e-Watch Inc. et al v. Apple, Inc.

Filing 1

COMPLAINT against Apple, Inc. ( Filing fee $ 400 receipt number 0540-4435336.), filed by e-Watch Inc., e-WATCH CORPORATION. (Attachments: #1 Exhibit 1, #2 Exhibit 2, #3 Civil Cover Sheet, #4 Summons(es))(Goodpastor, Christopher)

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF TEXAS
MARSHALL DIVISION
E-WATCH, INC. AND
E-WATCH CORPORATION,

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§ Civil Action No. 2:13-cv-061
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§ Jury Trial Demanded
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Plaintiffs,
v.
APPLE, INC.,
Defendant.

ORIGINAL COMPLAINT
Plaintiffs, e-Watch, Inc. and e-Watch Corporation (collectively, “e-Watch” or
“Plaintiffs”), by and through its attorneys, for its Original Complaint against Apple, Inc.
(“Defendant”), hereby alleges as follows:

I.
1.

NATURE OF THE ACTION

This is a patent infringement action to end Defendant’s unauthorized and

infringing manufacture, use, sale, offering for sale, and/or importation of products incorporating
Plaintiffs’ patented inventions.
2.

e-Watch, Inc. is owner of all right, title, and interest in and to: United States

Patent No. 7,365,871 (the “’871 Patent”), issued April 29, 2008, for “Apparatus for Capturing,
Converting and Transmitting a Visual Image Signal Via a Digital Transmission System”; United
States Patent No. 7,643,168 (the “’168 Patent”), issued January 5, 2010, for “Apparatus for
Capturing, Converting and Transmitting a Visual Image Signal Via a Digital Transmission
System” (collectively, the “Patents”). True and correct copies of the Patents are attached hereto
as Exhibits 1–2.

3.

e-Watch Corporation and e-Watch, Inc. are parties to Inter-Company License

Agreement, under which e-Watch, Inc. grants to e-Watch Corporation an exclusive license to
make, use, sell and support products and services in accordance with the Patents, subject to
certain restrictions and reservations of rights.
4.

Defendant manufactures, provides, sells, offers for sale, imports, and/or

distributes infringing products and services related to those products.
5.

Plaintiffs further seek monetary damages and prejudgment interest for

Defendant’s past infringement of the Patents.
II.
6.

THE PARTIES

Plaintiff e-Watch, Inc. is a corporation organized and existing under the laws of

the State of Nevada, with its principal place of business located at 23011 IH-10 West, San
Antonio, Texas 78257.
7.

Plaintiff e-Watch Corporation is a corporation organized and existing under the

laws of the State of Texas, with its principal place of business located at 23011 IH-10 West, San
Antonio, Texas 78257.
8.

Upon information and belief, Defendant Apple, Inc. is a corporation organized

under the laws of the State of California, with its principal places of business located at 1 Infinite
Loop, Cupertino, CA 95014. Apple, Inc. also has a place of business at 12545 Riata Vista
Circle, Austin, Texas 78727. Upon information and belief, Defendant Apple, Inc. is authorized
to do business in Texas.

Apple, Inc. may be served by serving its registered agent CT

Corporation System, 350 N. St. Paul Street, Suite 2900, Dallas, Texas 75201-4234.

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III.
9.

JURISDICTION AND VENUE

This is an action for patent infringement which arises under the Patent Laws of

the United States, 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. §§1331 and 1338(a).
10.

This Court has personal jurisdiction over Defendant, and venue is proper in this

Court pursuant to 28 U.S.C. §§1391(b), (c), and 1400.
IV.
11.

PATENTS-IN-SUIT

The Patents disclose an image capture, conversion, compression, storage and

transmission system. The system provides a data signal representing the image in a format and
protocol capable of being transmitted over transmission systems and received equipment
receiving stations. In its most comprehensive form, the system is capable of capturing/receiving
and sending audio, documentary and visual image data to and from remote stations.
12.

Plaintiffs have obtained all substantial right and interest to the Patents, including

all rights to recover for all past and future infringements thereof.
13.

Plaintiffs have acted in conformity with 35 U.S.C. § 287.
V.

14.

DEFENDANT’S ACTS

Upon information and belief, Defendant manufactures, provides, sells, offers for

sale, and/or distributes certain infringing camera phones that are capable of operating over
cellular networks, including by way of example iPhone 4S (“Camera Phones”). By doing so,
Defendant has infringed the Patents.
15.

Upon information and belief, Defendant’s Camera Phones are infringing systems.

Defendant encourages and instructs its customers to use these infringing systems in a manner
that infringes the Patents.

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16.

Plaintiffs have been and will continue to suffer damages as a result of Defendant’s

infringing acts.
COUNT ONE
PATENT INFRINGEMENT—U.S. PATENT NO. 7,365,871
17.

Plaintiffs reallege and incorporate herein paragraphs 1–14.

18.

Upon information and belief, Defendant has directly infringed the ’871 Patent.

19.

The aforementioned acts of Defendant have caused damage to Plaintiffs and will

continue to do so.
COUNT TWO
PATENT INFRINGEMENT—U.S. PATENT NO. 7,643,168
20.

Plaintiffs reallege and incorporate herein paragraphs 1–17.

21.

Upon information and belief, Defendant has directly infringed the ’168 Patent.

22.

Defendant’s aforementioned acts have caused damage to Plaintiffs and will

continue to do so.
VI.
23.

JURY DEMAND

Plaintiffs hereby demand a jury on all issues so triable.
VII.

REQUEST FOR RELIEF

WHEREFORE, Plaintiffs e-Watch, Inc. and e-Watch Corporation respectfully request
that the Court:
A.

Enter judgment that Defendant infringes one or more claims of the
Patents asserted against them in the above Counts literally and/or
under the doctrine of equivalents;

B.

Award Plaintiffs e-Watch, Inc. and e-Watch Corporation past and
future damages together with prejudgment and post-judgment

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interest to compensate for the infringement by Defendant of the
Patents asserted against them in the Counts above in accordance
with 35 U.S.C. §284; and
C.

Award Plaintiffs e-Watch, Inc. and e-Watch Corporation their
costs, disbursements, attorneys’ fees, and such further and
additional relief as is deemed appropriate by this Court.

Dated: December 9, 2013

Respectfully submitted,
By:

/s/ Christopher V. Goodpastor
Christopher V. Goodpastor
State Bar No. 00791991
LEAD ATTORNEY
Mikal C. Watts
State Bar. No. 20981820
WATTS GUERRA LLP
811 Barton Springs Road, Suite 725
Austin, Texas 78704
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
[e-mail]
Francisco Guerra, IV
State Bar No. 00797784
WATTS GUERRA LLP
300 Convent Street, Suite 100
San Antonio, Texas 78205
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]

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Andrew G. DiNovo
State Bar No. 00790594
Adam G. Price
State Bar No. 24027750
Chester J. Shiu
State Bar No. 24071126
Stefanie T. Scott
State Bar No. 24061617
Gregory S. Donahue
State Bar No. 24012539
DINOVO PRICE ELLWANGER & HARDY LLP
7000 N. MoPac Expressway, Suite 350
Austin, Texas 78731
Telephone: [phone]
Facsimile : [phone]
Email: [e-mail]
[e-mail]
[e-mail]
[e-mail]
[e-mail]
T. John Ward, Jr.
State Bar No. 00794818
WARD & SMITH LAW FIRM
P.O. Box 1231
Longview, Texas 75606-1231
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
ATTORNEYS FOR PLAINTIFFS
e-WATCH, INC. AND
e-WATCH CORPORATION

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