IDSi v. City of New York

8/13/2019 IDSi v. City of New York

http://slidepdf.com/reader/full/idsi-v-city-of-new-york 1/12

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TheJS-44civilcoversheetand theinformationcontained herein neither replacenorsupplementthe filingand serviceofpleadingsorother papersas requiredby law, exceptas providedby local rules of court. This form,approved by theJudicialConferenceofthe UnitedStates in September1974,is requiredforuse ofthe ClerkofCourtforthepurposeofinitiating the civil docket sheet.

B 0 S 2014

PLAINTIFFS

IDSi In ternat ional Inc.

D EFEN D A N TS

The Cityof New York and The New York CityDepartmentof EnvironmentaPro te c t ion

ATTORNEYS (FIRM NAME,ADDRESS, ANDTELEPHONE NUMBERGa bor & Marotta LLC

1878 Victory BoulevardStaten Island, NewYork10314 (718) 390-0555

CAUSEOFACTION CITETHE U.S. IVILSTATUTEUNDER WHICHYOUAREFILING NDWRITEABRIEF STATEMENT OFCAUSE(DO NOT CITE JURISDICTIONALSTATUTES UNLESSDIVERSITY)

17 U.S.C.§ 101 et seq.,forcopyright infringementforviolationof IDSi's exclusiverightsofreproduction&distributionofa derivativework

ATTORNEYS (IF KNOWN)

Has thisora similarcase been previouslyfiled in SDNYatany time? No [x] Yes • Judge PreviouslyAssigned

Ifyes,was thiscase Vol.• Invol.• Dismissed.No• Yes • Ifyes,givedate &Case No.

