Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 1 of 30
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE SOUTHERN DISTRICT OF TEXAS
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`FIRST AMENDED COMPLAINT
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`DEMAND FOR JURY TRIAL
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`Plaintiff WesternGeco L.L.C., for
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`its First Amended Complaint against
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`Defendants Petroleum Geo-Services ASA, PGS Geophysical AS and Petroleum Geo-Services,
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`Inc. (collectively, Geo) hereby alleges as follows and demands a jury trial on all issues so triable.
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`THE PARTIES
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`1. Plaintiff WesternGeco L.L.C. (Western) is a Delaware corporation having a
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`principal place of business at 10001 Richmond Avenue, Houston, Texas 77042-4299.
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`2. Upon information and belief, Defendant Petroleum Geo-Services ASA (Geo
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`ASA) is a Norwegian corporation having a principal place of business at Strandveien 4, P.O. Box
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`89, NO-1325, Lysaker, Norway, and using offices and conducting business operations in
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`Houston, Texas and Austin, Texas as set forth herein.
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`3. Upon information and belief, Defendant PGS Geophysical AS (Geo A/S) is a
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`Norwegian corporation having a principal place of business at Strandvein 4, P.O. Box 290, N-
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`1326, Lysaker, Norway and using offices and conducting business operations in Houston, Texas
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`Civil Action No. 4:13-cv-02725
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`Hon. Lynn N. Hughes
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`Jury Trial Demanded
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`WESTERNGECO L.L.C.,
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`Plaintiff,
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`v.
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`PETROLEUM GEO-SERVICES ASA,
`PGS GEOPHYSICAL AS, and
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`PETROLEUM GEO-SERVICES, INC.,
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`Defendants.
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`WESTERNGECO Exhibit 2063, pg. 1
`PGS v. WESTERNGECO
`IPR2014-01478
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`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 2 of 30
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`as set forth herein. Upon information and belief, Defendant Geo A/S is a wholly-owned
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`subsidiary of Defendant Geo ASA.
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`4. Upon information and belief, Defendant Petroleum Geo-Services, Inc. (Geo
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`Inc.) is a Delaware corporation having a principal place of business at 15150 Memorial Drive,
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`Houston, Texas 77079 and having an agent for service of process registered with the Texas
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`Secretary of State’s office. Upon information and belief, Defendant Geo Inc. is a wholly-owned
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`subsidiary of Defendant Geo ASA.
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`NATURE OF THE ACTION
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`5. This is a civil action for the willful infringement of United States Patent Nos.
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`7,293,520 (the ’520 patent), 7,080,607 (the ’607 patent), 7,162,967 (the ’967 patent), and
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`6,691,038 (the ’038 patent) (collectively, Patents-in-Suit). This action arises under the Patent
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`Laws of the United States, 35 U.S.C. § 1, et seq.
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`JURISDICTION AND VENUE
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`6. This Court has subject matter jurisdiction over the infringement action
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`pursuant to 28 U.S.C. §§ 1331 and 1338(a).
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`7. Geo ASA, Geo A/S and Geo Inc. are each subject to personal jurisdiction in
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`this Court as evidenced by, inter alia, their presence in Texas and their systematic and
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`continuous contacts with the State of Texas.
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`Geo ASA
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`8. Upon information and belief, Geo ASA has an active business presence in this
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`district. For example, the 2009 and 2010 Annual Reports for Geo ASA list three “worldwide
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`offices” located in Texas, two in Houston and one in Austin. Geo ASA’s 2011 and 2012 Reports
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`list five offices in Texas, four in Houston and one in Austin. (Ex. E) Upon information and
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`WESTERNGECO Exhibit 2063, pg. 2
`PGS v. WESTERNGECO
`IPR2014-01478
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`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 3 of 30
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`belief, these offices include Geo ASA’s business activities, and not merely the activities of its
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`subsidiaries. For example, the 2009 Annual Report defined “PGS or the Company” as Geo
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`ASA, and then stated that “PGS [i.e., Geo ASA] operates through the business units: Marine and
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`Data Processing & Technology” and that “PGS [i.e., Geo ASA] acquires and processes seismic
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`data.” Upon information and belief, Geo ASA employees have repeatedly conducted business in
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`Houston offices throughout the period of infringement, i.e., 2007 to present.
