Parallel Networks, LLC v. Adidas America, Inc. et al

Filing 339

ANSWER to #1 Complaint,,,,,,,, COUNTERCLAIM against Parallel Networks, LLC by Adidas America, Inc., Adidas Interactive, Inc..(Hawes, Clay)

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS TYLER DIVISION PARALLEL NETWORKS, LLC, Plaintiff, v. ADIDAS AMERICA, INC.; ADIDAS INTERACTIVE, INC.; AÉROPOSTALE, INC.; AMERICAN GIRL, LLC; AMERICAN SUZUKI MOTOR CORPORATION; ANDERSEN CORPORATION; ANDERSEN WINDOWS, INC.; ASICS AMERICA CORPORATION; AT&T INC.; BBY SOLUTIONS, INC.; BERGDORFGOODMAN.COM, LLC; BESTBUY.COM, LLC; BLOOMINGDALE'S, INC.; BRIGGS & STRATTON CORPORATION; BRIGGS & STRATTON POWER PRODUCTS GROUP, LLC; BRUNSWICK BILLIARDS, INC.; BRUNSWICK CORPORATION; CHICO'S RETAIL SERVICES, INC.; CITIZEN WATCH COMPANY OF AMERICA, INC.; DILLARD'S, INC.; EASTMAN KODAK COMPANY; GENERAL MOTORS LLC; THE GILLETTE COMPANY; THE GOODYEAR TIRE & RUBBER COMPANY; H-D MICHIGAN, INC.; HARLEY-DAVIDSON, INC.; HASBRO, INC.; HAYNEEDLE, INC.; HERMAN MILLER, INC.; HSN INTERACTIVE LLC; HSN LP; THE J. JILL GROUP, INC.; JILL ACQUISITION LLC; JONES INVESTMENT COMPANY, INC.; JONES RETAIL CORPORATION; KODAK IMAGING NETWORK, INC.; KOHL'S DEPARTMENT STORES, INC.; LG ELECTRONICS USA, INC.; MACY'S WEST STORES, INC.; MACYS.COM, INC.; MATTEL, INC.; MITSUBISHI MOTOR SALES OF AMERICA, INC.; MITSUBISHI MOTORS NORTH AMERICA, INC.; MOTOROLA, INC.; MOTOROLA
DB1/66045538.1

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CIVIL ACTION NO. 6:10-CV-00491-LED

JURY TRIAL DEMANDED

TRADEMARK HOLDINGS, LLC; NAUTICA APPAREL, INC.; NAUTICA RETAIL USA, INC.; NAVISTAR, INC.; NEW BALANCE ATHLETIC SHOW, INC.; NISSAN NORTH AMERICA, INC.; PRL USA HOLDINGS, INC.; THE PROCTER & GAMBLE COMPANY; RALPH LAUREN MEDIA LLC; RUSSELL BRANDS, LLC; SUBARU OF AMERICA, INC.; SUNGLASS HUT TRADING, LLC; VICTORIA'S SECRET; WOLVERINE WORLD WIDE IN.; and WOMEN'S APPAREL GROUP, LLC d/b/a BOSTON APPAREL GROUP, LLC, Defendants.

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ANSWER AND COUNTERCLAIMS OF DEFENDANTS ADIDAS AMERICA, INC., AND ADIDAS INTERACTIVE, INC., IN RESPONSE TO PARALLEL NETWORKS, LLC'S ORIGINAL COMPLAINT FOR PATENT INFRINGEMENT Defendants adidas America, Inc., and adidas Interactive, Inc. (collectively, "the adidas Entities"), answer Plaintiff Parallel Networks LLC's ("Parallel Networks'") Original Complaint for Patent Infringement ("Complaint") as follows: PARTIES 1. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 1. 2. 3. The adidas Entities admit the allegations in paragraph 2. The adidas Entities deny the allegations in paragraph 3 and state that adidas

Interactive, Inc., is no longer in existence. 4. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 4. 5. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 5.

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6.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 6. 7. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 7. 8. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 8. 9. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 9. 10. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 10. 11. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 11. 12. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 12. 13. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 13. 14. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 14. 15. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 15. 16. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 16.

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17.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 17. 18. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 18. 19. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 19. 20. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 20. 21. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 21. 22. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 22. 23. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 23. 24. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 24. 25. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 25. 26. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 26. 27. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 27.

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28.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 28. 29. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 29. 30. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 30. 31. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 31. 32. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 32. 33. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 33. 34. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 34. 35. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 35. 36. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 36. 37. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 37. 38. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 38.

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39.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 39. 40. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 40. 41. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 41. 42. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 42. 43. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 43. 44. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 44. 45. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 45. 46. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 46. 47. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 47. 48. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 48. 49. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 49.

