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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-489-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.

Case 6:20-cv-00489-ADA Document 37 Filed 11/06/20 Page 1 of 27
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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. 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. 7,487,240

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

Complaint.

24. On February 3, 2009, the United States Patent and Trademark Office duly and 

legally issued U.S. Patent No. 7,487,240 (“the ’240 Patent”), entitled “CENTRALIZED 

INTERNET PROTOCOL/MULTI-PROTOCOL LABEL SWITCHING CONNECTIVITY 

VERIFICATION IN A COMMUNICATIONS NETWORK MANAGEMENT CONTEXT.” A 

true and correct copy of the ’240 Patent is attached as Exhibit A to this Complaint.

25. Brazos is the owner of all rights, title, and interest in and to the ’240 Patent, 

including the right to assert all causes of action arising under the ’240 Patent and the right to any 

remedies for the infringement of the ’240 Patent.

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

States, network management systems (collectively, the “Accused Products”). 

27. The Accused Products include ZTE element management systems, including the 

NetNumen U31 element management system (EMS) and network management system (NMS).

28. ZTE has partnered with M&A Technologies to provide solutions for home 

internet services in Texas and has established LTE towers in Texas, USA. 

Case 6:20-cv-00489-ADA Document 37 Filed 11/06/20 Page 5 of 27
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...

...

https://digitalequity4all.cisd.net/project-info.html.

29. ZTE uses Accused Products to manage Uni-RAN and Uni-core Network 

Elements in an LTE Project in New York.

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...

http://www.townofcaroline.org/uploads/6/2/7/8/62781479/m_a_technology_-

_broadband_proposal.pdf (Pages 5, 24).

30. ZTE provides network management solutions such as the Accused Products. ZTE 

NetNumen U31, for example, is an integrated user-oriented network management system, 

providing functions such as data configuration, performance data collection, alarms analysis, 

northbound interfaces, log records, signal trace to assist the network launch, maintenance, and 

optimization. 

https://www.zte.com.cn/global/products/wireless/201903111102/Network-ManagementSolution

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31. By using the Accused Products, a user can perform integrated and centralized 

management operations on the network elements such as Configuration Management, Fault 

Management, Performance management, etc. 

https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNumen-U31-

Performance-Management-155P (Page 7).

32. The Accused Products can allow unified management over a various pieces of 

telecommunications equipment, including Corporate Telecommunications Network (CTN), 

Synchronous Digital Hierarchy (SDH), Router, Switch, etc. 

https://www.scribd.com/document/399872799/NetNumen-U31-R22-V12-16-10-UnifiedNetwork-Management-System-Product-Description-V1-0 (Page 9)

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33. The Accused Products provide various performance management functions for 

monitoring the operation status of the network devices to ensure the effective, stable, and secure 

running of the network.

https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNumen-U31-

Performance-Management-155P (Page 9).

34. A user can define a measurement task and/ or threshold task for a performance 

data measurement on the Accused Products for collecting performance data from managed 

Network Elements (NEs). Based on the performance data collected, other performance 

management operations can be performed on an element or the network. Therefore, a 

measurement task can be used to verify network connectivity. The performance data calculated 

can also be used to determine whether a customer’s Service Level Agreements (SLA) are being 

met or not.

https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNumen-U31-

Performance-Management-155P (Page 10).

https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNumen-U31-

Performance-Management-155P (Page 11).

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35. The Performance Management flow in the Accused Products includes creating a 

measurement task, storing performance data, displaying performance data, exporting data 

through the northbound interface, and checking thresholds. After a performance measurement 

task is created in the Accused Products, an Accused Products server delivers the task to a

NE (Network Element). The NE reports the performance data back to the Accused Products

server and displays the performance data to the user. The Accused Products server stores the 

performance data in its database. Based on the thresholds set by the user, the server displays 

alarms to the user. 

https://vdocuments.site/download/sj-20141121113158-004-netnumen-u31-r06-v121430-

unified-element-management (Page 6).

36. A typical Network Architecture incorporating an Accused Products server is 

shown below.

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https://www.scribd.com/presentation/379887074/165853166-06-NetNumen-U31-SystemDescription-ppt (Slide 8).

