ORIGINAL COMPLAINT Page 1

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS

AUSTIN DIVISION

NEXERSYS CORPORATION, § § CIVIL ACTION No. 14-384 Plaintiff, § § v. § § JURY TRIAL DEMANDED PETE GUSTIN D/B/A VIRTUAL KNOCKOUT, STDIO1 LLC, and HAIRY MONSTER STUDIOS, LLC,

§ § §

§ Defendants. §

ORIGINAL COMPLAINT Plaintiff, Nexersys Corporation (“Nexersys”), brings this suit for patent infringement

against Defendants, Pete Gustin d/b/a Virtual Knockout (“VKO”), Stdio1 (“ST1”), and Hairy

Monster Studios, LLC (“HMS”) (VKO, ST1, and HMS are collectively referred to as

“Defendants”), and alleges as follows:

I. Parties

1. Plaintiff Nexersys is a Delaware corporation having a principal place of business

at 1021 E 7th St., Ste. 100, Austin, Travis County, Texas 78702-3273.

2. On information and belief, Defendant VKO is an individual doing business as

VirtualKockout, having an address at 918 E. Imperial Dr., Hartland, Wisconsin 53029, and may

be served at such address.

3. On information and belief, Defendant ST1 is a Washington state limited liability

company having a principal place of business at 15965 NE 85th St., Suite 200, Redmond,

Washington 98052, and may be served through its registered agent for service of process,

Matthew Hefferon at 22543 NE Alder Crest Lane, Redmond, WA 98053.

4. On information and belief, Defendant HMS is a Wisconsin limited liability

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company, having an address at P.O. Box 124, Pewaukee, Wisconsin 53072, and may be served

through its registered agent for service of process, John C. Klotz, 1081 Bending Brae Drive,

Pewaukee, WI 53072-6313.

II. Jurisdiction and Venue

5. This action arises under the patent laws of the United States, Title 35, United

States Code § 1, et seq. This Court has exclusive subject matter jurisdiction over this case for

patent infringement under 28 U.S.C. §§ 1331 and 1338(a).

6. The Court has personal jurisdiction over Defendants because, on information and

belief, Defendants offer their products for sale in this District, have transacted and conducted

business in this District, have contracted to supply services or products in this District, and have

committed and/or induced acts of patent infringement in this District, and/or have placed

infringing products into the stream of commerce through established distribution channels with

the expectation that such products will be purchased by residents of this District.

7. Venue is proper in this Court under 28 U.S.C. §§ 1391(b), (c) and (d) and

1400(b).

III. Factual Background

8. Nexersys owns all right, title and interest in United States Letters Patent No.

8,079,938 (“the ‘938 Patent”) entitled “Boxing and Martial Arts Fight, Trainer, and Game

System and Method,” which was duly and legally issued by the United States Patent &

Trademark Office (PTO) on December 20, 2011 after full and fair examination. A copy of the

‘938 Patent is attached as Exhibit A.

9. Nexersys owns all right, title and interest in United States Letters Patent No.

8,337,366 (“the ‘366 Patent”) entitled “Interactive System and Method for Boxing and Martial

Arts,” which was duly and legally issued by the United States Patent & Trademark Office (PTO)

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on December 25, 2012 after full and fair examination. A copy of the ‘366 Patent is attached as

Exhibit B. The ‘938 Patent and the ‘366 Patent are collectively referred to as the “Nexersys

Patents.”

10. Defendants are infringing and/or inducing others to infringe by making, using,

offering to sell, and/or selling in the United States, and/or importing into the United States,

products or processes that practice one or more inventions claimed in the Nexersys Patents.

11. Defendants have profited through infringement of the Nexersys Patents. As a

result of Defendants’ unlawful infringement of the Nexersys Patents, Nexersys has suffered and

will continue to suffer damage. Nexersys is entitled to recover from Defendants the damages

suffered by Nexersys as a result of Defendants’ unlawful acts.

12. On information and belief, Defendants have known of the Nexersys Patents.

Nexersys notified Defendants of the Nexersys Patents and demanded that Defendants halt

infringing activities.

13. On information and belief, Defendants continue and will continue their unlawful

infringing activity, and Nexersys continues and will continue to suffer irreparable harm, for

which there is no adequate remedy at law, from such unlawful activity unless Defendants are

enjoined by this Court.

IV. Infringement of U.S. Patent No. 8,079,938 (the “’938 Patent’)

14. Nexersys hereby incorporates and realleges paragraphs 1 through 13 above as

though fully set forth herein.

