Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 1 of 44 PageID #: 675
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`
`OPTIS WIRELESS TECHNOLOGY, LLC,
`OPTIS CELLULAR TECHNOLOGY, LLC,
`AND PANOPTIS PATENT MANAGEMENT,
`LLC,
`
`Plaintiffs,
`
`v.
`
`HUAWEI TECHNOLOGIES CO. LTD,
`HUAWEI DEVICE USA, INC., AND HUAWEI
`DEVICE CO. LTD
`
`Defendants.
`
`Civil Action No. 2:17-cv-123
`
`JURY TRIAL REQUESTED
`
`PLAINTIFFS’ THIRD AMENDED COMPLAINT FOR PATENT INFRINGEMENT
`
`Plaintiffs Optis Wireless Technology, LLC, Optis Cellular Technology, LLC, and
`
`PanOptis Patent Management, LLC (collectively, “PanOptis”) file this Third Amended
`
`Complaint for patent infringement under 35 U.S.C. § 271 against Huawei Technologies Co. Ltd.,
`
`Huawei Device USA, Inc., and Huawei Device Co. Ltd. (collectively, “Huawei”), and allege as
`
`follows:
`
`NATURE OF THE ACTION
`
`1.
`
`This is an action for patent infringement. Huawei has infringed and continues to
`
`infringe, contribute to the infringement of, and/or actively induce others to infringe U.S. Patent
`
`Nos. 7,769,238 (“the ’238 patent”), 6,604,216 (“the ’216 patent”), 7,940,851 (“the ’851 patent”),
`
`8,385,284 (“the ’284 patent”), 8,208,569 (“the ’569 patent”), 8,102,833 (“the ’833 patent”), and
`
`8,437,293 (“the ’293 patent”) (collectively, “the Asserted Patents” or “the Patents-in-Suit”).
`
`1
`
`IPR2020-00465
`APPLE v. OPTIS
`APPLE 1065
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`

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`Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 2 of 44 PageID #: 676
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`PARTIES
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`2.
`
`Plaintiff Optis Wireless Technology, LLC (“Optis Wireless”) is a limited liability
`
`company organized and existing under the laws of the State of Delaware, and maintains its
`
`principal place of business at 7160 Dallas Parkway, Suite 250, Plano, TX 75024.
`
`3.
`
`Plaintiff Optis Cellular Technology, LLC (“Optis Cellular”) is a limited liability
`
`company organized and existing under the laws of the State of Delaware, and maintains its
`
`principal place of business at 7160 Dallas Parkway, Suite 250, Plano, TX 75024.
`
`4.
`
`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
`
`principal place of business at 7160 Dallas Parkway, Suite 250, Plano, TX 75024.
`
`5.
`
`Upon
`
`information and belief, Huawei Technologies Co. Ltd. (“Huawei
`
`Technologies”) is a Chinese corporation with its principal place of business at Bantian,
`
`Longgang District, Shenzhen, People’s Republic of China.
`
`6.
`
`Upon information and belief, Huawei Device USA, Inc. (“Huawei Device”) is a
`
`corporation organized under the laws of Texas, having its principal place of business at 5700
`
`Tennyson Parkway, Suite 500, Plano, Texas 75024.
`
`7.
`
`Upon information and belief, Huawei Device Co. Ltd. (“Huawei Device China”)
`
`is a Chinese corporation with its principal place of business at Bantian, Longgang District,
`
`Shenzhen, People’s Republic of China.
`
`JURISDICTION AND VENUE
`
`8.
`
`This Court has exclusive subject matter jurisdiction over this case under 28
`
`U.S.C. §§ 1331 and 1338.
`
`9.
`
`Venue is proper in this Court pursuant to 28 U.S.C. §§ 1391 and 1400(b) because
`
`Huawei has committed acts of infringement in this judicial district and is subject to personal
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`2
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`Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 3 of 44 PageID #: 677
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`jurisdiction in this judicial district.
`
`10.
