Case 6:14-cv-00411-LED Document 1 Filed 05/05/14 Page 1 of 8 PageID #: 1
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`TYLER DIVISION
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`
`
`MASS ENGINEERED DESIGN, INC.,
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`
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`Civil Action No. ___________
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`
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`JURY TRIAL DEMANDED
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`§
`§
`§
`§
`§
`§
`§
`§
`§
`
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`
`
`
`
`
`
`
`
`v.
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`SPACECO BUSINESS SOLUTIONS, INC.
`
`Plaintiff,
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`Defendant.
`
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`Plaintiff, Mass Engineered Design, Inc. (hereinafter, “MASS” or “Plaintiff”), by and
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`through its undersigned counsel, files this Original Complaint against Defendant, SpaceCo
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`Business Solutions, Inc. (hereinafter, “SpaceCo” or “Defendant”), as follows:
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`NATURE OF THE ACTION
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`1. This is a patent infringement action to stop Defendant’s infringement of United States
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`Patent Nos. RE36,978 (the “‘978 Patent”) and 8,462,103 (the “’103 Patent) (collectively, the
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`“Patents-in-Suit”).
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`PARTIES
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`2. Plaintiff Mass Engineered Design, Inc. is a limited liability company organized and
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`existing under the laws of Ontario, Canada.
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`3. Upon information and belief, Defendant SpaceCo Business Solutions, Inc. is a corporation
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`organized and existing under the laws of the State of Nevada, with its principal place of business
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`located at 13100 East Albrook Drive, Suite 100, Denver, Colorado 80239.
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`JURISDICTION AND VENUE
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`4. This action arises under the Patent Laws of the United States, 35 U.S.C. § 1 et seq.,
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`including 35 U.S.C. §§ 271, 281, 283, 284, and 285. This Court has subject matter jurisdiction
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`over this case for patent infringement under 28 U.S.C. §§ 1331 and 1338(a).
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`5. The Court has personal jurisdiction over Defendant, including because Defendant has
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`minimum contacts within the State of Texas; Defendant has purposefully availed itself of the
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`privileges of conducting business in the State of Texas; Defendant has sought protection and
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`benefit from the laws of the State of Texas; Defendant regularly conducts business within the State
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`of Texas; and Plaintiff’s cause of action arises directly from Defendant’s business contacts and
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`other activities in the State of Texas.
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`6. More specifically, Defendant, directly and/or through intermediaries, makes, distributes,
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`imports, offers for sale, sells, advertises, and/or uses, multi-monitor display stands and/or systems,
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`including the accused products identified herein, that practice the claimed multi-display systems
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`of the Patents-in-Suit in the State of Texas. Defendant has committed patent infringement in the
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`State of Texas, and/or has induced others to commit and/or has contributed to patent infringement
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`in the State of Texas. Defendant solicits customers in the State of Texas. Defendant has paying
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`customers who are residents of the State of Texas and who purchase and/or use Defendant’s
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`infringing products and services in the State of Texas. Further, Defendant has an interactive
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`website that is accessible from the State of Texas.
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`7. Venue is proper in the Eastern District of Texas pursuant to 28 U.S.C. §§ 1391 and 1400(b),
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`including because Defendant has purposefully availed themselves of the privileges of conducting
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`business in the Eastern District of Texas; Defendant regularly conducts business within the Eastern
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`District of Texas; and Plaintiff’s cause of action arises directly from Defendant’s business contacts
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`and other activities in the Eastern District of Texas.
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`8. More specifically, Defendant, directly and/or through intermediaries, makes, distributes,
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`2
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`imports, offers for sale, sells, advertises, and/or uses, multi-monitor display stands and/or systems,
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`including the accused products identified herein, that practice the claimed multi-display systems
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`of the Patents-in-Suit in the Eastern District of Texas. Defendant has committed patent
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`infringement in the Eastern District of Texas, has induced others to commit infringement in the
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`Eastern District of Texas, and/or has contributed to patent infringement in the Eastern District of
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`Texas. Defendant solicits customers in the Eastern District of Texas. Defendant has paying
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`customers who are residents of Eastern District of Texas and who purchase and/or use the
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`Defendant’s products and services in the Eastern District of Texas.
