UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

.,

CASE NO,:

TYCO FIRE A SECURITY GMBH, SENSORMATIC ELECTRONICS, LLC, AND TYCO INTEGRATED SECURITY, LLC,
Plaintiffs,

NINGBO SIGNATRONIC TECHNOLOGIES, LTD., ALL-TAG SECURITY AMERICA, INC., BEST SECURITY INDUSTRIES, AND SIGNATRONIC CORPORATION.
Defendants.

COMPLAINT FOR PATENT INFRINGEMENT

Plaintiffs,

Tyco Fire
and

Security

GmbH

("TFSG"), Sensormatic
LLC

Electronics,

LLC

("Sensormatic")

Tyco

Integrated
against

Security,
Defendants

("TIS")

(collectively,

"Tyco" or
Ltd.

"Plaintiffs" ), for their complaint

Ningbo

Signatronic

Technologies,

("Ningbo"), All-Tag Security America, Inc. ("All-Tag America" ), Best Security Industries

("Best")

and Signatronic

Corporation

("Signatronic") (collectively, Ningbo, All-Tag America,

Best and Signatronic are "Defendants" ), allege as follows:

NATURE OF THE LAWSUIT
This is an action for patent
infringement

of United States Patent

Numbers

5,729,200 and 6,181,245, arising under the patent laws of the United States of America, Title 35

of the United States Code.

JURISDICTION AND VENUE

2.
This Court has subject matter jurisdiction
pursuant

to 28 U.S.C

)$ 1331, 1338,

2201 and 2202.

3.
Florida's

The Court has personal jurisdiction

long-arm
statute,

over each Defendant pursuant

that each Defendant:

to, inter alia,

Florida Statute

48.193, in

(a) operates,

conducts, engages in, and/or carries on a business or business adventure(s)

an office or agency in Florida; (b) has committed

in Florida and/or has

one or more tortious acts within Florida; (c)

activity within

was and/or

is engaged
availed itself

in substantial

and not isolated

Florida; and/or

(d) has
should

purposely

of Florida's laws, services

and/or

other benefits and therefore

within the State

reasonably anticipate being hailed into one or more

4

of the courts

of Florida.

Venue is appropriate

in this district pursuant

to 28 U.S.C. ) 1391 and 28 U.S.C $

1400.

THE PARTIES
Plaintiff TFSG is a Swiss limited liability company,
business at Victor-von Bruns Strasse 21, Neuhausen
with a principal

place of

am Rheinfall 8212, Switzerland.

Plaintiff Sensormatic is a Nevada limited liability company with a principal place

of business at 6600 Congress Avenue, Boca Raton, Florida 33487.

7.
Plaintiff TIS is a Delaware limited liability company with a principal place of

business at 1501 Yamato Road, Boca Raton, Florida.

8.
under the laws

On information

and belief, Defendant Ningbo is a Chinese corporation organized

of the Peoples Republic of China

with its principal

place of business

at 505

MingZhou

Road (West) BeiLun District Ningbo, P.R. China 315800. Ningbo manufactures,
acousto-magnetic

imports, sells, and offers to sell infringing

this Judicial District in the State

("AM") labels to customers

within

of Florida.

9.
organized
Parkway,

On information
under the laws

and belief, Defendant

with a principal

All-Tag America is a Florida corporation

place of business at 1155 Broken Sound

of Florida

NW, Unit E. Arvida

Park of Commerce,

Boca Raton, Florida 33487.

All-Tag

America, distributes

Ningbo's

infringing

AM labels within this Judicial District in the State

and the United States.

of

Florida and elsewhere in the State

of Florida

10.
organized

On information

and

belief, Defendant
with a principal

Signatronic

is a Florida

corporation
Sound

under the laws

of Florida

place

of business at 1155 Broken

distributes,

Parkway NW Unit E, Boca Raton, Florida 33487. Signatronic

imports,

sells and

offers to sell Ningbo's infringing

and elsewhere in the State

AM labels within this Judicial District in the State of Florida

and the United States.

of Florida

11.
under the laws

On information

and belief, Defendant

Best is a Delaware corporation organized

of Delaware

with a principal place

of business at 775 NW 17"'venue Suite 101,

Delray Beach, FL 33445.

