throbber
Case 1:23-cv-00278-MN Document 1 Filed 03/15/23 Page 1 of 19 PageID #: 1
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`UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELAWARE
`
`PAYRANGE INC.,
`
`Plaintiff,
`
`v.
`
`CSC SERVICEWORKS, INC.,
`
`Defendant.
`
`Civil Action No.: ____________
`
`JURY TRIAL DEMANDED
`
`COMPLAINT FOR PATENT INFRINGEMENT
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`1.
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`Plaintiff PayRange Inc. (“PayRange”) hereby alleges as follows for its Complaint
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`against Defendant CSC ServiceWorks, Inc. (“CSC”).
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`FACTUAL BACKGROUND
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`2.
`
`This case is about two companies: PayRange, which pioneered a mobile payment
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`system for unattended retail machines through its patented technology and, CSC, which strung
`
`PayRange along with promises of a partnership all the while copying PayRange’s technology. In
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`doing so, CSC willfully infringed PayRange’s patent rights.
`
`3.
`
`As background, PayRange’s acclaimed technology enables its customers to
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`upgrade a coin-operated unattended retail machine into a state-of-the-art mobile payment
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`solution with a small module, called “BluKey.” PayRange’s mobile app communicates with
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`BluKey to enable mobile transactions. The United States Patent & Trademark Office (“USPTO”)
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`awarded PayRange a portfolio of patents for its innovations.
`
`4.
`
`In 2013, a private entity firm (Pamplona Capital Management, LLP) acquired and
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`merged two companies: Coinmach Service Corporation and AIR-serv Group. From this merger,
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`CSC was formed as the preeminent owner, nationwide, of coin-operated laundry machines,
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`which are leased to apartment complexes and hotels for use by occupants. The Ontario Teacher’s
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`Case 1:23-cv-00278-MN Document 1 Filed 03/15/23 Page 2 of 19 PageID #: 2
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`Pension Plan and Neurberger Berman private equity firm subsequently acquired a significant
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`stake in CSC.
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`5.
`
`On information and belief, CSC witnessed PayRange’s emergence and devised a
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`scheme to transform itself from a laundry machine operator into a profitable technology
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`company. On information and belief, CSC began in 2016 by fraudulently notifying thousands of
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`CSC customers that CSC was authorized to immediately begin charging a 9.75% administrative
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`fee. CSC’s assertion was false and this resulted in a class action lawsuit. Undeterred, CSC sought
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`to accelerate its transformation by deceiving PayRange into disclosing its patented technology
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`under the guise that CSC was evaluating PayRange’s technology for a partnership. In truth, there
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`was never to be a partnership. On the contrary, CSC was systematically copying PayRange’s
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`patented technology to develop its own copycat system (named CSC Go and CSCPay Mobile).
`
`6.
`
`On information and belief, CSC initiated its scheme to deceive PayRange in
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`October 2016. At an initial meeting, CSC’s Executive Vice President (Taylor Doggett)
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`commented that PayRange’s “timing is impeccable, as we are looking for ways in payment
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`systems to take coins out of the room cost effectively …” (emphasis added). CSC clearly
`
`recognized the need to rapidly upgrade its payment systems to increase its profitability and
`
`valuation. To do so, CSC needed PayRange’s patented technology, but, did not want to pay
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`PayRange for at least two reasons: (1) CSC wanted to reposition itself as a technology company
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`with current and future investors and (2) paying a license fee would reduce CSC’s profitability.
`
`7.
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`Impressed with PayRange’s technology, CSC scheduled a face-to-face meeting in
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`early 2017. On information and belief, even though CSC was working to build its own solution,
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`CSC continued engaging PayRange under the pretense of “evaluating” its technology. At the
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`Case 1:23-cv-00278-MN Document 1 Filed 03/15/23 Page 3 of 19 PageID #: 3
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`meeting, PayRange made a detailed technical presentation. The following annotated meeting
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`slide emphasizes PayRange’s “patented technology”:
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`8.
