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`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 1 of 15
`
`THE HONORABLE JAMES L. ROBART
`
`UNITED STATES DISTRICT COURT
`WESTERN DISTRICT OF WASHINGTON
`AT SEATTLE
`
`CYWEE GROUP LTD.,
`
`Plaintiffs,
`
`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.
`
`CASE NO.: 2:17-cv-00932-JLR
`THIRD-PARTY COMPLAINT OF
`HTC CORPORATION AND HTC
`AMERICA, INC. FOR
`
`(1) INDEMNITY;
`
`(2) BREACH OF WARRANTY;
`
`(3) CONTRIBUTION; AND
`
`(4) VIOLATION OF UNFAIR
`BUSINESS PRACTICES-
`CONSUMER PROTECTION ACT
`
`JURY TRIAL DEMANDED
`
`HTC Corporation and HTC America, Inc. (together, “HTC” or “Third-Party Plaintiffs”),
`
`by and
`
`through
`
`their undersigned counsel, bring
`
`this Third-Party Complaint against
`
`STMicroelectronics N.V. and STMicroelectronics, Inc. (together, “STM”), and CyWee Motion
`
`Group Ltd. (“CyWee Motion”) (collectively, “Third-Party Defendants”) pursuant to Rule 14(a)
`
`of the Federal Rules of Civil Procedure and allege as follows:
`
`HTC’S THIRD-PARTY COMPLAINT - 1
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`

`

`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 2 of 15
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`PARTIES
`
`1. On information and belief, Plaintiff CyWee Group Ltd. (“CyWee” or “Plaintiff”) is a
`
`corporation organized and existing under the laws of the British Virgin Islands, with its principal
`
`place of business at 3F, No. 28, Lane 128, Jing Ye 1st Road, Taipei, Taiwan 10462.
`
`2. Defendant and Third-Party Plaintiff HTC Corporation is a corporation organized and
`
`existing under the laws of Taiwan, with its principal place of business located at No. 88, Section
`
`3, Zhongxing Road, Xindian District, New Taipei City 231, Taiwan 231.
`
`3. Defendant and Third-Party Plaintiff HTC America, Inc., is a Washington corporation,
`
`with its principal place of business located at 308 Occidental Avenue South, Floor 3, Seattle,
`
`Washington, 98104.
`
`4. On information and belief, Third-Party Defendant STMicroelectronics N.V. is a
`
`corporation organized and existing under the laws of the Netherlands, with its principal place of
`
`business located at WTC Schiphol Airport, Schiphol Boulevard 265, 1118 BH Schiphol, The
`
`Netherlands, where it can be served with process.
`
`5. On information and belief, Third-Party Defendant STMicroelectronics N.V. is a
`
`major semi-conductor company that does business, directly or through its subsidiary or
`
`intermediaries, in the State of Washington and in this District and elsewhere in the United States,
`
`including, without limitation, using, promoting, offering to sell, importing, and/or selling
`
`integrated circuit devices and enabling end-user purchasers to use such devices in this District.
`
`ST Microelectronics N.V.’s shares are traded, among other places, on the New York Stock
`
`Exchange.
`
`6. On information and belief, Third-Party Defendant STMicroelectronics, Inc., is a
`
`Delaware corporation, with its principal place of business located at 750 Canyon Drive, Suite
`
`300, Coppell, Texas, 75019. STMicroelectronics, Inc., is registered to do business in the State of
`
`Washington and can be served with process in this District through its registered agent, CT Corp
`
`System, 711 Capitol Way South, Suite 204, Olympia, Washington, 98501. On information and
`
`belief, STMicroelectronics, Inc., is a wholly-owned subsidiary of STMicroelectronics N.V.
`
`HTC’S THIRD-PARTY COMPLAINT - 2
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`

