Case: 1:16-cv-10629 Document #: 1 Filed: 11/15/16 Page 1 of 8 PageID #:1 Gaelco S.A., a Spanish Corporation, and IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION Gaelco Darts S.L., a Spanish Corporation Plaintiff, JURY TRIAL DEMANDED v. No. Arachnid 360, LLC, an Illinois Limited Liability Corporation, Defendant. COMPLAINT FOR PATENT INFRINGEMENT Gaelco S.A. and Gaelco Darts S.L. (collectively Gaelco ), both Spanish Corporations, by and through its attorneys, against Defendant Arachnid 360. LLC, an Illinois Limited Liability Corporation, ( Defendant ), states as its Complaint and alleges as follows: PARTIES, JURISDICTION AND VENUE Parties 1. Gaelco S.A. is a Spanish Corporation organized and existing under the laws of the Spain. Gaelco S.A. has a principal place of business at 3C. Escipion, 9-11, E-08023 Barcelona, Spain. Gaelco Dart S.L is a Spanish Corporation organized and existing under the laws of Spain. Gaelco Darts S.L. has a principal place of business at Calle Escipio, 9-11, Barcelona, Barcelona, 08023 Spain. Gaelco provides cutting-edge gaming systems that allow users to play each other anywhere in the world. Gaelco s gaming systems include online dart games that allow referees to review video of game play and make determines on player s behavior. Gaelco operates the website http://eng.radikaldarts.com/about-radikal-darts.
Case: 1:16-cv-10629 Document #: 1 Filed: 11/15/16 Page 2 of 8 PageID #:2 2. Upon information and belief, Defendant Arachnid 360 is a limited liability corporation organized and existing under the laws of the State of Illinois, with a place of business at 6212 Material Avenue, Loves Park, IL 61111. 3. Defendant conducts business in the United States and reside in this jurisdiction.. Jurisdiction 4. This is a claim for patent infringement and arises under the patent laws of the United States, Title 35 of the United States Code. This Court has jurisdiction over the subject matter of this claim under 28 U.S.C. 1331 and 1338(a). Venue 5. Venue in this judicial district is proper under 28 U.S.C. 1391(b) and (c) and/or 1400(b) because Defendant regularly conducts business in this judicial district and have regular and established places of business in this judicial district, and/or because certain of the acts complained of herein occurred in this judicial district. Upon information and belief, Defendant is subject to personal jurisdiction in this Court because Defendant is currently doing and have done substantial business in this judicial district, including committing acts of patent infringement in this judicial district and elsewhere in the United States, and regularly sell or solicit sales of their products within this district, such that a substantial part of the events giving rise to the claims occurred in this district. Defendant is therefore subject to the venue of this Court. GAELCO S RIGHTS 6. Gaelco S.A. is the assignee of U.S. Patent No. 7,361,083 (the 083 Patent or the Patent-in-Suit ) and owns the entire right, title and interest in and to the 083 Patent. Gaelco Darts S.L. is the exclusive licensee of the technology disclosed in the 083 patent. 7. The 083 Patent is titled Multimedia system and method for remote monitoring or refereeing in dart machines and was issued by the United States Patent and Trademark Office 2
Case: 1:16-cv-10629 Document #: 1 Filed: 11/15/16 Page 3 of 8 PageID #:3 (the USPTO ) on April 22, 2008. The application which issued as the 083 Patent was filed on July 1, 2003 as U.S. Application No. 10/609,394. A true and correct copy of the 083 Patent is attached hereto as Exhibit A and is incorporated by reference herein. 8. The 083 Patent is valid and enforceable at least until 20 years from the date of filing, or around July 1, 2025 with patent term extensions included. 9. Gaelco offers multiple products directly to clients and markets its products through its website at http://eng.radikaldarts.com/about-radikal-darts and via other publications. Gaelco offers products to clients that are also covered by or relate in whole or in part to the Patent-in-Suit. The 083 Patent contains claims directed to a remote monitoring or referee system for one or more dart machines where at least one refereeing center receives multimedia and captured content of play information to determine whether at least one of the players complies with at least one condition of play. 10. In particular, Gaelco has created and currently sells dart machines under the name Radikal Darts that connect multiple dart boards together to allow players to compete in games over the Internet. Gaelco s Radikal Darts dart machine includes the claimed refereeing system and is covered by the 083 Patent. Gaelco s refereeing system allows a referee to review video from a dart match to determine if a player has violated a rule of the game. This review can occur while the game is being played or after the game has completed. 11. Gaelco s Radikal Darts marketing materials are marked with an indication that it is covered by the Patent-in-Suit. 3