`
`This Court has personal jurisdiction over Huawei. Huawei Device is organized
`
`under the laws of Texas, and maintains its principal place of business in this District. Huawei has
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`continuous and systematic business contacts with the State of Texas. Huawei, directly or through
`
`subsidiaries or intermediaries (including distributors, retailers, and others), conducts its business
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`extensively throughout Texas, by shipping, distributing, offering for sale, selling, and advertising
`
`(including the provision of interactive web pages) its products and services (including its
`
`infringing products and services) in the State of Texas and the Eastern District of Texas. Huawei,
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`directly and through subsidiaries or intermediaries (including distributors, retailers, and others),
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`has purposefully and voluntarily placed its infringing products and services into this District and
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`into the stream of commerce with the intention and expectation that they will be purchased and
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`used by consumers in this District. These infringing products and services have been and
`
`continue to be purchased and used by consumers in this District. Huawei has committed acts of
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`patent infringement within the State of Texas and, more particularly, within this District.
`
`Jurisdiction over Huawei in the matter is also proper inasmuch as Huawei has voluntarily
`
`submitted itself to the jurisdiction of the courts by commencing litigations within the State of
`
`Texas (including in this District), by registering with the Texas Secretary of State’s Office to do
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`business in the State of Texas, and by appointing a registered agent.
`
`THE PANOPTIS PATENTS
`
`11.
`
`On August 3, 2010, the ’238 patent was duly and legally issued for an invention
`
`titled, “Picture Coding Method and Picture Decoding Method.” PanOptis owns all rights to the
`
`’238 patent necessary to bring this action. A true and correct copy of the ’238 patent is attached
`
`hereto as Exhibit 1.
`
`12.
`
`On August 5, 2003, the ’216 patent was duly and legally issued for an invention
`
`3
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`Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 4 of 44 PageID #: 678
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`titled, “Telecommunications System and Method for Supporting an Incremental Redundancy
`
`Error Handling Scheme Using Available Gross Rate Channels.” PanOptis owns all rights to the
`
`’216 patent necessary to bring this action. A true and correct copy of the ’216 patent is attached
`
`hereto as Exhibit 2.
`
`13.
`
`On May 10, 2011, the ’851 patent was duly and legally issued for an invention
`
`titled, “Radio Communication Apparatus and Radio Communication Method.” PanOptis owns
`
`all rights to the ’851 patent necessary to bring this action. A true and correct copy of the ’851
`
`patent is attached hereto as Exhibit 3.
`
`14.
`
`On February 26, 2013, the ’284 patent was duly and legally issued for an
`
`invention titled, “Control Channel Signaling Using a Common Signaling Field for Transport
`
`Format and Redundancy Version.” PanOptis owns all rights to the ’284 patent necessary to bring
`
`this action. A true and correct copy of the ’284 patent is attached hereto as Exhibit 4.
`
`15.
`
`On June 26, 2012, the ’569 patent was duly and legally issued for an invention
`
`titled, “Method and Apparatus for Multicarrier Communication.” PanOptis owns all rights to the
`
`’569 patent necessary to bring this action. A true and correct copy of the ’569 patent is attached
`
`hereto as Exhibit 5.
`
`16.
`
`On January 24, 2012, the ’833 patent was duly and legally issued for an invention
`
`titled, “Method for Transmitting Uplink Signals.” PanOptis owns all rights to the ’833 patent
`
`necessary to bring this action. A true and correct copy of the ’833 patent is attached hereto as
`
`Exhibit 6.
`
`17.
`
`On May 7, 2013, the ’293 patent was duly and legally issued for an invention
`
`titled, “Methods and Systems for Scheduling Resources in a Telecommunication System.”
`
`PanOptis owns all rights to the ’293 patent necessary to bring this action. A true and correct copy
`
`
`
`
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`4
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`Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 5 of 44 PageID #: 679
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`of the ’293 patent is attached hereto as Exhibit 7.
`
`PLAINTIFFS’ LTE STANDARDS ESSENTIAL PATENTS
`
`18.
`
`PanOptis incorporates by reference the preceding paragraphs as though fully set
`
`forth herein.
