Case 2:17-cv-00517-JRG Document 28-1 Filed 09/26/17 Page 1 of 4 PagelD #: 207
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`DECLARATION OF CHAO (GEORGE) SHAN IN SUPPORT OF
`DEFENDANTS’ MOTION TO DISMISS
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`|, Chao (George) Shan, declare as follows:
`
`1.
`
`I am over the age of eighteen years,
`
`I have personal knowledge of the
`
`facts contained in this declaration, and could and would testify competently to these
`
`facts if called upon to do so.
`
`2.
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`I have been employed at ZTE (TX) |nc., (“ZTX") for approximately 3 years.
`
`I hold the Vice President of Human Resources and Administration. As such,
`
`I have
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`personal knowledge of ZTX’s operations and locations worldwide, including within the
`
`United States.
`
`3.
`
`ZTX is a wholly owned subsidiary of ZTE Hong Kong Ltd., which is in turn
`
`a wholly owned subsidiary of ZTE Corporation, an entity incorporated under the laws of
`
`the People’s Republic of China. ZTX and ZTE Corporation are separate companies and
`
`maintain all corporate formalities, maintaining separate books and records, separate
`
`bank accounts, and separate assets.
`
`4.
`
`ZTX conducts research and development activities and provides technical
`
`marketing support for ZTE Corporation. Research and development activities include
`
`designing telecommunications devices and developing telecom technology standards,
`
`solutions, and applications for the next generation of telecommunications technology.
`
`ZTX operates in technical areas of wireline technology, wireless technology, microwave
`
`technology, and handset technology.
`
`ZTE Corporation is the only customer of ZTX.
`
`ZTX does not provide any services to third parties other than ZTE
`
`5.
`
`6.
`
`Corporation.
`
`
`
`DECLARATION OF CHAO (GEORGE) SHAN IN SUPPORT OF
`DEFENDANTS’ MOTION TO DISMISS
`
`|, Chao (George) Shan, declare as follows:
`
`1.
`
`I am over the age of eighteen years,
`
`I have personal knowledge of the
`
`facts contained in this declaration, and could and would testify competently to these
`
`facts if called upon to do so.
`
`2.
`
`I have been employed at ZTE (TX) |nc., (“ZTX") for approximately 3 years.
`
`I hold the Vice President of Human Resources and Administration. As such,
`
`I have
`
`personal knowledge of ZTX’s operations and locations worldwide, including within the
`
`United States.
`
`3.
`
`ZTX is a wholly owned subsidiary of ZTE Hong Kong Ltd., which is in turn
`
`a wholly owned subsidiary of ZTE Corporation, an entity incorporated under the laws of
`
`the People’s Republic of China. ZTX and ZTE Corporation are separate companies and
`
`maintain all corporate formalities, maintaining separate books and records, separate
`
`bank accounts, and separate assets.
`
`4.
`
`ZTX conducts research and development activities and provides technical
`
`marketing support for ZTE Corporation. Research and development activities include
`
`designing telecommunications devices and developing telecom technology standards,
`
`solutions, and applications for the next generation of telecommunications technology.
`
`ZTX operates in technical areas of wireline technology, wireless technology, microwave
`
`technology, and handset technology.
`
`ZTE Corporation is the only customer of ZTX.
`
`ZTX does not provide any services to third parties other than ZTE
`
`5.
`
`6.
`
`Corporation.
`
`
`
`Case 2:17-cv-00517-JRG Document 28-1 Filed 09/26/17 Page 2 of 4 PagelD #: 208
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`7.
`
`8.
`
`ZTX does not provide any services to ZTE (USA) Inc.
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`I understand that ZTX has been accused of infringing one or more US.
`
`Patents by manufacturing, using, selling, offering for sale, and/or importing into the
`
`United States particular items of consumer wireless equipment described in their
`
`complaints (collectively “Accused Devices").
`
`9.
