Streetspace, Inc v. Google, Inc. et al

Filing 52

RESPONSE in Opposition re 49 MOTION to Dismiss (correcting missing signature) filed by Streetspace, Inc. (Attachments: # 1 Declaration Trevor Coddington, # 2 Exhibit A, # 3 Proof of Service)(Coddington, Trevor) (kaj).

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EXHIBIT A Case5:09-cv-01531-RS Document43 1 2 3 4 5 6 Filed10/05/09 Page1 of 15 MATTHEW D. POWERS (Bar No. 104795) matthew.powers@weil.com EDWARD R. REINES (Bar No. 135960) edward.reines@weil.com SONAL N. MEHTA (Bar No. 222086) sonal.mehta@weil.com WEIL, GOTSHAL & MANGES LLP Silicon Valley Office 201 Redwood Shores Parkway Redwood Shores, CA 94065 Telephone: (650) 802-3000 Facsimile: (650) 802-3100 7 Attorneys for Apple, Inc. 8 9 UNITED STATES DISTRICT COURT 10 NORTHERN DISTRICT OF CALIFORNIA 11 SAN JOSE DIVISION 12 13 ELAN MICROELECTRONICS CORPORATION, 16 APPLE, INC.’S SECOND AMENDED ANSWER, AFFIRMATIVE DEFENSES, AND COUNTERCLAIMS TO ELAN MICROELECTRONICS CORPORATION’S COMPLAINT FOR PATENT INFRINGEMENT Plaintiff and Counterclaim Defendant, 14 15 Case No. C-09-01531 RS v. APPLE, INC., Hon. Richard Seeborg 17 Defendant and Counterclaim Plaintiff. 18 Demand for Jury Trial 19 20 Defendant Apple, Inc. (“Apple”) by and through its undersigned counsel, hereby 21 responds to Plaintiff Elan Microelectronics Corporation’s (“Elan”) Complaint for Patent 22 Infringement (“Complaint”) as follows: 23 I. 24 ANSWER 25 PARTIES 26 1. Apple is without knowledge or information sufficient to form a belief as to 27 the truth of the statements in Paragraph 1 of the Complaint, and, on that basis, denies those 28 allegations. APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS Case5:09-cv-01531-RS Document43 1 2. Filed10/05/09 Page2 of 15 Apple admits that U.S. Patent No. 5,825,352 (“the ’352 patent”) states on 2 its face that it is entitled “Multiple Finger Contact Sending Method for Emulating Mouse Buttons 3 and Mouse Operations on a Touch Sensor Pad.” Apple is without knowledge or information 4 sufficient to form a belief as to the truth of the allegations concerning Elan’s purported ownership 5 of all right and title to the ’352 patent and, therefore, denies those allegations. Except as so 6 expressly admitted herein, Apple denies the allegations in Paragraph 2 of the Complaint. 7 3. Apple admits that U.S. Patent No. 7,274,353 (“the ’353 patent”) states on 8 its face that it is entitled “Capacitive Touchpad Integrated with Key and Handwriting Functions.” 9 Apple is without knowledge or information sufficient to form a belief as to the truth of the 10 allegations concerning Elan’s purported ownership of all right and title to the ’353 patent and, 11 therefore, denies those allegations. Except as so expressly admitted herein, Apple denies the 12 allegations in Paragraph 3 of the Complaint. 13 4. 14 15 Apple admits the allegations in Paragraph 4 of the Complaint. JURISDICTION AND VENUE 5. Apple admits that Elan’s Complaint purports to be an action that arises 16 under the patent laws of the United States, 35 U.S.C. § 1 et seq., but denies any wrongdoing or 17 liability on its own behalf for the reasons stated herein. Apple admits that this Court has subject 18 matter jurisdiction under 28 U.S.C. §§ 1331 and 1338(a). Except as so expressly admitted herein, 19 Apple denies the allegations in Paragraph 5 of the Complaint. 20 6. Apple admits that it resides in this district and has a regular place of 21 business in this district. Apple denies that it has committed any acts of infringement within this 22 district and specifically denies any wrongdoing, infringement, inducement of infringement or 23 contribution to infringement. Apple admits that venue is proper as to Apple in this District 24 pursuant to 28 U.S.C. §§ 1391(b) and 1400(b). Except as so expressly admitted herein, Apple 25 denies the allegations in Paragraph 6 of the Complaint. 26 THE DISPUTE 27 7. Apple denies the allegations in Paragraph 7 of the Complaint. 28 8. Apple denies the allegations in Paragraph 8 of the Complaint. APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS 2 Case5:09-cv-01531-RS Document43 1 9. Filed10/05/09 Page3 of 15 Apple admits that it designs, markets and sells computer and consumer 2 electronics products including touch-sensitive input devices. Apple admits that it does or has 3 designed, marketed, and sold the Apple iBook, PowerBook and MacBook portable computers, 4 iPhone mobile phones and iPod Touch digital medial player devices, which do or have included 5 touch-sensitive input devices. 