Honeywell International, Inc. v. Nest Labs, Inc. et al

Filing 13

AMENDED COMPLAINT (First) against Best Buy Co., Inc., Nest Labs, Inc., filed by Honeywell International, Inc.. (Attachments: # 1 Exhibit(s) '504, # 2 Exhibit(s) '948, # 3 Exhibit(s) '958, # 4 Exhibit(s) '899, # 5 Exhibit(s) '789, # 6 Exhibit(s) '790, # 7 Exhibit(s) '988) (Liebman, Kenneth)

UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
HONEYWELL INTERNATIONAL, INC.,
Plaintiff,

Civil No. 0:12-cv-00299-SRN-JSM

vs.
NEST LABS, INC., BEST BUY CO., INC.,
BEST BUY STORES, L.P., and
BESTBUY.COM, LLC

FIRST AMENDED COMPLAINT
AND
DEMAND FOR JURY TRIAL

Defendants.
FIRST AMENDED COMPLAINT FOR PATENT INFRINGEMENT
Plaintiff Honeywell International, Inc. (“
Honeywell” for its Complaint against
),
Defendants Nest Labs, Inc. (“
Nest Labs” Best Buy Co., Inc. (“
),
Best Buy Co.” Best Buy
),
Stores, L.P. (“
Best Buy Stores” and BestBuy.com, LLC (“
),
BestBuy.com” alleges as
),
follows:
1.

Honeywell is a global leader in thermostat technology and has developed

many key innovations present in thermostats today. Honeywell has numerous patents
covering many of its thermostat inventions and has commercialized many of its
inventions. Defendant Nest Labs is a company that has recently begun manufacturing,
promoting, and selling a thermostat that Nest Labs claims to have many innovative
features that Nest Labs developed. To the contrary, many of the key features of the Nest
Labs thermostat are, in fact, Honeywell inventions. Defendants Best Buy Co., and its
subsidiaries, Best Buy Stores, and BestBuy.com (collectively, the “
Best Buy
Defendants” promote, sell, and offer to sell the Nest Labs Learning Thermostat (“
),
Nest
Thermostat” Nest Labs and the Best Buy Defendants have infringed and are infringing
).

at least seven Honeywell patents through their respective manufacture, use, sale, offer for
sale, and/or importation of the thermostat. Accordingly, Honeywell brings this action for
patent infringement to redress the misappropriation of Honeywell thermostat technology.
PARTIES
2.

Honeywell is a corporation organized and existing under the laws of the

state of Delaware, with its principal place of business in Morristown, New Jersey.
Honeywell is well-known for its long history of contributions to the environmental
comfort industry, including thermostats for use in homes and businesses. The division of
Honeywell that oversees the development and implementation of thermostats for homes
and businesses in the United States is located in Golden Valley, Minnesota.
3.

Nest Labs, on information and belief, is a corporation organized and

existing under the laws of the state of Delaware, with its principal place of business at
900 Hansen Way, Palo Alto, California 94303. On information and belief, Nest Labs was
founded by Tony Fadell and Matt Rogers, and is backed by significant investment from
Kleiner Perkins Caufield & Byers, Google Ventures, Lightspeed Venture Partners,
Intertrust, Shasta Ventures and Generation Investment Management.
4.

Best Buy Co., on information and belief, is a corporation organized and

existing under the laws of the state of Minnesota, with its principal place of business at
7601 Penn Avenue S., Richfield, Minnesota 55423.
5.

Best Buy Stores, on information and belief, is a Virginia Limited

Partnership with its principal place of business at 7601 Penn Avenue South, Richfield,
MN 55423.
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6.

BestBuy.com, on information and belief, is a Virginia corporation with its

principal executive office located at 7601 Penn Avenue South, Richfield, MN 55423.
According to the Virginia Secretary of State, BestBuy.com’ principal office is located at
s
7075 Flying Cloud Drive, Eden Prairie, Minnesota, 55344.
7.

Best Buy Stores and BestBuy.com, on information and belief, are

subsidiaries of Best Buy Co. and are under the common control and executive leadership
of Best Buy Co. In addition, on information and belief, the Best Buy Defendants share
common corporate services located in Minnesota. For example, “
Customer Service, Web
Site, Store and General/Corporate Inquiries”are directed toward Best Buy Corporate
Customer Care, with the address of P.O. Box 9312, Minneapolis, MN 55440.
8.

While Best Buy Co. has, in prior litigation, represented that Best Buy

Stores is the entity responsible for selling items in Best Buy’ physical stores and
s
BestBuy.com is the entity responsible for selling items on the bestbuy.com website, see
Ultra Products, Inc. v. Best Buy Co., Inc., CIV.A.09-1095MLC, 2009 WL 2843888 n.1
(D.N.J. Sept. 1, 2009), on information and belief, all three entities are associated with the
website, its content, and sales of products. When “
About Best Buy”is selected on the
website, the information provided is about Best Buy Co., Inc. In addition, certain
products sold through the bestbuy.com website are available for in-store pickup. The
website www.bestbuy.com also indicates that while the Nest Thermostat is sold out online, in-store pickup is “
coming soon.” In addition, as of March 13, 2012, BestBuy.com
also promotes the installation of the Nest Thermostat by the Geek Squad® service offered
by Best Buy Stores. Best Buy Co. reported in its 2011 Form 10-K submitted to the
-3-

United States Securities and Exchange Commission that “
Unless the context otherwise
requires, the use of the terms ‘
we,’‘ and ‘ in this Annual Report on Form 10-K
us’
our’
refers to Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries. We are a
multinational retailer of consumer electronics, home office products, entertainment
products, appliances and related services. We operate retail stores and call centers and
conduct online retail operations under a variety of brand names such as Best Buy
(BestBuy.com), BestBuy.ca, BestBuy.co.uk)… .” On information and belief, the Best
Buy Defendants, perhaps in conjunction with other yet unidentified Best Buy entities,
jointly promote, use, sell, offer to sell, and/or import the infringing Nest Thermostat.
JURISDICTION AND VENUE
9.

