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IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS SKF USA INC., Plaintiff, v.

AZIMA, INC., AZIMA DLI, LLC, AZIMA HOLDINGS, INC., and AZIMA SERVICES, INC., Defendants. ) ) ) ) ) ) ) ) ) ) )

Civil Action No. 4:14-cv-524 Jury Trial Demanded

ORIGINAL COMPLAINT FOR PATENT INFRINGEMENT Plaintiff SKF USA Inc. (SKF) alleges as follows: THE PARTIES 1. Plaintiff SKF USA Inc. (SKF or Plaintiff) is a Delaware corporation with its

principal place of business at 890 Forty Foot Road, P.O. Box 352, Lansdale, Pennsylvania, 19446. SKF is a subsidiary of AB SKF, a Swedish company. 2. SKF is engaged in, inter alia, the business of manufacturing and selling plain,

rolling element, and magnetic bearings, bearing housings, seals, actuators, lubrication devices and systems, and vibration and condition monitoring equipment and services. SKF also provides training, consultation, and engineering design services, among other related products and services. 3. SKF operates a Solution Factory facility at 3443 North Sam Houston Pkwy W

#100, Houston, Texas 77086, located within this judicial district. The SKF Solution Factory facility provides SKFs customers with ready access to a portfolio of SKF services and competencies, which include but are not limited to the remote condition monitoring products and -1-

services at issue in this matter. Documents and potential witnesses relevant to the issues in dispute in this matter are located within this judicial district. 4. Upon information and belief, Defendant Azima, Inc. is a corporation organized

under the laws of Delaware with its principal place of business at 300 Trade Center, Suite 4610 Woburn, Massachusetts 01801. 5. Upon information and belief, Defendant Azima DLI, LLC is a corporation

organized under the laws of Delaware with its principal place of business at 300 Trade Center, Suite 4610 Woburn, Massachusetts 01801. 6. Upon information and belief, Defendant Azima Holdings, Inc. is a corporation

organized under the laws of Delaware with its principal place of business at 300 Trade Center, Suite 4610 Woburn, Massachusetts 01801. 7. Upon information and belief, Defendant Azima Services, Inc. is a corporation

organized under the laws of Delaware with its principal place of business at 300 Trade Center, Suite 4610 Woburn, Massachusetts 01801. 8. Upon information and belief, Azima, Inc., Azima DLI, LLC, and Azima

Holdings, Inc. are wholly owned subsidiaries of Azima Services, Inc. (collectively, Azima). Upon information and belief, Azima, Inc. is licensed to do business in Texas. THE PATENTS 9. SKF holds all right, title, and interest in and to United States Patent No.

5,845,230, entitled Apparatus and Method for the Remote Monitoring of Machine Condition (the `230 Patent). The `230 Patent was duly and properly issued by the United States Patent & Trademark Office on December 1, 1998. A true copy of the `230 patent is attached hereto as Exhibit A. -2-

10.

SKF holds all right, title, and interest in and to United States Patent No.

6,489,884, entitled Apparatus and Method for the Remote Monitoring of Machine Condition (the `884 Patent). The `884 Patent was duly and properly issued by the United States Patent & Trademark Office on December 3, 2002. A true copy of the `884 patent is attached hereto as Exhibit B. 11. SKF holds all right, title, and interest in and to United States Patent No.

6,006,164, entitled Portable Vibration Monitor (the `164 Patent). The `164 Patent was duly and properly issued by the United States Patent & Trademark Office on December 21, 1999. A true copy of the `164 patent is attached hereto as Exhibit C. 12. The United States Patent and Trademark Office (USPTO) issued an ex parte

reexamination certificate regarding the `164 Patent on June 16, 2009. A true copy of the certificate is attached hereto as part of Exhibit C. JURISDICTION AND VENUE 13. Upon information and belief, Azima is engaged in, inter alia, the business of

manufacturing and selling vibration and condition monitoring equipment and services. Azima provides training, consultation, and engineering services in Texas. Azima specifically has sought out and has committed one or more acts of infringement within this judicial district by offering to sell or selling its infringing products and services within this judicial district. 14. For example, Azima exhibited its products at the 41st Turbomachinery & 28th

International Pump User Symposia and the 42st Turbomachinery & 29th International Pump User Symposia in this judicial district. Azima demonstrated the functionality of its WATCHMANTM, TRIOTM, and SpriteMAXTM systems at the 41st Turbomachinery & 28th International Pump User Symposia in this judicial district. -3-

15. 16. 1338(a). 17.