`
`ZTX does not manufacture or make any products in the Eastern District of
`
`Texas at all, including without limitation any “Accused Devices.”
`
`10.
`
`ZTX does not sell or offer to sell any products in the Eastern District of
`
`Texas at all, including without limitation any “Accused Devices.”
`
`11.
`
`ZTX does not import any products in the Eastern District of Texas at all,
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`including without limitation any “Accused Devices” for third-party demonstrations, sales,
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`offers for sale, qualification testing, or other commercial purposes.
`
`12.
`
`ZTX does not use any products in the Eastern District of Texas at all,
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`including without limitation any “Accused Devices” other than as an end-user of
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`consumer wireless equipment similar to any other US consumer or company which
`
`conducts business by phone.
`
`13.
`
`ZTX’s principal place of business is located in Milpitas, California. ZTX
`
`also maintains offices in:
`
`a. Durham, North Carolina,
`
`b. Morristown, New Jersey,
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`c. San Diego, California, and
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`d. Austin, Texas.
`
`
`
`Case 2:17-cv-00517-JRG Document 28-1 Filed 09/26/17 Page 3 of 4 PagelD #: 209
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`14.
`
`ZTX is incorporated in Texas in 2013, but lacks a physical place of
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`business in the Eastern District of Texas. The ZTX office in Austin, Texas, is the only
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`physical place of business maintained by ZTX in Texas. ZTX lacks offices, warehouses,
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`stores, facilities, and bank accounts in the Eastern District of Texas. ZTX's registered
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`agent, who filed ZTX's incorporation papers, is located at 2500 Dallas Parkway, Plano,
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`Texas 75093, but the agent's office is not a ZTX place of business. ZTX has fourteen
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`employees living in the Eastern District of Texas and working remotely from home.
`
`Eleven of those employees live in Plano, Texas, and three live in Allen, Texas. However,
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`ZTX does not own, lease, or otherwise exercise possession or control over the homes
`
`of these employees. Furthermore, these employees are free to live wherever they
`
`choose, as far as ZTX is concerned. As such, ZTX has not conditioned the employment
`
`of any ZTX employee upon continued residence in the Eastern District of Texas or upon
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`continued performance of ZTX business from his or her home in the Eastern District of
`
`Texas. ZTX does not advertise or represent that it has a place of business in the
`
`Eastern District of Texas.
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`15.
`
`ZTX operations in Texas principally concern technical marketing support
`
`and research and development activities concerning microelectronics. None of ZTX’s
`
`employees in Texas are expected to have unique knowledge relevant to this case.
`
`16.
`
`ZTX maintains a server for storing technical documents and agreements
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`for ZTX in San Diego, California, outside the Eastern District of Texas. ZTX operations
`
`concerning handsets are located at ZTX’s San Diego, California, office. ZTX stores
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`documents relevant to the research agreements between ZTX and ZTE Corporation at
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`ZTX’s principal place of business in Milpitas, California.
`
`
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`Case 2:17-cv-00517-JRG Document 28-1 Filed 09/26/17 Page 4 of 4 PagelD #: 210
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`17.
`
`It would be much more convenient for the expected witnesses from ZTX’s
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`principal office in Milpitas, California to attend trial for these matters in the Western
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`District of Texas, where ZTX has an office, than it would be for them to travel to
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`Marshall, Texas. Convenient, non-stop air service exists between San Jose, California,
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`near ZTX’s headquarters in Milpitas, California, and Austin, Texas. To my knowledge,
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`travel time from San Jose, California to Marshall, Texas is nearly twice the travel time
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`as compared to travel time from San Jose, California to Austin, Texas. Likewise, it
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`would also be more convenient for the ZTX employees who live in Plano and Allen to
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`attend trial in Sherman, Texas, than in Marshall, Texas, as Sherman is much closer to
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`their residences.
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`I declare under penalty of perjury that the foregoing is true and correct.
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`Executed this 25th day of September 2017 in Milpitas, California.
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`
`
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