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Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page 1 of 27

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORID A

NISSIM CORP .,

V.

Plaintiff,

CLEARPLAY, INC . , ISP SERVICES LLC D/B/A MAX .COM, MATTHEW JARMAN , LEE JARMAN, WILLIAM AHO, AND FRED NINOW ,

Defendants .

Case No .

U 5-8066 5

COMPLAINT

Plaintiff Nissim Corp ., by and through its undersigned counsel , hereby sues Defendant s

ClearPlay,

Inc., ISP Services

LLC, Matthew Jarman, Lee Jarman , William Aho, and Fred

Ninow, and for its Complaint alleges as follows :

THE PARTIE S

1.

Plaintiff Nissim

Corp. ("Nissim ") is a corporation organized and existing under

the laws of the state of Florida with its principal place of business in Boca Raton , Florida .

2 . Defendant ClearPlay, Inc . ("ClearPlay") is a corporation organized and existing

under the laws of the state of Delaware with its principal place of business in Salt Lake City,

Utah .

3 . Defendant ISP Se rv ices LLC is a limited liability company organized under th e

laws of the State of Utah and with its principal place of business in Salt Lake City, Utah .

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Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page 2 of 27

Case No . 04-2 1 1 40-Civ-Huck/Turnoff

4. Defendant Matthew Jarman is an individual residing in Salt Lake City . Utah .

5. Defendant Lee Jarman is an individual residing in Salt Lake City, Utah .

6. Defendant William Aho is an individual residing in Salt Lake City, Utah .

7. Defendant Fred Ninow is an individual residing in Salt Lake City, Utah .

JURISDICTION AND VENU E

8 . This Court has federal question jurisdiction of this action under 28 U .S .C . §§

1331 and 1338(a) because Nissim seeks relief under the Patent Act, including remedies for

patent infringement of several United States Patents owned by Nissim .

9. Defendants are subject to personal jurisdiction in this state under Florida Statutes

§ 48 .193 because they have transacted business in this state, contracted to supply services or

products in this state, and/or caused tortious injury in this state .

10 . Venue is proper pursuant to 28 U .S .C . §§ 1391 and 1400(b) because a substantial

part of the events giving rise to these claims occurred in this judicial district, because Nissim has

suffered injury in this district, because all Defendants reside in this district under the patent

venue statute and because all Defendants have committed acts of patent infringement in this

district .

FACTUAL BACKGROUN D

11 . Plaintiff Nissim is the owner of an extraordinarily valuable portfolio of 20 related

United States Patents and a number of pending patent applications (collectively the "Nissim

Patents") . The Nissim Patents cover, among other things, multiple features that are required by

certain industry adopted specifications (DVD Specifications for Read Only Disc Part 3 Vide o

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Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page 3 of 27

Case No. 04-21140-Civ-Huck/Turnoff

Specifications, Version 1 . 1, December 1997 - hereinafter the "DVD Specifications") and that are

incorporated in all consumer electronic products ("DVD-Devices") capable of playing digital

video discs ("DVDs") .

12 . Virtually every company that sells DVD-Devices in the United States has taken a

DVD-Device License from Nissim under the Nissim Patents and pays Nissim running royalties

for sales of DVD-Devices . In fact, all of the very same companies that own the DVD-

Specifications and which sell DVD-Devices (Hitachi, Ltd ., Matsushita Electric Industrial Co .,

Mitsubishi Electric Corporation, Philips Electronics N .V ., Pioneer Corporation, Sony

Corporation, Thomson Multimedia S .A ., Toshiba Corporation, and Victor Company of Japan .

Limited) have taken a DVD-Device License from Nissim under the Nissim Patents and pay

Nissim running royalties for sales of those DVD-Devices .

13 . In addition to the foregoing companies, Nissim's complete list of licensees,

currently totaling approximately ninety (90) companies, also includes, by way of example : Dell

Products, L .P., Funai Electric Company, Gateway, Inc ., Hewlett-Packard Company, International

Business Machines Corporation, Samsung Electronics Co . Ltd ., and Sharp Corporation .

14 . To enable a DVD-Device to play different versions of a video, DVDs can include

certain segment information . For example, the DVD of the motion picture "Crash," released by

New Line Home Video, includes segment information that enables a DVD-Device to play an

"NC-17 Rated" version or an "R Rated" version of the motion picture using substantially the

same video segments . When playing the R Rated version, the segment information enables th e

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Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

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Case No . 04-21140-Civ-Huck/Turnoff

DVD-Device to skip video segments of, for example, more sexually graphic content than that

contained on the NC- 17 Rated version .

15 . The DVD-Specifications provide for the use of segment information carried by a

DVD to enable a DVD-Device to play, from within the same DVD, more than one version of a

video . This capability of the DVD-Specifications incorporated into all DVD-Devices is covered

by the Nissim Patents .

16 . The Nissim Patents also teach the distribution of segment information separate

from the DVD . Thus, Nissim recognized a separate business opportunity in providing segment

information external to a DVD that would enable a specially adapted DVD-Device to play a

version of a DVD that was not enabled by the segment information carried by the DVD . For

example, in the case of the "Crash" DVD, such a DVD-Device would use segment information

provided separate from the DVD to play a "customized" version of the DVD that excluded

scenes of violence or other objectionable content that would have been included in both the NC-

17 and R Rated versions .