`

`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 3 of 15
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`7. On information and belief, Third-Party Defendant CyWee Motion 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, where it can
`
`be served with process.
`
`8. On information and belief, CyWee Motion is affiliated with CyWee. On information
`
`and belief, CyWee Motion and CyWee have common and overlapping shareholders.
`
`JURISDICTION AND VENUE
`
`9. This Court has subject matter jurisdiction over this impleader action pursuant to Rule
`
`14 of the Federal Rules of Civil Procedure. This Court further has supplemental subject matter
`
`jurisdiction over this impleader action under 28 U.S.C. § 1367(a) because this action is so related
`
`to the claims brought by Plaintiff that it forms part of the same case and controversy.
`
`10. This Court further has subject matter jurisdiction over this dispute pursuant to 28
`
`U.S.C. § 1332 because this is an action between citizens of different states and because the value
`
`of declaratory and injunctive relief sought, the value of HTC’s rights that this action will protect
`
`and enforce, and the extent of the injury to be prevented exceed the amount of $75,000,
`
`exclusive of interest and costs.
`
`11. On information and belief, STM are subject to this Court’s general personal
`
`jurisdiction, consistent with the principles of due process and the Washington Long Arm Statute.
`
`On information and belief, STMicroelectronics, Inc., maintains offices and facilities in the
`
`Western District of Washington, has employees in the Western District of Washington, offers
`
`products in the Western District of Washington, and/or has transacted business in this District.
`
`In addition to maintaining an office in Redmond, Washington, STMicroelectronics, Inc., also has
`
`offices throughout the United States, including California, New Jersey, Alabama, Colorado,
`
`Indiana, Minnesota, Pennsylvania, Texas, Michigan, New York, South Carolina, Illinois,
`
`Oregon, and Missouri. Accordingly, STMicroelectronics, Inc., transacts substantial business in
`
`this District and throughout the United States, and thus voluntarily avails itself of the laws of the
`
`United States and Washington so as to be subject to the jurisdiction of this Court.
`
`HTC’S THIRD-PARTY COMPLAINT - 3
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`

`

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`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 4 of 15
`
`12. On information and belief, STMicroelectronics N.V. is the parent company of
`
`STMicroelectronics, Inc., and thus does business, directly or through its subsidiary or
`
`intermediaries, in the State of Washington, in this District, and elsewhere in the United States,
`
`including, without limitation, using, promoting, offering to sell, importing, and/or selling
`
`integrated circuit devices and enabling end-user purchasers to use such devices in this District.
`
`13. Third-Party Defendants are also subject to specific personal jurisdiction in the State
`
`of Washington. Third-Party Defendants designed, implemented, manufactured, sold and
`
`provided products and technology to be incorporated into products sold by HTC Corporation and
`
`HTC America, Inc. Third-Party Defendants knew that these products were sold in the United
`
`States, including in this District and the State of Washington.
`
`14. On information and belief, in a 2015 press release issued in San Jose, California, and
`
`Taipei, Taiwan, CyWee Motion identified HTC as one of its “[c]ustomers that have licensed our
`Sensor Fusion Hub solution”.1
`15. Because Third-Party Defendants engaged in conduct purposefully directed to the
`
`State of Washington, they are subject to the jurisdiction of this Court.
`
`16. Venue for this Third-Party Complaint is proper under 28 U.S.C. §§ 1391(b)-(c)
`
`and/or 28 U.S.C. § 1400(b) in that the acts underlying this Third-Party Complaint were
`
`performed in full or in part in this District and because Third-Party Defendants are subject to
`
`personal jurisdiction in this District.
`
`FACTUAL BACKGROUND
`
`17. Founded in 1997, HTC pioneered the smartphone market, credited with many
`
`industry firsts and technology breakthroughs over the past twenty years—a history defined by
`
`innovation, design and engineering excellence, and the building of strategic partnerships to
`
`1 CyweeMotion’s Sensor Fusion Hub Software Now Available on Cadence Tensilica Fusion DSP, PR
`Newswire (Dec. 15, 2015), https://www.prnewswire.com/news-releases/cyweemotions-sensor-fusion-hub-software-
`now-available-on-cadence-tensilica-fusion-dsp-300192855.html (last visited January 11, 2018) (emphasis added).
`
`HTC’S THIRD-PARTY COMPLAINT - 4
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`

