I/P Engine, Inc. v. AOL, Inc. et al

Filing 1

COMPLAINT against AOL, Inc., Gannett Company, Inc., Google, Inc., IAC Search & Media, Inc., Target Corporation ( Filing fee $ 350 receipt number 14683024186.), filed by I/P Engine, Inc. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Receipt, # 4 Civil Cover Sheet, # 5 Letter)(ecav, )

FILED
UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF VIRGINIA
ALEXANDRIA DIVISION

)

I/P ENGINE, INC.,

CLERK US DISTRICT COURT

)

Plaintiff,
v.

)

ZOII SEP 15 A 10
ALEXANDRIA. VIRGINIA

Civ. Action No. g.'U C\/&#-

)

)

AOL, INC.,
GOOGLE, INC.,

)
)

IAC SEARCH & MEDIA, INC.,

)

GANNETT COMPANY, INC., and

)

TARGET CORPORATION,

COMPLAINT

)

Defendants.

Jury Trial Demanded

)
)

Plaintiff I/P Engine, Inc. ("I/P Engine") hereby makes this complaint against

Defendants AOL, Inc. ("AOL"), Google, Inc. ("Google"), IAC Search & Media, Inc. ("IAC"),
Gannett Company, Inc. ("Gannett"), and Target Corporation'("Target") as follows:
NATURE OF ACTION

1. This is a patent infringement action in which I/P Engine seeks compensatory damages,

past and future, amounting to no less than reasonable royalties. In the search engine industry,
results are positioned on websites based on their determined "rank." For example, in search

advertising, an advertisement with the highest "rank" appears in the first position, and so on
down the page. Search engines seek to place the high quality advertisements in the best

positions because such placements are critical to attracting advertisers, pleasing end users and
producing search advertising revenues (the primary source of revenue for search engines).

Andrew K. Lang and Donald M. Kosak, inventors of U.S. Patent Nos. 6,314,420 ("the '420
patent") and 6,775,664 ("the '664 patent") (collectively "the patents-in-suit"), invented a

relevance filtering technology that is used in the search engine industry, and that has become the

dominant technology used to place high quality advertisements in the best positions and thereby
generate substantial revenue. At least some of the defendants knew about the patents-in-suit for
years, and despite such knowledge, these defendants continued to use it unlawfully. This patent
infringement action seeks a remedy for this unlawful taking.
JURISDICTION AND VENUE

2. This action arises under the United States Patent Act, codified at 35 U.S.C. § 1 et seq.,
and in particular, 35 U.S.C. §§ 271 and 281-285.

3. This Court has original jurisdiction over the subject matter of this action under
28 U.S.C. §§1331 and 1338(a).

4. This Court has personal jurisdiction over AOL, Google, IAC, Gannett, and Target

(collectively "Defendants") because, on information and belief, Defendants have transacted

business in this District, have committed acts of infringement in this District, and continue to
commit acts of infringement in this District.
5. Venue is proper under 28 U.S.C. §§ 1391(b), 1391(c) and 1400(b) because, on

information and belief, Defendants have transacted business in this District, have advertised and
solicited business in this District, have committed acts of infringement in this District, and have
established minimum contacts with this District.
PARTIES

6. 1/P Engine is a corporation organized and existing under the laws of the

Commonwealth of Virginia, with its corporate headquarters and principal place of business in
New York, New York.

7. On information and belief, AOL is a corporation organized under the laws of the State

of Delaware, with its corporate headquarters and principal place of business at 770 Broadway,

New York, New York 10003. A significant portion of AOL's operation directed to the

infringing technology remains at the campus of its former corporate headquarters at 22000 AOL
Way, Dulles, Virginia 20166, where AOL employs thousands of people. On information and

belief, AOL generates millions of dollars of search advertising revenue in this District.
Moreover, on information and belief, AOL formed its search advertising operation by combining
various advertising units of acquired entities. On information and belief, AOL is supporting its
search advertising operation at its campus in Dulles, Virginia.

8. On information and belief, Google is a corporation organized under the laws of the

State of Delaware, with its corporate headquarters and principal place of business at 1600
Amphitheatre Parkway, Mountain View, California 94043. A portion of Google's operation is

conducted at a location in Reston, Virginia, where on information and belief about fifty (50)
employees work on research, development, or design for Google. Moreover, Google has a

technical facility in Reston, Virginia, where Google reportedly houses substantial computing
resources including, on information and belief, its search advertising infrastructure. Google also,

on information and belief, has two other technical facilities within this District in Ashburn,
Virginia and Virginia Beach, Virginia.

9. On information and belief, I AC is a corporation organized under the laws of the State

of Delaware, with its corporate headquarters and principal place of business at 555 12th Street,
# 500, Oakland, California 94607. IAC operates Ask.com and, on information and belief,
Ask.com maintains a technical facility in Ashburn, Virginia, where Ask.com reportedly houses
data center resources including, on information and belief, some of its search advertising
infrastructure.

10. On information and belief, Gannett is a corporation organized under the laws of the

State of Delaware, with its corporate headquarters and principal place of business at 7950 Jones
Branch Drive, Tysons Corner, Virginia 22107. On information and belief, Gannett employs
thousands of people within this District and generates millions of dollars of revenue in this
District including search advertising revenue.

11. On information and belief, Target is a corporation organized under the laws of the

State of Minnesota, with its corporate headquarters and principal place of business at 1000
Nicollet Mall, Minneapolis, Minnesota 55403. On information and belief, thousands of residents
within this District use Target's website and thus generate search advertising revenue.
FACTUAL BACKGROUND

The Inventors' Involvement in Early Search Companies

12. I/P Engine is a privately held, wholly-owned subsidiary of Innovate/Protect, Inc. that

employs Mr. Lang as the company's Chief Executive Officer. Mr. Kosak is a technology advisor
to Innovate/Protect, Inc. I/P Engine recently purchased the patents-in-suit from Lycos, Inc.
("Lycos") - an early participant in the Internet search industry.

