Case 6:14-cv-00982-KNM Document 151 Filed 11/13/15 Page 1 of 43 PageID #: 1574
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`TYLER DIVISION
`
`CELLULAR COMMUNICATIONS
`EQUIPMENT LLC,
`Plaintiff,
`
`v.
`
`LG ELECTRONICS, INC., et al.,
`Defendants.
`
`Civil Action No. 6:14-cv-982-JRG-KNM
`
`CONSOLIDATED LEAD CASE
`
`JURY TRIAL DEMANDED
`
`LG ELECTRONICS, INC. AND LG ELECTRONICS U.S.A., INC.’S
`ANSWER AND ADDITIONAL DEFENSES TO PLAINTIFF’S FIRST AMENDED
`COMPLAINT FOR PATENT INFRINGEMENT
`
`Defendants LG Electronics, Inc. and LG Electronics U.S.A., Inc. (collectively, “LG
`
`Electronics”), by and through their attorneys, answer
`
`the First Amended Complaint
`
`(“complaint”) of plaintiff Cellular Communications Equipment LLC (“plaintiff” or “CCE”) as
`
`follows:
`
`THE PARTIES
`
`Cellular Communications Equipment LLC (“CCE”) is a Texas limited liability
`1.
`company with its principal place of business in Plano, Texas.
`
`Answer: LG Electronics is without knowledge or information sufficient to form a belief
`
`as to the truth of the allegations contained in paragraph 1 of the complaint and, therefore, denies
`
`such allegations.
`
`On information and belief, LG Electronics, Inc. is incorporated under the laws of
`2.
`South Korea with its principal place of business at LG Twin Towers 20, Yeouido-dong,
`Yeongdeunspo-gu, Seoul 150-721, South Korea. This Defendant may be served with process at
`its principal place of business at LG Twin Towers 20, Yeouido-dong, Yeongdeunspo-gu, Seoul
`150-721, South Korea. This Defendant does business in the State of Texas and in the Eastern
`District of Texas.
`
`Answer: LG Electronics admits that LG Electronics, Inc. is incorporated under the laws
`
`

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`Case 6:14-cv-00982-KNM Document 151 Filed 11/13/15 Page 2 of 43 PageID #: 1575
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`of South Korea and is located at LG Twin Towers, 20, Yeouido-dong, Yeongdeungpo-gu, Seoul,
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`150-721, South Korea. LG Electronics admits that it may be been served with process at LG
`
`Twin Towers, 20, Yeouido-dong, Yeongdeungpo-gu, Seoul, 150-721, South Korea.
`
`It
`
`is
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`unnecessary to admit or deny the remaining allegations in paragraph 2 of the complaint because
`
`LG Electronics, Inc. consents to the personal jurisdiction of this Court for the purpose of this
`
`action only.
`
`LG Electronics U.S.A., Inc. (with LG Electronics, Inc., “LG”) is a Delaware
`3.
`corporation with its principal place of business in Englewood Cliffs, New Jersey. This Defendant
`may be served with process through its agent, United States Corporation Company, 2711
`Centerville Road, Suite 400, Wilmington, Delaware 19808. This Defendant does business in the
`State of Texas and in the Eastern District of Texas.
`
`Answer: LG Electronics admits that LG Electronics U.S.A., Inc.
`
`is a Delaware
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`corporation with offices in Englewood Cliffs, New Jersey. LG Electronics admits that LG
`
`Electronics U.S.A., Inc. may be served with process through its agent, United States Corporation
`
`Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808. It is unnecessary to
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`admit or deny the remaining allegations in paragraph 3 of the complaint because LG Electronics
`
`U.S.A., Inc. consents to the personal jurisdiction of this Court for the purpose of this action only.
`
`AT&T Mobility LLC (“AT&T”) is a Delaware limited liability company with its
`4.
`principal place of business in Atlanta, Georgia. This Defendant may be served with process
`through its agent, The Corporation Trust Company, Corporation Trust Center, 1209 Orange
`Street, Wilmington, Delaware 19801. This Defendant does business in the State of Texas and in
`the Eastern District of Texas.
`
`Answer: LG Electronics is without knowledge or information sufficient to form a belief
`
`as to the truth of the allegations contained in paragraph 4 of the complaint and, therefore, denies
`
`such allegations.
`
`Verizon Communications Inc. is a Delaware corporation with its principal place
`5.
