Case 5:21-cv-04771-JSC Document 1 Filed 06/22/21 Page 1 of 21
`
`
`Guy Ruttenberg, Bar No. 207937
`guy@ruttenbergiplaw.com
`Steve A. Papazian, Bar No. 288097
`steve@ruttenbergiplaw.com
`RUTTENBERG IP LAW,
`A PROFESSIONAL CORPORATION
`1801 Century Park East, Suite 1920
`Los Angeles, CA 90067
`Telephone: (310) 627-2270
`Facsimile: (310) 627-2260
`
`Attorneys for Plaintiff Cadence Design Systems, Inc.
`
`UNITED STATES DISTRICT COURT
`FOR THE NORTHERN DISTRICT OF CALIFORNIA
`
`CADENCE DESIGN SYSTEMS, INC., a
`Delaware Corporation,
`
`Plaintiff,
`
`
`
`v.
`
`CONVENIENTPOWER HK LTD., a Hong
`Kong Private Limited Company,
`CONVENIENTPOWER US, INC., a Delaware
`Corporation, SHENZHEN YICHONG
`WIRELESS TECHNOLOGY CO., LTD, a
`Chinese Limited Company, SICHUAN
`YICHONG TECHNOLOGY CO., LTD., a
`Chinese Limited Company, E-CHARGING,
`INC., a California Corporation,
`
`Defendants.
`
` 21-4771
`
`
`
`Case No.
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`COMPLAINT
`FOR INJUNCTIVE RELIEF
`
`AND DAMAGES FOR:
`
`
`
`1. COPYRIGHT INFRINGEMENT;
`2. CIRCUMVENTION OF
`COPYRIGHT PROTECTION
`SYSTEMS;
`3. BREACH OF CONTRACT
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`DEMAND FOR JURY TRIAL
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`Case 5:21-cv-04771-JSC Document 1 Filed 06/22/21 Page 2 of 21
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`For its complaint, Plaintiff Cadence Design Systems, Inc. (“Cadence”) alleges against
`Defendants ConvenientPower HK, Ltd. (“ConvenientPower HK”), ConvenientPower US, Inc.
`(“ConvenientPower USA”), Shenzhen Yichong Wireless Technology Co., Ltd. (“Shenzhen
`Yichong”), Sichuan Yichong Technology Co., Ltd. (“Sichuan Yichong”), and E-Charging Inc. (“E-
`Charging USA”) (collectively, “ConvenientPower”) as follows:
`1.
`This is an action for copyright infringement, circumvention of copyright protection
`systems, and breach of contract.
`
`PARTIES
`2.
`Plaintiff Cadence is a Delaware corporation with its principal place of business at 2655
`Seely Avenue, San Jose, California 95134.
`3.
`Defendant ConvenientPower HK, Ltd. (“ConvenientPower HK”) is a Hong Kong
`private company with its principal place of business at Room 1301, 13/F, Blissful Building, No. 243-
`247 Des Voeux Road Central, Hong Kong.
`4.
`Defendant ConvenientPower US, Inc. (“ConvenientPower USA”) is a Delaware
`Corporation with its principal place of business at 2240 Agnew Road Santa Clara, CA 95054.
`ConvenientPower USA filed its Articles of Incorporation on April 17, 2014.
`5.
`Defendant Shenzhen Yichong Wireless Technology Co., Ltd. (“Shenzhen Yichong”)
`is a Chinese limited company with an office located at Room 1001, 10 Floor, Microprofit Plaza,
`Gaoxin South 6th Road, Nanshan, Shenzhen, 518063, People’s Republic of China.
`6.
`Defendant Sichuan Yichong Technology Co., Ltd. (“Sichuan Yichong”) is a Chinese
`limited company with an office located at Unit A-10, 4 Floor, Tianfu Jingrong Center,
`North Hupan Road, Tianfu New Area, Chengdu 610000, Sichuan, People’s Republic of China. On
`information and belief, Sichuan Yichong also refers, or has referred, to itself as Chengdu Yichong
`Wireless Technology Co., Ltd. and Chengdu Yichong Semiconductor Co., Ltd.
