Case 2:21-cv-00266 Document 1 Filed 07/15/21 Page 1 of 26 PageID #: 1
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`
`
`
`
`
`
`
`CISCO SYSTEMS, INC. AND CISCO
`TECHNOLOGY, INC.,
`
`
`
`
`Plaintiffs,
`
`Case No. 2:21-cv-00266
`
`COMPLAINT FOR PATENT
`INFRINGEMENT
`
`JURY TRIAL DEMANDED
`
`
`
`
`
`
`v.
`
`
`ESTECH SYSTEMS, INC.,
`
` Defendant.
`
`
`
`
`COMPLAINT FOR PATENT INFRINGEMENT AND DECLARATORY JUDGMENT
`OF NON-INFRINGEMENT
`
`Plaintiffs Cisco Systems, Inc. and Cisco Technology, Inc. (collectively referred to hereafter
`
`as “Cisco” or “Plaintiffs”), file this Complaint for patent infringement and declaratory judgment
`
`of non-infringement against Defendant Estech Systems, Inc. (“Estech” or “Defendant”) and allege
`
`as follows:
`
`NATURE OF THE ACTION
`
`1.
`
`Cisco brings this civil action under the patent laws of the United States, 35 U.S.C.
`
`§ 1 et seq., including specifically 35 U.S.C. § 271, based on Estech’s willful infringement of
`
`Cisco’s U.S. Patent Nos. 6,882,869 (the “’869 Patent”), 6,977,911 (the “’911 Patent”), 7,269,162
`
`(the “’162 Patent”), and 9,167,399 (the “’399 Patent”) (collectively “the Patents-in-Suit”).
`
`2.
`
`Additionally, pursuant to the Declaratory Judgment Act, 28 U.S.C. § 2201 et seq.,
`
`and the patent laws of the United States, 35 U.S.C. § 1 et seq., Cisco seeks a declaratory judgment
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`of non-infringement of U.S. Patent Nos. 8,391,298 (the “’298 Patent”), 7,068,684 (the “’684
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`
`
`

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`Case 2:21-cv-00266 Document 1 Filed 07/15/21 Page 2 of 26 PageID #: 2
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`Patent”), 6,067,349 (the “’349 Patent”), and 7,123,699 (the “’699 Patent”) (collectively, the
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`“Estech Asserted Patents”) and for such other relief as the Court deems just and proper.
`
`PARTIES
`
`3.
`
`Plaintiff Cisco Systems, Inc. is a Delaware corporation with its principal place of
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`business located at 170 West Tasman Drive, San Jose, California 95134.
`
`4.
`
`Plaintiff Cisco Technology, Inc. is a California corporation with its principal place
`
`of business located at 170 West Tasman Drive, San Jose, California 95134. Cisco Technology,
`
`Inc. is a wholly-owned subsidiary of Cisco Systems, Inc.
`
`5.
`
`On information and belief, Defendant Estech is a Texas corporation, with its
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`principal place of business located at 3701 East Plano Parkway, Suite 100, Plano, Texas 75074.
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`JURISDICTION AND VENUE
`
`6.
`
`This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331 and
`
`1338(a) because the claims herein arise under the patent laws of the United States, 35 U.S.C. § 1
`
`et seq., including 35 U.S.C. § 271. Further, subject matter jurisdiction is proper pursuant to the
`
`Federal Declaratory Judgment Act, 27 U.S.C. §§ 2201 and 2202.
`
`7.
`
`On information and belief, Estech is a Texas corporation with its principal place of
`
`business located within this District, including at 3701 East Plano Parkway, Suite 100, Plano,
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`Texas. On information and belief, Estech has continuous and systemic contacts in this District,
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`intends to do and does business in Texas, directly and through intermediaries, and offers its
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`products and/or services to customers and potential customers located in Texas, including in this
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`District. Estech, therefore, is subject to this Court’s personal jurisdiction.
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`8.
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`Venue is proper in this District pursuant to 28 U.S.C. § 1391 because Estech resides
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`in this judicial district and, as described below, a substantial part of the events giving rise to the
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`

