`FOR THE EASTERN DISTRICT OF TEXAS
`
`LOGANTREE LP
`
`Plaintiff,
`
`v.
`
`HUAWEI TECHNOLOGIES, CO., LTD,
`HUAWEI TECHNOLOGIES USA, INC.,
`AND HUAWEI DEVICES USA, INC.,
`
`Defendants.
`
`CIVIL ACTION NO.
`
`JURY DEMAND
`
`PLAINTIFF’S ORIGINAL COMPLAINT
`
`TABLE OF CONTENTS
`
`PARTIES ............................................................................................................................ 1
`I.
`JURISDICTION AND VENUE ........................................................................................ 2
`II.
`III. THE PATENT-IN-SUIT ................................................................................................... 4
`IV.
`THE REEXAMINATION ................................................................................................. 4
`V.
`COUNT ONE: INFRINGEMENT OF THE REEXAMINED ‘576 PATENT ............. 7
`VI.
`PLAINTIFF’S ATTEMPTS TO CONTACT DEFENDANT ...................................... 12
`VII. PRAYER FOR RELIEF ................................................................................................. 13
`VIII. DEMAND FOR JURY TRIAL ....................................................................................... 13
`
`APPLE 1036
`
`1
`
`
`
`TABLE OF AUTHORITIES
`
`Cases
`TC Heartland LLC v. Kraft Foods Grp. Brands LLC, 137 S. Ct. 1514 (2017) .............................. 4
`Statutes
`28 U.S.C. § 1331 ............................................................................................................................. 2
`28 U.S.C. § 1338 ............................................................................................................................. 2
`28 U.S.C. § 1400 ............................................................................................................................. 3
`35 U.S.C. § 271 ................................................................................................................. 1, 7, 8, 13
`35 U.S.C. § 284 ............................................................................................................................. 13
`35 U.S.C. § 285 ............................................................................................................................. 13
`Rules
`Fed. R. Civ. P. 38 .......................................................................................................................... 13
`
`2
`
`
`
`1.
`
`Plaintiff LoganTree LP (“LoganTree”) files this, its Original Complaint for patent
`
`infringement. Plaintiff asserts claims for patent infringement of U.S. Patent No. 6,059,576 (“the
`
`‘576 Patent”), as reexamined, against Defendants Huawei Technologies, Co., Ltd (“Huawei Ltd.”),
`
`Huawei Devices USA, Inc. (“Huawei Devices”), and Huawei Technologies USA, Inc. (“Huawei
`
`USA” and collectively with Huawei Ltd. and Huawei Devices, “Huawei”), under 35 U.S.C. § 271,
`
`et seq. In support thereof, LoganTree would respectfully show the Court the following:
`
`I.
`
`PARTIES
`
`2.
`
`Plaintiff LoganTree LP (“Plaintiff” or LoganTree”) is a partnership organized
`
`under the laws of the state of Nevada. LoganTree’s sole general partner is Gulfstream Ventures,
`
`LLC (“Gulfstream”), a limited liability company organized under the laws of the state of Nevada.
`
`Theodore and Anne Brann are the owners and sole managing members of Gulfstream, and their
`
`address is P.O. Box 2345, Boerne, Texas 78006.
`
`3.
`
`Defendant Huawei Technologies USA, Inc. is a corporation organized and existing
`
`under the laws of the State of Texas, with its principal place of business at 5700 Tennyson
`
`Parkway, Suite 500, Plano, Texas 75024. Huawei USA may be served through its registered agent,
`
`CT Corporation System, at 350 N. St. Paul Street, Suite 2900, Dallas, Texas 75201.
`
`4.
`
`Defendant Huawei Technologies Co., Ltd. is a corporation organized under the
`
`laws of the People’s Republic of China, and has its principal place of business located in Huawei
`
`Industrial Base, Bantian, Longgang, Shenzhen, Guangdong, P.R. China 518129, where it can be
`
`served with process.
`
`5.
`
`Defendant Huawei Devices USA, Inc. is a corporation organized under the laws of
`
`the State of Texas, and has its principal place of business located at 5700 Tennyson Parkway, Suite
`
`3
`
`
`
`600, Plano, Texas 75024. Huawei Devices may be served through its registered agent, CT
`
`Corporation System, at 350 N. St. Paul Street, Suite 2900, Dallas, Texas 75201.
