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Michael K. Friedland (SBN 157,217) [email protected] Nicholas M. Zovko (SBN 238,248) [email protected] Samantha Y. Hsu (SBN 285,853) [email protected] KNOBBE, MARTENS, OLSON & BEAR, LLP 2040 Main Street, 14th Floor Irvine, CA 92614 Phone: (949) 760-0404 Facsimile: (949) 760-9502 Attorneys for Plaintiff GATEKEEPER SYSTEMS, INC. IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA Case No. '13 CV2531 BEN JMA

GATEKEEPER SYSTEMS, INC., a Delaware corporation, Plaintiff, v. CARTTRONICS LLC, a California limited liability company, and CARTTRONICS, INC., a California corporation, Defendants.

) ) ) ) COMPLAINT FOR ) PATENT INFRINGEMENT ) ) ) ) DEMAND FOR JURY TRIAL ) ) ) ) )

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Plaintiff GATEKEEPER SYSTEMS, INC. (Gatekeeper) for its Complaint against Defendants CARTTRONICS LLC and CARTTRONICS, INC. (collectively, Carttronics), alleges as follows: PARTIES 1. Gatekeeper is a Delaware corporation having a principal place of

business at 8 Studebaker, Irvine, California 92618. 2. Gatekeeper designs, manufactures, and sells products that help

retailers minimize merchandise loss and reduce expenditures relating to shopping carts. For example, Gatekeeper designs, manufactures, and sells

products that help retailers prevent shopping carts from leaving a stores property by using locking wheels, and products that help retailers prevent shoplifters from taking unpaid merchandise from a store. Gatekeeper sells and distributes such products in the United States, including in this Judicial District. 3. Carttronics LLC is a California limited liability company having its

principal place of business at 12310 World Trade Drive, Suite 108, San Diego, California 92128. 4. Carttronics, Inc. is a California corporation having its principal

place of business at 12310 World Trade Drive, Suite 108, San Diego, California 92128. 5. Upon information and belief, Carttronics markets and sells, inter

alia, shopping cart loss prevention and inventory management products, including the Carttronics POPS, CAPS, CIMS, and StorePort systems, throughout the United States, including in this Judicial District. JURISDICTION AND VENUE 6. This is an action for patent infringement arising under the Patent

Laws of the United States, 35 U.S.C. 100, et seq., including 35 U.S.C. 271. 7. This Court has subject matter jurisdiction pursuant to 28 U.S.C.

1331 and 1338(a). -1Complaint

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8.

Upon information and belief, Carttronics conducts business

throughout the United States, including in this Judicial District, and has committed the acts complained of in this Judicial District and elsewhere. 9. This Court has personal jurisdiction over Carttronics by virtue of

its actions in California, including in this Judicial District, constituting infringement of the patents-in-suit. 10. Venue is proper in this Judicial District pursuant to 28 U.S.C.

1391(b), 1391(c), and 1400(b). FIRST CLAIM FOR RELIEF INFRINGEMENT OF U.S. PATENT NO. 8,417,445 11. Gatekeeper incorporates by reference and realleges each of the

allegations set forth in Paragraphs 1-10 above. 12. On April 9, 2013, United States Patent No. 8,417,445 (the 445

Patent), entitled System for Communicating with and Monitoring Movement of Human-Propelled Vehicles, was duly and legally issued by the United States Patent and Trademark Office. Gatekeeper is the owner by assignment of all right and title, both legal and equitable, to the 445 Patent. A copy of the 445 Patent is attached hereto as Exhibit A. 13. Upon information and belief, Carttronics manufactures, uses,

distributes, offers to sell, and/or sells in the United States loss prevention and inventory management products that infringe the 445 Patent, including the Carttronics POPS, CAPS, CIMS, and StorePort systems. 14. Upon information and belief, Carttronics has contributed to the

infringement of the 445 Patent by others, through Carttronics activities relating to its loss prevention and inventory management products, including the Carttronics POPS, CAPS, CIMS, and StorePort systems. /// /// -2Complaint

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15.

