Free Answer to Complaint - District Court of Delaware - Delaware


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Case 1:07-cv-00507-GMS

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE VONAGE HOLDINGS CORP., Plaintiff, v. NORTEL NETWORKS, INC. and NORTEL NETWORKS, LTD., Defendants. ) ) ) ) ) ) ) ) ) )

C.A. No. 07-507-***(LPS) JURY TRIAL DEMANDED

NORTEL'S ANSWER AND COUNTERCLAIMS Declaratory judgment defendants Nortel Networks Inc. and Nortel Networks Ltd. (collectively "Nortel"), by their attorneys, answer the Complaint for Declaratory Judgment of plaintiff Vonage Holdings, Corp. ("Vonage") as follows: THE PARTIES 1. Nortel is without information or knowledge sufficient to form a belief as to the

truth of the allegations of Paragraph 1 of the Complaint and therefore denies the same. 2. Nortel states that Nortel Networks Inc.'s principal place of business is located in

Richardson, Texas. 3. 4. Admitted. Admitted. NATURE AND BASIS OF ACTION 5. Admitted. JURISDICTION AND VENUE 6. 7. Admitted. Admitted.

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THE PATENTS-IN-SUIT 8. Defendants admit that Nortel is the owner of U.S. Patent No. 6,091,808 ("'808

Patent") and that a purported copy of the '808 Patent was attached as an exhibit to the Complaint. 9. Defendants admit that Nortel is the owner of U.S. Patent No. 6,445,695 ("'695

Patent") and that a purported copy of the '695 Patent was attached as an exhibit to the Complaint. 10. Defendants admit that Nortel is the owner of U.S. Patent No. 7,050,861 ("'861

Patent") and that a purported copy of the '861 Patent was attached as an exhibit to the Complaint. BACKGROUND FACTS 11. 12. 13. 14. Admitted. Admitted. Admitted. Defendants deny the allegations of Paragraph 14 of the Complaint except to admit

that Vonage has asserted, in Civil Action No. 4:04-cv-00548, currently pending in the Northern District of Texas ("Texas Action"), that defendant Nortel Networks Inc. infringes U.S. Patents Nos. 4,782,485; 5,018,136; and 5,444,707. 15. Defendants deny the allegations of Paragraph 15 of the Complaint except to admit

that in the Texas Action, defendant Nortel Networks Inc. has requested a declaratory judgment adjudicating its rights with respect to U.S. Patents Nos. 4,782,485; 5,018,136; and 5,444,707. 16. Defendants admit that defendant Nortel Networks Inc. moved for leave to amend

its pleadings in the Texas Action to assert the '808, '695 and '861 Patents against Vonage and that Nortel Networks Ltd. was not a party to the Texas Action. Defendants also admit that

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Nortel Networks Ltd. is listed as the assignee of the patents. Defendants deny the remaining allegations of Paragraph 16. 17. Defendants deny the allegations of Paragraph 17 of the Complaint except to admit

that Vonage opposed the portion of Nortel's motion to amend its pleadings that sought to assert the '808, '695 and '861 Patents against Vonage in the Texas Action. NORTEL'S THREATS OF INFRINGEMENT 18. Defendants deny the allegations of Paragraph 18 of the Complaint except to admit

that Nortel has put Vonage on notice that it believes that Vonage has infringed Nortel's patents. 19. The allegations of Paragraph 19 of the Complaint state legal conclusions to which

no responsive pleading is required. To the extent a responsive pleading is deemed to be required, Defendants do not contest that this Court has jurisdiction over this matter as currently constituted. COUNT I: NON-INFRINGEMENT OF THE '808 PATENT 20. Defendants repeat and incorporate by reference their answers to paragraphs 1-19

of the Complaint. 21. 22. 23. Admitted. Denied. Denied. COUNT II: INVALIDITY OF THE '808 PATENT 24. Defendants repeat and incorporate by reference their answers to paragraphs 1-23

of the Complaint. 25. 26. Denied. Denied.

