Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 1 of 125 PageID #: 1384
`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELAWARE
`
`
`TQ DELTA, LLC,
`
`
`Plaintiff,
`
`v.
`
`
`PACE AMERICAS, LLC,
`PACE PLC, and 2WIRE, INC.
`
`
` Defendants.
`
` C.A. No. 13-cv-1835-RGA
`
` JURY TRIAL DEMANDED
`
`
`
`
`
`
`
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`
`
`
`
`
`
`SECOND AMENDED COMPLAINT FOR PATENT INFRINGEMENT
`
`Plaintiff, TQ Delta, LLC, for its Second Amended Complaint against Defendants, Pace
`
`Americas, LLC, Pace plc, and 2Wire, Inc., alleges as follows:
`
`THE PARTIES
`
`1.
`
`TQ Delta, LLC (“TQ Delta” or “Plaintiff”) is a limited liability company
`
`organized and existing under the laws of the State of Delaware and having a principal place of
`
`business at 805 Las Cimas Parkway, Suite 240, Austin, Texas 78746.
`
`2.
`
`Upon information and belief, Pace Americas, LLC (“Pace Americas” or
`
`“Defendants” when referring to the defendants collectively), formerly known as Pace Americas,
`
`Inc., is a limited liability company organized and existing under the laws of the State of
`
`Delaware and having a principal place of business at 3701 FAU Boulevard, Suite 200, Boca
`
`Raton, Florida 33431.
`
`3.
`
`Upon information and belief, Pace plc (“Pace plc” or “Defendants” when
`
`referring to the defendants collectively) is a corporation organized and existing under the laws of
`
`the United Kingdom and having a principal place of business at Victoria Road, Saltaire, West
`
`Yorkshire, BD18 3LF, England.
`
`
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 2 of 125 PageID #: 1385
`
`
`4.
`
`Upon information and belief, 2Wire, Inc. (“2Wire” or “Defendants” when
`
`referring to the defendants collectively) is a corporation organized and existing under the laws of
`
`the State of Delaware and having a principal place of business at 1764 Automation Parkway, San
`
`Jose, California 95131. Pace plc owns and controls Pace Americas and 2Wire.
`
`JURISDICTION AND VENUE
`
`5.
`
`This action is for patent infringement under the patent laws of the United States,
`
`35 U.S.C. § 1 et seq.
`
`6.
`
`This Court has subject matter jurisdiction over this dispute pursuant to 28 U.S.C.
`
`§§ 1331 and 1338(a).
`
`7.
`
`This Court has personal jurisdiction over Defendants at least because Pace
`
`Americas and 2Wire are incorporated in Delaware and Defendants make, use, sell, offer for sale,
`
`and/or import infringing products into this jurisdiction and/or otherwise benefit from such acts of
`
`infringement in this jurisdiction.
`
`8.
`
`Venue is proper in this district pursuant to 28 U.S.C. §§ 1391 and 1400(b) at least
`
`because Defendant Pace Americas and 2Wire are incorporated in Delaware and because
`
`Defendants regularly conduct business in this venue at least through Pace Americas and 2Wire.
`
`BACKGROUND
`
`9.
`
`TQ Delta is the owner by assignment of a portfolio of patents relating to digital
`
`subscriber line (“DSL”) technology, including for example asymmetric digital subscriber line
`
`(“ADSL”) technology and very-high-bit-rate digital subscriber line (“VDSL”) technology.
`
`10.
`
`DSL technology is used to provide broadband access to data networks, such as the
`
`Internet, via copper wires of a local telephone network. More recently, DSL has been used by
`
`telephone carriers to deliver video services to subscribers.
`
`
`
`2
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 3 of 125 PageID #: 1386
`
`
`11.
`
`Inventors of the patents at issue in this case have been substantial contributors of
`
`valuable technology to various DSL-related standards on behalf of TQ Delta and, previously,
`
`Aware, Inc., a world-leading innovator and provider of DSL technologies.
`
`12.
`
`Defendants make, use, sell, offer for sale, and/or import customer premise
`
`equipment (“CPE”) products, including without limitation gateways, that operate in accordance
`
`with various DSL-related standards (“DSL CPE Products”).
`
`13.
`
`TQ Delta attempted to negotiate a license with Defendants under TQ Delta’s DSL
`
`patent portfolio. On July 15, 2013, TQ Delta sent a first letter to Defendants, including an
`
`overview of TQ Delta’s DSL patent portfolio and an invitation to open licensing discussions.