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`Thus, on information and belief, CSC knew that copying PayRange’s products
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`would constitute patent infringement. PayRange’s presentation also provided information
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`regarding its “connected room” device, named “BluKey Connect”:
`
`9.
`
`CSC expressed keen interest in PayRange’s connected room. CSC then requested
`
`sample BluKey devices “for immediate testing.” (emphasis added). Impressed with the testing
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`Case 1:23-cv-00278-MN Document 1 Filed 03/15/23 Page 4 of 19 PageID #: 4
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`results, CSC scheduled an in-depth private meeting at the June 2017 “Clean Show,” which is a
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`major trade show for laundry route operators. CSC’s senior management, including its Chief
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`Operations Officer (Phil Emma) and Executive Vice President (Taylor Doggett) attended the
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`show. After the meeting, Mr. Emma wrote that he was “impressed with the progress that you
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`and the team have made connecting laundry into PayRange.” (emphasis added). CSC encouraged
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`PayRange to provide even more detailed technical information.
`
`10.
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`Believing that a deal with CSC was imminent, PayRange provided another
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`detailed presentation which, in the executive summary section, noted that “[a] partnership with
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`PayRange will include appropriate licenses of our extensive intellectual property portfolio
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`which can help protect CSC against claims of infringement by others as you will be using our
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`intellectual property and technology.” (emphasis added). PayRange’s presentation went on to
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`provide the following overview of its system architecture:
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`11.
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`PayRange’s technical presentation also identified its then issued patents, including
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`at least one of the patents-in-suit:
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`12.
`
`CSC clearly knew that copying PayRange’s products was patent infringement. On
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`information and belief, CSC was impressed with PayRange’s proposal, including PayRange’s
`
`extensive patent portfolio. PayRange, in fact, met with CSC twice more to discuss PayRange’s
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`patented technology in even greater detail. After improperly obtaining as much information from
`
`PayRange as it could, in early 2018, CSC abruptly terminated communications with PayRange.
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`PayRange sought an explanation, but CSC remained suspiciously tight-lipped.
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`13.
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`In April 2018, CSC released its own mobile app (CSCPay Mobile) with
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`functionality copying the PayRange’s mobile app. Through CSC’s product release, its true
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`motives came to light. CSC had extracted information from PayRange to provide CSC with a
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`technical shortcut, thus brazenly disregarding PayRange’s patent rights. The release of CSC Go
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`coincided with CSC’s valuation increasing from $3 billion in 2018 to over $4 billion in 2020 as
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`it was now repositioned from an operator of automated retail machines into a technology
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`Case 1:23-cv-00278-MN Document 1 Filed 03/15/23 Page 6 of 19 PageID #: 6
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`company operating automated retail machines. That same year, CSC released a second mobile
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`app (CSC Go) which like the original CSCPay App, copied the functionality of the PayRange
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`App.
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`14.
`
`PayRange brings this case to hold CSC accountable for its willful infringement of
`
`PayRange’s patent rights. PayRange has suffered monetary damages and is entitled to a money
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`judgment in an amount adequate to compensate for CSC’s infringement, together with interest
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`and costs as fixed by the Court. PayRange also seeks to enjoin further installations of infringing
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`payment modules and to remove the infringing apps from the Google Play Store and Apple App
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`Store.
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`NATURE OF ACTION
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`15.
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`This is a civil action for patent infringement arising under the patent laws of the
`
`United States, Title 35 of the United States Code.
`
`16.
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`As set forth in more detail below, CSC has been infringing and continues to
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`infringe PayRange’s patents, namely, United States Patent Nos. 8,856,045; 10,438,208;
`
`10,891,608; and 11,481,772 (the “’045 Patent,” “’208 Patent,” “’608 Patent,” and “’772 Patent”)
`
`respectively or, collectively the “patents-in-suit”) and continues to do so through the present
`
`date.
`
`THE PARTIES
`
`17.
`
`PayRange is a Tennessee corporation with its principal place of business at 9600
`
`NE Cascades Pkwy, Suite 280, Portland, OR 97220.
`
`18.
