Apple Inc. v. Samsung Electronics Co. Ltd. et al

Filing 695

Request for Judicial Notice Regarding Apple's Claim Construction Positions on U.S. Patent No. 7,469,381, filed by Samsung Electronics Co. Ltd.. (Attachments: #1 Exhibit 1, #2 Exhibit 2, #3 Exhibit 3)(Maroulis, Victoria) (Filed on 1/31/2012) Modified text on 2/1/2012 (dhm, COURT STAFF).

EXHIBIT 1

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ADDUCI MASTRIANI
SCHAUMBERG LLP
ATTORNEYS AT LAW
1200 SEVENTEENTH STREET, NW. WASHINGTON, DC
Tel [phone] Fax (202l 466-200 Web www

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ADDUCI II

Li kto July

8, 2011

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IASTRIANI
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LEONARD

VIA HAND DELIVERY

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The Honorable James R. Holbein
Secretary
U.S. International Trade Commission
500 E Street, SW, Room 112
Washington, DC 20436

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J ENGLER
TARONJI
N SHENG "
%DER JR
HNSTEIN
L F SMITH
A ALLAM *
JACKSON "
3URNS JR
E MORRIS
LANGDON •

Re:

Certain Portable Electronic Devices and Related
Software, ITC Inv. No. 337-TA-

Dear Secretary Holbein:
Enclosed for filing on behalf of Complainant Apple Inc., f/k/a Appli
Computer, Inc. ("Apple") are documents in support of Apple's request that thi
Commission commence an investigation pursuant to Section 337 of the Tariff Ac
of 1930, as amended. A request for confidential treatment of Confidential Exhibit
22 and 26-27 is included with this letter.

mowsK,
Accordingly, Complainant submits the following documents for filing:
COUNSEL
NBERGER
HEGLAND
STRAI

4i-euiu)

AFFILIATE

1. An original and twelve (12) copies of the verified Non-Confidentia
Complaint, and an original and six (6) copies of the accompanying exhibits
with Confidential Exhibits 22 and 26-27 segregated from the other materia
submitted (Commission Rules 201.6(c), 210.4(f)(3)(i) and 210.8(a));
2. Three (3) additional copies of both the verified Non-Confidentia
Complaint and accompanying Non-Confidential exhibits for service upoi
each proposed respondent (Commission Rules 210.4(f)(3)(i), 210.8(a) an
210.11(a));

VICES LLC
RESIDENT

3. Three (3) additional copies of Confidential Exhibits 22 and 26-27 fo
service upon each proposed respondent (Commission Rules 210.4(t)(3)(i)
210.8(a) and 210.11(a));

:

Honorable James R. Holbein
y 8, 2011
;e 2
,

4. Certified copies of United States Patent Nos. 7,844,915 B2 ("the '915 patent"); 7,469,381
B2 (the '381 patent"); 7,084,859 B1 ("the '859 patent"); 7,920,129 B2 ("the '129 patent"),
and 6,956,564 B1 ("the '564 patent") and legible copies of each patent included in the
Complaint as Exhibits 1- 5, respectively;
5. Original certified and additional unbound copies of the assignments for the '915, '381
'859, '129 and '564 patents listed in the verified Complaint as Exhibits 6-10;
6. Original certified copies of the prosecution history of the '915 Patent (Appendix A), t h e
'381 Patent (Appendix B), the '859 Patent (Appendix C), the '129 Patent (Appendix D;
and the '564 patent (Appendix E); one additional unbound copy of each, and 3 additional
copies on CD's;
7. Four (4) copies on CD of each reference document identified in the prosecution historie s
of the patents-at-issue (Appendices F through J) (Commission Rule 210.12(c)(3));
8. One (1) additional copy of the Non-confidential Complaint for service upon the Embassy
of Taiwan, Republic of China, in Washington, D.C. (19 C.F.R. §§ 210.8(a) and
210.11(a)(1)); and
9. Physical Exhibits 1-3 as identified in the Complaint.
A certification is provided below pursuant to Commission Rules 201.6(b) and 210.5(d)
uesting confidential treatment of Confidential Exhibits 22 and 26-27.
The information for which confidential treatment is sought is proprietary commercial
Drmation not otherwise publicly available. Specifically, Confidential Exhibits 22 and 26-27
itain business information not otherwise publicly available and contain proprietary
ormation regarding Apple's domestic industry and investments. The information described
we qualifies as confidential business information pursuant to Rule 201.6(a) because:
a.
b.
c.

it is not available to the public;
unauthorized disclosure of such information could cause substantial harm to the
competitive position of Apple; and
its disclosure could impair the Commission's ability to obtain information
necessary to perform its statutory function. Thank you for your attention to this
matter.

Honorable James R. Holbein
r 8, 2011
e3
Please contact me if you have any questions.
RespectfUlly sbmitted,

Vi

kase
losures

1e700111-12.doc

James Adduci II

UNITED STATES INTERNATIONAL TRADE COMMISSION
WASHINGTON, D.C.

In the Matter of
Investigation No. 337-TACERTAIN PORTABLE ELECTRONIC
)EVICES AND RELATED SOFTWARE

COMPLAINT OF APPLE INC. UNDER
SECTION 337 OF THE TARIFF ACT OF 1930, AS AMENDED
)MPLAINANT
)ple Inc., f/k/a Apple Computer, Inc.
nfinite Loop
tpertino, CA 95014
lephone: [phone]

PROPOSED RESPONDENTS
HTC Corp.
23 Xinghua Road, Taoyuan 330
Taiwan, Republic of China
Telephone: [phone]
HTC America, Inc.
13920 SE Eastgate Way, Suite 400
Bellevue, Washington 98005
Telephone: [phone]
Exedea, Inc.
5950 Corporate Drive
Houston, TX 77036
Telephone: [phone]

3UNSEL FOR COMPLAINANT
James Adduci II
nathan J. Engler
tvid H. Hollander, Jr.
)wan E. Morris
'dud Mastriani & Schaumberg LLP
00 Seventeenth Street, N.W., Fifth Floor
ashington, DC 20036
ark D. Fowler
iron Wainscoat
ik Fuehrer
LA Piper LLP (US)
00 University Avenue
Est Palo Alto, CA. 94303

lany Miller
bert Williams
,A Piper LLP (US)
1 B Street, Suite 1700
n Diego, CA 92101
1: 619-699-2700
x: 619-699-2701
,