IS THIS N INTERN TION L R ITR TION CASE? Np E3 YeS Q

PLA CEAN[x] IN ONEBOX ONL Y NATUR E O F SUIT

AC T IONS UNDER STAT UT E S

P E R S O N A L I N J URY P E R S O N A L I N J URY F O R F EI TU R E P EN A LTY B N K R U P T C Y

[ ] 42 2 APPEAL28 U S C 1 5 8

[ ] 42 3 WITHDRAWAL28 US C 15 7

O TH ER STAT UT E S

[ ] 1 1 0[ ] 1 2 0

[ 1130[ ] 1 4 0

[ ] 1 5 0

[]151[J 152

[ ] 3 1 0

[ ] 3 1 5

[ ]320

[ ]330

[ ] 3 4 0[ ] 3 4 5

[ ]350[ ]355

[ J 360

A I R P L A N E

AIRPLANE PR ODUC TLIABILITY

ASSAULT, LIBEL &S LA N D ER

F E D E R A L

EMPLOYERS'LIABILITY

M A R I N E

MARINE PR ODUC TLIABILITY

M O TO R VEHICLEM O TO R VEHICLE

PR ODUC T LIABILITY

OTHER PERSONALI N J U RY

[ J 3 62 PE RSONAL INJURY- [ ] 6 10MED MALPRACTICE [ ] 6 20

[ J 3 65 P ER SO NA L INJURYPRODUCT LIABILITY [ ] 6 25

[ ] 3 68 A SB ESTO S PERSON ALINJURY PR ODUC TL IA BIL IT Y

P E R S O N A L PR OPE RT Y

[ 1 3 7 0[ J 371[ ]380

[ ]385

OT HE R FRAUD

TR U TH IN LENDING

OT HE R P E RS ONALPROPERTY DAMAGEPR OPE RT Y DAMAGE

PR ODUC T LIABILITY

[ J 63 0[ ]640[ ]6 5 0[ ]660

[ I 69 0

A G R I C U LTU R EO T H ER F O O D &D R U G

D R U G R E L AT E D

SEIZURE OFP R O P E RT Y

21 US C 88 1

L IQ U O R L AW S

RR & TR U C KAIRLINE R E GS

O C C U PATI O N A L

SAFETY/HEALTHO T H E R

PR OPE RT Y R IGHTS

N 8 2 0 COPYRIGHTS[ ]830 PATENT[ I 84 0 TRADEMARK

[ | 400

[ 1410[ I 430[ I 450[ I 460[ I 470

[ )4 8 0[ ]490[ 1810[ I 85 0[ ] 1 5 3

[ ] 1 6 0

[' 190

[ ] 1 9 5

[ ] 1 9 6

I N S U R A N C E

MARINE

MILLER AC T

N E G O T I A B L E

INSTRUMENTRECOVERY OFOVERPAYMENT EN F O R C EM EN T

OF JUDGMENTM E D I C A R E AC TR E C O V ERY O F

D E FA U LT E D

ST UDE NT L OANS

(EXCLVETERANS)R EC O V ERY OFO V ER PAY M EN T

OF V ETER A N 'SBENEFITS

STOCKHOLDERSS U I TSO T H E R

CONTRACTC O N TR A C T

P R O D U C TLIABILITY

F R A N C H I S E

P R I S O N ER P E T I T I O N S

S O C I A L S E C U R I T Y

[ J861 HIA(1395ff)[ ] 862 BLACKLUNG(923)

[ ] 863 DIWC/DIWW(405(g))[ J 8 64 S SI D TITLE XVI[ J865 RSI (405(g))

L B O R

[ ] 7 1 0 FAIR LABORS TA N D AR D S A C T

[ ] 72 0 LABOR/MGMTR E L AT I O N S

L A B O R / M G M T

REPORTING &DISCLOSURE AC T

RAILWAY L A BO R A C TOT HE R LABOR

LITIGATION

EMPL RE T INC

S E C U RI T YA C T

[ 1 8 7 5

[ ]8 9 0

[ ]891[ 1892

[ ]893

[ 1 8 9 4

[ ]895

[ ]900

[ J 95 0

S TATE

REAPPORTIONMENTA N T I T R U S T

BANKS & BANKING

C O M M ER C E

DEPORTATIONR A C K ETEER INFLU

ENCED & C OR R UPTO R G A NI ZATI O N A C T

(RICO)CONSUMER CREDIT

CABLE/SATELLITE TVSELECTIVE SERVICES EC U R I TI ES /

COMMODITIES/E X C H A N G E

C U S TO M ER

C H A L L E N G E12 US C 3410

OT HE R STATUTORY

A C T I O N S

AGRICULTURALAC TS

ECONOMIC

STABILIZATION AC T

ENVIRONMENTALM AT T E R S

E N E R G Y

ALLOCATION ACT

F R EED O M OF

INFORMATIONAC T

A P PE A L O F F E E

DETERMINATION

U N D E R E Q U AL

A C C E S S T O JUSTICE

CONSTITUTIONALITYOF STATE S TATU TES

[ 1 5 1 0AC T IONS UNDER STAT UT E S

CIVIL R I G H TS

[ ] 4 41 VOTING[ J 442 EMPLOYMENT[ ] 443 HOUSING/

ACCOMMODATIONS[ ] 44 4 WELFARE[ J 44 5 AMERICANS WITH

DISABILITIES -E M P L O Y M E N T

[ ] 4 46 AM ER IC AN SW ITHDISABILITIES -OTHER

[ ] 4 4 0 OTHER CIVIL RIGHTS(Non-Prisoner)

MOTIONS TO

VACATE SE NT E NC E28 US C 2255HABEAS C O R P U SD E ATH P E N A LT Y

MANDAMUS & OTHER

[ 1 7 3 0FEDERAL TA X SUITS

[ ]870 TAXES (U.S. Plaintiff orDefendant)