`

`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 5 of 15
`
`facilitate the development of an industry ecosystem. HTC invested heavily in research and
`
`development, which accounts for about a third of HTC’s employees.
`
`18. In its First Amended Complaint, CyWee alleges that HTC infringes United States
`
`Patent No. 8,441,438 (“the ’438 Patent”) and United States Patent No. 8,552,978 (“the ’978
`
`Patent”) (together, “Patents-in-Suit”) by making, using, selling, offering to sell, and/or importing
`
`into the United States products that embody or practice the apparatus and/or method covered by
`
`one or more of the claims of the Patents-in-Suit, including the HTC One M9, HTC One A9, HTC
`
`10, HTC Bolt, and HTC U Ultra (collectively, “Accused Products”).
`
`19. HTC does not infringe any valid and enforceable claim of the ’438 Patent or the ’978
`
`Patent.
`
`20. HTC’s Accused Products do not use the accused system and software implementation
`
`as alleged by CyWee in its Complaint (Dkt. 1), its First Amended Complaint and Exhibits (Dkts.
`
`20, 20-1, 20-2, 20-3), and its infringement contentions served on HTC on December 29, 2017.
`
`21. CyWee’s infringement allegations focus upon the motion sensor device and
`
`functionalities in a wireless device.
`
`22. STM design, manufacture, offer to sell, and sell motion sensor devices—including
`
`those found in HTC’s Accused Products—that incorporate software provided by CyWee Motion.
`
`23. To the extent HTC’s Accused Products incorporate systems or software that allegedly
`
`or substantially practice one or more claims of the Patents-in-Suit, those motion sensor devices
`
`and software were provided by STM as part of the Sensor Fusion Hub and by CyWee Motion as
`
`part of the Sensor Fusion Hub Software, commonly referred to as the “CyWee library.”
`
`24. On or about January 18, 2013, HTC, CyWee Motion, and STM entered into a
`
`commercial relationship to jointly develop and incorporate sensor hub device technology into
`
`HTC products, including the Accused Products.
`
`25. CyWee Motion and HTC understood that this commercial relationship would provide
`
`HTC with a license to the Sensor Fusion Hub technology.
`
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`HTC’S THIRD-PARTY COMPLAINT - 5
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`

`

`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 6 of 15
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`26. On information and belief, CyWee Motion has advertised that HTC is a licensed
`
`customer of the “Sensor Fusion Hub solution” in a press releases as follows:
`
`Customers that have licensed our Sensor Fusion Hub solution
`include HTC, Lenovo, ZTE, Gionee, Meizu, etc. CyweeMotion is
`headquartered in Taipei, Taiwan with sales offices in both Taiwan and
`Beijing, China.2
`
`27. On information and belief, CyWee Motion promoted and continues to promote the
`
`sale and use of its Sensor Fusion Hub Software, including through its website, press releases, and
`
`at trade shows around the world and in the United States.
`
`28. On information and belief, CyWee and/or its affiliate, CyWee Motion, entered into a
`
`patent license agreement with STM granting STM the right to make, use, or sell sensor hub
`
`devices that allegedly practice or embody the Patents-in-Suit.
`
`29. On information and belief, CyWee Motion is affiliated with CyWee and holds itself
`
`out as an authorized and licensed technology provider for the CyWee Motion Sensor Fusion Hub
`
`and Sensor Fusion Hub Software and related motion sensor technology.
`
`30. On information and belief, CyWee has known, since at least January 18, 2013, that
`
`HTC’s Accused Products incorporate sensor hub devices purchased from CyWee’s licensee,
`
`STM, and technology supplied by CyWee’s licensee, CyWee Motion.
`
`31. On information and belief, the authorized sale by CyWee’s licensees to HTC of the
`
`sensor hub devices with technology and software that allegedly embody or substantially embody
`
`one or more claims of the Patents-in-Suit exhausts CyWee’s patent rights in those products.
`
`32. STM sold and supplied to HTC certain motion sensor devices and technology,
`
`including the Sensor Fusion Hub, that incorporate Sensor Fusion Hub Software that STM taught
`
`as being required to operate the Sensor Fusion Hub, pursuant to purchase order agreements that
`
`obligate STM to defend and indemnify HTC with respect to claims of patent infringement.
`
`2 CyweeMotion’s Sensor Fusion Hub Software Now Available on Cadence Tensilica Fusion DSP, PR
`Newswire (Dec. 15, 2015), https://www.prnewswire.com/news-releases/cyweemotions-sensor-fusion-hub-software-
`now-available-on-cadence-tensilica-fusion-dsp-300192855.html (last visited January 11, 2018) (emphasis added).
`
`HTC’S THIRD-PARTY COMPLAINT - 6
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`

