throbber
Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 1 of 61
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE SOUTHERN DISTRICT OF NEW YORK
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`
`Civil Action No. __________
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`DEMAND FOR JURY TRIAL
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`BOT M8 LLC, a Delaware Limited Liability
`Company
`
`
`Plaintiff,
`
`
`SONY CORPORATION OF AMERICA, a New
`York Corporation; SONY CORPORATION, a
`Japanese Corporation; and SONY
`INTERACTIVE ENTERTAINMENT LLC, a
`California Limited Liability Company,
`
`
`v.
`
`Defendants.
`
`
`
`
`
`
`
`COMPLAINT FOR PATENT INFRINGEMENT
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`Plaintiff Bot M8 LLC (“Bot M8”) files this Complaint for Patent Infringement and Demand
`
`for Jury Trial against Sony Interactive Entertainment, Sony Interactive Entertainment LLC, Sony
`
`Corporation of America, and Sony Corporation (collectively, “Sony”), and alleges as follows:
`
`THE PARTIES
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`Plaintiff Bot M8 is a Delaware Limited Liability Company.
`
`Defendant Sony Corporation of America (“SCA”) is a corporation organized and
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`1.
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`2.
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`existing under the laws of the State of New York, having a principal place of business at 25
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`Madison Avenue, New York, New York 10010. SCA is a wholly-owned subsidiary of Japanese
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`conglomerate Sony Corporation and is the United States headquarters of Sony Corporation. Upon
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`information and belief, Defendant Sony Corporation of America has authority to negotiate and
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`enter into patent licenses on behalf of Sony Corporation.
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`

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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 2 of 61
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`3.
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`Defendant Sony Corporation is a corporation organized and existing under the laws
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`of Japan, with a principal place of business at 1-7-1 Konan, Minato-ku, Tokyo 108-0075, Japan.
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`Sony Corporation is a Japanese multinational conglomerate, with businesses including gaming,
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`consumer and professional electronics, entertainment and financial services.
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`4.
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`Sony Interactive Entertainment is a multinational video game and digital
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`entertainment company that is a wholly-owned subsidiary of Japanese conglomerate Sony
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`Corporation. Defendant Sony Interactive Entertainment LLC (“SIE”) is the global and Americas
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`regional headquarters of Sony Interactive Entertainment, located at 2207 Bridgepointe Parkway,
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`San Mateo, California.
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`5.
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`Sony designs, manufactures, uses, advertises, imports, distributes, offers for sale
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`and sells PlayStation 4 consoles, PlayStation Network services and PlayStation 4 videogames,
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`including single player games and multiplayer games. The PlayStation 4 console is an eighth-
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`generation home video game console developed by Sony, and launched on November 15, 2013 in
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`North America.
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`JURISDICTION AND VENUE
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`6.
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`This action arises under the Patent Act, 35 U.S.C. § 101 et seq. This Court has
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`original jurisdiction over this controversy pursuant to 28 U.S.C. §§ 1331 and 1338.
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`7.
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`8.
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`Venue is proper in this Court pursuant to 28 U.S.C. §§ 1391(b) and (c) and 1400(b).
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`This Court has personal jurisdiction over Defendant SCA because it is a New York
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`corporation, with its headquarters within this District, and because it has committed acts of
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`infringement and has a regular and established place of business within this District.
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`9.
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`This Court has personal jurisdiction over Defendant Sony Corporation because it
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`has committed acts of infringement and has a regular and established place of business within this
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 3 of 61
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`District through its subsidiary SCA and its regular contacts with and conduct of business within
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`this District. As a foreign corporation, Sony Corporation is subject to venue within this District.
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`10.
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`This Court has personal jurisdiction over SIE because it maintains regular and
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`substantial business related to the acts of infringement giving rise to this action within this District,
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`including the development and sale of the infringing products and services, upon Plaintiff’s
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`information and belief.
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`11.
