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`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 1 of 17
`
`
`
`THE HONORABLE JAMES L. ROBART
`
`
`
`
`IN THE UNITED STATES DISTRICT COURT
`
`FOR THE WESTERN DISTRICT OF WASHINGTON
`
`SEATTLE DIVISION
`
`CYWEE GROUP LTD.,
`
` Plaintiff,
`
` v.
`
`HTC CORPORATION and
`HTC AMERICA, INC.,
`
` Defendants.
`
`HTC CORPORATION and
`HTC AMERICA, INC.
`
` Third-Party Plaintiffs,
` v.
`
`STMICROELECTRONICS, N.V.,
`STMICROELECTRONICS, INC., and
`CYWEE MOTION GROUP LTD.,
`
` Third-Party Defendants
`
`
`
`
`
`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 1
`
`
`
`
`
`
`
` CASE NO. 2:17-cv-00932-JLR
`
`
`
`JURY TRIAL DEMANDED
`
` THIRD-PARTY DEFENDANT CYWEE
`MOTION GROUP LTD.’S ANSWER
`TO THIRD PARTY COMPLAINT AND
`CROSS-COUNTERCLAIMS FOR
`
`
`(1) CONVERSION;
`
`(2) UNJUST ENRICHMENT; AND
`
`(3) DECLARATORY JUDGMENT
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 2 of 17
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`Third-Party Defendant Cywee Motion Group, Ltd. (“CyWee Motion”) answers
`
`herein HTC Corporation and HTC America, Inc.’s (collectively “HTC”) Third-Party
`
`Complaint (“Complaint”). Unless expressly admitted, all averments asserted by HTC in its
`
`Complaint are denied.
`
`PARTIES
`1. CyWee Motion admits that Plaintiff Cywee Group Ltd. is a corporation organized
`
`and existing under the laws of the British Virgin Islands, with a principal place of business at
`
`3F, No. 28, Lane 128, Jing Ye 1st Road, Taipei, Taiwan 10462.
`2. CyWee Motion lacks knowledge or information sufficient to form a belief as to the
`
`truth of the allegations in Paragraph 2, and therefore denies them.
`3. CyWee Motion lacks knowledge or information sufficient to form a belief as to the
`
`truth of the allegations in Paragraph 3, and therefore denies them.
`4. CyWee Motion lacks knowledge or information sufficient to form a belief as to the
`
`truth of the allegations in Paragraph 4, and therefore denies them.
`5. CyWee Motion lacks knowledge or information sufficient to form a belief as to the
`
`truth of the allegations in Paragraph 5, and therefore denies them.
`6. CyWee Motion lacks knowledge or information sufficient to form a belief as to the
`
`truth of the allegations in Paragraph 6, and therefore denies them.
`7. CyWee Motion admits that it is a corporation organized and existing under the laws
`
`of Taiwan, with its principal place of business located at 114-45 Wenhu Street, Neihu
`
`District, Taipei City, 11445, 5th Floor, 12-2 Taiwan.
`8. CyWee Motion admits that it is affiliated with CyWee Group Ltd.
`
`JURISDICTION AND VENUE
`9. CyWee Motion admits that this Court has subject matter jurisdiction over this
`
`matter.
`
`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 2
`
`
`
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 3 of 17
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`10. CyWee Motion admits that this Court has subject matter jurisdiction over this
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`matter.
`11. CyWee Motion lacks knowledge or information sufficient to form a belief as to the
`
`truth of the allegations in Paragraph 11, and therefore denies them.
`12. CyWee Motion lacks knowledge or information sufficient to form a belief as to the
`
`truth of the allegations in Paragraph 12, and therefore denies them.
`13. CyWee Motion lacks knowledge or information sufficient to form a belief as to the
`
`truth of the allegations in Paragraph 13, and therefore denies them.
`14. CyWee Motion admits the existence of the press release as described, but otherwise
`
`denies the allegations in Paragraph 14.
`15. CyWee Motion admits that it is subject to the jurisdiction of this Court for purposes
`
`of this action only.
`16. CyWee Motion admits that venue is proper in this jurisdiction for purposes of this
`
`action only.
