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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-488-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 

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 3 of 25
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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

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 4 of 25
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COUNT ONE - INFRINGEMENT OF 

U.S. PATENT NO. 7,489,929

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

Complaint.

24. On February 10, 2009, the United States Patent and Trademark Office duly and 

legally issued U.S. Patent No. 7,489,929 (“the ’929 Patent”), entitled “HARD HANDOFF 

PROCEDURE FOR DEDICATED AND HIGH SPEED SHARED CHANNELS.” A true and 

correct copy of the ’929 Patent is attached as Exhibit A to this Complaint.

25. Brazos is the owner of all rights, title, and interest in and to the ’929 Patent, 

including the right to assert all causes of action arising under the ’929 Patent and the right to any 

remedies for the infringement of the ’929 Patent.

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

States, communication products with LTE capabilities (collectively, the “Accused Products”). 

27. The Accused Products include the Macro Base Station (BS) series, including the 

ZXSDR BS8800, ZXSDR BS8900A, ZXSDR BS8900B base stations; LTE Modules, including 

ME3630 and ZM8620 modules; routers, including the MF279 router; and phones, including the 

Axon 10 Pro, Blade 10, Blade 10 Prime, Blade A7 Prime, Blade Vantage 2, Gabb Z1, Visible 

R2, ZFIVE G LTE, Avid 4, Overture 3, Blade X, Maven 3, Blade Z, and Blade X Max phones.

...

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 5 of 25
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https://www.zte.com.cn/global/products/wireless/201903111103/Macro-Base-Station-Series

https://www.zteusa.com/products/m2m/zte-me3630

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 6 of 25
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https://www.zteusa.com/products/all-phones/axon-10-pro.html

28. ZTE has deployed commercial LTE networks and built LTE trial networks for 

telecom operators in North America, and opened an LTE testing laboratory in Richardson, Texas

https://www.zte.com.cn/global/about/news/350962.html

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 7 of 25
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http://www.zte-deutschland.de/pub/endata/magazine/ztetechnologies/2009year/no11/200912/P020091222462632602444.pdf

29. Long Term Evolution (LTE) with Evolved Universal Terrestrial Radio Access 

Network (E-UTRAN) is a type of telecommunication system. It defines how communication 

between intermediate and/or end nodes (e.g., user equipment (UE), mobile devices, data 

terminals, and/or base stations) occurs. 

30. The figure below shows different types of handover processes performed by the 

Accused Products, including an inter-eNodeB Handover (e.g., X2 Handover) where handover 

takes place from a source base station to a target base station. An LTE product base station can 

handover another LTE product to a target LTE base station.

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 8 of 25
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https://www.scribd.com/document/405558309/ZTE-LR14-LTE-FDD-Handover-FeatureGuide-V3-20-30-20141225-pdf (Pages 20-21).

31. LTE can offer communication between a UE (e.g., a mobile station) and a source 

eNodeB (e.g., a serving base station), as depicted in the figure below.

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Page 113).

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 9 of 25
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32. The UE can establish a communication link with a target eNodeB (e.g., a target 

base station) after handover from an existing link with the source eNodeB. UEs (e.g., mobile 

stations) monitor target eNodeBs, which control the handover process. LTE can support IntraMME (Mobility Management Entity)/Serving Gateway Handover which includes handover 

where neither MME nor Serving Gateway changes. LTE mobility functionality is configured by 

the network and is carried out by eNodeBs that are in communication with and control of UEs. 

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Page 112).

33. An LTE handover process can include three phases: measurement configuration 

delivery, handover decision, and handover implementation. UE performs neighboring cell 

measurements and sends details to a source eNodeB. Based on the measurement report from the 

UE, an eNodeB can determine whether to handover the UE and selects a target cell. 

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 10 of 25
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https://www.scribd.com/document/405558309/ZTE-LR14-LTE-FDD-Handover-FeatureGuide-V3-20-30-20141225-pdf (Page 14).