6 allegations in Paragraph 9 of the Complaint. 7 8 9 Except as so expressly admitted herein, Apple denies the FIRST CLAIM 10. Apple refers to and incorporates herein its answers as provided in Paragraphs 1-9 above. 10 11. Apple denies the allegations in Paragraph 11 of the Complaint. 11 12. Apple denies the allegations in Paragraph 12 of the Complaint. 12 13. Apple denies the allegations in Paragraph 13 of the Complaint. 13 14. Apple denies the allegations in Paragraph 14 of the Complaint. 14 15. Apple denies the allegations in Paragraph 15 of the Complaint. 15 16 17 SECOND CLAIM 16. Apple refers to and incorporates herein its answers as provided in Paragraphs 1-15 above. 18 17. Apple denies the allegations in Paragraph 17 of the Complaint. 19 18. Apple denies the allegations in Paragraph 18 of the Complaint. 20 19. Apple denies the allegations in Paragraph 19 of the Complaint. 21 20. Apple denies the allegations in Paragraph 20 of the Complaint. 22 21. Apple denies the allegations in Paragraph 21 of the Complaint. 23 24 PRAYER FOR RELIEF 22. Apple denies that Elan is entitled to any of the relief sought in its prayer for 25 relief. Apple has not directly or indirectly infringed the ’352 and ’353 patents, either literally or 26 by the doctrine of equivalents, willfully or otherwise. Elan is not entitled to recover statutory 27 damages, compensatory damages, enhanced damages, an accounting, injunctive relief, costs, fees, 28 APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS 3 Case5:09-cv-01531-RS Document43 Filed10/05/09 Page4 of 15 1 interest, or any other type of recovery from Apple. Elan’s prayer should, therefore, be denied in 2 its entirety and with prejudice, and Elan should take nothing. 3 DEMAND FOR JURY TRIAL 4 23. Apple does not object to a trial by jury on all issues so triable. 5 II. 6 DEFENSES 7 As and for its affirmative defenses, Apple alleges as follows: 8 FIRST DEFENSE – NON-INFRINGEMENT 9 24. Apple does not infringe and has not directly or indirectly infringed any 10 claims of the ’352 and ’353 patents, either literally or under the doctrine of equivalents, willfully 11 or otherwise. 12 SECOND DEFENSE – INVALIDITY 13 25. Elan’s alleged claims for infringement of the ’352 and ’353 patents are 14 barred because each and every claim of the ’352 and ’353 patents is invalid for failure to comply 15 with the requirements of Title 35 of the United States Code, including but not limited to 16 Sections 101, 102, 103, and/or 112. 17 THIRD DEFENSE – LACHES 18 19 26. Elan’s claims for relief are barred in whole or in part by the doctrine of laches. 20 FOURTH DEFENSE – ESTOPPEL 21 27. 22 equitable estoppel. 23 24 25 Elan’s claims for relief are barred in whole or in part by the doctrine of FIFTH DEFENSE – STATUTE OF LIMITATIONS 28. To the extent Elan seeks damages for alleged infringement more than six years prior to filing of this action, the relief sought by Elan is barred by 35 U.S.C. § 286. 26 27 28 APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS 4 Case5:09-cv-01531-RS Document43 1 Filed10/05/09 Page5 of 15 SIXTH DEFENSE – NOTICE 2 29. To the extent Elan seeks damages for alleged infringement prior to its 3 giving actual or constructive notice of the ’352 and ’353 patents to Apple, the relief sought by 4 Elan is barred by 35 U.S.C. § 287. 5 SEVENTH DEFENSE – NO INJUNCTIVE RELIEF 6 30. To the extent Elan seeks injunctive relief for alleged infringement, the 7 relief sought by Elan is unavailable because any alleged injury to Elan is not immediate or 8 irreparable and because Elan has an adequate remedy at law for any alleged injury. 9 III. 10 COUNTERCLAIMS 11 12 Counterclaim-Plaintiff Apple counterclaims against Counterclaim-Defendant Elan as follows: 13 14 15 16 PARTIES 31. Apple is a corporation organized under the laws of the State of California and having a principal place of business at 1 Infinite Loop, Cupertino, CA 95014. 32. Elan alleges that it is a corporation organized under the laws of Taiwan 17 R.O.C. with a principal place of business at No. 12, Innovation 1st Road, Science Based 18 Industrial Park, Hsinchu Taiwan R.O.C. 19 20 JURISDICTION AND VENUE 33. These counterclaims arise under Title 35 of the United States Code. The 21 Court has subject matter jurisdiction over these counterclaims pursuant to 28 U.S.C. §§ 1331, 22 1338(a), 2201, and 2202. 