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§




`

`SAMSUNG ELECTRONICS CO., LTD.,
`and SAMSUNG ELECTRONICS AMERICA, §
`INC.

`


`
`
`
`
`
`
`
`Case No. __________
`
`
`
`JURY TRIAL DEMANDED
`
`Defendants.
`
`Case 2:20-cv-00106-JRG Document 1 Filed 04/14/20 Page 1 of 11 PageID #: 1
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`
`
`
`FAT STATZ, LLC
`
`
`Plaintiff,
`
`vs.
`
`
`
`
`
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`Plaintiff Fat Statz, LLC (“Fat Statz”) brings this action against defendants Samsung Electronics
`
`Co., Ltd, (“SEL”) and Samsung Electronics America, Inc. (“SEA”) (collectively “Samsung”), and
`
`alleges:
`
`
`
`THE PARTIES
`
`1.
`
`Fat Statz, LLC is a company organized and existing under the laws of California. Fat
`
`Statz owns the entire right, title, and interest in the patent at issue in this case.
`
`2.
`
`On information and belief, Samsung Electronics Co., Ltd., is a corporation organized
`
`and existing under the laws of the Republic of Korea, with its principal place of business located at
`
`129, Samsung-ro, Yeongtong-gu, Suwon-si, Gyeonggi-do, 443-742, Republic of Korea. Upon
`
`information and belief, SEL does business in Texas and this District, directly or through intermediaries,
`
`and offers its products and/or services, including those accused herein of infringement, to customers
`
`and potential customers located in Texas, including this District.
`
`3.
`
`On information and belief, Samsung Electronics America, Inc. is a corporation
`
`organized and existing under the laws of New York, has a principal place of business at 85 Challenger
`
`Rd, Ridgefield Park, NJ 07660-2101 and has offices in the Eastern District of Texas at 6625
`
`

`

`Case 2:20-cv-00106-JRG Document 1 Filed 04/14/20 Page 2 of 11 PageID #: 2
`
`Excellence Way, Plano, Texas 75023. SEA is doing business in this judicial district. SEA has
`
`designated its registered agent for purposes of service of process in Texas as CT Corporation System,
`
`1999 Bryan St., Suite 900, Dallas, Texas 75201-3136.
`
`4.
`
`On information and belief, Samsung has authorized sellers, employees, agents and/or
`
`sales representatives that regularly conduct business, market, promote, sell and/or offer to sell products
`
`pertinent to this suit throughout Texas and this District, including at the aforementioned address and at
`
`other locations in this District, such as Best Buy locations in this District and throughout the state of
`
`Texas.
`
`JURISDICTION AND VENUE
`
`5.
`
`This is an action for patent infringement of U.S. Patent No. 9,757,066 (“the ‘066
`
`patent”), arising under the provisions of the Patent Laws of the United States of America, Title 35,
`
`United States Code.
`
`6.
`
`Subject-matter jurisdiction over Fat Statz’ claims is conferred upon this Court by 28
`
`U.S.C. §§ 1331 and 1338(a).
`
`7.
`
`On information and belief, each defendant has solicited business in the State of Texas,
`
`transacted business within the State of Texas and attempted to derive financial benefit from residents of
`
`the State of Texas, including benefits directly related to the instant patent infringement cause of action
`
`set forth herein.
`
`8.
`
`On information and belief, SEA has a regular and established place of business in this
`
`District and has committed acts of infringement in this District.
`
`9.
`
`On information and belief, SEL is a foreign company, organized under the laws of South
`
`Korea.
`
`10.
`
`On information and belief, SEA and SEL have made, used, sold, offered to sell and/or
`
`imported smartphones that have the Samsung Health app (previously known as S Health) preloaded or
`
`

