Case 1:17-cv-00196-VAC-CJB Document 1 Filed 02/24/17 Page 1 of 46 PageID #: 1
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`IN THE UNITED STATES DISTRICT COURT
`DISTRICT OF DELAWARE
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`C.A. No. __________
`JURY TRIAL DEMANDED
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`Inventergy, Inc.,
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`v.
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`Apple Inc.,
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`Plaintiff,
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`Defendant.
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`COMPLAINT FOR PATENT INFRINGEMENT
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`Plaintiff Inventergy, Inc. (“Inventergy”) files this Complaint against Defendant
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`Apple Inc. (“Apple” or “Defendant”). Inventergy alleges as follows:
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`NATURE OF THE ACTION
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`1.
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`Inventergy brings this patent infringement action to protect its intellectual
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`property and stop Defendant from continuing its wrongful and unlicensed use of
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`Inventergy’s patented technologies within and in conjunction with Defendant’s mobile
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`phones, and tablets, among other devices.
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`2.
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`Inventergy is an investment and licensing company that helps industry
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`leaders protect their most valuable intellectual property. Inventergy has been
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`repeatedly recognized for its ability to create value through its strategic insight into the
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`development, creation, and management of intellectual property.
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`3.
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`Inventergy owns a robust patent portfolio comprising hundreds of patents
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`embodying decades of innovation, investment and effort by numerous companies,
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`inventors, and engineers. Inventergy encourages innovation through proper channels
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`IN THE UNITED STATES DISTRICT COURT
`DISTRICT OF DELAWARE
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`
`C.A. No. __________
`JURY TRIAL DEMANDED
`
`
`
`
`
`
`Inventergy, Inc.,
`
`
`v.
`
`Apple Inc.,
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`
`
`Plaintiff,
`
`Defendant.
`
`COMPLAINT FOR PATENT INFRINGEMENT
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`Plaintiff Inventergy, Inc. (“Inventergy”) files this Complaint against Defendant
`
`Apple Inc. (“Apple” or “Defendant”). Inventergy alleges as follows:
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`NATURE OF THE ACTION
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`1.
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`Inventergy brings this patent infringement action to protect its intellectual
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`property and stop Defendant from continuing its wrongful and unlicensed use of
`
`Inventergy’s patented technologies within and in conjunction with Defendant’s mobile
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`phones, and tablets, among other devices.
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`2.
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`Inventergy is an investment and licensing company that helps industry
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`leaders protect their most valuable intellectual property. Inventergy has been
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`repeatedly recognized for its ability to create value through its strategic insight into the
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`development, creation, and management of intellectual property.
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`3.
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`Inventergy owns a robust patent portfolio comprising hundreds of patents
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`embodying decades of innovation, investment and effort by numerous companies,
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`inventors, and engineers. Inventergy encourages innovation through proper channels
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`Case 1:17-cv-00196-VAC-CJB Document 1 Filed 02/24/17 Page 2 of 46 PageID #: 2
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`by licensing its intellectual property within the marketplace, but enforces its patent
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`rights when necessary to protect its own investment, along with the hard work of the
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`inventors of that intellectual property, from unauthorized use.
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`4.
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`Inventergy’s patent portfolio includes patents related to mobile
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`telecommunications and wireless technology, including, but not limited to
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`EDGE/3G/LTE user devices, routers, infrastructure, telecommunications management
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`services, and IMS/VoIP core networks.
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`5. Defendant provides certain products and services, including but not limited
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`to its mobile phones, and tablets, among other devices. Products sold by Defendant
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`include, but are not limited to, the devices listed in Appendix A. Defendant’s products
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`and related services make use of Inventergy’s patented technology and infringe the
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`following United States patents (“the Asserted Patents”):
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`a. U.S. Patent No. 6,466,563 (“the ’563 Patent”), titled “CDMA Mobile
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`Station and CDMA Transmission Method” (Exhibit A attached hereto);
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`b. U.S. Patent No. 6,611,676 (“the ’676 Patent”), titled “Radio
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`Communication Apparatus and Transmission Rate Control Method”
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`(Exhibit B attached hereto);
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`c. U.S. Patent No. 7,206,587 (“the ’587 Patent”), titled “Communication
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`Terminal Apparatus, Base Station Apparatus, and Radio
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`Communication Method” (Exhibit C attached hereto);
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`d. U.S. Patent No. 7,760,815 (“the ’815 Patent”), titled “Apparatus and
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`Method for Transmission/Reception” (Exhibit D attached hereto);
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`e. U.S. Patent No. 7,764,711 (“the ’711 Patent”), titled “CDMA
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`Transmission Apparatus and CDMA Transmission Method” (Exhibit E
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`attached hereto);
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`f. U.S. Patent No. 7,848,439 (“the ’439 Patent”), titled “Communication
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`Apparatus, Communication System, and Communication Method”
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`(Exhibit F attached hereto); and
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`g. U.S. Patent No. 6,760,590 (“the ’590 Patent”), titled “Communication
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`Terminal Apparatus, Base Station Apparatus, and Radio
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`Communication Method” (Exhibit G attached hereto).
