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Koninklijke Philips N.V. et. al. v. Digital Works et. al.

Koninklijke Philips N.V. et. al. v. Digital Works et. al.

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Published by PriorSmart
Official Complaint for Patent Infringement in Civil Action No. 2:13-cv-01341-RCJ-NJK: Koninklijke Philips N.V. et. al. v. Digital Works, Inc. et. al. Filed in U.S. District Court for the District of Nevada, the Hon. Robert C. Jones presiding. See http://news.priorsmart.com/-l8PD for more info.
Official Complaint for Patent Infringement in Civil Action No. 2:13-cv-01341-RCJ-NJK: Koninklijke Philips N.V. et. al. v. Digital Works, Inc. et. al. Filed in U.S. District Court for the District of Nevada, the Hon. Robert C. Jones presiding. See http://news.priorsmart.com/-l8PD for more info.

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Published by: PriorSmart on Jul 29, 2013
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10/25/2013

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12345678910111213141516171819202122232425262728COMPLAINT, Page 1 of 17
LIONEL SAWYER& COLLINSATTORNEYS AT LAW
1700 BANK OF AMERICA PLAZA300 SOUTH FOURTH ST.
L
AS
V
EGAS
,N
EVADA
89101
(702)
 
383-8888
LIONEL SAWYER & COLLINSCharles H. McCrea, Jr. (SBN #104)
cmccrea@lionelsawyer.com
Gregory R. Gemignani (SBN #7346)
ggemignani@lionelsawyer.com
1700 Bank of America Plaza300 South Fourth StreetLas Vegas, Nevada 89101T: 702.383.8888F: 702.383.8845MAYER BROWN LLPEdward D. Johnson (will comply with LR IA 10-2 within 45 days)
wjohnson@mayerbrown.com
Michael A. Molano (will comply with LR IA 10-2 within 45 days)
mmolano@mayerbrown.com
Two Palo Alto Square, Suite 3003000 El Camino RealPalo Alto, California 94306T: 650.331.2000F: 650.331.2060MAYER BROWN LLPKristen A. Rowse (will comply with LR IA 10-2 within 45 days)
krowse@mayerbrown.com
350 South Grand Avenue, 25
th
Floor Los Angeles, California 90071T: 213.229.5137F: 213.825.0248Attorneys for KONINKLIJKE PHILIPS N.V. and U.S. PHILIPS CORPORATION
UNITED STATES DISTRICT COURTDISTRICT OF NEVADA
KONINKLIJKE PHILIPS N.V. and U.S.PHILIPS CORPORATION,Plaintiffs,vs.DIGITAL WORKS, INC., DIGITALWORKS, SLC, DIGITAL DEPOT, INC.,MEDIA FAST LLC, ULTRAENTERTAINMENT, HIGH SPEED VIDEO,SAVVI MARKETING LLC MY DISCCase No.
COMPLAINT FOR PATENTINFRINGEMENT AND BREACH OFCONTRACTDEMAND FOR JURY TRIAL
 
 
12345678910111213141516171819202122232425262728COMPLAINT, Page 2 of 17
LIONEL SAWYER& COLLINSATTORNEYS AT LAW
1700 BANK OF AMERICA PLAZA300 SOUTH FOURTH ST.
L
AS
V
EGAS
,N
EVADA
89101
(702)
 
383-8888
FACTORY, XOCIALIZE, DISC COMPANY,PERSONAL-FX, PROACTION MEDIA,ALLEGRO MEDIA GROUP, VISUALENTERTAINMENT INC., CHRISTIANRATH, TROY NIELSON, WILLIAM DIAZ,MARC CARAMADRE, THOMASINGOGLIA, DUSTIN NIELSON, JEFFJOHNSON, and DOES 1 THROUGH 10,Defendants.Plaintiffs Koninklijke Philips N.V., f/k/a Koninklijke Philips Electronics N.V., and U.S.Philips Corporation (collectively “Philips”) allege upon knowledge as to themselves and their own actions, and upon information and belief as to all other matters, against Defendants DigitalWorks SLC, Digital Works, Inc. (collectively with Digital Works SLC, “Digital Works”), DigitalDepot, Inc. (“Digital Depot”), Media Fast LLC (“Media Fast”), Ultra Entertainment (Ultra”),High Speed Video, Inc. (High Speed Video), Savvi Marketing LLC (“Savvi Marketing”), MyDisc Factory, Disc Company, Personal-FX, ProAction Media (“ProAction”), and Xocialize(Digital Works, Digital Depot, Media Fast, Ultra, High Speed Video, Savvi Marketing, My DiscFactory, Disc Company, Personal-FX, ProAction, and Xocialize collectively “the Digital WorksEnterprises”), Allegro Media Group (“Allegro”), Visual Entertainment Inc. (“VEI,” and collectively with Allegro, “the Digital Works Customers”); Christian Rath, Troy Nielson,William Diaz, Marc Caramadre, Thomas Ingoglia, Dustin Nielson, and Jeff Johnson(collectively, “the Individual Defendants”) as follows:
JURISDICTION AND VENUE
1.
 
This is an action for patent infringement arising under the United States PatentAct (Title 35 of the United States Code). This Court has subject matter jurisdiction of this actionunder 28 U.S.C. §§ 1331 and 1338(a).
 
12345678910111213141516171819202122232425262728COMPLAINT, Page 3 of 17
LIONEL SAWYER& COLLINSATTORNEYS AT LAW
1700 BANK OF AMERICA PLAZA300 SOUTH FOURTH ST.
L
AS
V
EGAS
,N
EVADA
89101
(702)
 
383-8888
2.
 
This Court has supplemental jurisdiction over Philips’ state law claims under 28U.S.C. § 1367(a) because these claims are so related to Philips’ patent infringement claims thatthey form part of the same case or controversy as they arise from the same nucleus of operativefact and amount to a single judicial proceeding.3.
 
Venue for Philips’ claims is proper in this District under 28 U.S.C. §§ 1391(b)and (c) and 1400(b) because, among other things, one or more of the acts of infringementcomplained of took place in this District and because each Defendant resides in this District, purposefully engaged in acts of infringement in this District, and/or has substantial, continuous,and systematic contacts with this District and with the State of Nevada.
NATURE OF THE ACTION
4.
 
Philips administers a worldwide program that licenses manufacturers to usePhilips’ patented technology in the production of CD and DVD discs. Digital Works is amanufacturer of DVD discs that signed license agreements with Philips. The license agreementsrequired Digital Works to report and pay royalties to Philips on each DVD disc that DigitalWorks makes and sells. The license agreements also required Digital Works to keep accurate books and records reflecting its sales.5.
 
In violation of the license agreements, Digital Works neither reported nor paid royalties to Philips. Philips therefore terminated Digital Works’ license agreements.6.
 
Digital Works’ infringement did not end with the termination of their license,however. The Digital Works Enterprises, aided and abetted by and acting at the direction of theIndividual Defendants, continued to make DVD discs without a license from, and without payingroyalties to, Philips. Further, Digital Works Enterprise members offer to sell and sell theseinfringing DVD discs, both to other Digital Works Enterprise members, and to the Digital Works

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