`
`19.
`
`The European Telecommunications Standards Institute (“ETSI”) is a standard
`
`setting organization
`
`(“SSO”)
`
`that produces globally-accepted
`
`standards
`
`for
`
`the
`
`telecommunication industry. ETSI is an organizational partner of the Third Generation
`
`Partnership Project (“3GPP”), which maintains and develops globally applicable technical
`
`specifications for mobile systems, including the specifications for implementation and use of
`
`wireless communications for high-speed data referred to as the Long Term Evolution (“LTE”)
`
`Standard.
`
`20.
`
`Implementation and use of the LTE standard, including, but not limited to, 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.
`
`21.
`
`ETSI has developed and promulgated an IPR Policy (found at Annex 6 to the
`
`ESTI 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 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, repair, use or operate EQUIPMENT or
`
`
`5
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`Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 6 of 44 PageID #: 680
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`METHODS which comply with a STANDARD without infringing that IPR.”
`
`22.
`
`Optis Wireless is the assignee of numerous patents, originally assigned to either
`
`Telefonaktiebolaget LM Ericsson (“Ericsson”) or Panasonic Corporation (“Panasonic”), that are,
`
`and remain, essential (as that term is defined by ETSI) to practicing the LTE Standard.
`
`23.
`
`Optis Cellular is the assignee of numerous patents, originally assigned to either
`
`Ericsson or LG Electronics Inc. (“LG”), that are, and remain, essential (as that term is defined by
`
`ETSI) to practicing the LTE Standard.
`
`24.
`
`Ericsson, the original assignee of the ’216 patent, declared that patent as essential
`
`to practicing the LTE Standard in 2009.
`
`25.
`
`Panasonic, the original assignee of the’851, ’284, and ’569 patents, declared those
`
`patents as essential to practicing the LTE Standard. Optis Wireless, upon acquisition of those
`
`patents from Panasonic, re-declared those patents to ETSI as essential to practicing the LTE
`
`Standard.
`
`26.
`
`LG, the original assignee of the ’833 patent, declared that patent as essential to
`
`practicing the LTE Standard in 2009. Optis Cellular, upon acquisition of that patent, re-declared
`
`it to ETSI as essential to practicing the LTE Standard.
`
`27.
`
`Ericsson, the original assignee of the ’293 patent, declared that patent as essential
`
`to practicing the LTE Standard in 2009. Optis Cellular, upon acquisition of that patent, re-
`
`declared it to ETSI as essential to practicing the LTE Standard.
`
`28.
`
`PanOptis, in conformance with ETSI’s IPR Policy, has informed Huawei that
`
`PanOptis is prepared to grant Huawei an irrevocable license to its LTE essential patents,
`
`including the ’216, ’851, ’284,’569, ’833, and ’293 patents, on terms that are Fair, Reasonable,
`
`and Non-Discriminatory (“FRAND”).
`
`
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`6
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`Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 7 of 44 PageID #: 681
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`29.
`
`Huawei requires a license to PanOptis’s LTE essential patents because Huawei
`
`makes, has made, sells, leases, disposes of, repairs, uses, and operates products (including
`
`Huawei’s mobile communication devices) that are configured to, and do, operate in compliance
`
`with the LTE Standard, and thus infringe PanOptis’s LTE essential patents.
`
`30.
`
`In April 2014, PanOptis sent Huawei correspondence that initiated PanOptis’s
`
`good faith efforts to license its LTE essential patents to Huawei on FRAND terms.
`
`31.
`
`On July 18, 2014, PanOptis sent correspondence to Huawei that contained lists of
`
`PanOptis’s patents, including the Patents-in-Suit.
`
`32.
`
`PanOptis representatives, at their own expense, traveled and met face-to-face with
`
`Huawei representatives at least ten times in Hong Kong and Shenzhen, China, on June 5, 2014;
`
`August 28, 2014; November 4, 2014; January 27, 2015; April 8, 2015; June 18, 2015; August 20,
`
`2015; November 13, 2015; February 1, 2016; and May 25, 2016. During those meetings,
`
`PanOptis presented, in good faith, material concerning its LTE essential patents, along with
`
`FRAND terms for its LTE essential patents, including a proposed term sheet for a global license.
