IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS TYLER DIVISION Civil Action No.

____________________ CRIMINAL ACTIVITY SURVEILLANCE, LLC, Plaintiff, v. ADT SECURITY SERVICES, INC.; AMAG TECHNOLOGY, INC.; AMERICAN DYNAMICS, A TYCO INTERNATIONAL COMPANY; BOSCH SECURITY SYSTEMS, INC.; LIGHTHOUSE VIDEO SURVEILLANCE, LLC; MANGO DSP, INC.; NEC CORPORATION OF AMERICA; ON-NET SURVEILLANCE SYSTEMS, INC.; PELCO, INC.; SIEMENS INDUSTRY, INC.; and UDP TECHNOLOGY LTD., Defendants.

COMPLAINT WITH JURY DEMAND

Plaintiff Criminal Activity Surveillance, LLC, for its Complaint with Jury Demand against Defendants ADT Security Services, Inc.; AMAG Technology, Inc.; American Dynamics, a Tyco International Company; Bosch Security Systems, Inc.; Lighthouse Video Surveillance, LLC; Mango DSP, Inc.; NEC Corporation of America; On-Net Surveillance Systems, Inc.; Pelco, Inc.; Siemens Industry, Inc.; and UDP Technology Ltd. (hereinafter referred to collectively as "Defendants" unless otherwise specified), alleges as follows: I. THE PARTIES 1. Plaintiff Criminal Activity Surveillance, LLC ("CAS") is a Delaware limited

liability company with a principal place of business at 6136 Frisco Square Boulevard, Suite 385, Frisco, Texas 75034.

2.

Upon information and belief, Defendant ADT Security Services, Inc. ("ADT") is

a Delaware corporation with a principal place of business located at One Town Center Road, Boca Raton, Florida 3486. ADT may be served through its registered agent, Corporation Service Company, 350 North Saint Paul, Suite 2900, Dallas, Texas 75201. Upon further information and belief, ADT offers products and services through an authorized dealer located in Tyler, Texas and also currently transacts business throughout the Tyler division. 3. Upon information and belief, Defendant AMAG Technology, Inc. ("AMAG") is a

Delaware corporation with a principal place of business located at 20701 Manhattan Place, Torrance, California 90501. AMAG may be served through its registered agent, Corporation Service Company, 211 East 7th Street, Suite 620, Austin, Texas 78701. 4. Upon information and belief, Defendant American Dynamics, a Tyco

International Company ("American Dynamics"), is a Nevada corporation with its principal place of business located at One Town Center Road, Boca Raton, Florida 33486. American Dynamics may be served via its registered agent, CT Corporation System, 1200 South Pine Island Road, Plantation, Florida 33324. 5. Upon information and belief, Defendant Bosch Security Systems, Inc. ("Bosch")

is a New York corporation with a principal place of business located at 130 Perinton Parkway, Fairport, New York 14450. Bosch may be served through its registered agent, Corporation Service Company, 80 State Street, Albany, New York 12207-2543. 6. Upon information and belief, Defendant Lighthouse Video Surveillance, LLC

("Lighthouse") is a Texas limited liability company having a principal place of business located at 18222 Point Lookout, Nassau Bay, Texas 77058. Lighthouse may be served through its registered agent, Marc H. Schneider, 15150 Middlebrook Drive, Houston, Texas 77058.

7.

Upon information and belief, Defendant Mango DSP, Inc. ("Mango") is a

Delaware corporation having a principal place of business located at 83 East Avenue, Norwalk, Connecticut 06851. Mango may be served through its registered agent, Stanley M. Young, 41 Cranbury Road, Norwalk, Connecticut 06851. 8. Upon information and belief, Defendant NEC Corporation of America ("NEC") is

a Nevada corporation having a principal place of business located at 6535 North State Highway 161, Irving, Texas 75039. NEC may be served through its registered agent, National Registered Agents, Inc., 16055 Space Center Boulevard, Suite 235, Houston, Texas 77062. 9. Upon information and belief, Defendant On-Net Surveillance Systems, Inc.

("OnSSI") is a New York corporation with its principal place of business located at One Blue Hill Plaza, Seventh Floor, Pearl River, New York 10965. OnSSI may be served at 222 Route 59, Suite 303, Suffern, New York 10901. 10. Upon information and belief, Defendant Pelco, Inc. ("Pelco") is a Delaware

corporation having a principal place of business located at 3500 Pelco Way, Clovis, California 93612-5699. Pelco may be served through its registered agent, Corporation Service Company, 211 East 7th Street, Suite 620, Austin, Texas 78701. 11. Upon information and belief, Defendant Siemens Industry, Inc. ("Siemens") is a

Delaware corporation having a principal place of business located at 170 Wood Avenue, South Iselin, New Jersey 08830. Siemens may be served through its registered agent, CT Corporation System, 350 North Saint Paul Street, Suite 2900, Dallas, Texas 75201. 12. Upon information and belief, Defendant UDP Technology Ltd. ("UDP") is a

foreign corporation registered to do business in Colorado, with a USA headquarters and business address of 3553 Clydesdale Parkway, Suite 110, Loveland, Colorado 80538. UDP may be

served through its registered agent, Carl Ream, 333 South Federal Boulevard, Suite 212, Denver, Colorado 80219. II. JURISDICTION AND VENUE 13. This Court has exclusive jurisdiction of this action for patent infringement

pursuant to 28 U.S.C. 1338(a). 14. Upon information and belief, Defendants each have minimum contacts with the

