smart options v. ticket2final et. al
TRANSCRIPT
8/12/2019 Smart Options v. Ticket2Final et. al.
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THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WISCONSIN
SMART OPTIONS, LLC )
)Plaintiff, ) Case No. 14-cv-164)
v. ) Judge
) Mag.
TICKET2FINAL, LTD. and )TICKET2FINAL USA LLC )
) JURY TRIAL DEMANDED
Defendants. )
COMPLAINT
Plaintiff Smart Options, LLC (“Smart Options”) files this Complaint against
Defendants Ticket2Final, Ltd. (“T2F”) and Ticket2Final USA LLC (“T2FU”)
(collectively “Ticket2Final”), stating as follows:
I. NATURE OF THE ACTION
1. This is an action for patent infringement and trademark infringement. The
action arises out of Defendants’ violations of the Lanham Act and the Patent Act.
II. PARTIES
2. Plaintiff is a limited liability company organized under the laws of
Delaware. Plaintiff has a principal place of business located at 600 West Chicago
Avenue, Suite 300N, Chicago, Illinois 60654. Smart Options integrates its patented
systems and methods for purchasing electronic options on tickets into such websites as
www.optionit.com.
3. Defendant Ticket2Final, Ltd. (“T2F”), on information and belief, is an
entity created under the laws of the Isle of Man with a registered office at 36 Hope Street,
Douglas, Isle of Man IM1 1AR. Defendant Ticket2Final USA LLC (“T2FU”) is a
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limited liability company created under the laws of the State of Delaware. Ticket2Final
USA’s registered agent is Corporations & Companies, Inc., 910 Foulk Road, Suite 201,
Wilmington, DE 19803. On information and belief, Defendants own and operate the
website www.ticket2final.com. On and through that website, Defendants sell and offer
for sale options on tickets to sporting events, including in this judicial district.
III. JURISDICTION AND VENUE
4. This Court has subject matter jurisdiction under the provisions of 28
U.S.C. §§ 1331 and 1338(a), in that this action for patent infringement and trademark
infringement arises under the laws of the United States, including 35 U.S.C. §§ 271 and
281-285 and 15 U.S.C. §§ 1114, 1121 and 1125(a).
5. Personal jurisdiction over Defendant comports with Wis. Stat. § 801.05
and the United States Constitution because Defendant does business in this judicial
district, has committed and continues to commit, or has contributed and continues to
contribute to, acts of patent infringement and/or trademark infringement in this judicial
district as alleged in this Complaint, or otherwise has sufficient contacts with the state.
6. Venue is proper in this judicial district under the provisions of 28 U.S.C.
§§ 1391(b), (c), and § 1400(b).
IV. FACTUAL BACKGROUND
7. Smart Options is the owner of United States Patent No. 7,313,539 (“539
patent”) and United State Trademark Registration No. 3,776,177 for its mark “Reserve
Now. Decide Later.” Smart Options does business as OptionIt, using the technology
described and claimed in the 539 patent and using the Reserve Now. Decide Later.®
trademark to identify OptionIt as the source for its ticketing services offered through its
website www.optionit.com.
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8. On December 25, 2007, the United States Patent and Trademark Office
(“USPTO”) duly and legally issued United States Patent No. 7,313,539 (the “539 patent”)
entitled “Method and System for Reserving Future Purchases of Goods or Services”. The
539 patent is valid and enforceable. A true and correct copy of the 539 patent is attached
hereto as Exhibit A. On April 30, 2010, the USPTO duly and legally issued United
States Trademark Registration No. 3,776,177 for the mark “Reserve Now. Decide Later.”
This Registration is valid and subsisting. A true and correct copy of the registration
certificate is attached hereto as Exhibit B.
9. The application which became the 539 patent was filed May 5, 2008.
10. The inventions described and claimed in the 539 patents were conceived
of at least as early as March 1998.
11. The inventors diligently reduced to practice the described and claimed
inventions of the 539 patent.