`
`6.
`
`7.
`
`Huawei USA and Huawei Devices are wholly-owned subsidiaries of Huawei Ltd.
`
`Huawei sells and offers to sell products and services throughout the United States,
`
`including in this judicial district, and introduces products and services into the stream of commerce
`
`that incorporate infringing technology knowing that they would be sold in this judicial district and
`
`elsewhere in the United States.
`
`II.
`
`JURISDICTION AND VENUE
`
`8.
`
`This is an action for patent infringement arising under the patent laws of the United
`
`States, Title 35, United States Code. This Court has subject matter jurisdiction over this action
`
`under 28 U.S.C. §§ 1331 and 1338(a).
`
`9.
`
`This Court has personal jurisdiction over Huawei Devices and Huawei USA
`
`because these entities reside in the State of Texas. Both entities are incorporated in the State of
`
`Texas and have their principal place of business in Texas.
`
`10.
`
`This Court has general and specific personal jurisdiction over Huawei Ltd. because
`
`Huawei Ltd. is present within and/or has sufficient minimum contacts with the State of Texas and
`
`the Eastern District of Texas pursuant to the Due Process Clause of the United States Constitution
`
`and the law of Texas. Huawei Ltd. has purposefully availed itself of the privileges of conducting
`
`business in the State of Texas and in the Eastern District of Texas by entering into contracts with
`
`Texas businesses and by developing and producing the infringing products in and through Texas
`
`businesses. Huawei Ltd. has sought protection and benefit from the laws of the State of Texas.
`
`Moreover, Huawei Ltd. has purposefully and voluntarily placed infringing products in the stream
`
`of commerce with the expectation that its products will be purchased by end users in the State of
`
`4
`
`
`
`Texas and in the Eastern District of Texas. Huawei Ltd has committed the tort of patent
`
`infringement within the State of Texas and within the Eastern District of Texas. Finally, Plaintiff’s
`
`causes of action arise directly from Huawei Ltd.’s business contacts and other activities in the State
`
`of Texas and in the Eastern District of Texas.
`
`11. More specifically, Huawei Ltd. directly and/or through intermediaries (including
`
`distributors, retailers, and others) ships, distributes, offers for sale, sells, and/or advertises its
`
`products in the United States, the State of Texas, and the Eastern District of Texas, including but
`
`not limited to the Accused Products identified below. Huawei Ltd. solicits customers in the State
`
`of Texas and in the Eastern District of Texas. Huawei Ltd. has customers who are residents of the
`
`State of Texas and the Eastern District of Texas and who use Huawei’s products and services,
`
`including the Accused Products, in the State of Texas and in the Eastern District of Texas. Huawei
`
`Ltd. derives substantial revenue from goods and service provided to individuals in Texas and in
`
`the Eastern District of Texas.
`
`12.
`
`Venue is proper in the Eastern District of Texas under 28 U.S.C. § 1400(b).
`
`Defendants Huawei Devices and Huawei USA both reside in Texas and in the Eastern District of
`
`Texas because both are incorporated in the State of Texas and their principal place of business is
`
`within the boundaries of the Eastern District of Texas. Defendant Huawei Ltd. has committed acts
`
`of patent infringement in the State of Texas and in the Eastern District of Texas and has a regular
`
`and established place of business in the State of Texas and the Eastern District of Texas. See TC
`
`Heartland LLC v. Kraft Foods Grp. Brands LLC, 137 S. Ct. 1514 (2017). Moreover, Huawei has
`
`transacted business in this district, and has directly and/or indirectly committed and/or induced
`
`acts of patent infringement in this district.
`
`5
`
`
`
`III.
`
`THE PATENT-IN-SUIT
`
`13.
`
`On May 9, 2000, the United States Patent and Trademark Office (“PTO”) duly and
`
`lawfully issued the ‘576 Patent, entitled “Training and Safety Device, System and Method to Aid
`
`in Proper Movement During Physical Activity,” after a full and fair examination. A true and correct
`
`copy of the ‘576 Patent is attached hereto as Exhibit A.