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`CSC is a Florida corporation with its principal place of business at 35 Pinelawn
`
`Road, Suite 120, Melville, NY 11747. On information and belief, CSC operated as a Delaware
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`corporation for some time prior to March 22, 2019.
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`Case 1:23-cv-00278-MN Document 1 Filed 03/15/23 Page 7 of 19 PageID #: 7
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`JURISDICTION AND VENUE
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`19.
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`This is a civil action for patent infringement arising under the patent laws of the
`
`United States, 35 U.S.C. §§ 1 et seq.
`
`20.
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`This Court has subject matter jurisdiction over this patent infringement action
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`pursuant to 28 U.S.C. §§ 1331 and 1338(a).
`
`21.
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`Also, upon information and belief, CSC has infringed PayRange’s patents-in-suit
`
`in this District by, among other things, engaging in infringing conduct within and directed at, or
`
`from, this District. For example, upon information and belief CSC engaged in infringing conduct
`
`while organized as a Delaware Corporation. CSC has purposefully and voluntarily placed one or
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`more of its infringing products, as described below, into the stream of commerce with the
`
`expectation that these infringing products will be used in this District. CSC’s infringing products
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`have been and continue to be used in this District.
`
`22.
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`This Court also personal jurisdiction over CSC because CSC has consented to
`
`personal jurisdiction for this case.
`
`23.
`
`This Court also has personal jurisdiction over CSC because, upon information and
`
`belief, its corporate parent CSC ServiceWorks Holdings, Inc., is a corporation organized and
`
`existing under the laws of the State of Delaware. On information and belief, CSC is a wholly
`
`owned subsidiary of Coinmach Laundry, LLC, a Delaware corporation. CSC operates as an
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`agent or alter ego of its Delaware parent, CSC ServiceWorks Holdings, Inc. For example, in the
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`Apple App store, CSC ServiceWorks Holding, Inc. is identified as the publisher of CSC Go. But
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`the “developer’s privacy policy” identifies CSC as the publisher. Similarly, CSC ServiceWorks
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`Holding, Inc. is identified as the publisher of CSCPay Mobile, yet the “App Support” link is
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`directed to the website for CSC. Further, CSC is a wholly owned subsidiary of CSC
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`ServiceWorks Holding, Inc.
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`-7-
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`24.
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`Venue is proper in this District pursuant to 28 U.S.C § 1391(b) and 28 U.S.C.
`
`§ 1400(b). CSC has consented to venue for purposes of this case. Additionally, CSC has
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`consented to venue in this District through its appointment of a registered agent for service of
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`process in Delaware: The Corporation Trust Company, Corporation Trust Center, 1209 Orange
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`St., Wilmington, DE, 19801.
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`PAYRANGE’S PATENTS-IN-SUIT
`
`25.
`
`To protect its unique and innovative technologies, PayRange filed a provisional
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`patent application (No. 61/917,936) on December 18, 2013.
`
`26.
`
`On October 7, 2014, the USPTO issued the ’045 Patent, titled “MOBILE-
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`DEVICE-TO-MACHINE PAYMENT SYSTEMS.” A true and correct copy of the ’045 Patent is
`
`attached hereto as Exhibit 1.
`
`27.
`
`On October 8, 2019, the USPTO issued the ’208 Patent, titled “SYSTEMS AND
`
`METHODS FOR INTERACTING WITH UNATTENDED MACHINES USING
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`DETECTABLE TRIGGER CONDITIONS AND LIMITED-SCOPE AUTHORIZATION
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`GRANTS.” A true and correct copy of the ’208 Patent is attached hereto as Exhibit 2.
`
`28.
`
`On January 12, 2021, the USPTO issued the ’608 Patent, titled “METHOD AND
`
`SYSTEM FOR AN OFFLINE-PAYMENT OPERATED MACHINE TO ACCEPT
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`ELECTRONIC PAYMENTS.” A true and correct copy of the ’608 Patent is attached hereto as
`
`Exhibit 3.
`
`29.
