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`Stephen R. Dartt
`California State Bar No. 247552
`WILLIAMS SIMONS & LANDIS PLLC
`The Littlefield Building
`601 Congress Ave., Suite 600
`Austin, TX 78701
`Tel: (512) 543-1538
`sdartt@wsltrial.com
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`Eric Carr
`California State Bar No. 333128
`WILLIAMS SIMONS & LANDIS PLLC
`3535 Jewell Street
`San Diego, CA 92109
`Tel: (512) 543-1359
`ecarr@wsltrial.com
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`Attorneys for Estech Systems IP, LLC
`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE NORTHERN DISTRICT OF CALIFORNIA
`SAN FRANCISCO DIVISION
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`Plaintiff,
`
`
`ESTECH SYSTEMS IP, LLC,
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`v.
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`DIALPAD, INC.,
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`Defendant.
`
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`CASE NO. 3:24-cv-02524
`
`
`COMPLAINT
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`DEMAND FOR JURY TRIAL
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`Plaintiff Estech Systems IP, LLC (“Estech”) files this original complaint against Dialpad,
`Inc. (“Dialpad”) alleging, based on its own knowledge as to itself and its own actions, and based
`on information and belief as to all other matters, as follows:
`PARTIES
`1.
`Estech Systems IP, LLC is a Texas corporation, with its principal place of business
`at 3701 East Plano Parkway, Suite 300, Plano, Texas 75074.
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`Plaintiff Estech Systems IP, LLC’s Complaint
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`2.
`Defendant Dialpad, Inc. is a corporation organized and existing under the laws of
`the state of Delaware, with its principal place of business at 2700 Camino Ramon, San Ramon,
`CA 94583.
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`JURISDICTION AND VENUE
`3.
`This is an action for infringement of United States patents arising under 35 U.S.C.
`§§ 271, 281, and 284–85, among others. This Court has subject matter jurisdiction of the action
`under 28 U.S.C. § 1331 and § 1338(a).
`4.
`Venue is proper in this district pursuant to 28 U.S.C. §§ 1400(b) and 1391(b-c), for
`at least the reason that Dialpad is has its principal place of business in the Northern District of
`California.
`5.
`Defendant Dialpad, Inc. is subject to this Court’s specific and general personal
`jurisdiction due at least to Dialpad’s substantial business in this forum, including (i) at least a
`portion of the infringements alleged herein; (ii) maintaining a regular and established place of
`business in the district; and/or (iii) regularly doing or soliciting business, engaging in other
`persistent courses of conduct, and/or deriving substantial revenue from goods and services
`provided to individuals in California and in this district.
`6.
`Specifically, Dialpad intends to and does business in California, directly or through
`intermediaries and offer their products and/or services, including those accused herein of
`infringement, to customers and potential customers located in California, including in the Northern
`District of California.
`7.
`Dialpad maintains at least one regular and established place of business in this
`district, including at 2700 Camino Ramon, San Ramon, CA 94583.
`THE TECHNOLOGY
`8.
`Estech is an affiliate of Estech Systems, Inc. (“ESI”) which for more than 30 years
`has been a leading U.S.-based provider of end-to-end business phone solutions. ESI’s Network
`Operations Center is located in Plano, Texas.
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`9.
`Since 1987, ESI has sold more than 400,000 solutions to its customers, working
`with more than 1,500 certified partners nationwide. Its customers include small and large
`businesses across the country.
`10.
`Recognizing that business doesn’t get done without communication, ESI provides
`powerful products that are easy and simple to use. ESI’s products are engineered to make
`intelligent technology that is intuitive and user-friendly, empowers employee productivity, and
`fuels customer satisfaction.
`11.
`ESI’s technology is American-engineered. From its Plano, Texas headquarters,
`ESI provides a full solutions portfolio of modern business phone systems, including Cloud,
`Hybrid, Pure IP, and SIP dial tone products. Given ESI’s end-to-end product offerings, its
`customers are empowered to choose the product features they need and want.
`12.
`ESI’s products include the most integrated cloud PBX in the market—the award-
`winning ESI Cloud PBX; Voice over IP (VoIP) products and systems; and on-premises products.
`A cloud-based PBX is a sophisticated telephone exchange system that uses a cloud infrastructure
`to provide communication services, such as telephony services.
`13.