37. A threshold task can be defined to monitor specific measurement data during a 

preset period. When the calculated value of a specific performance object is larger than a high 

threshold or smaller than a low threshold (e.g., threshold range) a threshold crossing alarm is 

raised and reported to the fault management module of the system. 

https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNumen-U31-

Performance-Management-155P (Page 59).

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38. The Accused Products can manage several types of Layer-2 and Layer-3 objects 

such as routers, switches, etc., including those made by ZTE.

https://www.zte.com.cn/global/about/magazine/zte-technologies/2011/4/en_546/244383 (Page 

2).

http://enterprise.zte.com.cn/en/products/network_lnfrastructure/switches/CampusSwitches/201

708/t20170802_464935.html. 

https://www.zte.com.cn/global/products/bearer/data_communication/ethernet_switch/5900EEN.

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39. The topology management tab in the Accused Products shows all present 

Network Elements (NEs) in a hierarchy in the form of a tree with the objects emanating from its 

branches. 

https://www.youtube.com/watch?v=YXA4mn2lUCQ. 

40. The server in the Accused Products verifies connectivity using functions such as 

Fault Management, Performance Management (i.e., using measurement tasks, threshold tasks, 

etc. thereby performing a connectivity verification job), etc. A configuration process in the 

Accused Products allows a user to add new objects, measurement tasks, etc. 

Case 6:20-cv-00489-ADA Document 37 Filed 11/06/20 Page 13 of 27
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https://www.scribd.com/document/380600612/03-NetNumen-U31-Introduction-40P (Page 15).

41. After a measurement task becomes active, network elements (NEs) start 

collecting performance data on the task schedule and transfer the collected data to the Accused 

Products. The Accused Products check the consistency status of a NE measurement task.

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https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNullmen-U31-

Performance-Management-155P (Page 24-25).

https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNumen-U31-

Performance-Management-155P (Page 29).

42. Once data collection is completed, the Accused Products store performance data 

in a database and can displayed it. A user queries allow a user to view the performance data from 

the database. 

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...

https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNumen-U31-

Performance-Management-155P (Page 117).

https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNumen-U31-

Performance-Management-155P (Page 125).

Case 6:20-cv-00489-ADA Document 37 Filed 11/06/20 Page 16 of 27
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https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNumen-U31-

Performance-Management-155P (Page 127).

43. The Accused Products allows users to input threshold values of different 

parameters relating to connectivity. For example, a user can create a threshold task with different 

attributes and can also add values for 4 thresholds in the threshold setting tab for a task.

https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNumen-U31-

Performance-Management-155P (Page 62).

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https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNumen-U31-

Performance-Management-155P (Page 64).

44. A threshold task can be defined in the Accused Product to monitor specific 

measurement data during a present period. When the calculated value of a specific performance

object is larger than a high threshold or smaller than a low threshold (or not lies within the 

threshold range), a threshold crossing alarm is raised and reported to the fault management 

module of the system. 

https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNumen-U31-

Performance-Management-155P (Page 59).

Case 6:20-cv-00489-ADA Document 37 Filed 11/06/20 Page 18 of 27
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45. A threshold task in the Accused Products can be defined to monitor a key 

performance index (KPI). The system raises a performance threshold crossing alarm with the 

corresponding severity once the value of the index is larger than a high threshold or smaller than 

a low threshold. 

https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNumen-U31-

Performance-Management-155P (Page 9).

https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-NetNumen-U31-

Performance-Management-155P (Page 48).

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46. The threshold comparisons can lead to alarm generation in the Accused Products. 

https://www.scribd.com/document/331167170/NetNumen-U31-Fault-Management-OperationGuide (Page 7).

47. The topology management module in the Accused Products provides a network 

topology graph that shows the dynamic operation status of managed networks, thus enabling the 

configuration monitoring and the fault monitoring functions. A topology graph in the Accused 

Products reflects faults in the form of visual and audio alarms. Further, the system provides a 

mapping relationship between alarm severity levels and the icon colors of faulty NEs.

Case 6:20-cv-00489-ADA Document 37 Filed 11/06/20 Page 20 of 27
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https://www.scribd.com/document/296996672/SJ-20110907140552-026-NetNumen-U31-R52-

V12-11-30-System-Topology-Management-Operation-Guide (Page 10).