`
`14.
`
`On March 17, 2015, following a reexamination requested by LoganTree, the PTO
`
`issued a reexamination certificate for the ‘576 Patent, bearing U.S. Patent No. 6,059,576 C1 (“the
`
`‘576 Reexamination Certificate”). A true and correct copy of the ‘576 Reexamination Certificate
`
`is attached hereto as Exhibit B. The ‘576 Patent as reexamined is referred to as the “Reexamined
`
`‘576 Patent.”
`
`15.
`
`The named inventor of the ‘576 Patent is Theodore L. Brann.
`
`16. Mr. Brann assigned all right, title, and interest in the ‘576 Patent to LoganTree.
`
`LoganTree possess all rights of recovery under the ‘576 Patent and the Reexamined ‘576 Patent,
`
`including the exclusive right to sue for infringement and recover past damages.
`
`IV.
`
`THE REEXAMINATION
`
`17.
`
`The ‘576 Patent sets forth three independent claims—one each for the device,
`
`system, and method of the invention described above—along with twenty-six dependent claims.
`
`Id. at 17–18. On March 17, 2015, following a reexamination requested by LoganTree, the PTO
`
`issued the ‘576 Reexamination Certificate reaffirming the patentability of all of the ‘576 Patent
`
`claims, as amended, and further determining that an additional 156 dependent claims are
`
`patentable, for a total of 185 patented claims. Ex. B. Claims 1, 13, and 20 of the Reexamined ‘576
`
`Patent are independent claims, and the remaining 182 claims are dependent on Claims 1, 13, or
`
`20.
`
`6
`
`
`
`18.
`
`As stated in Claim No. 1 of the ‘576 Reexamination Certificate, the patented
`
`“device” consists of:
`
`A portable, self-contained device for monitoring movement of body parts during
`physical activity, said device comprising:
`
`a movement sensor capable of measuring data associated with unrestrained
`movement in any direction and generating signals indicative of said movement;
`
`a power source;
`
`a microprocessor connected to said movement sensor and to said power source, said
`microprocessor capable of receiving, interpreting, storing and responding to said
`movement data based on user-defined operational parameters, detecting a first
`user-defined event based on the movement data and at least one of the user-defined
`operational parameters regarding the movement data, and storing first event
`information related to the selected first user-defined event along with the first time
`stamp information reflecting a time at which the movement data causing the first
`user-defined event occurred;
`
`at least one user input connected to said microprocessor for controlling the
`operation of said device;
`
`a real-time clock connected to said microprocessor; memory for storing said
`movement data; and
`
`an output indictor connected to said microprocessor for signaling the occurrence of
`user-defined events;
`
`wherein said movement sensor measures the angle and velocity of said movement.
`
`Id. at 3.1
`
`19.
`
`Claim 13 (the “System Claim”) defines the patented “system” to comprise the
`
`Claim 1 device when connected via a “download device” to “a computer running a program
`
`capable of interpreting” the data gathered by the Claim 1 device.
`
`20.
`
`Claim 13 of the Reexamined ‘576 Patent is for: “A system to aid in training and
`
`safety during physical activity, said system comprising:
`
`1 The text in italics “indicates additions made to the patent” as a result of the reexamination. Id. at
`3.
`
`7
`
`
`
`A portable, self-contained movement measuring device, said movement measuring
`device further comprising:
`
`A movement sensor capable of measuring data associated with unrestrained
`movement in any direction and generating signals indicative of said movement;
`
`A power source;
`
`A microprocessor connected to said movement sensor and to said power source,
`said microprocessor capable of receiving, interpreting, storing and responding to
`said movement data based on user-defined operational parameters, detecting a first
`user-defined event based on the movement data and at least one of the user-defined
`operational parameters regarding the movement data, and storing first event
`information related to the selected first user-defined event along with the first time
`stamp information reflecting a time at which the movement data causing the first
`user-defined event occurred;
`
`At least one user input connected to said microprocessor for controlling the
`operation of said device;
`
`A real-time clock connected to said microprocessor; memory for storing said
`movement data; and
`
`At least one input/output port connected to said microprocessor for downloading
`said data and uploading said operational parameters;
`
`An output indicator connected to said microprocessor;
`
`A computer running program capable of interpreting and reporting said movement
`data based on said operational parameters; and
`
`A download device electronically connected to said movement measuring device
`and said computer for transmitting said movement data and operational parameters
`between said movement measuring device and said computer for analysis, reporting
`and operating purposes;
`
`Wherein said movement sensor measures the angle and velocity of said movement.