`VoIP transmits and receives voice communications over data networks, such as the
`Internet or private networks, using the Internet Protocol (IP).
`14.
`VoIP systems offer several advantages over traditional phone systems including,
`but not limited to, lower cost and more efficient network management.
`15.
`VoIP systems also enable integration of additional communication services.
`16.
`ESI cloud-based VoIP products have handled billions of call minutes.
`17.
`ESI also provides U.S.-based, best-in-class technical support for its customers.
`18.
`The patents-in-suit, U.S. Patent Nos. 8,391,298 (the “’298 Patent”), 7,068,684 (the
`“’684 Patent”), and 7,123,699 (the “’699 Patent”) (collectively, the “Estech Asserted Patents”),
`are generally directed to systems and methods for providing robust, feature-rich communications
`systems including, but not limited to, VoIP telephony and additional communication services that
`can be integrated with a VoIP telephony system.
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`Plaintiff Estech Systems IP, LLC’s Complaint
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`19.
`The Estech Asserted Patents have been widely licensed in relevant industries,
`including 21 different license agreements consummated to date, including with Cisco Systems,
`Microsoft, Mitel, and Avaya.
`20.
`Products and services of or provided by Cisco, Microsoft, Avaya, Mitel,
`RingCentral, 3CX, or their Affiliates, including any portions thereof, alone or in combination with
`one or more other products, services, processes, or other items, are not alleged to satisfy, in whole
`or in part, any element or a step of any claim in the Estech Asserted Patents.
`THE ACCUSED INSTRUMENTALITIES
`21.
`On information and belief, Dialpad has and continues to at least design, make,
`manufacture, sell, or offer to sell communication equipment and services and system-design
`services, including but not limited to, for example, Dialpad telephony devices (e.g., Polycom
`VVX250, Polycom VVX350, Polycom VVX450, Yealink SIP-T33G, Yealink SIP-T43U, Yealink
`SIP-T46U, Yealink SIP-T46U, Yealink SIP-T48U, Yealink SIP-T54W, Yealink SIP-T57W,
`Polycom x50 Series (OBi Edition), OBi 300+), Dialpad software telephony products (e.g., Dialpad
`for Windows, Dialpad for iOS, Dialpad for Android, Dialpad Progressive Web App, Dialpad
`Chrome Extension), Dialpad VoIP telephony servers and services (e.g., Dialpad AI Voice), and
`products and services that incorporate the same or similar technology, that employ VoIP to perform
`various functions including, but not limited to, voice calling, voicemail, directory services, quality
`of service, and others using multiple components including, but not limited to, for example, hubs,
`switches, routers, session border controllers, servers and the like, and the software for operating
`such components (“Dialpad Products and Services”).
`22.
`Upon information and belief, Dialpad designs telecommunication and information
`handling systems for its customers by incorporating the Dialpad Products and Services into their
`customers’ existing network infrastructure.
`23.
`Upon information and belief, the telecommunication and information handling
`systems made for, sold and/or offered for sale to customers by Dialpad and the telecommunication
`and information handling systems used by Dialpad employees provide at least one or more of the
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`Plaintiff Estech Systems IP, LLC’s Complaint
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`Case 3:24-cv-02524-SK Document 2 Filed 04/26/24 Page 5 of 14
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`following functionalities: (i) the ability to make VoIP-based voice calls using its VoIP telephony
`devices; (ii) the ability to store voice mail messages; (iii) the ability to allow access to the voice
`mail messages using VoIP telephony devices; and (iv) the ability to provide directory services,
`which include, but are not limited to, for example, providing directory information to a user or
`VoIP telephony device, including, but not limited to, for example, providing a list of
`telecommunications extensions through VoIP telephony devices.
`24.
`When this Complaint references “Accused Instrumentalities,” it is referring to the
`telecommunications and information handling systems Dialpad offers to sell, sells, and makes for
`its customers as well as the systems its employees use that are referenced in paragraphs 21-23
`above and are incorporated herein by reference.
`COUNT I
`INFRINGEMENT OF U.S. PATENT NO. 8,391,298
`25.
`Estech repeats and re-alleges the allegations in paragraphs 1-24 as though fully set
`forth in their entirety.
`26.