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`Additionally, this Court can further exercise personal jurisdiction over the
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`Defendants in this action because they have committed acts of infringement and inducement of
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`infringement in this District, including through designing, manufacturing, advertising, using,
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`distributing, offering for sale and selling infringing products and services in this District and
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`because Plaintiff’s claims arise out of and relate to Defendants’ acts of infringement and
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`inducement of infringement in this District, and because the exercise of jurisdiction by this Court
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`over Defendants would be reasonable. Defendants have more than minimal contacts with this
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`District, such that the maintenance of this action within this District would not offend traditional
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`notions of fair play and substantial justice.
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`BOT M8’S ASSERTED PATENTS
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`12.
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`On March 4, 2008, the USPTO issued U.S. Patent No. 7,338,363 (“the ‘363
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`Patent”), titled “Gaming Machine, Server, and Program” to Kazuo Okada. All rights, title, and
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`interests in the ‘363 Patent have been assigned to Bot M8 who is the sole owner of the ‘363 Patent.
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`A true and correct copy of the ‘363 Patent is attached to this Complaint as Exhibit 1 and is
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`incorporated by reference herein.
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`13.
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`The ’363 Patent generally relates to a gaming machine, a server and a program.
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`More particularly, the specification values of a game machine can be changed by each game player
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`to meet each player’s unique preference. One of the ways this is accomplished is by renewing
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 4 of 61
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`specification values of a game machine on the basis of the total of the number of medals paid out
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`by a game player to the gaming machine. Furthermore, a game can be jointly played on two gaming
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`machines, and the total results of the jointly played game can be used to update specification
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`values.
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`14.
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`On December 13, 2011, the USPTO issued U.S. Patent No. 8,078,540 (“the ‘540
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`Patent”), titled “Gaming Machine, Gaming Information Authentication and Acquisition Device,
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`and Gaming Information Acquisition Device” to Tatsuhiko Tanimura. All rights, title, and interests
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`in the ‘540 Patent have been assigned to Bot M8 who is the sole owner of the ‘540 Patent. A true
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`and correct copy of the ‘540 Patent is attached to this Complaint as Exhibit 2 and is incorporated
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`by reference herein.
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`15.
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`The ’540 Patent generally relates to a gaming machine, a gaming information
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`authenticating and loading device, and a loading device for loading gaming information, whereby
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`gaming information recorded on a portable storage medium can be authenticated. Double
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`authentication is used to authenticate gaming information and increase authentication reliability.
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`Namely, before a motherboard loads an authentication program to authenticate actual gaming
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`information, a preliminary authentication is carried out to confirm that the authentication program
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`is a legitimate program which has not been manipulated.
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`16.
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`On January 10, 2012, the USPTO issued U.S. Patent No. 8,095,990 (“the ‘990
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`Patent”), titled “Gaming Machine, Gaming Information Authentication Loading Device and
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`Gaming Information Loading Device” to Tatsuhiko Tanimura. All rights, title, and interests in the
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`‘990 Patent have been assigned to Bot M8 who is the sole owner of the ‘990 Patent. A true and
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`correct copy of the ‘990 Patent is attached to this Complaint as Exhibit 3 and is incorporated by
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`reference herein.
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 5 of 61
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`17.
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`The ‘990 Patent generally relates to a gaming machine, a gaming information
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`authentication loading device, and a gaming information loading device. Mutual authentication is
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`used to increase authentication reliability. Namely, before a mutual authentication unit executes
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`an authentication program to authenticate actual gaming information, the mutual authentication
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`unit checks that the authentication program is a legitimate program.
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`18.
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`On February 16, 2010, the USPTO issued U.S. Patent No. 7,664,988 (“the ‘988
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`Patent”), titled “Gaming Apparatus Having Memory Fault Detection” to Jun Haishima. All rights,
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`title, and interests in the ‘988 Patent have been assigned to Bot M8 who is the sole owner of the
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`‘988 Patent. A true and correct copy of the ‘998 Patent is attached to this Complaint as Exhibit 4
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`and is incorporated by reference herein.
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`19.
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`The ‘988 Patent generally relates to an information process device in which a fault
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`in hardware or software is inspected. Faults include, for example, damage, changes or falsification.
