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U 5-8066 5
Plaintiff,
V.
CLEARPLAY, INC . ,
ISP SERVICES LLC D/B/A MAX .COM,
MATTHEW JARMAN ,
LEE JARMAN,
WILLIAM AHO, AND
FRED NINOW ,
Defendants .
COMPLAINT
Plaintiff Nissim Corp ., by and through its undersigned counsel , hereby sues Defendant s
ClearPlay, Inc ., ISP Services LLC, Matthew Jarman , Lee Jarman , William Aho, and Fred
Ninow, and for its Complaint alleges as follows:
THE PARTIE S
1 . Plaintiff Nissim Corp. ("Nissim ") is a corporation organized and existing under
the laws of the state of Florida with its principal place of business in Boca Raton , Florida .
2 . Defendant ClearPlay, Inc . ("ClearPlay") is a corporation organized and existing
under the laws of the state of Delaware with its principal place of business in Salt Lake City,
Utah .
3 . Defendant ISP Se rv ices LLC is a limited liability company organized under th e
laws of the State of Utah and with its principal place of business in Salt Lake City, Utah.
30S. 30-9900
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DVD-Device to skip video segments of, for example, more sexually graphic content than that
contained on the NC- 17 Rated version .
15 . The DVD-Specifications provide for the use of segment information carried by a
DVD to enable a DVD-Device to play, from within the same DVD, more than one version of a
video. This capability of the DVD-Specifications incorporated into all DVD-Devices is covered
by the Nissim Patents .
16 . The Nissim Patents also teach the distribution of segment information separate
from the DVD . Thus, Nissim recognized a separate business opportunity in providing segment
information external to a DVD that would enable a specially adapted DVD-Device to play a
version of a DVD that was not enabled by the segment information carried by the DVD . For
example, in the case of the "Crash" DVD, such a DVD-Device would use segment information
provided separate from the DVD to play a "customized" version of the DVD that excluded
scenes of violence or other objectionable content that would have been included in both the NC17 and R Rated versions .
17 . In July 2005, Defendants ClearPlay, Inc . and ISP Services LLC d/b/a Max .com
launched nationally a new DVD player called the ClearPlay enabled MaxPlay DVD Modem
Player . A true and correct copy of the ClearPlay website offering this product for sale is attached
hereto as Exhibit A . A true and correct copy of the ISP Services website offering this product
for sale is attached hereto as Exhibit B
18 . The ClearPlay enabled MaxPlay DVD Modem Player RCA Player and the
associated distribution of ClearPlay Filters, distributed with the ClearPlayer enabled MaxPla y
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Case No . 04-21140-Civ-Huck/Turnoff
DVD Modem Player and separately by ClearPlay and ISP Services LLC, are a willful
infringement of the Nissim Patents .
19 . With full knowledge of the Nissim Patents, Matthew Jarman, Lee Jarman and
William Aho supervised, directed, participated in and/or approved the infringing acts of
ClearPlay .
20 . With full knowledge of the Nissim Patents, Fred Ninow supervised, directed,
participated in and/or approved the infringing acts of ISP Services LLC .
COUNT I - PATENT INFRINGEMENT
(AGAINST ALL DEFENDANTS )
21 . Nissim repeats and realleges each and all of the allegations contained in
paragraphs I through 20 above as though fully set forth herein .
22 . Part of the portfolio of Nissim Patents, United States Patent 6,067,401 ("the '401
patent"), entitled "Playing A Version Of And From Within A Video By Means Of Downloaded
Segment Information," was duly and lawfully issued on May 23, 2000 by the United States
Patent and Trademark Office . The `401 patent issued from an application filed with the United
States Patent and Trademark Office on December 11, 1997, claims priority from a parent
application which was originally filed on January 11, 1993 and which issued as United States
Patent 5,434,678, and which is now, and has been at all times since its date of issue, valid and
enforceable .
