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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF VIRGINIA
Alexandria Division ...,
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City State Entertainment, LLC, a )
Virginia Limited Liability Company, ) J
10300 Eaton Place ) (Q jp, \T jj*' aJ
Suite 320 ) VI ^JT |/i
Fairfax, VA 22030 ) [^ /[
Plaintiff, )
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Jennifer LeMay, an )
Individual, )
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703 Berryville Avenue )
Winchester, VA 22601, )
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Defendant. )
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COMPLAINT FOR DECLARATORY JUDGMENT
OF PATENT INVALIDITY AND NON-INFRINGEMENT
THE PARTIES
1. Plaintiff City State Entertainment, LLC ("CSE") is aVirginia Limited Liability
Company with its principal place of business at 10300 Eaton Place, Suite 320, Fairfax, VA
22030.
2. On information and belief, Defendant Jennifer LeMay ("LeMay") is a Virginia
resident with a current address of 703 Berryville Ave., Winchester, VA 22601.
NAT! IRE OF THE ACTION
3. This is aDeclaratory Judgment action seeking adetermination that CSE does not
infringe any valid or enforceable rights of LeMay claimed in an April 15, 2014 Demand Letter
under 35 U.S.C. 271.
4. This is aDeclaratory Judgment action seeking adetermination that any United
States patent rights claimed by LeMay pursuant to the Provisional Application ;490 (hereinafter
defined in Paragraph 10) are unenforceable, in whole or in part, against Plaintiff.
JURISDICTION AND VENUE
5. These claims arise under the Declaratory Judgment Act, 28 U.S.C. 2201 and
2202, and the Patent Laws of the United States, 35 U.S.C. 1ct seq.
6. This Court has subject matter jurisdiction based upon 28 U.S.C. 1331, 1338(a),
2201 and 2202.
7. This Court has personal jurisdiction over LeMay. She is a resident of the
Commonwealth ofVirginia, filed Provisional Application '490 in this jurisdiction, and has sent
correspondence into this jurisdiction demanding that Plaintiff cease development of acomputer
game or otherwise enter into a patent license agreement.
8. Venue is proper under 28 U.S.C. 1391(b) and 1391(c).
THE SUBSTANTIAL CONTROVERSY BETWEEN THE PARTIES
9. On April 15, 2014, Defendant LeMay, through counsel, wrote a letter to CSE
("the April 15, 2014, Demand Letter") (Exhibit A).
10. The April 15, 2014, Demand Letter references a provisional patent application
numbered 61951490, entitled: "GAME MECHANICS SYSTEMS FOR ROLE PLAY, PLAYER
IMMERSION, SOCIAL COMMUNITY, AND GAME EXPERIENCE ENHANCEMENT IN
MASSIVE MULTIPLAYER ONLINE ROLE PLAYING GAMES (MMORPGs)" ("Provisional
Application '490").
11. The April 15, 2014, Demand Letter states that "the purpose of this letter is to
demand that you cease and desist all development and use of [patent pending game mechanics]
until such time as the parties can negotiate alicense agreement." Exhibit A, U2.
12. The April 15, 2014, Demand Letter describes one of these patent pending game
mechanics as one where a"a rcalm/kingdom/side obtains control of aresource such as adungeon
and/or mine which allows the players belonging to that realm/kingdom/side to gain access to
crafting resources and materials within that dungeon and/or mine" (as used in this pleading, "the
Resource Conquering Game Mechanic"). Exhibit A, 1| 4.
13. The April 15, 2014, Demand Letter describes one of these patent pending game
mechanics as one in which "the game economy is player based and players craft all pertinent
items such as armor, weapons, and items themselves rather than the commonly used method of
obtaining them via loot drops and NPC [Non-Player Character] purchases" (as used in this
pleading, "the Crafting System Game Mechanic"). Exhibit A, H5.
14. No other specific allegations ofinfringement are made in the April 15,2014
Demand Letter.
15. Defendant did not include acopy ofProvisional Application '490 with the April
15, 2014, Demand Letter.
16. Provisional patent applications are not searchable in the Patent and Trademark
Office's database, nor arc they otherwise publicly available for inspection.
17. Based on the provisional patent application number provided in the April 15,
2014, Demand Letter, Plaintiff believes Provisional Application "490 was filed sometime in late
2013.
18. The April 15, 2014, Demand Letter states that CSE's upcoming computer game,
-Camelot Unchained," as described by CSE publicly, "will infringe" LeMay's "pending patent."
Exhibit A, 1 2.
19. The April 15. 2014, Demand Letter alleges that CSE will be not be "operat[ing]
lawfully" if it continues to develop Cameloi Unchained without apatent license from LeMay,
and without such alicense CSE may be subject to treble damages. Exhibit A, H9.
20. The April 15, 2014 Demand Letter offers CSE alicense for "past, present, and
future uses of the game mechanics" for a$500,000 fee plus a"7% royalty" on game revenues.
Exhibit A, f 9.
21. By virtue of the foregoing, asubstantial controversy exists between the parties
that isofsufficient immediacy and reality to warrant declaratory relief.
NATURE OF THE CONTROVERSY BETWEEN THE PARTIES
A. Early Days of MMORPGs
22. The game mechanics referenced in the April 15, 2014, Demand Letter relate to
design aspects of online computer games, known as Massively Multiplayer Online Role Playing
Games, or MMORPGs.
23. Online computer games played simultaneously by multiple players have been
available since at least 1973 with the introduction ofthe game Maze War in which up to eight
players could play against each other through the use of the ARPANET (the precursor to the
Internet).
24. In the 80s, Online games were generally available at that time on private networks
such as CompuServe, GEnie. Prodigy and AOL or through local systems called BBS (Bulletin
Board Systems). Some of these systems featured games such as Empire, Galaxy {infra fl 35-36)
and others which first explored the use ofterritorial control in computer games.
25. The first commercial MUD (Multi User Dungeon) based in afantasy world where
players adopted characters to fight against the environment and each other was MUD1. released
on the ARPANET network in 1980.
26. With the creation of the World Wide Web, these games began to migrate to the
Internet, making them available to amuch wider audience in the mid-to late 1990's.