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`The memory device in which a fault inspection program and a boot program are stored is different
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`from another memory device where a game application program is stored. Both memory devices
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`are connected to the same motherboard. If the memory device where the game application program
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`is stored is damaged, the fault inspection program would not be affected. Therefore, fault detection
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`reliability is increased.
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`20.
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`On February 7, 2012, the USPTO issued U.S. Patent No. 8,112,670 (“the ‘670
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`Patent”), titled “Gaming Apparatus Having Memory Fault Detection” to Jun Haishima. All rights,
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`title, and interest in the ‘670 Patent have been assigned to Bot M8 who is the sole owner of the
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`‘670 Patent. A true and correct copy of the ‘670 Patent is attached to this Complaint as Exhibit 5
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`and is incorporated by reference herein.
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 6 of 61
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`21.
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`The ‘670 Patent relates to an information process device in which a fault in
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`hardware or software is inspected. The fault inspection program is stored in a memory device that
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`is different from the memory device storing the boot program. Both memory devices are connected
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`to the same motherboard. If the memory device where the game application program is stored is
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`damaged, the fault inspection program would not be affected. Therefore, fault detection reliability
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`is increased.
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`22.
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`On March 3, 2009, the USPTO issued U.S. Patent No. 7,497,777 (“the ‘777
`
`Patent”), titled “Gaming Machine and Computer-Readable Program Product” to Matsuzo
`
`Machida. All rights, title, and interest in the ‘777 Patent have been assigned to Bot M8 who is the
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`sole owner of the ‘777 Patent. A true and correct copy of the ‘777 Patent is attached to this
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`Complaint as Exhibit 6 and is incorporated by reference herein.
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`23.
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`The ‘777 Patent generally relates to a gaming program and a gaming machine. An
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`object of the invention is to augment interests in a game. One of the ways this is accomplished is
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`by the gaming machine displaying a plurality of characters on a display screen and the gaming
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`program calculating an execution order of actions of the plurality of characters in the battle, where
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`execution of actions of different characters can be independent from each other as long as the
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`different characters take combination action.
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`24.
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`The Asserted Patents are directed towards specific novel systems, apparatus, and
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`methods for augmenting gaming experience, authentication reliability, and fault inspection
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`reliability. The inventions of the Asserted Patents provide real-world benefits by solving real-
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`world problems and providing real-world improvements within the realm of gaming. For example,
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`the Asserted Patents disclose and specifically claim inventive concepts that represent significant
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`improvements over conventional systems by teaching persons skilled in the art improve videogame
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 7 of 61
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`matchmaking through the use of specification values, improve videogame authentication
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`reliability through mutual authentication and storage of the fault detection and game application
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`programs on different memory devices, and improve player interest in video games through the
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`use of multiple characters that can operate independently but execute combination actions. Thus,
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`the Asserted Patents disclose more than just a simple combination of generic components to
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`perform conventional activities.
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`SONY’S INFRINGING PRODUCTS AND TECHNOLOGIES
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`29.
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`Since November 2013, Sony has been making, using, designing, advertising,
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`selling, offering for sale, and importing into the United States and this District video game
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`consoles, network services, video games which infringe Bot M8’s patents set forth above.
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`30.
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`The infringing products and services include (1) the PlayStation 4, PlayStation 4
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`Slim, and PlayStation 4 Pro consoles (collectively referred to as the “PlayStation 4”); (2) the Sony
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`PlayStation Network; and (3) various Sony-developed video games that include balanced
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`multiplayer matchmaking or mutual authentication functionality (collectively, the “Accused
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`Products”).
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`31.
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`Sony has sold over 100 million PlayStation 4 consoles. Sony makes, uses, designs,
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`advertises, sells, offers for sale, and imports into the United States and this District PlayStation 4
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`consoles. Through the PlayStation Store, Sony enables users to download video games as well as
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`other digital content to be used on the PlayStation 4 console. Through various retailers, Sony
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`enables users to purchase video games stored on digital optical disks to be used on the PlayStation
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`4 consoles. The PlayStation 4 console can read and execute game information stored on a digital
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`optical disk when such digital optical disk is connected to the PlayStation 4 console. The
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`PlayStation 4 console is a hardware platform, and it typically contains a 1TB hard drive.