34. After selecting the target base station from the UE measurement report, the source 

base station (e.g., the source eNodeB) can send a handover request to the target base station (e.g., 

the target eNodeB), as shown in the figure below.

https://www.scribd.com/document/405558309/ZTE-LR14-LTE-FDD-Handover-FeatureGuide-V3-20-30-20141225-pdf (Page 21).

35. The source eNodeB can receive measurement reports from UE via an established 

RRC connection, e.g., as shown below.

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 11 of 25
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pdf (Page 113).

36. UEs can use measurement quantities such as RSRP, RSRQ, RSSI, etc. to support 

mobility. These measurement quantities include signal quality values from neighboring cells and 

can be provided in measurement reports to initiate handover. 

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Pages 66-67).

37. Source eNodeBs can decide the selection of a target eNodeB on the basis of 

measurement reports. After this decision, the source eNodeB initiates the establishment of a new 

link between the UE and the target eNodeB by sending a Handover Request message. Resources 

allocated by a source eNodeB for a UE during an existing link are released upon confirmation 

of a successful handover of the UE to the target eNodeB. The confirmation can be received by 

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 12 of 25
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the source eNodeB from the target eNodeB in form of a UE CONTEXT RELEASE message.

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Page 113).

38. A source eNodeB can decide the selection of a target eNodeB on the basis of 

Measurement Reports from a UE. After this decision, a Handover Request message can be sent 

to a target eNodeB with resource information required to prepare a target eNodeB for handover. 

The Handover Request message can include information to prepare a target eNodeB for 

handover. The target eNodeB responds with a Handover Request Acknowledgement message to 

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 13 of 25
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indicate successful completion of handover preparation.

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Pages 113-114).

39. After completion of handover preparation, a UE receives an 

RRCConnectionReconfiguration message to start a handover procedure. Using resources 

included in this message, the UE can establish a link to synchronize a target eNodeB.

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Pages 114).

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 14 of 25
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40. Throughout an Intra-MME/Serving Gateway (“Intra-MME”) handover, a UE 

maintains synchronization with only one eNodeB at any given time. Throughout such handovers, 

only one eNodeB actively exchanges packet data with the UE. 

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Page 115).

41. After a target eNodeB synchronizes (over a new link with UE), it transmits a 

Context Release message to a source eNodeB. This message informs the success of a handover 

from a source eNodeB to a target eNodeB and triggers the release of resources by the source 

eNodeB. In this manner, a new link is established between a UE and a target eNodeB before 

releasing the existing link between a UE and a source eNodeB. 

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Page 115).

42. After receiving a measurement report from a UE, the source eNodeB can select a 

target eNodeB for a Handover Decision (e.g., HO Decision).

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https://www.scribd.com/document/405558309/ZTE-LR14-LTE-FDD-Handover-FeatureGuide-V3-20-30-20141225-pdf (Page 14). 

43. Base stations, including the Accused Products, receive a measurement report 

from a UE including a list of target base stations. A source base station selects the most suitable 

target base station from the said list to initiate the handover process. 

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Page 113).

44. A selection of a target eNodeB on the basis of a UE measurement report is known 

as a Handover Decision (e.g., HO Decision), causing a determination of a handoff requirement 

between a source eNodeB and a target eNodeB.

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 16 of 25
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https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Page 113).

45. After selecting a target base station from a UE measurement report, a source base 

station (e.g., a source eNodeB) can send a handover request to a target base station (e.g., the 

target eNodeB).

Fig. 1

https://www.scribd.com/document/405558309/ZTE-LR14-LTE-FDD-Handover-FeatureGuide-V3-20-30-20141225-pdf (Page 21).

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 17 of 25
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46. The source eNodeB transmits a Handover Request to a selected target eNodeB 

for initiating handover preparation. The Handover Request message includes information to 

prepare target eNodeB for handover. 