Case: 1:16-cv-10629 Document #: 1 Filed: 11/15/16 Page 4 of 8 PageID #:4 COUNT I Direct Patent Infringement of U.S. Patent No. 7,361,083 Pursuant to 271(a) of the Patent Act (35 U.S.C. 271(a)) 12. Gaelco adopts, restates and realleges each and every allegation previously set forth in this Complaint as if fully set forth in Paragraphs 1-13. 13. Section 271(a) of the Patent Act (35 U.S.C. 271(a)) provides, in relevant part: (a) Except as otherwise provided in this title, whoever without authority makes, uses, offers to sell, or sells any patented invention, within the United States or imports into the United States any patented invention during the term of the patent therefor, infringes the patent. 14. Upon information and belief, Defendant, without permission or license from Gaelco, has unlawfully and wrongfully created a remote monitoring or referee system for one or more dart machines. These dart machines are sold and marketed under the name Arachnid Galaxy 3. 15. Upon information and belief, the Arachnid Galaxy 3 is a product that infringes claims 1, 7, 9, 10, 11, 13, 14 and 19 of the Patent-in-Suit and includes each of the elements listed in claims 1, 7, 9, 10, 11, 13, 14 and 19 of the 083 Patent as shown in claim chart attached as Exhibit B. The Arachnid Galaxy 3 is sold or offered for sale by Defendant in the United States and within this district either directly to customers or to distributors. In addition, upon information and belief, Arachnid manufactures the Arachnid Galaxy 3 dart machines in the United States that are sold outside of the United States in violation of 35 U.S.C. 271(a). 16. Defendant is a direct competitors of Gaelco as they offer competitive dart products in the gaming industry. 17. As a direct and proximate result of the aforesaid infringement, Gaelco has been and will be greatly damaged, and has been and will be deprived of and prevented from receiving, if such further infringement is not restrained and enjoined by this Court, all the gains and profits 4
Case: 1:16-cv-10629 Document #: 1 Filed: 11/15/16 Page 5 of 8 PageID #:5 to which Gaelco is lawfully entitled and that it would have derived and received, but for the aforesaid infringement by Defendant. 18. Upon information and belief, Defendant has actual and constructive notice of Gaelco s rights respecting the patented technology. 19. Upon information and belief, Defendant s infringement is willful and the decision to infringe the Patent-in-Suit is in egregious disregard of the law. COUNT II Induced Patent Infringement of U.S. Patent No. 7,361,083 Pursuant to 271(b) of the Patent Act (35 U.S.C. 271(b)) 20. Gaelco adopts, restates and realleges each and every allegation previously set forth in this Complaint as if fully set forth in Paragraphs 1-13. 21. Section 271(b) of the Patent Act (35 U.S.C. 271(b)) provides, in relevant part: (b) Whoever actively induces infringement of a patent shall be liable as an infringer. 22. Upon information and belief, Defendant s Galaxy 3 dart machines are configured such that owner/operators who utilize the Galaxy 3 perform methods that infringe the Patent-in- Suit when using the Galaxy 3 as directed by Defendant. Defendant sells the infringing Galaxy 3 to third parties (including potential clients of Gaelco), knowing that such third parties will perform methods in violation of Gaelco exclusive rights under the Patent-in-Suit. Defendant s actions have caused great loss, as well as immediate and irreparable injury, to Gaelco via indirect, induced infringement by providing an instrument to a third party to enable such third party to perform methods that infringe the Patent-in-Suit. 23. Defendant has sold or offered to sell, continue to sell or offer to sell, into the United States, products that are configured to perform methods that infringe the Patent-in-Suit for Defendant s own benefit, including regular sales and/or offers to sell of software products 5
