PanTaurus LLC v. Apple, Inc.

Filing 1

COMPLAINT for Patent Infringement against Apple, Inc. ( Filing fee $ 400 receipt number 0540-4295601.), filed by PanTaurus LLC. (Attachments: # 1 Exhibit A, # 2 Civil Cover Sheet)(Tadlock, Charles) Modified on 9/4/2013 (pkb, ).

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF TEXAS
BEAUMONT DIVISION
PANTAURUS LLC,
Plaintiff,

Case No. 1:13-cv-539

v.
PATENT CASE
APPLE, INC.,
JURY TRIAL DEMANDED
Defendant.
COMPLAINT
Plaintiff PanTaurus LLC files this Complaint against Apple, Inc., for infringement of
United States Patent No. 6,272,533 (the “‘533 Patent”).
PARTIES AND JURISDICTION
1.

This is an action for patent infringement under Title 35 of the United States Code.

Plaintiff is seeking injunctive relief as well as damages.
2.

Jurisdiction is proper in this Court pursuant to 28 U.S.C. §§ 1331 (Federal

Question) and 1338(a) (Patents) because this is a civil action for patent infringement arising
under the United States patent statutes.
3.

Plaintiff PanTaurus LLC (“Plaintiff” or “PanTaurus”) is a Texas limited liability

company with its principal office located in the Eastern District of Texas, at 2305 North Street,
Suite 205, Beaumont, Texas 77702.
4.

Upon information and belief, Defendant Apple, Inc. (“Defendant”) is a California

corporation with its principal office located at 1 Infinite Loop, Cupertino, California 95014. This
Court has personal jurisdiction over Defendant because Defendant has committed, and continues
to commit, acts of infringement in the state of Texas, has conducted business in the state of
Texas, and/or has engaged in continuous and systematic activities in the state of Texas.

5.

On information and belief, Defendant’s products that are alleged herein to

infringe were and/or continue to be made, used, imported, offered for sale, and/or sold in the
Eastern District of Texas.
VENUE
6.

Venue is proper in the Eastern District of Texas pursuant to 28 U.S.C. §§ 1391(c)

and 1400(b) because Defendant is deemed to reside in this district. In addition, and in the
alternative, Defendant has committed acts of infringement in this district.
COUNT I
(INFRINGEMENT OF UNITED STATES PATENT NO. 6,272,533)
7.

Plaintiff incorporates paragraphs 1 through 6 herein by reference.

8.

This cause of action arises under the patent laws of the United States, and in

particular, 35 U.S.C. §§ 271, et seq.
9.

Plaintiff is the owner by assignment of the ‘533 Patent with sole rights to enforce

the ‘533 Patent and sue infringers.
10.

A copy of the ‘533 Patent, titled “Secure Computer System And Method Of

Providing Secure Access To A Computer System Including A Stand Alone Switch Operable To
Inhibit Data Corruption On A Storage Device,” is attached hereto as Exhibit A.
11.

The ‘533 Patent is valid and enforceable, and it was duly issued in full

compliance with Title 35 of the United States Code.
(Direct Infringement)
12.

Upon information and belief, Defendant has infringed and continues to directly

infringe one or more claims of the ‘533 Patent, including at least claim 29, by making, using,
importing, selling and/or offering for sale secure computer systems covered by one or more
claims of the ‘533 Patent, including without limitation Apple iPhones (for example, the iPhone 4

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and 4S models) that include the Apple iOS CoreCrypto Module and/or that are otherwise FIPS
140-2 compliant (the “Accused Instrumentalities”). (The Accused Instrumentalities are not
limited to the time period after FIPS 140-2 compliance was achieved.)
(Indirect Infringement – Inducement)
13.

Upon information and belief, Defendant has induced infringement and continues

to induce infringement of one or more claims of the ‘533 Patent, including at least claim 29, by
end users of the Accused Instrumentalities. Defendant specifically intended for end users of the
Accused Instrumentalities to infringe the ‘533 Patent and knew that the end users’ acts
constituted infringement. Defendant had knowledge of the ‘533 Patent or acted with willful
blindness to the ‘533 Patent, and Defendant had the specific intent to cause infringement.
14.

Prior to service of this action, Defendant had knowledge of the ‘533 Patent or was

willfully blind to the ‘533 Patent. Knowledge or willful blindness can be inferred from the fact
that the ‘533 Patent is a prominent, pioneering patent in the field of computer security. This is
evidenced in part by the extent to which the ‘533 Patent has been forward-cited as prior art in
connection with the examination of subsequently-issued U.S. patents. The ‘533 Patent has been
forward-cited in approximately 60 subsequently-issued U.S. patents to date, including patents
originally assigned to such prominent companies as Intel (18 times), Dot Hill Systems (13
times), IBM, Nikon, Dell, Seagate, Lenovo, McAfee, Hewlett Packard, Lockheed Martin, and
STMicroelectronics.
15.