Eastern District of Texas such that this forum is a fair and reasonable one. Specifically and also upon information and belief, Defendants have each committed such purposeful acts and/or transactions in Texas that they reasonably knew and/or expected that they could be hauled into court as a future consequence of such activity. Also specifically and upon information and belief, Defendants have transacted and/or, at the time of the filing of this Complaint, are transacting business within the Eastern District of Texas. For these reasons, personal jurisdiction exists over each of the Defendants. 15. Venue is proper in this Court under 28 U.S.C. 1391(b) and (c) as one or more

Defendants may be found in this judicial district and as each Defendant is subject to personal jurisdiction within this judicial district. Venue is also proper in this Court under 28 U.S.C. 1400(b) as one or more Defendants have committed acts of infringement in this judicial district. Venue is proper in this particular district, upon information and belief, because

Defendants do business here and at least one Defendant has an authorized distributor of infringing product in the division. III. THE TECHNOLOGY 16. The technology at the heart of this dispute relates to Video Surveillance and

analysis, which involves the use of intelligent video monitoring equipment (typically a

combination of hardware and software) to analyze video images and provide an appropriate response signal (referred hereinafter as "Video Surveillance"). 17. In the ten years following the terrorist attacks of September 11, the demand and

usage of Video Surveillance systems have exploded. At least several billion dollars have been spent to install or upgrade Video Surveillance equipment at airports, train stations, commercial ports, national monuments, historic buildings, state capitols, military facilities, museums, libraries, factories and private commercial buildings. 18. The U.S. Department of Homeland Security (the "Department") was created in

response to the demand for increased domestic security precautions. A significant portion of the Department's budget is dedicated to obtaining and analyzing video content to asses potential threats and take appropriate action in light of those threats. 19. One area of focus of the Department is transportation. Upon information and

belief, the Transportation Security Administration ("TSA") has provided grants to over 50 airports in the United States for improving Video Surveillance technology since 2002. In 2009 alone, the TSA provided approximately $70 million to fund enhanced closed-circuit television technology ("CCTV") installations at 20 U.S. airports, which typically include installation of enhanced Video Surveillance technology. 20. The considerable expansion of Video Surveillance technology over the last ten

years has not been confined to TSA grants or federal government facilities. Video surveillance technology has been adapted for use and is now being used in numerous industrial, retail, educational and healthcare environments, and is widely used on streets and roads for increasing public safety and the operational efficiency of traffic control systems.

21.

For example, in 2010, the Video Security Business Manager for Texas

Instruments, Mr. Danny Petkevich, stated "The video surveillance market is undergoing rapid change as intelligent cameras proliferate many diverse markets." 22. A recent study published by IMS Research reported that the demand for reliable

Video Surveillance is increasing at a compound annual growth rate of 38% and will achieve a market value of $4 billion by this end of 2011. A. The Inventor And His Technology 23. The inventor of original U.S. Patent No. 6,028,626 ("the '626 Patent") and

subsequent Reissue Patent No. RE42,690 ("the '690 Patent"), Mr. David G. Aviv, has over 50 years of experience as an electrical engineer and developer of advanced technology systems. In particular, Mr. Aviv has an extensive background in developing satellites, satellite systems, and laser space communications. As a result of his experience, he has served as the Chairman of the Institute of Electrical and Electronics Engineers ("IEEE") Las Vegas Chapter, he was the Vice Chairman of the Communications and Computer Division of the IEEE in Los Angeles, and he was the Chairman of the Education division of the IEEE in New York. Mr. Aviv has also published a book on laser space communications and won various awards in the engineering field. 24. Included with his work experience, Mr. Aviv served as President of Applied

Research and Consulting, Inc., or A.R.C., Inc. ("ARC"). During his time at ARC, he designed and developed several security surveillance technologies for various applications, such as monitoring cardiovascular patients and tracking parked automobiles for car-rental organizations. Mr. Aviv also designed and developed the Public Eye Security System, which later led to the development of technology claimed in the original '626 Patent.

25.

Public safety became a personal interest of Mr. Aviv in the 1980s. At that time,

Mr. Aviv's son was a medical student in New York. His son had told Mr. Aviv of a surgeon working at New York Presbyterian hospital that was assaulted and killed leaving the hospital late at night. Mr. Aviv believed better, smarter security was needed to protect society. 26. In the 1990s, when Mr. Aviv's son became an attending physician at the same

hospital, Mr. Aviv became very concerned for his son's safety. Mr. Aviv's son worked until very late, often leaving the hospital at 2 or 3 a.m. There were very few security guards at the hospital and his son walked the same route from the hospital to his car that the murdered surgeon had taken. 27. Due to the continuing lack of security at the hospital, Mr. Aviv conceived of a

security system that would utilize video sensors and software that could detect suspicious acts as they occurred. When a suspicious act was occurring, an alarm or alert could be transmitted to law enforcement or security. Mr. Aviv thought such a security system could also be beneficial for the public safety at large and perhaps have application in the national security arena. B. Mr. Aviv's Licensing Efforts 28. The '626 Patent was originally assigned to ARC. Mr. Aviv, on behalf of ARC,

then made many attempts to commercialize and license the '626 Patent. As part of this process, Mr. Aviv approached several companies and gave presentations on the Public Eye Security System. 29. In 1998, Siemens and ARC first came into contact when both were given an

opportunity to display their respective security camera systems on a subway platform provided by the New York Metropolitan Transit Authority ("MTA"). At that time, since ARC did not have its system built, Mr. Aviv sent a letter to Siemens regarding the Public Eye Security System

hoping to interest Siemens into perhaps combining the strongest elements of their respective systems. Mr. Aviv received no response from Siemens. 30. In 2006, Mr. Aviv gave a presentation to Siemens regarding the Public Eye

Security System. During the meeting Siemens seemed very interested in the Public Eye Security System, and in fact asked for more information. However, Siemens ultimately stopped returning any follow-up phone calls or emails. 31. In addition to Siemens, Mr. Aviv has contacted other entities in his attempts to

commercialize the original '626 Patent. 32. In 1995, Mr. Aviv briefed a senior executive at then Lockheed Sanders, Inc. and

had ongoing communications with Lockheed Martin until approximately 2000, which required the execution of a nondisclosure agreement. Subsequent communications resumed again in 2003, when Mr. Aviv contacted BAE Systems, Inc. who acquired Lockheed Sanders, Inc., and offered to brief the company on the Public Eye Security System again. 33. In 2002, Mr. Aviv also presented the Public Eye Security System to an executive

at L-3 Communications in New York City and had subsequent communications. 34. Also in 2002, Mr. Aviv requested and met with an executive and engineer at the Prior to the meeting, Raytheon

Raytheon Company at its El Segundo, California office.