`
`Id.
`
`21.
`
`Claim 20 (the “Method Claim”) provides a parallel definition for the patented
`
`“method.” Id.
`
`22.
`
`Claim 20 is for: “A method to monitor physical movement of a body part
`
`comprising the steps of:
`
`8
`
`
`
`Attaching a portable, self-contained movement measuring device to said body part
`for measuring unrestrained movement in any direction;
`
`Measuring data associated with said physical movement; interpreting, using a
`microprocessor included in the portable, self-contained measuring device, said
`physical movement data based on user-defined operational parameters and a real-
`time clock; [and]
`
`Storing said data in memory;
`
`Detecting, using the microprocessor, a first user-defined event based on the
`movement data and at least one of the user-defined operational parameters
`regarding the movement data; and
`
`Storing, in said memory, first event information related to the detected first user-
`defined event along with first time stamp information reflecting a time at which the
`movement data causing the first user-defined event occurred.
`
`Id.
`
`V.
`
`COUNT ONE: INFRINGEMENT OF THE REEXAMINED ‘576 PATENT
`
`23.
`
`24.
`
`Plaintiff realleges paragraphs 1 through 22 herein.
`
`Huawei, directly or through intermediaries, makes, made, has made, used,
`
`imported, manufactured, provided, supplied, distributed, sold, and/or offered for sale to customers
`
`within the United States accelerometer-based activity monitoring devices that infringe the
`
`Reexamined ‘576 Patent either literally and/or under the doctrine of equivalents, including but not
`
`limited to the following models of wearable accelerometer-based activity tracker: Talkband B2
`
`family, Talkband B3 family, Huawei Band 2 family, Huawei Watch family, and Huawei Fit family
`
`(collectively “Accused Products”).
`
`25.
`
`Third parties, including Defendant’s customers, have directly infringed, and
`
`continue to directly infringe under 35 U.S.C. § 271(a), one or more claims of the ‘576 Patent,
`
`either literally and/or under the doctrine of equivalents, by making, using, selling, and/or offering
`
`for sale the Accused Products in the United States that infringe one or more claims of the ‘576
`
`Patent.
`
`9
`
`
`
`26.
`
`Defendant has had prior knowledge and notice of the ‘576 Patent and its
`
`infringement through prior correspondence from counsel of LoganTree to Defendant and its
`
`General Counsel as discussed below.
`
`27.
`
`Defendant has induced infringement under 35 U.S.C. § 271(b). Defendant has
`
`actively, knowingly, and intentionally induced, infringement of the ‘576 Patent by selling or
`
`otherwise supplying the Accused Products with the knowledge and intent that third parties will
`
`use, sell, and/or offer for sale in the United States, for their intended purpose to infringe the ‘576
`
`Patent, and with the knowledge and intent to encourage and facilitate infringement through the
`
`dissemination of the Accused Products and/or the creation and dissemination of documentation
`
`and technical information to customers and prospective customers related to the Accused Products,
`
`as well actively providing Defendant’s app for use by customers with the Accused Products.
`
`28.
`
`Defendant has contributed to the infringement by third parties, including its
`
`customers, of one or more claims of the ‘576 Patent under 35 U.S.C. § 271(c), by selling and/or
`
`offering for sale in the United States knowing that those products constitute a material part of the
`
`inventions of the ‘576 Patent, knowing that those products are especially made or adapted to
`
`infringe the ’576 Patent, and knowing that those products are not staple articles of commerce
`
`suitable for substantial non-infringing use.
`
`29.
