`Case 2:17-cv-04263-JVS-JCG Document 25 Filed 08/11/17 Page 1 of 10 Page ID #:258
`
`Jacqueline K. S. Lee
`JONES DAY
`1755 Embarcadero Road
`Palo Alto, CA 94303
`Telephone: 650.739.3939
`Facsimile: 650.739.3900
`jkslee@jonesday.com
`
`Blaney Harper (pro hac vice)
`JONES DAY
`51 Louisiana Avenue, N.W.
`Washington, D.C. 20001-2113
`Telephone: 202.879.3939
`Facsimile: 202.626.1700
`bharper@jonesday.com
`Attorneys for Defendant Cree, Inc.
`IN THE UNITED STATES DISTRICT COURT
`FOR THE CENTRAL DISTRICT OF CALIFORNIA
`SOUTHERN DIVISION
`Case No. 2:17-cv-04263-JVS-JCG
`Document Security Systems, Inc.,
`DEFENDANT CREE, INC.’S
`Plaintiff,
`ANSWER TO FIRST
`AMENDED COMPLAINT FOR
`PATENT INFRINGEMENT
`DEMAND FOR JURY TRIAL
`
`v.
`Cree, Inc.,
`
`Defendant.
`
`Defendant Cree, Inc. (“Cree”), by and through its undersigned attorneys
`answers (by corresponding paragraphs) the First Amended Complaint For Patent
`Infringement (“the First Amended Complaint”) filed by Document Security
`Systems, Inc. (“DSS”) as follows:
`
`PARTIES
`Cree is without knowledge or information sufficient to form a belief
`1.
`as to the truth or falsity of the allegations in Paragraph 1 of the First Amended
`Complaint, and therefore denies the same.
`
`ANSWER TO FIRST AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
`
`
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`Case 2:17-cv-04263-JVS-JCG Document 25 Filed 08/11/17 Page 2 of 10 Page ID #:259
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`Cree is without knowledge or information sufficient to form a belief
`2.
`as to the truth or falsity of the allegations in Paragraph 2 of the First Amended
`Complaint, and therefore denies the same.
`Admitted.
`3.
`
`JURISDICTION AND VENUE
`
`Admitted.
`4.
`For the purposes of this present case only, Cree admits that this
`5.
`Court has personal jurisdiction over Cree. Cree denies the remaining allegations
`in Paragraph 5.
`Denied.
`6.
`
`BACKGROUND
`Cree admits that the face page of U.S. Patent No. 6,949,771 (“the
`7.
`’771 Patent”) identifies an issue date of September 27, 2005. Cree further
`admits that the face page of the ’771 Patent lists the title as “Light Source.” Cree
`admits that Exhibit A to the First Amended Complaint purports to be a copy of
`the ’771 Patent. Cree is without knowledge or information sufficient to form a
`belief regarding the remaining allegations of Paragraph 7 of the First Amended
`Complaint, and on that basis, denies these allegations.
`Cree admits that the face page of U.S. Patent No. 7,256,486 (“the
`8.
`’486 Patent”) identifies an issue date of August 14, 2007. Cree further admits
`that the face page of the ’486 Patent lists the title as “Packing Device for
`Semiconductor Die, Semiconductor Device Incorporating Same and Method of
`Making Same.” Cree admits that Exhibit B to the First Amended Complaint
`purports to be a copy of the ’486 Patent. Cree is without knowledge or
`information sufficient to form a belief regarding the remaining allegations of
`Paragraph 8 of the First Amended Complaint, and on that basis, denies these
`allegations.
`
`
`ANSWER TO FIRST AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
`
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`Case 2:17-cv-04263-JVS-JCG Document 25 Filed 08/11/17 Page 3 of 10 Page ID #:260
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`Cree admits that the face page of U.S. Patent No. 7,524,087 (“the
`9.
`’087 Patent”) identifies an issue date of April 28, 2009. Cree further admits that
`the face page of the ’087 Patent lists the title as “Optical Device.” Cree admits
`that Exhibit C to the First Amended Complaint purports to be a copy of the ’087
`Patent. Cree is without knowledge or information sufficient to form a belief
`regarding the remaining allegations of Paragraph 9 of the First Amended
`Complaint, and on that basis, denies these allegations.
`10. Cree admits that the face page of U.S. Patent No. 7,919,787 (“the
`’787 Patent”) identifies an issue date of April 5, 2011. Cree further admits that
`the face page of the ’787 Patent lists the title as “Semiconductor Device with a
`Light Emitting Semiconductor Die.” Cree admits that Exhibit D to the First
`Amended Complaint purports to be a copy of the ’787 Patent. Cree is without
`knowledge or information sufficient to form a belief regarding the remaining
`allegations of Paragraph 10 of the Complaint, and on that basis, denies these
`allegations.
`11. Denied.
`
`COUNT I
`INFRINGEMENT OF THE ’771 PATENT
`12. Cree repeats its denials and admissions regarding Paragraphs 1-11
`above as if fully set forth herein.