Case: 1:16-cv-10629 Document #: 1 Filed: 11/15/16 Page 6 of 8 PageID #:6 using the infringing methods within this judicial district, in direct violation of Gaelco s exclusive rights under the Patent-in-Suit. 24. Upon information and belief, the Galaxy 3 dart machines enable Defendant s clients to perform methods that infringe at least claims 10-14 of the Patent-in-Suit, resulting in induced or vicarious infringement of at least claim 10-14 of the Patent-in-Suit. 25. Upon information and belief, Defendant s entire business model is built on the sale of its Galaxy 3 dart machines, and Defendant s profits exclusively or at least in part from the aforesaid infringement of the Patent-in-Suit. In at least the field of providing online dart machines, Gaelco and Defendant are direct or indirect competitors offering alternative software products to the same clients, and therefore sales by Defendant directly damage the actual or potential sales of Gaelco. 26. As a direct and proximate result of the aforesaid infringement, Gaelco has been and will be greatly damaged, and has been and will be deprived of and prevented from receiving, if such further infringement is not restrained and enjoined by this Court, all the gains and profits to which Gaelco is lawfully entitled and that it would have derived and received but for the aforesaid infringement by Defendant. 27. Upon information and belief, Defendant has actual and constructive notice of Microsystems rights respecting the patented technology 28. Upon information and belief, Defendant knew or should have known that the importation, distribution, and/or sale of Defendant s Galaxy 3 would induce actual (i.e., direct) infringement of the Patent-in-Suit. 29. Upon information and belief, Defendant infringement is willful and the decision to infringe the Patent-in-Suit is in egregious disregard of the law. 6
Case: 1:16-cv-10629 Document #: 1 Filed: 11/15/16 Page 7 of 8 PageID #:7 PRAYER FOR RELIEF WHEREFORE, Gaelco prays that this Court: (a) adjudge and decree that Defendant has directly infringed the Patent-in-Suit in violation of 35 U.S.C. 271(a); (b) adjudge and decree that Defendant s Galaxy 3 dart machine infringes the Patent-in-Suit and performs or is used to perform infringing methods covered in the Patent-in- Suit; (c) adjudge and decree that Defendant has induced infringement of the Patentin-Suit in violation of 35 U.S.C. 271 (b) (d) preliminarily and permanently enjoin, by reason of said acts of infringement and pursuant to 35 U.S.C. 283, Defendant, their representatives, officers, directors, agents, servants, employees and attorneys, and any and all persons in active concert with them, from directly or indirectly making or causing to be made, offering for sale, selling or causing to be sold, or using or causing to be used any product in accordance with or embodying any invention(s) or methods set forth and claimed in the Patent-in-Suit, including but not limited to the Galaxy 3 dart machine and any infringing work product generated therewith; (e) order Defendant to account for all gains, profits and advantages realized from their manufacturing and marketing the Galaxy 3 dart machines resulting in infringement of the Patent-in-Suit and Defendant s unlawful use and practice of the invention(s) patented in and by the Patent-in-Suit, and other products or necessary accessories sold in connection therewith, and other products that infringe the Patent-in-Suit and accessories sold therewith, up to and including the time of trial; (f) order Defendant to pay to Gaelco such damages as have been sustained by Gaelco as a result of said infringement(s) by Defendant; 284; (g) order a trebling of all damages awarded to Gaelco pursuant to 35 U.S.C. (h) order that Gaelco recover prejudgment interest from Defendant pursuant to 35 U.S.C. 284 on damages awarded to Microsystems; (i) 35 U.S.C. 285; order Defendant to pay to Gaelco its reasonable attorneys fees pursuant to (j) order that Gaelco recover all other costs and disbursements that may be incurred by Gaelco in this action; 7
Case: 1:16-cv-10629 Document #: 1 Filed: 11/15/16 Page 8 of 8 PageID #:8 (k) order Defendant, their representatives, officers, directors, agents, servants, employees and attorneys, and any and all persons in active concert with them, to fully compensate Gaelco for the preparation and distribution of corrective advertising; and (l) award Gaelco such other and further relief as this Court deems just and proper under the circumstances, including available remedies under the UDTPA. JURY TRIAL DEMAND Gaelco hereby demands a trial by jury on all triable issues. Respectfully submitted, Gaelco S.A. & Gaelco Darts S.L. Robert S. Rigg Timothy M Nitsch VEDDER PRICE P.C. 222 N. LaSalle St., Suite 2600 Chicago, Illinois 60601 Telephone: (312) 609-7500 Fax: (312) 609-5005 rrigg@vedderprice.com tnitsch@vedderprice.com By: s/timothy M Nitsch One of Its Attorneys Attorneys for Plaintiffs Gaelco S.A. and Gaelco Darts S.L. 8