`
`On October 25, 2022, the USPTO issued the ’772 Patent, titled “METHOD AND
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`SYSTEM FOR PRESENTING REPRESENTATIONS OF PAYMENT ACCEPTING UNIT
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`EVENTS.” A true and correct copy of the ’772 Patent is attached hereto as Exhibit 4.
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`-8-
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`COUNT I
`INFRINGEMENT OF THE ’045 PATENT
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`30.
`
`PayRange realleges and incorporates the allegations of the preceding paragraphs
`
`of this complaint as if fully set forth herein.
`
`31.
`
`PayRange is the assignee and owner of all right, title, and interest in and to the
`
`’045 Patent. PayRange has the exclusive right to make, use, sell, and offer to sell any product
`
`embodying the ’045 Patent throughout the United States, and to import any product embodying
`
`the ’045 Patent into the United States.
`
`32.
`
`The ’045 Patent is an invention of systems and methods for facilitating a cashless
`
`transaction for purchase of at least one product or service by a user from a payment accepting
`
`unit.
`
`33.
`
`Upon information and belief, CSC has and is infringing at least claim 1 of the
`
`’045 Patent in this District and elsewhere in the United States, by, among other things, directly or
`
`through intermediaries, making, using, selling and/or offering for infringing products with
`
`mobile payment functionalities, covered by one or more claims of the ’045 Patent. CSC is
`
`directly infringing, literally infringing, and/or infringing the ’045 Patent under the doctrine of
`
`equivalents. CSC is thus liable for infringement of the ’045 Patent pursuant to 35 U.S.C.
`
`§ 271(a).
`
`34. When placed into operation, CSCPay Mobile and/or CSC Go infringes at least
`
`claim 1 of the ’045 Patent by including a mobile-device-to-machine payment system for
`
`facilitating a cashless transaction for purchase of at least one product or service by a user from a
`
`payment accepting unit having input mechanisms, the user having a mobile device having both
`
`short-range communication technology and long-range communication technology, the payment
`
`accepting unit capable of dispensing at least one product or service, said system comprising: (a)
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`Case 1:23-cv-00278-MN Document 1 Filed 03/15/23 Page 10 of 19 PageID #: 10
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`an adapter module associated with the payment accepting unit, said adapter having short-range
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`communication technology for communicating with the short-range communication technology
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`(e.g., Bluetooth) of the mobile device; (b) a server having long-range communication technology
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`for communicating with the long-range communication technology of the mobile device; (c) said
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`adapter module for sending an authorization request for funds to the mobile device using short-
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`range communication technology, the mobile device forwarding said authorization request for
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`funds to said server using long-range communication technology; and (d) said server for sending
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`an authorization grant for funds to the mobile device using long-range communication
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`technology, the mobile device forwarding said authorization grant for funds to said adapter
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`module using short-range communication technology; (e) wherein the payment accepting unit
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`dispenses the at least one product or service in response to receiving user input to the payment
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`accepting unit input mechanism if said adapter module has received said authorization grant.
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`35.
`
`Upon information and belief, CSC will continue to directly infringe the ’045
`
`Patent unless enjoined.
`
`36.
`
`To the extent CSCPay Mobile and/or CSC Go as installed on a smartphone, do
`
`not directly infringe at least claim 1 of the ’045 Patent, CSC contributes to infringement of the
`
`same under 35 U.S.C. § 271(c) inasmuch as infringing products offered for sale and sold by CSC
`
`are components of a patented machine or an apparatus used in practicing a patented process,
`
`constituting a material part of PayRange’s invention, knowing the same to be especially made or
`
`especially adapted for use in infringement of the ’045 Patent.
`
`37.
`
`CSCPay Mobile and/or CSC Go as installed on a smartphone directly infringe the
`
`’045 Patent and are being provided by CSC to install in their community laundry rooms, in-home
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`Case 1:23-cv-00278-MN Document 1 Filed 03/15/23 Page 11 of 19 PageID #: 11
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`units, or commercial site. Upon information and belief, CSC will continue to contribute to
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`infringement of the ’045 Patent unless enjoined.
