case 3:17-cv-03259-mej document 1 filed 06/06/17 page 2 of 34 · 2019. 7. 3. · four embarcadero...
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Case No. SMRH:483109724.1
COMPLAINT FOR INJUNCTIVE RELIEF AND DAMAGES
SHEPPARD, MULLIN, RICHTER & HAMPTON LLP A Limited Liability Partnership Including Professional Corporations
JENNIFER G. REDMOND, Cal. Bar No. 144790 [email protected] PAUL S. COWIE, Cal. Bar No. 250131 [email protected] JOHN-PAUL S. DEOL, Cal. Bar No. 284893 [email protected] Four Embarcadero Center, 17th Floor San Francisco, CA 94111-4109 Telephone: 415.434.9100 Facsimile: 415.434.3947 Attorneys for Defendant META COMPANY
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
META COMPANY, a Delaware corporation,
Plaintiff,
v. ZHANGYI ZHONG (a.k.a. Zhangyi “Johnny” Zhong, a.k.a. Zhangyi “Kevin” Zhong), an individual, DREAMWORLD USA INC., a Delaware corporation, and DOES 1 through 20.
Defendants.
Case No. COMPLAINT FOR INJUNCTIVE RELIEF AND DAMAGES 1. VIOLATION OF DEFEND TRADE SECRETS ACT 2. VIOLATION OF CALIFORNIA UNIFORM TRADE SECRETS ACT 3. BREACH OF WRITTEN CONTRACT 4. BREACH OF THE DUTY OF LOYALTY 5. INTENTIONAL INTERFERENCE WITH CONTRACTUAL RELATIONS 6. VIOLATION OF CAL. BUS. & PROF. CODE SECTION 17200, ET SEQ. DEMAND FOR JURY TRIAL
Case 3:17-cv-03259-MEJ Document 1 Filed 06/06/17 Page 1 of 34
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-1- Case No. SMRH:483109724.1
COMPLAINT FOR INJUNCTIVE RELIEF AND DAMAGES
Plaintiff META COMPANY (“Meta” or “Plaintiff”) alleges as follows against Defendants
ZHANGYI ZHONG, a.k.a. Zhangyi “Johnny” Zhong, a.k.a. Zhangyi “Kevin” Zhong (“Zhong”),
and DREAMWORLD USA, INC., d.b.a. Dreamworld Vision (“Dreamworld”).
PARTIES
1. Meta is a Delaware corporation with its principal place of business located in the
County of San Mateo in the State of California.
2. Upon information and belief, Zhong currently resides in San Mateo County,
California, and has variously represented himself under the names “Johnny” Zhong, and “Kevin”
Zhong.
3. Upon further information and belief, Dreamworld is a Delaware corporation with its
principal place of business located in Millbrae, California. Dreamworld conducts business in
California, throughout the United States, and overseas.
4. Meta also sues fictitious defendants Does 1 through 20 because the true names and
capacities of such Doe defendants are not presently known to it. Meta will amend this Complaint
to allege the true names and capacities of Doe defendants when the true names of such Doe
defendants are determined.
5. Meta is informed and believes that each of the Doe defendants was responsible in
some way for the occurrences and injuries alleged in this Complaint. Meta is informed and believes
that in doing the things alleged in this Complaint, each defendant was acting as an agent, master,
servant, employer, employee, or partner of every other defendant, was acting within the course and
scope of this agency or employment relationship, and was acting with the consent, permission, and
authorization of each of the remaining defendants. Meta is also informed and believes that all
actions of each defendant alleged in this Complaint were ratified and approved by the officers or
managing agents of every other defendant.
JURISDICTION, VENUE, AND INTRADISTRICT ASSIGNMENT
6. This Court has subject matter jurisdiction over Meta’s federal trade secret claim
pursuant to 18 U.S.C. §§ 1836-39 et seq. and 28 U.S.C. § 1331. The Court has supplemental
jurisdiction over the state law claims alleged in this Complaint pursuant to 28 U.S.C. § 1367.
Case 3:17-cv-03259-MEJ Document 1 Filed 06/06/17 Page 2 of 34
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COMPLAINT FOR INJUNCTIVE RELIEF AND DAMAGES
7. Venue is proper in this district under 28 U.S.C. § 1391(b) and (c) based on the
following:
a. Meta is informed and believes that Zhong resides in San Mateo County, California;
b. Meta is also informed and believes that Defendant Dreamworld conducts, engages
in, and carries on business within San Mateo County, California; and
c. The unlawful acts giving rise to Plaintiff’s claims have occurred in San Mateo
County, California and elsewhere.
8. For purposes of intradistrict assignment under Local Rule 3-2, this action should be
assigned on a district-wide basis.
FACTUAL BACKGROUND
I. Overview
9. Evidence in the public domain provides compelling proof that Zhangyi Zhong and
his start-up company, Dreamworld USA, Inc., have shamelessly leveraged Zhong’s sixeen months
of employment at Meta Company to misappropriate confidential and trade secret information
relating to Meta’s technologies, supply chain, manufacturing methods and relationships, as well as
business, investment and market strategies. Through the use of that confidential and trade secret
information, Zhong and Dreamworld have jump-started their development of a prototype augmented
reality device, and are on the verge of launching a campaign to steal what they can from Meta’s
market share and investor base for personal gain.
10. Meta hereby seeks to stop Zhong, its former Senior Optical Engineer, and
Dreamworld from further misappropriating Meta’s confidential and trade secret information in
violation of federal and California state law and from continuing to engage in unfair competition.
Meta further seeks the return of Meta’s trade secrets and confidential information, to stop Zhong
from continuing to violate his ongoing contractual obligations to Meta, to stop Dreamworld from
interfering in those contractual obligations, and for compensation for the transgressions that Zhong,
Dreamworld and their agents have already perpetrated.
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II. Meta is a Leader in the Emerging Augmented Reality Market
11. Meta is a rapidly-growing Silicon Valley technology company that has pioneered
innovative ways to bring augmented reality (“AR”) to a wide range of industries and audiences.
Augmented reality is a technology that utilizes specialized hardware and software components to
superimpose computer-generated digital images onto a user’s view of the real world, thus allowing
the user, in real time, to interpret and manipulate the digital imagery while maintaining his or her
view of the real world. By contrast, virtual reality (“VR”) hardware blocks the user’s view of the
real world and replaces it with a simulated virtual world.
12. Since its founding in 2013, Meta has designed, developed, and brought to market
wearable AR technology products with unique designs based on neuroscience principles. Thanks
to its innovative vision and products, Meta launched a successful Kickstarter campaign in May 2013,
gained acceptance to the prestigious Y-Combinator start-up accelerator in August 2013, raised a
twenty-three million dollar ($23,000,000) Series A funding round in 2015 (led by Horizons
Ventures, Tim Draper, BOE Optoelectronics, and Garry Tan and Alex Ohanian (the founder of
Reddit), with participation from Danhua Capital and others), and raised a fifty-million-dollar
($50,000,000) Series B funding round in 2016 (with participation from Lenovo Corporation,
Horizon Ventures, Tencent, Banyan Capital, Comcast Ventures, and GQY).
13. Meta owes much of its fundraising and marketplace success to its development of an
industry-leading wide field-of-view1 optical engine (the “optical engine”) with highly proprietary
specifications that is both high-quality and inexpensive. This custom off-axis optical engine enables
the user of a Meta device to easily perceive and be immersed in digital content, with which he or
she can interact through Meta’s natural gesture-based user interface (“UI”).
14. The development of Meta’s wide field-of-view optical engine has been driven by
Meta’s confidential analysis of the needs and demands of the nascent AR marketplace. In general
1 The “field of view” of an AR device refers to the percentage of the observable real world over which the device enables a user to perceive overlaid digital content. In other words, the field of view refers to the size of the “window” through which the user of an AR device can see digital content projected by a given optical engine.
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terms, this confidential marketplace analysis is based in part on lessons Meta learned from the
launch and sales of the Meta 1 Development Kit (the “Meta 1”). Launched in 2014, the Meta 1 was
built largely from off-the-shelf hardware components and was hindered by a small field of view,
which limited the usefulness of that device in the eyes of Meta’s customers. Through customer
feedback, it became clear that developing an inexpensive, wide field-of-view optical engine in-
house that would allow users to seamlessly interact with 3D models and other content would provide
Meta with a significant competitive advantage. With this goal in mind, in late 2014, Meta launched
an extensive, lengthy and complex research and development effort to create such an optical engine.
15. For over three years, Meta has been developing its custom off-axis optical engine,
which is comprised of many specialized components. In general terms, at the heart of the optical
engine is a highly-proprietary, transparent curved optical lens (the “optical element”). The convex
and concave surfaces of the optical element are coated with a series of custom films (the “coatings”)
that give the optic both reflective and transmissive properties. The optical element is coupled to a
high-performance display (the “display”), which projects high-resolution digital content that is
reflected into the eye of user by the optical element. The position and orientation of the optical
element and the display are precisely determined to ensure that the digital imagery projected by the
display is efficiently directed into an “eye box” engineered to represent the anatomy of the majority
of potential users. The display is configured to render imagery according to software that pre-warps
the digital content according to a complex mathematical algorithm (the “rendering software”) to
correct distortions introduced by the curvature of the optical element, and to allow the user to
perceive the digital content clearly and with proper proportionality. Researching, developing, and
prototyping these novel components – individually and collectively as a system – has been an
extraordinary effort, requiring the combined efforts of dozens of Meta hardware, software, and
optical engineers over the three years it has taken to develop the optical engine.
16. Additionally, due to the immaturity of the technologies required to create AR
experiences, Meta has dedicated a great deal of resources to developing a proprietary global
manufacturing and supply chain needed to affordably produce its optical engine and other custom
components in its AR device. The sourcing and production of the components or services acquired
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from a worldwide and diverse set of suppliers and vendors has required significant research,
development, customization, and oversight by Meta personnel. For example, Meta was required to
design and build a custom optical lens to use with an off-the-shelf depth sensor, enabling Meta’s
hands and environmental tracking software to properly function. The depth sensor itself also needed
significant customization to perform according to Meta’s functionality requirements. Additionally,
Meta has been required to keep engineering personnel on-staff at its contract manufacturer to
overcome the many challenges encountered during prototype builds of its AR hardware due to
unfamiliarity with AR technologies. For every success in the face of the foregoing challenges, Meta
has encountered multiple intractable design, functionality and/or cost impediments – and as such,
Meta regards its specialized knowledge and experience regarding the capabilities, sources and costs
associated with its manufacturing and supply chain as highly valuable and proprietary information.
17. These custom technologies (sourced and developed from Meta’s trade secret supply
chain) are incorporated into Meta’s current flagship product: the Meta 2 Development Kit (the
“Meta 2”). The Meta 2 is comprised of a wearable AR head-mounted display and accompanying
software development kit (“SDK”), which supplies a user with the core technology and tools
necessary to create AR experiences for the Meta 2. In addition to Meta’s proprietary wide field-of-
view optical engine, the Meta 2 features specialized sensors and complex computer vision software
that allow a user to touch, grab, move, and manipulate the digital content intuitively and naturally,
as if that content were physically present in the user’s field of view.
18. Meta’s success in developing an affordable wide field-of-view optical engine have
made it one of the three leaders in the emerging AR space (along with Microsoft Corporation and
Magic Leap, another venture-backed start-up). Meta’s success in this regard is made apparent by
comparing field of view and price metrics with other AR devices presently in the market. For
example, the field of view of the Meta 2’s optical engine is over twice as large as the competitive
Microsoft Hololens device (ninety (90) degrees for the Meta 2, versus less than forty (40) degrees
for the Hololens), while being offered for pre-order at one-third of the price of the Hololens. Magic
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Leap has yet to release a product into the market, primarily due to difficulties miniaturizing and
productizing its AR technologies.2
19. For these reasons – among others – the Meta 2 debuted to great fanfare at the
TED2016 Conference, was named “Best New Wearable Technology Device” at the Wearable USA
2016 conference, was named “Best in Show” at the SIGGRAPH 2016 conference and exposition,
and was recognized as “Best in Show” at the 2017 Augmented World Expo.
20. Beyond the industry awards and recognitions enumerated above, the appeal and
utility of Meta’s proprietary wide field-of-view off-axis optical engine has been broadly recognized
in the press and media as providing a strong competitive advantage to Meta in the AR marketplace.
