Case3:15-cv Document1 Filed03/12/15 Page1 of 7

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1 Case:-cv-0 Document Filed0// Page of DUANE MORRIS LLP Karineh Khachatourian (CA SBN ) kkhachatourian@duanemorris.com Patrick S. Salceda (CA SBN ) psalceda@duanemorris.com David T. Xue, Ph.D. (CA SBN ) dtxue@duanemorris.com Hanover Street Palo Alto, CA 0- Telephone: 0..0 Facsimile: 0.. Attorneys for Plaintiff ANKI, INC. IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA ANKI, INC. Case No. :-cv-0 v. Plaintiff, COMPLAINT FOR PATENT INFRINGEMENT CHINA INDUSTRIES LTD T/A WOW! STUFF, Defendant. JURY TRIAL DEMANDED Plaintiff Anki, Inc. ( Plaintiff ), by its attorneys, files this Complaint against China Industries Ltd T/A Wow! Stuff ( Defendant ), and alleges as follows: THE PARTIES. Plaintiff is a Delaware corporation with its principal place of business located at nd Street, th Floor, San Francisco, CA.. On information and belief, Defendant is a British corporation with its principal place of business located at Creative Industries Centre, Wolverhampton Science Park, Wolverhampton, WV TG, United Kingdom. JURISDICTION AND VENUE. This is a civil action for patent infringement arising under the Patent Laws of the United States U.S.C. 0 et seq., including and. -- COMPLAINT FOR PATENT INFRINGEMENT, CASE NO. :-CV-0

2 Case:-cv-0 Document Filed0// Page of. The Court has subject matter jurisdiction over this action pursuant to U.S.C. and (a).. This Court has personal jurisdiction over Defendant because Defendant has sufficient contacts with this District. On information and belief, Defendant imports, ships, distributes, sells, offers for sale, markets, and/or advertises products (including products accused of infringement in this lawsuit) throughout the United States, including in this District, via interactive websites and other retail sales channels accessible in this District, and introduces products (including products accused of infringement in this lawsuit) into the stream of commerce knowing that they were and will be sold in this District. On information and belief, Defendant imported, shipped, distributed, sold, offered for sale, marketed, and/or advertised the products accused of infringement in this district via the crowd-funding website kickstarter.com. On information and belief, Defendant initiated a funding project on kickstarter.com where, in exchange for pledges of funding from multiple individuals, Defendant agreed to (and ultimately did) ship the accused product throughout the country and to individuals within this District and others throughout California. On further information and belief, Defendant also distributes the accused product, on an exclusive basis, via the online retailer Hammacher Schlemmer & Company, Inc. knowing that they would be (and ultimately were) sold in this District.. Venue is proper in this district pursuant to U.S.C. (b)-(c) and 00(b) because Defendant is a corporation subject to personal jurisdiction in this District and because Defendant has committed acts of infringement in this District. INTRADISTRICT ASSIGNMENT. Pursuant to Civil L.R. -(c), this is an Intellectual Property Action which should be assigned to a division on a district-wide basis. FACTUAL BACKGROUND. Plaintiff is a company that designs, manufactures, and sells robotics products having artificial intelligence capacities, such as intelligent racing car sets, to consumers and provides services associated with these products and their use. Plaintiff is a leader in products and services related to artificial intelligence products. -- COMPLAINT FOR PATENT INFRINGEMENT, CASE NO. :-CV-0