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`COUNT I – INFRINGEMENT OF U.S. PATENT NO. RE36,978
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`9. MASS refers to and incorporates herein the allegations of Paragraphs 1-8 above.
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`10. The ‘978 Patent, entitled “Dual Display System,” was duly and legally issued by the United
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`States Patent and Trademark Office (“USPTO”) on December 5, 2000 after full and fair reissue
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`examination. Additionally, the ‘978 Patent was subject to reexamination on March 4, 2010. A
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`Reexamination Certificate issued on May 10, 2011, confirming the patentability of claims 1-8, 13,
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`16 and 17 (the remaining claims were not the subject of reexamination) and also adding new claims
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`18-38. Plaintiff is the exclusive licensee of the ‘978 Patent and it has all substantial rights to the
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`‘978 Patent, including the right and standing to sue and recover damages for past, present and
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`future infringement of the patent.
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`11. Upon information and belief, Defendant makes, makes, distributes, imports, offers for sale,
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`sells, advertises, and/or uses, without limitation, multi-monitor display stands and/or systems,
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`namely products comprising, inter alia, a base member (including as this Court has previously
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`construed that term), at least a pair of electronic displays (including as this Court has previously
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`construed that term), an arm assembly, support means (including as this Court has previously
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`3
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`construed that term), and mounting means (including as this Court has previously construed that
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`term). Plaintiff is informed and believes that Defendant infringes the ‘978 Patent by and through
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`at least its manufacture, distribution, importation, offer to sell, sale, and/or use of the products
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`comprising at least the following SpaceArm Model Nos. SA02; SA04; SA22; SA44; SS02;
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`SS02X4; SS02X8; SMM02/SA01; SMM23/SA02; and SMM22/SA02.
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`12. Additionally, or in the alternative, upon information and belief, Plaintiff is informed and
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`believes that Defendant has induced infringement of the ‘978 Patent in this judicial district, the
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`State of Texas, and elsewhere in the United States, by actions comprising intentionally inducing
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`infringement of the ‘978 Patent in this judicial district, the State of Texas, and elsewhere in the
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`United States, including by aiding or abetting at least customers and other end users to use said
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`products. Upon information and belief, such induced infringement has occurred at least since
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`Defendant became aware of the ‘978 Patent, which was at least on or about November 2009, and
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`Defendant’s inducement of infringement involves Defendant’s knowledge that the induced acts
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`constitute patent infringement.
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`13. Additionally, or in the alternative, upon information and belief, Plaintiff is informed and
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`believes that Defendant has contributed to infringement of the ‘978 Patent in this judicial district,
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`the State of Texas, and elsewhere in the United States, by actions comprising contributing to at
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`least the use of said products by customers and/or other end users in this judicial district, the State
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`of Texas, and elsewhere in the United States, and such contributory infringement necessarily
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`involves knowledge that such systems and apparatuses are especially made or especially adapted
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`for use in an infringement of the ‘978 Patent, and not a staple article or commodity of commerce
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`suitable for substantial non-infringing use.
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`14. Each of Defendant’s aforesaid activities has been without authority and/or license from
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`Plaintiff.
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`15. Further, Defendant’s infringement is willful. Defendant has had knowledge of its
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`infringement of the ‘978 Patent since at least November 2009.
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`16. Defendant was further made aware of the specific way in which its products infringed the
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`‘978 Patent at least because it was served Preliminary Infringement Contentions pursuant to the
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`Court’s Local Rules in the case styled Mass Engineered Design, Inc., et al. v. 9X Media, Inc., et
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`al., C.A. No. 2:09-cv-0358 (United States District Court for the Eastern District of Texas).