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 8 of 61
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`32.
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`The PlayStation Network is an online service which includes various offerings. The
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`PlayStation Store is a digital media shop that offers a range of downloadable content both for
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`purchase and free of charge. The content includes full games, free-to-play games, add-ons, demos,
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`music, movies and background themes. PlayStation Plus is a PlayStation Network subscription
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`service that provides users with access to premium features. These extras include early access to
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`upcoming games, beta trials, regular store discounts, and the ability to have system software
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`updates and game patches download automatically to the console. The PlayStation App which can
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`be integrated in a smart device, allows users to control a PlayStation 4, redeem voucher codes,
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`manage game downloads remotely, message gamer friends, invite friends to join a game, and take
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`control and try out game from the user’s own PlayStation 4.
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 9 of 61
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`Sony operates the PlayStation Network on PlayStation game servers, powerful
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`30.
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`computers used to store files including user account information, social network information,
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`gaming programs, and gaming results. Sony’s PlayStation game servers are located throughout
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`the United States, including in Bronx, New York.
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`31.
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`Sony makes, uses, designs, advertises, sells, offers for sale, and imports into the
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`United States and this District various video games for use with the PlayStation 4. Sony distributes
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`these PlayStation 4 video games on digital optical disks through retail channels or through digital
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`download from the PlayStation Network to PlayStation 4 consoles. PlayStation 4 games are
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`installed to the console’s storage (internal or external). These games are executable by PlayStation
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`4 consoles. Uncharted 4 is a representative example of a multiplayer game developed and sold by
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`Sony for use with the PlayStation 4.
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 10 of 61
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`SONY’S INFRINGEMENT OF BOT M8 PATENTS
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`32.
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`Sony has infringed and continues to infringe the Asserted Patents in this District
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`and elsewhere in the United States by making, using, advertising, importing, selling, and offering
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`for sale the Accused Products.
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`33.
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`In addition to directly infringing the Asserted Patents under 35 U.S.C. § 271(a),
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`either literally, under the doctrine of equivalents, or both, Sony indirectly infringes the Asserted
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`Patents by instructing, directing, and requiring others, including its customers, purchasers, users,
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`and developers, to combine or make all or some of the components of the apparatus/system claims,
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`either literally or under the doctrine of equivalents.
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`COUNT I
`(Direct Infringement of the ‘363 Patent pursuant to 35 U.S.C. § 271(a))
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`Bot M8 repeats, realleges, and incorporates by reference, as if fully set forth herein,
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`34.
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`the allegations of the preceding paragraphs, as set forth above.
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`35.
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`36.
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`Sony infringes at least Claim 1 of the ‘363 Patent in violation of 35 U.S.C. § 271(a).
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`Sony’s infringement is based upon literal infringement or, in the alternative,
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`infringement under the doctrine of equivalents.
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 11 of 61
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`37.
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`Sony’s infringement includes, making, using, advertising, importing, selling, and
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`offering for sale PlayStation 4 consoles, PlayStation Network services and multiplayer games
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`developed by Sony and its subsidiaries (collectively, the “’363 Accused Products”). Sony’s acts
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`of making, using, marketing, importing, selling, and offering for sale the ‘363 Accused Products
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`were and are without the permission, consent, authorization, or license of Bot M8.
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`38.
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`The ‘363 Accused Products practice the patented invention of the ‘363 Patent and
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`infringed the ‘363 Patent because they integrate mechanisms of facilitating gaming experiences by
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`renewing and replacing specification value settings after each multiplayer match, and mechanisms
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`of determining a second gaming machine operated by a co-player. The specification values can
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`include total result data, offensive score, support score, who won, who lost, etc. The PlayStation
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`Network and PlayStation 4 operating system running games provide one or more players to
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`competitively play the game, in which a player can be matched with a plurality of available game
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`players.
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`39.
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`The PlayStation Network and PlayStation 4 operating system serve as a gaming
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`machine determining device, because they provides one or more players to competitively play the
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`game, and a player can be matched with a plurality of available game players.