17 . In July 2005, Defendants ClearPlay, Inc . and ISP Services LLC d/b/a Max .com

launched nationally a new DVD player called the ClearPlay enabled MaxPlay DVD Modem

Player . A true and correct copy of the ClearPlay website offering this product for sale is attached

hereto as Exhibit A . A true and correct copy of the ISP Services website offering this product

for sale is attached hereto as Exhibit B

18 . The ClearPlay enabled MaxPlay DVD Modem Player RCA Player and the

associated distribution of ClearPlay Filters, distributed with the ClearPlayer enabled MaxPla y

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Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page 5 of 27

Case No . 04-21140-Civ-Huck/Turnoff

DVD Modem Player and separately by ClearPlay and ISP Services LLC, are a willful

infringement of the Nissim Patents .

19 . With full knowledge of the Nissim Patents, Matthew Jarman, Lee Jarman and

William Aho supervised, directed, participated in and/or approved the infringing acts of

ClearPlay .

20 . With full knowledge of the Nissim Patents, Fred Ninow supervised, directed,

participated in and/or approved the infringing acts of ISP Services LLC .

COUNT I - PATENT INFRINGEMENT (AGAINST ALL DEFENDANTS )

21 . Nissim repeats and realleges each and all of the allegations contained in

paragraphs I through 20 above as though fully set forth herein .

22 . Part of the portfolio of Nissim Patents, United States Patent 6,067,401 ("the '401

patent"), entitled "Playing A Version Of And From Within A Video By Means Of Downloaded

Segment Information," was duly and lawfully issued on May 23, 2000 by the United States

Patent and Trademark Office . The `401 patent issued from an application filed with the United

States Patent and Trademark Office on December 11, 1997, claims priority from a parent

application which was originally filed on January 11, 1993 and which issued as United States

Patent 5,434,678, and which is now, and has been at all times since its date of issue, valid and

enforceable .

23 . ClearPlay sells, uses, and offers to sell, within the United States, the ClearPlav

enabled MaxPlay DVD Modem Player ; and makes, uses, offers to sell and/or sells ClearPla y

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Case 9:05-cv-80665-DTKH

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Entered on FLSD Docket 07/26/2005

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Case No. 04-21140-Civ-Huck/Turnoff

Filters, and related technologies that directly infringe, literally or under the doctrine of

equivalents, and/or indirectly infringe, one or more claims of the `401 patent .

24 . Matthew Jarman, Lee Jarman and William Aho have actively aided and abetted

the infringement by ClearPlay by supervising, directing, participating in and/or approving

ClearPlay's infringing activity .

25 . ISP Services LLC makes, uses, sells, and offers to sell, within the United States,

the ClearPlay enabled MaxPlay DVD Modem Player ; and uses, offers to sell and/or sells

ClearPlay Filters, and related technologies that directly infringe, literally or under the doctrine of

equivalents, and/or indirectly infringe, one or more claims of the `401 patent .

26 . Fred Ninow has actively aided and abetted the infringement by ISP Services LLC

by supervising, directing, participating in and/or approving ISP Services LLC's infringing

activity .

27. Defendants' acts of infringement have been willful and with full knowledge and

in conscious disregard of Nissim's rights under the `401 patent .

28 . Defendants will continue to infringe in the future unless enjoined by the Court .

29. Nissim has been damaged by Defendants' infringement of the '401 patent in an

amount to be proven at trial .

COUNT II - PATENT INFRINGEMENT (AGAINST ALL DEFENDANTS )

30. Nissim repeats and realleges each and all of the allegations contained in

paragraphs 1 through 20 above as though fully set forth herein .

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Case 9:05-cv-80665-DTKH

Document 1

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Case No. 04-211 40-Civ-Huck/Turnoff

31 . Part of the portfolio of Nissim Patents, United States Patent 5,724,472 ("the '47 2

patent"), entitled "Content Map For Seamlessly Skipping A Retrieval Of A Segment Of A

Video," was duly and lawfully issued on March 3, 1998 by the United States Patent and

Trademark Office . The `472 patent issued from an application filed with the United States

Patent and Trademark Office on May 1, 1995, claims priority from a parent application which

was originally filed on February 7, 1992 and which issued as United States Patent 6,208,805, and

which is now, and has been at all times since its date of issue, valid and enforceable .

32. ClearPlay sells, uses, and offers to sell, within the United States, the ClearPlay

enabled MaxPlay DVD Modem Player ; and makes, uses, offers to sell and/or sells ClearPlay

Filters, and related technologies that directly infringe, literally or under the doctrine of

equivalents, and/or indirectly infringe, one or more claims of the `472 patent .

33 . Matthew Jarman, Lee Jarman and William Aho have actively aided and abetted

the infringement by ClearPlay by supervising, directing, participating in and/or approving

ClearPlay's infringing activity .

34. ISP Services LLC makes, uses, sells, and offers to sell, within the United States,

the ClearPlay enabled MaxPlay DVD Modem Player ; and uses, offers to sell and/or sells

ClearPlay Filters, and related technologies that directly infringe, literally or under the doctrine of

equivalents, and/or indirectly infringe, one or more claims of the `472 patent .

35 . Fred Ninow has actively aided and abetted the infringement by ISP Services LLC

by supervising, directing, participating in and/or approving ISP Services LLC's infringing

activity .

 

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Case 9:05-cv-80665-DTKH

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Case No. 04-21140-Civ-Huck/Turnoff

36. Defendants' acts of infringement have been willful and with full knowledge and

in conscious disregard of Nissim's rights under the '472 patent .