Lvid Alberti
izabeth Day
ayton Thompson
ikov Zolotorev
inberg, Day, Alberti & Thompson, LLP
1 Florence Street, Suite 200
to Alto, CA 94301
,orge Riley
'Melveny & Meyers LLP
vo Embarcadero Center, 28th Floor
n Francisco, CA 94111
n Yuen Chow
'Melveny & Meyers LLP
0 South Hope Street
,s Angeles, CA 90071
!nneth H. Bridges
ichael T. Pieja
mes Shimota
idges Mavrakakis LLP
00 El Camillo Real
le Palo Alto Square
.lo Alto, CA 94306

TABLE OF SUPPORTING MATERIALS
EXHIBITS

Exhibit No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

Description
Certified copy of U.S. Patent No. 7,844,915 B2
Certified copy of U.S. Patent No. 7,469,381 B2
Certified copy of U.S. Patent No. 7,084,859 B1
Certified copy of U.S. Patent No. 7,920,129 B2
Certified copy of U.S. Patent No. 6,956,564 B1
Certified copy of Assignment Records for U.S. Patent No. 7,844,915 B2
Certified copy of Assignment Records for U.S. Patent No. 7,469,381 B2
Certified copy of Assignment Records for U.S. Patent No. 7,084,859 B1
Certified copy of Assignment Records for U.S. Patent No. 7,920,129 B2
Certified copy of Assignment Records for U.S. Patent No. 6,956,564 B1
List of Foreign Counterpart Patents and Applications
Infringement Claim Chart for U.S. Patent No. 7,844,915 B2
Infringement Claim Chart for U.S. Patent No. 7,469,381 B2
Infringement Claim Chart for U.S. Patent No. 7,084,859 B1
Infringement Claim Chart for U.S. Patent No. 7,920,129 B2
Infringement Claim Chart for U.S. Patent No. 6,956,564 BI
Documents detailing purchase of HTC Evo 4G
Documents detailing purchase of HTC Flyer
Domestic Industry Claim Chart for U.S. Patent No. 7,844,915 B2
Domestic Industry Claim Chart for U.S. Patent No. 7,469,381 B2
Domestic Industry Claim Chart for U.S. Patent No. 7,084,859 B1
Domestic Industry Claim Chart for U.S. Patent No. 7,920,129 B2
[CONFIDENTIAL]
Domestic Industry Claim Chart for U.S. Patent No, 6,956,564 B1
Apple Inc. SEC Form 10-K (2010)
HTC Evo 4G User Guide
Declaration of Boris Teksler [CONFIDENTIAL]
List of Licensees for the Asserted Patents [CONFIDENTIAL]
Infringement Claim Chart for U.S. Patent No. 6,956,564 B1 — Amended
Claim 4

APPENDICES

Appendix Item
A
B
C
D
E
F
G
H
I
J

Description
Certified copy of Prosecution History for U.S. Patent No. 7,844,915 B2
Certified copy of Prosecution History for U.S. Patent No. 7,469,381 B2
Certified copy of Prosecution History for U.S. Patent No. 7,084,859 B1
Certified copy of Prosecution History for U.S. Patent No. 7,920,129 B2
Certified copy of Prosecution History for U.S. Patent No. 6,956,564 B1
Cited References for U.S. Patent No. 7,844,915 B2
Cited References for U.S. Patent No. 7,469,381 B2
Cited References for U.S. Patent No. 7,084,859 B1
Cited References for U.S. Patent No. 7,920,129 B2
Cited References for U.S. Patent No. 6,956,564 B1

PHYSICAL EXHIBITS

Exhibit No.
1
2
3

Description
Apple iPhone 4 (in box with packaging)
HTC EVO 4G (in box with packaging)
HTC Flyer (in box with packaging)

TABLE OF CONTENTS
Page
1

•

INTRODUCTION

I.

COMPLAINANT .................................................................... ....... ................. ...... 4

II.

THE PROPOSED RESPONDENTS

....... ......................... ...... ............................ 5
6

V. THE TECHNOLOGY AND PRODUCTS AT ISSUE

V. THE ASSERTED PATENTS AND NON-TECHNICAL
DESCRIPTIONS OF THE INVENTIONS ................................. ...... .................... 8
A.

Overview and Ownership of Asserted Patents ..... . ...... ............................... 8

B.

Non-Technical Description of the '915 Patent ......... ...... ........................... 8

C.

Non-Technical Description of the '381 Patent

D.

Non-Technical Description of the '859 Patent ............ ...... ............. .....

E.

Non-Technical Description of the '129 Patent ...................... ..... ............. 11

F.

Non-Technical Description of the '564 Patent ........................ ...... .......... 11

G.

Foreign Counterparts

H.

Licenses......................................... ... . . ........................ ..... ......................... 12

9
10

..... ........... ..... ................................. ..... ........ ....... 12

VI. UNLAWFUL AND UNFAIR ACTS OF RESPONDENTS-PATENT
...... .................................. ..... ........ ............. .................. 13
14

A.
B.

The '381 Patent ................... ..... ................................................................ 14

C.

The '859 Patent .................................................. .. . .. .......................... ..... 15

D.

The '129 Patent

E .
VII.

The '915 Patent

The '564 Patent ................. ...... ................................................................. 16

15

SPECIFIC INSTANCES OF UNFAIR IMPORTATION AND SALE .............. 17

VIII. HARMONIZED TARIFF SCHEDULE ITEM NUMBERS ............................... 17
[X. RELATED LITIGATION

18

X. THE DOMESTIC INDUSTRY

18

A.

Apple's Investments In The Domestic Industry ................ ....... ............... 19

B.

Apple's Practice of the Asserted Patents

XI. RELIEF

..... ................. 22
23

[.

INTRODUCTION
1.

Apple Inc. ("Apple") is a leading designer and manufacturer of personal

:omputers, mobile communications devices, portable digital media players and software.
Apple's portable electronic devices, such as the iPhone, iPad and iPod touch, are
roundbreaking products that revolutionized their respective industries, enjoy enormous
:ommercial success and popular acclaim, and continue to lead their fields in innovation,
,erformance and ease of use.
2.