`

`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 7 of 15
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`33. On information and belief, at the time when STM and CyWee Motion offered for
`
`sale, sold, and provided to HTC the Sensor Fusion Hub and Sensor Fusion Hub Software, STM
`
`and CyWee Motion knew that the Sensor Fusion Hub and Sensor Fusion Hub Software would be
`
`incorporated into products sold by HTC Corporation and HTC America, Inc., worldwide,
`
`including in the United States and the State of Washington.
`
`34. Any and all allegations by CyWee that HTC infringes any of CyWee’s patents are
`
`based upon the Sensor Fusion Hub and Sensor Fusion Hub Software that were designed, used,
`
`manufactured, taught, required, offered for sale, and/or sold by Third-Party Defendants.
`
`Accordingly, HTC asserts that STM and CyWee Motion have induced infringement of, or
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`contributorily infringed and continue to induce infringement of and/or contributorily infringe
`
`CyWee’s Patents-in-Suit by, among other things, offering to sell or selling the Sensor Fusion
`
`Hub and Sensor Fusion Hub Software and/or requiring or teaching that the Sensor Fusion Hub
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`and Sensor Fusion Hub Software must be used with the allegedly infringing technology.
`
`35. Third-Party Plaintiffs have incurred and continue to incur attorney fees and other
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`expenses in defense of the lawsuit brought by CyWee, and Third-Party Plaintiffs will continue to
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`incur such fees and expenses until resolution of the lawsuit. As such, Third-Party Plaintiffs have
`
`been injured and continue to be injured by the failure of STM and CyWee Motion to defend
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`HTC against CyWee’s claims.
`
`36. With respect to the claims of patent infringement against accused products and
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`technology supplied by STM and CyWee Motion, some or all alleged liability will have resulted
`
`from HTC’s use of devices and software provided to HTC by STM and CyWee Motion.
`
`37. As a result, impleader is proper under Rule 14 of the Federal Rules of Civil
`
`Procedure.
`
`FIRST CAUSE OF ACTION
`
`(Indemnity)
`
`38. Third-Party Plaintiffs repeat and reallege the preceding paragraphs of the Third-Party
`
`Complaint as though fully set forth herein.
`
`HTC’S THIRD-PARTY COMPLAINT - 7
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`

`

`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 8 of 15
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`39. Without admitting, and on the contrary denying, the allegations of infringement of the
`
`’438 Patent and the ’978 Patent made by CyWee, Third-Party Plaintiffs are entitled to indemnity
`
`and defense from STM, together with costs, interest, and attorneys’ fees.
`
`40. STM knew facts material to HTC’s continued purchase of the Sensor Fusion Hub and
`
`Sensor Fusion Hub Software: (1) HTC incorporated the Sensor Fusion Hub and Sensor Fusion
`
`Hub Software into its mobile products; (2) HTC sold the mobile devices incorporating the Sensor
`
`Fusion Hub and Sensor Fusion Hub Software in the United States, including in the State of
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`Washington; (3) CyWee claimed to own the Patents-in-Suit pertaining to motion sensor device
`
`technology; and (4) Third-Party Defendants’ technology was subject to a license agreement with
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`CyWee.
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`41. The Sensor Fusion Hub and Sensor Fusion Hub Software used by HTC are used in
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`the ordinary and anticipated operation, and in accordance with manufacturer STM’s and their
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`software provider’s teachings and/or requirements, which STM instructed HTC to follow, and
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`which STM claimed are necessary for their ordinary and anticipated operation.
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`42. STM did not and has not informed HTC of their knowledge of CyWee’s Patents-in-
`
`Suit and their knowledge of the infringement risk of CyWee’s Patents-in-Suit by the Sensor
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`Fusion Hub and Sensor Fusion Hub Software provided, taught, and/or required by STM along
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`with their software provider CyWee Motion. HTC first learned of the infringement accusations
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`by CyWee from CyWee’s June 2017 Complaint, and informed Third-Party Defendants of the
`
`Complaint and its allegations, seeking indemnity from STM. STM refused to indemnify HTC
`
`despite its obligation to do so.
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`43. STM’s refusal to indemnify HTC has damaged HTC in an amount to be determined at
`
`trial, which includes, but is not limited to, any amount or other consideration that Third-Party
`
`Plaintiffs are required to pay to CyWee either as a result of any judgment resulting from
`
`CyWee’s First Amended Complaint or as a result of any settlement or compromise of claims in
`
`that First Amended Complaint, any and all damages to HTC’s business and reputation, including
`
`any and all consequential damages, including losses, damages, and expenses should CyWee be
`
`HTC’S THIRD-PARTY COMPLAINT - 8
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`