`Estech owns all substantial rights, interest, and title in and to the ’298 Patent,
`including the sole and exclusive right to prosecute this action and enforce the ’298 Patent against
`infringers, and to collect damages for all relevant times. The United States Patent and Trademark
`Office duly issued the ’298 Patent on March 5, 2013. A copy of the ’298 Patent is attached as
`Exhibit A.
`27.
`The ’298 Patent is titled “Phone Directory in a Voice Over IP Telephone System.”
`The ’298 Patent describes information processing systems that store a list of phone numbers,
`integrated with a VoIP telephony system, to provide those phone numbers to the user of a VoIP
`telephone. The user can use that list to dial the telephone number of another user associated with
`the VoIP telephony system.
`28.
`The claims of the ’298 Patent are not directed to an abstract idea. For example,
`claim 13 of the ’298 Patent recites a specific arrangement of devices and networking components.
`Together those devices and networking components enable a user of a first telecommunications
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`device to observe a list of a plurality of telecommunications extensions. The list of extensions is
`stored in a server within a specific networking configuration, and the user can select to view a
`subset of the extensions. Taken as a whole, the claimed inventions of the ’298 Patent are not
`limited to well-understood, routine, or conventional activity. Rather, the claimed inventions
`include inventive components that improve upon the functioning and operation of information
`processing systems.
`29.
`The written description of the ’298 Patent describes in technical detail each of the
`limitations of the claims, allowing a skilled artisan to understand the scope of the claims and how
`the non-conventional and non-generic combination of claim limitations is patently distinct from
`and improved upon what may have been considered conventional or generic in the art at the time
`of the invention.
`30.
`Dialpad has infringed the ’298 Patent by at least making, having made, using,
`importing, providing, supplying, distributing, selling, or offering the Accused Instrumentalities for
`sale.
`31.
`The Accused Instrumentalities provide VoIP-based voice calling and data-
`networking services to VoIP telephony devices.
`32.
`The Accused Instrumentalities use first, second, and third LANs that are coupled
`with a WAN.
`33.
`The Accused Instrumentalities include VoIP telephony devices connected to LANs,
`the VoIP telephony devices having telecommunications extensions associated therewith, the
`telecommunications extensions being coupled to the second and third LANs.
`34.
`The VoIP telephony devices include circuitry (i) enabling users of VoIP telephony
`devices to observe a list of telecommunications extensions; (ii) to automatically call one of the
`telecommunications extensions in response to a user selecting one of the telecommunications
`extensions from the list; and (iii) enabling the user to select between observing the list of
`telecommunications extensions coupled to the second LAN or the third LAN.
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`35.
`The Accused Instrumentalities include servers in the second LAN that store
`telecommunications extensions accessed across the WAN.
`36.
`As described above, Dialpad has directly infringed (literally or under the doctrine
`of equivalents) at least Claim 13 of the ’298 Patent. Dialpad’s infringement in this regard is
`ongoing.
`37.
`Estech has been damaged as a result of the infringing conduct by Dialpad alleged
`above. Thus, Dialpad is liable to Estech in an amount that compensates it for such infringements,
`which by law cannot be less than a reasonable royalty, together with interest and costs as fixed by
`this Court under 35 U.S.C. § 284.
`38.
`Estech or its predecessors-in-interest have satisfied all statutory obligations
`required to collect pre-filing damages for the full period allowed by law for infringement of the
`’298 Patent.
`39.
`Dialpad has also indirectly infringed the ’298 Patent by inducing others to directly
`infringe the ’298 Patent. Dialpad has induced end-users, including Dialpad’s customers, partners,
`personnel, clients, and contractors, to directly infringe (literally or under the doctrine of
`equivalents) the ’298 Patent by making and using the Accused Instrumentalities. Dialpad took
`active steps, directly or through contractual relationships with others, with the specific intent to
`cause them to use the Accused Instrumentalities in a manner that infringes one or more claims of
`the ’298 Patent, including, for example, Claim 13 of the ’298 Patent. Such steps by Dialpad
`included, among other things, advising or directing customers, partners, personnel, contractors or
`end-users to make or use the Accused Instrumentalities in an infringing manner; advertising and
`promoting the use of the Accused Instrumentalities in an infringing manner; or distributing
`instructions that guide users to use the Accused Instrumentalities in an infringing manner. Dialpad
`is performing these steps, which constitute induced infringement with the knowledge of the ’298
`Patent and with the knowledge that the induced acts constitute infringement. Dialpad is aware that
`the normal and customary use of the Accused Instrumentalities by others would infringe the ’298
`Patent. Dialpad’s inducement is ongoing.