Apple's extraordinary record of launching technically innovative and

:ommercially successful products reflects its deep commitment to research and
levelopment. Throughout its history, Apple has made substantial investments in research
tnd development in a wide variety of technical fields, including computer hardware and
mftware, graphical and touch-based user interfaces, digital media players and personal
:ommtmications. Substantially all of this research and development has been conducted
)y Apple employees located in the company's headquarters in Cupertino, California.
3.

Apple's commitment to research and development has led to pioneering

nnovations that have laid the groundwork for, and are used extensively in, each of
Apple's product lines, including the iPhone, iPad and iPod touch. Apple has been
twarded patent protection for certain of its innovations by the United States Patent and
Trademark Office ("PTO"). Apple continues to seek and obtain patent protection for its
recent and ongoing innovations, including innovations related to its iPhone, iPad and
Tod touch products.
4.

HTC Corp. ("HTC"), HTC America, Inc. ("HTC America") and Exedea,

[nc. ("Exedea") (collectively, "Respondents") manufacture, import, sell for importation,
1

;ell after importation, and service and repair portable electronic devices, including
;ellular phones, smartphones, tablet computers and other handheld devices, and software
o be loaded into and used on such devices and components of such devices (collectively,
he "Accused Products"). The Accused Products manufactured, imported and sold by
.espondents incorporate, without license, many technologies developed by Apple and
notected by patents issued to and owned by Apple.
5.

Accordingly, Apple files this complaint under section 337 of the Tariff

Act of 1930, as amended, 19 U.S.C. §1337, based on the unlawful importation into the
Jnited States, the sale for importation into the United States and the sale within the
Jnited States after importation by the Respondents of certain portable electronic devices
Ind related software that infringe certain claims of U.S. Patent Nos. 7,844,915 (the '915
)atent"), 7,469,381 (the "381 patent"), 7,084,859 (the "859 patent"), 7,920,129 (the
"129 patent") and 6,956,564 (the "'564 patent") (collectively, the "Asserted Patents").
6.

The Asserted Patents include groundbreaking technologies developed by

Apple in conjunction with the development of its innovative iPhone, iPad and iPod touch
roducts.

T11L; presently

as , crted claims of tile A iserted Patents -ire as follows:
llikTrrd
r ci

(a ar
ril

7 q4,915

1-5, 7-12, 14-19 ,Ind 21

7,469,381

1-20
14-20, 25, 28

7,084,859

2

1-3, 5-12, 14-19, 21-22, 24-28

7,920,129
6,956,564
7.

28, 36 1

Apple owns all right, title and interest in and to each of the Asserted

?atents. Certified copies of the Asserted Patents are attached as Exhibits 1 through 5.
2ertified copies of the assignment records of the Asserted Patents are attached as
Exhibits 6 through 10.
8.

A domestic industry as required by 19 U.S.C. §§1337(a)(2) and (3) exists

in the United States relating to the Apple products protected by the Asserted Patents.
9. Apple seeks as relief a permanent limited exclusion order prohibiting
infringing portable electronic devices and related software, manufactured or sold by or on
behalf of Respondents, from entry into the United States. Apple further seeks a

'At the time of filing this Complaint, the '564 patent was subject to a reissue proceeding, wherein claim 4
was amended and claim 108, which depends from claim 4, was added. Both of these claims have been
allowed and are expected to issue shortly. Apple intends to file a motion to amend this complaint to add the
re i ssue d amended claim 4 and add issued claim 108 to the list of asserted claims for the '564 patent once
he reissue patent issues. At the time of filing this Complaint, Apple asserts infringement of existing claims
28 and 36. The language of the amended claim 4 and issued claim 108 is reproduced below in its entirety,
and an exemplary infringement claim chart for amended claim 4 is attached as a courtesy as Exhibit 28:
Claim 4 (Amended):
A portable computer comprising: at least one acceleration detection means responsive to
movement of the computer to produce an electrical output signal representative of such
movement: processing means responsive to the output of said movement detection means to
determine detected movement data defining a user's intention; the processing means using said
data to provide a mode response selected from a multiplicity of stored possible modes; and
wherein the processing means is responsive to detected movement data to determine a most
likely orientation of a computer display means, the processing means causing the displayed
information to be oriented accordingly.
Claim 108 (New):
The portable computer of claim 4, wherein the at least one acceleration detection means
comprises a plurality of acceleration detection means

3

)ermanent cease and desist order prohibiting Respondents from marketing, distributing,
;elling, offering for sale, warehousing inventory for distribution or otherwise transferring
rr bringing into the United States infringing portable electronic devices and related
;oftware.
[I. COMPLAINANT
10.

Apple is a California corporation having its principal place of business at 1

Infinite Loop, Cupertino, California 95014.
11.

Apple designs, develops, markets and sells the iPhone, the iPad and the

Pod products (which include the iPod touch) as well as a variety of related products,
rccessories, peripherals and services, including warranty and customer support. Apple
tlso designs, develops, markets and sells the iOS operating system for the iPhone, iPad
md iPod touch. Apple provides a complete software development kit ("SDK") providing
ools for programmers to create their own applications for the iPhone, iPad and iPod
ouch. Apple sells its products worldwide through its online stores, its own retail stores,
ts direct sales force and third-party wholesalers, resellers and value-added resellers.
12.

Apple researched and developed the technology that is protected by the

4sserted Patents. Apple has made and continues to make significant investment in the
lesign and development of products protected by the Asserted Patents, as described in
section X below. These include the iPhone, iPad and iPod touch products.
13.

Apple uses the technologies covered by the Asserted Patents in the United

states as described in Section X below. In connection with the exploitation of these
;echnologics, Apple has made and continues to make significant investment in the United
states in facilities, equipment, labor and capital also as described in Section X below.
4

II. THE PROPOSED RESPONDENTS
14.

On information and belief, HTC is a corporation organized and existing

order the laws of Taiwan and having its principal place of business at 23 Xinghua Road,
'aoyuan City, Taoyuan County 330, Taiwan, Republic of China. On information and
)elief, HTC is engaged in the design, manufacture, importation into the United States and
ale after importation of the Accused Products.
15.

On information and belief, HTC (BVI) Corp. is a wholly-owned

ubsidiary of Respondent HTC. HTC (BVI) Corp., while not a Respondent, is engaged in
Lctivities on behalf of its parent, Respondent HTC, and is itself the parent company of an
Ldditional Respondent.
16.