37. Defendants will continue to infringe in the future unless enjoined by the Court .

38. Nissim has been damaged by Defendants' infringement of the `472 patent in an

amount to be proven at trial .

COUNT III - PATENT INFRINGEMENT (AGAINST ALL DEFENDANTS )

39. Nissim repeats and realleges each and all of the allegations contained in

paragraphs 1 through 20 above as though fully set forth herein .

40. Part of the portfolio of Nissim Patents, United States Patent 5,434,678 ("the '678

patent"), entitled "Seamless Transmission Of Non-Sequential Video Segments," was duly and

lawfully issued on July 18, 1995 by the United States Patent and Trademark Office . The '678

patent issued from an application filed with the United States Patent and Trademark Office on

January 11, 1993, and is now, and has been at all times since its date of issue, valid and

enforceable .

41 . ClearPlay sells, uses, and offers to sell, within the United States, the ClearPlay

enabled MaxPlay DVD Modem Player ; and makes, uses, offers to sell and/or sells ClearPlay

Filters, and related technologies that directly infringe, literally or under the doctrine of

equivalents, and/or indirectly infringe, one or more claims of the '678 patent .

42 . Matthew Jarman, Lee Jarman and William Aho have actively aided and abetted

the infringement by ClearPlay by supervising, directing, participating in and/or approving

ClearPlay's infringing activity .

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Case 9:05-cv-80665-DTKH

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Case No. 04-21140-C iv-Huck/Turnoff

43 . ISP Services LLC makes, uses, sells, and offers to sell, within the United States ,

the ClearPlay enabled MaxPlay DVD Modern Player ; and uses, offers to sell and/or sells

ClearPlay Filters, and related technologies that directly infringe, literally or under the doctrine of

equivalents, and/or indirectly infringe, one or more claims of the `678 patent .

44 . Fred Ninow has actively aided and abetted the infringement by ISP Services LLC

by supervising, directing, participating in and/or approving ISP Services LLC's infringing

activity .

45 . Defendants' acts of infringement have been willful and with full knowledge and

in conscious disregard of Nissim's rights under the `678 patent .

46 . Defendants will continue to infringe in the future unless enjoined by the Court .

47 . Nissim has been damaged by Defendants' infringement of the `678 patent in an

amount to be proven at trial .

COUNT IV - PATENT INFRINGEMENT (AGAINST ALL DEFENDANTS )

48 . Nissim repeats and realleges each and all of the allegations contained in

paragraphs I through 20 above as though fully set forth herein .

49 . Part of the portfolio of Nissim Patents, United States Patent 5,589,945 ("the '945

patent"), entitled "Computer-Themed Playing System," was duly and lawfully issued on

December 31, 1996 by the United States Patent and Trademark Office . The '945 patent issued

from an application filed with the United States Patent and Trademark Office on September 13 .

1994, which claims priority from a parent application originally filed on January 11 . 1993 an d

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Case 9:05-cv-80665-DTKH

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Case No . 04-21140-C iv-Huck /Turnoff

which issued as United States Patent 5 ,434,678, and which is now, and has been at all times

since its date of issue, valid and enforceable .

50. ClearPlay sells, uses, and offers to sell , within the United States , the ClearPlay

enabled MaxPlay DVD Modem Player ; and makes, uses, offers to sell and /or sells ClearPlay

Filters, and related technologies that directly infringe ,

literally or under the doctrine of

equivalents, and/or indirectly infringe , one or more claims of the `945 patent .

51 . Matthew Jarman , Lee Jarman and William Aho have actively aided and abetted

the infringement

by ClearPlay

ClearPlay's infringing activity .

by supe rvising , directing, participating in and /or approving

52. ISP Se rvices LLC makes, uses, sells, and offers to sell, within the United States,

the ClearPlay enabled MaxPlay DVD Modem Player ; and uses, offers to sell and/or sells

ClearPlay Filters, and related technologies that directly infringe, literally or under the doctrine of

equivalents , and/or indirectly infringe, one or more claims of the ' 945 patent .

53 . Fred Ninow has actively aided and abetted the infringement by ISP Services LLC

by supe rv ising , directing , part icipating in and /or approving ISP Se rv ices

activity .

LLC's infringing

54. Defendants ' acts of infringement have been willful and with full knowledge and

in conscious disregard of Nissim ' s rights under the '945 patent .

55 . Defendants will continue to infringe in the future unless enjoined by the Court .

56 . Nissim has been damaged by Defendants ' infringement of the '945 patent in an

amount to be proven at trial .

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Case No. 04-21140-Civ-Huck/Turnof f

COUNT V - PATENT INFRINGEMENT (AGAINST ALL DEFENDANTS )

57. Nissim repeats and realleges each and all of the allegations contained in

paragraphs 1 through 20 above as though fully set forth herein .

58 . Part of the portfolio of Nissim Patents, United States Patent 5,913,013 ("the '013

patent"), entitled "Seamless Transmission of Non-Sequential Video Segments," was duly and

lawfully issued on June 15, 1999 by the United States Patent and Trademark Office . The '013

patent issued from an application filed with the United States Patent and Trademark Office on

December 15, 1997, which claims priority from a parent application originally filed on January

11, 1993 and which issued as United States Patent 5,434,678, and which is now, and has been at

all times since its date of issue, valid and enforceable .