At least since service of this action, Defendant has had knowledge of the ‘533

16.

Upon information and belief, since Defendant has been on notice of the ‘533

Patent.

Patent, Defendant has continued to encourage, instruct, enable, and otherwise cause end users of

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the Accused Instrumentalities to use the Accused Instrumentalities in a manner that infringes one
or more claims of the ‘533 Patent, including at least claim 29.
17.

Defendant’s specific intent to cause infringement can be inferred from, without

limitation, the facts that Defendant makes, uses, sells, offers for sale and/or imports the Accused
Instrumentalities comprising or containing the infringing secure computer system, that
Defendant markets the security features of the Accused Instrumentalities, that Defendant
differentiates the Accused Instrumentalities from other similar devices that do not contain such
security features, and that Defendant has obtained a special FIPS 140-2 security certification,
which is a United States government computer security standard, to promote the sale and use of
Accused Instrumentalities. In addition, Defendant has not produced any evidence showing any
investigation or design around, or that it has taken any remedial action with respect to the ‘533
Patent.
18.

In accordance with Fed. R. Civ. P. 11(b)(3), Plaintiff will likely have additional

evidentiary support for its claims of induced infringement after a reasonable opportunity for
discovery on this issue.
(Additional Allegations Related to Count One)
19.

Defendant’s actions complained of herein are causing irreparable harm and

monetary damage to Plaintiff and will continue to do so unless and until Defendant is enjoined
and restrained by this Court.
20.

Plaintiff is in compliance with 35 U.S.C. § 287.
COUNT 2
WILLFUL INFRINGEMENT

21.

Plaintiff incorporates paragraphs 1 through 20 herein by reference.

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22.

The infringement of the ‘533 Patent by Defendant has been willful and continued

to be willful after Defendant had knowledge of the ‘533 Patent. Upon information and belief,
Defendant had knowledge of the ‘533 Patent because the ‘533 Patent is a prominent, pioneering
patent in the field of computer security. This is evidenced in part by the extent to which the ‘533
Patent has been forward-cited as prior art in connection with the examination of subsequentlyissued U.S. patents. The ‘533 Patent has been forward-cited in approximately 60 subsequentlyissued U.S. patents to date, including patents originally assigned to such prominent companies as
Intel (18 times), Dot Hill Systems (13 times), IBM, Nikon, Dell, Seagate, Lenovo, McAfee,
Hewlett Packard, Lockheed Martin, and STMicroelectronics.
23.

After the time Defendant had knowledge of the ‘533 Patent, it continued to

directly infringe the ‘533 Patent and/or induce infringement of the ‘533 Patent.

Upon

information and belief, Defendant did so despite an objectively high likelihood that its actions
constituted infringement of a valid patent (i.e., the ‘533 Patent), and this objectively-defined risk
was known to Defendant or so obvious that it should have been known to Defendant.
24.

In accordance with Fed. R. Civ. P. 11(b)(3), Plaintiff will likely have additional

evidentiary support for its claims of willful infringement after a reasonable opportunity for
discovery on this issue.
DEMAND FOR JURY TRIAL
Plaintiff, under Rule 38 of the Federal Rules of Civil Procedure, requests a trial by jury of
all issues so triable by right.
PRAYER FOR RELIEF
WHEREFORE, Plaintiff respectfully requests the Court to:

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a)

Enter judgment for Plaintiff on this Complaint on all causes of action asserted
herein;

b)

Enjoin Defendant, its agents, officers, servants, employees, attorneys and all
persons in active concert or participation with Defendant who receive notice of the
order from further infringement of United States Patent No. 6,272,533;

c)

Award Plaintiff damages resulting from Defendant’s infringement in accordance
with 35 U.S.C. § 284;

d)

Award Plaintiff enhanced damages as provided under 35 U.S.C. § 284;

e)

Award Plaintiff pre-judgment and post-judgment interest and costs;

f)

Enter judgment and an order finding that this is an exceptional case within the
meaning of 35 U.S.C. § 285 and awarding to Plaintiff its reasonable attorneys’ fees;
and

g)

Award Plaintiff such further relief to which the Court finds Plaintiff entitled under
law or equity.

Dated: September 3, 2013

Respectfully submitted,

_/s/ Craig Tadlock
______
Craig Tadlock
State Bar No. 00791766
Keith Smiley
State Bar No. 24067869
TADLOCK LAW FIRM PLLC
2701 Dallas Parkway, Suite 360
Plano, Texas 75093
903-730-6789
[e-mail]
[e-mail]
Attorneys for Plaintiff PanTaurus LLC

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