On information and belief, HTC America Holding, Inc. is a wholly-owned

,ubsidiary of Respondent HTC. HTC America Holding, Inc., while not a Respondent, is
;ngaged in activities on behalf of its parent, Respondent FITC, and is itself the parent
;ompany of an additional Respondent.
17.

On information and belief, HTC America is a corporation organized and

:xisting under the laws of the State of Washington and having a principal place of
)usiness at 13920 SE Eastgate Way, Suite 400, Bellevue, Washington 98005. On
nformation and belief, FITC America is a wholly-owned subsidiary of HTC America
iolding, Inc. On information and belief, HTC America performs several services to
;upport the importation and sale of Accused Products into and within the United States,
ncluding marketing of the Accused Products, repair of the Accused Products and other
tfter-sale services, such as supporting and configuring the Accused Products, as well as

5

aterfacing with U.S.-based customers and distributors to conform the Accused Products
D purchaser

18.

requests.
On information and belief, Exedea is a corporation organized and existing

alder the laws of the State of Texas and having a principal place of business at 5950
:orporate Drive, Houston, Texas 77036. On information and belief, Exedea is a whollyowned subsidiary of HTC (BVI) Corp. On information and belief, Exedea, inter alia,
mports the Accused Products into the United States and distributes and sells the Accused
Products after their importation into the United States.

V. THE TECHNOLOGY AND PRODUCTS AT ISSUE
19.

The technologies at issue relate generally to hardware and software used

n a variety of portable electronic devices, including mobile communication equipment
mported into and sold within the United States by or on behalf of Respondents. The
echnologies at issue in the '915, '381 and '859 patents relate generally to software
trchitectures, frameworks and implementations for user interfaces that can be utilized in
)ortable electronic devices. The technology at issue in the '129 patent relates generally
o hardware for touch screens that can be used in portable electronic devices. The
echnology at issue in the '564 patent relates generally to movement or acceleration
tensors that can be used in portable electronic devices.
20. The Accused Products include portable electronic devices, including but
lot limited to cellular phones, smartphones and tablet computers, together with software
lesigned for use on and intended to be loaded onto, such devices. The Accused Products
ire imported into and sold within the United States by or on behalf of Respondents.

6

21.

Certain imported Accused Products comprise, include or contain software

)ased on an operating system known as "Android." These products are referred to herein
is the "Accused HTC Android Products." Exemplary Accused HTC Android Products
nclude at least the following smartphones: HTC Droid Incredible, the HTC Droid
ncredible 2, the HTC Wildfire, the HTC T-Mobile myTouch 3G, the HTC T-Mobile
nyTouch 3G Slide, the HTC T-Mobile myTouch 4G, the HTC T-Mobile G1 , the HTC Tvlobile G2, the HTC Evo 4G, the HTC Aria, the HTC Desire, the HTC Hero, the HTC
vIerge, the HTC Inspire 4G, the HTC Evo Shift 40 and the HTC Thunderbolt 4G; and at
east the following tablet computers: the HTC Flyer.
22.

Certain Accused Products comprise, include or contain a capacitive touch

>ensor panel including a set of traces that serve the dual functions of driving the touch
>ensor panel and also shielding another set of traces from the effects of capacitive
oupling. These products are referred to herein as the "Accused HTC Capacitive Touch
3

ariel Products." Exemplary Accused HTC Capacitive Touch Panel Products include at

east the HTC Droid Incredible, the HTC Droid Incredible 2, the HTC EVO 4G, the HTC
)esire, the HTC T-Mobile G2, the HTC Inspire 4G, and the HTC Thunderbolt.

2

The portable electronic devices listed in Section IV are a shorthand summary of products currently
accused of infringement by Apple. The specific products listed therein are exemplary only and are not
ntended to exclusively define or otherwise limit the category of Accused Products. For instance,
Zespondents have announced their intention to release additional products that will infringe the Asserted
'atents, such as the HTC Evo 3D and the HTC Evo View 4G. See http://www.e ‘k eek comic/a/Mobile-andWireless/HTC-Evo-3D-Evo-View-4G-Coming-June-24-froin-Sprint-774936. Apple may, if necessary,
mend or modify the above descriptions, or add additional exemplary products, as discovery progresses.

7

7.

THE ASSERTED PATENTS AND NON-TECHNICAL DESCRIPTIONS
OF THE INVENTIONS
A.

Overview and Ownership of Asserted Patents

23.

As set forth below, Apple owns by assignment the entire right, title and

nterest in and to each of the Asserted Patents. See Exhibits 6 through 10.
24.

Pursuant to Commission Rule 210.12(c), certified copies of the

,rosecution histories of each of the Asserted Patents have been submitted with this
:omplaint as Appendices A through E. Pursuant to Commission Rule 210.12(c), the
:ited references for each of the Asserted Patents also have been submitted with this
:omplaint as Appendices F through J.
B.

Non Technical Description of the '915 Patent 3

25.

The '915 patent, entitled "Application Programming Interfaces for

-

scrolling Operations" issued on November 30, 2010 to inventors Andrew Platzer and
icon Herz. The '915 patent issued from United States Patent Application No.
1/620,717 filed on January 7, 2007. The '915 patent expires on January 7, 2027. Apple
)wns by assignment the entire right, title and interest in and to the '915 patent.
26.

The '915 patent has twenty-one claims: three independent claims and

;ighteen dependent claims.

This description and any other non-technical descriptions within this Complaint are for illustrative
mrposes only. Nothing in any non-technical description contained within this Complaint is intended to,
tither implicitly or explicitly, express any position regarding the proper construction of any claim of the
asserted Patents.

8

27.

The '915 patent relates generally to user interface software interacting

with a software application to enable the recognition and processing of gestures on a
nultitouch display. Broadly speaking, the '915 patent relates to an application
wogramming interface for implementing scrolling and multitouch gesturing operations
)n a portable electronic device including a multitouch-sensitive display.
C.

Non-Technical Description of the '381 Patent

28.

The '381 patent, entitled "List Scrolling and Document Translation,

;caling, and Rotation On A Touch-Screen Display," issued on December 23, 2008 to
nventor Bas Ording. The '381 patent issued from Application No. 11/956,969 filed on
)ecember 14, 2007. An ex parte request for reexamination was filed on April 28, 2010.
)n April 26, 2011, claims 1-20 of the '381 patent emerged from reexamination without
tmendment. The '381 patent expires on December 14, 2027. Apple owns by assignment
he entire right, title and interest in and to the '381 patent.
29.