Best distributes Ningbo's infringing AM labels within this Judicial

District in the State of Florida and elsewhere in the State of Florida and the United States.

FACTUAL BACKGROUND

12.
manufacturing

For many

years,

Tyco has

been

the

industry

leader

in

designing

and

Electronic Article Surveillance ("EAS") systems. Such systems are typically used
in retail stores.

to detect and deter shoplifting

13.

Tyco's EAS systems typically employ a marker, such as a tag or label, that is

affixed to goods for sale. This case involves disposable EAS labels. When a customer attempts to
leave a store with goods,

if the

labels have not been deactivated by a store employee, the labels

are detected by a pedestal at the store's exit and an alarm is sounded.

14,

Many

of Tyco's labels are affixed to goods by the manufacturer

This practice is known as "source tagging."

of the goods

rather than by retail establishments.

15.

Tyco's principal

EAS products operate on an AM basis. An AM tag or label

metal strip

contains a metal ribbon called the "resonator" or "active element" and a magnetized
known as a "bias." When located near the bias, the resonator mechanically

resonates at a certain

frequency

(58 KHz) when it is excited by the electromagnetic

field produced by the detecting

device.

A.

Tveo Patents
Tyco holds numerous
patents

16.

on various

aspects of AM technology.

It has

expended years

of effort

and millions

of dollars to develop this advanced technology. It is the

recognized industry leader, and its customers include the leaders of the retail industry,

17.

Sensormatic is the original assignee of U.S. Patent No. 5, 729,200 (hereinafter the
entitled "Magnetomechanical

"'200 Patent" ),

Electronic Article Surveillance

Characteristic,"

Marker with Bias

Element having Abrupt Deactivation/Magnetization

the United States Patent and Trademark

duly and legally issued by

Office on March 17, 1998. All rights, title and interest

have since been assigned to ADT Services GmbH and then to TFSG. A true copy

of the '200

Patent is attached as Exhibit A.

18.

Sensormatic is the original assignee

of U.S. Patent No. 6,181,245 (hereinafter

the

"'245 Patent" ), entitled "Magnetomechanical

Electronic Article Surveillance Marker with Bias

Characteristic," duly and legally issued by

Element having Abrupt Deactivation/Magnetization

the United States Patent and Trademark Office on January 30,

2001. All rights, title and interest

have since been assigned to ADT Services GmbH and then to TFSG, A true copy

of the '245

Patent is attached as Exhibit

B.

19.
the '245 Patent,

TFSG granted TIS and Sensormatic an exclusive license in the '200 Patent and

20.
infringement

Tyco owns

all right,

title and interest

in, and/or

have

standing

to sue for

of the '200 Patent

and the '245 Patent.

B.
21.

Prior Decision Bv This District On Asserted Patents

The Honorable Daniel T.K. Hurley found that The Tag Company LLC and Phenix

Label Company infringed the '200 Patent and '245 Patent and also found the patents enforceable
and not invalid.

Sensormatic Electronics Corporation

v. The

Tag Company US LLC, et al., 9:06the District Court Judgment.

1

cv-81105-DTKH (SDFL) at 4.

The Federal Circuit affirmed

Sensormatic Electronics, LLC v. Philip Von Kahle, No. 2009-1193, slip op. at

(Fed. Cir. Feb.

17, 2010).
COUNT

(Infringement

of U.S. Patent No. 5,279,200)

22.

Plaintiffs incorporate by reference paragraphs

On information
and belief, the Defendants

1-17 and 19-21,

23.
the State

make, use, offer for sale and/or sell in

of Florida

and/or elsewhere in the United States, EAS labels using AM technology.

24.

The AM Labels, including

AM label T3, AM label T2, AM label K3, AM label

K2, AM Roll Label Rk2, and AM label H3 labels, fall within the scope of the claims for the '200
Patent.

