Case 2:16-cv-00058 Document 1 Filed 01/17/16 Page 1 of 33 PageID #: 1
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`
`OPTIS CELLULAR TECHNOLOGY, LLC
`and PANOPTIS PATENT MANAGEMENT,
`LLC,
`
`Plaintiffs,
`
`v.
`
`ZTE CORPORATION and ZTE (USA) INC.,
`
`Defendants.
`
`CIVIL ACTION NO.
`
`2:16-cv-58
`
`JURY TRIAL DEMANDED
`
`ORIGINAL COMPLAINT FOR PATENT INFRINGEMENT
`
`Plaintiffs Optis Cellular Technology, LLC and PanOptis Patent Management, LLC,
`
`(collectively, “Plaintiffs” or “PanOptis”), file this Original Complaint for Patent
`
`Infringement under 35 U.S.C. § 271 against ZTE Corporation and ZTE (USA) Inc.,
`
`(collectively, “Defendants” or “ZTE”), and allege as follows:
`
`THE PARTIES
`
`1.
`
`Plaintiff Optis Cellular Technology, LLC (“Optis Cellular”) is a limited
`
`liability company organized and existing under the laws of the State of Delaware, and
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`-1-
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`IPR2020-00465
`APPLE v. OPTIS
`APPLE 1066
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`

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`Case 2:16-cv-00058 Document 1 Filed 01/17/16 Page 2 of 33 PageID #: 2
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`maintains its principal place of business at 7160 Dallas Parkway, Suite 250, Plano, Texas
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`75024.
`
`2.
`
`Plaintiff PanOptis Patent Management, LLC (“PPM”) is a limited liability
`
`company organized and existing under the laws of the State of Delaware, and maintains its
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`principal place of business at 7160 Dallas Parkway, Suite 250, Plano, Texas 75024.
`
`3.
`
`On information and belief, Defendant ZTE Corporation (“ZTE Corp.”) is a
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`corporation organized and operating under the laws of the country of China with its principal
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`place of business at ZTE Plaza, Keji Road South, Hi-Tech Industrial Park, Nanshan District,
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`Shenzhen, Guandong Province 518057, China, P.R.C. ZTE Corp. manufactures, imports
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`into the United States, sells and/or offers for sale in the United States mobile telephones,
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`tablets, mobile hotspots, and digital projectors for use in a mobile communications network.
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`In addition, ZTE Corp.’s mobile telephones, tablets, mobile hotspots, and digital projectors
`
`for use in a mobile communications network are marketed, offered for sale, and/or sold
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`throughout the United States, including within this District. ZTE Corp. can be served with
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`process by serving the Texas Secretary of State.
`
`4.
`
`On information and belief, Defendant ZTE (USA) Inc. (“ZTE USA”) is a
`
`corporation organized under the laws of the state of New Jersey with its principal place of
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`business at 2425 North Central Expressway, Suite 323, Richardson, Texas 75080. ZTE USA
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`manufactures, imports into the United States, sells and/or offers for sale in the United States
`
`mobile telephones, tablets, mobile hotspots, and digital projectors for use in a mobile
`
`communications network. In addition, ZTE USA’s mobile telephones, tablets, mobile
`
`hotspots, and digital projectors for use in a mobile communications network are marketed,
`
`offered for sale, and/or sold throughout the United States, including within this District. ZTE
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`USA can be served with process through its registered agent, Jing Li, at 2425 North Central
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`Expressway, Suite 323, Richardson, TX 75080.
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`JURISDICTION AND VENUE
`
`5.
`
`This is an action arising under the patent laws of the United States, 35 U.S.C.
`
`§ 101 et seq. This Court has subject matter jurisdiction under 28 U.S.C. §§ 1331 1338(a),
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`2201, and 2202.
`
`6.
`
`Venue is proper in this judicial district under 28 U.S.C. §§ 1391(b), (c) and
`
`(d) and 1400(b).
`
`7.