The claims alleged herein arise under the Patent Laws of the United States,

35 U.S.C. § 1, et seq.
10.

This Court has subject matter jurisdiction over this action pursuant to 28

U.S.C. §§ 1331 and 1338(a).
11.

This Court has personal jurisdiction over Nest Labs. Nest Labs transacts

business in Minnesota, including but not limited to the sale of the accused product; Nest
Labs has specifically directed its activities to Minnesota; and acts of infringement have
occurred in and beyond Minnesota, causing injury to Honeywell in Minnesota.
12.

This Court has general and specific personal jurisdiction over the Best Buy

Defendants. The principal places of business for the Best Buy Defendants identified by
their filings with the Secretary of State of Minnesota and Virginia are all located in
Minnesota. In addition, the Best Buy Defendants regularly transact business in
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Minnesota, including but not limited to the sale of the accused product, and engage in
acts of infringement, directed toward and occurring in and beyond Minnesota, causing
injury to Honeywell in Minnesota.
13.

Venue is proper in this judicial district pursuant to 28 U.S.C. §§ 1391(b),

(c), and 1400(b).
BACKGROUND TO THE ACTION
14.

A thermostat is a portion of a heating, ventilation, air conditioning

(“
HVAC” system that traditionally controls the temperature (and more recently, other
)
variables) of a system. Users can use thermostats to see, set, or change various
parameters for their HVAC system. One example of a well-known parameter is whether
the HVAC system is set to “
heat”or “
cool.” Other examples of well-known parameters
include “
setpoint temperatures,”which are target temperatures for the controlled
environment.
15.

Honeywell has long been at the forefront of innovation in thermostat

technology. Honeywell commercialized the first adjustable thermostat that allowed
people to sleep through the night without having to manually turn their furnaces on and
off to maintain a comfortable temperature. Honeywell’ iconic “
s
round”thermostat is
featured in the Smithsonian. Honeywell is a global leader in the development and sales
of innovative thermostats for home use that have novel functional, design, user interface,
and programming features.
16.

Honeywell has continued to innovate to bring progress and advancement to

HVAC controls, including thermostats. Through the past several decades, Honeywell has
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obtained hundreds of patents on functional, user interface, and programming features of
thermostats, including but not limited to the patents asserted in this Complaint.
17.

Honeywell has also commercialized many products that embody its

patented innovations. Examples of Honeywell’ patented technology include
s
Honeywell’ Prestige® 2.0 Comfort Systems thermostats and Honeywell’ RedLINK™
s
s
Wireless Comfort Systems.
THE ASSERTED PATENTS
18.

Honeywell is the lawful owner of United States Patent No. 7,634,504 (the

“504 Patent” which was duly and legally issued by the United States Patent and
‘
),
Trademark Office on December 15, 2009. The ‘ Patent is entitled “
504
Natural Language
Installer Setup for Controller.” The inventions of the ‘ Patent generally pertain to,
504
among other things, inventions directed at simplified methods that use natural language
to decrease the time and complexity associated with programming of a thermostat. A
copy of the ‘ Patent is attached hereto as Exhibit 1.
504
19.

Honeywell is the lawful owner of United States Patent No. 7,142,948 (the

“948 Patent” which was duly and legally issued by the United States Patent and
‘
),
Trademark Office on November 28, 2006. The ‘ Patent is entitled “
948
Controller
Interface With Dynamic Schedule Display.” The inventions of the ‘ Patent generally
948
pertain to, among other things, simplified methods for operating a thermostat, including
interfaces that reflect the time anticipated for the system to reach a particular setpoint or
target temperature. A copy of the ‘ Patent is attached hereto as Exhibit 2.
948

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20.

Honeywell is the lawful owner of United States Patent No. 6,975,958 (the

“958 Patent” which was duly and legally issued by the United States Patent and
‘
),
Trademark Office on December 13, 2005. The ‘ Patent is entitled “
958
Profile Based
Method for Deriving a Temperature Setpoint Using a ‘
Delta’Based On Cross-Indexing a
Received Price-Point Level Signal.” The inventions of the ‘ Patent generally pertain
958
to, among other things, methods for reducing energy costs, including but not limited to
controlling a thermostat with information stored in a remote location. A copy of the ‘
958
Patent is attached hereto as Exhibit 3.
21.

Honeywell is the lawful owner of United States Patent No. 7,584,899 (the

“899 Patent” which was duly and legally issued by the United States Patent and
‘
),
Trademark Office on September 8, 2009. The ‘ Patent is entitled “
899
HVAC
Controller.” The inventions of the ‘ Patent generally pertain to, among other things,
899
an HVAC controller that has a rotatable part that may be used to control one or more
parameters of the HVAC system. A copy of the ‘ Patent is attached hereto as
899
Exhibit 4.
22.

