TQP Development, LLC v. Sling Media, Inc.
COMPLAINT against Sling Media, Inc. ( Filing fee $ 350 receipt number 0540-3825100.), filed by TQP Development, LLC. (Attachments: # 1 Exhibit A, # 2 Civil Cover Sheet, # 3 Civil Cover Sheet Attachment)(Fenster, Marc)
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF TEXAS
TQP DEVELOPMENT, LLC,
Civil Action No. 2:12-cv-650
JURY TRIAL DEMANDED
SLING MEDIA, INC.,
ORIGINAL COMPLAINT FOR PATENT INFRINGEMENT
This is an action for patent infringement in which TQP Development, LLC
(“TQP”) makes the following allegations against Sling Media, Inc. (“Defendant”):
Plaintiff TQP Development, LLC is a Texas limited liability company
having a principal place of business of 179 W. Front Street, Suite 244, Tyler, Texas
On information and belief, Defendant Sling Media, Inc. (“Sling”) is a
Delaware corporation with its principal place of business at 1051 E. Hillsdale Blvd, Suite
500, Foster City, California 94404. Sling may be served through its agent for service of
process Corporation Service Company, located at 2711 Centerville Rd., Ste. 400,
Wilmington, Delaware 19808.
JURISDICATION AND VENUE
This action arises under the patent laws of the United States, Title 35 of
the United States Code. This Court has subject matter jurisdiction pursuant to 28 U.S.C.
§§ 1331 and 1338(a).
Venue is proper in this district under 28 U.S.C. §§ 1391(c) and 1400(b).
On information and belief, Defendant has transacted business in this district, and has
committed acts of patent infringement in this district.
On information and belief, Defendant is subject to this Court’s specific
and general personal jurisdiction pursuant to due process and/or the Texas Long Arm
Statue, due at least to their substantial business in this forum, including: (i) at least a
portion of the infringements alleged herein; and (ii) regularly doing or soliciting business,
engaging in other persistent courses of conduct, and/or deriving substantial revenue from
goods and services provided to individuals in Texas and in this Judicial District.
INFRINGEMENT OF U.S. PATENT NO. 5,412,730
Plaintiff is the owner by assignment of United States Patent No. 5,412,730
(“the ‘730 Patent”) entitled “Encrypted Data Transmission System Employing Means for
Randomly Altering the Encryption Keys.” The ‘730 Patent issued on May 2, 1995. A true
and correct copy of the ‘730 Patent is attached as Exhibit A.
Upon information and belief, Sling has been and now is infringing the
‘730 Patent in the State of Texas, in this judicial district, and elsewhere in the United
States, by, among other things, methods practiced on various Sling websites (including,
without limitation to sling.com and related internal systems supporting the operation of
said websites) for transmitting data comprising a sequence of blocks in encrypted form
over a communication link covered by one or more claims of the ’730 Patent to the injury
of TQP, such as using the RC4 encryption algorithm in combination with either the
Secure Sockets Layer or Transport Layer Security encryption protocol.
infringement includes all websites and internal systems operated by or for Sling that
transmit data comprising a sequence of blocks in encrypted form as described by one or
more claims of the ‘730 Patent. For example, when Sling and/or Sling’s customers
connect to Sling’s website, a communication link is established between host servers and
the client computer.
Data transmitted over this communication link comprises a
sequence of blocks, and is transmitted as packets in a sequence over the communication
link. Certain data transmissions (both from the client computer to the host server, and
from the host server to the client computer) are encrypted according to the claimed
method. In order to communicate with encrypted portions of Sling’s website, client
computers must agree to an encryption algorithm or protocol. Once that protocol is
established by the host server, the client computer automatically implements the claimed
encryption algorithm under the direction of the host server. Sling provides, or directs the
client computer to provide, a seed value for both the transmitter and receiver in a
symmetric encryption algorithm, and uses the same key to encrypt and decrypt data.