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`17. Defendant’s awareness of the ‘978 Patent and infringement of at least the ‘978 Accused
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`Products constitutes an objectively high likelihood that SpaceCo’s actions constituted
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`infringement of a valid patent.
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`18. Plaintiff is entitled to recover from Defendant the damages sustained by Plaintiff as a result
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`of Defendant’s wrongful acts in an amount subject to proof at trial, which, by law, cannot be less
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`than a reasonable royalty, together with interest and costs as fixed by this Court under 35 U.S.C.
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`§ 284.
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`19. Defendant’s infringement of Plaintiff’s exclusive rights under the ‘978 Patent will continue
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`to damage Plaintiff, causing irreparable harm for which there is no adequate remedy at law, unless
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`enjoined by this Court.
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`COUNT II – INFRINGEMENT OF U.S. PATENT NO. 8,462,103
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`20. MASS refers to and incorporates herein the allegations of Paragraphs 1-19 above.
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`21. The ‘103 Patent, entitled “Computer Display Screen System And Adjustable Screen
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`Mount, And Swinging Screens Therefor,” was duly and legally issued by the USPTO on June 11,
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`2013 after full and fair examination. Plaintiff is the exclusive licensee of the ‘103 Patent and it
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`has all substantial rights to the ‘103 Patent, including the right and standing to sue and recover
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`damages for past, present and future infringement of the patent.
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`22. Upon information and belief, Defendant makes, distributes, imports, offers for sale, sells,
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`advertises, and/or uses, without limitation, a multi-display monitor system, namely products
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`comprising, inter alia, a support member and an arm assembly as claimed in the ‘103 Patent.
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`Plaintiff is informed and believes that Defendant infringes the ‘103 Patent by and through at least
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`its manufacture, distribution, importation, offer to sell, sale, and/or use of products comprising at
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`least the following SpaceArm Model Nos. SA02; SA04; SA22; SA44; SS02; SS02X4; SS02X8;
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`SMM02SA01; SMM03SA02; and SMM045A02.
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`23. Additionally, or in the alternative, upon information and belief, Plaintiff is informed and
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`believes that Defendant has induced infringement of the ‘103 Patent in this judicial district, the
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`State of Texas, and elsewhere in the United States, by actions comprising intentionally inducing
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`infringement of the ‘103 Patent in this judicial district, the State of Texas, and elsewhere in the
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`United States, including by aiding or abetting at least customers and other end users to use said
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`products. Upon information and belief, such induced infringement has occurred at least since
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`Defendant became aware of the ‘103 Patent, and Defendant’s inducement of infringement involves
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`Defendant’s knowledge that the induced acts constitute patent infringement.
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`24. Additionally, or in the alternative, upon information and belief, Plaintiff is informed and
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`believes that Defendant has contributed to infringement of the ‘103 Patent in this judicial district,
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`the State of Texas, and elsewhere in the United States, by actions comprising contributing to at
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`least the use of said products by customers and/or other end users in this judicial district, the State
`
`of Texas, and elsewhere in the United States, and such contributory infringement necessarily
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`involves knowledge that such systems and apparatuses are especially made or especially adapted
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`for use in an infringement of the ‘103 Patent, and not a staple article or commodity of commerce
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`Case 6:14-cv-00411-LED Document 1 Filed 05/05/14 Page 7 of 8 PageID #: 7
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`suitable for substantial non-infringing use.
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`25. Each of Defendant’s aforesaid activities has been without authority and/or license from
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`Plaintiff.
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`26. Plaintiff is entitled to recover from Defendant the damages sustained by Plaintiff as a result
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`of Defendant’s wrongful acts in an amount subject to proof at trial, which, by law, cannot be less
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`than a reasonable royalty, together with interest and costs as fixed by this Court under 35 U.S.C.
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`§ 284.
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`27. Defendant’s infringement of Plaintiff’s exclusive rights under the ‘103 Patent will continue
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`to damage Plaintiff, causing irreparable harm for which there is no adequate remedy at law, unless
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`enjoined by this Court.
