UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA

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1 ALSCHULER Vincent K. Yip (No. ) vyip@agsk.com Terry D. Garnett (No. ) tgarnett@agsk.com Peter J. Wied (No. ) pwied@agsk.com Maxwell A. Fox (No. 000) mfox@agsk.com The Water Garden 0 th Street Fourth Floor, North Tower Santa Monica, CA Telephone: Facsimile: Attorneys for Defendant BENQ AMERICA CORPORATION UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA ALSCHULER 0 SHARP CORPORATION a.k.a. SHARP KABUSHIKI KAISHA, vs. Plaintiff, AU OPTRONICS CORPORATION, AU OPTRONICS CORPORATION AMERICA, VIEWSONIC CORPORATION, BENQ CORPORATION, BENQ AMERICA, ENVISION PERIPHERALS INC. d/b/a AOC MONITORS, PROVIEW TECHNOLOGY, INC., SCEPTRE TECHNOLOGIES, INC., ACER, INC., AND ACER AMERICA CORPORATION, Defendants. AND RELATED COUNTERCLAIMS. CASE NO. C0-0 MMC (JCS) FIRST AMENDED ANSWER OF BENQ AMERICA CORPORATION TO SHARP CORPORATION S FIRST AMENDED COMPLAINT FOR PATENT INFRINGEMENT DEMAND FOR JURY TRIAL Case No. C 0-0 MMC (JCS)

2 0 Defendant BENQ AMERICA CORPORATION (hereinafter BENQ AMERICA ) hereby answers and asserts its affirmative defenses to the First Amended Complaint for Patent Infringement filed by Sharp Corporation on February, 00 (hereinafter Complaint ) as follows: THE PARTIES. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and. Upon information and belief, BENQ is a corporation existing under the laws of Taiwan having a place of business located at Shan-Ying Road, Gueishan, Taoyuan, Taiwan, R.O.C. Upon information and belief, BENQ offers for sale and sells products, including monitors, in the United States. Upon information and belief, some of the monitors may incorporate LCD products manufactured by AU Optronics ( AUO ). BENQ AMERICA otherwise denies the remaining allegations in paragraph.. BENQ AMERICA admits that it is a corporation existing under the laws of the state of California having a place of business located at 00 East Business Parkway, City of Industry, California. BENQ AMERICA further admits that it imports, offers for sale, and sells products, including monitors, in the United States. Upon information and belief, some of the monitors may incorporate LCD products manufactured by AU Optronics ( AUO ). BENQ AMERICA otherwise denies the remaining allegations in paragraph.. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and. BENQ AMERICA is without sufficient knowledge or information to form Case No. C 0-0 MMC (JCS)

3 0 a belief as to the truth of allegations of paragraph and. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and. Admitted.. Admitted. JURISDICTION. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and. Upon information and belief, BENQ solicits sales and sells products, including monitors, in the United States, including within the Northern District of California. BENQ AMERICA denies the remaining allegations in paragraph.. BENQ AMERICA admits that it imports into the United States, solicits sales, and sells products, including monitors, in the United States, including within the Northern District of California. BENQ AMERICA denies the remaining allegations in paragraph.. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and 0. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph 0 and. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and Case No. C 0-0 MMC (JCS)

4 0. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and. BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of allegations of paragraph and. Admitted.. Admitted. VENUE INTRADISTRICT ASSIGNMENT ASSERTED PATENTS-IN-SUIT. BENQ AMERICA admits that United States Patent No.,, ( the patent ) appears to be entitled Method of Driving Liquid Crystal Display Device and to have an issue date of March,, and that a copy accompanied the Complaint as Exhibit A. As to any remaining allegations contained in paragraph, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the allegations and. BENQ AMERICA admits that the patent lists Sharp Kabushiki Kaisha as the Assignee. As to any remaining allegations contained in paragraph, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the allegations and. BENQ AMERICA admits that United States Patent No.,0, ( the patent ) appears to be entitled Liquid Crystal Active-Matrix Display Device and to have an issue date of July,, and that a copy accompanied the Complaint as Exhibit B. As to any remaining allegations contained in paragraph, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the allegations and therefore denies them.. BENQ AMERICA admits that the patent lists Sharp Kabushiki Kaisha as the Assignee. As to any remaining allegations contained in paragraph, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the Case No. C 0-0 MMC (JCS)