Company and Mr. Aviv entered into a nondisclosure agreement. After Mr. Aviv's presentation to Raytheon Company, Mr. Aviv followed-up on its request for additional information on the Public Eye Security System. Ultimately, Mr. Aviv felt that Raytheon was requesting information to implement its own system using features of the Public Eye Security System, so he did not pursue further communications.

35.

Mr. Aviv met with an executive at the Motorola headquarters in Illinois also in

2002. Motorola was partnering with another company at that time for its Video Surveillance systems. 36. In 2003, Mr. Aviv briefed a team of engineers at Northrop Grumman Corporation.

The discussions were detailed enough that Mr. Aviv also entered into a nondisclosure agreement with Northrop Grumman Corporation. 37. Other companies and entities which Mr. Aviv approached and then presented the

Public Eye Security System to were the Defense Advanced Research Projects Agency ("DARPA"), an agency within the Department of Defense and Aerospace Corporation in 2003, Network Appliance in 2001, the Rand Corporation in 1999 and Citicorp Technology in 1998. 38. Mr. Aviv believed strongly in this technology disclosed in the '626 Patent and the

good it could provide society. Ultimately, the '626 Patent was assigned to Prophet, in part due to Mr. Aviv's deteriorating health. 39. Patent. 40. Through an Exclusive License Agreement, CAS was granted all substantive By assignment from Mr. Aviv, through ARC, Prophet is the owner of the '690

rights, including the exclusive right to enforce and collect damages for past, present and future infringement of the '690 Patent during all relevant times to this action. 41. A reissue proceeding was initiated by Prophet before filing any patent

infringement actions to thoroughly allow the United States Patent and Trademark Office ("USPTO") to vet and address all of the pertinent prior art of which CAS, Prophet and Mr. Aviv were aware. The '690 Patent is presumed valid and enforceable pursuant to 35 U.S.C. 282.

IV. THE PATENT-IN-SUIT 42. Prior to Mr. Aviv's groundbreaking innovations, early surveillance systems were

dependent on a single person to scan one or more video monitors, in "real" time, and effectively monitor an area to be protected. These early systems required a relatively high level of

dependency on the alertness of the person scanning the monitors to respond to an abnormal act or situation observed within the protected area. 43. Furthermore, these systems are often left to the discretion of security personnel to

determine: (1) if there is any abnormal event in progress within the protected area; (2) the level of concern placed on that particular event; and (3) what actions should be taken in response to the particular event. The reliability of these early systems were thereafter dependent on the decision making capabilities and efficiency of the worker observing the video monitors. 44. Certain providers attempted to increase a user's efficiency by adding certain

"enhancements" to then existing systems, such as a "quaded display" system which allowed fewer personnel to adequately supervise the monitors and thereby cover a larger protected area by condensing images onto fewer monitors. These enhancements, however, still require the constant attention of at least one person. The use of multiple-image/single screen systems also suffered from poor resolution and provided the user with complex viewing arrangements. Thus, there was and is a great need for trainable surveillance systems which detect and respond to abnormal activity captured by video input signals and which do not suffer from the described human shortcomings. 45. On February 22, 2000, the '626 Patent, which is a continuation-in-part of U.S.

Patent No. 5,666,157, was duly and legally issued for an "Abnormality Detection and Surveillance System" in the name of David G. Aviv. A reissue proceeding of the '626 Patent was filed in the USPTO on May 14, 2009. On September 13, 2011, the USPTO issued the '690 10

Patent, with issued independent Claims 1, 4, 6, 29, 40, 41 and 42. A true and correct copy of the '690 Patent is attached hereto as Exhibit A. 46. The '690 Patent generally relates to methods for determining criminal activity by

an individual within a field of view of at least one video camera. 47. The Abstract of the '690 Patent relevantly provides:

A surveillance system having at least one primary video camera for translating real images of a zone into electronic video signals at a first level of resolution. The system includes means for sampling movements of an individual or individuals located within the zone from the video signal output from at least one video camera. Video signals of sampled movements of the individual is electronically compared with known characteristics of movements which are indicative of individuals having a criminal intent. The level of criminal intent of the individual or individuals is then determined and an appropriate alarm signal is produced. 48. Independent Claim 1 of the '690 Patent reads:

1. A method for determining criminal activity by an individual within a field of view of [a] at least one video camera, said method comprising: sampling [the] relative movements, from one or more images captured by said at least one video camera of said field of view, of an individual with respect to a moved, movable or moving object located within said field of view using said at least one video camera to generate a video signal; electronically comparing said video signal of said at least one video camera with known characteristics of relative movements of the individual with respect to the object that are indicative of an individual having criminal intent; determining the level of criminal intent of said individual, said determining step being dependent on said electronically comparing step; and generating a signal indicating that a predetermined level of criminal intent is present as determined by said determining step. (Bracketed deletions original in reissued claim.) 49. Independent Claim 6 of the '690 Patent reads:

6. A method for determining criminal activity by an individual within a field of view of at least one video camera, the method comprising: generating, using said at least one video camera, a video signal of the individual within the field of view of the at least one video camera; sampling a relative movement, from one or more images captured by said at least one video camera of said field of view, of the individual with respect to a moved, movable or moving object captured by said at least one video camera of said field of view; 11

electronically comparing the sampled relative movement of the individual with known characteristics of movements that are indicative of an individual having criminal intent; determining a level of criminal intent of the individual based on the compared sampled movement of the individual; and generating a signal indicating that a predetermined level of criminal intent is present if the determined level of criminal intent of the individual establishes that the predetermined level of criminal intent is present. V. DEFENDANTS' INFRINGEMENT 50. Upon information and belief, and as further described below, Defendants have

directly and/or jointly manufactured, made, had made, used, practiced, imported, provided, supplied, distributed, sold, and/or offered for sale products and/or services that are infringing one or more claims of the '690 Patent and/or Defendants are inducing and/or contributing to the infringement of one or more of the claims of the '690 Patent by others. ADT 51. Upon information and belief, ADT provides video surveillance and security

analytics, incorporating Bosch intelligent video analytics (IVA). By way of example only and upon information and belief, ADT offers for sale and sells video surveillance systems, including cameras that incorporate video analytic processing capability that capture, analyze and transfer video and allow real time viewing of the video feed. Upon information and belief, the analytics is capable of implementing different rules for triggering and forwarding alerts to system operators, including object left behind and object removed, among others. 52. On information and belief, ADT is infringing, literally and/or under the doctrine

of equivalents, the '690 patent in Texas and in this District by, among other things, making, using, importing, offering for sale and/or video surveillance and security analytics systems, including, but not limited to systems that generate, using a video camera, a video signal of an individual within a field of view of a camera; sample a relative movement from one or more images captures by a video camera of the field of view of the individual with respect to a moved, 12

movable or moving object captured by the video camera of the field of view; electronically compare the sampled relative movement of the individual with known characteristics of movement that are indicative of an individual having criminal intent; determine a level of criminal intent of the individual based upon the compared sampled movement of the individual; and generate a signal indicating that the predetermined level of criminal intent is present if the determined level of criminal intent of the individual establishes that the predetermined level of criminal intent is present. 53. By way of example only and upon information and belief, the sampling of relative

movement of an individual with respect to an object performed by ADTs video surveillance and security analytics systems includes movement of the object with respect to the individual and/or a lack of movement of the object with respect to the individual. 54. Upon information and belief, ADTs products infringe one or more claims of the

'690 Patent, literally and/or under the doctrine of equivalents. Upon information and belief, ADT's products and activities induce others, including purchasers and users of at least some configurations of ADTs video surveillance and security analytics systems to infringe the '690 Patent. AMAG 55. AMAG holds itself out as a market leader in the design and manufacture of fully

integrated access control and video security solutions around the world and a company that provides a complete security package designed to protect staff, premises and assets. AMAG offers for sale and sells a range of Symmetry Security Management Systems which provide integrated solutions in the area of automated security. By way of example only and upon information and belief, AMAG's Symmetry EN-7500 Series range of high performance network cameras with H.264 compression includes Intelligent Detection - a unique tracking engine is 13

used to perform intelligent analysis of motion for intrusion and tamper detection.

Upon

information and belief, cameras within the system also offer sophisticated Video Content Analytics (VCA), extending the capabilities of the Intelligent Detection to include additional filters for entry/exit, appear/disappear, dwell, direction, abandoned/removed objects and counting linked to the detection rule. Upon information and belief, these intelligent analytics features can be and are used with AMAG's Symmetry Security Management System linking into triggers within the command and control function. Upon information and belief, this capability activates alarms and initiates predetermined security level changes, creating a seamless enhanced security solution across any site. 56. By way of example only and upon information and belief, AMAG's Symmetry

range of network cameras with Intelligent Detection and VCA generate, using a video camera, a video signal of an individual within a field of view of a camera; sample a relative movement from one or more images captures by a video camera of the field of view of the individual with respect to a moved, movable or moving object captured by the video camera of the field of view; electronically compare the sampled relative movement of the individual with known characteristics of movement that are indicative of an individual having criminal intent; determine a level of criminal intent of the individual based upon the compared sampled movement of the individual; and generate a signal indicating that the predetermined level of criminal intent is present if the determined level of criminal intent of the individual establishes that the predetermined level of criminal intent is present. 57. By way of example only and upon information and belief, the sampling of relative

movement of an individual with respect to an object performed by AMAG's Symmetry range of network cameras with Intelligent Detection and VCA includes movement of the object with respect to the individual and/or a lack of movement of the object with respect to the individual. 14

58.

Upon information and belief, AMAG's products infringe one or more claims of

the '690 Patent, literally and/or under the doctrine of equivalents. Upon information and belief, AMAG's products and activities induce others, including purchasers and users of at least some configurations of AMAG's Symmetry Security Management Systems (specifically including but not limited to those which utilize the Mate Behavior Watch model) to infringe the '690 Patent. American Dynamics 59. American Dynamics holds itself out as having enormous product penetration into

the video security/surveillance market. By way of example only and upon information and belief, American Dynamics offers IntelliVid video intelligence solutions. Upon information and belief, IntelliVid software provides the tools to generate tangible bottom-line improvements by reducing internal and external theft, allowing for more effective and efficient investigations, and providing a better understanding of in-store customer behavior. Upon information and belief IntelliVid software "watches" all system cameras, 24/7, proactively identifying theft and suspicious activity while also indexing the video to simplify forensic analysis. Upon information and belief, American Dynamics IntelliVid goes beyond simple motion-based, one-off analytics, combining best-in-class intelligent video alerts, forensic search, and tracking into an easy-to-use interface, helping achieve better results more quickly. Upon information and belief, features of IntelliVid include notification of merchandise wipeouts, dwell, direction, people and object removal. Whether trying to protect high-theft merchandise in a busy retail store or watching for suspicious bags, intelligent asset alerts provide notice when objects appear or are removed. 60. By way of example only and upon information and belief, American Dynamics'

