n--Case Document 1 Filed 02/12/13 Page 1 of 9 Gregog L._Weeks, Es ., No. 58584 mail: weeks wkn?lawncom Gregog elson, sq., No. 203029 mail: nelson law.com Chandler eeks sq. No. 245503 Email: chandlerw WEEKS, KAUFMAN LS JOHNSON 462 Stevens Avenue Sulte 310 Solana Beach, CA 92075 ax: -- Email: Attorneys for Plaintiff UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA RED.COM, INC., dba RED Case N0.: MMA BGS DIGITAL CINEMA, a Washington Corporation, COMPLAINT FOR PATENT Plaintiff, INFRINGEMENT VS. SONY CORPORATION OF DEMAND FOR JURY TRIAL AMERICA, a New York corporation, and SONY ELECTRONICS INC., a Delaware corporation, Defendants. 1 Complaint 25 26 27 28 Ziase Document 1 Filed 02/12/13 Page 2 of 9 Plaintiff Red.com, Inc. dba Red Digital Cinema (hereinafter referred to as hereby complains of Defendants Sony Corporation of America and Sony Electronics, Inc. (hereinafter collectively referred to as "Sony" or "Defendants"), and alleges as follows: JURISDICTION AND VENUE l. Jurisdiction over this action is founded upon 15 U.S.C. 1121, and 28 U.S.C. 1331 and 1338. 2. Venue is proper under 28 U.S.C. 1391(b) and and 28 U.S.C. l400(b). district, conducts business in California and within this judicial district and has The Defendant has offices within California and within this judicial made, used, offered for sale and/or sold infringing products in this judicial district. THE PARTIES 3. Plaintiff RED is a corporation organized and existing under the laws Irvine, California 92618, and doing business within this judicial district. 4. RED is informed and believes, and thereupon alleges that Defendant Sony Corporation of America is a New York corporation having its principal place of business located at 550 Madison Avenue, 27"' Floor, New York, New York 10022. RED is informed and believes, and thereupon alleges, that Defendant also has offices in California and that it is registered with the California Secretary of State to conduct business in California and in fact does conduct business in California. RED is informed and believes, and thereupon alleges, that Defendant has made, used, offered to sell, advertised and/or sold products, including the accused products identified below, directly and in the stream of commerce knowing such products would be sold in California and in this judicial district. 5. RED is informed and believes, and thereupon alleges that Defendant Sony Electronics, Inc. is a Delaware corporation having its principal place of business located at 16530 Via Esprillo, San Diego, California 92127. RED is Complaint of the"'State of Washington, having its principal place ofrbusiness at e34'eParker',We A 23 24 25 26 Ziase Document 1 Filed 02/12/13 Page 3 of 9 informed and believes, and thereupon alleges, that Defendant has made, used, offered to sell, advertised and/or sold products, including the accused products identified below, directly and in the stream of commerce knowing such products would be sold in California and in this judicial district. FACTUAL BACKGROUND 6. Since at least 2005, RED has been and continues to be actively engaged in the design, development, manufacture and sale of high performance digital still and motion cinematography cameras, video equipment and accessories, digital editing software, video players and generally, imaging format technology used in the dissemination, broadcast, or transmission of video. Since the introduction of its revolutionary RED camera, RED's products have been used to film several blockbuster movies, as well as many other movies and television series. The RED camera and products have been one of the hottest items in the Hollywood industry. 7. RED is the owner by assignment of U.S. Patent No. 8,174,560, duly and lawfully issued on May 8, 2012, describing and claiming the invention entitled "Video Camera." A true and correct copy of U.S. Patent No. 8,174,560 is attached hereto as Exhibit 1. 8. RED is the owner by assignment of U.S. Patent No. 8,358,357, duly and lawfully issued on January 22, 2013, describing and claiming the invention entitled "Video Camera." A true and correct copy of U.S. Patent No. 8,358,357 is attached hereto as Exhibit 2. 