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COUNT III: UNENFORCEABILITY OF THE '808 PATENT 27. Defendants repeat and incorporate by reference their answers to paragraphs 1-26

of the Complaint. 28. 29. Denied. Denied. COUNT IV: NON-INFRINGEMENT OF THE '695 PATENT 30. Defendants repeat and incorporate by reference their answers to paragraphs 1-29

of the Complaint. 31. 32. 33. Admitted. Denied. Denied. COUNT V: INVALIDITY OF THE '695 PATENT 34. Defendants repeat and incorporate by reference their answers to paragraphs 1-33

of the Complaint. 35. 36. Denied. Denied. COUNT VI: UNENFORCEABILITY OF THE '695 PATENT 37. Defendants repeat and incorporate by reference their answers to paragraphs 1-36

of the Complaint. 38. 39. Denied. Denied.

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COUNT VII: NON-INFRINGEMENT OF THE '861 PATENT 40. Defendants repeat and incorporate by reference their answers to paragraphs 1-39

of the Complaint. 41. 42. 43. Admitted. Denied. Denied. COUNT VIII: INVALIDITY OF THE '861 PATENT 44. Defendants repeat and incorporate by reference their answers to paragraphs 1-43

of the Complaint. 45. 46. Denied. Denied. COUNT IX: UNENFORCEABILITY OF THE '861 PATENT 47. Defendants repeat and incorporate by reference their answers to paragraphs 1-46

of the Complaint. 48. 49. Denied. Denied. AFFIRMATIVE DEFENSES 50. Further answering the Complaint, Defendants assert the following defenses in

response to the allegations of the Complaint, undertaking the burden of proof only as to those defenses required by law, regardless of how such defenses are denominated herein. Defendants reserve the right to amend their answer with additional defenses as further information is obtained.

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FIRST AFFIRMATIVE DEFENSE 51. With respect to each and every purported claim for relief alleged in the

Complaint, Plaintiff fails to state a claim against Nortel upon which relief may be granted. SECOND AFFIRMATIVE DEFENSE 52. Defendants reserve all affirmative defenses that are now or may become available

in the future based upon any discovery or any other factual investigation.

COUNTERCLAIMS For its counterclaims against Vonage Holdings Corp. ("Vonage"), Nortel Networks Inc. and Nortel Networks Ltd. (collectively "Nortel") states as follows: PARTIES 1. Nortel Networks Inc. is a Delaware corporation with its principal place of

business in Richardson, Texas. 2. Nortel Networks Ltd. is a Canadian corporation with a principal place of business

in Toronto, Canada. 3. Upon information and belief, Vonage is a Delaware corporation with a principal

place of business at 23 Main Street, Holmdel, New Jersey 07733. 4. Upon information and belief, Vonage provides broadband telephone services that

utilize Voice over Internet Protocol ("VoIP") technology, which enables voice communications and telephony services over the Internet through the conversion and compression of voice signals into data packets. In order to provide these services to its customers, Vonage makes, uses, offers for sale, sells and/or imports VoIP services, equipment and products.

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JURISDICTION AND VENUE 5. This counterclaim arises under the Patent Act of 1952, 35 U.S.C. §§ 1 et seq.

This Court has subject matter jurisdiction to hear this action under 28 U.S.C. §§ 1331, 1338(a). 6. and 1400(b). THE NORTEL ASSERTED PATENTS 7. Nortel is a technology leader and was one of the key innovators in developing Venue is proper in this judicial district under 28 U.S.C. §§ 1391(b) and 1391(c)

many of the designs, architectures, services and products that are utilized in today's VoIP networks. Nortel owns more than 3700 United States patents, many of which are applicable to telecommunications networks, including VoIP networks. Vonage's systems, architectures, and offered services utilize technology developed and patented by Nortel. 8. U.S. Patent No. 6,091,808 ("the '808 Patent"), entitled "Methods of and