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`JURY DEMAND
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`28. Plaintiff hereby requests a trial by jury pursuant to Rule 38 of the Federal Rules of Civil
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`Procedure.
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`PRAYER FOR RELIEF
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`29. Plaintiff respectfully requests that the Court find in its favor and against Defendant, and
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`that the Court grant Plaintiff the following relief:
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`A. An adjudication that one or more claims of the Patents-in-Suit has been directly and/or
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`indirectly infringed, either literally and/or under the doctrine of equivalents, by Defendant;
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`B. An award to Plaintiff of damages adequate to compensate Plaintiff for Defendant’s acts of
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`infringement, together with pre-judgment and post-judgment interest;
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`C. A grant of permanent injunction pursuant to 35 U.S.C. § 283, enjoining Defendant and all
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`persons acting in concert therewith from further acts of infringement with respect to the
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`claims of the Patents-in-Suit;
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`7
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`D. That this Court declare that Defendant’s infringement has been, and continues to be,
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`willful, including that Defendant acted to infringe the Patents-in-Suit despite an objectively
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`high likelihood that its actions constituted infringement of a valid patent and, accordingly,
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`award enhanced damages, including treble damages, pursuant to 35 U.S.C. § 284;
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`E. That this Court declare this to be an exceptional case and award Plaintiff reasonable
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`attorneys’ fees and costs in accordance with 35 U.S.C. § 285; and
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`F. Any further relief that this Court deem just and proper.
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`May 5, 2014
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`
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`Respectfully submitted,
`
`
`
`/s/ John J. Edmonds
`John J. Edmonds – Lead Attorney
`Texas Bar No. 789758
`Stephen F. Schlather
`Texas Bar No. 24007993
`Shea N. Palavan
`Texas Bar No. 24083616
`COLLINS, EDMONDS, POGORZELSKI,
`SCHLATHER & TOWER, PLLC
`1616 South Voss Road, Suite 125
`Houston, Texas 77057
`Telephone: (281) 501-3425
`Facsimile: (832) 415-2535
`jedmonds@cepiplaw.com
`sschlather@cepiplaw.com
`spalavan@cepiplaw.com
`
`
`Andrew Spangler
`Texas Bar No. 24041960
`Spangler Law P.C.
`208 N. Green St., Ste. 300
`Longview, Texas 75601
`Phone: (903) 753-9300
`Fax: (903) 553-0403
`
`
`
`
`
`ATTORNEYS FOR PLAINTIFF
`MASS ENGINEERED DESIGN, INC.
`
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`8
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`

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`JS 44 (Rev. 12/12)
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`Case 6:14-cv-00411-LED Document 1-1 Filed 05/05/14 Page 1 of 3 PageID #: 9
` CIVIL COVER SHEET
`The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as
`provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the
`purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.)
`I. (a) PLAINTIFFS
`DEFENDANTS
`
`(b) County of Residence of First Listed Plaintiff
`(EXCEPT IN U.S. PLAINTIFF CASES)
`
`(c) Attorneys (Firm Name, Address, and Telephone Number)
`
`NOTE:
`
`County of Residence of First Listed Defendant
`(IN U.S. PLAINTIFF CASES ONLY)
`IN LAND CONDEMNATION CASES, USE THE LOCATION OF
`THE TRACT OF LAND INVOLVED.