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`9. Upon information and belief, Geo ASA uses and has used Houston addresses
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`and Houston-based agents in its legal, financial, and business dealings, and to petition the federal
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`government. For example, Geo ASA SEC filings from 2007 to 2013 include Geo ASA’s
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`disclosure of a Houston-based agent for service of process. (Ex. F) Geo ASA’s SEC filings,
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`investor presentations and website recite a Houston-area telephone number for “investor
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`services.” (Ex. G) A 2009 Geo ASA Intellectual Property Agreement recited a Houston contact
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`address for Geo ASA and invoked Texas law. (Ex. H) Geo ASA similarly used a Houston
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`address in a 2010 federal trademark filing for its GeoStreamer mark, which is used in the
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`accused marine seismic surveys. (Ex. I) And Geo ASA’s filings in a 2013 bankruptcy case in
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`Delaware recite a Houston business address for Geo ASA. (Ex. J)
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`Geo A/S
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`10. Upon information and belief, Geo A/S has an active business presence in this
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`district. As set forth in greater detail below, on information and belief, Geo A/S employees have
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`used Houston business addresses when interacting with ION Geophysical Corp. and its affiliates
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`(collectively, ION) to negotiate for, purchase, and supply the DigiFIN and Lateral Controller
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`products accused of infringement. For example, Geo A/S contracts with ION regarding DigiFIN
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`WESTERNGECO Exhibit 2063, pg. 3
`PGS v. WESTERNGECO
`IPR2014-01478
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`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 4 of 30
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`recite a Houston business address for Geo A/S, are “governed by and construed according to the
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`laws of Harris County, Texas” and are enforceable “by arbitration to be held in Houston, Texas.”
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`Geo Inc.
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`11. Upon information and belief, Geo Inc. has an active business presence in this
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`district. For example, a sworn affidavit of James Brasher, Vice President and Senior Legal
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`Counsel of Geo Inc. provided by Geo Inc. to Western on April 23, 2010 in connection with
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`WesternGeco L.L.C. v. ION Geophysical Corp., No. 4:09-CV-01827 (S.D. Tex.) (“the ION
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`litigation”) stated that Geo Inc. “markets seismic services to customers in the United States.”
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`(Ex. K) As another example, Geo ASA’s Annual Reports from at least 2009-2012 disclose a
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`Geo Inc. office on Memorial Drive in Houston, Texas which, on information and belief, is Geo
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`Inc.’s primary place of business.
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`“Geo”
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`12. Upon information and belief, Geo ASA and its subsidiaries, including Geo
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`A/S and Geo Inc., operate together as an integrated business based on business units that cut
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`across legal entities, rather than based on the business entities themselves. As set forth below,
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`each Geo entity may thereby contribute to, induce and cause actions of other Geo entities, with
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`the knowledge and intent that those actions will have effects within this judicial district.
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`13. For example, upon information and belief, Geo ASA, Geo A/S and Geo Inc.
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`employees have attended and plan to attend conferences and trade shows within this judicial
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`district to promote their commercial interests under the generic name “PGS,” i.e., “Geo,” without
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`distinguishing between any specific legal entities. This promotion has included advertisements
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`for the products and services accused of infringing Western’s Patents-in-Suit. Upon information
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`and belief, Geo exhibited at the 2013 Society of Exploration Geophysicists International
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`WESTERNGECO Exhibit 2063, pg. 4
`PGS v. WESTERNGECO
`IPR2014-01478
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`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 5 of 30
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`Exposition and Annual Meeting (Expo), that took place in Houston, Texas in September 2013, in
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`order to promote products and services incorporating ION’s DigiFIN and Lateral Controller that
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`infringe Western’s Patents-in-Suit. Upon information and belief, Geo employees have attended
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`and exhibited at prior Expo annual meetings, including those within this judicial district, in order
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`to promote products and services incorporating ION’s DigiFIN and Lateral Controller that
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`infringe Western’s Patents-in-Suit.