Honeywell is the lawful owner of United States Patent No. 7,159,789 (the

“789 Patent” which was duly and legally issued by the United States Patent and
‘
),
Trademark Office on January 9, 2007. The ‘ Patent is entitled “
789
Thermostat with
Mechanical User Interface.” The inventions of the ‘ Patent generally pertain to,
789
among other things, apparatus for locating a non-rotating part or parts of a thermostat
near or inside of a rotating part, while still allowing the rotating part to set and/or control

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one or more parameters of the thermostat. A copy of the ‘ Patent is attached hereto as
789
Exhibit 5.
23.

Honeywell is the lawful owner of United States Patent No. 7,159,790 (the

“790 Patent” which was duly and legally issued by the United States Patent and
‘
),
Trademark Office on January 9, 2007. The ‘ Patent is entitled “
790
Thermostat with
Offset Drive.” The inventions of the ‘ Patent generally pertain to, among other
790
things, apparatus for locating a non-rotating part or parts of a thermostat near or inside of
a rotating part, while still allowing the rotating part to set and/or control one or more
parameters of the thermostat. A copy of the ‘ Patent is attached hereto as Exhibit 6.
790
24.

Honeywell is the lawful owner of United States Patent No. 7,476,988 (the

“ Patent” which was duly and legally issued by the United States Patent and
988
),
Trademark Office on January 13, 2009. The ‘ Patent is entitled “
988
Power Stealing
Control Devices.” “
Power Stealing”is a term of art that generally refers to providing
power for the operation of a device such as a thermostat by diverting or “
skimming”a
small amount of charge from the electrical current powering the load to be controlled.
The inventions of the ‘ Patent generally pertain to, among other things, a switch and a
988
circuit that divert power from the user’ home electrical system to provide power to a
s
thermostat. A copy of the ‘ Patent is attached hereto as Exhibit 7.
988
25.

The ‘ Patent, ‘ Patent, ‘ Patent, ‘ Patent, ‘ Patent, ‘
504
948
958
899
789
790

Patent, and ‘ Patent are hereinafter collectively referred to as the “
988
Asserted Patents.”

-8-

ACTS GIVING RISE TO THE ACTION
26.

On information and belief, Nest Labs has been and is engaged in the use,

manufacture, importation, offer for sale, and/or sale of the Nest Thermostat throughout
the United States, including in this judicial district. On or about October 28, 2011, Nest
Labs began pre-selling the Nest Thermostat on-line through at least its own website,
www.nest.com, and the Best Buy Defendants’website, www.bestbuy.com. On
information and belief, individuals and entities in Minnesota have purchased the Nest
Thermostat, including but not limited to users in Rochester and Minneapolis, Minnesota
who posted a review of the Nest Thermostat at www.bestbuy.com and Energy Smart, a
program of Minnesota Waste Wise, a nonprofit affiliate of the Minnesota Chamber of
Commerce.
27.

Promotional materials associated with the launch of the Nest Thermostat

include the website, www.nest.com, videos, demonstrations, media interviews, articles,
and other marketing collateral such as brochures. These materials have been made
available to individuals nationwide, including those located in this District, in print and
on the Internet.
28.

In addition to selling the Nest Thermostat on-line, Best Buy Stores also

features the Nest Thermostat in its Home Energy Departments nationwide. On
information and belief, Best Buy Stores’Home Energy Departments include displays
dedicated to Nest Thermostats, providing a Nest Thermostat, written materials, and a prerecorded demonstration video.

-9-

29.

In addition, the Best Buy Defendants also provide instructions to

consumers about how to use the Nest Thermostat. For example, the website
www.bestbuy.com links to the nest.com website, which features videos and other
instructions regarding the functionality and use of the Nest Thermostat. In addition, the
Best Buy Defendants offer to install the Nest Thermostat through the Geek Squad®
service, available for purchase both on-line and in stores.
30.

On information and belief, prior to selling Nest Thermostats, Nest Labs

tested Nest Thermostats for use in Minneapolis, Minnesota. On information and belief,
Nest Thermostats have been ordered by and delivered to individuals in this District.
Individuals using the Nest Thermostat in Minnesota have posted comments and reviews
to various Internet sites.
31.

In their respective marketing materials, Nest Labs and the Best Buy

Defendants tout the ease with which the Nest Thermostat can be programmed and used.
32.

For instance, Nest Labs highlights its use of easily understood sentences to

assist in the programming of the thermostat, thereby helping the user instruct the
thermostat about a homeowner’ preferences.
s
33.

Nest Labs and Best Buy promote various additional features of the Nest

Thermostat. One such feature is the “
Time to Temperature”function. Nest Labs and the
Best Buy Defendants explain that the “
Time to Temperature”feature “
tells [the user] how
long it will take to reach your target temperature.” The Nest Thermostat video posted on
youtube.com, nest.com, and bestbuy.com, as well as printed marketing materials, reflects
a user setting a new target, i.e. setpoint, temperature of the Nest Thermostat, and the
-10-

subsequent display of the estimated amount of time necessary for the system to reach the
second setpoint temperature.
34.

Another feature of the Nest Thermostat promoted by Nest Labs and the

Best Buy Defendants is its purported ability to be connected to the Internet, store private
data related to a particular user at a location remote from the Nest Thermostat itself, and
control a Nest Thermostat remotely through a Wi-Fi connection.
35.