27. The first large-scale (over 100,000 paying subscribers) commercially successful
MMORPG playable over the Internet, Ultima Online, was launched in March, 1999.
28. Ultima Online, like many other MMORPGs, was set in a fantasy world where
players created characters and interacted with the environment ("Player vs. Environment" or
"PvE") as well as with other players ("Player vs. Player" or "PvP").
29. The most successful MMORPG to date has been World ofWarcraft, initially
launched in November of2004. It was also set in fantasy world and involved both elements of
PvE and PvP.
B. History of Plaintiff CSE and Mark Jacobs
30. Plaintiff CSE was formed in February, 2011, in Virginia as a Limited Liability
Company to produce, among other things, computer games.
31. CSE released its first game, "March on Oz," areal-lime strategy (RTS) game for
the iPad on or about November 7, 2012.
32. The majority owner and Managing Member ofCSE is Mark B. Jacobs.
33. Prior to forming CSE, Mr. Jacobs has had along career in the computer game
industry, and specifically in connection with developing, publishing and operating MMORPGs.
34. Mr. Jacobs began his career in the computer game industry in 1982, and since
then has produced more than 20 computer games and expansion packs through his various
companies.
35. In 1986, Mr. Jacobs produced two computer games, called Galaxy and Aradath.
These games were among the first "online multiplayer" games, in which many players
simultaneously played the game over telephone lines, via their computer modems. Galaxy was a
"turn-based" science fiction strategy game where players developed planets and then waged war
with other players in the game. Galaxy was an early example of the use of the Resource
Conquering Game Mechanic through territorial control in an online game as players waged war
across a"galaxy" for control of planets. The more planets you controlled, the more resources you
had at your disposal to build up your planet(s) and build spaceships which could then be used to
conquer other planets. Aradath was afirst-person fantasy roleplaying game, where players
created acharacter and then interacted with other players and monsters in afantasy world created
by Mr. Jacobs.
36. In 1989, one ofMr. Jacobs' prior companies, Adventures Unlimited Software,
Inc. ("AUSI"), entered into an agreement with General Electric to offer Galaxy and Aradath
(which was later renamed Dragon's Gate on the GEnie service) over the GE Information
Exchange ("GEnie") system, which was one of the first nationwide quasi-public computer
networks available prior to the explosionof the Internet.
37. In or about 1992, AUSI entered into an agreement with America Online whereby
AOL subscribers could access and play Dragon', Gate over its network. The game had also by
then been up on GEnie for some time.
38. In 1994, Mr. Jacobs teamed up with Robert Denton and formed what eventually
became Mythic Entertainment ("Mythic"), with Mr. Jacobs acting as the President of Mythic,
and lead designer for almost all of its products.
39. Between 1994 and 2001. Mythic produced and released for sale approximately 13
computer games, including: Splatterball (1996), Magestorm (1996), Castles II Online (1996),
Aliens Online (1997), Rolemaster: Bladelands (1997). Darkness Falls (1997), Starship
Troopers: Battlespace (1998), Godzilla Online (1998), Splatterball Plus (1999), Darkness Falls:
The Crusade (1999), Silent Death Online (1999), Spellbinder II The Nexus Conflict (1999),
Independence Day Online (2000).
40. In October, 2001, Mythic released DarkAge ofCameloi, afantasy-based
MMORPG, which became one of the earlier commercially successful MMORPGs but the first to
feature Realm vs. Realm (hereinafter RvR) player-vs-playcr conflict at its core.
41. Dark Age ofCameloi had as acore game mechanic RvR conflict, in which players
chose one of three realms to play, and then banded together with other players to attack other
realms to conquer territory and gain resources from their conquests.
42. In 2006 Mythic applied for and received atrademark registration for the term
"REALM VS. REALM," Registration Number 3148805. "REALM VS. REALM" or "RvR"
was used in Dark Age ofCameloi to describe the game mechanic of anumber of sides (realms)
attacking players who belonged to the other realms only (unlike traditional PvP games where
players were generally allowed to attack any other players at will). In Dark Age ofCameloi, RvR
was epitomized by the never-ending battle of the three realms over resources, control points, and
areas of the map.
43. Mythic, with Mr. Jacobs as lead designer, released six (6) expansion packs for
Dark Age ofCameloi featuring new content and game mechanics, including. Shrouded Isles
(2002), Trials ofAtlantis (2003), Foundations (2003), New Frontiers (2004), Catacombs (2005),
and Darkness Rising (2006).
44. In April 2002, Mythic Entertainment released anew addition to Dark Age of
Cameloi, Darkness Falls. This concept of Mark Jacobs was adungeon that could be accessed by
all three realms through gates that were in each of the three realms. However, in order to enter
the dungeon, one realm had to control more territory (RvR "keeps") than either of the two other
sides. Once this happened, the entrance (gate) to that dungeon would open for the realm which
had conquered the most territory, and the dungeon gates for the other realms would close. In
effect, this gave "control" of the dungeon to the realm most successful in conquering territory.
In addition, any players from the realm that formerly controlled the dungeon would be allowed to
stay in it, to fight the players of the realm that then controlled Darkness Falls.
45. Unlike traditional dungeons that have existed in other games, the "loot" system
rewarding players for conquering game-generated enemies in Darkness Falls was unique, in that
the killing of NPCs in the dungeon didn't just drop the usual mix of virtual gold and equipment.
Instead, slain NPCs dropped "seals" (virtual physical signets, not the marine creature) which
could be traded with the NPCs in the dungeon for other equipment, weapons, and other items and
attributes.
46. In 2006 all of the assets of Mythic were sold to Electronic Arts, the studio became
known as EA Mythic, and Mr. Jacobs remained as the head of the EA Mythic studio until his
departure in 2009.
47. In 2008 EA Mythic released Warhammer Online: Age ofReckoning (hereinafter
"WAR"), aPvP-centric MMORPG.