`7.
`Defendant E-Charging Inc. (“E-Charging USA”) is a California Corporation with its
`principal place of business at 1569 Fairway Green Cir., San Jose, CA 95131.
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`Case 5:21-cv-04771-JSC Document 1 Filed 06/22/21 Page 3 of 21
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`ConvenientPower HK and ConvenientPower USA share a unity of interest.
`ConvenientPower HK and ConvenientPower USA have overlapping officers and
`
`Defendants Are Alter Egos and a Single Enterprise
`8.
`On information and belief, ConvenientPower HK, ConvenientPower USA, Shenzhen
`Yichong, Sichuan Yichong, and E-Charging USA are a single enterprise and/or alter egos of one
`another.
`9.
`10.
`employees.
`11.
`On information and belief, ConvenientPower HK, ConvenientPower USA, Shenzhen
`Yichong, Sichuan Yichong, and E-Charging USA are under the same equitable control.
`12.
`Siming Pan is the Chief Executive Officer, legal representative, and/or leader of
`ConvenientPower HK, ConvenientPower USA, Shenzhen Yichong, Sichuan Yichong, and E-
`Charging USA.
`The entity referred to as Convenient Power HK was established in 2006.
`13.
`The entity referred to as Shenzhen Yichong was established in 2016.
`14.
`15.
`Defendants Shenzhen Yichong and ConvenientPower HK claim that they entered a
`“strategic cooperation” in August of 2017.
`16.
`In some instances, Defendants identify their “strategic cooperation” as “Echong
`Wireless Group.”
`17.
`In some instances, Defendants identify their “strategic cooperation” as “Easy Chong
`Wireless.”
`18.
`instances, Defendants
`In some
`“ConvenientPower Systems.”
`19.
`Defendants interchangeably refer to themselves collectively as Echong Wireless
`Group and ConvenientPower Systems.
`20.
`For example, at least one online job posting related to “Easy Chong Wireless,” states
`under “Company Profile” that “Echong Wireless Group, (English: ConvenientPower) is a global high
`tech enterprise focusing on the field of wireless charging.”
`
`identify
`
`their “strategic cooperation” as
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`21.
`This same job posting represents that Defendant Shenzhen Yichong and E-Charging
`Inc. are one and the same.
`22.
`This same job posting states that Defendants ConvenientPower HK and Shenzhen
`Yichong entered into a “strategic cooperation . . . headquartered in Hong Kong, and has branches in
`Shenzhen [and] Silicon Valley.”
`23.
`On information and belief, E-Charging USA and ConvenientPower USA are
`Defendants’ “branches” in Silicon Valley.
`24.
`On January 9, 2018, ConvenientPower Systems issued a press releases wherein
`Defendants identified themselves as “ConvenientPower Systems (CPS)” and stated that the “CPS
`Group is located in Hong Kong, San Francisco, Shenzhen, Chengdu.”
`25.
`On information and belief, the locations identified in Defendants’ January 9, 2018
`press release—Hong Kong, San Francisco, Shenzhen, Chengdu—correspond to Defendants
`ConvenientPower HK, ConvenientPower USA, Shenzhen Yichong, and Sichuan Yichong,
`respectively.
`Defendants share a website, namely www.convenientpower.com.
`26.
`27.
`Defendants collectively
`refer
`to
`themselves as “ConvenientPower” and
`“ConvenientPower Systems” without claiming any legal separateness.
`28.
`For example, on
`information and belief, Defendants’ English website
`(convenientpower.com/home/contact-us/#findus) lists several business addresses that correspond to
`Defendants ConvenientPower HK, ConvenientPower USA, Sichuan Yichong, and Shenzhen
`Yichong without mentioning any legal separateness.
