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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE POWER INTEGRATIONS, INC., Plaintiff,
V.

C.A. No. 07-633 JJF-LPS

BCD SEMICONDUCTOR CORP, et al., Defendants.

REDACTED

PLAINTIFF POWER INTEGRATIONS, INC.'S UNOPPOSED MOTION TO AMEND ITS FIRST AMENDED COMPLAINT FISH & RICHARDSON P.C. William J. Marsden, Jr. (#2247) Kyle Wagner Compton (#4693) 919 N. Market Street, Suite 1100 P.O. Box 1114 Wilmington, DE 19801 Telephone: (302) 652-5070 [email protected] kcompton @fr.com
Frank E . Scherkenbach FISH & RICHARDSON P.C. 225 Franklin Street

Boston, MA 02110-2804 Telephone : (617) 542-5070
Howard G. Pollack Michael R. Headley Scott A. Penner

FISH & RICHARDSON P.C. 500 Arguello Street, Suite 500 Redwood City, CA 94063 Telephone: (650) 839-5070
ATTORNEYS FOR PLAINTIFF POWER INTEGRATIONS, INC.

Dated: April 28, 2008

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TABLE OF CONTENTS PAGE INTRODUCTION .................................................................................................................1 I. II. III. IV. V. NATURE AND STAGE OF PROCEEDING ...........................................................1 SUMMARY OF ARGUMENT .................................................................................1 STATEMENT OF FACTS ........................................................................................2 ARGUMENT ............................................................................................................. 3 CONCLUSION ..........................................................................................................3

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TABLE OF AUTHORITIES CASES
Arthur v. Maersk, Inc.,

PAGE

434 F.3d 196, 202 (3d Cir. 2006) ...............................................................................3

STATUTES Fed. R. Civ. P . 15(a)(1 )(A) ....................................................................................................1 Fed. R. Civ. P . 15(a)(2) .........................................................................................................1 D.Del. LR 15 ......................................................................................................................... 1

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INTRODUCTION Plaintiff Power Integrations, Inc. ("Power Integrations") seeks leave to amend its First Amended Complaint against BCD Semiconductor Corp. and Shanghai SIM-BCD Semiconductor Manufacturing Co., Ltd. (collectively, "BCD") to add claims for willful infringement.' Counsel for Power Integrations have conferred with counsel for BCD, and have been informed that BCD does not oppose this Motion. This Motion is being filed on or before the deadline of April 28, 2008 set by Paragraph 3 of the Rule 16 Scheduling Order for motions to amend the pleadings.

1.

NATURE AND STAGE OF PROCEEDING
Power Integrations filed its original complaint in this Court on October 15, 2007. (D.I. 1.)

BCD moved to dismiss that complaint on January 21, 2008 (D.I. 10), and Power Integrations moved for preliminary injunctive relief on January 25, 2008 (D.I. 12.) Both motions remain pending. Power Integrations filed its First Amended Complaint for Patent Infringement as a matter of course pursuant to Fed. R. Civ. P. 15(a)(1)(A) on March 13, 2008. (D.I. 50.) Paragraph 3 of the Rule 16 Scheduling Order entered in this case sets April 28, 2008 as the date on or before which the parties must move to amend pleadings. (D.I. 44.) Power Integrations now moves the Court pursuant to Fed. R. Civ. P. 15(a)(2) and D. Del. LR 15.1 for leave to amend its First Amended Complaint for Patent Infringement to add claims for willful infringement.

II.

SUMMARY OF ARGUMENT
Leave of Court to amend pleadings is typically granted where justice so requires. Power

Integrations seeks to amend its First Amended Complaint for Patent Infringement to include claims for willful infringement that could not, in good faith, have been asserted earlier. Power

Clean and blacklined versions of the Second Amended Complaint for Patent Infringement are attached as Exhibits 1 and 2 hereto.

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REDACTED
Integrations only recently learned of factual matters underlying those claims through discovery. Power Integrations has filed this Motion, which BCD does not oppose, within the period prescribed in the scheduling order, and justice requires that Power Integrations be permitted to assert claims for which it has a legal basis.

III.

STATEMENT OF FACTS
Power Integrations sued BCD for patent infringement, accusing a number of BCD

devices of infringing Power Integrations' patents. On March 13, 2008, Power Integrations amended its complaint to remove its claim for infringement of one of the originally asserted patents. Pursuant to the Court's scheduling order, written and document discovery in this case is now under way. Through discovery, Power Integrations' counsel learned the following facts supporting a good faith claim that BCD's infringement of the asserted patents was willful:

1.