Sling generates, or directs the client computer to generate, a first sequence of pseudorandom key values, such as alpha and/or numerical values used to encrypt data, based on
said seed value at the transmitter (whichever of the host server or client computer is
sending the encrypted information), each new key value in said sequence being produced
at a time dependent upon a predetermined characteristic of the data being transmitted
over said link. Sling encrypts data for transmission from the host server to the client. In
addition, Sling directs the client computer to encrypt data comprising information sent
from the client to the host server before it is transmitted over the link. Sling generates, or
directs the client computer to generate, a second sequence of pseudo-random key values,
such as alpha and/or numerical values used to encrypt data, based on said seed value at
said transmitter, each new key value in said sequence being produced at a time dependent
upon a predetermined characteristic of the data being transmitted over said link such that
said first and second sequences are identical to one another, as is used in a symmetric
algorithm, a new one of said key values in said first and second sequences being
produced each time a predetermined number of said blocks are transmitted over said link.
Sling decrypts data sent from the client in order to use the data, and directs the client
computer to decrypt data transmitted from the host server in order to provide a useable
display to, for example, a user of the client computer. By virtue of performing each step
of the claimed method, Sling is directly infringing the ‘730 Patent. In addition, by virtue
of performing some steps and directing and/or controlling others to perform the
remaining steps, Sling is directly infringing, literally infringing, and/or infringing the
‘730 Patent under the doctrine of equivalents. Sling is thus liable for infringement of the
’730 Patent pursuant to 35 U.S.C. § 271.
On information and belief, to the extent any marking was required by 35
U.S.C. §287, all predecessors in interest to the ‘730 Patent complied with any such
To the extent that facts learned in discovery show that Defendant’s
infringement of the ‘730 Patent is, or has been willful, Plaintiff reserves the right to
request such a finding at the time of trial.
As a result of Defendant’s infringement of the ‘730 Patent, Plaintiff has
suffered monetary damages and is entitled to a money judgment in an amount adequate to
compensate for Defendant’s infringement, but in no event less than a reasonable royalty
for the use made of the invention by Defendant, together with interest and costs as fixed
by the court.
PRAYER FOR RELIEF
WHEREFORE, Plaintiff respectfully requests that this Court enter:
A judgment in favor of Plaintiff that Defendant has directly and/or jointly
infringed the ‘730 Patent;
A judgment and order requiring Defendant pay Plaintiff its damages,
costs, expenses, and prejudgment and post-judgment interest for Defendant’s
infringement of the ‘730 Patent as provided under 35 U.S.C. § 284;
A judgment and 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
Any and all other relief, at law or equity, to which Plaintiff may show
itself to be entitled.
DEMAND FOR JURY TRIAL
TQP, under Rule 38 of the Federal Rules of Civil Procedure, requests a trial by
jury of any issues so triable by right.
Dated: October 11, 2012
TQP DEVELOPMENT, LLC
By: /s/ Marc A. Fenster
Marc A. Fenster, CA SB No. 181067
Kevin P. Burke, CA SB No. 241972
Adam S. Hoffman, CA SB No. 218740
Alexander C.D. Giza, CA SB No. 212327
Russ August & Kabat
12424 Wilshire Boulevard, 12th Floor
Los Angeles, CA 90025
Tel: (310) 826-7474
Fax: (310) 826-6991
Hao Ni, TX Bar No. 24047205
Ni Law Firm, PLLC
3102 Maple Ave. Suite 400
Dallas, TX 75201
Tel: (214) 800-2208
Fax: (214) 800-2209
Andrew W. Spangler, State Bar No. 24041960
James A. Fussell, III, State Bar No. 2003193
Spangler & Fussell P.C.
208 N. Green St., Suite 300
Longview, TX 75601
Telephone: (903) 753-9300
Facsimile: (903) 553-0403
Attorneys for Plaintiff
TQP DEVELOPMENT, LLC
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