`
`FACTUAL BACKGROUND
`17. CyWee Motion lacks knowledge or information sufficient to form a belief as to the
`
`truth of the allegations in Paragraph 17, and therefore denies them.
`18. CyWee Motion admits the allegations in Paragraph 18.
`19. CyWee Motion denies the allegations in Paragraph 19.
`20. CyWee Motion lacks knowledge or information sufficient to admit or deny the
`
`allegations in Paragraph 20. HTC has alleged that it uses other software or a modified
`
`version of the accused software, but CyWee Motion has not been able to inspect HTC’s
`
`source code.
`21. CyWee Motion admits that six-axis and nine-axis motion sensors for wireless devices
`
`are referenced in Plaintiff CyWee Group Ltd.’s (“CyWee Group) infringement allegations.
`
`In all other respects, CyWee Motion denies the allegations in Paragraph 21.
`
`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 3
`
`
`
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

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`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 4 of 17
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`
`
`22. CyWee Motion lacks knowledge or information sufficient to form a belief as to the
`
`truth of the allegations in Paragraph 22, and therefore denies them.
`23. CyWee Motion lacks knowledge or information sufficient to form a belief as to the
`
`truth of the allegations in Paragraph 23, and therefore denies them.
`24. CyWee Motion denies the allegations in Paragraph 24.
`25. CyWee Motion denies the allegations in Paragraph 25.
`26. CyWee Motion admits to the existence of the press release as described, but
`
`otherwise denies the allegations in Paragraph 26.
`27. CyWee Motion admits the allegations in Paragraph 27.
`28. CyWee Motion denies the allegations in Paragraph 28.
`29. CyWee Motion admits that it is affiliated with CyWee Group and that it enters into
`
`agreements through which entities may use licensed software in exchange for royalty
`
`payments, but otherwise denies the allegations in Paragraph 29.
`30. CyWee Motion denies the allegations in Paragraph 30.
`31. CyWee Motion denies the allegations in Paragraph 31.
`32. CyWee Motion lacks knowledge or information sufficient to form a belief as to the
`
`truth of the allegations in Paragraph 32, and therefore denies them.
`33. CyWee Motion lacks knowledge or information sufficient to form a belief as to the
`
`truth of the allegations in Paragraph 33 as they pertain to STM. In all other respects, CyWee
`
`Motion denies the allegations in Paragraph 33.
`34. CyWee Motion denies the allegations in Paragraph 34.
`35. CyWee Motion denies the allegations in Paragraph 35.
`36. CyWee Motion denies the allegations in Paragraph 36.
`37. CyWee Motion admits that HTC claims that impleader is proper, but otherwise
`
`denies the allegations in Paragraph 37.
`
`
`
`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 4
`
`
`
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 5 of 17
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`
`FIRST CAUSE OF ACTION
`
`(Indemnity)
`38. CyWee Motion reasserts and incorporates by reference its responses to all preceding
`
`Paragraphs as if fully set forth herein.
`39. This cause of action is directed at STM only, has been dismissed with prejudice, and
`
`therefore requires no response. To the extent any of the allegations in Paragraph 39 pertain
`
`to CyWee Motion, they are denied.
`40. This cause of action is directed at STM only, has been dismissed with prejudice, and
`
`therefore requires no response. To the extent any of the allegations in Paragraph 40 pertain
`
`to CyWee Motion, they are denied.
`41. This cause of action is directed at STM only, has been dismissed with prejudice, and
`
`therefore requires no response. To the extent any of the allegations in Paragraph 41 pertain
`
`to CyWee Motion, they are denied.
`42. This cause of action is directed at STM only, has been dismissed with prejudice, and
`
`therefore requires no response. To the extent any of the allegations in Paragraph 42 pertain
`
`to CyWee Motion, they are denied.
`43. This cause of action is directed at STM only, has been dismissed with prejudice, and
`
`therefore requires no response. To the extent any of the allegations in Paragraph 43 pertain
`
`to CyWee Motion, they are denied.