`
`The Accused Products infringe the Reexamined ‘576 Patent because each of the
`
`Accused Products is a portable, self-contained device that uses an accelerometer to measure the
`
`angle and velocity of body movements, a user-programmable microprocessor capable of
`
`recognizing and analyzing data generated by the accelerometer, and internal memory and a clock
`
`for storing the data along with the time at which the detected events occurred.
`
`10
`
`
`
`30.
`
`The Accused Products infringe the Device Claim of the Reexamined ‘576 Patent,
`
`and other claims dependent on the Device Claim, in that each of the Accused Products:
`
`a.
`
`Is a portable, self-contained devices for monitoring body movements during
`
`physical activity (e.g., each is a smartwatch that automatically tracks body
`
`movements including, walking, steps and distance traveled);
`
`b. Contains a movement sensor (e.g., an accelerometer and gyroscope) capable
`
`of measuring data associated with body movements and generating signals
`
`indicative of such movements, and which measures the angle and velocity
`
`of such movements;
`
`c. Contains a power source (e.g., a rechargeable internal battery);
`
`d. Contains a microprocessor connected to the movement sensor and power
`
`source (e.g. Qualcomm® MSM8909W processor, or Snapdragon Wear
`
`2100-soc, etc.) capable of receiving, interpreting, storing, and responding
`
`to movement data generated by the accelerometer based on user-defined
`
`operational parameters (e.g., step goals), and detecting a first user-defined
`
`event based on the movement data and at least one of the user-defined
`
`operational parameters regarding the movement data (e.g., a goal of 10,000
`
`steps, the user’s height, distance traveled, calories burned, pace, etc.), and
`
`storing first event information related to the selected first user-defined event
`
`along with the first time stamp information reflecting a time at which the
`
`movement data causing the first user-defined event occurred (e.g., storing
`
`running information with a time stamp in .TCX files);
`
`11
`
`
`
`e. Contains user inputs (e.g., buttons, touch screen, etc.) connected to the
`
`microprocessor for controlling the device;
`
`f. Contains a real-time clock and memory for storing movement data; and
`
`g.
`
`Includes an output indicator connected to said microprocessor for signaling
`
`the occurrence of user-defined events (e.g., screen, LED readout, colored
`
`lights, vibration of the watch etc.).
`
`31.
`
`As reflected in the chart attached hereto as Exhibit C, the information Huawei
`
`makes public about the Accused Products further demonstrates how they infringe the Device Claim
`
`of the Reexamined ‘576 Patent. Ex. C. While Exhibit C demonstrates the element-by-element
`
`infringement of one or more Accused Products, all of Huawei’s Accused Products incorporate
`
`equivalent body motion-tracking technology and design, and all infringe the Device Claim of the
`
`Reexamined ‘576 Patent.
`
`32.
`
`Each of the Accused Products is designed to be and is cable of being connected to
`
`an external computer (such as a laptop or smart phone) and/or computer network operating
`
`software capable of accessing and downloading stored data from the Accused Products, analyzing
`
`that data, and presenting the data to the user in different forms. When so connected, each of the
`
`Accused Products infringes the System Claim in of the Reexamined ‘576 Patent, and other claims
`
`dependent on the System Claim, in that the Accused product so connected:
`
`a.
`
`Is a system to aid in training and safety during physical activity;
`
`b. Contains a portable, self-contained movement measuring device of the kind
`
`described in Paragraph 26, supra (e.g., the Accused Product itself);
`
`12
`
`
`
`c. Contains a computer (e.g., a personal computer or smart phone) running a
`
`program capable of interpreting and reporting movement data collected by
`
`the device;
`
`d. Contains a download device (e.g., cord, USB dongle, Bluetooth transmitter,
`
`etc.) electronically connected to the movement measuring device and the
`
`computer for transmitting data between the movement device and the
`
`computer for analysis.
`
`33. When used as intended and instructed by Huawei, each of the Accused Products
`
`infringes the Method Claim of the Reexamined ‘576 Patent, and other claims dependent on the
`
`Method Claim, in that the Accused Product, so used:
`
`a.
`
`Is a method to monitor physical movement of a body part comprising the
`
`steps of:
`
`b. Attaching a portable, self-contained movement measuring device (e.g., the
`
`Accused Product itself) to said body part for measuring unrestrained
`
`movement in any direction;
`
`c. Measuring data associated with physical movement of the body part (using
`
`the accelerometer described above);
`
`d.
