HID Committed Fraud, Alleges WaveLynx

** ****-**** ******, ***************** ** ****** ** ***'* ******* complaint **** ******* ******** ** ********* 2 *** *******.

*** ******* **** ******** ******** *** of ***'* ******* (** *******,****** ** ******* ****) ** ********** 125 *** (*** *********), **.** *** (High *********) ** '** ***** ********’* Ethos *******'.

******** ** ****** **** *** ********, repeatedly ******** *** ** ************ ********* the ******:

******* *** ******* ** *****************’ ********* and ***************, ********* *** ***** ********,the ’*** ****** *** ******** ******* ***** committed during prosecution before the U.S. Patent Office and, therefore, all claims of the ’862 patent are unenforceable. [emphasis added]...

***********, ***************** ***** **** ******* ******* both **** *** ’*** ****** ** invalid *** **** ** ***obtained ** ********** ***** on the U.S. Patent Office. [emphasis added]....

** ****** ** ********* *** ********** to ******* *** ’*** ******, ***** HID **** *** ******* ***/** *************, to ********* *** ***** ***** *******,HID *** ***** **** *****, ******, ***/** *** ***** *** ********** ****** *********** *** *** ********. Further, HID has acted unconscionably in suing Defendant for Defendant’s refusal to pay for a license to the invalid ’862 patent that HID intentionally and improperly sought to cover prior inventions, including those of Michael Conlin and/or other employees of XceedID Corporation.[emphasis added]

*** *** ***** ***** ***** * 2016 *********** **** *** ******** **** is ******** **** ******** ************ *** '862's ****** *** ******** ********* **** it *** ** "** *********** *** to ***** ********** **** ***". ** that ****, ******** ******** * $* licensing ** **** *** * ** win **** *** *******:

** *** ****** ** *********** *** in ** ******* ** **** ********* andallow * *** *** ** **** **********, WaveLynx would be willing to consider taking a license. This license would have to be for Corporate 1000 as well as any other of HID's potential IP for 125 kHz or multi‐frequency readers at a cost of $0 per reader. This ***** ***** *** ** **** * ***** ******* ** *** ****** ******* **** ******** *** ******** *** **. This could provide HID with the benefit of the market's perception that there actually was legitimate IP there. Please keep in mind that an endorsement of HID's "IP" from WaveLynx would certainly hold a lot of clout in the marketplace. [emphasis added]

******** ******** **** *** '*** ****** is ******* **** * ****** ** allegations ***** ***** ***:

*** ********—********* *** ******** ** ********—********* dual- *** *****-********* **** ******* ** thevery **** *** *** *** **.** MHz *********** ****** *** ****** ** the *********** *** *** ’********* ** 2004. ** ****, **** ********** *** invented *** ******** ** *** ******** of ********** ****, ***** ** ***** previous *******—******* *********** (“*******”).

***************** **** **** ****- *** ************** RFID ******* **** ** *** ****** domain ****** *** ****** **** ** the *********** *** ***’*** ******. ******, HID’s ****** ****** ******** ** **********, Intellectual ********, ************, ******** ********* *** details *** *** ** ********* ********** in * **** ******** *********** ********* and ********** (“****”) ********. ***************** **** knew **** ****************, *********, *** ***** for ****** ********** *** *** **** invention ****** *** ****** ***** *********** related ** *** ’*** ****** *** filed.

******* ********** ******** ******* *.*. ******* on *** ********** ******** ** **** frequency **** *******, ********* *.*. ****** Nos. *,***,***, *,***,***, *,***,***, *,***,***,*,***,***, *,***,***, and *,***,***

Internal *** ****** ** ********

* *********** **** ** ********'* **** is* **-**** ******* **** ******** * series ** *** ******** ********** ******** ******* **** *** *** aware ** *** ***** ***.

*** *******, ******** *******:

*** *** ******** ***** *** ******** were ******** ***** *** ** *** patentability ** *** ******* ****** ******* in *** ’*** ******. *** *******, the *** ******** ***** *** ********, when ********, ***** ** **** ** read *********** ** *** *********** *** would ******* *** **** ******* *********** as *** ’*** ****** ******. ******, Davis ******* ****** ** ** ***** to ****** ** ******* **, **** that “[*]* ** **** ** **** that ** ** ** ******* ********* to **** ** [****-********* *******] * single ****.”