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`14. Upon information and belief, Geo ASA, Geo A/S and Geo Inc. share a
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`website: http://www.pgs.com. Upon information and belief, Geo ASA employees are
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`responsible for at least some of the content on this site. Upon information and belief, this
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`website is accessible nationally and internationally, and is active in interstate commerce. This
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`website touts and advertises the products, components and services accused of infringement in
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`this Complaint. This judicial district comprises one of the largest worldwide markets for the
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`advertised marine seismic services, and upon information and belief, Geo ASA, Geo A/S and
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`Geo Inc. each intend for customers and potential customers within this judicial district to access
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`this website and to purchase Geo products and services. This website additionally lists major
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`U.S. offices and career opportunities in Houston and Austin, including a recruitment event at the
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`annual International Association of Geophysical Contractors meeting held in Houston targeted
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`towards “Geoscience professors and students from local universities.” (Ex. L)
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`Additional Bases for Specific Jurisdiction
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`15. Upon information and belief, Geo ASA, Geo A/S and Geo Inc. are each
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`additionally subject to personal jurisdiction in this Court due to their specific activities in the
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`State of Texas relating to the supply, marketing and selling of products and services, and
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`WESTERNGECO Exhibit 2063, pg. 5
`PGS v. WESTERNGECO
`IPR2014-01478
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`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 6 of 30
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`components thereof, that infringe the Patents-in-Suit as alleged and stated within this section and
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`throughout this Complaint.
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`16. Venue is proper in this judicial district pursuant to 28 U.S.C. §§ 1391 and
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`1400(b).
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`THE PATENTS
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`17. On November 13, 2007, the ’520 patent, titled “Control System For
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`Positioning Of A Marine Seismic Streamers,” was duly and legally issued to Western as
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`assignee. The ’520 patent teaches and claims control systems and streamer positioning devices
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`for a variety of steering modes in marine seismic surveys. These steering modes enable
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`sophisticated geophysical exploration for natural resources, promote the efficiency and efficacy
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`of seismic surveys, and improve the safety of those operations. Western is the current assignee
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`of the ’520 patent, and is the owner of the right to sue and to recover for any current or past
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`infringement of that patent. A copy of the ’520 patent is attached hereto as Exhibit A.
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`18. On July 25, 2006, the ’607 patent, titled “Seismic Data Acquisition Equipment
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`Control System,” was duly and legally issued to Western as assignee. The ’607 patent teaches
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`and claims prediction and control units for use with streamer positioning devices to dynamically
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`manage measurements and commands for lateral steering. This prediction and control allows
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`operators to overcome the limitations of mis-measurements and signal latency across the many
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`square miles of a marine seismic survey array. Western is the current assignee of the ’607
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`patent, and is the owner of the right to sue and to recover for any current or past infringement of
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`that patent. A copy of the ’607 patent is attached hereto as Exhibit B.
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`19. On January 16, 2007, the ’967 patent, titled “Control System For Positioning
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`Of Marine Seismic Streamers,” was duly and legally issued to Western as assignee. The ’967
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`WESTERNGECO Exhibit 2063, pg. 6
`PGS v. WESTERNGECO
`IPR2014-01478
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`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 7 of 30
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`patent teaches and claims a steering system apportioned between a shipboard global control
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`system and local control systems on streamer positioning devices spread out across a seismic
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`array. This distributed control balances the measurement, computing power and communication
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`requirements across the various components of the marine seismic vessel and array to improve
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`steering. Western is the current assignee of the ’967 patent, and is the owner of the right to sue
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`and to recover for any current or past infringement of that patent. A copy of the ’967 patent is
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`attached hereto as Exhibit C.