`of business in New York, New York. This Defendant may be served with process through its
`agent, The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street,
`Wilmington, Delaware 19801. This Defendant does business in the State of Texas and in the
`Eastern District of Texas.
`
`2
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`Answer: LG Electronics is without knowledge or information sufficient to form a belief
`
`as to the truth of the allegations contained in paragraph 5 of the complaint and, therefore, denies
`
`such allegations.
`
`Cellco Partnership d/b/a Verizon Wireless (with Verizon Communications Inc.,
`6.
`“Verizon”) is a Delaware general partnership with its principal place of business in Basking
`Ridge, New Jersey. This Defendant may be served with process through its agent, The
`Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington,
`Delaware 19801. This Defendant does business in the State of Texas and in the Eastern District
`of Texas.
`
`Answer: LG Electronics is without knowledge or information sufficient to form a belief
`
`as to the truth of the allegations contained in paragraph 6 of the complaint and, therefore, denies
`
`such allegations.
`
`Sprint Nextel Corporation is a Kansas corporation with its principal place of
`7.
`business in Overland Park, Kansas. This Defendant may be served with process through its
`agent, Corporation Service Company, 200 S.W. 30th Street, Topeka, Kansas 66611. This
`Defendant does business in the State of Texas and in the Eastern District of Texas.
`
`Answer: LG Electronics is without knowledge or information sufficient to form a belief
`
`as to the truth of the allegations contained in paragraph 7 of the complaint and, therefore, denies
`
`such allegations.
`
`is a Delaware corporation with its principal place of
`Sprint Solutions, Inc.
`8.
`business in Reston, Virginia. This Defendant may be served with process through its agent,
`Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808.
`This Defendant does business in the State of Texas and in the Eastern District of Texas.
`
`Answer: LG Electronics is without knowledge or information sufficient to form a belief
`
`as to the truth of the allegations contained in paragraph 8 of the complaint and, therefore, denies
`
`such allegations.
`
`Sprint Spectrum L.P. is a Delaware limited partnership with its principal place of
`9.
`business in Overland Park, Kansas. This Defendant may be served with process through its
`agent, Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware
`19808. This Defendant does business in the State of Texas and in the Eastern District of Texas.
`
`3
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`

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`Answer: LG Electronics is without knowledge or information sufficient to form a belief
`
`as to the truth of the allegations contained in paragraph 9 of the complaint and, therefore, denies
`
`such allegations.
`
`Boost Mobile, LLC (with Sprint Nextel Corporation, Sprint Solutions, Inc., and
`10.
`Sprint Spectrum L.P., “Sprint”) is a Delaware limited liability company with its principal place
`of business in Irvine, California. This Defendant may be served with process through its agent,
`Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808.
`This Defendant does business in the State of Texas and in the Eastern District of Texas.
`
`Answer: LG Electronics is without knowledge or information sufficient to form a belief
`
`as to the truth of the allegations contained in paragraph 10 of the complaint and, therefore, denies
`
`such allegations.
`
`T-Mobile USA, Inc. is a Delaware corporation with a principal place of business
`11.
`in Bellevue, Washington. This Defendant may be served with process through its agent,
`Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808.
`This Defendant does business in the State of Texas and in the Eastern District of Texas.
`
`Answer: LG Electronics is without knowledge or information sufficient to form a belief
`
`as to the truth of the allegations contained in paragraph 11 of the complaint and, therefore, denies
`
`such allegations.
`
`T-Mobile US, Inc. (with T-Mobile USA, Inc., “T-Mobile”) is a Delaware
`12.
`corporation with its principal place of business in Bellevue, Washington. This Defendant may be
`served with process through its agent, Corporation Service Company, 2711 Centerville Road,
`Suite 400, Wilmington, Delaware 19808. This Defendant does business in the State of Texas and
`in the Eastern District of Texas.
`
`Answer: LG Electronics is without knowledge or information sufficient to form a belief
`
`as to the truth of the allegations contained in paragraph 12 of the complaint and, therefore, denies
`
`such allegations.
`
`JURISDICTION AND VENUE
`
`This action arises under the patent laws of the United States, namely 35 U.S.C. §§
`13.
`271, 281, and 284-285, among others.
`
`4
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`Answer: LG Electronics admits that the complaint contains allegations that purport to
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`arise under the patent laws of the United States.