For example, in a January 6, 2017 article, noted technology publication The Verge stated that the
Meta 2’s 90-degree field of view “blows the Hololens (and any other augmented reality I’ve seen)
away.”3 Tom’s Guide made similar assertions in a March 14, 2017 article, in which the author
compared the Meta 2 with the Hololens as follows: “[T]he biggest difference between the two
systems is the quality of the images rendered in augmented reality. Boasting a wide 90-degree field
of view (compared to Hololens' 40 degrees), during my brain dem[o], it looked like I was staring up
at a galaxy of twinkling stars, which were in actuality electricity-firing neurons. Thanks to [the
Meta 2’s] 2560 x 1440 resolution, I could clearly see the glowing veins and folds that make up the
organ. In another demo, I could see strands of the presenter’s hair.”4 Engadget made the same
claims (“The Meta 2 also feels like a more complete AR experience, compared to the HoloLens.
The big reason for that: It features a wide 90-degree field of view, whereas the HoloLens only offers
2 Nick Statt, Magic Leap is actually way behind, like we always suspected it was, THE VERGE (Dec. 8, 2016, 7:16 PM), https://www.theverge.com/2016/12/8/13894000/magic-leap-ar-microsoft-hololens-way-behind. 3 Adi Robertson, Meta’s augmented reality glasses look ridiculous, but they’re ridiculously comfortable, THE VERGE (Jan. 6, 2017, 11:38 AM), https://www.theverge.com/ces/2017/1/6/14187780/meta-2-augmented-mixed-reality-headset-hands-on-ces-2017. 4 Sherri Smith, Meta 2 is the Augmented Reality of Tomorrow, Today, TOM’S GUIDE (Mar. 14, 2017, 9:06 PM), http://www.tomsguide.com/us/meta-2,news-24662.html.
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a thin 30-degree field-of-view.”),5 as has Forbes (“Unlike my experience with the Meta 2 glasses . .
the HoloLens experience feels more like seeing through a letterbox video monitor . . . The lack of a
wide field of view damaged the HoloLens' ability to create the illusion that holograms are “real”
objects. The field of view makes the edges of the illusion noticeable, even distracting. . . . [U]p until
now, my experience with Meta 2 is far and away the winner - an experience I found truly immersive
and awesome.”).6
21. Further refinements of Meta’s wide field-of-view optical engine are slated to be
incorporated into future Meta products. For example, Meta has developed advanced versions of the
Meta 2 optical engine that have an even wider field of view, reduce the eye strain that a user may
experience when using the device for extended periods of time, and have a smaller form factor than
the Meta 2. It has taken Meta over two years to develop its advanced optical engines and to identify
and secure a reliable supply chain to procure all necessary components. Meta has also conducted
confidential evaluations into powering its next generation AR devices by a mobile device rather
than a powerful desktop or laptop computer, another key differentiator in the AR marketplace.
22. In addition to its refinement of the optical engine featured in the Meta 2, Meta’s
optical engineering team is constantly experimenting with cutting-edge technologies to develop
next-generation optical engines.
III. Zhong Undertook Contractual Obligations to Protect Meta Trade Secrets and
Confidential Information when he Accepted Meta’s Offer of Employment
23. Meta offered Zhong a position as Senior Optical Engineer on or about March 22,
2015 (the “Employment Agreement”). See Exhibit A; Employment Agreement. At the time Zhong
received the Employment Agreement, he was employed by General Electric as an optical engineer
in Schenectady, New York, and had no previous experience with AR.
5 Devindra Hardawar, A closer look at the Meta 2 AR headset, ENGADGET (Mar. 12, 2017), https://www.engadget.com/2017/03/12/meta-2-ar-headset/. 6 Steven Rosenbaum, Microsoft's Big HoloLens Bet Falls Flat, FORBES (Mar. 10, 2016, 3:00 PM), https://www.forbes.com/sites/stevenrosenbaum/2016/03/10/microsofts-big-hololens-bet-falls-flat/#4e76a3eb6e77.
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24. Zhong’s Employment Agreement included a standard Confidential Information and
Invention Assignment Agreement that Meta requires all its incoming employees to review and
execute as a condition of Meta’s offer of employment. See Exhibit B; Confidential Information
and Invention Assignment Agreement (“CIIAA”).
25. Among other things, the Employment Agreement (Exhibit A) offered to Zhong
contained the following terms and conditions to Meta’s offer of employment:
“In connection with your employment by the Company and in consideration of your entry into the Company’s Confidential Information and Inventions Agreement . . . you will be granted an equity-based incentive;” and
“Because of the nature of your responsibilities with the Company, it is very important that there be an orderly transition at the time your employment terminates. Accordingly, you agree to provide the Company with at least 10 working days’ notice (i.e. days you perform work for the Company) prior to terminating your employment.”
26. Among other things, the CIIAA offered to Zhong contained the following terms and
conditions to Meta’s offer of employment:
“During the [Employment] Relationship, I will devote my entire best business efforts to the interests of the Company and will not engage in other employment or in any activities detrimental to the best interests of the Company without the prior written consent of the Company;” (CIIAA, Section 2);
“I agree, at all times during the term of the Relationship and thereafter, to hold in strictest confidence, and not to use, except for the benefit of the Company to the extent necessary to perform my obligations to the Company under the Relationship, and not to disclose to any person, firm, corporation or other entity, without written authorization from the Company in each instance, any Confidential Information that I obtain, access or create during the term of the Relationship, whether or not during working hours, until such Confidential Information becomes publicly and widely known and made generally available through no wrongful act of mine or of others who were under confidentiality obligations as to the item or items involved:” (CIIAA, Section 3(a));
“I further agree not to make copies of such Confidential Information except as authorized by the Company;” (Id.);
“I agree that I will promptly make full written disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and hereby assign to the Company, or its designee, all my right, title and interest throughout the world in and to any and all Company Inventions and all patent, copyright, trademark, trade secret and other intellectual property rights therein;” (CIIAA, Section 4(d));
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“I agree to keep and maintain adequate and current written records of all Company Inventions made or conceived by me (solely or jointly with others) during the term of the Relationship;” (CIIAA, Section 4(e));
“[A]t the time of termination of the Relationship, I will deliver to the Company (and will not keep in my possession, recreate or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, laboratory notebooks, materials, flow charts, equipment, other documents or property, or reproductions of any of the aforementioned items developed by me pursuant to the Relationship or otherwise belonging to the Company, its successors or assigns;” (CIIAA, Section 5);
“In the event of the termination of the Relationship, I agree to sign and deliver the ‘Termination Certification’ . . . however, my failure to sign and deliver the Termination Certification shall in no way diminish my continuing obligations under this Agreement;” (CIIAA, Section 6);
“I acknowledge and agree that the Company’s Confidential Information includes information relating to the Company’s employees, consultants, customers and others, and that I will not use or disclose such Confidential Information except as authorized by the Company;” (CIIAA, Section 8);
“I acknowledge that the Company has valuable Trade Secrets . . . to which I will have access during the term of the Relationship;” (CIIAA, Section 8(b)); and
“I agree that during the term of the Relationship . . . I will not, other than on behalf of the Company and except as a passive investor in less than 5% of the securities of a publicly-held company, directly or indirectly own, manage, operate, control, conduct, or engage in, or participate in the ownership, management, operation, or control of, serve as an officer, director, shareholder, partner, employee, agent, consultant, joint venturer, independent contractor, advisor, developer, or in any similar capacity with, or have any financial interest in or aid or assist anyone else in the conduct of, any Competitive Enterprise.” (CIIAA, Section 8(c)).
27. Zhong duly executed both his Employment Agreement and the CIIAA on March 22,
2015. See Exhibits A and B. Zhong represented that he had “no inventions, improvements, or
original works to disclose” as of the date of execution. See “Exhibit 1” to the CIIAA (Exhibit B).
28. Zhong’s employment with Meta commenced on April 9, 2015.
IV. Meta Diligently Protects the Secrecy of its Confidential and Trade Secret Information
29. Meta takes the secrecy of its confidential and trade secret information very seriously,
and has implemented a variety of legal, logistical, physical and electronic protections for such
information.
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30. During Zhong’s employment, Meta’s offices moved to a new location. On April 9,
2015, the day that Zhong’s employment with Meta commenced, Meta’s offices were located in a
large private home located in Portola Valley, California. In December 2015, Meta moved its offices
to a commercial building in Redwood City, California, where the Company was located at the time
of Zhong’s abrupt resignation in July 2016.
31. After Zhong resigned, Meta moved its offices to its current location: a commercial
building located in San Mateo, California.
32. During the period of Zhong’s employment and all times thereafter, access to Meta’s
offices has been limited to employees and secured by key and lock and/or electronic keycard access.
33. Additionally, during the period of Zhong’s employment and all times thereafter,
visitors to Meta’s offices have been required to electronically sign a non-disclosure agreement
(“NDA”) in the waiting/entrance area before entering any non-public areas. Thereafter, visitors are
accompanied through Meta’s offices by a host employee, and are escorted out of the office upon
completion of business activities.
34. During the period of Zhong’s employment and all times thereafter, visitors have not
been permitted to freely access areas in which hardware design and prototype activities – including
optical engine design and prototyping – are taking place without being covered by a non-disclosure
agreement (entered into personally at the door, or by the visitor’s employer prior to arrival).
Exceptions to this NDA requirement must be approved by the Meta Legal Department.
35. In addition to these precautions, during the period of Zhong’s employment and all
times thereafter, especially-sensitive areas of Meta’s offices have been and are protected by
additional security measures. This includes the office areas in which engineers engage in optical
design and prototyping. For example, in the Redwood City and San Mateo offices, the optical
research and development lab was (and is) protected by an additional keycard access panel, and any
individual employee desiring entry privileges was (and is) required to receive advance approval
from the Meta Legal Department.
36. During the period of Zhong’s employment and all times thereafter, Meta has strictly
limited access to Company computer systems, mobile devices, email accounts, data storage
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repositories and networks. All such resources are required to be password protected, and are subject
to other protective measures. Permissions to access data repositories (both local and cloud-based)
can be moderated and limited based on the sensitivity of the information, and require IT approval
before being shared with any external party. Repositories containing highly confidential
information (e.g., optical engine design files and research data) are inaccessible to the general
employee population by default.
37. During the period of Zhong’s employment and all times thereafter, an employee’s
failure to abide by these strictures could result in disciplinary action.
38. During the period of Zhong’s employment and all times thereafter, Meta has imposed
strict, contractual confidentiality requirements on any external entity that has received a prototype
Meta 2 device (e.g., under an NDA, Alpha or Beta Testing Agreement, or both).
V. Zhong’s Role with Meta Provided Him with Wide Access to Confidential and Trade
Secret Information relating to Meta’s Technologies and Business Strategies
39. Before Zhong abruptly resigned from his employment at Meta Company in July
2016, his role as Senior Optical Engineer placed him at the center of Meta’s critical optical research
and development efforts, provided him with access to Meta’s confidential product and business
strategies, involved him in architecting and prototyping various proprietary AR hardware
configurations, required him to engage regularly with potential suppliers and manufacturers under
NDA to build Meta’s supply chain, and engaged him in the development and refinement of Meta’s
investment and marketing strategies.
40. Through the performance of these responsibilities, Zhong became the de facto “Head
of Optics” at Meta. He developed, worked with and had full access to a large body of highly-
valuable trade secrets and confidential information that stretched across the entirety of Meta
Company’s business and operations.
41. One of Zhong’s primary responsibilities was to design, prototype and realize the
affordable, wide field-of-view off-axis optical engine that Meta had set out to build after completing
its confidential analysis of the AR market’s needs. Zhong was given unfettered access Meta’s
keycard-restricted optical research and development lab, which contains Meta’s optical engine
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prototypes and demos – and had authority to request that other Meta employees be given access to
that lab.
42. Zhong regularly participated in briefings and received information from the Meta
executive team on customer profiles and business strategies that were intended to guide the creation
of Meta’s off-axis optical engine. Zhong worked closely and regularly with Meta’s executive team
to generate and refine the confidential product specifications for that optical engine given changing
assessments of market demands.
43. Under that direction, Zhong guided the Meta optical engineering team’s efforts to
develop and optimize:
The curvature and industrial design of Meta’s proprietary off-axis optical
elements to achieve the desired wide field of view and flat focal plane;
The configuration of coatings for those off-axis optical elements necessary to
achieve the required transparency and reflectivity of the optical elements, as well
as to mitigate negative “cross-talk” in the optical engine7;
The performance requirements and specifications of the display used in the
optical engine, including the size and number of displays to incorporate into the
optical engine;
The orientation of the optical element vis-à-vis the display within the optical
engine to maximize field of view and flatten the focal plane of the optical engine;
and,
The rendering software required to pre-warp the digital content and correct
distortions introduced by the curvature of the optical element.
44. Zhong also played a key role in researching, developing and prototyping potential
iterations of Meta’s highly-confidential “next generation” optical engine projects.
7 Negative “cross talk” occurs in an off-axis AR optical engine when: (1) the left eye can see light rays that are intended for the right eye (and vice versa); and (2) light reflects off of surfaces of the optical element that are not properly curved and coated to reflect that light directly into the user’s eyes. These effects can inhibit the user’s ability to form a fused stereo image when using the device.