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.03.00_60/ts_136300v150300p.

pdf (Page 113).

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Pages 113-114).

47. The target eNodeB responds with a Handover Request Acknowledgement 

message when the Handover preparation is completed successfully. 

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 18 of 25
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https://www.scribd.com/document/405558309/ZTE-LR14-LTE-FDD-Handover-FeatureGuide-V3-20-30-20141225-pdf (Page 21).

https://www.scribd.com/document/405558309/ZTE-LR14-LTE-FDD-Handover-FeatureGuide-V3-20-30-20141225-pdf (Page 22).

48. The Handover Request Acknowledgement message confirms a successful 

handover preparation.

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 19 of 25
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https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Page 254).

49. After completion of handover preparation, the source eNodeB transmits an 

RRCConnectionReconfiguration message towards the UE. An RRCConnectionReconfiguration 

message is a command to modify an RRC connection and includes parameters related to mobility 

and resource allocation to perform handover. The UE uses this information to synchronize with the 

target eNodeB.

https://www.etsi.org/deliver/etsi_ts/136300_136399/136331/15.08.00_60/ts_136331v150800p.

pdf (Page 344).

v

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Page 114).

50. The RRCConnectionReconfiguration message received by a UE includes an 

uplink grant for accessing the target eNodeB. This allows the UE to perform synchronization 

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 20 of 25
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with the target eNodeB and access it later. In this manner, uplink synchronization for the target 

base station takes place. As a result, the target eNodeB can communicate with the UE.

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Page 114).

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Pages 114).

51. After successful synchronization of the UE with the target eNodeB over the new 

link, the target eNodeB receives an RRCConnectionReconfigurationComplete message (or, at 

least one signal over the new link) from the UE directly. 

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 21 of 25
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https://www.scribd.com/document/405558309/ZTE-LR14-LTE-FDD-Handover-FeatureGuide-V3-20-30-20141225-pdf (Page 21).

52. The RRCConnectionReconfigurationComplete message indicates the 

establishment of a new link between the UE and the target eNodeB and successful handover 

from a source eNodeB to a target eNodeB. 

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Page 115).

53. By sending a UE CONTEXT RELEASE message, the target eNodeB informs the 

success of HO to the source eNodeB and triggers the release of resources by the source eNodeB. 

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 22 of 25
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In this manner, a link between the UE and the source eNodeB hands off to a new link between 

the UE and target eNodeB. 

https://www.etsi.org/deliver/etsi_ts/136300_136399/136300/15.08.00_60/ts_136300v150800p.

pdf (Page 115).

54. In view of preceding paragraphs, each and every element of at least claim 1 of the 

’929 Patent is found in the Accused Products.

55. ZTE has and continues to directly infringe at least one claim of the ’929 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.

56. ZTE has received notice and actual or constructive knowledge of the ’929 Patent 

since at least the date of service of this Complaint.

57. 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 ’929 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:

• https://www.zteusa.com/products/all-phones

• https://www.zteusa.com/support_page

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 23 of 25
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• https://www.zte.com.cn/global/about/news/350962.html

• https://www.zteusa.com/products/m2m/zte-me3630

• https://www.zteusa.com/products/all-phones/axon-10-pro.html

• https://www.zte.com.cn/global/products/wireless/201903111103/Macro-BaseStation-Series

• http://www.ztedeutschland.de/pub/endata/magazine/ztetechnologies/2009year/no11/200912/P020

091222462632602444.pdf

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

contributed to the infringement of the ’929 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 ’929 Patent. The Accused Products are 

especially made or adapted for infringing the ’929 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 ’929 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 ’929 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 ’929 Patent;

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

infringement of one or more claims of the ’929 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 

Case 6:20-cv-00488-ADA Document 36 Filed 11/06/20 Page 24 of 25
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infringement by ZTE of the ’929 Patent through the date such judgment is entered in accordance 

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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