59 . ClearPlay sells, uses, and offers to sell, within the United States, the ClearPlay

enabled MaxPlay DVD Modem Player ; and makes, uses, offers to sell and/or sells ClearPlay

Filters, and related technologies that directly infringe, literally or under the doctrine of

equivalents, and/or indirectly infringe, one or more claims of the `013 patent .

60 . Matthew Jarman, Lee Jarman and William Aho have actively aided and abetted

the infringement by ClearPlay by supervising, directing, participating in and/or approving

ClearPlay's infringing activity .

61 . ISP Services LLC makes, uses, sells, and offers to sell, within the United States,

the ClearPlay enabled MaxPlay DVD Modem Player ; and uses, offers to sell and/or sells

ClearPlay Filters, and related technologies that directly infringe, literally or under the doctrine of

equivalents, and/or indirectly infringe, one or more claims of the `013 patent .

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Case 9:05-cv-80665-DTKH

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Case No . 04-21140-Civ-Huck/Turnoff

62 . Fred Ninow has actively aided and abetted the infringement by ISP Services LL C

by supervising, directing, participating in and/or approving ISP Services LLC's infringing

activity .

63 . Defendants' acts of infringement have been willful and with full knowledge and

in conscious disregard of Nissim's rights under the `013 patent .

64 . Defendants will continue to infringe in the future unless enjoined by the Court .

65 . Nissim has been damaged by Defendants' infringement of the `013 patent in an

amount to be proven at trial .

COUNT VI - PATENT INFRINGEMENT (AGAINST ALL DEFENDANTS )

66. Nissim repeats and realleges each and all of the allegations contained in

paragraphs 1 through 20 above as though fully set forth herein .

67 . Part of the portfolio of Nissim Patents, United States Patent 6,151,444 ("the '444

patent"), entitled "Motion Picture Including a Duplication of Frames," was duly and lawfully

issued on November 21, 2000 by the United States Patent and Trademark Office . The '444

patent issued from an application filed with the United States Patent and Trademark Office on

June 30, 1998, which claims priority from a parent application originally filed on January 11,

1993 and which issued as United States Patent 5,434,678, and which is now, and has been at all

times since its date of issue, valid and enforceable .

68 . ClearPlay sells, uses, and offers to sell, within the United States, the ClearPlay

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Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page 13 of 27

Filters, and related technologies that directly infringe ,

Case No . 04-211 40-Civ- Huck/Turnoff

literally or under the doctrine of

equivalents, and/or indirectly infringe, one or more claims of the '444 patent .

69 . Matthew Jarman , Lee Jarman and William Aho have actively aided and abetted

the infringement

by ClearPlay

by supe rvising ,

ClearPlay's infringing activity .

directing, pa rt icipating in and/or approving

70 . ISP Se rvices LLC makes, uses, sells, and offers to sell, within the United States .

the ClearPlay enabled MaxPlay DVD Modern Player ; and uses, offers to sell and/or sells

ClearPlay Filters, and related technologies that directly infringe, literally or under the doctrine of

equivalents, and/or indirectly infringe, one or more claims of the ` 444 patent .

71 . Fred Ninow has actively aided and abetted the infringement by ISP Services LLC

by superv ising , directing, pa rt icipating in and/or approving ISP Se rv ices

activity .

LLC's

infringing

72. Defendants' acts of infringement have been willful and with full knowledge and

in conscious disregard of Nissim 's rights under the `444 patent .

73 . Defendants will continue to infringe in the future unless enjoined by the Court .

74 . Nissim has been damaged by Defendants ' infringement of the '444 patent in an

amount to be proven at trial .

COUNT VII - PATENT INFRINGEMENT (AGAINST ALL DEFENDANTS )

75. Nissim repeats and realleges each and all of the allegations contained in

paragraphs I through 20 above as though fully set forth herein .

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Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page 14 of 27

Case No . 04-2 1 1 40-Civ-Huck/Turnoff

76 . Part of the portfolio of Nissim Patents, United States Patent 6,463,207 ("the '20 7

patent"), entitled "Playing a Variable-Content Video Having a User Interface," was duly and

lawfully issued on October 8, 2002 by the United States Patent and Trademark Office . The '207

patent issued from an application filed with the United States Patent and Trademark Office on

December 12, 1997, which claims priority from a parent application originally filed on February

7, 1992 and which issued as United States Patent 6,208,805, and which is now, and has been at

all times since its date of issue, valid and enforceable .

77. ClearPlay sells, uses, and offers to sell, within the United States, the ClearPlay

enabled MaxPlay DVD Modem Player ; and makes, uses, offers to sell and/or sells ClearPlay

Filters, and related technologies that directly infringe, literally or under the doctrine of

equivalents, and/or indirectly infringe, one or more claims of the `207 patent .

78. Matthew Jarman, Lee Jarman and William Aho have actively aided and abetted

the infringement by ClearPlay by supervising, directing, participating in and/or approving

ClearPlay's infringing activity .

79 . ISP Services LLC makes, uses, sells, and offers to sell, within the United States,

the ClearPlay enabled MaxPlay DVD Modem Player ; and uses, offers to sell and/or sells

ClearPlay Filters, and related technologies that directly infringe, literally or under the doctrine of

equivalents, and/or indirectly infringe, one or more claims of the `207 patent .

80 . Fred Ninow has actively aided and abetted the infringement by ISP Services LLC

by supervising, directing, participating in and/or approving ISP Services LLC's infringing

activity .