Other features promoted by Nest Labs and the Best Buy Defendants are

directed to the mechanical user interface of the Nest Thermostat. The “
Nest Ring”is a
rotatable selector that allows users to change the parameters of the HVAC system, such
as setpoint or “
target”temperatures by rotating the Nest Ring, with a backlit LCD
display.
36.

In addition, the Nest Thermostat demonstrates that it utilizes “
power

stealing”technology, i.e., it diverts power from the HVAC system to power itself to
minimize the required electrical lines between the thermostat and the HVAC system. In
comparing the Nest Thermostat with other smart thermostats, Nest Labs founder
Mr. Fadell asserted that “ competitors can’ make low-power devices.” In the article
our
t
entitled, A red LED is flashing below Nest’ display, featured on the www.nest.com
s
website, Nest Labs explains, “
Under normal conditions, Nest charges its battery from the
low voltage wires on your heating and cooling system.”
37.

Individuals associated with Nest Labs, including Mr. Fadell and

Mr. Rogers, have repeatedly made other claims about the purported innovative design
and functionality of the Nest Thermostat, as compared to other programmable
-11-

thermostats. For example, Mr. Fadell is quoted as saying that “
thermostats are made by
big companies that don’ have any incentive to innovate”and that “
t
there’ been no real
s
innovation in decades.” Mr. Rogers is quoted as saying, “
Honeywell is not doing
enough; we could do much better.”
38.

Contrary to its claims, however, Nest Labs does not appear to have

originated either the design or the functionality of the Nest Thermostat. For example,
the Nest Thermostat looks strikingly similar to the temperature controller of the Kohler
Mira Platinum Wireless Shower product, subject to the European Union Community
Design Registration No. 001065023-0003:

39.

More importantly, key functional features at the core of the Nest

Thermostat are not the result of innovation by Nest Labs, but are the result of years of
research and development that culminated in valid and enforceable patents owned by
Honeywell. Based on its independent research based, in part, on surveys of homeowners,
Frost & Sullivan named Honeywell as the “
Overall Best Brand of Programmable
Thermostats”in the United States on September 14, 2011. See
http://www.fueloilnews.com/ME2/dirmod.asp?sid=C44BAE70771342548DF3F8B2F228
-12-

83E6&nm=News&type=news&mod=News&mid=9A02E3B96F2A415ABC72CB5F516B
4C10&tier=3&nid=04FB726DD38947D9ADA84633A52F5C20.
40.

For example, the Nest Thermostat’ use of questions to assist in
s

programming the thermostat infringes Honeywell’ intellectual property rights protected
s
by at least the ‘ Patent:
504

41.

The fact that Honeywell offered a thermostat with a patented question

system was well-known in the industry. A third party reporting on the release of the Nest
Thermostat noted that, “
Honeywell itself offers thermostats like the Prestige® 2.0, which
-13-

uses a question system to program itself based on [a user’ habits and temperature
s]
preferences.” See http://www.tested.com/news/how-the-nest-actually-differs-from-othersmart-thermostats/3067/. Frost & Sullivan observed that “
[Honeywell’ Prestige™
s]
programmable thermostat incorporates a patented, interview-based interface that walks a
homeowner through the set-up process by asking a series of questions, such as ‘
what time
does the first person wake-up in the morning?’or ‘
what time do you go to sleep at night?’
The answers help the thermostat program itself –no owner’ manual is needed. The
s
graphic user interface displays directions for each display screen and can be customized
to display in English, French or Spanish.” See
http://www.fueloilnews.com/ME2/dirmod.asp?sid=C44BAE70771342548DF3F8B2F228
83E6&nm=News&type=news&mod=News&mid=9A02E3B96F2A415ABC72CB5F516B
4C10&tier=3&nid=04FB726DD38947D9ADA84633A52F5C20.
42.

On information and belief, users of the Nest Thermostat have used the

natural language questions to program their thermostat settings including as reported in
Once it asks you a few questions … you’ ready to
re
reviews on www.bestbuy.com (“
go.”
)
43.

Similarly, the use of the Nest Thermostat’ “
s Time to Temperature”feature

infringes Honeywell’ intellectual property rights protected by at least the ‘ Patent.
s
948
44.

On information and belief, users of the Nest Thermostat have used the

Time to Temperature feature, including as reflected by Nest on their website at
http://www.nest.com/2012/02/14/be-our-thermostats-valentine/ (“ turned the temp up
just
& @nest told me it’ take 25 min”
d
).
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45.

Controlling a thermostat remotely through the Internet is also not a Nest

Labs’innovation. Rather, Nest Labs infringes Honeywell’ intellectual property rights
s
protected by at least the ‘ Patent with the Nest Thermostat used in conjunction with a
958
Nest Account:

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46.

On information and belief, Nest Thermostat users are utilizing the remote

control features offered and facilitated by Nest Labs, including within this jurisdiction, as
reported in consumer reviews posted on the Internet, including but not limited to those
[Minneapolis, MN] it has an iPhone app so I used that
reflected on www.bestbuy.com (“
to change the temperature” and social media comments reflected on
)
http://www.nest.com/2012/02/14/be-our-thermostats-valentine/ (“ for dinner, just
Out
opened Nest app to turn off heat”
).
47.

The Nest Thermostat, featuring the Nest Ring, also infringes Honeywell’
s

intellectual property rights protected by at least the ‘
899, ‘
789, and ‘ Patents.
790
48.

