IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS MARSHALL DIVISION

SimpleAir, Inc., Plaintiff, Plaintiff, vs. Microsoft icrosoft Corporation, Corporation Defendant.

Civil Action No. Jury Demanded

COMPLAINT FOR PATENT INFRINGEMENT Plaintiff SimpleAir, Inc. sues Defendant Microsoft and on information and belief alleges as follows: Introduction 1. Plaintiff SimpleAir owns the inventions described and claimed in U.S. Patent No.

6,167,426 (the 426 patent), entitled Contact Alerts for Unconnected Users, and U.S. Patent No. 8,489,707 (the 707 patent), entitled System and Method for Transmission of Data. Defendant Microsoft has infringed these patents in offering to sell, selling, and using the methods claimed by the patents and has contributed to and induced the infringement of these patents by others. As explained further below, Microsofts accused services are the Microsoft Lync service (including Lync Online, Lync Server 2010, and Lync Server 2013), the Xbox Live service, and the Windows Azure Service Bus Notifications Hub service. SimpleAir seeks damages for patent infringement and an injunction preventing Microsoft from further direct and indirect infringement of the patents.

Jurisdiction and Venue 2. This is an action for patent infringement arising under the patent laws of the

United States, 35 U.S.C. 271 and 281, et seq. The Court has original jurisdiction over this patent infringement action under 28 U.S.C. 1338(a). 3. Venue is proper in this Court because Defendant Microsoft is responsible for acts

of infringement occurring in the Eastern District of Texas as alleged in this Complaint, and has delivered or caused to be delivered infringing services and software in the Eastern District of Texas. In addition, this Court has presided over prior matters relating to the asserted patents: SimpleAir, Inc. v. AWS Convergence Technologies, Inc., et al., 2:09-cv-289-CE (E.D. Tex.), in which the Court entered a Markman order construing the 426 patent and the parent patents of the 707 patent; SimpleAir, Inc. v. Microsoft Corporation, et al., 2:11-cv-416 JRG (E.D. Tex.), in which the Court entered a Markman order construing the parent patents of the 707 patent. Plaintiff SimpleAir, Inc. 4. Plaintiff SimpleAir, Inc. is a corporation existing under and by virtue of the laws

of the State of Texas. SimpleAir is an inventor-owned technology licensing company with interests and intellectual property in the wireless content delivery, mobile application, and push notification market spaces. SimpleAirs patent portfolio is licensed by many leading technology companies. The Patents 5. The United States Patent and Trademark Office issued the 426 patent on

December 26, 2000, and issued an Ex Parte Reexamination Certificate for amended and new claims on June 7, 2013. A copy of the 426 patent and the Reexamination Certificate are attached as exhibit A. The United States Patent and Trademark Office issued the 707 patent on 2

July 16, 2013. A copy of the 707 patent is attached as exhibit B. SimpleAir is the owner of all right, title, and interest in the patents, including all rights to pursue and collect damages for past infringements of the patents. Defendant Microsoft 6. Defendant Microsoft Corporation (Microsoft) is a Washington corporation with

a principal place of business in Redmond, Washington and various other offices and facilities of relevance located throughout the country.

First Claim for Patent Infringement (426 patent) 7. Plaintiff incorporates by reference each of the allegations in paragraphs 1-6 above

and further alleges as follows: 8. On December 26, 2000, the United States Patent and Trademark Office issued

U.S. Patent No. 6,167,426 (the 426 patent), entitled Contact Alerts for Unconnected Users. On June 7, 2013, the United States Patent and Trademark Office issued an Ex Parte Reexamination Certificate for amended and new claims of the 426 patent. 9. Plaintiff SimpleAir, Inc. is the owner of the 426 patent with full rights to pursue

recovery of royalties or damages for infringement of said patent, including full rights to recover past and future damages. 10. 11. Each claim of the 426 patent is valid and enforceable. Defendant Microsoft has directly infringed the amended and new claims of the

426 patent by offering for sale, selling, and using the following services and licenses thereto: Lync Online, Lync Server 2010, Lync Server 2013, and Xbox Live, including in particular the functionality of those services that provides and is used to send notification messages (such as instant messages and push notifications) to users of mobile devices, such as smartphones, tablets, 3

and notebook computers. To the extent that Microsoft contends it does not perform one or more steps of the claimed methods, SimpleAir asserts that Microsoft is liable for direct infringement under a theory of control or direction of the other parties identified by Microsoft as performing the claimed steps (including enterprise customers, end user customers, game application providers, native push notification service providers, and wireless carriers). 12. Defendant Microsoft has actively induced infringement of the amended and new