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`Case 2:21-cv-00266 Document 1 Filed 07/15/21 Page 3 of 26 PageID #: 3
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`claims at issue occurred in this judicial district. Venue is also proper because Estech is subject to
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`personal jurisdiction within this judicial district.
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`CISCO PIONEERS VOICE OVER INTERNET PROTOCOL TECHNOLOGY
`
`9.
`
`Cisco is a leader in networking, communications, and cybersecurity solutions.
`
`Cisco develops and sells networking, security, and communications products and services,
`
`including Voice over Internet Protocol (“VoIP”) communications devices, systems, and services.
`
`10.
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`Cisco has long been a technology pioneer and accordingly has invested billions of
`
`dollars into research and development over several decades, resulting in the issuance of thousands
`
`of patents.
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`11.
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`In particular, with respect to VoIP technology, Cisco’s intellectual property
`
`portfolio spans hundreds of patents, covering nearly all features and aspects of VoIP product
`
`offerings, from consumer facing phone systems to back-end switching architecture.
`
`12.
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`In furtherance of its commitment to advancing the VoIP market, Cisco has acquired
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`companies that add to its already robust networking products, talent, and experience in order to
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`further extend its offerings into enterprise-wide VoIP offerings.
`
`13.
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`For example, in April of 1996, Cisco acquired Stratacom Inc. in a stock swap valued
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`at nearly $4 billion.
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`14.
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`Cisco’s acquisition of Stratacom foreshadowed its foray into an enterprise-wide
`
`networking solution for VoIP services, by merging Cisco’s known router technology with
`
`switching equipment used to send computer data, voice, and video between offices.
`
`15.
`
`In April 1996, a New York Times article praised Cisco for getting ahead of the
`
`curve, noting that “the logic behind the merger is that those seemingly disparate markets are in the
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`process of converging, driven by the rapid growth of the public Internet and private intranets within
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`companies. Major corporations frequently have a mixture of local and wider area networking
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`

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`needs and must now integrate solutions from multiple vendors or hire outside concerns to provide
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`that expertise. If both sets of technology came from a common source, the reasoning goes, the
`
`integration task will be far easier.”1
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`16.
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`In 1998, as yet another indication of its commitment to pioneering an innovative
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`VoIP solution, Cisco acquired Selsius Systems, Inc. for over $100 million.
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`17. With its acquisition of Selsius Systems, Inc., Cisco began to incorporate IP
`
`telephony into its converged, quality-of-service (“QoS”) enabled network.
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`18.
`
`Cisco developed best practices for achieving a successful transition from traditional
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`private branch exchange (“PBX”) telephony to integrated IP telephony based on its novel, award-
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`winning Cisco AVVID (Architecture for Voice, Video and Integrated Data).
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`19.
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`Cisco’s IP telephony paradigm represented a radical shift in how voice networks
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`were constructed, distributing elements throughout the network.
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`20.
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`In the late 1990s, Cisco began to offer VoIP phones and equipment, embodying its
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`innovative technology that could switch a voice data packet into PSTN-compatible information,
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`improving call quality and reducing the need for computers. Cisco’s VoIP products, either offered
`
`by Cisco or its predecessors-in-interest, have been on sale and publicly available in the United
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`States since at least the mid- to late-1990s.
`
`21.
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`For example, by the year 2000, Cisco’s award-winning 7960 IP telephone had
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`already made a splash in the industry as the first full-featured option that could be plugged directly
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`into an IP network, eliminating the need for a traditional proprietary telephone set and key system
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`or PBX.
`
`
`1 https://www.nytimes.com/1996/04/23/business/cisco-agrees-to-acquire-stratacom-in-a-stock-
`swap-worth-4-billion.html
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`