23 . ClearPlay sells, uses, and offers to sell, within the United States, the ClearPlav
enabled MaxPlay DVD Modem Player ; and makes, uses, offers to sell and/or sells ClearPla y
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25 . ISP Services LLC makes, uses, sells, and offers to sell, within the United States,
the ClearPlay enabled MaxPlay DVD Modem Player ; and uses, offers to sell and/or sells
ClearPlay Filters, and related technologies that directly infringe, literally or under the doctrine of
equivalents, and/or indirectly infringe, one or more claims of the `401 patent .
26 . Fred Ninow has actively aided and abetted the infringement by ISP Services LLC
by supervising, directing, participating in and/or approving ISP Services LLC's infringing
activity .
27. Defendants' acts of infringement have been willful and with full knowledge and
in conscious disregard of Nissim's rights under the `401 patent .
28 . Defendants will continue to infringe in the future unless enjoined by the Court .
29. Nissim has been damaged by Defendants' infringement of the '401 patent in an
amount to be proven at trial .
COUNT II - PATENT INFRINGEMENT
(AGAINST ALL DEFENDANTS )
30. Nissim repeats and realleges each and all of the allegations contained in
paragraphs 1 through 20 above as though fully set forth herein .
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45 . Defendants' acts of infringement have been willful and with full knowledge and
in conscious disregard of Nissim's rights under the `678 patent .
46 . Defendants will continue to infringe in the future unless enjoined by the Court .
47 . Nissim has been damaged by Defendants' infringement of the `678 patent in an
amount to be proven at trial .
COUNT IV - PATENT INFRINGEMENT
(AGAINST ALL DEFENDANTS )
48 . Nissim repeats and realleges each and all of the allegations contained in
paragraphs I through 20 above as though fully set forth herein .
49 . Part of the portfolio of Nissim Patents, United States Patent 5,589,945 ("the '945
patent"), entitled "Computer-Themed Playing System," was duly and lawfully issued on
December 31, 1996 by the United States Patent and Trademark Office . The '945 patent issued
from an application filed with the United States Patent and Trademark Office on September 13 .
1994, which claims priority from a parent application originally filed on January 11 . 1993 an d
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54 . Defendants ' acts of infringement have been willful and with full knowledge and
in conscious disregard of Nissim ' s rights under the '945 patent .
55 . Defendants will continue to infringe in the future unless enjoined by the Court .
56 . Nissim has been damaged by Defendants ' infringement of the '945 patent in an
amount to be proven at trial .
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61 . ISP Services LLC makes, uses, sells, and offers to sell, within the United States,
the ClearPlay enabled MaxPlay DVD Modem Player ; and uses, offers to sell and/or sells
ClearPlay Filters, and related technologies that directly infringe, literally or under the doctrine of
equivalents, and/or indirectly infringe, one or more claims of the `013 patent .
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Case No . 04-21140-Civ-Huck/Turnoff
62 . Fred Ninow has actively aided and abetted the infringement by ISP Services LL C
by supervising, directing, participating in and/or approving ISP Services LLC's infringing
activity .
63 . Defendants' acts of infringement have been willful and with full knowledge and
in conscious disregard of Nissim's rights under the `013 patent .
64 . Defendants will continue to infringe in the future unless enjoined by the Court .
65 . Nissim has been damaged by Defendants' infringement of the `013 patent in an
amount to be proven at trial .
COUNT VI - PATENT INFRINGEMENT
(AGAINST ALL DEFENDANTS )
66. Nissim repeats and realleges each and all of the allegations contained in
paragraphs 1 through 20 above as though fully set forth herein .
67. Part of the portfolio of Nissim Patents, United States Patent 6,151,444 ("the '444
patent"), entitled "Motion Picture Including a Duplication of Frames," was duly and lawfully
issued on November 21, 2000 by the United States Patent and Trademark Office . The '444
patent issued from an application filed with the United States Patent and Trademark Office on
June 30, 1998, which claims priority from a parent application originally filed on January 11,
1993 and which issued as United States Patent 5,434,678, and which is now, and has been at all
times since its date of issue, valid and enforceable .