The '381 patent contains twenty claims: three independent claims and

seventeen dependent claims.
30.

The '381 patent relates to a method and apparatus for use in conjunction

with a portable electronic device with a touch screen display. Broadly speaking, the '381
)atent relates to a scrolling method for a touch screen display that allows a user to scroll
o and past the end of a displayed document in a natural and intuitive manner by using a
'bounce-back" or "rubber band" effect when the edge of a document is reached. By way
)f example, a user using a portable electronic device that practices the claimed invention
)f the '381 patent may scroll an electronic document in a downward direction with their
'Inger. If the bottom of the electronic document is reached and the user's finger is still
9

letected on or near the touch screen display, an area beyond the bottom of the document
s displayed; that is, the document temporarily scrolls past its bottom-most edge. After
he finger is no longer detected on or near the touch screen display, the document "snaps
,ack" such that the area beyond the bottom of the document is no longer displayed.
D. Non Technical Description of the '859 Patent
-

31.

The '859 patent, entitled "Programmable Tactile Touch Screen Displays

and Man-Machine Interfaces for Improved Vehicle Instrumentation and Telematics,"
ssued on August 1, 2006 to inventor Timothy Pryor. The '859 patent issued from United
states Patent Application No. 09/789,538 filed on February 22, 2001. A request for
eexamination was filed on June 10, 2009. The '859 patent emerged from reexamination
m May 17, 2011. The '859 patent expires on September 18, 2014. Apple owns by
assignment the entire right, title and interest in and to the '859 patent.
32.

The '859 patent has thirty-nine claims: fourteen independent claims and

wenty-five dependent claims.
The '859 patent generally relates to methods for controlling computer systems
ising multitouch sensitive display screens — that is, touch screens that can process inputs
rom multiple fingers simultaneously. The '859 patent relates generally to a number of
;estures that a user can use on such screens to control the contents of the screen or data
wesented on the screen or otherwise represented in the computer system.

10

E.

Non-Technical Description of the '129 Patent

33.

The '129 patent, entitled "Double-Sided Touch-Sensitive Panel With

ihield And Drive Combined Layer," issued on April 5, 2011 to inventors Steve Porter
lotelling and Brian Richards Land. The '129 patent issued from United States Patent

-

kpplication No. 11/650,182 filed on January 3, 2007. The '129 patent expires on January
l3, 2030. Apple owns by assignment the entire right, title and interest in and to the '129
)atent.
34.

The '129 patent has 29 claims: 9 independent claims and 20 dependent

35.

The '129 patent generally relates to designs for capacitive touch-sensitive

:laims.

,anels. In general, capacitive touch screens use two sets of conductive traces, known as
.

ow traces and column traces. The touch screen operates by sensing changes in the

.lectrical capacitance at junctions between the sets of traces that occurs when a finger or
)ther object approaches a particular place on the screen. The '129 patent discloses,
imong other things, the benefits associated with placing the drive traces between the
;ense traces and the display element. The '129 patent further teaches advantageously
;hielding the column traces from electrical interference by controlling the width of the
-

ow traces.
F.

Non-Technical Description of the '564 Patent

36.

The '564 patent, entitled "Portable Computers," issued on October 18,

2005 to inventor Hilary Lyndsay Williams. The '564 patent issued from United States
Patent Application No. 09/171,921 filed on October 8, 1998. The '564 patent expires on

11

)ctober 8, 2018. Apple owns by assignment the entire right, title and interest in and to
he '564 patent.
37.

The '564 patent has 36 claims: 14 independent claims and 22 dependent

38.

The '564 patent generally relates to the implementation and use of

laims.

Lccelerorneters and movement sensors in portable electronic devices, including handheld
omputing devices, to improve viewing orientation. For example, the '564 patent
liscloses using accelerometers or movement sensors to detect changes in the orientation
)f an electronic device and then adjusting the display of information to match the most
ikely orientation of the device.
G.

Foreign Counterparts

39.

A list of foreign counterparts to the Asserted Patents is included with this

2omplaint as Exhibit 11. Apple owns all right, title and interest in and to each of these
-

'oreign counterparts. Apple is not aware of any other foreign counterparts or foreign
;ounterpart applications corresponding to the Asserted Patents that have been issued,
thandoned, denied or which remain pending.
H.

Licenses

40.

Confidential Exhibit 27 includes a list of licensed entities for the Asserted

Patents. On information and belief there are no other current licenses involving the
ksserted Patents.

12

Vt. UNLAWFUL AND UNFAIR ACTS OF RESPONDENTS-PATENT
INFRINGEMENT
41.

On information and belief, the Respondents manufacture abroad, sell for

mportation into the United States, import into the United States, and/or sell within the
Jnited States after importation, portable electronic devices and components thereof that
nfringe one or more of the Asserted Patents.
42.

Respondents directly infringe and/or will infringe the Asserted Patents by

naking, using, selling, offering for sale, and importing the articles claimed by, or
)racticing the claimed methods of, the Asserted Patents. Moreover, Respondents are
mare of the Asserted Patents, at least because Respondents were provided with a copy of
his Complaint via registered mail as of the date of its filing. In addition, as set forth
)elow, the '381 patent already is the subject of a complaint filed by Apple against the
Zespondents on March 2, 2010, in Apple Inc. v. High Tech Computer Corp. a/k/a HTC
2.orp. et al., currently pending in the District of Delaware, and concurrent with the filing
)f this complaint, Apple will file a civil action in the United States District Court for the
District of Delaware accusing Respondents of infringing the '915 patent. the '859 patent,
he '129 patent and the '564 patent.
43.

On information and belief, Respondents indirectly infringe the Asserted

Patents by contributing to and/or inducing the infringement of these patents by end users
)f their products because Respondents know that the sale of the accused portable
electronic devices, together with user manuals, service manuals, guides, and other
materials, constitute infringing use of the portable electronic devices and related
30 ftware.

13

A.

