network signatures v. purdue pharma
TRANSCRIPT
8/2/2019 Network Signatures v. Purdue Pharma
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COMPLAINT
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Defendant, Purdue Pharma L.P. (“Purdue”), conducts business operations throughout the
United States, including in Orange County, California, in this judicial district. Purdue
resides in this judicial district by virtue of its business activities in this district and has
committed acts of infringement or of contributory infringement and inducement of
infringement within this judicial district.
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THE PARTIES
3. Plaintiff, Network Signatures, is a corporation duly organized and existing
under the laws of California with its principal place of business at 30021 Tomas Street,
Suite 300, Rancho Santa Margarita, California 92688. As is alleged below, the United
States of America has granted to Network Signatures an exclusive license concerning the
patented technology at issue in this lawsuit.
4. Purdue is a limited partnership organized and existing under the laws of the
State of Delaware with its principal place of business at One Stamford Forum, 201 Tresse
Boulevard, Stamford, CT 06901. Purdue is a privately held pharmaceutical company tha
is engages in providing research, development, production and marketing of prescription
medicines to persons in the U.S. and worldwide through physical and electronic channels
including the internet.
THE NAVAL RESEARCH LABORATORY
5. The Naval Research Laboratory (“NRL”) is one of the most accomplished
research-and-development organizations in the country. NRL scientists have not only
made remarkable breakthroughs in military technology; they have literally changed the
world for all of us. Without their efforts, we would not have GPS, modern radar, and any
number of other technological innovations that we now take for granted. This lawsuit
concerns another such innovation: technology that allows for the safe and secure
communication of sensitive information over the Internet, such as personal, banking,
commercial, financial, and other information.
6. Federal law empowers the United States Government to license its patents to
private parties for commercialization as well as for enforcement of the patent without the
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COMPLAINT
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United States as a party. 37 C.F.R. § 404.5(b)(2). By doing so, the government can use
market forces to better capitalize on its technologies, the way a private party would. In
addition, a license agreement can give the private licensee the proper incentives to protec
the government’s intellectual property from theft, a task often handled better by a private
entity.
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NETWORK SIGNATURES LICENSES THE NAVY’S TECHNOLOGY
7. On April 23, 1996, the United States Patent and Trademark Office duly and
legally issued United States Patent No. 5,511,122 (“the ’122 Patent”), entitled
“Intermediate Network Authentication.”
8. The ’122 patent claims, among other things, a critical method of
authenticating a computer in which a private electronic key is used, together with a
validating public electronic key, to create a cryptographic signature; the cryptographic
signature is transmitted in at least one packet to the validating computer; and the signatur
is verified by the validating computer, using its private key and the public key of the
computer to be authenticated. This authentication method allows for the safe and secure
communication of sensitive information, such as personal, banking, commercial, financia
and other information, as is transmitted between computers by Defendant and its
employees, customers, vendors, and business partners.
9. The ’122 Patent is owned by the United States of America, represented by th
Secretary of the Navy. To allow enforcement, commercialization and protection of this
patent and the technology it represents, in September 2004, the United States Navy entere
into an exclusive license agreement (the “Exclusive License Agreement”) with Metrix
Services, Inc. expressly granting Metrix Services the exclusive right to practice, enforce,
and sublicense the ’122 Patent, among other rights, subject to the general limitations
imposed by federal law. A true and correct copy of the Exclusive License Agreement is
attached hereto as Exhibit A and incorporated here by reference.
10. With the express approval of the United States Navy, Metrix Services
transferred its entire right, title, and interest in and to the ’122 Patent to Network Signatur
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COMPLAINT
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on February 14, 2006. A true and correct copy of the First Amendment to the Exclusive
License Agreement, which, among other things, approved the assignment of the Exclusiv
License Agreement to Network Signatures, is attached hereto as Exhibit B and incorporat
here by reference. A true and correct copy of the Assignment from Metrix to Network
Signatures is attached as Exhibit C and incorporated here by reference.
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11. In accordance with its rights under the Exclusive License Agreement, Netwo
Signatures has begun the commercial development of a product, known as EasyConnect,
that practices the ’122 Patent. Network Signatures has demonstrated the product to NRL
personnel and has received NRL’s recognition of its development efforts. A true and
correct copy of an October 12, 2006, letter from the Navy to Network Signatures reflects
this and is attached as Exhibit D and incorporated by reference here.
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12. Network Signatures has also begun exercising its other primary obligation
under the Exclusive License Agreement: protecting the Navy’s intellectual property right
from infringement.
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FIRST CLAIM FOR RELIEF
(AGAINST PURDUE FOR DIRECT, CONTRIBUTORY AND INDUCING
INFRINGEMENT OF U.S. PATENT NO. 5,511,122)
13. Plaintiff incorporates here by reference the allegations set forth in Paragraph
1-12 of the Complaint as though fully set forth here.