`29.
`ConvenientPower organizes its business activities by region and business units rather
`than legal entities.
`30.
`For example, ConvenientPower represents that its officer and employee Majid Kafi is
`“Vice President, General Manager, US Operation, Chip Business Group.”
`Defendants share trade names, namely “ConvenientPower” and “Yichong Wireless.”
`31.
`It would be inequitable for Defendants to hide behind their corporate veils.
`32.
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`Case 5:21-cv-04771-JSC Document 1 Filed 06/22/21 Page 5 of 21
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`33.
`For example, it would be inequitable for Defendants to hold themselves out to the
`public as a single entity (e.g., “Convenient Power Systems”), disregarding any corporate separateness,
`and then deny they are one and the same for purposes of avoiding liability and/or frustrating
`enforcement of any eventual judgment.
`Defendants have also acted in bad faith.
`34.
`35.
`For example, before bringing suit, Plaintiff contacted ConvenientPower to attempt to
`resolve the claims set forth herein. On several instances, ConvenientPower promised to investigate
`Plaintiff’s claims and reply to Cadence’s inquiries. Most recently, ConvenientPower asked for
`additional data supporting Cadence’s claims, which Cadence
`readily provided.
` Yet
`ConvenientPower’s representatives in China refused to follow through on their promises. As set forth
`below, Defendants also continued their unauthorized infringement and other wrongful conduct well
`after receiving explicit notice from Cadence.
`Defendants are Joint Venturers
`On information and belief, all five Defendants are members of a joint venture.
`36.
`37.
`ConvenientPower and Yichong Wireless stated that they entered into a “strategic
`cooperation” in 2017.
`38.
`On information and belief, Defendants have referred to themselves collectively as a
`“joint venture.”
`39.
`One online article dated September 15, 2017 reports that “Shenzhen-based E-Charging
`Wireless Technology Co. has entered into a strategic partnership with ConvenientPower HK Ltd., a
`longtime wireless charging market leader in Hong Kong, to set up a joint venture, ConvenientPower
`Systems (CPS).”
`40.
`On information and belief, Defendant Shenzhen Yichong is also referred to as
`“Shenzhen E-Charging Wireless Technology Co.”
`41.
`On information and belief, Defendants combined their property, skill, and/or
`knowledge with the intent to carry out a single business undertaking, namely to create and sell
`wireless charging products.
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`Case 5:21-cv-04771-JSC Document 1 Filed 06/22/21 Page 6 of 21
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`42.
`On information and belief, ConvenientPower and Yichong Wireless both have an
`ownership interest in their joint venture.
`43.
`On information and belief, ConvenientPower and Yichong Wireless both have control
`over their joint venture.
`For example, Siming Pan has control over all five Defendants and their joint venture.
`44.
`45.
`On information and belief, Convenient Power and Yichong Wireless share in the
`profits and losses from their joint venture.
`46.
`On information and belief, Defendants use the Cadence Software (as defined below)
`and incurred the obligations specified below for purposes of advancing their joint venture.
`JURISDICTION
`47.
`This Court has subject matter jurisdiction pursuant to 17 U.S.C. § 501, et seq.
`(copyright infringement), 17 U.S.C. §1201, et seq. (circumvention of copyright protection systems
`under the Digital Millennium Copyright Act), and 28 U.S.C. §§ 1331 (federal questions jurisdiction)
`and 1338(a). The Court also has supplemental jurisdiction over Count III below, pursuant to 28
`U.S.C. §1367(a).
`48.
`This Court has personal jurisdiction over ConvenientPower.
`49.
`Defendants contractually agreed “to submit to exclusive jurisdiction in the federal and
`state courts of California, U.S.A. in the event of a dispute” pursuant to the sections 27 and 26 of the
`Software License and Maintenance Agreements, respectively, attached hereto as Exhibits 1 and 2.
`50.