`
`This Court has personal jurisdiction over Defendants. Defendants have
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`conducted and do conduct business within the State of Texas. Defendants, directly or
`
`through subsidiaries or intermediaries (including distributors, retailers, and others), ship,
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`distribute, offer for sale, sell, and advertise (including the provision of an interactive web
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`page) their products and/or services in the United States, the State of Texas, and the Eastern
`
`District of Texas. Defendants, directly and through subsidiaries or intermediaries (including
`
`distributors, retailers, and others), have purposefully and voluntarily placed one or more of
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`its infringing products and/or services, as described below, into the stream of commerce with
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`the expectation that they will be purchased and used by consumers in the Eastern District of
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`Texas. These infringing products and/or services have been and continue to be purchased
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`and used by consumers in the Eastern District of Texas. Defendants have committed acts of
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`patent infringement within the State of Texas and, more particularly, within the Eastern
`
`District of Texas.
`
`THE PATENTS
`
`8.
`
`United States Letters Patent No. 8,019,332 (“the ’332 Patent”), entitled
`
`“Method for Transmitting and Receiving Control Information Through PDCCH,” was duly
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`and legally issued after full and fair examination to inventors Dae Won Lee, Ki Jun Kim,
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`Dong Wook Roh, Yu Jin Noh, Joon Kui Ahn and Jung Hoon Lee on September 13, 2011.
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`Optis Cellular owns by assignment the entire right, title, and interest in the ’332 Patent, is
`
`entitled to sue for past and future infringement and possesses the right to license the ’332
`
`Patent, a copy of which is attached as Exhibit A.
`
`9.
`
`United States Letters Patent No. 8,102,833 (“the ’833 Patent”), entitled
`
`“Method for Transmitting Uplink Signals,” was duly and legally issued after full and fair
`
`examination to inventors Dae Won Lee, Bong Hoe Kim, Young Woo Yun, Ki Jun Kim,
`
`Dong Wook Roh, Hak Seong Kim and Hyun Wook Park on January 24, 2012. Optis Cellular
`
`owns by assignment the entire right, title, and interest in the ’833 Patent, is entitled to sue
`
`for past and future infringement and possesses the right to license the ’833 Patent, a copy of
`
`which is attached as Exhibit B.
`
`10.
`
`United States Letters Patent No. 8,437,293 (“the ’293 Patent”), entitled
`
`“Methods and Systems for Scheduling Resources in a Telecommunication System,” was
`
`duly and legally issued after full and fair examination to inventors Kristina Jersenius,
`
`Henning Wiemann, Anna Larmo, Peter Moberg and Eva Englund on May 7, 2013. Optis
`
`Cellular owns by assignment the entire right, title, and interest in the ’293 Patent, is entitled
`
`to sue for past and future infringement and possesses the right to license the ’293 Patent, a
`
`copy of which is attached as Exhibit C.
`
`11.
`
`United States Letters Patent No. 8,174,506 (“the ’506 Patent”), entitled
`
`“Method of Displaying Object and Terminal Capable of Implementing the Same,” was duly
`
`and legally issued after full and fair examination to inventors Tae Hun Kim, Boem Young
`
`Woo, Jeong Hyuk Yoon, Hyun Ju Ahn, Seung Sook Han, Jun Serk Park and Ho Sang Cheon
`
`-4-
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`on May 8, 2012. Optis Cellular owns by assignment the entire right, title, and interest in the
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`’506 Patent, is entitled to sue for past and future infringement and possesses the right to
`
`license the ’506 Patent, a copy of which is attached as Exhibit D.
`
`12.
`
`The ’332, ’833, ’293, and ’506 Patents (collectively, the “Asserted Patents”)
`
`are each valid and enforceable.
`
`13.
`
`By way of written agreement between PPM and Optis Cellular, PPM
`
`possesses the rights to negotiate and execute licenses for each of the Asserted Patents.
`
`FACTUAL BACKGROUND
`
`14.
`
`The Asserted Patents cover inventions relating to wireless communications,
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`mobile telephones and other devices for use in a mobile communications network.
`
`15.
`
`The Defendants have imported into the United States, marketed, offered for
`
`sale and/or sold in the United States, mobile telephones and other devices for use in a mobile
`
`communications network that infringe the Asserted Patents, or induce or contribute to the
`
`infringement of the Asserted Patents by others.
`
`16.
`
`The Defendants have been placed on actual notice of one or more of the
`
`Asserted Patents. The filing of this Complaint also constitutes notice in accordance with 35
`
`U.S.C. § 287. Despite such notice, the Defendants continue to import into, market, offer for
`
`sale and/or sell in the United States products that infringe the Asserted Patents.