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`20. On February 10, 2004, the ’038 patent, titled “Active Separation Tracking
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`And Positioning System For Towed Seismic Arrays,” was duly and legally issued to Western as
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`assignee. The ’038 patent teaches and claims an array tracking and positioning system for
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`repeating seismic surveys of the same location over time. This system allows for time-lapse, or
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`4-D seismic surveys, which allow reservoirs and formations to be monitored over time to
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`manage the production of natural resources. Western is the current assignee of the ’038 patent,
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`and is the owner of the right to sue and to recover for any current or past infringement of that
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`patent. A copy of the ’038 patent is attached hereto as Exhibit D.
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`GEO AND DIGIFIN
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`21. Upon information and belief, every DigiFIN and Lateral Controller supplied
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`or used by Geo, as discussed below, was manufactured in and supplied from the United States.
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`22. The supplying or causing the supply of DigiFIN and/or the Lateral Controller
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`in or from the United States was found to infringe the ’520 patent, the ’607 patent, the ’967
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`patent, and the ’038 patent in the ION litigation, the judgment, verdict and rulings of which are
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`hereby incorporated by reference. Western was not compensated for some or all of Geo’s
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`infringement as a result of the ION litigation. For example, the ION Court limited the royalty
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`WESTERNGECO Exhibit 2063, pg. 7
`PGS v. WESTERNGECO
`IPR2014-01478
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`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 8 of 30
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`damages that Western could seek from ION in order to ensure that ION maintained a profit,
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`while recognizing that Western’s harm for the infringement was greater than such a royalty and
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`allowing Western to seek higher royalty damages from ION’s customers.
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`23. Upon information and belief, Geo ASA, Geo A/S and Geo Inc. each have
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`been aware of the Patents-in-Suit and that DigiFIN and/or the Lateral Controller could infringe
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`those patents since at least around September 2008, when ION discussed the possibility of such
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`infringement with at least Vidar Hovland and Paul Courtenay, Geo employees as discussed
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`below.
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`24. Upon information and belief, Geo ASA, Geo A/S and Geo Inc. additionally
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`each have been aware of the Patents-in-Suit and that DigiFIN and/or the Lateral Controller could
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`infringe those patents since at least around December 8, 2009, when Western provided Geo with
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`a copy of Western’s Complaint in the ION litigation.
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`25. Upon information and belief, Geo ASA, Geo A/S and Geo Inc. additionally
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`each have been aware since around June 11, 2012 of the summary judgment in the ION litigation
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`that supplying or causing to be supplied DigiFIN and the Lateral Controller for use in marine
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`seismic surveys outside the United States infringes the ’520 patent.
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`26. Upon information and belief, Geo ASA, Geo A/S and Geo Inc. additionally
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`each have been aware since around August 16, 2012 of the jury verdict in the ION litigation that
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`supplying or causing to be supplied DigiFIN and/or the Lateral Controller for use in marine
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`seismic surveys outside the United States infringes claims 18, 19, and 23 of the ’520 patent;
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`claim 15 of the ’607 patent; claim 15 of the ’967 patent; and claim 14 of the ’038 patent under 35
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`U.S.C. §§ 271(f)(1) and (2).
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`WESTERNGECO Exhibit 2063, pg. 8
`PGS v. WESTERNGECO
`IPR2014-01478
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`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 9 of 30
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`Geo ASA
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`27. Upon information and belief, Geo ASA has caused the supply of DigiFIN and
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`the Lateral Control in or from the United States for use in marine seismic surveys, and induced
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`and contributed to the use, sale and offer for sale of DigiFIN and the Lateral Controller in
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`surveys within the United States.
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`28. In a March 26, 2010 letter to Western, counsel for Geo Inc. disclosed that
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`“Petroleum Geo-Services ASA [Geo ASA] is responsible for outfitting the marine vessels and
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`for maintaining the records regarding what equipment is used on these vessels for its various
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`customers.” (Ex. M) Geo Inc.’s counsel further stated that “acquisition of equipment for [the
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`infringing vessels] is under the direction and control of Petroleum Geo-Services ASA [Geo
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`ASA].” Espen Sandvik, general counsel for Geo ASA at the time, was included in this
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`correspondence.