9. RED is informed and believes, and thereupon alleges that Sony is selling certain video cameras that unlawfully embody the claimed subject matter of U.S. Patent Nos. 8,174,560 and 8,358,357. In particular, RED is informed and believes, and thereupon alleges, that Defendant's F65, F5, and F55 cameras all embody the subject matter claimed in RED's asserted patents without any license thereunder and thereby infringe RED's U.S. Patent Nos. 8,174,560 and 8,358,357. 3 Complaint Case Document 1 Filed 02/12/13 Page 4 of 9 RED is informed and believes and based thereon alleges that Defendant made, used, imported, advertised, offered for sale and/or sold its accused cameras to multiple distributors, retailers, and/or retail customers. 10. Defendants have received written notice of RED's proprietary rights in its patents by way of a cease and desist letter it caused to be sent to Defendant, as well as this lawsuit. Further, Defendants have received constructive notice of RED's patents as RED caused U.S. Patent No. 8,175 to be placed plainly on its product and/or packaging. U.S. Patent No. 8,358,357 recently issued and will be marked on RED's product and/or packaging as soon as reasonable. Despite actual and constructive knowledge, Defendants continue to infringe RED's patent rights. On information and belief, such infringement by Defendants must have been willful and wanton. l. Sony's unauthorized, infringing cameras has resulted in lost sales, reduced the RED is informed and believes and thereupon alleges that the sale of business and profit of RED, and greatly injured the general reputation of RED, all to RED's damage in an amount not yet fully determined. The exact amount of profits realized by Defendants as a result of its infringing activities, are presently unknown to RED, as are the exact amount of damages suffered by RED as a result of said activities. These profits and damages cannot be accurately ascertained without an accounting. 12. Sony is a competitor of RED. Defendants sell Sony cameras in the same channels as RED. Defendants' unauthorized, infringing sales are likely to cause irreparable harm to RED, which cannot be compensated by damages. Accordingly, RED seeks a preliminary and permanent injunction enjoining Defendants from making, using, offering to sell and selling its F65, F5 and F55 cameras . 0- a 9 4 Complaint Iiase Document 1 Filed 02/12/13 Page 5 of 9 FIRST CLAIM FOR RELIEF Patent Infringement 13. The allegations of paragraphs 1 through 12 are repled and realleged as though fully set forth herein. 14. This is a claim for patent infringement, and arises under 35 U.S.C. Sections 271 and 281. 15. Jurisdiction is founded upon 28 U.S.C. 1331 and 1338. 16. RED is the owner of U.S. Patent No.8,174,560, which protects the claimed invention entitled "Video Camera." A true and correct copy of U.S. Patent No. 8,174,560 is attached hereto as Exhibit 1. By statute, the patent is presumed to be valid and enforceable under 35 U.S.C. 282. 17. manufactured, imported, advertised, offered to sell, and sold, without any rights or Defendants, through their agents, employees and servants, have license from RED, cameras that falls within the scope and clain1(s) contained in U.S. Patent No. 8,174,560. Such actions constitute direct, indirect, and/or contributory infringement. l8. willfully infringed upon RED's exclusive rights under this patent, with full notice RED is informed and believes and thereupon alleges that Defendants and knowledge thereof. 19. have derived, received and will continue to derive and receive from the aforesaid RED is informed and believes and thereupon alleges that Defendants acts of infringement, gains, profits and advantages in an amount not presently known to RED. By reason of the aforesaid acts of infringement, RED has been, and will continue to be, greatly damaged. 20. great and irreparable injury of RED, for which RED has no adequate remedy at law Defendants may continue to infringe U.S. Patent No. 8,174,560 to the unless the Defendants are enjoined by this court. Accordingly, RED seeks a 5 Compiaint 26 27 28 Iase Document 1 Filed 02/12/13 Page 6 of 9 preliminary and permanent injunction enjoining Defendants from making, using, importing, offering to sell and/or selling its F65, F5 or F55 cameras. SECOND CLAIM FOR RELIEF Patent Infringement 21. The allegations of paragraphs 1 through 12 are repled and realleged as though fully set forth herein. 