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`40.
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`The PlayStation 4 console transmits and receives data from the PlayStation
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`Network servers for multiplayer gaming purposes, using a network processor, an Ethernet
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`controller and a wireless communication module. These data include specification data.
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 12 of 61
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`http://gamingbolt.com/inside-the-playstation-4-motherboard-components-explained
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`41.
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`The PlayStation Network interface is the total result data receiving device which
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`receives total game results from the PlayStation game server. These data are retrieved from the
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`server by the PlayStation 4 operating system using the network interface. The PlayStation 4 and
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`PlayStation Network display several specification values, including the total result data, offensive
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`score, support score, who won, and who lost. This information is sent from the PlayStation game
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`server and matchmaking service to end-users’ consoles.
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 13 of 61
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`http
`://www.playstationtrophies.org/forum/the-arena/290780-uncharted-4-game-night-birthday-
`special-june-25th-2016-a-28.html
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`42.
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`The PlayStation Network and PlayStation 4 operaing system serve as a
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`specification value determining device for determining a specification value based on the data of
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`the total game result received by the total result data receiving device. The PlayStation Network
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`and PlayStation 4 operating system utilize a specification value in their software code base.
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`43.
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`The PlayStation 4 provides a specification value setting in software modules and
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`gaming programs, the specification value can be a character level, points, currency, a title, a rank,
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`or a reward. The specification value can have an effect on matchmaking for the next multiplayer
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`match. The PlayStation 4 operating system, loaded on a PlayStation 4 console, manages computer
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`hardware and software resources and provides services for software modules to set at least one
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`specification value as a control condition for game control purposes. Game results are written into
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`a memory of the PlayStation 4 console and are calculated by the CPU of the PlayStation 4 console.
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`44.
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`“Uncharted 4” is a multiplayer, multi-character game made by Naughty Dog, Inc.,
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`a subsidiary of Sony Interactive Entertainment. Uncharted 4 can be downloaded to PlayStation 4
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`console from the PlayStation Network or can be bought in physical form through various retailers,
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 14 of 61
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`such as Amazon.com. The PlayStation 4 operating system runs the Uncharted 4 video game.
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`Uncharted 4 is a representative example of the use of speciation values in the Accused Products
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`for matchmaking purposes.
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`45.
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`Uncharted 4 includes a multiplayer matchmaking system. The matchmaking system
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`takes into consideration the specification value settings. Uncharted 4 has multiple multiplayer
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`modes including Team Deathmatch, Command, Plunder, Ranked Team Deathmatch, Bounty
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`Hunter, Classic Mode and Survival. These game modes utilize different specification value
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`settings to facilitate matchmaking. For example, in Ranked Team Deathmatch, an initial Rank is
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`determined with 3 placement matches. The placement matches are based on the internal “Skill
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`Rating.” This is a metric used to judge performance. Skill Rating takes into account one’s
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`scoreboard position along with other factors. This Skill Rating can also be a specification value.
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`http://uncharted.wikia.com/wiki/Uncharted_4:_A_Thief’s_End_multiplayer
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 15 of 61
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`http://www.unchartedthegame.com/rank-system/the-system
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`Uncharted 4 includes Rank Points which can be a specification value.
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`46.
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`http://www.unchartedthegame.com/rank-system
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`47.
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`As shown below, the player obtained an “idol” and in game currency both of which
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`may be specification values, impacting matching.
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 16 of 61
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`http://www.unchartedthegame.com/en-us/multiplayer
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`48.
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`Specification values are renewed and replaced after each multiplayer match for
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`matching purposes. For example, in Ranked Team Deathmatch an initial Rank is determined with
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`3 placement matches. The placement matches are based on the internal “Skill Rating” which is a
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`metric used to judge performance. Skill Rating takes into account one’s scoreboard position along
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`with other factors. This Skill Rating is renewed after each match.
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 17 of 61
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`http://www.unchartedthegame.com/rank-system/the-system
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`49. When new specification data are calculated, the PlayStation 4 renews the
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`specification value, set by the specification value setting device, with the specification value
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`determined by the specification value determining device.