48. Mr. Jacobs was the lead designer of Warhammer Online: Age ofReckoning.
49. In WAR, Mark Jacobs and Mythic expanded upon their concept of Darkness Falls
and in 2009 released the "Landofthe Dead'' (hereinafter "LotD") anew zone for WAR. Like
Darkness Falls, control of the entrances to the LotD was once again limited to one realm at a
time, based on territorial control. Also, like Darkness Falls, players in the LotD when control
switched to another realm were allowed to remain inside it until they were killed. Within LotD,
tokens replaced "seals" as rewards that were dropped as loot within the game. Other non-
traditional items were also dropped such as "Torn Pages of the Liber Mortis" and "Sacred
Funerary Masks" and other items which could then be traded with NPC weapon merchants for
items.
C. Prior Art For the Resource Conquering Game Mechanic
50. As indicated above, fantasy-based MMORPGs have existed in many forms since
at least 1980.
51. The concept of territorial control and resource conquering is so widespread in
games of all types that even Wikipedia states in its entry on Game Mechanics, "A winner may be
decided by which player controls the most -territory- on the playing surface, or aspecific piece
of territory. This is common in wargames. but is also used in more abstract games such as go."
hnp-//pn.wikipedia.org/wiki/Game meehanics#Territorv control.
52. The April 15, 2014, Demand Letter describes the "Resource Conquering Game
Mechanic" claimed as patent pending by Ms. LeMay as one where a"a realm/kingdom/side
obtains control ofaresource such as adungeon and/or mine which allows the players belonging
to that realm/kingdom/side to gain access to crafting resources and materials within that dungeon
and/or mine." Exhibit A, U4.
53. Many early MMORPG games allowed players to battle for territory and thereby
control that territory and its resources, as evidenced by Mr. Jacobs' game Galaxy, available as
early as 1986.
54. As described above inParagraphs 40-49, over the period 2001 -2009, Mr. Jacobs
participated personally in the design and development of multiple MMORPGs, including Dark
Age ofCameloi, Darkness Falls, and the Land ofthe Dead expansion to War Hammer: Age of
Reckoning, which prominently featured "Resource Conquering Game Mechanics" involving a
realm gaining control ofaresource, thus allowing players ofthat realm to access materials within
that resource, ofthe same nature described in the April 15, 2014 Demand Letter. In addition to
the Resource Conquering Game Mechanics described in Mr. Jacobs' prior games above, many
other MMORPGs have featured and refined this game mechanic, as part of the prior art.
55. On orabout May 2003, CCP Games released Eve Online, a MMORPG set in
space. While this game has been and is continually improved, it has always featured territorial
control as part ofthe game. Currently corporations (players in a guild-like structure) can claim
solar systems. Such ownership comes with awide variety ofbonuses and they include special
access to resources within the system.
56. In2003, Wolfpack Studios released a MMORPG called Shadowbane, that was a
PvP game that focused on territorial control and Free-For-All (FFA) PvP combat. Unlike most
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of the MMORPGs in the West up until that time. Shadowbane allowed players to build, capture
and destroy territory belonging to other players. In July 2004, Wolfpack released apatch that
added the concept of mines that can be fought over by the players to achieve control. Once that
was achieved, the guild (a group of players that has banded together within the game world)
would be able to take materials from that mine. Only players who belonged to the guild were
able to take those materials from that mine while they controlled it. Different mines produced
different materials that later could be used by crafters to create items for players.
57. On or about 2005. Gravity Co., Ltd released the War ofEmporium expansion for
their hugely popular fantasy MMORPG Ragnarok. This expansion added the ability of guilds to
fight over territory and the castles contained therein. Whichever guild(s) won the battle were
awarded the castle which contained, among other things, adungeon that only the winning guild
could explore and do battle within.
58. On or about February 2006. Korean developer CCR Inc. released RF Online in
the United States. In this game three races do battle for control of the Crag mine core. When one
of the three realms accomplishes the goal of destroying one of the enemy's chips, that realm gets
control of the Holystone Keeper which then grants that race the right to extract materials in the
center ofthe mine. These materials can then be used to create new items in the game.
59. On or about February 2007, Korean developer NetTime Soft released an
MMORPG named Corum Online in the United States. While the game is currently no longer
available, one of its notable features was the ability of guilds to take control of dungeons and
hold them against attacks from other guilds.
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60. On orabout July 2007, the MMORPG Dekaron was released in the U.S. This
game contains a"Siege Mode" where guilds will do battle for control ofthe Genoa castle. The
winning guild will get control of the castle and become ruler of its territory.
61. Onor about September 2009, Icarus Studios released theMMORPG Fallen
Earth. On orabout February 10th. 2012 the studio announced their Global Territory Control
game mechanic in which Factions could control territory that would give the Factions that speed
up the time it takes to craft items to harvest materials, and many other bonuses. Like most
MMORPGs that feature harvesting and crafting, a wide range of materials can be
harvested/mined such as scrap metal, leather, silk, etc. Their crafting system had tenseparate
tradeskills alone, " ...which range from Armorcraft to Medicine and Weaponry." Indescribing
the game mechanics, they also said "Alittle something for everyone, right? Just one problem,
only one Faction can have it!"
62. On or about June 2010, Swedish developer Star Vault released in the U.S. an
MMORPG called Mortal Online which allowed players via guilds to take control of territory
within the game world.
63. On or about February 2011, Masthead Studios released Earthrise, an MMORPG
which featured territorial control by guilds as one of its most important selling features. Here,
guilds could take control and hold territory which allowed themaccess to. among other things,
mines from which only they could mine resources. This game and its features was first published
in 2009. In talking about the impact of players on the economy, lead designer Apostol Apostolov
said in an interview with online gaming site Ten TonLIammer,"[\\']\\Qn a guild takes over a
territory, if they can provide the cooperation and coordination needed to ensure a strong defense.
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they could keep control for long enough to make asizable dent in the world's economy."
(www.tentonhammer.com/node/68755).
64. On May 22nd, 2012, Forsaken Studios, aWichita Falls, Texas company sought
funding through the Kickstarter platform for Embers ofCaerus, another sandbox style
MMORPG (https://www.kickstarter.com/nroiects/forsakenstudios/embcrs-of-caeriis-investor-
prototype). This game featured "[e]xtensive crafting systems and aplayer-controlled economy"
as well as the saying that "Ever felt like forging your own kingdom, setting the laws ofthe land
and commanding your minions to enforce your every whim?" They reinforced these concepts on
their main page citing "Territorial controls" and "Rich player-controlled market and economy"
as two oftheir key features. Additionally in a blog about the game, the Forsaken Studios creative
director said that "It is my goal to provide players with a rich and fulfilling economy in which
every item is created or handled by players." http://archeaaesource.com/topic/829-cmbers-of-
caerus/. In that same blog, he went on to describe his vision for a territorial control system for
the game "[territory and politics are not forgotten either, and are in fact some ofour most
commonly discussed topics within the team. I am personally working on territory systems
presently that I hope will not only give players the ability to stake and shape their claim on the
world, but build it into a kingdom or remain as a small city-state that keeps to themselves at their
leisure."