13. Messrs. Lang and Kosak were researchers and software developers during the early
days of the Internet search industry.

14. In 1995, Mr. Lang was a Carnegie Mellon doctoral student researching his

dissertation on adaptive filtering and recommendation system technologies. At that time, the
Internet search industry was growing rapidly.

15. One of Mr. Lang's thesis advisers, Professor Michael Mauldin, recommended that

Mr. Lang start his own company. Shortly thereafter, Mr. Lang did so, leaving Carnegie Mellon
to form Empirical Media Corporation, which later was renamed Wise Wire Corporation
("WiseWire").

16. Mr. Kosak was the first technologist hired into Wise Wire's founding team. Mr.

Kosak added years of experience in the commercial search engine field to the Wise Wire team
having previously led several projects directed to search technologies.
17. In the mid-to-late 1990s, the amount of content (e.g., web pages) available on the

Internet was relatively small compared to today. Users frequently accessed Internet web pages

by visiting portal sites, which presented content categorized directories through which the users
could select links to available web pages.

18. Lycos was one of the leading portal sites of this time. Mr. Lang's Carnegie Mellon
professor, Michael Mauldin, was Lycos' founder.

19. Lycos launched its website in 1994. Lycos' website included a directory-based
portal and also a query-based search engine; both of which provided access to its content catalog.

20. By 1996, Lycos' content catalog had grown substantially, and Lycos was one of the
largest websites of its kind.

21. Other large search sites at the time, such as AOL (known then as America Online)
also maintained large content catalogs.

22. As the volume of available Internet content continued to grow and the rate of that

growth increased, manual categorization processes presented problems in terms of the amount of
material to be categorized and the accuracy of such categorization.

23. As part of managing its content categorization processes, Lycos engaged Messrs.

Lang and Kosak through WiseWire to develop filtering techniques to more efficiently, and
automatically, categorize content for Lycos' directories including for its advertisements.

24. After working together on several projects for Lycos' website, Lycos acquired
WiseWire. Messrs. Lang and Kosak then joined Lycos, Mr. Lang as Chief Technology Officer

and Mr. Kosak as Senior Director of Engineering.

25. The volume of Internet content and Internet usage eventually inundated directory-

based portal sites, and query-based search engines incorporating algorithmic search became
prominent. Lycos, however, decided to go another direction with its business. Lycos continued

as a major portal provider and stopped investing money into search engine/system research and
development, including the technology developed by Messrs. Lang and Kosak. Lycos focused

instead on portal network operations with regional sites, chat services, personal home pages,
horoscopes and other features that would supplement these offerings.
The Search Engine Industry

26. In addition to algorithmic search, query-based search engines experimented with
several marketing techniques, generally known as search engine marketing and search

advertising, to monetize Internet usage; however, early models had limited success.
27. In 1998, GoTo.com launched pay-per-click ("PPC") based advertising.

28. GoTo.com, later renamed Overture Services, Inc. ("Overture"), obtained success

using PPC systems that provided a list of advertisements according to the bid amounts paid by
advertisers.

29. Overture's PPC auction model required an advertiser to pay when an end user

clicked on the advertiser's link that was displayed along with the advertisement on the results
page. The advertiser's bid (e.g., the price each advertiser was willing to pay per click)

determined how high each advertiser's link would be ranked relative to other advertisers, and

thus an advertiser's bid determined whether and where that advertisement would be displayed
a results page. The advertisement with the highest bid appeared in the first position.

30. The PPC model had shortcomings, however. For example, this model led to free

on

advertisement impressions for advertisers because an advertiser could bid its way to the top of

the ranking and have its advertisement displayed, thereby increasing the likelihood that end users
would see the advertiser's advertisement, even if the user was not likely to be interested in

clicking the advertiser's link (i.e., the advertisement was not relevant to the user's search query).
The '420 and '664 Patents

31. Before the search engine industry, Messrs. Lang and Kosak conceived of improved

technologies needed to produce better search results for users, such as advertising search results.

They adapted their filtering techniques to apply to search systems and invented filtering systems
and methods that: (i) filter items for content relevancy to a search query or to a "wire," (ii)

provide feedback information from prior users, and in filtering the items, (iii) combine the
provided feedback information with the content relevancy to determine whether (or where) an

item should be "ranked" in a search results response to the query or the "wire" ("Lang/Kosak
Relevance Filtering Technology"), as covered by the claims of the '420 and '664 patents.
32. The '420 patent is directed to search engine systems and methods that incorporate the

Lang/Kosak Relevance Filtering Technology to provide improved search results to user queries.
33. The '664 patent, which is a related patent to the '420 patent, is also directed to search
engine systems and methods incorporating the Lang/Kosak Relevance Filtering Technology.

34. Search engines have incorporated the Lang/Kosak Relevance Filtering Technology,
as claimed by the '420 and '664 patents, within their own search and search advertising systems
to provide better results.

35. The Lang/Kosak Relevance Filtering Technology is substantially better than other
systems, such as bid-based PPC search advertising systems.

36. Claim 10, for example, of the '420 patent covers, in part, a search engine system that

filters results based on a combination of "informons on the basis of applicable content profile

data for relevance to the query" and "collaborative feedback data from system users relative to
informons considered by such users."

37. The accused systems in this litigation use the Lang/Kosak Relevance Filtering

Technology by filtering and presenting search and search advertising results based on a

combination of (i) an item's content relevance to a search query; and (ii) click-through-rates
from prior users relative to that item.

38. At least since 2006, while Lycos was the owner of the patents-in-suit, Lycos marked
the '420 and '664 patents on its website.
Development of the Search Engine Industry

39. According to Google's Chief Economist, "not only are search engines widely used,

they are also highly profitable." Google generates billions of dollars of revenue because of its
search advertising. Google's Chief Economist also stated that a search engine's "primary source
of revenue comes from selling advertisements that are related to the search queries. Since end
users tend to find these ads to be highly relevant to their interests, advertisers will pay well to

place them. ... Search engine ads are one of the most effective forms of advertising."
40. AOL's current CEO similarly stated that search advertising is AOL's "primary

source of revenue." AOL has generated billions of dollars of revenue due to search advertising.
41. Almost all major search advertising systems operating today incorporate the

Lang/Kosak Relevance Filtering Technology. These search engines market their search
advertising systems based on the features of the Lang/Kosak Relevance Filtering Technology
covered by the '420 and '664 patents.