`ConvenientPower USA is a Delaware corporation registered in California, based in
`Santa Clara, California, and subject to general jurisdiction in this State.
`51.
`E-Charging USA is a California corporation based in San Jose, California and subject
`to general jurisdiction in this State.
`52.
`Defendants ConvenientPower HK, Sichuan Yichong, and Shenzhen Yichong are also
`subject to jurisdiction as the alter egos and/or joint venturers of ConvenientPower USA and E-
`Charging USA.
`53.
`Defendants also regularly conduct business in California.
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`Case 5:21-cv-04771-JSC Document 1 Filed 06/22/21 Page 7 of 21
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`54.
`For example, ConvenientPower claims to offer technical customer support in Silicon
`Valley, references it’s “Silicon Valley design center” on its website and lists Silicon Valley as one of
`its primary company locations.
`55.
`ConvenientPower HK has entered into certain banking and/or financing transactions
`in this District governed by California law.
`56.
`As alter egos of one another, Defendants are subject to service of process at their
`common address and through their common agent for service of process in California.
`57.
`ConvenientPower has copied, downloaded, and/or otherwise used Cadence Software
`at Internet Protocol Addresses (“IP Addresses”) located in this District.
`VENUE
`58.
`Venue is proper in this District pursuant to the terms of the Software License and
`Maintenance Agreements, attached hereto as Exhibits 1 and 2. Venue is also proper in this District
`pursuant to 28 U.S.C. § 1400(a) because ConvenientPower may be found in this District. Venue is
`also proper in this District pursuant to 28 U.S.C. § 1391(b), (c), and (d) because ConvenientPower is
`subject to personal jurisdiction in this District.
`INTRADISTRICT ASSIGNMENT
`59.
`This is an intellectual property action subject to district-wide assignment pursuant to
`Civil L.R. 3-2(c).
`
`GENERAL ALLEGATIONS
`60.
`Cadence is a worldwide leader in Electronic Design Automation (EDA) software and
`engineering services, as well as semiconductor intellectual property. Cadence’s custom and analog
`tools help engineers design the transistors, standard cells, and IP blocks that make up systems on
`chips. Cadence’s offerings allow engineers to design integrated circuits and printed circuit boards,
`and test and simulate their designs to verify the builds of their circuits.
`61.
`Cadence’s design platforms include Allegro, OrCAD, PSpice, Virtuoso, and other
`related software and tools (collectively, the “Cadence Software”). The Cadence Software provides
`engineers with the ability to design, test, and simulate printed circuit boards customized for their
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`Case 5:21-cv-04771-JSC Document 1 Filed 06/22/21 Page 8 of 21
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`specific needs. Since its founding, Cadence has expended considerable resources further developing
`and refining this technology to remain at the forefront of the EDA industry.
`62.
`Cadence licenses these products throughout the United States, Europe, Asia and other
`parts of the world.
`63.
`Cadence owns a valid Copyrighted Work, entitled Cadence PCB Systems Division
`Version 15.0, which was duly registered with the United States Copyright Office as Copyright
`Registration No. TX 7-264-496 (the “’496 Registration”). A true and correct copy of the ’496
`Registration is attached hereto as Exhibit 3.
`64.
`Cadence owns a valid Copyrighted Work, entitled Allegro 16.5, which was duly
`registered with the United States Copyright Office as Copyright Registration No. TX 7-751-386 (the
`“’386 Registration”). A true and correct copy of the ’386 Registration is attached hereto as Exhibit 4.
`65.
`Cadence owns a valid Copyrighted Work, entitled Allegro PCB 16.6, which was duly
`registered with the United States Copyright Office as Copyright Registration No. TX 8-323-840 (the
`“’840 Registration”). A true and correct copy of the ’840 Registration is attached hereto as Exhibit 5.
`66.