`
`17.
`
`The Defendants have, and continue to, directly and indirectly infringe the
`
`Asserted Patents by engaging in acts constituting infringement under 35 U.S.C. § 287(a),
`
`(b), (c), and/or (f), including but not necessarily limited to one or more of making, using,
`
`testing, selling and/or offering to sell, in this District and elsewhere in the United States, and
`
`importing into this District and elsewhere in the United States, certain infringing mobile
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`communication devices, including but not limited to Defendants’ mobile telephones, tablets,
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`mobile hotspots, and digital projectors, which incorporate the functionalities and
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`compositions described in detail in Counts I-IV (collectively, “ZTE Mobile Communication
`
`Devices”).
`
`18.
`
`The infringing ZTE Mobile Communication Devices include, but are not
`
`limited to, UNICO LTE, Anthem™ 4G, Avid™ 4G, Max™, Warp 4G, Compel™, Flash™,
`
`Force, Grand S Pro™, Grand X Max +, Grand Memo II, Grand X LTE, Imperial™,
`
`Imperial™ II, ZMAXTM 2, Savvy, Valet, Allstar LTE, Lever LTE, Maven™, Nubia 5S mini
`
`LTE, Overture™, Overture™ 2, Rapido LTE, Source™, Speed™, Supreme™, Vital™,
`
`Warp Sync™, Z998, ZMAX™, Home Base™/Home Base™ (GoPhone), zPad, Pocket
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`WiFi, LivePro™, 4G LTE Hotspot Z915, Sonic 2.0 Mobile Hotspot LTE, Spro 2, Unite™,
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`Unite™ II, Velocity™, JetPack™ 890L, 4G LTE™ Router with Voice, and all variations
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`thereof.
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`19.
`
`Defendants’ acts of infringement have caused damage to Plaintiffs. Plaintiffs
`
`are entitled to recover from Defendants the damages sustained by Plaintiffs as a result of
`
`Defendants’ wrongful acts.
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`PLAINTIFFS’ LTE STANDARDS-ESSENTIAL PATENTS
`
`20.
`
`21.
`
`Plaintiffs incorporate by reference paragraphs 1-19 as if fully set forth herein.
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`The European Telecommunications Standards Institute (“ETSI”) is a
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`standard setting organization (“SSO”) that produces globally-accepted standards for the
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`telecommunications industry. ETSI is an organizational partner of the Third Generation
`
`Partnership Project (“3GPP”), which maintains and develops globally applicable technical
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`specifications for mobile systems, including the specifications for implementation and use
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`of wireless communications for high-speed data referred to as the Long Term Evolution
`
`(“LTE”) Standards.
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`22.
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`Implementation and use of the LTE Standards, including but not limited to
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`use of wireless communications for high-speed data compliant with the LTE specifications
`
`as detailed in the 3GPP specification series TS 36.101-36.978, has increased in recent years
`
`and continues to increase at a rapid pace.
`
`23.
`
`ETSI has developed and promulgated an IPR Policy (found at Annex 6 to the
`
`ETSI Rules of Procedure, published November 19, 2014). This policy is intended to strike
`
`a balance between the needs of standardization for public use in the field of
`
`telecommunications on the one hand, and the rights of IPR owners on the other hand. ETSI
`
`requires its members to disclose the patents that “are or become, and remain ESSENTIAL
`
`to practice” its standards or technical specifications. Clause 15.6 of the ETSI IPR Policy
`
`defines the term “ESSENTIAL” to mean that “it is not possible on technical (but not
`
`commercial) grounds, taking into account normal technical practice and the state of the art
`
`generally available at the time of standardization, to make, sell, lease, otherwise dispose of,
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`repair, use or operate EQUIPMENT or METHODS which comply with a STANDARD
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`without infringing that IPR.”
`
`24.
`
`Optis Cellular is the assignee of numerous patents, originally assigned to
`
`either LG Electronics, Inc. (“LG”), Telefonaktiebolaget LM Ericsson (“Ericsson”) or
`
`Panasonic Corporation (“Panasonic”), that are, and remain, essential (as that term is defined
`
`by ETSI) to practicing the LTE Standards.