68 . ClearPlay sells, uses, and offers to sell, within the United States, the ClearPlay
enabled MaxPlay DVD Modem Player ; and makes, uses, offers to sell and/or sells ClearPla y
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72. Defendants' acts of infringement have been willful and with full knowledge and
in conscious disregard of Nissim 's rights under the `444 patent .
73 . Defendants will continue to infringe in the future unless enjoined by the Court .
74 . Nissim has been damaged by Defendants ' infringement of the '444 patent in an
amount to be proven at trial .
COUNT VII - PATENT INFRINGEMENT
(AGAINST ALL DEFENDANTS )
75. Nissim repeats and realleges each and all of the allegations contained in
paragraphs I through 20 above as though fully set forth herein .
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80 . Fred Ninow has actively aided and abetted the infringement by ISP Services LLC
by supervising, directing, participating in and/or approving ISP Services LLC's infringing
activity .
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90 . Defendants' acts of infringement have been willful and with full knowledge and
in conscious disregard of Nissim's rights under the `805 patent .
91 . Defendants will continue to infringe in the future unless enjoined by the Court .
92 . Nissim has been damaged by Defendants' infringement of the *805 patent in an
amount to be proven at trial .
PRAYER FOR RELIEF
WHEREFORE, Plaintiff Nissim Corp. prays :
A. That the Court find ClearPlay and ISP Services LLC liable for direct infringement
of the `401, '472, `678, `945, `013, `444, `207 and '805 patents, either literally or under the
doctrine of equivalents, and/or for indirect infringement .
B . That the Court find Matthew Jarman, Lee Jarman, William Aho and Fred Ninow
liable for inducing infringement of the `401, `472, '678, `945, '013, '444, '207 and '805 patents .
C . That Defendants, and all of ClearPlay's and ISP Services LLC's officers .
directors, agents, servants, employees, successors, and assigns, and all persons acting in concert
16
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G . For such other and further relief as the Court deems just and proper .
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Case No . 04-21140-Civ-Huck/Turnof f
JURY DEMAN D
Plaintiff Nissim Corp . demands trial by jury on all issues so triable .
Respectfully submitted ,
hn C. Care y
orida Bar No . 007837 9
TROOCK & STROOCK & LAVAN LL P
3160 Wachovia Financial Cente r
200 South Biscayne Boulevard
Miami, Florida 33131
Telephone : (305) 789-9358
Facsimile : (305) 789-9302
jcarey@stroock .com (email )
Counsel for Plainti f Nissinn Corp.
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EXHIBIT A
ClearPlay
Page
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Case
9:05-cv-80665-DTKH Document 1 Entered on FLSD Docket 07/26/2005 Page
201 of
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9:05-cv-80665-DTKH Document 1 Entered on FLSD Docket 07/26/2005 Page
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This is an innovative new product that uses a modem to add the latest ClearPlay
Filters . Simply run a telephone cord from the back of the player to a jack in your
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without downloading, burning discs, etc.
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7/25/2005
2
ClearPlay
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2 Page
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Case
9:05-cv-80665-DTKH Document 1 Entered
on FLSD Docket 07/26/2005
22 of 27
7/25/2005
EXHIBIT B
MAX
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Now your family can watch
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7/25/2005
REPORT ON THE
FILING OR DETERMINATION OF AN
ACTION REGARDING A PATENT OR
TRADEMARK
In Compliance with 35 290 and/or 1 5 U .S .C . 1 1 16 you are hereby advised that a court action has bee n
05-80665-Civ-Hurley
PLAINTIFF
Nissim Corp .
PATENT O R
TRADEMARK NO .
1 (see attached)
Trademark s
U .S . DISTRICT COURT
July 25 2005
DATE OF PATENT
OR TRADEMARK
(see attached )
( see attached )
2
3
4
5
DATE INCLUDED
Amendment
PATENT O R
TRADEMARK NO .