Apparatus for Providing Telephone Call Control and Information," was issued on July 18, 2000. A copy of the '808 Patent is attached hereto as Exhibit A. 9. U.S. Patent No. 6,445,695 ("the '695 Patent"), entitled "System and Method for

Supporting Communications Services on Behalf of a Communications Device Which Cannot Provide Those Services Itself," was issued on September 3, 2002. A copy of the '695 Patent is attached hereto as Exhibit B. 10. U.S. Patent No. 7,050,861 ("the '861 Patent"), entitled "Controlling a Destination

Terminal From an Originating Terminal," was issued on May 23, 2006. A copy of the '861 Patent is attached hereto as Exhibit C. 11. U.S. Patent No. 6,937,572 ("the '572 Patent"), entitled "Call Trace On A Packet

Switched Network" was issued on August 30, 2005. A copy of the '572 Patent is attached hereto as Exhibit D.

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12.

U.S. Patent No. 7,177,399 ("the '399 Patent"), entitled "Determining A

Geographical Location From Which An Emergency Call Originates In A Packet-Based Communications Network" was issued on February 13, 2007. A copy of the '399 Patent is attached hereto as Exhibit E. 13. U.S. Patent No. 6,823,370 ("the '370 Patent"), entitled "System And Method For

Retrieving Select Web Content" was issued November 23, 2004. A copy of the '370 Patent is attached hereto as Exhibit F. 14. U.S. Patent No. 7,035,390 ("the '390 Patent"), entitled "User Controlled Call

Routing For Multiple Telephone Devices" was issued April 25, 2006. A copy of the '390 Patent is attached hereto as Exhibit G. 15. U.S. Patent No. 6,934,279 ("the '279 Patent"), entitled "Controlling Voice

Communications Over A Data Network" was issued on August 23, 2005. A copy of the '279 Patent is attached hereto as Exhibit H. 16. U.S. Patent No. 6,337,858 ("the '858 Patent"), entitled "Method And Apparatus

For Originating Voice Calls From A Data Network" was issued on January 8, 2002. A copy of the '858 Patent is attached hereto as Exhibit I. 17. U.S. Patent No. 6,798,786 ("the '786 Patent"), entitled "Managing Calls Over a

Data Network" was issued on September 28, 2004. A copy of the '786 Patent is attached hereto as Exhibit J. 18. U.S. Patent No. 5,991,389 ("the '389 Patent"), entitled "Programmable Service

Architecture for Call Control Processing" was issued on November 23, 1999. A copy of the '389 Patent is attached hereto as Exhibit K.

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19.

U.S. Patent No. 6,799,210 ("the '210 Patent"), entitled "Dynamic Association of

Endpoints to Media Gateway Controllers" was issued on September 28, 2004. A copy of the '210 Patent is attached hereto as Exhibit L. 20. Nortel is the owner of all rights, title and interest in and to the '808 Patent, '695

Patent, '861 Patent, '572 Patent, '399 Patent, '370 Patent, '390 Patent, '279 Patent, '858 Patent, '786 Patent, '389 Patent and '210 Patent (collectively "Nortel Asserted Patents") and is entitled to sue for past and future infringement. 21. The above-referenced Nortel Asserted Patents, infringed by Vonage, span key

technology areas needed for modern VoIP telephony. The '808, '279, '858 and '390 Patents broadly relate to systems, devices and methods that allow users to control telephone calls and features through a computer interface (usually through a web browser). The '695, '389, '210 and '786 Patents generally relate to the management or architecture of system resources. Lastly, the '861, '572, '399 and '370 Patents broadly relate to the use of system messaging to deliver or route information to a telephone user. CLAIM 1: INFRINGEMENT OF U.S. PATENT NO. 6,091,808 22. Nortel repeats and realleges the allegations in paragraphs 1-21 of the counter-

counterclaim as though fully set forth herein. 23. Vonage has and continues to infringe, contribute to the infringement of, and/or

induce infringement of the '808 Patent by making, using, selling, offering for sale, or importing into the United States, or by inducing or contributing to others' efforts to do so, products, components of products, and/or methods covered by one or more claims of the '808 Patent. 24. Vonage's continued infringement of the '808 Patent is willful.

