Case 1:17-cv-02869-MSK-STV Document 1 Filed 11/30/17 USDC Colorado Page 1 of 63
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF COLORADO
`
`REALTIME ADAPTIVE STREAMING LLC,
`
`
`
`Plaintiff,
`
` v.
`
`APPLE INC.
`
`Defendant.
`
`Case No. ___________________
`
`
`
`JURY TRIAL DEMANDED
`
`
`
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`This is an action for patent infringement arising under the Patent Laws of the
`
`United States of America, 35 U.S.C. § 1 et seq. in which Plaintiff Realtime Adaptive
`
`Streaming LLC (“Plaintiff” or “Realtime”) makes the following allegations against
`
`Defendant Apple Inc. (“Defendant” or “Apple”).
`
`PARTIES
`
`1.
`
`Realtime is a New York limited liability company. Realtime has a place of
`
`business at 1828 E.S.E. Loop 323, Tyler, Texas 75701. Realtime has researched and
`
`developed specific solutions for data compression. As recognition of its innovations
`
`rooted in this technological field, Realtime holds multiple United States patents and
`
`pending patent applications.
`
`2.
`
`On information and belief, Defendant Apple is a California corporation
`
`with its principal place of business in Cupertino, California. Apple has several regular
`
`and established places of business in this District, including, e.g., at 3000 East 1st
`
`Avenue, Denver, Colorado 80206 and 1755 29th Street, Boulder, Colorado 80301. Apple
`
`offers its products and/or services, including those accused herein of infringement, to
`
`customers and potential customers located in Colorado and in this District. Apple may be
`
`served with process through its registered agent for service at The Corporation Company,
`
`7700 E. Arapahoe Road, Suite 220, Centennial, Colorado 80112-1268.
`
`
`
`1
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`

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`Case 1:17-cv-02869-MSK-STV Document 1 Filed 11/30/17 USDC Colorado Page 2 of 63
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`JURISDICTION AND VENUE
`
`3.
`
`This action arises under the patent laws of the United States, Title 35 of
`
`the United States Code. This Court has original subject matter jurisdiction pursuant to 28
`
`U.S.C. §§ 1331 and 1338(a).
`
`4.
`
`This Court has personal jurisdiction over Defendant Apple in this action
`
`because Apple has committed acts within the District of Colorado giving rise to this
`
`action and has established minimum contacts with this forum such that the exercise of
`
`jurisdiction over Apple would not offend traditional notions of fair play and substantial
`
`justice. Defendant Apple has committed and continues to commit acts of infringement in
`
`this District by, among other things, offering to sell and selling products and/or services
`
`that infringe the asserted patents.
`
`5.
`
`Venue is proper in this district, e.g., under 28 U.S.C. § 1400(b). Apple is
`
`registered to do business in Colorado, and upon information and belief, Apple has
`
`transacted business in the District of Colorado and has committed acts of direct and
`
`indirect infringement in the District of Colorado. Apple has regular and established
`
`place(s) of business in this District, as set forth above.
`
`
` THE PATENTS-IN-SUIT
`
`6.
`
`This action arises under 35 U.S.C. § 271 for Apple’s infringement of
`
`Realtime’s United States Patent Nos. 7,386,046 (the “’046 patent”), 8,634,462 (the
`
`“’462 patent”), 8,929,442 (the “’442 patent”), 8,934,535 (the “’535 patent”), 9,578,298
`
`(the “’298 patent”), and 9,769,477 (the “’477 patent”) (the “Patents-In-Suit”).
`
`7.
`
`The '046 patent, titled “Bandwidth Sensitive Data Compression and
`
`Decompression,” was duly and properly issued by the United States Patent and
`
`Trademark Office (“USPTO”) on June 10, 2008. A copy of the ’046 patent is attached
`
`hereto as Exhibit A. Realtime is the owner and assignee of the ’046 patent and holds the
`
`
`
`2
`
`