`
`TQ Delta requested Defendants’ response by July 31, 2013.
`
`14.
`
`Having received no response by July 31, 2013, TQ Delta sent a follow-up letter to
`
`Defendants on August 6, 2013, which requested Defendants’ response by August 23, 2013.
`
`15.
`
`Having received no response, on August 23, 2013, TQ Delta sent a follow-up
`
`email to Defendants and again invited Defendants to engage in licensing discussions. This email
`
`further explained that “the use of one or more patent claims in [TQ Delta’s DSL patent] portfolio
`
`may be required to practice or otherwise comply with certain DSL-related Recommendations,
`
`Deliverables, and/or standards” and that “TQ Delta is willing to negotiate a license with Pace on
`
`a non-discriminatory basis on reasonable terms and conditions with respect to any such standard-
`
`essential patent claims.”
`
`16.
`
`TQ Delta made a good-faith effort to negotiate a license with Defendants under
`
`TQ Delta’s DSL patent portfolio but those efforts were frustrated by Defendants’ delay and
`
`refusal to enter into an agreement with reasonable terms that would have allowed the parties to
`
`attempt to resolve their dispute outside the context of litigation.
`
`
`
`3
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 4 of 125 PageID #: 1387
`
`
`17.
`
`Defendants have never applied for a license under TQ Delta’s DSL patent
`
`portfolio.
`
`
`
`
`
`
`
`4
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 5 of 125 PageID #: 1388
`
`
`COUNT I – INFRINGEMENT OF U.S. PATENT NO. 8,090,008
`
`18.
`
`TQ Delta hereby incorporates by reference Paragraphs 1 through 17 of this
`
`Second Amended Complaint.
`
`19.
`
`On January 3, 2012, the United States Patent and Trademark Office duly and
`
`legally issued U.S. Patent No. 8,090,008 (“the ‘008 patent”), entitled “System and Method for
`
`Scrambling the Phase of the Carriers in a Multicarrier Communications System.” TQ Delta is
`
`the owner and assignee of the ‘008 patent. A copy of the ‘008 patent is attached as Exhibit 1.
`
`20.
`
`Defendants, in violation of 35 U.S.C. § 271(a), have been and are directly
`
`infringing the ‘008 patent by making, using, selling, offering to sell, or importing, without
`
`license or authority, DSL CPE Products that operate in accordance with the ITU-T VDSL2
`
`(G.993.2) standard.
`
`21.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘008 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271(b), have induced, and are inducing, the direct infringement of one or more
`
`claims of the ‘008 patent by selling, providing support for, and/or providing instructions for use
`
`of DSL CPE Products to Internet Service Providers (“ISPs”) and/or their customers with the
`
`intent to encourage those customers to infringe the ‘008 patent.
`
`22.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘008 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271 (c), have contributorily infringed, and are contributorily infringing, the ‘008
`
`patent, by selling DSL CPE Products to ISPs and their customers in the United States for use in
`
`
`
`5
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 6 of 125 PageID #: 1389
`
`
`practicing the patented methods, knowing that such products are material to practicing the
`
`claimed inventions, are not staple articles or commodities of commerce suitable for substantial
`
`non-infringing use, and are especially made or especially adapted for use in an infringement of
`
`the ‘008 patent.
`
`23.
`
`As a result of Defendants’ infringement of the ‘008 Patent, TQ Delta has suffered
`
`damages and is entitled to monetary relief to compensate for the infringement, but in no event
`
`less than a reasonable royalty for the use made of the invention by Defendants, together with
`
`interest and costs as fixed by the Court.
`
`COUNT II – INFRINGEMENT OF U.S. PATENT NO. 8,073,041
`
`24.
`
`TQ Delta hereby incorporates by reference Paragraphs 1 through 17 of this
`
`Second Amended Complaint.
`
`25.
`
`On December 6, 2011, the United States Patent and Trademark Office duly and
`
`legally issued U.S. Patent No. 8,073,041 (“the ‘041 patent”), entitled “System and Method for
`
`Descrambling the Phase of the Carriers in a Multicarrier Communications System.” TQ Delta is
`
`the owner and assignee of the ‘041 patent. A copy of the ‘041 patent is attached as Exhibit 2.
`
`26.
`
`Defendants, in violation of 35 U.S.C. § 271(a), have been and are directly
`
`infringing the ‘041 patent by making, using, selling, offering to sell, or importing, without
`
`license or authority, DSL CPE Products that operate in accordance with the ITU-T VDSL2
`
`(G.993.2) standard.
