IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS MARSHALL DI VISION ABARTA, LLC, Plaintiff,

v. NATURALPOINT, INC. Defendant. CIVIL ACTION NO. JURY TRIAL DEMANDED

PLAINTIFFS ORIGINAL COMPLAINT Plaintiff Abarta, LLC (Plaintiff or Abarta), by and through its undersigned counsel, files this Complaint against Defendant NaturalPoint, Inc. as follows: NATURE OF THE ACTION 1. This is a patent infringement action to stop Defendants infringement of

Plaintiffs United States Patent No. 7,224,326 entitled Virtual Reality System (the 326 patent; a copy of which is attached hereto as Exhibit A). Plaintiff is the exclusive licensee of the 326 patent with respect to the Defendant. Plaintiff seeks injunctive relief and monetary damages. PARTIES 2. Plaintiff Abarta, LLC is a limited liability company organized under the laws of

the State of Texas. Plaintiff maintains its principal place of business at 3301 W. Marshall Ave., Suite 303, Longview, Texas 75601. Plaintiff is the exclusive licensee of the 326 patent and possesses the right to sue for infringement and recover past damages.

3.

Upon information and belief, Defendant NaturalPoint, Inc. (NaturalPoint), is a

corporation organized and existing under the laws of the State of Oregon, with its headquarters located at 3658 SW Deschutes Street, Corvalis, Oregon 97333. JURISDICTION AND VENUE 4. This action arises under the patent laws of the United States, 35 U.S.C. et seq.,

including 35 U.S.C. 271. This Court has subject matter jurisdiction over this case for patent infringement under 28 U.S.C. 1331 and 1338(a). 5. Venue is proper in the Eastern District of Texas pursuant to 28 U.S.C. 1391 and

1400(b). On information and belief, Defendant has transacted business in this district, and has committed and/or induced acts of patent infringement in this district. 6. On information and belief, Defendant is subject to this Courts specific and

general personal jurisdiction pursuant to due process and/or the Texas Long Arm Statute, due at least to their substantial business in this forum, including: (i) at least a portion of the infringements alleged herein; and (ii) regularly doing or soliciting business, engaging in other persistent courses of conduct, and/or deriving substantial revenue from goods and services provided to businesses in Texas and in this Judicial District. 7. More specifically, Defendant, directly and/or through authorized intermediaries,

ships, distributes, offers for sale, sells, and/or advertises (including the provision of an interactive web page) its products and services in the United States, the State of Texas, and the Eastern District of Texas. Defendant has committed patent infringement in the State of Texas and in the Eastern State of Texas, and/or has induced others to commit patent infringement in the State of Texas and in the Eastern District of Texas. Defendant solicits customers in the State of Texas

and in the Eastern District of Texas. Defendant has paying customers who are residents of the State of Texas and the Eastern District of Texas and who use the Defendants products and services in the State of Texas and in the Eastern District of Texas. COUNT I INFRINGEMENT OF U.S. PATENT 7,224,326 8. 9. Abarta refers to and incorporates herein the allegations of Paragraphs 1-7 above. The 326 Patent was duly and legally issued by the United States Patent and

Trademark Office on May 29, 2007, after full and fair examination. Plaintiff is the exclusive licensee of the 326 patent and possesses all rights of recovery under the 326 patent with respect to the Defendant, including the right to sue for infringement and recover past damages. 10. Defendant owns, operates, advertises, controls, sells, and otherwise provides

hardware and software that infringes the 326 patent. The 326 patent provides, among other things, a method of operating a virtual reality (VR) system comprising: maintaining a plurality of images where each image has a 360-degree field-of-view defining a X direction and a Y direction; determining a viewing direction of a user in both of the X and Y directions; displaying a portion of the plurality of images to the user; and sending a rate of change of the plurality of images moving in a Z direction; the method characterized by simultaneously coordinating the X and Y directions and the Z direction and interlacing the viewing direction and the rate of change for automatically changing the plurality of images in the X, Y, and Z directions as the user changes the viewing direction in at least one of the X and Y directions and simultaneously moves in the Z direction. 11. Defendant has infringed and continues to infringe one or more claims of the 326

patent by making, using, providing, offering to sell, and selling (directly or through