2.

Fairchild Semiconductor, which Power Integrations previously sued for

infringement of the same patents asserted against BCD in this action, was found to infringe following a public trial on the merits; 3. BCD made the objectively baseless decision

and

2

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4.

BCD had counsel attend the trial where the Jury rejected Fairchild's validity

defenses for the two patents at issue in this case, yet it continued to sell its infringing products thereafter. Prior to discovery, Power Integrations could not, in good-faith, have asserted claims for willful infringement when it filed its initial complaint or when it first amended its complaint. The facts enumerated above provide Power Integrations with a good-faith basis for asserting that BCD's infringement was willful at this time.2

IV.

ARGUMENT
Federal Rule of Civil Procedure 15 "embodies a liberal approach to pleading," and "leave

of court [to amend]. . . `shall be freely given when justice so requires."' Arthur v. Maersk, Inc., 434 F.3d 196, 202 (3d Cir. 2006) (quoting FED. R. Crv. P. 15(a)). The Court should allow Power Integrations to amend its complaint to assert claims for willful patent infringement because (1) Power Integrations only recently discovered evidence sufficient to support a factual basis for those claims under prevailing legal authority, (2) Power Integrations has moved to amend within the period prescribed in the scheduling order, (3) justice so requires, and (4) BCD does not oppose this motion.

V.

CONCLUSION
For the reasons set forth above, Power Integrations respectfully requests that the Court

permit Power Integrations to amend its complaint to add claims for willful infringement of the patents-in-suit.

2

While BCD has indicated it does not oppose this motion for leave to amend, counsel for BCD has indicated its position that it believes Power Integrations' willfulness claim will ultimately be determined to be without merit.

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Dated: April 28, 2008

FISH & RICHARDSON P.C.

By: Kyle Wagner Compton

William J. Marsden, Jr. (#2247) Kyle Wagner Compton (#4693) 919 N. Market Street, Suite 1100 P.O. Box 1114
Wilmington, DE 19801 Telephone: (302) 652-5070 Email : [email protected] Email : [email protected]

Frank E. Scherkenbach FISH & RICHARDSON P.C. 225 Franklin Street Boston , MA 02110-2804 Telephone: (617) 542-5070
Howard G. Pollack Michael R. Headley Scott A. Penner

FISH & RICHARDSON P.C. 500 Arguello Street, Suite 500 Redwood City, CA 94063 Telephone: (650) 839-5070
ATTORNEYS FOR PLAINTIFF POWER INTEGRATIONS, INC.
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CERTIFICATION PURSUANT TO LOCAL RULE OF CIVIL PROCEDURE 7.1.1
Pursuant to Local Rules of Civil Procedure 7.1.1, counsel for Power Integrations certifies that it has in good faith conferred with counsel for BCD, and counsel for BCD does not oppose Power Integrations' Motion to Amend its First Amended Complaint.

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CERTIFICATE OF SERVICE
I hereby certify that on April 28, 2008, I hereby served PLAINTIFF POWER INTEGRATIONS, INC.'S UNOPPOSED MOTION TO AMEND ITS FIRST AMENDED COMPLAINT on the following counsel of record at the address and in the manner indicated below.

BY HAND John G. Day, Esq. Steven J. Balick, Esq. Tiffany Geyer Lydon Ashby & Geddes
500 Delaware Avenue, 8th Floor Wilmington, DE 19899

BY EMAIL AND FEDERAL EXPRESS Erik R. Puknys, Esq.
Finnegan , Henderson , Farabow, Garrett & Dunner LLP Stanford Research Park 3300 Hillview Avenue Palo Alto, CA 94304-1203 BY EMAIL AND FEDERAL EXPRESS E. Robert Yoches, Esq. Finnegan, Henderson, Farabow, Garrett & Dunner LLP

BY EMAIL AND FEDERAL EXPRESS Robert L. Burns, Esq.
Finnegan, Henderson, Farabow, Garrett & Dunner LLP Two Freedom Square 11955 Freedom Drive Reston, VA 20190-5675

901 New York Avenue, NW Washington, DC 20001-4413

Is/ Kyle Wagner Compton Kyle Wagner Compton
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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE POWER INTEGRATIONS, INC., a Delaware corporation, Plaintiff, v. C.A. No. 07-633 JJF-LPS

BCD SEMICONDUCTOR CORPORATION, a JURY TRIAL REQUESTED California corporation, and SHANGHAI SIMBCD SEMICONDUCTOR MANUFACTURING CO., LTD., a China corporation, Defendants.

