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1 QUINN EMANUEL URQUHART & SULLIVAN, LLP CLAUDE M. STERN (Bar No. 96737) 2 claudestern@quinnemanuel.

com 555 Twin Dolphin Drive, 5th Floor 3 Redwood Shores, California 94065-2139 Telephone: (650) 801-5000 4 Facsimile: (650) 801-5100 5 JOSEPH M. PAUNOVICH (Bar No. 228222) joepaunovich@quinnemanuel.com 6 RICHARD H. DOSS (Bar No. 204078) richarddoss@quinnemanuel.com 7 865 S. Figueroa St., 10th Floor Los Angeles, California, 90017 8 Telephone: (213) 443-3000 Facsimile: (213) 443-3100 9 Attorneys for Plaintiff 10 Peel Technologies, Inc. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Case No. 8:14-cv-00439 COMPLAINT FOR PATENT INFRINGEMENT

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA SOUTHERN DIVISION

PEEL TECHNOLOGIES, INC., Plaintiff , vs. UNIVERSAL ELECTRONICS INC., Defendant.

CASE NO. 8:14-cv-00439 COMPLAINT FOR PATENT INFRINGEMENT DEMAND FOR JURY TRIAL

Plaintiff Peel Technologies, Inc. ("Peel") complains and alleges as follows

2 against Universal Electronics Inc. ("UEI"): 3 4


1.

NATURE OF CASE This is an action for patent infringement that arises under the patent

5 laws of the United States, Title 35 of the United States Code. 6


2.

UEI has infringed and continues to infringe, contribute to the

7 infringement of, and/or actively induce others to infringe U.S. Patent No. 6,879,351 8 ("the '351 Patent"). 9 10
3.

PARTIES Plaintiff Peel is a corporation organized and existing under the laws

11 of the State of Delaware, having a principal place of business at 321 Castro St., Ste 12 201, Mountain View, California 94041. 13
4.

Defendant UEI is a corporation organized and existing under the laws

14 of the State of Delaware, having a principal place of business at 201 E. Sandpointe 15 Avenue, Santa Ana, California 92707. 16 17
5.

JURISDICTION AND VENUE This lawsuit is an action for patent infringement arising under the

18 patent laws of the United States, 35 U.S.C. 1 et seq. This Court has jurisdiction 19 over this action pursuant to 28 U.S.C. 1331 and 1338. 20
6.

This Court has personal jurisdiction over UEI for at least the

21 following reasons: (i) UEI maintains its principal place of business in this District; 22 (ii) UEI has designated an agent for service of process in the State of California; (iii) 23 UEI has committed acts of patent infringement and/or contributed to or induced acts 24 of patent infringement by others in this District and elsewhere in California and the 25 United States; (iv) UEI regularly does business or solicits business, engages in other 26 persistent courses of conduct, and/or derives substantial revenue from products 27 and/or services provided to individuals in this District and in this State; and (v) UEI 28 has initiated litigation in this judicial District. -1Case No. 8:14-cv-00439 COMPLAINT FOR PATENT INFRINGEMENT

7.

Venue is proper in this judicial District pursuant to 28 U.S.C.

2 1391(b)-(d) and 1400(b) because UEI does business in the State of California, 3 has committed acts of infringement in this State and in this District, has a regular 4 and established place of business in this District, and is subject to personal 5 jurisdiction in this District. 6 7 8
8.

COUNT I INFRINGEMENT OF THE '351 PATENT Peel realleges and incorporates by reference the allegations of

9 Paragraphs 1-7 of this Complaint as though fully set forth herein. 10


9.

Peel is the owner of all rights, title, and interest, including the right to

11 sue for past infringement, in and to the '351 Patent, entitled "Method and apparatus 12 for remote control," which was duly and properly issued by the USPTO on April 12, 13 2005. Peel therefore has standing to sue for infringement of the '351 Patent. 14 Attached hereto as Exhibit A is a true and correct copy of the '351 Patent. 15
10.

Upon information and belief, in violation of 35 U.S.C. 271, UEI is

16 and has been directly infringing, literally and/or under the doctrine of equivalents, 17 contributing to the infringement of, and/or inducing others to infringe the '351 18 Patent by making, having made, using, selling, and/or offering to sell in the United 19 States, or importing into the United States, products or processes that practice the 20 inventions claimed in the '351 Patent, including without limitation, the UEI Atlas 21 URC 1056, UEI Titan URC 1056, UEI Comcast DVR Silver URC 1056, UEI 22 Comcast DVR Platinum URC 1167, UEI Comcast XMP 1067, UEI 1060 Charter 23 C4000, UEI Pioneer Generic OCAP URC C4000 and S4000, UEI Cox DVR Silver 24 URC 7820, UEI Nova, UEI Essence, UEI Contour, UEI Polaris, and UEI URC 1090 25 Remote Controls (collectively, the "Accused UEI Instrumentalities"). 26
11.