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`22.
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`The 7960 IP phone included an LCD screen to display information such as the
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`number dialing out or calling in, line or speed dial buttons, soft keys, scroll keys, and a dialing
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`pad:
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`
`
`23.
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`In addition to these physical features, the 7960 IP telephone provided users with an
`
`integrated two-port Ethernet switch that allows the telephone and a computer to share a single
`
`Ethernet jack, as well as call transferring, call waiting, and call on hold.
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`24.
`
`Cisco’s 7960 IP telephone was so advanced for its time that it is still in use by many
`
`Cisco customers today.
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`CISCO’S PRIOR DEALINGS WITH ESTECH
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`25.
`
`As a worldwide technology leader, Cisco is frequently approached by various third
`
`parties for investment in and/or potential acquisition of their products, services and/or companies.
`
`26.
`
`In this capacity, Cisco was approached in 2018 by a mergers and acquisitions
`
`advisory firm named Menalto Advisors LLC (“Menalto”), regarding the potential acquisition of
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`Estech by Cisco.
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`27. Menalto contacted Cisco multiple times, expressing that Estech was looking to find
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`“the right acquisition partner for continued growth.”
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`28.
`
`Indeed, on information and belief, this was not the first time Estech had discussions
`
`with other entities, gauging interest into the potential acquisition of Estech.
`
`29.
`
`However, on information and belief, Estech had not located an interested buyer,
`
`and its pitch to Cisco was, likewise, unsuccessful.
`
`30.
`
`Upon reviewing materials presented to Cisco, Cisco ultimately determined that
`
`Estech’s product portfolio was largely duplicative of intellectual property Cisco already owned
`
`(and had developed itself).
`
`31.
`
`In its decision declining the opportunity to consider any potential partnership or
`
`acquisition of Estech, Cisco noted: “[w]hile this is certainly in our wheel house, I’m not sure there
`
`[are] any technologies we don’t currently already have in our portfolio, nor is [Estech] large
`
`enough to give us a meaningful bump in scale so we’ll have to pass on this opportunity.”
`
`32.
`
`After expressing its disinterest, Cisco did not engage in any further discussions
`
`regarding the acquisition of Estech and focused on continuing to grow the already successful
`
`business Cisco had been developing for years.
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`THE PATENTS-IN-SUIT
`
`33.
`
`Cisco Technology, Inc. owns all substantial rights to the Patents-in-Suit, including
`
`the right to assert the Patents-in-Suit in the instant complaint. Cisco Systems, Inc. is a licensee of
`
`those patents.
`
`34.
`
`On April 19, 2005, U.S. Patent No. 6,882,869, entitled “Device, Methods, and User
`
`Interface for Providing Optimized Entry of Alphanumeric Text,” was duly and legally issued by
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`
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`

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`the United States Patent and Trademark Office. A true and accurate copy of the ’869 Patent is
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`attached hereto as Exhibit A.
`
`35.
`
`On December 20, 2005, U.S. Patent No. 6,977,911, entitled “Scalable Voice over
`
`IP System Configured for Dynamically Switching Codecs during a Call,” was duly and legally
`
`issued by the United States Patent and Trademark Office. A true and accurate copy of the ’911
`
`Patent is attached hereto as Exhibit B.
`
`36.
`
`On September 11, 2007, U.S. Patent No. 7,269,162, entitled “Integration of
`
`Presence Services with a Network Enabled Telephony Device,” was duly and legally issued by the
`
`United States Patent and Trademark Office. A true and accurate copy of the ’162 Patent is attached
`
`hereto as Exhibit C.
`
`37.
`
`On October 20, 2015, U.S. Patent No. 9,167,399, entitled “Handoff of
`
`Communication Sessions between Cellular and Desktop Telephones” was duly and legally issued
`
`by the United States Patent and Trademark Office. A true and accurate copy of the ’399 Patent is
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`attached hereto as Exhibit D.
`
`38.
`
`The ’869 Patent, the ’911 Patent, the ’162 Patent, and the ’399 Patent reflect some
`
`of the technology and patents that Cisco itself developed that Estech’s product offerings have
`
`practiced and continue to practice.
`
`COUNT I
`Infringement of U.S. Patent No. 6,882,869
`
`Cisco incorporates by reference and realleges each and every allegation of
`
`39.
`
`Paragraphs 1 through 38 as if set forth herein.
`
`40.
`
`Cisco owns all substantial rights, interest, and title in and to the ’869 Patent,
`
`including the sole and exclusive right to prosecute this action and enforce the ’869 Patent against
`
`infringers, and to collect damages for all relevant times.
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`