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50.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 50. 51. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 51. 52. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 52. 53. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 53. 54. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 54. 55. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 55. 56. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 56. 57. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 57. 58. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 58. 59. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 59. 60. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 60.

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61.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 61. JURISDICTION 62. With respect to the allegations set forth in paragraph 62, the adidas Entities admit

that this Court has subject matter jurisdiction over Parallel Networks' claims. The adidas Entities admit that this Court has personal jurisdiction over them in this particular action. However, the adidas Entities deny that they have committed acts in this jurisdiction that give rise to any cause of action by Parallel Networks and deny the remaining allegations of paragraph 62, as they relate to the adidas Entities. To the extent the allegations of paragraph 62 are directed to other entities, the adidas Entities are without knowledge or information sufficient to form a belief as to the truth of such allegations. 63. With respect to the allegations set forth in paragraph 63, the adidas Entities admit

that venue is proper in this judicial district, but deny that this district is a convenient or appropriate forum in which to proceed with this dispute. The adidas Entities expressly reserve their rights under 28 U.S.C. § 1404. The adidas Entities admit that this Court has personal jurisdiction over them in this particular action. However, the adidas Entities deny that they have committed acts in this jurisdiction that give rise to any cause of action by Parallel Networks and deny the remaining allegations of paragraph 63, as they relate to the adidas Entities. To the extent the allegations of paragraph 63 are directed to other entities, the adidas Entities are without knowledge or information sufficient to form a belief as to the truth of such allegations. COUNT I 64. 65. The adidas Entities admit the allegations in paragraph 64. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 65.
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66.

With respect to the allegations set forth in paragraph 66, the adidas Entities state

that the claims of the `111 patent speak for themselves, and no responsive pleading is required. To the extent that a responsive pleading is required, the adidas Entities admit that paragraph 66 seems to reflect an effort to paraphrase the limitations of claim 1 of the `111 patent, but deny that the patent "covers" such "systems and methods," as Parallel Networks has failed to include all of the required limitations recited in claim 1. 67. 68. 69. 70. 71. 72. 73. 74. 75. The adidas Entities deny the allegations of paragraph 67. The adidas Entities deny the allegations of paragraph 68. The adidas Entities deny the allegations of paragraph 69. The adidas Entities deny the allegations of paragraph 70. The adidas Entities deny the allegations of paragraph 71. The adidas Entities deny the allegations of paragraph 72. The adidas Entities deny the allegations of paragraph 73. The adidas Entities deny the allegations of paragraph 74. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 75. 76. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 76. 77. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 77. 78. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 78.

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79.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 79. 80. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 80. 81. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 81. 82. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 82. 83. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 83. 84. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 84. 85. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 85. 86. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 86. 87. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 87. 88. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 88. 89. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 89.

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90.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 90. 91. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 91. 92. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 92. 93. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 93. 94. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 94. 95. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 95. 96. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 96. 97. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 97. 98. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 98. 99. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 99. 100. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 100.

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101.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 101. 102. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 102. 103. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 103. 104. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 104. 105. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 105. 106. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 106. 107. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 107. 108. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 108. 109. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 109. 110. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 110. 111. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 111.

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112.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 112. 113. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 113. 114. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 114. 115. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 115. 116. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 116. 117. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 117. 118. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 118. 119. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 119. 120. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 120. 121. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 121. 122. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 122.

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123.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 123. 124. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 124. 125. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 125. 126. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 126. 127. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 127. 128. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 128. 129. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 129. 130. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 130. 131. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 131. 132. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 132. 133. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 133.

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134.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 134. 135. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 135. 136. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 136. 137. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 137. 138. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 138. 139. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 139. 140. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 140. 141. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 141. 142. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 142. 143. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 143. 144. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 144.

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145.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 145. 146. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 146. 147. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 147. 148. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 148. 149. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 149. 150. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 150. 151. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 151. 152. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 152. 153. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 153. 154. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 154. 155. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 155.

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156.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 156. 157. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 157. 158. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 158. 159. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 159. 160. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 160. 161. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 161. 162. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 162. 163. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 163. 164. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 164. 165. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 165. 166. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 166.

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167.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 167. 168. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 168. 169. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 169. 170. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 170. 171. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 171. 172. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 172. 173. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 173. 174. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 174. 175. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 175. 176. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 176. 177. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 177.

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178.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 178. 179. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 179. 180. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 180. 181. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 181. 182. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 182. 183. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 183. 184. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 184. 185. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 185. 186. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 186. 187. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 187. 188. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 188.

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189.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 189. 190. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 190. 191. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 191. 192. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 192. 193. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 193. 194. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 194. 195. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 195. 196. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 196. 197. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 197. 198. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 198. 199. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 199.