IntelliVid software includes intelligent video alerts regarding asset placement and removal. IntelliVid provides linger alerts when a person or group spends too much time within a defined

15

area. IntelliVid also can provide direction and velocity alerts to tailor the alert region and parameters to identify specific behavior of interest. 61. By further way of example only and upon information and belief, American

Dynamics' Intellex digital video management system is also offered in combination with third party video analytics, including Mate Behavior Watch which, in combination, process video streams originating from the Intellex family of digital and/or network video recorders. Upon information and belief, Behavior Watch in combination with Intellex digital and/or network video recorders create an intelligent Video Surveillance system able to detect intrusion, suspicious objects (e.g., objects left behind), removed objects (e.g., a painting) and undesirable behavior (e.g., loitering). Upon information and belief, an alarm is generated and sent when an alarm condition is detected. 62. On information and belief, American Dynamics' products infringe the '690 patent,

either literally and/or under the doctrine of equivalents. Upon information and belief, American Dynamics' products and activities induce others, including purchasers and users of at least the IntelliVid system and the Intellex video management system in combination with third party video analytics to infringe the '690 Patent. Bosch 63. Upon information and belief, Bosch offers a complete fully integrated intelligent

Video Surveillance system, comprising video capture, video analysis, video compression and transmission, real time and historic video viewing, storage, searching and exporting. Embedded into Bosch's IP cameras and encoders is intelligent video analysis (IVA). IVA is completely self-contained and requires no PCs, servers or other software to function. IVA features various detection scenarios: loitering, trip-wire, idle object, object removed, trajectory, speeding, speed

16

& size filters, and color detection. IVA is tightly integrated to Bosch's video management software (VMS) so that the VMS can generate a specific response to an alarm. 64. By way of example only and upon information and belief, Bosch's Video

Surveillance system with IVA and VMS generates, using a video camera, a video signal of an individual within a field of view of a camera; sample a relative movement from one or more images captures by a video camera of the field of view of the individual with respect to a moved, movable or moving object captured by the video camera of the field of view; electronically compare the sampled relative movement of the individual with known characteristics of movement that are indicative of an individual having criminal intent; determine a level of criminal intent of the individual based upon the compared sampled movement of the individual; and generate a signal indicating that the predetermined level of criminal intent is present if the determined level of criminal intent of the individual establishes that the predetermined level of criminal intent is present. 65. By way of example only and upon information and belief, the sampling of relative

movement of an individual with respect to an object performed by Bosch's Video Surveillance system with IVA and VMS includes movement of the object with respect to the individual and/or a lack of movement of the object with respect to the individual. 66. Upon information and belief, Bosch's products infringe one or more claims of the

'690 Patent, literally and/or under the doctrine of equivalents. Upon information and belief, Bosch's products and activities induce others, including purchasers and users of at least some configurations of Bosch's Video Surveillance system with IVA and VMS to infringe the '690 Patent.

17

Lighthouse 67. Upon information and belief, Lighthouse offers a variety of wide ranging Video

Surveillance systems designed to meet any imaginable application in any environment. Upon information and belief, Lighthouse offers custom Video Surveillance system design and high quality equipment, including offering advance technologies for large businesses. By way of example only and upon information and belief, Video Surveillance systems offered for sale and sold by Lighthouse include video analytic features such as unattended object detection used to trace an unattended object that appears in a defined detection perimeter and where the object configuration can generate an alarm, missing object detection for keeping an eye on valuable objects and where an alarm is generated if the object is missing and crowd detection including loitering, among other features. 68. On information and belief, Lighthouse is infringing, literally and/or under the

doctrine of equivalents, the '690 patent in Texas and in this District by, among other things, making, using, importing, offering for sale and/or selling intelligent Video Surveillance systems, including, but not limited to systems that generate, using a video camera, a video signal of an individual within a field of view of a camera; sample a relative movement from one or more images captures by a video camera of the field of view of the individual with respect to a moved, movable or moving object captured by the video camera of the field of view; electronically compare the sampled relative movement of the individual with known characteristics of movement that are indicative of an individual having criminal intent; determine a level of criminal intent of the individual based upon the compared sampled movement of the individual; and generate a signal indicating that the predetermined level of criminal intent is present if the determined level of criminal intent of the individual establishes that the predetermined level of criminal intent is present. 18

69.

By way of example only and upon information and belief, the sampling of relative

movement of an individual with respect to an object performed by intelligent Video Surveillance systems offered for sale and sold by Lighthouse includes movement of the object with respect to the individual and/or a lack of movement of the object with respect to the individual. 70. Upon information and belief, Lighthouse's products infringe one or more claims

of the '690 Patent, literally and/or under the doctrine of equivalents. Upon information and belief, Lighthouse's products and activities induce others, including purchasers and users of at least some configurations of Lighthouse's intelligent Video Surveillance systems (specifically including but not limited to those which utilize the Mate Behavior Watch model) to infringe the '690 Patent. Mango 71. Upon information and belief, Mango is a developer and manufacturer of

intelligent Video Surveillance devices. According to its website, Mango provides some of the world's leading surveillance OEM manufacturers in the homeland security and defense markets with the products to drive their solutions. Mango provides customizable digital video processing solutions for Video Surveillance and defense OEMs. encoding, decoding and content analysis. Mango's solutions combine video

Mango has developed Mango Intelligent Video

Software (IVS), an open architecture operating system for its video servers. Upon information and belief, Mango IVS integrates with Mango's own Mate brand intelligent video analytics and also makes integration of video content analysis algorithms from different third party vendors possible. Indeed, Mango has partnered with a number of the top video analytic algorithm companies in the world to create "Intelligent Video Servers." By embedding real time video analysis into the video encoder, operators monitoring the control center are automatically alerted each time one of the cameras detects an abnormal behavior. 19

72.