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`29. Upon information and belief, Geo ASA began working with ION to design
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`DigiFIN in 2005, and the infringing supply and use of DigiFIN began in 2007 and continued into
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`at least 2012.
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`30. Upon information and belief, following meetings in Houston in 2005, Geo
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`ASA entered into a DigiFIN Launch Partner Agreement with ION in 2006, which required ION
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`to supply DigiFINs from the United States for use abroad. This agreement was executed by
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`Vidar Hovland, a self-described employee of Geo ASA at the time.
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`31. Upon information and belief, in 2007, Oyvind Hillesund, an employee of Geo
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`ASA at the time, contacted ION while working from a Houston address to continue the
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`discussion of “Lateral Steering,” the technology that would be embodied in DigiFIN. In 2009,
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`an attorney for Geo Inc. confirmed to Western that Mr. Hillesund was an employee of Geo ASA.
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`WESTERNGECO Exhibit 2063, pg. 9
`PGS v. WESTERNGECO
`IPR2014-01478
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`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 10 of 30
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`(Ex. N) Espen Sandvik, general counsel for Geo ASA at the time, was also included in this
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`confirmatory correspondence. Upon information and belief, in 2007, Sverre Olsen, an employee
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`of Geo ASA at the time, met with ION in Houston to discuss the results of preliminary DigiFIN
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`tests.
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`32. Upon information and belief, in 2007, Rune Eng, an employee of Geo ASA at
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`the time, stated in a press release that Geo was “actively involved in maturing this [DigiFIN]
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`technology through the ION-PGS Launch Partner Agreement, which enables first adoption of the
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`technology by PGS” and that Geo was “pleased with the results of the tests on the Atlantic
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`Explorer and Pacific Explorer.” (Ex. O) Press releases from Geo ASA at this time describe Mr.
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`Eng as “Group President Marine of Petroleum Geo-Services ASA,” i.e., Geo ASA. (Ex. P)
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`33. Upon information and belief, in a 2008 Geo ASA presentation to investors,
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`Sverre Strandenes promoted the “DigiFIN Steerable streamers” on Geo’s Ramform Sovereign
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`vessel as resulting in “[f]aster deployment and retrieval” and “reduced tangling risk and faster
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`line turns.” (Ex. Q) Press releases from Geo ASA at this time describe Mr. Strandenes as
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`“Group President Data Processing & Technology of Petroleum Geo-Services ASA,” i.e., Geo
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`ASA. (Ex. P)
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`34. Upon information and belief, Geo ASA entered into Master Purchase
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`Agreements with ION in 2009 and 2010 for acquiring DigiFIN. The agreements were signed by
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`Vidar Hovland, a Geo ASA employee at the time as set forth above. The 2009 and 2010 Master
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`Purchase Agreements were “governed by and construed according to the laws of Harris County,
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`Texas” and enforceable “by arbitration to be held in Houston, Texas.”
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`35. Upon information and belief, Geo ASA approved expenditures for DigiFIN.
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`For example, on information and belief, Geo ASA authorized expenditures for the purchase of
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`WESTERNGECO Exhibit 2063, pg. 10
`PGS v. WESTERNGECO
`IPR2014-01478
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`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 11 of 30
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`184 DigiFIN units for the “DigiFIN System for the [Geo vessel] Ramform Sterling for their
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`Statoil Job during Summer 2009.” This expenditure was approved by Gottfred Langseth, the
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`CFO of Geo ASA. The expenditure also required the approval of Rune Eng, a Geo ASA
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`employee at the time as discussed above. By approving these expenditures, Geo ASA caused
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`DigiFIN to be supplied in and from the United States. As set forth below, this infringed
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`Western’s patents under 35 U.S.C. § 271(f).
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`36. Upon information and belief, Geo ASA caused similar infringing supplies of
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`DigiFIN from Houston to go to at least Geo’s Ramform Sovereign, Ramform Viking, and Apollo
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`vessels over the ensuing years.