65. On or about June 2012, Above and Beyond technologies launched a Kickstarter
for The Repopulalion, a sandbox MMORPG. While this game is primarily a PvE game, their
PvP game mechanics include the concepts of Contested Regions and Outposts. When a faction
takes control of territory ina Contest Region and builds an Outpost, they benefit greatly from
that. On their website they describe this as:
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"Harvestable areas and clusters in contested regions have higher yield rates
than in faction protected regions, which acts as areward for stepping out ofthe
controlled areas. While you can obtain the full complement ofresources in the
protected regions, it will be easier to obtain higher quality results in contested
regions. Control of these resources is expected to be avital point of conflict
providing opportunities for PvP, Control of resources is important to both
building the city, and in providing additional resources for player crafting.
City-specific resources function similarly to other harvested nodes, and will
spawn in both static and random locations. This provides opportunities for both
discovery and to hold key resources for longer periods oftime."
66. On orabout November 20,2012, Sony Online Entertainment ("SOE") released
Planetside 2, aMMOFPS (Massively Multiplayer Online First Person Shooter) that features
territorial control asone of its main foci. The world in this game is broken up into continents
with territories that can be captured by players. Each territory has value in the form ofresources.
To quote their website, "BATTLE FOR TERRITORIES &RESOURCES: The core gameplay
ofPlanetSide 2is about holding key territories and controlling resources. Each battleground
holds valuable resources andkey positions, and the Empire that can conquer (and manage to
hold) these territories will be rewarded with fuel bonuses, ammo bonuses, tech bonuses, and
more." Details about this system were first revealed on or about July 2011 at an SOE fan-fest.
67. Territorial and resourcecontrol are such widely known and used game mechanics,
that from 2011 to2013 alone, there were at least a dozen Kickstarter games that featured this
mechanic, including, but not limited to Dinosaur Battlegrounds
(https://www.kickstarter.com/nroiects/1319089374/dinosaur-battleurounds): Embers ofCaerus;
WarBucks (https://www.kickstarler.com/proiects/siimlehelix/warbucks-a-territorv-control-and-
deck-building); Sports Friends; Squad Wars
(https://www.kickstarter.eom/proiects/l065318294/sciuad-wars). Ensemble Online,
(https://www.kickstartcr.com/proiects/semiformal/ensemble-onlinc); Hailan Online, a game
14
where "Anyone, be it an individual or guild, can capture one or more of the many ancient
fortresses that dot the countryside, and doing so grants strategic benefits such as aminor bonus
stats AND in some cases the ability to tax anyone else in the territory. Own two of them and get
two bonuses, own three... you get the
idea." (https://www.kickstarter.com/projects/reloadedprod/hailan-rising).
D. Prior Art For the Player Crafting Game Mechanic
68. MMORPGs have been developing and refining sophisticated player "crafting"
systems for well over atwo decades. Whether the games were MUDS or the more advanced
MMORPGs such as Dark Age ofCameloi, the vast majority of these games featured acrafting
system of some kind. Even in one of the world's first MUDs Dragon sGate, players could have
items specifically crafted for them by the game's NPCs.
69. On or about December 2003, Three Rings Design released the MMOG Puzzle
Pirates. In this game, players created all ofthe items through crafting using raw materials
supplied by the developers. Here the players also controlled the market by setting the prices for
items as well as crafting the items either on their own or as part ofjobs for other players.
70. In orabout December 2006, Swedish developer Code Club AB released Wurm
Online for PCs worldwide, and available to play in the United States. Everything in this game is
created by players, from equipment to tools, to ships, castles and land terraforming. The player
crafting system allows for aunique player-driven economy, where items are one-of-a-kind. This
game was truly one of the first games that was "player-driven" without NPC quests, dropped
items, and other ways ofacquiring items that are "developer-driven" (meaning created by the
developers).
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71. On or about February 2011, Paradox Interactive announced Salem, afree-to-play
MMORPG based on the world of colonial Salem. In that game, players have to craft every item
in the game which features a barter-based economy.
72. On or about January 2012. Sandbox Interactive was formed in Berlin, Germany.
Their first project is an MMORPG called Albion Online, announced at least as early as February
28, 2013. Drawing on inspiration, in their own words, from games such as Ultima Online and
Dark Age ofCameloi, the key features of this game include a"player-driven" economy. From
their website at (www.albiononline.com/the-uamc) they list the following key features about the
game: "items and resources can only be found, crafted or brought from other players; Player-
driven economy; all items AND buildings are player crafted; build your own villages and towns;
one of the first games to combine PvP, player-driven-cconomy and full loot in afree-to-play
game; Territorial control system - Our core gameplay includes conquering territories;
Conquering and holding territories as many advantages: Access to resources and areas to build
your village." This game will be available in the U.S. over the Internet.
73. On May 9th, 2012, Goblinworks Inc., acompany based in Seattle, Washington,
launched the first oftwo successful Kickstarter campaigns for a game called Pathfinder Online.
In their "What is Pathfinder Online" section, they recite that "Pathfinder Online's robust trading
system puts players in control of the world's economy with player-created items, consumables,
fortifications, and settlements. Character-controlled settlements can grow into full-fledged
kingdoms that compete for resources as they seek to become the dominant force in the land,
raising vast armies to hold their territory against the depredations of monstrous creatures, NPC
factions, and other player characters."
16
(https://www.kic-kstarter.com/proiects/1675907842/pathfinder-online-techno
dcmo?ref=nav search).