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`41.
`
`The ’869 Patent generally describes a communication device and user interface that
`
`allows for the optimized entry of alphanumeric text, and the method thereof.
`
`42.
`
`The written description of the ’869 Patent describes in technical detail each of the
`
`limitations of the claims, allowing a skilled artisan to understand the scope of the claims and how
`
`the non-conventional and non-generic combination of claim limitations is patentably distinct from
`
`and improved upon what may have been considered conventional or generic in the art at the time
`
`of the invention.
`
`43.
`
`Estech has made, used, imported, supplied, distributed, sold, and/or offered for sale,
`
`and continues to make, use, import, supply, distribute, sell, and/or offer for sale products and/or
`
`systems, including VoIP telephone systems, network-connected devices, and networking
`
`equipment (collectively the “Accused Products”).
`
`44.
`
`By doing so, Estech has infringed and is infringing at least Claim 1 of the ’869
`
`Patent by making, having made, using, importing, supplying, distributing, selling, and/or offering
`
`for sale the Accused Products. In particular, the manufacture and use of the Accused Products by
`
`Estech to, for example, demonstrate and/or test those products, constitute acts of direct
`
`infringement of Claim 1 of the ’869 Patent.
`
`45.
`
`The Accused Products include, but are not limited to, the ESI ePhone8, ESI
`
`ePhone3, ESI ePhone4x, ESI ePhoneX, ESI dPhone4, ESI 55D Business Phone, ESI 30 SIP, ESI
`
`30D Business Phone, the ESI 60 Business Phone, local area networks, networking equipment, and
`
`communication applications, including, but not limited to, ESI Presence and ESI Intellitouch.
`
`46.
`
`At least as of this Complaint, Estech is on notice that its actions, including its sale
`
`of the Accused Products to end-users, through, for example, resellers, constitute induced
`
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`