`

`Case 2:20-cv-00106-JRG Document 1 Filed 04/14/20 Page 3 of 11 PageID #: 3
`
`preinstalled, or available for download, and “wearables” (including “smart watches”) that have the
`
`Samsung Health app and that communicate with such Samsung smartphones. Such smartphones
`
`include the Galaxy S series (including the S 10, S10e, S10+, S20, S20+, S20 Ultra 5G, S9, S9+, S8,
`
`S8+, S7, S7 Edge, S6), the Galaxy Note series (including the Note 10, 10+, 9), the Galaxy A series
`
`(including the A20, A10e, A50, A6) and/or Galaxy Z series (including the Fold and Z Flip). Such
`
`“wearables” include the Galaxy Watch Active, Galaxy Watch Active2 (LTE), Galaxy Watch Active2,
`
`Galaxy Watch, Galaxy Watch (LTE), and Galaxy Fit. SEA and SEL has placed such smartphones and
`
`wearables into the stream of commerce, which smartphones and wearables with Samsung Health have
`
`been offered for sale, sold, and/or used in the State of Texas.
`
`11.
`
`On information and belief, each defendant has made, used, sold, offered for sale and/or
`
`imported infringing smart phones and wearables with the Samsung Health app, and/or have each placed
`
`such infringing devices into the stream of commerce, which systems and/or devices have been made,
`
`offered for sale, sold, and/or used in the State of Texas.
`
`12.
`
`13.
`
`This Court has personal jurisdiction over each defendant.
`
`Each defendant is subject to personal jurisdiction in Texas and this District, and is doing
`
`business in this District.
`
`14.
`
`On information and belief, Samsung has for, each named defendant, admitted or not
`
`contested venue in this District in other patent infringement actions.
`
`15.
`
`Venue is proper in this judicial district under 28 U.S.C. §§ 1400(b) and 1391(b) and (c).
`
`BACKGROUND OF FAT STATZ
`
`16.
`
`Fat Statz was formed in 2002 and conducted business under the d/b/a BodySpex. Its
`
`mission was to address the motivational needs of people with health and fitness goals. In furtherance
`
`of addressing the motivational needs of such people, Fat Statz sought to develop equipment that
`
`

`

`Case 2:20-cv-00106-JRG Document 1 Filed 04/14/20 Page 4 of 11 PageID #: 4
`
`provided users with immediate feedback that would fill a person’s desire for temporal reward that is
`
`inherently lacking in dieting and exercise.
`
`17.
`
`Prior to the invention of the ‘066 patent, Fat Statz designed and manufactured
`
`equipment that facilitated the measurement of body composition. This equipment was placed in fitness
`
`facilities. Yet the problem of motivating people to achieve the health goals remained. The inventors of
`
`the ‘066 patent recognized the need for a solution to this problem. The inventors of the ‘066 patent
`
`recognized that, in one aspect, a system using biometric data uploaded to a server that could provide
`
`rewarding and motivating feedback was desired. The inventors of the ‘066 patent also recognized a
`
`need for a system that included feedback related to dynamic data of more than just one user. The
`
`inventors of the ‘066 patent also recognized a need for users to access a system in which a user could
`
`compare such dynamic data of him or herself with others, provide a system with an interface in which
`
`the data could be filtered, and a system that included changeable ranks for its users in comparison to
`
`other users. Recognition of these problems and solutions lead the inventors of the ‘066 patent to invent
`
`the inventions of the ‘066 patent.
`
`THE PATENTED INVENTIONS
`
`18.
`
`On September 12, 2017, U.S. Patent No. 9,757,066 entitled “Metrics Assessment
`
`System For Health, Fitness and Lifestyle Behavioral Management” (attached as Exhibit A) was duly
`
`and legally issued. The ‘066 patent has been assigned to Fat Statz. Fat Statz owns all right, title and
`
`interest in the ‘066 patent, including the right to sue for and recover all past, present and future
`
`damages for infringement of the ‘066 patent.
`
`19.
`
`20.
`
`The ‘066 patent is presumed valid.
`
`The ‘066 patent is directed to a particular concrete solution to problems that were
`
`recognized by the inventors of the ‘066 patent. The inventions of the ‘066 patent relate to a new, novel
`
`and useful system that constitutes one or more machines that include biometric hardware devices
`
`