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`50.
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`To the extent the ‘363 Accused Products include hardware or software owned by
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`third parties, the ‘363 Accused Products still infringe the ‘363 Patent because Sony is vicariously
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`liable for making, selling, offering for sale, and/or using the patented technology by controlling
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`the design and operation of the Accused Products that are made, used and sold. For example,
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`pursuant to contractual license agreements, Sony directs and controls its customers’ use of the
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`Accused Products. Further, Sony derives a benefit from the manufacture and use of every
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`component of the entire system.
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`51.
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`Sony’s infringement of the ‘363 Patent injured and is injuring Bot M8 in an amount
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`to be proven at trial, but not less than a reasonable royalty.
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`COUNT II
`(Indirect Infringement of the ‘363 Patent pursuant to 35 U.S.C. § 271(b))
`
`Bot M8 repeats, realleges, and incorporates by reference, as if fully set forth herein,
`
`52.
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`the allegations of the preceding paragraphs, as set forth above.
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`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 18 of 61
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`53.
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`In addition to directly infringing the ‘363 Patent, Sony induces infringement under
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`35 U.S.C. § 271(b) by directing and controlling its customers to use the ‘363 Accused Proudcts in
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`an infringing manner.
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`54.
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`Customers may not use PlayStation 4 consoles, the PlayStation Network, or various
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`Sony developed video games without agreeing to various Sony contracts. These contracts provide
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`that Sony owns all intellectual property in the Accused Products, that Sony owns the software
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`operating the Accused Products, that customers may only use the Accused Products as provided
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`for and directed by Sony, and that customers may not modify the Accused Products or use them
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`other than as intended by Sony.
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`55.
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`The following is an excerpt from the PlayStation 4 license. It confirms that Sony
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`owns the PlayStation and the customer is only licensing the ability to use Sony’s system. It also
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`provides that the customer may not modify the PlayStation, and that Sony may modify the
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`PlayStation’s software without the consent of the user:
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`All rights to use System Software are granted by license only, and
`you are not granted any ownership rights or interests in System
`Software. SIE Inc and its licensors retain all intellectual property
`rights in System Software. All use of or access to System Software
`is subject to this Agreement's terms and applicable intellectual
`property laws. Except as this Agreement expressly grants, SIE Inc
`and its licensors reserve all rights in System Software.
`
`2. RESTRICTIONS
`
`You may not lease, rent, sublicense, publish, modify, patch, adapt
`or translate System Software. You may not reverse engineer,
`decompile or disassemble System Software, create System
`Software derivative works, or attempt to create System Software
`source code from its object code. You may not (i) use any
`unauthorized, illegal, counterfeit or modified hardware or software
`with System Software; (ii) use tools to bypass, disable or
`circumvent any PS4 system encryption, security or authentication
`mechanism; (iii) reinstall earlier versions of the System Software
`("downgrading"); (iv) violate any laws, regulations or statutes or
`rights of SIE Inc or third parties in connection with your access to
`
`
`
`
`- 18 -
`
`

`

`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 19 of 61
`
`
`
`or use of System Software; (v) use any hardware or software to
`cause System Software to accept or use unauthorized, illegal or
`pirated software or hardware; (vi) obtain System Software in any
`manner other than through SIE Inc's authorized distribution
`methods; or (vii) exploit System Software in any manner other
`than to use it with your PS4 system according to the accompanying
`documentation and with authorized software or hardware,
`including use of System Software to design, develop, update or
`distribute unauthorized software or hardware for use in connection
`with your PS4 system.
`
`These restrictions will be construed to apply to the greatest extent
`permitted by the law in your jurisdiction.
`
`3. SERVICES AND UPDATES; THIRD PARTY
`AGREEMENTS AND CONTENT
`
`SIE Inc may provide you with certain System Software updates,
`upgrades or services. Some updates, upgrades or services may be
`provided automatically without notice to you when you sign in to
`PlayStation™Network and others may be available to you through
`SIE Inc's website or authorized channels. You consent to SIE Inc
`providing you these automatic updates, upgrades and services.