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`infringement of Claim 1 of the ’869 Patent because Estech’s customers’ use of the Accused
`
`Products is direct infringement of Claim 1.
`
`47.
`
`On information and belief, Estech provides end-users with guides, manuals,
`
`advertising materials, and instructions as to how to use the Accused Products in the claimed
`
`method of Claim 1 of the ’869 Patent. Estech further aids, instructs, or otherwise acts with the
`
`knowledge and intent to cause a user to use and/or manufacture the Accused Products. For at least
`
`these reasons, Estech induces its customers’ infringement of the ’869 Patent.
`
`48.
`
`Cisco has been damaged as a result of the infringing conduct by Estech alleged
`
`above. Thus, Estech is liable to Cisco in an amount that compensates it for such infringement,
`
`which by law cannot be less than a reasonable royalty, together with interest and costs as fixed by
`
`this Court under 35 U.S.C. § 284.
`
`49.
`
`Estech’s infringement of the ’869 Patent has caused, and will continue to cause,
`
`Cisco to suffer substantial and irreparable harm.
`
`50.
`
`Estech knew of the ’869 Patent, at least as of the date when it was notified of the
`
`filing of this action, and knew that its use and sale of the Accused Products infringe at least Claim
`
`1 of the ’869 Patent.
`
`51.
`
`Estech’s infringement of the ’869 Patent is, at least as of the date of the filing of the
`
`instant Complaint, willful, intentional, deliberate, and/or in conscious disregard of Cisco’s rights
`
`under the ’869 Patent.
`
`COUNT II
`Infringement of U.S. Patent No. 6,977,911
`
`Cisco incorporates by reference and realleges each and every allegation of
`
`52.
`
`Paragraphs 1 through 51 as if set forth herein.
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`53.
`
`Cisco owns all substantial rights, interest, and title in and to the ’911 Patent,
`
`including the sole and exclusive right to prosecute this action and enforce the ’911 Patent against
`
`infringers, and to collect damages for all relevant times.
`
`54.
`
`The ’911 Patent generally describes a system and method for changing media
`
`streams and dynamically switching codecs during a call.
`
`55.
`
`The written description of the ’911 Patent describes in technical detail each of the
`
`limitations of the claims, allowing a skilled artisan to understand the scope of the claims and how
`
`the non-conventional and non-generic combination of claim limitations is patentably distinct from
`
`and improved upon what may have been considered conventional or generic in the art at the time
`
`of the invention.
`
`56.
`
`Estech has made, used, imported, supplied, distributed, sold, and/or offered for sale,
`
`and continues to make, use, import, supply, distribute, sell, and/or offer for sale the Accused
`
`Products.
`
`57.
`
`By doing so, Estech has infringed and is infringing at least Claim 1 of the ’911
`
`Patent by making, having made, using, importing, supplying, distributing, selling, and/or offering
`
`for sale the Accused Products. In particular, the manufacture and use of the Accused Products by
`
`Estech to, for example, demonstrate and/or test those products, constitute acts of direct
`
`infringement of Claim 1 of the ’911 Patent.
`
`58.
`
`The Accused Products include, but are not limited to, ESI ePhone8, ESI ePhone3,
`
`ESI ePhone4x, ESI ePhoneX, ESI dPhone4, ESI 55D Business Phone, ESI 30 SIP, ESI 30D
`
`Business Phone, the ESI 60 Business Phone, local area networks, networking equipment, and
`
`communication applications, including, but not limited to, ESI Presence and ESI Intellitouch.
`
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`59.
`
`As of this complaint, Estech is on notice that its actions, including its sale of the
`
`Accused Products to end-users, through, for example, resellers, constitute induced infringement of
`
`Claim 1 of the ’911 Patent because Estech’s customers’ use of the Accused Products is direct
`
`infringement of Claim 1. Further, Estech provides end-users with guides, manuals, advertising
`
`materials, and instructions as to how to use the Accused Products in the claimed method of Claim
`
`1 of the ’911 Patent. Estech further aids, instructs, or otherwise acts with the knowledge and intent
`
`to cause a user to use and/or manufacture the Accused Products. For at least these reasons, Estech
`
`induces its customers’ infringement of the ’911 Patent.
`
`60.
`
`Cisco has been damaged as a result of the infringing conduct by Estech alleged
`
`above. Thus, Estech is liable to Cisco in an amount that compensates it for such infringement,
`
`which by law cannot be less than a reasonable royalty, together with interest and costs as fixed by
`
`this Court under 35 U.S.C. § 284.
`
`61.
`
`Estech’s infringement of the ’911 Patent has caused, and will continue to cause,
`
`Cisco to suffer substantial and irreparable harm.
`
`62.
`
`Estech knew of the ’911 Patent, at least as of the date when it was notified of the
`
`filing of this action, and knew that its use and sale of the Accused Products infringe at least Claim
`
`1 of the ’911 Patent.
`
`63.
`
`Estech’s infringement of the ’911 Patent is, at least as of the date of the filing of the
`
`instant Complaint, willful, intentional, deliberate, and/or in conscious disregard of Cisco’s rights
`
`under the ’911 Patent.
`
`COUNT III
`Infringement of U.S. Patent No. 7,269,162
`
`Cisco incorporates by reference and realleges each and every allegation of
`
`64.
`
`Paragraphs 1 through 63 as if set forth herein.
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`65.
`
`Cisco owns all substantial rights, interest, and title in and to the ’162 Patent,