`
`This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331 and
`14.
`1338(a), and 1367.
`
`Answer: LG Electronics admits that this Court has jurisdiction over the subject matter
`
`pursuant to 28 U.S.C. §§ 1331, 1338(a), and/or 1367.
`
`Venue is proper in this judicial district pursuant to 28 U.S.C. §§ 1391(b) and (c),
`15.
`and 1400(b). On information and belief, each Defendant is deemed to reside in this judicial
`district, has committed acts of infringement in this judicial district, has purposely transacted
`business in this judicial district, and/or has regular and established places of business in this
`judicial district.
`
`Answer: LG Electronics denies that it has committed any acts of infringement in this or
`
`any other district. LG Electronics consents, however, to venue in this district for the purpose of
`
`this action only.
`
`On information and belief, each Defendant is subject to this Court’s specific and
`16.
`general personal jurisdiction pursuant to due process and/or the Texas Long Arm Statute, due at
`least to their substantial and pervasive business in this State and judicial district, including: (i) at
`least part of their infringing activities alleged herein; and (ii) regularly doing or soliciting
`business, engaging in other persistent conduct, and/or deriving substantial revenue from goods
`sold and services provided to Texas residents.
`
`Answer: LG Electronics denies that it has committed any acts of infringement in this or
`
`any other district. LG Electronics consents, however, to the personal jurisdiction of this Court
`
`for the purpose of this action only.
`
`17. More specifically, Defendants’ substantial contacts with the forum include, but
`are not limited to: (i) the manufacture, marketing, sale, distribution, and use of LG mobile
`devices; (ii) the marketing and sale of services for mobile device communications; (iii) the
`ownership and/or operation of stores where LG mobile devices are sold and serviced; and/or (iv)
`the provision of technical and customer support for LG mobile devices and attendant mobile
`device communications services.
`
`5
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`

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`Case 6:14-cv-00982-KNM Document 151 Filed 11/13/15 Page 6 of 43 PageID #: 1579
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`Answer:
`
`It is unnecessary to admit or deny the allegations in paragraph 17 of the
`
`complaint because LG Electronics, Inc. consents to the personal jurisdiction of this Court for the
`
`purpose of this action only.
`
`COUNT I
`
`(INFRINGEMENT OF U.S. PATENT NO. 8,385,966)
`
`18.
`
`CCE incorporates paragraphs 1 through 17 herein by reference.
`
`Answer: LG Electronics incorporates by reference the responses contained in paragraphs
`
`1 through 17 of this answer.
`
`CCE is the assignee of the ’966 patent, entitled “Method, Apparatus, and
`19.
`Computer Program for Power Control Related to Random Access Procedures” with ownership of
`all substantial rights in the ’966 patent, including the right to exclude others and to enforce, sue,
`and recover damages for past and future infringements. A true and correct copy of the ’966
`patent is attached as Exhibit A.
`
`Answer: LG Electronics admits that Exhibit A to the complaint purports to be a copy of
`
`U.S. Patent No. 8,385,966 (“the ’966 patent”) entitled “Method, Apparatus, and Computer
`
`Program for Power Control Related to Random Access Procedures.” LG Electronics is without
`
`knowledge or information sufficient to form a belief as to the truth of the remaining allegations
`
`of paragraph 19 of the complaint and, therefore, denies those allegations.
`
`The ’966 patent is valid, enforceable, and was duly issued in full compliance with
`20.
`Title 35 of the United States Code.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 20 of the
`
`complaint.
`
`Defendants LG, AT&T, Sprint, T-Mobile, and Verizon have and continue to
`21.
`directly and/or indirectly infringe (by inducing infringement and/or contributing to infringement)
`one or more claims of the ’966 patent in this judicial district and elsewhere in Texas and the
`United States, including at least claims 1-7 and 10-17, without the consent or authorization of
`CCE, by or through their making, having made, offering for sale, selling, importing, testing,
`and/or use of LG mobile devices, including, for example: the LG G2, LG G3, LG G3 Vigor, LG
`G Flex, LG G Vista, LG G Pad 7.0 LTE, LG Optimus G, and LG Optimus G Pro (the “’966
`AT&T Mobile Devices”); the LG G2, LG G3, LG G3 Vigor, LG G Flex, LG Google Nexus 5,
`
`6
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`

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`Case 6:14-cv-00982-KNM Document 151 Filed 11/13/15 Page 7 of 43 PageID #: 1580
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`LG Mach, LG Optimus F3, LG Optimus G, and LG Viper (the “’966 Sprint Mobile Devices”);
`the LG G3, LG Optimus F3Q, LG Optimus F6, LG G Flex, LG Google Nexus 5, and LG
`Optimus F3 (the “’966 T-Mobile Mobile Devices”); and the LG G3, LG Lucid 3, LG Enact, LG
`G2, LG G Vista, LG Spectrum 2, LG Lucid 2, LG Lucid 4G, and LG Intuition (the “’966
`Verizon Mobile Devices”). These devices are collectively referred to as the “’966 LG Devices.”