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`37. Upon information and belief, Geo ASA participated in applications to the
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`United States to perform seismic surveys with these vessels offshore of Texas using ports in
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`Galveston and offices in Houston. For example, a 2013 permit application for the PGS Apollo
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`was signed by Sverre Strandenes, a Geo ASA employee as discussed above, certifying the
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`accuracy of all the information contained therein. (Ex. R) The resulting permit was likewise
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`signed by Mr. Strandenes as “permittee.” (Ex. S) As set forth below, the use, sale or offer for
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`sale of DigiFIN in marine seismic surveys within the United States infringes Western’s patents
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`under 35 U.S.C. § 271(a), and Geo ASA induced and contributed to such infringement under 35
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`U.S.C. § 271 (b) and (c), respectively.
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`Geo A/S
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`38. Upon information and belief, Geo A/S purchased DigiFIN from ION from
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`2007 through at least 2012. Geo A/S took title to those DigiFIN while in ION’s warehouse,
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`shipped those DigiFIN into this judicial district, and supplied those DigiFIN in or from this
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`judicial district for use on marine seismic surveys within and outside the United States. Upon
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`WESTERNGECO Exhibit 2063, pg. 11
`PGS v. WESTERNGECO
`IPR2014-01478
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`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 12 of 30
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`information and belief, Geo A/S has performed marine seismic surveys using DigiFIN and the
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`Lateral Controller within the United States’ Exclusive Economic Zone (EEZ).
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`39. Upon information and belief, Geo A/S entered into a Master Purchase
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`Agreement with ION in 2008 for acquiring, inter alia, DigiFIN. The 2008 Master Purchase
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`Agreement was “governed by and construed according to the laws of Harris County, Texas” and
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`enforceable “by arbitration to be held in Houston, Texas.” The agreement further states it is
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`“between PGS Geophysical Inc. [sic Geo A/S] and ION.”
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`40. The 2009 Master Purchase Agreement discussed above in paragraph 34
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`similarly states that it is “between PGS Geophysical Inc. [sic Geo A/S] and ION.” To the extent
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`the agreement was not between Geo ASA and ION, as averred above, upon information and
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`belief it was between Geo A/S and ION.
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`41. Upon information and belief, Geo A/S entered into a Master Purchase
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`Agreement with ION in 2010-2012 for acquiring, inter alia, DigiFIN. The 2011-2012 Master
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`Purchase Agreement was “governed by and construed according to the laws of Harris County,
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`Texas” and enforceable “by arbitration to be held in Houston, Texas.” The agreement describes
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`Geo A/S as “a company incorporated and organized under the laws of Texas.”
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`42. To the extent that any of Mr. Hovland, Mr. Courtenay, Mr. Hillesund, Mr.
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`Olsen, Mr. Eng or Mr. Standenes were not employees of Geo ASA as set forth above, upon
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`information and belief they were employees of Geo A/S, and Western incorporates the above
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`averments herein accordingly.
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`43. Upon information and belief, Geo A/S supplied or caused the supply of
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`DigiFIN in or from the United States to at least the Ramform Sterling, Ramform Sovereign,
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`Ramform Viking, and Apollo, thereby infringing Western’s patents under 35 U.S.C. § 271(f).
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`WESTERNGECO Exhibit 2063, pg. 12
`PGS v. WESTERNGECO
`IPR2014-01478
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`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 13 of 30
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`44. Upon information and belief, Geo A/S has used, sold or offered for sale
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`marine seismic systems including DigiFIN within the United States, including seismic surveys
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`with the United States’ Exclusive Economic Zone, thereby infringing Western’s patents under 35
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`U.S.C. § 271(a). To the extent Geo A/S did not perform these surveys, it induced and
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`contributed to such infringement under 35 U.S.C. § 271(b) and (c), respectively.
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`Geo Inc.
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`45. Upon information and belief, Geo Inc. markets, offers for sale, and sells
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`marine seismic surveys including the accused DigiFIN and Lateral Controller. For example, Geo
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`Inc. provided an affidavit in the ION litigation stating that Geo Inc. “markets seismic services to
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`customers in the United States.”