`
`SECOND CAUSE OF ACTION
`
`(Breach of Warranty of Title)
`44. CyWee Motion reasserts and incorporates by reference its responses to all preceding
`
`Paragraphs as if fully set forth herein.
`45. This cause of action is directed at STM only, has been dismissed with prejudice, and
`
`therefore requires no response. To the extent any of the allegations in Paragraph 45 pertain
`
`to CyWee Motion, they are denied.
`
`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 5
`
`
`
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 6 of 17
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`46. This cause of action is directed at STM only, has been dismissed with prejudice, and
`
`therefore requires no response. To the extent any of the allegations in Paragraph 46 pertain
`
`to CyWee Motion, they are denied.
`47. This cause of action is directed at STM only, has been dismissed with prejudice, and
`
`therefore requires no response. To the extent any of the allegations in Paragraph 47 pertain
`
`to CyWee Motion, they are denied.
`48. This cause of action is directed at STM only, has been dismissed with prejudice, and
`
`therefore requires no response. To the extent any of the allegations in Paragraph 48 pertain
`
`to CyWee Motion, they are denied.
`49. This cause of action is directed at STM only, has been dismissed with prejudice, and
`
`therefore requires no response. To the extent any of the allegations in Paragraph 49 pertain
`
`to CyWee Motion, they are denied.
`50. This cause of action is directed at STM only, has been dismissed with prejudice, and
`
`therefore requires no response. To the extent any of the allegations in Paragraph 50 pertain
`
`to CyWee Motion, they are denied.
`
`THIRD CAUSE OF ACTION
`
`(Contribution)
`51. CyWee Motion reasserts and incorporates by reference its responses to all preceding
`
`Paragraphs as if fully set forth herein.
`52. CyWee Motion denies the allegation in Paragraph 52.
`53. CyWee Motion admits that HTC seeks declaratory judgment, but denies that it is
`
`entitled to same.
`
`FOURTH CAUSE OF ACTION
`
`(Violation of the Unfair Business Practices-Consumer Protection Act)
`54. CyWee Motion reasserts and incorporates by reference its responses to all preceding
`
`Paragraphs as if fully set forth herein.
`
`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 6
`
`
`
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 7 of 17
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`55. To the extent the allegations of Paragraph 55 set forth legal conclusions, no response
`
`is required. CyWee Motion denies all remaining allegations of Paragraph 55.
`56. To the extent the allegations of Paragraph 56 set forth legal conclusions, no response
`
`is required. CyWee Motion denies all remaining allegations of Paragraph 56.
`57. To the extent the allegations of Paragraph 57 set forth legal conclusions, no response
`
`is required. CyWee Motion denies all remaining allegations of Paragraph 57.
`58. To the extent the allegations of Paragraph 58 set forth legal conclusions, no response
`
`is required. CyWee Motion denies all remaining allegations of Paragraph 58.
`59. CyWee Motion denies the allegations in Paragraph 59.
`60. CyWee Motion denies the allegations in Paragraph 60.
`61. CyWee Motion denies the allegations in Paragraph 61.
`
`GENERAL DENIAL
`
`Any allegation in HTC’s Third-Party Complaint not expressly admitted by CyWee
`
`Motion is denied. Having answered HTC’s Third-Party Complaint, CyWee Motion denies
`
`that HTC is entitled to the relief requested in its Prayer for Relief, or to any relief
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`whatsoever.
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`AFFIRMATIVE DEFENSES
`
`
`
`Without prejudice to the denials set forth in its Answer, and without admitting any
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`allegations of the Third-Party Complaint not expressly admitted, CyWee Motion asserts the
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`following separate defenses to the Third-Party Complaint without assuming the burden of
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`proof on any such defense that would otherwise rest with HTC.