`
`Answer: LG Electronics denies the allegations set forth in paragraph 21 of the
`
`complaint.
`
`Defendants directly infringe the apparatus claims of the ’966 patent by making,
`22.
`using, testing, offering to sell, selling, and/or importing the ’966 LG Devices. Defendants also
`directly infringe the ’966 patent by making, using, testing, selling, offering for sale, and/or
`importing the ’966 LG Devices to practice the claimed methods. Defendants are thereby liable
`for direct infringement.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 22 of the
`
`complaint.
`
`Additionally, Defendants are liable for indirect infringement of the ’966 patent
`23.
`because they induce and/or contribute to the direct infringement of the patent by their customers
`(including, but not limited to, cellular network providers and/or their subscribers) and other end
`users who use the ’966 LG Devices to practice the claimed methods.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 23 of the
`
`complaint.
`
`Each Defendant is a 3rd Generation Partnership Project (or “3GPP”) member
`24.
`organization, or is affiliated with a 3GPP member organization. 3GPP solicits identification of
`standard essential patents, and, through 3GPP, Defendants received actual notice of the standard
`essential patents at issue here. The ’966 patent is one such patent, and Defendants have known of
`the patent application that issued as the ’966 patent at least as early as June 2011, when it was
`disclosed to 3GPP via the European Telecommunications Standards Institute (“ETSI,” an
`organizational member of 3GPP).
`
`Answer: LG Electronics admits that LG Electronics, Inc. is a 3GPP member. LG
`
`Electronics denies that it has known of the ’966 patent at least as early as June 2011. LG
`
`Electronics is without knowledge or information sufficient to form a belief as to the truth of the
`
`remaining allegations contained in paragraph 24 of the complaint and, therefore, denies such
`
`allegations.
`
`7
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`

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`Case 6:14-cv-00982-KNM Document 151 Filed 11/13/15 Page 8 of 43 PageID #: 1581
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`Despite having knowledge of the ’966 patent, Defendants named in this Count
`25.
`have and continue to specifically intend for persons who acquire and use such devices, including
`Defendants’ customers, to use such devices in a manner that infringes the ’966 patent, including
`at least claims 1-7. This is evident when Defendants encourage and instruct customers and other
`end users in the use and operation of the ’966 LG Devices.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 25 of the
`
`complaint.
`
`In particular, despite having knowledge of the ’966 patent, Defendants have
`26.
`provided, and continue to provide, instructional materials, such as user guides, owner manuals,
`and similar online resources (available via http://www.lg.com/us/support/cell-phones for
`instance) that specifically teach the customers and other end users to use the ’966 LG Devices in
`an infringing manner. By providing such instructions, Defendants know (and have known), or
`should know (and should have known), that their actions have, and continue to, actively induce
`infringement.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 26 of the
`
`complaint.
`
`Additionally, Defendants named in this Count know, and have known, that the
`27.
`’966 LG Devices include proprietary hardware components and software instructions that work
`in concert to perform specific, intended functions. Such specific, intended functions, carried out
`by these hardware and software combinations, are a material part of the inventions of the ’966
`patent and are not staple articles of commerce suitable for substantial non-infringing use.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 27 of the
`
`complaint.
`
`Specifically, each of the ’966 LG Devices contain at least a baseband processor,
`28.
`memory, and a transmitter which contains functionality that is specifically programmed and/or
`configured to at least initialize a first power control adjustment state for an uplink control
`channel and a second power control adjustment state for an uplink shared channel, compute an
`initial transit power for the uplink shared channel using full path loss compensation, and send a
`message on the uplink shared channel at the initial transmit power, as recited in claims 1-7 and
`10-17 of the ’966 patent.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 28 of the
`
`complaint.