Google's Use of the Patented Technology

42. Google has used and continues to use search and search advertising systems that
adopt the Lang/Kosak Relevance Filtering Technology.

43. For example, Google adopted the Lang/Kosak Relevance Filtering Technology with

its use of "Quality Score." Google's search advertising systems filter advertisements by using
"Quality Score" which is a combination of an advertisement's content relevance to a search
query (e.g., the relevance of the keyword and the matched advertisement to the search query),

and click-through-rates from prior users relative to that advertisement (e.g., the historical clickthrough rate of the keyword and matched advertisement).

Google

AdWords Help

This Help Center is fcr the new AdWords interface.

„,

See our Kew Interface Onenreaic learn mere, if you're still using the previous interface, find help here.

—~

How are ads ranked?

Ads are pos.iio.wd on Marsh and content cages bases on !he=r Ao =**•*. The ad .v* the highest Ad Rank appears <n ft* fist posSon. sro so on do»n -Jie page.

Ad Rank formulas
i* $«-«

~~~
il

"
?.

~"

~—

y;**W°rcfrW'' *« «PO«i»S «" *•»*« ^/re appear^ en Good/, ana the search net*** or on fce content
*« «PO«i»S «" *•»*« ^/re appear^ en Good/, ana the search net*** or on fce content

p ^errem^es « ill (
i
t
determning ttfstrer a p ^errem^es « will s(w on a given content page. C s* the links below a see she Ad Ran*
Ci

© K»vword-laro»ted ads on Goonle and the search network

Aa Ranii = CPC tid « Qua ^ Score

The QuaiTy Score lorAe Ra.-<on Sesge j.-c the search nettmkis aeterm^sd by:

o
*
o
o
o

You," accour.i hstory. wr.ci! is measures ty Bw CTR of all *e ads and k4y»/or:s a jeur account
The historical CTR of tM iiip_a^JJfiLim the ad group
The ie'«va.ie« ol the ksynarc to t?e sas n its ad group
The re'svjrce of the keyworc ins the rratsrssd ad to the search q-er/
YO'jr aceoi/it's pe-foimanse in *e g«osrapf ca region w«re Ire jc will ce shown

6 rtlh

'f

44. Google's search advertising systems incorporating "Quality Score" - including

products such as AdWords and AdSense for Search - generate advertisements and associated
links when end users search from Google's websites including, for example, its main webpage.

Google

grills
AMI 75.000 W

s CO 15 nu)

► Grills At Lowe's®1 Lowes com
**Vl?we<; coil

Q

:ov-e;.ccm is rat£<i * * fl-*

Weber Grills Blowout Sale

£5 rfvievri

Videos

Gel Everyday Low Prices on lowoVS Top-Brand Gillb This Summer!

Mews

Grill Sale at Sears® I sears com

Shopping

More

Salt on Huge Selection Weber Gillt
Call (or Oelnery. WD DC VA

w*vsaai£ *.oni> C-uliasi Livi-«u>C-ri!ls &.C>f,iMtZ*o*ii'Z

Car & Truck Billet Grills

Saw up to 20% onAIIGfllhatS«ars.com Hum! Ofer Ends Soon

Up lo 30% 09 Patio Sets - Buy Online. Pick up in Stora

W-* C'iri j r.CtrrjT); !f1-0lHK

Custom Giillt. Latest Releases

Classic Billet i. Chrome Wire Mesh

100s o( Grills on Sale I GrillsDirect com
itli

WeberGrlllsOnSale

Up to 40% 09 Charcoal Citlls, Gas GiHH, S. Smokers. Froo Shipping!
Gas Grills ■ Charcoal Grills • Smoker Grills - Best Sailers

AllV tim

v-v> cdJItIK :cni".Vt?t-;!*.iJ|ls

Huge Sanngs on Weber GiEIK Free

Related searches for grills:
Brands Weber
Stores:

Walimn

Types

Fast Shipping Buy Online & Savel

Geerna Fcmman
Amarnn

Char-Broi|

HoJoiul

Lowe'-i

Qucane

Brinkman

The Outdoor Chef Store

ja

Paul Wall

Sillk. Smokers. Gadgets & Mere!
Free Shipping on Orders over $100

Weber Grille and Accessorial

Super cheap Weber Grills

Weber-Stephen Products.

-v^y wvoD£'-yiills bml-cuce :cm

Replacement Pans - Genesis - GnScut - Reach Us

Bur cheap Wetei Giillt & sa«e no»l
BEST-PRlCE.com - the shop expert

Stiopcinq resuils for orllla

Commercial Park Grills
>'v.« tJisffctjiilK co^-

Commercial park grills i. fire nngs

for parks, schools. & facilities
Char-Gnllfr Vr\] Char-Btnil

WlriPwO]
8P>BW S35
-CUD

<K?3O5't-e
Burnor Girll

Ch»r-Grifaf»=n Coleman

Duo-Gasand-Ch«rcnal

9949-7S0 Bitll
RoiidTrin LXF

WebtriJtimt

Srtiril Series
Freestantfnn

Weber Grills at Amazon

»-"

45. Google additionally allows third party publishers - via AdSense for Search - to

display advertising search results in response to search queries made on the third party
publishers' websites.

46. After adopting the Lang/Kosak Relevance Filtering Technology, Google's market

share significantly grew and its profits from search advertising considerably outpaced those of
other PPC advertising providers.

47. The Lang/Kosak Relevance Filtering Technology proved to be extremely valuable to
Google, allowing Google to generate greater profits and to expand its operations into many other
technology areas.

Google's Knowledge of the Patented Technology

48. On information and belief, Google knew about the '420 patent from a prior litigation.

49. In this prior litigation, Overture sued Google for patent infringement. To resolve that
matter, on information and belief, Google paid for a license to Overture's U.S. Patent No.

10

6,269,361 ("the '361 patent") and its related patents.

50. Google reported a non-cash charge of more than $200 million to resolve the Overture
litigation, and to resolve other non-patent claims.

51. During the period in which the Overture litigation was pending and prior to

execution of the resulting license agreement, Overture was prosecuting a patent application

directed to an advertisement-based database system - U.S. Application No. 10/020,712 - that
was related to the '361 patent.

52. The U.S. Patent and Trademark Office ("PTO") rejected that related application
multiple times citing the '420 patent as prior art.

53. Generally, as part of a due diligence process, a prospective licensee - especially one

seeking to resolve a litigation - analyzes the information that could affect their prospective rights
under a proposed license agreement including a review of any known prior art. Upon

information and belief, Google reviewed the '420 patent and its related patents before executing
the Google/Overture license agreement.
AOL's Use of the Patented Technology

54. AOL has used and continues to use search and search advertising systems that adopt