25.
State

The Defendants

act in making, using, offering to sell, and/or selling, within the

in the United States, the AM Labels infringe the claims

of Florida

and/or elsewhere

of the

'200 Patent under 35 U.S.C ( 271 without authority to do so.

26.
On information
and belief, the acts

of infringement

of

the '200 Patent alleged

above are and have been willful, knowing, and deliberate,

27.
infringing,

Tyco will suffer irreparable

inducing infringement

injury

unless

the Defendants

are enjoined

from

of, and/or contributing to the infringement

of the '200 Patent.

28.

Tyco has no adequate remedy at law.

COUNT

II

(Infringement

of U.S. Patent No. 6,181,245)

29.
30,
the State

Plaintiffs incorporate by reference paragraphs

On information
and belief, the Defendants

1-16 and 18-21.

make, use, offer for sale and/or sell in

of Florida

and/or elsewhere in the United States, EAS labels using AM technology.

31.

The AM Labels, including

AM label T3, AM label T2, AM label K3, AM label

K2, AM Roll Label Rk2, and AM label H3 labels, fall within the scope of the claims for the '245
Patent.

32.

The Defendants'cts

in making, using, offering to sell, distributing

and/or selling,

within the State

of Florida

and/or

elsewhere

in the United States, the AM Labels infringe

the

claims

of the '245 Patent

33.

under 35

U.S.C $ 271 without authority to do so.

On information

and belief, the acts

of infringement

of the '245 Patent alleged

above are and have been willful, knowing, and deliberate.

34.
infringing,

Tyco will suffer irreparable

inducing infringement

injury

unless

the Defendants

are enjoined

from

of, and/or contributing to the infringement

of the '245 Patent.

35.

Tyco has no adequate remedy at law.

DEMAND FOR TRIAL BY JURY

Plaintiffs demand a trial by jury

of all claims

and all issues triable by jury in this action.

PRAYER FOR RELIEF

WHEREFORE, Tyco respectfully prays that this Court grant the following relief:
a.
Adjudging
that Defendants
have infringed

one or more claims

of the '200

Patent and the '245 Patent;

b.

Permanently

enjoining Defendants and their directors, officers, employees,

with any

attorneys, agents and all persons in active concert or participation

further acts

of the foregoing from

infringement

of infringement,

contributory

infringement

and inducement

of

of the

'200 Patent and the '245 Patent;

c.

Awarding

Plaintiffs

damages

adequate

to

compensate

them

for
and

Defendants'nfringement
post-judgment

of the '200 Patent

and the '245 Patent including

pre-judgment

interest at the maximum rate permitted by law;

d.

Adjudging

that Defendants'nfringement

of the '200 Patent

and the '245

Patent is willful and deliberate, and, therefore, that Plaintiffs are entitled to treble damages and
interest as provided by 35

U.S.C. $ 284;
that this case is exceptional,
and, therefore, that Plaintiffs are

e.

Adjudging

entitled to attorneys'ees,

expenses, and costs, together with interest, pursuant to 35 U,S,C. $ $

284 and 285; and

f.

Granting such further and other relief as this Court deems just and proper.

Date: December 11, 2013

Of Counsel
Richard F. O'alley SIDLEY AUSTIN LLP One South Dearborn Chicago, Illinois 60603

Respectfully Submitted,

Tel: (312) 853-7000 Fax: (312) 853-7036

Brian R. Nester Michael R, Franzinger Brian P, Johnson SIDLEY AUSTIN LLP 1501 K Street, N.W. Washington, D.C. 20005

SHUTTS & BOWFN LLP 201 South Biscayne Boulevard 1500 Miami Center Miami, Florida 33131 Tel: (305) 347-7311 Fax; (305) 347-7835

By: /s/ Stenhen B. Gillman

Stephen B. Gillman Florida Bar No. 196734
spillmangcbshutts.corn

Tel: (202) 736-8000 Fax: (202) 736-8711

Counsel for Tyco Fire & Security GmbH, Sensormatic Electronics, LLC and Tyco Integrated Security, LLC

MIADOCS 8474581 5