`
`On information and belief, despite having knowledge of the ’966 patent and
`29.
`knowledge that they are directly and/or indirectly infringing one or more claims of the ’966
`patent, Defendants named in this Count have nevertheless continued their infringing conduct and
`
`8
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`

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`Case 6:14-cv-00982-KNM Document 151 Filed 11/13/15 Page 9 of 43 PageID #: 1582
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`infringing
`thus, Defendants’
`infringement;
`disregarded an objectively high likelihood of
`activities relative to the ’966 patent have been, and continue to be, willful, wanton, and
`deliberate in disregard of CCE’s rights.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 29 of the
`
`complaint.
`
`On information and belief, LG and AT&T test, make, use, offer for sale, sell,
`30.
`and/or import the ’966 AT&T Mobile Devices described in this Count, pursuant to one or more
`contractual agreements between them relating to, at least, the distribution and sale of such
`devices. Accordingly, LG and AT&T are jointly, severally, or alternatively liable for
`infringements described in this Count.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 30 of the
`
`complaint.
`
`On information and belief, LG and Sprint test, make, use, offer for sale, sell,
`31.
`and/or import the ’966 Sprint Mobile Devices described in this Count, pursuant to one or more
`contractual agreements between them relating to, at least, the distribution and sale of such
`devices. Accordingly, LG and Sprint are jointly, severally, or alternatively liable for
`infringements described in this Count.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 31 of the
`
`complaint.
`
`On information and belief, LG and T-Mobile test, make, use, offer for sale, sell,
`32.
`and/or import the ’966 T-Mobile Mobile Devices described in this Count, pursuant to one or
`more contractual agreements between them relating to, at least, the distribution and sale of such
`devices. Accordingly, LG and T-Mobile are jointly, severally, or alternatively liable for
`infringements described in this Count.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 32 of the
`
`complaint.
`
`On information and belief, LG and Verizon test, make, use, offer for sale, sell,
`33.
`and/or import the ’966 Verizon Mobile Devices described in this Count, pursuant to one or more
`contractual agreements between them relating to, at least, the distribution and sale of such
`devices. Accordingly, LG and Verizon are jointly, severally, or alternatively liable for
`infringements described in this Count.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 33 of the
`
`complaint.
`
`9
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`

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`CCE has been damaged as a result of Defendants’ infringing conduct described in
`34.
`this Count. Defendants are, thus, liable to CCE in an amount that adequately compensates it for
`their infringements, which, by law, cannot be less than a reasonable royalty, together with
`interest and costs as fixed by this Court under 35 U.S.C. § 284.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 34 of the
`
`complaint.
`
`COUNT II
`
`(INFRINGEMENT OF U.S. PATENT NO. 8,848,556)
`
`35.
`
`CCE incorporates paragraphs 1 through 17 herein by reference.
`
`Answer: LG Electronics incorporates by reference the responses contained in paragraphs
`
`1 through 17 of this answer.
`
`CCE is the assignee of the ’556 patent, entitled “Carrier Aggregation with Power
`36.
`Headroom Report,” with ownership of all substantial rights in the ’556 patent, including the right
`to exclude others and to enforce, sue, and recover damages for past and future infringements. A
`true and correct copy of the ’556 patent is attached as Exhibit B.
`
`Answer: LG Electronics admits that Exhibit B to the complaint purports to be a copy of U.S.
`
`Patent No. 8,848,556 (“the ’556 patent”) entitled “Carrier Aggregation with Power Headroom
`
`Report.” LG Electronics is without knowledge or information sufficient to form a belief as to the
`
`truth of the remaining allegations of paragraph 36 of the complaint and, therefore, denies those
`
`allegations.
`
`The ’556 patent is valid, enforceable, and was duly issued in full compliance with
`37.
`Title 35 of the United States Code.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 37 of the
`
`complaint.
`
`Defendants LG, AT&T, Sprint, and Verizon have and continue to directly infringe
`38.
`one or more claims of the ’556 patent in this judicial district and elsewhere in Texas and the
`United States, including at least claims 13-15 and 21-22, without the consent or authorization of
`CCE, by or through their making, having made, offering for sale, selling, importing, testing,
`and/or use of LG mobile devices, including, for example: the LG G2 for AT&T (the “’556
`AT&T Mobile Devices”); the LG G2 for Sprint (the “’556 Sprint Mobile Devices”); and the LG
`
`10
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`

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`G2 for Verizon (the “’556 Verizon Mobile Devices”). These devices are collectively referred to
`as the “’556 LG Devices.”