the Lang/Kosak Relevance Filtering Technology.

55. For example, on information and belief, AOL incorporated and uses technology from

Quigo Technologies, Inc. ("Quigo") in at least one of its search advertising systems, AOL's
Advertising.com Sponsored Listings.

56. AOL's Advertising.com Sponsored Listings filters advertisements using a

combination based on an advertisement's content relevance to a search query (e.g., contextual
relevancy) and click-through-rates from prior users relative to that advertisement (e.g., click-

11

through rate), as covered by claims of the '420 and '664 patents.
btp;

Targeted ads,

ads^nar

your way ~

Start 'A'th as littler 35

$100

somcsn:

tott U««!

vivrt ►ru

»

August 24, 2O'J!)

AdSonar adds Performance Optimization to its Feature Set
Our dcvelopors havo been working hard all summer to improve our service. We
wanted to ihare with you one important enhancement that may influence the
way you use AdSonan

_ve CV* Cy Uit*

'V

Performance Optimization

your click-through rate will begin to more heavily influence the number of

impressions your sds receive. Impression volume ii determined by a combination a
fzctot? including, bid price, contextual relevancy snd clidc-tf1 rough tato. To inc^oasc your
evecsurs, you now have several ope'eni:

■ Wa<e sure the topics you k'd evi are relevant M ycur landirg pa;e(s). C-oose as ma-iy
ap;cs as you on that so re'wan: to your ids.

m Test and refine ycur creative messaging to improve ctck-tnroagn rates. Ads with
high click-through rates will gain more exposure at their enisling bid price!
■ Raise yocr bids. High bids ccmbined w:tn high dick-through rares wl: onsu-c
maximum exposure for your acs.

57. As a second search advertising system, AOL uses Google's search advertising
system which uses the Lang/Kosak Relevance Filtering Technology and filters advertisements

using a combination based on an advertisement's content relevance to a search query, and clickthrough-rates from prior users relative to that advertisement.

58. AOL also has a third search advertising system which uses a white-label, modified

version of Google's search advertising system and filters advertisements using a combination
based on an advertisement's content relevance to a search query, and click-through-rates from
prior users relative to that advertisement.

59. On information and belief, at least these three search advertising systems used by

AOL generate advertisements and associated links using the Lang/Kosak Relevance Filtering

12

Technology when end users search from AOL's websites including, for example, its main
webpage.

Mail

Advanced Search

Seongs

Sign In

(grills

Grills At Lowe's® I Lowes com
Sel Everyday Low Prices Now On A Selection Of Top-Brand Glllkl

Huge Swings en Weber Gillh Free
Fast Shipping Buy Online & S
lllyG

Grill Sale at Sears® I sears com
Save up 10 20% on All Gltllt at Sears com Hurry! Offer Ends Soon

>".tt> ',ezi-> corv'-jitll ?3:e

Patio Sels Over »249 Ship Free • Buy Online. Pic* up in Store ■ Up lo 30% OH Patio Sets
Unknown Loctfloti
Set location »

Car & Tmck Billet Grills - Custom Grills. Latest Releases
Classic Billet & Chrome Wire Mesh

pasl24 news

Ca!l (or Delivery. MO. DC. VA

**>vw i}iMlv>°"*[yUi'J i'nn

Pnmo Grills - Lowest Prices Anywhere I bulcherblockonline com
Free Shipping | No Sales Tax
oas gnus
weber grills

smoker gnus

Hone

More Offers gas cockers, cooking catalogs indoor grills, stove accessories

Find Grills Near You muici.*..-.; i«

EntorZ!PCodo orCny. Staw

\\W// b55!SL« jbOClccsi CCT>

Up to 40% 09 Charcoal Giillt. Gas
GlKkt, 8, Smokers. Free Shippingl
illdf

Super cheap Weber Grills

Buy cheap Webor Gilllt & sare ncwl

BEST-PRICE com- the shop expert
t

>-*\* ruVr^tirivUr.l't.ft c™>

;:jR

Bast Btr/B Weekly Offers
Shop The Best Bu«<9 Weekly Ad For
Deals On Appliances Al Best Buy®

IQOsofGrlilsonSale

v^v. ca-ij corr/BrkMJiilU

Weber Grills Blowout Sale - Sale on Huge Selection Weber Grill
•*ur>faii*

Webar Grills On Sale

lll

Portable Grills

Find Portable Gilils at Target
Shop and Save at Target.com
WAV.lisgft coin

| OelLiilingi~i

Brands fcr <)rltls Wehpr F.n> Maa.f N»pol»on Cpieman Meco

Weber Grills and Accessories
Weber-Stephen Prcducts.
v^vw ■vetw ccir=/ - ^i.'i'.!.Tf

Char-Broil I Store I Grills / Cookers / Fireplaces

Glilb I Cookers / Fireplices ... Featured Products Palio Bistro® Infrared Eledric Grltl • Graphae
J1B9 99 NEWI Combmalian Charcoal-Gas Glill 1449 99...
v.»- cMtrol tOfivOaie^ijry^f-'Gii t.^. CtciMv Fiiefiljc*."- J'j^« • !;!.:*l!^^

Outdoor Cooking. Grills. Camoino Stoves - Walmart com

60. These three search advertising systems have generated significant revenues for AOL.
AOL's Knowledge of the Patented Technology

61. On information and belief, AOL was aware of the '420 patent.

62. AOL owns at least one search advertising-related patent - U.S. Patent No. 7,165,119
("the '119 patent") - that lists the 4420 patent on its face.

63. The 4119 patent is entitled "Search Enhancement System and Method Having

Rankings, Explicitly Specified by the User, Based Upon Applicability and Validity of Search
Parameters in Regard to a Subject Matter," and lists Edmund J. Fish of Dulles, Virginia as the
inventor.

64. During prosecution of the patent application that issued as the '119 patent, AOL

13

disclosed the '420 patent to the PTO.

65. The specification of AOL's '119 patent, as originally filed with the PTO, expressly
discusses the '420 patent.
IAC's Use of the Patented Technology

66. IAC's website, Ask.com, has used and continues to use search and search advertising
systems that adopt the Lang/Kosak Relevance Filtering Technology.

67. For example, Ask.com uses the Lang/Kosak Search Filtering Technology in at least
two of its search advertising systems.

68. First, in its own search advertising system called Ask Sponsored Listings, Ask.com

filters advertisements using the Lang/Kosak Relevance Filtering Technology by combining an
advertisement's content relevance to a search query (e.g., the relevancy of ads) and click-

through-rates from prior users relative to that advertisement (e.g., the click volume of ads in