`
`FIRST DEFENSE
`
`
`
`HTC has failed to state a claim upon which relief can be granted. The Unfair
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`Business Practices--Consumer Protection Act (“UBPCPA”) cannot apply to a relationship
`
`between CyWee Motion and HTC (even assuming one exists) that has no connection to
`
`Washington State. Similarly, the contribution claim is predicated on the relationship
`
`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 7
`
`
`
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

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`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 8 of 17
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`
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`between STMicroelectronics N.V., STMicroelectronics, Inc., and STMicroelectronics Asia
`
`Pacific Ltd. (collectively the “STM Entities”) and HTC. HTC has dismissed all claims
`
`against the ST Entities based upon that relationship, and did so with prejudice. No facts are
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`alleged by HTC that would give rise to a claim for contribution under Taiwanese law or any
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`other law that would apply to the CyWee/HTC relationship (assuming any such
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`relationship exists).
`
`SECOND DEFENSE
`
`
`
`HTC is barred, estopped, and/or has waived its claims against CyWee Motion for
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`contribution and/or violations of the UBPCPA by virtue of its stipulation to dismiss with
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`prejudice all claims against the STM Entities. The only written agreement involving the
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`products that HTC purchased, and that HTC contends give rise to the UBPCPA and
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`contribution claims is between HTC and the STM Entities, and HTC has dismissed all
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`claims against the STM Entities with prejudice, thereby breaking any chain of causation or
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`right to recovery against CyWee Motion.
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`THIRD DEFENSE
`
`
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`HTC’s claims and requested relief against CyWee Motion are barred by the equitable
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`doctrines of waiver, estoppel, laches, and/or unclean hands.
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`FOURTH DEFENSE
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`
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`HTC lacks standing to bring its claims against CyWee Motion by virtue of its
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`stipulation to dismiss with prejudice all claims against the STM Entities.
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`FIFTH DEFENSE
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`
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`CyWee Motion reserves all defenses, at law or equity, which may now exist or in the
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`future be available based on discovery and further factual investigation in this case.
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`
`
`
`
`
`
`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 8
`
`
`
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 9 of 17
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`CROSS-COUNTERCLAIMS AGAINST HTC
`
`For its counterclaims against HTC Corporation and HTC America, Inc. (collectively
`
`“HTC”), Third-Party Defendant and Counterclaim-Plaintiff CyWee Motion Group Ltd.
`
`(“CyWee Motion”) alleges as follows:
`
`PARTIES
`1. CyWee Motion is a corporation organized and existing under the laws of Taiwan,
`
`with its principal place of business located at 14-45 Wenhu Street, Neihu District, Taipei
`
`City 11445, 5th Floor, 12-2, Taiwan.
`2. Third-Party Plaintiff and Counterclaim-Defendant HTC Corporation (“HTC Corp.”)
`
`is a corporation organized and existing under the laws of Taiwan, with its principal place of
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`business located at No. 88, Section 3, Zhongxing Road, Xindian District, New Taipei City
`
`231, Taiwan 231.
`3. Third-Party Plaintiff and Counterclaim-Defendant HTC America, Inc. (“HTC
`
`America”) is a corporation organized and existing under the laws of the state of
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`Washington, with its principal place of business located at 308 Occidental Avenue South,
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`Floor 3, Seattle, Washington, 98104.
`
`
`JURISDICTION AND VENUE
`4. This Court has subject matter jurisdiction over these Counterclaims pursuant to Rule
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`14 of the Federal Rules of Civil Procedure. This Court further has supplemental subject
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`matter jurisdiction over these Cross-Counterclaims under 28 U.S.C. § 1367(a) because this
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`action is so related to the claims brought by Third-Party Plaintiff HTC that they form part of
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`the same case and controversy.
`5. HTC has submitted to personal jurisdiction in this court through the filing of their
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`Answer and Counterclaims and their Third-Party Complaint in this action.
`6. Venue for these Counterclaims is agreed as between the Parties.
`
`
`
`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 9
`
`
`
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

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`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 10 of 17
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`FACTUAL BACKGROUND
`7. CyWee Motion was founded by scientists formerly affiliated with the Industrial
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`Technology Research Institute of Taiwan (“ITRI”), a Taiwanese government and industry-
`
`funded research and development center. CyWee Motion is a market leader in wireless
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`streaming, facial tracking, and motion processing technology solutions for home
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`entertainment and mobile devices. CyWee Motion is affiliated with the Plaintiff in this
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`action, CyWee Group Ltd. (“CyWee Group”).