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Case 9:05-cv-80665-DTKH

Document 1

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Page 15 of 27

Case No. 04-211 40-Civ-Huck/Turnoff

81 . Defendants' acts of infringement have been willful and with full knowledge and

in conscious disregard of Nissim's rights under the `207 patent .

82. Defendants will continue to infringe in the future unless enjoined by the Court .

83 . Nissim has been damaged by Defendants' infringement of the '207 patent in an

amount to be proven at trial .

COUNT VIII - PATENT INFRINGEMENT (AGAINST ALL DEFENDANTS )

84 . Nissim repeats and realleges each and all of the allegations contained in

paragraphs 1 through 20 above as though fully set forth herein .

85 . Part of the portfolio of Nissim Patents, United States Patent 6,208,805 ("the '805

patent"), entitled "Inhibiting a Control Function from Interfering with a Playing of a Video," was

duly and lawfully issued on March 27, 2001 by the United States Patent and Trademark Office .

The `805 patent claims priority from a parent application originally filed on February 7, 1992

and which issued as United States Patent 6,208,805, and is now, and has been at all times since

its date of issue, valid and enforceable .

86 . ClearPlay sells, uses, and offers to sell, within the United States, the ClearPlay

enabled MaxPlay DVD Modern Player ; and makes, uses, offers to sell and/or sells ClearPlay

Filters, and related technologies that directly infringe, literally or under the doctrine of

equivalents, and/or indirectly infringe, one or more claims of the '805 patent .

87 . Matthew Jarman, Lee Jarman and William Aho have actively aided and abetted

the infringement by ClearPlay by supervising, directing, participating in and/or approving

ClearPlay's infringing activity .

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Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page 16 of 27

Case No . 04-2 1 1 40-Civ-Huck/Turnoff

88 . ISP Services LLC makes, uses, sells, and offers to sell, within the United States ,

the ClearPlay enabled MaxPlay DVD Modem Player ; and uses, offers to sell and/or sells

ClearPlay Filters, and related technologies that directly infringe, literally or under the doctrine of

equivalents, and/or indirectly infringe, one or more claims of the `207 patent .

89 . Fred Ninow has actively aided and abetted the infringement by ISP Services LLC

by supervising, directing, participating in and/or approving ISP Services LLC's infringing

activity .

90. Defendants' acts of infringement have been willful and with full knowledge and

in conscious disregard of Nissim's rights under the `805 patent .

91 . Defendants will continue to infringe in the future unless enjoined by the Court .

92. Nissim has been damaged by Defendants' infringement of the *805 patent in an

amount to be proven at trial .

PRAYER FOR RELIEF

WHEREFORE, Plaintiff Nissim Corp . prays :

A. That the Court find ClearPlay and ISP Services LLC liable for direct infringement

of the `401, '472, `678, `945, `013, `444, `207 and '805 patents, either literally or under the

doctrine of equivalents, and/or for indirect infringement .

B. That the Court find Matthew Jarman, Lee Jarman, William Aho and Fred Ninow

liable for inducing infringement of the `401, `472, '678, `945, '013, '444, '207 and '805 patents .

C. That Defendants, and all of ClearPlay's and ISP Services LLC's officers .

directors, agents, servants, employees, successors, and assigns, and all persons acting in concert

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Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page 17 of 27

Case No. 04-21140-C iv-Huck/Turnoff

or in active participation with them, be preliminarily and permanently enjoined and restrained

from making, using, importing, exporting, distributing, selling and/or offering to sell in or from

the United States the ClearPlay enabled MaxPlay DVD Modem Player and associated ClearPlay

Filters, or any other goods or services that infringe the `401, '472, '678, `945, `013, '444, '207

and/or `805 patents ; that Defendants be ordered to deliver up for destruction all ClearPlay

enabled MaxPlay DVD Modem Players and associated ClearPlay Filters, imported into,

produced in, or exported from, the Unites States and any other goods that infringe the '401, '472,

'678, `945, `013, `444, '207 and/or `805 patents ; and that Defendants be directed to file with this

Court and serve upon Plaintiff a written report under oath setting forth in detail the manner in

which Defendants have complied with the injunction .

D. That the Court award Nissim compensatory damages due to Defendants'

infringement of the '401, '472, '678, `945, `013, `444, `207 and/or `805 patents and that the

Court find this case exceptional within the meaning of 35 U .S .C . § 285 based on the willful

nature of Defendants' infringement, and that the Court enter judgment three (3) times such

compensatory amounts pursuant to 35 U .S .C . § 284 .

E . That the Court award Nissim its reasonable attorneys' fees incurred in this action

pursuant to 35 U .S .C. § 285 and Florida Statutes § 688 .005 .

F . That the Court award Nissim its taxable costs, disbursements, and pre-judgment

and post judgment interest .

G . For such other and further relief as the Court deems just and proper .

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Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page 18 of 27

Case No . 04-21140-Civ-Huck/Turnof f

JURY DEMAN D

Plaintiff Nissim Corp . demands trial by jury on all issues so triable .

Dated : July 25, 2005

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Respectfully submitted ,

hn C . Care y orida Bar No . 007837 9 TROOCK & STROOCK & LAVAN LL P 3160 Wachovia Financial Cente r 200 South Biscayne Boulevard Miami, Florida 33131 Telephone : (305) 789-9358 Facsimile : (305) 789-9302 jcarey@stroock .com (email )

Counsel for Plainti f Nissinn Corp .