`

`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 9 of 15
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`granted any injunctive relief resulting from its First Amended Complaint against the motion
`
`sensor device technology in HTC’s mobile products and provided, taught, and/or required by
`
`Third-Party Defendants, and HTC’s costs and fees in having to bring legal action to seek STM’s
`
`compliance with their indemnification obligation.
`
`SECOND CAUSE OF ACTION
`
`(Breach of Warranty of Title)
`
`44. Third-Party Plaintiffs repeat and reallege the preceding paragraphs of the Third-Party
`
`Complaint as though fully set forth herein.
`
`45. Without admitting, and on the contrary denying, the allegations of infringement of the
`
`’438 Patent and the ’978 Patent made by CyWee, STM are liable to HTC for breach of the
`
`warranty of title under Section 2-312 of the Uniform Commercial Code (“UCC”), or in the
`
`alternative, under Article 42 of the United Nations Convention on Contracts for the International
`
`Sale of Goods (“CISG”).
`
`46. STM knew facts material to HTC’s continued purchase of the Sensor Fusion Hub and
`
`Sensor Fusion Hub Software: (1) HTC incorporated the Sensor Fusion Hub and Sensor Fusion
`
`Hub Software into its mobile products; (2) HTC sold the mobile devices incorporating the Sensor
`
`Fusion Hub and Sensor Fusion Hub Software in the United States, including in the State of
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`Washington; (3) CyWee claimed to own the Patents-in-Suit pertaining to sensor device
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`technology; and (4) Third-Party Defendants’ technology was subject to a license agreement with
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`CyWee.
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`47. The Sensor Fusion Hub and Sensor Fusion Hub Software used by HTC are used in
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`the ordinary and anticipated operation, and in accordance with manufacturer STM’s and their
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`software provider’s teachings and/or requirements, which STM instructed HTC to follow, and
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`which STM claims are necessary for their ordinary and anticipated operation.
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`48. STM did not and have not informed HTC of their knowledge of CyWee’s Patents-in-
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`Suit and their knowledge of the infringement risk of CyWee’s Patents-in-Suit by the Sensor
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`Fusion Hub and Sensor Fusion Hub Software provided, taught, and/or required by STM. HTC
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`HTC’S THIRD-PARTY COMPLAINT - 9
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`