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`6. Accordingly, Inventergy seeks damages in an amount adequate to
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`compensate them for Defendant’s infringement, including trebled damages based on
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`Defendant’s willful infringement of the Asserted Patents, a permanent injunction
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`barring Defendant from continuing to infringe the Asserted Patents, and Inventergy’s
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`attorneys’ fees and costs associated with this action.
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`JURISDICTION AND VENUE
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`7.
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`This lawsuit is a civil action for patent infringement arising under the patent
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`laws of the United States, 35 U.S.C. § 101 et seq. This Court has subject-matter
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`jurisdiction pursuant to 28 U.S.C. §§ 1331 and 1338(a).
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`8.
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`The Court has personal jurisdiction over Defendant because, on information
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`and belief, Defendant Apple Inc. is present within or has minimum contacts within the
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`State of Delaware and the District of Delaware; Defendant has purposefully availed
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`itself of the privileges of conducting business in the State of Delaware and the District of
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`Delaware; Defendant has sought protection and benefit from the laws of the State of
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`Delaware; Defendant regularly conducts business within the State of Delaware and
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`within the District of Delaware; and Inventergy’s cause of action arises directly from
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`Defendant’s business contacts and other activities in the State of Delaware and the
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`District of Delaware.
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`9. More specifically, this Court has personal jurisdiction over Defendant
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`because Defendant directly and/or through intermediaries, ships, distributes, uses,
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`offers for sale, sells, and/or advertises products and services in the United States, the
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`State of Delaware, and the District of Delaware. This Court also has personal
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`jurisdiction over Defendant because Defendant has committed, contributed to, and
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`induced acts of patent infringement and has regularly and systematically conducted
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`and solicited business in this District by and through at least the sales and offers for sale
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`of Defendant’s products and services, and other contractual arrangements with
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`Defendant’s customers, developers, distributors and third-parties using Defendant’s
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`products and services located in and/or doing business in this District.
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`10. Upon information and belief, Defendant provides and/or directs its products
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`and services at customers living in cities served by the United States District Court for
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`the District of Delaware. Defendant owns, manages, and/or operates a retail store
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`within the District of Delaware that sells Defendant’s products to customers in this
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`District. By way of example, employees of the Apple store located at 125 Stanton
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`Christiana Road, Newark, DE 19702, have publicly stated: “We sell more iPhones than
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`anyone.”1
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`11. Venue is proper in this District under 28 U.S.C. §§ 1391 and 1400(b). On
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`information and belief, Defendant has transacted business in this District, and has
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`directly committed acts of patent infringement in this District.
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`THE PARTIES
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`A. Plaintiff Inventergy
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`12.
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`Inventergy is a Delaware corporation whose principal place of business is
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`located in Campbell, California.
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`13.
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`Inventergy was founded by Joe Beyers—the former head of intellectual
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`property and global strategy at Hewlett-Packard. Throughout his career, Mr. Beyers has
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`worked extensively with innovative and emerging technologies, including through the
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`identification, acquisition, and licensing of patented technologies for fair value.
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`Collectively, Inventergy’s management team has more than 100 years of experience
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`working for global companies, handling more than $15 billion in intellectual property
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`and technology transactions worldwide.
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`14.
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`Inventergy owns, through assignments originating with Panasonic
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`Corporation (“Panasonic”), a patent portfolio (“the Panasonic portfolio”) related to
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`mobile telecommunications and wireless technology, including, but not limited to
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`1 ABCNews.com, Apple’s (AAPL) Delaware Store Claims Title for Selling Most iPhones
`(Nov. 12, 2013), available at http://abcnews.go.com/Business/apples-delaware-store-
`claims-title-selling-iphones/story?id=20650009 (last accessed Feb. 24, 2017).