Upon Information and belief, video analytic systems provided by Mango work by

monitoring a video feed, recognizing and classifying objects in the picture and matching their behavior against a set of predefined rules. When a rule is violated, the video server alerts the control center (VMS) and can immediately trigger an action such as sounding an alarm or triggering video recording as well as marking the video using a bounding box to help draw the attention of the operator. By way of example only and upon information and belief, Mango Raven and Pegasus intelligent video servers integrate video analytic algorithms using IVS to enable video security devices to analyze video streams and apply a large set of user definable rules. Typical algorithms included in Mango Video Surveillance systems are object removed, object left behind and tailgating. Upon information and belief, other analytic applications

include object detection, object classification (human, vehicle, other), object crossing a boundary (tripwire), object remaining in certain area (loitering), object counting, license plate recognition (LPR) and face recognition. In addition to the video analytics, and upon information and belief, Mango's Intelligent Video Servers are able to perform video encoding and connect to PTZ cameras, relay and alarms. Mango Intelligent Video Servers are integrated with most major video management systems (VMS) or, alternately, work in stand-alone mode, allowing full control and viewing of video and alerts using standard web browsers. 73. By way of example only and upon information and belief, Mango's intelligent

Video Surveillance systems generate, using one or more video cameras, a video signal of an individual within a field of view of a camera; sample a relative movement from one or more images captured by a video camera of the field of view of the individual with respect to a moved, movable or moving object; electronically compare the sampled relative movement of the individual with known characteristics of movement that are indicative of an individual having criminal intent; determine a level of criminal intent of the individual based upon the compared 20

sampled movement of the individual; and generate a signal indicating that the predetermined level of criminal intent is present if the determined level of criminal intent of the individual establishes that the predetermined level of criminal intent is present. 74. By way of example only and upon information and belief, the sampling of relative

movement of an individual with respect to an object performed by Mango's intelligent Video Surveillance systems includes movement of the object with respect to the individual and/or a lack of movement of the object with respect to the individual. 75. '690 Patent. Upon information and belief, Mango's products infringe one or more claims of the Upon information and belief, Mango's products and activities induce others,

including purchasers and users of at least some configurations of Mango's intelligent Video Surveillance systems to infringe the '690 Patent. NEC 76. Upon information and belief, NEC offers for sale and sells intelligent Video

Surveillance systems that include video analytics that provide behavior detection solutions that monitor behaviors and fag any actions predetermined as unusual. Upon information and belief, a video clip is sent instantly to security personnel capturing the activity that triggers an alarm. By way of example only and upon information and belief, NEC's intelligent Video Surveillance systems utilize Vidient Systems, Inc. (now Agilence, Inc.) analytics which provide real time video monitoring and detection and alerting of security violations. Upon information and belief, available behavior recognition modules include, but are not limited to, unattended objects, removed objects, loitering, tailgating and perimeter intrusion, among others. 77. By way of example only and upon information and belief, NES's intelligent Video

Surveillance systems generate, using one or more video cameras, a video signal of an individual within a field of view of a camera; sample a relative movement from one or more images 21

captured by a video camera of the field of view of the individual with respect to a moved, movable or moving object; electronically compare the sampled relative movement of the individual with known characteristics of movement that are indicative of an individual having criminal intent; determine a level of criminal intent of the individual based upon the compared sampled movement of the individual; and generate a signal indicating that the predetermined level of criminal intent is present if the determined level of criminal intent of the individual establishes that the predetermined level of criminal intent is present. 78. By way of example only and upon information and belief, the sampling of relative

movement of an individual with respect to an object performed by NEC's intelligent Video Surveillance systems includes movement of the object with respect to the individual and/or a lack of movement of the object with respect to the individual. 79. Upon information and belief, NEC's products infringe one or more claims of the

'690 Patent. Upon information and belief, NEC's products and activities induce others, including purchasers and users of at least some configurations of NEC's intelligent Video Surveillance systems to infringe the '690 Patent. OnSSI 80. On information and belief, OnSSI provides Video Surveillance in which intuitive

software seamlessly connects and improves security processes and makes up for the limits of human capacity. On information and belief, OnSSI's products provide proactive, results oriented security solutions that can help to prevent incidents, instead of merely record them. On information and belief, OnSSI offers a comprehensive IP Video Surveillance control and management software solution, and continues to develop the most advanced IP-based intelligent Video Surveillance solutions in the market.

22

81.

By way of example only and upon information and belief, OnSSI's flagship IP-

video and security platform, named Ocularis, is a comprehensive video management system that combines powerful network video recorders (NVRs) with physical security information management (PSIM) functionality. Upon information and belief, Ocularis' provides video and alerts from across an organization and are converted into meaningful events, for efficient shared handling and building a video-evidence case file. By way of example only and upon information and belief, automated features of the Ocularis software combine multiple alarms into meaningful alerts, which results in better security and less need for operators watching screens, and this in turn lowers operating costs. By way of example only and upon information and belief, Ocularis Analytics, which comprises numerous configurable software modules, enable the automated detection of specific movement and behavior patterns, both human and vehicular, significantly increasing the effectiveness and responsiveness of the entire video and security system. 82. On information and belief, with Ocularis Analytics, alerts are generated on