`
` Attorneys (If Known)
`
`II. BASIS OF JURISDICTION (Place an “X” in One Box Only)
`
`’ 1 U.S. Government
`Plaintiff
`
`’ 3 Federal Question
`(U.S. Government Not a Party)
`
`III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in One Box for Plaintiff
`(For Diversity Cases Only)
` and One Box for Defendant)
` PTF DEF
` PTF
` DEF
`Incorporated or Principal Place
`Citizen of This State
`’ 1
`’ 1
`’ 4
`’ 4
` of Business In This State
`
`’ 2 U.S. Government
`Defendant
`
`’ 4 Diversity
`(Indicate Citizenship of Parties in Item III)
`
`Citizen of Another State
`
`’ 2
`
`’ 2
`
`Incorporated and Principal Place
`of Business In Another State
`
`’ 5
`
`’ 5
`
`Citizen or Subject of a
` Foreign Country
`
`’ 3
`
`’ 3
`
`Foreign Nation
`
`’ 6
`
`’ 6
`
`BANKRUPTCY
`FORFEITURE/PENALTY
`’ 422 Appeal 28 USC 158
`’ 625 Drug Related Seizure
` of Property 21 USC 881 ’ 423 Withdrawal
`’ 690 Other
` 28 USC 157
`
`OTHER STATUTES
`’ 375 False Claims Act
`’ 400 State Reapportionment
`’ 410 Antitrust
`’ 430 Banks and Banking
`’ 450 Commerce
`’ 460 Deportation
`’ 470 Racketeer Influenced and
` Corrupt Organizations
`’ 480 Consumer Credit
`’ 490 Cable/Sat TV
`’ 850 Securities/Commodities/
` Exchange
`’ 890 Other Statutory Actions
`’ 891 Agricultural Acts
`’ 893 Environmental Matters
`’ 895 Freedom of Information
` Act
`’ 896 Arbitration
`’ 899 Administrative Procedure
` Act/Review or Appeal of
` Agency Decision
`’ 950 Constitutionality of
` State Statutes
`
`PROPERTY RIGHTS
`’ 820 Copyrights
`’ 830 Patent
`’ 840 Trademark
`
`SOCIAL SECURITY
`’ 861 HIA (1395ff)
`’ 862 Black Lung (923)
`’ 863 DIWC/DIWW (405(g))
`’ 864 SSID Title XVI
`’ 865 RSI (405(g))
`
`FEDERAL TAX SUITS
`’ 870 Taxes (U.S. Plaintiff
` or Defendant)
`’ 871 IRS—Third Party
` 26 USC 7609
`
`IMMIGRATION
`’ 462 Naturalization Application
`’ 465 Other Immigration
` Actions
`
`IV. NATURE OF SUIT (Place an “X” in One Box Only)
`CONTRACT
`TORTS
` PERSONAL INJURY
` PERSONAL INJURY
`’ 110 Insurance
`’ 120 Marine
`’ 310 Airplane
`’ 365 Personal Injury -
`’ 130 Miller Act
`’ 315 Airplane Product
` Product Liability
`’ 140 Negotiable Instrument
` Liability
`’ 367 Health Care/
`’ 150 Recovery of Overpayment ’ 320 Assault, Libel &
` Pharmaceutical
` & Enforcement of Judgment
` Slander
` Personal Injury
`’ 151 Medicare Act
`’ 330 Federal Employers’
` Product Liability
`’ 152 Recovery of Defaulted
` Liability
`’ 368 Asbestos Personal
` Student Loans
`’ 340 Marine
` Injury Product
`LABOR
` (Excludes Veterans)
`’ 345 Marine Product
` Liability
` PERSONAL PROPERTY ’ 710 Fair Labor Standards
`’ 153 Recovery of Overpayment
` Liability
` of Veteran’s Benefits
`’ 350 Motor Vehicle
`’ 370 Other Fraud
` Act
`’ 160 Stockholders’ Suits
`’ 355 Motor Vehicle
`’ 371 Truth in Lending
`’ 720 Labor/Management
`’ 190 Other Contract
` Product Liability
`’ 380 Other Personal
` Relations
