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IN THE UNITED STATES DISTRICT COURT 

FOR THE WESTERN DISTRICT OF TEXAS

WACO DIVISION

WSOU INVESTMENTS, LLC d/b/a 

BRAZOS LICENSING AND 

DEVELOPMENT,

Plaintiff,

v.

ZTE CORPORATION, ZTE (USA) 

INC., AND ZTE (TX), INC. 

Defendants.

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CIVIL ACTION NO. 6:20-cv-491-ADA

JURY TRIAL DEMANDED

FIRST AMENDED COMPLAINT FOR PATENT 

INFRINGEMENT

Plaintiff WSOU Investments, LLC d/b/a Brazos Licensing and Development (“Brazos” 

or “Plaintiff”), by and through its attorneys, files this First Amended Complaint for Patent 

Infringement (“Complaint”) against Defendants ZTE Corporation, ZTE (USA), Inc. and ZTE 

(TX), Inc. (collectively “ZTE” or “Defendants”) and alleges:

NATURE OF THE ACTION

1. This is a civil action for patent infringement arising under the Patent Laws of the 

United States, 35 U.S.C. §§ 1, et seq., including §§ 271, 281, 284, and 285.

THE PARTIES

2. Brazos is a limited liability corporation organized and existing under the laws of 

Delaware, with its principal place of business at 605 Austin Ave, Ste 6, Waco, TX 76701.

3. On information and belief, Defendant Zhongxing Telecommunications 

Equipment (abbreviated as “ZTE”) Corporation (“ZTE Corp.”) is a Chinese corporation that 

does business in Texas, directly or through intermediaries, with a principal place of business at 

ZTE Plaza, Keji Road South, Hi-Tech Industrial Park, Nanshan District, Shenzhen China.

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4. On information and belief, Defendant ZTE (USA) Inc. is a New Jersey 

corporation that does business in Texas, directly or through intermediaries, with a principal place 

of business in business in Richardson, Texas.

5. On information and belief, Defendant ZTE (TX) Inc. is a Texas corporation that 

does business in Texas, directly or through intermediaries, with a principal place of business in 

business in Austin, Texas.

6. All of the Defendants operate under and identify with the trade name “ZTE.” 

Each of the Defendants may be referred to individually as a “ZTE Defendant” and, collectively, 

Defendants may be referred to below as “ZTE” or as the “ZTE Defendants.”

JURISDICTION AND VENUE

7. This is an action for patent infringement which arises under the Patent Laws of 

the United States, in particular, 35 U.S.C. §§271, 281, 284, and 285.

8. This Court has jurisdiction over the subject matter of this action under 28 U.S.C.

§§ 1331 and 1338(a).

9. This Court has specific and general personal jurisdiction over each ZTE

Defendant pursuant to due process and/or the Texas Long Arm Statute, because each ZTE

Defendant has committed acts giving rise to this action within Texas and within this judicial 

district. The Court’s exercise of jurisdiction over each ZTE Defendant would not offend 

traditional notions of fair play and substantial justice because ZTE has established minimum 

contacts with the forum. For example, on information and belief, ZTE Defendants have 

committed acts of infringement in this judicial district, by among other things, selling and 

offering for sale products that infringe the asserted patent, directly or through intermediaries, as 

alleged herein.

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10. Jurisdiction is also proper because ZTE Defendants place goods and/or services, 

including Accused Products, into the stream of commerce knowing they will end up in Texas. 

Indeed, ZTE Defendants take actions purposefully directed toward Texas to place goods and/or 

services into the stream of commerce here. 

11. On information and belief, ZTE Corp. sells and/or licenses Accused Products 

directly to a company headquartered in Richardson, Texas—ZTE (USA) Inc.—and ships them 

to that company’s headquarters in Richardson, Texas.

12. On Information and belief, ZTE Corp. targets other Texas customers through ZTE 

(USA) Inc.’s website and ships Accused Products to customers in Texas. 

13. ZTE Corp. specifically targets Accused Products at individuals and companies in 

Texas at least by selling and/or licensing Accused Products directly to ZTE (USA) Inc., a 

consumer and distributor of Accused Products manufactured by ZTE Corp., and by shipping 

Accused Products to ZTE (USA) Inc. for distribution in Texas. 

14. On information and belief, ZTE Corp. assists ZTE (USA) Inc. with 

troubleshooting or other technical support of ZTE Corp. equipment sold in the United States, 

including Texas. 

15. Both ZTE Corp. and ZTE (USA) Inc. have issued releases from Richardson, 

Texas marketing ZTE products, including Accused Products. These releases are hosted on ZTE 

Corp.’s website and include a “ZTE Corporation” copyright.