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`EDGE/3G/LTE user devices, equipment, and base stations. The portfolio includes
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`approximately 500 patents including the Asserted Patents. Implementation of
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`mandatory portions of various 3GPP technical specifications, including at least TS
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`25.133, 25.212, 25.213, 25.214, 25.308, 25.319, 25.321, 36.133, 36.211, 36.212, 36.213, 36.300,
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`36.331, 45.001, 45.003, and 45.004, infringe one or more of the Asserted Patents.
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`Inventergy also owns hundreds of other patents related to mobile telecommunications
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`and wireless technology acquired from Huawei Technologies Co., Ltd. (“Huawei”) and
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`Nokia Corporation (“Nokia”).
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`15. The Panasonic portfolio assets cover, among other things, key technologies in
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`EDGE/3G/LTE communications, an industry in which Panasonic has been an early
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`technology innovator and standards setter.
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`B. Defendant Apple
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`16. Defendant Apple Inc. (“Apple”) is a California corporation with its principal
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`place of business at 1 Infinite Loop, Cupertino, California 95014. Defendant Apple has
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`designated The Corporation Trust Company, located at Corporation Trust Center, 1209
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`Orange St., Wilmington, DE 19801, as its registered agent in Delaware.
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`17. Defendant Apple is involved in the development, manufacture, import
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`and/or sale of certain products that make use of Inventergy’s patented technology.
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`Products sold by Apple include, but are not limited to, the devices listed in Appendix
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`A.
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`18. Defendant Apple is one of the largest providers of consumer electronics in
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`the country and one of the world’s largest manufacturers of EDGE/3G/LTE user
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`devices.
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`BACKGROUND OF THE TECHNOLOGY
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`19. The technology at issue in this case pertains generally to the field of mobile
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`telecommunications, including, but not limited to EDGE/3G/LTE user devices.
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`20. Mobile telecommunications devices allow users to make or receive telephone
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`calls and transmit and receive data wirelessly over a wide geographical area.
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`21. Around 1980, first generation (“1G”) mobile phones were introduced to the
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`public. These phones used analog modulation techniques, specifically frequency
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`division multiple access, to transmit voice calls.
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`22.
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`In the 1990s, second generation (“2G”) phones emerged. These phones used
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`digital technology, which permitted more efficient use of the radio spectrum than their
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`1G predecessor. While second generation systems were originally designed only for
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`voice, they were later enhanced to include data transmission, but could only achieve
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`low data rates.
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`23. During the same time period of growth for 2G communications systems,
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`overall use of the Internet also increased. In response to user demand for higher data
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`rates, third generation (“3G”) phones emerged.
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`24. While voice calls traditionally dominated the traffic in mobile
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`communications, the increasing number of mobile devices and the advancement of
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`mobile device technology with increased features and data-hungry applications drove
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`demand for faster and more reliable data transmissions. Data traffic over cellular
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`networks has therefore increased dramatically since the mid to late 2000s.
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`25. Given the increased demand for data, coupled with limited available radio
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`spectrum, mobile communication developers were required to create a standard that,
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`compared with 3G, offered much higher data rates, lower latency, and improved overall
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`user experience. LTE is the result of this development.
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`26. Global standards establish precise specifications for the essential components
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`of telecommunications systems. Global standards are fundamental in allowing products
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`and services from unrelated competitors to be compatible and to operate seamlessly
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`with a telecommunications network. These standards include General Packet Radio
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`Service (“GPRS”), Enhanced Data rates for GSM Evolution (“EDGE”), “Universal
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`Mobile Telecommunications System (“UMTS”), the High Speed Downlink Packet
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`Access (“HSDPA”) and High Speed Uplink Packet Access (“HSUPA”) mobile protocols
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`that combine to form High Speed Packet Access (“HSPA”), and Long-Term Evolution
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`(“LTE”).
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`27. Each of the standards consists of a series of technical specifications (“TS”).
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`The 25, 36, and 45 series of technical specifications cover various aspects of the above
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`wireless technologies, including at least TS 25.133, 25.212, 25.214, 25.302, 25.303, 25.308,
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`25.319, 25.321, 36.211, 36.212, 36.213, 36.300, 45.001, 45.003, and 45.004.
