Fax Chronicle

I received word this morning that J2 Global (NASDAQ:JCOM) (efax, jblast, jconnect, etc.) is being sued for selling Internet Fax services or as the suit says email to fax services. The company suing is called Bear Creek Technologies. The suit was filed yesterday. I don’t believe anyone else has this yet and I have not seen it on the wires. This could be big trouble for J2, but also the entire Internet fax industry or for that matter fax servers that process faxes via email. For a little company like this to take on J2 first, who has a whole company of attorneys handling intellectual property lawsuits takes courage and it says to me that they must believe their patent is pretty solid or maybe they just want to get bought. That said, the patent was awarded in 2006 and I frankly don’t think anyone really can corner fax patents, but I guess we’ll see. J2 has often used lawsuits and bases SEC filings and conference call projections upon revenue from patent litigation. Usually J2 threatens a lawsuit and then agrees to settle for under what it would cost to fight them or tries to buy them. I’ve attached a copy of the Patent as filed here: 494 Patent Jcom J2 Bearcreek fax to email patent infringement lawsuit. Here’s the screen shot from the filing document which is just a PDF Image. Here is the text of the suit after I ran it through OCR. There may be some typos or errors. You can download the actual document here for 8 cents per page.

Case 5:07-cv-00071 Document 1-1 Filed 05/09/2007 Page 1 of 5 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS TEXARKANA DIVISION BEAR CREEK TECHNOLOGIES, iNC., Plaintiff, vs. Civil Action No. 5:07-cv-71 j2 GLOBAL COMMUNICATIONS, INC. JURY TRIAL DEMANDED Defendants. COMPLAINT For its Complaint, Plaintiff Bear Creek Technologies, Inc. (“Bear Creek”) alleges as follows: NATURE OF THE ACTION 1. This is an action for patent infringement. Bear Creek alleges that j2 Global Communications, Inc. (“j2”) infringes Bear Creek’s United States Patent No. 6,985,494 (“the ‘494 Patent”) by making, using, offering for sale, and selling an email-to-fax delivery service, among other things, that infringes on the ‘494 Patent. Bear Creek seeks damages, injunctive and other relief for Defendant’s willful infringement of the ‘494 Patent. THE PARTIES 2. Plaintiff Bear Creek Technologies, Inc. is a corporation organized and existing under the laws of the State of Delaware, with its principal place of business in Birmingham, Alabama. COMPLAINT PAGE 1 Case 5:07-cv-00071 Document 1-1 Filed 05/09/2007 Page 2 of 5 3. Defendant j2 Global Communications, Inc. is a Delaware corporation with its principal place of business at 6922 Hollywood Blvd., Suite 500, Los Angeles, California 90028. This Defendant may be served with process through its registered agent, C T Corporation System, 350 North St. Paul Street, Dallas, Texas 75201. JURISDICTION AND VENUE 4. This action arises under the United States Patent Laws, codified at 35 U.S.C. § 1, etseq. 5. This Court has exclusive subject matter jurisdiction under 28 U.S.C. § 1331 and 1338(a). 6. This Court has personal jurisdiction over Defendant because, upon information and belief, Defendant is transacting business and infringing the ‘494 Patent in the Eastern District of Texas. 7. Venue is proper in the Eastern District of Texas pursuant to 28 U.S.C. § 1391(b), (c) and 1400(b), because, upon information and belief, Defendant has committed acts of direct and indirect infringement in the Eastern District of Texas and has transacted business in, and has established minimum contacts with, the Eastern District of Texas. THE ‘494 PATENT 8. On January 10, 2006, United States Patent No. 6,985,494, entitled “System for Interconnecting Standard Telephony Communications Equipment to Internet Protocol Networks” was duly and lawfully issued by the United States Patent and Trademark Office. A true copy of the ‘494 Patent is attached as Exhibit A. 9. Bear Creek is the sole owner of the ‘494 Patent and holds the right to sue and to recover for past, present, and future infringement thereof. COMPLAINT PAGE 2 Case 5:07-cv-00071 Document 1-1 Filed 05/09/2007 Page 3 of 5 THE ACCUSED METHOD 10. Defendant makes, uses, offers for sale, andlor sells an email-to-fax delivery service, among other things, that enables subscribers to send fax-destined emails over the internet for receipt by a destination fax device over a dialed telephone line connection. COUNT 1: INFRINGEMENT OF THE ‘494 PATENT BY DEFENDANT 11. The allegations of the preceding paragraphs of this Complaint are incorporated by reference as though fully set forth herein. 