`

`Case 2:20-cv-00106-JRG Document 1 Filed 04/14/20 Page 5 of 11 PageID #: 5
`
`claimed in claim 1 of the ‘066 patent working in conjunction with computer hardware and software,
`
`such combination being a tangible system that provides more effective and efficient techniques and
`
`systems for effective health and lifestyle management. As such, the claimed inventions of the ‘066
`
`patent are expressly deemed a category of patentable inventions by the United States Congress pursuant
`
`to 35 U.S.C. Section 101, which provides that anyone who invents a new and useful machine or any
`
`new and useful improvement thereto may obtain a patent thereon. The claims of the ‘066 patent,
`
`including claims 1 and 3, are directed to a system that includes a biometric device which is specifically
`
`claimed in claim 1 and hardware and software with the capability to generate and utilize an actively
`
`defined data set, allows users to utilize specific filters that generate a filtered data subset based on a
`
`specific filter and provide changeable rankings and positions. The systems claimed in the ‘066 patent
`
`are further directed to a system that includes a biometric device, such as a pedometer, with hardware
`
`and software being a specific and substantial improvement over the prior art and generic computers.
`
`21.
`
`As disclosed in the ‘066 patent, diet, exercise and personal health markets are a multi-
`
`billion dollar industry in the United States; yet significant numbers of adults are overweight. Obesity
`
`has been linked to serious and fatal health conditions, lost productivity and increased health care costs.
`
`Despite these consequences and costs, as recognized in the ‘066 patent, many people remain
`
`unmotivated to achieve a healthy weight. Diets, weight loss counseling, prepared meals, support
`
`groups and fitness clubs, among other techniques have been tried for years to obtain a desired goal such
`
`as a fixed measurement of weight. Yet, prior to the inventions of the ‘066 patent, there remained a need
`
`for a tangible system that motivates users and provides behavior management using a novel
`
`combination of devices that provide users with a set of metrics that are fresh, motivating and
`
`meaningful. The inventions of the ‘066 patent address those needs and the deficiencies in the prior art.
`
`The inventions of the ‘066 patent are different than the prior art and are unconventional. Additionally,
`
`the inventions of the ‘066 patent improve computer functionality by, in general, forming a system
`
`

`

`Case 2:20-cv-00106-JRG Document 1 Filed 04/14/20 Page 6 of 11 PageID #: 6
`
`directed to a biometric device that generates biometric data of a user and computer hardware and
`
`software that gathers such data to prepare reference data that changes with the overall system usage by
`
`users, and specifically claimed filters to generate data from the reference data for comparison by a user
`
`to others, based on, for example, gender, age, height, body type, time zone or postal code.
`
`22.
`
`The innovative claimed systems of the ‘066 patent, which integrates specifically claimed
`
`biometric devices, such as pedometers, provide users with assessments, data and dynamically
`
`changeable rankings using an active data set that changes with the overall system usage by all users and
`
`with the flexibility to provide users with filtered data. These aspects of the invention are embodied in
`
`at least claim 1 of the ‘066 patent. Such combinations were not well understood, routine or
`
`conventional activity previously engaged in by others in the field of behavioral management.
`
`23.
`
`The inventions of the ‘066 patent, including claims 1 and 3, improve the functioning of
`
`the claimed systems that includes biometric devices, a database and software. The use of a biometric
`
`device, such as a pedometer, in conjunction with a database and software that provide users with
`
`dynamically changeable rankings using an active data set that changes with the overall system usage by
`
`all users and with the flexibility to provide users with filtered data is an improvement in behavioral
`
`management systems. Combining a biometric device, such as a pedometer, in conjunction with a
`
`database and software that provide users with dynamically changeable rankings using an active data set
`
`that changes with the overall system usage by all users and with the flexibility to provide users with
`
`filtered data is an inventive concept, alone or in combination with other elements of the claim that
`
`additionally renders the invention patent eligible.
`
`24.
`
`The claims of the ‘066 patent contain an inventive concept, alone and/or in combination
`
`with other elements. Claims 1 and 3 claim an ordered combination of activities of a system using a
`
`biometric device and computer hardware and software that were new, novel and innovative at the time
`
`the ‘066 patent application was filed. These ordered combinations are set forth in claims 1 and 3 of the
`
`