The '915 Patent

44. On infolination and belief, the Accused HTC Android Products infringe at
east claims 1-5, 7-12, 14-19 and 21 of the '915 patent. Additionally, on information and
elief, users making routine use of the Accused HTC Android Products infringe at least
laims 1-5, 7-12, 14-19 and 21 of the '915 patent. On information and belief, as set forth
paragraph 43, above, Respondents are aware of the '915 patent. Further, on
Iformation and belief, Respondents knowingly induce users of the Accused HTC
android Products to infringe at least claims 1-5, 7-12, 14-19 and 21 of the '915 patent.
)n information and belief, Respondents contribute to infringement of at least claims 1-5,
-12, 14-19 and 21 of the '915 patent because Respondents know that the Accused HTC
indroid Products are made for use in an infringement of these claims and are not staple
rticles of commerce suitable for substantial noninfringing use. An exemplary claim
hart comparing the asserted independent claims of the '915 patent to an exemplary one
if the Accused HTC Android Products (i.e., the HTC EVO 4G) is attached as Exhibit 12.

B. The '381 Patent
45. On information and belief, the Accused HTC Android Products infringe
laims 1-20 of the '381 patent. Additionally, on information and belief, users making
outine use of the Accused HTC Android Products infringe claims 1-20 of the '381
iatent. On information and belief, as set forth in paragraph 43, above, Respondents are
ware of the '381 patent. Further, on information and belief, Respondents knowingly
riduce users of the Accused 1-ITC Android Products to infringe claims 1-20 of the '381
iatent. On information and belief, Respondents contribute to infringement of claims 1-20
if the '381 patent because Respondents know that the Accused HTC Android Products

14

ire made for use in an infringement of these claims and are not staple articles of
;ommeree suitable for substantial noninfringing use. An exemplary claim chart
;omparing the asserted independent claims of the '381 patent to an exemplary one of the
kccused HTC Android Products (i.e., the HTC EVO 4G) is attached as Exhibit 13.
C.

The '859 Patent

46.

On information and belief, the Accused HTC Android Products infringe at

east claims 14-20, 25 and 28 of the '859 patent. Additionally, on information and belief,
isers making routine use of the Accused HTC Android Products infringe at least claims
14-20, 25 and 28 of the '859 patent. On information and belief, as set forth in paragraph
13, above, Respondents are aware of the '859 patent. Further, on information and belief,
Respondents knowingly induce users of the Accused HTC Android Products to infringe
it least claims 14-20, 25 and 28 of the '859 patent. On information and belief,
Respondents contribute to infringement of at least claims 14-20, 25 and 28 of the '859
patent because Respondents know that the Accused HTC Android Products are made for
use in an infringement of these claims and are not staple articles of commerce suitable for
substantial noninfringing use. An exemplary claim chart comparing the asserted
independent claims of the '859 patent to an exemplary one of the Accused HTC Android
Products (i.e., the HTC EVO 4G) is attached as Exhibit 14.
D.

The '129 Patent

47.

On information and belief, the Accused HTC Capacitive Touch Panel

Products infringe at least claims 1-3, 5-12, 14-19, 21-22, 24-28 of the '129 patent.
Additionally, on information and belief, users making routine use of the Accused HTC
Capacitive Touch Panel Products infringe at least claims 1-3, 5-12, 14-19, 21-22, 24-28
15

)f the '129 patent. On information and belief, as set forth in paragraph 43, above,
tespondents are aware of the '129 patent. Further, on information and belief,
espondents knowingly induce users of the Accused HTC Capacitive Touch Panel
3

roducts to infringe at least claims 1-3, 5-12, 14-19, 21-22, 24-28 of the '129 patent. On

nformation and belief, Respondents contribute to infringement of at least claims 1-3, 512, 14-19, 21-22, 24-28 of the '129 patent because Respondents know that the Accused
-ITC Capacitive Touch Panel Products are made for use in an infringement of these
;laims and are not staple articles of commerce suitable for substantial noninfringing use.
tkn exemplary claim chart comparing the asserted independent claims of the '129 patent
:o an exemplary one of the Accused HTC Capacitive Touch Panel Products (i.e., the HTC
EVO 4G) is attached as Exhibit 15.
E. The '564 Patent
48. On information and belief, the Accused HTC Android Products infringe at
east claims 28 and 36 of the '564 patent. Additionally, on information and belief, users
making routine use of the Accused HTC Android Products infringe at least claims 28 and
36 of the '564 patent. On information and belief, as set forth in paragraph 43, above,
Respondents are aware of the '564 patent. Further, on information and belief,
Respondents knowingly induce users of the Accused HTC Android Products to infringe
it least claims 28 and 36 of the '564 patent. On information and belief, Respondents
contribute to infringement of at least claims 28 and 36 of the '564 patent because
Respondents know that the Accused HTC Android Products are made for use in an
infringement of these claims and are not staple articles of commerce suitable for
substantial noninfringing use. An exemplary claim chart comparing the asserted
16

Idependent claims of the '564 patent to an exemplary one of the Accused HTC Android
'roducts (i.e., the HTC EVO 4G) is attached as Exhibit 16.

M. SPECIFIC INSTANCES OF UNFAIR IMPORTATION AND SALE
49.

Respondents, either themselves or through subsidiaries or third parties

.cting on behalf of Respondents, are engaged in the manufacture, importation, sale for
mportation, offer for sale after importation, sale and/or use after importation into the
Jnited States of infringing portable electronic devices and related software.
50.

The HTC Evo 4G is manufactured in Taiwan. (See Exhibit 17,

Photograph of an HTC Evo 4G (indicating that device is "Made in Taiwan").) The HTC
F,vo 4G is imported into the United States. For example, the photographed HTC Evo 4G
vas purchased from Radio Shack in Salt Lake City, Utah on May 31, 2011. The receipt
or this purchase is attached as Exhibit 17. The photographed HTC Evo 4G device, in its
packaging, is submitted as Physical Exhibit 2.
51.

The HTC Flyer is manufactured in Taiwan. (See Exhibit 18, photograph

Pf an HTC Flyer (indicating that device is "Made in Taiwan"). The HTC Flyer is
mported into the United States. For example, the photographed HTC Flyer was
Purchased from Best Buy in San Diego, California on May 31, 2011. The receipt for this
purchase is attached as Exhibit 18. The photographed HTC Flyer device, in its
Packaging, is submitted as Physical Exhibit 3.

7III. HARMONIZED TARIFF SCHEDULE ITEM NUMBERS
52.