`8. Pursuant to a 2013 Development and License Agreement (the “License Agreement”)
`
`between CyWee Technology Pte. Ltd. (“CyWee”) and STMicroelectronics International
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`N.V. (“STM”), CyWee granted a license to STM for “Licensed Technology,” which was
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`defined by the License Agreement as consisting of certain CyWee software (the “CyWee
`
`Software”). Pursuant to the License Agreement, the CyWee Software was to be integrated
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`by ST into certain “Licensed Products” to be manufactured, sold, and/or distributed by
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`STM.
`9. The License Agreement only granted STM a license to the CyWee Software, and it
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`did not grant any rights to practice either of the patents-in-suit beyond the provision by STM
`
`of products that incorporated the CyWee Software described in the License Agreement as
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`the Licensed Technology.
`10. On or around December 1, 2014, CyWee, STM, and CyWee Motion entered into an
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`Assignment of Development and License Agreement (the “Assignment”), whereby CyWee
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`Motion assumed all past, present, and future rights and obligations under the License
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`Agreement to CyWee.
`11. In its Counterclaim against CyWee Group in this case, HTC contends that some or
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`all of HTC’s products that are accused of infringing the patents-in-suit contain motion
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`sensor modules that HTC purchased from STM, and that those modules contain CyWee
`
`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 10
`
`
`
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 11 of 17
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`Software. These allegations form the basis of HTC’s alleged license defense against CyWee
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`Group’s infringement claims, as well as HTC’s defense of patent exhaustion.
`12. In its Third-Party Complaint, HTC contends that it purchased motion sensor
`
`modules containing CyWee Software from STM and related entities (collectively referred to
`
`as the “STM Entities”) pursuant to purchase order agreements that obligate the STM
`
`Entities to defend and indemnify HTC with respect to claims of patent infringement. Based
`
`on these allegations, HTC asserted third-party claims against the STM Entities for
`
`indemnity, contribution, and breach of warranty of title.
`13. In its Third-Party Complaint, HTC also asserts claims against CyWee Motion for
`
`contribution and alleged violations of the Unfair Business Practices--Consumer Protection
`
`Act. Those claims stem entirely from HTC’s allegation that it purchased motion sensor
`
`modules from the STM Entities which contained CyWee Software that was licensed to STM
`
`pursuant to the License Agreement.
`14. On May 23, 2018, STM filed a motion for sanctions against HTC based upon the
`
`frivolous allegations of the Third-Party Complaint. As grounds for the motion, STM alleged
`
`that among other things, “there are no arguably relevant contracts or purchase orders
`
`between HTC and ST Inc., nor has ST Inc. ever sold or supplied accused products to HTC.”
`15. Within a matter of days following STM’s motion for sanctions, HTC filed a
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`stipulated motion and proposed order dismissing all claims against the STM Entities with
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`prejudice. The Court signed the Order on June 1, 2018. Inexplicably, even though HTC’s
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`third-party claims against CyWee Motion rest entirely upon the allegation that HTC
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`purchased products from STM that were licensed to contain CyWee Software, HTC refuses
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`to similarly dismiss its claims against CyWee Motion.
`16. On information and belief, including information received from HTC’s counsel of
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`record, HTC did not purchase motion sensor modules from STM that contained pre-loaded
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`CyWee Software as alleged. Rather, unbeknownst to CyWee Motion, HTC obtained an
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`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 11
`
`
`
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

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`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 12 of 17
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`
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`unauthorized copy or copies of CyWee Software, and HTC has and continues to load that
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`software onto its products after they are assembled using STM sensors and parts that HTC
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`buys without any CyWee Software installed, including some or all of the products that
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`CyWee Group accuses of infringing the patents-in-suit. HTC is not, and has never been,
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`authorized by CyWee Motion to possess or use CyWee Software other than such software
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`as pre-loaded by STM and sold pursuant to the terms of the License Agreement.