`
`25.
`
`LG, the original assignee of the ’833 and ’332 Patents, declared these patents
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`as essential to practicing the LTE Standards. Optis Cellular, upon acquisition of the ’833
`
`and ’332 Patents from LG, re-declared these patents to ETSI as essential to practicing the
`
`LTE Standards, in conformance with ETSI’s IPR Policy.
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`26.
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`Ericsson, the original assignee of the ’293 Patent (collectively with the ’833
`
`and ’332 Patents, “LTE Essential Patents”), declared the patent as essential to practicing the
`
`LTE Standards. Optis Cellular, upon acquisition of the ’293 Patent from Ericsson, re-
`
`declared the patent to ETSI as essential to practicing the LTE Standards, in conformance
`
`with ETSI’s IPR Policy.
`
`27.
`
`Plaintiffs, in conformance with ETSI’s IPR Policy, have informed
`
`Defendants that Plaintiffs are prepared to grant Defendants an irrevocable license under the
`
`LTE Essential Patents on terms and conditions that are Fair, Reasonable and Non-
`
`Discriminatory (“FRAND”).
`
`28.
`
`Defendants require a license to Plaintiffs’ LTE Essential Patents because ZTE
`
`Mobile Communication Devices are configured to, and do, operate in compliance with the
`
`LTE Standards, and thus infringe the LTE Essential Patents.
`
`29.
`
`Since April 2, 2014, Plaintiffs have engaged in good-faith efforts to license
`
`ZTE on FRAND terms. Between May 2014 and December 2014, representatives from
`
`Plaintiffs, at their own expense, traveled and met face-to-face with ZTE representatives six
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`times in various locations throughout Asia, including Xian, China; Shenzhen, China; Hong
`
`Kong; and Seoul, South Korea. During those meetings, Plaintiffs presented, in good faith,
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`material concerning Plaintiffs’ LTE Essential Patents, along with FRAND terms for the LTE
`
`Essential Patents. In addition to meeting with ZTE on numerous times in Asia, Plaintiffs
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`have initiated and exchanged written correspondence with ZTE and have contacted ZTE by
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`phone on numerous occasions. Plaintiffs have also provided ZTE with a number of
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`exemplary claim charts showing infringement by ZTE’s products that are configured to
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`operate in compliance with the LTE Standards.
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`30.
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`To date, ZTE has not reciprocated Plaintiffs’ good-faith efforts. ZTE has
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`instead resisted taking a license to Plaintiffs’ valuable intellectual property.
`
`31.
`
`ZTE has been operating and continues to operate without a license to
`
`Plaintiffs’ LTE Essential Patents. Given ZTE’s unwillingness to engage in meaningful
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`licensing discussions, to license Plaintiffs’ LTE Essential Patents, or to cease infringing
`
`Plaintiffs’ patents, Plaintiffs have filed this lawsuit for the purpose of protecting their patent
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`rights in the United States.
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`COUNT I.
`
`CLAIM FOR PATENT INFRINGEMENT OF THE ’332 PATENT
`
`32.
`
`PanOptis repeats and realleges the allegations in paragraphs 1-31 as though
`
`fully set forth herein.
`
`33.
`
`Defendants have directly infringed and continue to directly infringe the ’332
`
`Patent by making, using, selling, offering for sale, or importing into the United States, or by
`
`intending that others make, use, import into, offer for sale, or sell in the United States,
`
`products and/or methods covered by one or more claims of the ’332 Patent including, but
`
`not limited to, mobile telephones, tablets, mobile hotspots, and digital projectors. The
`
`accused wireless communication devices that infringe one or more claims of the ’332 Patent
`
`include, but are not limited to, at least the UNICO LTE, Anthem™ 4G, Avid™ 4G, Max™,
`
`Warp 4G, Compel™, Flash™, Force, Grand S Pro™, Grand X Max +, Grand Memo II,
`
`Grand X LTE, Imperial™, Imperial™ II, Allstar LTE, Lever LTE, Maven™, Nubia 5S mini
`
`LTE, Overture™, Overture™ 2, Rapido LTE, Source™, Speed™, Supreme™, Vital™,
`
`Warp Sync™, Z998, ZMAX™, ZMAXTM 2, Home Base™/Home Base™ (GoPhone), zPad,
`
`Pocket WiFi, LivePro™, 4G LTE Hotspot Z915, Sonic 2.0 Mobile Hotspot LTE, Spro 2,
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`Unite™, Unite™ II, Velocity™, JetPack™ 890L, and 4G LTE™ Router with Voice.