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45. Zhong’s involvement in these projects led to the creation of a large body of
proprietary intellectual property. While Meta has applied for (and in some cases, obtained) patent
protection for certain broad aspects of its technology, the precise implementations of the custom
off-axis optical engine, hardware and software technologies, along with its supply chain,
manufacturers and manufacturing methods, market analyses, and investment strategies, are not
disclosed in patent applications or issued patents, and instead constitute Meta’s confidential,
proprietary and trade secret information. Furthermore, not only did Zhong’s guidance of Meta’s
optical engineering program provide him with knowledge of novel designs and prototypes that
achieved Meta’s goals with respect to affordability and wide field-of-view, but his work at Meta
also provided him with exposure to designs, approaches and materials that did not achieve those
goals (also known as “negative know how”).
46. By way of example, at the outset of Zhong’s employment at Meta, members of the
Company’s optical engineering team provided him with a set of design specifications for multiple
potential iterations of Meta’s off-axis optical engine. These specifications proposed several
potential curvatures for the optical element, along with the use of different display sizes and stereo
overlaps that were under evaluation at that time. Zhong spent the first several months of his
employment at Meta evaluating the viability of these potential configurations, winnowing out
designs and combinations of elements that failed to meet performance requirements.
47. Zhong was deeply involved in the design and prototyping of potential optical engine
configurations for Meta’s planned products beyond the Meta 2. Specifically, from approximately
May 2015 through his departure from Meta in July 2016, Zhong led efforts to develop advanced
off-axis optical engines. Zhong created written reports evaluating potential configurations for
advanced off-axis optical engines, and oversaw the creation of several hardware prototypes of the
most promising configurations. For example, in November 2015, Zhong authored and circulated
internally a confidential report outlining his development of an off-axis optical engine that utilized
two displays and a novel display/optical element configuration to achieve a one-hundred and two
(102) degree field-of-view and a flatter focal plane than the Meta 2 optical engine.
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48. Zhong was also regularly engaged in the evaluation and selection of the materials
and components needed to manufacture Meta’s proprietary off-axis optical engine, and assisted with
the development of the supply chain to acquire those specialized materials and components from
vendors and suppliers around the world. Zhong and others engaged in lengthy back-and-forth
discussions with potential manufacturers and suppliers to determine which of them was capable of
supplying or manufacturing the components in Meta’s optical engine to the required technical
specifications – a complex, iterative process that took many months and required the efforts of
numerous engineers. Through those activities, Zhong generated and had access to Meta’s
confidential analyses of the technical and production capabilities of specific vendors and suppliers.
He also obtained valuable and time saving information about which vendors and suppliers were
incapable of meeting the technical needs associated with the manufacture of an wide field-of-view
optical engine (e.g., more negative know how).
49. Zhong’s senior role within Meta further required him to collaborate closely with
hardware and software engineers developing other components of the technology stack integrated
into Meta’s augmented reality devices. For example, Zhong participated in the design of Meta’s
custom depth sensor lens. In so doing, Zhong had access to confidential and trade secret information
related to Meta’s hands tracking and gesture recognition software and product requirements, as well
as confidential and trade secret information related to Meta’s simultaneous localization and mapping
(“SLAM”) technology (sometimes referred to as “tracking” software) and product requirements.8
SLAM software is generally considered to be among the most complex and closely-guarded
elements of the AR technology stack.
50. Zhong also had access to confidential information related to the engineering and
product requirements associated with Meta’s proprietary rendering software, as Zhong worked with
software engineers to define display requirements and reduce latency in Meta’s rendering pipeline.
8 SLAM software analyzes data collected by an AR device’s sensor array to map the user’s environment and fix digital objects to a location within that environment, as well as to reorient those digital objects based on the user’s movement within that environment.
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51. Zhong was privy to the confidential internal evaluations that Meta performed into
powering next generation AR devices by a mobile device rather than a powerful desktop or laptop
computer.
52. Zhong participated in several critical meetings with investors and/or potential
acquiring entities prior to his abrupt resignation in July 2016. In so doing, Zhong had access to
Meta’s highly confidential investment and market strategies with respect to both Meta’s current and
next generation products, as well as to confidential feedback and proprietary insight into the
technologies and market strategies in which investors and acquirers found attractive (or not, more
negative know how).
53. By his own public admission, Zhong had access to Meta’s confidential and trade
secret information in all of the aforementioned areas.9
VI. Zhong Abruptly Resigns from Meta under False Pretenses and Goes Undercover
54. On July 21, 2016, Zhong emailed his direct manager and Meta’s Human Resources
staff and informed them that he was resigning from his employment at Meta, effective the following
day (i.e., July 22, 2016). In that message, Zhong attributed his decision to resign to “some old
medical conditions which need serious attention now. My doctor suggests avoid [sic] any work
activities.” Zhong further represented that he had decided, in light of this medical advice, “. . . to
take a break and stop working for a while.”
55. In abruptly resigning from his final position as Manager, Optical Engineering at
Meta, Zhong breached his contractual obligation to provide at least ten (10) working days’ notice
prior to terminating his employment.
9 Zhangyi Zhong, LINKEDIN, https://www.linkedin.com/in/zhangyizhong/ (last visited Jun. 6, 2017) (listing Zhong’s job responsibilities at Meta to be the following: “Design the Meta 2 Augmented Reality optical engine with 90 degree Field of View; Led optical and psychophysics research for current and future products (multiple patents filed); Built and managing [sic] a productive engineering and research team; Invent customized optical testing method for Quality Assurance; Manage vendors to ensure high rate[s] of yield and cost control during high volume manufacturing; Deliver technical reviews during investment pitch and due diligence; [and] closed 50 million USD funding round from top tier investors (Tencent, Lenovo, Horizons Ventures, etc.)”).
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56. Nonetheless, Meta’s employees responded in good faith to Zhong’s representation
of the basis for his resignation, expressing concern for his wellbeing. For example, upon learning
of Zhong’s supposed health problems, Meta’s Human Resources Manager reached out to Zhong by
e-mail, telling him, “I'm really worried about you. Please give me a call (or come see me if you are
in) and let's talk. Let me know if there's anything we can do to help.”
57. When the Human Resources Manager succeeded in meeting with Zhong on July 22,
2016 – Zhong’s last day at Meta – he presented Zhong with Meta’s standard Termination
Certification, the execution of which upon termination was a condition of Zhong’s acceptance of
employment at Meta. See Exhibit A.
58. The Termination Certification, among other things, acknowledges that the signatory:
(1) has returned “any devices, records, data, notes, reports, proposals, lists, correspondence,
specifications, drawings, blueprints, sketches, laboratory notebooks, flow charts, materials,
equipment, other documents or property, or copies or reproductions of any aforementioned items
belonging to Meta”; (2) has complied with all the terms of the CIIAA; (3) acknowledges his or her
continuing obligations under the CIIAA; (4) agrees “to preserve as confidential all trade secrets,
confidential knowledge, data or other proprietary information” to which he or she is exposed while
at Meta; and (5) acknowledges that Meta “has valuable trade secrets to which he had access during
his employment.” Zhong failed to execute and return the required Termination Certification.
59. At that time, Meta accepted Zhong’s proffered reasoning for his resignation – i.e.,
serious health concerns – in good faith and did not follow up or take other action in response to
Zhong’s failure to sign the Termination Certificate.
60. Until May 2017, Meta had no knowledge of Zhong’s whereabouts or activities
subsequent to his departure, nor did Meta have any reason to suspect that Zhong was
misappropriating its trade secret or confidential information or breaching his agreements with Meta.
61. However, Meta is now informed and believes that Zhong’s explanation for his abrupt
departure from Meta – his health concerns - was a pretext to provide cover for his intention to
misappropriate Meta confidential and trade secret information to develop a competitive AR device,
and to personally profit from doing so.
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62. Meta’s suspicions with respect to Zhong’s post-employment activities were first
raised on May 9, 2017. That day, UploadVR – a web-based forum that publishes information and
news on AR and VR technologies and content – published an article reviewing a wide field-of-view
AR device (the “DreamGlass”) under development by “new Chinese startup” Dreamworld Vision
(the “UploadVR Article”). See Exhibit C (PDF Printout of UploadVR Article, “Dreamworld Is
Making AR Glasses That Connect To Your Phone For Under $350,” available at
https://uploadvr.com/thes-ar-glasses-connect-smartphones-keep-prices-350/).
63. In its article, UploadVR described two DreamGlass prototypes that it was shown by
a Dreamworld representative. While the article did not publish images of the Dreamworld
prototypes, UploadVR stated that “[t]he DreamGlass seems to use a Meta-esque optics system that
places the screens at an angle above the lenses. The light from the screens then reflects down onto
the lenses to create AR overlays in a wide FOV effect.” Id. (also noting that the Dreamworld
DreamGlass has “a similar reflection system” to the Meta 2 device).
64. The noted similarity between the prototype Dreamworld device and the Meta 2 led
Meta to conduct an initial investigation into the background of Dreamworld and its employees. That
investigation revealed that Dreamworld was incorporated in Delaware on June 22, 2016, and that it
applied to do business in California under the name “Dreamworld Vision” on July 19, 2016. The
signatory on the California filing is Qiuyan Jiang (“Jiang”), who was represented as Dreamworld’s
Chief Executive Officer at that time.
65. Meta’s investigation also revealed that, on September 2, 2016, Dreamworld filed a
Statement of Information with the California Secretary of State, on which Dreamworld disclosed it
would engage in the business of “Research and Development of Electronics” and listed one
“Zhangyi Zhong” as its “Chief Executive Officer,” with Jiang newly designated as Dreamworld’s
“Secretary” and “Chief Financial Officer”. The signature of “Zhangyi Zhong” appears on
Dreamworld’s September 2, 2016 California filing.
66. Meta is informed and believes that the “Zhangyi Zhong” listed in Dreamworld’s
September 2, 2016 filing is the same Zhangyi Zhong who was formally employed by Meta as its
Senior Optical Engineer. For example, the “Zhangyi Zhong” signature on the September 2, 2016
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filing is identical to Zhong’s signature on patent assignment documentation executed on Meta’s
behalf during Zhong’s employment. Furthermore, a picture available online of the “Zhangyi Zhong”
who is CEO of Dreamworld, published by CES Asia in anticipation of Zhong’s appearance on a
June 9, 2017 panel held at that conference, confirms the similarities in appearance between that
individual and the Zhong who worked for Meta.
67. Meta is further informed and believes that Jiang acted as Zhong’s agent when he or
she filed to incorporate Dreamworld in Delaware on June 22, 2016 – one month before Zhong
resigned from his position at Meta. On information and belief, Jiang has no experience working in
AR technology, nor is Jiang a full-time Dreamworld employee – but is instead a full-time Tax
Manager employed in the San Francisco office of Price Waterhouse Cooper. Additionally, on
information and belief, Zhong attended graduate school at Indiana University at the same time as
Jiang, and Meta is informed and believes that Zhong and Jiang are either husband and wife or
boyfriend and girlfriend, and have lived together in New York, Indiana, Los Angeles, Palo Alto,
and South San Francisco. In Dreamworld’s September 2, 2016 California filing, Zhong and Jiang
are reported to share the address “512 Keoncrest Dr., Unit 2” in South San Francisco, California.
That same filing lists Dreamworld’s address as “501 Broadway #744” in Millbrae, California.
VII. Publicly-Available Evidence Demonstrates that Zhong, Dreamworld and Does 1-20
Have Misappropriated Confidential and Trade Secret Information from Meta to Jump
Start Their Development of a Competitive AR Device
68. Analysis of publicly-available information provides compelling evidence that
Zhong, Dreamworld and Does 1-20 intentionally misappropriated Meta’s confidential and trade
secret information and used it to jump start the development, production and sale of the DreamGlass
AR device, potentially in violation of state and federal criminal law, that Zhong breached his duty
of loyalty to Meta and his ongoing contractual obligations as a former Meta employee, that
Dreamworld interfered with those contractual obligations, and that Zhong and Dreamworld engaged
in unfair competition.
69. As noted in Paragraphs 62-63 above, the author of the UploadVR article repeatedly
compared the wide field-of-view DreamGlass prototypes that he was shown by Dreamworld to the
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proprietary optical engine utilized by the Meta 2 device. See Exhibit C. Since the publication of
the UploadVR article, Dreamworld has claimed on its website (available at
http://www.dreamworldvision.com/ - a URL that is itself a derivation of Meta’s website address,
www.metavision.com), that the field of view of the DreamGlass is approximately 100 degrees.