Similarly, use of a power diversion circuit or “
power stealing”is not a Nest

Labs’innovation. The Nest Thermostat infringes Honeywell’ intellectual property
s
rights protected by at least the ‘ Patent.
988
49.

Nest Labs is well aware of Honeywell’ contributions to the thermostat
s

industry and Honeywell’ protection of its patented inventions. On information and
s
belief, Nest Labs engaged in research regarding thermostats, including but not limited to
research of Honeywell and its thermostats.

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50.

Media coverage of the Nest Thermostat includes pictures taken at Nest

Labs that show that Nest Labs examined numerous Honeywell thermostats. See
http://allthingsd.com/20111129/from-ipods-to-thermostats-nest-ceo-and-founder-tonyfadell-speaks-video/img_0513/. Indeed, each of the thermostats circled in red appears to
be a different Honeywell thermostat model –ranging from Honeywell’ digital round
s
thermostats, model numbers T8775C 1005 and T8775A 1009, to Honeywell’ Prestige®
s
thermostats that embody and are marked with the ‘ Patent.
504

Prestige
THX9321R5000

RTH7600D1006

T8775C1005

T8775A1009

RTH7400D1008 or
RTH7500D1007

RTHB1016

RTH7400D1008 or
RTH7500D1007

Chronotherm IV
T8600/T8601/T8602
T8611/T8624

Chronotherm III
T8600/T8601/T8602
T8611/T8621/T8631

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Prestige
THX9321R5000

Magicstat
T8112D1005
T8132/T8131

51.

The Nest Thermostat also includes a notice that it is subject to “
Patents

Pending.” On information and belief, Nest Labs was required to perform at least
preliminary research regarding other potentially relevant patents of Honeywell in order to
file its own application(s).
52.

Therefore, Nest Labs knew, or should have known, contrary to its

marketing campaign, that Honeywell –not Nest Labs –is responsible for many of the
ideas that Nest Labs touts as revolutionary, and that many features of the Nest
Thermostat infringe Honeywell patents:

Infringes at least
Honeywell ‘ Patent
504

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Infringes at least
Honeywell ‘ Patent
958

Infringes at least
Honeywell ‘
899, ‘
789,
and ‘ Patents.
790
Infringes at least
Honeywell ‘ Patent.
948

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Infringes at least
Honeywell ‘
988
Patent.

53.

Nest Labs is a well-funded, sophisticated company that was aware of

Honeywell’ thermostat technology prior to its introduction of the Nest Thermostat. On
s
information and belief, Nest Labs was either actually aware of the Asserted Patents or
was willfully blind in order not to become aware of the Asserted Patents. Nest Labs has
infringed and is infringing the Asserted Patents, making Nest Labs liable for direct and/or
indirect infringement under 35 U.S.C. § 271.
54.

In addition, at least as early as February 6, 2012, Nest Labs had knowledge

of the Asserted Patents and its allegedly infringing conduct.
55.

The Best Buy Defendants also offer to sell, and sell Honeywell

programmable thermostats. At least as early as the filing of this Complaint, the Best Buy
Defendants had knowledge of the Asserted Patents and their allegedly infringing conduct.
COUNT I: INFRINGEMENT OF THE ‘ PATENT
504
(NEST LABS)
56.

Honeywell realleges and incorporates by reference paragraphs 1 through 55

as if fully stated herein.

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57.

Nest Labs, on information and belief, has infringed and continues to

infringe the ‘ Patent by performing the steps of at least one claim of the ‘ Patent,
504
504
in violation of 35 U.S.C. § 271(a), by using the Nest Thermostat within the United States.
58.

Nest Labs, on information and belief, has infringed and continues to

infringe the ‘ Patent in violation of 35 U.S.C. § 271(b) and/or (c) by actively inducing
504
others to infringe and/or contributing to the infringement by others to perform the steps of
at least one of the claims of the ‘ Patent by using the Nest Thermostat within the
504
United States.
59.

Honeywell has suffered and will suffer monetary damages as a result of

Nest Labs’infringement of the ‘ Patent in an amount to be determined at trial.
504
60.

Honeywell has suffered irreparable harm as a result of Nest Labs’

infringement of the ‘ Patent and will continue to suffer irreparable harm unless Nest
504
Labs is enjoined from infringing the ‘ Patent.
504
COUNT II: INFRINGEMENT OF THE ‘ PATENT
948
(NEST LABS)
61.

Honeywell realleges and incorporates by reference paragraphs 1 through 60

as if fully stated herein.
62.

Nest Labs, on information and belief, is infringing the ‘ Patent in
948

violation of 35 U.S.C. § 271(a) by making, using, offering to sell, and/or selling the Nest
Thermostat, within the United States, and/or importing the Nest Thermostat into the
United States.
63.

Nest Labs, on information and belief, has infringed and continues to

infringe the ‘ Patent in violation of 35 U.S.C. § 271(b) and/or (c) by actively inducing
948
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others to infringe and/or contributing to the infringement by others in the using, offering
to sell, and/or selling the Nest Thermostat, within the United States.
64.

Honeywell has suffered and will suffer monetary damages as a result of

Nest Labs’infringement of the ‘ Patent in an amount to be determined at trial.
948
65.

Honeywell has suffered irreparable harm as a result of Nest Labs’

infringement of the ‘ Patent and will continue to suffer irreparable harm unless Nest
948
Labs is enjoined from infringing the ‘ Patent.
948
COUNT III: INFRINGEMENT OF THE ‘ PATENT
958
(NEST LABS)
66.