`17. On July 19, 2018, CyWee Motion sent written notice to STM that the License
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`Agreement was terminated, effective immediately. One of the cited reasons for termination
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`was STM’s instruction to HTC to use CyWee Software to enable sensor fusion functionality
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`in HTC devices containing STM components by loading the software after STM provides
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`the sensing elements, and thereby taking the STM sales to HTC out of the License
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`Agreement. HTC agreed to this subterfuge, and has in fact been surreptitiously and without
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`compensation to CyWee Group or CyWee Motion using the CyWee Software. A true and
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`correct copy of the termination notice is attached hereto as Exhibit A and is incorporated
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`herein by reference.
`18. Immediately following the termination, CyWee Motion sent HTC’s counsel of
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`record written notice that the License Agreement had been terminated, effective
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`immediately. The notice to HTC (the “HTC Notice”) further informed counsel for HTC
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`that HTC is not, and has never been, authorized to possess and/or use any CyWee Software
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`independently of such software being sold to HTC in sensing elements and devices where
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`the CyWee Software comes pre-loaded by STM and subject to royalties. The HTC Notice
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`demanded that HTC immediately cease and desist use of any such software and
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`immediately return any copies in its possession. A true and correct copy of the HTC Notice
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`is attached hereto as Exhibit B and is incorporated herein by reference.
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`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 12
`
`
`
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 13 of 17
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`19. HTC has not complied with CyWee Motion’s demand to return any copies of
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`CyWee Software and continues, on information and belief, its unauthorized possession and
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`use of such software.
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`FIRST CAUSE OF ACTION
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`(Conversion)
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`20. CyWee Motion repeats and realleges the preceding paragraphs of its Counterclaims
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`as though fully set forth herein.
`21. HTC has taken and wrongfully retained possession of property belonging to CyWee
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`Motion, namely the CyWee Software, and it has not returned that property upon written
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`demand. HTC was not given permission to take or otherwise receive any possessory interest
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`in the CyWee Software. At all times of HTC’s acts of conversion, CyWee Motion had the
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`right to maintain and/or use the CyWee Software, and HTC had no such right. As a result
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`of HTC’s actions, CyWee Motion has been deprived of its possessory interest in the CyWee
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`Software, and HTC has converted that property to its own use.
`22. As a result of HTC’s conversion, CyWee Motion has suffered damages, or will suffer
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`damages, in an amount to be determined at trial.
`23. As a result of HTC’s conversion, CyWee Motion is also entitled to injunctive relief
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`prohibiting HTC’s further use of the CyWee Software and requiring its immediate return.
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`SECOND CAUSE OF ACTION
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`(Unjust Enrichment and Constructive Trust)
`24. CyWee Motion repeats and realleges the preceding paragraphs of its Counterclaims
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`as though fully set forth herein.
`25. As explained above, HTC has improperly acquired, wrongfully retained and used the
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`CyWee Software without permission or authorization, which is property that in equity and
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`good conscience belong to CyWee Motion. HTC’s improper and illegal conduct has led to
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`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 13
`
`
`
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 14 of 17
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`its being unjustly enriched at CyWee Motion’s expense, in particular because it possesses
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`the CyWee Software and continues its unauthorized use of that software.
`26. As a result of HTC’s unjust enrichment, CyWee Motion is entitled to a judgment
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`that HTC holds all copies of the CyWee Software and all benefits derived therefrom in a
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`constructive trust on behalf of CyWee Motion, that CyWee Motion is entitled to a
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`disgorgement of any benefits HTC has received from its possession and use of the CyWee
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`Software, and that CyWee Motion is entitled to an injunction prohibiting HTC’s further use
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`of the CyWee Software and requiring its immediate return.
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`THIRD CAUSE OF ACTION
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`(Declaratory Judgment)
`27. CyWee Motion repeats and realleges the preceding paragraphs of its Counterclaims
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`as though fully set forth herein.
`28. This claim arises under the Federal Declaratory Judgment Act, 28 U.S.C. § 2201 et
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`seq.
`29. Actual and justiciable controversies exist between CyWee Motion and HTC with
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`respect to, among other things, the License Agreement, the CyWee Software, HTC’s claim
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`that it purchased motion sensor modules from the STM Entities that allegedly contained
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`CyWee Software, HTC’s unauthorized possession and use of the CyWee Software,
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`CyWee’s termination of the License Agreement, and HTC’s continued unauthorized
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`possession and use of CyWee Software despite that termination.