Meta is informed and believes, based on Meta’s years of research and development into creating a
wide field-of-view optical engine – in which Zhong played an integral part – that there is no means
by which Zhong and Dreamworld could have designed and created a prototype of a wide field-of-
view off-axis optical engine with a $350 price point within a less than one-year development period
unless they used both Meta’s affirmative trade secrets and its negative know how.
70. This conclusion is evidenced by an analysis of the preliminary renderings of the
DreamGlass device that were first made available on Dreamworld’s website on May 26, 2017. The
optical engine in these renderings strongly resembles the prototype optical engines developed by
Meta optical engineers during Zhong’s tenure at Meta, including the 102-degree field of view optical
engine designed by Zhong in November 2015. Meta’s creation and refinement of its off-axis wide
field-of-view optical engines has taken over 3 years of intensive research and development by
multiple Meta optical engineers – including Zhong, who led those efforts during his employment at
Meta. It is highly implausible that Dreamworld and Zhong could have developed an off-axis optical
engine with a similar field of view in one-third of the time without Zhong’s knowing misuse of the
confidential and proprietary experimentation that he and others performed at Meta (such as
combinations of potential optical curvatures, display technologies, coatings on the optical element
and rendering algorithms).
71. The conclusion that the DreamGlass was developed through the misappropriation of
Meta trade secret information is further evidenced by Dreamworld’s admission that the DreamGlass
optical engine is driven by the use of a “[d]edicated high-resolution display for each eye.” Zhong
designed an off-axis optical engine in November 2015 that utilized two displays (one for each eye)
to achieve a 102-degree field of view – a design that was subsequently refined and embodied in
several prototypes created while Zhong was employed at Meta. As stated above, it took Meta over
two years to develop these advanced optical engines and to identify and secure a reliable supply
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chain to procure the components necessary to produce them; by all appearances, Zhong and
Dreamworld have leveraged that confidential and trade secret information to generate an optical
engine with similar capabilities in less than half of the time.
72. Dreamworld has publicly stated its intention to offer the DreamGlass device for sale
for $350 by the end of 2017. Any effort to achieve such an aggressive price point on such an
aggressive schedule compared to all other AR headsets on the market must be supported by an
extremely well-developed and well-executed supply chain, as well as a sophisticated manufacturing
and quality assurance process. Meta has spent years developing the relationships with vendors and
suppliers that are necessary to acquire the various technologies and components necessary to build
and offer the Meta 2 at an affordable price point – not to mention the implementation of the custom
manufacturing processes required to create and test the various components of that device. Zhong
was intimately involved in the development of this confidential trade secret information – and once
again, by all appearances, he and Dreamworld have stolen that proprietary information and taken
advantage of the negative know associated with the trial and error approach to developing Meta’s
supply chain and manufacturing methods, with the goal of creating a product that took Meta years
of trial and error to prototype in a fraction of the time, with a fraction of the effort.
73. In another example, the optical elements depicted in renderings of the DreamGlass
device consist of two separate optical elements held in a separate chassis from the transparent visor
that wraps around them, as opposed to the apparent optical architecture of the Meta 2 device, which
combines the optical elements into a single visor to form a unitary optical element/visor component.
Upon information and belief, this Dreamworld design is derived from and based on findings made
by members of the Meta optical engineering team – including Zhong – concerning trade-offs that
could be used to manufacture a cheaper optical engine. The width and size of the chassis that holds
the two optical elements also appears to be optimized to reduce the effects of any negative “cross-
talk” introduced by the optical engine – another design feature in the Dreamworld device that was
prototyped by members of the Meta optical engineering team – including Zhong – and likely
incorporates the confidential learnings from those prototypes.
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74. The renderings of the DreamGlass device, along with various other statements made
on Dreamworld’s website and to UploadVR, strongly suggest that Zhong and Dreamworld have
also misappropriated Meta confidential and trade secret information relating to other critical
components of the technology stack needed to generate a functional AR device or may do so
imminently. For example, renderings provided on the Dreamworld website depict a number of
sensors present on the front-facing brow of the DreamGlass device. Based on Dreamworld’s
demonstration of rudimentary “positional tracking” functionality to UploadVR, (See Exhibit C), as
well as videos that Dreamworld has posted on YouTube purporting to exhibit its device’s tracking
capabilities,10 Dreamworld has designed these sensors to – among other things – collect data that is
processed by SLAM software that is run by a processor connected to the device. Additionally,
UploadVR reported that Dreamworld demonstrated rudimentary hands tracking functionality,
represented by the device’s apparent recognition of a “quack quack” selection gesture. (See Exhibit
C). Dreamworld has published videos on YouTube purporting to show its hands tracking and
gesture recognition capabilities.11 As an optical engineer, Zhong had no technical experience with
either of these highly complex computer vision technologies before commencing his employment
at Meta, leading to the obvious conclusion that he has once again misappropriated and leveraged his
knowledge and exposure to Meta’s confidential, proprietary and trade secret SLAM and hands
tracking/gesture recognition software and product requirements to jump start Dreamworld’s product
on these fronts.
75. Meta is confident that it will identify evidence of Zhong’s and Dreamworld’s
misappropriation of other elements of confidential and trade secret information related to its
hardware and software products that have been incorporated into the DreamGlass device once it is
10 Positional Tracking with DreamWorld DreamGlass, YOUTUBE (May 9, 2017), https://www.youtube.com/watch?v=6IC8qxbAEI0&index=3&list=PL3Y8B3b23.EovpmU6Uz6jxmMcWgWZFUnMQ. 11 Dreamworld Glass - AR Object Manipulation, YOUTUBE (May 9, 2017), https://www.youtube.com/watch?v=-HpPcJSRo7s.
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able to closely inspect and analyze actual prototypes and designs for that device, in addition to the
renderings and videos that Dreamworld has currently made available online.
76. Furthermore, Meta is greatly concerned and strongly suspects that Zhong and
Dreamworld are implementing its market penetration strategy, a strategy developed by Meta’s
executive team and shared with Zhong during his employment at Meta – the details of which Meta
continues to regard as a trade secret. By all appearances, Zhong and Dreamworld have decided that
they can execute that strategy better than Meta, and misappropriated Meta’s confidential and
proprietary engineering, manufacturing and supply chain information to jump start their attempt do
so.
77. Zhong and Dreamworld have held DreamGlass out as being built from their own
proprietary technology, that they alone have developed. They have represented DreamGlass as the
only AR headset with a 100 degree field of view and natural hand gestures. Zhong and Dreamworld
have therefore falsely and fraudulently held out to the public that DreamGlass is an entirely new
product that has no relationship to any of its competitor’s previous products or prototypes.
78. Furthermore, on information and belief, Zhong has taken steps to disguise his identity
and involvement in Dreamworld. From approximately April 9, 2015, until his abrupt departure from
Meta on July 22, 2016, Zhong told Meta employees that he also went by the nickname “Johnny.”
However, upon information and belief, since his departure from Meta and involvement with
Dreamworld, Zhong has changed his nickname to “Kevin,” presumably to hide the fact that he was
the same individual as the former Meta employee “Johnny” Zhong. Additionally, Zhong has not
updated his otherwise complete and detailed LinkedIn profile with information on his new position
as CEO at Dreamworld – a move that can only be interpreted as an attempt to reinforce his stated
reasons for his departure from Meta in July 2016.
79. In so doing, Zhong and Dreamworld have engaged in activity that may rise to the
level of violation not only the civil statutes listed herein, but also criminal statutes such as Cal. Pen.
Code § 499c and 18 U.S.C. § 1832.
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VIII. Meta Has Suffered and Is Continuing to Suffer Irreparable Harm
80. Meta believes in free and fair competition in the augmented reality marketplace,
respects the innovative products created by its legitimate competitors, and hopes that all of its
employees – past and present – achieve great career and personal success.
81. However, Meta also takes the confidentiality of its trade secrets and proprietary
technical, strategic and business information very seriously. Evidence in the public domain clearly
shows that Zhong and Dreamworld have misused and are likely to continue to misuse Meta’s
confidential and trade secret information to target Meta’s current and future base of customers,
investors and potential employees. And while the DreamGlass product is still in its infancy, Meta
has suffered irreparable harm by Zhong’s and Dreamworld’s brazen theft of its trade secret and
confidential information – and stands to suffer additional irreparable harm should this ongoing theft
not be remedied by this court.
82. For example, Zhong and Dreamworld have already taken efforts to undercut Meta’s
position in the AR marketplace. They have developed at least two prototypes of their nascent
DreamGlass device, and have invited press coverage from UploadVR. This activity was obviously
intended to raise awareness of Dreamworld and its product, and immediately generated comparisons
to the Meta 2 device. On information and belief, Zhong and Dreamworld fully intend to continue
and even ramp up their development of the DreamGlass and their campaign to publicize that device,
and presumably, will continue to avoid correcting comparisons between the Meta 2 and their
facsimile of Meta’s technologies.
83. Zhong and Dreamworld have chosen CES Asia as their next venue to publicize their
existence and device, and to attempt to attract customers, investors and potential employees. CES
Asia – an offshoot of the enormous and popular CES exposition held each year in Las Vegas – is
set to take place from June 7, 2017 to June 9, 2017. Per the CES Asia brochure on its website,
Zhong will be presenting at CES China on a panel discussing innovations in AR and VR on behalf
of Dreamworld, and Dreamworld will have a booth offering demos of DreamGlass. The potential
for Zhong’s and Dreamworld’s presence at conferences like CES Asia and in related press may
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COMPLAINT FOR INJUNCTIVE RELIEF AND DAMAGES
result in an even temporary degradation of Meta’s status as an AR pioneer and market leader would
cause irreparable harm.
84. On information and belief, Zhong and Dreamworld intend to continue their use of
Meta confidential and trade secret information at CES Asia and in other venues to solicit pre-orders
for the DreamGlass device. Dreamworld’s website has a “Pre-Order” tab, and features entry fields
where interested customers can input their names and contact information to receive “email” and
“the latest news” from Dreamworld. The possibility that Dreamworld’s solicitations might damage
goodwill towards Meta in the market and lure away current and future customers who might
otherwise be attracted to the Meta 2 constitutes irreparable harm.
85. On information and belief, Zhong and Dreamworld are attempting to raise additional
capital from investors to continue to build DreamGlass and their company, writ large; their presence
at CES Asia is intended to garner the attention of potential Chinese investors. The passage of each
day that Zhong and Dreamworld are left free to raise capital from investors and further develop their
AR device on the back of confidential and trade secret information stolen from Meta causes
irreparable harm. Such activities may unfairly prejudice the investment community with respect to
Meta’s status as a leader in the AR marketplace, and may draw investment capital away from Meta
and into Dreamworld. While Meta has achieved great technological and market success, it is still a
start-up entity that is dependent on periodic injections of venture capital to continue its growth –
and is therefore especially sensitive to disruptions in its reputation in the investment community.
Finally, on information and belief, Zhong and Dreamworld are actively recruiting talented and
specialized hardware and software engineers to join Dreamworld as full-time employees. For
example, Dreamworld appears to maintain a recruiting website that, as of the filing of this
Complaint, lists several open positions for which Dreamworld is actively accepting applications.12
Should Zhong and Dreamworld be permitted to continue these recruiting efforts along with their
12 See Work at Dream World, https://angel.co/dream-world/jobs (last visited Jun. 6, 2017) (listing open positions for (1) computer vision engineer; (2) Android developer; and (3) Android software architect).
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misappropriate of Meta confidential and trade secret information, it is possible that these valuable
hires (or even current employees) may be drawn away from Meta, causing irreparable harm.
FIRST CAUSE OF ACTION
Misappropriation of Trade Secrets Under the Defend Trade Secrets Act,
18 U.S.C. § 1836, et seq.
(Against All Defendants)
86. Meta hereby incorporates by reference Paragraphs 11 through 53, 60 through 76, and
78 through 85 as though fully set forth herein.
87. Meta owns and possesses certain trade secret information, such as various iterations
and prototypes of off-axis optical engines; inside knowledge of novel designs and prototypes
addressing affordability and wide field-of-view of those optical engines; negative know how such
as designs, approaches, and materials that did not achieve Meta’s goals; information about Meta’s
supply chain, manufacturers and manufacturing methods, Meta’s investor, business and market
strategies; and other key Meta trade secrets as described in Paragraphs 45-52 above.
88. Meta’s confidential, proprietary, and trade secret information relates to products
used, sold, shipped and/or ordered in, or intended to be used, sold, shipped and/or ordered in,
interstate or foreign commerce.
89. Meta has at all times maintained stringent security measures to preserve the secrecy
of its trade secrets. For example, Meta restricts access to confidential and proprietary trade secret
information to only those who “need to know.” All networks and databases hosting Meta’s
confidential and proprietary information have at all times required passwords and for access.