23 34. Elan is subject to personal jurisdiction in this district arising out of its 24 systematic and continuous contacts with this district and its purposeful acts and/or transactions 25 directed toward this district. Such contacts include without limitation Elan’s past and ongoing 26 infringing conduct in this district, Elan’s bringing of this lawsuit in this district, and, on 27 information and belief, Elan’s presence and conduct of business in this district through ELAN 28 Information Technology Group, operating in Cupertino, California 95015. APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS 5 Case5:09-cv-01531-RS Document43 1 35. 2 3 Filed10/05/09 Page6 of 15 Venue is proper in this judicial district under 28 U.S.C. § 1391. THE DISPUTE 36. Elan designs, markets, manufactures and sells touch-sensitive input devices 4 or touchpads and related components, including but not limited to the Smart-Pad product. These 5 products are incorporated into products that are sold in the United States and are used by 6 consumers in the United States, including for example, as part of laptop computers. 7 37. Laptop computers including Elan touchpads and related components are 8 available for purchase throughout the United States, including in this judicial district. These 9 products are available for purchase in this judicial district from retailers, distributors and middle- 10 men, including for example, at retail outlets (e.g., Best Buy) and on the internet (e.g., 11 www.amazon.com). 12 38. Upon information and belief, Elan touchpads and related components are 13 used by consumers and users of the laptop computers including such touchpads and components 14 throughout the United States, including in this judicial district. 15 39. Upon information and belief, Elan markets, sells and supports its touch- 16 sensitive input devices or touchpads and related components in the United States directly and 17 through its agent Elan Information Technology Group (“EITG”). EITG is Elan’s wholly-owned 18 subsidiary, with its principle place of business in this judicial district. See Order Denying 19 Defendant Elan Microelectronics’ Motion to Dismiss in Agilent Technologies, Inc. v. Elan 20 Microelectronics Corp., Case No. 04-5385-JW (N.D. Cal. Nov. 29, 2005). Elan maintains a 21 “worldwide network of sales channels and technical support,” including in North America. Id. 22 EITG is the North American hub for that network. Id. Elan’s co-founder, chief-engineer and 23 head of R&D served as President and registered agent of EITG. Id. EITG directly purchases 24 products from Elan and turns around to sell them to California companies. Id. Elan has caused 25 its products to be imported into the United States, specifically to the Northern District of 26 California. Id. Elan maintains a continuous business relationship with the United States through 27 its EITG office. Id. Elan directs its customers in North America to contact EITG for products 28 and services. Id. APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS 6 Case5:09-cv-01531-RS Document43 Filed10/05/09 Page7 of 15 1 FIRST COUNTERCLAIM – DECLARATORY JUDGMENT 2 ’352 PATENT 3 4 40. Apple incorporates herein by reference the allegations of paragraphs 1 - 39 of this Answer, Affirmative Defenses and Counterclaims (“Answer”). 5 41. Apple counterclaims against Elan pursuant to the patent laws of the United 6 States, Title 35 of the United States Code, and the Declaratory Judgments Act, 28 U.S.C. §§ 2201 7 and 2202. 8 9 10 42. In its Complaint, Elan alleges that Apple is now and has been directly and/or indirectly infringing the ’352 patent by the sale of at least its iBook, PowerBook, MacBook, iPhone and iPod Touch products. 11 43. An actual controversy exists between Elan and Apple by virtue of the 12 allegations of Elan’s Complaint and Apple’s Answer as to the validity and infringement of the 13 ’352 patent. 14 44. 15 through 30 above. 16 45. 17 The ’352 patent is invalid and not infringed, as set forth in paragraphs 24 Apple is entitled to judgment that the ’352 patent is invalid and not infringed. 18 SECOND COUNTERCLAIM – DECLARATORY JUDGMENT 19 ’353 PATENT 20 21 46. Apple incorporates herein by reference the allegations of paragraphs 1 - 45 of this Answer. 