`Cadence owns a valid Copyrighted Work, entitled Allegro PCB 17.2, which was duly
`registered with the United States Copyright Office as Copyright Registration No. TX 8-322-031 (the
`“’031 Registration”). A true and correct copy of the ’031 Registration is attached hereto as Exhibit 6.
`67.
`Cadence owns a valid Copyrighted Work, entitled OrCAD 16.5, which was duly
`registered with the United States Copyright Office as Copyright Registration No. TX 8-320-016 (the
`“’016 Registration”). A true and correct copy of the ’016 Registration is attached hereto as Exhibit 7.
`68.
`Cadence owns a valid Copyrighted Work, entitled OrCAD 16.6, which was duly
`registered with the United States Copyright Office as Copyright Registration No. TX 8-320-041 (the
`“’041 Registration”). A true and correct copy of the ’041 Registration is attached hereto as Exhibit 8.
`69.
`Cadence owns a valid Copyrighted Work, entitled OrCAD 17.2, which was duly
`registered with the United States Copyright Office as Copyright Registration No. TX 8-320-040 (the
`“’040 Registration”). A true and correct copy of the ’040 Registration is attached hereto as Exhibit 9.
`
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`Case 5:21-cv-04771-JSC Document 1 Filed 06/22/21 Page 9 of 21
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`70.
`Cadence owns a valid Copyrighted Work, entitled PSPICE 16.5, which was duly
`registered with the United States Copyright Office as Copyright Registration No. TX 8-320-014 (the
`“’014 Registration”). A true and correct copy of the ’014 Registration is attached hereto as Exhibit 10.
`71.
`Cadence owns a valid Copyrighted Work, entitled PSPICE 16.6, which was duly
`registered with the United States Copyright Office as Copyright Registration No. TX 8-320-008 (the
`“’008 Registration”). A true and correct copy of the ’008 Registration is attached hereto as Exhibit 11.
`72.
`Cadence owns a valid Copyrighted Work, entitled PSPICE 17.2, which was duly
`registered with the United States Copyright Office as Copyright Registration No. TX 8-319-984 (the
`“’984 Registration”). A true and correct copy of the ’984 Registration is attached hereto as Exhibit 12.
`73.
`Cadence owns a valid Copyrighted Work, entitled MMSIM 15.10 Release, which was
`duly registered with the United States Copyright Office as Copyright Registration No. TX 8-259-594
`(the “’594 Registration”). A true and correct copy of the ’594 Registration is attached hereto as
`Exhibit 13.
`74.
`Cadence owns a valid Copyrighted Work, entitled Spectre 16.10 Release, which was
`duly registered with the United States Copyright Office as Copyright Registration No. TX 8-394-149
`(the “’149 Registration”). A true and correct copy of the ’149 Registration is attached hereto as
`Exhibit 14.
`75.
`Cadence owns a valid Copyrighted Work, entitled Virtuoso, which was duly registered
`with the United States Copyright Office as Copyright Registration No. TX 8-285-328 (the “’328
`Registration”). A true and correct copy of the ’328 Registration is attached hereto as Exhibit 15.
`76.
`Cadence owns a valid Copyrighted Work, entitled Virtuoso (IC) 6.1.7, which was duly
`registered with the United States Copyright Office as Copyright Registration No. TX 8-394-148 (the
`“’148 Registration”). A true and correct copy of the ’148 Registration is attached hereto as Exhibit 16.
`CADENCE’S LICENSE AGREEMENTS AND LICENSE FILES
`77.
`In order to protect its software and intellectual property against any unauthorized use,
`Cadence has made significant investments in technology designed to prevent unauthorized access or
`use.
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`78.
`Cadence typically licenses its proprietary software. The license is issued as a
`Floating/Concurrent license, whereby the customer purchases a set number of floating seats, which
`may be occupied by any licensed users as long as the number of concurrent users does not exceed the
`set number. When a customer purchases a license to the Cadence Software, the customer receives an
`invoice indicating the type of license that was purchased, as well as a license file.
`79.