Computers, tablets, and cell phones provided to Meta employees are password protected and subject
to other security measures. Meta secures its physical facilities by restricting access and then
monitoring actual access with security cameras. All employees promise to maintain the
confidentiality of Meta’s trade secrets and confidential information through the execution of CIIAA
documentation similar to Zhong’s agreement. Similarly, all visitors to Meta’s headquarters are
required to sign a non-disclosure agreement before entering any areas outside of Meta’s
lobby/waiting area. Furthermore, in order to access certain sensitive data and rooms containing that
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data, Meta makes use of keys or keycard access panels, to which only a certain few, select
employees have access. Zhong was one of those employees.
90. Due to Meta’s security measures, Meta’s confidential and proprietary trade secret
information is not available for others in the AR technology space to use through any legitimate
means.
91. Meta’s confidential, proprietary, and trade secret information derives independent
economic value from not being generally known to, and not being readily ascertainable through
proper means by, any other individuals who could obtain economic value from the disclosure or use
of its information.
92. In violation of Meta’s rights, Defendants misappropriated and threaten to continue
to misappropriate Meta’s confidential, proprietary, and trade secret information in the improper and
unlawful manner as alleged herein. Defendants’ misappropriation and threatened misappropriation
of this information was intentional, knowing, willful, malicious, fraudulent, and oppressive.
93. On information and belief, if Defendants are not enjoined, Defendants will continue
to misappropriate and use Meta’s trade secret information for their own benefit and to Meta’s
detriment as alleged in Paragraph 72 through 76.
94. As the direct and proximate result of Defendants’ conduct, Meta has suffered and
will continue to suffer severe competitive harm, irreparable injury, and significant damages, in an
amount to be proven at trial. Because Meta’s remedy at law is inadequate, Meta seeks, in addition
to damages, temporary, preliminary, and permanent injunctive relief to recover and protect its
confidential, proprietary, and trade secret information and to protect other legitimate business
interests. Meta’s business operates in a very competitive market and will continue to suffer
irreparable harm absent injunctive relief as alleged in Paragraphs 80 through 86 above.
Meta has been damages by the conduct described herein and is therefore entitled to an award of
exemplary damages and attorney’s fees.
///
///
///
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SECOND CAUSE OF ACTION
Misappropriation of Trade Secrets Under the California Uniform Trade Secrets Act,
Cal. Civ. Code § 3426.1, et seq.
(Against All Defendants)
95. Meta hereby incorporates by reference Paragraphs 11 through 53, 60 through 76, and
78 through 94 as though fully set forth herein.
96. Meta owns and possesses certain trade secret information, as alleged above in its
First Cause of Action. This information has actual or potential independent economic value from
not being generally known to the public or other persons who could obtain economic value from its
disclosure and/or use.
97. Meta has undertaken efforts that are reasonable under the circumstances to maintain
the secrecy of the trade secrets at issue. These efforts include, but are not limited to, the use of
passwords to protect data on its computers, and servers, the use of a CIIAA that emphasizes all
employees’ duties to maintain the secrecy of Meta’s confidential information, and the use of non-
disclosure agreements to require vendors, partners, contractors, and visitors to Meta’s headquarters
to maintain the secrecy of Meta’s confidential and trade secret information.
98. Defendants knew or should have known under the circumstances that the information
misappropriated by Defendants were trade secrets.
99. Defendants misappropriated and threaten to continue to misappropriate trade secrets
at least by acquiring trade secrets with knowledge of or reason to know that the trade secrets were
acquired by improper means, and Defendants are using and are threatening to use the trade secrets
acquired by improper means without Meta’s knowledge and/or consent.
100. As a direct and proximate result of Defendants’ conduct, Meta is threatened with
injury and has been injured in an amount that will be proven at trial. Meta has also incurred, and
will continue to incur, additional damages, costs, and expenses, including attorney’s fees, as a result
of Defendants’ misappropriation. As a further proximate result of the misappropriation and use of
Meta’s trade secrets, Defendants were unjustly enriched.
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101. The aforementioned acts of Defendants were willful, malicious, and fraudulent.
Meta is therefore entitled to exemplary damages under Cal. Civ. Code § 3426.3(c).
102. Defendants’ conduct constitutes transgressions of a continuing nature for which Meta
has no adequate remedy at law. Unless and until enjoined and restrained by Court order, Defendants
will continue to retain and use Meta’s trade secrets to enrich themselves and divert business away
from Meta. Pursuant to Cal. Civ. Code § 3426.2, Meta is entitled to an injunction against the
misappropriation and continued threatened misappropriation of trade secrets as alleged herein and
further asks the Court to restrain Defendants from using all trade secret information misappropriated
from Meta and to return all trade secret information to Meta.
103. Pursuant to Cal. Civ. Code § 3426.4 and other provisions of law, Meta is entitled to
an award of attorney’s fees for Defendants’ misappropriation of trade secrets.
THIRD CAUSE OF ACTION
Breach of the Duty of Loyalty
(Against Zhong)
104. Meta hereby incorporates by reference Paragraphs 11 through 23 and 54 through 59
as though fully set forth herein.
105. By virtue of his employment with Meta, Defendant Zhong owed Meta a duty of
loyalty.
106. The California Labor Code provides, “An employee who has any business to transact
on his own account, similar to that entrusted to him by his employer, shall always give the preference
to the business of the employer.” Cal. Lab. Code § 2863. Furthermore, “everything which an
employee acquires by virtue of his employment, except the compensation which is due to him from
his employer, belongs to the employer, whether acquired lawfully or unlawfully, or during or after
the expiration of the term of his employment.” Cal. Lab. Code § 2863.
107. Zhong breached his duty of loyalty by, among other things, setting up a competitive
company through an agent while employed by Meta, failing to disclose that he was engaged in a
competitive business while employed as Meta’s Senior Optical Engineer and then misrepresenting
to Meta the reasons for his abrupt resignation on one day’s notice.
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108. As a direct result of Zhong’s breach of his duty of loyalty, Meta has been damaged,
and will continue to be damaged, in an amount to be proven at trial.
109. Zhong’s breach of his duty of loyalty was accomplished in part through fraud, and
was done with malice and oppression, thereby entitling Meta to an award of punitive damages.
FOURTH CAUSE OF ACTION
Breach of Written Contract
(Against Zhong)
110. Meta hereby incorporates by reference Paragraphs 11 through 109 as though fully
set forth herein.
111. Defendant executed his Employment Agreement and CIIAA, attached hereto
respectively as Exhibits A and B.
112. Meta upheld all of its obligations under the terms of the Employment Agreement and
the CIIAA by, among other things, employing Zhong and providing him with access to its
confidential, proprietary and trade secret information.
113. Zhong breached his Employment Agreement by failing to provide 10 days’ notice
prior to his resignation.
114. Upon information and belief, Zhong breached his obligations under the CIIAA by,
among other things, (1) disclosing Meta’s confidential, proprietary, and trade secret information to
Dreamworld and its employees; (2) using Meta’s confidential, proprietary, and trade secret
information to create a competing product; (3) copying Meta’s confidential, proprietary, and trade
secret information for his own use; (4) engaging in employment or other activities with Dreamworld;
(5) failing to keep and maintain adequate and current written records of all Company Inventions he
made or conceived; (6) failing to deliver to the Company any and all devices, records, data, notes,
reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, laboratory
notebooks, materials, flow charts, equipment, other documents or property, or reproductions of any
of the aforementioned items developed by him pursuant to his employment relationship or otherwise
belonging to the Company; (7) failing to sign and deliver the Termination Certification to Meta
upon his resignation; (8) participating in the ownership, management, operation, and/or control of,
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and/or serving as an officer, director, shareholder, partner, employee, agent, consultant, joint
venturer, independent contractor, advisor, developer, or in a similar capacity with Dreamworld; and
(9) assisting in the conduct of Dreamworld, a direct competitor of Meta.
115. As a direct and proximate result of Zhong’s breach of his Employment Agreement
and the CIIAA, Meta has been damaged in an amount to be proven at trial.
FIFTH CAUSE OF ACTION
Intentional Interference with Contractual Relations
(Against Dreamworld)
116. Meta hereby incorporates by reference Paragraphs 11 through 28 as though fully set
forth herein.
117. Meta and Zhong were parties to the CIIAA, attached hereto as Exhibit B.
118. The CIIAA is a valid and binding agreement that (1) prevents Zhong from disclosing
Meta’s confidential information, (2) requires Zhong to devote his entire best business efforts to the
interests of Meta; (3) and prohibits Zhong from engaging in other employment or in any activities
detrimental to the best interests of the Company.
119. Upon information and belief, Dreamworld had knowledge of the fact that Meta and
Zhong were parties to the CIIAA and had knowledge of the terms of the same.
120. Despite its knowledge that Zhong was bound by the CIIAA, Meta intentionally and
knowingly induced Zhong to breach his agreement by disclosing Meta’s confidential information to
Dreamworld and/or its agents, by devoting his business efforts toward the interests of Dreamworld,
and by undertaking employment or other activities in support of Dreamworld that were detrimental
to the interests of Meta, as prohibited by the CIIAA, Exhibit B.
121. By engaging in the activities mentioned in this cause of action, Zhong breached the
provisions of his CIIAA.
122. As a direct result of Dreamworld’s illegal conduct, Meta has been damaged, and will
continue to be damaged, in an amount to be proven at trial.
123. Dreamworld’s conduct was carried out with malice and oppression, thereby entitling
Meta to an award of punitive damages.
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SIXTH CAUSE OF ACTION
Violation of Bus. & Prof. Code § 17200, et seq.
(Against All Defendants)
124. Meta hereby incorporates by reference Paragraphs 11 through 23 and 76 as though
fully set forth herein.
125. Defendants engaged in fraudulent business practices in violation of the California
Business and Professions Code. Such acts and practices include, but are not limited to, Defendants’
falsely holding out Dreamworld’s products to be their own and uniquely developed by Dreamworld.
126. Defendants’ practices were fraudulent in that a reasonable person would likely be
deceived by their material misrepresentations and omissions.
127. Meta has been harmed as a result of Defendants’ fraudulent business practices. Meta
is entitled to (a) recover restitution, including, without limitation, all benefits that Defendants
received as a result of their fraudulent practices, and (b) an injunction restraining Defendants from
engaging in further acts of unfair competition.
PRAYER FOR RELIEF
WHEREFORE, Meta Company prays for judgment against Defendants Zhangyi Zhong,
Dreamworld USA, Inc., and Does 1 through 20, jointly and severally, as follows:
A. A judgment in Meta Company’s favor against Defendants on all causes of action;
B. Preliminary and permanent injunctive relief enjoining Defendants, as well as their
agents, and all persons in active concert and participation with any of them, from, directly or
indirectly, obtaining, accessing, using, retaining, or disclosing any of Meta’s confidential,
proprietary, and/or trade secret information;
C. Preliminary and permanent injunctive relief requiring Defendants to return Meta’s
confidential, proprietary, and/or trade secret information—including proprietary information that
Meta owns pursuant to the CIIAA — in forensically sound fashion, preserving all metadata;
D. Preliminary and permanent injunctive relief requiring Defendants to refrain from
selling any products that incorporate in any way proprietary technology that Zhong worked on while
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employed by Meta or that incorporate technology that is derived from work that Defendant did while
employed by Meta;
E. An award of compensatory damages to Meta in an amount to be proven at trial;
F. Punitive damages against Defendants;
G. Meta’s reasonable attorney’s fees, costs, and expenses incurred in connection with
this action;
H. Prejudgment interest on any monetary award made part of the judgment against
Defendant; and
I. Any additional relief this Court deems equitable and just.
Dated: June 6, 2017
SHEPPARD, MULLIN, RICHTER & HAMPTON LLP
By /s/ Jennifer G. Redmond
JENNIFER G. REDMOND PAUL S. COWIE
JOHN-PAUL S. DEOL
Attorneys for META COMPANY
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JURY DEMAND
Meta hereby asserts its right to a trial by jury and demands a jury trial on all causes
of action so triable. Meta will tender any required jury fee.
Dated: June 6, 2017
SHEPPARD, MULLIN, RICHTER & HAMPTON LLP
By /s/ Jennifer G. Redmond
JENNIFER G. REDMOND PAUL S. COWIE
JOHN-PAUL S. DEOL
Attorneys for META COMPANY
Case 3:17-cv-03259-MEJ Document 1 Filed 06/06/17 Page 34 of 34
EXHIBIT A
Case 3:17-cv-03259-MEJ Document 1-1 Filed 06/06/17 Page 1 of 4
1
Meta Company 495 Old Spanish Trail
Portola Valley, CA 94028
March 22, 2015
Zhangyi Zhong _________________________ _________________________ Dear Zhangyi, On behalf of Meta Company (the “Company”), I would like to thank you for your dedication to a product which will change the way people interact with the world and with computers. Based on your accomplishments, I am pleased to offer you a position as Senior Optical Engineer. This letter serves to memorialize the terms of the Company’s offer of employment to you.
