progressive casualty insurance company v. state farm mutual automobile insurance company
TRANSCRIPT
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IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF OHIO
EASTERN DIVISION
PROGRESSIVE CASUALTY INSURANCECOMPANY,
Plaintiff,
v.
STATE FARM MUTUAL AUTOMOBILEINSURANCE COMPANY,
Defendant.
Case No.
JURY DEMAND
COMPLAINT FOR PATENT INFRINGEMENT
Plaintiff Progressive Casualty Insurance Company (Progressive), by and through its
attorneys, for its complaint against Defendant State Farm Mutual Automobile Insurance
Company (State Farm), demands a jury trial and alleges as follows:
NATURE OF THE ACTION
1. This action arises under the Patent Laws of the United States, Title 35 of theUnites States Code (for example, 35 U.S.C. 271, 281, 283, 284, and 285), for infringement of
U.S. Patent No. 6,064,970 (the 970 patent) (attached as Exhibit A), U.S. Patent No. 8,090,598
(the 598 patent) (attached as Exhibit B), and U.S. Patent No. 8,140,358 (the 358 patent)
(attached as Exhibit C).
PARTIES
2. Progressive is a corporation organized under the laws of the state of Ohio, with itsprincipal place of business at 6300 Wilson Mills Road, Mayfield Village, Ohio 44143.
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3. On information and belief, State Farm is a corporation organized under the lawsof the state of Illinois, with its principal place of business at One State Farm Plaza, Bloomington,
Illinois, 61710.
JURISDICTION AND VENUE
4. This action arises under the patent laws of the United States, Title 35 of theUnited States code, 1, et seq.
5. The Court has jurisdiction over the subject matter of this action pursuant to 28U.S.C. 1331 and 1338(a).
6.
Venue is proper in this Court under 28 U.S.C. 1391 and 1400(b).
7. On information and belief, State Farm has committed and/or induced acts ofinfringement in this district, is subject to personal jurisdiction in this district, and therefore
resides in this district.
8. On information and belief, State Farm regularly transacts and conducts businessin this district, has registered with the Ohio Department of Insurance, and sells insurance within
the State of Ohio. Progressive is suffering from the effects of State Farms unlawful conduct in
this district.
COUNT I
9. Progressive incorporates by reference the allegations set forth in paragraphs 1through 8 as though fully asserted herein.
10. On May 16, 2000, the United States Patent and Trademark Office duly and legallyissued the 970 patent for an invention related to the determination of insurance ratings based
upon vehicle monitoring. Progressive owns the 970 patent.
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11. On information and belief, State Farm was aware of the 970 patent prior to theacts of infringement alleged herein.
12. On information and belief, State Farm, individually or through one or more agentsunder its direction and control, has been and still is operating a usage-based vehicle insurance
program entitled Drive Safe & Save.
13. On information and belief, State Farm, individually or through one or more agentsunder its direction and control, operates and maintains an Internet website at
http://www.statefarm.com/insurance/auto_insurance/drive-safe-save/drive-safe-save.asp (the
Drive Safe & Save website) that includes details regarding the Drive Safe & Save program.
14. On information and belief, State Farm, or a third party vendor acting on behalf ofand under the direction and control of State Farm, in connection with the Drive Safe & Save
program, obtains data regarding driving characteristics, including, for example, mileage, speed,
rapid acceleration, left turns and right turns, from an insured vehicle.
15. On information and belief, State Farm, or a third party vendor acting on behalf ofand under the direction and control of State Farm, calculates a rating based on the obtained
driving characteristics data in accordance with a formula provided by or for State Farm.
16. State Farm is infringing the 970 patent, including through the operation of theDrive Safe & Save program, which includes each and every feature of the claimed invention.
State Farm is infringing either directly, through its own actions and/or the actions of one or more
third-party vendors acting under its direction and/or control, or indirectly, through active
inducement of the infringing actions with knowledge of or deliberate indifference to the
existence and infringement of the 970 patent.
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17. On information and belief, State Farm has continued its infringing activitiesdespite having notice of the 970 patent. State Farms infringement is willful, entitling
Progressive to the recovery of enhanced damages pursuant to 35 U.S.C. 284.
18. In addition, this is an exceptional case, justifying an award of attorneys fees andcosts to Progressive pursuant to 35 U.S.C. 285.
19. State Farms infringement has caused and will continue to cause damage andirreparable harm to Progressive until enjoined by this Court. The amount of the damage and
harm has not yet been determined but will be proven at trial.
COUNT II
20. Progressive incorporates by reference the allegations set forth in paragraphs 1through 19 as though fully asserted herein.
21. On January 3, 2012, the United States Patent and Trademark Office duly andlegally issued the 598 patent for an invention related to a vehicle monitoring system.
Progressive owns the 598 patent.
22. On information and belief, State Farm was aware of the 598 patent prior to theacts of infringement alleged herein.
23. On information and belief, State Farm, individually or through one or more agentsunder its direction and control, has been and still is operating a usage-based vehicle insurance
program entitled Drive Safe & Save.
24. On information and belief, State Farm, individually or through one or more agentsunder its direction and control, operates and maintains an Internet website at
http://www.statefarm.com/insurance/auto_insurance/drive-safe-save/drive-safe-save.asp (the
Drive Safe & Save website) that includes details regarding the Drive Safe & Save program.