3 Case:-cv-0 Document Filed0// Page of. On September 0, U.S. Patent No.,, ( the Patent ), titled Distributed system of autonomously controlled mobile agents, was duly and legally issued by the United States Patent & Trademark Office to Plaintiff. A true and correct copy of the Patent is attached hereto as Exhibit A.. Plaintiff is the owner of the Patent, including the right to bring this suit for injunctive relief and damages.. Upon learning that Defendant was selling, offering for sale, and/or importing into the United States remote controlled racing car sets that practice one or more claims of the Patent, Plaintiff sent a cease and desist letter through its attorneys to Defendant on November,, requesting that Defendant immediately and permanently cease and desist its sale, offering for sale, and exportation of the infringing products to the United States, and to remove any infringing products from the marketplace. Plaintiff provided Defendant with a copy of the Patent with the letter.. On December,, Defendant responded to Plaintiff s letter of November,. Defendant ignored Plaintiff s request to cease and desist its infringement activities and instead asked for detailed claim charts that set forth with specificity how claims of the Patent are infringed by Defendant s race set products.. On January,, Plaintiff sent Defendant a detailed infringement chart for the Patent which identified claim of the Patent as a non-limiting example to illustrate the infringement of every element of the claim by Defendant based on publicly available information of its infringing product. In the letter, Plaintiff reiterated its demand that Defendant cease and desist its sale, offering for sale, and importation of the infringing products into the United States, and offered Defendant a two-month grace period to remove any infringing products from the marketplace.. Upon receiving Plaintiff s detailed claim chart of January,, Defendant still refused to provide a substantive response in its letter of January,. Defendant again ignored Plaintiff s request to cease and desist its infringement activities and refused to remove its infringing products from the marketplace.. On information and belief, Defendant continues to sell, offer for sale, and/or import -- COMPLAINT FOR PATENT INFRINGEMENT, CASE NO. :-CV-0

4 Case:-cv-0 Document Filed0// Page of into the United States remote controlled racing car sets that practice one or more claims of the Patent, even after receiving Plaintiff s November, and January, cease and desist letters and the infringement claim chart. COUNT ONE Claim for Direct Infringement of the Patent. Plaintiff realleges and incorporates by reference the allegations set forth in preceding paragraphs of this Complaint.. Plaintiff owns all rights, title, and interest in and to the Patent, and possesses all right of recovery under the Patent.. On information and belief, Defendant has directly infringed and continues to directly infringe, either literally or under the doctrine of equivalents, claims of the Patent by, among other things, making, using, exporting, providing, offering to sell, and selling infringing products in the United States, including, without limitation its remote controlled racing set, such as Real FX Artificial Intelligence Racing System and its predecessor versions.. On information and belief, since at least November, when Plaintiff warned Defendant of the Patent in writing, Defendant has been willfully infringing one or more claims of the Patent by, among other things, continuing to make, use, import, provide, offer to sell, and sell infringing products in the United States.. Unless enjoined, Defendant will continue to directly infringe the Patent by, among other things, continuing to make, use, import, provide, offer to sell, and sell in the United States products covered by one or more claims of the Patent.. Plaintiff has been damaged by Defendant s direct infringement of the Patent in an amount to be determined at trial.. The direct infringement of the Patent by Defendant has caused and is causing Plaintiff to suffer irreparable harm and injury.. The direct infringement by Defendant of the Patent is in violation of Plaintiff s rights under U.S.C. to exclude others from making, using, selling, and/or offering for sale products and services embodying the invention of the Patent. -- COMPLAINT FOR PATENT INFRINGEMENT, CASE NO. :-CV-0

5 Case:-cv-0 Document Filed0// Page of. Plaintiff has no adequate remedy at law.. Plaintiff will continue to suffer irreparable harm unless an injunction is issued enjoining and restraining Defendant from directly infringing the Patent. COUNT TWO Claim for Indirect Infringement of the Patent. Plaintiff realleges and incorporates by reference the allegations set forth in the preceding paragraphs of this Complaint.. On information and belief, Defendant has indirectly infringed and continues to indirectly infringe, either literally or under the doctrine of equivalents, one or more claims of the Patent by, among other things, actively inducing others to infringe the Patent.. On information and belief, Defendant has been inducing infringement of one or more claims of the Patent by, among other things, encouraging others to sell or resell infringing products, advertising the availability of infringing products for purchase, advertising infringing uses and instructing others how to engage in infringing uses of the infringing products (e.g., via websites, manuals, blogs, and other media), demonstrating and recommending infringing configurations and uses, and providing instructions and answering questions on infringing uses in the United States.. On information and belief, Defendant has been aware of the Patent since, at the latest, when Plaintiff warned Defendant of the Patent in writing on November,. Despite its awareness of the Patent, Defendant has been continuing to actively, knowingly, and willfully induce others to directly infringe the Patent by engaging in inducing the activities listed above. 0. Unless enjoined, Defendant will continue to indirectly infringe the Patent by encouraging and aiding and abetting others direct infringement in the United States of the Patent.. Plaintiff has been damaged by Defendant s indirect infringement of the Patent in an amount to be determined at trial.. The indirect infringement of the Patent by Defendant has caused and is causing Plaintiff to suffer irreparable harm and injury. -- COMPLAINT FOR PATENT INFRINGEMENT, CASE NO. :-CV-0