`

`Case 1:17-cv-02869-MSK-STV Document 1 Filed 11/30/17 USDC Colorado Page 3 of 63
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`right to sue for and recover all damages for infringement thereof, including past
`
`infringement.
`
`8.
`
`The ’462 patent, titled “Quantization for Hybrid Video Coding,” was duly
`
`and properly issued by the USPTO on January 21, 2014. A copy of the ’462 patent is
`
`attached hereto as Exhibit B. Realtime is the owner and assignee of the ’462 patent and
`
`holds the right to sue for and recover all damages for infringement thereof, including
`
`past infringement.
`
`9.
`
`The ’442 patent, titled “System and method for video and audio data
`
`distribution,” was duly and legally issued by the USPTO on January 6, 2015. A true and
`
`correct copy of the ‘442 patent is included as Exhibit C. Realtime is the owner and
`
`assignee of the ’442 patent and holds the right to sue for and recover all damages for
`
`infringement thereof, including past infringement.
`
`10.
`
`The ’535 patent, titled “Systems and methods for video and audio data
`
`storage and distribution,” was duly and properly issued by the USPTO on January 13,
`
`2015. A copy of the ’535 patent is attached hereto as Exhibit D. Realtime is the owner
`
`and assignee of the ’535 patent and holds the right to sue for and recover all damages for
`
`infringement thereof, including past infringement.
`
`11.
`
`The
`
`’298 patent,
`
`titled “Method
`
`for Decoding 2D-Compatible
`
`Stereoscopic Video Flows,” was duly and properly issued by the USPTO on February
`
`21, 2017. A copy of the ’298 patent is attached hereto as Exhibit E. Realtime is the
`
`owner and assignee of the ’298 patent and holds the right to sue for and recover all
`
`damages for infringement thereof, including past infringement.
`
`12.
`
`The ’477 patent, titled “Video data compression systems,” was duly and
`
`
`
`3
`
`

`

`Case 1:17-cv-02869-MSK-STV Document 1 Filed 11/30/17 USDC Colorado Page 4 of 63
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`properly issued by the USPTO on September 19, 2017. A copy of the ’477 patent is
`
`attached hereto as Exhibit G. Realtime is the owner and assignee of the ’477 patent and
`
`holds the right to sue for and recover all damages for infringement thereof, including
`
`past infringement.
`
`COUNT I
`
`INFRINGEMENT OF U.S. PATENT NO. 7,386,046
`Plaintiff
`re-alleges and
`incorporates by
`reference
`
`13.
`
`the
`
`foregoing
`
`paragraphs, as if fully set forth herein.
`
`14.
`
`On information and belief, Apple has made, used, offered for sale, sold
`
`and/or imported into the United States Apple products that infringe the ‘046 patent, and
`
`continues to do so. By way of illustrative example, these infringing products include,
`
`without limitation, Apple’s streaming products/services (e.g., Apple’s Internet Services),
`
`such as, e.g., iTunes Store, Apple Music, and devices with iOS 3.0 and later and
`
`computers with Safari 4.0 and later (e.g., iPhone, iPad, Apple TV, Mac, iPod, Apple
`
`Watch, etc.), and all versions and variations thereof since the issuance of the ‘046 patent
`
`(“Accused Instrumentalities”).
`
`15.
`
`On information and belief, Apple has directly infringed and continues to
`
`infringe the ‘046 patent, for example, through its sale, offer for sale, importation, use
`
`and testing of the Accused Instrumentalities, which practices the system claimed by
`
`Claim 40 of the ‘046 patent, namely, a system, comprising: a data compression system
`
`for compressing and decompressing data input; a plurality of compression routines
`
`selectively utilized by the data compression system, wherein a first one of the plurality
`
`of compression routines includes a first compression algorithm and a second one of the
`
`
`
`4
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`