`30. CyWee Motion is entitled to a declaration that the License Agreement was
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`terminated as of July 19, 2018.
`31. CyWee Motion is entitled to a declaration that HTC is not, and has never been,
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`authorized to possess or use CyWee Software under the License Agreement, or otherwise
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`without compensation to CyWee Group and/or CyWee Motion.
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`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 14
`
`
`
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 15 of 17
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`32. CyWee Motion is entitled to a declaration that the dismissal of HTC’s third-party
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`claims against the STM Entities with prejudice extinguished any claims against or
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`affirmative defense by HTC of patent exhaustion based on allegations that HTC purchased
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`products from the STM Entities that contained CyWee Software, when in fact HTC knows
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`such products purchased from STM did not contain at the time of their purchase any
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`CyWee Software.
`33. CyWee Motion is entitled to a declaration that the dismissal of HTC’s third-party
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`claims against the STM Entities with prejudice extinguished any claim or defense by HTC
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`that it was licensed to use CyWee Software.
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`PRAYER FOR RELIEF
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`CyWee Motion respectfully requests that this Court order judgment in its favor on
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`each and every claim set forth above, and award it all relief including, but not limited to, the
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`following:
`a. Actual damages in an amount to be determined at trial;
`b. Punitive and exemplary damages in a sum to be ascertained at trial;
`c. Declarations as set forth in paragraphs 31-34 above;
`d. A preliminary and permanent injunction restraining HTC, its officers, agents,
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`servants, employees, affiliates and those in active concert or participation with
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`them from further use of CyWee Software and requiring the immediate return of
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`any and all copies of CyWee Software to CyWee Motion as set forth above;
`e. Imposition of a constructive trust on any CyWee Software in HTC’s possession,
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`as well as any benefits derived therefrom, and the disgorgement of any benefits
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`HTC has received from its possession and use of CyWee Software;
`f. Imposition of sanctions under RCW 4.84.185 or any other applicable rule on the
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`grounds that HTC’s Third-Party Complaint against CyWee Motion is frivolous
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`and has been advanced without reasonable cause as evidenced by, among other
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`THIRD PARTY DEFENDANT CYWEE MOTION GROUP,
`LTD.’S ANSWER AND CROSS-COUNTERCLAIMS
`CASE NO. 2:17-CV-932-JLR– 15
`
`
`
`
`SHORE CHAN DEPUMPO LLP
`901 MAIN STREET, SUITE 3300
`DALLAS, TX 75202
`TELEPHONE: 214-593-9110
`
`

`

`Case 2:17-cv-00932-JLR Document 102 Filed 09/26/18 Page 16 of 17
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`things, HTC’s continued maintenance of the Third-Party Complaint against
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`CyWee Motion despite its agreement to stipulate to a dismissal of the STM
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`Entities with prejudice;
`g. Costs and attorneys’ fees to the full extent available at law;
`h. Pre-judgment and post-judgment interest as allowed by law; and
`i. Such other and further relief as the Court deems just, equitable, and proper.
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`
`
`
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`Dated September 26, 2018.
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`
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`
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`Respectfully submitted,
`
`
`
`
`/s/Carmen E. Bremer
`Carmen E. Bremer, WSBA 47,565
`carmen.bremer@bremerlawgroup.com
`BREMER LAW GROUP PLLC
`1700 Seventh Avenue, Suite 2100
`Seattle, WA 98101
`T: (206) 357-8442
`F: (206) 858-9730
`
`Michael W. Shore* (mshore@shorechan.com)
`Alfonso G. Chan* (achan@shorechan.com)
`Christopher Evans* (cevans@shorechan.com)
`Ari B. Rafilson* (arafilson@shorechan.com)
`William D. Ellerman*
`(wellerman@shorechan.com)
`Paul T. Beeler* (pbeeler@shorechan.com)
`SHORE CHAN DEPUMPO LLP
`901 Main Street, Suite 3300
`Da