SECOND AMENDED COMPLAINT FOR PATENT INFRINGEMENT Plaintiff Power Integrations, Inc. hereby alleges as follows:

THE PARTIES 1. Power Integrations, Inc. ("Power Integrations") is incorporated under the

laws of the state of Delaware, and has a regular and established place of business at 5245 Hellyer Avenue, San Jose, California, 95138. 2. Upon information and belief, defendant BCD Semiconductor Corporation

is incorporated under the laws of the state of California, and has a regular and established place of business at 30920 Huntswood Avenue, Suite D, Hayward, California, 94544. 3. Upon information and belief, defendant Shanghai SIM-BCD

Semiconductor Manufacturing Co., Ltd. is incorporated under the laws of the People's Republic of China, with its headquarters located at 800 Yishan Road, Shanghai 200233, China. 4. Defendant BCD Semiconductor Corporation and defendant Shanghai

SIM-BCD Semiconductor Manufacturing Co., Ltd. will hereinafter be collectively referred to as the "Defendants." 1

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JURISDICTION AND VENUE 5. This action arises under the patent laws of the United States, Title 35

U.S.C. § 1 et seq. This Court has subject matter jurisdiction under 28 U.S.C. §§ 1331 and 1338(a). 6. Upon information and belief, this Court has personal jurisdiction over

Defendants because Defendants have purposely availed themselves of the privilege of conducting activities within this State and District. 7. Upon information and belief, venue is proper in this Court pursuant to 28

U.S.C. §§ 1391(b), 1391(c), and 1400 because Defendants are subject to personal jurisdiction in this judicial District. GENERAL ALLEGATIONS 8. Power Integrations' products include its TOPSwitch®, TinySwitch®,

LinkSwitch®, and DPA-Switch® families of power conversion integrated circuit devices which are used in power supplies for electronic devices such as cellular telephones, LCD monitors, and computers. These products are sold throughout the United States, including Delaware. 9. Upon information and belief, Defendants manufacture pulse width

modulation (" PWM" ) controller integrated circuits devices (e.g., devices intended for use in power conversion applications such as off-line power supplies or battery chargers for portable electronics), and directly and through their affiliates, import, sell, and offer to sell the same throughout the United States, including Delaware. FIRST CAUSE OF ACTION INFRINGEMENT OF U.S. PATENT NO. 6,107,851 10. forth herein. 11. Power Integrations is now, and has been since its issuance, the assignee The allegations of paragraphs 1-9 are incorporated as though fully set

and sole owner of all right, title, and interest in United States Patent No. 6,107,851, 2

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entitled " Offline Converter with Integrated Softstart and Frequency Jitter" (" the '851 patent" ), which was duly and legally issued on August 22, 2000. A true and correct copy of the '851 patent is attached hereto as Exhibit A. 12. Upon information and belief, Defendants have been and are now

infringing, inducing infringement, and contributing to the infringement of the '851 patent in this District and elsewhere by making, using, selling, offering to sell, and/or importing devices, including PWM integrated circuit devices, covered by one or more claims of the '851 patent, and/or contributing to or inducing the same by third-parties, all to the injury of Power Integrations. 13. Integrations. 14. Defendants' infringement has caused irreparable injury to Power Defendants' acts of infringement have injured and damaged Power

Integrations and will continue to cause irreparable injury until Defendants are enjoined from further infringement by this Court. 15. Upon information and belief, Defendants' infringement has been, and

continues to be, willful so as to warrant the enhancement of damages awarded as a result of their infringement. SECOND CAUSE OF ACTION INFRINGEMENT OF U.S. PATENT NO. 6,249,876 16. forth herein. 17. Power Integrations is now, and has been since its issuance, the assignee The allegations of paragraphs 1-9 are incorporated as though fully set

and sole owner of all right, title, and interest in United States Patent No. 6,249,876, entitled " Frequency Jittering Control for Varying the Switching Frequency of a Power Supply" (" the '876 patent" ), which was duly and legally issued on June 19, 2001. A true and correct copy of the '876 patent is attached hereto as Exhibit B.

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18.

Upon information and belief, Defendants have been and are now

infringing, inducing infringement, and contributing to the infringement of the ' 876 patent in this District and elsewhere by making, using, selling, offering to sell, and/or importing devices, including PWM integrated circuit devices, covered by one or more claims of the ' 876 patent, and/or contributing to or inducing the same by third-parties, all to the injury of Power Integrations. 19. Integrations. 20. Defendants' infringement has caused irreparable injury to Power Defendants' acts of infringement have injured and damaged Power

Integrations and will continue to cause irreparable injury until Defendants are enjoined from further infringement by this Court. 21. Upon information and belief, Defendants' infringement has been, and

continues to be, willful so as to warrant the enhancement of damages awarded as a result of their infringement.