14. A true and correct copy of the ’122 Patent is attached as Exhibit E and
incorporated here by reference.
15. On information and belief, Defendant uses digital certificates and digital
signatures implemented though the use of public key infrastructure to facilitate
communication with its employees, business partners, affiliates, and customers. For
example, Defendant enables a computer of a Defendant customer, affiliate, business
partner, or employee (“sending computer”) to send a secure communication over the
Internet to another computer (“receiving computer”) by using a confidential private key,
and a public key, to digitally sign the message being sent. When the receiving computer
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COMPLAINT
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receives the signed message, it uses the sending computer’s public key, and its private ke
to decrypt the signature (collectively referred to as “Defendant Authentication Activities”
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17. On information and belief, Defendant has also indirectly infringed and
continues to indirectly infringe the ’122 Patent by actively inducing direct infringement b
other persons—specifically, customers, vendors, and business partners of Defendant—wh
operate methods that embody or otherwise practice one or more of the claims of the ’122
Patent when Defendant had knowledge of the ’122 Patent and knew or should have know
that their actions would induce direct infringement by others and intended that their actio
would induce direct infringement by others.
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18. On information and belief, Defendant has also indirectly infringed and
continues to indirectly infringe the ’122 Patent by contributory infringement by providing
non-staple articles of commerce to others for use in an infringing system or method with
knowledge of the ’122 Patent and knowledge that these non-staple articles of commerce a
used as a material part of the claimed invention of the ’122 Patent.
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19. On information and belief, Defendant’s foregoing acts of infringement
include infringement by use and implementation of the Defendant Authentication
Activities.
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21. As a direct and proximate result of Defendant’s infringement of the ’122
Patent, Network Signatures and the United States Government have been and continue to
be damaged in an amount yet to be determined.
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6. By making, using, selling, and offering for sale Defendant Authentication
Activities, Defendant has directly infringed and continues to directly infringe the ’122
Patent, including infringement under 35 U.S.C. § 271(a) and (f).
0. On information and belief, Defendant will continue to infringe the ’122 Pate
unless enjoined by this Court.
2. Unless a preliminary and permanent injunction are issued enjoining
Defendant and its officers, agents, servants and employees, and all others acting on their
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COMPLAINT
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behalves or in concert with Defendant, from infringing the ’122 Patent, Network Signatu
and the United States Government will be greatly and irreparably harmed.
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PRAYER FOR RELIEF
WHEREFORE, Network Signatures prays for judgment against Defendant as
follows:
1. For a judicial determination and declaration that Defendant has directly
infringed, and continues to directly infringe, United States Patent No. 5,511,122;
2. For a judicial determination and declaration that Defendant has induced, and
continues to induce, infringement of the ’122 Patent;
3. For a judicial determination and declaration that Defendant has contributoril
infringed, and continues to contributorily infringe, the ’122 Patent;
4. For a judicial determination and decree that Defendant’s infringement of the
’122 Patent has been, and continues to be, willful and deliberate;
5. For preliminary and permanent injunctions prohibiting Defendant, its
respective subsidiaries, officers, agents, servants, employees, licensees, and all other
persons or entities acting or attempting to act in active concert or participation with them
acting on their behalf, from infringing the ’122 Patent;
6. For an order requiring that Defendant notify all of their customers, vendors
and users of the infringement and their participation in it and that Defendant encourage it
customers, vendors and users to cease all such infringing actions;
7. For an order that Defendant account for and pay to Network Signatures all
damages caused to Network Signatures by reason of Defendant’s infringement, in
accordance with 35 U.S.C. Section 284, as well as enhanced damages under 35 U.S.C.
Section 285;
8. For an award of damages according to proof;
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COMPLAINT
9. For a judicial determination that this case is exceptional under 35 U.S.C.
Section 285 and that Defendant be ordered to pay Network Signatures’ costs, expenses, a
reasonable attorney’s fees under 35 U.S.C. Sections 284 and 285;
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10. For a judicial order awarding Network Signatures pre-judgment and post-
judgment interest on the damages caused to it by Defendant’s infringement and any other
amounts awarded to Network Signatures; and
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11. For any such other and further relief as the Court may deem just and proper
under the circumstances.
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Dated: April 3, 2012 ONE LLP
William O’Brien
Attorneys for Plaintiff,
Network Signatures, Inc.
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COMPLAINT
DEMAND FOR JURY TRIAL1
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Plaintiff, Network Signatures, Inc., hereby demands trial by jury in this action.
Dated: April 3, 2012 ONE LLP
William O’Brien
Attorneys for Plaintiff,
Network Signatures, Inc.
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