74. Prior to launching their first Kickstarter campaign, Goblinworks began aseries of
blogs on their game's design. In one of their blogs, entitled Butchers, Bakers and Candlestick
Makers, dated April, 11, 2012 (https://oblinworks/bloi-/buthchers-bakers-and-candlestick-
makers/) they stated: "Pathfinder Online is based around the idea that virtually every object in
the game world that player characters interact with is created by other characters. While not
everyone who plays the game will make things, everyone will be using things that other people
have made." Additionally, in describing how resources in the game were going to be harvested
by players they said "When you find aresource that you want to harvest, the first thing you'll do
is construct acamp." Also, "The camp itself is apersistent structure. It can be found by anyone
exploring in the hex. Therefore, you need to defend it against aggression."
75. In November 2012, Goblinworks launched their second Kickstarter, which
successfully concluded on January 14, 2013 having raised $1,091,194. In update #19, December
20,h, 2012. (https://wwwkickslarter.com/proiects/1675907842/pathfinder-online-a-lantasy-
sandbox-mmo/posts?pae=13) Goblinworks talks about their "Territorial Control game
mechanic" and that "Once Territorial Warfare is implemented, tested and deployed, the
Settlements will begin to vie with each other for Territorial Control." This concept is at the core
of their game and even on the game's main webpage they state "You will struggle for control of
territory, trade routes, and resources with other players. Conflict is central to the game, and often
conflict will mean combat. Some areas of the world are safer than others - but the more risk you
take, the greater the rewards you will earn."
17
oev-
E. Plaintiff CSE Publishes Information Concerning the Game Mechanics of its
Upcoming Game Camelot Unchained.
16. On or about February, 2013, CSE opened its Camelotunchained.com website and
published a number of "Foundational Principle" documents that discussed the game mechanics
for its new MMORPG under development, called Camelot Unchained.
11. In Foundational Principle document No. 1, posted in February, 2013, Mr. Jacobs
described one of the characteristics of Camelot Unchained'that differed from prior MMORPGs
as "an RVR-focused game" that eschewed the traditional "PvE leveling/gear grind." To the lay
person, the difference between a PvE leveling game and a RvR/PvP-only (these terms are used
sometimes interchangeably) game is that in the later, playerscompete predominantly or
exclusively against other players rather than against NPCs created by the game designers.
78. In Foundational Principle document No. 2, posted February, 2013, Mr. Jacobs
described the game mechanics of Camelot Unchained as follows: "Everything in this game is
geared to the TriRealm concept, whether it is the crafting system, housing, skill progression, etc.
You will explore, fight, capture, level, etc. all within a competitive RvR world that was crafted
with this FP [Foundational Principle] in mind."
79. In Foundational Principle document No. 2, posted February. 2013, Mr. Jacobs
described the Crafting System Game Mechanic as follows:
"Our crafters will never have to worry about whether the gear that they make, the arrows
that they fletch nor the ring that they forged in the fires of Mount Doom..., whoops,
wrong game, sorry, being eclipsed by something that is dropped by a hummingbird, even
if it is the "WORLD'S LARGEST HUMMINGBIRD TFIAT SHOOTS LASER BEAMS
FROM ITS EYES." The best way toaccomplish this is toensure that there are no drops of
powerful items from NPCs. Secondly, to makesure that the first point is followed, let's
just say that there are no NPCdrops at all and damn fewNPCs. That's right, as an RvR-
focused game hummingbirds won't be dropping rare and unique items; well, unlessyou
consider bird pooprare and unique. You will get rewards for killingother players, other
players' helpers and some stuff in the world but it won't be gear and we will also not offer
tokens. Tokens are for subways and some pinball and arcade games, not for this game. I
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was and remain a fan of that type of system for a different game(s) but not for this game. 1
want my crafters to know that there is no chance that the stuff they are making can be
eclipsed by anything dropped or buyable through the non-player shops with but one
exception. That exception is if there are not enough crafters, we reserve the right to make
sure that things like population imbalance do not end upin a cascading and
insurmountable disaster for a realm."
"As a RvR-focused game, players will need all sorts of items and the crafters will have to
supply them. Whether it is arrows, armor, gold for the mint, etc., there's always going to
be somebody who needs something and that's where crafting comes in."
80. In Foundational Principle document No. 7, posted February, 2013, Mr. Jacobs
further described the Crafting System Game Mechanic in "CU" (Camelot Unchained) as follows:
"CU's crafting system is a bit of a "hash" as it incorporates some familiar elements as well as
elements that are wholly original; it is the interplay of these elements, enmeshed intheall-
consuming RvR environment of the game that will make it unique. Before moving on to the
"nuts and bolts" of the system, let us focus on some of the core principles that I envision for
the overall crafting system. First, our crafting system will be the only reliable way to get
armor, weapons and most items (some purely cosmetic and low-level items may be obtained
through vendors) for your characters. There are no "rare drops" from NPCs and even with
NPC guards and the like, we think the whole "Oh look, Ijust killed a nightingale and it
dropped a full suite of purple armor" is so last decade. Secondly, players of CU will be able
to create a "crafting-class" character with separate crafting-based ability and skill leveling
tracks. These leveling tracks will be similar tothe RvR-leveling tracks in the time necessary
to"level up" characters so that consequently, players will not simply beable todump money
from their main/alt/guild and quickly level upa crafting character (just as they could not do
that with an RvR-focused character). Thirdly, when you level up your crafting skills you will
not have to create large amounts of any good, as each itemtakes time and effort to create. We
also do not envisioncreating a system where the crafters will need the support of manyother
crafters to make most items. While we want our crafters to work with their fellow crafters at
times (more on this later), crafters must be able todo theirjob without having to rely ona
large number of other people to create an item as requiring too much cooperation would
greatly reduce the flow of newitems into the system. Fourthly, CUdoes employ a system
where items can decay and can breakover time; the decay will be slowenough that players
will have plentyof warning before items might break while simultaneously ensuringthat
players have toreplace most items over time (thus increasing the need for crafters and their
wares). Fifthly, magic, while an important part of the world, is not as commonplace on items
as it is in most MMORPGs. Items will have lots of modifiable stats, quality, etc. but do not
expect to be wielding Excalibur on day one or even day thirty. Magical items will not be rare
in CU, but the problem of "gcarflation," especially when it comes to truly magical items, is
one that we want to avoid. Finally, we want our crafters to earn renown among the players on
their server, whether through naming/signature (hopefullyvisual as well as textual) of items,
rewards from their server's ruler, etc. FYI, I'm only going to address the part of the crafting
system that deals with the creation of personal items and not the harvesting, gathering, etc. of
raw materials nor of creating siege weapons, structures, etc."