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`Further discovery may reveal additional infringing products and/or models.
`
`34.
`
`Defendants have and continue to indirectly infringe the ’332 Patent by
`
`inducing infringement by others of one or more claims, in accordance with 35 U.S.C.
`
`§ 271(b) in this District and elsewhere in the United States.
`
`35.
`
`ZTE received actual notice of the ’332 Patent at least as early as July 18,
`
`2014, by way of correspondence that Optis Cellular sent to ZTE.
`
`36.
`
`ZTE, its manufacturers, resellers, distributors and end-users of the ZTE
`
`Mobile Communication Devices have engaged in and currently engage in activities that
`
`constitute direct infringement of one or more claims of the ’332 Patent.
`
`37.
`
`For example and without limitation, operation and use of the ZTE Mobile
`
`Communication Devices (including but not limited to the UNICO LTE, Anthem™ 4G,
`
`Avid™ 4G, Max™, Warp 4G, Compel™, Flash™, Force, Grand S Pro™, Grand X Max +,
`
`Grand Memo II, Grand X LTE, Imperial™, Imperial™ II, Allstar LTE, Lever LTE,
`
`Maven™, Nubia 5S mini LTE, Overture™, Overture™ 2, Rapido LTE, Source™, Speed™,
`
`Supreme™, Vital™, Warp Sync™, Z998, ZMAX™, ZMAXTM 2, Home Base™/Home
`
`Base™ (GoPhone), zPad, Pocket WiFi, LivePro™, 4G LTE Hotspot Z915, Sonic 2.0 Mobile
`
`Hotspot LTE, Spro 2, Unite™, Unite™ II, Velocity™, JetPack™ 890L, and 4G LTE™
`
`Router with Voice), which incorporate functionalities and associated software and hardware
`
`components installed and configured by ZTE in compliance with the LTE Standards,
`
`including but not limited to 3GPP TS 36.201 Sections 1 and 4 and 3GPP TS 36.213 Section
`
`9, infringe one or more claims of the ’332 Patent, including but not limited to claim 1.1 The
`
`
`1 PanOptis incorporates by reference its Disclosure of Asserted Claims and Infringement Contentions
`pursuant to Local Patent Rule 3-1.
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`use and operation of these ZTE Mobile Communication Devices by ZTE, its resellers,
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`manufacturers, or end-user customers constitutes a direct infringement of one or more claims
`
`of the ’332 Patent.
`
`38.
`
`ZTE’s affirmative acts of selling the ZTE Mobile Communication Devices,
`
`causing the ZTE Mobile Communication Devices to be manufactured, and providing
`
`instruction manuals and support for the ZTE Mobile Communication Devices have induced
`
`and continue to induce ZTE’s manufacturers, resellers, and end-users to make or use the
`
`ZTE Mobile Communication Devices in their normal and customary way to infringe one or
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`more claims of the ’332 Patent.
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`39.
`
`Through its manufacture and sale of the ZTE Mobile Communication
`
`Devices, Defendants specifically intend that ZTE’s manufacturers, resellers and end-users
`
`directly infringe one or more claims of the ’332 Patent. ZTE has knowledge of the ’332
`
`Patent and actually induces others, such as resellers, manufacturers and end-use customers,
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`to directly infringe by using, selling exporting, supplying and/or distributing within the
`
`United States ZTE Communication Devices for resale to others, such as resellers and end-
`
`use customers. ZTE is aware that such actions would induce actual infringement. Further,
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`Defendants remain aware that these normal and customary activities would infringe the ’332
`
`Patent.
`
`40.