`

`Case 2:20-cv-00106-JRG Document 1 Filed 04/14/20 Page 7 of 11 PageID #: 7
`
`‘066 patent. The ordered combination of elements in claims 1 and 3 were not well understood, routine
`
`or conventional at the time the ‘066 patent application was filed. The ordered combination of the
`
`inventions of claims 1 and 3 are a practical, particular, non-conventional and non-generic technique of
`
`behavior management. The inventive concepts in the claims of the ‘066 patent further render the
`
`claims eligible for patenting. The use of the claimed biometric device, such as a pedometer, in
`
`conjunction with a database and software that provide users with dynamically changeable rankings
`
`using an active data set that changes with the overall system usage by all users and with the flexibility
`
`to provide users with filtered data is an improvement in behavioral management systems and was
`
`unconventional. The claimed systems of the ‘066 patent are not generic; instead claiming a particular
`
`technical means for performing functions that are a substantial advance over computer and network
`
`technology.
`
`COUNT I – INFRINGEMENT OF THE ‘066 PATENT
`
`
`
`25.
`
`Samsung Health is a system made and used by Samsung. Samsung manufactures, uses,
`
`sells, offers to sell and/or imports smartphones that have the Samsung Health app (previously known as
`
`S Health) preloaded or preinstalled, or available for download, and wearables with the Samsung Health
`
`app preloaded or preinstalled that communicate with Samsung smartphones running the Samsung
`
`Health app. By way of example, such smartphones include the Galaxy S series (including the S 10,
`
`S10e, S10+, S20, S20+, S20 Ultra 5G, S9, S9+, S8, S8+, S7, S7 edge, S6), Galaxy Note series
`
`(including the Note 10, 10+, 9), the Galaxy A series (including the A20, A10e, A50, A6) and/or Galaxy
`
`Z series (including the Fold and Z Flip) (collectively “Accused Smartphones”). By way of example,
`
`such “wearables” (including “smart watches”) include the Galaxy Watch Active, Galaxy Watch
`
`Active2 (LTE), Galaxy Watch Active2, Galaxy Watch, Galaxy Watch (LTE), and Galaxy Fit
`
`(collectively “Accused Wearables”). When an Accused Wearable is paired with an Accused
`
`Smartphone, that combination is referred to in this Count as an “Accused Combination.”
`
`

`

`Case 2:20-cv-00106-JRG Document 1 Filed 04/14/20 Page 8 of 11 PageID #: 8
`
`26.
`
`The Accused Smartphones and the Accused Wearables include a pedometer that counts
`
`the steps of a user.
`
`27.
`
`Samsung’s Accused Wearables are capable of being paired with and communicating
`
`step counts to a smartphone that has the Samsung Health app, such as a smartphone identified as an
`
`Accused Smartphone.
`
`28.
`
`On information and belief, Samsung has software and/or hardware that generates data
`
`related to the step counts of its Samsung Health users that is used to provide individual users with a
`
`ranking of their step count relative to other users.
`
`29.
`
`The Accused Smartphones and the Accused Combinations provide a filter based on the
`
`age of the user by which a user can be provided filtered data of the data Samsung obtained from other
`
`users. On information and belief, Samsung has software and/or hardware, including servers and one or
`
`more databases, that generate data related to the step counts of its Samsung Health users based on age
`
`that is used to provide individual users with a ranking of their step count relative to other users of
`
`similar age.
`
`30.
`
`Samsung Health, including the hardware and/or software that operate in conjunction
`
`with the Samsung Health app on the Accused Smartphones and Accused Combinations, is useful
`
`system of Samsung (collectively “Accused Systems”). On information and belief, Samsung seeks for
`
`users of Samsung Health to remain engaged with and motivated to use Samsung Health. Samsung
`
`Health provides for advertising of third parties that is displayed on users’ devices when the Samsung
`
`Health application is open. On information and belief, Samsung derives revenue from such
`
`advertising. On information and belief, Samsung Health provides Samsung with brand loyalty,
`
`recognition and goodwill. On information and belief, Samsung Health provides Samsung with features
`
`desired by consumers and assists Samsung in maintaining its competitiveness in the marketplace.
`
`