Upon information and belief, UEI has had actual knowledge of the

27 '351 Patent and its inducement and contributory infringement at least since the filing 28 of this lawsuit if not earlier. With full knowledge of its inducement and -2Case No. 8:14-cv-00439 COMPLAINT FOR PATENT INFRINGEMENT

1 contributory infringement, UEI has continued to induce and contribute to the 2 infringement of the '351 Patent. 3
12.

Upon information and belief, UEI has sold products infringing the

4 '351 Patent, and has actively and knowingly aided others, including purchasers of at 5 least the Accused UEI Instrumentalities, to infringe the '351 Patent. Upon 6 information and belief, UEI markets the Accused UEI Instrumentalities at least 7 under the "UEI," "One For All," "Xsight, "EZ-RC," and "Nevo" brand names, and 8 has advertised and intended to sell products infringing or for infringing, the '351 9 Patent. Upon information and belief, the Accused UEI Instrumentalities have no 10 substantial non-infringing uses, and/or were especially designed, made, or adapted 11 for use in an infringing manner. Furthermore, upon information and belief, UEI 12 knows and intends that its infringing products will be combined or bundled with 13 other products sold, resold, or destined for sale, in the United States. UEI sells its 14 products to some of the largest original equipment manufacturers ("OEMs") in 15 consumer electronics and personal computing in the United States, including Sony, 16 Panasonic, and Toshiba, as well as to multiple system operators ("MSOs") in the 17 cable and satellite markets, including Comcast, DirecTV, and Dish Network. 18
13.

Specifically, upon information and belief, UEI is and has been

19 directly infringing, literally and/or under the doctrine of equivalents, at least claims 20 1, 2, 6, 7, 8, 18, and 21 of the '351 Patent (the "Asserted Claims") by making, having 21 made, using, selling, and/or offering to sell in the United States, or importing into 22 the United States, the Accused UEI Instrumentalities. For example, upon 23 information and belief, UEI has performed the steps of the Asserted Claims of the 24 '351 Patent within the meaning of 35 U.S.C. 271(a) through its testing and use of 25 the Accused UEI Instrumentalities at least during the creation of instructional videos 26 for the code search, volume lock and channel lock features of the Accused UEI 27 Instrumentalities, such as those found at http://www.youtube.com/user/ueicorporate. 28 -3Case No. 8:14-cv-00439 COMPLAINT FOR PATENT INFRINGEMENT

14.

Upon information and belief, UEI's acts of inducement include

2 making, having made, using, selling, and offering to sell, the Accused UEI 3 Instrumentalities, including UEI's creation and dissemination of promotional 4 materials, marketing materials, instruction guides, and user manuals that teach and 5 encourage end-users, OEMs, and MSOs, to perform the steps of the Asserted Claims 6 in an infringing manner, within the meaning of 35 U.S.C. 271(b). For example, 7 the documentation accompanying the Accused UEI Instrumentalities as well as 8 UEI's websites, (including but not limited to uei.com, urcsupport.com, and 9 oneforall.com) provide step-by-step instructions on how an end-user should 10 configure and use the Accused UEI Instrumentalities in a manner that directly 11 infringes the Asserted Claims of the '351 Patent. Such instructions include, by way 12 of non-limiting example, the "Searching for Your Code" 13 (urcsupport.com/html.php?page_id=377), "Volume Lock" 14 (http://www.urcsupport.com/html.php?page_id=594), and "Channel Control Lock" 15 (http://www.urcsupport.com/html.php?page_id=593) help pages available at 16 urcsupport.com. Additionally, UEI provides instructional videos available at 17 http://www.youtube.com/user/ueicorporate that present step-by-step instructions on 18 how an end-user should configure and use the Accused UEI Instrumentalities in a 19 manner that directly infringes the Asserted Claims of the '351 Patent. 20
15.

Additionally, upon information and belief, UEI has contributed to the

21 infringement of the Asserted Claims within the meaning of 35 U.S.C 271(c). 22 Specifically, UEI has contributed to end-user's, OEM's, and MSO's infringement of 23 the asserted claims of the '351 Patent by, among other things, making, having made, 24 selling and offering to sell the Accused UEI Instrumentalities, and by instructing, 25 aiding, assisting, authorizing, advertising, marketing, promoting, providing for 26 and/or encouraging the offer for sale, sale, and use of the Accused UEI 27 Instrumentalities, which UEI knows are especially made or adapted for use in an 28 -4Case No. 8:14-cv-00439 COMPLAINT FOR PATENT INFRINGEMENT

1 infringing manner, and which are not a staple article of commerce suitable for 2 substantial non-infringing use. 3
16.

By filing this complaint, UEI has notice of the '351 Patent and its

4 infringement if it did not already have notice. 5


17.

