Free Answer to to CounterClaim - District Court of California - California

Case 5:07-cv-05248-JW

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Thomas F. Fitzpatrick [email protected] GOODWIN PROCTER LLP 135 Commonwealth Drive Menlo Park, CA 94025 Tel.: 650-752-3144 Fax: 650-853-1038 John C. Englander (pro hac vice) [email protected] James C. Rehnquist (pro hac vice) [email protected] Michael G. Strapp (pro hac vice) [email protected] GOODWIN PROCTER LLP 53 State Street Boston, Massachusetts 02109 Tel.: 617.570.1000 Fax: 617.523.1231 Attorneys for Applied Materials, Inc. UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION APPLIED MATERIALS, INC., Case No. CV 07-05248 JW (PVT)

16 Plaintiff, 17 v. 18 19 20 21 Defendants. 22 23 24 25 26 27 28 Plaintiff Applied Materials, Inc., ("Applied") answers the Counterclaims of Defendants Advanced Micro-Fabrication Equipment (Shanghai) Co., Ltd. ("AMEC China") and Advanced Micro-Fabrication Equipment Inc., Asia ("AMEC Asia") (collectively "Defendants"), and in response to the corresponding numbered paragraphs of Defendants' Counterclaims states as 1
PLAINTIFF'S ANSWER TO COUNTERCLAIMS; CASE NO. CV 07-05248 JW (PVT)
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ADVANCED MICRO-FABRICATION EQUIPMENT (SHANGHAI) CO., LTD., ADVANCED MICRO-FABRICATION EQUIPMENT INC., ASIA, ADVANCED MICRO-FABRICATION EQUIPMENT INC.

PLAINTIFF'S ANSWER TO THE COUNTERCLAIMS OF DEFENDANTS ADVANCED MICRO-FABRICATION EQUIPMENT (SHANGHAI) CO., LTD., AND ADVANCED MICROFABRICATION EQUIPMENT INC., ASIA

JURY TRIAL DEMANDED

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follows (Applied has incorporated the headings as they appear in Defendants' Counterclaims for the convenience of the Court): INTRODUCTION 1. Paragraph 1 of Defendants' Counterclaims sets forth introductory material to which no response is required. To the extent a response is required, Applied states that certain of its former employees, now employed by defendants, signed employment agreements with Applied. First Amended Complaint ("FAC") at ¶ 9. Applied further states that these employment agreements state that all inventions conceived, made or reduced to practice by these employees while employed at Applied would be the exclusive property of Applied. Id. The agreements also require that any such inventions be promptly disclosed and assigned to Applied. Id. at ¶ 27.

11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. Applied admits, on information and belief, that Counterclaimant AMEC China is a cooperative joint venture between AMEC Asia and Shanghai Ventures Capital Co., Ltd., organized under the laws of the People's Republic of China, having its principal place of business in Shanghai. Applied admits, on information and belief, that Counterclaimant AMEC Asia is a holding company incorporated in the Cayman Islands, with its principal place of business in Shanghai, China. 3. Applied admits that it is a Delaware corporation, with its principal place of business in Santa Clara, California. JURISDICTION AND VENUE 4. Applied admits that this Court has subject matter jurisdiction over this action under 28 2
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Additionally, the agreements state that any inventions the employees described in a patent application or disclosed to a third party within one year after leaving Applied would be presumed to have been conceived or made during their employment with Applied and would belong to Applied. Id. Applied denies the remaining averments contained in paragraph 1 of Defendants' Counterclaims. PARTIES

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U.S.C. § 1332(a)(2). 5. Applied admits that venue is proper in this district under 28 U.S.C. § 1391(a). BACKGROUND 6. Applied states that certain of its former employees, now employed by defendants, signed employment agreements with Applied. FAC at ¶ 9. Applied further states that these employment agreements state that all inventions conceived, made or reduced to practice by these employees while employed at Applied would be the exclusive property of Applied. Id. The agreements also require that any such inventions be promptly disclosed and assigned to Applied. Id. at ¶ 27. Additionally, the agreements state that any inventions the employees described in a patent application or disclosed to a third party within one year after leaving Applied would be presumed to have been conceived or made during their employment with Applied and would belong to Applied. Id. Applied denies the remaining averments in paragraph 6 of Defendants' Counterclaims. 7. Applied states that the FAC speaks for itself, and thus no response to the averments in sentences one through four of paragraph 7 is required. Applied denies that it argued in its Opposition to AMEC China and AMEC Asia's Motions to Dismiss that its claims for conversion and intentional interference with contractual relationships do not depend on whether the information at issue is a trade secret, and further states that Applied's Opposition to AMEC China and AMEC Asia's Motions to Dismiss speaks for itself. 8. Applied denies the averments in paragraph 8 of Defendants' Counterclaims. COUNT I (Declaratory Relief) 9. Applied incorporates its answers to paragraphs 1-8 above as if fully set forth herein. 10. Applied denies the averments in paragraph 10 of Defendants' Counterclaims. 11. Applied denies the averments in paragraph 11 of Defendants' Counterclaims. 12. Applied denies the averments in paragraph 12 of Defendants' Counterclaims. 13. Applied denies the averments in paragraph 13 of Defendants' Counterclaims.

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COUNT II (Violation of Cal. Bus. & Prof. Code § 17200 et. seq.) 14. Applied incorporates its answers to paragraphs 1-13 above as if fully set forth herein. 15. Applied denies the averments in paragraph 15 of Defendants' Counterclaims. 16. Applied denies the averments in paragraph 16 of Defendants' Counterclaims. 17. Applied denies the averments in paragraph 17 of Defendants' Counterclaims. PRAYER FOR RELIEF Applied denies that Defendants are entitled to any of the relief requested in their prayers for relief. SECOND DEFENSE The Counterclaims fail to state a claim upon which relief can be granted. THIRD DEFENSE The Counterclaims are barred in whole or in part by the applicable statutes of limitations. FOURTH DEFENSE The Counterclaims are barred in whole or in part by the doctrine of laches. FIFTH DEFENSE The Counterclaims are barred in whole or in part by the doctrines of waiver, estoppel,

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consent, and ratification. SIXTH DEFENSE The Counterclaims are barred in whole or in part by the doctrine of unclean hands. SEVENTH DEFENSE Defendants are not entitled to injunctive relief because they have an adequate remedy at law.

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EIGHTH DEFENSE This Court lacks subject matter jurisdiction over the Counterclaims because there is no case or controversy. NINTH DEFENSE

5 6 7 8 9 10 11 12 13 14 Dated: April 10, 2008 15 Applied Materials, Inc. 16 By its attorneys, 17 18 19 20 21 22 23 24 25 26 27 28 5
PLAINTIFF'S ANSWER TO COUNTERCLAIMS; CASE NO. CV 07-05248 JW (PVT)
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The Defendants lack standing to pursue their Counterclaims. TENTH DEFENSE The Counterclaims are not ripe for adjudication. ELEVENTH DEFENSE The Counterclaims are improper because they serve no useful purpose. TWELFTH DEFENSE Defendants' own acts or omissions caused or contributed to Defendants' alleged injury. Respectfully submitted,

/s/ Thomas F. Fitzpatrick Thomas F. Fitzpatrick [email protected] GOODWIN PROCTER LLP 135 Commonwealth Drive Menlo Park, CA 94025 Tel.: 650-752-3144 Fax: 650-853-1038 John C. Englander James C. Rehnquist Michael G. Strapp GOODWIN PROCTER LLP 53 State Street Boston, Massachusetts 02109 Tel.: 617.570.1000 Fax: 617.523.1231 [email protected] [email protected] [email protected]