[ J8 71 I RS -T HI RD PARTY26 US C 7 6 0 9

R E A L P R O P E RT Y

[1210

[ ]2 2 0[ ]230

[ ] 2 4 0

[ ] 2 4 5

[ ]2 9 0

LAND

CONDEMNATION

FOR E C L OSUR ER E N T L E A SE &EJ EC TM EN T

T O RT S T O LAND

T O RT P R O D UC TL IA BIL IT Y

ALL O T H E R

R E A L P R O P E RT Y

Check if demanded in complaint

CHECK IF THIS IS A C LA S S ACTIONUNDE R F.R.C.P. 2 3

D EM AN D $ O T H E R

Check YES onlyifdemandedin complaintJURY DEMAND: • YES • NO

[ J 53 0[ ]535[ ]5 4 0

PRISONER CIVIL RIGHTS

[ I 550 CIVIL RIGHTS[ ] 555 PRISON CONDITION

[ 1740[ 1790

[ J 791

IMMIGRATION

[ 1462 NATURALIZATIONAPPLICATION

[ 1 463 HABEAS CORPUS-ALIEN DETAINEE

[ ] 46 5 OTHER IMMIGRATIONA C TI O N S

DO YOU CLAIM THISCASE IS RELATEDTO A CIVIL CASE NOW PENDING IN S D N Y

IF SO , STATE:

J U D G E D O C K ET N U M B E R

NOTE:You must also submit atthe time offilingtheStatementofRelatednessform (Form IH-



PLACEAN x IN ONE BOX ONLY ORIGIN

l_l 2 Removedfrom LJ 3 Remanded I I4 Reinstatedor L J5 Transferredfrom • 6 MultidistrictState Court from Reopened (SpecifyDistrict) Litigation

L7J a. allparties represented A ppellateCo u r t

| I D. At least onepar ty is pr o se .

I 1 OriginalProceeding LJ 7 Appealto Distr

Judge fromMagistrate JudgJudgment

PLACEANxINONEBOXONLY BASIS OF JURISDICTION• 1 U.S.PLAINTIFF • 2 U.S.DEFENDANTE 3 FEDERALQUESTION Q4 DIVERSITY(U.S. NOTA PARTY)

IFDIVERSITY, INDICATECITIZENSHIP E L O W

28 USC 1332, 1441

CITIZENSHIPOF PRINCIPALPARTIES (FOR DIVERSITYCASESONLY)(Placean [X] inone boxfor Plaintiffandone boxfor Defendant)

CITIZEN OF THIS STATE

CITIZENOF ANOTHER STATE [ ]2 [ ]2

PT F DE F

[ H [ H CITIZEN OR SUBJECT OF AFOREIGN COUNTRY

INCORPORATED or PRINCIPAL PLACEOF BUSINESS IN THIS STATE

PT F DE F

[ 13 [ ] 3

[ ] 4 [ ]4

PT F DE F

INCORPORATEDand PRINCIPALPLACE [ ]5 [ ]5OF BUSINESS IN ANOTHER STATE

PLAINTIFF(S)ADDRESS(ES)AND COUNTY(IES)

IDSi In ternational2125 Center Ave nu e, S ui te 5 00Fort Lee, NJ 07024

FOREIGN NATION

DEFENDANT(S)ADDRESS(ES)AND COUNTY(IES)

The City of New York/The New York City Department of EnvironmentalProtection1 00 C hu rc h S t r e e t

Ne w York, Ne w York 10007

[ 1 6 [ ] 6

DEFENDANT(S) ADDRESS UNKNOWNREPRESENTATIONIS HEREBYMADE THAT,AT THISTIME,IHAVEBEENUNABLE,WITHREASONABLE DILIGENCETO ASCERTAINTHE

RESIDENCE ADDRESSES OF THE FOLLOWINGDEFENDANTS:

Checkone: THIS ACTIONSHOULDBE ASSIGNEDTO: • WHITE PLAINS (E MANHATTAN DO NOTcheckeitherbox if this a PRISONERPETITION/PRISONERCIVILRIGHTS COMPLAINT.

DATE 2/6/14 SIGNATURE OFATTORNEYOF RECORD

R E C E I P T

MagistrateJudge isto be designated bythe Cl|ij<

Magistrate Judge

Ruby J. Krajick,Clerk of Court by. . Deputy Clerk, DATED .

UNITEDSTATES DISTRICT COURT(NEW YORKSOUTHERN)

ADMITTED TO PRACTICE IN THIS DISTRICT[ ] NON YES (DATE ADMITTED Mo. 02 Yr. 97 )Attorney Bar Code DM-2581

is so Designated.





P R T I E S

4. That at all times hereinafter, Defendant, CITY OF NEW YORK, is a municipal

corporation duly formed and existingunder and by virtueof the laws of the State of New York.