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Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page 19 of 27

EXHIBIT A

ClearPlay

Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page 1 of I

Page 20 of 27

Login

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Buy ClearPlay!

» Get ClearPla y

» Customer Comments

» Hov. It Work s

Movie Title s

» Latest Releases

» Complete Lis t

» Request ClearPlay Filte r

Company Info

Support

Introducing the MaxPlay Modem Player ! This is an innovative new product that uses a modem to add the latest ClearPlay Filters. more info

ClearPlay Filtering for YOUR Family ! ClearPlay works with over 1400 regular versions of movies

that you already rent or purchase from any video store . You

select which types of content you want filtered during playback .

Enjoy the Show with Peace of Mind !

"We just recently bought a DVD player with ClearPlay technology . It is hands-down, without-a-doubt, absolutely the best entertainment investment we've ever made . I tell everyone I can about it . Keep up the extraordinary work ."

-- Dan , Maryville Tennesse e

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The Choice is ClearPlay! Check out testimonials from ClearPlay users.

Home I In the News I Help I About Us I Contact Us Affiliate Program I Advisors I Press Releases I Non-Profit Suppor t

Copyright ClearPlay 2001-2005 All Rights Reserved

ClearPlay

Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page 1 of 2

Page 21 of 27

Members

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Movie 'Titles Latest Release s

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Filte r

Company Info

Support

0 items in cart

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ClearPlay Players

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MaxPlay Modem

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Playe r

Retail Price : $239 .00

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This is an innovative new product that uses a modem to add the latest ClearPlay Filters . Simply run a telephone cord from the back of the player to a jack in your home, and you will be able to access new Filters from your ClearPlay subscription

without downloading, burning discs, etc.

Of ar.quc

' d s

MaxPlay DVD Player with ClearPlay features :

Preloaded with ClearPlay filters for 1000 popular movies! Holds up to 2000 movie ClearPlay Filters in memory .

Does not physically alter the DVD's you rent or buy . You can customize the ClearPlay settings each time you watch a movie .

MaxPlay Important features :

• Progressive Scan (high performance video )

• Superior Sound Quality with 192 khz/24 bit audio DA C

• Plays all of your discs (DVD, CD-RW, MP3, JPEG, and WMA)

• Plays recordable DVDs (DVD+RW+R, DVD-RW-R )

• Includes : Remote, Composite AN Cable, Phone Cord, and Batterie s

Connecting your MaxPlay DVD video to your TV :

• Composite RCA AN cables (included )

• S-Video cable (not included) (you must connect the audio cable seperately to your audio device )

• Component (Y, Pb, Pr), a requirement to use Progressive Scan . (not included) (you must connect the audio cable seperately to your audio device )

• The dial up is available in the continental US and Canada .

Connecting your MaxPlay DVD audio to your Stereo :

• Composite RCA AN cables for audio through your TV (included )

• Digital Audio Out cable directly to your stereo system (not included )

To use the ON-DEMAND filter update system for ClearPlay filters :

• Telephone cable connected from MaxPlay to your wall jack (included)

• A dialtone (provided by subscribing to your local phone company)

ClearPlay

Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page

2

A ClearPlay Filter subscription (per filter, monthly, or annual for an additional charge)

Home I In the News I Help I About Us I Contact Us

Affiliate Program I Advisors

I Press Releases I Non-Profit Suppor t

Copyright ClearPlay 2001-2005 All Rights Reserve d

of 2

Page 22 of 27

Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page 23 of 27

EXHIBIT B

Max

Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Page 1 of 2

Page 24 of 27

M A X

Home I Products I Demos I News I Support I Company I Contact

I t•1e tuber ,

Prprc'cric i-i for your forrm i Iy fro m cell the dangers on the Interne t

Welcome to Max

"At last there's a way to protect what matters most ."

- Chuck Norris

Max is committed to creating family safe product ; for an ever changing world . It is Max's mission to put the power back in the hands of parents and employers to control the content children or employees may potentially access .

News Headlines

MAX PLAY i'llit -

Now your family can watch movies free of objectionable content, with the Ma\Pla DVD player featuring ClearPlay . MaxPlay features our exclusive ON-DEMAND fill( update service . Receive filters for existing and new releases with the simple ' p : e• of a button . "

MAX PROTECT

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MaxProtect Filtering Software gives parents complete control over what comes into their homes while using the Internet . Most high speed Internet services hav, no protection whatsoever! MaxProtect can be added to ANY hlah speed Internet service in minutes !

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Bcy N O;'

MAXPROFESSIONAL%-

Manage your employees computer resources and increase your prof-tab lit' ; 0; MaxProtect PredatorGuard, as seen on the reinforcing your organization's Acceptable Use Policy while filtering, ola_k ng, Dateline NBC story, "Dangers Children Face monitoring and reporting non-compliance .

Online ." click here to see the video .

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Case 9:05-cv-80665-DTKH

Document 1

Entered on FLSD Docket 07/26/2005

Paige 1 of I

Page 25 of 27

Home I Products J Demos I News I Support I Company I Contact Fern, e- ,

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Now your family can watch movies free of objectionable content, with the MaxPlay DVD player featuring ClearPlay . MaxPlay features our exclusive ON-DEMAND Filter update service to receive Filters for existing and new releases with a simple "press of a button" .

> Click here to watch our MaxPlay demo trailer

MaxPlay (ClearPlay) features :

• Preloaded with Clearplay Filters for 1000 popular movies'

• Holds up to 2000 movie ClearPlay Filters in memory .