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25.

Vonage's infringement of the '808 Patent has damaged and will continue to

damage Nortel. 26. Nortel has suffered and continues to suffer irreparable harm and will continue to

do so unless Vonage is enjoined from further acts of infringement by this Court. CLAIM 2: INFRINGEMENT OF U.S. PATENT NO. 6,445,695 27. Nortel repeats and realleges the allegations in paragraphs 1-21 of the counter-

counterclaim as though fully set forth herein. 28. Vonage has and continues to infringe, contribute to the infringement of, and/or

induce infringement of the '695 Patent by making, using, selling, offering for sale, or importing into the United States, or by inducing or contributing to others' efforts to do so, products, components of products, and/or methods covered by one or more claims of the '695 Patent. 29. 30. Vonage's continued infringement of the '695 Patent is willful. Vonage's infringement of the '695 Patent has damaged and will continue to

damage Nortel. 31. Nortel has suffered and continues to suffer irreparable harm and will continue to

do so unless Vonage is enjoined from further acts of infringement by this Court. CLAIM 3: INFRINGEMENT OF U.S. PATENT NO. 7,050,861 32. Nortel repeats and realleges the allegations in paragraphs 1-21 of the counter-

counterclaim as though fully set forth herein. 33. Vonage has and continues to infringe, contribute to the infringement of, and/or

induce infringement of the '861 Patent by making, using, selling, offering for sale, or importing into the United States, or by inducing or contributing to others' efforts to do so, products, components of products, and/or methods covered by one or more claims of the '861 Patent.

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34. 35.

Vonage's continued infringement of the '861 Patent is willful. Vonage's infringement of the '861 Patent has damaged and will continue to

damage Nortel. 36. Nortel has suffered and continues to suffer irreparable harm and will continue to

do so unless Vonage is enjoined from further acts of infringement by this Court. CLAIM 4: INFRINGEMENT OF U.S. PATENT NO. 6,937,572 37. Nortel repeats and realleges the allegations in paragraphs 1-21 of the counter-

counterclaim as though fully set forth herein. 38. Vonage has and continues to infringe, contribute to the infringement of, and/or

induce infringement of the '572 Patent by making, using, selling, offering for sale, or importing into the United States, or by inducing or contributing to others' efforts to do so, products, components of products, and/or methods covered by one or more claims of the '572 Patent. 39. 40. Vonage's continued infringement of the '572 Patent is willful. Vonage's infringement of the '572 Patent has damaged and will continue to

damage Nortel. 41. Nortel has suffered and continues to suffer irreparable harm and will continue to

do so unless Vonage is enjoined from further acts of infringement by this Court. CLAIM 5: INFRINGEMENT OF U.S. PATENT NO. 7,177,399 42. Nortel repeats and realleges the allegations in paragraphs 1-21 of the counter-

counterclaim as though fully set forth herein. 43. Vonage has and continues to infringe, contribute to the infringement of, and/or

induce infringement of the '399 Patent by making, using, selling, offering for sale, or importing

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into the United States, or by inducing or contributing to others' efforts to do so, products, components of products, and/or methods covered by one or more claims of the '399 Patent. 44. 45. Vonage's continued infringement of the '399 Patent is willful. Vonage's infringement of the '399 Patent has damaged and will continue to

damage Nortel. 46. Nortel has suffered and continues to suffer irreparable harm and will continue to

do so unless Vonage is enjoined from further acts of infringement by this Court. CLAIM 6: INFRINGEMENT OF U.S. PATENT NO. 6,823,370 47. Nortel repeats and realleges the allegations in paragraphs 1-21 of the counter-

counterclaim as though fully set forth herein. 48. Vonage has and continues to infringe, contribute to the infringement of, and/or