This action arises under the United States Patent Laws, 35 U.S.C. 1, et seq. The Court has exclusive subject matter jurisdiction under 28 U.S.C. 1331 and

The Court has personal jurisdiction over Azima as, upon information and belief,

Azima carries on continuous, systematic, and ongoing business in Texas. 18. The Court has personal jurisdiction over Azima as, upon information and belief,

Azima has committed specific acts of infringement of at least one claim of at least one of the patents-in-suit by offering for sale and selling infringing products within this judicial district, and on information and belief elsewhere as well. 19. These infringing products, as alleged above, have not been authorized in any

manner by SKF. Azima has never been authorized or otherwise granted the right to manufacture, offer for sale, sell, use, or import into the United States or otherwise distribute products covered by any of the claim(s) of at least one of the patents-in-suit. 20. Azimas infringement of the claims of the patents-in-suit has been willful and

deliberate. Azima has had actual knowledge of the `230 patent since at least October 2011. 21. Upon information and belief, Azima is infringing, and will continue to infringe

upon the patents-in-suit to the irreparable damage of SKF unless enjoined by the Court. 22. 23. SKF has no adequate remedy at law. Upon information and belief, venue is proper in the District Court for the

Southern District of Texas pursuant to 28 U.S.C. 1391 and 1400(b). THE ACCUSED PRODUCTS AND NOTICE OF INFRINGEMENT 24. On information and belief, Defendant Azima is a condition monitoring services

company that manufactures, offers for sale, and sells in the United States diagnostic equipment -4-

and continuous and predictive monitoring services of ball bearings and bearing systems found in large engines, commercial machinery, automobiles, powerhouses, turbines, and the like, under the brand name WATCHMANTM. Azima also manufactures, offers for sale, and sells in the United States a line of TRIOTM manual data collectors for the predictive monitoring of ball bearings and bearing systems found in large engines, commercial machinery, automobiles, powerhouses, turbines, and the like, for use with WATCHMANTM services. Azima also manufactures, offers for sale, and sells in the United States, its SpriteMAXTM online monitoring hardware, for the continuous and predictive monitoring of ball bearings and bearing systems found in large engines, commercial machinery, automobiles, powerhouses, turbines, and the like. The SpriteMAXTM includes a communication infrastructure and a vibration monitoring capability. 25. Azima has marketed its WATCHMANTM products and services in this judicial

district. Azima has marketed its TRIOTM products and services in this judicial district. Azima has marketed its SpriteMAXTM products and services in this judicial district. 26. Azima had actual notice of the claims of at least the `230 patent as early as

October 2011. SKF, through the use of a patent licensing company, approached Azimas then Vice President of Operations and Business Development and then Vice President of Technology and offered Azima a license to the `230 patent. Azima, through its then Vice President of Technology, subsequently declined to take a license under the `230 patent from SKF. 27. Azima infringes at least claims 5 and 6 of the `230 Patent, claims 1 and 3 of the

`884 Patent, and claim 11 of the `164 Patent, by manufacturing, selling, offering to sell, and using the products and services bearing the WATCHMANTM, TRIOTM and SpriteMAXTM brand names (collectively, vibration monitoring products and systems). -5-

COUNT I INFRINGEMENT OF THE `230 PATENT 28. The averments of paragraphs 1-27 of this complaint are incorporated by reference

as though fully set forth herein. 29. Azima, in violation of 35 U.S.C. 271, has and continues to infringe at least

claims 5 and 6, among others, of the `230 Patent by manufacturing, selling, offering to sell, and using, its vibration monitoring products and systems without authority from SKF. 30. Azimas vibration monitoring products and systems satisfy all the limitations of

claim 5 of the `230 Patent either literally or under the doctrine of equivalents. 31. Furthermore, Azimas vibration monitoring products and systems satisfy all the

limitations of claim 6 of the `230 Patent either literally or under the doctrine of equivalents. 32. Azimas infringement, among other things, makes this case exceptional pursuant

to 35 U.S.C. 285. 33. Azimas infringing acts have caused, and unless restrained and enjoined, will

continue to cause, irreparable injury and damage to SKF for which SKF has no adequate remedy at law. Unless permanently enjoined by this Court, Azima will continue to so infringe at least claims 5 and 6 of the `230 Patent. COUNT II INFRINGEMENT OF THE `884 PATENT 34. The averments of paragraphs 1-33 of this complaint are incorporated by reference

as though fully set forth herein.