Despite having knowledge of the '351 Patent and UEI's direct and

6 indirect infringement of the '351 Patent, UEI has continued its unlicensed and 7 unauthorized practice of the '351 Patent without regard to Peel's rights. This 8 infringement has continued despite an objectively high likelihood that UEI's actions 9 would constitute infringement of the '351 Patent. This objectively high likelihood of 10 infringement has either been known to UEI, or is so obvious that it should have been 11 known to UEI. To date, UEI has not presented any competent advice of counsel 12 upon which it relies; nor has it presented any reasonable defense of non13 infringement, invalidity, or unenforcability. UEI's infringement of the '351 Patent 14 under 35 U.S.C. 271 is therefore willful, deliberate, and objectively reckless. 15
18.

As a result of UEI's unlawful infringement of the '351 Patent, Peel has

16 suffered and will continue to suffer damage. Peel is entitled to recover from UEI the 17 damages suffered by Peel as a result of its unlawful acts. 18
19.

On information and belief, UEI intends to continue its unlawful

19 infringing activity, and Peel continues to and will continue to suffer irreparable 20 harm for which there is no adequate remedy at law from such unlawful 21 infringing activities unless this Court enjoins UEI from further infringing activities. 22 23 24 PRAYER FOR RELIEF WHEREFORE, Peel prays for the following relief: (a) That UEI be declared to have infringed, induced others to

25 infringe and/or committed acts of contributory infringement with respect to the 26 Asserted Claims of the '351 Patent as alleged above; 27 (b) That UEI and its officers, agents, servants, employees, and all

28 those persons acting or attempting to act in active concert or in participation with -5Case No. 8:14-cv-00439 COMPLAINT FOR PATENT INFRINGEMENT

1 them or acting on their behalf be immediately, preliminarily and permanently 2 enjoined from further infringement of the '351 Patent; 3 (c) That UEI be ordered to account for and pay to Peel all damages

4 caused to Peel by reason of UEI's infringement of the '351 Patent pursuant to 35 5 U.S.C. 284; 6 (d) That UEI be ordered to pay treble damages for willful

7 infringement of each of the '351 Patent pursuant to 35 U.S.C. 284; 8 (e) That this case be declared "exceptional" under 35 U.S.C. 285

9 and that Peel be awarded its attorneys' fees, expenses, and costs incurred in this 10 action; 11 (f) That Peel be granted pre-judgment and post-judgment interest on

12 the damages caused to it by reason of UEI's infringement of the '351 Patent; 13 14 and 15 (h) That Peel be granted such other and additional relief as the Court (g) That UEI be ordered to pay all costs associated with this action;

16 deems just and proper. 17 18 19 20 21 22 23 24 25 26 27 28 -6Case No. 8:14-cv-00439 COMPLAINT FOR PATENT INFRINGEMENT

1 DATED: March 21, 2014 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

QUINN EMANUEL URQUHART & SULLIVAN, LLP

By /s/ Joseph M. Paunovich Claude M. Stern (Bar No. 96737) claudestern@quinnemanuel.com 555 Twin Dolphin Drive, 5th Floor Redwood Shores, California 94065-2139 Telephone: (650) 801-5000 Facsimile: (650) 801-5100 Joseph M. Paunovich (Bar No. 228222) joepaunovich@quinnemanuel.com Richard H. Doss (Bar No. 204078) richarddoss@quinnemanuel.com 865 S. Figueroa St., 10th Floor Los Angeles, California, 90017 Telephone: (213) 443-3000 Facsimile: (213) 443-3100 Attorneys for Plaintiff Peel Technologies, Inc.

-7-

Case No. 8:14-cv-00439 COMPLAINT FOR PATENT INFRINGEMENT

1 2

DEMAND FOR JURY TRIAL Pursuant to Rule 38 of the Federal Rules of Civil Procedure, Plaintiff Peel

3 hereby demands a trial by jury as to all issues so triable. 4 5 DATED: March 21, 2014 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -8Case No. 8:14-cv-00439 COMPLAINT FOR PATENT INFRINGEMENT

QUINN EMANUEL URQUHART & SULLIVAN, LLP

By /s/ Joseph M. Paunovich Claude M. Stern (Bar No. 96737) claudestern@quinnemanuel.com 555 Twin Dolphin Drive, 5th Floor Redwood Shores, California 94065-2139 Telephone: (650) 801-5000 Facsimile: (650) 801-5100 Joseph M. Paunovich (Bar No. 228222) joepaunovich@quinnemanuel.com Richard H. Doss (Bar No. 204078) richarddoss@quinnemanuel.com 865 S. Figueroa St., 10th Floor Los Angeles, California, 90017 Telephone: (213) 443-3000 Facsimile: (213) 443-3100 Attorneys for Plaintiff Peel Technologies, Inc.