`
`38.
`
`CSC actively encourages their business partners and/or customers to use CSCPay
`
`Mobile and/or CSC Go as installed on a smartphone in an infringing manner. Despite knowing of
`
`PayRange’s patented technology, CSC actively induced its business partners and/or customers to
`
`use CSCPay Mobile and/or CSC Go in an infringing manner. CSC encouraged this infringement
`
`with a specific intent to cause its business partners and customers to infringe. CSC’s acts thus
`
`constitute active inducement of patent infringement in violation of 35 U.S.C. § 271(b).
`
`39.
`
`Upon information and belief, CSC will continue to induce infringement of the
`
`’045 Patent unless enjoined.
`
`40.
`
`CSC’s direct infringement, contributory infringement, and inducement of
`
`infringement have irreparably harmed PayRange.
`
`41.
`
`Pursuant to 35 U.S.C. § 284, PayRange is entitled to damages adequate to
`
`compensate for the infringement.
`
`42.
`
`CSC’s infringement has been and is willful and, pursuant to 35 U.S.C. § 284,
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`PayRange is entitled to treble damages. CSC’s willful infringement is based at least on CSC’s
`
`knowledge of PayRange, its products, and its patents. CSC’s conduct is egregious as it continued
`
`offering, selling, making, and using infringing products despite knowledge of the infringement.
`
`CSC either willfully and wantonly infringed the ’045 Patent or have recklessly avoided
`
`knowledge of its own infringement, even when faced with knowledge of PayRange’s own
`
`products and patents.
`
`43.
`
`This case is “exceptional” within the meaning of 35 U.S.C. § 285, and PayRange
`
`is entitled to an award of attorneys’ fees.
`
`-11-
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`COUNT II
`INFRINGEMENT OF THE ’208 PATENT
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`44.
`
`PayRange realleges and incorporates the allegations of the preceding paragraphs
`
`of this complaint as if fully set forth herein.
`
`45.
`
`PayRange is the assignee and owner of all right, title, and interest in and to the
`
`’208 Patent. PayRange has the exclusive right to make, use, sell, and offer to sell any product
`
`embodying the ’208 Patent throughout the United States, and to import any product embodying
`
`the ’208 Patent into the United States.
`
`46.
`
`Upon information and belief, CSC has and is infringing at least claim 1 of the
`
`’208 Patent in this District and elsewhere in the United States, by, among other things, directly or
`
`through intermediaries, making, using, selling and/or offering for sale products with built-in
`
`mobile payment functionalities, covered by one or more claims of the ’208 Patent to the injury of
`
`PayRange. CSC is directly infringing, literally infringing, and/or infringing the ’208 Patent under
`
`the doctrine of equivalents. CSC is thus liable for infringement of the ’208 Patent pursuant to
`
`35 U.S.C. § 271(a).
`
`47. When placed into operation by CSC or users of CSC infringe at least claim 1 of
`
`the ’208 Patent. When, for example, CSCPay Mobile and/or CSC Go is installed on a mobile
`
`phone it performs a method of, at a mobile device with one or more processors, memory, and a
`
`communications unit, and prior to user selection of any items or services provided by an
`
`automatic retail machine: notifying an electronic payment device coupled with the automatic
`
`retail machine that the mobile device has entered an authorization zone associated with the
`
`automated retail machine: in response to notifying the electronic payment device that the mobile
`
`device has entered the authorization zone, receiving from the electronic payment device, via the
`
`communications unit, a request to preemptively obtain authorization to make funds available for
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`cashless transactions with the automatic retail machine; sending the request to a server via the
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`communications unit; in response to sending the request to the server, receiving, from the server,
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`an authorization grant of an amount of funds corresponding to a maximum amount associated
`
`with an item or service provided by the automatic retail machine, wherein the authorization grant
`
`expires upon satisfaction of one or more predetermined criteria; detecting, by an application
`
`executing on the mobile device, a trigger condition to initiate a cashless transaction with the
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`automatic retail machine; and in response to detecting the trigger condition and in accordance
`
`with a determination that the one or more predetermined criteria have not been satisfied, sending
`
`to the electronic payment device the authorization grant via the communications unit, enabling a
`
`user to select an item or service provided by the automatic retail machine for less than or equal to
`
`the amount of funds.