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35.

Azima, in violation of 35 U.S.C. 271, has and continues to infringe at least

claims 1 and 3, among others, of the `884 Patent by manufacturing, selling, offering to sell, and using its vibration monitoring products and systems without authority from SKF. 36. Azimas vibration monitoring products and systems satisfy all the limitations of

claim 1 of the `884 Patent either literally or under the doctrine of equivalents. 37. Furthermore, when used, Azimas vibration monitoring products and services

perform all of the steps of the method set forth in claim 3 of the `884 Patent either literally or under the doctrine of equivalents. 38. Azimas infringement, among other things, makes this case exceptional pursuant

to 35 U.S.C. 285. 39. Azimas infringing acts have caused, and unless restrained and enjoined, will

continue to cause, irreparable injury and damage to SKF for which SKF has no adequate remedy at law. Unless preliminarily and permanently enjoined by this Court, Azima will continue to so infringe at least claims 1 and 3 of the `884 Patent. COUNT III INFRINGEMENT OF THE `164 PATENT 40. The averments of paragraphs 1-39 of this complaint are incorporated by reference

as though fully set forth herein. 41. Azima, in violation of 35 U.S.C. 271, has and continues to infringe at least

claim 11, among others, of the `164 Patent by manufacturing, selling, offering to sell, and using its vibration monitoring products and systems without authority from SKF. 42. Azimas vibration monitoring products and systems satisfy all the limitations of

claim 11 of the `164 Patent either literally or under the doctrine of equivalents. -7-

43.

Azimas infringement, among other things, makes this case exceptional pursuant

to 35 U.S.C. 285. 44. Azimas infringing acts have caused, and unless restrained and enjoined, will

continue to cause, irreparable injury and damage to SKF for which SKF has no adequate remedy at law. Unless permanently enjoined by this Court, Azima will continue to so infringe at least claim 11 of the `164 Patent. PRAYER FOR RELIEF WHEREFORE, SKF respectfully prays that this Court grant judgment in its favor and award the following relief: 1. 2. The entry of judgment that Azima infringes the `230, `884, and `164 Patents; The entry of an order permanently enjoining and restraining Azima and its

parents, affiliates, subsidiaries, officers, agents, servants, employees, attorneys, successors, and assigns and all those persons in active concert or participation with them or any of them, from making, or having made, importing into the United States, using, offering for sale, selling, or causing to be sold, any product or process falling within the scope of any claim of the `230, `884, and `164 Patents, or otherwise infringing, or contributing to or inducing infringement of any claim of the `230, `884, and `164 Patents. 3. The award of damages adequate to compensate SKF for Azima`s infringement,

but in no event less than a reasonable royalty for the use made of the invention, together with interest and costs under 35 U.S.C. 284; 4. 5. 6. An award of damages to be trebled pursuant to 35 U.S.C. 284; A declaration that Azimas infringement was willful; An award of SKFs costs; -8-

7. 8.

An award of pre- and post-judgment interest on the damages assessed; An order declaring this case exceptional pursuant to 35 U.S.C. 285 and

awarding SKF its reasonable attorney fees; 9. An order requiring Azima to account to SKF for its profits and expenses lost

through the infringing sales realized by Azima and any subsidiary of Azima; and 10. Such other and further relief as the Court deems just and proper. JURY DEMAND SKF hereby demands a trial by jury.

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March 3, 2014

Respectfully submitted,

/s/ Phillip B. Philbin Phillip B. Philbin LEAD ATTORNEY S.D. Texas Bar No. 11636 Stephanie N. Sivinski S.D. Texas Bar No. 1785516 Haynes and Boone, LLP 2323 Victory Avenue, Suite 700 Dallas, Texas 75219 Phone: 214-651-5121 Fax: 214-200-0867 phillip.philbin@haynesboone.com stephanie.sivinski@haynesboone.com

Attorneys for SKF USA, Inc.

Of Counsel: Bradley J. Olson Haynes and Boone, LLP 1615 L Street, NW Suite 800 Washington, DC 20036-5610 Phone: 202-654-4539 Fax: 202-654-4249 brad.olson@haynesboone.com Attorneys for SKF USA, Inc.

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