`’ 195 Contract Product Liability ’ 360 Other Personal
` Property Damage
`’ 740 Railway Labor Act
`’ 196 Franchise
` Injury
`’ 385 Property Damage
`’ 751 Family and Medical
`’ 362 Personal Injury -
` Product Liability
` Leave Act
` Medical Malpractice
`’ 790 Other Labor Litigation
` CIVIL RIGHTS
` PRISONER PETITIONS ’ 791 Employee Retirement
`Habeas Corpus:
`’ 440 Other Civil Rights
` Income Security Act
`’ 441 Voting
`’ 463 Alien Detainee
`’ 442 Employment
`’ 510 Motions to Vacate
`’ 443 Housing/
` Sentence
` Accommodations
`’ 530 General
`’ 445 Amer. w/Disabilities - ’ 535 Death Penalty
`Other:
` Employment
`’ 446 Amer. w/Disabilities - ’ 540 Mandamus & Other
` Other
`’ 550 Civil Rights
`’ 555 Prison Condition
`’ 448 Education
`’ 560 Civil Detainee -
` Conditions of
` Confinement
`
` REAL PROPERTY
`’ 210 Land Condemnation
`’ 220 Foreclosure
`’ 230 Rent Lease & Ejectment
`’ 240 Torts to Land
`’ 245 Tort Product Liability
`’ 290 All Other Real Property
`
`V. ORIGIN (Place an “X” in One Box Only)
`’ 1 Original
`’ 2 Removed from
`Proceeding
`State Court
`
`’ 3 Remanded from
`Appellate Court
`
`’ 4 Reinstated or
`Reopened
`
`’ 6 Multidistrict
`Litigation
`
`’ 5 Transferred from
`Another District
`(specify)
`Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity):
`
`Brief description of cause:
`
`’ CHECK IF THIS IS A CLASS ACTION
`UNDER RULE 23, F.R.Cv.P.
`
`DEMAND $
`
`CHECK YES only if demanded in complaint:
`JURY DEMAND:
`’ Yes
`’ No
`
`(See instructions):
`
`JUDGE
`SIGNATURE OF ATTORNEY OF RECORD
`
`DOCKET NUMBER
`
`VI. CAUSE OF ACTION
`
`VII. REQUESTED IN
` COMPLAINT:
`VIII. RELATED CASE(S)
` IF ANY
`DATE
`
`FOR OFFICE USE ONLY
`
`RECEIPT #
`
`AMOUNT
`
`APPLYING IFP
`
`JUDGE
`
`MAG. JUDGE
`
`

`
`Case 6:14-cv-00411-LED Document 1-1 Filed 05/05/14 Page 2 of 3 PageID #: 10
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`ATTACHMENT A TO CIVIL COVER SHEET:
`
`ATTORNEYS FOR PLAINTIFF
`
`John J. Edmonds
`Texas Bar No. 789758
`Stephen F. Schlather
`Texas Bar No. 24007993
`Shea N. Palavan
`Texas Bar No. 24083616
`COLLINS, EDMONDS, POGORZELSKI,
`SCHLATHER & TOWER, PLLC
`1616 South Voss Road, Suite 125
`Houston, Texas 77057
`Telephone: (281) 501-3425
`Facsimile: (832) 415-2535
`jedmonds@cepiplaw.com
`sschlather@cepiplaw.com
`spalavan@cepiplaw.com
`
`

`
`Case 6:14-cv-00411-LED Document 1-1 Filed 05/05/14 Page 3 of 3 PageID #: 11
`Case 6:14—cv—OO411—LED Document 1-1 Filed 05/05/14 Page 3 of 3 Page|D #: 11
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`ATTACHMENT B TO CIVIL COVER SHEET:
`ATTACHMENT B TO CIVIL COVER SHEET:
`
`RELATED CASES
`RELATED CASES
`
`
`1. Mass Engineered Design, Inc. v. Dell, Inc et al; 2:06-cv-00272-LED
`1. Mass Engineered Design, Inc. v. Dell, Inc et al; 2:06-cv-00272-LED
`2. Mass Engineered Design, Inc. v. Dell, Inc et al; 6:14-cv-00409
`2. Mass Engineered Design, Inc. v. Dell, Inc et al; 6: 14-cv-00409