16. On November 20, 2019, ZTE (USA) Inc. issued a release from “RICHARDSON, 

Texas” advertising Black Friday Deals on several products, including Blade 10 and Axon 10 

Pro. The release explains that “ZTE USA” is “headquartered in Richardson, Texas,” provides 

information to directly contact ZTE (USA) Inc. and indicates that “shoppers can enjoy free 

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shipping and easy 30 day returns for ZTE products at www.zteusa.com. The release is hosted 

on ZTE Corp.’s website and includes a “ZTE Corporation” copyright. 

17. On October 15, 2019, ZTE Corp. issued a release from “RICHARDSON, Texas” 

announcing that Blade Vantage 2 would be available in “Verizon stores across the U.S.” and 

would “operate on Verizon’s national network.” 

18. On information and belief, most imports from ZTE Corp. to the United States are 

shipments to ZTE (USA) Inc. 

19. On information and belief, most imports received by ZTE (USA) Inc. are imports 

from ZTE Corp. 

20. On information and belief, ZTE Corp. regularly ships goods to ZTE (USA) Inc.’s 

headquarters at 2425 N Central Expressway in Richardson, Texas. 

21. On information and belief, ZTE Corp. regularly ships goods to other addresses in 

Texas.

22. Venue in the Western District of Texas is proper pursuant to 28 U.S.C. §§1391

and/or 1400(b). The ZTE Defendants have committed acts of infringement and have places of 

businesses in this District and/or are foreign entities for purpose of §1391. As non-limiting 

examples, ZTE (TX) has maintained a place of business at 7000 N MO-PAC EXPRESSWAY 

200 AUSTIN, TX 7873; and, ZTE (USA) has maintained a place of business at 6500 River Place 

Blvd., Austin, TX 78730. ZTE Corporation also describes a “research-and-development center 

in Austin, Texas.”1

1 https://res-www.zte.com.cn/mediares/magazine/publication/tech_en/pdf/201009.pdf

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COUNT ONE - INFRINGEMENT OF 

U.S. PATENT NO. 8,730,905

23. Brazos re-alleges and incorporates by reference the preceding paragraphs of this 

Complaint.

24. On May 20, 2014, the United States Patent and Trademark Office duly and legally 

issued U.S. Patent No. 8,730,905 (“the ’905 Patent”), entitled “TRANSMISSION RESOURCE 

RESERVATION SCHEME.” A true and correct copy of the ’905 Patent is attached as Exhibit 

A to this Complaint.

25. Brazos is the owner of all rights, title, and interest in and to the ’905 Patent, 

including the right to assert all causes of action arising under the ’905 Patent and the right to any 

remedies for the infringement of the ’905 Patent.

26. ZTE makes, uses, sells, offers for sale, imports, and/or distributes, in the United 

States, communication devices, including hotspots, routers, switches, gateways, and phones

supporting IEEE 802.11ac (collectively, the “Accused Products”).

27. The Accused Products include hotspots, including AT&T Velocity 2, MF923,

and Z915; routers, including the Z700A; switches, including the ZXWE A5224; gateways, 

including the ZXHN F2867S; and phones, including Axon 10 Pro. 

28. The Accused Products implement the IEEE 802.11ac standard for Wireless 

Communication (Wi-Fi). 

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https://www.zteusa.com/axon10pro.

https://www.zteusa.com/products/mobile-broadband/att-velocity-2.

29. The Accused Products implements the IEEE 802.11ac standard for wireless 

communication, allowing a first wireless device to communicate with a second wireless device.

30. The Accused Products provides a feature of Bandwidth Signaling under Dynamic 

Bandwidth Operation. Dynamic Bandwidth Operation employs Request To Send (RTS) and 

Clear To Send (CTS) frames to negotiate bandwidth.

31. A first 802.11ac device duplicates an RTS frame and send sit to another 802.11ac 

device on channels that are to be reserved for the time slot of transmission. The RTS frame is 

embedded with the bandwidth signaling transmitter address field indicating the request of 

reservation. The first 802.11ac device sends the duplicated RTS frame when holding the 

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transmission opportunity (TXOP). 

https://ieeexplore.ieee.org/document/7786995 (Page 1313).

32. IEEE 802.11ac provides secondary channels, including a secondary 20MHz 

channel, Secondary 40MHz Channel, and Secondary 80MHz Channel.

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https://ieeexplore.ieee.org/document/7786995 (Page 1313).

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http://euro.ecom.cmu.edu/resources/elibrary/auto/802dot11ac_A_Survival_Guide.pdf (Page 

69).

33. The second 802.11ac device conducts a Clear Channel Assessment (CCA) and 

checks if the required channels are idle for a particular amount of time before receiving the RTS 

frame. Also, the Network Allocation Vector (NAV) is checked if idle or the channel has been 

already reserved. Thus, the second 802.11ac device monitors for the availability of a secondary 

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channel.

https://ieeexplore.ieee.org/document/7786995 (Page 1313).

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http://euro.ecom.cmu.edu/resources/elibrary/auto/802dot11ac_A_Survival_Guide.pdf (Page 

69). 