5 0 allegations and 0. BENQ AMERICA admits that United States Patent No.,0, ( the patent ) appears to be entitled Liquid Crystal Display Device and to have an issue date of January,, and that a copy accompanied the Complaint as Exhibit C. As to any remaining allegations contained in paragraph 0, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the allegations and. BENQ AMERICA admits that the patent lists Sharp Kabushiki Kaisha as the Assignee. As to any remaining allegations contained in paragraph, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the allegations and. BENQ AMERICA admits that United States Patent No.,, ( the patent ) appears to be entitled Liquid Crystal Display Element and Method for Treating Defective Pixels Therein and to have an issue date of August,, and that a copy accompanied the Complaint as Exhibit D. As to any remaining allegations contained in paragraph, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the allegations and. BENQ AMERICA admits that the patent lists Sharp Kabushiki Kaisha as the Assignee. As to any remaining allegations contained in paragraph, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the allegations and. BENQ AMERICA admits that United States Patent No.,, ( the patent ) appears to be entitled Lighting Apparatus and to have an issue date of March,, and that a copy accompanied the Complaint as Exhibit E. As to any remaining allegations contained in paragraph, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the allegations and. BENQ AMERICA admits that the patent lists Sharp Kabushiki Kaisha as the Assignee. As to any remaining allegations contained in paragraph, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the Case No. C 0-0 MMC (JCS)

6 0 allegations and First Claim for Relief INFRINGEMENT OF U.S. PATENT NO.,,. BENQ AMERICA hereby incorporates by reference, as appropriate, its responses to paragraphs through.. BENQ AMERICA admits that it imports, offers for sale, and sells monitors in the United States, certain of which, upon information and belief, may comprise LCD products manufactured by AUO, and denies the remaining allegations regarding BENQ AMERICA in paragraph. As to any remaining allegations contained in paragraph, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the allegations and. BENQ AMERICA denies each and every allegation of paragraph.. BENQ AMERICA denies each and every allegation of paragraph. Second Claim for Relief INFRINGEMENT OF U.S. PATENT NO.,0, 0. BENQ AMERICA hereby incorporates by reference, as appropriate, its responses to paragraphs through.. BENQ AMERICA admits that it imports, offers for sale, and sells monitors in the United States, certain of which, upon information and belief, may comprise LCD products manufactured by AUO, and denies the remaining allegations regarding BENQ AMERICA in paragraph. As to any remaining allegations contained in paragraph, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the allegations and. BENQ AMERICA denies each and every allegation of paragraph.. BENQ AMERICA denies each and every allegation of paragraph. Third Claim for Relief INFRINGEMENT OF U.S. PATENT NO.,0,. BENQ AMERICA hereby incorporates by reference, as appropriate, its Case No. C 0-0 MMC (JCS)

