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[Joseph P. Reid (SBN 211082)

Thomas N. Millikan (SBN 234430) Gartman Law Group P.C. 11622 El Camino Real, Suite 100 San Diego, California 92130 Telephone: (858) 461-7360 Attorneys for Plaintiff, Advanced Auctions LLC

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA ADVANCED AUCTIONS LLC, Plaintiff, v. eBAY INC., Defendant. Plaintiff Advanced Auctions LLC (Plaintiff), by counsel, alleges as follows: THE PARTIES 1. Plaintiff Advanced Auctions LLC is a limited liability company under Case No. '13 CV1612 JAH WMC PLAINTIFF ADVANCED AUCTIONS LLCS COMPLAINT FOR PATENT INFRINGEMENT

the laws of the State of California, and having its principal place of business in Del Mar, CA, within this judicial district. 2. On information and belief, Defendant eBay Inc. is a corporation

organized under the laws of the State of Delaware, and having its principal place of business at 2145 Hamilton Avenue, San Jose, CA 95125 and may be served through National Registered Agents, Inc., 2875 Michelle Drive, Suite 100, Irvine, CA 92606.

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JURISDICTION AND VENUE This is a civil action for patent infringement arising under the United States patent statutes, 35 U.S.C. 1 et seq. 4. This Court has jurisdiction over the subject matter of this action under

28 U.S.C. 1331 and 1338(a). 5. Defendant eBay Inc. is subject to this Courts personal jurisdiction

because it does and has done substantial business in this judicial District, including offering its online auction site to members within this District to buy and sell merchandise. 6. 1400(b). CLAIM I: DIRECT INFRINGEMENT OF THE 000 PATENT 7. On September 11, 2012, the United States Patent and Trademark Office duly and legally issued United States Patent No. 8,266,000 (the 000 Patent), entitled Real Time Auction with End Game. A copy of the 000 Patent is attached as Exhibit A. 8. All rights, title, and interest in and to the 000 Patent, including the Venue is proper in this judicial District under 28 U.S.C. 1391 and

right to sue for past infringement, have been assigned to Plaintiff. 9. Defendant eBay owns and operates a website on which sellers can

conduct online auctions via the Internet. 10. During these online auctions, Defendant eBays webpages present

bidders with information regarding the time remaining in the auction and the current bid amount. 11. Before the final hour of the auction, Defendant eBay does not

automatically update its webpages with this information. Rather, the bidder must manually refresh their browser to request and obtain current auction information. 12. updated.
PLAINTIFF ADVANCED AUCTIONS LLCS COMPLAINT FOR PATENT INFRINGEMENT

In the final hour of the auction, this information is automatically

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13.

By owning and operating its online auction site in the foregoing way,

Defendant eBay directly infringes one or more claims of the 000 Patent. 14. 15. Patent. 16. On February 4, 2013, counsel for Plaintiff Advanced Auctions LLC Defendant eBays direct infringement is ongoing. Defendant eBay has not sought or obtained a license to the 000

wrote to Emily Ward, the Associate General Counsel, Patents for Defendant eBay. 17. The February 4, 2013 letter informed Ms. Ward of the 000 Patent and

that, by automatically updating the time and bid amount during the final hour of your online auctions, eBay is infringing the 000 patent. 18. Plaintiffs February 4, 2013 letter asked that eBay cease and desist

from its infringement immediately. 19. Since February 4, 2013, Defendant eBay continues to update auction

information automatically during each auctions final hour. 20. By continuing to automatically update auction information during the

final hours of its online auctions even after being informed of the 000 Patent, Defendant eBay has demonstrated objective recklessness with respect to the 000 Patent. 21. willful. 22. Plaintiff Advanced Auctions LLC has been, and continues to be, Accordingly, Defendant eBays continuing direct infringement is

damaged and irreparably harmed by Defendants infringement, which will continue unless Defendant is enjoined by this Court. CLAIM II: INDIRECT INFRINGEMENT OF THE 000 PATENT 23. Plaintiff Advanced Auctions LLC reincorporates and realleges the

foregoing paragraphs as if included expressly herein. 24. To participate in or monitor Defendant eBays online auctions,

computer users navigate to eBays website.

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25.

While at Defendant eBays website, users selecting particular auctions

receive webpages regarding those auctions from eBays servers. 26. computers. 27. The auction webpages function as discussed above, namely, prior to Those auction webpages are, in turn, displayed on the users

the final hour of the auction, users must manually refresh their browser to request and obtain current time and bid information, while in the final hour of the auction, this information is automatically updated. 28. Programmed to conduct online auctions in this manner, Defendant

eBays webpages induce its users to infringe claims of the 000 Patent. 29. Indeed, as shown above, Defendant eBays auction webpages only

function in an infringing manner. 30. In exchange for allowing sellers to conduct auctions via its infringing

webpages, Defendant eBay collects a percentage of the sales price of each item sold through such auctions. 31. In addition, whenever bidders pay for their auction purchases using

eBays PayPal or Bill Me Later services, eBay also collects another percentage of the sales price of those items. 32. Defendant eBays 2012 annual report confirms that thirty-seven

percent of eBays 2011 gross merchandise volume was transacted through the auction-style format. In each of those auctions, Defendant eBays webpages would have functioned as previously described. Accordingly, Defendant eBays users have committed significant amounts of direct infringement. 33. On July 6, 2013, Defendant eBay had 60,671,259 active listings of

merchandise. Many of these items are being sold using eBays infringing auction format. Accordingly, direct infringement by Defendant eBays users is continuing. 34. As discussed above, Defendant eBay has been informed of the 000

Patent and how its auction webpages infringe.

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35.

Despite being informed of the 000 Patent and its method of

infringement by Advanced Auctions February 4 letter, Defendant eBay continues to provide its infringing auction webpages to its users. 36. Indeed, Defendant eBay has not done anything to modify or remove

the automatic updating functionality of its auction webpages since receiving Advanced Auctions February 4 letter. 37. Defendant eBays continued, knowing infringement demonstrates the

intent necessary to constitute inducement. 38. By continuing to automatically update auction information during the

final hours of its online auctions even after being informed of the 000 Patent, Defendant eBays indirect infringement of the 000 Patent is also willful. 39. Plaintiff Advanced Auctions LLC has been, and continues to be,

damaged and irreparably harmed by the Defendants indirect infringement, which will continue unless Defendant is enjoined by this Court. JURY DEMAND Plaintiff demands a trial by jury on all issues. REQUEST FOR RELIEF WHEREFORE, Plaintiff Advanced Auctions LLC respectfully requests the following relief: A. A judgment holding Defendant eBay liable for infringement of the

000 Patent asserted against it; B. A permanent injunction against Defendant eBay, its officers, agents,

servants, employees, attorneys, parent and subsidiary corporations, assigns and successors in interest, and those persons in active concert or participation with it, enjoining them from continued acts of infringement of the 000 Patent asserted against Defendant eBay;

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C.

An accounting for damages resulting from Defendant eBays

infringement of the 000 Patent asserted against it, together with pre-judgment and post-judgment interest; D. A judgment holding this Action to be an exceptional case, and an

award to Plaintiff Advanced Auctions LLC for its attorneys fees and costs pursuant to 35 U.S.C. 285; E. A judgment finding Defendant eBays infringement willful, and

ordering a trebling of damages as a result; F. Such other and further relief as this Court deems just and proper.

DATED: July 11, 2013

GARTMAN LAW GROUP, PC By:/S/ Joseph P. Reid Joseph P. Reid (SBN 211082) Thomas N. Millikan (SBN 234430) Attorneys for Plaintiff, ADVANCED AUCTIONS LLC

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