`
`Answer: LG Electronics denies the allegations set forth in paragraph 38 of the
`
`complaint.
`
`Defendants directly infringe the apparatus claims of the ’556 patent by making,
`39.
`using, testing, offering to sell, selling, and/or importing the ’556 LG Devices. Defendants are
`thereby liable for direct infringement.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 39 of the
`
`complaint.
`
`Each Defendant is a 3rd Generation Partnership Project (or “3GPP”) member
`40.
`organization, or is affiliated with a 3GPP member organization. 3GPP solicits identification of
`standard essential patents, and, through 3GPP, Defendants received actual notice of the standard
`essential patents at issue here. The ’556 patent is one such patent, and Defendants have known of
`the patent application that issued as the ’556 patent at least as early as October 2012, when it was
`disclosed to 3GPP via the European Telecommunications Standards Institute (“ETSI,” an
`organizational member of 3GPP).
`
`Answer: LG Electronics admits that LG Electronics, Inc. is a 3GPP member. LG
`
`Electronics denies that it has known of the ’556 patent at least as early as October 2012. LG
`
`Electronics is without knowledge or information sufficient to form a belief as to the truth of the
`
`remaining allegations contained in paragraph 40 of the complaint and, therefore, denies such
`
`allegations.
`
`On information and belief, despite having knowledge of the ’556 patent and
`41.
`knowledge that they are directly infringing one or more claims of the ’556 patent, Defendants
`named in this Count have nevertheless continued their infringing conduct and disregarded an
`objectively high likelihood of infringement; thus, Defendants’ infringing activities relative to the
`’556 patent have been, and continue to be, willful, wanton, and deliberate in disregard of CCE’s
`rights.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 41 of the
`
`complaint.
`
`On information and belief, LG and AT&T test, make, use, offer for sale, sell,
`42.
`and/or import the ’556 AT&T Mobile Devices described in this Count, pursuant to one or more
`contractual agreements between them relating to, at least, the distribution and sale of such
`
`11
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`devices. Accordingly, LG and AT&T are jointly, severally, or alternatively liable for
`infringements described in this Count.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 42 of the
`
`complaint.
`
`On information and belief, LG and Sprint test, make, use, offer for sale, sell,
`43.
`and/or import the ’556 Sprint Mobile Devices described in this Count, pursuant to one or more
`contractual agreements between them relating to, at least, the distribution and sale of such
`devices. Accordingly, LG and Sprint are jointly, severally, or alternatively liable for
`infringements described in this Count.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 43 of the
`
`complaint.
`
`On information and belief, LG and Verizon test, make, use, offer for sale, sell,
`44.
`and/or import the ’556 Verizon Mobile Devices described in this Count, pursuant to one or more
`contractual agreements between them relating to, at least, the distribution and sale of such
`devices. Accordingly, LG and Verizon are jointly, severally, or alternatively liable for
`infringements described in this Count.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 44 of the
`
`complaint.
`
`CCE has been damaged as a result of Defendants’ infringing conduct described in
`45.
`this Count. Defendants are, thus, liable to CCE in an amount that adequately compensates it for
`their infringements, which, by law, cannot be less than a reasonable royalty, together with
`interest and costs as fixed by this Court under 35 U.S.C. § 284.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 45 of the
`
`complaint.
`
`COUNT III
`
`(INFRINGEMENT OF U.S. PATENT NO. 8,868,060)
`
`46.
`
`CCE incorporates paragraphs 1 through 17 herein by reference.
`
`Answer: LG Electronics incorporates by reference the responses contained in paragraphs
`
`1 through 17 of this answer.
`
`12
`
`

`

`Case 6:14-cv-00982-KNM Document 151 Filed 11/13/15 Page 13 of 43 PageID #: 1586
`
`CCE is the assignee of the ’060 patent, entitled “Method, Network and Device for
`47.
`Information Provision by Using Paging and Cell Broadcast Services,” with ownership of all
`substantial rights in the ’060 patent, including the right to exclude others and to enforce, sue, and
`recover damages for past and future infringements. A true and correct copy of the ’060 patent is
`attached as Exhibit C.