`
`27.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘041 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271(b), have induced, and are inducing, the direct infringement of one or more
`
`
`
`6
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 7 of 125 PageID #: 1390
`
`
`claims of the ‘041 patent by selling, providing support for, and/or providing instructions for use
`
`of DSL CPE Products to ISPs and/or their customers with the intent to encourage those
`
`customers to infringe the ‘041 patent.
`
`28.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘041 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271 (c), have contributorily infringed, and are contributorily infringing, the ‘041
`
`patent, by selling DSL CPE Products to ISPs and their customers in the United States for use in
`
`practicing the patented methods, knowing that such products are material to practicing the
`
`claimed inventions, are not staple articles or commodities of commerce suitable for substantial
`
`non-infringing use, and are especially made or especially adapted for use in an infringement of
`
`the ‘041 patent.
`
`29.
`
`As a result of Defendants’ infringement of the ‘041 Patent, TQ Delta has suffered
`
`damages and is entitled to monetary relief to compensate for the infringement, but in no event
`
`less than a reasonable royalty for the use made of the invention by Defendants, together with
`
`interest and costs as fixed by the Court.
`
`COUNT III – INFRINGEMENT OF U.S. PATENT NO. 7,292,627
`
`30.
`
`TQ Delta hereby incorporates by reference Paragraphs 1 through 17 of this
`
`Second Amended Complaint.
`
`31.
`
`On November 6, 2007, the United States Patent and Trademark Office duly and
`
`legally issued U.S. Patent No. 7,292,627 (“the ‘627 patent”), entitled “System and Method for
`
`Scrambling the Phase of the Carriers in a Multicarrier Communications System.” TQ Delta is
`
`the owner and assignee of the ‘627 patent. A copy of the ‘627 patent is attached as Exhibit 3.
`
`
`
`7
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 8 of 125 PageID #: 1391
`
`
`32.
`
`Defendants, in violation of 35 U.S.C. § 271(a), have been and are directly
`
`infringing the ‘627 patent by making, using, selling, offering to sell, or importing, without
`
`license or authority, DSL CPE Products that operate in accordance with the ITU-T VDSL2
`
`(G.993.2) standard.
`
`33.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘627 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271(b), have induced, and are inducing, the direct infringement of one or more
`
`claims of the ‘627 patent by selling, providing support for, and/or providing instructions for use
`
`of DSL CPE Products to ISPs and/or their customers with the intent to encourage those
`
`customers to infringe the ‘627 patent.
`
`34.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘627 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271 (c), have contributorily infringed, and are contributorily infringing, the ‘627
`
`patent, by selling DSL CPE Products to ISPs and their customers in the United States for use in
`
`practicing the patented methods, knowing that such products are material to practicing the
`
`claimed inventions, are not staple articles or commodities of commerce suitable for substantial
`
`non-infringing use, and are especially made or especially adapted for use in an infringement of
`
`the ‘627 patent.
`
`35.
`
`As a result of Defendants’ infringement of the ‘627 Patent, TQ Delta has suffered
`
`damages and is entitled to monetary relief to compensate for the infringement, but in no event
`
`
`
`8
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 9 of 125 PageID #: 1392
`
`
`less than a reasonable royalty for the use made of the invention by Defendants, together with
`
`interest and costs as fixed by the Court.
`
`COUNT IV – INFRINGEMENT OF U.S. PATENT NO. 7,471,721
`
`36.
`
`TQ Delta hereby incorporates by reference Paragraphs 1 through 17 of this
`
`Second Amended Complaint.
`
`37.
`
`On December 30, 2008, the United States Patent and Trademark Office duly and
`
`legally issued U.S. Patent No. 7,471,721 (“the ‘721 patent”), entitled “System and Method for
`
`Scrambling the Phase of the Carriers in a Multicarrier Communications System.” TQ Delta is
`
`the owner and assignee of the ‘721 patent. A copy of the ‘721 patent is attached as Exhibit 4.
`
`38.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that Defendants, in violation of 35 U.S.C. § 271(a), have been and are
`
`directly infringing one or more method claims of the ‘721 patent by using (including for
`
`purposes of testing or demonstration), without license or authority, DSL CPE Products that
`
`operate in accordance with the ITU-T VDSL2 (G.993.2) standard.
`
`39.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘721 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271(b), have induced, and are inducing, the direct infringement of one or more
`
`claims of the ‘721 patent by selling, providing support for, and/or providing instructions for use
`
`of DSL CPE Products to ISPs and/or their customers with the intent to encourage those
`
`customers to infringe the ‘721 patent.