Upon information and belief, Carttronics has induced infringement

of the 445 Patent by others, through Carttronics activities relating to its loss prevention and inventory management products, including the Carttronics POPS, CAPS, CIMS, and StorePort systems. 16. Each of Carttronics infringing activities is without the consent of,

authority of, or license from Gatekeeper. 17. Carttronics acts of infringement have caused damage to

Gatekeeper in an amount to be determined at trial. 18. Carttronics infringement of the 445 Patent is causing irreparable

harm to Gatekeeper, for which there is no adequate remedy at law. Carttronics infringement will continue, and will continue to cause irreparable harm to Gatekeeper, unless Carttronics infringement is enjoined by this Court. 19. Upon information and belief, Carttronics infringement of the 445

Patent was and is willful and deliberate, entitling Gatekeeper to enhanced damages under 35 U.S.C. 284 and attorneys fees and non-taxable costs under 35 U.S.C. 285. SECOND CLAIM FOR RELIEF INFRINGEMENT OF U.S. PATENT NO. 8,463,540 20. Gatekeeper incorporates by reference and realleges each of the

allegations set forth in Paragraphs 1-19 above. 21. On June 11, 2013, United States Patent No. 8,463,540 (the 540

Patent), entitled Two-Way Communication System for Tracking Locations and Statuses of Wheeled Vehicles, was duly and legally issued by the United States Patent and Trademark Office. Gatekeeper is the owner by assignment of all right and title, both legal and equitable, to the 540 Patent. A copy of the 540 Patent is attached hereto as Exhibit B. /// /// -3Complaint

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22.

Upon information and belief, Carttronics manufactures, uses,

distributes, offers to sell, and/or sells in the United States loss prevention and inventory management products that infringe the 540 Patent, including the Carttronics POPS, CAPS, CIMS, and StorePort systems. 23. Upon information and belief, Carttronics has contributed to the

infringement of the 540 Patent by others, through Carttronics activities relating to its loss prevention and inventory management products, including the Carttronics POPS, CAPS, CIMS, and StorePort systems. 24. Upon information and belief, Carttronics has induced infringement

of the 540 Patent by others, through Carttronics activities relating to its loss prevention and inventory management products, including the Carttronics POPS, CAPS, CIMS, and StorePort systems. 25. Each of Carttronics infringing activities is without the consent of,

authority of, or license from Gatekeeper. 26. Carttronics acts of infringement have caused damage to

Gatekeeper in an amount to be determined at trial. 27. Carttronics infringement of the 540 Patent is causing irreparable

harm to Gatekeeper, for which there is no adequate remedy at law. Carttronics infringement will continue, and will continue to cause irreparable harm to Gatekeeper, unless Carttronics infringement is enjoined by this Court. 28. Upon information and belief, Carttronics infringement of the 540

Patent was and is willful and deliberate, entitling Gatekeeper to enhanced damages under 35 U.S.C. 284 and attorneys fees and non-taxable costs under 35 U.S.C. 285. PRAYER FOR RELIEF WHEREFORE, Gatekeeper prays for judgment in its favor and seeks relief as follows: /// -4Complaint

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A.

judgment

that

Carttronics

has

infringed

U.S.

Patent

Nos. 8,417,445 and 8,463,540; B. Preliminary and permanent injunctions against further infringement

by Carttronics of U.S. Patent Nos. 8,417,445 and 8,463,540, including injunctions against direct infringement, contributory infringement, and induced infringement; C. An award of damages for Carttronics infringement of U.S. Patent

Nos. 8,417,445 and 8,463,540; D. A declaration that Carttronics infringement of U.S. Patent

Nos. 8,417,445 and 8,463,540 was and is willful, and that this is an exceptional case under 35 U.S.C. 285; E. A trebling of the award of damages under 35 U.S.C. 284, or such

other enhancement of the award of damages that the Court deems appropriate; F. An award of attorneys fees and non-taxable costs under 35 U.S.C.

285 on account of Carttronics willful infringement; G. An award of pre-judgment and post-judgment interest and costs of

this action against Carttronics; and H. proper. Respectfully submitted, KNOBBE, MARTENS, OLSON & BEAR, LLP Such other and further relief as this Court may deem just and

Dated: October 21, 2013

By: /s/ Michael K. Friedland Michael K. Friedland Nicholas M. Zovko Samantha Y. Hsu Attorneys for Plaintiff GATEKEEPER SYSTEMS, INC.

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Complaint

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16421926

DEMAND FOR JURY TRIAL Pursuant to Rule 38(b) of the Federal Rules of Civil Procedure, Plaintiff GATEKEEPER SYSTEMS, INC. hereby demands a trial by jury on all issues so triable that are raised herein or that hereinafter may be raised in this action. Respectfully submitted, KNOBBE, MARTENS, OLSON & BEAR, LLP

Dated: October 21, 2013

By: /s/ Michael K. Friedland Michael K. Friedland Nicholas M. Zovko Samantha Y. Hsu Attorneys for Plaintiff GATEKEEPER SYSTEMS, INC.

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Complaint