Honeywell realleges and incorporates by reference paragraphs 1 through 65

as if fully stated herein.
67.

Nest Labs, on information and belief, has infringed and continues to

infringe the ‘ Patent in violation of 35 U.S.C. § 271(a) by making, using, offering to
958
sell, and/or selling the Nest Thermostat, within the United States, and/or importing the
Nest Thermostat into the United States, which is used in conjunction with the Nest
Account service provided and facilitated by Nest Labs.
68.

Honeywell has suffered and will suffer monetary damages as a result of

Nest Labs’infringement of the ‘ Patent in an amount to be determined at trial.
958
69.

Honeywell has suffered irreparable harm as a result of Nest Labs’

infringement of the ‘ Patent and will continue to suffer irreparable harm unless Nest
958
Labs is enjoined from infringing the ‘ Patent.
958

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COUNT IV: INFRINGEMENT OF THE ‘ PATENT
899
(NEST LABS)
70.

Honeywell realleges and incorporates by reference paragraphs 1 through 69

as if fully stated herein.
71.

Nest Labs, on information and belief, has infringed and continues to

infringe the ‘ Patent in violation of 35 U.S.C. § 271(a) by making, using, offering to
899
sell, and/or selling the Nest Thermostat, within the United States, and/or importing the
Nest Thermostat into the United States.
72.

Nest Labs, on information and belief, has infringed and continues to

infringe the ‘ Patent in violation of 35 U.S.C. § 271(b) and/or (c) by actively inducing
899
others to infringe and/or contributing to the infringement by others in the using, offering
to sell, and/or selling of the Nest Thermostat, within the United States.
73.

Honeywell has suffered and will suffer monetary damages as a result of

Nest Labs’infringement of the ‘ Patent in an amount to be determined at trial.
899
74.

Honeywell has suffered irreparable harm as a result of Nest Labs’

infringement of the ‘ Patent and will continue to suffer irreparable harm unless Nest
899
Labs is enjoined from infringing the ‘ Patent.
899
COUNT V: INFRINGEMENT OF THE ‘ PATENT
789
(NEST LABS)
75.

Honeywell realleges and incorporates by reference paragraphs 1 through 74

as if fully stated herein.
76.

Nest Labs, on information and belief, has infringed and continues to

infringe the ‘ Patent in violation of 35 U.S.C. § 271(a) by making, using, offering to
789
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sell, and/or selling the Nest Thermostat, within the United States, and/or importing the
Nest Thermostat into the United States.
77.

Nest Labs, on information and belief, has infringed and continues to

infringe the ‘ Patent in violation of 35 U.S.C. § 271(b) and/or (c) by actively inducing
789
others to infringe and/or contributing to the infringement by others in the using, offering
to sell, and/or selling of the Nest Thermostat, within the United States.
78.

Honeywell has suffered and will suffer monetary damages as a result of

Nest Labs’infringement of the ‘ Patent in an amount to be determined at trial.
789
79.

Honeywell has suffered irreparable harm as a result of Nest Labs’

infringement of the ‘ Patent and will continue to suffer irreparable harm unless Nest
789
Labs is enjoined from infringing the ‘ Patent.
789
80.

Honeywell has complied with the provisions of 35 U.S.C. § 287(a).
COUNT VI: INFRINGEMENT OF THE ‘ PATENT
790
(NEST LABS)

81.

Honeywell realleges and incorporates by reference paragraphs 1 through 80

as if fully stated herein.
82.

Nest Labs, on information and belief, has infringed and continues to

infringe the ‘ Patent in violation of 35 U.S.C. § 271(a) by making, using, offering to
790
sell, and/or selling the Nest Thermostat, within the United States, and/or importing the
Nest Thermostat into the United States.
83.

Nest Labs, on information and belief, has infringed and continues to

infringe the ‘ Patent in violation of 35 U.S.C. § 271(b) and/or (c) by actively inducing
790

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others to infringe and/or contributing to the infringement by others in the using, offering
to sell, and/or selling of the Nest Thermostat, within the United States.
84.

Honeywell has suffered and will suffer monetary damages as a result of

Nest Labs’infringement of the ‘ Patent in an amount to be determined at trial.
790
85.

Honeywell has suffered irreparable harm as a result of Nest Labs’

infringement of the ‘ Patent and will continue to suffer irreparable harm unless Nest
790
Labs is enjoined from infringing the ‘ Patent.
790
86.

Honeywell has complied with the provisions of 35 U.S.C. § 287(a).
COUNT VII: INFRINGEMENT OF THE ‘ PATENT
988
(NEST LABS)

87.

Honeywell realleges and incorporates by reference paragraphs 1 through 86

as if fully stated herein.
88.

Nest Labs, on information and belief, has infringed and continues to

infringe the ‘ Patent in violation of 35 U.S.C. § 271(a) by making, using, offering to
988
sell, and/or selling the Nest Thermostat, within the United States, and/or importing the
Nest Thermostat into the United States.
89.

Nest Labs, on information and belief, has infringed and continues to

infringe the ‘ Patent in violation of 35 U.S.C. § 271(b) and/or (c) by actively inducing
988
and/or contributing to the infringement by others in the using, offering to sell, and/or
selling of the Nest Thermostat, within the United States.
90.

Honeywell has suffered and will suffer monetary damages as a result of

Nest Labs infringement of the ‘ Patent in an amount to be determined at trial.
988

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91.