`
`Answer: LG Electronics admits that Exhibit C to the complaint purports to be a copy of
`
`U.S. Patent No. 8,868,060 (“the ’060 patent”) entitled “Method, Network and Device for
`
`Information Provision by Using Paging and Cell Broadcast Services.” LG Electronics is without
`
`knowledge or information sufficient to form a belief as to the truth of the remaining allegations
`
`of paragraph 47 of the complaint and, therefore, denies those allegations.
`
`The ’060 patent is valid, enforceable, and was duly issued in full compliance with
`48.
`Title 35 of the United States Code.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 48 of the
`
`complaint.
`
`Defendants LG, AT&T, Sprint, T-Mobile, and Verizon have and continue to
`49.
`directly and/or indirectly infringe (by inducing infringement and/or contributing to infringement)
`one or more claims of the ’060 patent in this judicial district and elsewhere in Texas and the
`United States, including at least claims 1, 3, 7, 9, and 15, without the consent or authorization of
`CCE, by or through their making, having made, offering for sale, selling, importing, testing,
`and/or use of LG mobile devices, including, for example: the LG G2, LG G3, LG G3 Vigor, LG
`G Flex, and LG G Vista (the “’060 AT&T Mobile Devices”); LG G2, LG G3, LG G3 Vigor, and
`LG G Flex (the “’060 Sprint Mobile Devices”); LG G3, LG Optimus L90, LG Optimus F3Q, LG
`Optimus F6, and LG G Flex (the “’060 T-Mobile Mobile Devices”); and LG G3, LG Lucid 3,
`LG Enact, LG G2, LG G Vista, and LG Spectrum 2 (the “’060 Verizon Mobile Devices”). These
`devices are collectively referred to as the “’060 LG Devices.”
`
`Answer: LG Electronics denies the allegations set forth in paragraph 49 of the
`
`complaint.
`
`Defendants directly infringe the apparatus claims of the ’060 patent by making,
`50.
`using, testing, offering to sell, selling, and/or importing the ’060 LG Devices. Defendants also
`directly infringe the ’060 patent by making, using, selling, offering for sale, and/or importing the
`’060 LG Devices to practice the claimed methods. Defendants are thereby liable for direct
`infringement.
`
`13
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`

`

`Case 6:14-cv-00982-KNM Document 151 Filed 11/13/15 Page 14 of 43 PageID #: 1587
`
`Answer: LG Electronics denies the allegations set forth in paragraph 50 of the
`
`complaint.
`
`Additionally, Defendants are liable for indirect infringement of the ’060 patent
`51.
`because they induce and/or contribute to the direct infringement of the patent by their customers
`(including, but not limited to, cellular network providers and/or their subscribers) and other end
`users who use the ’060 LG Devices to practice the claimed methods.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 51 of the
`
`complaint.
`
`Each Defendant is a 3rd Generation Partnership Project (or “3GPP”) member
`52.
`organization, or is affiliated with a 3GPP member organization. 3GPP solicits identification of
`standard essential patents, and, through 3GPP, Defendants received actual notice of the standard
`essential patents at issue here. The ’060 patent is one such patent, and Defendants have known of
`the patent application that issued as the ’060 patent at least as early as December 14, 2010, when
`it was disclosed to 3GPP via the European Telecommunications Standards Institute (“ETSI,” an
`organizational member of 3GPP).
`
`Answer: LG Electronics admits that LG Electronics, Inc. is a 3GPP member. LG
`
`Electronics denies that it has known of the ’060 patent at least as early as December 14, 2010.
`
`LG Electronics is without knowledge or information sufficient to form a belief as to the truth of
`
`the remaining allegations contained in paragraph 52 of the complaint and, therefore, denies such
`
`allegations.
`
`Despite having knowledge of the ’060 patent, Defendants named in this Count
`53.
`have and continue to specifically intend for persons who acquire and use such devices, including
`Defendants’ customers, to use such devices in a manner that infringes the ’060 patent, including
`at least claims 1 and 3. This is evident when Defendants encourage and instruct customers and
`other end users in the use and operation of the ’060 LG Devices.
`
`Answer: LG Electronics denies the allegations set forth in paragraph 53 of the
`
`complaint.
`
`In particular, despite having knowledge of the ’060 patent, Defendants have
`54.
`provided, and continue to provide, instructional materials, such as user gui