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"The creation and selling of items should be both a communal and openprocess tohelp
encourage socialization and connectivity between the players and aid in the building of both
realm and server pride. While the current, AH [Auction House] mechanic works very well in
many MMORPGs, it harms the sense of community that was present in many older games.
While we will modernize the whole "sit around in the middle of town hawking our wares"
thing, we will doso ina way that helps, not hinders, community building. While crafters
should be able to sell their wares in a bazaar-like setting and/or through their stores we will
alsoreturn to the concept of crafting stations in town. FYI, we might allow guilds that reach
certain realm-based goals to have their own crafting stations in their guild manor but that is
TBD."
81. In Foundational Principle document No. 9, posted February, 2013, Mr. Jacobs
further described the Crafting System Game Mechanic in Cameloi Unchained as follows:
"Thus, part of our job as the designers and developers of CU is to put systems in place to
create interdependency that encourages players to work together so that they not only have
the most fun but also enjoy the quickest ways to success within the game.
In terms of the crafting system, we want to build this interdependency not through creating a
chain of required players (gatherers -> refiners -> builders) because that could leadto its own
problems if one link in the chain is damaged/broken but rather to set up crafting goals and
tasks that both encourage and reward group cooperation. At the same time, that system
cannot prevent players from completing some of those actions if the requisite number of
players are either not available or are simply unwilling to help their fellow crafters when
requested. We will also create interdependency between the crafters and the non-crafters
through the use of objectives that will require the help of non-crafters to secure, such as the
special crafting stations in various structures scattered throughout the world, rare and
precious metal deposits, etc. Along withthe whole "no gear drop from PvENPCs" principle,
the same RvR-playcrs who can go out into the wild and secure these objectives will also need
the crafters to fulfill their gear and item needs as well as their help in building and fortifying
structures. This interdependency is certainly a fine example of how forced socialization and
grouping can work in a modern MMORPG in a manner that doesn't seem strained and/or
forced but flows a bit more naturally from both the IP's perspective and the game's design
and principles."
82. On or about April 2, 2013 CSE launched a Kickstarter campaign whereby it
sought to raise $2,000,000 to complete Camelot Unchained. The Kickstarter campaign
successfully funded on May 2, 2013, raising pledges of $2,232,933.
83. In the Kickstarter campaign, Mr. Jacobs pledged to invest $2 million of his own
money to fund game development. This is in addition to the money Mr. Jacobs has already
invested to fund the studio since it was formed in 2011.
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84. CSE currently has over a dozen staffworking full-time on Camelot Unchained.
85. CSE continues to raise money through crowdfunding sources through the PayPal
platform, and as of June 15, 2014, had raised anadditional approximately $421,000.
86. During the 30days of CSE's initial Kickstarter campaign during April and May
of 2013, CSE released 43 updates on Kickstarter, describing in significant detail the planned
game mechanics for Cameloi Unchained.
87. In the Kickstarter Campaign
(https://www.kickstarter.eom/projects/l3861848/camelot-unehaincd?rcf=nav search), the game
mechanics of, and interplay with RvRcombat in Camelot Unchained is described as:
a. "A place where both crafters and warriors must work together to succeed."
b. "The game will feature RvR-based leveling tracks for all classes. No
PROGRESSION VIAPvE(player vs. environment), loot drops or other such
systems are currently planned. All leveling will come from engaging in the
game's RvR-based systems, whether by fighting other players, capturing
objectives, and/or crafting objects to help in RvR. There will be NPCs but you
cannot use them to level your character."
c. "Players can control mines through the territorial control system of Camelot
Unchained. In order to help foster realm pride, owning most mines doesn't give
total control of the mine to a player or guild but rather it yields a "piece of the
action" to the player or guild that controls it." Update #21, April 21s', 2013.
d. "Mines are self-contained bubbles contained under the world map with
cooperative mining and RvR action."
e. "Players build their own realms, including keeps, forts and castles and then
defend them."
f. From Update 24, posted April 22, 2013:
i. "A1[1J plot[sJ have permission levels."
ii. "Players who capture a plot have to weigh the benefit of Salvage vs.
Destroy vs. Capture."
iii. "Crafters are better at salvaging, and they gain bonuses for
deconstructing."
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iv. "Destroying astructure means less resources gained."
v. "RvRers can build simple constructs to help in RvR. They can also repair,
but not as good as crafters but better than NPCs but not as close to skill of
a crafter."
vi. "All structures/prefabs have limited durability especially in RvR intensive
areas."
vii. "Supply Lines are an important part of RvR as well. Players need to keep
the supply lines open as long as possible to allow materials to flow."
viii. "The deeper players push into contested area, the better the rewards."
ix. "Structures (such as keeps) can be built free form or from approved plans.
Plans can be submitted to the realm for approval."
x. "Player can sacrifice structures to prevent them from falling into the
handsof the enemy."
g. "Our plan is right now that in The Depths, the big NPCs will be guarding access
to certain areas that will yield lots of good stuff for the side that control it. Some
of these could also yield scavenged/skinned materials but they will not have drops
or anything like that (I know you really didn't ask it but I figured someone else
would after reading this)." From an "Ask Me Anything" (AMA) on Reddit
(www.reddit.com) onApril 29,h, 2013
h. "You have an RvR dungeon and by controlling it you get all sorts of goodies. You
have the 'lower Defense aspect where your crafters and even some non crafters
and set up defenses... You are going to lose control ofthis, everyone loses control
ol this after sometime. You guys get to make life miserable for the other realm
that is gonna take control after you do." From Kickstarter Update #16 Part 2
April 12th 2013.
88. Following the successful closing of the Kickstarter campaign on May 2, 2013,
CSE continued to provide the gaming community, and the world, through the Kickstarter
platform, updates on the project (currently 99 and counting), including significant game
mechanics discussions.