5. Upon information and belief, and at all relevant times hereto, the Defendant

DEPARTMENTOF ENVIRONMENTAL PROTECTION,was a divisionand/or departmentof

the City of Ne w York.

6. At all relevant times hereto, DefendantCITY OFNEW YORK was responsiblefor the

policy,practice,supervision, implementation,and conductof its executiveofficers and agencies,

divisions and departments including without limitation, Defendant THE NEW YORK CITYDEPARTMENT OF ENVIRONMENTAL PROTECTION.

7. Plaintiffis the holderof a certificateof registrationissuedby the United States Copyright

Office for the copyright to the Tier II Manager software program(the Software ). See

Copyright Registration Certificate datedJanuary 3, 2014, attached hereto as Exhibit A.

8. On or about December19, 2013, the Plaintiff, IDSi INTERNATIONALINC. ( IDSi ),

served upon the Defendants, THE CITY OF NEW YORK and DEPARTMENT OF

ENVIRONMENTAL PROTECTION,( DEP ), a Notice of Claim and Intention to Sue, which

said Notices of Claim and Intentionto Sue were served upon the Defendants within ninety(90)

days after the causesof actionhereinallegedaccrued.

9. At least thirty (30) days haveelapsed sincethe demandor claim upon which this action is

predicated was presented to the Defendants, THE CITY OF NEW YORK and DEPARTMENT

OF ENVIRONMENTAL PROTECTIONfor adjustmentand payment,and the Defendantshave

neglected and/or refused to make adjustment or payment therefor.



10. This action has been commenced against the Defendants, THE CITY OF NEW YORK

and THE NEW YORK DEPARTMENT OF ENVIRONMENTAL PROTECTION, within the

period of one (1) year and ninety (90) days after the cause of action upon which this claim is

ba s e d accrued .

O C C U R R E N C E S

11. The Tier II Manager software program (the Software ) was created by IDSi and first

published for use by licensees in 2002.

12. In December 1984, some 500,000 people were exposed to methyl isocyanate gas and

other chemicalsas a result of a gas leak in Bhopal, India. Over 3,500 deathswere reported bythe Indian government, and the incident set of f worldwide concerns and a call for

implementationof systems designedto contend with such disasters and coordinate government

and international responses.

13. Plaintiff and its predecessorsspent over 7 years in research and developmentto create a

software system that was effective but easy to use, andcouldbe implemented by anygovernment

agency or private sector entity.

14. The Tier II Manager programwas thereby developedby Plaintiff to provide a highly

effective and efficient system to meet EPA regulatory reportingrequirements as specified under

EPA SARATitle III, Emergency Planning and Community Right to Know Act of 1986.

15. The Tier II Manager programprovides a unique and highly sophisticated reporting and

response system for municipalities and businesses and has been licensed for use in 15 different

states in the U.S., with over 350,000 businessesand over 2,000 local government agenciesusing

the Software program.



16. The Software is groundbreakingin its efficiencyand simplicityof style and design, and

has become renownedand widelyused by entitiesin both the governmentand privatesectors.

17. On or about July 20, 2005, IDSiInternationalInc. and the NewYork City Departmentof

EnvironmentalProtectionentered into a Software Developmentand Services Agreement for

use of theIDSi software system (the License ).

18. The License specifically provides for the confidentialityof IDSi's trade secrets and

intellectual property,and expresslyforbids replicationor reverseengineeringof the software.

19. Over the last 7 years, Claimant has provided ProductModules, Enhancements, and

support and maintenance servicesto the City of New York, and the City of New York hasbenefittedfrom the use of the Tier II Manager software.

20. However, the City has declinedto renew its most recentlicense agreementwith IDSi and

stopped makingpaymentsfor maintenanceand support servicesinJuly 2013.

21. On or about October 18, 2013, IDSi first became aware that the Department of

EnvironmentalProtection of the City of New York had copied/reversed engineeredthe source

code and specific screen images of the Tier II Manager programin blatant violationof IDSi's

valuablecopyrightsand intellectualpropertyrights, and in direct violationof the express terms

of Article 4.3 of its License agreement with IDSi.