`

`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 10 of 15
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`first learned of the infringement accusations by CyWee from CyWee’s June 2017 Complaint,
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`and promptly informed Third-Party Defendants of the accusations, seeking indemnity from
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`STM. STM refused to indemnify HTC despite their obligation to do so.
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`49. STM’s breach of the warranty damaged HTC in an amount to be determined at trial,
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`which includes, but is not limited to, any damage to which Third-Party Plaintiffs are entitled to
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`pursuant to the UCC, or in the alternative, under the CISG, any amount or other consideration
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`that Third-Party Plaintiffs are required to pay to CyWee either as a result of any judgment
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`resulting from CyWee’s First Amended Complaint or as a result of any settlement or
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`compromise of claims in that First Amended Complaint, any and all damages to HTC’s business
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`and reputation, including any and all consequential damages, including losses, damages, and
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`expenses should CyWee be granted any injunctive relief resulting from its First Amended
`
`Complaint against the motion sensor device technology in HTC’s mobile products and provided,
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`taught, and/or required by Third-Party Defendants, and HTC’s costs and fees in having to bring
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`legal action to seek Third-Party Defendants’ compliance with this warranty.
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`50. HTC seeks a declaratory judgment stating the respective duties and obligations of the
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`parties as set forth herein.
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`THIRD CAUSE OF ACTION
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`(Contribution)
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`51. Third-Party Plaintiffs repeat and reallege the preceding paragraphs of the Third-Party
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`Complaint as though fully set forth herein.
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`52. Without admitting, and on the contrary denying, the allegations of infringement of the
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`’438 Patent and the ’978 Patent made by CyWee, Third-Party Plaintiffs are entitled to
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`contribution from STM and CyWee Motion, jointly and severally, together with costs, interest,
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`and attorneys’ fees.
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`53. Third-Party Plaintiffs are entitled to a declaratory judgment stating the respective
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`duties and obligations of the parties as set forth herein.
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`HTC’S THIRD-PARTY COMPLAINT - 10
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`

`

`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 11 of 15
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`FOURTH CAUSE OF ACTION
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`(Violation of the Unfair Business Practices-Consumer Protection Act)
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`54. HTC repeats and realleges the preceding paragraphs of the Third-Party Complaint as
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`though fully set forth herein.
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`55. On information and belief, CyWee Motion promoted the Sensor Fusion Hub Software
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`for incorporation into HTC’s mobile products, and advertised, sold, and offered for sale the
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`Sensor Fusion Hub Software to customers and potential customers in the United States, including
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`HTC America, Inc., in the State of Washington and elsewhere.
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`56. On information and belief, CyWee Motion promoted the motion sensor devices and
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`technology solutions, including the Sensor Fusion Hub Software, and distributed, sold, and
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`offered for sale the motion sensor devices and technology solutions to customers and potential
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`customers in the United States, including in the State of Washington, California, and elsewhere.
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`57. On information and belief, CyWee Motion has not informed customers and potential
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`customers of CyWee’s Patents-in-Suit and the infringement risk by the Sensor Fusion Hub
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`Software provided, taught, and/or required by CyWee Motion, despite having knowledge of the
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`Patents-in-Suit, which CyWee claims to own.
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`58. CyWee Motion’s failure to inform customers of CyWee’s Patents-in-Suit and the
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`infringement risk is likely to deceive customers and potential customers into believing that use of
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`the Sensor Fusion Hub Software is free from infringement of CyWee’s Patents-in-Suit.
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`59. CyWee Motion has engaged in unlawful, unfair, and/or fraudulent business acts or
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`practices and/or unfair, deceptive, untrue, or misleading advertising within the meaning of the
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`State of Washington’s Unfair Business Practices-Consumer Protection Act under Sections
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`19.86.010 to 19.86.920 of the Revised Code of Washington. These violations include selling
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`and/or offering for sale the Sensor Fusion Hub Software, while advertising and directing HTC to
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`comply with the motion sensor technology and software, without informing customers, including
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`HTC, of CyWee’s Patents-in-Suit and the infringement risk, despite having had knowledge of
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`CyWee’s Patents-in-Suit, since at least 2013. As such, Third-Party Defendants contributorily
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`HTC’S THIRD-PARTY COMPLAINT - 11
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`