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`NOTICE AND COMPLIANCE WITH FRAND OBLIGATIONS
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`28. On January 16, 2015, Inventergy first contacted Defendant regarding a
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`potential license to a number of patents in Inventergy’s patent portfolio, including the
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`’563, ’676, ’587, ’815, ’439, and ’590 Asserted Patents. Inventergy’s letter to Defendant
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`described the portfolio on 3G (WDCMA) and 4G (LTE) communications and identified
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`34 patent families, consisting of 347 patents, with claims directed to end user devices.
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`Inventergy explained that a number of these patents and patent families related to
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`“WCDMA and LTE standards enabled in Apple Products” and were therefore subject
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`to FRAND licensing commitments. Inventergy further explained that it was “prepared
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`to grant Apple a worldwide, nonexclusive license ” and offered specific royalty rates for
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`Apple’s products. Inventergy also attached a number of claim charts, including charts
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`for the ’590 and ’439 Patents.
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`29.
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`Inventergy contacted Defendant on February 13, 2015 to further discuss the
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`possibility of granting Defendant a worldwide, nonexclusive license for its patent
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`portfolio, including for the Asserted Patents.
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`30.
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`Inventergy sent additional claim charts to Defendant on March 6, 2015,
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`including for the ’563 Patent.
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`31. On March 31, 2015, Inventergy sent Defendant additional details relating to
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`its Panasonic patent portfolio.
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`32. After a period of discussion, the parties’ met on or around August 4, 2015. At
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`that meeting, Inventergy presented Defendant with additional details of Defendant’s
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`infringement of the Asserted Patents, including with claim charts for at least the ’590
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`and ’439 Patents. Inventergy reiterated its proposal for granting Defendant a
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`worldwide, nonexclusive license for its patent portfolio, including for the Asserted
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`Patents.
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`33. On August 25, 2015, Inventergy sent Defendant additional details regarding
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`several of the Asserted Patents, along with several claim charts including an updated
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`chart for the ’563 Patent.
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`34. Throughout the events described above, Inventergy continuously offered
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`Defendant a license to its Panasonic Portfolio, including the Asserted Patents, on
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`FRAND terms. To date, Defendant has refused to enter into such a licensing agreement.
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`35. Throughout the above, Inventergy continued to discuss with Defendant its
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`infringement of the Asserted Patents, and propose a potential patent license to resolve
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`claims relating to infringement.
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`36. Defendant has been on notice of its infringement of at least U.S. Pat. No.
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`6,466,563 since at least January 16, 2015, when Inventergy provided actual notice of the
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`Asserted Patents to Defendant.
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`37. Defendant has been on notice of its infringement of at least U.S. Pat. No.
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`6,611,676 since at least January 16, 2015, when Inventergy provided actual notice of the
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`Asserted Patents to Defendant.
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`38. Defendant has been on notice of its infringement of at least U.S. Pat. No.
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`7,206,587 since at least January 16, 2015, when Inventergy provided actual notice of the
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`Asserted Patents to Defendant.
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`39. Defendant has been on notice of its infringement of at least U.S. Pat. No.
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`7,760,815 since at least January 16, 2015, when Inventergy provided actual notice of the
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`Asserted Patents to Defendant.
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`40. Defendant has been on notice of its infringement of at least U.S. Pat. No.
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`7,848,439 since at least January 16, 2015, when Inventergy provided actual notice of the
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`Asserted Patents to Defendant.
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`41. Defendant has been on notice of its infringement of at least U.S. Pat. No.
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`6,760,590 since at least January 16, 2015, when Inventergy provided actual notice of the
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`Asserted Patents to Defendant.
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`FIRST CLAIM FOR RELIEF
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`Infringement of U.S. Patent No. 6,466,563
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`42.
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`Inventergy incorporates by reference the foregoing paragraphs.
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`43. The ’563 Patent issued on October 15, 2002, and is titled “CDMA Mobile
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`Station and CDMA Transmission Method.”
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`44.
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`Inventergy is the owner by assignment of all rights, title, and interest in the
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`’563 Patent.
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`45. The ’563 Patent is valid and enforceable.
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`46. The ’563 patented technology is directed generally to Code Division Multiple
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`Access (“CDMA”) mobile station apparatuses and CDMA transmission methods. One
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`objective of the invention was to provide a CDMA mobile stations apparatus and
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`CDMA transmission method which can maintain established synchronization with a
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`base station apparatus while reducing power consumption when there is no data to be
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`transmitted. This particular objective can be achieved, among other ways, by controlling
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`the transmission interval of burst data to N slots (N: a natural number) when a certain
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`time has elapsed after the end of data transmission.