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200.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 200. 201. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 201. 202. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 202. 203. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 203. 204. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 204. 205. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 205. 206. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 206. 207. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 207. 208. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 208. 209. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 209. 210. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 210.

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211.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 211. 212. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 212. 213. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 213. 214. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 214. 215. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 215. 216. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 216. 217. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 217. 218. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 218. 219. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 219. 220. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 220. 221. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 221.

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222.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 222. 223. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 223. 224. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 224. 225. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 225. 226. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 226. 227. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 227. 228. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 228. 229. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 229. 230. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 230. 231. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 231. 232. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 232.

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233.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 233. 234. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 234. 235. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 235. 236. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 236. 237. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 237. 238. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 238. 239. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 239. 240. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 240. 241. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 241. 242. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 242. 243. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 243.

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244.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 244. 245. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 245. 246. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 246. 247. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 247. 248. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 248. 249. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 249. 250. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 250. 251. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 251. 252. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 252. 253. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 253. 254. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 254.

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255.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 255. 256. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 256. 257. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 257. 258. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 258. 259. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 259. 260. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 260. 261. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 261. 262. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 262. 263. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 263. 264. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 264. 265. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 265.

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266.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 266. 267. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 267. 268. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 268. 269. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 269. 270. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 270. 271. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 271. 272. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 272. 273. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 273. 274. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 274. 275. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 275. 276. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 276.

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277.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 277. 278. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 278. 279. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 279. 280. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 280. 281. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 281. 282. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 282. 283. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 283. 284. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 284. 285. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 285. 286. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 286. 287. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 287.

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288.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 288. 289. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 289. 290. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 290. 291. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 291. 292. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 292. 293. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 293. 294. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 294. 295. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 295. 296. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 296. 297. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 297. 298. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 298.

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299.

The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 299. 300. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 300. 301. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 301. 302. The adidas Entities are without knowledge or information sufficient to form a

belief as to the truth of the allegations in paragraph 302. 303. The adidas Entities deny the allegations of paragraph 303, as they relate to the

adidas Entities. To the extent the allegations of paragraph 303 are directed to other entities, the adidas Entities are without knowledge or information sufficient to form a belief as to the truth of such allegations. 304. The allegations in paragraph 304 relating to constructive notice are legal

conclusions to which no responsive pleading is required; to the extent a response is required, the adidas Entities deny the allegations, as they relate to constructive notice of the adidas Entities. To the extent the allegations in paragraph 304 concerning constructive notice are directed to other entities, the adidas Entities are without knowledge or information sufficient to form a belief as to the truth of such allegations. The adidas Entities are without knowledge sufficient to form a belief as to the truth of the allegations regarding marking requirements. COUNT II 305. The adidas Entities deny the allegations of paragraph 305, as they relate to the

adidas Entities. To the extent the allegations of paragraph 305 are directed to other entities, the

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adidas Entities are without knowledge or information sufficient to form a belief as to the truth of such allegations. PRAYER FOR RELIEF These paragraphs set forth the statement of relief requested by Parallel Networks to which no response is required. The adidas Entities deny that Parallel Networks is entitled to any of the requested relief and deny any allegations. DEMAND FOR JURY TRIAL This paragraph sets forth Parallel Networks' request for a jury trial and all issues triable of right before a jury to which no response is required. AFFIRMATIVE DEFENSES Subject to the responses above, the adidas Entities allege and assert the following defenses in response to the allegations, undertaking the burden of proof only as to those defenses deemed affirmative defenses by law, regardless of how such defenses are denominated herein. In addition to the affirmative defenses described below, subject to their responses above, the adidas Entities specifically reserve all rights to allege additional affirmative defenses that become known through the course of discovery. 306. The claims of the `111 patent are invalid and/or unpatentable for failure to satisfy

one or more of the requirements of §§ 101, 102, 103, 112, 132, 251 of Title 35 of the United States Code. 307. laches. 308. § 288. Parallel Networks' request for relief is barred or otherwise limited by 35 U.S.C. Parallel Networks' claims are barred, in whole or in part, by the doctrine of

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309.