intermediaries), in this district and elsewhere in the United States, systems and methods for sending images with a 360-degree field of view to a viewing device whereby the user views a portion of the images determined by the directional sensors mounted to motion trackers. More particularly, Defendant sells and/or requires and/or directs users to access and/or use a virtual reality system that maintains a plurality of images with a 360-degree field-of-view in the X, Y, and Z directions, in a manner claimed in the 326 patent. Defendant infringes the 326 patent by Defendant providing the TrackIR Virtual Reality System (TrackIR System) that practices a method for a maintaining a plurality of images for use in a 360-degree field-of-view virtual reality system. 12. Defendant infringes 326 patent by providing customers a stereoscopic system

designed to provide a 360 degree viewing experience, including tracking movement in the X and Y directions to display portions of corresponding images. Tthe directional sensors are mounted on headset and hand controls included with the Defendants system, to track the users movements that correspond with imagery used in the virtual environment and viewed on the users computer. The TrackIR System detects movement and displays a portion of the environment as a function of the X and Y directions. 13. While the Defendants system receives movement information as a function of the

X and Y directions, the optical head tracking device also measures the Z direction through the users change in head movements, as measured by the head tracking device. The system then displays portions of the environment as a function of these simultaneous movements in the X, Y, and Z directions, to create an improved lifelike virtual reality experience. The Defendant

infringes the 326 patent when the headset simultaneously displays, on the screen or viewing

device, the change of movement in the Z and X/Y directions and interlaces the imagery portions to follow the users movements through the virtual environment. 14. Plaintiff. 15. Defendant also has infringed under 35 U.S.C. 271(b) by inducing infringement Defendants aforesaid activities have been without authority and/or license from

of the 326 patent in the State of Texas, in this judicial district, and elsewhere in the United States, by, among other things, performing certain steps of the methods claimed by the 326 patent, and advising, encouraging, or otherwise inducing others to perform the remaining steps claimed by the 326 patent to the injury of Abarta. For example, Defendant has configured the TrackIR System to be made available for use with most personal computers, inducing others to perform steps claimed thereby infringing on the 326 patent. Since at least the original filing date of this Complaint, Defendant has had knowledge of the 326 patent, and by continuing the actions described above, has had the specific intent to induce infringement of the 326 patent pursuant to 35 U.S.C. 271(b). 16. Plaintiff is entitled to recover from the Defendant the damages sustained by

Plaintiff as a result of the Defendants wrongful acts in an amount subject to proof at trial, which, by law, cannot be less than a reasonable royalty, together with interest and costs as fixed by this Court under 35 U.S.C. 284. 17. Defendants infringement of Plaintiffs exclusive rights under the 326 patent will

continue to damage Plaintiff, causing irreparable harm for which there is no adequate remedy at law, unless enjoined by this Court.

JURY DEMAND 18. Plaintiff hereby requests a trial by jury pursuant to Rule 38 of the Federal Rules of

Civil Procedure. PRAYER FOR RELIEF Plaintiff respectfully requests that the Court find in its favor and against Defendant, and that the Court grant Plaintiff the following relief: A. An adjudication that one or more claims of the 326 patent have been infringed, either literally and/or under the doctrine of equivalents, directly and/or indirectly by Defendant; B. An award to Plaintiff of damages adequate to compensate Plaintiff for the Defendants acts of infringement together with pre-judgment and post-judgment interest; C. That, should Defendants acts of infringement be found to be willful from the time that Defendant became aware of the infringing nature of their actions, which is the time of filing of Plaintiffs Original Complaint at the latest, that the Court award treble damages for the period of such willful infringement pursuant to 35 U.S.C. 284; D. A grant of permanent injunction pursuant to 35 U.S.C. 283, enjoining the Defendant from further acts of infringement with respect to the claims of the 326 patent; E. That this Court declare this to be an exceptional case and award Plaintiff its reasonable attorneys fees and costs in accordance with 35 U.S.C. 285; and F. Any further relief that this Court deems just and proper.

Dated: October 19, 2012

Respectfully submitted,

By:

/s/Andrew W. Spangler__________ Andrew W. Spangler, Esq. State Bar No. 24041960 email address: [email protected] Attorney-in-Charge SPANGLER & FUSSELL P.C. 208 North Green Street Suite 300 Longview, TX 75601 Phone: (903) 753-9300 Fax: (903) 553-0403 James A. Fussell, III, Esq. AR State Bar No. 2003193 email address: [email protected] SPANGLER & FUSSELL P.C. 211 N. Union Street, Suite 100 Alexandria, VA 22314 Phone: (903) 753-9300 Fax: (903) 553-0403

ATTORNEYS FOR PLAINTIFF ABARTA, LLC