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`46. Upon information and belief, Geo Inc. employees and resources are used to
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`perform marine seismic surveys using DigiFIN within the EEZ. For example, Geo applications
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`to the U.S. government and permits received from the U.S. government for such surveys list Geo
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`Inc.’s principle office as whom “[t]he activity will be conducted by” and the location for “the
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`individual(s) in charge of the field operations.” To the extent Geo A/S did not perform these
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`surveys as set forth above, on information and belief, Geo Inc. did and thereby infringed
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`Western’s patents under 35 U.S.C. § 271(a). To the extent Geo Inc. did not perform these
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`surveys, it induced and contributed to such infringement under 35 U.S.C. § 271(b) and (c),
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`respectively.
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`47. The 2008 and 2009 Master Purchase Agreements state that they are “between
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`PGS Geophysical Inc. [sic Geo Inc.] and ION.” To the extent neither Geo ASA nor Geo A/S
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`entered into either of these agreements, upon information and belief, Geo Inc. did, and to the
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`extent Mr. Hillesund or any of the other Geo employees referenced above was neither an
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`WESTERNGECO Exhibit 2063, pg. 13
`PGS v. WESTERNGECO
`IPR2014-01478
`
`

`
`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 14 of 30
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`employee of Geo ASA nor Geo A/S, upon information and belief, they were an employee of Geo
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`Inc., and Geo Inc. thereby infringed Western’s Patents-in-Suit under 35 U.S.C. § 271(f) as well.
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`COUNT I – INFRINGEMENT OF THE ’520 PATENT
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`48. Western repeats and incorporates by reference the allegations set forth in
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`paragraphs 1-47 above.
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`49. Geo ASA, Geo A/S and Geo Inc. each have infringed the ’520 patent, literally
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`and/or under the doctrine of equivalents, by making, using, offering to sell, selling, supplying
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`and/or causing to be supplied in or from the United States products and services incorporating
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`DigiFIN and
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`the Lateral Controller—or components
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`thereof—and/or
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`inducing and/or
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`contributing to such conduct by each other and/or other Geo entities, without authority and in
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`violation of 35 U.S.C. § 271(a), (b), (c) and/or (f). Geo Inc. previously argued that the
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`importation of seismic data can infringe a United States patent under 35 U.S.C. § 271(g). To the
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`extent Geo Inc. is correct, Geo ASA, Geo A/S and Geo Inc. each infringe under this provision as
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`well.
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`50. The DigiFIN and/or Lateral Controller comprise a substantial portion of the
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`components of the system covered by the ’520 patent. For example, the DigiFIN units supplied
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`from the United States used on Geo’s marine seismic vessels comprise streamer positioning
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`devices as recited in claim 18 of the ’520 patent. The Lateral Controller also supplied from the
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`United States and intended to be combined with the DigiFIN units is configured to operate in one
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`or more control modes selected from a feather angle mode, a turn control mode, and a streamer
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`separation mode. The similar supply of DigiFIN, as well as DigiFIN and the Lateral Controller,
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`from the United States for their intended use abroad by Geo’s competitors was found to infringe
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`the ’520 patent under 35 U.S.C. § 271(f) in the ION litigation. The DigiFIN and Lateral
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`WESTERNGECO Exhibit 2063, pg. 14
`PGS v. WESTERNGECO
`IPR2014-01478
`
`

`
`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 15 of 30
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`Controller are especially made and adapted for use in the invention of the ’520 patent and are not
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`staple articles or commodities of commerce suitable for substantial noninfringing uses.
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`Geo ASA
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`51. Upon information and belief, Geo ASA, by entering into a Launch Partner
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`Agreement with ION in 2006, working with ION to finalize and test DigiFIN, entering into
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`Master Purchase Agreements with ION in 2009 and 2010, approving expenditures for the
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`purchase of DigiFIN and the Lateral Controller, purchasing DigiFIN and the Lateral Controller,
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`applying for U.S. permits for conducting seismic surveys, and/or equipping vessels with DigiFIN
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`and the Lateral Controller, supplied or caused to be supplied the DigiFIN and Lateral Controller
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`in or from the United States so as to actively induce their combination outside the United States
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`in a manner that would infringe the ’520 patent if such combination occurred within the United
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`States in violation of at least 35 U.S.C. § 271(f). Upon further information and belief, Geo ASA
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`contributed to and induced Geo A/S’s and/or Geo Inc.’s infringement, as set forth below, in
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`violation of at least 35 U.S.C. § 271(b) and (c), respectively.