• MaxPlay does not physically alter the DVD's you rent or buy .

• Each MaxPlay Filter has been carefully and artfully tailore d to work with each specific movie . The end result is a smooth ~ iew in a experience .

• You can customize the filtration settings each time you watch a movie .

• MaxPlay features our exclusive ON-DEMAND Filter update service . Receive Filters for existing and new releases with thn simple "press of a button ."

• New Filters available within 48 hours of release .

MaxPlay (standard) features :

• Progressive Scan (high performance video )

• Superior Sound Quality with 192 khz/24 bit audio DA C

• Plays all of your discs (DVD, CD-RW, MP3, JPEG, and WMA)

• Plays recordable DVDs (DVD+RW+R, DVD-RW-R )

• Includes : Remote, Composite A/V Cable, and batteries

• 30-day money-back guarantee upon receipt .

Home I Products I Demos I News I Support

Company cc,n[ac[ ent er s

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Case 9:05-cv-80665-DTKH

AO 120 ( Rev. 2/9 9

Document 1

COMMISSIONER OF PATENTS & TRADEMARKS 2121 CRYSTAL DRIV E SUITE 1100 ARLINGTON , VA 2220 1

Entered on FLSD Docket 07/26/2005

Page 26 of 27

REPORT ON THE FILING OR DETERMINATION OF AN ACTION REGARDING A PATENT OR TRADEMARK

In Compliance with 35 § 290 and/or 1 5 U .S .C . § 1 1 16 you are hereby advised that a court action has bee n

filed in the U .S . District Court

Southern District of Florida

on the hollowing X Patents or

Trademark s

DOCKET NO .

DATE FILED

U .S . DISTRICT COUR T

05-80665-Civ-Hurley

July 25 2005

Southe rn District of

Florid a

PLAINTIFF Nissim Corp .

DEFENDANT Clearplay, Inc ., et al

PATENT O R TRADEMARK NO .

DATE OF PATENT OR TRADEMARK

HOLDER OF PATENT OR TRADEMARK

1

(see attached)

(see attached )

( see attached )

2

3

4

5

 

In the above-entitled case, the Billowing patent(s) have been included :

DATE INCLUDED

INCLUDED B Y

PATENT O R TRADEMARK NO .

1

2

3

4

5

Amendment

DATE OF PATEN T OR TRADEMARK

Answer

Cross Bill

Other Plead in g

HOLDER OF PATENT OR TRADEMAR K

In the above-entitled case, the tullowing decision has been rendered or judgement issued :

DECISION/JUDGEMEN T

CLERK

CLARENCE MADDOX

(BY) DEPUTY CLERK

Warren Condon

DATE

7.'26 0 5

Copy 1-Upon initiation of action , mail this copy to Commissioner

Copy 2-Upon filing document adding patent (s), mail this copy to Commissioner

Copy 3-Upon termination of action , mail this copy to Commissioner

Copy 4-Case file copy

JS 44

(Rev . 12/96)

Case 9:05-cv-80665-DTKH

Document 1

CIVIL COVER SHEE

Entered on FLSD Docket 07/26/2005

.)

th36 5

Page 27 of 27

as require d

The JS-44 civil cover sheet and the information contained herein neither replace nor supplement the filin7jand ervice of ?ffadings or other papers

by law, except as provided by local rules of court . This form, approved by the Judicial Conference of the United States in September 1974, is required icr the use

of the Clerk of Cou rt for the purpose of initiating the civil docket sheet . (SEE INSTRUCTIONS ON THE REVERSE OF THE FORM

1.

(a)

PLAINTIFFS

DEFENDANT S

NISSIM CORP .

CLEARPLAY, INC ., ISP SERVICES LLC D/B/A MAX .COM, MATTHEW JARMAN, LEE JARMAN, WILLIAM AHO AND FRED NINO W

(b) COUNTY OF RESIDENCE OF FIRST LISTED PLAINTIFF

(EXCEPT IN U .S . PLAINTIFF CASES)

(C)

-ATTORNEYS (FII,aNrAMME

J

ADD§E$~.,,T~LE HOl~t~I, u~I~F & LAVAN

200 So . Biscayne Blvd .,

Miami , FI 3 31 :31 (Tel-

Suite 3160

. Q5-35R-9900 )

(d) CIRCLE COUNTY WHERE ACTION AROS

DADE ONROE ,

BROWARD,

LL P

COUNTY OF RESIDENCE OF FIRST LISTED DEFENDANT

(IN U S PLAINTIFF C A 6~S ONLYjc~

NOTE . IN LAND CONDEMNATION CASES . ll E Tf,4E LOC ION\tOF TH E TRACT OF LAND INVOLVED

c .- furl

n

ATTORNEYS (IF KNOWN )

MARTIN , ST . LUCIE,

INDIAN RIVER , OKEECHOBEi

*I

II . BASIS OF JURISDICTION

X IN ONE BOX ONLY)

1 U.S . Government M Federal Question Plaintiff (U .S . Government Not a Party)

2 U .S. Gove rn ment Defendant

4 Diversity Indicate Citizenship of Parties in Item III)

(

5 ~`JC,~iSCJCDCOS1 .