22 47. Apple counterclaims against Elan pursuant to the patent laws of the United 23 States, Title 35 of the United States Code, and the Declaratory Judgments Act, 28 U.S.C. §§ 2201 24 and 2202. 25 26 48. In its Complaint, Elan alleges that Apple is now and has been directly and/or indirectly infringing the ’353 patent by the sale of its iPhone and iPod Touch products. 27 28 APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS 7 Case5:09-cv-01531-RS Document43 1 49. Filed10/05/09 Page8 of 15 An actual controversy exists between Elan and Apple by virtue of the 2 allegations of Elan’s Complaint and Apple’s Answer as to the validity and infringement of the 3 ’353 patent. 4 50. 5 through 30 above. 6 51. 7 The ’353 patent is invalid and not infringed, as set forth in paragraphs 24 Apple is entitled to judgment that the ’353 patent is invalid and not infringed. 8 THIRD COUNTERCLAIM – PATENT INFRINGEMENT 9 ’218 PATENT 10 11 52. Apple incorporates herein by reference the allegations of paragraphs 1 - 51 of this Answer. 12 53. Apple is the owner of the entire right, title and interest in and to U.S. Patent 13 No. 5,764,218 (“the ’218 patent”) entitled “Method And Apparatus For Contacting A Touch- 14 Sensitive Cursor-Controlling Input Device To Generate Button Values,” which was duly and 15 legally issued on June 9, 1998 in the name of inventors Mark A. Della Bona, Jonathan Dorfman 16 and Jay F. Hamlin. A copy of the ’218 patent is attached as Exhibit A hereto. 17 54. The ‘218 patent claims methods and apparatuses for a touch-sensitive 18 cursor-controlling input device that detects contact intervals when the user contacts the touch- 19 sensitive input device, detects gap intervals between subsequent contact intervals, and moves the 20 cursor on the display screen and enables an operator to perform with a single touch-sensitive 21 input device numerous control operations, such as cursor manipulation, click, multi-click, drag, 22 click-and-drag, and multi-click-and-drag operations based on the duration of the contact and gap 23 intervals. 24 55. Upon information and belief, Elan’s touch-sensitive input devices or 25 touchpads and related components employ the methods and/or apparatuses claimed in the ‘218 26 patent, including but not limited to the Smart-Pad product, employ the methods and/or 27 apparatuses claimed in the ‘218 patent by detecting contact intervals for touches on the touchpad, 28 detecting gap intervals between such contact intervals, and based on the duration of those APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS 8 Case5:09-cv-01531-RS Document43 Filed10/05/09 Page9 of 15 1 intervals, distinguishing between three or more gestures (e.g., “vertical scroll,” “tapping,” 2 “magnifier”) and reporting the gesture that has been identified to the host device (e.g., laptop 3 computer). In addition, driver software for Elan’s touch-sensitive input devices such as the 4 Smart-Pad allows a user to enable one-finger, two-finger, and three-finger tapping and to select 5 which laptop control operations correlate to different gestures. 6 56. Laptop computers employing Elan’s touch-sensitive input devices or 7 touchpads and related components employing the methods and/or apparatuses claimed in the ‘218 8 patent, including but not limited to the Smart-Pad product, are imported into, offered for sale, sold 9 and used in the United States. 10 57. Upon information and belief, Elan has been and is currently directly 11 infringing, in violation of 35 U.S.C. § 271, the ’218 patent through its use, importation, offer for 12 sale and/or sale of touch-sensitive input devices or touchpads and related components employing 13 the methods and/or apparatuses claimed in the ‘218 patent, including but not limited to the Smart- 14 Pad product, in the United States, including through its agent EITG. 15 16 17 58. Elan has had actual knowledge of the ‘218 patent since at least July 1, 59. Upon information and belief, Elan has been and is currently indirectly 2009. 