comparison to the ads of other advertisers), as covered by claims of the '420 and '664 patents.
\VbiT dstmaaa tit p'ueaiis ef ais"

taps: «!,coiths!p.:oin cs-cis »sUff pip eoiusei sid_jdp.pip:p_£jij!d=12a*p_«d=4Xoa)...

SponsoredListings
»Accounts

.^ ^ M,^ Reports
Help

Search by Keyword

Cewwits
Search

—)

Print Answer

Email Answer

What determines the placement of ads?

E!

What determines the placement of ads?

Placeman: of ads en jhe Ask Sponsored listings (ASL) network rr»ay vary across the ASL netwa.-k according ;o the

following factors:

"

your targeting choices

ASL network usef acions 3rd ASL network comers matched an* your keywords jrc aos
:he relevancy ol you- ads

the maximum CPCs submitted by you and by other advertsers

!he cBsk volume your ads received in comparison to the ads of other aeVenisers (CTRi
tf» naiire of the ASL network web srres and setvees and

»» dispby by ASL network web sites and services of other ron-AS- ad«rasements

ASL does nol guarantee that an ad wa be displayed en any par.«Oa( ASl neflA-crk web si:e o- service.

Oir ASL network partners may change the rarfcing of ads when blending :hem w.» spensote-d Inks 'rom other proviJets
The number of sponsored listings displayed by ASL network parirters and whether jixh partners also diplays other ads

from another pad listings provider en its service will 3ff»ct yetr ad's rank.

14

69. Second, Ask.com uses Google's search advertising system that uses the Lang/Kosak

Relevance Filtering Technology and filters advertisements using a combination based on an
advertisement's content relevance to a search query, and click-through-rates from prior users
relative to that advertisement.

70. On information and belief, both of these search advertising systems used by I AC
generate advertisements and associated links using the Lang/Kosak Relevance Filtering

Technology when end users search from Ask.com's websites including, for example, its main
webpage.
O hM://»ww.«k.corn/wct>tq-gr:lliM;arcti-&q<rc-0&o-[)H-ilir

gnlls

Top Answti

ijCJiz

Amazon.com results for wills
SirverSinnfr

Speaker Gull

120mm Fan

Coleman Boar!

Clolh BUck

Frtei wth Ghll

Trip CasMrnn

36'«70'Wide

Grill

;t^ Ask the Community >
NewrromAsk Seehowctworks *

More products from Aroaron rctfn, ^

Was Ihis answer helpful' gj Q

Charcoal Gillls
C« Oiitlt

Grills At Lowe's® I Lowes com

Get Everyday Uw Prices Now On A Salsclion Of Top-Brand Giilltl

Weber Giills

wak jov^es com

Barbeque Gillls

Weber Grills Super Sale - Low Price Weber Gnlls

Iced Out Giills

Large Selection Cuder Today MO DC V*

Mouth Giills

ww 4jiillscf*miyUr>d -.'.m

Gangsta Gillls

Weber Grilla and Accessories

Ouidoor Glillt

Weber-Siephen Producis

GoW Teeth
Beai Grylls

Char-Broil I Store I Grills / Cookers I Fireplaces

■;illl« / Cookers / Fireplaces ... Featwed Products- Patio Bislro© Infrared Electric Giill ■ GrapMe

(189 99 • NEW! Comtinjlion Charcoal-Gas liiill J4i9 99...
w^v»' '.Mrtjioii C'j-n'X^pfjfiry^/oit IjS-i'-^'.l-v'.-FrPi.-lv.

Hip Hop Jewelry
Pad Wall

Outdoor Cooking. Grills. Camping Stoves ■ Walmart com
Find outdoor cooking eqmpmeni including rjiilk and CAmpiog Steves at always low puces Saw money
i>e better, at Wa'mait com

71. Ask.com has generated substantial revenues due to its search advertising systems.
Others that Use the Patented Technology

72. Other websites use the patented technology in at least their search advertising
systems to generate revenue.

15

73. E-commerce website6 such as Target and publishing websites such as Gannett use

the Lang/Kosak Relevance Filtering Technology to rank and display advertisements alongside
their query-based search results.

74. Target displays advertisements alongside its product search results.

t -<•.; 1.1'J e1 £41

Guest3 Who Searched For "grids" Ultimately Bought

Oi»e* Mo

i

Wefrei Ono Tou<h

QuKkbito

Cl)«ekA««osoi

CUsiic Acc«os<mi«*
e.»\ B*l*t,>* Cora

BMbectie Covci
m F«s Up To A

Ad.byCoogU
Webtr r.rilk

e on rtugs Salcctton Weber Grill CaU for Delivery. MO. DC

VA

Weber firlllt nn Sqlg
Huoe SovtRQs on Weber Grills. Free Past Shipping, bur Online
Save *20 nt S

Save $20 Off $200 on Crllli. use Code SPATIoeO. Shop Now'
Supef c^fiftp Vfeher firtlj^

But cheap Weber Grills & *ave nowi BEST-PftlCE.com ■ tKe *hop expert.

Olr»CtB»yft ■ Brill*

75. Target's advertisements are generated using Google's search advertising systems, as
part of the Google Network, that filter advertisements by using the Lang/Kosak Relevance

Filtering Technology, as claimed in the '420 and '664 patents, to combine an advertisement's
content relevance to a search query, and click-through-rates from prior users relative to that
advertisement when end users search on Target's website.

16

76. Gannett displays advertisements alongside its news article search results.

m

Cars Auto Finance E»r4 Tuiett

.'obs R«ai EsWe OrcUie Degiees SlrimM OppcrUiniruss Shopping
Subtcrtmo paptt

11 Search I

Enter Your Friends Phone Numbers
for Fast Speed Dialing

iPl,. QO
' &>

TuDAX

filllto At I
,•„ i;ji.'. :5-.

6«lEv8ty(l«»LowPiicesHowOnAS«lec1ioiiO(Toi>-BranilGrilhl

WeL^r Grills Bbwout Sate
■.vwniill«-i'i-.li-,.! ■..■■. Sals on Huge Selection Weber Gilll Call (of Delivery MO DC VA

fmx6 economisl f

e""omic calam4y in2012
See the evidence.

Car & Truck Biitet Grills
v^^ r.vij rci'/'i ■'■*! 'jiilK Custom Grill*. Laiest Releases Classic Billet & Chroma Wire Mesh
o»i>uv>igi.itc<<bo.<t.ut

so«tw<ui«l.ri«.«n<e

Washington - New trick
allows any resident to gel
extremely cheap car-

insurance.

77. Gannett's advertisements are generated using Google's search advertising systems,

as part of the Google Network, that filter advertisements by using the Lang/Kosak Relevance
Filtering Technology, as claimed in the '420 and '664 patents, to combine an advertisement's
content relevance to a search query, and click-through-rates from prior users relative to that
advertisement when end users search on Gannett's websites.
FIRST CLAIM FOR RELIEF
(Infringement of U.S. Patent No. 6,314,420)

78. I/P Engine incorporates by reference the allegations contained in paragraphs 1
through 77 above.