`
`40.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘721 patent (at least as of the filing of the
`
`
`
`9
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 10 of 125 PageID #: 1393
`
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271 (c), have contributorily infringed, and are contributorily infringing, the ‘721
`
`patent, by selling DSL CPE Products to ISPs and their customers in the United States for use in
`
`practicing the patented methods, knowing that such products are material to practicing the
`
`claimed inventions, are not staple articles or commodities of commerce suitable for substantial
`
`non-infringing use, and are especially made or especially adapted for use in an infringement of
`
`the ‘721 patent.
`
`41.
`
`As a result of Defendants’ infringement of the ‘721 Patent, TQ Delta has suffered
`
`damages and is entitled to monetary relief to compensate for the infringement, but in no event
`
`less than a reasonable royalty for the use made of the invention by Defendants, together with
`
`interest and costs as fixed by the Court.
`
`COUNT V – INFRINGEMENT OF U.S. PATENT NO. 8,218,610
`
`42.
`
`TQ Delta hereby incorporates by reference Paragraphs 1 through 17 of this
`
`Second Amended Complaint.
`
`43.
`
`On July 10, 2012, the United States Patent and Trademark Office duly and legally
`
`issued U.S. Patent No. 8,218,610 (“the ‘610 patent”), entitled “System and Method for
`
`Descrambling the Phase of Carriers in a Multicarrier Communications System.” TQ Delta is the
`
`owner and assignee of the ‘610 patent. A copy of the ‘610 patent is attached as Exhibit 5.
`
`44.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that Defendants, in violation of 35 U.S.C. § 271(a), have been and are
`
`directly infringing one or more method claims of the ‘610 patent by using (including for
`
`purposes of testing or demonstration), without license or authority, DSL CPE Products that
`
`operate in accordance with the ITU-T VDSL2 (G.993.2) standard.
`
`
`
`10
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 11 of 125 PageID #: 1394
`
`
`45.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘610 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271(b), have induced, and are inducing, the direct infringement of one or more
`
`claims of the ‘610 patent by selling, providing support for, and/or providing instructions for use
`
`of DSL CPE Products to ISPs and/or their customers with the intent to encourage those
`
`customers to infringe the ‘610 patent.
`
`46.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘610 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271 (c), have contributorily infringed, and are contributorily infringing, the ‘610
`
`patent, by selling DSL CPE Products to ISPs and their customers in the United States for use in
`
`practicing the patented methods, knowing that such products are material to practicing the
`
`claimed inventions, are not staple articles or commodities of commerce suitable for substantial
`
`non-infringing use, and are especially made or especially adapted for use in an infringement of
`
`the ‘610 patent.
`
`47.
`
`As a result of Defendants’ infringement of the ‘610 Patent, TQ Delta has suffered
`
`damages and is entitled to monetary relief to compensate for the infringement, but in no event
`
`less than a reasonable royalty for the use made of the invention by Defendants, together with
`
`interest and costs as fixed by the Court.
`
`COUNT VI – INFRINGEMENT OF U.S. PATENT NO. 8,355,427
`
`48.
`
`TQ Delta hereby incorporates by reference Paragraphs 1 through 17 of this
`
`Second Amended Complaint.
`
`
`
`11
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 12 of 125 PageID #: 1395
`
`
`49.
`
`On January 15, 2013, the United States Patent and Trademark Office duly and
`
`legally issued U.S. Patent No. 8,355,427 (“the ‘427 patent”), entitled “System and Method for
`
`Descrambling the Phase of Carriers in a Multicarrier Communications System.” TQ Delta is the
`
`owner and assignee of the ‘427 patent. A copy of the ‘427 patent is attached as Exhibit 6.
`
`50.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that Defendants, in violation of 35 U.S.C. § 271(a), have been and are
`
`directly infringing one or more method claims of the ‘427 patent by using (including for
`
`purposes of testing or demonstration), without license or authority, DSL CPE Products that
`
`operate in accordance with the ITU-T VDSL2 (G.993.2) standard.
`
`51.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘427 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271(b), have induced, and are inducing, the direct infringement of one or more
`
`claims of the ‘427 patent by selling, providing support for, and/or providing instructions for use
`
`of DSL CPE Products to ISPs and/or their customers with the intent to encourage those
`
`customers to infringe the ‘427 patent.