`
`including the sole and exclusive right to prosecute this action and enforce the ’162 Patent against
`
`infringers, and to collect damages for all relevant times.
`
`66.
`
`The ’162 Patent generally describes a network device and method for executing
`
`applications configured to establish and maintain presence information for a user of the network
`
`device.
`
`67.
`
`The written description of the ’162 Patent describes in technical detail each of the
`
`limitations of the claims, allowing a skilled artisan to understand the scope of the claims and how
`
`the non-conventional and non-generic combination of claim limitations is patentably distinct from
`
`and improved upon what may have been considered conventional or generic in the art at the time
`
`of the invention.
`
`68.
`
`Estech has made, had made, used, imported, supplied, distributed, sold, and/or
`
`offered for sale and continues to make, use, import, supply, distribute, sell, and/or offer for sale
`
`the Accused Products.
`
`69.
`
`By doing so, Estech has infringed and is infringing at least Claim 14 of the ’162
`
`Patent by making, having made, using, importing, supplying, distributing, selling, and/or offering
`
`for sale the Accused Products. In particular, the manufacture and use of the Accused Products by
`
`Estech to, for example, demonstrate and/or test those products, constitute acts of direct
`
`infringement of Claim 14 of the ’162 Patent.
`
`70.
`
`The Accused Products include, but are not limited to, ESI ePhone8, ESI ePhone3,
`
`ESI ePhone4x, ESI ePhoneX, ESI dPhone4, ESI 55D Business Phone, ESI 30 SIP, ESI 30D
`
`Business Phone, the ESI 60 Business Phone, local area networks, networking equipment, and
`
`communication applications, including, but not limited to, ESI Presence and ESI Intellitouch.
`
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`71.
`
`As of this complaint, Estech is on notice that its actions, including its sale of the
`
`Accused Products to end-users, through, for example, resellers, constitute induced infringement of
`
`Claim 14 of the ’162 Patent because Estech’s customers’ use of the Accused Products is direct
`
`infringement of Claim 14. Further, Estech provides end-users with guides, manuals, advertising
`
`materials, and instructions as to how to use the Accused Products in the claimed method of Claim
`
`14 of the ’162 Patent. Estech further aids, instructs, or otherwise acts with the knowledge and
`
`intent to cause a user to use and/or manufacture the Accused Products. For at least these reasons,
`
`Estech induces its customers’ infringement of the ’162 Patent.
`
`72.
`
`Cisco has been damaged as a result of the infringing conduct by Estech alleged
`
`above. Thus, Estech is liable to Cisco in an amount that compensates it for such infringement,
`
`which by law cannot be less than a reasonable royalty, together with interest and costs as fixed by
`
`this Court under 35 U.S.C. § 284.
`
`73.
`
`Estech’s infringement of the ’162 Patent has caused, and will continue to cause,
`
`Cisco to suffer substantial and irreparable harm.
`
`74.
`
`Estech knew of the ’162 Patent, at least as of the date when it was notified of the
`
`filing of this action, and knew that its use and sale of the Accused Products infringe at least Claim
`
`14 of the ’162 Patent.
`
`75.
`
`Estech’s infringement of the ’162 Patent is, at least as of the date of the filing of the
`
`instant Complaint, willful, intentional, deliberate, and/or in conscious disregard of Cisco’s rights
`
`under the ’162 Patent.
`
`COUNT IV
`Infringement of U.S. Patent No. 9,167,399
`
`Cisco incorporates by reference and realleges each and every allegation of
`
`76.
`
`Paragraphs 1 through 75 as if set forth herein.
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`77.
`
`Cisco owns all substantial rights, interest, and title in and to the ’399 Patent,
`
`including the sole and exclusive right to prosecute this action and enforce the ’399 Patent against
`
`infringers, and to collect damages for all relevant times.
`
`78.
`
`The ’399 Patent generally describes a system and method for transferring a
`
`communication session from a cellular telephone to a desktop telephone.
`
`79.
`
`The written description of the ’399 Patent describes in technical detail each of the
`
`limitations of the claims, allowing a skilled artisan to understand the scope of the claims and how
`
`the non-conventional and non-generic combination of claim limitations is patentably distinct from
`
`and improved upon what may have been considered conventional or generic in the art at the time
`
`of the invention.
`
`80.
`
`Estech has made, had made, used, imported, supplied, distributed, sold, and/or
`
`offered for sale and continues to make, use, import, supply, distribute, sell, and/or offer for sale
`
`the Accused Products.
`
`81.
`
`By doing so, Estech has infringed and is infringing at least Claim 1 of the ’399
`
`Patent by making, having made, using, importing, supplying, distributing, selling, and/or offering
`
`for sale the Accused Products. In particular, the manufacture and use of the Accused Products by
`
`Estech to, for example, demonstrate and/or test those products, constitute acts of direct
`
`infringement of Claim 1 of the ’399 Patent.
`
`82.
`
`The Accused Products include, but are not limited to, ESI ePhone8, ESI ePhone3,
`
`ESI ePhone4x, ESI ePhoneX, ESI dPhone4, ESI 55D Business Phone, ESI 30 SIP, ESI 30D
`
`Business Phone, the ESI 60 Business Phone, local area networks, networking equipment, and
`
`communication applications, including, but not limited to, ESI Presence and ESI Intellitouch.
`
`
`
`