On information and belief, the accused products fall within at least the

bllowing classification of the Harmonized Tariff Schedule ("HTS") of the United States:
517.12.00 (mobile phone) and 8471.30.01; 8471.41.01 or 8471.49.00 (portable

17

omputers). The HTS number is intended to be for illustration only and is not exhaustive
if the products accused of infringement in this Complaint. The HTS number is not
ntended to limit the scope of the Investigation.

X. RELATED LITIGATION
53.

At present, the '381 patent is the subject of a complaint filed by Apple on

Aarch 2, 2010, in Apple Inc. v. High Tech Computer Corp. a/k/a HTC Corp., HTC (BVI)
17,orp., HTC America, Inc. and Exedea, Inc., Civil Action 10-167-GMS, currently
'ending in the District of Delaware. In addition, the '381 patent and the '915 patent are
he subject of a complaint filed by Apple on April 15, 2011, in Apple Inc. v. Samsung
F,lectronics Co., LTD., Samsung Electronics America, Inc. and Samsung
7elecommtinications America, LLC, Civil Action 11-1846-LB, currently pending in the
slorthem District of California.
54.

Concurrent with the filing of this complaint, Apple will file a civil action

n the United States District Court for the District of Delaware accusing Respondents of
nfringing the '915 patent, the '859 patent, the '129 patent and the '564 patent.
55.

None of the other Asserted Patents has been the subject of any other

'oreign or domestic court or agency litigation.

IC. THE DOMESTIC INDUSTRY
56.

There is a domestic industry, as defined under 19 U.S.C. § 1337(a)(3)(A),

B), and (C), comprising significant investments in physical operations, employment of
abor and capital and exploitation of the Asserted Patents.

18

A.

Apple's Investments In The Domestic Industry

57.

Apple makes extensive use of the inventions claimed in the Asserted

'atents in numerous products, including the iPhone, iPad and iPod touch products. The
Phone, iPad and iPod touch products are developed in the United States, manufactured
tbroad, and sold within the United States. As set forth in greater detail below, these
iroducts collectively practice each of the Asserted Patents.
58.
. espect

Apple has made significant investment in plant and equipment with

to the Apple products that practice the Asserted Patents. Apple's headquarters is

ocated in Cupertino, California. (See Exhibit 24, Apple 2010 Form 10-K at 21.) As of
September 25, 2010, 4 Apple owned facilities for research and development and corporate
'unctions in Cupertino, California, including land for the future development of its
;econd corporate campus in Cupertino, California. (Id. at 21.) Apple also owned a data
:enter in Newark, California and land in North Carolina for a new data center facility
:urrently under construction. (Id.) Substantially all of the research, development, design,
mgineering, and testing of the Apple products that practice the Asserted Patents was
lone by Apple employees using or working within Apple's headquarters or facilities in
:upertino, or in Apple's Newark data center facilities.

Apple's fiscal year is the 52 or 53-week period that ends on the last Saturday of September. Unless
)therwise stated, all information presented is based on Apple's fiscal calendar. (See Exhibit 24, Apple
!010 Form 10-K at 1.)

19

59.
.

Moreover, as of September 25, 2010, Apple had opened a total of 317

etail stores, including 233 stores in the United States. (Exhibit 24 at 2.) Apple has made

;ubstantial investments in its 233 United States retail stores which, in addition to sales,
novide product advice, service, and training for Apple hardware and software, including
he Apple products that practice the Asserted Patents. (Id.) Apple also maintains
ustomer service centers at its retail locations called Genius Bars. Genius Bars are
itaffed by specially trained employees (or "Geniuses") who provide support services for
kpple products that practice the Asserted Patents, as well as Apple's other products, such
Is troubleshooting problems, identifying needed repairs, and training customers to use
kpple's products. Apple uses its Genius Bars to create a personal relationship with its
:.ustomers that is unique in the industry. During 2010, Apple's capital expenditures for
.etail store facilities was approximately $404 million. (Exhibit 24 at 41.)
60.

Apple has made substantial investments in the Apple products that

wactice the Asserted Patents, including, by way of example, investments in engineering,
-

esearch, and development. Detailed information regarding Apple's research and

ievelopment expenditures may be found in the accompanying Confidential Declaration
)f Boris Teksler, Apple's Director of Patent Licensing and Strategy. (See Exhibit 26,
Teksler Decl., ¶5.) Substantially all of the research, development, design, engineering,
Ind testing of the Apple products that practice the Asserted Patents was done by Apple
employees working within the United States. (Id.)
61.

Apple has been and is engaged in a significant employment of labor with

respect to the Apple products that practice the Asserted Patents. As of September 25,
2010, Apple had approximately 46,600 full-time equivalent employees and an additional
20

!,800 temporary equivalent employees and contractors. (Exhibit 24 at 10.) Most of
\pple's key employees are located in Silicon Valley, California. (Id. at 17.)
substantially all of the research, development, design, engineering, and testing of the
\pple products that practice the Asserted Patents was done by Apple employees working
vithin the United States. (See Exhibit 26, ¶ 5.)
62.

Apple has established a network of authorized service centers in the

Jnited States to provide repair and replacement services for Apple products, including
he Apple products that practice the Asserted Patents. For instance, Apple has developed
i training and certification program for Apple-certified technicians to ensure that Apple's
;ustomers receive industry-leading support for its iPhone, iPad and iPod touch products
ind related software and services. Apple has also established an extensive support
,rogram for developers to create applications for the iPhone, iPad and iPod touch.
Exhibit 26, ¶ 9.)
63.

For the 2010 fiscal year, Apple's net revenues were $65.23 billion,

ncluding approximately $25 billion from iPhone and related products and services,
approximately $5 billion from iPad and related products and services, and approximately
;8 billion from iPod product sales. (See Exhibit 24 at 33; Exhibit 26, ¶ 6.) During the
!010 fiscal year, Apple sold 40.0 million iPhone units, 7.5 million iPad units, and 50.3
nillion iPod units. (See Exhibit 24 at 33.) The United States represents Apple's largest
;eographic marketplace. (Id. at 9.) Approximately 44% of Apple's net sales in fiscal
(ear 2010 came from sales to customers inside the United States. (Id.)
64. Additional confidential business information regarding Apple's
nvestments in plant, equipment, labor, and research and development related to products

21

hat incorporate technology protected by the Asserted Patents is set forth in the
Lccompanying Teksler Declaration. (Exhibit 26.)
65.