`
`52.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘427 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271 (c), have contributorily infringed, and are contributorily infringing, the ‘427
`
`patent, by selling DSL CPE Products to ISPs and their customers in the United States for use in
`
`practicing the patented methods, knowing that such products are material to practicing the
`
`claimed inventions, are not staple articles or commodities of commerce suitable for substantial
`
`
`
`12
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 13 of 125 PageID #: 1396
`
`
`non-infringing use, and are especially made or especially adapted for use in an infringement of
`
`the ‘427 patent.
`
`53.
`
`As a result of Defendants’ infringement of the ‘427 Patent, TQ Delta has suffered
`
`damages and is entitled to monetary relief to compensate for the infringement, but in no event
`
`less than a reasonable royalty for the use made of the invention by Defendants, together with
`
`interest and costs as fixed by the Court.
`
`COUNT VII – INFRINGEMENT OF U.S. PATENT NO. 7,453,881
`
`54.
`
`TQ Delta hereby incorporates by reference Paragraphs 1 through 17 of this
`
`Second Amended Complaint.
`
`55.
`
`On November 18, 2008, the United States Patent and Trademark Office duly and
`
`legally issued U.S. Patent No. 7,453,881 (“the ‘881 patent”), entitled “Systems and Methods for
`
`Mulit-pair ATM Over DSL.” TQ Delta is the owner and assignee of the ‘881 patent. A copy of
`
`the ‘881 patent is attached as Exhibit 7.
`
`56.
`
`Defendants, in violation of 35 U.S.C. § 271(a), have been and are directly
`
`infringing the ‘881 patent by making, using, selling, offering to sell, or importing, without
`
`license or authority, DSL CPE Products that operate in accordance with the ITU-T G.bond
`
`standard (e.g., G.998.1, G.998.2).
`
`57.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘881 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271(b), have induced, and are inducing, the direct infringement of one or more
`
`claims of the ‘881 patent by selling, providing support for, and/or providing instructions for use
`
`
`
`13
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 14 of 125 PageID #: 1397
`
`
`of DSL CPE Products to ISPs and/or their customers with the intent to encourage those
`
`customers to infringe the ‘881 patent.
`
`58.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘881 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271 (c), have contributorily infringed, and are contributorily infringing, the ‘881
`
`patent, by selling DSL CPE Products to ISPs and their customers in the United States for use in
`
`practicing the patented methods, knowing that such products are material to practicing the
`
`claimed inventions, are not staple articles or commodities of commerce suitable for substantial
`
`non-infringing use, and are especially made or especially adapted for use in an infringement of
`
`the ‘881 patent.
`
`59.
`
`As a result of Defendants’ infringement of the ‘881 Patent, TQ Delta has suffered
`
`damages and is entitled to monetary relief to compensate for the infringement, but in no event
`
`less than a reasonable royalty for the use made of the invention by Defendants, together with
`
`interest and costs as fixed by the Court.
`
`COUNT VIII – INFRINGEMENT OF U.S. PATENT NO. 7,978,706
`
`60.
`
`TQ Delta hereby incorporates by reference Paragraphs 1 through 17 of this
`
`Second Amended Complaint.
`
`61.
`
`On July 12, 2011, the United States Patent and Trademark Office duly and legally
`
`issued U.S. Patent No. 7,978,706 (“the ‘706 patent”), entitled “Combining Multiple DSL
`
`Transceivers for a High Data Rate Connection.” TQ Delta is the owner and assignee of the ‘706
`
`patent. A copy of the ‘706 patent is attached as Exhibit 8.
`
`
`
`14
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 15 of 125 PageID #: 1398
`
`
`62.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that Defendants, in violation of 35 U.S.C. § 271(a), have been and are
`
`directly infringing one or more method claims of the ‘706 patent by using (including for
`
`purposes of testing or demonstration), without license or authority, DSL CPE Products that
`
`operate in accordance with the ITU-T G.bond standard (e.g., G.998.1, G.998.2).
`
`63.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘706 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271(b), have induced, and are inducing, the direct infringement of one or more
`
`claims of the ‘706 patent by selling, providing support for, and/or providing instructions for use
`
`of DSL CPE Products to ISPs and/or their customers with the intent to encourage those
`
`customers to infringe the ‘706 patent.
`
`64.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘706 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271 (c), have contributorily infringed, and are contributorily infringing, the ‘706
`
`patent, by selling DSL CPE Products to ISPs and their customers in the United States for use in
`
`practicing the patented methods, knowing that such products are material to practicing the
`
`claimed inventions, are not staple articles or commodities of commerce suitable for substantial
`
`non-infringing use, and are especially made or especially adapted for use in an infringement of
`
`the ‘706 patent.