1. Start Date. Your employment will commence on April 9, 2015 (the “Start Date”).
2. Duties. Your initial position of Senior Optical Engineer is a full time position, and you will initially report to CTO Ray Lo. As such, you will be required to devote at least 40 hours per week to the Company’s business, with the specific scheduling of your work to be determined by mutual agreement.
1. Compensation.
(a) The Company will pay you a monthly salary of (which is equivalent to an annualized salary of . Salary will be paid in accordance with the Company’s then-standard payroll practices (i.e. weekly or bi-weekly).
(b) In connection with your employment by the Company and in consideration of your entry into the Company’s Confidential Information and Inventions Agreement (as described in Paragraph 7 below), subject to the approval of the Company’s Board of Directors, you will be granted a equity-based incentive as described on Exhibit A hereto.
2. Vacation. During the Term of your employment, you will be entitled to 14 days paid vacation or sick time.
3. Insurance. The Company will provide you with the opportunity to participate in the standard benefits plans currently available to other similarly situated employees, including medical, dental, and vision, subject to any eligibility requirements imposed by such plans.
4. Taxes. You acknowledge that under the federal and state tax laws the Company may be required to withhold certain amounts otherwise payable under this Offer Letter, but that the Company is not responsible for any of your tax obligations whether arising under this Offer Letter or otherwise.
5. Expenses. The Company will reimburse you for reasonable and necessary out-of-pocket expenses incurred by you in the performance of your duties hereunder, and subject to the Company’s then-applicable policy regarding reimbursable expenses. The Company’s current policy requires that you present the expense ahead of time to the CEO and request reimbursement, and then to receive a verbal or written agreement from the CEO that he will add the itemized expense to the company Expense Sheet.
6. Term; Termination. Your employment by the Company is on an at-will basis, meaning that your employment can be terminated with or without cause or notice, at any time, at the option of either you or the Company. Because of the nature of your responsibilities with the Company, it is very important that there be an orderly transition at the time your employment terminates. Accordingly, you agree to provide the Company with at least 10 working days’ notice (i.e. days you perform work for the Company) prior to terminating your employment. You further agree to work in good faith with the Company during any transition period associated with a termination of your employment in order to facilitate a migration of your work and responsibilities to others, including, as applicable, any coding or other technical work with which you may be involved. The Company may require that this transition work be performed at the Company’s facilities even if you typically work remotely
4211 Court Royale, Apt 8Schenectady,NY, 12304
Case 3:17-cv-03259-MEJ Document 1-1 Filed 06/06/17 Page 2 of 4
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7. Confidential Information & Inventions. Concurrently herewith and as a condition to your employment by the Company, you must execute and deliver to the Company the Company’s Confidential Information & Inventions Agreement, the form of which is attached hereto as Exhibit B.
8. Miscellaneous. This Offer Letter may not be modified or amended except in writing executed by the duly authorized representatives of the parties. This Offer Letter constitutes the entire understanding of the parties with respect to the subject matter hereof, and supersedes all prior proposals and agreements, written or oral, and all other communications between the parties relating to the subject matter of this Offer Letter.
In accepting the Company’s offer of employment you are acknowledging that you have no contractual or other restrictions on your right to join the Company’s employ. Additionally, your acceptance will be deemed your acknowledgment that you will not bring with you to the Company any confidential or otherwise proprietary information from your current or any other employer or use such information in connection with your duties at the Company.
Unless otherwise agreed in writing by both parties, this Offer Letter must be executed and returned to the Company no later than 12:00 PM Pacific Time on March 23, 2015. If you fail to execute and deliver the executed copy of this Offer Letter to the Company by such date, the offer of employment set forth herein shall automatically expire and be of no further force or effect.
* * * Please acknowledge your acceptance of the foregoing in the space provided below. Meta Company
By:__________________ Meron Gribetz Chief Executive Officer
ACKNOWLEDGED AND AGREED AS OF THE DATE FIRST WRITTEN ABOVE _________________________ Zhangyi Zhong Date: _________________________
Case 3:17-cv-03259-MEJ Document 1-1 Filed 06/06/17 Page 3 of 4
Exhibit A
Equity-based Incentive Award
Subject to the approval of the Company’s Board of Directors, you will be granted an option to purchase 6,000 of the Company’s common stock (the “Common Stock”). In addition, subject to the approval of the Company’s Board of Directors, you will be granted an option to purchase an additional 2,000 of the Company’s common stock conditional upon satisfactory performance on the Galileo 1 product, indicated by (1) the timely shipping of required number of units, and (2) approval of the CEO, Meron Gribetz. Such option (the “Option”) will have an exercise price equal to the fair market value on the date it is granted, as determined by the Company’s Board of Directors. The Option will vest in equal quarterly tranches over 4 years, with a 12-month cliff with the first 6,000 Option beginning vesting from the Start Date, and the second 2,000 Option (if approved per the requirements above), begin vesting from the date of successful completion of the stated requirements. No shares will vest after the termination, for any reason, of your employment with the Company. In the event that you fail to perform any transition work associated with a termination of your employment to the reasonable satisfaction of the Company, the Company may elect to terminate vesting as of the date, which is 6 months prior to the date on which your employment terminates. The Option will be memorialized in a separate written agreement at the time of the grant and will be issued pursuant to and subject to the terms of the Company’s stock option or other incentive award plan as then in effect.
Case 3:17-cv-03259-MEJ Document 1-1 Filed 06/06/17 Page 4 of 4
EXHIBIT B
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Exhibit B Confidential Information and Inventions Agreement
META COMPANY 495 Old Spanish Trail
Portola Valley, CA 94028
CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENT
Employee Name: Zhangyi Zhong
Date: March __, 2015
As a condition of my becoming employed (or my employment being continued) by Meta Company, a Delaware corporation, or any of its current or future subsidiaries, affiliates, successors or assigns (collectively, the “Company”), and in consideration of my employment with the Company and my receipt of the compensation now and hereafter paid to me by the Company, I agree to the following:
1. Relationship. This Confidential Information and Invention Assignment Agreement (this “Agreement”) will apply to my employment relationship with the Company. If that relationship ends and the Company, within a year thereafter, either reemploys me or engages me as a consultant, I agree that this Agreement will also apply to such later employment or consulting relationship, unless the Company and I otherwise agree in writing. Any such employment or consulting relationship between the parties hereto, whether commenced prior to, upon or after the date of this Agreement, including during the organizational phase of the Company, is referred to herein as the “Relationship.”
2. Duties. I will perform for the Company such duties as may be designated by the Company from time to time or that are otherwise within the scope of the Relationship and not contrary to instructions from the Company. During the Relationship, I will devote my entire best business efforts to the interests of the Company and will not engage in other employment or in any activities detrimental to the best interests of the Company without the prior written consent of the Company.
3. Confidential Information
(a) Protection of Information. I understand that during the Relationship, the Company intends to provide me with information, including Confidential Information (as defined below), without which I would not be able to perform my duties to the Company. I agree, at all times during the term of the Relationship and thereafter, to hold in strictest confidence, and not to use, except for the benefit of the Company to the extent necessary to perform my obligations to the Company under the Relationship, and not to disclose to any person, firm, corporation or other entity, without written authorization from the Company in each instance, any Confidential Information that I obtain, access or create during the term of the Relationship, whether or not during working hours, until such Confidential Information becomes publicly and widely known and made generally available through no wrongful act of mine or of others who were under confidentiality obligations as to the item or items involved. I further agree not to make copies of such Confidential Information except as authorized by the Company.
(b) Confidential Information. I understand that “Confidential Information” means information and physical material not generally known or available outside the Company and information and physical material entrusted to the Company in confidence by third parties. Confidential Information includes, without limitation: (i) Company Inventions (as defined below); and (ii) technical data, trade
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secrets, know-how, research, product or service ideas or plans, software codes and designs, algorithms, developments, inventions, patent applications, laboratory notebooks, processes, formulas, techniques, biological materials, mask works, engineering designs and drawings, hardware configuration information, agreements with third parties, lists of, or information relating to, employees and consultants of the Company (including, but not limited to, the names, contact information, jobs, compensation, and expertise of such employees and consultants), lists of, or information relating to, suppliers and customers (including, but not limited to, customers of the Company on whom I called or with whom I became acquainted during the Relationship), price lists, pricing methodologies, cost data, market share data, marketing plans, licenses, contract information, business plans, financial forecasts, historical financial data, budgets or other business information disclosed to me by the Company either directly or indirectly, whether in writing, electronically, orally, or by observation.
(c) Third Party Information. My agreements in this Section 3 are intended to be for the benefit of the Company and any third party that has entrusted information or physical material to the Company in confidence.
(d) Publication and Social Media. I understand that, without limiting my general obligations under this Agreement, publication of any Confidential Information through social media or in blogs, speeches, articles or interviews must be approved in advance by the Company in writing.
(e) Other Rights. This Agreement is intended to supplement, and not to supersede, any rights the Company may have in law or equity with respect to the protection of trade secrets or confidential or proprietary information.
4. Ownership of Inventions
(a) Inventions Retained and Licensed. I have attached hereto, as Exhibit 1, a complete list describing with particularity all Inventions (as defined below) that, as of the Effective Date, belong solely to me or belong to me jointly with others, and that relate in any way to any of the Company’s actual or proposed businesses, products, services, or research and development, and which are not assigned to the Company hereunder; or, if no such list is attached, I represent that there are no such Inventions at the time of signing this Agreement.
(b) Use or Incorporation of Inventions. If in the course of the Relationship, I use or incorporate into a product, process or machine any Invention not covered by Section 4(d) of this Agreement in which I have an interest, I will promptly so inform the Company. Whether or not I give such notice, I hereby irrevocably grant to the Company a nonexclusive, fully paid-up, royalty-free, assumable, perpetual, worldwide license, with right to transfer and to sublicense, to practice and exploit such Invention and to make, have made, copy, modify, make derivative works of, use, sell, import, and otherwise distribute such Invention under all applicable intellectual property laws without restriction of any kind.
(c) Inventions. I understand that “Inventions” means discoveries, developments, concepts, designs, ideas, know how, improvements, inventions, trade secrets and/or original works of authorship, whether or not patentable, copyrightable or otherwise legally protectable. I understand this includes, but is not limited to, any new product, machine, article of manufacture, biological material, method, procedure, process, technique, use, equipment, device, apparatus, system, compound, formulation, composition of matter, design or configuration of any kind, or any improvement thereon. I understand that “Company Inventions” means any and all Inventions that I may solely or jointly author, discover, develop, conceive, or reduce to practice during the period of the Relationship, except as otherwise provided in Section 4(g) below. Any Invention authored, discovered, developed conceived or reduced to practice by me during the 6 month period following the termination of the Relationship for any reason, whether with or without cause, will be deemed to fall within the definition of “Company Inventions” unless proven by me to have been first authored, discovered, developed conceived or reduced following such termination and without the use of any Confidential Information.
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(d) Assignment of Company Inventions. I agree that I will promptly make full written disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and hereby assign to the Company, or its designee, all my right, title and interest throughout the world in and to any and all Company Inventions and all patent, copyright, trademark, trade secret and other intellectual property rights therein. I hereby waive and irrevocably quitclaim to the Company or its designee any and all claims, of any nature whatsoever, that I now have or may hereafter have for infringement of any and all Company Inventions. I further acknowledge that all Company Inventions that are made by me (solely or jointly with others) within the scope of and during the period of the Relationship are “works made for hire” (to the greatest extent permitted by applicable law) and are compensated by my salary. Any assignment of Company Inventions includes all rights of attribution, paternity, integrity, modification, disclosure and withdrawal, and any other rights throughout the world that may be known as or referred to as “moral rights,” “artist’s rights,” “droit moral,” or the like (collectively, “Moral Rights”). To the extent that Moral Rights cannot be assigned under applicable law, I hereby waive and agree not to enforce any and all Moral Rights, including, without limitation, any limitation on subsequent modification, to the extent permitted under applicable law.
(e) Maintenance of Records. I agree to keep and maintain adequate and current written records of all Company Inventions made or conceived by me (solely or jointly with others) during the term of the Relationship. The records may be in the form of notes, sketches, drawings, flow charts, electronic data or recordings, laboratory notebooks, or any other format. The records will be available to and remain the sole property of the Company at all times. I agree not to remove such records from the Company’s place of business except as expressly permitted by Company policy which may, from time to time, be revised at the sole election of the Company for the purpose of furthering the Company’s business. I agree to deliver all such records (including any copies thereof) to the Company at the time of termination of the Relationship as provided for in Sections 5 and 6.