Apple's investments in the relevant domestic industry are continuing and

rngoing.
B.

Apple's Practice of the Asserted Patents

66.

Apple makes extensive use of the Asserted Patents in numerous different

rroducts. As noted above, Apple currently makes and sells the iPhone, iPad and iPod
ouch products. Each of these products practices one or more claims of each of the
k.sserted Patents. In particular, the iPhone 4, the iPad and the iPod touch each practices
Lt least claims 1 and 8 of the '915 patent, at least claim 1 of the '381 patent, at least claim
:8 of the '859 patent, at least claim 1 of the '129 patent, and at least claim 36 of the '564
etent. The allocation of revenue and cost items for each of these product lines is set
'orth in the accompanying Teksler Declaration. (See Exhibit 26.) Specific examples of
ise are described in this section, below, and charted in associated exhibits.
67.

A sample iPhone 4 is provided concurrently with this Complaint as

Physical Exhibit 1.
68.

The '915 patent is practiced by Apple products including, without

imitation, the iPhone, iPad, and iPod touch products. A claim chart comparing an
Phone 4 to exemplary claims 1 and 8 of the '915 patent is attached as Exhibit 19.
69. The '381 patent is practiced by Apple products including, without
imitation, the iPhone, iPad, and iPod touch products. A claim chart comparing an
Phone 4 to exemplary claim 1 of the '381 patent is attached as Exhibit 20.

22

70.

The '859 patent is practiced by Apple products including, without

imitation, the iPhone, iPad, and iPod touch products. A claim chart comparing an
Phone 4 to exemplary claim 28 of the '859 patent is attached as Exhibit 21.
71.

The '129 patent is practiced by Apple products including, without

imitation, the iPhone, iPad, and iPod touch products. A claim chart comparing an
Phone 4 to exemplary claim 1 of the '129 patent is attached as Exhibit 22.
72.

The '564 patent is practiced by Apple products including, without

imitation, the iPhone, iPad, and iPod touch products. A claim chart comparing an
Phone 4 to exemplary claim 36 of the '564 patent is attached as Exhibit 23.

Kt. RELIEF REQUESTED
73.

WHEREFORE, by reason of the foregoing, Apple respectfully requests

hat the United States International Trade Commission:
(a)

Institute an immediate investigation, pursuant to Section 337 of the

Tariff Act of 1930, as amended, 19 U.S.C. § 1337(a)(1)(B)(i) and (b)(1), with respect to
violations of Section 337 based on the importation, sale for importation, and sale after
Lmportation, into the United States of Respondents' portable electronic devices and
related software, and products and components thereof made on behalf of Respondents,
that infringe one or more asserted claims of the '915, '381, '859, '129 and '564 patents;
(b)

Schedule and conduct a hearing on said unlawful acts and,

following said hearing;
(c)

Issue a permanent exclusion order, pursuant to 19 U.S.C. §

1337(d)(1), barring from entry into the United States all portable electronic devices and
related software, and products and components thereof made by or on behalf of

23

tespondents, and products containing same, that infringe one or more asserted claims of
he '915, '381, '859, '129 and '564 patents;
(d)

Issue a permanent cease and desist order, pursuant to 19 U.S.C. §

337(f), prohibiting Respondents, and others acting on their behalf, from importing,
narketing, advertising, demonstrating, warehousing inventory for distribution,
listributing, offering for sale, selling, licensing, using, or transferring outside the United
states for sale in the United States any portable electronic devices and related software,
Ind products and components containing same, that infringe one or more asserted claims
)f the '915, '381, '859, '129 and '564 patents; and
(e)

Grant such other and further relief as the Commission deems just

ind proper based on the facts determined by the investigation and the authority of the
ommission.
)ated: July

g

Respectfully Submitted

, 2011

es Adduci II
V.
Jonathan J. Engler
David H. Hollander, Jr.
Rowan E. Morris
Adduci Mastriani & Schaumberg LLP
1200 Seventeenth Street, N.W., Fifth Floor
Washington, DC 20036
Tel: [phone]
Fax: [phone]

24

Mark D. Fowler
Aaron Wainscoat
Erik Fuehrer
DLA Piper LLP (US)
2000 University Avenue
East Palo Alto, CA. 94303
Tel: [phone]
Fax: [phone]
Tiffany Miller
Robert Williams
DLA Piper LLP (US)
401 B Street, Suite 1700
San Diego, CA 92101
Tel: [phone]
Fax: [phone]
David Alberti
Elizabeth Day
Clayton Thompson
Yakov Zolotorev
Feinberg, Day, Alberti & Thompson, LL
401 Florence Street, Suite 200
Palo Alto, CA 94301
George Riley
O'Melveny & Meyers LLP
Two Embarcadero Center, 28th Floor
San Francisco, CA 94111
Jon Yuen Chow
O'Melveny & Meyers LLP
400 South Hope Street
Los Angeles, CA 90071
Kenneth H. Bridges
Michael T. Pieja
James Shimota
Bridges Mavrakakis LLP
3000 El Camino Real
One Palo Alto Square
Palo Alto, CA 94306

kpp1e700011-12.doc

25

VERIFICATION OF COMPLAINT

I, Boris Teksler, declare, in accordance with 19 C.F.R. §§ 210.4 and 210.12(a),
under penalty of perjury, that the following statements are true:
1.

I am currently Apple's Director of Patent Licensing and Strategy. I am

duly authorized by Apple to verify the foregoing Complaint.
2.

To the best of my knowledge, information, and belief, formed after a

reasonable inquiry, the allegations of the Complaint are well grounded in fact and have
evidentiary support, or, where specifically identified, are likely to have evidentiary
support after a reasonable opportunity for further investigation or discovery;
3.

To the best of my knowledge, information, and belief, formed after a

reasonable inquiry, the claims and other legal contentions set forth in the Complaint are
warranted by existing law or by a good faith, non-frivolous argument for extension,
modification, or reversal of existing law, or by the establishment of new law; and
4.

The Complaint is not being filed for any improper purpose, such as to

harass or to cause unnecessary delay or needless increase in the cost of litigation.

Executed this day of June, 2011
Boris Teksler
Apple Inc.

26