`13. Denied.
`14. Denied.
`15. Cree admits that CLM1 Series Color LED products are sold and
`offered for sale by Cree. Cree denies the remaining allegations in Paragraph 15.
`16. Denied.
`17. Denied.
`18. Denied.
`
`
`ANSWER TO FIRST AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
`
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`Case 2:17-cv-04263-JVS-JCG Document 25 Filed 08/11/17 Page 4 of 10 Page ID #:261
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`19. Denied.
`20. Cree admits that what purports to be a copy of the ’771 Patent was
`included as Exhibit A attached to the Complaint served on Cree. Cree denies the
`remaining allegations in Paragraph 20.
`21. Denied.
`22. Denied.
`23. Cree admits that the ’771 Patent was cited by the USPTO examiner
`during prosecution of U.S. Patent No. 8,860,943. Cree further admits that the
`’771 Patent was cited by Cree during prosecution of U.S. Patent Nos. 8,866,166;
`8,878,217; 9,111,778; and 9,123,874. Cree admits that what purports to be a
`copy of the ’771 Patent was included as Exhibit A attached to the Complaint
`served on Cree in case 2:17-cv-309. Cree denies the remaining allegations in
`Paragraph 23.
`24. Denied.
`
`COUNT II
`INFRINGEMENT OF THE ’486 PATENT
`25. Cree repeats its denials and admissions corresponding to Paragraphs
`1-24 above as if fully set forth herein.
`26. Denied.
`27. Denied.
`28. Cree admits that XLamp XB-D LED products are sold and offered
`for sale by Cree. Cree denies the remaining allegations in Paragraph 28.
`29. Denied.
`30. Denied.
`31. Denied.
`32. Denied.
`33. Denied.
`
`
`ANSWER TO FIRST AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
`
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`Case 2:17-cv-04263-JVS-JCG Document 25 Filed 08/11/17 Page 5 of 10 Page ID #:262
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`34. Cree admits that what purports to be a copy of the ’486 Patent was
`included as Exhibit B attached to Complaint served on Cree. Cree denies the
`remaining allegations in Paragraph 34.
`35. Denied.
`36. Denied.
`37. Cree admits that what purports to be a copy of the ’486 Patent was
`included as Exhibit B attached to the Complaint served on Cree in case 2:17-cv-
`309. Cree denies the remaining allegations in Paragraph 37.
`38. Denied.
`
`COUNT III
`INFRINGEMENT OF THE ’087 PATENT
`39. Cree repeats its denials and admissions corresponding to Paragraphs
`1-38 above as if fully set forth herein.
`40. Denied.
`41. Denied.
`42. Cree admits that XLamp ML-B LED products are sold and offered
`for sale by Cree. Cree denies the remaining allegations in Paragraph 42.
`43. Denied.
`44. Denied.
`45. Denied.
`46. Denied.
`47. Cree admits that what purports to be a copy of the ’087 Patent was
`included as Exhibit D attached to the Complaint served on Cree. Cree denies the
`remaining allegations in Paragraph 47.
`48. Denied.
`49. Denied.
`50. Denied.
`
`
`ANSWER TO FIRST AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
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`Case 2:17-cv-04263-JVS-JCG Document 25 Filed 08/11/17 Page 6 of 10 Page ID #:263
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`51. Cree admits that what purports to be a copy of the ’087 Patent was
`included as Exhibit D attached to the Complaint served on Cree in case 2:17-cv-
`309. Cree denies the remaining allegations in Paragraph 51.
`52. Denied.
`
`COUNT IV
`INFRINGEMENT OF THE ’787 PATENT
`53. Cree repeats its denials and admissions corresponding to Paragraphs
`1-52 above as if fully set forth herein.
`54. Denied.
`55. Denied.
`56. Cree admits that XLamp XB-D LED products are sold and offered
`for sale by Cree. Cree denies the remaining allegations in Paragraph 56.
`57. Denied.
`58. Denied.
`59. Denied.
`60. Denied.
`61. Denied.
`62. Denied.
`63. Cree admits that what purports to be a copy of the ’787 Patent was
`included as Exhibit E attached to the Complaint served on Cree. Cree denies the
`remaining allegations in Paragraph 63.
`64. Denied.
`65. Denied.
`66. Cree admits that what purports to be a copy of the ’787 Patent was
`included as Exhibit E attached to the Complaint served on Cree in case 2:17-cv-
`309. Cree denies the remaining allegations in Paragraph 66.
`67. Denied.
`
`
`ANSWER TO FIRST AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
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`Case 2:17-cv-04263-JVS-JCG Document 25 Filed 08/11/17 Page 7 of 10 Page ID #:264
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`PRAYER FOR RELIEF
`Cree denies that Plaintiff is entitled to any relief requested in the First
`Amended Complaint.
`For its Affirmative Defenses, Cree asserts as follows:
`AFFIRMATIVE DEFENSES
`Further answering Plaintiff’s First Amended Complaint, Cree asserts the
`following defenses without admitting any of the allegations of the First
`Amended Complaint not otherwise expressly admitted. Cree expressly reserves
`the right to amend its Affirmative Defenses or allege additional Affirmative
`Defenses.