`

`Case 2:20-cv-00106-JRG Document 1 Filed 04/14/20 Page 9 of 11 PageID #: 9
`
`31.
`
`On information and belief, Samsung, either alone or in conjunction with others, has in
`
`the past and continues to directly infringe and/or induce infringement of the ‘066 patent by making,
`
`using, selling, offering to sell, and/or importing, and/or causing others to make, use, sell, or offer to
`
`sell, and/or import, in this judicial district and/or elsewhere in the United States, Accused Smartphones,
`
`Accused Wearables, Accused Combinations and/or Accused Systems, that alone or in use are covered
`
`by one or more claims of the ‘066 patent, such as claims 1 and 3.
`
`32.
`
`Consumers purchase and use Samsung’s Accused Smartphones and Accused Wearables,
`
`Accused Combinations and/or Accused Systems and are instructed by Samsung to use such devices and
`
`systems to infringe one or more claims of the ‘066 patent, such as claims 1 and 3.
`
`33.
`
`Samsung provides encouragement, interfaces and/or instructions, such as user manuals
`
`or guides, that encourage and instruct consumers to use Samsung’s Accused Smartphones, Accused
`
`Wearables, Accused Combinations and/or Accused Systems in such infringing manner, specifically
`
`intending such consumers will operate these devices and systems in such a manner, and knowing of
`
`such actions, which constitutes infringement of one or more claims of the ‘066 patent.
`
`34.
`
`Samsung indirectly infringes one or more claims of the ‘066 patent in violation of 35
`
`U.S.C. 271(b) by inducing its consumers to directly infringe one or more claims of the ‘066 patent
`
`through their use of such Accused Smartphones, Accused Wearables, Accused Combinations and/or
`
`Accused Systems in accordance with Samsung’s instructions and encouragement.
`
`35.
`
`For example, Samsung induces direct infringement of the ‘066 patent by providing user
`
`manuals or guides, instructions and/or interfaces for the Accused Smartphones and Accused Wearables
`
`that show users how to operate the devices such that, by following Samsung’s instructions, the end
`
`users of the devices directly infringe one or more claims of the ‘066 patent. Samsung engages in such
`
`inducement knowingly and, at least from the time of receipt of the Complaint, has done so with
`
`

`

`Case 2:20-cv-00106-JRG Document 1 Filed 04/14/20 Page 10 of 11 PageID #: 10
`
`knowledge that such activity encourages consumers of its Accused Smartphones, Accused Wearables,
`
`Accused Combinations and/or Accused Systems to directly infringe the ‘066 patent.
`
`36.
`
`37.
`
`Samsung is liable for infringement of the ‘066 patent pursuant to 35 U.S.C. § 271.
`
`Samsung’s acts of infringement have caused damage to Fat Statz, and Fat Statz is
`
`entitled to recover from Samsung the damages sustained by Fat Statz as a result of Samsung’s wrongful
`
`acts in an amount subject to proof at trial.
`
`WHEREFORE, Fat Statz prays for entry of judgment that:
`
`PRAYER FOR RELIEF
`
`A.
`
`B.
`
`Samsung has directly infringed and/or induced infringement of the ‘066 patent;
`
`Samsung account for and pay to Fat Statz all damages caused by Samsung’s
`
`infringement of the ‘066 patent and for which Fat Statz is entitled under Title 35 of the United States
`
`Code;
`
`C.
`
`Fat Statz be granted pre-judgment and post-judgment interest on the damages caused to
`
`it by reason of Samsung’s patent infringement;
`
`D.
`
`E.
`
`F.
`
`Fat Statz be granted its reasonable attorneys’ fees;
`
`Costs be awarded to Fat Statz; and,
`
`Fat Statz be granted such other and further relief as the Court may deem just and proper
`
`under the circumstances.
`
`DEMAND FOR JURY TRIAL
`
`Fat Statz demands trial by jury on all claims and issues so triable.
`
`
`
`
`
`Dated: April 14, 2020
`
`
`
`
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`
`
`
`
`Respectfully submitted,
`
`
`
`By: /s/ John T. Polasek
`John T. Polasek
`Texas Bar. No. 16088590
`ted@epiplawyers.com
`Elliott & Polasek, PLLC
`
`
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`
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`
`
`

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`Case 2:20-cv-00106-JRG Document 1 Filed 04/14/20 Page 11 of 11 PageID #: 11
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`6750 West Loop South, Suite 995
`Bellaire, Texas 77401
`Telephone: (832) 485-3560
`Facsimile: (832) 778-6010
`
`
`
`
`Elizabeth L. DeRieux
`State Bar No. 05770585
`ederieux@capshawlaw.com
` CAPSHAW DERIEUX, LLP
`114 East Commerce Avenue
`Gladewater, Texas 75647
`Telephone: (903) 845-5770
`
`Attorneys for Plaintiff
`
`
`
`

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