Honeywell has suffered irreparable harm as a result of Nest Labs

infringement of the ‘ Patent and will continue to suffer irreparable harm unless Nest
988
Labs is enjoined from infringing the ‘ Patent.
988
92.

Honeywell has complied with the provisions of 35 U.S.C. § 287(a).
COUNT VIII: INFRINGEMENT OF THE ‘ PATENT
504
(BEST BUY DEFENDANTS)

93.

Honeywell realleges and incorporates by reference paragraphs 1 through 92

as if fully stated herein.
94.

The Best Buy Defendants, on information and belief, have infringed and

continue to infringe the ‘ Patent by performing the steps of at least one claim of the
504
‘ Patent, in violation of 35 U.S.C. § 271(a), by using the Nest Thermostat within the
504
United States.
95.

The Best Buy Defendants, on information and belief, have infringed and

continue to infringe the ‘ Patent in violation of 35 U.S.C. § 271(b) and/or (c) by
504
actively inducing others to infringe and/or contributing to the infringement by others to
perform the steps of at least one of the claims of the ‘ Patent by using the Nest
504
Thermostat within the United States.
96.

Honeywell has suffered and will suffer monetary damages as a result of the

Best Buy Defendants’infringement of the ‘ Patent in an amount to be determined at
504
trial.
97.

Honeywell has suffered irreparable harm as a result of the Best Buy

Defendants’infringement of the ‘ Patent and will continue to suffer irreparable harm
504
unless the Best Buy Defendants are enjoined from infringing the ‘ Patent.
504
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COUNT IX: INFRINGEMENT OF THE ‘ PATENT
948
(BEST BUY DEFENDANTS)
98.

Honeywell realleges and incorporates by reference paragraphs 1 through 97

as if fully stated herein.
99.

The Best Buy Defendants, on information and belief, have infringed and

continue to infringe the ‘ Patent in violation of 35 U.S.C. § 271(a) by using, offering
948
to sell, and/or selling the Nest Thermostat, within the United States.
100.

The Best Buy Defendants, on information and belief, have infringed and

continue to infringe the ‘ Patent in violation of 35 U.S.C. § 271(b) and/or (c) by
948
actively inducing others to infringe and/or contributing to the infringement by others to
perform the steps of at least one of the claims of the ‘ Patent by using the Nest
948
Thermostat within the United States..
101.

Honeywell has suffered and will suffer monetary damages as a result of the

Best Buy Defendants’infringement of the ‘ Patent in an amount to be determined at
948
trial.
102.

Honeywell has suffered irreparable harm as a result of the Defendants’

infringement of the ‘ Patent and will continue to suffer irreparable harm unless the
948
Defendants are enjoined from infringing the ‘ Patent.
948
COUNT X: INFRINGEMENT OF THE ‘ PATENT
899
(BEST BUY DEFENDANTS)
103.

Honeywell realleges and incorporates by reference paragraphs 1 through

102 as if fully stated herein.

-27-

104.

The Best Buy Defendants, on information and belief, have infringed and

continue to infringe the ‘ patent in violation of 35 U.S.C. § 271(a) by using, offering
899
to sell, and/or selling the Nest Thermostat, within the United States.
105.

The Best Buy Defendants, on information and belief, have infringed and

continue to infringe the ‘ Patent in violation of 35 U.S.C. § 271(b) and/or (c) by
899
actively inducing others to infringe and/or contributing to the infringement by others in
the use of the Nest Thermostat, within the United States.
106.

Honeywell has suffered and will suffer monetary damages as a result of the

Best Buy Defendants’infringement of the ‘ Patent in an amount to be determined at
899
trial.
107.

Honeywell has suffered irreparable harm as a result of the Best Buy

Defendants’infringement of the ‘ Patent and will continue to suffer irreparable harm
899
unless the Best Buy Defendants are enjoined from infringing the ‘ Patent.
899
COUNT XI: INFRINGEMENT OF THE ‘ PATENT
789
(BEST BUY DEFENDANTS)
108.

Honeywell realleges and incorporates by reference paragraphs 1 through

107 as if fully stated herein.
109.

The Best Buy Defendants, on information and belief, have infringed and

continue to infringe the ‘ Patent in violation of 35 U.S.C. § 271(a) by using, offering
789
to sell, and/or selling the Nest Thermostat, within the United States.
110.

The Best Buy Defendants, on information and belief, have infringed and

continue to infringe the ‘ Patent in violation of 35 U.S.C. § 271(b) and/or (c) by
789

-28-

actively inducing others to infringe and/or contributing to the infringement by others in
the use of the Nest Thermostat, within the United States.
111.

Honeywell has suffered and will suffer monetary damages as a result of the

Best Buy Defendants’infringement of the ‘ Patent in an amount to be determined at
789
trial.
112.

Honeywell has suffered irreparable harm as a result of the Best Buy

Defendants’infringement of the ‘ Patent and will continue to suffer irreparable harm
789
unless the Best Buy Defendants are enjoined from infringing the ‘ Patent.
789
113.

Honeywell has complied with the provisions of 35 U.S.C. § 287(a).
COUNT XII: INFRINGEMENT OF THE ‘ PATENT
790
(BEST BUY DEFENDANTS)

114.

Honeywell realleges and incorporates by reference paragraphs 1 through

113 as if fully stated herein.
115.