`
`33.
`
`In addition to meeting with Huawei numerous times, PanOptis has initiated and
`
`exchanged written correspondence with Huawei and has contacted Huawei by phone on
`
`numerous occasions. PanOptis also provided Huawei with a number of exemplary claim charts
`
`showing infringement by Huawei’s products that are configured to operate in compliance with
`
`the LTE Standard, including, but not limited to, claim charts for the ’569 and ’833 patents.1
`
`34.
`
`On January 27, 2017, PanOptis sent another letter to Huawei, reiterating that it
`
`was prepared to offer, and has offered, to license its standard essential patents on terms that are
`
`FRAND.
`
`1
`PanOptis also provided Huawei with a claim chart showing infringement by Huawei’s products of the ’238
`implementation patent.
`
`
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`7
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`Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 8 of 44 PageID #: 682
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`35.
`
`To date, Huawei has not reciprocated PanOptis’s good faith efforts. Huawei
`
`instead has resisted taking a license to PanOptis’s valuable intellectual property.
`
`36.
`
`Huawei has been operating and continues to operate without a license to
`
`PanOptis’s LTE essential patents. Given Huawei’s unwillingness to engage in meaningful
`
`licensing discussions, to license PanOptis’s LTE essential patents, or to cease infringing
`
`PanOptis’s patents, PanOptis has filed this lawsuit for the purpose of protecting its patent rights
`
`in the United States.
`
`GENERAL ALLEGATIONS
`
`37.
`
`The infringing Huawei devices include, but are not limited to, those devices that
`
`are compatible with the 3GPP Long Term Evolution (“LTE”) Standard and/or that can decode
`
`picture and audio data. This list includes, but is not limited to, the Huawei Nexus 6P, Huawei
`
`Mate 9, Huawei Mate 8, Huawei P8 Lite, Huawei SnapTo, Huawei Ascend Mate 2, Ascend
`
`Mate 7, Huawei Ascend P7, Huawei Mate S, Huawei P8, Huawei P9, Huawei Ascend G7,
`
`Huawei GX8, Huawei G7 Plus, Honor 5X, Honor 6, Honor 7, Honor 8, Huawei Union, Huawei
`
`Vitria, Huawei Vision 3 LTE, Huawei MediaPad T1 8.0, Huawei MediaPad T1 8.0 Pro, and
`
`Huawei MediaPad M3 (collectively, “the Huawei Accused Products”).
`
`38.
`
`Huawei has and continues to directly and indirectly infringe each of the Patents-
`
`in-Suit by engaging in acts constituting infringement under 35 U.S.C. § 271(a), (b), and/or (c),
`
`including, but not necessarily limited to, one or more of making, using, selling, and offering to
`
`sell, in this District and elsewhere in the United States, and importing into the United States, the
`
`Huawei Accused Products.
`
`39.
`
`Huawei and/or its authorized retailers operate stores throughout the United States,
`
`including stores in this District, such as the Best Buy stores in Longview and Tyler, Texas. Upon
`
`information and belief, Huawei and/or its authorized retailers sell and offer to sell the Huawei
`
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`8
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`Accused Products, including those that are configured to connect and operate on an LTE network
`
`and those that can decode picture and audio data. Furthermore, upon information and belief,
`
`Huawei uses the Huawei Accused Products within the United States, including in support of its
`
`promotions and advertisements that highlight the LTE network and picture and audio decoding
`
`capabilities
`
`of
`
`the
`
`Huawei
`
`Accused
`
`Products.
`
`See,
`
`http://www.youtube.com/user/huaweideviceusa/videos;
`
`see
`
`e.g.,
`
`also
`
`http://www.youtube.com/watch?v=eoKRN-2Tb_U (showing the Huawei MediaPad T1 playing a
`
`streaming video).
`
`40.