(f) Patent and Copyright Rights. I agree to assist the Company, or its designee, at its expense, in every proper way to secure the Company’s, or its designee’s, rights in the Company Inventions and any copyrights, patents, trademarks, mask work rights, Moral Rights, or other intellectual property rights relating thereto in any and all countries, including the disclosure to the Company or its designee of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments, recordations, and all other instruments which the Company or its designee shall deem necessary in order to apply for, obtain, maintain and transfer such rights, or if not transferable, waive and agree not to enforce any and all such rights, and in order to assign and convey to the Company or its designee, and any successors, assigns and nominees the sole and exclusive right, title and interest in and to such Company Inventions, and any copyrights, patents, mask work rights or other intellectual property rights relating thereto. I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers shall continue during and at all times after the end of the Relationship and until the expiration of the last such intellectual property right to expire in any country of the world. I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney-in-fact, to act for and in my behalf and stead to execute and file any such instruments and papers and to do all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance or transfer of letters patent, copyright, mask work and other registrations related to such Company Inventions. This power of attorney is coupled with an interest and shall not be affected by my subsequent incapacity.
(g) Exception to Assignments. Subject to the requirements of applicable state law, if any, I understand that the Company Inventions will not include, and the provisions of this Agreement requiring assignment of inventions to the Company do not apply to, any invention which qualifies fully for exclusion under the provisions of applicable state law, if any, attached hereto as Exhibit 2. In order to assist in the determination of which inventions qualify for such exclusion, I will advise the Company promptly in writing, during and after the term of the Relationship, of all Inventions solely or jointly conceived or developed or reduced to practice by me during the period of the Relationship.
5. Company Property; Returning Company Documents. I acknowledge and agree that I have no expectation of privacy with respect to the Company’s telecommunications, networking or
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information processing systems (including, without limitation, files, e-mail messages, and voice messages) and that my activity and any files or messages on or using any of those systems may be monitored or reviewed at any time without notice. I further agree that any property situated on the Company’s premises and owned by the Company, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice. I agree that, at the time of termination of the Relationship, I will deliver to the Company (and will not keep in my possession, recreate or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, laboratory notebooks, materials, flow charts, equipment, other documents or property, or reproductions of any of the aforementioned items developed by me pursuant to the Relationship or otherwise belonging to the Company, its successors or assigns.
6. Termination Certification. In the event of the termination of the Relationship, I agree to sign and deliver the “Termination Certification” attached hereto as Exhibit 3; however, my failure to sign and deliver the Termination Certification shall in no way diminish my continuing obligations under this Agreement.
7. Notice to Third Parties. I agree that during the periods of time during which I am restricted in taking certain actions by the terms of this Agreement (the “Restriction Period”), I shall inform any entity or person with whom I may seek to enter into a business relationship (whether as an owner, employee, independent contractor, or otherwise) of my contractual obligations under this Agreement. I also understand and agree that the Company may, with or without prior notice to me and during or after the term of the Relationship, notify third parties of my agreements and obligations under this Agreement. I further agree that, upon written request by the Company, I will respond to the Company in writing regarding the status of my employment or proposed employment with any party during the Restriction Period.
8. Solicitation of Employees, Consultants and Other Parties. As described above, I acknowledge and agree that the Company’s Confidential Information includes information relating to the Company’s employees, consultants, customers and others, and that I will not use or disclose such Confidential Information except as authorized by the Company. I acknowledge Company has invested and will continue to invest substantial time, money and resources in the development and retention of its Confidential Information, consultants, customers, and others. I further acknowledge that any and all “goodwill” associated with any such customer belongs exclusively to the Company, including but not limited to goodwill created as a result of direct or indirect contacts or relationships between me and any employees or consultants I may supervise and any customer of the Company. In recognition of the foregoing, in acknowledgement of the fact that the following conduct would necessarily involve the use or disclosure of Confidential Information in breach of this Agreement, I agree as follows:
(a) Employees, Consultants. I agree that during the term of the Relationship, and for a period of twelve (12) months immediately following the termination of the Relationship for any reason, whether with or without cause, I shall not, directly or indirectly, solicit, induce, recruit or encourage any of the Company’s employees, advisors or consultants to terminate or reduce their relationship with the Company, or attempt to solicit, induce, recruit, encourage or take away employees, advisors or consultants of the Company, either for myself or for any other person or entity.
(b) Other Parties. I agree that during the term of the Relationship, I will not negatively influence any of the Company’s clients, licensors, licensees or customers from purchasing Company products or services or solicit or influence or attempt to influence any client, licensor, licensee, customer or other person either directly or indirectly, to direct any purchase of products and/or services to any person, firm, corporation, institution or other entity in competition with the business of the Company. In addition, I acknowledge that the Company has valuable Trade Secrets (as defined by applicable law from time to time) to which I will have access during the term of the Relationship. I understand that the Company intends to vigorously pursue its rights under applicable Trade Secrets law if, during a period of twelve (12) months immediately following the termination of the Relationship for any reason, whether with or without cause, I solicit or influence or attempt to influence any client, licensor, licensee, customer or other person either directly or indirectly, to direct any purchase of products and/or services to any person,
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firm, corporation, institution or other entity in competition with the business of the Company. Thereafter, the Company intends to vigorously pursue its rights under applicable Trade Secrets law as the circumstances warrant.
(c) I agree that during the term of the Relationship and for a period of twelve (12) months immediately following the termination of the Relationship for any reason, whether with or without cause, I will not, other than on behalf of the Company and except as a passive investor in less than 5% of the securities of a publicly-held company, directly or indirectly, own, manage, operate, control, conduct or engage in, or participate in the ownership, management, operation or control of, serve as an officer, director, shareholder, partner, employee, agent, consultant, joint venturer, independent contractor, advisor, developer or in any similar capacity with, or have any financial interest in, or aid or assist anyone else in the conduct of, any Competitive Enterprise (as defined below) in the Restricted Territory (as defined below). For purposes hereof: (i) a “Competitive Enterprise” means any business that is similar to or competes with the business conducted by the Company during the period of the Relationship or the products or services offered or marketed by the Company or identified, projected or planned to be developed, offered or marketed by the Company (A) at any time during the Relationship, (B) at the time that my compliance with the provisions of this subparagraph (c) is then being determined, and/or (C) at any time during the two year period immediately prior to the date of the commencement of the Relationship; and (ii) “Restricted Territory” means the United States and any other geographic area where the products or services of the Company are sold or licensed, offered for sale or license or otherwise distributed during the Relationship and at any time that my compliance with the provisions of this subparagraph (c) is then being determined.
(d) I represent that the business knowledge, skills and abilities that I possess are sufficient to permit me, during the period that my activities are limited by my obligations under this Section 8, to be gainfully employed without violating the provisions of this Agreement.
9. At-Will Relationship. I understand and acknowledge that, except as may be otherwise explicitly provided in a separate written agreement between the Company and me, my Relationship with the Company is and shall continue to be at-will, as defined under applicable law, meaning that either I or the Company may terminate the Relationship at any time for any reason or no reason, without further obligation or liability, other than those provisions of this Agreement that explicitly survive the termination of the Relationship.
10. Representations and Covenants
(a) Facilitation of Agreement. I agree to execute promptly, both during and after the end of the Relationship, any proper oath, and to verify any proper document, required to carry out the terms of this Agreement, upon the Company’s written request to do so.
(b) No Conflicts. I represent that my performance of all the terms of this Agreement does not and will not breach any agreement I have entered into, or will enter into, with any third party, including without limitation any agreement to keep in confidence proprietary information or materials acquired by me in confidence or in trust prior to or during the Relationship. I will not disclose to the Company or use any inventions, confidential or non-public proprietary information or material belonging to any previous client, employer or any other party. I will not induce the Company to use any inventions, confidential or non-public proprietary information, or material belonging to any previous client, employer or any other party. I acknowledge and agree that I have listed on Exhibit 1 all agreements (e.g., non-competition agreements, non-solicitation of customers agreements, non-solicitation of employees agreements, confidentiality agreements, inventions agreements, etc.), if any, with a current or former client, employer, or any other person or entity, that may restrict my ability to accept employment with the Company or my ability to recruit or engage customers or service providers on behalf of the Company, or otherwise relate to or restrict my ability to perform my duties for the Company or any obligation I may have to the Company. I agree not to enter into any written or oral agreement that conflicts with the provisions of this Agreement.
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(c) Voluntary Execution. I certify and acknowledge that I have carefully read all of the provisions of this Agreement, that I understand and have voluntarily accepted such provisions, and that I will fully and faithfully comply with such provisions.
11. Electronic Delivery. Nothing herein is intended to imply a right to participate in any of the Company’s equity incentive plans, however, if I do participate in such plan(s), the Company may, in its sole discretion, decide to deliver any documents related to my participation in the Company’s equity incentive plan(s) by electronic means or to request my consent to participate in such plan(s) by electronic means. I hereby consent to receive such documents by electronic delivery and agree, if applicable, to participate in such plan(s) through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
12. Miscellaneous
(a) Application to Company Affiliates. I understand that during the Relationship there may exist or come to exist one or more entities controlled by the Company, or under common control with the Company, or that control the Company (collectively, “Company Affiliates”) and that my duties to the Company may include performing services for or on behalf of one or more of such Company Affiliates. In such event, the provisions of this Agreement that benefit the Company, such as Sections 3, 4, and 8, shall be deemed to extend to and benefit such Company Affiliate as though such Company Affiliate were the “Company” for purposes of this Agreement. For example, employees of a Company Affiliate with whom I work or for whom I provide services would be covered by my non-solicitation obligations in Section 8.
(b) Governing Law. The validity, interpretation, construction and performance of this Agreement, and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the state of New York, without giving effect to the principles of conflict of laws.
(c) Arbitration. Other than seeking a temporary restraining order or permanent injunction to enforce my obligations hereunder, any dispute in connection with this Agreement or related to or arising out of your employment by the Company may, at the election of the Company, be submitted to binding arbitration in New York, New York before a single arbitrator under the commercial arbitration rules of the American Arbitration Association. The Company has advised me to read and review such rules and learn more about arbitration on the website of the American Arbitration Association. I am also aware that the Company’s right to require arbitration of disputes under this Agreement may be limited by applicable State law.
(d) Entire Agreement. This Agreement sets forth the entire agreement and understanding between the Company and me relating to its subject matter and merges all prior discussions between us. No amendment to this Agreement will be effective unless in writing signed by both parties to this Agreement. The Company shall not be deemed hereby to have waived any rights or remedies it may have in law or equity, nor to have given any authorizations or waived any of its rights under this Agreement, unless, and only to the extent, it does so by a specific writing signed by a duly authorized officer of the Company, it being understood that, even if I am an officer of the Company, I will not have authority to give any such authorizations or waivers for the Company under this Agreement without specific approval by the Board of Directors. Any subsequent change or changes in my duties, obligations, rights or compensation will not affect the validity or scope of this Agreement.
(e) Successors and Assigns. This Agreement will be binding upon my heirs, executors, administrators and other legal representatives, and my successors and assigns, and will be for the benefit of the Company, its successors, and its assigns.
(f) Notices. Any notice, demand or request required or permitted to be given under this Agreement shall be in writing and shall be deemed sufficient when delivered personally or by overnight courier or sent by email, or 48 hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, addressed (i) if to the Company, at its address set forth on the first
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page hereof, with a copy to the Company’s counsel: Brenner, Saltzman & Wallman LLP, 271 Whitney Avenue, New Haven, CT 06511 Attention: George Brencher, as subsequently modified by the Company by written notice, or (ii) if to me at my address as set forth on the signature page, as subsequently modified by me by written notice, or if no address is specified on the signature page, at my most recent address set forth in the Company’s books and records.
(g) Severability. If one or more of the provisions in this Agreement are deemed void or unenforceable to any extent in any context, such provisions shall nevertheless be enforced to the fullest extent allowed by law in that and other contexts, and the validity and force of the remainder of this Agreement shall not be affected. The Company and I have attempted to limit my right to use, maintain and disclose the Company’s Confidential Information, and to limit my right to solicit employees and customers and to compete (or assist others to compete) with the Company only to the extent necessary to protect the Company from unfair competition. Should a court of competent jurisdiction determine that the scope of the covenants contained in Section 8 exceeds the maximum restrictiveness such court deems reasonable and enforceable, the parties intend that the court should reform, modify and enforce the provision to such narrower scope as it determines to be reasonable and enforceable under the circumstances existing at that time.