specific behaviors, rather than for each and every detected motion which reduces false detection and false alarm rates, while reducing, and in some cases even eliminating altogether, the need for live monitoring of video from large camera systems. By way of example only and upon information and belief, Ocularis Analytics configurable detection modules include: Suspicious (Abandoned) Object detection of abandoned object in area of interest with filters for size and length of time object is present, Asset Protection detects the removal of up to 20 objects from a camera's field of view and reports an event when an object is removed or hidden for more than the specified amount of time and Tailgating - detection of person or vehicle crossing entry/access-point line within a user-defined time interval after another person or vehicle. 83. By way of example only and upon information and belief, OnSSI's Ocularis

intelligent Video Surveillance systems generate, using one or more video cameras, a video signal 23

of an individual within a field of view of a camera; sample a relative movement from one or more images captured by a video camera of the field of view of the individual with respect to a moved, movable or moving object; electronically compare the sampled relative movement of the individual with known characteristics of movement that are indicative of an individual having criminal intent; determine a level of criminal intent of the individual based upon the compared sampled movement of the individual; and generate a signal indicating that the predetermined level of criminal intent is present if the determined level of criminal intent of the individual establishes that the predetermined level of criminal intent is present. 84. By way of example only and upon information and belief, the sampling of relative

movement of an individual with respect to an object performed by OnSSI's Ocularis intelligent Video Surveillance systems includes movement of the object with respect to the individual and/or a lack of movement of the object with respect to the individual. 85. '690 Patent. On information and belief, OnSSI's products infringe one or more claims of the Upon information and belief, OnSSI's products and activities induce others,

including purchasers and users of at least some configurations of OnSSI's intelligent Video Surveillance systems (specifically including but not limited to those which utilize the Mate Behavior Watch model) to infringe the '690 Patent. Pelco 86. Upon information and belief, Pelco holds itself out as a world leader in the design,

development and manufacture of next-generation video and security systems. Pelco further states that its security systems trusted to protect the world's most treasured landmarks, watch over cities and secure businesses. Pelco further states that its high definition (HD) Video Management and Camera Systems offer a complete array of IP, Hybrid and Analog technologies and that its systems have and continue to set the benchmark for video security excellence. Upon 24

information and belief, Pelco security systems include intelligent video analytics which, through automated digital screening and filtering can identify operators of potential issues. By way of example only and upon information and belief, Pelco systems monitor and detect directional motion, object removal, abandoned object and loitering, among other conditions. 87. By way of example only and upon information and belief, Pelco analytics

packages are included with Spectra HD cameras, Sarix EP cameras and NET5400 Series encoders at no extra charge. Pelco analytics also work with the Pelco Endura system. 88. By way of example only and upon information and belief, Pelco also has the

ability to embed the ObjectVideo suite of analytics behaviors into its Sarix-based megapixel cameras. The ObjectVideo analytic suite includes varying behaviors such as tripwire detection, inside area detection, camera tamper detection, loitering detection, leave behind detection, enters/exits counting, occupancy sensing and dwell-time monitoring. 89. By way of example only and upon information and belief, Pelco's security

systems with its own video analytics or incorporating video analytics of ObjectVideo generate, using one or more video cameras, a video signal of an individual within a field of view of a camera; sample a relative movement from one or more images captured by a video camera of the field of view of the individual with respect to a moved, movable or moving object; electronically compare the sampled relative movement of the individual with known characteristics of movement that are indicative of an individual having criminal intent; determine a level of criminal intent of the individual based upon the compared sampled movement of the individual; and generate a signal indicating that the predetermined level of criminal intent is present if the determined level of criminal intent of the individual establishes that the predetermined level of criminal intent is present.

25

90.

By way of example only and upon information and belief, the sampling of relative

movement of an individual with respect to an object performed by Pelco's security systems with its own video analytics or incorporating video analytics of ObjectVideo includes movement of the object with respect to the individual and/or a lack of movement of the object with respect to the individual. 91. '690 Patent. On information and belief, Pelco's products infringe one or more claims of the Upon information and belief, Pelco's products and activities induce others,

including purchasers and users of at least some configurations of Pelco's security systems with its own video analytics or incorporating video analytics of ObjectVideo to infringe the '690 Patent. Siemens 92. Upon information and belief, and according to Siemens, video analytics have

quickly become a key element in today's security applications. Also according to Siemens, integration of surveillance cameras on to a security management station is key to providing a holistic security solution. Also according to Siemens, innovative digital product and system concepts centered on intelligent video analytics and sensor input allow the best possible coordination of system functionality with operator requirements. By way of example only and upon information and belief, comprehensive Video Surveillance solutions from Siemens that incorporate extensive video analytics, such as Siemens' Intelligent Video Management (IVM) and Siveillance products, offer a unique approach to streamlining security management for critical infrastructure, wide-area sites, public areas, buildings, and public safety agencies. Upon information and belief, Siveillance is an automated, intelligent Video Surveillance solution that shows what is happening throughout a selected environment and displays all surveillance input on a single screen. 26

93.

By way of example, and upon information and belief, Siemens offers for sale and

sells a Video Surveillance solution for busy environments, such as airports, train stations, subway stations and shopping malls, named Siveillance Baggage. Siveillance Baggage detects and alerts security conditions such as abandoned baggage and objects, and can also relate an abandoned object to the person who transported the object into the monitored area. 94. By way of example only and upon information and belief, Siemens' Siveillance

security systems, including Siveillance Baggage, generate using one or more video cameras, a video signal of an individual within a field of view of a camera; sample a relative movement from one or more images captured by a video camera of the field of view of the individual with respect to a moved, movable or moving object; electronically compare the sampled relative movement of the individual with known characteristics of movement that are indicative of an individual having criminal intent; determine a level of criminal intent of the individual based upon the compared sampled movement of the individual; and generate a signal indicating that the predetermined level of criminal intent is present if the determined level of criminal intent of the individual establishes that the predetermined level of criminal intent is present. 95. By way of example only and upon information and belief, the sampling of relative

movement of an individual with respect to an object performed by Siemens' Siveillance security systems include movement of the object with respect to the individual and/or a lack of movement of the object with respect to the individual. 96. '690 Patent. On information and belief, Siemens' products infringe one or more claims of the Upon information and belief, Siemens' products and activities induce others,

including purchasers and users of at least some configurations of Siemens' Siveillance security systems to infringe the '690 Patent.