`
`Huawei takes specific steps to actively induce others, including its customers, to
`
`infringe the Patents-in-Suit with the Huawei Accused Products. Huawei actively induces the
`
`direct infringement of one or more claims of the Patents-in-Suit by others by promoting,
`
`instructing, offering, and encouraging others to use the Huawei Accused Products in an
`
`infringing manner. As an example and without limitation, Huawei actively promotes the use of
`
`its products’ LTE functionality, including for example and without limitation, by way of
`
`authorized resellers, customer service and sales representatives, and/or its internet sales websites.
`
`Such active promotion includes advertising that the Huawei Accused Products possess full 4G
`
`LTE network capabilities and can decode picture and audio data. See, e.g.,
`
`http://www.gethuawei.com/huawei-snapto;
`
`http://www.youtube.com/watch?v=eoKRN-2Tb_U
`
`(showing the Huawei MediaPad T1 playing a streaming video). Given that Huawei was given
`
`notice of the Patents-in-Suit on July 18, 2014, Huawei knows or should know that such sales and
`
`promotions actively induce others to directly infringe one or more claims of the Patents-in-Suit,
`
`including, for example, by prompting them to use the Huawei Accused Products in an infringing
`
`manner. Huawei has performed and continues to perform these affirmative acts with knowledge
`
`
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`9
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`of the Patents-in-Suit and with the intent, or willful blindness, that the induced acts directly
`
`infringe the patents.
`
`41.
`
`As another example, on information and belief, Huawei provides and/or
`
`authorizes the providing of instruction manuals, product manuals, specifications, and other
`
`materials for customers and other users of the Huawei Accused Products that demonstrate how to
`
`make use of the Huawei Accused Products in an infringing manner. For instance, Huawei’s
`
`instruction materials demonstrate to its customers how to connect to and operate the Huawei
`
`Accused Products on LTE networks. And, on information and belief, Huawei knows or should
`
`know that such instruction actively induces others to directly infringe one or more claims of the
`
`Patents-in-Suit.
`
`42.
`
`Additionally, Huawei and/or its authorized retailers operate stores throughout the
`
`United States, including stores in this District that, upon information and belief, sell, promote,
`
`and instruct the use of the Huawei Accused Products by, for example, selling and/or offering for
`
`sale the Huawei Accused Products configured to connect to and operate on LTE networks. For
`
`example, Huawei and/or its authorized resellers offer the Huawei Accused Products for sale in
`
`the United States. See, e.g., http://www.bestbuy.com/site/huawei-honor-8-4g-lte-with-32gb-
`
`memory-cell-phone-unlocked-sapphire-blue/5514802.p?id=bb4796300&skuid=5514802
`
`(showing Huawei Honor 8 4G LTE phones available at Best Buy’s Longview, Texas location as
`
`of February 9, 2017 at 11:00 a.m.).
`
`43.
`
`Furthermore, Huawei makes, uses, sells, offers for sale, and/or imports into the
`
`United States products that contribute to the infringement of one or more claims of the Patents-
`
`in-Suit when used by customers and others for their benefit. For example, Huawei and/or its
`
`authorized retailers sell Huawei Accused Products specifically to make use of the devices’ LTE
`
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`10
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`Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 11 of 44 PageID #: 685
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`and/or picture and audio decoding capabilities. Additionally, the Huawei Accused Products are
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`specifically configured by Huawei and/or its authorized retailers to facilitate the use of the
`
`devices’ LTE and/or picture and audio decoding capabilities. Further, on information and belief,
`
`the Huawei Accused Products and components, once configured, have no substantial uses other
`
`than to operate in an infringing manner (e.g., to practice the LTE standard). On information and
`
`belief, Huawei knows that the Huawei Accused Products and/or components included therein are
`
`specially made or specially adapted for infringement of the Patents-in-Suit, and are not staple
`
`articles or commodities of commerce suitable for substantial non-infringing use.
`
`44.