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`40.
`Dialpad has also indirectly infringed by contributing to the infringement of the ’298
`Patent. Dialpad has contributed to the direct infringement of the ’298 Patent by its customers,
`partners, personnel, contractors, clients, and suppliers. The Accused Instrumentalities have special
`features that are specially designed to be used in an infringing way and that have no substantial
`uses other than ones that infringe one or more claims of the ’298 Patent, including, for example,
`Claim 13 of the ’298 Patent. The special features include, for example, the devices and networking
`components recited in Claim 13, including the interrelation between those devices and networking
`components, that allow the claimed server to provide a list of extensions and for the user to select
`to view a subset of the extensions. The special features constitute a material part of the invention
`of one or more of the claims of the ’298 Patent and are not staple articles of commerce suitable for
`substantial non-infringing use. Dialpad’s contributory infringement is ongoing.
`41.
`Furthermore, on information and belief, Dialpad has a policy or practice of not
`reviewing the patents of others (including instructing its employees to not review the patents of
`others), and thus has been willfully blind of Estech’s patent rights.
`42.
`Dialpad’s actions are at least objectively reckless as to the risk of infringing a valid
`patent and this objective risk was either known or should have been known by Dialpad.
`43.
`Dialpad’s direct and indirect infringement of the ’298 Patent is, has been, and
`continues to be willful, intentional, deliberate, or in conscious disregard of Estech’s rights under
`the patent.
`44.
`Estech has been damaged as a result of the infringing conduct by Dialpad alleged
`above. Thus, Dialpad is liable to Estech in an amount that compensates it for such infringements,
`which by law cannot be less than a reasonable royalty, together with interest and costs as fixed by
`this Court under 35 U.S.C. § 284.
`45.
`Estech has suffered irreparable harm, through its loss of market share and goodwill,
`for which there is no adequate remedy at law. Estech has and will continue to suffer this harm by
`virtue of Dialpad’s infringement of the ’298 Patent. Dialpad’s actions have interfered with and
`will interfere with Estech’s ability to license technology. The balance of hardships favors Estech’s
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`Plaintiff Estech Systems IP, LLC’s Complaint
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`United States District Court
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`Case 3:24-cv-02524-SK Document 2 Filed 04/26/24 Page 9 of 14
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`ability to commercialize its own ideas and technology. The public interest in allowing Estech to
`enforce its right to exclude outweighs other public interests, which supports injunctive relief in
`this case.
`
`COUNT II
`INFRINGEMENT OF U.S. PATENT NO. 7,068,684
`46.
`Estech repeats and re-alleges the allegations in paragraphs 1-45 as though fully set
`forth in their entirety.
`47.
`Estech owns all substantial rights, interest, and title in and to the ’684 Patent,
`including the sole and exclusive right to prosecute this action and enforce the ’684 Patent against
`infringers, and to collect damages for all relevant times. The United States Patent and Trademark
`Office duly issued the ’684 Patent on June 27, 2006. A copy of the ’684 Patent is attached as
`Exhibit B.
`48.
`The ’684 Patent is titled “Quality of Service in a Voice Over IP Telephone System.”
`The ’684 Patent describes information handling systems used to transmit voice using VoIP
`technology. The information handling systems throttle the amount of data being transferred from
`a workstation connected to the VoIP telephone.
`49.
`The method claims of the ’684 Patent are not directed to an abstract idea. For
`example, claim 42 of the ’684 Patent recites specific steps performed by a specific arrangement of
`devices and networking components and operations performed by those components. Together,
`those devices and networking components provide quality of service to audio information by
`throttling the amount of data being transferred through a VoIP telephony device. Taken as a whole,
`the claimed inventions of the ’684 Patent are not limited to well-understood, routine, or
`conventional activity. Rather, the claimed inventions include inventive components that improve
`upon the function and operation of information processing systems.
`50.
`The written description of the ’684 Patent describes in technical detail each of the
`limitations of the method claims, allowing a skilled artisan to understand the scope of the method
`claims and how the non-conventional and non-generic combination of claim limitations is patently
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`distinct from and improved upon what may have been considered conventional or generic in the
`art at the time of the invention.