27

UDP 97. Upon information and belief, UDP holds itself out as a leading provider of digital

video solutions for the security and IP surveillance industries. Upon information and belief, UDP's line of products comes fully equipped with a unique Primary Video Analytics package. Upon information and belief, all UDP IPE series IP cameras and NVC Series IP encoders as well as all PC capture card products are provided with video analytics utilizing the VCA analytics engine from VCA Technology. By way of example only and upon information and belief, UPD systems equipped in this way perform intelligent analysis of motion with application areas including intrusion detection, vehicle monitoring, abandoned-object detection, people counting, and loitering detection. 98. By way of example only and upon information and belief, UDP's security systems

with video analytics generate, using one or more video cameras, a video signal of an individual within a field of view of a camera; sample a relative movement from one or more images captured by a video camera of the field of view of the individual with respect to a moved, movable or moving object; electronically compare the sampled relative movement of the individual with known characteristics of movement that are indicative of an individual having criminal intent; determine a level of criminal intent of the individual based upon the compared sampled movement of the individual; and generate a signal indicating that the predetermined level of criminal intent is present if the determined level of criminal intent of the individual establishes that the predetermined level of criminal intent is present. 99. By way of example only and upon information and belief, the sampling of relative

movement of an individual with respect to an object performed by UDP's security systems with video analytics include movement of the object with respect to the individual and/or a lack of movement of the object with respect to the individual. 28

100.

On information and belief, UDP's products infringe one or more claims of the

'690 Patent. Upon information and belief, UDP's products and activities induce others, including purchasers and users of at least some configurations of UDP's security systems with video analytics to infringe the '690 Patent. VI. FIRST CLAIM FOR RELIEF (Patent Infringement -- All Defendants) 101. Plaintiff incorporates herein by reference each and every allegation in paragraphs

1 through 100 as though fully set forth herein. 102. Defendants manufacture, make, have made, use, practice, import, provide, supply,

distribute, sell, and/or offer for sale products and/or services that infringe one or more claims of the '690 Patent in violation of 35 U.S.C. 271(a) and/or are inducing direct infringement of the '690 Patent by others by actively instructing, assisting and/or encouraging others to practice one or more of the inventions claimed in the '690 Patent in violation of 35 U.S.C. 271(b) and/or are contributing to direct infringement of the '690 Patent by others by offering to sell, selling or providing one or more items which constitute a material part of an invention defined by claims of the '690 Patent, knowing the same to especially made or adapted for use in an infringement of the '690 Patent, which components are not staple articles or commodities of commerce suitable for substantial non-infringing use in violation of 35 U.S.C. 271(c). 103. Plaintiff has been damaged as a result of Defendants' infringing conduct.

Defendants are thus liable to Plaintiff in an amount that adequately compensates Plaintiff for such infringement which cannot be less than a reasonable royalty, together with interest and costs as fixed by this Court under 35 U.S.C. 284.

29

VII.

PRAYER FOR RELIEF

Plaintiff requests that the Court find in its favor and against Defendants, and that the Court grant Plaintiff the following relief: A. Judgment that one or more claims of the '690 Patent has been infringed, either

literally, and/or under the doctrine of equivalents, by one or more Defendants and/or by others to whose infringement Defendants have contributed or induced; B. A permanent injunction enjoining each of the Defendants and their officers,

directors, agents, servants, affiliates, employees, divisions, branches, subsidiaries, parents, and all others acting in active concert or participation with them, from infringing the '690 Patent; C. Judgment that Defendants account for and pay to Plaintiff all damages to and

costs incurred by Plaintiff because of Defendants' infringing activities and other conduct complained of herein in an amount not less than a reasonable royalty; D. That Plaintiff be granted pre-judgment and post-judgment interest on the damages

caused to it by reason of Defendants' infringing activities and other conduct complained of herein; and E. That Plaintiff be granted such other and further relief as the Court may deem just

and proper under the circumstances, including an award of enhanced damages and/or determining this to be an exceptional case pursuant to 35 U.S.C. 285 and awarding Plaintiff its reasonable attorneys' fees. VIII. JURY DEMAND Plaintiff hereby requests a trial by jury pursuant to Rule 38 of the Federal Rules of Civil Procedure.

30

SHIELDS, BRITTON & FRASER A Professional Corporation

Dated: September 15, 2011

By:

/s/ John D. Fraser John D. Fraser Attorney-in-Charge State Bar No. 07393550 5401 Village Creek Drive Plano, Texas 75093 Phone: 469-726-3070 Fax: 972-788-4332 E-Mail: jfraser@sbflegal.com

Of Counsel (applications pro hac vice forthcoming) Robert R. Brunelli (pending pro hac admission) rbrunelli@sheridanross.com Todd P. Blakely (pending pro hac admission) tblakely@sheridanross.com Ian R. Walsworth (pending pro hac admission) iwalsworth@sheridanross.com Patricia Y. Ho (pending pro hac admission) pho@sheridanross.com SHERIDAN ROSS P.C. 1560 Broadway, Suite 1200 Denver, Colorado 80202-5141 Telephone: 303-863-9700 Facsimile: 303-863-0223 E-mail: litigation@sheridanross.com ATTORNEYS FOR PLAINTIFF

31