Beneficial Innovations, Inc. v. Blockdot, Inc. et al

Filing 70

ANSWER to Amended Complaint by Washingtonpost.Newsweek Interactive Company, LLC.(Jones, Michael)

Beneficial Innovations, Inc. v. Blockdot, Inc. et al Doc. 70 Case 2:07-cv-00263-TJW-CE Document 70 Filed 09/25/2007 Page 1 of 9 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS MARSHALL DIVISION ________________________________________ ) BENEFICIAL INNOVATIONS, INC., ) ) Plaintiff, ) v. ) Civ. A. No. 2:07-CV-263-TJW/CE ) BLOCKDOT, INC.; CAREERBUILDER, LLC; ) CNET NETWORKS, INC.; DIGG, INC.; EBAUM'S WORLD, INC.; JABEZ NETWORKS, ) ) INC.; THE NEW YORK TIMES COMPANY; ) WASHINGTONPOST.NEWSWEEK ) INTERACTIVE COMPANY, LLC; THE ) WEATHER CHANNEL INTERACTIVE, INC. ) ) Defendants. ) _______________________________________ DEFENDANT WASHINGTONPOST.NEWSWEEK INTERACTIVE COMPANY'S ANSWER TO SECOND AMENDED COMPLAINT Defendant WashingtonPost.Newsweek Interactive Company, LLC ("WPNI") hereby answers the allegations of the Second Amended Complaint ("Complaint") of Plaintiff Beneficial Innovations, Inc. ("Beneficial") in this matter as follows: Introduction 1. WPNI admits that United States Patent No. 6,712,702 (the "'702 Patent") is entitled "Method and System for Playing Games on a Network" and that United States Patent No. 6,183,366 (the "'366 Patent") is entitled "Network Gaming System." WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations as to Beneficial's ownership of the '702 Patent or '366 Patent as set forth in paragraph 1 of the Complaint, and on that basis denies those allegations. To the extent that paragraph 1 of the Complaint sets forth allegations regarding WPNI, WPNI denies any and all allegations of Dockets.Justia.com Case 2:07-cv-00263-TJW-CE Document 70 Filed 09/25/2007 Page 2 of 9 paragraph 1 of the Complaint. To the extent that paragraph 1 of the Complaint sets forth allegations regarding defendants other than WPNI, WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 1 of the Complaint and on that basis denies those allegations. The final sentence in paragraph 1 of the Complaint states Beneficial's request for relief for which no response is required. To the extent a response is required, WPNI denies the allegations set forth in the final sentence of paragraph 1 of the Complaint and denies that Beneficial is entitled to any of the relief requested therein, or to any relief whatsoever. WPNI denies any and all other allegations set forth in paragraph 1 of the Complaint. Jurisdiction and Venue 2. WPNI admits that this Complaint alleges that this is an action arising under the patent laws of the United States, Title 35, United States Code. The remainder of paragraph 2 of the Complaint states a legal conclusion to which no response is required. To the extent that a response is required, WPNI admits that this Court has original jurisdiction over patent infringement actions under 28 U.S.C. 1338. WPNI denies any patent infringement and any and all other allegations set forth in paragraph 2 of the Complaint. 3. To the extent that the first sentence of paragraph 3 of the Complaint sets forth allegations regarding WPNI, WPNI denies the allegations of the first sentence of paragraph 3 of the Complaint. To the extent that the first sentence of paragraph 3 of the Complaint sets forth allegations regarding defendants other than WPNI, WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in the first sentence of paragraph 3 of the Complaint and on that basis denies those allegations. The remainder of paragraph 3 of the Complaint states a legal conclusion to which no response is -2- Case 2:07-cv-00263-TJW-CE Document 70 Filed 09/25/2007 Page 3 of 9 required. To the extent that a response is required, WPNI denies any and all of the allegations set forth in the remainder of paragraph 3 of the Complaint. To the extent that paragraph 3 of the Complaint sets forth allegations regarding defendants other than WPNI, WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 3 of the Complaint and on that basis denies those allegations. Plaintiff Beneficial Innovations 4. WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 4 of the Complaint. Defendants 5. WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 5 of the Complaint. 6. WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 6 of the Complaint. 7. WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 7 of the Complaint. 8. WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 8 of the Complaint. 9. WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 9 of the Complaint. 10. WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 10 of the Complaint. 11. WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 11 of the Complaint. -3- Case 2:07-cv-00263-TJW-CE Document 70 Filed 09/25/2007 Page 4 of 9 12. 13. WPNI admits the allegations set forth in paragraph 12 of the Complaint. WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 13 of the Complaint. First Claim for Patent Infringement 14. above. 15. WPNI admits that the United States Patent and Trademark Office issued WPNI incorporates by reference each of its responses in paragraphs 1-13 the '702 Patent on March 30, 2004, and that a copy of the '702 Patent is lodged as an exhibit to the Complaint. WPNI denies that the '702 Patent was duly and legally issued. WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations as to Beneficial's ownership of the '702 Patent and on that basis denies any and all other allegations set forth in paragraph 15 of the Complaint. 16. To the extent that paragraph 16 of the Complaint sets forth allegations regarding WPNI, WPNI denies any and all allegations of paragraph 16 of the Complaint. To the extent that paragraph 16 of the Complaint sets forth allegations regarding defendants other than WPNI, WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 16 of the Complaint and on that basis denies those allegations. 17. To the extent that paragraph 17 of the Complaint sets forth allegations regarding WPNI, WPNI denies any and all allegations of paragraph 17 of the Complaint. To the extent that paragraph 17 of the Complaint sets forth allegations regarding defendants other than WPNI, WPNI states that it is without knowledge or information sufficient to form a belief as to -4- Case 2:07-cv-00263-TJW-CE Document 70 Filed 09/25/2007 Page 5 of 9 the truth of the allegations set forth in paragraph 17 of the Complaint and on that basis denies those allegations. 18. To the extent that paragraph 18 of the Complaint sets forth allegations regarding WPNI, WPNI denies any and all allegations of paragraph 18 of the Complaint. To the extent that paragraph 18 of the Complaint sets forth allegations regarding defendants other than WPNI, WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 18 of the Complaint and on that basis denies those allegations. 19. To the extent that paragraph 19 of the Complaint sets forth allegations regarding WPNI, WPNI denies any and all allegations of paragraph 19 of the Complaint. To the extent that paragraph 19 of the Complaint sets forth allegations regarding defendants other than WPNI, WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 19 of the Complaint and on that basis denies those allegations. 20. response is required. Second Claim for Patent Infringement 21. above. 22. WPNI admits that the United States Patent and Trademark Office issued WPNI incorporates by reference each of its responses in paragraphs 1-20 Paragraph 20 sets forth Beneficial's request for a jury trial, for which no the '366 Patent on February 6, 2001, and that a copy of the '366 Patent is lodged as an exhibit to the Complaint. WPNI denies that the '366 Patent was duly and legally issued. WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations -5- Case 2:07-cv-00263-TJW-CE Document 70 Filed 09/25/2007 Page 6 of 9 as to Beneficial's ownership of the '366 Patent and on that basis denies any and all other allegations set forth in paragraph 22 of the Complaint. 23. To the extent that paragraph 23 of the Complaint sets forth allegations regarding WPNI, WPNI denies any and all allegations of paragraph 23 of the Complaint. To the extent that paragraph 23 of the Complaint sets forth allegations regarding defendants other than WPNI, WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 23 of the Complaint and on that basis denies those allegations. 24. To the extent that paragraph 24 of the Complaint sets forth allegations regarding WPNI, WPNI denies any and all allegations of paragraph 24 of the Complaint. To the extent that paragraph 24 of the Complaint sets forth allegations regarding defendants other than WPNI, WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 24 of the Complaint and on that basis denies those allegations. 25. To the extent that paragraph 25 of the Complaint sets forth allegations regarding WPNI, WPNI denies any and all allegations of paragraph 25 of the Complaint. To the extent that paragraph 25 of the Complaint sets forth allegations regarding defendants other than WPNI, WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 25 of the Complaint and on that basis denies those allegations. 