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`47. The use of mandatory portions of the HSPA standard infringes the ’563
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`Patent. For example, the 3GPP standard TS 25.308 requires use of discontinuous uplink
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`transmission for transmitting DPCCH in a controllable burst pattern when a user device
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`is not transmitting data (on an Enhanced Dedicated Channel (“E-DCH”)) or High-Speed
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`Dedicated Physical Control Channel (“HS-DPCCH”).
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`48. On information and belief, Defendant’s mobile devices, tablets, and other
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`devices with HSPA capabilities use the mandatory portions of the HSPA standard
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`covered by the ’563 Patent, including but not limited to Claim 12.
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`49. Defendant has infringed, and is currently infringing, the ’563 Patent in
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`violation of 35 U.S.C. § 271(a) by making, using, selling, offering for sale, and/or
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`importing into the United States, without authority, products, equipment, software,
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`and/or services that practice one or more claims of the ’563 Patent, including without
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`limitation Defendant’s mobile devices, tablets, and other devices with HSPA
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`capabilities and comply with HSPA standards, including at least TS 25.308. For
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`instance, these Defendant devices include, but are not limited to, the iPhone 7, iPhone 7
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`Plus, and equivalents, and the HSPA devices listed in Appendix A.
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`50. More specifically, Defendant’s mobile devices, tablets, and other devices
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`with HSPA capabilities and comply with HSPA standards infringe at least Claim 12 of
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`the ’563 Patent because they generate and transmit frames for uplink transmission by
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`inserting pilot and Transmit Power Control (TPC) symbols without data using
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`discontinuous uplink transmission techniques.
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`51. Defendant was provided one or more claim charts for the ’563 Patent on at
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`least March 6, 2015, and those charts are hereby incorporated by reference.
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`52. Defendant has had actual knowledge of the ’563 Patent and Defendant’s
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`infringement of the ’563 Patent since at least January 16, 2015, before the filing of this
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`Complaint. Despite this knowledge, Defendant continued its infringing activities
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`despite an objectively high likelihood that its activities constituted infringement of a
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`valid patent, and this risk was either known or so obvious that it should have been
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`known to Defendant. Thus, Defendant’s infringement has been, and continues to be,
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`willful and deliberate.
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`53. Defendant induces third parties, including customers, to infringe the ’563
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`Patent in violation of 35 U.S.C. § 271(b) by encouraging and facilitating them to perform
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`actions that Defendant knows to be acts of infringement of the ’563 Patent. Upon
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`information and belief, Defendant knows that the use of its mobile devices, tablets, and
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`other devices with HSPA capabilities and comply with HSPA standards, constitutes
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`infringement of the ’563 Patent, including at least Claim 12. Defendant advertises the
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`infringing products and services, publishes specifications and promotional literature
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`encouraging customers to operate the accused products and services, creates and/or
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`distributes user manuals for the accused products and services that provide instruction
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`and/or encourage infringing use, and offers support and/or technical assistance to its
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`customers that provide instructions on and/or encourage infringing use.
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`54. For instance, Defendant encourages and facilitates its customers to infringe
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`the ’563 Patent by instructing customers that purchase its iPhone 7 and 7 Plus mobile
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`phones that such devices have “HSPA+” capability, and providing various indicators
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`within those devices of the same.2 Customers, pursuant to Defendant’s instructions,
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`indicators, and advertisements, each directly infringe the ’563 Patent, including at least
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`Claim 12.
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`55. Defendant also contributes to the infringement of the ’563 Patent in violation
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`of 35 U.S.C. § 271(c). Defendant contributes to infringement of the ’563 Patent by
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`making, using, selling, offering to sell and/or importing components that are
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`incorporated with third-party devices to infringe the ’563 Patent, including at least
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`Claim 12. The accused components constitute a material part of the invention claimed
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`by the ’563 Patent at least because they work in conjunction with third-party products
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`or services, and they are specifically made to operate in a manner that infringes the ’563
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`Patent by, among other things, enabling various devices, such as mobile devices, tablets,
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`and other devices with HSPA capabilities and comply with HSPA standards, to
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`perform, among other things, the discontinuous transmission of an uplink control
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`channel when data transmission is not scheduled for transmission. The accused
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`components are separable from Defendant’s products and are not staple articles or
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`commodities of commerce suitable for substantial non-infringing use because they
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`necessarily operate in a manner that infringes the ’563 Patent. Further, because the ’563
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`Patent is essential to the HSPA standards Defendant’s devices with LTE, HSPA, and/or
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`2 See iPhone 7 Technical Specifications, available at
`http://www.apple.com/iphone-7/specs/ (last accessed Feb. 21, 2017); iPhone 7 Plus
`Technical Specification, available at https://support.apple.com/kb/SP744?locale=en_US
`(last accessed Feb. 21, 2017).