`

`Case 2:21-cv-00266 Document 1 Filed 07/15/21 Page 15 of 26 PageID #: 15
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`83.
`
`As of this complaint, Estech is on notice that its actions, including its sale of the
`
`Accused Products to end-users, through, for example, resellers, constitute induced infringement of
`
`Claim 1 of the ’399 Patent because Estech’s customers’ use of the Accused Products is direct
`
`infringement of Claim 1. Further, Estech provides end-users with guides, manuals, advertising
`
`materials, and instructions as to how to use the Accused Products in the claimed method of Claim
`
`1 of the ’399 Patent. Estech further aids, instructs, or otherwise acts with the knowledge and intent
`
`to cause a user to use and/or manufacture the Accused Products. For at least these reasons, Estech
`
`induces its customers’ infringement of the ’399 Patent.
`
`84.
`
`Cisco has been damaged as a result of the infringing conduct by Estech alleged
`
`above. Thus, Estech is liable to Cisco in an amount that compensates it for such infringement,
`
`which by law cannot be less than a reasonable royalty, together with interest and costs as fixed by
`
`this Court under 35 U.S.C. § 284.
`
`85.
`
`Estech’s infringement of the ’399 Patent has caused, and will continue to cause,
`
`Cisco to suffer substantial and irreparable harm.
`
`86.
`
`Estech knew of the ’399 Patent, at least as of the date when it was notified of the
`
`filing of this action, and knew that its use and sale of the Accused Products infringe at least Claim
`
`1 of the ’399 Patent.
`
`87.
`
`Estech’s infringement of the ’399 Patent is, at least as of the date of the filing of the
`
`instant Complaint, willful, intentional, deliberate, and/or in conscious disregard of Cisco’s rights
`
`under the ’399 Patent.
`
`
`
`
`
`
`
`
`
`

`

`Case 2:21-cv-00266 Document 1 Filed 07/15/21 Page 16 of 26 PageID #: 16
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`FACTUAL ALLEGATIONS RELATED TO CISCO’S DECLARATORY JUDGMENT
`OF NON-INFRINGEMENT
`
`Cisco brings this declaratory judgment action because Estech, with patents nearing
`
`88.
`
`the end of their life, has attempted to monetize its decades-old patent portfolio by harassing certain
`
`Cisco customers.
`
`89.
`
`Despite its apparent knowledge and allegations that Cisco provides some of the
`
`products and services Estech is presently accusing of infringement, Estech declined to implead
`
`Cisco or the vendors of any other accused products.
`
`90.
`
`To date, Estech has filed twenty (20) patent infringement lawsuits against
`
`purchasers of VoIP products. At least eight (8) of those lawsuits assert patent infringement claims
`
`against Cisco’s customers for their use of Cisco’s VoIP product offerings.
`
`91.
`
`As a result of Estech’s monetization efforts, Cisco has received indemnity demands
`
`from a number of these purchasers. These purchasers contend that Cisco is obligated to defend
`
`and indemnify them pursuant to the terms of their agreements with Cisco. Cisco takes these
`
`indemnity demands seriously, as it firmly believes that its customers should not be harassed by
`
`such infringement allegations.
`
`92.
`
`On information and belief, Estech is pursuing a litigation strategy of suing
`
`purchasers of Cisco products—as opposed to Cisco itself—in order to leverage the cost of
`
`litigation against targets that do not have the inclination to defend Estech’s accusations related to
`
`mere use of Cisco’s proprietary technology, particularly when so much of the defense of Estech’s
`
`meritless claims requires technical knowledge of the engineers who actually develop the accused
`
`products, and are internal to Cisco.2
`
`
`2 Estech’s campaign is particularly troubling given that that the proprietary nature of the Cisco
`technology means that Estech cannot prove infringement by party discovery alone.
`
`
`
`