Answer
DATE OF PATEN T
OR TRADEMARK
Cross Bill
Other Plead in g
1
2
3
4
5
In the above-entitled case, the tullowing decision has been rendered or judgement issued :
DECISION/JUDGEMEN T
CLERK
CLARENCE MADDOX
Warren Condon
DATE
7 .'26 0 5
JS 44
Case
( Rev . 12/96)
th36 5
The JS-44 civil cover sheet and the information contained herein neither replace nor supplement the filin7jand ervice of ?ffadings or other papers as require d
by law, except as provided by local rules of court . This form, approved by the Judicial Conference of the United States in September 1974, is required icr the use
of the Clerk of Cou rt for the purpose of initiating the civil docket sheet . (SEE INSTRUCTIONS ON THE REVERSE OF THE FORM .)
1 . (a) PLAINTIFFS DEFENDANTS
CLEARPLAY,
INC ., ISP SERVICES LLC D/B/A
MAX .COM, MATTHEW JARMAN, LEE JARMAN,
WILLIAM AHO AND FRED NINO W
NISSIM CORP .
cn .- furl
200
So . Biscayne Blvd .,
Miami , FI 3 31 :31
(Tel-
LL P
. Q5-35R-9900 )
DADE ONROE ,
II . BASIS OF JURISDICTION
BROWARD,
1
tllfYl~'t(1'l~
(PLACE
AN
rZ
'13`1 Original
Proceeding
El 2 Removed from
State Court
V. NATURE OF SUIT
110 Insurance
[1 120 Marine
130 Miller Act
[] 140 Negotiable Instrument
150 Recove ry of Overpayment
& Enforcement of Judgment
151 Medicare Act
0 152 Recovery of Defaulted
Student Loans
,Excl Veterans)
ti er (Subject of a 3
Foreign Country
3 Foreign Nation
06 0 6
A BANKRUPTCY
422 Appeal 28 USC 158
Slander
366 Asbestos Personal
330 Federal Employers Injury Product Liability
Liability
340 Marine PERSONAL PROPERTY
B 660 Occupational
B 690 Other
A REAL PR OPERTY
A CIVIL RIGHTS
441 Voting
442 Employmen t
443 Housing /
Accommodations
E] 444 Welfare
E) 440 Other Civil Rights
Safety/Health
A LABOR
A O THER STATUTE S
C]
B[]
423 Withdrawal
28 USC 157
A PROPERTY RIGHTS
Conupl Organization s
B SOCIAL SECURITY
861 HIA i 1395tti
Security Act
information Act
900 Appeal of Fee Determination
Plainti ff
or Defendant)
q 791 Empl Ret Inc
820 Copyrights
930 Patent
E] 840 Tratlema rv
PRISONER PETITIONS
Judgment
Litigation
7 Magistrate
6 Multidistrict
FORFEITURE/ PENALTY
Product Liability
385 Properly Damage
360 Other Personal Injury . Product Liability
Appeal to District
Judge from
Transferred from
5 another district
(specify)
05
3 Remanded from
C1 4 Reinstated or
Appellate Court Reopened
A CONTRACT
FOR PLAINTFF
IV. ORIGIN
X IN ONE BOX
4 Diversity
( Indicate Citizenship of Parties
in Item III)
5 ~`JC,~iSCJCDCOS1 .
26 USC 760 9
VI . CAUSE OF ACTION
35
USC
(CITE THE U .S. CIVIL STATUTE UNDER WHICH YOU ARE FILING AND WRITE BRIEF STATEMENT OF CAUSE
271 DO NOT CITE JURISDICTIONAL STATUTES UNLESS DIVERSITY )
LENGTH OF TRIAL
via_days estimated (for both sides to t ry entire case)
VII . REQUESTED IN
COMPLAINT:
DEMAND $
DATE
7-25-0 5
FOR OFFICE USE ONLY
RECEIPT q
Olin C . Care y
AMOUNT
PPJYING IFP
S C~ z~JUDGE
MAG
JUDGE