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25. On information and belief, State Farm, or a third party vendor acting on behalf ofand under the direction and control of State Farm, in connection with the Drive Safe & Save
program, obtains data regarding driving characteristics, including, for example, mileage, speed,
rapid acceleration, left turns and right turns, from an insured vehicle.
26. On information and belief, State Farm, or a third party vendor acting on behalf ofand under the direction and control of State Farm, calculates an insurance rating or safety score
based on the obtained driving characteristics data in accordance with a formula provided by or
for State Farm.
27.
State Farm is infringing the 598 patent, including through the operation of the
Drive Safe & Save program, which includes each and every feature of the claimed invention.
State Farm is infringing either directly, through its own actions and/or the actions of one or more
third-party vendors acting under its direction and/or control, or indirectly, through active
inducement of the infringing actions with knowledge of or deliberate indifference to the
existence and infringement of the 598 patent.
28. On information and belief, State Farm has continued its infringing activitiesdespite having notice of the 598 patent. State Farms infringement is willful, entitling
Progressive to the recovery of enhanced damages pursuant to 35 U.S.C. 284.
29. In addition, this is an exceptional case, justifying an award of attorneys fees andcosts to Progressive pursuant to 35 U.S.C. 285.
30. State Farms infringement has caused and will continue to cause damage andirreparable harm to Progressive until enjoined by this Court. The amount of the damage and
harm has not yet been determined but will be proven at trial.
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COUNT III
31. Progressive incorporates by reference the allegations set forth in paragraphs 1through 30 as though fully asserted herein.
32. On March 20, 2012, the United States Patent and Trademark Office duly andlegally issued the 358 patent for an invention related to a vehicle monitoring system.
Progressive owns the 358 patent.
33. On information and belief, State Farm was aware of the 358 patent prior to theacts of infringement alleged herein.
34.
On information and belief, State Farm, individually or through one or more agents
under its direction and control, has been and still is operating a usage-based vehicle insurance
program entitled Drive Safe & Save.
35. On information and belief, State Farm, individually or through one or more agentsunder its direction and control, operates and maintains the Drive Safe & Save website that
includes details regarding the Drive Safe & Save program.
36. On information and belief, State Farm, or a third party vendor acting on behalf ofand under the direction and control of State Farm, in connection with the Drive Safe & Save
program, obtains data regarding driving characteristics, including, for example, mileage, speed,
rapid acceleration, left turns and right turns, from an insured vehicle.
37. On information and belief, State Farm, or a third party vendor acting on behalf ofand under the direction and control of State Farm, calculates an insurance rating or safety score
based on the obtained driving characteristics data in accordance with a formula provided by or
for State Farm.
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38. State Farm is infringing the 358 patent, including through the operation of theDrive Safe & Save program, which includes each and every feature of the claimed invention.
State Farm is infringing either directly, through its own actions and/or the actions of one or more
third-party vendors acting under its direction and/or control, or indirectly, through active
inducement of the infringing actions with knowledge of or deliberate indifference to the
existence and infringement of the 358 patent.
39. On information and belief, State Farm has continued its infringing activitiesdespite having notice of the 358 patent. State Farms infringement is willful, entitling
Progressive to the recovery of enhanced damages pursuant to 35 U.S.C. 284.
40. In addition, this is an exceptional case, justifying an award of attorneys fees andcosts to Progressive pursuant to 35 U.S.C. 285.
41. State Farms infringement has caused and will continue to cause damage andirreparable harm to Progressive until enjoined by this Court. The amount of the damage and
harm has not yet been determined but will be proven at trial.
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PRAYER FOR RELIEF
WHEREFORE, Progressive demands the following relief:
A. judgment that State Farm has infringed, contributorily infringed and/or actively
induced others to infringe the 970, 598, and 358 patents;
B. a preliminary and permanent injunction against State Farms continued
infringement and inducement of infringement of the 970, 598, and 358 patents;
C. an award of damages in favor of Progressive and against State Farm adequate to
compensate Progressive for State Farms infringement of the 970, 598, and 358 patents
(including an assessment of pre-judgment interest and post-judgment interest);
D. enhancement of damages by up to three times the amount found or assessed based
on State Farms willful infringement, pursuant to 35 U.S.C. 284;
E. a finding that this case is exceptional under 35 U.S.C. 285;
F. an award to Progressive for its reasonable expenses, including attorneys fees, and
costs of this action; and
G. an award of such other and further relief as this Court deems just and proper.
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JURY DEMAND
Pursuant to Rule 38(b) of the Federal Rules of Civil Procedure, Progressive hereby
respectfully requests a jury trial on all issues and claims so triable.
Dated: April 30, 2012 Respectfully submitted,
By: /s/ Calvin P. Griffith
James R. Wooley (Ohio Bar No. 0033850)[email protected]
Calvin P. Griffith (Ohio Bar No. 0039484)
Patrick J. Norton (Ohio Bar No. 0069978)
[email protected] DAYNorth Point901 Lakeside Avenue
Cleveland, Ohio 44114
Telephone: (216) 586-3939Facsimile: (216) 579-0212
Attorneys for Plaintiff
Progressive Casualty Insurance Company