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`EDGE capabilities and comply with HSPA standard are material in practicing the ’563
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`Patent, are especially made to infringe the ’563 Patent, and have no substantial non-
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`infringing uses. Moreover, Defendant publishes or has published information about
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`infringing aspects of various devices. These devices include mobile devices, tablets, and
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`other devices with HSPA capabilities and comply with HSPA standards, that are
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`practiced using the components that Defendant provides. As stated above, Defendant
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`knew of the ’563 Patent and knew that its actions would lead to infringement of that
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`patent. Therefore, Defendant is also contributing to the direct infringement of the ’563
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`Patent by users of Defendant’s services, products, and/or features, including at least
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`Claim 12.
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`56.
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`Inventergy has suffered and continues to suffer damages and irreparable
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`harm as a result of Defendant’s past and ongoing infringement.
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`57. Unless Defendant’s infringement is permanently enjoined, Inventergy will
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`continue to be damaged and irreparably harmed.
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`SECOND CLAIM FOR RELIEF
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`Infringement of U.S. Patent No. 6,611,676
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`58.
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`Inventergy incorporates by reference the foregoing paragraphs.
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`59. The ’676 Patent issued on August 26, 2003, and is titled “Radio
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`Communication Apparatus and Transmission Rate Control Method.”
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`60.
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`Inventergy is the owner by assignment of all rights, title, and interest in the
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`’676 Patent.
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`61. The ’676 Patent is valid and enforceable.
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`
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`15
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`
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`Case 1:17-cv-00196-VAC-CJB Document 1 Filed 02/24/17 Page 16 of 46 PageID #: 16
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`
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`62. The ’676 patented technology is directed generally to a radio communication
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`apparatus with a variable transmission rate and a transmission rate control method.
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`One objective of the invention was to provide a radio communication apparatus and
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`transmission rate control method capable of controlling transmission power of a base
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`station directed to a mobile station appropriately without being affected by the
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`environment of the mobile station or transmission rate. This particular objective can be
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`achieved, among other ways, by a radio communication apparatus and transmission
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`rate control method that switch the transmission rate of a transmission signal based on
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`reception quality information from the other end of communication, or according to the
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`environment of the other end of communication and transmit the signals at the
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`switched transmission rate. Among other applications, this control method can also be
`
`applied to the uplink to reduce interference, and to achieve power saving or to navigate
`
`hardware restrictions. This can be accomplished in various embodiments, some of
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`which are further described in column 15, lines 1-8 of the ’676 Patent.
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`63. The use of mandatory portions of the WCDMA/HSPA standard infringes
`
`the ’676 Patent. For example, the 3GPP standard TS 25.214 requires use of Transmit
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`Power Control (“TPC”) command to control the transmit power of the user device. The
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`value of TPC command sent to a certain device is based on the comparison result of the
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`estimated signal-to-interference ratio (“SIR”) and the received uplink SIR on the
`
`frequency of the user device. Furthermore, the 3GPP standard requires the user device
`
`to select E-TFC to change the uplink transmission rate, as specified in the 3GPP TS
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`25.319 standard. Additionally, the 3GPP standard TS 25.321 requires use of the user
`
`
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`16
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`Case 1:17-cv-00196-VAC-CJB Document 1 Filed 02/24/17 Page 17 of 46 PageID #: 17
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`
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`device to determine the state of each E-TFC for every MAC-d flow based on its required
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`transmit power versus the maximum remaining power allowed.
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`64. Upon information and belief, Defendant’s mobile devices, tablets, and other
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`devices with WCDMA/HSPA capabilities use the mandatory portions of the
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`WCDMA/HSPA standard covered by the ’676 Patent, including but not limited to
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`Claim 7.