`

`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 12 of 15
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`infringed and/or actively induced infringement of CyWee’s Patents-in-Suit, and committed acts
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`of fraud, fraudulent concealment, deceit, and/or misrepresentation.
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`60. HTC relied upon CyWee Motion’s teachings and requirements and have used its
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`Sensor Fusion Hub Software in its ordinary and anticipated operation, in accordance with
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`CyWee Motion’s teachings and/or requirements.
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`61. HTC has been injured by using, incorporating, and complying with CyWee Motion’s
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`Sensor Fusion Hub Software products and requirements by being the subject of and having to
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`defend against CyWee’s patent infringement claims, which focus on CyWee Motion’s motion
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`sensor technology.
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`PRAYER FOR RELIEF
`
`HTC respectfully request that this Court order judgment in their favor on each and every
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`claim set forth above, and award them relief including, but not limited to, the following:
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`a. A judgment that STM are liable to HTC for indemnification of any amount or other
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`consideration that Third-Party Plaintiffs are required to pay to CyWee either as a result of any
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`judgment resulting from CyWee’s Complaint or as a result of any settlement or compromise of
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`claims in that Complaint, any and all damages to HTC’s business and reputation, including any
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`and all consequential damages, including losses, damages, and expenses should CyWee be
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`granted any injunctive relief resulting from its First Amended Complaint against the sensor
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`device technology in HTC’s mobile products and provided, taught, and/or required by Third-
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`Party Defendants, and HTC’s costs and fees in having to bring legal action to seek STM’s
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`compliance with its indemnification obligation;
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`b. A judgment that Third-Party Defendants are liable to HTC for contribution of any
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`judgment of patent infringement, or payment paid in compromise or settlement, for infringement
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`allegations made in this case under CyWee’s Patents-in-Suit, including any enhanced damages,
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`costs, or attorneys’ fees;
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`HTC’S THIRD-PARTY COMPLAINT - 12
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`

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`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 13 of 15
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`c. Injunctive relief preventing CyWee Motion from soliciting sales for, offering for sale,
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`and/or selling the Sensor Fusion Hub Software under Washington Revised Code Sections
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`19.86.010 to 19.86.920;
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`d. Damages in an amount to be determined at trial;
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`e. Costs and attorneys’ fees to the full extent available at law;
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`f. For pre-judgment and post-judgment interest; and
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`g. Such other and further relief as the Court deems just, equitable, and proper.
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`DEMAND FOR JURY TRIAL
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`Third-Party Plaintiffs hereby request a trial by jury, pursuant to Rule 38 of the Federal
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`Rules of Civil Procedure, on all issues so triable.
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`Dated: January 11, 2018
`
`Respectfully submitted,
`
`/s/ Gregory L. Watts
`Gregory L. Watts, WSBA #43995
`WILSON SONSINI GOODRICH & ROSATI
`Professional Corporation
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Telephone: (206) 883-2500
`Facsimile: (206) 883-2699
`Email: gwatts@wsgr.com
`
`James C. Yoon, CA Bar #177155
`(pro hac vice)
`Ryan R. Smith, CA Bar #229323
`(pro hac vice application pending)
`Albert Shih, CA Bar # 251726
`(pro hac vice)
`Jamie Y. Otto, CA Bar # 295099
`(pro hac vice)
`Ty W. Callahan, CA Bar # 312548
`(pro hac vice application pending)
`WILSON SONSINI GOODRICH & ROSATI
`Professional Corporation
`650 Page Mill Road
`Palo Alto, CA 94304-1050
`Telephone: (650) 493-9300
`Facsimile: (650) 565-5100
`
`HTC’S THIRD-PARTY COMPLAINT - 13
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`

`

`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 14 of 15
`
`Email: jyoon@wsgr.com
`rsmith@wsgr.com
`ashih@wsgr.com
`jotto@wsgr.com
`tcallahan@wsgr.com
`
`Attorneys for Defendants
`HTC Corporation and HTC America, Inc.
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`HTC’S THIRD-PARTY COMPLAINT - 14
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`

`

`Case 2:17-cv-00932-JLR Document 43 Filed 01/11/18 Page 15 of 15
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`CERTIFICATE OF SERVICE
`I hereby certify that on January 11, 2018, I filed the foregoing with the Clerk of the Court
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`using the CM/ECF system, and served all parties via ECF.
`
`Dated: January 11, 2018
`
`s/ Gregory L. Watts
`Gregory L. Watts
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`HTC’S THIRD-PARTY COMPLAINT - 15
`2:17-cv-00932-JLR
`
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`Tel: (206) 883-2500
`Fax: (206) 883-2699
`
`