34. The time period of the availability of channels is evaluated from the RTS frame 

received by the second 802.11ac device. 

https://ieeexplore.ieee.org/document/7786995 (Page 1314).

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35. The second 802.11ac device monitors for the availability of the secondary 

channel requested by the first 802.11ac device and checks if the CCA and NAV are idle and 

determines if the secondary channel is idle for the requested transmission period. On detection 

of the availability of the secondary channel, the second 802.11ac device sends a Clear To Send 

(CTS) frame confirming the availability of the requested secondary channel.

https://ieeexplore.ieee.org/document/7786995 (Page 1313).

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http://euro.ecom.cmu.edu/resources/elibrary/auto/802dot11ac_A_Survival_Guide.pdf (Page 

51).

https://ieeexplore.ieee.org/document/7786995 (Page 1314).

36. When the second 802.11ac device finds the availability of only a part of the 

requested secondary channel, it is indicated by a CTS frame with different parameter values.

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The CTS frame (reservation response message) indicates the availability of the requested 

frequency band and indicates the mobile device to increase the bandwidth of transmission.

http://euro.ecom.cmu.edu/resources/elibrary/auto/802dot11ac_A_Survival_Guide.pdf (Page 

69). 

37. In view of preceding paragraphs, each and every element of at least claim 6 of the 

’905 Patent is found in the Accused Products.

38. ZTE has and continues to directly infringe at least one claim of the ’905 Patent, 

literally or under the doctrine of equivalents, by making, using, selling, offering for sale, 

importing, and/or distributing the Accused Products in the United States, including within this 

judicial district, without the authority of Brazos.

39. ZTE has received notice and actual or constructive knowledge of the ’905 Patent 

since at least the date of service of this Complaint.

40. Since at least the date of service of this Complaint, through its actions, ZTE has 

actively induced product makers, distributors, retailers, and/or end users of the Accused Products 

to infringe the ’905 Patent throughout the United States, including within this judicial district, 

by, among other things, advertising and promoting the use of the Accused Products in various 

websites, including providing and disseminating product descriptions, operating manuals, and 

other instructions on how to implement and configure the Accused Products. Examples of such 

advertising, promoting, and/or instructing include the documents at:

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• https://www.zteusa.com/axon10pro

• https://www.zteusa.com/products/mobile-broadband/att-velocity-2

• https://www.zte.com.cn/global/about/news/408648

• http://enterprise.zte.com.cn/en/products/network_lnfrastructure/switches/WLAN_

AP/201711/t20171102_466053.html

41. Since at least the date of service of this Complaint, through its actions, ZTE has 

contributed to the infringement of the ’905 Patent by having others sell, offer for sale, or use the 

Accused Products throughout the United States, including within this judicial district, with

knowledge that the Accused Products infringe the ’905 Patent. The Accused Products are 

especially made or adapted for infringing the ’905 Patent and have no substantial non-infringing 

use. For example, in view of the preceding paragraphs, the Accused Products contain 

functionality which is material to at least one claim of the ’905 Patent.

JURY DEMAND

Brazos hereby demands a jury on all issues so triable.

REQUEST FOR RELIEF

WHEREFORE, Brazos respectfully requests that the Court:

(A) Enter judgment that ZTE infringes one or more claims of the ’905 Patent literally 

and/or under the doctrine of equivalents;

(B) Enter judgment that ZTE has induced infringement and continues to induce 

infringement of one or more claims of the ’905 Patent;

(C) Enter judgment that ZTE has contributed to and continues to contribute to the 

infringement of one or more claims of the ’905 Patent;

(D) Award Brazos damages, to be paid by ZTE in an amount adequate to compensate 

Brazos for such damages, together with pre-judgment and post-judgment interest for the 

infringement by ZTE of the ’905 Patent through the date such judgment is entered in accordance 

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with 35 U.S.C. §284, and increase such award by up to three times the amount found or assessed 

in accordance with 35 U.S.C. §284;

(E) Declare this case exceptional pursuant to 35 U.S.C. §285; and

(F) Award Brazos its costs, disbursements, attorneys’ fees, and such further and 

additional relief as is deemed appropriate by this Court.

Dated: November 6, 2020 Respectfully submitted,

/s/ James L. Etheridge

James L. Etheridge

Texas State Bar No. 24059147 

Ryan S. Loveless

Texas State Bar No. 24036997 

Travis L. Richins

Texas State Bar No. 24061296

ETHERIDGE LAW GROUP, PLLC

2600 E. Southlake Blvd., Suite 120 / 324

Southlake, Texas 76092

Telephone: (817) 470-7249

Facsimile: (817) 887-5950

Jim@EtheridgeLaw.com

Ryan@EtheridgeLaw.com

Travis@EtheridgeLaw.com

COUNSEL FOR PLAINTIFF

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