`
`For example and without limitation, in connection with its sale, offering to
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`sell, importation into the United States, and distributing within the United States of the ZTE
`
`Mobile Communication Devices, Defendants willfully provide manuals and support to
`
`resellers and end-use customers regarding the use and operation of ZTE’s products in a way
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`that infringes one or more claims of the ’332 Patent. Specifically, ZTE willfully provides
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`manuals and support through sales of the ZTE Communication Devices, through its website
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`http://www.zteusa.com/2, by telephone, and through other means of communication. When
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`resellers and end-use customers follow such instructions and support, they directly infringe
`
`the ’332 Patent. ZTE knows or should have known that by willfully providing such
`
`instructions and support, resellers and end-use customers follow those instructions and
`
`support, and directly infringe the ’332 Patent.
`
`41.
`
`Accordingly, ZTE has performed and continues to perform the acts that
`
`constitute indirect infringement, and would induce actual infringement, with the knowledge
`
`of the ’332 Patent and with the knowledge or willful blindness to the fact that the induced
`
`acts would constitute infringement.
`
`42.
`
`ZTE indirectly infringes one or more claims of the ’332 Patent by
`
`contributing to infringement by others, such as manufacturers, resellers and end-use
`
`customers, in accordance with 35 U.S.C. § 271(c) in this District and elsewhere in the United
`
`States.
`
`43.
`
`Direct infringement of one or more claims of the ’332 Patent is the result of
`
`activities performed by ZTE, its manufacturers, resellers, distributors and end-users of the
`
`ZTE Mobile Communication Devices.
`
`44.
`
`The ZTE Mobile Communication Devices (including but not limited to the
`
`UNICO LTE, Anthem™ 4G, Avid™ 4G, Max™, Warp 4G, Compel™, Flash™, Force,
`
`Grand S Pro™, Grand X Max +, Grand Memo II, Grand X LTE, Imperial™, Imperial™ II,
`
`
`2 For example, the ZTE “Grand Max X+” manual is available at http://www.zteusa.com/media/wysiwyg/grand-
`grandmaxplus/
`ZTE_Grand_X_Max_User_Guide_English_-_PDF_-_3.16MB_.pdf (last accessed December 3, 2015). ZTE
`includes instructions to a user or reseller of the Grand Max X+, and is aware that the ’332 Patent is infringed
`when those instructions are followed. Manuals and support for each of the infringing ZTE Mobile
`Communications Devices are available at www.zteusa.com.
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`Allstar LTE, Lever LTE, Maven™, Nubia 5S mini LTE, Overture™, Overture™ 2, Rapido
`
`LTE, Source™, Speed™, Supreme™, Vital™, Warp Sync™, Z998, ZMAX™, ZMAXTM 2,
`
`Home Base™/Home Base™ (GoPhone), zPad, Pocket WiFi, LivePro™, 4G LTE Hotspot
`
`Z915, Sonic 2.0 Mobile Hotspot LTE, Spro 2, Unite™, Unite™ II, Velocity™, JetPack™
`
`890L, and 4G LTE™ Router with Voice), incorporate functionalities and associated
`
`software and hardware components installed and configured by ZTE in compliance with the
`
`LTE Standards, including but not limited to 3GPP TS 36.201 Sections 1 and 4 and 3GPP TS
`
`36.213 Section 9, infringe one or more claims of the ’332 Patent, including but not limited
`
`to claim 1.3 On information and belief, these functions and operations cannot work in an
`
`acceptable manner absent theses software and hardware components that Defendants
`
`configure, install, and include in the ZTE Mobile Communication Devices for the purposes
`
`of performing such functions and operations. On information and belief, ZTE has designed,
`
`configured, and installed such software and hardware to entice users of the ZTE Mobile
`
`Communication Devices to use and operate these functionalities and to do so in a manner
`
`compliant with the LTE Standards.
`
`45.
`
`The software and hardware components installed and configured by ZTE in
`
`compliance with the above LTE Standards, do not constitute a staple article or commodity
`
`of commerce. Moreover, use of the same is required for the operation of a ZTE Mobile
`
`Communication Device. Any other use would be unusual, far-fetched, illusory, impractical,
`
`occasional, aberrant, or experimental.
`
`46.
`
`The software and hardware components installed and configured by
`
`Defendants in compliance with the above LTE Standards are each a material part of the
`
`
`3 PanOptis incorporates by reference its Disclosure of Asserted Claims and Infringement Contentions
`pursuant to Local Patent Rule 3-1.