`
`Huawei’s acts of infringement have caused damage to PanOptis. PanOptis is
`
`entitled to recover from Huawei the past damages sustained by PanOptis as a result of Huawei’s
`
`wrongful acts in an amount subject to proof at trial. PanOptis is also entitled to recover from
`
`Huawei a compulsory future royalty payable on each infringing product sold by Huawei
`
`following trial or that is not captured in the damages awarded to PanOptis.
`
`HUAWEI’S INFRINGEMENT
`
`45.
`
`In the interest of providing detailed averments of infringement, PanOptis has
`
`identified below at least one exemplary claim per patent to demonstrate infringement by one
`
`exemplary product. However, the selection of claims and products should not be considered
`
`limiting, and additional infringing Huawei products and infringed claims of the PanOptis
`
`Patents-in-Suit will be disclosed in compliance with the Court’s rules related to infringement
`
`contentions.
`
`A.
`
`Huawei Makes, Imports, Uses, Sells, and/or Offers for Sale Products and
`Services that Infringe the ’238 Patent.
`
`46.
`
`Huawei’s products at issue include at least the Huawei Nexus 6P, Huawei Mate 9,
`
`Huawei Mate 8, Huawei P8 Lite, Huawei SnapTo, Huawei Ascend Mate 2, Ascend Mate 7,
`
`
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`11
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`Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 12 of 44 PageID #: 686
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`Huawei Ascend P7, Huawei Mate S, Huawei P8, Huawei P9, Huawei Ascend G7, Huawei GX8,
`
`Huawei G7 Plus, Honor 5X, Honor 6, Honor 7, Honor 8, Huawei Union, Huawei Vitria, Huawei
`
`Vision 3 LTE, Huawei MediaPad T1 8.0, Huawei MediaPad T1 8.0 Pro, and Huawei MediaPad
`
`M3 (collectively, “the ’238 Accused Products”).
`
`47.
`
`The ’238 Accused Products infringe the ’238 patent. For example, the Nexus 6P
`
`infringes claim 1 of the ’238 patent.
`
`48.
`
`The ’238 Accused Products comprise a receiving apparatus which receives
`
`multiplexed data which is obtained by multiplexing coded audio data and coded picture data. For
`
`example, the ’238 Accused Products are capable of receiving media streams or files, e.g.,
`
`ISO/IEC 14496-15 AVC file format, IS/IEC 14496-12 ISO Base Media File Format, MPEG-4
`
`file format, and/or MPEG-4 streams containing audio and video.
`
`49.
`
`The ’238 Accused Products comprise a demultiplexing unit configured to separate
`
`the multiplexed data into the coded audio data and the coded picture data. The ’238 Accused
`
`Products, by virtue of their ability to decode video and audio from an MPEG-4 stream satisfy
`
`this limitation.
`
`50.
`
`The ’238 Accused Products comprise an audio processing unit configured to
`
`decode the separated coded audio data. For example, the Nexus 6P is capable of decoding coded
`
`audio,
`
`such as MP3 and AAC. See, e.g., http://consumer.huawei.com/en/mobile-
`
`phones/nexus6p/specifications.htm.
`
`51.
`
`The ’238 Accused Products comprise a picture decoding unit configured to
`
`decode the separated coded picture data, wherein said picture decoding unit includes a block
`
`decoding unit configured to decode coded block data included in the coded picture data, the
`
`coded block data being obtained by dividing a picture signal into plural blocks, generating a
`
`
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`12
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`Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 13 of 44 PageID #: 687
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`residual block image from a block image of the respective blocks and a predictive block image
`
`obtained by intra-picture prediction or inter-picture prediction, and coding, on a block basis,
`
`coefficients obtained by performing orthogonal transformation and quantization on the residual
`
`block image. See, e.g., ITU-T Rec. H.264. Further evidence that the ’238 Accused Products
`
`satisfy this claim element is outlined below.
`
`52.
`
`The ’238 Accused Products comprise a coefficient number decoding unit
`
`configured to decode the coded block data to obtain the number of non-zero coefficients which
`
`are coefficients included in a current block to be decoded and having a value other than “0.” For
`
`example, the ’238 Accused Products comprise an H.264/AVC decoder capable of decoding
`
`Baseline, Main or High Profile bitstreams according to ITU-T Rec. H.264 section A.2. This
`
`functionality is described in the H.264 Standard, including, but not limited to, § 9.2.1.