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`Case 1:17-cv-02869-MSK-STV Document 1 Filed 11/30/17 USDC Colorado Page 5 of 63
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`plurality of compression routines includes a second compression algorithm; and a
`
`controller for tracking throughput and generating a control signal to select a compression
`
`routine based on the throughput, wherein said tracking throughput comprises tracking a
`
`number of pending access requests to a storage device; and wherein when the controller
`
`determines that the throughput falls below a predetermined throughput threshold, the
`
`controller commands the data compression engine to use one of the plurality of
`
`compression routines to provide a faster rate of compression so as to increase the
`
`throughput. Upon information and belief, Apple uses the Accused Instrumentalities to
`
`practice infringing methods for its own internal non-testing business purposes, while
`
`testing the Accused Instrumentalities, and while providing technical support and repair
`
`services for the Accused Instrumentalities to Apple’s customers.
`
`16.
`
`For example,
`
`the Accused
`
`Instrumentalities utilize H.264 video
`
`compression standard, as well as Apple’s HTTP Live Streaming (HLS) technology. HLS
`
`“protocol specification does not limit the encoder selection. However, the current Apple
`
`implementation should interoperate with encoders that produce MPEG-2 Transport
`
`Streams containing H.264 video and AAC audio (HE-AAC or AAC-LC).” See,
`
`e.g., https://developer.apple.com/library/content/documentation/NetworkingInternet/Con
`
`ceptual/StreamingMediaGuide/FrequentlyAskedQuestions/FrequentlyAskedQuestions.ht
`
`ml. As another example, Apple also states: “HTTP Live Streaming supports switching
`
`between streams dynamically if the available bandwidth changes. The client software
`
`uses heuristics to determine appropriate times to switch between the alternates.
`
`Currently,
`
`these heuristics are based on recent
`
`trends
`
`in measured network
`
`throughput.” https://developer.apple.com/library/content/documentation/NetworkingInt
`
`
`
`5
`
`

`

`Case 1:17-cv-02869-MSK-STV Document 1 Filed 11/30/17 USDC Colorado Page 6 of 63
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`ernet/Conceptual/StreamingMediaGuide/UsingHTTPLiveStreaming/UsingHTTPLiveStr
`
`eaming.html. Moreover, “The current implementation of the client observes the effective
`
`bandwidth while playing a stream. If a higher-quality stream is available and the
`
`bandwidth appears sufficient to support it, the client switches to a higher quality. If a
`
`lower-quality stream is available and the current bandwidth appears insufficient to
`
`support
`
`the
`
`current
`
`stream,
`
`the
`
`client
`
`switches
`
`to
`
`a
`
`lower
`
`quality.” https://developer.apple.com/library/content/documentation/NetworkingInternet
`
`/Conceptual/StreamingMediaGuide/FrequentlyAskedQuestions/FrequentlyAskedQuesti
`
`ons.html.
`
`17.
`
`The Accused Instrumentalities include a data compression system for
`
`compressing and decompressing data
`
`input.
`
` For example, Apple’s streaming
`
`products/services utilizes H.264 compression standard. As another example, Apple’s
`
`devices with iOS 3.0 and later and computers with Safari 4.0 and later utilizes H.264
`
`compression
`
`standard.
`
`
`
`See,
`
`e.g., https://support.apple.com/kb/PH22593?viewlocale=en_US&locale=en_US; https://d
`
`eveloper.apple.com/library/content/documentation/AudioVideo/Conceptual/AVFoundati
`
`onPG/Articles/04_MediaCapture.html; https://www.apple.com/uk/shop/question/answers
`
`/readonly/what-format-does-it-record-
`
`video/QTDATXXC9UYK4PFPY; https://stackoverflow.com/questions/11501932/availab
`
`le-video-recording-formats-for-
`
`ios; https://apple.stackexchange.com/questions/65249/what-format-and-encoding-does-
`
`iphone-save-video-clips-in.
`
`18.
`
`The Accused Instrumentalities include a plurality of a plurality of
`
`compression routines selectively utilized by the data compression system, wherein a first
`
`one of the plurality of compression routines includes a first compression algorithm and a
`
`
`
`6
`
`

`

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`second one of the plurality of compression routines includes a second compression
`
`algorithm. For example, the Accused Instrumentalities utilize H.264, which include, e.g.,
`
`Context-Adaptive Variable Length Coding (“CAVLC”) entropy encoder and Context-
`
`Adaptive Binary Arithmetic Coding (“CABAC”) entropy encoder. H.264 provides for
`
`multiple different ranges of parameters (e.g., bitrate, resolution parameters, etc.), each
`
`included
`
`in
`
`the “profiles” and “levels” defined by
`
`the H.264
`
`standard.
`
`See http://www.axis.com/files/whitepaper/wp_h264_31669_en_0803_lo.pdf at 5:
`
`See https://en.wikipedia.org/wiki/H.264/MPEG-4_AVC:
`
`
`
`
`
`7
`
`