18 infringing, in violation of 35 U.S.C. § 271, the ’218 patent. Upon information and belief, the 19 ‘218 patent is directly infringed by, without limitation, manufacturers and others in the 20 distribution channel of laptop computers, using, selling, offering for sale and/or importing in the 21 United States, Elan’s touch-sensitive input devices or touchpads employing the methods and 22 apparatuses claimed in the ‘218 patent through their processing of gestures, including but not 23 limited to the Smart-Pad product. Upon information and belief, Elan induces that infringement 24 through its intentional marketing, sale and/or support, including technical support, of such devices 25 in the United States, including through EITG, and through the intentional design, marketing, 26 manufacture, sale and/or support, including technical support, of such devices abroad to induce 27 direct infringement in the United States. 28 includes, without limitation, active encouragement of the use, sale, offer for sale and/or Upon information and belief, Elan’s inducement APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS 9 Case5:09-cv-01531-RS Document43 Filed10/05/09 Page10 of 15 1 importation in the United States, of such devices to enable gestures that infringe the ‘218 patent 2 on such devices, including through the promotion and provision of software drivers and 3 marketing literature that induces direct infringement. Upon information and belief, Elan has 4 known or should have known that these actions would cause direct infringement of the ‘218 5 patent and did so with specific intent to encourage direct infringement. 6 60. Apple has suffered, and will continue to suffer, irreparable injury as a 7 result of Elan’s infringement. Pursuant to 35 U.S.C. §§ 283 and 284, Apple is entitled to 8 damages for infringement and to a permanent injunction against further infringement. 9 10 61. This case is exceptional, and therefore, Apple is entitled to attorneys’ fees pursuant to 35 U.S.C. § 285. 11 FOURTH COUNTERCLAIM – PATENT INFRINGEMENT 12 ’659 PATENT 13 14 15 62. Apple incorporates herein by reference the allegations of paragraphs 1 - 61 of this Answer. 63. Apple is the owner of the entire right, title and interest in and to U.S. Patent 16 No. 7,495,659 (“the ’659 patent”) entitled “Touch Pad For Handheld Device,” which was duly 17 and legally issued on February 24, 2009 in the name of inventors Greg Marriott, Guy Bar-Nahum, 18 and Steven Bollinger. A copy of the ’659 patent is attached as Exhibit B hereto. 19 64. The ‘659 patent claims methods and apparatuses for a touchpad system that 20 maps the touchpad into native sensor coordinates and produces native values of the native sensor 21 coordinates when events occur on the touchpad. The system further includes filtering the native 22 values of the native sensor coordinates based on the type of events that occur on the touchpad. 23 The system additionally includes generating a control signal based on the native values of the 24 native sensor coordinates when a desired event occurs on the touch pad. 25 65. Upon information and belief, Elan’s touch-sensitive input devices or 26 touchpads and related components employ the methods and/or apparatuses claimed in the ‘659 27 patent, including but not limited to the Smart-Pad product, employ the methods and/or 28 apparatuses claimed in the ‘659 patent by including a touchpad and controller that defines a APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS 10 Case5:09-cv-01531-RS Document43 Filed10/05/09 Page11 of 15 1 logical device unit associated with the surface of a touchpad, receives native values associated 2 with native sensor coordinates based on touches to the touchpad, filters those values, adjusts the 3 native values to a new value associated with the logical device unit, and reports the new, filtered 4 values to the host processor on the laptop such that the amount of data sent based on values 5 associated with the logical device unit is less than the native values associated with sensor 6 coordinates on the touchpad. 7 66. Laptop computers employing Elan’s touch-sensitive input devices or 8 touchpads and related components employing the methods and/or apparatuses claimed in the ‘218 9 patent, including but not limited to the Smart-Pad product, are imported into, offered for sale, sold 10 and used in the United States. 