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COMPLAINT
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had effect within the State of California and within this district, among other places.
Defendant, ConocoPhillips Company (Conoco), resides in this judicial district by virtue
of its business activities in this district and has committed acts of infringement or of
contributory infringement and inducement of infringement within this judicial district.
THE PARTIES
3. Plaintiff, Network Signatures, is a corporation duly organized and existingunder the laws of California with its principal place of business at 30021 Tomas Street,
Suite 300, Rancho Santa Margarita, California 92688. As is alleged below, the United
States of America has granted to Network Signatures an exclusive license concerning the
patented technology at issue in this lawsuit.
4. Defendant, Conoco, is a corporation organized and existing under the laws the State of Delaware with its headquarters at 600 North Dairy Ashford Road, Houston, T
77079. According to its website, Conoco was the third-largest U.S. integrated energy
company, based on market capitalization, as of December 31, 2010. Conoco says that it i
the largest petroleum refiner in the United States and that its products are sold at
approximately 10,000 retail and wholesale outlets in the United States and Europe
primarily under the Phillips 66, Conoco and 76 brands in the United States.
5. Conoco conducts business operations throughout the United States, includinin this judicial district. Examples of Conoco locations within this district include its facili
at 3525 Hyland Avenue, Costa Mesa, CA 92626, and its refineries in Carson and
Wilmington, CA.
THE NAVAL RESEARCH LABORATORY
6. The Naval Research Laboratory (NRL) is one of the most accomplishedresearch-and-development organizations in the country. NRL scientists have not only
made remarkable breakthroughs in military technology; they have literally changed the
world for all of us. Without their efforts, we would not have GPS, modern radar, and any
number of other technological innovations that we now take for granted. This lawsuit
concerns another such innovation: technology that allows for the safe and secure
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communication of sensitive information over the Internet, such as personal, banking,
commercial, financial, and other information.
7. Federal law empowers the United States Government to license its patents toprivate parties for commercialization as well as for enforcement of the patent without the
United States as a party. 37 C.F.R. 404.5(b)(2). By doing so, the government can use
market forces to better capitalize on its technologies, the way a private party would. In
addition, a license agreement can give the private licensee the proper incentives to protect
the governments intellectual property from theft, a task often handled better by a private
entity.
NETWORK SIGNATURES LICENSES THE NAVYS TECHNOLOGY
8. On April 23, 1996, the United States Patent and Trademark Office duly andlegally issued United States Patent No. 5,511,122 (the 122 Patent), entitled
Intermediate Network Authentication.
9. The 122 patent claims, among other things, a critical method ofauthenticating a computer in which a private electronic key is used, together with a
validating public electronic key, to create a cryptographic signature; the cryptographic
signature is transmitted in at least one packet to the validating computer; and the signature
is verified by the validating computer, using its private key and the public key of the
computer to be authenticated. This authentication method allows for the safe and secure
communication of sensitive information, such as personal, banking, commercial, financial
and other information, as is transmitted between computers by Defendant and its
employees, customers, vendors, and business partners.
10. The 122 Patent is owned by the United States of America, represented by thSecretary of the Navy. To allow enforcement, commercialization and protection of this
patent and the technology it represents, in September 2004, the United States Navy entere
into an exclusive license agreement with Metrix Services, Inc. (the Exclusive License
Agreement) expressly granting Metrix Services the exclusive right to practice, enforce,
and sublicense the 122 Patent, among other rights, subject to the general limitations
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imposed by federal law. A true and correct copy of the Exclusive License Agreement is
attached hereto as Exhibit A and incorporated here by reference.
11. With the express approval of the United States Navy, Metrix Servicestransferred its entire right, title, and interest in and to the 122 Patent to Network Signatur
on February 14, 2006. A true and correct copy of the First Amendment to the Exclusive
License Agreement, which, among other things, approved the assignment of the Exclusive
License Agreement to Network Signatures, is attached hereto as Exhibit B and incorporate
here by reference. A true and correct copy of the Assignment from Metrix to Network
Signatures is attached as Exhibit C and incorporated here by reference.
12. In accordance with its rights under the Exclusive License Agreement, NetwoSignatures has begun the commercial development of a product, known as EasyConnect,
that practices the 122 Patent. Network Signatures has demonstrated the product to NRL
personnel and has received NRLs recognition of its development efforts. A true and
correct copy of an October 12, 2006, letter from the Navy to Network Signatures reflects
this and is attached as Exhibit D and incorporated by reference here.
13. Network Signatures has also begun exercising its other primary obligationunder the Exclusive License Agreement: protecting the Navys intellectual property rights
from infringement.