PRAYER FOR RELIEF WHEREFORE, Plaintiff requests the following relief: (a) (b) (c) judgment against Defendants as to infringement of the ' 851 patent; judgment against Defendants as to infringement of the ' 876 patent; a permanent injunction preventing Defendants and their officers, directors,

agents, servants, employees, attorneys, licensees, successors, assigns, and customers, and those in active concert or participation with any of them, from making, using, importing, offering to sell or selling any devices that infringe any claim of the ' 851 or ' 876 patents; (d) judgment against Defendants for money damages sustained as a result of

Defendants' infringement of the ' 851 and ' 876 patents in an amount to be determined at trial;

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(e)

that any such money judgment be trebled as a result of the willful nature

of Defendants' infringement; (f) an accounting for infringing sales not presented at trial and an award by

the court of additional damages for any such infringing sales; (g) costs and reasonable attorneys' fees incurred in connection with this action

pursuant to 35 U.S.C § 285; and (h) such other and further relief as this Court finds just and proper. JURY DEMAND Plaintiff requests trial by jury.

Dated: April 28, 2008

FISH & RICHARDSON P.C.

By: /s/ William J. Marsden, Jr. William J. Marsden, Jr. (#2247) Kyle Wagner Compton (#4693) 919 N. Market Street, Suite 1100 P.O. Box 1114 Wilmington, DE 19801 Telephone: (302) 652-5070 Facsimile: (302) 652-0607 [email protected] Frank E. Scherkenbach 225 Franklin Street Boston, MA 02110-2804 Telephone: (617) 542-5070 Facsimile: (617) 542-8906 Howard G. Pollack Michael R. Headley 500 Arguello Street, Suite 500 Redwood City, CA 94063 Telephone: (650) 839-5070 Facsimile: (650) 839-5071 Attorneys for Plaintiff POWER INTEGRATIONS, INC. 5

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Exhibit A

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Exhibit B

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE POWER INTEGRATIONS, INC., a Delaware corporation, Plaintiff, v. C.A. No. 07-633 JJF-LPS

BCD SEMICONDUCTOR CORPORATION, a JURY TRIAL REQUESTED California corporation, and SHANGHAI SIMBCD SEMICONDUCTOR MANUFACTURING CO., LTD., a China corporation, Defendants.

FIRSTSECOND AMENDED COMPLAINT FOR PATENT INFRINGEMENT Plaintiff Power Integrations, Inc. hereby alleges as follows:

THE PARTIES 1. Power Integrations, Inc. ("Power Integrations") is incorporated under the

laws of the state of Delaware, and has a regular and established place of business at 5245 Hellyer Avenue, San Jose, California, 95138. 2. Upon information and belief, defendant BCD Semiconductor Corporation

is incorporated under the laws of the state of California, and has a regular and established place of business at 30920 Huntswood Avenue, Suite D, Hayward, California, 94544. 3. Upon information and belief, defendant Shanghai SIM-BCD

Semiconductor Manufacturing Co., Ltd. is incorporated under the laws of the People's Republic of China, with its headquarters located at 800 Yishan Road, Shanghai 200233, China. 4. Defendant BCD Semiconductor Corporation and defendant Shanghai

SIM-BCD Semiconductor Manufacturing Co., Ltd. will hereinafter be collectively referred to as the "Defendants." 1

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JURISDICTION AND VENUE 5. This action arises under the patent laws of the United States, Title 35

U.S.C. § 1 et seq. This Court has subject matter jurisdiction under 28 U.S.C. §§ 1331 and 1338(a). 6. Upon information and belief, this Court has personal jurisdiction over

Defendants because Defendants have purposely availed themselves of the privilege of conducting activities within this State and District. 7. Upon information and belief, venue is proper in this Court pursuant to 28

U.S.C. §§ 1391(b), 1391(c), and 1400 because Defendants are subject to personal jurisdiction in this judicial District. GENERAL ALLEGATIONS 8. Power Integrations' products include its TOPSwitch®, TinySwitch®,