22. This is a claim for patent infringement, and arises under 35 U.S.C. Sections 271 and 281. 23. Jurisdiction is founded upon 28 U.S.C. 1331 and 1338. 24. RED is the owner of U.S. Patent No.8,358,357, which protects the claimed invention entitled "Video Camera." A true and correct copy of U.S. Patent No. 8,358,357 is attached hereto as Exhibit 2. By statute, the patent is presumed to be valid and enforceable under 35 U.S.C. 282. 25. manufactured, imported, advertised, offered to sell, and sold, without any rights or Defendants, through their agents, employees and servants, have license from RED, a camera that falls within the scope and claim contained in U.S. Patent No. 8,358,357. Such actions constitute direct, indirect, and/or contributory infringement. 26. willfully infringed upon RED's exclusive rights under this patent, with full notice RED is informed and believes and thereupon alleges that Defendants and knowledge thereof. 27. has derived, received and will continue to derive and receive from the aforesaid RED is informed and believes and thereupon alleges that Defendants acts of infringement, gains, profits and advantages in an amount not presently known to RED. By reason of the aforesaid acts of infringement, RED has been, and will continue to be, greatly damaged. Compiaint 10 ll 12 28. Case Document 1 Filed 02/12/13 Page 7 of 9 great and irreparable injury of RED, for which RED has no adequate remedy at law unless the Defendants are enjoined by this court. Accordingly, RED seeks a preliminary and permanent injunction enjoining Defendants from making, using, importing, offering to sell and/or selling its F65, F5 or F55 cameras. WHEREFORE, Plaintiff Red.co1n, Inc. prays as follows: 1. . That Defendants, their agents, servants, employees, and attorneys and Defendants may continue to infringe U.S. Patent No. 8,358,357 to the That Defendants be adjudicated to have infringed RED's U.S. Patent No. 8,174,560, and that the patent is valid and enforceable and is owned by That Defendants be adjudicated to have infringed RED's U.S. Patent No. 8,358,357, and that the patent is valid and enforceable and is owned by all persons in active concert and participation with them, be forthwith preliminarily and thereafter permanently enjoined from making, using, importing, offering to sell or selling any cameras that infringe United States Patent Nos. 8,174,560 or 8,358,357; That Defendants be required to account to RED for any and all profits derived by them associated with their sale of the accused products, and all damages sustained by RED by reason of Defendants' patent infringement; For an assessment and award of damages against Defendants in an amount no less than lost profits or a reasonable royalty, pursuant to 35 U.S.C. 284; For an order requiring Defendant to deliver up and destroy all infringing cameras; 7 Complaint Ease Document 1 Filed 02/12/13 Page 8 of 9 7. That an award of reasonable costs, expenses, and attorneys' fees be awarded against Defendant pursuant to 35 U.S.C. 285; 8. That Defendant be directed to file with this court and serve upon RED within 30 days after the service of the injunction, a report in writing under oath, setting forth in detail the manner and form in which Defendants have complied with the injunction; and 9. For such other relief as the Court may deem appropriate at law or equity. DATED: February 12, 2013 WEEKS, KAUFMAN, NELSON JOHNSON Gregory K. Nelson Gregory K. Nelson Attorney for Plaintiff, Red.co1n, Inc. JURY DEMAND Plaintiff RED, Inc. hereby requests a trial by jury in this matter. DATED: February 12, 2013 WEEKS, KAUFMAN, NELSON JOHNSON Gregory K. Nelson Gregory K. Nelson Attorney for Plaintiff, Red.com, Inc. 8 Complaint M4 (Rm mm Case 02/12/13 Page 9 of 9 The 44 civil cover sheet and the information contained herein neither replace nor suppletnent the filjn 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 eptember 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEE ON OF THIS FORM.) 1. PLAINTIFFS DEFENDANTS RED.COM, dba RED DIGITAL CINEMA, a Washington corporation SONY CORPORATION OF AMERICA. a New York corporation, and SONY ELECTRONICS. INC., a Delaware corporation County of Residence of First Listed Plaintiff Oranqe Countv County of Residence of First Listed Defendant New York County (EXCEPT IN U.S. PLAINTIFF CASES) US. PLAINTIFF CASES ONLY) NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT OF LAND INVOLVED. Attorneys (F div!