6 Case:-cv-0 Document Filed0// Page of. Plaintiff has no adequate remedy at law.. Plaintiff will continue to suffer irreparable harm unless an injunction is issued enjoining and restraining Defendant from indirectly infringing the Patent. PRAYER FOR RELIEF WHEREFORE, Plaintiff respectfully asks the Court for the following relief:. A judgment that Defendant has directly infringed (either literally or under the doctrine of equivalents) or induced the infringement of one or more claims of the Patent as alleged herein;. An injunction pursuant to U.S.C. preliminarily and permanently enjoining Defendant, its officers, agents, servants, employees, and all persons acting in active concert or participation with all or any of them, from directly or indirectly importing, marketing, offering to sell, or selling the products and services into the United States, that infringe the Patent;. An award of damages resulting from Defendant s acts of infringement in accordance with U.S.C. ;. A judgment that Defendant has willfully infringed one or more claims of the Patent;. Enhanced damages for Defendant s willful infringement;. Declaring that judgment be entered in favor of Plaintiff and against Defendant on each of Plaintiff s claims;. Finding that this is an exceptional case and that Plaintiff be awarded its attorneys fees incurred in this action pursuant to U.S.C. ; and. Such further and additional relief as the Court deems just and proper. -- COMPLAINT FOR PATENT INFRINGEMENT, CASE NO. :-CV-0

7 Case:-cv-0 Document Filed0// Page of JURY DEMAND Plaintiff hereby demands a trial by jury on all issues properly triable before a jury. DUANE MORRIS LLP Dated: March, DM\. By: /s/ Karineh Khachatourian Karineh Khachatourian Patrick S. Salceda David T. Xue Attorneys for Plaintiff ANKI, INC. -- COMPLAINT FOR PATENT INFRINGEMENT, CASE NO. :-CV-0