`

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`
`A video data block is organized by the group of pictures (GOP) structure,
`
`19.
`
`which
`
`is a “collection of successive pictures within a coded video stream.”
`
`See https://en.wikipedia.org/wiki/Group_of_pictures. A GOP structure can contain intra
`
`coded pictures (I picture or I frame), predictive coded pictures (P picture or P frame),
`
`bipredictive coded pictures (B picture or B frame) and direct coded pictures (D picture or
`
`D frames, or DC direct coded pictures which are used only in MPEG-1 video).
`
`See https://en.wikipedia.org/wiki/Video_compression_picture_types (for descriptions of I
`
`frames, P frames and B frames); https://en.wikipedia.org/wiki/MPEG-1#D-frames (for
`
`descriptions of D frames). Thus, at least a portion of a video data block would also make
`
`up a GOP structure and could also contain I frames, P frames, B frames and/or D frames.
`
`The GOP structure also reflects the size of a video data block, and the GOP structure can
`
`be controlled and used to fine-tune other parameters (e.g. bitrate, max video bitrate and
`
`resolution parameters) or even be considered as a parameter by itself.
`
`20.
`
`Based on the bitrate and/or resolution parameter identified (e.g. bitrate,
`
`max video bitrate, resolution, GOP structure or frame type within a GOP structure), any
`
`
`
`8
`
`

`

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`H.264-compliant system such as the Accused Instrumentalities would determine which
`
`profile (e.g., “baseline,” “extended,” “main”, or “high”) corresponds with that parameter,
`
`then select between at least two asymmetric compressors. If baseline or extended is the
`
`corresponding profile, then the system will select a Context-Adaptive Variable Length
`
`Coding (“CAVLC”) entropy encoder. If main or high is the corresponding profile, then
`
`the system will select a Context-Adaptive Binary Arithmetic Coding (“CABAC”) entropy
`
`encoder. See https://sonnati.wordpress.com/2007/10/29/how-h-264-works-part-ii/
`
`
`
`9
`
`
`
`

`

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` See http://web.cs.ucla.edu/classes/fall03/cs218/paper/H.264_MPEG4_Tutorial.pdf at 7:
`
`
`Moreover, the H.264 Standard requires a bit-flag descriptor, which is set to determine the
`
`correct decoder for the corresponding encoder. As shown below, if the flag = 0, then
`
`CAVLC must have been selected as the encoder; if the flag = 1, then CABAC must have
`
`been selected as the encoder. See https://www.itu.int/rec/dologin_pub.asp?lang=e&id=T-
`
`REC-H.264-201304-S!!PDF-E&type=items (Rec. ITU-T H.264 (04/2013)) at 80:
`
`
`After its selection, the asymmetric compressor (CAVLC or CABAC) will
`
`21.
`
`compress the video data to provide various compressed data blocks, which can be
`
`organized
`
`in
`
`a
`
`GOP
`
`structure
`
`(see
`
`above).
`
`See https://sonnati.wordpress.com/2007/10/29/how-h-264-works-part-ii/:
`
`
`
`10
`
`

`

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`See http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.602.1581&rep=rep1&type
`
`
`
`=pdf at 13:
`
`
`See http://www.ijera.com/papers/Vol3_issue4/BM34399403.pdf at 2:
`
`
`
`11
`
`

`

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`
` The Accused Instrumentalities includes a controller for tracking
`
`22.
`
`throughput and generating a control signal to select a compression routine based on the
`
`throughput, wherein said tracking throughput comprises tracking a number of pending
`
`access requests to a storage device, and a controller where, when the controller
`
`determines that the throughput falls below a predetermined throughput threshold, the
`
`controller commands the data compression engine to use one of the plurality of
`
`compression routines to provide a faster rate of compression so as to increase the
`
`
`
`12
`
`