`Services may include the latest update or download of a new
`release of System Software containing security patches, new
`technology or revised settings and features that may prevent access
`to unauthorized or pirated content or prevent use of unauthorized
`hardware or software in connection with your PS4 system. These
`updates, upgrades and services may have effects on the
`functionality of your PS4 system, and SIE Inc is not responsible to
`you for any such effects or any harm caused by the installation
`process.
`
`You must install or have installed the most current version of
`System Software as soon as you reasonably can. Some updates,
`upgrades or services may change your current settings, cause a loss
`of data or content or cause functionality or feature loss. SIE Inc
`recommends that you regularly back up all data that you can.
`
`https://doc.dl.playstation.net/doc/ps4-eula/ps4_eula_en.html.
`
`56.
`
`The following is an excerpt from the PlayStation Network license:
`
`Except as stated in this agreement, all content and software
`provided through PSN Services are licensed non-exclusively and
`revocably to you for your personal, private, non-transferable, non-
`commercial, limited use on a limited number of devices in the
`
`
`
`
`- 19 -
`
`

`

`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 20 of 61
`
`
`
`country in which your Account is registered. All intellectual
`property rights subsisting in PSN Services, including all software,
`data, and content subsisting in or used in connection with PSN
`Services, the Online ID and access to content and hardware used in
`connection with PSN Services (collectively defined as “Property”),
`belong to SIE LLC, its affiliates and its licensors. This license and
`all use or access to Property is expressly conditioned on your
`compliance with this agreement's terms, applicable Usage Terms,
`other applicable agreements, if any, and all applicable copyright
`and intellectual property rights laws.
`
`https://www.playstation.com/en-us/network/legal/terms-of-service/.
`
`
`57.
`
`Sony knowingly and actively aided and abetted the direct infringement of the ‘363
`
`Patent by instructing and encouraging its customers and developers to use the ‘363 Accused
`
`Products. Such instructions and encouragement included advising third parties to use the ‘363
`
`Accused Products in an infringing manner, providing a mechanism through which third parties
`
`may infringe the ‘363 Patent, advertising and promoting the use of the ‘363 Accused Products in
`
`an infringing manner, and distributing guidelines and instructions to third parties on how to use
`
`the ‘363 Accused Products in an infringing manner.
`
`COUNT III
`(Direct Infringement of the ‘540 Patent pursuant to 35 U.S.C. § 271(a))
`
`Bot M8 repeats, realleges, and incorporates by reference, as if fully set forth herein,
`
`58.
`
`the allegations of the preceding paragraphs, as set forth above.
`
`59.
`
`60.
`
`Sony infringes at least Claim 1 of the ‘540 Patent in violation of 35 U.S.C. § 271(a).
`
`Sony’s infringement is based upon literal infringement or, in the alternative,
`
`infringement under the doctrine of equivalents.
`
`61.
`
`Sony’s infringement includes making, using, advertising, importing, selling, and
`
`offering for sale PlayStation 4 consoles, PlayStation Network services, and video games developed
`
`by Sony or its subsidiaries (collectively, the “’540 Accused Products”). Sony’s acts of making,
`
`
`
`
`- 20 -
`
`

`

`Case 1:19-cv-07529-DLC Document 1 Filed 08/12/19 Page 21 of 61
`
`
`
`using, advertising, importing, selling, and offering for sale infringing products and services were
`
`and are without the permission, consent, authorization, or license of Bot M8.
`
`62.
`
`The ‘540 Accused Products practice the patented invention of the ‘540 Patent and
`
`infringed the ‘540 Patent because they use double authentication to authenticate gaming
`
`information and increase authentication reliability. Namely, before the PlayStation 4 motherboard
`
`loads an authentication program to authenticate actual gaming information, a preliminary
`
`authentication is carried out to confirm that the authentication program is a legitimate program
`
`which has not been manipulated. The PlayStation reads an authentication program from the
`
`memory of the motherboard, and then, stores the read out authentication program in another
`
`memory of the

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