7 0 responses to paragraphs through.. BENQ AMERICA admits that it imports, offers for sale, and sells monitors in the United States, certain of which, upon information and belief, may comprise LCD products manufactured by AUO, and denies the remaining allegations regarding BENQ AMERICA in paragraph. As to any remaining allegations contained in paragraph, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the allegations and. BENQ AMERICA denies each and every allegation of paragraph.. BENQ AMERICA denies each and every allegation of paragraph. Fourth Claim for Relief INFRINGEMENT OF U.S. PATENT NO.,,. BENQ AMERICA hereby incorporates by reference, as appropriate, its responses to paragraphs through.. BENQ AMERICA admits that it imports, offers for sale, and sells monitors in the United States, certain of which, upon information and belief, may comprise LCD products manufactured by AUO, and denies the remaining allegations regarding BENQ AMERICA in paragraph. As to any remaining allegations contained in paragraph, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the allegations and 0. BENQ AMERICA denies each and every allegation of paragraph 0.. BENQ AMERICA denies each and every allegation of paragraph. Fifth Claim for Relief INFRINGEMENT OF U.S. PATENT NO.,,. BENQ AMERICA hereby incorporates by reference, as appropriate, its responses to paragraphs through.. BENQ AMERICA admits that it imports, offers for sale, and sells monitors in the United States, certain of which, upon information and belief, may comprise LCD products manufactured by AUO, and denies the remaining allegations regarding BENQ AMERICA in Case No. C 0-0 MMC (JCS)

8 0 paragraph. As to any remaining allegations contained in paragraph, BENQ AMERICA is without sufficient knowledge or information to form a belief as to the truth of the allegations and. BENQ AMERICA denies each and every allegation of paragraph.. BENQ AMERICA denies each and every allegation of paragraph. AFFIRMATIVE DEFENSES Without conceding that any of the following necessarily must be pleaded as an affirmative defense, or that any of the following is not already at issue by virtue of the foregoing denials, and without prejudice to BENQ AMERICA s right to plead additional defenses as discovery into the facts of the matter warrant, BENQ AMERICA hereby asserts the following affirmative defenses: First Affirmative Defense. BENQ AMERICA does not infringe and has not infringed (either directly, contributorily, or by inducement) any valid and enforceable claim of the,,,, and patents, either literally or under the doctrine of equivalents. Second Affirmative Defense. The asserted claims of the,,,, and patents are invalid for failure to comply with one or more of the requirements of Title, U.S. Code, at least in Sections,, and. of laches. of estoppel. Third Affirmative Defense. Sharp s claims and requested remedies are barred by the equitable doctrine Fourth Affirmative Defense. Sharp s claims and requested remedies are barred by the equitable doctrine Fifth Affirmative Defense 0. The patent is unenforceable at least because Sharp knowingly failed to disclose to the United States Patent and Trademark Office U.S. Patent Nos.,,,,,0, Case No. C 0-0 MMC (JCS)

9 0,0,, and,, and Japanese laid open patent publication No. 00. These references issued or were published during the pendency of the application that issued as the patent. Sharp knew, or should have know, of these references as they are assigned to Sharp and had some inventors in common with the patent. These references are material to the patent and were withheld with the intent to mislead the United States Patent and Trademark Office. PRAYERS FOR RELIEF WHEREFORE, BENQ AMERICA respectfully requests that the Court: A. Dismiss the Complaint with prejudice; B. Enter a judgment in favor of BENQ AMERICA; C. Declare that BENQ AMERICA has not infringed and currently is not infringing, whether directly, indirectly, contributorily, by inducement, literally, or under the doctrine of equivalents any claim of the,,,, and patents; D. Declare that the asserted claims of the,,,, and patents are invalid; E. Declare that the asserted claims of the patent are unenforceable. F. Declare that Sharp is entitled to no past damages by virtue of laches; G. Declare that Sharp is entitled to no relief of any type by virtue of estoppel; H. Declare that this is an exceptional case under U.S.C. and award attorneys fees to BENQ AMERICA; and I. Grant such further relief as the Court deems just and proper. ALSCHULER Case No. C 0-0 MMC (JCS)

10 DEMAND FOR JURY TRIAL Pursuant to Federal Rule of Civil Procedure (b), BENQ AMERICA respectfully demands a trial by jury on all issues so triable. 0 DATED: April, 00 ALSCHULER By /s/ Peter J. Wied Peter J. Wied Attorneys for Defendant ALSCHULER Case No. C 0-0 MMC (JCS)

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