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11

tllfYl~'t(1'l~

III . CITIZENSHIP OF PRINCIPAL PARTIES (PLA CE AN X IN ONE BOX FOR PLAINTF F

(For Diversity Cases Only) AND ONE BOX FOR DEFENDANT)

PT F

PTF

DEF

Citizen of This State

1

1

Incorporated or Principal Place

4

of Business In This State

DEF

0 4

Citizen of Another State

2

ti er (Subject of a 3 Foreign Country

o 2 Incorporated and Principal Place 5

o

f B

i

us ness

In Another State

0 5

3 Foreign Nation

06 0 6

IV. ORIGIN

'13`1 Original

Proceeding

El 2 Removed from State Court

(PLACE AN'") ' IN ONE BOX ONLY)

3 Remanded from

C1 4 Reinstated or

Appellate Court Reopened

Transferred from 5 another district (specify)

6 Multidistrict

Litigation

Appeal to District Judge from

7 Magistrate

Judgment

V. NATURE OF SUIT

A

CONTRACT

(PLACE AN "X" IN ONE BOX ONLY)

A TORTS

FORFEITURE/ PENALTY

A BANKRUPTCY

A O THER STATUTE S

[1

110 Insurance 120 Marine 130 Miller Act

[] 140 Negotiable Instrument

150 Recove ry of Overpayment

& Enforcement of Judgment

151 Medicare Act

0 152

Recovery of Defaulted

Student Loans

,Excl Veterans)

E]

PERSONAL INJURY PERSONAL INJURY

362 Personal Injury - Med Malpractice

315

310 Airplane

Airplane Product

Liability

320 Assault Libel &

365 Personal Injury -

Pr o du

c

t Li

a

bilit

y

330

Slander

Federal Employers Injury Product Liability

366 Asbestos Personal

Liability 340 Marine PERSONAL PROPERTY

O 345 Marine Product E] 370 Other Fraud

D 153 Recovery of Overpayment of Veterans Benefits

D 160 Stockholders Suits 355 Motor Vehicle Properly Damage

Liability

350 Motor vehicle

371 Truth in Lending 380 Other Personal

190 Other Contract

195 Contract Product Liability 360 Other Personal Injury . Product Liability

Product Liability

385 Properly Damage

A

REAL PR OPERTY

D

0

U

210

220

Land Condemnation

Foreclosur e

230 Rent Lease & Ejectment 240 Torts to Land

245

290 All Other Real Properly

Tort Product Liability

A CIVIL RIGHTS

E]

E)

441 Voting

442 Employmen t

443 Housin /

g

Accommodations 444 Welfare 440 Other Civil Rights

PRISONER PETITIONS

60

510 Motions to Vacate

Sentence

HABEAS

CORPUS :

SC] 530 General

AD 535 Death Penally

B [I

B

8[] 555 Prison Condition

540 Mandamus & Other

550

Civil Rights

130

Bill

B

610 Agriculture 620 Other Food & Drug

625

Drug Related Seizure of Properly 21 USC 88 1

B

630 Liquor Laws

B

640 R R

& Truck

80650 Airline Begs

B

660 Occupational

Safety/Health

B

690 Other

A LABOR

710 Fair Labor Standards Act

720 Labor.'Mgmt Relations

C1

q

730 Labor /Mgmt

8 Disclosure Act

740 Railway Labor Ac t

y

790 Other Labor Li tigation

Reporting

791 Empl Ret

Inc

Security Act

422 Appeal 28 USC 158

423 Withdrawal

28 USC 157

A PROPERTY RIGHTS

820 Copyrights

930 Patent

E] 840 Tratlema rv

®

B SOCIAL SECURITY

F)

861 HIA i 1395tti

862

Black Lung 19231

[1 863 DIWC/DIWW 1a05( gu

864 SSID Title XVI

865 RSI 1405(g)1

FEDERAL TAX SUITS

AD 870

AD 871

Taxes (US Plainti ff or Defendant)

IRS -Third Parly

26 USC 760 9

C]

B[]

400 State Reapportionmen t 410 Antitrust 430 Banks and Bankin g

450 Commerce,ICC Rates/et c

46

0 Deportatio n

470 Racketeer influenced and

Conupl Organization s

810 Selective Service

850 Securnrer 'Commodities ! Excnanc e

875 C stomer Challen z use Sat o

891 Agricultural Acts

u

g

e

892 Economic Stabilization Ac t 993 En.irbnrnentai Matter s

894

Ener

gy

Allocation Ac t

895 Freedom of

information Act

900 Appeal of Fee Determination

Under Equal Access to Justic e 950 Constitutionality of State Statutes 890 Other Statuto ry Anion s

A OR B

VI . CAUSE OF ACTION

(CITE THE U .S. CIVIL STATUTE UNDER WHICH YOU ARE FILING AND WRITE BRIEF STATEMENT OF CAUSE

35 USC

§271 DO NOT CITE JURISDICTIONAL STATUTES UNLESS DIVERSITY )

LENGTH OF TRIAL via_days estimated (for both sides to t ry entire case)

VII. REQUESTED IN COMPLAINT:

CHECK IF THIS IS A CLASS ACTION D UNDER F.R.C .P 23

DEMAND $

VIII . RELATED CASE (S) (See instructions) :

IF

ANY

JUDG E

DATE

7-25-05

Huc k

NATURE OF ATTOOR EY OF RECOF~

CHECK YES only if demanded in complaint :

JURY DEMAND : )(RYES NO

DOCKET NUMBER 04-211 40-C i v

FOR OFFICE USE ONLY

RECEIPT q

AMOUNT

Olin C . Carey

PPJYING IFP

S C~ z~-

JUDGE

MAG

JUDGE