48. The topology management tab shows all present Network Elements (NEs). The 

alarms are generated based on the value of performance indices. Based on these alarms, the 

Network element is colored and shown with different colors.

https://www.youtube.com/watch?v=YXA4mn2lUCQ.

49. The Accused Products identify Layer-2 and Layer-3 objects associated with 

alarms within the topology graph.

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https://www.slideshare.net/NarendranThangarajan/a-primer-on-network-devices. 

50. The server in the Accused Products is located at a network element management 

layer and performs Element Management System (EMS) and Network Management System 

(NMS) management. 

https://www.scribd.com/document/399872799/NetNumen-U31-R22-V12-16-10-UnifiedNetwork-Management-System-Product-Description-V1-0 (Page 9).

Case 6:20-cv-00489-ADA Document 37 Filed 11/06/20 Page 22 of 27
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https://www.scribd.com/document/399872799/NetNumen-U31-R22-V12-16-10-UnifiedNetwork-Management-System-Product-Description-V1-0 (Page 15).

As noted above, the topology graph can reflect faults with visual and audio alarms. Further, the 

Accused Products provide a mapping relationship between alarm severity levels and the icon 

colors of faulty NEs. 

Case 6:20-cv-00489-ADA Document 37 Filed 11/06/20 Page 23 of 27
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https://www.scribd.com/document/296996672/SJ-20110907140552-026-NetNumen-U31-R52-

V12-11-30-System-Topology-Management-Operation-Guide (Page 10).

51. The topology management tab shows all present Network Elements (NE), 

including Layer-2 and Layer-3 objects having alarm based on the value of performance indices. 

Based on these alarms, the Network element is colored.

https://www.youtube.com/watch?v=YXA4mn2lUCQ.

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

the ’240 Patent is found in the Accused Products.

53. ZTE has and continues to directly infringe at least one claim of the ’240 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.

54. ZTE has received notice and actual or constructive knowledge of the ’240 Patent 

since at least the date of service of this Complaint.

55. 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 ’240 Patent throughout the United States, including within this judicial district, 

Case 6:20-cv-00489-ADA Document 37 Filed 11/06/20 Page 24 of 27
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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:

• https://www.scribd.com/document/380600612/03-NetNumen-U31-Introduction40P

• https://digitalequity4all.cisd.net/project-info.html

• http://www.townofcaroline.org/uploads/6/2/7/8/62781479/m_a_technology_-

_broadband_proposal.pdf,

• https://www.zte.com.cn/global/about/magazine/ztetechnologies/2009/11/en_441/178926

• https://www.zte.com.cn/global/products/wireless/201903111102/NetworkManagement-Solution

• https://www.scribd.com/document/376180121/06-MW-AC3102-E01-0-

NetNumen-U31-Performance-Management-155P

• https://www.scribd.com/document/399872799/NetNumen-U31-R22-V12-16-10-

Unified-Network-Management-System-Product-Description-V1-0

• https://www.scribd.com/presentation/379887074/165853166-06-NetNumen-U31-

System-Description-ppt

• https://www.scribd.com/document/331167170/NetNumen-U31-FaultManagement-Operation-Guide

• https://www.scribd.com/document/296996672/SJ-20110907140552-026-

NetNumen-U31-R52-V12-11-30-System-Topology-Management-OperationGuide

• https://www.youtube.com/watch?v=YXA4mn2lUCQ

• https://www.zte.com.cn/global/about/magazine/ztetechnologies/2011/4/en_546/244383

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

witches/201708/t20170802_464935.html

• https://www.zte.com.cn/global/products/bearer/data_communication/ethernet_swit

ch/5900E-EN

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• https://vdocuments.site/download/sj-20141121113158-004-netnumen-u31-r06-

v121430-unified-element-management

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

contributed to the infringement of the ’240 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 ’240 Patent. The Accused Products are 

especially made or adapted for infringing the ’240 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 ’240 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 ’240 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 ’240 Patent;

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

infringement of one or more claims of the ’240 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 ’240 Patent through the date such judgment is entered in accordance 

Case 6:20-cv-00489-ADA Document 37 Filed 11/06/20 Page 26 of 27
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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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