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`65. Defendant has infringed, and is currently infringing, the ’676 Patent in
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`violation of 35 U.S.C. § 271(a) by making, using, selling, offering for sale, and/or
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`importing into the United States, without authority, products, equipment, software,
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`and/or services that practice one or more claims of the ’676 Patent, including without
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`limitation Defendant’s mobile devices, tablets, and other devices with HSPA
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`capabilities and comply with HSUPA portions of the WCDMA/HSPA standards,
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`including at least TS 25.214, TS 25.319, and/or TS 25.321. For instance, these Defendant
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`devices include, but are not limited to, the iPhone 7, iPhone 7 Plus, and equivalents and
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`the HSPA devices listed in Appendix A.
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`66. More specifically, Defendant’s mobile devices, tablets, and other devices
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`with HSPA capabilities and comply with HSUPA portions of the WCDMA/HSPA
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`standards infringe at least Claim 7 of the ‘676 Patent because they contain a
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`transmission power controller capable of modifying transmission power based on
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`certain transmission rate of the device’s uplink data in response to calculations
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`comparing average transmission power needed for certain transmission rate with
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`maximum allowable transmission power.
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`17
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`Case 1:17-cv-00196-VAC-CJB Document 1 Filed 02/24/17 Page 18 of 46 PageID #: 18
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`67. Defendant has had actual knowledge of the ’676 Patent and Defendant’s
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`infringement of the ’676 Patent since at least January 16, 2015, before the filing of this
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`Complaint. Despite this knowledge, Defendant continued its infringing activities
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`despite an objectively high likelihood that its activities constituted infringement of a
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`valid patent, and this risk was either known or so obvious that it should have been
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`known to Defendant. Thus, Defendant’s infringement has been, and continues to be,
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`willful and deliberate.
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`68. Defendant induces third parties, including customers, to infringe the ’676
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`Patent in violation of 35 U.S.C. § 271(b) by encouraging and facilitating them to perform
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`actions that Defendant knows to be acts of infringement of the ’676 Patent, including at
`
`least Claim 7. Upon information and belief, Defendant knows that the use of its mobile
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`devices, tablets, and other devices with HSPA capabilities and comply with HSPA
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`standards, constitutes infringement of the ’676 Patent. Defendant advertises the
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`infringing products and services, publishes specifications and promotional literature
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`encouraging customers to operate the accused products and services, creates and/or
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`distributes user manuals for the accused products and services that provide instruction
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`and/or encourage infringing use, and offers support and/or technical assistance to its
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`customers that provide instructions on and/or encourage infringing use.
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`69. For instance, Defendant encourages and facilitates its customers to infringe
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`the ’676 Patent by instructing customers that purchase its iPhone 7 and iPhone 7 Plus
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`mobile phones that such devices have “HSPA+” capability, and providing various
`
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`18
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`Case 1:17-cv-00196-VAC-CJB Document 1 Filed 02/24/17 Page 19 of 46 PageID #: 19
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`indicators within those devices of the same.3 Customers, pursuant to Defendant’s
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`instructions and advertisements, each directly infringe the ’676 Patent, including at least
`
`Claim 7.
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`70. Defendant also contributes to the infringement of the ’676 Patent in violation
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`of 35 U.S.C. § 271(c). Defendant contributes to infringement of the ’676 Patent by
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`making, using, selling, offering to sell and/or importing components that are
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`incorporated with third-party devices to infringe the ’676 Patent, including at least
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`Claim 7. The accused components constitute a material part of the invention claimed by
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`the ’676 Patent at least because they work in conjunction with third-party products or
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`services, and they are specifically made to operate in a manner that infringes the ’676
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`Patent by, among other things, enabling various devices, such as mobile devices, tablets,
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`and other devices with HSPA capabilities and comply with HSPA standards, to
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`communicate with other radio devices while satisfying an allowable transmission
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`power constraint. The accused components are separable from Defendant’s products
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`and are not staple articles or commodities of commerce suitable for substantial non-
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`infringing use because they necessarily operate in a manner that infringes the ’676
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`Patent. Further, because the ’676 Patent is essential to the LTE, HSPA, and/or EDGE
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`standards, Defendant’s devices with HSPA capabilities and comply with the HSPA
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`standard are material in practicing the ’676 Patent, are especially made to infringe the
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`3 See iPhone 7 Technical Specifications, available at
`http://www.apple.com/iphone-7/specs/ (last accessed Feb. 21, 2017); iPhone 7 Plus
`Technical Specification, available at https://support.apple.com/kb/SP744?locale
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