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`Geo A/S
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`52. Upon information and belief, Geo A/S, by entering into a Launch Partner
`
`Agreement with ION in 2006, working with ION to finalize and test DigiFIN, entering into
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`Master Purchase Agreements with ION in 2008, 2009, 2010, and 2011-2012, purchasing
`
`DigiFIN and the Lateral Controller, applying for U.S. permits for conducting seismic surveys,
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`and/or equipping vessels with DigiFIN and the Lateral Controller, supplied or caused to be
`
`supplied the DigiFIN and Lateral Controller in or from the United States so as to actively induce
`
`their combination outside the United States in a manner that would infringe the ’520 patent if
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`such combination occurred within the United States in violation of at least 35 U.S.C. § 271(f).
`
`WESTERNGECO Exhibit 2063, pg. 15
`PGS v. WESTERNGECO
`IPR2014-01478
`
`

`
`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 16 of 30
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`Upon information and belief, Geo A/S, by using, selling or offering for sale marine seismic
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`systems including DigiFIN within the United States, including seismic surveys within the EEZ,
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`infringed Western’s patents under 35 U.S.C. § 271(a). Upon further information and belief, to
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`the extent Geo A/S did not perform these surveys, it induced Geo Inc.’s infringement, as set forth
`
`below, in violation of at least 35 U.S.C. § 271(b) and (c), respectively.
`
`Geo Inc.
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`53. Upon information and belief, Geo Inc., by working with ION to finalize and
`
`test DigiFIN, entering into Master Purchase Agreements with ION in 2008 and 2009, applying
`
`for U.S. permits for conducting seismic surveys, and/or equipping vessels with DigiFIN and the
`
`Lateral Controller, supplied or caused to be supplied the DigiFIN and Lateral Controller in or
`
`from the United States so as to actively induce their combination outside the United States in a
`
`manner that would infringe the ’520 patent if such combination occurred within the United States
`
`in violation of at least 35 U.S.C. § 271(f). Upon information and belief, Geo Inc., by using,
`
`selling or offering for sale marine seismic systems including DigiFIN within the United States,
`
`including seismic surveys within the EEZ, infringed Western’s patents under 35 U.S.C. § 271(a).
`
`Upon further information and belief, to the extent Geo Inc. did not perform these surveys, it
`
`induced and contributed to such infringement under 35 U.S.C. § 271(b) and (c), respectively.
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`Knowledge and Willfulness
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`54. Upon information and belief, Geo ASA, Geo A/S and Geo Inc. each were
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`aware that the DigiFIN and the Lateral Controller products were made and adapted to infringe
`
`Western’s ’520 patent, and Geo ASA, Geo A/S and Geo Inc. each intended that DigiFIN and the
`
`Lateral Controller would be combined outside the United States in a manner that would infringe
`
`Western’s ’520 patent if such a combination occurred within the United States. Upon
`
`WESTERNGECO Exhibit 2063, pg. 16
`PGS v. WESTERNGECO
`IPR2014-01478
`
`

`
`Case 4:13-cv-02725 Document 79 Filed in TXSD on 04/07/14 Page 17 of 30
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`information and belief, Geo ASA, Geo A/S and Geo Inc. each specifically intended to induce
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`infringement of the ’520 patent, and were aware that they have induced acts that constitute
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`infringement. Upon information and belief, Geo ASA, Geo A/S and Geo Inc. each have
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`contributed to the infringement of the ’520 patent, and were aware that they have contributed to
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`acts that constitute infringement.
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`55. None of Geo ASA, Geo A/S, or Geo Inc. has any license or other authori