`
`Interpreting said data using a microprocessor contained in the self-
`
`contained movement measuring device based on user-defined parameters
`
`and a real-time clock;
`
`e. Storing said data in memory;
`
`13
`
`
`
`f. Detecting, using the microprocessor, a first user-defined event based on the
`
`movement data and at least one of the user-defined operational parameters
`
`regarding the movement data; and
`
`g. Storing, in said memory, first event information related to the detected first
`
`user-defined event along with first time stamp information reflecting a time
`
`at which the movement data causing the first user-defined event occurred.
`
`34.
`
`The infringing actions of Huawei are and have at all times been without the consent
`
`of, authority of, or license from Plaintiff.
`
`35.
`
`As a direct and proximate result of the infringement of the Reexamined ‘576 Patent
`
`by Huawei, Plaintiff has suffered damages in an amount that cannot yet be fully ascertained, which
`
`will be proven at trial.
`
`VI.
`
`PLAINTIFF’S ATTEMPTS TO CONTACT DEFENDANT
`
`36.
`
`On April 7, 2017, Plaintiff’s attorneys sent a letter by mail with a Certified Mail
`
`Return Receipt Requested (CMRRR) addressed to the General Counsel of Defendant Huawei
`
`USA. LoganTree’s letter informed the General Counsel and Defendants that it had products that
`
`infringe the ‘576 Patent. LoganTree in its letter indicated the hope of resolving the matter amicably
`
`and requested a discussion of extending a non-exclusive license or cessation within fourteen (14)
`
`days. While LoganTree’s attorneys received a returned CMRRR card signed and dated, to
`
`LoganTree’s knowledge, a written response was not received.
`
`37.
`
`Having had prior knowledge of the ‘576 Patent, Defendants knew or should have
`
`known that, without taking a license to the patents-in-suit, its actions continued to infringe one or
`
`more claims of the ‘576 Patent. Therefore, Defendants have willfully infringed the ‘576 Patent.
`
`14
`
`
`
`38.
`
`The conduct of Defendants in infringing the ‘576 Patent renders this case
`
`exceptional within the meaning of 35 U.S.C. § 285.
`
`VII.
`
`PRAYER FOR RELIEF
`
`WHEREFORE, Plaintiff LoganTree requests that the Court grant the following relief:
`
`a)
`
`b)
`
`c)
`
`d)
`
`e)
`
`Enter judgment that Defendants infringe and have directly infringed the
`
`Reexamined ‘576 Patent under 35 U.S.C. § 271(a);
`
`Order Defendants to pay damages adequate to compensate Plaintiff for Defendants’
`
`infringement of the Reexamined ‘576 Patent pursuant to 35 U.S.C. § 284, together
`
`with pre-judgment and post-judgment interests, in an amount according to proof;
`
`Enter a judgment that the infringement was willful and that such damages be trebled
`
`pursuant to 35 U.S.C. § 284;
`
`Enter judgment that this case is exceptional under 35 U.S.C. § 285 and award
`
`Plaintiffs reasonable attorneys’ fees and costs incurred in this action; and
`
`Award such other and further relief, at law or in equity, as the Court deems just and
`
`proper.
`
`VIII. DEMAND FOR JURY TRIAL
`
`Plaintiff respectfully requests a trial by jury on all issues so triable, pursuant to Fed. R. Civ.
`
`P. 38.
`
`DATED: March 25, 2021
`
`15
`
`
`
`Respectfully submitted by:
`
`MCCATHERN, PLLC
`
`
`
`/s/Arnold Shokouhi
`Arnold Shokouhi
`Bar No. 24056315
`arnolds@mccathernlaw.com
`James E. Sherry
`Bar No. 24086340
`jsherry@mccathernlaw.com
`
`McCathern, PLLC
`3710 Rawlins Street, Suite 1600
`Dallas, TX 75219
`Phone: (214) 443-4478
`Facsimile: (214) 741-4717
`
`PLAINTIFF’S COUNSEL
`
`16
`
`