IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION

SMITH INTERNATIONAL, INC., v. Plaintiff, CIVIL ACTION NO. 4:12-CV-781 JURY TRIAL DEMANDED

ULTERRA DRILLING TECHNOLOGIES, L.P., Defendant.

ORIGINAL COMPLAINT Plaintiff Smith International, Inc. files this Original Complaint against Defendant Ulterra Drilling Technologies, L.P. as set forth below: I. 1. PARTIES

Smith International, Inc. (Smith) is a corporation organized under the laws of

the State of Delaware, with its principal place of business in the United States located in Houston, Texas. 2. Ulterra Drilling Technologies, L.P. (Ulterra) is a limited partnership organized

under the laws of the State of Texas, with its principal place of business located in Fort Worth, Texas. II. 3. NATURE OF THIS ACTION

This is an action for patent infringement arising under the patent laws of the

United States, 35 U.S.C. 101 et seq., and in particular 35 U.S.C. 271-287.

III. 4.

JURISDICTION AND VENUE

This Court has exclusive subject matter jurisdiction over this action under 28

U.S.C. 1331 and 1338(a). 5. Ulterra is subject to personal jurisdiction by virtue of its contacts with the State of

Texas, and with the Southern District of Texas in particular. Ulterra voluntarily maintains a place of business in this district, including but not limited to a Houston office opened in 2010. Ulterra also has transacted business in this district, and has committed acts of patent infringement in this district. More specifically, Ulterra has directly offered to sell, sold, shipped into, and advertised in this district. 6. Venue is proper in this district under 28 U.S.C. 1391(b)-(c) and 1400(b). IV. 7. FACTS

On July 13, 2010, U.S. Patent No. 7,754,333 (the 4333 Patent) was duly and

legally issued by the U.S. Patent and Trademark Office (PTO) to Eyre et al. for an invention relating to thermally stable diamond polycrystalline diamond constructions. A true and correct copy of the 4333 Patent is attached hereto as Exhibit A. The 4333 Patent is presumed valid pursuant to 35 U.S.C. 282. 8. Eyre et al. assigned all right, title and interest in the 4333 Patent to Smith

International, Inc. 9. On April 14, 2009, U.S. Patent No. 7,517,589 (the 589 Patent) was duly and

legally issued by the PTO to Eyre for an invention relating to thermally stable diamond polycrystalline diamond constructions. A true and correct copy of the 589 Patent is attached hereto as Exhibit B. The 589 Patent is a continuation-in-part of the 4333 Patent. The 589 Patent is presumed valid pursuant to 35 U.S.C. 282.

10. Inc. 11.

Eyre assigned all right, title and interest in the 589 Patent to Smith International,

On October 27, 2009, U.S. Patent No. 7,608,333 (the 8333 Patent) was duly

and legally issued by the PTO to Eyre for an invention relating to thermally stable diamond polycrystalline diamond constructions. A true and correct copy of the 8333 Patent is attached hereto as Exhibit C. The 8333 Patent is a continuation-in-part of the 4333 Patent. The 8333 Patent is presumed valid pursuant to 35 U.S.C. 282. 12. Eyre assigned all right, title and interest in the 8333 Patent to Smith

International, Inc. 13. Ulterra makes, uses, sells, and/or offers to sell Ulterra Polycrystalline Diamond

Compact (PDC) bits. 14. Ulterra has been, and still is, infringing, inducing infringement of, and

contributorily infringing one or more claims of the 4333, 589, and/or 8333 Patents by making, using, selling and/or offering to sell Ulterra PDC bits. 15. Upon information and belief, Ulterra will continue to infringe one or more claims

of the 4333, 589, and/or 8333 Patents unless enjoined by this Court. 16. Upon information and belief, Ulterras infringement of one or more claims of the

4333, 589, and/or 8333 Patents has been willful and deliberate. 17. As a result of Ulterras infringement, Smith has suffered and will continue to

suffer damages in an amount to be proven at trial and irreparable harm. 18. Upon information and belief, the conduct of Ulterra presents an exceptional case

such that Smith is entitled to an award of its reasonable attorneys fees, as provided by 35 U.S.C. 285.

V.

PRAYER FOR RELIEF

WHEREFORE, Smith prays for judgment and seeks relief against Ulterra as follows: (a) For a judgment that one or more claims of the 4333, 589, and/or 8333 Patents have been and continue to be infringed by Ulterra; (b) For a judgment and an award of all damages sustained by Smith as the result of Ulterras acts of infringement, including supplemental damages for any continuing post-verdict infringement up until entry of the final judgment with an accounting as needed; (c) For a permanent injunction enjoining Ulterra from infringing one or more claims of the 4333, 589, and/or 8333 Patents; (d) (e) For a judgment and an award of enhanced damages pursuant to 35 U.S.C. 284; For a judgment and an award of attorneys fees pursuant to 35 U.S.C. 285 or as otherwise permitted by law; (f) (g) For a judgment and an award of all interest and costs; and For a judgment and an award of such other and further relief as the Court may deem just and proper. VI. Smith demands a trial by jury. JURY DEMAND

DATED: March 13, 2012

Respectfully Submitted, By : /s/ John R. Keville __________________ John R. Keville Attorney in Charge jkeville@winston.com Texas Bar No. 00794085 S.D. Tex. Bar No. 20922 Joan E. Beckner jbeckner@winston.com Texas Bar No. 24040496 S.D. Tex. Bar No. 37341 Richard T. McCarty rmccarty@winston.com Texas Bar No. 24074675 S.D. Tex. Bar No. 1147407 WINSTON & STRAWN LLP 1111 Louisiana, 25th Floor Houston, Texas 77002-5242 Telephone: (713) 651-2600 Facsimile: (713) 651-2700 ATTORNEYS FOR PLAINTIFF SMITH INTERNATIONAL, INC.