F. History of Defendant LcMav
89. To Plaintiffs knowledge and belief, Defendant LeMay has never successfully
produced, coded, or released a computer game.
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90. Defendant LeMay twice attempted to raise money through the Kickstarter
platform in 2010 for a newMMORPG she wished to produce.
91. During July of 2010, LeMay sought $3,500 incrowdfunding for a new MMORPG
called "Hedron." https://www.kickstartcr.com/proiccts/1710971459/hedron-an-cxciting-ncw-
mmorpe-cominq-soon?ref=nav search.
92. LeMay offered "free" subscriptions for various time periods tothe upcoming
game to anyone pledging at least $10. At least three (3) backers made pledges in exchange for
receiving either a three (3) or nine (9) month subscription to the upcoming game. The pledges
totaled $100 and the Kickstarter campaign failed.
93. Inthe July2010 Kickstarter campaign, LeMay described what was wrong with
current MMORPGs ("repetitious grinding and farming for character levels"), and promised a
newtype of MMORPG, with game mechanics which would include:
"|t)hc PvP system is made upof four kingdoms that battle eachotherover material, skill,
and spell resources! You as a playerwill belong to oneof these kingdoms. Forget the
mindless "steal an artifact to get a pettystat boost' concept. In Hedron your spells, skills,
crafting abilities, andeconomy is impacted through PvP! Forexample, the kingdom that
controls a manacrystal will be able to unlockan extra level of spells both individually
and in a group. This allows for players to plansmall tactical attacks as well as large scale
invasions and something actually worth battling for."
94. During November and December, 2010, LeMay ran another Kickstarter
campaign, this time seeking $3,000 in crowd funding.
https://www.kickstarter.eom/projects/l 710971459/hedron-online-an-e.xcitii'm-new-
mmorpu?ref=nav search.
95. Again, LeMay offered free subscriptions to anyone pledgingat least one (1) dollar
to the project. At least eighteen(18) backers pledged money entitling themto some period of
free access to the upcoming game. Pledges this time totaled $579, meaning that the campaign
was unsuccessful and no money was dispersed to LeMay.
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96. The December 2010 Kickstarter campaign described Hedron as follows: "We
want to go back to the roots of gaming and what made it fun before it went corporate. Back to
the questing, PvP style, game mechanics, etc. that made games such as Everquest and Dark Age
ofCamelot successful but with new, fresh ideas and twists."
97. The December 2010 Kickstarter campaign described one of the game mechanics
as follows:
"We plan to bring balance to the item, crafting, and money systems. We will focus more
on allowing your character to obtain mods and attributes by accomplishing quests and
kills rather than gobbling up every item and gold coin you can in an attempt to create the
most uber character you can. Imagine receiving ascar on your character's arm after
beating aboss which boosts your spell resistance instead of farming the same mobs for
three days waiting for an item to drop that gives you the mod. Our goal is to immerse you
in the game play and to reward you for participating in guilds, croups, quests, and the
game storyline as opposed to rewarding simple farming. We will have items with mods
but the real juicy stuff will come from what you actually accomplish during came play
We think that sounds much more fun and brings back the roleplay aspect as opposed to
farming, killing, and collecting mindlessly....the usual gaming grind. No one likes to
grind so we want to try to do away with it and replace it with actual game play!"
98. Following the second Failed Kickstarter campaign. LeMay indicated an intent to
launch anew Kickstarter campaign in the future to fund development of Hedron. Update #20,
posted December 15, 2010.
99. On or about April 1, 2014, Defendant LeMay posted information concerning
Hedron on the Steam Community website announcing the intention to offer Alpha Test (early
testing of agame prior to commercial deployment) on as part of Steam's Early Access program
(http://steamcommunitv.com/.sharedfiles/filedeiails/?id=244778?on i that posting, LeMay
claimed that the Resource Conquering Game Mechanic and Crafting System Game Mechanic
were "patent pending."
100. The Hedrononline.com website claims the term "KINGDOM VS KINGDOM" as
a trademark.
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101. To the best of the knowledge of Plaintiff, Defendant LeMay has not filed for
federal registration of the trademark "KINGDOM VS KINGDOM."
COUNT I
Declaratory Judgment of Non-Infringement by Plaintiff
Of Any Rights Claimed in the April 15, 2014, Demand Letter
102. PlaintiffCSE realleges and incorporates by reference the allegations of
paragraphs 1-101.
103. A case or controversy exists between CSE and LeMay concerning the
noninfringement of the game mechanism claimedas patent pending in the April 15, 2014,
Demand Letter.
104. PlaintiffCSE, through its Managing Member, MarkJacobs, has beendesigning
and producing computer games for over three decades, many of which employ game mechanics
(both the Crafting System Game Mechanic and the Resource ConqueringGame Mechanic)
similar to those nowclaimedto be "patent pending" in the April 15. 2014 Demand Letter. Those
game mechanics date back to at least 2001 and as to Resource Conquering, back to 1986.
105. The game mechanics employed in Galaxy. Dark Age ofCamelot, Darkness Falls,
and Warhammer Online: Age ofReckoning and the Land ofthe Dead, are similar to, and teach
to, the Resource Conquering System Game Mechanic now claimed as patent pending by
Defendant LeMay in the April 15, 2014 Demand Letter.
106. The game mechanics employed in both DarkAge ofCamelot and Warhammer
Online: Age ofReckoning, are similar to, and teach to, the Crafting SystemGame Mechanic
now claimed as patent pending by Defendant LeMay in the April 15, 2014 Demand Letter.
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107. Substantial prior art exists within the industry that are similar to, and teach to, the
Resource Conquering System Game Mechanic now claimed as patent pending by Defendant
LeMay in the April 15, 2014 Demand Letter.
108. Substantial prior art exists within the industry that are similar to, and teach to, the
Crafting System Game Mechanic now claimed as patent pending by Defendant LeMay in the
April 15, 2014 Demand Letter.
109. Plaintiff CSE, as early as April. 2013, published detailed explanations ofhow PvP
battles would impact the availability and use of resources in Cameloi Unchained that are similar
to, and teach to, the Resource Conquering Game Mechanic now claimed as patent pending by
LeMay in the April 15, 2014 Demand Letter.