26. To the extent that paragraph 26 of the Complaint sets forth allegations regarding WPNI, WPNI denies any and all allegations of paragraph 26 of the Complaint. To the extent that paragraph 26 of the Complaint sets forth allegations regarding defendants other than -6- Case 2:07-cv-00263-TJW-CE Document 70 Filed 09/25/2007 Page 7 of 9 WPNI, WPNI states that it is without knowledge or information sufficient to form a belief as to the truth of the allegations set forth in paragraph 26 of the Complaint and on that basis denies those allegations. 27. response is required. 28. The "WHEREFORE" paragraph following paragraph 27 of the Complaint Paragraph 27 sets forth Beneficial's request for a jury trial, for which no states Beneficial's prayer for relief for which no response is required. To the extent a response is required, WPNI denies the allegations set forth in the "WHEREFORE" paragraph following paragraph 27 of the Complaint and denies that Beneficial is entitled to any of the relief requested therein, or to any relief whatsoever. AFFIRMATIVE DEFENSES WPNI sets forth the following affirmative and other defenses. In so doing, WPNI does not assume the burden of proof with respect to those matters as to which, pursuant to law, Beneficial bears the burden. First Defense 29. against WPNI. Second Defense 30. WPNI has not infringed or induced infringement by another or contributed The Complaint fails to state a claim upon which relief can be granted to infringement, and does not infringe or induce infringement by another or contribute to infringement, of any valid claim of the '702 Patent. -7- Case 2:07-cv-00263-TJW-CE Document 70 Filed 09/25/2007 Page 8 of 9 31. WPNI has not infringed or induced infringement by another or contributed to infringement, and does not infringe or induce infringement by another or contribute to infringement, of any valid claim of the '366 Patent. Third Defense 32. The '702 Patent is invalid for failure to meet one or more conditions for patentability set forth in 35 U.S.C. 101, et seq., including without limitations 101, 102, 103, and 112. 33. The '366 Patent is invalid for failure to meet one or more conditions for patentability set forth in 35 U.S.C. 101, et seq., including without limitations 101, 102, 103, and 112. Fourth Defense 34. Enforcement of the '702 Patent is barred under principles of equity, including prosecution laches. 35. Enforcement of the '366 Patent is barred under principles of equity, including prosecution laches. PRAYER FOR RELIEF WHEREFORE, WPNI respectfully requests the Court enter judgment against Beneficial to include: (a) (b) The Complaint of Beneficial be dismissed with prejudice; A declaration that WPNI has not infringed and does not infringe any valid claim of the '702 patent and that WPNI has not induced infringement of any valid claim of the '702 patent; A declaration that WPNI has not infringed and does not infringe any valid claim of the '366 patent and that WPNI has not induced infringement of any valid claim of the '366 patent; A declaration that the '702 patent is invalid; -8- (c) (d) Case 2:07-cv-00263-TJW-CE Document 70 Filed 09/25/2007 Page 9 of 9 (e) (f) (g) (h) A declaration that the '366 patent is invalid; WPNI be awarded reasonable costs in connection with this action; WPNI be awarded its attorneys' fees pursuant to 35 U.S.C. 285; and; All such other and further relief as the Court may deem just and proper. Respectfully Submitted, /s/ Michael E. Jones Michael E. Jones POTTER MINTON, P.C. 110 North College, Ste. 500 Tyler, Texas 75702 903-597-8311 (telephone) 903-593-0846 (facsimile) mikejones@potterminton.com Dated: September 25, 2007 Of counsel: Glenn J. Pfadenhauer Aaron P. Maurer WILLIAMS & CONNOLLY LLP 725 Twelfth Street, NW Washington, DC 20005 (202) 434-5000 (202) 434-5029 (facsimile) gpfadenhauer@wc.com amaurer@wc.com Attorneys for Defendant WashingtonPost.Newsweek Interactive Company,LLC CERTIFICATE OF SERVICE The undersigned hereby certifies that all counsel of record who are deemed to have consented to electronic service are being served with a copy of this document via the Court's CM/ECF system per Local Rule CV-5(a)(3) on September 25, 2007. Any other counsel of record will be served by First Class mail on this same date. /s/ Michael E. Jones -9-