12. The inventors of the Smart Options system pioneered the concepts
described and claimed in the 539 patent.
13. On information and belief, conception of the inventions claimed in the 539
patents predates those claimed by anyone else.
14. In The Ticket Reserve, Inc. v. OptionIt, Inc. (09-cv-7375), the United
States District Court for the Northern District of Illinois broadly construed claim 1 of the
539 patent to cover options on all goods and services that are not regulated by a
government agency.
15. According to 35 U.S.C. § 282, the 539 patent is presumed valid. The 539
patent is also enforceable.
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16. Smart Options complies with the marking provisions of 35 U.S.C. § 287.
V. CAUSE OF ACTION
INFRINGEMENT OF THE 539 PATENT
17. SmartOptions hereby re-alleges and incorporates by reference the
allegations set forth in paragraphs 1 through 16.
17. In this judicial district and throughout the United States, T2F and T2FU,
through their website, offer for sale and sell options to sporting events. Ticket2Final calls
these electronic options “Ticket Reservations.” According to their website a Ticket
Reservation
is a commitment given to you for the right (but not the obligation) to
buy a ticket at face value, in case your favorite team will qualify to
sports’ final events. When you purchase a Ticket Reservation, youget the ability to purchase the ticket(s) at face value, once your
favorite team has qualified to the sports’ final event. For example, if
you reserve seats for “team X”, and “team X” eventually qualifies into the Final, then you have the right (but not the obligation) to buy a
ticket at face value.
Exhibit C, http://www.ticket2final.com/FAQ. As also stated on the Ticket2Final site: “If
your team fails to qualify in to the Final, your reservation will then expire and you will
not be entitled to purchase the tickets. In this case, you will not have to pay the full cost
of the ticket (but you will not be refunded with the Reservation Fee).” Id. “The
reservation price is dynamic and calculated based on many constant and variable
parameters, such as time of purchase, quality of the team etc.” Id. “In total, you pay the
Reservation Fee + tickets’ official price.” Id.
18. On or about December 20, 2010, T2F filed a patent application with the
USPTO. That application was published on June 16, 2011 as Patent Application Number
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US20110145024 (“T2F Pat. App.”). A true and accurate copy of that publication is
attached hereto as Exhibit D.
19. Figure 5 of the T2F Pat. App. clearly shows that Ticket2Final’s Ticket
Reservation system sells and offers for sale electronic options:
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The specification of the T2F Pat. App. also states that
Further, the T2F specification states:
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19. Upon information and belief, T2F and T2FU’s website has infringed one
or more claims of the 539 patent literally and/or under the doctrine of equivalents. Upon
information and belief, T2F and T2FU’s infringement was willful. T2F’s own patent
application clearly shows that T2F knew of the 539 patent. See Ex. D, T2F Pat. App. at ¶
6.
20. T2F and T2FU’s infringement of the 539 patent has injured Smart
Options, has caused financial and other damage to Smart Options, and will continue to do
so unless enjoined by the Court.
V. CAUSE OF ACTIONINFRINGEMENT OF THE
RESERVE NOW. DECIDE LATER.® MARK
21. SmartOptions hereby re-alleges and incorporates by reference the
allegations set forth in paragraphs 1 through 20.
22. SmartOptions clearly displays its registered marks, including Reserve
Now. Decide Later.®
, on its website www.optionit.com :
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23. On their website, T2F and T2FU uses virtually the same mark, Reserve
Now Decide Later!:
See Exhibit E and http://www.ticket2final.com/.
24. T2F and T2FU’s use of the Reserve Now. Decide Later.®
mark on its
website and related services is unauthorized.
25. Upon information and belief, Defendants’ use of the Reserve Now. Decide
Later.® mark is willful, intentional and with knowledge of Plaintiff’s rights in the mark.
T2F and T2FU’s unauthorized, willful and intentional use of the Reserve Now. Decide
Later.® mark is likely to cause (and/or is causing) confusion, mistake, and deception as to
the origin of the services among the general public.
