Segan LLC v. Zynga Inc.

Filing 1

COMPLAINT filed with Jury Demand against Zynga Inc. - Magistrate Consent Notice to Pltf. ( Filing fee $ 350, receipt number 0311-924678.) - filed by Segan LLC. (Attachments: # 1 Exhibit A, # 2 Civil Cover Sheet)(els)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE

SEGANLLC

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Plaintiff,
v.
ZY1~GA,

INC.
Defendant.

Civil Action No.

Jury Trial Demanded

PLAINTIFF'S COMPLAINT FOR PATENT INFRINGEMENT

Plaintiff, Segan LLC, files this Complaint against Defendant, Zynga, Inc., and, in su port
thereof, further states and alleges as follows:

THE PARTIES
1.

Plaintiff, Sdgan LLC, is a New York limited liability company, having a

pla~e of

business located at 33-00 Northern Boulevard, Long Island City, New York, 11101.
2.

Upon information and belief, Defendant Zynga, Inc. is a Delaware corpor lon,

having a place of business located at 444 De Haro Street, Sui

132, San Francisco, Cali£ rnia

94107.
JURISDICTION AND VENU

3.

This is a chril action for infringement under the 1 ws of the United States, Title 35
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United States Code §§ 1, eI seq.
4.

This Court has original subject matter jurisdi tion under 28 U.S.C. §§

(federal question) and 1338(a) (patent-exclusive jurisdiction).
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331

5.

Upon inforJ11ation and belief, this Court has personal jurisdiction over Defe dant

because Defendant is a corporation organized and existing under the laws of the Sta
Delaware and because

of

Def~ndant has conducted and does conduct business within the Distnbt of

Delaware.
6.

Venue is proper under 28 U.S.C. §§ 1391(b) and (c) and 1400(b), as Defend tis

subject to personal jurisdiction in this district.
FACTUALBACKGROI~D

A.

Inventors
7.

Joint-inventor Marc Segan is the Founder and President of Plaintiff, Segan L

product invention and development company. Mr. Segan is a prolific inventor and entrepre eur,
having designed and develfped numerous electronic and other products over the past thirtY-I ee
years that have been

licen~ed to or which have been used by major corporations.

In additi?n to

!

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founding Segan LLC, Mr. iSegan founded or co-founded SwartztrauberlSegan Inc., M. H. sbgan
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& Company Inc., Quadlogic Controls Corp., Long Hall Technologies,

L.L.C., and The

Animated Animations Company LLC, each of which has developed and produced num ous
innovative products that h~ve been widely distributed and highly profitable.

'S.

JOint-inv4r Gene Lewin has served in management positions for various

technology companies for nearly 20 years. For 13 years, beginning in 1993, Mr. Lewin servrd as
the Director of Information Technology for Plaintiff or Plaintiffs predecessor, where Mr.

WIll

maintained the informatibn technology infrastructure and provided numerous custo
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applications, including c~tom prototyping tools to aid in consumer electronic product de$ign.
During his tenure at

seg~ LLC, Mr. Lewin worked closely with Mr. Segan to develo~: the
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concept behind a system for viewing content over a network, which is the subject of the pr sent
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patent-in-suit, and developed all of the back-end communications components for the i
prototype of that system.

B.

U.S. Patent No. 7,O~4,928
9.

On May 30, 2006, the U.S. Patent and Trademark Office duly and legally i ted
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U.S. Patent No. 7,054,9281 ("the '928 patent"), entitled "System for Viewing Content

r a

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'

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Network and Method Thenrfor." Mr. Segan and Mr. Lewin are named as joint inventors. Aitrue
and correct copy of the '928 patent is attached hereto as Exhibit A.
10.

Plaintiff, Segan LLC, is the owner by assignment of the '928 patent.

11.

On June 30,12011, Plaintiff sent to Defendant, vi United Parcel Service ove'ght

delivery, a copy of the '928 patent and a letter informing Defend nt of the '928 patent.

COUNT I
Infrin ement of the '928 Paten
12.

Plaintiff inclJrporates the allegations of paragrap s 1 through 11 as though rllY
.•

set forth herein.
13.

.

Upon infOlfation and belief, Defendant's busin ss is fundamentally predi4ated

on it making, using, semnJ.:., offering for sale, and/or importing into the United States a

Varier of

computer applications cov:ered by the '928 patent, including but not limited to, Cafe Wrrld,
CityVille, Empires & Allieis, FarmVille, FishVille, FrontierVille, Mafia Wars, PetVille, Treasure
Isle, Yo Ville, and Zynga ptker.
14.

•

Upon inforrpation and belief, Defendant has directly and/or indirectly

infri~ed,

and continues to infringe, the '928 patent, by, inter alia, making, using, selling, offering for

~ale,

and/or importing these pro~ucts, in the District of Delaware and elsewhere in the United Statb.

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T

15.

Upon info

ation and belief, Defendant has directly and/or indirectly infri ged,

and continues to infring , the '928 patent, by, inter alia, distributing, marketing,

or

advertising these products 'n the District of Delaware and else here in the United States,
contributing to and inducing others to make, use, offer for sal , sell, import, distribute, m
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and/or advertise products cf:>vered by the '928 patent.
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16.