`The Cadence Software will not operate unless a user first installs the Cadence License
`Manager. When using the Cadence Software on a single computer, the user must install the License
`Manager directly on that computer. If the user intends to use a network license, the user must install
`the License Manager on a server accessible over the network.
`80.
`The Cadence License Manager cannot be installed unless a user first executes an
`agreement with Cadence. Specifically, when installing the License Manager, a user is prompted to
`accept the terms of a Cadence Design Systems, Inc. Software License and Maintenance Agreement
`(“SLMA”).
`81.
`Cadence has incorporated multiple versions of its SLMA into the License Manager
`installation process.
`82.
`For example, Cadence’s Allegro PCB 16.5 and 16.6, both of which were used without
`authorization by ConvenientPower, are governed by a Version 16 SLMA (“SLMA v16”).
`83.
`For example, Cadence’s Allegro PCB 17.2, which was used without authorization by
`ConvenientPower, is governed by a Version 17 SLMA (“SLMA v17”).
`84.
`True and correct copies of the SLMA v16 and SLMA v17 (collectively, “SLMAs”)
`are attached hereto as Exhibits 1 and 2.
`85.
`The SLMAs state, in part:
`
`THIS SOFTWARE LICENSE AND MAINTENANCE AGREEMENT
`(“AGREEMENT”) IS A LEGAL DOCUMENT BETWEEN YOU AND
`CADENCE DESIGN SYSTEMS, INC. (“CADENCE”). PLEASE READ
`THIS AGREEMENT CAREFULLY BEFORE INSTALLING YOUR
`CADENCE SOFTWARE
`(“SOFTWARE”). BY USING THE
`SOFTWARE, YOU (EITHER AN INDIVIDUAL OR A BUSINESS
`ENTITY) AGREE TO BE BOUND BY THE TERMS OF THIS
`AGREEMENT. IF YOU DO NOT WANT TO BE BOUND BY THE
`TERMS OF THIS AGREEMENT, CADENCE IS UNWILLING TO
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`Case 5:21-cv-04771-JSC Document 1 Filed 06/22/21 Page 11 of 21
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`LICENSE THE SOFTWARE TO YOU, IN WHICH EVENT YOU MUST
`PROMPTLY
`RETURN
`THE
`SOFTWARE
`AND
`ALL
`ACCOMPANYING ITEMS (INCLUDING MANUALS, BINDERS OR
`OTHER CONTAINERS, AND ANY OTHER PRINTED MATERIALS)
`WITHIN 30 DAYS. BY CLICKING YES DURING THE
`INSTALLATION AND BY USING THE SOFTWARE . . . YOU
`ACKNOWLEDGE THAT YOU HAVE READ THE AGREEMENT AND
`ACCEPT ITS TERMS.
`86. When attempting to install the License Manager, a user must select “I accept the terms
`of the license agreement” in order to proceed with installation. If the user does not select the “I
`accept” option, or if the user selects “I do not accept the terms of the license agreement,” the user
`cannot proceed with installation of the License Manager.
`87.
`After the License Manager has been installed, the program prompts the user to specify
`the location of a Cadence license file. Alternatively, the user may later configure the appropriate
`licensing for the Cadence Software by using a License Server Configuration Utility packaged with
`the Cadence Software.
`88.
`After the user installs the License Manager, the user may then install the Cadence
`Software on the client desktops or laptops connected to the License Server. The Cadence Software
`will not operate on those client machines unless the user provides a valid license file issued by
`Cadence. The license file indicates to the License Manager and the Cadence servers how many
`licenses are available for use at the client machines, and which Cadence Software and additional
`functionality the user is permitted to use.
`89. When the user installs the Cadence Software, the user must again accept the terms of
`the SLMAs by selecting the “I accept” option. As before, if the user does not select the “I accept”
`option, or if the user selects “I do not accept the terms of the license agreement,” the user cannot
`proceed with installation of the Cadence Software.