12. Defendant has infringed and continues to infringe the ‘494 Patent by making, using, selling, offering to sell, and/or importing methods, services, and/or systems that are covered by one or more claims of the ‘494 Patent. 13. Defendant has induced and continues to induce infringement of the ‘494 Patent by making, using, selling, offering to sell, and/or importing methods, services, and/or systems that are covered by one or more claims of the ‘494 Patent. 14. Defendant has committed and continues to commit acts of contributory infringement of the ‘494 Patent by making, using, selling, offering to sell, and/or importing methods, services, and/or systems that are covered by one or more claims of the ‘494 Patent. 15. Defendant had actual and/or constructive notice of the ‘494 Patent, but continued to make, use, offer to sell, sell, and/or import methods that are covered by one or more claims of the ‘494 Patent. Accordingly, Defendant’s infringement of the ‘494 Patent has been, and continues to be, willful and deliberate. 16. Defendant’s willful infringement of the ‘494 Patent makes this case exceptional pursuant to 35 U.S.C. § 285. COMPLAINT PAGE 3 Case 5:07-cv-00071 Document 1-1 Filed 05/09/2007 Page 4 of 5 17. Defendant has caused and will continue to cause Bear Creek substantial damage and irreparable injury by virtue of its past and continuing infringement of the ‘494 Patent. Bear Creek will suffer further damage and irreparable injury unless and until Defendant is enjoined by this Court from continuing such infringement. PRAYER FOR RELIEF WHEREFORE, Bear Creek prays for relief against Defendant as follows: a. Judgment that Defendant has infringed, induced others to infringe, and committed acts of contributory infringement with respect to the claims of the ‘494 Patent; b. Judgment that Defendant’s patent infringement has been, and continues to be, willful; c. A permanent injunction enjoining Defendant, its officers, agents, servants, employees, and those persons in active concert or participation with it from making, using, offering for sale, selling, or importing any method or system that is found to infringe the ‘494 Patent; d. Awarding Bear Creek damages adequate to compensate for the infringement by Defendant, but in no event less than a reasonable royalty for the use made of the invention by Defendant, together with interest and costs under 35 U.S.C. § 284; e. Trebling the aforesaid damages due to Defendant’s willful infringement, pursuant to 35 U.S.C. § 284; f. Awarding pre- and post-judgment interest on the damages assessed; g. Declaring this case exceptional pursuant to 35 U.S.C. § 285, and awarding Bear Creek its reasonable attorneys’ fees and expenses; and h. Awarding to Bear Creek such other and further relief as the Court deems just. COMPLAINT PAGE 4 Case 5:07-cv-00071 Document 1-1 Filed 05/09/2007 Page 5 of 5 JURY DEMAND Bear Creek demands a trial by Jury. DATED: May 9, 2007. Respectfully submitted, LOEWINSOHN FLEGLE DEARY, LL.P. David R. Deary Texas Bar No. 05624900 Jim L. Flegle Texas Bar No. 07118600 Carol B. Farquhar Texas Bar No. 06828300 12377 Merit Drive, Suite 900 Dallas, Texas 75251-2224 (214) 572-1700 Telephone (214) 572-1717 Telecopy ATTORNEYS FOR BEAR CREEK TECHNOLOGIES, INC. CO-COUNSEL: Greg Howison Howison & Amott, L.L.P. Lincoln Centre 5420 LBJ Freeway, Suite 660 Dallas, Texas 75240-2318 (972) 680-6050 Telephone (972) 479-0464 Telecopy Ernest Cory Cory, Watson, Crowder & DeGaris, P.C. 2131 Magnolia Avenue Birmingham, Texas 35205 (205) 328-2200 Telephone (205) 324-7896 Telecopy COMPLAINT PAGE 5