As a direct

patent, Plaintiff has

~nd

suffere~

proximate result of Defendant's acts of infringement of the 928

injury and monetary damages for which Plaintiff is entitled to r lief,

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in no event less than a reas?nable royalty to compensate for Defendant's infringement.
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17.

Upon infotmation and belief, Defendant has knowingly, willfully, ,and

deliberately infringed the r928 patent in conscious disregard of Plaintiffs rights, making :this
case exceptional within thi· meaning of 35 U.S.C. § 285 and justifying treble damages pur ant
to 35 U.S.C. § 284.
18.

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Upon infonhation and belief, Defendant will continue to infringe the'928 p

causing immediate and iqeparable harm unless this Court enjoins and restrains Defend t's
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activities.
19.

Upon infoqnation and belief, the infringement by Defendant has, and

ill,

deprive Plaintiff of royaltjes and other related revenue which Plaintiff would have rna

or

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would enjoy in the future; Ihas injured Plaintiff in other respects; and will cause Plaintiff a ded
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injury and damage unless pefendant is enjoined from infringing the '928 patent on all pro ncts
Defendant will make, use,1 offer for sale, sell, import, distribute, market, or advertise unti the
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expiration of the '928 pateI!tt.
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PRAYER FOR RELIEF
WHEREFORE, Pla~ntiff, Segan LLC, respectfully requests this Court to:
A.

Enter judgment for Plaintiff that the '928 patent was duly and legally issue , is

valid, enforceable, and has feen infringed, directly or indirectly, by Defendant;
B.

Enter judgnjlent for Plaintiff that Defendant has willfully infringed, an

IS

willfully infringing, one or more claims ofthe'928 patent;
C.

Order Defe~dant to account in written form for and to pay to Plaintiff adtual

damages to compensate

PI~intiff for Defendant's infringement of the '928 patent throughland

including the date of entry: of the judgment on the jury's verdict, including but not limite. to,
damages of no less than a reasonable royalty, together with interest and costs under 35
§284, and further order

U.~.C.

thai such damages be trebled due to Defendant's deliberate, will fuI ,I and

knowing conduct;
D.

Issue a preljminary injunction restraining the Defendant, its directors, offitrs,

agents, employees, success~rs, subsidiaries, assigns, affiliates and all persons acting in privi. or
In

concert or participation with any of them from the continued infringement,

dirl or

contributory, or active indJcementofinfringement by others, of the '928 patent;
E.

Issue a pe$anent injunction restraining the Defendant, its directors, officers,

agents, employees,

in concert or

succes~rs, subsidiaries, assigns, affiliates and all persons acting in Privi~ or

participati~

with any of them from the continued infringement,

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contributory, or active ind~cement of infringement by others, ofthe '928 patent;

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dire~

or

F.

Direct

Defe~dant

trt

to file with this Court, and to serve on Plaintiff, • written

~der ~ath setting forth in ,etail the manner and form in which Defendant has complied with the
InJunctIOn;
O.

.
In lieu of a ~ermanent ~unction, order the Defendant to pay to Plaintiff mon

. damages that will be suffered as a result of Defendant's continuing post-verdict infringeme
the '928 patent by

of

reqUirin~ the Defendant to take a compulsory license at a reasonable royalty
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rate to be determined by t,e Court on all products that Defendant makes, uses, offers for

~ale,

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sells, imports, distributes, $arkets, or advertises that infringe the '928 patent until the expiration
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'

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of the '928 patent, which I royalty payments shall commence three months after entry

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the

judgment and shall be madie quarterly thereafter, and shall be accompanied by an accounti

of

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the sales of infringing products by the Defendant;
H.

Order such other measures in the form of audit rights, interest on late

paym~nts,

and appropriate security to protect Plaintiff s rights;
I.

Order

Defe~dant to pay Plaintiff its costs, expenses, and fees, including

reasonable attorneys' fees pursuant to 35 U.S.C. § 285, and pre-judgment and post-jud

ent

interest at the maximum ra~ allowed by law; and
J.
proper.

Orant Plaintiff such other and further relief as the Court may deem just I and
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JURY DEMAND

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Pursuant to Rule 3. of the Federal Rules of Civil Procedure, Plaintiff demands tha the
issues in this case be tried ijy a jury.
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Dated: July 29,2011

Respectfully submitted,

(DE LD. No. 5283)
BLANK ROME LLP
1201 Market St.
Wilmington, DE. 19801
(Ph) 302-425-6418
(Fax) 302-428-5102
E-mail: [e-mail]

ATTORNEY FOR PLAINTIFF
SEGANLLC

OF-COUNSEL FOR PLAINTIFF
SEGANLLC:
Victor M. Wigman, Esq.
Charles R. Wolfe, Jr., Esq.
Brian Wm. Higgins, Esq.
Nicholas M. Nyemah, Esq.:
BLANK ROME LLP
Watergate
600 New Hampshire Ave.,N.W.
Washington, DC 20037
(Ph) [phone]
(Fax) [phone]
E-mail: [e-mail]
E-mail: [e-mail]
E-mail: [e-mail]
E-mail: [e-mail]

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