`51.
`Dialpad has infringed the method claims of the ’684 Patent by making, having
`made, using, importing, providing, supplying, distributing, selling, or offering the Accused
`Instrumentalities for sale.
`52.
`The Accused Instrumentalities provide VoIP-based voice calling and data-
`networking services to VoIP telephony devices.
`53.
`The Accused Instrumentalities include VoIP servers such that audio information
`for VoIP-based voice calls is communicated between at least VoIP telephony devices and VoIP
`servers.
`54.
`The Accused Instrumentalities include workstations (including, but not limited to,
`for example, desktop computers, workstations, laptops, embedded devices, point-of-sale devices,
`and mobile devices) that send and receive data from data servers (including, but not limited to, for
`example, websites) that transfer data through VoIP telephony devices.
`55.
`The Accused Instrumentalities sufficiently throttle data sent from workstations to
`VoIP telephony devices to increase a rate of transfer of audio information during the
`communication of audio information, the data throttling comprises reducing a future amount of
`data from being transferred from the workstation if the amount of data exceeds a predetermined
`threshold.
`56.
`As described above, Dialpad has directly infringed (literally or under the doctrine
`of equivalents) one or more method claims, including at least Claim 42 of the ’684 Patent. Estech
`does not allege infringement of any non-method claims of the ’684 patent.
`57.
`Estech has been damaged as a result of the infringing conduct by Dialpad alleged
`above. Thus, Dialpad is liable to Estech in an amount that adequately compensates it for such
`infringements, which by law cannot be less than a reasonable royalty, together with interest and
`costs as fixed by this Court under 35 U.S.C. § 284.
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`58.
`Estech or its predecessors-in-interest have satisfied all statutory obligations
`required to collect pre-filing damages for the full period allowed by law for infringement of the
`’684 Patent.
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`COUNT III
`INFRINGEMENT OF U.S. PATENT NO. 7,123,699
`59.
`Estech repeats and re-alleges the allegations in paragraphs 1-58 as though fully set
`forth in their entirety.
`60.
`Estech owns all substantial rights, interest, and title in and to the ’699 Patent,
`including the sole and exclusive right to prosecute this action and enforce the ’699 Patent against
`infringers, and to collect damages for all relevant times. The United States Patent and Trademark
`Office duly issued the ’699 Patent on October 17, 2006. A copy of the ’699 Patent is attached as
`Exhibit C.
`61.
`The ’699 Patent is titled “Voice Mail in a Voice Over IP Telephone System.” The
`’699 Patent describes an information handling system for storing a voice mail message in a voice
`mail box in a voice mail system within a first local area network (LAN). A user can access and
`listen to the voice mail using a VoIP telecommunications device within a second LAN by
`connecting to the first LAN via a wide-area network (WAN), such as the Internet.
`62.
`The method claims of the ’699 Patent are not directed to an abstract idea. For
`example, claim 1 of the ’699 Patent recites specific steps performed by a specific arrangement of
`devices in a networking environment. Together those devices enable a user within a second LAN
`to access and listen to voice mail messages stored within a first LAN. Taken as a whole, the
`claimed inventions of the ’699 Patent are not limited to well-understood, routine, or conventional
`activity. Rather, the claimed inventions include inventive components that improve upon the
`functioning and operation of information processing systems.
`63.
`The written description of the ’699 Patent describes in technical detail each of the
`limitations of the method claims, allowing a skilled artisan to understand the scope of the method
`claims and how the non-conventional and non-generic combination of claim limitations is patently
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`Plaintiff Estech Systems IP, LLC’s Complaint
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`distinct from and improved upon what may have been considered conventional or generic in the
`art at the time of the invention.
`64.
`Dialpad has infringed the method claims of the ’699 Patent by making, having
`made, using, importing, providing, supplying, distributing, selling, or offering the Accused
`Instrumentalities for sale.
`65.
`The Accused Instrumentalities operate under a routable protocol including, but not
`limited to, for example, TCP/IP or UDP/IP.
`66.
`The Accused Instrumentalities include VoIP servers that store a voice mail message
`in a voice mail box in a voice mail system within a first LAN.
`67.