`
`48.
`
`To the extent CSCPay Mobile and/or CSC Go, without more, do not directly
`
`infringe at least claim 1 of the ’208 Patent, CSC contributes to infringement of the same under
`
`35 U.S.C. § 271(c) inasmuch as the infringing products offered for sale and sold by CSC is a
`
`component of a patented machine or an apparatus used in practicing a patented process,
`
`constituting a material part of PayRange’s invention, knowing the same to be especially made or
`
`especially adapted for use in infringement of the ’208 Patent.
`
`49.
`
`CSC actively encourage their business partners and/or customers to use CSCPay
`
`Mobile and/or CSC Go in an infringing manner. CSC encouraged infringement with a specific
`
`intent to cause its business partners and customers to infringe. CSC’s acts thus constitute active
`
`inducement of patent infringement in violation of 35 U.S.C. § 271(b).
`
`50.
`
`CSC’s direct infringement, contributory infringement, and inducement of
`
`infringement have irreparably harmed PayRange.
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`Case 1:23-cv-00278-MN Document 1 Filed 03/15/23 Page 14 of 19 PageID #: 14
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`51.
`
`Upon information and belief, CSC will continue to infringe the ’208 Patent unless
`
`enjoined.
`
`52.
`
`Pursuant to 35 U.S.C. § 284, PayRange is entitled to damages adequate to
`
`compensate for the infringement.
`
`53.
`
`This case is “exceptional” within the meaning of 35 U.S.C. § 285, and PayRange
`
`is entitled to an award of attorneys’ fees.
`
`COUNT III
`INFRINGEMENT OF THE ’608 PATENT
`
`54.
`
`PayRange realleges and incorporates the allegations of the preceding paragraphs
`
`of this complaint as if fully set forth herein.
`
`55.
`
`PayRange is the assignee and owner of all right, title, and interest in and to the
`
`’608 Patent. PayRange has the exclusive right to make, use, sell, and offer to sell any product
`
`embodying the ’608 Patent throughout the United States, and to import any product embodying
`
`the ’608 Patent into the United States.
`
`56.
`
`Upon information and belief, CSC has and is infringing at least claim 1 of the
`
`’608 Patent in this District and elsewhere in the United States, by, among other things, directly or
`
`through intermediaries, making, using, selling and/or offering for sale products with built-in
`
`mobile payment functionalities, covered by one or more claims of the ’608 Patent to the injury of
`
`PayRange. CSC is directly infringing, literally infringing, and/or infringing the ’608 Patent under
`
`the doctrine of equivalents. CSC is thus liable for infringement of the ’608 Patent pursuant to
`
`35 U.S.C. § 271(a).
`
`57. When placed into operation by CSC or users of CSC’s infringe at least claim 1 of
`
`the ’608 Patent. They include a payment module for an offline payment-operated machine
`
`including a coin receiving switch, the payment module comprising: a short-range wireless
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`Case 1:23-cv-00278-MN Document 1 Filed 03/15/23 Page 15 of 19 PageID #: 15
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`transceiver (e.g., Bluetooth) configured to communicate with one or more mobile devices; one or
`
`more processors; a first interface module configured to output to a control unit of the offline
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`payment-operated machine one or more electrical pulses, each of the one or more electrical
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`pulses emulating an analog signal generated by the coin receiving switch of the offline payment-
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`operated machine in response to insertion of a single coin of a predetermined type in the offline
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`payment-operated machine; and memory (e.g., Flash memory) with one or more programs for
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`execution by the one or more processors, the one or more programs including instructions for:
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`storing, in the memory of the payment module, a number of the electrical pulses that must be
`
`received by the control unit to initiate an operation of the offline payment operating machine;
`
`receiving a wireless request via the short-range wireless transceiver from a respective mobile
`
`device of the one or more mobile devices to initiate a cashless operation of the offline-payment
`
`operated machine; and in response to the wireless request: determining a first number of
`
`electrical pulses to output via the first interface module to the control unit of the offline payment-
`
`operated machine in order to initiate the requested cashless operation of the offline payment-
`
`operated machine; causing the offline payment-operated machine to initiate the requested
`
`cashless operation by issuing the first number of electrical pulses to the control unit via the first
`
`interface module; and sending operation information corresponding to the initiated operation of
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`the offline payment-operated machine to the respective mobile device via the short-range
`
`wireless transceiver.