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`invention of the ’332 Patent, are especially made for the infringing manufacture, sale and
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`use of ZTE Mobile Communication Devices, and have no substantial non-infringing uses.
`
`47.
`
`Accordingly, Defendants offer to sell, or sell within the United States a
`
`component of a patented machine, manufacture, combination, or composition, or a material
`
`or apparatus for use in practicing the ’332 Patent, constituting a material part of the
`
`invention, knowing the same to be especially made or especially adapted for use in an
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`infringement of such patent, and not a staple article or commodity of commerce suitable for
`
`substantial non-infringing use. Defendants provide to others ZTE Mobile Communication
`
`Devices with distinct and separate components that have no substantial non-infringing uses.
`
`48.
`
`Defendants’ continued infringement of the ’332 Patent has damaged and will
`
`continue to damage PanOptis.
`
`COUNT II.
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`CLAIM FOR PATENT INFRINGEMENT OF THE ’833 PATENT
`
`49.
`
`PanOptis repeats and realleges the allegations in paragraphs 1-48 as though
`
`fully set forth herein.
`
`50.
`
`Defendants have directly infringed and continues to directly infringe the ’833
`
`Patent by making, using, selling, offering for sale, or importing into the United States, or by
`
`intending that others make, use, import into, offer for sale, or sell in the United States,
`
`products and/or methods covered by one or more claims of the ’833 Patent including, but
`
`not limited to, mobile telephones, tablets, mobile hotspots, and digital projectors. The
`
`accused wireless communication devices that infringe the one or more claims of the ’833
`
`Patent include, but are not limited to, at least the UNICO LTE, Anthem™ 4G, Avid™ 4G,
`
`Max™, Warp 4G, Compel™, Flash™, Force, Grand S Pro™, Grand X Max +, Grand Memo
`
`II, Grand X LTE, Imperial™, Imperial™ II, Allstar LTE, Lever LTE, Maven™, Nubia 5S
`
`-14-
`
`

`

`Case 2:16-cv-00058 Document 1 Filed 01/17/16 Page 15 of 33 PageID #: 15
`
`mini LTE, Overture™, Overture™ 2, Rapido LTE, Source™, Speed™, Supreme™, Vital™,
`
`Warp Sync™, Z998, ZMAX™, ZMAXTM 2, Home Base™/Home Base™ (GoPhone), zPad,
`
`Pocket WiFi, LivePro™, 4G LTE Hotspot Z915, Sonic 2.0 Mobile Hotspot LTE, Spro 2,
`
`Unite™, Unite™ II, Velocity™, JetPack™ 890L, and 4G LTE™ Router with Voice.
`
`Further discovery may reveal additional infringing products and/or models.
`
`51.
`
`Defendants have and continue to indirectly infringe the ’833 Patent by
`
`inducing infringement by others of one or more claims, in accordance with 35 U.S.C.
`
`§ 271(b) in this District and elsewhere in the United States.
`
`52.
`
`ZTE received actual notice of the ’833 Patent at least as early as July 18,
`
`2014, by way of correspondence that Optis Cellular sent to ZTE.
`
`53.
`
`ZTE, its manufacturers, resellers, distributors and end-users of the ZTE
`
`Mobile Communication Devices have engaged in and currently engage in activities that
`
`constitute direct infringement of one or more claims of the ’833 Patent.
`
`54.
`
`For example and without limitation, operation and use of the ZTE Mobile
`
`Communication Devices (including but not limited to the UNICO LTE, Anthem™ 4G,
`
`Avid™ 4G, Max™, Warp 4G, Compel™, Flash™, Force, Grand S Pro™, Grand X Max +,
`
`Grand Memo II, Grand X LTE, Imperial™, Imperial™ II, Allstar LTE, Lever LTE,
`
`Maven™, Nubia 5S mini LTE, Overture™, Overture™ 2, Rapido LTE, Source™, Speed™,
`
`Supreme™, Vital™, Warp Sync™, Z998, ZMAX™, ZMAXTM 2, Home Base™/Home
`
`Base™ (GoPhone), zPad, Pocket WiFi, LivePro™, 4G LTE Hotspot Z915, Sonic 2.0 Mobile
`
`Hotspot LTE, Spro 2, Unite™, Unite™ II, Velocity™, JetPack™ 890L, and 4G LTE™
`
`Router with Voice), which incorporate functionalities and associated software and hardware
`
`components installed and configured by ZTE in compliance with the LTE Standards,
`
`-15-
`
`

`

`Case 2:16-cv-00058 Document 1 Filed 01/17/16 Page 16 of 33 PageID #: 16
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`including but not limited to 3GPP TS 36.201 Sections 1 and 4, and 3GPP TS 36.212 Section
`
`5, infringe one or more claims of the ’833 Patent, including but not limited to claim 1.4 The
`
`use and operation of these ZTE Mobile Communication Devices by ZTE, its resellers,
`
`manufacturers, or end-user customers constitutes a direct infringement of one or more claims
`
`of the ’833 Patent.