`
`53.
`
`The ’238 Accused Products comprise a unit configured to obtain coefficients
`
`corresponding to a residual block image of the current block by decoding the coded block data.
`
`For example, the ’238 Accused Products comprise an H.264/AVC decoder capable of decoding
`
`Baseline, Main or High Profile bitstreams. This functionality is described in the H.264 Standard,
`
`including, but not limited to, § 9.2, describing a process that decodes a block of data and
`
`produces the transform coefficient levels of a residual block.
`
`54.
`
`The ’238 Accused Products comprise a unit configured to obtain the residual
`
`block image of the current block by performing inverse quantization and inverse orthogonal
`
`transformation on the coefficients corresponding to the residual block image of the current block.
`
`For example, as explained above, the ’238 Accused Products comprise an H.264/AVC decoder.
`
`This functionality is described in the H.264 Standard, including, but not limited to, § 8.5.11,
`
`which describes taking an input block of coefficients corresponding to a block of coefficients
`
`
`
`
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`Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 14 of 44 PageID #: 688
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`(array c) performing an inverse quantization and inverse orthogonal transformation, and
`
`producing a residual block array (array r). See, e.g., H.264 Standard at § 8.5.11.
`
`55.
`
`The ’238 Accused Products comprise a reproducing unit configured to reproduce
`
`a block image of the current block, from the obtained residual block image and a predictive
`
`block image obtained by intra-picture prediction or inter-picture prediction. For example, as
`
`explained above, the ’238 Accused Products comprise an H.264/AVC decoder. This
`
`functionality is described in the H.264 Standard, including, but not limited to, § 8.5.1, which
`
`describes the reconstruction of decoded block u from predicted block predL and residual block r.
`
`See, e.g., H.264 Standard at § 8.5.1.
`
`56.
`
`The ’238 Accused Products comprise a coefficient number decoding unit, as
`
`described above, which includes a determining unit configured to determine a predictive value
`
`for the number of non-zero coefficients included in the current block based on the number of
`
`non-zero coefficients included in a decoded block located on a periphery of the current block.
`
`This functionality is described in the H.264 Standard, including, but not limited to, § 9.2.1,
`
`which describes the determining of predictive value nC, which is derived based on nA (number
`
`of non-zero coefficients in a left-hand adjacent block) and nB (number of non-zero coefficients
`
`in an upper adjacent block). See, e.g., H.264 Standard at § 9.2.1.
`
`57.
`
` The ’238 Accused Products comprise a coefficient number decoding unit, as
`
`described above, which includes a selecting unit configured to select a variable length code table
`
`based on the determined predictive value. The ’238 Accused Products comprise an H.264/AVC
`
`decoder which practices this functionality. The functionality is described in the H.264 Standard,
`
`including, but not limited to, Table 9-5, in which the selection of a particular column (i.e., a
`
`particular variable length code table) depends on the predictive value nC. See, e.g., H.264
`
`
`
`
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`Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 15 of 44 PageID #: 689
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`Standard at § 9.2.1.
`
`58.
`
`The ’238 Accused Products comprise a coefficient number decoding unit, as
`
`described above, which includes a variable length decoding unit configured to perform variable
`
`length decoding on a coded stream which is generated by coding the number of the non-zero
`
`coefficients included in the current block, by using the selected variable length code table. The
`
`’238 Accused Products comprise an H.264/AVC decoder which practices this functionality. This
`
`functionality is described in the H.264 Standard, including, but not limited to, § 9.2.1, which
`
`describes the variable length decoding of TotalCoeff, the number of non-zero coefficient in a
`
`block.
`
`59.
`
`Thus, as described above, the ’238 Accused Products, including the Nexus 6P,
`
`infringe one or more claims of the ’238 patent, including claim 1.
`
`60.