`
`58.
`
`To the extent payment modules for CSCPay Mobile and/or CSC Go, without
`
`more, do not directly infringe at least claim 1 of the ’608 Patent, CSC contributes to infringement
`
`of the same under 35 U.S.C. § 271(c) inasmuch as the infringing products offered for sale and
`
`sold by CSC are each a component of a patented machine or an apparatus used in practicing a
`
`-15-
`
`

`

`Case 1:23-cv-00278-MN Document 1 Filed 03/15/23 Page 16 of 19 PageID #: 16
`
`patented process, constituting a material part of PayRange’s invention, knowing the same to be
`
`especially made or especially adapted for use in infringement of the ’608 Patent.
`
`59.
`
`CSC actively encourage their business partners and/or customers to use payment
`
`modules for CSCPay Mobile and/or CSC Go in an infringing manner. CSC encourages
`
`infringement with a specific intent to cause its business partners and customers to infringe.
`
`CSC’s acts thus constitute active inducement of patent infringement in violation of 35 U.S.C.
`
`§ 271(b).
`
`60.
`
`CSC’s direct infringement, contributory infringement, and inducement of
`
`infringement have irreparably harmed PayRange.
`
`61.
`
`Upon information and belief, CSC will continue to infringe the ’608 Patent unless
`
`enjoined.
`
`62.
`
`Pursuant to 35 U.S.C. § 284, PayRange is entitled to damages adequate to
`
`compensate for the infringement.
`
`63.
`
`This case is “exceptional” within the meaning of 35 U.S.C. § 285, and PayRange
`
`is entitled to an award of attorneys’ fees.
`
`COUNT IV
`INFRINGEMENT OF THE ’772 PATENT
`
`64.
`
`PayRange realleges and incorporates the allegations of the preceding paragraphs
`
`of this complaint as if fully set forth herein.
`
`65.
`
`PayRange is the assignee and owner of all right, title, and interest in and to the
`
`’772 Patent. PayRange has the exclusive right to make, use, sell, and offer to sell any product
`
`embodying the ’772 Patent throughout the United States, and to import any product embodying
`
`the ’772 Patent into the United States.
`
`-16-
`
`

`

`Case 1:23-cv-00278-MN Document 1 Filed 03/15/23 Page 17 of 19 PageID #: 17
`
`66.
`
`Upon information and belief, CSC has and is infringing at least claim 1 of the
`
`’772 Patent in this District and elsewhere in the United States, by, among other things, directly or
`
`through intermediaries, making, using, selling and/or offering for sale products with mobile
`
`payment functionality, covered by one or more claims of the ’772 Patent to the injury of
`
`PayRange. CSC is directly infringing, literally infringing, and/or infringing the ’772 Patent under
`
`the doctrine of equivalents. CSC is thus liable for infringement of the ’772 Patent pursuant to 35
`
`U.S.C. § 271(a).
`
`67. When placed into operation by CSC or users of CSC infringe at least claim 1 of
`
`the ’772 Patent. When, for example, CSCPay Mobile and/or CSC Go is installed on a mobile
`
`phone it performs the claimed method.
`
`68.
`
`To the extent CSCPay Mobile and/or CSC Go, without more, do not directly
`
`infringe at least claim 1 of the ’772 Patent, CSC contributes to infringement of the same under
`
`35 U.S.C. § 271(c) inasmuch as the infringing products (e.g., CSCPay Mobile and/or CSC Go)
`
`offered for sale and sold by CSC is a component of a patented machine or an apparatus used in
`
`practicing a patented process, constituting a material part of PayRange’s invention, knowing the
`
`same to be especially made or especially adapted for use in infringement of the ’772 Patent.