The Best Buy Defendants, on information and belief, have infringed and

continue to infringe the ‘ Patent in violation of 35 U.S.C. § 271(a) by using, offering
790
to sell, and/or selling the Nest Thermostat, within the United States.
116.

The Best Buy Defendants, on information and belief, have infringed and

continue to infringe the ‘ Patent in violation of 35 U.S.C. § 271(b) and/or (c) by
790
actively inducing others to infringe and/or contributing to the infringement by others in
the use of the Nest Thermostat, within the United States.
117.

Honeywell has suffered and will suffer monetary damages as a result of the

Best Buy Defendants infringement of the ‘ Patent in an amount to be determined at
790
trial.
-29-

118.

Honeywell has suffered irreparable harm as a result of the Best Buy

Defendants’infringement of the ‘ Patent and will continue to suffer irreparable harm
790
unless the Best Buy Defendants are enjoined from infringing the ‘ Patent.
790
119.

Honeywell has complied with the provisions of 35 U.S.C. § 287(a).
COUNT XIII: INFRINGEMENT OF THE ‘ PATENT
988
(BEST BUY DEFENDANTS)

120.

Honeywell realleges and incorporates by reference paragraphs 1 through

119 as if fully stated herein.
121.

The Best Buy Defendants, on information and belief, have infringed and

continue to infringe the ‘ Patent in violation of 35 U.S.C. § 271(a) by using, offering
988
to sell, and/or selling the Nest Thermostat, within the United States.
122.

The Best Buy Defendants, on information and belief, have infringed and

continue to infringe the ‘ Patent in violation of 35 U.S.C. § 271(b) and/or (c) by
988
actively inducing others to infringe and/or contributing to the infringement by others in
the use of the Nest Thermostat, within the United States.
123.

Honeywell has suffered and will suffer monetary damages as a result of the

Best Buy Defendants’infringement of the ‘ Patent in an amount to be determined at
988
trial.
124.

Honeywell has suffered irreparable harm as a result of the Best Buy

Defendants’infringement of the ‘ Patent and will continue to suffer irreparable harm
988
unless the Best Buy Defendants are enjoined from infringing the ‘ Patent.
988
125.

Honeywell has complied with the provisions of 35 U.S.C. § 287(a).

-30-

PRAYER FOR RELIEF
WHEREFORE, Honeywell respectfully requests this Court:
A.

To enter judgment that Nest Labs, Inc. has infringed the Asserted Patents in

violation of 35 U.S.C. § 271(a), (b), and/or (c);
B.

To enter orders enjoining Nest Labs, and its respective officers, agents,

servants, employees, and attorneys, and all persons in active concert or participation with
any of the foregoing, who receive actual notice by personal service or otherwise of the
orders, from infringing the Asserted Patents in violation of 35 U.S.C. § 271(a), (b), and/or
(c);
C.

To award Honeywell its respective damages in amounts sufficient to

compensate it for Nest Labs’infringement of the Asserted Patents, together with
pre-judgment and post-judgment interest and costs, pursuant to 35 U.S.C. § 284;
D.

To enter judgment that Best Buy Co., Inc.; Best Buy Stores, L.P.; and

BestBuy.com LLC have infringed (collectively and individually) the ‘
504, ‘
948, ‘
899,
‘
789, ‘
790, and ‘ Patents in violation of 35 U.S.C. § 271(a), (b), and/or (c);
988
E.

To enter orders enjoining Best Buy Co., Best Buy Stores, L.P., and

BestBuy.com LLC and their respective officers, agents, servants, and employees, and
attorneys, and all persons in active concert or participation with any of the foregoing,
who receive actual notice by personal service or otherwise of the orders, from infringing
the ‘
504, ‘
948, ‘
899, ‘
789, ‘
790, and ‘ Patents in violation of 35 U.S.C. § 271(a), (b),
988
and/or (c);

-31-

F.

To award Honeywell its respective damages in amounts sufficient to

compensate it for the Best Buy Defendants’infringement of the Asserted Patents,
together with pre-judgment and post-judgment interest and costs, pursuant to 35 U.S.C.
§ 284;
G.

To declare this case to be “
exceptional”under 35 U.S.C. § 285 and to

award Honeywell its attorneys’fees, expenses, and costs incurred in this action; and
H.

To award Honeywell such other and further relief as this Court deems just

and proper.
DEMAND FOR JURY TRIAL
Pursuant to Rule 38(b) of the Federal Rules of Civil Procedure, Plaintiff
Honeywell respectfully requests a trial by jury of any and all issues on which a trial by
jury is available under applicable law.

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Dated: March 20, 2012

s/ Ken Liebman
Kenneth A. Liebman (No. 236731)
Randall E. Kahnke (No. 202745)
Andrew F. Johnson (No.0389331)
FAEGRE BAKER DANIELS LLP
2200 Wells Fargo Center
90 South Seventh Street
Minneapolis, Minnesota 55402-3901
Telephone: [phone]
Fax: [phone]
Email: [e-mail]
randall.kahnke @ faegrebd.com
[e-mail]
Nina Y. Wang (admitted pro hac vice)
Joel D. Sayres (admitted pro hac vice)
FAEGRE BAKER DANIELS LLP
3200 Wells Fargo Center
1700 Lincoln Street
Denver, Colorado 80203
Telephone: [phone]
Fax: [phone]
Email: [e-mail]
[e-mail]

Attorneys for Plaintiff Honeywell
International, Inc.

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