAINT BY GA TELESIS, LLC AND CONSTANT AVIATION, LLC
`        
`
`56018798;1
`
`
`

`

`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 3 of 41
`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 3 of 41
`
`         
`Plaintiffs GA Telesis, LLC (“GA Telesis”) and Constant Aviation, LLC
`
`          
`(“Constant”) (GA Telesis and Constant collectively “Plaintiffs”), by and through their
`
`
`attorneys,
`
` 
`and for
`
` 
`their Complaint
`
`  
`against Defendant Salesforce.com,
`
`
`Inc.
`
`    
`(“Defendant”), hereby allege as follows:
`
`
`I.
`
`
`INTRODUCTION
`
`1.
`
`
`         
`Pursuant to the terms of Defendant’s Master Subscription Agreement1 and
`
`        
`the Non-Disclosure Agreements (collectively, the “Agreements”), Defendant agrees to
`
`            
`protect the confidential and proprietary information of its clients, and further agrees not
`
`           
`to provide its clients’ confidential and proprietary information to any third-party, unless
`
`           
`compelled by law or unless authorized by its clients to do so.2
`
`
`2.
`
`        
`Notwithstanding the express terms of the Agreements, Defendant has
`
`            
`engaged in the unfair and deceptive business practice of taking its clients’ confidential
`
`        
`and proprietary information, manipulating that information, creating inaccurate “use
`
`            
`cases” and then giving to third-parties and other potential purchasers those “use cases”
`
`             
`on which they rely to make purchasing decisions. Defendant gives the “use cases” to
`
`             
`third parties and other potential purchasers as a means of demonstrating for them the
`
`         
`purported “successful” implementation of Defendant’s products and services as applied
`
`       
`to the businesses of others in similar industries.
`
`
`3.
`
`           
`Based on the experiences of these Plaintiffs, the “use cases” are being
`
`             
`presented in violation of the parties’ Agreements, they are being created and used in
`
`          
`contravention of Defendant’s clients’ intellectual property rights, and, the “use cases”
`
`       
`contain information that Defendant knows to be false.
`
`
`4.
`
`         
`Specifically, in some instances, the “use cases” state that Defendant’s
`
`             
`clients are using Defendant’s products and services that are not actually being used. In
`
`         
`1 See
`salesforce “Master Subscri
`tion A eement” Current version available at
`ht
`s://www.salesforce.com/conten dam/we /en us/www/documents/le al/salesforce
`
`MSApdf.
`
`      
`2 Master Subscription Agreement at Clause 2.2.
`—l—
`
`COMPLAINT BY GA TELESIS, LLC AND CONSTANT AVIATION, LLC
`        
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`56018798;l
`
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`601WESTFIFTHSTREET.SUITE300LOSANGELES,
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`CALIFORNIA
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`
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`
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`
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`AKERMANLLP
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`

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`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 4 of 41
`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 4 of 41
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`            
`other instances, the “use cases” state that the utilization of Defendant’s products and
`
`         
`services have been successfully implemented, leading to positive and quantifiable
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`    
`results, which is not true.
`
`
`5 .
`
`           
`In still other instances, the “use cases” contain the tradenames and logos
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`             
`of Defendant’s clients, which leads the recipient of the “use cases” to believe the
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`            
`information contained therein is not only accurate but that the disclosure of the
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`           
`information has been authorized, sponsored and/or endorsed, none of which is true.
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`
`6.
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`           
`In addition, some “use cases” also present trade secret information to third
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`           
`parties and potential purchasers of Defendant’s products and services absent the consent
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`      
`or authorization of the trade secret owner.
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`
`7.
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`         
`Since Defendant creates each “use case,” Defendant knows the false
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`          
`information contained therein and knows that Defendant lacks authorization to display
`
`        
`and transmit its clients’ information in the manner presented.
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`
`8.
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`        
`In furtherance of Defendant’s unfair and deceptive business practice,
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`              
`Defendant withholds from its clients the very existence of the “use cases.” As a result,
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`            
`at no time during the pendency of Defendant’s unfair and deceptive business practice
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`          
`could Defendant’s clients (including without limitation to these Plaintiffs) have known
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`         
`to protect themselves from Defendant’s improper and unauthorized disclosures of
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`     
`information and breaches of the Agreements.
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`
`9.
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`         
`Defendant’s conduct has been brazen, willful and malicious. Each time
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`           
`Defendant engages in these unfair and deceptive business practices, Defendant acts in
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`       
`callous disregard for the rights of its clients.
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`  
`10. Defendant’s
`conduct
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`    
`constitutes unlawful breaches of Plaintiffs’
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`           
`intellectual property rights, misappropriation of trade secret and breaches of the parties’
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`          
`written Agreements, each of which require Defendant not to disclose Plaintiffs’
`
`           
`confidential and proprietary information to any third-party unless compelled by law to
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`NNNNNNNNl—‘l—‘D—‘D—‘D—‘D—KD—KD—KD—KD—K
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`
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`90071TEL:(213)688-9500—FAX:(213)627-6342
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`
`
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`
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`AKERMANLLP
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`
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`
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`
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`
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`
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`
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`N 00
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`        
`do so or unless Defendant received Plaintiffs’ prior authorization.
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`/ / /
`///
`—2—
`
`COMPLAINT BY GA TELESIS, LLC AND CONSTANT AVIATION, LLC
`        
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`56018798;1
`
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`