`

`Case 1:17-cv-02869-MSK-STV Document 1 Filed 11/30/17 USDC Colorado Page 13 of 63
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`throughput. For example, “HTTP Live Streaming supports switching between streams
`
`dynamically if the available bandwidth changes. The client software uses heuristics to
`
`determine appropriate times to switch between the alternates. Currently, these heuristics
`
`are based on recent trends in measured network
`
`throughput.” https://developer.apple.com/library/content/documentation/NetworkingInte
`
`rnet/Conceptual/StreamingMediaGuide/UsingHTTPLiveStreaming/UsingHTTPLiveStrea
`
`ming.html. “The current implementation of the client observes the effective bandwidth
`
`while playing a stream. If a higher-quality stream is available and the bandwidth appears
`
`sufficient to support it, the client switches to a higher quality. If a lower-quality stream is
`
`available and the current bandwidth appears insufficient to support the current stream, the
`
`client switches to a lower
`
`quality.” https://developer.apple.com/library/content/documentation/NetworkingInternet/
`
`Conceptual/StreamingMediaGuide/FrequentlyAskedQuestions/FrequentlyAskedQuestion
`
`s.html.
`
`23.
`
`On information and belief, Apple also directly infringes and continues to
`
`infringe other claims of the ‘046 patent, for similar reasons as explained above with
`
`respect to Claim 40 of the ‘046 patent.
`
`24.
`
`On information and belief, all of the Accused Instrumentalities perform
`
`the claimed methods in substantially the same way, e.g., in the manner specified in the
`
`H.264 standard.
`
`25.
`
`On information and belief, use of the Accused Instrumentalities in their
`
`ordinary and customary fashion results in infringement of the methods claimed by the
`
`‘046 patent.
`
`26.
`
`On information and belief, Apple has had knowledge of the ‘046 patent
`
`since at least the filing of this Complaint or shortly thereafter, and on information and
`
`belief, Apple knew of the ‘046 patent and knew of its infringement, including by way of
`
`this lawsuit. By the time of trial, Apple will have known and intended (since receiving
`
`
`
`13
`
`

`

`Case 1:17-cv-02869-MSK-STV Document 1 Filed 11/30/17 USDC Colorado Page 14 of 63
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`such notice) that its continued actions would actively induce and contribute to the
`
`infringement of the claims of the ‘046 patent.
`
`27.
`
`Upon information and belief, Apple’s affirmative acts of making, using,
`
`and selling the Accused Instrumentalities, and providing implementation services and
`
`technical support to users of the Accused Instrumentalities, including, e.g., through
`
`training, demonstrations, brochures, installation and user guides, have induced and
`
`continue to induce users of the Accused Instrumentalities to use them in their normal and
`
`customary way to infringe the ‘046 patent. For example, Apple adopted H.264 as its
`
`video codec in its iOS devices. As another example, Apple states “It is strongly
`
`recommended that you use HTTP Live Streaming to deliver video to all cellular-capable
`
`devices, even for video on demand, so that your viewers have the best experience
`
`possible
`
`under
`
`changing
`
`conditions.” https://developer.apple.com/library/content/documentation/NetworkingInter
`
`net/Conceptual/StreamingMediaGuide/UsingHTTPLiveStreaming/UsingHTTPLiveStrea
`
`ming.html;
`
`see
`
`also https://developer.apple.com/library/content/documentation/NetworkingInternet/Conc
`
`eptual/StreamingMediaGuide/UsingHTTPLiveStreaming/UsingHTTPLiveStreaming.htm
`
`l#//apple_ref/doc/uid/TP40008332-CH102-SW5 (“If your app delivers video over
`
`cellular networks, and the video exceeds either 10 minutes duration or 5 MB of data in a
`
`five minute period, you are required to use HTTP Live Streaming.”). For similar reasons,
`
`Apple also induces its customers to use the Accused Instrumentalities to infringe other
`
`claims of the ‘046 patent. Apple specifically intended and was aware that these normal
`
`and customary activities would infringe the ‘046 patent. Apple performed the acts that
`
`constitute induced infringement, and would induce actual infringement, with the
`
`knowledge of the ‘046 patent and with the knowledge, or willful blindness to the
`
`probability, that the induced acts would constitute infringement. On information and
`
`belief, Apple engaged in such inducement to promote the sales of the Accused
`
`
`
`14
`
`