22. It is now apparent that the Defendant's have created a pirated version of Plaintiffs

valuable copyrighted Software programand are using such unauthorized version in blatant

violation of Plaintiff's rights under the Copyright Act.23. Defendants' unauthorized versioneven falsely assertsa copyright notice New York City

Copyright 2011.



24. On October 18, 2013 Plaintiff sent Defendants a letter demanding that DEP cease and

desist from anyfurther infringement of Plaintiff s valuable intellectual property rights.

25. The City of New York continues to use the pirated version of IDSi's renowned software

program without license, authority or permission.

26. IDSi is the sole proprietor of all right, title and interest in and to the Software, and has not

conveyed or assigned same to any other entity or person.

27. The City of New Yorkcontinues to infringe the Plaintiffs copyrights, causing irreparable

harm and thepotential loss of ongoinglicensingrevenues from other duly licensed licenseesand

potential licensees.

A S AND FO R A FIRST C A U S E OF AC TION: COPYRI GHT INF R INGEM ENT

28. Plaintiff repleads and reallegeseach and every allegation of the foregoing paragraphs,as

if specifically pleaded herein.

29. Plaintiff did not authorize the copying, reproduction,distribution, performance or

d e ri v at iv e u s e s o f t h e S o f tw a r e .

30. Defendants had access to the Software and the source code by reason of its license

Agreement with Plaintiff.

31. Upon information and belief, the activities of Defendants complained of herein are

continuing,constitute willful and intentional infringementof Plaintiff's registered copyright,and

are in total disregard of Plaintiff's rights.

32. By reason of the foregoing, Defendants are liable to Plaintiff for willful copyrightinfringement in violation of the Copyright Act of 1976, 17 U.S.C. § 101 et seq., for actual and

statutory damages in an amount to be determined, but not less than TWO MILLION and 00/100

( 2,000,000) Dollars, for violation of Plaintiffs exclusive rightsof reproduction, distribution,



performance and the preparation of derivative works under 17 U.S.C. §106, together with its

consequential damages, statutory damages, plus interest, attorneys fees, costs and the

disbursements o f th is act ion .

AS A ND F OR A SECOND CAUSE OF A CTIO N : IN JU N CTION

33. Plaintiff repleadsand reallegeseach and every allegationof the foregoingparagraphs,as


34. As a result of the aforementioned occurrences, and continuing infringement of its

copyright,Plaintiff has been damaged and continues to suffer irreparable harm to its work for

which monetary damages may be insufficient.

35. By reason of the foregoing,Plaintiffis entitled to an injunction pursuant to 17 U.S.C.A.§

502 to prevent and restrain infringementby directing Defendants not to publish, distribute,

replicate or in any way infringe the copyrighted Software.

A S AN D FOR A THIR D CAUSE O F A C T IO N : A C C O U N TI N G

36. Plaintiff repleads and reallegeseach and every allegationof the foregoing paragraphs,as


37. As a result of Defendants' willful and knowing conduct, Defendantshave been unjustly

enriched by use of the copyrighted work of the Plaintiff without compensation to Plaintiff

therefor.

38. By reason of the foregoing, plaintiff is entitled to an Order pursuant to 17 U.S.C.A. § 504

foran accounting of profitsattributable to the infringement Plaintiffs copyrighted work. S N D F O R F O U R T H C U S E O F CTION B R E C H O F C O N T R C T

39. Plaintiff repeats, reiterates, and realleges each and every allegation contained in the

foregoing paragraphs as if fully restated herein.



40. Pursuantto the License agreement,Defendantswere requiredto compensatethe Plaintiff

for any use of the Software.

41. Pursuant to Article 4.3 of the License agreement,Defendantsagreed not to replicate or

reverse engineer the Software.

42. By copying the source code and screen displays whichconstitute Plaintiffs copyright

protected materials, Defendants havebreachedthe express terms of the License.

43. By reason of the foregoing, Plaintiff has been damaged in an amount to be determined,

but not less than TWO MILLION and 00/100 ( 2,000,000) Dollars, together with its

consequential damages, plus interest, attorneys fees, costs and the disbursements of this action.