`The Accused Instrumentalities include VoIP telephony devices coupled to the
`second LAN that provide a sensory indication when the voice message is stored in the voice mail
`box within the first LAN. The VoIP telephony devices allow a user to access the voice mail system
`within the first LAN to listen to the voice message stored in the voice mail box. The VoIP
`telephony devices allow a user to access the voice mail message stored in the voice mail box
`provided by the VoIP Servers by using communication protocols, including, but not limited to, for
`example, TCP/IP, UDP/IP, Session Initiation Protocol (SIP), Session Description Protocol (SDP),
`Real-time Transport Protocol (RTP), and Real-time Transport Control Protocol (RTCP) protocols
`to: (i) establish a channel between the first and second LANs over the WAN; (ii) couple an audio
`path over the channel between the telecommunications device and the voice mail box; and (iii)
`stream voice data containing the voice message from the voice mail box to the telecommunications
`device over the audio path.
`68.
`The VoIP telephony devices and VoIP servers can establish a channel between the
`first and second LANs over the WAN, wherein the establishing includes: (i) in response to an
`input at VoIP telephony devices, sending a user mail box connection message from the second
`LAN to the first LAN requesting a channel, wherein the user mail box connection message includes
`an extension associated with VoIP telephony devices and an identification of the voice mail box;
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`(ii) assigning the channel by VoIP servers in the first LAN; and (iii) sending a connection
`established message from VoIP servers in the first LAN to the second LAN.
`69.
`As described above, Dialpad has directly infringed (literally or under the doctrine
`of equivalents) one or more method claims, including at least Claim 1 of the ’699 Patent. Estech
`does not allege infringement of any non-method claims of the ’699 patent.
`70.
`Estech has been damaged as a result of the infringing conduct by Dialpad alleged
`above. Thus, Dialpad is liable to Estech in an amount that adequately compensates it for such
`infringements, which by law cannot be less than a reasonable royalty, together with interest and
`costs as fixed by this Court under 35 U.S.C. § 284.
`71.
`Estech or its predecessors-in-interest have satisfied all statutory obligations
`required to collect pre-filing damages for the full period allowed by law for infringement of the
`’699 Patent.
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`JURY DEMAND
`Pursuant to Rule 38 of the Federal Rules of Civil Procedure, Estech requests a trial by jury
`on all issues triable by a jury.
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`PRAYER FOR RELIEF
`Estech requests that the Court find in its favor and against Dialpad, and that the Court grant
`Estech the following relief:
`a.
`Judgment that one or more claims of the Estech Asserted Patents have been
`infringed, either literally or under the doctrine of equivalents, by Dialpad or all others acting in
`concert therewith;
`b.
`A permanent injunction enjoining Dialpad and its officers, directors, agents,
`servants, affiliates, employees, divisions, branches, subsidiaries, parents, and all others acting in
`concert therewith from infringement of the ’298 Patent; or, in the alternative, an award of a
`reasonable ongoing royalty for future infringement of the’298 Patent by such entities;
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`c.
`Judgment that Dialpad accounts for and pays to Estech all damages to and costs
`incurred by Estech because of Dialpad’s infringing activities and other conduct complained of
`herein;
`d.
`Judgment that Dialpad’s infringement be found willful, and that the Court award
`treble damages for the period of such willful infringement pursuant to 35 U.S.C. § 284;
`e.
`Pre-judgment and post-judgment interest on the damages caused by Dialpad’s
`infringing activities and other conduct complained of herein;
`f.
`That this Court declare this an exceptional case and award Estech its reasonable
`attorneys’ fees and costs in accordance with 35 U.S.C. § 285; and
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`All other and further relief as the Court may deem just and proper under the circumstances.
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`Dated: April 26, 2024
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`
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`Respectfully submitted,
`/s/ Stephen R. Dartt
`Stephen R. Dartt
`California State Bar No. 247552
`WILLIAMS SIMONS & LANDIS PLLC
`The Littlefield Building
`601 Congress Ave., Suite 600
`Austin, TX 78701
`Tel: (512) 543-1538
`sdartt@wsltrial.com
`
`Eric Carr
`California State Bar No. 333128
`WILLIAMS SIMONS & LANDIS PLLC
`3535 Jewell Street
`San Diego, CA 92109
`Tel: (512) 543-1359
`ecarr@wsltrial.com
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`ATTORNEYS FOR ESTECH SYSTEMS IP,
`LLC
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