claims of the 426 patent by its enterprise customers (in the case of Lync Server 2010 and Lync Server 2013), end user customers (in the case of Lync Online, Server 2010, and Lync Server 2013), and game application providers (in the case of Xbox Live). Microsoft has offered and continues to offer the Lync Online, Lync Server 2010, Lync Server 2013, and Xbox Live services, software, and licenses (and client side applications) and has and continues to instruct enterprise customers, end user customers, and game application providers (in the case of Xbox Live) to configure, operate, and use them in an infringing manner through, without limitation, advertisements, product documentation and tutorials, customer support, and the actions of third party partners (such as integrators) instructed and supported by Microsoft. Microsoft has known of the 426 patent since at least September 2011 or shortly thereafter and has known of the Reexamination Certificate since the date of its issuance on June 7, 2013 or shortly thereafter. Microsoft knew that its actions would induce enterprise customers, end user customers, and game application providers (in the case of Xbox Live) to infringe the amended and new claims of the 426 patent. 13. Defendant Microsoft has contributed to the infringement of the amended and new

claims of the 426 patent by its enterprise customers (in the case of Lync Server 2010 and Lync Server 2013), end user customers (in the case of Lync Online, Server 2010, and Lync Server 2013), and game application providers (in the case of Xbox Live). Microsoft has offered and 4

continues to offer the Lync Online, Lync Server 2010, Lync Server 2013, and Xbox Live services, software, and licenses (and client side applications), which services and software constitute a material part of the inventions of the amended and new claims of the 426 patent. Microsoft knew that its infringing services and software were especially made for infringement of the 426 patent; that they were not a staple article or commodity of commerce; and that the accused notification functionality of those services has no substantial non-infringing use. 14. Plaintiff SimpleAir has been damaged by Microsofts infringement of the

amended and new claims of the 426 patent and will suffer additional irreparable damage and impairment of the value of its patent rights unless Microsoft is enjoined from continuing to infringe and induce and contribute to the infringement of others. 15. Plaintiff SimpleAir demands trial by jury of all issues relating to this claim.

Second Claim for Patent Infringement (707 patent) 16. Plaintiff incorporates by reference each of the allegations in paragraphs 1-6 above

and further alleges as follows: 17. On July 16, 2013, the United States Patent and Trademark Office issued U.S.

Patent No. 8,489,707 (the 707 patent), entitled System and Method for Transmission of Data. 18. Plaintiff SimpleAir, Inc. is the owner of the 707 patent with full rights to pursue

recovery of royalties or damages for infringement of said patent, including full rights to recover past and future damages. 19. 20. Each claim of the 707 patent is valid and enforceable. Defendant Microsoft has directly infringed the 707 patent by offering for sale,

selling, and using the Windows Azure Service Bus Notifications Hub service and licenses thereto, which service receives, processes, and transmits notification messages to users of mobile 5

devices such as smartphones, tablets, and notebook computers in an infringing manner. To the extent that Microsoft contends it does not perform one or more steps of the claimed methods, SimpleAir asserts that Microsoft is liable for direct infringement under a theory of control or direction of the other parties identified by Microsoft as performing the claimed steps (including application providers, enterprise customers, native push notification service providers, and wireless carriers). 21. Defendant Microsoft has actively induced infringement of the 707 patent by

application developers and enterprise customers. Microsoft has offered and continues to offer the Windows Azure Service Bus Notifications Hub service and licenses thereto and has and continues to instruct application developers and enterprise customers to configure and use the service in an infringing manner through, without limitation, advertisements, product documentation and tutorials, and customer support. Microsoft has known of the 707 patent since its issuance on July 16, 2013 or shortly thereafter. Microsoft knew that its actions would induce application developers and enterprise customers to infringe the 707 patent. 22. Plaintiff SimpleAir has been damaged by Microsofts infringement of the 707

patent and will suffer additional irreparable damage and impairment of the value of its patent rights unless Microsoft is enjoined from continuing to infringe and induce the infringement of others. 23. Plaintiff SimpleAir demands trial by jury of all issues relating to this claim.

WHEREFORE, Plaintiff prays for judgment as follows: A. A decree preliminarily and permanently enjoining Defendant Microsoft, its

officers, directors, employees, agents, and all persons in active concert with them, from infringing, inducing, or contributing (in the case of the 426 patent) to the infringement of the amended and new claims of the 426 patent and the claims of the 707 patent; 6

B.

Compensatory damages for Defendant Microsofts infringement of the amended

and new claims of the 426 patent and the claims of the 707 patent; C. D. E. Costs of suit and attorneys fees; Pre-judgment interest; and For such other relief as justice requires. Respectfully submitted, By: /s/ Jeff Eichmann John Jeffrey Eichmann CA State Bar No. 227472 (admitted to practice before the U.S. District Court for the Eastern District of Texas) DOVEL & LUNER, LLP 201 Santa Monica Blvd., Suite 600 Santa Monica, CA 90401 Telephone: 310-656-7066 Facsimile: 310-657-7069 Email: jeff@dovellaw.com S. Calvin Capshaw State Bar No. 03783900 Email: ccapshaw@capshawlaw.com Elizabeth L. DeRieux State Bar No. 05770585 Email: ederieux@capshawlaw.com Capshaw DeRieux LLP 114 E. Commerce Gladewater, Texas 75647 Telephone: (903) 236-9800 Facsimile: (903) 236-8787 ATTORNEYS FOR PLAINTIFF SIMPLEAIR, INC.

Date: August 8, 2013