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

Filing 352

ANSWER to #1 Complaint,,,,,,,, COUNTERCLAIM against Parallel Networks, LLC by Nautica Apparel, Inc., Nautica Retail USA, Inc..(Hawes, Clay)

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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 DB1/66098758.1 § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § 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. § § § § § § § § § § § § § § § § ANSWER AND COUNTERCLAIMS OF DEFENDANTS NAUTICA APPAREL, INC., AND NAUTICA RETAIL USA, INC., IN RESPONSE TO PARALLEL NETWORKS, LLC'S ORIGINAL COMPLAINT FOR PATENT INFRINGEMENT Defendants Nautica Apparel, Inc., and Nautica Retail USA, Inc. (collectively, "the Nautica Entities"), answer Plaintiff Parallel Networks LLC's ("Parallel Networks") Original Complaint for Patent Infringement ("Complaint") as follows: PARTIES 1. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 1. 2. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 2. 3. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 3. 4. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 4. DB1/66098758.1 2 5. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 5. 6. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 6. 7. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 7. 8. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 8. 9. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 9. 10. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 10. 11. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 11. 12. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 12. 13. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 13. 14. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 14. 15. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 15. DB1/66098758.1 3 16. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 16. 17. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 17. 18. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 18. 19. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 19. 20. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 20. 21. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 21. 22. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 22. 23. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 23. 24. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 24. 25. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 25. 26. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 26. DB1/66098758.1 4 27. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 27. 28. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 28. 29. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 29. 30. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 30. 31. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 31. 32. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 32. 33. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 33. 34. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 34. 35. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 35. 36. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 36. 37. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 37. DB1/66098758.1 5 38. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 38. 39. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 39. 40. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 40. 41. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 41. 42. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 42. 43. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 43. 44. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 44. 45. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 45. 46. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 46. 47. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 47. 48. 49. The Nautica Entities admit the allegations in paragraph 48. The Nautica Entities admit the allegations in paragraph 49. DB1/66098758.1 6 50. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 50. 51. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 51. 52. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 52. 53. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 53. 54. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 54. 55. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 55. 56. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 56. 57. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 57. 58. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 58. 59. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 59. 60. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 60. DB1/66098758.1 7 61. The Nautica 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 Nautica Entities admit that this Court has subject matter jurisdiction over Parallel Networks' claims. The Nautica Entities admit that this Court has personal jurisdiction over them in this particular action. However, the Nautica 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 Nautica Entities. To the extent the allegations of paragraph 62 are directed to other entities, the Nautica 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 Nautica 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 Nautica Entities expressly reserve their rights under 28 U.S.C. § 1404. The Nautica Entities admit that this Court has personal jurisdiction over them in this particular action. However, the Nautica 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 Nautica Entities. To the extent the allegations of paragraph 63 are directed to other entities, the Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of such allegations. COUNT I 64. 65. The Nautica Entities admit the allegations in paragraph 64. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 65. DB1/66098758.1 8 66. With respect to the allegations set forth in paragraph 66, the Nautica 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 Nautica 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. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 67. 68. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 68. 69. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 69. 70. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 70. 71. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 71. 72. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 72. 73. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 73. 74. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 74. DB1/66098758.1 9 75. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 75. 76. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 76. 77. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 77. 78. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 78. 79. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 79. 80. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 80. 81. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 81. 82. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 82. 83. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 83. 84. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 84. 85. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 85. DB1/66098758.1 10 86. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 86. 87. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 87. 88. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 88. 89. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 89. 90. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 90. 91. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 91. 92. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 92. 93. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 93. 94. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 94. 95. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 95. 96. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 96. DB1/66098758.1 11 97. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 97. 98. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 98. 99. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 99. 100. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 100. 101. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 101. 102. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 102. 103. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 103. 104. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 104. 105. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 105. 106. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 106. 107. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 107. DB1/66098758.1 12 108. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 108. 109. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 109. 110. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 110. 111. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 111. 112. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 112. 113. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 113. 114. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 114. 115. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 115. 116. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 116. 117. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 117. 118. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 118. DB1/66098758.1 13 119. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 119. 120. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 120. 121. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 121. 122. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 122. 123. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 123. 124. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 124. 125. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 125. 126. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 126. 127. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 127. 128. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 128. 129. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 129. DB1/66098758.1 14 130. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 130. 131. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 131. 132. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 132. 133. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 133. 134. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 134. 135. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 135. 136. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 136. 137. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 137. 138. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 138. 139. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 139. 140. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 140. DB1/66098758.1 15 141. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 141. 142. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 142. 143. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 143. 144. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 144. 145. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 145. 146. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 146. 147. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 147. 148. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 148. 149. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 149. 150. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 150. 151. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 151. DB1/66098758.1 16 152. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 152. 153. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 153. 154. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 154. 155. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 155. 156. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 156. 157. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 157. 158. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 158. 159. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 159. 160. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 160. 161. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 161. 162. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 162. DB1/66098758.1 17 163. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 163. 164. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 164. 165. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 165. 166. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 166. 167. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 167. 168. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 168. 169. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 169. 170. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 170. 171. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 171. 172. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 172. 173. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 173. DB1/66098758.1 18 174. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 174. 175. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 175. 176. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 176. 177. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 177. 178. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 178. 179. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 179. 180. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 180. 181. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 181. 182. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 182. 183. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 183. 184. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 184. DB1/66098758.1 19 185. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 185. 186. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 186. 187. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 187. 188. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 188. 189. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 189. 190. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 190. 191. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 191. 192. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 192. 193. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 193. 194. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 194. 195. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 195. DB1/66098758.1 20 196. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 196. 197. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 197. 198. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 198. 199. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 199. 200. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 200. 201. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 201. 202. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 202. 203. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 203. 204. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 204. 205. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 205. 206. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 206. DB1/66098758.1 21 207. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 207. 208. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 208. 209. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 209. 210. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 210. 211. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 211. 212. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 212. 213. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 213. 214. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 214. 215. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 215. 216. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 216. 217. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 217. DB1/66098758.1 22 218. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 218. 219. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 219. 220. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 220. 221. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 221. 222. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 222. 223. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 223. 224. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 224. 225. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 225. 226. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 226. 227. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 227. 228. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 228. DB1/66098758.1 23 229. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 229. 230. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 230. 231. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 231. 232. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 232. 233. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 233. 234. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 234. 235. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 235. 236. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 236. 237. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 237. 238. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 238. 239. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 239. DB1/66098758.1 24 240. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 240. 241. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 241. 242. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 242. 243. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 243. 244. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 244. 245. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 245. 246. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 246. 247. 248. 249. 250. 251. 252. 253. 254. The Nautica Entities deny the allegations in paragraph 247. The Nautica Entities deny the allegations in paragraph 248. The Nautica Entities deny the allegations in paragraph 249. The Nautica Entities deny the allegations in paragraph 250. The Nautica Entities deny the allegations in paragraph 251. The Nautica Entities deny the allegations in paragraph 252. The Nautica Entities deny the allegations in paragraph 253. The Nautica Entities deny the allegations in paragraph 254. DB1/66098758.1 25 255. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 255. 256. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 256. 257. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 257. 258. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 258. 259. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 259. 260. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 260. 261. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 261. 262. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 262. 263. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 263. 264. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 264. 265. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 265. DB1/66098758.1 26 266. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 266. 267. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 267. 268. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 268. 269. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 269. 270. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 270. 271. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 271. 272. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 272. 273. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 273. 274. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 274. 275. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 275. 276. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 276. DB1/66098758.1 27 277. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 277. 278. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 278. 279. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 279. 280. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 280. 281. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 281. 282. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 282. 283. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 283. 284. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 284. 285. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 285. 286. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 286. 287. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 287. DB1/66098758.1 28 288. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 288. 289. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 289. 290. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 290. 291. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 291. 292. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 292. 293. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 293. 294. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 294. 295. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 295. 296. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 296. 297. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 297. 298. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 298. DB1/66098758.1 29 299. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 299. 300. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 300. 301. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 301. 302. The Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 302. 303. The Nautica Entities deny the allegations of paragraph 303, as they relate to the Nautica Entities. To the extent the allegations of paragraph 303 are directed to other entities, the Nautica 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 Nautica Entities deny the allegations, as they relate to constructive notice of the Nautica Entities. To the extent the allegations in paragraph 304 concerning constructive notice are directed to other entities, the Nautica Entities are without knowledge or information sufficient to form a belief as to the truth of such allegations. The Nautica Entitles are without knowledge sufficient to form a belief as to the truth of the allegations regarding marking requirements. COUNT II 305. The Nautica Entities deny the allegations of paragraph 305, as they relate to the Nautica Entities. To the extent the allegations of paragraph 305 are directed to other entities, the DB1/66098758.1 30 Nautica 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 Nautica 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 Nautica 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 Nautica 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 DB1/66098758.1 31 309. 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 Nautica 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 Nautical Retail USA, Inc. ("Nautica"), for its Counterclaims against Parallel Networks and upon information and belief, states and alleges as follows: THE PARTIES 1. Defendant/Counterclaim Plaintiff Nautica is a Delaware corporation with its principal place of business in New York, New York. 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 its affirmative defenses and denials, Nautica 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. DB1/66098758.1 32 FACTUAL BACKGROUND 5. In its Complaint, Parallel Networks asserts that Nautica 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 Nautica, 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. Nautica restates and incorporates by reference its allegations in paragraphs 1 through 7 of its Counterclaims. 9. An actual case or controversy exists between Nautica and Parallel Networks whether the `111 patent is not infringed by Nautica. 10. A judicial declaration is necessary and appropriate so that Nautica may ascertain its rights regarding the `111 patent. 11. Nautica 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. Nautica restates and incorporates by reference its allegations in paragraphs 1 through 7 of its Counterclaims. 13. An actual case or controversy exists between Nautica and Parallel Networks as to whether the claims of the `111 patent are invalid and/or unpatentable. DB1/66098758.1 33 14. A judicial declaration is necessary and appropriate so that Nautica 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, the Nautica Entities pray for judgment as follows: i. A judgment dismissing with prejudice Parallel Networks' complaint against the Nautica Entities; ii. iii. A judgment in favor of Nautica on all of its Counterclaims; A declaration that Nautica has 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 the Nautica Entities or anyone acting in privity with the Nautica Entites; 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. DB1/66098758.1 34 DEMAND FOR JURY TRIAL In accordance with Rule 38 of the Federal Rules of Civil Procedure and Local Rule CV38, the Nautica Entities respectfully demand 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. (713) 890-5000 Telecopier No. (713) 890-5001 ehawes@morganlewis.com jbeebe@morganlewis.com slang@morganlewis.com ATTORNEYS FOR DEFENDANT NAUTICA APPAREL, INC., AND DEFENDANT/COUNTERCLAIM PLAINTIFF NAUTICA RETAIL USA, INC. DB1/66098758.1 35 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 DB1/66098758.1

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