LinkSwitch®, and DPA-Switch® families of power conversion integrated circuit devices which are used in power supplies for electronic devices such as cellular telephones, LCD monitors, and computers. These products are sold throughout the United States, including Delaware. 9. Upon information and belief, Defendants manufacture pulse width

modulation (" PWM" ) controller integrated circuits devices (e.g., devices intended for use in power conversion applications such as off-line power supplies or battery chargers for portable electronics), and directly and through their affiliates, import, sell, and offer to sell the same throughout the United States, including Delaware. FIRST CAUSE OF ACTION INFRINGEMENT OF U.S. PATENT NO. 6,107,851 10. forth herein. 11. Power Integrations is now, and has been since its issuance, the assignee The allegations of paragraphs 1-9 are incorporated as though fully set

and sole owner of all right, title, and interest in United States Patent No. 6,107,851, 2

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entitled " Offline Converter with Integrated Softstart and Frequency Jitter" (" the '851 patent" ), which was duly and legally issued on August 22, 2000. A true and correct copy of the '851 patent is attached hereto as Exhibit A. 12. Upon information and belief, Defendants have been and are now

infringing, inducing infringement, and contributing to the infringement of the '851 patent in this District and elsewhere by making, using, selling, offering to sell, and/or importing devices, including PWM integrated circuit devices, covered by one or more claims of the '851 patent, and/or contributing to or inducing the same by third-parties, all to the injury of Power Integrations. 13. Integrations. 14. Defendants' infringement has caused irreparable injury to Power Defendants' acts of infringement have injured and damaged Power

Integrations and will continue to cause irreparable injury until Defendants are enjoined from further infringement by this Court. 15. Upon information and belief, Defendants' infringement has been, and

continues to be, willful so as to warrant the enhancement of damages awarded as a result of their infringement. SECOND CAUSE OF ACTION INFRINGEMENT OF U.S. PATENT NO. 6,249,876 15.16. The allegations of paragraphs 1-9 are incorporated as though fully set forth herein. 16.17. Power Integrations is now, and has been since its issuance, the assignee and sole owner of all right, title, and interest in United States Patent No. 6,249,876, entitled " Frequency Jittering Control for Varying the Switching Frequency of a Power Supply" (" the '876 patent" ), which was duly and legally issued on June 19, 2001. A true and correct copy of the '876 patent is attached hereto as Exhibit B.

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17.18. Upon information and belief, Defendants have been and are now infringing, inducing infringement, and contributing to the infringement of the ' 876 patent in this District and elsewhere by making, using, selling, offering to sell, and/or importing devices, including PWM integrated circuit devices, covered by one or more claims of the ' 876 patent, and/or contributing to or inducing the same by third-parties, all to the injury of Power Integrations. 18.19. Defendants' acts of infringement have injured and damaged Power Integrations. 19.20. Defendants' infringement has caused irreparable injury to Power Integrations and will continue to cause irreparable injury until Defendants are enjoined from further infringement by this Court. 21. Upon information and belief, Defendants' infringement has been, and

continues to be, willful so as to warrant the enhancement of damages awarded as a result of their infringement.

PRAYER FOR RELIEF WHEREFORE, Plaintiff requests the following relief: (a) (b) (c) judgment against Defendants as to infringement of the ' 851 patent; judgment against Defendants as to infringement of the ' 876 patent; a permanent injunction preventing Defendants and their officers, directors,

agents, servants, employees, attorneys, licensees, successors, assigns, and customers, and those in active concert or participation with any of them, from making, using, importing, offering to sell or selling any devices that infringe any claim of the ' 851 or ' 876 patents; (d) judgment against Defendants for money damages sustained as a result of

Defendants' infringement of the ' 851 and ' 876 patents in an amount to be determined at trial;

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(e)

that any such money judgment be trebled as a result of the willful nature

of Defendants' infringement; (f) an accounting for infringing sales not presented at trial and an award by

the court of additional damages for any such infringing sales; (fg) costs and reasonable attorneys' fees incurred in connection with this action

pursuant to 35 U.S.C § 285; and (gh) such other and further relief as this Court finds just and proper. JURY DEMAND Plaintiff requests trial by jury.

Dated: March 13April 28, 2008

FISH & RICHARDSON P.C.

By:

William J. Marsden, Jr. (#2247) Kyle Wagner Compton (#4693) 919 N. Market Street, Suite 1100 P.O. Box 1114 Wilmington, DE 19801 Telephone: (302) 652-5070 Facsimile: (302) 652-0607 [email protected] Frank E. Scherkenbach 225 Franklin Street Boston, MA 02110-2804 Telephone: (617) 542-5070 Facsimile: (617) 542-8906 Howard G. Pollack Michael R. Headley 500 Arguello Street, Suite 500 Redwood City, CA 94063 Telephone: (650) 839-5070 Facsimile: (650) 839-5071

Attorneys for Plaintiff POWER INTEGRATIONS, INC. 5