induce infringement of the '370 Patent by making, using, selling, offering for sale, or importing into the United States, or by inducing or contributing to others' efforts to do so, products, components of products, and/or methods covered by one or more claims of the '370 Patent. 49. 50. Vonage's continued infringement of the '370 Patent is willful. Vonage's infringement of the '370 Patent has damaged and will continue to

damage Nortel. 51. Nortel has suffered and continues to suffer irreparable harm and will continue to

do so unless Vonage is enjoined from further acts of infringement by this Court. CLAIM 7 INFRINGEMENT OF U.S. PATENT NO. 7,035,390 52. Nortel repeats and realleges the allegations in paragraphs 1-21 of the counter-

counterclaim as though fully set forth herein.

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53.

Vonage has and continues to infringe, contribute to the infringement of, and/or

induce infringement of the '390 Patent by making, using, selling, offering for sale, or importing into the United States, or by inducing or contributing to others' efforts to do so, products, components of products, and/or methods covered by one or more claims of the '390 Patent. 54. 55. Vonage's continued infringement of the '390 Patent is willful. Vonage's infringement of the '390 Patent has damaged and will continue to

damage Nortel. 56. Nortel has suffered and continues to suffer irreparable harm and will continue to

do so unless Vonage is enjoined from further acts of infringement by this Court. CLAIM 8: INFRINGEMENT OF U.S. PATENT NO. 6,934,279 57. Nortel repeats and realleges the allegations in paragraphs 1-21 of the counter-

counterclaim as though fully set forth herein. 58. Vonage has and continues to infringe, contribute to the infringement of, and/or

induce infringement of the '279 Patent by making, using, selling, offering for sale, or importing into the United States, or by inducing or contributing to others' efforts to do so, products, components of products, and/or methods covered by one or more claims of the '279 Patent. 59. 60. Vonage's continued infringement of the '279 Patent is willful. Vonage's infringement of the '279 Patent has damaged and will continue to

damage Nortel. 61. Nortel has suffered and continues to suffer irreparable harm and will continue to

do so unless Vonage is enjoined from further acts of infringement by this Court.

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CLAIM 9: INFRINGEMENT OF U.S. PATENT NO. 6,337,858 62. Nortel repeats and realleges the allegations in paragraphs 1-21 of the counter-

counterclaim as though fully set forth herein. 63. Vonage has and continues to infringe, contribute to the infringement of, and/or

induce infringement of the '858 Patent by making, using, selling, offering for sale, or importing into the United States, or by inducing or contributing to others' efforts to do so, products, components of products, and/or methods covered by one or more claims of the '858 Patent. 64. 65. Vonage's continued infringement of the '858 Patent is willful. Vonage's infringement of the '858 Patent has damaged and will continue to

damage Nortel. 66. Nortel has suffered and continues to suffer irreparable harm and will continue to

do so unless Vonage is enjoined from further acts of infringement by this Court. CLAIM 10: INFRINGEMENT OF U.S. PATENT NO. 6,798,786 67. Nortel repeats and realleges the allegations in paragraphs 1-21 of the counter-

counterclaim as though fully set forth herein. 68. Vonage has and continues to infringe, contribute to the infringement of, and/or

induce infringement of the '786 Patent by making, using, selling, offering for sale, or importing into the United States, or by inducing or contributing to others' efforts to do so, products, components of products, and/or methods covered by one or more claims of the '786 Patent. 69. 70. Vonage's continued infringement of the '786 Patent is willful. Vonage's infringement of the '786 Patent has damaged and will continue to

damage Nortel.

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71.