>> I 5- wt) Weeks, 0 I MMA 462 Stevens Avenue, Suite 310 Solana Beach, CA 92075 Tel: (858) 794-2140 II. BASIS OF JURISDICTION (Place an "X"i'n0ne CITIZENSHIP OF PRINCIPAL PARTIES (Piace an in One Boxfiar Plainnjg (For Diver.-my Cases Only) and One Boxfor Defeiidant) E3 1 U.S. Government 3 3 Federal Question PTF DEF PTF DEF Plaintiff Not a Party) Citizen of This State Cl i Incorporated or Principal Place Cl 4 Cl 4 of Business In This State CI 2 US. Government 4 Diversity Citizen of Another State Cl 2 13 2 Incorporated and Principal Place El 5 Cl 5 Defendant ofl'arn'e.r in Item of Business in Another State Citizen or Subject of a Cl 3 Cl 3 Foreign Nation I3 6 El 6 Foreien Country IV. (Place an in One Box Only) - TORTS - - - --FQRFEITUREJPENAIJTY Cl ll{} Insurance PERSONAL INJURY PERSONAL INJURY El 625 Drug Related Seizure Cl 422 Appeal 28 USC 158 El 3'35 False Claims Act I20 Marine El 310 Airplane El 365 Personal Injury - of Property 21 USC 881 CI 423 Withdrawal El 400 State Reapportionment El 130 Miller Act 315 Airplane Product Product Liability 690 Other 28 USC 15? El 410 Antitrust CI I40 Negotiable Instrument Liability Cl 36? Health Care! I3 430 Banks and Banking El 150 Recovery of Overpayment Cl 320 Assault, Libel Pharmaceutical I3 450 Commerce Enforcement of Judgment Slander Personal Injury Cl 820 Copyrights Cl 460 Deportation CI K51 Medicare Act El 330 Federal Employers' Product Liability 2? 830 Patent Cl 4'30 Racketeer Influenced and CI 15?. Recovery of Defaulted Liability E3 368 Asbestos Personal Cl 840 Trademark Corrupt Organizations Student Loans Cl 340 Marine Injury Product Cl 480 Consumer Credit (Excludes Veterans) Cl 345 Marine Product Liability Cl 490 CalJletSat TV 1153 Recovery of Overpayment Liability PERSONAL PROPERTY Cl 710 Fair Labor Standards Cl 361 HIA (1395ft') Cl 850 Securities:'Con1Inoditicsi' of Veteran's Benefits Cl 350 Motor Vehicle El 370 Other Fraud Act Cl 362 Black Lung (923) Exchange Cl 160 Stockholders' Suits Cl 355 Motor Vehicle 13 371 Truth in Lending El 720 CI 863 DIWCIDIWW (405(g)) 890 Other Statutory Actions 190 Other Contract Product Liability I3 380 Other Personal Relations 864 SSID Title XVI CI 891 Agricultural Acts Cl 195 Contract Product Liability 360 Other Personal Property Damage El 740 Railway Labor Act 1'3 865 RSI 0105(3)) Cl 893 Environmental Matters Cl 196 Franchise Injury CI 385 Property Damage Cl 751 Family and Medical 895 Freedom of Information C1 362 Personal injury - Product Liability Leave Act Act Medical Malpractice 790 Other Labor Litigation Cl 896 Arbitration 791 Employee Retirement El 899 Administrative Procedure E3 2E0 Land Condemnation Cl 440 Other Civil Rights Habeas Corpus: Income Security Act El 870 Taxes (U.S. Plaintiff ActfReview or Appeal of E1 220 Foreclosure Cl 441 Voting Cl 463 Alien Detainee or Defendant) Agency Decision Cl 230 Rent Lease Ejecttnent 442 Employment Cl 510 Motions to Vacate Cl IRS--Third Party El 950 Constitutionality of Cl 240 Torts to Land I3 443 Hoasingl Sentence 26 USC 7609 State Statutes Cl 245 Tort Product Liability Accomtnotlations Cl 530 General El 290 All Other Real Property [3 4145 Amer. wfDisabilities - Cl 535 Death Penalty .. Employment Other: Cl 462 Naturalization Application Cl 446 Amer. wIDisabilities - Cl 540 Mandamus Other Cl 465 Other Iinmigration Other 550 Civil Rights Actions Ci 443 Education C3 555 Prison Condition 560 Civil Detainee - Conditions of Confinement V. ORIGIN (Place an in One Box Only) 1 Original Cl 2 Removed from 3 Remanded from 4 Reinstated or Transferred from El 6 Muitidistrict Proceeding State Court Appellate Court Reopened Another District Litigation Cite the U.S. Civil _Statute under which you are filing (Do not citejnrisdicriannl statutes unless diversity): VI CAUSE OF ACTION 35 U.S.C. Sections 271, 281, 282. 284, and 285 Brief description of cause: Patent Infringement VII. REQUESTED IN CHECK IF THIS IS A CLASS ACTION DEMAND 5 CHECK YES onI)' if demanded in COMPLAINT: UNDER RULE 23. JURY DEMAND: Yes Cl No V111. RELATED IF ANY (Sci; JUDGE DOCKET NUMBER DATE NATU TTORNEY OF RECORD 0211 21201 3 FOR OFFICE USE ONLY RECEIPT AMOUNT APPLYING IFP JUDGE MAG. JUDGE