26. Defendants’ activities constitute willful trademark infringement under
Section 32 of the Lanham Act, 15 U.S.C. § 1114.
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27. SmartOptions has no adequate remedy at law, and if Defendants’ actions
are not enjoined, SmartOptions will continue to suffer irreparable harm to its reputation
and the goodwill of its mark.
V. CAUSE OF ACTION
FALSE DESIGNATION OF ORIGIN (15 U.S.C. § 1125(a))
28. SmartOptions hereby re-alleges and incorporates by reference the
allegations set forth in paragraphs 1 through 27.
29. Defendants’ promotion, marketing, offering for sale, and sale of infringing
services has created and is creating a likelihood of confusion, mistake, and deception
among the general public as to the affiliation, connection, or association with
SmartOptions or the origin, sponsorship, or approval of Defendants’ infringing services
by SmartOptions.
30. By using the Reserve Now. Decide Later.® mark on the infringing site and
related infringing services, Defendants create a false designation of origin and a
misleading representation of fact as to the origin and sponsorship of the infringing
services.
31. Defendants’ false designation of origin and misrepresentation of fact as to
the origin and/or sponsorship of the infringing services to the general public is a willful
violation of Section 43 of the Lanham Act, 15 U.S.C. § 1125.
32. SmartOptions has no adequate remedy at law and, if Defendants’ actions
are not enjoined, SmartOptions will continue to suffer irreparable harm to its reputation
and the goodwill of its the Reserve Now. Decide Later.®
brand.
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VIII. JURY DEMAND
33. Smart Options hereby demands a trial by jury of any and all issues triable
of right by a jury pursuant to the VIIth
Amendment to the Constitution and Rule 38 of the
Federal Rules of Civil Procedure.
VII. PRAYER
Smart Options requests a judgment from this Court including the following:
a. Defendants Ticket2Final, Ltd. and Ticket2Final USA LLC have jointly
and severally, directly and/or indirectly, infringed claims of the 539 patent
either literally or under the doctrine of equivalents;
b. Defendants and their agents, servants, officers, directors, employees, and
all persons acting in concert with it, directly or indirectly, be permanentlyenjoined from infringing the 539 patent;
c. Defendants be ordered to account and pay to Smart Options the damages
to which it is entitled as a consequence of the infringement of the 539
patent including lost profits and/or no less than a reasonable royalty;
d. Damages be trebled for the willful, deliberate, and intentional
infringement by Defendant in accordance with 35 U.S.C. § 284;
e. Declare this case an exceptional case and Smart Options be awarded
prejudgment interest, costs, disbursements, and attorneys' fees herein inaccordance with 35 U.S.C. § 285;
f. Defendants Ticket2Final, Ltd. and Ticket2Final USA LLC have jointly
and severally infringed SmartOptions’ registered trademark and/or haveotherwise violated the Lanham Act;
g. Defendants and their agents, servants, officers, directors, employees, andall persons acting in concert with it, directly or indirectly, be permanently
enjoined from infringing that registered mark and/or using the mark or any
colorable imitation thereof in any manner in connection with the
distribution, marketing, advertising, offering for sale or sale of any servicerelated to tickets;
h. Defendants be ordered to account and pay to Smart Options the damages
to which it is entitled as a consequence of the infringement of the markincluding the profits, lost profits and/or any other available monetary
damages;
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i. Declare this case an exceptional case and Smart Options be awarded
prejudgment interest, costs, disbursements, and attorneys' fees herein in
accordance with 15 U.S.C. § 1117(a) and,
j. Smart Options be awarded such other and further relief as this Court may
deem just and equitable.
Respectfully submitted this 28th day of February 2014.
/s/ Geoffrey A. BakerGeoffrey A. Baker
Smart Options, LLC
600 West Chicago Avenue,
Suite 300NChicago, Illinois 60654
(708) [email protected]