`
`69.
`
`CSC actively encourage their business partners and/or customers to use CSCPay
`
`Mobile and/or CSC Go in an infringing manner. CSC encouraged infringement with a specific
`
`intent to cause its business partners and customers to infringe. CSC’s acts thus constitute active
`
`inducement of patent infringement in violation of 35 U.S.C. § 271(b).
`
`70.
`
`CSC’s direct infringement, contributory infringement, and inducement of
`
`infringement have irreparably harmed PayRange.
`
`-17-
`
`

`

`Case 1:23-cv-00278-MN Document 1 Filed 03/15/23 Page 18 of 19 PageID #: 18
`
`71.
`
`Upon information and belief, CSC will continue to infringe the ’772 Patent unless
`
`enjoined.
`
`72.
`
`Pursuant to 35 U.S.C. § 284, PayRange is entitled to damages adequate to
`
`compensate for the infringement.
`
`73.
`
`This case is “exceptional” within the meaning of 35 U.S.C. § 285, and PayRange
`
`is entitled to an award of attorneys’ fees.
`
`REQUEST FOR RELIEF
`
`WHEREFORE, PayRange requests that the Court find in its favor and against CSC, and
`
`that the Court grant PayRange the following relief:
`
`a.
`
`Judgment that CSC infringes the patents-in-suit;
`
`b. Judgment that CSC is jointly and severally liable for infringement of the patents-in-
`
`suit.
`
`c. That PayRange be granted with injunctive relief against CSC and its officers,
`
`employees, agents, servants, attorneys, instrumentalities, and/or those in privity with
`
`them, to prevent the recurrence of the infringing activities complained of herein,
`
`including an injunction against further installations of infringing payment modules
`
`and removing all infringing mobile apps from all third party app stores such as the
`
`Google Play Store and Apple App Store, and for all further proper injunctive relief
`
`pursuant to 35 U.S.C. § 283;
`
`d. Judgment that CSC account for and pay to PayRange all damages and costs incurred
`
`by PayRange, caused by CSC’s infringing activities complained of herein;
`
`e.
`
`Judgment that CSC willfully infringed and increases the damages award to PayRange
`
`up to three times the amount assessed, pursuant to 35 U.S.C. § 284;
`
`f. That PayRange be granted pre-judgment and post-judgment interest on the damages;
`
`-18-
`
`

`

`Case 1:23-cv-00278-MN Document 1 Filed 03/15/23 Page 19 of 19 PageID #: 19
`
`g. That this Court declare this an exceptional case and award PayRange reasonable
`
`attorneys’ fees and costs in accordance with 35 U.S.C. § 285; and
`
`h. That PayRange be granted such other and further relief as the Court may deem just
`
`and proper under the circumstances.
`
`Dated: March 15, 2023
`
`WILSON SONSINI GOODRICH & ROSATI,
`Professional Corporation
`
`/s/ Ian R. Liston
`
`Ian R. Liston (Delaware Bar I.D. # 5507)
`222 Delaware Avenue
`Suite 800
`Wilmington, DE 19801
`iliston@wsgr.com
`Telephone: (302) 304-7600
`Facsimile: (866) 974-7329
`
`James C. Yoon (PHV pending)
`Ryan R. Smith (PHV pending)
`Jamie Y. Otto (PHV pending)
`WILSON SONSINI GOODRICH & ROSATI
`Professional Corporation
`650 Page Mill Road
`Palo Alto, CA 94304-1050
`Telephone: (650) 493-9300
`Facsimile: (650) 565-5100
`Email: jyoon@wsgr.com , rsmith@wsgr.com,
`jotto@wsgr.com
`
`ATTORNEYS FOR PLAINTIFF PAYRANGE
`INC
`
`-19-
`
`

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