Parallel Networks cannot satisfy the requirements applicable to its request for

injunctive relief and has an adequate remedy at law. 310. Parallel Networks' alleged damages are limited because it has not satisfied the

requirements for obtaining damages under 35 U.S.C. § 287, and the limitations period further bars past damages claims. 311. The adidas Entities reserve all affirmative defenses under Rule 8(c) of the Federal

Rules of Civil Procedure, the Patent Laws of the United States, and any other defenses, at law or in equity, which may now exist or in the future may be available based on discovery and further factual investigation in this case. COUNTERCLAIMS adidas America, Inc., for its Counterclaims against Parallel Networks and upon information and belief, states and alleges as follows: THE PARTIES 1. Defendant/Counterclaim Plaintiff adidas America, Inc. ("adidas America"), is an

Oregon corporation with its principal place of business in Portland, Oregon. 2. On information and belief, plaintiff Parallel Networks, Inc. ("Parallel Networks"),

is a Texas limited liability company with a place of business located in Tyler, Texas. JURISDICTION AND VENUE 3. Subject to the adidas America's affirmative defenses and denials, the adidas

America alleges that this Court has jurisdiction over the subject matter of these Counterclaims under, without limitation, 28 U.S.C. §§ 1331, 1367, 1338(a), 2201, and 2202, and venue for these Counterclaims is proper in this district. 4. This Court has personal jurisdiction over Parallel Networks.

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FACTUAL BACKGROUND 5. In its Complaint, Parallel Networks asserts that adidas America has infringed U.S.

Patent No. 6,446,111 (the "`111 patent"). 6. The `111 patent is invalid, unpatentable, unenforceable, and/or has not been and is

not infringed by the adidas Entities, directly or indirectly. 7. Consequently, there is an actual case or controversy between the parties over the

non-infringement, invalidity, unpatentability, and/or unenforceability of the `111 patent. COUNT ONE Declaratory Judgment of Non-Infringement of U.S. Patent No. 6,446,111 8. adidas America restates and incorporates by reference its allegations in

paragraphs 1 through 7 of its Counterclaims. 9. An actual case or controversy exists between adidas America and Parallel

Networks whether the `111 patent is not infringed by the adidas Entities. 10. A judicial declaration is necessary and appropriate so that adidas America may

ascertain its rights regarding the `111 patent. 11. adidas America has not infringed and does not infringe, directly or indirectly, any

valid and enforceable claim of the `111 patent. COUNT TWO Declaratory Judgment of Invalidity of U.S. Patent No. 6,446, 111 12. adidas America restates and incorporates by reference its allegations in

paragraphs 1 through 7 of its Counterclaims. 13. An actual case or controversy exists between adidas America and Parallel

Networks as to whether the claims of the `111 patent are invalid and/or unpatentable.

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14.

A judicial declaration is necessary and appropriate so that adidas America may

ascertain its rights as to whether the claims of the `111 patent are invalid and/or unpatentable. 15. The claims of the `111 patent are invalid and unpatentable for failure to meet the

conditions of patentability and/or otherwise comply with one or more of 35 U.S.C. §§ 101, 102, 103, 112, 132, and 251. PRAYER FOR RELIEF WHEREFORE, adidas America prays for judgment as follows: i. A judgment dismissing with prejudice Parallel Networks' complaint against the

adidas Entities; ii. iii. A judgment in favor of adidas America on all of its Counterclaims; A declaration that the adidas Entities have not infringed, contributed to the

infringement of, or induced others to infringe, either directly or indirectly, any valid claims of the `111 patent; iv. v. A declaration that the claims of the `111 patent are invalid and unpatentable; An injunction against Parallel Networks and its affiliates, subsidiaries, assigns,

employees, agents, or anyone acting in privity or concert with Parallel Networks from charging infringement or instituting any legal action for infringement of the `111 patent against adidas America or anyone acting in privity with adidas America; vi. A judgment limiting or barring Parallel Networks' ability to enforce the `111

patent in equity; vii. Such other and further relief as this Court may deem just and proper.

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DEMAND FOR JURY TRIAL In accordance with Rule 38 of the Federal Rules of Civil Procedure and Local Rule CV38, adidas America respectfully demands a jury trial of all issues triable to a jury in this action. Dated: November 29, 2010 Respectfully submitted, By: /s/ C. Erik Hawes C. Erik Hawes State Bar No. 24042543 James Beebe State Bar No. 24038708 Shannon A. Lang State Bar No. 24070103 MORGAN, LEWIS & BOCKIUS LLP 1000 Louisiana Street, Suite 4000 Houston, TX 77002 Telephone No. [phone] Telecopier No. [phone] [e-mail] [e-mail] [e-mail] ATTORNEYS FOR DEFENDANTS/ COUNTERCLAIM PLAINTIFFS ADIDAS AMERICA, INC., AND ADIDAS INTERACTIVE, INC.

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CERTIFICATE OF SERVICE The undersigned hereby certifies that counsel of record who are deemed to have consented to electronic service are being served with a copy of the foregoing via the Court's CM/ECF system per Local Rule CV-5(a)(3) . Dated: November 29, 2010 By: /s/ C. Erik Hawes C. Erik Hawes

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