110. Plaintiff CSE, as early as February, 2013, published detailed explanations of how
item crafting would take place in Cameloi UnchainedThat are similar to, and teach to, the
Crafting System Game Mechanic now claimed as patent pending by LeMay in the April 15, 2014
Demand Letter.
111. CSEis entitled to a declaration that the manufacture, use, sale, offerof sale in
and/or importation into the United States ofproducts that include any game mechanic would not
infringe any valid and enforceable claims made in the April 15, 2014 Demand Letter.
COUNT II
Declaratory Judgment of Invalidity of Any
Rights Claimed in Provisional Application '490
112. Plaintiff CSE realleges and incorporates by reference the allegations of
paragraphs 1-101.
113. Acase or controversy exists between CSE andLeMay concerning the
noninfringement ofProvisional Application '490 requiring adeclaration ofrights by this Court.
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114. Any claim of exclusive rights, including patent rights, by Defendant LeMay in or
to the Crafting System Game Mechanic and Resource Conquering Game Mechanic, as described
and claimed in the April 15, 2014, Demand Letter and Provisional Application '490 referenced
therein, are invalid for failure to meet one or more of the requirements ofpatentability under 35
U.S.C. \0\,etseq., including but not limited to 35 U.S.C. 102 and 103.
115. Any claim of exclusive rights, including patent rights, by Defendant LeMay in or
to the Crafting System Game Mechanic and Resource Conquering Game Mechanic, as described
and claimed in the April 15, 2014, Demand Letter and Provisional Application '490 referenced
therein, are invalid because the alleged inventions claimed therein are anticipated in view of the
prior art to one having ordinary skill in the art and thus fail to satisfy the conditions of
patentability set forth in 35 U.S.C. 102 (lack ofnovelty based on prior art).
116. Any claim ofexclusive rights, including patent rights, by Defendant LeMay in or
to the Crafting System Game Mechanic and Resource Conquering Game Mechanic, as described
and claimed in the April 15, 2014, Demand Letter and Provisional Application "490 referenced
therein, are invalid because the alleged inventions claimed therein arc anticipated in view of the
prior art to one having ordinary skill in the art and thus fail to satisfy the conditions of
patentability set forth in 35 U.S.C. 103 (obviousness based on prior art).
117. Any claim ofexclusive rights, including patent rights, by Defendant LeMay in or
to the Crafting System Game Mechanic and Resource Conquering Game Mechanic, as described
and claimed in the April 15, 2014. Demand Letter and Provisional Application "490 referenced
therein, are invalid because the alleged inventions claimed therein are anticipated in view of the
prior art to one having ordinary skill in the art and thus fail to satisfy the conditions of
patentability set forth in 35 U.S.C. 102(b) based on the descriptions ofthese game mechanics
27
published as part of Defendant's own 2010 Kickstarter campaigns (inventor prior publication
and/or inventor first sale).
PRAYER FOR RELIEF
WHEREFORE, Plaintiff CSE respectfully requests that this Court enter aJudgment and
Order in its favor against Defendant LeMay:
1. Declaring that no valid and enforceable claim or right ofDefendant LeMay as to
the Resource Conquering Game Mechanic and Crafting System Game Mechanic described in the
April 15, 2014, Demand Letter has been infringed by Plaintiff CSE, and that Plaintiff CSE, and
its successor, licensees, and assigns, may continue to develop, and may make, have made, sell,
offer for sale, and import games which practice or incorporate, in whole or in part, the Resource
Conquering Game Mechanic and Crafting System Game Mechanic described in the April 15,
2014 Demand Letter, without infringement or violation of any such rights on the part of
Defendant LeMay;
2. Declaring that: Defendant LeMay lacks exclusive rights, including patent rights,
in or to the game mechanics described in the April 15, 2014, Demand Letter; that any such
purported patent rights therein or thereto are invalid and/or unenforceable; and that Plaintiff
CSE, and its successor, licensees, and assigns, may continue to develop, and may make, have
made, sell, offer for sale, and import games which practice or incorporate, in whole or in part, the
Resource Conquering Game Mechanic and Crafting System Game Mechanic described in the
April 15, 2014, Demand Letter, without infringement or violation ofany such rights on the part
of Defendant LeMay;
3. Permanently enjoining Defendant LeMay, any successor company, licensee, or
assignee, and all those acting under the authority of or in privy with her, from asserting,
28
enforcing, or otherwise seeking to enforce exclusive rights, including patent rights, in or to the
game mechanics described in the April 15, 2014, Demand Letter against Plaintiff CSE, its
successors, licensees, or assigns;
4. Permanently enjoining Defendant LeMay, any successor company, licensee, or
assignee, and all those acting under the authority of or in privy with her. from publishing any
claim or informing any person that Plaintiff CSE infringes any exclusive rights of Defendant
LeMay, including patent rights, claimed in the April 15. 2014, Demand Letter.
5. Permanently enjoining Defendant LeMay, any successor company, licensee, or
assignee, and all those acting under the authority of or in privywith her, from seeking funding on
Kickstarter or other crowdsourcing funding platforms by makingany claims of exclusive rights
to the "patent pending" game mechanics described in the April 15, 2014, Demand Letter that
other producers of MMORPGs purportedly do not have.
6. Permanently enjoining Defendant LeMay, anysuccessor company or assignee,
and all those acting under the authority of or in privy with her. from using the term "patent
pending" in any publication in relation to the Resource Conquering Game Mechanic and the
Crafting System Game Mechanic.
7. Declaring that this case is an exceptional case under 35 U.S.C. 285 and
awarding CSE its attorney's fees, costs, and expenses;
8. Declaring that the issues raised in this litigation and the reliefgranted to Plaintiff
CSE are matters material to patentability of the inventions claimed in Provisional Application
'490, and directing Defendant LeMayto notifythe U.S. Patent Office of the Court's orders
forthwith; and
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9. Awarding CSE such other and further additional relief as the Court may deem
just, proper and equitable.
DATED: July 1,2014.
Respect
Bern
VSB
GARVEY SCkHJBERT BARER
1000 Potomac Street. N.W.
Fifth Floor
Washington, D.C. 20007
(202) 965 7880
blambiottc@comcast.net
Counselfor Plaintiff,
City Stale Entertainment, LLC
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