`

`Case 2:21-cv-00266 Document 1 Filed 07/15/21 Page 17 of 26 PageID #: 17
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`93.
`
`On information and belief, Estech is targeting this class of users to obtain
`
`settlements that bear no reasonable relation to the value, if any, or scope of the Estech Asserted
`
`Patents.
`
`94.
`
` Estech’s litigation tactics of pursuing claims against end purchasers, rather than
`
`product suppliers, if allowed to go forward, would be a troubling use of the United States Federal
`
`Court system and an undue burden on the courts and the business community.
`
`95.
`
`In direct response to Estech’s harassment of Cisco’s customers, Cisco filed Inter
`
`Partes Review petitions against all four Estech patents asserted against Cisco’s customers.
`
`96.
`
`Cisco’s Inter Partes Review petitions were discretionarily denied due, primarily,
`
`to the relative schedules in the Eastern District of Texas and the Patent Trial and Appeal Board.
`
`97.
`
`Cisco also brings this Declaratory Judgment action in direct response to Estech’s
`
`harassment of Cisco’s customers.
`
`98.
`
`In April and May of 2020, Estech initiated ten (10) lawsuits against purchasers of
`
`VoIP telephone devices and systems in the United States District Courts for the Eastern and
`
`Western Districts of Texas, alleging infringement of one or more of the Estech Asserted Patents.
`
`See Estech v. PlainsCapital Bank, 2:20-cv-00122 (E.D. Tex. Apr. 24, 2020); Estech v. Target
`
`Corp., No. 2:20-cv-00123 (E.D. Tex. filed Apr. 24, 2020); Estech v. Regus Int’l Ltd., No. 2:20-cv-
`
`00124 (E.D. Tex. filed Apr. 24, 2020); Estech v. BOKF, Nat’l Ass’n., No. 2:20-cv-00126 (E.D.
`
`Tex. filed Apr. 27, 2020); Estech v. BBVA USA Bancshares, Inc., No. 2:20-cv-00127 (E.D. Tex.
`
`filed Apr. 27, 2020); Estech v. Wells Fargo & Co. et al., No. 2:20-cv-00128 (E.D. Tex. filed Apr.
`
`27, 2020); Estech v. Regus Mgmt. Grp., LLC et al., No. 2:20-cv-00143 (E.D. Tex. filed May 8,
`
`2020); Estech v. Private Jets, Inc., No. 6:20-cv-00320 (W.D. Tex. filed Apr. 24, 2020); Estech v.
`
`
`
`

`

`Case 2:21-cv-00266 Document 1 Filed 07/15/21 Page 18 of 26 PageID #: 18
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`Open Mortg., LLC, No. 6:20-cv-00321 (W.D. Tex. filed Apr. 24, 2020); Estech v. Regions Fin.
`
`Corp., No. 6:20-cv-00322 (W.D. Tex. filed Apr. 24, 2020).
`
`99.
`
`In August and September of 2020 Estech filed an additional ten (10) lawsuits
`
`against other defendants in the same venues on the same grounds. See Estech v. Burnco Texas
`
`LLC et al., No. 2:20-cv-00275 (E.D. Tex. filed Aug. 25, 2020); Estech v. Burrow Glob. LLC, No.
`
`2:20-cv-00276 (E.D. Tex. filed Aug. 25, 2020); Estech v. Hancock Whitney Bank et al., No. 2:20-
`
`cv-00277 (E.D. Tex. filed Aug. 25, 2020); Estech v. US Derm. Med. Mgmt., Inc. d/b/a US Derm.
`
`Partners, No. 2:20-cv-00278 (E.D. Tex. filed Aug. 25, 2020); Estech v. Oliver Street Derm. Mgmt.
`
`d/b/a US Derm. Partners et al., No. 2:20-cv-00311 (E.D. Tex. filed Sept. 21, 2020); Estech v.
`
`Energy Transfer LP, No. 6:20-00773 (W.D. Tex. filed Aug. 25, 2020); Estech v. Gensler
`
`Architecture, Design & Planning, P.C. d/b/a Gensler et al., No. 6:20-00774 (W.D. Tex. filed Aug.
`
`25, 2020); Estech v. HWC Wire & Cable Co., No. 6:20-00776 (W.D. Tex. filed Aug. 25, 2020);
`
`Estech v. Howard Midstream Energy Partners, No. 6:20-00777 (W.D. Tex. filed Aug. 25, 2020);
`
`Estech v. SWBC Mortg. Corp. et al., No. 6:20-00778 (W.D