8 JS (Rev. /) cand rev (//) CIVIL COVER SHEET The JS civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.) I. (a) PLAINTIFFS ANKI, INC. (b) County of Residence of First Listed Plaintiff (EXCEPT IN U.S. PLAINTIFF CASES) (c) Attorneys (Firm Name, Address, and Telephone Number) Karineh Khachatourian (SBN ) DUANE MORRIS LLP Hanover St, Palo Alto, CA 0- (0) -0 San Francisco II. BASIS OF JURISDICTION (Place an "X" in One Box Only) U.S. Government Plaintiff U.S. Government Defendant Federal Question (U.S. Government Not a Party) Diversity (Indicate Citizenship of Parties in Item III) DEFENDANTS CHINA INDUSTRIES LTD T/A WOW! STUFF County of Residence of First Listed Defendant Wolverhampton, UK (IN U.S. PLAINTIFF CASES ONLY) NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT OF LAND INVOLVED. Attorneys (If Known) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an X" in One Box for Plaintiff (For Diversity Cases Only) PTF DEF Citizen of This State Citizen of Another State Citizen or Subject of a Foreign Country and One Box for Defendant) PTF DEF Incorporated or Principal Place of Business In This State Incorporated and Principal Place of Business In Another State Foreign Nation IV. NATURE OF SUIT (Place an "X" in One Box Only) CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES 0 Insurance 0 Marine 0 Miller Act 0 Negotiable Instrument 0 Recovery of Overpayment & Enforcement of Judgment Medicare Act Recovery of Defaulted Student Loans (Excludes Veterans) Recovery of Overpayment of Veteran's Benefits 0 Stockholders' Suits 0 Other Contract Contract Product Liability Franchise PERSONAL INJURY Airplane Airplane Product Liability Assault, Libel & Slander 0 Federal Employers' Liability 0 Marine Marine Product Liability 0 Motor Vehicle Motor Vehicle Product Liability 0 Other Personal Injury Personal Injury - Medical Malpractice PERSONAL INJURY Personal Injury - Product Liability Health Care/ Pharmaceutical Personal Injury Product Liability Asbestos Personal Injury Product Liability PERSONAL PROPERTY 0 Other Fraud Truth in Lending 0 Other Personal Property Damage Property Damage Product Liability Drug Related Seizure of Property USC 0 Other LABOR Fair Labor Standards Act Labor/Management Relations 0 Railway Labor Act Family and Medical Leave Act 0 Other Labor Litigation Appeal USC Withdrawal USC PROPERTY RIGHTS Copyrights 0 Patent 0 Trademark SOCIAL SECURITY HIA (ff) Black Lung () DIWC/DIWW (0(g)) SSID Title XVI RSI (0(g)) REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS Employee Retirement FEDERAL TAX SUITS Income Security Act 0 Land Condemnation Habeas Corpus: 0 Other Civil Rights 0 Taxes (U.S. Plaintiff Foreclosure Voting Alien Detainee or Defendant) 0 Rent Lease & Ejectment Employment Motions to Vacate IRS Third Party Sentence 0 Torts to Land Housing/ IMMIGRATION USC 0 Tort Product Liability Accommodations 0 General Naturalization Application 0 All Other Real Property Amer. w/disabilities - Death Penalty Employment Other: Other Immigration Actions Amer. w/disabilities - 0 Mandamus & Other Other Education 0 Civil Rights V. ORIGIN (Place an "X" in One Box Only) Original Proceeding VI. CAUSE OF ACTION Removed from State Court Prison Condition 0 Civil Detainee - Conditions of Confinement Transferred from Another District (specify) Remanded from Reinstated or Appellate Court Reopened Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity): U.S.C. Section Brief description of cause: Infringment of U.S. Patent No.,, Multidistrict Litigation VII. REQUESTED IN CHECK IF THIS IS A CLASS ACTION DEMAND $ COMPLAINT: UNDER RULE, F.R.Cv.P. Amount to be provided VIII. RELATED CASE(S) IF ANY (See instructions): JUDGE DOCKET NUMBER DATE March, SIGNATURE OF ATTORNEY OF RECORD /s/ Karineh Khachatourian IX. DIVISIONAL ASSIGNMENT (Civil L.R. -) Case:-cv-0 Document- Filed0// Page of (Place an X in One Box Only) ( ) SAN FRANCISCO/OAKLAND ( ) SAN JOSE ( ) EUREKA False Claims Act 00 State Reapportionment Antitrust 0 Banks and Banking 0 Commerce 0 Deportation 0 Racketeer Influenced and Corrupt Organizations 0 Consumer Credit 0 Cable/Sat TV 0 Securities/Commodities/ Exchange 0 Other Statutory Actions Agricultural Acts Environmental Matters Freedom of Information Act Arbitration Administrative Procedure Act/Review or Appeal of Agency Decision 0 Constitutionality of State Statutes CHECK YES only if demanded in complaint: JURY DEMAND: Yes No

9 JS Reverse (Rev. /) Case:-cv-0 Document- Filed0// Page of INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS Authority For Civil Cover Sheet The JS civil cover sheet and the information contained herein neither replaces nor supplements the filings and service of pleading or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of Court for each civil complaint filed. The attorney filing a case should complete the form as follows: I.(a) (b) (c) II. III. IV. Plaintiffs-Defendants. Enter names (last, first, middle initial) of plaintiff and defendant. If the plaintiff or defendant is a government agency, use only the full name or standard abbreviations. 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