S A N D F O R A F IF TH C A U SE O F A C T I O N :

Q U AN TU M M E R IU IT A N D UNJUST E N R I C H M E N T



45. Plaintiff performed valuable services at the request of Defendants, and the Defendants

benefitted thereby.

46. Defendantswere requiredto compensatethe Plaintiff for the requested servicesanduseof

the Software, b ut h av e n ot done so.

47. By reason of the foregoing,Plaintiff has been damaged in an amount to be determined,

but not less than TWO MILLION and 00/100 ( 2,000,000) Dollars, togetherwith itsconsequential damages, plus interest, attorneys fees, costs and the disbursements of this action.



S A N D F O R A S I X T H C A U S E O F A C T I O N :

B R E A C H O F G O O D FAI TH A N D FA I R D E A L I N G



49. Plaintiff performed valuable servicesand allowed use of its intellectual property at the

request of Defendants.

50. It was the understandingand expectationof the parties that if Plaintiff compliedwith the

Agreement, Plaintiff would be duly compensated.

51. Defendants failed to cooperate with Plaintiff in good faith.52. Defendantsacted in bad faith by failing to keep up payment on submitted invoices,by

secretly copying the source code of the Software, and by reverse engineering the Software to

create a mirror image program without payment to the Plaintiff.

53. By reason of the foregoing, Plaintiff has been damaged in an amount to be determined,

but not less than TWO MILLION and 00/100 ($2,000,000) Dollars, together with its

consequential damages, plus interest, attorneys fees, costs and the disbursements of this action.

W H E R E F O R E P l a i nt i f f d e m a n ds :

(1) That judgment be entered in favor of Plaintiff for such damages as Plaintiff has

sustained in consequence of Defendants' infringement of said copyright;

(2) That an order be entered compelling Defendantsto accountfor all gains, profitsand advantages derivedby each Defendantby its infringement of Plaintiffs copyrights, or such

damagesasto the Courtshall appearproper withintheprovisions of the CopyrightAct.



(3) That injunctivereliefbe grantedpreventingand restrainingfuture infringementof

Plaintiffs copyrightby Ordering Defendantsnot to use, publish, display, distribute, or in any

way replicate the copyrighted materials of Plaintiff.

(4) Plaintiffprays for an Orderpursuantto 17 U.S.C.A.§ 503 for the impoundingof

all materialsand electronic devicesused in the violation of Plaintiff copyright owner's exclusive

rights.

(5) That judgmentbe entered in favor of Plaintiff for such damages as Plainitff has

sustained in consequence of Defendants' breach of contract claims;

(6) That Plaintiffs be awarded the costs of this action and reasonableattorney's feesto be fixed by the Court; and

(7) That Plaintiffshave such other and furtherreliefasisjust and proper.

Dated: Ne w York, Ne w York

February 6, 2014

To: The City of New Yor k1 0 0 C h u r c h S t r ee t

New York, N e w Yor k 10007

The New York City Department ofE n v i ro n m e n ta l P r o te c t io n

New York, N ew Yor k 10007

By> DANIELQMAROTA (DM 2581)GABOR MAROTTA LLC1878/Victory BoulevardStaten Island, NY 10314Tel: (212) 349-1200



C O R P O R AT E V E R I F I C AT I O N

STATE OF NE W JERSEY)

COUNTY OF BERGEN )

DANIEL MOHAN, being duly sworn, deposes and says:

) ss.

That I am the President of the Plaintiff corporation, IDSi INTERNATIONAL INC. inthe action herein; I have read the within Complaint and know the contents thereof, and the sameis true to my knowledge, except as to those matters therein which are stated to be alleged oninformation and belief, and as to those matters, I believe them to be true based upon the books

and records of the defendant corporation.

Sw o rn t o b e fo re m e th is

u ] day of January, 2014

7 YOUNG HEE KSM

NOTARY PUBLIC

S TAT E O F N E W J E R S E YMYCOMMISSION EXPIRES AUGUST 3,2015

I.D. 2 3 2 9 7 6 9

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Documents

IDSi v. City of New York