Compression Labs Incorporated v. Dell, Inc et al

Filing 53

AMENDED COMPLAINT FIRST AMENDED COMPLAINT against all defendants, filed by Compression Labs Incorporated. (Attachments: # 1 Exhibit)(Carroll, Otis)

Compression Labs Incorporated v. Dell, Inc et al

Doc. 53

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS MARSHALL DIVISION Compression Labs, Incorporated, Plaintiff, v. 1. Dell Incorporated, 2. International Business Machines Corporation, 3. Toshiba America, Incorporated, 4. Toshiba America Consumer Products, LLC, 5. Toshiba America Information Systems, Inc. 6. Toshiba America Electronic Components, Inc. Defendants. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

C.A. No. 2:04-CV-159 (Folsom) JURY

FIRST AMENDED COMPLAINT

Compression Labs, Inc. ("CLI") for its First Amended Complaint against Defendants alleges as follows: NATURE OF THE ACTION 1. This is a patent infringement action to stop each Defendant's unauthorized and

infringing sale, offers to sell, use and importation of products incorporating CLI's patented technology. CLI seeks injunctive relief to stop Defendants from continuing to infringe CLI's valuable patent rights, as well as monetary damages. THE PARTIES 2. Plaintiff, CLI, is a corporation existing and organized under the laws of Delaware

and has its principal place of business at 108 Wild Basin Drive, Austin, TX 78746.

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3.

Defendant Dell Incorporated is a corporation existing and organized under the

laws of Delaware and has its principal place of business at 1 Dell Way, Round Rock, TX 78682. 4. Defendant International Business Machines Corporation is a corporation existing

and organized under the laws of New York and has its principal place of business at New Orchard Road, Armonk, NY 10504. 5. Defendant Toshiba America, Incorporated is a corporation existing and organized

under the laws of Delaware and has its principal place of business at 1251 Avenue of the Americas, 41st Floor, New York, NY 10020. 6. Defendant Toshiba America Consumer Products, Inc. is a corporation existing

and organized under the laws of New Jersey and has its principal place of business at 82 Totowa Road, Suite 1, Wayne, NJ 07470. 7. Defendant Toshiba America Information Systems, Inc. is a corporation existing

and organized under the laws of California and has its principal place of business at 9740 Irvine Boulevard, Irvine, CA 92618. 8. Defendant Toshiba America Electronic Components, Inc. is a corporation existing

and organized under the laws of California and has its principal place of business at 9775 Toledo Way, Irvine, CA 92618. JURISDICTION AND VENUE 9. This action for patent infringement arises under the Patent Laws of the United

States, 35 U.S.C. §§ 1 et seq., and in particular 35 U.S.C. §§ 271, 281, 283, 284 and 285. This Court has jurisdiction over the subject matter of this action under 28 U.S.C. 1338(a). 10. On information and belief, this Court has personal jurisdiction over each of the

Defendants and venue is proper in this Court pursuant to 28 U.S.C. §§ 1391 and 1400. COUNT 1 ­ PATENT INFRINGEMENT 11. This case involves technology used to process digital signals. CLI owns patents

relating to such technology, and CLI invested substantial amounts in related research and development. 2
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12.

United States Patent No. 4,698,672 entitled "Coding System for Reducing

Redundancy" (hereinafter "the `672 patent"), was duly and legally issued on October 6, 1987. CLI is the sole owner of the `672 patent and has the exclusive rights to sue and recover for infringement thereof. A copy of the `672 patent is attached as Exhibit A. 13. Defendants offer to sell, sell, use, and/or import into the United States devices

and/or systems, at least portions of which are designed to be at least partly compliant with the JPEG standard as defined by CCITT Recommendation T.81 approved on September 18, 1992, entitled "Information Technology--Digital Compression and Coding of Continuous Tone Still Images--Requirements and Guidelines," the identical text of which is also published as ISO/IEC International Standard 10918-1, or with any version or variance thereof defining a lossy compression scheme (hereinafter referred to as "the Accused Devices"). The Accused Devices are covered by, and carry out methods that are covered by, one or more claims of the `672 patent. 14. Through their actions including offering to sell, selling, using and importing the

Accused Devices, Defendants have infringed the aforementioned patent and actively induced others to infringe and contributed to the infringement by others of the `672 patent in the United States, including within the jurisdiction of this Court. Certain of the Defendants also have made the Accused Devices in the United States, and such Defendants have also infringed the aforementioned patent by their actions in this regard. 15. CLI is likely to be irreparably harmed by Defendants' infringement, inducement

of others to infringe, and contributory infringement of the `672 patent. CLI has no adequate remedy at law. WHEREFORE, CLI prays for judgment that: A. United States Patent No. 4,698,672 has been infringed, directly, by inducement,

and/or contributorily, by each Defendant; B. Each Defendant, its officers, agents, servants and employees, and those persons in

active concert and participation with any of them, be permanently enjoined from the direct or

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contributory infringement of, and from inducing others to infringe, United States Patent No. 4,698,672; C. CLI be awarded damages sufficient to compensate it for each Defendant's

infringement, contributory infringement and inducement of others to infringe, that such damages be increased to three times the amount found or assessed pursuant to 35 U.S.C. § 284, and that such damages be awarded to CLI with prejudgment interest; D. That this case be declared exceptional pursuant to 35 U.S.C. § 284 and that CLI

be awarded its attorney fees, costs and expenses in this action; and E. CLI be awarded such other and further relief as the Court may deem just.

CLI DEMANDS A TRIAL BY JURY.

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Respectfully submitted, Compression Labs, Inc. Dated: October 19, 2004 By:_/s/ Stephen G. Rudisill (by perm. Otis Carroll) Stephen G. Rudisill (attorney-in-charge) (attorney to be noticed) Illinois Bar No.: 2417049 Texas Bar No.: 17376050 [e-mail] John C. Gatz (attorney to be noticed) Illinois Bar No.: 6237140 [e-mail] Russell J. Genet (attorney to be noticed) Illinois Bar No.:6255982 rgenet @jenkens.com Justin D. Swindells (attorney to be noticed) Illinois Bar No.: 6257291 [e-mail] JENKENS & GILCHRIST 225 West Washington St., Suite 2600 Chicago, Illinois 60606 Tel. [phone] Fax [phone] S. Calvin Capshaw III (attorney to be noticed) Texas Bar No.: 03783900 [e-mail] BROWN, McCARROLL, L.L.P. 1127 Judson Road, Suite 220 Longview, Texas 75601-5157 Tel. [phone] Fax. [phone] Franklin Jones, Jr. (attorney to be noticed) Texas Bar No.: 00000055 [e-mail] JONES & JONES, Inc., P.C. 201 West Houston Street (75670) P.O. Drawer 1249 Marshall, Texas 75670-1249 Tel. [phone] Fax. [phone]
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Otis Carroll (attorney to be noticed) Texas Bar No.: 03895700 [e-mail] IRELAND, CARROLL & KELLEY, P.C. 6101 South Broadway, Suite 500 Tyler, Texas 75703 Tel. [phone] Fax. [phone]

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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). Any other counsel of record will be served by facsimile transmission and/or first class mail this 19th day of October, 2004.

/s/ Otis Carroll_______________________

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