79. The '420 patent entitled "Collaborative/Adaptive Search Engine" issued on
November 6,2001, naming Andrew K. Lang and Donald M. Kosak as inventors. A copy of the
'420 patent is attached as Exhibit A. I/P Engine is the assignee of all rights, title and interests in

and to the '420 patent, and holds the right to sue and recover for past, present, and future
infringement thereof.

17

80. On information and belief, in the United States and in this District, AOL has directly

infringed, and continues to directly infringe, at least one claim of the '420 patent by making,
using, providing, selling and/or offering for sale products, services, methods, and systems

including, without limitation, its search advertising systems. AOL is liable for its infringement
of the '420 patent in violation of 35 U.S.C. § 271.
81. On information and belief, AOL is further liable as an active inducer of infringement
of the '420 patent in violation of 35 U.S.C. § 271 by knowingly taking active steps to encourage

and facilitate direct infringement by others such as by third party publishers of AOL's Sponsored
Listings Network and/or by users of AOL's infringing systems.

82. On information and belief, AOL is a contributory infringer of the '420 patent in

violation of 35 U.S.C. § 271 by making, using, selling, and/or offering for sale within the United

States components that embody a material part of the inventions described in at least one claim
of the '420 patent, that are known by AOL to be specially made or specially adapted for use in
infringement of at least one of the claims of the '420 patent, and that are not staple articles or

commodities suitable for substantial, non-infringing use.
83. Since at least as early as the October 14, 2003 filing date of the patent application
that issued as the ' 119 patent, AOL has had actual and constructive knowledge of the '420
patent.

84. On information and belief, in the United States and in this District, Google has
directly infringed, and continues to directly infringe, at least one claim of the '420 patent by
making, using, providing, selling and/or offering for sale products, services, methods, and

systems including, without limitation, its search advertising systems. Google is liable for its
infringement of the '420 patent in violation of 35 U.S.C. § 271.

18

85. On information and belief, Google is further liable as an active inducer of

infringement of the '420 patent in violation of 35 U.S.C. § 271 by knowingly taking active steps
to encourage and facilitate direct infringement by others such as by third party publishers of the

Google Network and/or by users of Google's infringing systems.
86. On information and belief, Google is a contributory infringer of the '420 patent in

violation of 35 U.S.C. § 271 by making, using, selling, and/or offering for sale within the United
States components that embody a material part of the inventions described in at least one claim

of the '420 patent, that are known by Google to be specially made or specially adapted for use in

infringement of at least one of the claims of the '420 patent, and that are not staple articles or
commodities suitable for substantial, non-infringing use.

87. Since at least as early as 2004, Google has had actual and constructive knowledge of
the '420 patent.

88. On information and belief, in the United States and in this District, IAC has directly
infringed, and continues to directly infringe, at least one claim of the '420 patent by making,
using, providing, selling and/or offering for sale products, services, methods, and systems

including, without limitation, its search advertising systems. IAC is liable for its infringement of
the '420 patent in violation of 35 U.S.C. § 271.

89. On information and belief, IAC is further liable as an active inducer of infringement

of the '420 patent in violation of 35 U.S.C. § 271 by knowingly taking active steps to encourage
and facilitate direct infringement by others such as by third party publishers of the Ask
Sponsored Listings Network and/or by users of IAC's infringing systems.

90. On information and belief, IAC is a contributory infringer of the '420 patent in

violation of 35 U.S.C. § 271 by making, using, selling, and/or offering for sale within the United

19

States components that embody a material part of the inventions described in at least one claim

of the '420 patent, that are known by IAC to be specially made or specially adapted for use in
infringement of at least one of the claims of the '420 patent, and that are not staple articles or
commodities suitable for substantial, non-infringing use.

91. IAC has been put on notice of the '420 patent and its infringement thereof with at
least the filing of this Complaint.
92. IAC has actual and constructive knowledge of the '420 patent.

93. On information and belief, in the United States and in this District, Gannett, who is a
third party publisher of Google, has directly infringed, and continues to directly infringe, at least
one claim of the '420 patent by making, using, providing, selling and/or offering for sale
products, services, methods, and systems including, without limitation, Google's search
advertising system(s). Gannett is liable for its infringement of the '420 patent in violation of
35U.S.C. §271.

94. On information and belief, Gannett is further liable as an active inducer of
infringement of the '420 patent in violation of 35 U.S.C. § 271 by knowingly taking active steps
to encourage and facilitate direct infringement by others such as users of the infringing systems.
95. On information and belief, Gannett is a contributory infringer of the '420 patent in
violation of 35 U.S.C. § 271 by making, using, selling, and/or offering for sale within the United
States components that embody a material part of the inventions described in at least one claim

of the '420 patent, that are known by Gannett to be specially made or specially adapted for use in
infringement of at least one of the claims of the '420 patent, and that are not staple articles or
commodities suitable for substantial, non-infringing use.