`90.
`To protect its software and intellectual property against any unauthorized use, Cadence
`also has made significant investments in technological measures designed to track unauthorized use.
`91.
`These measures transmit data to Cadence whenever they detect unauthorized
`alterations or uses of the product, such as when a user bypasses a technological measure by using
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`Case 5:21-cv-04771-JSC Document 1 Filed 06/22/21 Page 12 of 21
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`counterfeit license files or when a user alters the Cadence Software by circumventing the license
`mechanism.
`92.
`The Cadence Software also includes other technological measures to verify that the
`Cadence Software is used according to an appropriate license.
`CONVENIENTPOWER’S INFRINGEMENT AND UNAUTHORIZED ACCESS
`93.
`ConvenientPower purports to be a global company engaged in, inter alia, the design
`and development of wireless power applications for users of mobile electronics and other related
`activities.
`94.
`ConvenientPower has repeatedly obtained, copied, and used the Cadence Software
`without authorization from Cadence.
`95.
`ConvenientPower has unlawfully copied, reproduced, and used the Cadence Software
`without a valid license file and without authorization from Cadence.
`96.
`By installing and using the Cadence License and the Cadence Software,
`ConvenientPower accepted the terms of the SLMAs and agreed to be bound by the terms of the
`SLMAs.
`97.
`On information and belief, after installing the Cadence Software, ConvenientPower
`uses “cracked” license files to access and use the Cadence Software.
`98.
`Under the SLMAs, ConvenientPower agreed “to take all reasonable steps and to
`exercise due diligence to protect the Product from unauthorized reproduction, publication, or
`distribution.” ConvenientPower further agreed that it would “have a reasonable mechanism in place
`to ensure that the Software may not be used or copied by unlicensed persons.”
`99.
`On information and belief, ConvenientPower has altered and/or “cracked,” and/or used
`altered and/or “cracked” versions of the Cadence License Manager and/or Cadence Software that
`circumvent technological measures.
`100. On information and belief, ConvenientPower has also tampered with files during
`installation of the Cadence License Manager and/or Cadence Software and otherwise used altered
`data files for installing the Cadence License Manager and/or Cadence Software, including using
`“cracked” versions of the license and/or using counterfeit license files.
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`Case 5:21-cv-04771-JSC Document 1 Filed 06/22/21 Page 13 of 21
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`101. By obtaining, copying, installing, and/or using “cracked” versions of the Cadence
`License Manager and/or Cadence Software and/or “cracked” licenses, ConvenientPower circumvents
`technological measures that control access to a copyrighted work protected under the Copyright Act.
`102. On information and belief, ConvenientPower also conspires with others to use and
`obtain unauthorized software license files from a source other than Cadence and/or to circumvent
`Cadence’s technological measures.
`103. On information and belief, ConvenientPower knowingly obtains, downloads, copies,
`installs and/or otherwise uses unauthorized versions of the Cadence License Manager and/or Cadence
`Software, including using websites and internet service providers known to traffic in illegal content.
`104. By installing the Cadence Software using the counterfeit license files and subsequently
`using the Cadence software without authorization, ConvenientPower breached the terms of the agreed
`upon SLMAs by allowing the Cadence Software to be used or copied by unlicensed persons, and by
`failing to take reasonable steps and exercise due diligence to protect the Cadence Software from
`unauthorized reproduction, publication, or distribution.
`105. Further, each copy of the Cadence Software includes additional Product Options,
`which are available at additional cost for higher levels of design functionality. These options are
`locked unless they are purchased by the customer, in which case Cadence provisions a license file
`that enables the user to access the corresponding portions of the license.
`106. However, when the Cadence License Manager and/or Cadence Software is “cracked,”
`or when “cracked” license files are used, the license protections for the Product Options are bypassed
`and all Options are unlocked, thus allowing a user to obtain any Product Options it desires without
`having to pay for those Options.