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`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 5 of 41
`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 5 of 41
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`
`11.
`
`         
`In light of Defendant’s unexcused and unlawful conduct, Plaintiffs bring
`
`           
`this action to recover any actual losses sustained, reasonable royalties for Defendant’s
`
`        
`unauthorized uses of Plaintiffs’ confidential and proprietary information and
`
`          
`intellectual property, to recover Defendant’s profits and any other unjust enrichment,
`
`            
`for an order directing and enjoining — through a preliminary and permanent injunction
`
`            
`— Defendant from utilizing Plaintiffs’ property in the manner described herein, for an
`
`             
`order directing Defendant to file with the Court a certification under oath of compliance
`
`            
`with the injunction, for an order awarding exemplary and punitive damages, and to
`
`      
`recover attorneys’ fees and costs of suit.
`
`
`11.
`
`
`PARTIES
`
`
`12.
`
`          
`Plaintiff GA Telesis is a Delaware limited liability company with its
`
`             
`principal place of business in Fort Lauderdale, Florida. GA Telesis is a leader in
`
`           
`integrated aviation services. GA Telesis owns all of its copyrights, trademarks, patents,
`
`         
`trade secrets, proprietary and confidential information infringed or misappropriated by
`
`
`Defendant.
`
`
`13.
`
`          
`Plaintiff Constant is a Delaware limited liability company with its principal
`
`              
`place of business in Cleveland, Ohio. Constant is in the business of, among other things,
`
`           
`providing service and parts to maintain, repair and overhaul business and general
`
`           
`aviation aircraft and engines. Constant owns all of its copyrights, trademarks, patents,
`
`         
`trade secrets, proprietary and confidential information infringed or misappropriated by
`
`           
`Defendant. Constant is an affiliated business of Flexjet, LLC, a Delaware limited
`
`            
`liability company and Sentient Jet, LLC, a Delaware limited liability company, both of
`
`           
`which (in addition to Constant) are signatories of a Salesforce Master Subscription
`
`
`Agreement.
`
`   
`14. Defendant Salesforce.com,
`Inc.,
`
`     
`is a Delaware corporation with its
`
`       
`principal place of business in San Francisco, California.
`
`        
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`
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`
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`
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`
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`
`
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`LOSANGELES,CALIFORNIA
`
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`90071TEL:(213)688-9500—FAX:(213)627-6342
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`
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`
`
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`601WESTFIFTHSTREET.SUITE300
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`
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`AKERMANLLP
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`
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`
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`
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`
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`
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`
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`
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`
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`28
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`  
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`///
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`+ C
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`
`OMPLAINT BY GA TELESIS, LLC AND CONSTANT AVIATION, LLC
`        
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`56018798;l
`
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`

`

`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 6 of 41
`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 6 of 41
`
`
`15.
`
`          
`Plaintiffs are presently unaware of the true names and capacities, whether
`
`            
`individual, associate, corporate or otherwise of Defendant DOES 1 through 10, or any
`
`              
`of them, and therefore sue them by such fictitious names. Plaintiffs will seek leave to
`
`             
`amend this Complaint to show the true names and capacities of such fictitiously named
`
`            
`Defendants when the same has been ascertained. Plaintiffs are informed and believe and
`
`            
`thereon allege that each of the Defendants designated herein as DOE is legally
`
`             
`responsible in some manner for the acts, omissions and events alleged herein and has
`
`         
`proximately caused damages and injury to Plaintiffs as herein alleged.
`
`
`16.
`
`           
`Plaintiffs are informed and believe and based thereon allege, that at all
`
`             
`times herein mentioned, each defendant named herein as DOES 1 through 10, was and
`
`            
`now is the agent, servant, employee, representative and/or alter ego of Defendant and,
`
`               
`in doing the things hereinafter mentioned, was acting within the scope of his, her or its
`
`          
`authority as such agent, servant, employee and/or representative with the permission
`
`   
`and consent of Defendant.
`
`
`17.
`
`          
`The information contained in this Complaint, and presented on behalf of
`
`              
`GA Telesis and Constant, demonstrates the existence of a right to relief that arises out
`
`              
`of the same transaction or occurrence where a single common question of law and fact
`
`        
`exists. Therefore, Plaintiffs jointly bring this action against Defendant.
`
`
`III.
`
`    
`JURISDICTION, VENUE & INTRADISTRICT ASSIGNMENT
`
`
`18.
`
`          
`This Court has subject matter jurisdiction over the federal trade secret
`
`                
`claim pursuant to 18 U.S.C. § 1836 et seq. and 28 U.S.C. §§ 1331. This Court has
`
`           
`jurisdiction over the unfair competition claim brought under the Lanham Act pursuant
`
`             
`to 28 U.S.C.A. § 1338(a). This Court has supplemental jurisdiction over the state law
`
`          
`claims alleged in this Complaint pursuant to 28 U.S.C. § 1367.
`
`            
`19. As set forth above, the named Defendant resides in this Judicial District.
`
`               
`In addition, a substantial part of the events or omissions giving rise to the claims alleged
`
`           
`in this Complaint occurred in this Judicial District. Moreover, the operative agreements
`
`/ / /
`///
`@—
`
`COMPLAINT BY GA TELESIS, LLC AND CONSTANT AVIATION, LLC
`        
`
`56018798;l
`
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`        
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`1—t1—t1—t1—t1—t1—t1—t
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`
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`LOSANGELES,CALIFORNIA
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`90071TEL:(213)688-9500—FAX:(213)627-6342
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`
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`22
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`23
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`24
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`
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`601WESTFIFTHSTREET.SUITE300
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`
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`AKERMANLLP
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`