96. Gannett has been put on notice of the '420 patent and its infringement thereof with at

20

least the filing of this Complaint.

97. Gannett has actual and constructive knowledge of the '420 patent.

98. On information and belief, in the United States and within this District, Target, who

is a third party publisher of Google, has directly infringed, and continues to directly infringe, at
least one claim of the "420 patent by making, using, providing, selling and/or offering for sale
products, services, methods, and systems including, without limitation, Google's search
advertising system(s). Target is liable for its infringement of the '420 patent in violation of
35U.S.C. §271.

99. On information and belief, Target is further liable as an active inducer of

infringement of the '420 patent in violation of 35 U.S.C. § 271 by knowingly taking active steps
to encourage and facilitate direct infringement by others such as users of the infringing systems.
100. On information and belief, Target is a contributory infringer of the '420 patent in
violation of 35 U.S.C. § 271 by making, using, selling, and/or offering for sale within the United
States components that embody a material part of the inventions described in at least one claim
of the '420 patent, that are known by Target to be specially made or specially adapted for use in
infringement of at least one of the claims of the '420 patent, and that are not staple articles or
commodities suitable for substantial, non-infringing use.

101. Target has been put on notice of the '420 patent and its infringement thereof with at
least the filing of this Complaint.
102. Target has actual and constructive knowledge of the '420 patent.

103. 1/P Engine has been damaged by Defendants' infringement, and will continue to be
damaged by Defendants' infringement, of the '420 patent, and thus is entitled to recover
damages from Defendants to compensate it for the infringement.

21

104. Pursuant to 35 U.S.C. § 284,1/P Engine is entitled to damages adequate to

compensate it for the infringement but in no event less than a reasonable royalty.
105. This case is "exceptional" within the meaning of 35 U.S.C. § 285, and I/P Engine is
entitled to an award of attorneys' fees.
SECOND CLAIM FOR RELIEF

(Infringement of U.S. Patent No. 6,775,664)

106. I/P Engine incorporates by reference the allegations contained in paragraphs 1
through 105 above.
107. The '664 patent entitled "Information Filter System and Method for Integrated
Content-Based and Collaborative/Adaptive Feedback Queries" issued on August 10, 2004,
naming Andrew K. Lang and Donald M. Kosak as inventors. A copy of the '664 patent is
attached as Exhibit B. I/P Engine is the assignee of all rights, title and interests in and to the
'664 patent, and holds the right to sue and recover for past, present, and future infringement
thereof.
108. On information and belief, in the United States and in this District, AOL has
directly infringed, and continues to directly infringe, at least one claim of the '664 patent by

making, using, providing, selling and/or offering for sale products, services, methods, and
systems including, without limitation, its search advertising systems. AOL is liable for its

infringement of the '664 patent in violation of 35 U.S.C. § 271.
109. On information and belief, AOL is further liable as an active inducer of
infringement of the '664 patent in violation of 35 U.S.C. § 271 by knowingly taking active steps

to encourage and facilitate direct infringement by others such as by third party publishers of
AOL's Sponsored Listings Network and/or users of AOL's infringing systems.

22

110. On information and belief, AOL is a contributory infringer of the '664 patent in

violation of 35 U.S.C. § 271 by making, using, selling, and/or offering for sale within the United
States components that embody a material part of the inventions described in at least one claim

of the '664 patent, that are known by AOL to be specially made or specially adapted for use in
infringement of at least one of the claims of the '664 patent, and that are not staple articles or
commodities suitable for substantial, non-infringing use.

111. AOL has been put on notice of the '664 patent and its infringement thereof with at
least the filing of this Complaint.
112. AOL has actual and constructive knowledge of the '664 patent.

113. On information and belief, in the United States and in this District, Google has

directly infringed, and continues to directly infringe, at least one claim of the '664 patent by
making, using, providing, selling and/or offering for sale products, services, methods, and

systems including, without limitation, its search advertising systems. Google is liable for its
infringement of the '664 patent in violation of 35 U.S.C. § 271.

114. On information and belief, Google is further liable as an active inducer of
infringement of the '664 patent in violation of 35 U.S.C. § 271 by knowingly taking active steps

to encourage and facilitate direct infringement by others such as by third party publishers of the
Google Network and/or by users of Google's infringing systems.

115. On information and belief, Google is a contributory infringer of the '664 patent in

violation of 35 U.S.C. § 271 by making, using, selling, and/or offering for sale within the United
States components that embody a material part of the inventions described in at least one claim

of the '664 patent, that are known by Google to be specially made or specially adapted for use in
infringement of at least one of the claims of the '664 patent, and that are not staple articles or

23

commodities suitable for substantial, non-infringing use.

116. Google has been put on notice of the '664 patent and its infringement thereof with
at least the filing of this Complaint.

117. Google has actual and constructive knowledge of the '664 patent.

118. On information and belief, in the United States and in this District, IAC has directly
infringed, and continues to directly infringe, at least one claim of the '664 patent by making,
using, providing, selling and/or offering for sale products, services, methods, and systems