FIRST CLAIM FOR RELIEF
(AGAINST CONOCOFOR DIRECT, CONTRIBUTORY AND INDUCING
INFRINGEMENT OF U.S. PATENT NO. 5,511,122)
14. Plaintiff incorporates here by reference the allegations set forth in Paragraph1-13 of the Complaint as though fully set forth here.
15. A true and correct copy of the 122 Patent is attached as Exhibit E andincorporated here by reference. On information and belief, Defendant uses digital
certificates and digital signatures implemented though the use of public key infrastructure
to facilitate communication with its employees, business partners, affiliates, and customer
For example, Defendant enables a computer of a Defendant customer, affiliate, business
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partner, or employee (sending computer) to send a secure communication over the
Internet to another computer (receiving computer) by using a confidential private key,
and a public key, to digitally sign the message being sent. When the receiving computer
receives the signed message, it uses the sending computers public key, and its private key
to decrypt the signature (collectively referred to as Defendant Authentication Activities
16. By making, using, selling, and offering for sale Defendant AuthenticationActivities, Defendant has directly infringed and continues to directly infringe the 122
Patent, including infringement under 35 U.S.C. 271(a) and (f).
17. On information and belief, Defendant has also indirectly infringed andcontinues to indirectly infringe the 122 Patent by actively inducing direct infringement by
other personsspecifically, customers, vendors, and business partners of Defendantwh
operate methods that embody or otherwise practice one or more of the claims of the 122
Patent when Defendant had knowledge of the 122 Patent and knew or should have known
that their actions would induce direct infringement by others and intended that their action
would induce direct infringement by others.
18. On information and belief, Defendant has also indirectly infringed andcontinues to indirectly infringe the 122 Patent by contributory infringement by providing
non-staple articles of commerce to others for use in an infringing system or method with
knowledge of the 122 Patent and knowledge that these non-staple articles of commerce a
used as a material part of the claimed invention of the 122 Patent.
19. On information and belief, Defendants foregoing acts of infringementinclude infringement by use and implementation of the Defendant Authentication
Activities.
20. On information and belief, Defendant will continue to infringe the 122 Patenunless enjoined by this Court.
21. As a direct and proximate result of Defendants infringement of the 122Patent, Network Signatures and the United States Government have been and continue to
be damaged in an amount yet to be determined.
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22. Unless a preliminary and permanent injunction are issued enjoiningDefendant and its officers, agents, servants and employees, and all others acting on their
behalves or in concert with Defendant, from infringing the 122 Patent, Network Signatur
and the United States Government will be greatly and irreparably harmed.
PRAYER FOR RELIEF
WHEREFORE, Network Signatures prays for judgment against Defendant as
follows:
1. For a judicial determination and declaration that Defendant has directlyinfringed, and continues to directly infringe, United States Patent No. 5,511,122;
2. For a judicial determination and declaration that Defendant has induced, andcontinues to induce, infringement of the 122 Patent;
3. For a judicial determination and declaration that Defendant has contributorilyinfringed, and continues to contributorily infringe, the 122 Patent;
4. For preliminary and permanent injunctions prohibiting Defendant, itsrespective subsidiaries, officers, agents, servants, employees, licensees, and all other
persons or entities acting or attempting to act in active concert or participation with them o
acting on their behalf, from infringing the 122 Patent;
5. For an order requiring that Defendant notify all of their customers, vendorsand users of the infringement and their participation in it and that Defendant encourage its
customers, vendors and users to cease all such infringing actions;
6. For an order that Defendant account for and pay to Network Signatures alldamages caused to Network Signatures by reason of Defendants infringement, in
accordance with 35 U.S.C. Section 284, as well as enhanced damages under 35 U.S.C.
Section 285;
7. For an award of damages according to proof;
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8. For a judicial determination that this case is exceptional under 35 U.S.C.Section 285 and that Defendant be ordered to pay Network Signatures costs, expenses, an
reasonable attorneys fees under 35 U.S.C. Sections 284 and 285;
9. For a judicial order awarding Network Signatures pre-judgment and post-judgment interest on the damages caused to it by Defendants infringement and any other
amounts awarded to Network Signatures; and
10. For any such other and further relief as the Court may deem just and properunder the circumstances.
Dated: April 6, 2012 ONE LLP
William OBrien
Attorneys for Plaintiff,
Network Signatures, Inc.
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DEMAND FOR JURY TRIAL
Plaintiff, Network Signatures, Inc., hereby demands trial by jury in this action.
Dated: April 6, 2012 ONE LLP
William OBrien
Attorneys for Plaintiff,
Network Signatures, Inc.
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