`

`Case 1:17-cv-02869-MSK-STV Document 1 Filed 11/30/17 USDC Colorado Page 15 of 63
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`Instrumentalities. Accordingly, Apple has induced and continue to induce users of the
`
`Accused Instrumentalities to use the Accused Instrumentalities in their ordinary and
`
`customary way to infringe the ‘046 patent, knowing that such use constitutes
`
`infringement of the ‘046 patent. Accordingly, Apple has been, and currently is, inducing
`
`infringement of the ‘046 patent, in violation of 35 U.S.C. § 271(b).
`
`28.
`
`Apple has also infringed, and continues to infringe, claims of the ‘046
`
`patent by offering to commercially distribute, commercially distributing, making, and/or
`
`importing the Accused Instrumentalities, which are used in practicing the process, or
`
`using the systems, of the ‘046 patent, and constitute a material part of the invention.
`
`Apple knows the components in the Accused Instrumentalities to be especially made or
`
`especially adapted for use in infringement of the ‘046 patent, not a staple article, and not
`
`a commodity of commerce suitable for substantial noninfringing use. Accordingly,
`
`Apple has been, and currently is, contributorily infringing the ‘046 patent, in violation of
`
`35 U.S.C. § 271(c).
`
`29.
`
`By making, using, offering for sale, selling and/or importing into the
`
`United States the Accused Instrumentalities, and touting the benefits of using the
`
`Accused Instrumentalities’ compression features, Apple has injured Realtime and is
`
`liable to Realtime for infringement of the ‘046 patent pursuant to 35 U.S.C. § 271.
`
`30.
`
`As a result of Apple’s infringement of the ‘046 patent, Plaintiff Realtime
`
`is entitled to monetary damages in an amount adequate to compensate for Apple’s
`
`infringement, but in no event less than a reasonable royalty for the use made of the
`
`invention by Apple, together with interest and costs as fixed by the Court.
`
`
`
`COUNT II
`
`INFRINGEMENT OF U.S. PATENT NO. 8,634,462
`
`31.
`
`Plaintiff re-alleges and incorporates by reference the foregoing paragraphs,
`
`as if fully set forth herein.
`
`
`
`15
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`