`107. By using “cracked” versions of the Cadence License Manager and/or Cadence
`Software and/or “cracked” license files, ConvenientPower circumvents additional technological
`measures that prevent users from accessing additional copyrighted Product Options that would
`otherwise require an independent purchase to use.
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`Case 5:21-cv-04771-JSC Document 1 Filed 06/22/21 Page 14 of 21
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`108. By using the Cadence Software without authorization and by circumventing Cadence
`technological measures, ConvenientPower has also violated Cadence’s registered copyrights and
`avoided paying Cadence over $37.4 million dollars in license fees.
`109. Through the use of its technological measures, Cadence compiled a list of at least 38
`machines that were using Cadence Software without having a valid License issued by Cadence. These
`technological measures identified multiple instances where these machines installed, uninstalled,
`and/or used Cadence Software.
`110. The
`that
`indicate
`to Cadence
`transmitted
`these machines
`information
`ConvenientPower devices and accounts were responsible for a significant number of unauthorized
`uses of the Cadence Software.
`111. For example, the domains “convenientpower.com” and “cpsdomain,” among others,
`are linked to the machines bypassing technological measures in the Cadence Software.
`112. Further, email addresses ending with the extension “@convenientpower.com” and
`“echwireless.com,” among others, are also linked to the machines bypassing technological measures
`in the Cadence Software.
`113. The domain “echwireless.com” belongs to and/or is otherwise associated with
`ConvenientPower.
`114. The domain “convenientpower.com” belongs to and/or is otherwise associated with
`ConvenientPower.
`115. The domain “cpsdomain” belongs
`ConvenientPower.
`116. Cadence has detected specific media access control (“MAC”) addresses associated
`with the infringing machines, including addresses ending in -652, and -e85.
`117. On October 21, 2019, Cadence notified ConvenientPower of the detected MAC
`addresses ending in -652 and -e85.
`118. On information and belief, the detected MAC address ending in -652 and -e85 are
`associated with ConvenientPower.
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`is otherwise associated with
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`to and/or
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`Case 5:21-cv-04771-JSC Document 1 Filed 06/22/21 Page 15 of 21
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`119. ConvenientPower’s unlawful conduct not only harms Cadence, but it also harms
`Cadence’s customers. Namely, Cadence’s customers who pay for Cadence Software are forced to
`compete with ConvenientPower, which unlawfully uses the software without payment. By
`eliminating this cost item, ConvenientPower is able to compete unfairly with law-abiding competitors
`who pay for Cadence Software.
`120. Thus, ConvenientPower irreparably harmed Cadence’s long-term market share and
`reputation.
`CADENCE INFORMS CONVENIENTPOWER OF ITS UNAUTHORIZED ACTIVITIES
`121. On October 19, 2019, Cadence informed ConvenientPower that Cadence has evidence
`showing ConvenientPower has used unlicensed or “cracked” versions of Cadence Software.
`122. On November 4, 2019, Cadence sent a second notification letter providing further
`notice of ConvenientPower’s unauthorized use of Cadence Software.
`123. ConvenientPower did not respond to Cadence’s October 19, 2019 and November 4,
`2019 letters.
`124. On November 11, 2019, Cadence called ConvenientPower and spoke with Mr. Qi
`Tang, who indicated ConvenientPower would conduct an investigation.
`125. After several attempts by Cadence to discuss this matter, ConvenientPower ceased
`communications with Cadence in or around April 2019.
`126. On May 11, 2021, Cadence’s outside counsel sent a letter to Qi Tang and Siming Pan
`of ConvenientPower, providing further notice of ConvenientPower’s unauthorized use of Cadence
`Software.
`127.
`In its May 11, 2021 correspondence, counsel again invited ConvenientPower to
`discuss ConvenientPower’s use of Cadence Software and attempt to resolve this matter.
`128. ConvenientPower proposed to speak in June 2021 and requested further data
`evidencing ConvenientPower’s