`
`65.
`
`As a result of Defendants’ infringement of the ‘706 Patent, TQ Delta has suffered
`
`damages and is entitled to monetary relief to compensate for the infringement, but in no event
`
`
`
`15
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 16 of 125 PageID #: 1399
`
`
`less than a reasonable royalty for the use made of the invention by Defendants, together with
`
`interest and costs as fixed by the Court.
`
`COUNT IX – INFRINGEMENT OF U.S. PATENT NO. 8,422,511
`
`66.
`
`TQ Delta hereby incorporates by reference Paragraphs 1 through 17 of this
`
`Second Amended Complaint.
`
`67.
`
`On April 16, 2013, the United States Patent and Trademark Office duly and
`
`legally issued U.S. Patent No. 8,422,511 (“the ‘511 patent”), entitled “Systems and Methods for
`
`Multi-pair ATM Over DSL.” TQ Delta is the owner and assignee of the ‘511 patent. A copy of
`
`the ‘511 patent is attached as Exhibit 9.
`
`68.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that Defendants, in violation of 35 U.S.C. § 271(a), have been and are
`
`directly infringing one or more method claims of the ‘511 patent by using (including for
`
`purposes of testing or demonstration), without license or authority, DSL CPE Products that
`
`operate in accordance with the ITU-T G.bond standard (e.g., G.998.1, G.998.2).
`
`69.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘511 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271(b), have induced, and are inducing, the direct infringement of one or more
`
`claims of the ‘511 patent by selling, providing support for, and/or providing instructions for use
`
`of DSL CPE Products to ISPs and/or their customers with the intent to encourage those
`
`customers to infringe the ‘511 patent.
`
`70.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘511 patent (at least as of the filing of the
`
`
`
`16
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 17 of 125 PageID #: 1400
`
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271 (c), have contributorily infringed, and are contributorily infringing, the ‘511
`
`patent, by selling DSL CPE Products to ISPs and their customers in the United States for use in
`
`practicing the patented methods, knowing that such products are material to practicing the
`
`claimed inventions, are not staple articles or commodities of commerce suitable for substantial
`
`non-infringing use, and are especially made or especially adapted for use in an infringement of
`
`the ‘511 patent.
`
`71.
`
`As a result of Defendants’ infringement of the ‘511 Patent, TQ Delta has suffered
`
`damages and is entitled to monetary relief to compensate for the infringement, but in no event
`
`less than a reasonable royalty for the use made of the invention by Defendants, together with
`
`interest and costs as fixed by the Court.
`
`COUNT X – INFRINGEMENT OF U.S. PATENT NO. 7,889,784
`
`72.
`
`TQ Delta hereby incorporates by reference Paragraphs 1 through 17 of this
`
`Second Amended Complaint.
`
`73.
`
`On February 15, 2011, the United States Patent and Trademark Office duly and
`
`legally issued U.S. Patent No. 7,889,784 (“the ‘784 patent”), entitled “Multicarrier Modulation
`
`Messaging for SNR Per Subchannel During Showtime Information.” TQ Delta is the owner and
`
`assignee of the ‘784 patent. A copy of the ‘784 patent is attached as Exhibit 10.
`
`74.
`
`Defendants, in violation of 35 U.S.C. § 271(a), have been and are directly
`
`infringing the ‘784 patent by making, using, selling, offering to sell, or importing, without
`
`license or authority, DSL CPE Products that operate in accordance with the ITU-T ADSL2
`
`(G.992.3), ADSL2+ (G.992.5), and/or VDSL2 (G.993.2) standards.
`
`
`
`17
`
`

`
`Case 1:13-cv-01835-RGA Document 24 Filed 02/07/14 Page 18 of 125 PageID #: 1401
`
`
`75.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘784 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271(b), have induced, and are inducing, the direct infringement of one or more
`
`claims of the ‘784 patent by selling, providing support for, and/or providing instructions for use
`
`of DSL CPE Products to ISPs and/or their customers with the intent to encourage those
`
`customers to infringe the ‘784 patent.
`
`76.
`
`Upon information and belief, a reasonable opportunity for further investigation or
`
`discovery will likely show that, with knowledge of the ‘784 patent (at least as of the filing of the
`
`Complaint and/or previously at least by willful blindness or otherwise), Defendants, in violation
`
`of 35 U.S.C. § 271 (c), have contributorily infringed, and are contributorily