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`32.
`
`On information and belief, Apple has made, used, offered for sale, sold
`
`and/or imported into the United States Apple products that infringe the ‘462 patent, and
`
`continues to do so. By way of illustrative example, these infringing products include,
`
`without limitation, Apple’s products and services that implement the High Efficiency
`
`Video Coding (HEVC; also known as H.265) standard (e.g., iPhone, iPad, Apple TV,
`
`Mac, iPod, Apple Watch, iMovie, etc.), macOS High Sierra, iOS 11, Quicktime, and all
`
`versions and variations thereof since the issuance of the ‘462 patent (“Accused
`
`Instrumentalities”).
`
`33.
`
`On information and belief, Apple has directly infringed and continues to
`
`infringe the ‘462 patent, for example, through its sale, offer for sale, importation, use and
`
`testing of the Accused Instrumentalities, which practices the method claimed by Claim 1
`
`of the ‘462 patent, namely, a method for coding a video signal using hybrid coding,
`
`comprising: reducing temporal redundancy by block based motion compensated
`
`prediction in order to establish a prediction error signal; performing quantization on
`
`samples of the prediction error signal or on coefficients resulting from a transformation
`
`of the prediction error signal into the frequency domain to obtain quantized values,
`
`representing quantized samples or quantized coefficients respectively, wherein the
`
`prediction error signal includes a plurality of subblocks each including a plurality of
`
`quantized values; calculating a first quantization efficiency for the quantized values of at
`
`least one subblock of the plurality of subblocks; setting the quantized values of the at
`
`least one subblock to all zeroes; calculating a second quantization efficiency for the at
`
`least one subblock while all of the quantized values are zeroes; selecting which of the
`
`first and second quantization efficiencies is a higher efficiency; and selecting, for further
`
`proceeding, the at least one subblock with the quantized values prior to setting the
`
`quantized values of the at least one subblock to all zeroes if the first quantization
`
`efficiency is higher and selecting the at least one subblock with the quantized values set
`
`to zero, for further proceeding, if the second quantization efficiency is higher. Upon
`
`
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`16
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`Case 1:17-cv-02869-MSK-STV Document 1 Filed 11/30/17 USDC Colorado Page 17 of 63
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`information and belief, Apple uses the Accused Instrumentalities to practice infringing
`
`methods for its own internal non-testing business purposes, while testing the Accused
`
`Instrumentalities, and while providing technical support and repair services for the
`
`Accused Instrumentalities to Apple’s customers.
`
`For example, the Accused Instrumentalities utilize the HEVC standard.
`
`34.
`See, e.g., http://appleinsider.com/articles/17/09/25/apple-updates-imovie-for-mac-with-
`
`hevc-support (“Apple has updated its consumer level video editing tool, iMovie, with
`
`support for High Efficiency Video Encoding
`
`[HEVC]”); https://www.macrumors.com/guide/hevc-video-macos-high-sierra-ios-11/
`
`(“Apple is supporting a new format called
`
`HEVC”); https://www.apple.com/newsroom/2017/09/macos-high-sierra-now-available-
`
`as-a-free-update/ (The “macOS High Sierra” has “support for High-Efficiency Video
`
`Coding (HEVC) [and] brings stunning 4K video at lower file
`
`sizes”); https://9to5mac.com/2017/08/15/4k-video-hevc-codec-file-size/ (“Upcoming
`
`support of the HEVC (High Efficiency Video Coding) codec in macOS High Sierra and
`
`iOS 11 will help to improve file efficiency of high quality video files…Already users
`
`running the beta version of macOS High Sierra are taking advantage of HEVC encoding
`
`(also known as H.265) via QuickTime and are reporting positive
`
`results.”); https://www.digitaltrends.com/photography/heif-and-hevc-ios-11-macos-high-
`
`sierra/ (“But one change you may not be aware of is Apple’s adoption of the…HEVC
`
`format”); https://www.macworld.com/article/3226490/ios/ios-11-hevc-heif-and-what-
`
`you-need-to-know-about-these-new-video-and-photo-formats.html (“For video, Apple is
`
`using the High Efficiency Video Codec, or HEVC.”); https://www.imore.com/how-hevc-
`
`and-heif-work-high-sierra-heres-what-you-need-know (“HEVC’s other name is H.265,
`
`but Apple is going with HEVC”); https://devstreaming-
`
`cdn.apple.com/videos/wwdc/2017/503i6plfvfi7o3222/503/503_introducing_heif_and_he
`
`vc.pdf; https://www.cnet.com/news/apple-answers-iphone-storage-woes-with-smaller-
`
`
`
`17
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`Case 1:17-cv-02869-MSK-STV Document 1 Filed 11/30/17 USDC Colorado Page 18 of 63
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`photos-videos/; http://appleinsider.com/articles/17/06/12/inside-high-sierra-hevc-
`
`promises-to-keep-quality-high-file-sizes-low-for-videos-
`
`photos; http://blog.streamingmedia.com/2017/06/apples-hevc-news-is-a-bigdeal.html
`
`35.
`
`The Accused Instrumentalities performs a method for coding a video
`
`signal using hybrid coding. For example, the aim of the coding process is the production
`
`of a bitstream, as defined in definition 3.12 of the ITU-T H.265 Series H: Audiovisual
`
`and Multimedia Systems, “Infrastructure of audiovisual services – Coding of moving
`
`video” High efficiency video coding (“HEVC Spec”): “bitstream: A sequence of bits, in
`
`the form of a NAL unit stream or a byte stream, that forms the representation of coded
`
`pictures and associated data forming one or more coded video sequences (CVSs).” See
`
`also, e.g., “Overview of the High Efficiency Video Coding (HEVC) Standard” by Gary J.
`
`Sullivan, Fellow, IEEE, Jens-Rainer Ohm, Member, IEEE, Woo-Jin Han, Member, IEEE,
`
`and Thomas Wiegand, Fellow, IEEE, published in IEEE TRANSACTIONS ON
`
`CIRCUITS AND SYSTEMS FOR VIDEO TECHNOLOGY, VOL. 22, NO. 12,
`
`DECEMBER 2012 (“IEEE HEVC) (“The video coding layer of HEVC employs the same
`
`hybrid approach (inter-/intrapicture prediction and 2-D transform coding) used in all
`
`video compression standards since H.261”). See also, e.g., HEVC Spec at 0.7 “Overview
`
`of the design characteristics.”
`
`36.
`
`The Accused Instrumentalities reduce temporal redundancy by block
`
`based motion compensated prediction in order to establish a prediction error signal. For
`
`example, clause 8.5.3 Decoding process for prediction units in inter prediction mode and
`
`the subclauses thereof of the HEVC Spec describe the block based motion compensation
`
`techniques used in the decoding process. See also, e.g., IEEE HEVC at 1651-1652 6)
`
`Motion compensation: Quarter-sample precision is used for the MVs, and 7-tap or 8-tap
`
`filters are used for interpolation of fractional-sample positions (compared to six-tap
`
`filtering of half-sample positions followed by linear interpolation for quarter-sample
`
`positions in H.264/MPEG-4 AVC). Similar to H.264/MPEG-4 AVC, multiple reference
`
`
`
`18
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`