`
`55.
`
`ZTE’s affirmative acts of selling the ZTE Mobile Communication Devices,
`
`causing the ZTE Mobile Communication Devices to be manufactured, and providing
`
`instruction manuals and support for the ZTE Mobile Communication Devices have induced
`
`and continue to induce ZTE’s manufacturers, resellers, and end-users to make or use the
`
`ZTE Mobile Communication Devices in their normal and customary way to infringe one or
`
`more claims of the ’833 Patent.
`
`56.
`
`Through its manufacture and sale of the ZTE Mobile Communication
`
`Devices, Defendants specifically intend that ZTE’s manufacturers, resellers and end-users
`
`directly infringe one or more claims of the ’833 Patent. ZTE has knowledge of the ’833
`
`Patent and actually induces others, such as resellers, manufacturers and end-use customers,
`
`to directly infringe by using, selling exporting, supplying and/or distributing within the
`
`United States ZTE Communication Devices for resale to others, such as resellers and end-
`
`use customers. ZTE is aware that such actions would induce actual infringement. Further,
`
`Defendants remain aware that these normal and customary activities would infringe the ’833
`
`Patent.
`
`57.
`
`For example and without limitation, in connection with its sale, offering to
`
`sell, importation into the United States, and distributing within the United States of the ZTE
`
`
`4 PanOptis incorporates by reference its Disclosure of Asserted Claims and Infringement Contentions
`pursuant to Local Patent Rule 3-1.
`
`-16-
`
`

`

`Case 2:16-cv-00058 Document 1 Filed 01/17/16 Page 17 of 33 PageID #: 17
`
`Mobile Communication Devices, Defendants willfully provide manuals and support to
`
`resellers and end-use customers regarding the use and operation of ZTE’s products in a way
`
`that infringes one or more claims of the ’833 Patent. Specifically, ZTE willfully provides
`
`manuals and support through sales of the ZTE Communication Devices, through its website
`
`http://www.zteusa.com/5, by telephone, and through other means of communication. When
`
`resellers and end-use customers follow such instructions and support, they directly infringe
`
`the ’833 Patent. ZTE knows or should have known that by willfully providing such
`
`instructions and support, resellers and end-use customers follow those instructions and
`
`support, and directly infringe the ’833 Patent.
`
`58.
`
`Accordingly, ZTE has performed and continues to perform the acts that
`
`constitute indirect infringement, and would induce actual infringement, with the knowledge
`
`of the ’833 Patent and with the knowledge or willful blindness to the fact that the induced
`
`acts would constitute infringement.
`
`59.
`
`ZTE indirectly infringes one or more claims of the ’833 Patent by
`
`contributing to infringement by others, such as manufacturers, resellers and end-use
`
`customers, in accordance with 35 U.S.C. § 271(c) in this District and elsewhere in the United
`
`States.
`
`60.
`
`Direct infringement of one or more claims of the ’833 Patent is the result of
`
`activities performed by ZTE, its manufacturers, resellers, distributors and end-users of the
`
`ZTE Mobile Communication Devices.
`
`
`5 For example, the ZTE “Grand Max X+” manual is available at http://www.zteusa.com/media/wysiwyg/grand-
`grandmaxplus/
`ZTE_Grand_X_Max_User_Guide_English_-_PDF_-_3.16MB_.pdf (last accessed December 3, 2015). ZTE
`includes instructions to a user or reseller of the Grand Max X+, and is aware that the ’833 Patent is infringed
`when those instructions are followed. Manuals and support for each o