`

`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 7 of 41
`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 7 of 41
`
`            
`between the parties expressly require that any litigation that ensues occur within San
`
`            
`Francisco, California. Venue therefore lies in the United States District Court for the
`
`           
`Northern District of California pursuant to 28 U.S.C. §§ l39l(b)(l) and (2).
`
`              
`20. A substantial part of the events giving rise to the claims alleged in this
`
`            
`Complaint occurred in the City and County of San Francisco. For purposes of
`
`          
`intradistrict assignment under Civil Local Rules 3-2(c) and 3-5(b), this Intellectual
`
`        
`Property Action will be assigned on a districtwide basis.
`
`  
`IV.
`FACTUAL ALLEGATIONS
`
`
`A.
`
`       
`Scope of Defendant’s Business and Self-Identified Market Challenges
`
`        
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`\OOO\IO\Ul-I>UJNl—‘
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`
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`          
`21. According to Defendant’s Form 10-K filing,3 Defendant is a leading
`
`
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`
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`90071TEL:(213)688-9500—FAX:(213)627-6342
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`
`
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`
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`AKERMANLLP
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`           
`provider of enterprise cloud computing solutions, with a focus on customer relationship
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`          
`management, or CRM. Defendant’s mission is to help its customers transform
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`          
`themselves into customer-centric companies by empowering them to connect with their
`
`           
`customers in entirely new ways. Defendant describes its strategic objective as delivering
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`           
`solutions that transform how companies sell, service, market and innovate to connect
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`       
`with their customers in a whole new way.4
`
`           
`22. Within its lO-K flling, Defendant reports that the market for enterprise
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`          
`applications and platform services is highly and intensely competitive, rapidly evolving
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`           
`and fragmented, and subject to changing technology, low barriers to entry, shifting
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`          
`customer needs and frequent introductions of new products and services. Defendant
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`         
`competes primarily with generalized platforms and vendors of packaged business
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`          
`software, as well as companies offering enterprise apps, including CRM, collaboration
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`         
`and business intelligence software. Defendant also competes with internally developed
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`           
`3 salesforce.com, inc., Annual Report (Form lO-K) (Fiscal year ended January 31,
`  
`2016) avallable at,
`ht
`s://www.sec. ov/Archives/ed ar/data/l108524/000110852416000053/crm-
`
`2Iii513lX10Ehtm; see also, Annual Reportfiursuant to Sectlon 13 or 15ng of the
`            
`            
`Secur1t1es ExcEan e Act of 1934 (Form 10-
`F1scal year ended January 1, 2020),
`  
`avallable at, httjps: /sec.report/Document/000 l 8524- 0-000014/.
` 
`4 Id.
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`+ C
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`OMPLAINT BY GA TELESIS, LLC AND CONSTANT AVIATION, LLC
`        
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`601WESTFIFTHSTREET.SUITE300LOSANGELES,
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`CALIFORNIA
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`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 8 of 41
`Case 3:21-cv-02701 Document 1 Filed 04/15/21 Page 8 of 41
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`          
`apps and Defendant faces competition from established software vendors who may
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`              
`develop toolsets and products that allow customers to build new apps that run on the
`
`      
`customers’ current infrastructure or as hosted services.5
`
`          
`23. Defendant acknowledges that many of its current and potential competitors
`
`         
`enjoy substantial competitive advantages, such as greater name recognition, longer
`
`         
`operating histories, significant installed bases, broader geographic scope and larger
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`          
`marketing budgets, as well as substantially greater financial,
`technical and other
`
`          
`resources. In addition, many of Defendant’s current and potential competitors have
`
`           
`established marketing relationships and access to larger customer bases, and have major
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`        
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`\OOO\IO\Ul-I>UJNl—‘
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`
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`         
`distribution agreements with consultants, system integrators and resellers. In addition,
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`
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`         
`Defendant experiences competition from smaller, younger competitors that may be
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`           
`more agile in responding to customers' demands. As a result, Defendant’s competitors
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`