15. Defendants, by making, using, selling, offering to sell, and/or importing in or into

the United States, without authority, devices under inventions claimed in the ‘938 Patent, have

directly or indirectly infringed (by contributory infringement and/or inducement of

infringement), and are continuing to infringe, directly or indirectly, the ‘938 Patent in this district

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and/or otherwise within the United States.

16. Defendants have had knowledge of the ’938 Patent, and have not ceased their

infringing activities.

17. Defendants’ infringement of the ‘938 Patent has been and continues to be willful

and deliberate.

18. As a direct and proximate consequence of the acts and practices of Defendants in

infringing, directly and/or indirectly, one or more claims of the ‘938 Patent, Nexersys has been,

is being and, unless such acts and practices are enjoined by this Court, will continue to be injured

in its business and property rights.

19. As a direct and proximate consequence of the acts and practices of Defendants in

infringing, directly and/or indirectly, one or more claims of the ‘938 Patent, Nexersys has

suffered, is suffering, and will continue to suffer injury and damages for which Nexersys is

entitled to relief under 35 U.S.C. § 284, in an amount to be determined at trial.

20. By reason of the infringing acts and practices of Defendants, Defendants have

also caused, are causing and, unless such acts and practices are enjoined by this Court, will

continue to cause immediate and irreparable harm to Nexersys for which there is no adequate

remedy at law, and for which Nexersys is entitled to injunctive relief under 35 U.S.C. § 283.

V. Infringement of U.S. Patent No. 8,337,366 (“the ‘366 Patent”)

21. Nexersys hereby incorporates and realleges paragraphs 1 through 20 above as

though fully set forth herein.

22. Defendants, by making, using, selling, offering to sell, and/or importing in or into

the United States, without authority, devices under inventions claimed in the ‘366 Patent, have

directly or indirectly infringed (by contributory infringement and/or inducement of

infringement), and are continuing to infringe, directly or indirectly, the ‘366 Patent in this district

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and/or otherwise within the United States.

23. Defendants have had knowledge of the ’366 Patent, and have not ceased their

infringing activities.

24. Defendants’ infringement of the ‘366 Patent has been and continues to be willful

and deliberate.

25. As a direct and proximate consequence of the acts and practices of Defendants in

infringing, directly and/or indirectly, one or more claims of the ‘366 Patent, Nexersys has been,

is being and, unless such acts and practices are enjoined by this Court, will continue to be injured

in its business and property rights.

26. As a direct and proximate consequence of the acts and practices of Defendants in

infringing, directly and/or indirectly, one or more claims of the ‘366 Patent, Nexersys has

suffered, is suffering, and will continue to suffer injury and damages for which Nexersys is

entitled to relief under 35 U.S.C. § 284, in an amount to be determined at trial.

27. By reason of the infringing acts and practices of Defendants, Defendants have

also caused, are causing and, unless such acts and practices are enjoined by this Court, will

continue to cause immediate and irreparable harm to Nexersys for which there is no adequate

remedy at law, and for which Nexersys is entitled to injunctive relief under 35 U.S.C. § 283.

V. Prayer for Relief

Nexersys prays for the following relief against Defendants, jointly and severally:

a. A judgment that Defendants have infringed, directly and indirectly, the ‘938 Patent;

b. A judgment that Defendants have infringed, directly and indirectly, the ‘366 Patent;

c. A judgment and order preliminarily and permanently enjoining Defendants, their

employees and agents, and any other person(s) in active concert or participation

with them from infringing, directly or indirectly, the ‘938 Patent;

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d. A judgment and order preliminarily and permanently enjoining Defendants, their

employees and agents, and any other person(s) in active concert or participation

with them from infringing, directly or indirectly, the ‘366 Patent;

e. A judgment and order requiring Defendants to pay Nexersys damages under 35

U.S.C. § 284, including treble damages for willful infringement as provided by 35

U.S.C. § 284, and supplemental damages for any continuing post-verdict

infringement up until entry of the final judgment with an accounting as needed;

f. An award of all costs of this action, including attorneys’ fees and interest; and

g. Such other and further relief as the Court deems just and equitable.

VI. Demand for Jury Trial

Nexersys hereby demands that all issues be determined by a jury.

Respectfully submitted, THE LAW FIRM OF H. DALE LANGLEY, JR., P.C. ______________________________________ H. Dale Langley, Jr. Texas Bar No.11918100 1803 West Avenue Austin, TX 78703 Telephone: (512) 477-3830 Fax: (512) 597-4775 ATTORNEYS FOR PLAINTIFF NEXERSYS CORPORATION