Nortel has suffered and continues to suffer irreparable harm and will continue to

do so unless Vonage is enjoined from further acts of infringement by this Court. CLAIM 11: INFRINGEMENT OF U.S. PATENT NO. 5,991,389 72. Nortel repeats and realleges the allegations in paragraphs 1-21 of the counter-

counterclaim as though fully set forth herein. 73. Vonage has and continues to infringe, contribute to the infringement of, and/or

induce infringement of the '389 Patent by making, using, selling, offering for sale, or importing into the United States, or by inducing or contributing to others' efforts to do so, products, components of products, and/or methods covered by one or more claims of the '389 Patent. 74. 75. Vonage's continued infringement of the '389 Patent is willful. Vonage's infringement of the '389 Patent has damaged and will continue to

damage Nortel. 76. Nortel has suffered and continues to suffer irreparable harm and will continue to

do so unless Vonage is enjoined from further acts of infringement by this Court. CLAIM 12 INFRINGEMENT OF U.S. PATENT NO. 6,799,210 77. Nortel repeats and realleges the allegations in paragraphs 1-21 of the counter-

counterclaim as though fully set forth herein. 78. Vonage has and continues to infringe, contribute to the infringement of, and/or

induce infringement of the '210 Patent by making, using, selling, offering for sale, or importing into the United States, or by inducing or contributing to others' efforts to do so, products, components of products, and/or methods covered by one or more claims of the '210 Patent. 79. Vonage's continued infringement of the '210 Patent is willful.

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80.

Vonage's infringement of the '210 Patent has damaged and will continue to

damage Nortel. 81. Nortel has suffered and continues to suffer irreparable harm and will continue to

do so unless Vonage is enjoined from further acts of infringement by this Court. JURY DEMAND Nortel demands a trial by jury as to all matters triable to a jury. PRAYER WHEREFORE, Nortel prays for judgment as follows: A. That Vonage shall take nothing by way of its claims and be granted no relief

whatsoever under any of its claims. B. That all damages, injunctive relief, costs, expenses, attorney fees, or other relief

sought by Vonage be denied. C. D. willful; E. Vonage. F. Judgment be entered awarding Nortel damages in an amount adequate to An injunction against further infringement of the Nortel Asserted Patents by Judgment be entered that Vonage infringes the Nortel Asserted Patents; Judgment be entered that Vonage's infringement of the Nortel Asserted Patents is

compensate Nortel for Vonage's infringement, but in no event less than a reasonable royalty rate under 35 U.S.C. § 284 and, to adequately compensate Nortel for the infringement, an accounting; G. Judgment be entered awarding Nortel enhanced damages by reason of Vonage's

willful infringement of the Nortel Asserted Patents pursuant to 35 U.S.C. § 284; H. U.S.C. §285; Judgment be entered awarding Nortel its attorneys' fees and expenses under 35

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I. J.

Judgment be entered awarding Nortel its costs; and Judgment be entered that Nortel be awarded such other and additional relief as the

Court deems just and proper.

Date: December 14, 2007

EDWARDS ANGELL PALMER & DODGE LLP

/s/ Denise Seastone Kraft Denise Seastone Kraft (Atty No. 2778) 919 North Market Street Suite 1500 Wilmington, DE 19801 (302) 777-7770 (888) 325-9741 (fax) [email protected] Counsel for Defendants Nortel Networks Inc and Nortel Networks Ltd. OF COUNSEL: Michael Brody WINSTON & STRAWN LLP 35 W. Wacker Drive Chicago, IL 60601 (312) 558-5600 Scott Samay Howard I. Shin WINSTON & STRAWN LLP 200 Park Avenue New York, NY 10166 (212) 294-6700

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CERTIFICATE OF SERVICE The undersigned hereby certifies that on December 14, 2007, a true and correct copy of the foregoing Nortel's Answer and Counterclaims was served upon the following counsel of record as indicated: VIA HAND DELIVERY Steven J. Balick, Esquire John G. Day, Esquire Tiffany Geyer Lydon, Esquire Ashby & Geddes 500 Delaware Avenue, 8th Fl. Wilmington, DE 19801

/s/ Denise Seastone Kraft Denise Seastone Kraft (#2778) Edwards Angell Palmer & Dodge LLP Wilmington, DE 19801 (302) 777-7770 [email protected]

WLM_511788_1.DOC/DKRAFT