****** *** ******** ******* **** *** knowledge ** *** ******** ’*** ***********,*** did *** ******** **. ** ******* 14, ****, ****** *** ******** ******* were ******** ** ** ***** **** Russ **** ** **, ***** ****** that “******* ***** * ****** *********** prior ** ** ******** *** *** entering **** *** ******* *********,” ***** referred ** *** ’*** ***********.

****** *** ***** **** *** ********* of *** ’*** *********** ** **** 12, ****. *** *******, ****** **** Davis ** ***** ** **** **** to ***** *** ’*** *********** *** attached, *******: “* ***** **** ** attack **** ****** **** ******** ***** [sic] ** **** ........ **** *** and ******* **.” **. *, ** 21. ***** ******* ******* **** ****, the *** ** ****, ** **** 12, ****, ****** **** ** “**** me ** ******* ******** ****** *********** by *******?”

'562 ******

*** ***** ****** ** **********, ** this ****, *** ***'*** *** ***** ******** ** *********** ****-********* *** ********* ** ****. Wavelynx ********:

********* ***** ******* ** *** ********* of *** ’*** ****** ** **** 12, ****, ************** ***** ***** ******* Complaint. ** ****, ********** ****** ********* any ****** ** *********** ***** *** enforceable ***** ** *** ’*** ******. Indeed, ** **** ******, *** ’*** patent ** ******* ********* *** *******, making ******* ************ ** *************

WaveLynx *******, *** ********* ******* ********

****** ****** *** ******* ** *** patent ****** ** ****, ******** ******** itself * * ******* *********** ***** growth (****** ** * **** ******* base) ****** *** *** **** ****** sales **** ********:

***** ****,*********** **** *********** ****** ** *****, experiencing *************100% **** **** **** ******. 41. Counterdefendants are aware of WaveLynx’s substantial success. In fact, becauseWaveLynx buys physical credentials from HID, Counterdefendants **** ****** ********** **********’* *********** ****** over the last few years.42. Counterdefendants, on the other hand, have not experienced the same success. Infact, it is known in the industry that Counterdefendants’ ***** **** ******** ** ****** *****. For example, on information and belief, just in the last year, Counterdefendants have encountered supply issues and have been unable to provide products to their customers, which have forcedsome of those customers to source products elsewhere.

Threatening ***********

******** ********** ******* **** *** ** using **** (*** ***** ********) ** unfairly **** *** ***********:

********************** ***, ** *********** *** ******, other **** ************* **** ********** ****** they ****** ** ******* *** ******* ’862 ******, ********** **** ****** **anti-competitive ****** by stifling the industry and extracting unwarranted royalties from competitors....

**** ******* ** *****************’ ****** ******* in *decades-long ****** ** *nfounded *** ******** ******** ** ****** *********** [emphasis added] ...

*****************, **** **** **** ****** ** their ******* *********, *** ******** ******* in *** ********. ** *********** *** belief, *** ********* ******** * ****************** of *** ****** ** ***** *** and ******** *******....

**. *******, ****** **** ********* ****** in *** ******, ***************** **** ***** a ******* ***practice ** ****** ******** ******* ***** *********** ** ** ******** ****** ** stifle *********** [emphasis added]

********, ******** ******* *** ** ***** this ******* ** ***** ********'* *********:

*** ** ******** ** **** ***** to ****** *********** **** ******** ** telling ****** ** *** ********, ********* WaveLynx *********, **** ******** **** *** prevail ** *** ******* *******.

*******

*** ******* ** ****** ********** ** difficult ** *********. **** ** ** were ******* ** ****** **********, ****** litigation ******* ** ********* **** ******** that *** ********* ** ******* *** a ***** ***** ****.

*** ******** ******* ** * **********, and **** ***** *** ******, *** WaveLynx *** ****** * **** ****** and ****** ****** ** ***** *** larger **********, ****** **** **** ****** to ******. *** ** *** ** as ********** *** ********** ** ******** portrays **, *** ** ******** ** back ****.

*******, ************ ******* *** ***** ** this ** * **** ** *** so **** ** ******** ** ******* to ***** *********** **** *** ***** to *** ** **** ** ***********. We **** ****** ** *** **** proceeds.