including, without limitation, its search advertising systems. IAC is liable for its infringement of
the '664 patent in violation of 35 U.S.C. § 271.

119. On information and belief, IAC is further liable as an active inducer of infringement
of the '664 patent in violation of 35 U.S.C. § 271 by knowingly taking active steps to encourage

and facilitate direct infringement by others such as by third party publishers of the Ask
Sponsored Listings Network and/or by users of IAC s infringing systems.
120. On information and belief, IAC is a contributory infringer of the '664 patent in

violation of 35 U.S.C. § 271 by making, using, selling, and/or offering for sale within the United
States components that embody a material part of the inventions described in at least one claim
of the '664 patent, that are known by IAC to be specially made or specially adapted for use in
infringement of at least one of the claims of the '664 patent, and that are not staple articles or
commodities suitable for substantial, non-infringing use.

121. IAC has been put on notice of the '664 patent and its infringement thereof with at
least the filing of this Complaint.

122. IAC has actual and constructive knowledge of the '664 patent.

123. On information and belief, in the United States and in this District, Gannett, who is

24

a third party publisher of Google, has directly infringed, and continues to directly infringe, at

least one claim of the '664 patent by making, using, providing, selling and/or offering for sale
products, services, methods, and systems including, without limitation, Google's search
advertising system(s). Gannett is liable for its infringement of the '664 patent in violation of
35U.S.C. §271.

124. On information and belief, Gannett is further liable as an active inducer of

infringement of the '664 patent in violation of 35 U.S.C. § 271 by knowingly taking active steps
to encourage and facilitate direct infringement by others such as users of the infringing systems.

125. On information and belief, Gannett is a contributory infringer of the '664 patent in
violation of 35 U.S.C. § 271 by making, using, selling, and/or offering for sale within the United
States components that embody a material part of the inventions described in at least one claim
of the '664 patent, that are known by Gannett to be specially made or specially adapted for use in
infringement of at least one of the claims of the '664 patent, and that are not staple articles or
commodities suitable for substantial, non-infringing use.
126. Gannett has been put on notice of the '664 patent and its infringement thereof with
at least the filing of this Complaint.

127. Gannett has actual and constructive knowledge of the '664 patent.
128. On information and belief, in the United States and within this District, Target, who
is a third party publisher of Google, has directly infringed, and continues to directly infringe, at
least one claim of the '664 patent by making, using, providing, selling and/or offering for sale
products, services, methods, and systems including, without limitation, Google's search

advertising system(s). Target is liable for its infringement of the '664 patent in violation of
35 U.S.C. §271.

25

129. On information and belief, Target is further liable as an active inducer of

infringement of the '664 patent in violation of 35 U.S.C. § 271 by knowingly taking active steps
to encourage and facilitate direct infringement by others such as users of the infringing systems.

130. On information and belief, Target is a contributory infringer of the '664 patent in

violation of 35 U.S.C. § 271 by making, using, selling, and/or offering for sale within the United

States components that embody a material part of the inventions described in at least one claim
of the '664 patent, that are known by Target to be specially made or specially adapted for use in
infringement of at least one of the claims of the '664 patent, and that are not staple articles or
commodities suitable for substantial, non-infringing use.

131. Target has been put on notice of the '664 patent and its infringement thereof with at
least the filing of this Complaint.
132. Target has actual and constructive knowledge of the '664 patent.

133. I/P Engine has been damaged by Defendants' infringement, and will continue to be
damaged by Defendants' infringement, of the '664 patent, and thus is entitled to recover
damages from Defendants to compensate it for the infringement.

134. Pursuant to 35 U.S.C. § 284, I/P Engine is entitled to damages adequate to

compensate it for the infringement but in no event less than a reasonable royalty.

135. This case is "exceptional" within the meaning of 35 U.S.C. § 285, and I/P Engine is
entitled to an award of attorneys' fees.
DEMAND FOR JURY TRIAL

136. I/P Engine hereby demands trial by jury on all issues.
PRAYER FOR RELIEF

WHEREFORE, I/P Engine prays for the following relief:

26

1. Pursuant to 35 U.S.C. § 271, a Judgment that AOL, Google, IAC, Gannett and Target

infringe and have infringed at least one claim of the '420 patent and/or at least one claim of the
'664 patent;

2. Pursuant to 35 U.S.C. § 284, compensatory damages, past and future, amounting to no

less than reasonable royalties, prejudgment interest, and/or any other available damages based on
any form of recoverable economic injury sustained by I/P Engine as a result of AOL's, Google's,
IAC's, Gannett's and Target's infringement;

3. Pursuant to 35 U.S.C. § 285, an award of I/P Engine's costs and attorneys' fees
incurred in this action; and

4. For such other and further relief as this Court deems just and proper.

DATED this 15th day of September 2011

Respectft^ submits
By:

Jeffrey k/Sherwood (VA# 19222)
DICKSTEIN SHAPIRO LLP
1825 Eye Street, N.W.

Washington, D.C. 20006

Telephone: [phone]
Facsimile: [phone]
sherwoodj @dicksteinshapiro.com

Counsel for Plaintiff I/P Engine, Inc.
Frank C. Cimino
DeAnna Allen
Charles J. Monterio, Jr.
Jonathan L. Falkler
DICKSTEIN SHAPIRO LLP
1825 Eye Street, N.W.

Washington, D.C. 20006
Telephone: [phone]
Facsimile: [phone]

Of Counsel for Plaintiff I/P Engine, Inc.

27