(h) Remedies. I acknowledge and agree that violation of this Agreement by me may cause the Company irreparable harm, and therefore I agree that the Company will be entitled to seek extraordinary relief in court, including, but not limited to, temporary restraining orders, preliminary injunctions and permanent injunctions without the necessity of posting a bond or other security (or, where such a bond or security is required, I agree that a $1,000 bond will be adequate), in addition to and without prejudice to any other rights or remedies that the Company may have for a breach of this Agreement.
(i) Advice of Counsel. I ACKNOWLEDGE THAT, IN EXECUTING THIS AGREEMENT, I HAVE HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL, AND I HAVE READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT SHALL NOT BE CONSTRUED AGAINST ANY PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF.
(j) Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and all of which together shall constitute one and the same agreement.
[Signature Page Follows]
Case 3:17-cv-03259-MEJ Document 1-2 Filed 06/06/17 Page 8 of 10
The parties have executed this Agreement on the respective dates set forth below, to be effective as of the Effective Date first above written. THE COMPANY: META COMPANY By:__________________________ Name: Meron Gribetz Title: Chief Executive Officer EMPLOYEE: Print Name Signature Date
Case 3:17-cv-03259-MEJ Document 1-2 Filed 06/06/17 Page 9 of 10
EXHIBIT 1
LIST OF PRIOR INVENTIONS AND ORIGINAL WORKS OF AUTHORSHIP
EXCLUDED UNDER SECTION 4(A) AND CONFLICTING AGREEMENTS DISCLOSED UNDER SECTION 10(B)
The following is a list of (i) all inventions that belong solely to me or belong to me jointly with others, and that relate in any way to any of the Company’s actual or proposed businesses, products, services, or research and development, and which are not assigned to the Company pursuant to this Agreement and (ii) all agreements, if any, with a current or former client, employer, or any other person or entity, that may restrict my ability to accept employment with the Company or my ability to recruit or engage customers or service providers on behalf of the Company, or otherwise relate to or restrict my ability to perform my duties for the Company or any obligation I may have to the Company:
[Prior Inventions and Agreements]
Except as indicated above on this exhibit, I have no inventions, improvements or original works to disclose pursuant to Section 4(a) of this Agreement and no agreements to disclose pursuant to Section 10(b) of this Agreement. EMPLOYEE: _______ Print Name Signature
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EXHIBIT C
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Dreamworld Is Making Inexpensive AR Glasses That Connect To Phones
https://uploadvr.com/thes-ar-glasses-connect-smartphones-keep-prices-350/[5/26/2017 9:46:09 AM]
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Dreamworld Is Making AR Glasses That Connect To Your Phone ForUnder $350
by JOE DURBIN • MAY 9TH, 2017
The AR market is currently populated by companies that offer nice results at very high costs. Anew Chinese startup, however, is prototyping a new solution that is intended to be comparable inperformance to the big players for a fraction of the price.
Dreamworld Vision has 10 employees say raised only $2 million in funding — a pittance when
563.6kCATEGORY: AR / FEATURED
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Dreamworld Is Making Inexpensive AR Glasses That Connect To Phones
https://uploadvr.com/thes-ar-glasses-connect-smartphones-keep-prices-350/[5/26/2017 9:46:09 AM]
compared to the cash that the big name AR companies like Magic Leap, Microsoft and Metahave. And yet, despite these limited resources, the Dreamworld team created something aimedat rattling the cages of its biggest competitors: a pair of AR glasses with abilities that compare tothese $1000 + units that will be sold for less than $350.
What is it?Dreamworld’s inaugural AR headset is being called the Dreamworld Glass. UploadVR recentlyhad the chance to try it out at the company’s offices but we were not allowed to take photos, nordid representatives provide us with photographs of the unit for this story.
The Glass we demoed came in two form factors. The first was a smaller, lighter model that wasused primarily to show off the headset’s large field of view and basic head tracking. The secondwas significantly larger and was outfitted with “over the counter” depth sensors and cameras toachieve basic positional tracking. A Dreamworld representative explained that the final versionwill be comprised of custom-designed components and will be much more similar to the formfactor of the smaller unit.
The Meta 2 AR headset is a larger take on AR with a similar screen-reflection system to theDreamworld Glass.
Both headsets seemed smaller and lighter than either the Meta 2 or Microsoft HoloLens. The
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Dreamworld Is Making Inexpensive AR Glasses That Connect To Phones
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headsets connected to an android smartphone via a USB-C connector.
What can it do?
During the demo we saw the Glass in action during three simple experiences. The first was abasic content selection menu.
Three small yellow squares were brought in front of our eyes and we could select whichever onewe wanted by holding our hand physically up to it and making a gesture similar to a shadowpuppet duck. this is the “click” gesture for the Dreamworld UI.
From the selection screen we could chose to either launch an educational app that would projecta holographic model of the human brain, or a video player.
The brain experience was simple and involved mostly clicking on the different hemispheres ofthe brain to assemble it into a whole and see how they all fit together. The brain was anchored inspace, meaning if I turned my head it would vanish until I returned my gaze to where it existeddigitally.
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Dreamworld Is Making Inexpensive AR Glasses That Connect To Phones
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The video player brought up a suite of panels, each representing a different video. These wereanchored in place as well. I could click onto each and it would begin to play in a much largerpanel that was locked to my gaze to move with my head. This was also where the Dreamworldrepresentative showed me the “VR mode” which was basically holding a black piece ofcardboard in front of the headset to block out light.
Does it work?Yes and no. On certain fronts the Glass was more impressive than its big name rivals, but therewas one area where it really struggled: Tracking.
To date, no other AR headset has managed to touch Microsoft when it comes to inside-out
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Dreamworld Is Making Inexpensive AR Glasses That Connect To Phones
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wireless AR tracking. The Dreamworld demo we tried on the SLAM model was jittery and glitch-prone throughout. It is worth noting that after the demo we received an email saying that theteam had discovered and fixed certain bugs and programming issues that were adverselyaffecting the Glass’ performance during our time with it. This makes it tough to say how well afinal version of the Glass could work, but at this point all we can say from experience is that thepositional tracking was far from successful.
Tracking problems aside, the Glass’ FOV was legitimately impressive. So many AR headsetssuffer from their small fields of view — placing a small rectangle of space upon which the worldcan be enhanced. On the Glass, however, these borders seemed to be just outside myperipheral vision. This meant that the world truly seemed to be littered with brains and videoscreens rather than these only existing in a very small portion of my vision.
The Glass seems to use a Meta-esque optics system that places the screens at an angle abovethe lenses. The light from the screens then reflects down onto the lenses to create AR overlaysin a wide FOV effect.
The basic head-tracking-only model I tried actually worked better than the larger one andprovided an experience in terms of FOV and resolution that was honestly exciting for a headsetthat is aiming to ship at this price.
When will it launch? What will it cost?According to Dreamworld, the Glass will begin shipping in limited supply and in limited markets
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this holiday season. This seems quite ambitious for a product that is reportedly just now finishingup its industrial design for manufacturers. That’s the timeline they stuck with, however.
A final price has not been set but Dreamworld says that it will be under $350. For reference, theHoloLens developer kit that is currently available costs $3000 and the Meta 2 can be pre-orderedfor $950.
Maintaining that low price point is a key goal for Dreamworld which views keeping things cheapand simple will be essential to driving its success.
The Glass will be officially unveiled at CES Asia which kicks off in June.
Tagged with: Dreamworld Glass
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Dreamworld Is Making Inexpensive AR Glasses That Connect To Phones
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Case 3:17-cv-03259-MEJ Document 1-3 Filed 06/06/17 Page 8 of 12
Dreamworld Is Making Inexpensive AR Glasses That Connect To Phones
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Oculus v1.15 Update AddsFull Room Scale Support,Rolling Out Now
HTC Releasing ‘Standalone’Google Daydream VRHeadset ‘Later This Year’
Report: VR And ARDevelopers Aren’t MakingEnough Money To JustifyInvestments
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Daydream Elements Is A VR DevelopmentGuidebook From GoogleIf there’s one golden rule in the vast unknown that is VR development right now it’s this; give players choices. Noteverything works for everyone, and people [...]
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Case 3:17-cv-03259-MEJ Document 1-3 Filed 06/06/17 Page 10 of 12
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Case 3:17-cv-03259-MEJ Document 1-3 Filed 06/06/17 Page 11 of 12
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Case 3:17-cv-03259-MEJ Document 1-3 Filed 06/06/17 Page 12 of 12
JS-CAND 44 (Rev. 06/17)
The JS-CAND 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved in its original form by the Judicial Conference of the United States in September 1974, is required for the Clerk of Court to initiate the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.)
County of Residence of First Listed Plaintiff (EXCEPT IN U.S. PLAINTIFF CASES)
County of Residence of First Listed Defendant(IN U.S. PLAINTIFF CASES ONLY)
NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT OF LAND INVOLVED.
Attorneys (Firm Name, Address, and Telephone Number) Attorneys (If Known)
(Place an “X” in One Box Only) (Place an “X” in One Box for Plaintiff
1 U.S. Government Plaintiff 3 Federal Question (U.S. Government Not a Party)
2 U.S. Government Defendant 4 Diversity (Indicate Citizenship of Parties in Item III)
(For Diversity Cases Only) and One Box for Defendant)
Citizen of This State 1 1 Incorporated or Principal Place 4 4 of Business In This State
Citizen of Another State 2 2 Incorporated and Principal Place 5 5 of Business In Another State
Citizen or Subject of a 3 3 Foreign Nation 6 6 Foreign Country
(Place an “X” in One Box Only)
110 Insurance 120 Marine 130 Miller Act 140 Negotiable Instrument 150 Recovery of
Overpayment Of Veteran’s Benefits
151 Medicare Act 152 Recovery of Defaulted
Student Loans (Excludes Veterans)
153 Recovery of Overpayment
of Veteran’s Benefits 160 Stockholders’ Suits 190 Other Contract 195 Contract Product Liability 196 Franchise
210 Land Condemnation 220 Foreclosure 230 Rent Lease & Ejectment 240 Torts to Land 245 Tort Product Liability 290 All Other Real Property
310 Airplane 315 Airplane Product Liability 320 Assault, Libel & Slander 330 Federal Employers’
Liability 340 Marine 345 Marine Product Liability 350 Motor Vehicle 355 Motor Vehicle Product
Liability 360 Other Personal Injury 362 Personal Injury -Medical
Malpractice
440 Other Civil Rights 441 Voting 442 Employment 443 Housing/
Accommodations 445 Amer. w/Disabilities–
Employment 446 Amer. w/Disabilities–Other 448 Education
365 Personal Injury – Product Liability
367 Health Care/ Pharmaceutical Personal Injury Product Liability
368 Asbestos Personal Injury Product Liability
370 Other Fraud 371 Truth in Lending 380 Other Personal Property
Damage 385 Property Damage Product
Liability
463 Alien Detainee 510 Motions to Vacate
Sentence530 General 535 Death Penalty
540 Mandamus & Other 550 Civil Rights 555 Prison Condition 560 Civil Detainee–
Conditions of Confinement
625 Drug Related Seizure of Property 21 USC § 881
690 Other
710 Fair Labor Standards Act 720 Labor/Management
Relations 740 Railway Labor Act 751 Family and Medical
Leave Act 790 Other Labor Litigation 791 Employee Retirement
Income Security Act
462 Naturalization Application
465 Other Immigration Actions
422 Appeal 28 USC § 158 423 Withdrawal 28 USC
§ 157
820 Copyrights 830 Patent 835 Patent Abbreviated New
Drug Application 840 Trademark
861 HIA (1395ff) 862 Black Lung (923) 863 DIWC/DIWW (405(g)) 864 SSID Title XVI 865 RSI (405(g))
870 Taxes (U.S. Plaintiff or Defendant)
871 IRS–Third Party 26 USC § 7609
375 False Claims Act 376 Qui Tam (31 USC
§ 3729(a)) 400 State Reapportionment 410 Antitrust 430 Banks and Banking 450 Commerce 460 Deportation 470 Racketeer Influenced &
Corrupt Organizations 480 Consumer Credit 490 Cable/Sat TV 850 Securities/Commodities/
Exchange890 Other Statutory Actions 891 Agricultural Acts 893 Environmental Matters 895 Freedom of Information
Act 896 Arbitration 899 Administrative Procedure
Act/Review or Appeal of Agency Decision
950 Constitutionality of State Statutes
(Place an “X” in One Box Only)1 Original
Proceeding 2 Removed from
State Court 3 Remanded from
Appellate Court 4 Reinstated or
Reopened 5 Transferred from
Another District (specify)6 Multidistrict
Litigation–Transfer 8 Multidistrict
Litigation–Direct File
Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity):
Brief description of cause:
CHECK IF THIS IS A UNDER RULE 23, Fed. R. Civ. P.
CHECK YES only if demanded in complaint: Yes No
(See instructions):JUDGE DOCKET NUMBER
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