11 67. Upon information and belief, Elan has been and is currently directly 12 infringing, in violation of 35 U.S.C. § 271, the ’659 patent through its use, importation, offer for 13 sale and/or sale of touch-sensitive input devices or touchpads employing the methods and/or 14 apparatuses claimed in the ‘659 patent, including but not limited to the Smart-Pad product, in the 15 United States, including through its agent EITG. 16 17 18 68. Elan has had actual knowledge of the ‘659 patent since at least July 1, 69. Upon information and belief, Elan has been and is currently indirectly 2009. 19 infringing, in violation of 35 U.S.C. § 271, the ’659 patent. Upon information and belief, the 20 ‘659 patent is directly infringed by, without limitation, manufacturers and others in the 21 distribution channel of laptop computers, using, selling, offering for sale and/or importing in the 22 United States, Elan’s touch-sensitive input devices or touchpads employing the methods and 23 apparatuses claimed in the ‘659 patent through their processing of touches, including but not 24 limited to the Smart-Pad product. Upon information and belief, Elan induces that infringement 25 through its intentional marketing, sale and/or support, including technical support, of such devices 26 in the United States, including through EITG, and through the intentional design, marketing, 27 manufacture, sale and/or support, including technical support, of such devices abroad to induce 28 direct infringement in the United States. Upon information and belief, Elan’s inducement APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS 11 Case5:09-cv-01531-RS Document43 Filed10/05/09 Page12 of 15 1 includes, without limitation, active encouragement of the use, sale, offer for sale and/or 2 importation in the United States of such devices to enable processing of touches that infringe the 3 ‘659 patent on such devices, including through the promotion and provision of touchpads and 4 related controllers and marketing literature that induces direct infringement. Upon information 5 and belief, Elan has known or should have known that these actions would cause direct 6 infringement of the ‘659 patent and did so with specific intent to encourage direct infringement. 7 70. Apple has suffered, and will continue to suffer, irreparable injury as a 8 result of Elan’s infringement. Pursuant to 35 U.S.C. §§ 283 and 284, Apple is entitled to 9 damages for infringement and to a permanent injunction against further infringement. 10 11 71. This case is exceptional, and therefore, Apple is entitled to attorneys’ fees pursuant to 35 U.S.C. § 285. 12 FIFTH COUNTERCLAIM – PATENT INFRINGEMENT 13 ’929 PATENT 14 15 16 72. Apple incorporates herein by reference the allegations of paragraphs 1 - 71 of this Answer. 73. Apple is the owner of the entire right, title and interest in and to U.S. Patent 17 No. 6,933,929 (“the ’929 patent”) entitled “Housing For A Computing Device,” which was duly 18 and legally issued on August 23, 2005 in the name of inventor Chris J. Novak. A copy of the 19 ’929 patent is attached as Exhibit C hereto. 20 21 22 74. The ‘929 patent claims an improved housing for a computing device, including a touchpad system. 75. Upon information and belief, Elan’s touch-sensitive input devices or 23 touchpads in touchpad systems and touchpad housing assemblies, including but not limited to the 24 Smart-Pad assembly employed in laptop computers, employ the apparatus claimed in the ‘929 25 patent because they comprise a touchpad housing with a recess, a touchpad that sits in the recess 26 and a touchpad label (covering) over the touchpad and housing that is substantially permanently 27 attached to the housing to secure the touchpad within the cavity formed by the recess. The recess 28 in the Smart-Pad assembly coincides with the shape of the touchpad and has substantially the APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS 12 Case5:09-cv-01531-RS Document43 Filed10/05/09 Page13 of 15 1 same depth as the thickness of the touchpad. The recess also surrounds an opening that allows 2 wires from the touchpad to be provided internal to the touchpad housing. 3 76. Laptop computers employing Elan’s touch-sensitive input devices or 4 touchpads and related components employing the methods and/or apparatuses claimed in the ‘218 5 patent, including but not limited to the Smart-Pad assembly are imported into, offered for sale, 6 sold and used in the United States. 7 77. Elan has had actual knowledge of the ‘929 patent since at least July 1, 78. Upon information and belief, Elan has been and is currently indirectly 8 9 2009. 