Transcript
IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION REWARDS NETWORK INC., a Delaware corporation, Plaintiff, v. EDO INTERACTIVE, INC., a Delaware corporation, Defendant. ) ) ) ) ) ) ) ) ) ) )
Case No. Jury Trial Demanded
COMPLAINT Plaintiff, Rewards Network Inc. (“Rewards Network”), for its Complaint against Defendant, Edo Interactive, Inc. (“Edo”), seeking damages, injunctive relief, and other relief for patent infringement, alleges as follows: PARTIES 1. Rewards Network is a corporation organized and existing under the laws of the
State of Delaware. Rewards Network has its principal place of business at 2 North Riverside Plaza Suite 200, Chicago, Illinois 60606. 2. On information and belief, Defendant Edo is a corporation organized and existing
under the laws of the State of Delaware. Edo has its principal place of business at 3841 Green Hills Village Drive, Suite 425, Nashville, Tennessee 37215. Edo further maintains an office in Chicago, Illinois.
QB\18119837.1
JURISDICTION AND VENUE 3. This Court has jurisdiction over Rewards Network’s patent infringement claims
under 28 U.S.C. § 1338(a). 4. This Court has personal jurisdiction over Edo because it maintains a physical
office and has committed acts of infringement in this District. 5. Venue is proper in this district pursuant to 28 U.S.C. § 1400(b) because Edo is
subject to personal jurisdiction and has committed acts of patent infringement in this District. COUNT I 6. On April 26, 2011, the United States Patent and Trademark Office issued U.S.
Patent No. 7,933,841 (the “'841 Patent”) entitled System and Method for Providing Consumer Rewards, a copy of which is attached hereto as Exhibit A. The '841 Patent describes and claims a method for providing an automated customer reward program. 7. Patent. 8. Since the issuance of the '841 Patent, Edo has infringed and is still infringing one Rewards Network is the owner of the entire right, title, and interest in the '841
or more claims of the '841 patent by operating its PREWARDS and other privately labeled rewards programs, which embody the patented invention recited in one or more claims of the '841 Patent. 9. Since the issuance of the '841 Patent, Edo has infringed the '841 Patent jointly, in
conjunction with third parties operating under Edo's direction and/or control. Specifically, on information and belief, as a condition for participation in Edo's card-linked offers and/or rewards programs, merchants are contractually obligated to provide credit card transactional information regarding purchases made by Edo customers (e.g., consumers enrolled in Edo's PREWARDS
2
QB\18119837.1
and other privately labeled rewards programs) to a credit card aggregator. Further, on information and belief, for operation of one or more of Edo's privately labeled rewards programs, financial institutions are contractually obligated to receive this credit card transaction information from the credit card aggregator. Accordingly, third parties practice one or more step(s) recited in one or more claims of the '841 Patent under the direction and/or control of Edo. The remaining steps recited in one or claims of the '841 Patent are performed by Edo directly, through the operation of Edo's PREWARDS and privately labeled rewards programs. 10. 11. Edo’s infringement will continue unless enjoined by this Court. On information and belief, Edo’s infringement has been intentional, willful, and
with a reckless disregard for the rights of Rewards Network. 12. Edo has caused Rewards Network to suffer, and unless enjoined by this Court,
will cause Rewards Network to continue to suffer substantial injury, including lost profits, for which Rewards Network is entitled to damages adequate to compensate it for Edo’s infringement. PRAYER FOR RELIEF WHEREFORE, Plaintiff Rewards Network respectfully requests judgment and relief against Edo as follows: A. B. A judgment that Edo has infringed the '841 Patent; An injunction against Edo, its subsidiaries, affiliates, parents, successors,
assignees, officers, agents, servants, employees, and all persons acting in concert or in participation with them, or any of them, permanently enjoining each of them from infringing, contributing to, or inducing the infringement of the '841 Patent;
3
QB\18119837.1
C.
Awarding Rewards Network damages adequate to compensate for Edo’s
infringement of the '841 Patent, but in no event less than a reasonable royalty on Edo’s use of Rewards Network’s invention; D. E. Awarding pre-judgment interest on any damages award; Adjudging that Edo’s infringement of the '841 Patent is willful, and increasing
Edo’s liability for damages up to three times the amount found or assessed; F. Declaring that this is an exceptional case under 35 U.S.C. § 285, and for an award
of increased damages, attorneys’ fees, and costs; and G. Granting such other and further relief as the Court deems just and proper. JURY DEMAND Rewards Network hereby demands trial by jury for all issues so triable. Respectfully submitted, Dated: October 8, 2012 By: s/Richard W. Young Richard W. Young
[email protected] QUARLES & BRADY LLP 300 North LaSalle Street, Suite 4000 Chicago, Illinois 60654 (312) 715-5000 (312) 715-5155 (fax) Michael J. Curley
[email protected] Nikia L. Gray
[email protected] QUARLES & BRADY LLP One South Church Avenue Suite 1700 Tucson, Arizona 85701 (520) 770-8700 (520) 623-2418 fax Attorneys for Plaintiff Rewards Network Inc.
4
QB\18119837.1