`
`I. FIRST AFFIRMATIVE DEFENSE
`(LACK OF STANDING)
`DSS does not own all right, title, and interest to the asserted patents and
`therefore lacks standing to assert these patents against Cree.
`II. SECOND AFFIRMATIVE DEFENSE
`(FAILURE TO STATE A CLAIM)
`The First Amended Complaint fails to state a claim upon which relief can
`be granted.
`
`III. THIRD AFFIRMATIVE DEFENSE
`(NON-INFRINGEMENT)
`Cree has not infringed, and is not infringing, neither directly nor
`indirectly, the asserted patents.
`IV. FOURTH AFFIRMATIVE DEFENSE
`(INVALIDITY)
`Some or all of the claims of the patents in suit are invalid under one or
`more provisions of Title 35 of the United States Code, including at least 35
`U.S.C. §§101, 102, 103, and/or 112.
`
`
`ANSWER TO FIRST AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
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`Case 2:17-cv-04263-JVS-JCG Document 25 Filed 08/11/17 Page 8 of 10 Page ID #:265
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`V. FIFTH AFFIRMATIVE DEFENSE
`(35 U.S.C. § 287)
`To the extent that DSS, licensees of the asserted patents, and/or any
`alleged predecessors-in-interest in the asserted patents failed to comply with 35
`U.S.C. § 287, including by failing to properly mark relevant products or
`otherwise give proper notice, Cree is not liable to DSS for the acts alleged to
`have been performed before Cree received actual notice that it was allegedly
`infringing the patents in suit.
`VI. SIXTH AFFIRMATIVE DEFENSE
`(LIMITATION OF DAMAGES)
`DSS’s claims for damages are limited and/or barred by 35 U.S.C. § 286 to
`the extent that any recovery is sought for any alleged infringement committed
`more than six years prior to the filing of the First Amended Complaint.
`VII. SEVENTH AFFIRMATIVE DEFENSE
`(ADEQUATE REMEDY AT LAW)
`DSS is not entitled to injunctive relief because (1) DSS is not likely to
`prevail on the merits; (2) DSS has not suffered nor will it suffer irreparable harm
`because of Cree’s conduct; (3) and harm to DSS would be outweighed by the
`hard to Cree if any injunction were entered; (4) DSS has an adequate remedy at
`law even if it were to prevail in this action; and (5) public interest would not be
`served by an injunction.
`VIII. EIGHTH AFFIRMATIVE DEFENSE
`(RESERVATION OF RIGHTS)
`As Cree’s investigation is ongoing and discovery has not yet been taken.
`Cree is without sufficient information regarding the existence or non-existence
`of other facts or acts which may constitute a defense to DSS’s claims. Cree
`
`
`ANSWER TO FIRST AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
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`Case 2:17-cv-04263-JVS-JCG Document 25 Filed 08/11/17 Page 9 of 10 Page ID #:266
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`therefore reserves any and all rights to amend and/or add to Cree’s answer and/or
`affirmative defenses, as additional or other bases become apparent.
`PRAYER FOR RELIEF
`WHEREFORE, Cree respectfully requests that this Court:
`A.
`Enter judgment in Cree’s favor on DSS’s claims;
`B. Dismiss DSS’s claims with prejudice;
`C. Deny any and all of DSS’s prayers for relief;
`D. Award Cree its costs and expenses, including attorneys’ fees,
`incurred in this action;
`E.
`Declare this action an exceptional case under 35 U.S.C. § 285 and
`enter a judgment awarding Cree its costs and attorneys’ fees; and
`F.
`Grant such other and further relief as this Court deems just and
`proper.
`RESPECTFULLY SUBMITTED this 11th of August, 2017.
`JONES DAY
`By: /s/ Jacqueline K. S. Lee
`Jacqueline K. S. Lee
`1755 Embarcadero Road
`Palo Alto, CA 94303
`
`Blaney Harper
`51 Louisiana Avenue, N.W.
`Washington, DC 2001-2113
`Attorneys for Defendant Cree, Inc.
`
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`ANSWER TO FIRST AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
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`Case 2:17-cv-04263-JVS-JCG Document 25 Filed 08/11/17 Page 10 of 10 Page ID #:267
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`
`
`DEMAND FOR JURY TRIAL
`Pursuant to Fed. R. Civ. P. 38(b), Defendant Cree hereby demands a jury
`trial on all issues so triable in this action.
`RESPECTFULLY SUBMITTED this 11th of August, 2017.
`JONES DAY
`By: /s/ Jacqueline K. S. Lee
`Jacqueline K. S. Lee
`1755 Embarcadero Road
`Palo Alto, CA 94303
`
`Blaney Harper
`51 Louisiana Avenue, N.W.
`Washington, DC 2001-2113
`Attorneys for Defendant Cree, Inc.
`
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`FOR PATENT INFRINGEMENT
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