`

`Case 1:17-cv-02869-MSK-STV Document 1 Filed 11/30/17 USDC Colorado Page 19 of 63
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`pictures are used. For each PB, either one or two motion vectors can be transmitted,
`
`resulting either in unipredictive or bipredictive coding, respectively. As in H.264/MPEG-
`
`4 AVC, a scaling and offset operation may be applied to the prediction signal(s) in a
`
`manner known as weighted prediction.”).
`
`37.
`
`The Accused Instrumentalities perform quantization on samples of the
`
`prediction error signal or on coefficients resulting from a transformation of the prediction
`
`error signal into the frequency domain to obtain quantized values, representing quantized
`
`samples or quantized coefficients respectively. For example, the quantization parameter
`
`and the scaling (inverse quantization) are defined in definitions 3.112 (page 10) and
`
`3.131 (page 11), respectively, the usage of the scaling process in the decoding being
`
`described in clause and 8.6 Scaling, transformation and array construction process prior
`
`to deblocking filter process of the HEVC Spec. See also, e.g., IEEE HEVC at 1652 (“8)
`
`Quantization control: As in H.264/MPEG-4 AVC, uniform reconstruction quantization
`
`(URQ) is used in HEVC, with quantization scaling matrices supported for the various
`
`transform block sizes.”).
`
`38.
`
`The Accused Instrumentalities perform a method wherein the prediction
`
`error signal includes a plurality of subblocks each including a plurality of quantized
`
`values. For example, the quantized samples or transform coefficients from the subblock
`
`are scaled and transformed as described in above mentioned clause 8.6 of the HEVC
`
`Spec. See also, e.g., IEEE HEVC at 1652 (“Prediction units and prediction blocks (PBs):
`
`The decision whether to code a picture area using interpicture or intrapicture prediction is
`
`made at the CU level. A PU partitioning structure has its root at the CU level. Depending
`
`on the basic prediction-type decision, the luma and chroma CBs can then be further split
`
`in size and predicted from luma and chroma prediction blocks (PBs). HEVC supports
`
`variable PB sizes from 64×64 down to 4×4 samples.”).
`
`39.
`
`The Accused Instrumentalities perform a method of calculating a first
`
`quantization efficiency for the quantized values of at least one subblock of the plurality of
`
`
`
`19
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`Case 1:17-cv-02869-MSK-STV Document 1 Filed 11/30/17 USDC Colorado Page 20 of 63
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`subblocks; setting the quantized values of the at least one subblock to all zeroes;
`
`calculating a second quantization efficiency for the at least one subblock while all of the
`
`quantized values are zeroes; selecting which of the first and second quantization
`
`efficiencies is a higher efficiency; and selecting, for further proceeding, the at least one
`
`subblock with the quantized values prior to setting the quantized values of the at least one
`
`subblock to all zeroes if the first quantization efficiency is higher and selecting the at
`
`least one subblock with the quantized values set to zero, for further proceeding, if the
`
`second quantization efficiency is higher. For example, the bitstream resulting from the
`
`encoding as described in this last item of the claim contains all the relevan