`
`The ’238 Accused Products are pre-configured and sold by Huawei to infringe the
`
`’238 patent. Huawei provides instruction manuals that instruct the users of the ’238 Accused
`
`Products to use the ’238 Accused Products in a manner that infringes the ’238 patent.
`
`B.
`
`Huawei Makes, Imports, Uses, Sells, and/or Offers for Sale Products and
`Services that Infringe the ’216 Patent.
`
`61.
`
`On information and belief, Huawei makes, uses, sells, and offers to sell, in the
`
`United States, and imports into the United States, LTE compliant devices, such as mobiles and
`
`tablets, including, but not limited to, the Huawei Nexus 6P, Huawei Mate 9, Huawei Mate 8,
`
`Huawei P8 Lite, Huawei SnapTo, Huawei Ascend Mate 2, Huawei Ascend Mate 7, Huawei
`
`Ascend P7, Huawei Mate S, Huawei P8, Huawei P9, Huawei Ascend G7, Huawei GX8, Huawei
`
`G7 Plus, Honor 5X, Honor 6, Honor 7, Honor 8, Huawei Union, Huawei Vitria, Huawei Vision 3
`
`LTE, Huawei MediaPad T1 8.0 Pro, and Huawei MediaPad M3 (hereinafter, “LTE Accused
`
`Products”).
`
`
`
`
`
`15
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`Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 16 of 44 PageID #: 690
`
`62.
`
`63.
`
`The LTE Accused Products infringe one or more claims of the ’216 patent.
`
`The ’216 patent is essential to the LTE Standard. Thus, for example and as shown
`
`below, the LTE Accused Products infringe claim 1 of the ’216 patent by virtue of their
`
`compatibility with and practice of the LTE Standard, as demonstrated by the 3GPP LTE
`
`Standard Specifications.
`
`64.
`
`The 3GPP LTE Specifications cover transmitters for transmitting a digital data
`
`block to a receiver. For example, the LTE Specifications cover the use of mobile stations in LTE
`
`connectivity and communication. See, e.g., 3GPP TS 36.201.
`
`65.
`
`The 3GPP LTE Specifications require that LTE compliant devices include a
`
`coding circuit for coding the digital data block and generating a mother code word. See, e.g.,
`
`3GPP TS 36.212, 3GPP TS 36.213.
`
`66.
`
`The 3GPP LTE Specifications require that LTE compliant devices include a
`
`reordering circuit for reordering the mother code word and generating a reordered mother code
`
`word, wherein the reordered mother code word is generated based on an ordering vector, the
`
`ordering vector defining an order in which bits forming the reordered mother code word are to be
`
`modulated and forwarded to a receiver. See, e.g., 3GPP TS 36.212.
`
`67.
`
`The 3GPP LTE Specifications require that LTE compliant devices include a
`
`modulating circuit for modulating at least one subsequence and for forwarding, to the receiver,
`
`the at least one modulated subsequence, each of the at least one modulated subsequence having a
`
`desired number of bits taken from the reordered mother code word to fill the available bandwidth
`
`of at least one available gross rate channel. See, e.g., 3GPP TS 36.211, 3GPP TS 36.212, 3GPP
`
`TS 36.213.
`
`68.
`
`Thus, as described above, the LTE Accused Products infringe one or more claims
`
`
`
`
`
`16
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`Case 2:17-cv-00123-JRG Document 31 Filed 04/14/17 Page 17 of 44 PageID #: 691
`
`of the ’216 patent, including claim 1.
`
`69.
`
`The LTE Accused Products are pre-configured and sold by Huawei to infringe the
`
`’216 patent. Huawei advertises the ability of the LTE Accused Products to infringe the ’216
`
`patent, at least by advertising that the LTE Accused Products are compatible with the LTE
`
`Standard. Huawei provides instruction manuals that instruct the users of the LTE Accused
`
`Products to use the LTE Accused Products in a manner that infringes the ’216 patent.
`
`C.
`
`70.
`
`71.
`
`Huawei Makes, Imports, Uses, Sells, and/or Offers for Sale Products