10 infringing, in violation of 35 U.S.C. § 271, the ’929 patent. Upon information and belief, the 11 ‘929 patent is directly infringed by, without limitation, manufacturers and others in the 12 distribution channel of laptop computers, using, selling, offering for sale and/or importing in the 13 United States, Elan’s touch-sensitive input devices or touchpads in touchpad systems and 14 touchpad housing assemblies claimed in the ‘929 patent, including but not limited to the Smart- 15 Pad assembly. Pursuant to Rule 11(b)(3), it is likely that reasonable opportunity for further 16 investigation or discovery will confirm that Elan induces that infringement through its intentional 17 marketing, sale and support of such devices in the United States, including through EITG, and 18 through the intentional design, marketing, manufacture, sale and support of such devices abroad 19 to induce direct infringement in the United States. Pursuant to Rule 11(b)(3), it likely that 20 reasonable opportunity for further investigation or discovery will confirm that Elan’s inducement 21 includes active encouragement, participation and/or assistance in the design and manufacture of 22 touchpad systems or housing assemblies that infringe the ‘929 patent as part of its activities in 23 conjunction with the manufacture, marketing, sale and support of touchpads employed in such 24 systems or housing assemblies in laptop computers. Pursuant to Rule 11(b)(3), it likely that 25 reasonable opportunity for further investigation or discovery will confirm that Elan has known or 26 should have known that these actions would cause direct infringement of the ‘929 patent and did 27 so with specific intent to encourage direct infringement. 28 APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS 13 Case5:09-cv-01531-RS Document43 1 79. Filed10/05/09 Page14 of 15 Apple has suffered, and will continue to suffer, irreparable injury as a 2 result of Elan’s infringement. Pursuant to 35 U.S.C. §§ 283 and 284, Apple is entitled to 3 damages for infringement and to a permanent injunction against further infringement. 4 5 80. This case is exceptional, and therefore, Apple is entitled to attorneys’ fees pursuant to 35 U.S.C. § 285. 6 7 8 DEMAND FOR JURY TRIAL 81. Pursuant to Rule 38 of the Federal Rules of Civil Procedure, Apple hereby demands a trial by jury on all issues so triable. 9 10 11 12 PRAYER FOR RELIEF WHEREFORE, Apple prays for judgment as follows on Elan’s Complaint and on Apple’s Answer, Affirmative Defenses and Counterclaims: A. 13 14 nothing; B. 15 16 C. For entry of an Order declaring each and every claim of the ’352 and ’353 patents invalid and not infringed by Apple; D. 19 20 That judgment be entered in favor of Apple against Elan on Elan’s Complaint; 17 18 That Elan’s Complaint be dismissed with prejudice and that Elan take For entry of an Order declaring that Elan has infringed, directly or indirectly, the ’218, ’659 and ’929 patents under 35 U.S.C. § 271; E. That Elan, its officers, agents, servants, employees, attorneys and those 21 persons in active concert or participation with any of them, be preliminarily 22 and permanently restrained and enjoined from directly and indirectly 23 infringing the ’218, ’659 and ’929 patents; 24 F. 25 26 27 That Elan be required to pay damages to compensate Apple for Elan’s infringement pursuant to 35 U.S.C. § 284; G. An assessment of pre-judgment and post-judgment interest and costs against Elan, together with an award of such interest and costs; 28 APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS 14 Case5:09-cv-01531-RS Document43 1 H. Filed10/05/09 Page15 of 15 That pursuant to 35 U.S.C. § 285 and/or other applicable laws, Elan’s 2 conduct be found to render this an exceptional case and that Apple be 3 awarded its attorneys’ fees incurred in connection with this action; 4 I. That Elan be required to pay Apple’s costs of suit; 5 J. That Apple be awarded such other and further relief as the court may deem 6 just and proper. 7 8 Dated: October 5, 2009 WEIL, GOTSHAL & MANGES LLP 9 10 By: 11 12 /s/ Edward R. Reines EDWARD R. REINES edward.reines@weil.com Attorneys for Defendant and Counterclaim Plaintiff Apple, Inc. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 APPLE’S SECOND AMENDED ANSWER, DEFENSES AND COUNTERCLAIMS Case No. C-09-01531 RS 15

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