Apple Inc., et al.
`Exhibit 1020
`Apple Inc., et al. v. Global Touch Solutions, Inc.
`IPR2015-01174
`
`Exhibit 1020, Page 001
`
`

`

`
`.iIf
`IIL
`
`
`
`
`
`
`
`
`Editor-in-Chief Michael .1. Miller
`
`Editor Robin Ruskin
`
`Executive Editors Rick Ayre. Bill Howard. Don Willmeit
`Director, PC Labs C. James Galley llI
`Senior Networking Editor Frank J. Derflcr. Jr.
`Senior Editors David Greenfield (Networking and Communications).
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`Exhibit 1020, Page 002
`Exhibit 1020, Page 002
`
`

`

`Trends
`
`
`
`TRENDS & TECHNOLOGY SHAPING THE PERSONAL COMPUTER MARKET
`
`
`
`Ma vol-nus Temptations
`
`Microsoft court‘s electronic puélis/yers.
`
`' and Play, getting staid financial institutions to pay
`
`
`hether it’s creating a hardware standard like Plug
`
`attention to on-line finance, or getting developers
`
`
`
`unincngson'
`h.
`
`":1
`
`Aria zinc Fnuess
`8 DJ
`Smixmd MKGUmN swmmm
`Mum
`“WW nthnm
`Smith“
`
`its-mi 4mm:
`
`iJS—«mmm!
`
`
`vacuum 1
`
`Microsoft has built easy access to The Microsoft
`Network into Windows 95.
`———————
`
`— new
`
`31mm t...
`flslm leflhfiils
`
`
`Content will be provided by Microsoft at first, but
`other content providers may profit from the new on-
`line business model.
`——_—_———_
`
`
`
`reacting? Steve Case of America
`Online calls the network less than com-
`
`petitive. Debra Young of CompuServe
`says, “Microsoft will have excellent dis-
`tribution via Windows 95 and can
`afford to operate at a loss to gain mar-
`ket share. The jury is still out on how
`quickly Microsoft can build meaningful
`content. We need to ensure that the
`
`playing ground is level and fair, and I
`think all three of the on-line services are going
`to work toward that.” And Brian EK of
`Prodigy says, “We have been contacted by the
`Justice Department and will be talking with
`them.”—Carol Levin and Sebastian Rupley
`
`JANUARY 24.1995 PC MAGAZINE 29
`
`Exhibit 1020, Page 003
`Exhibit 1020, Page 003
`
`
`
`
`
`to buy into “tough” efforts like OLE, Bill Gates and com—
`system that will incorporate Visual Basic
`and OLE. The goal is to allow people to use
`pany have a distinct knack for making folks listen up.
`familiar tools like Microsoft Word or other
`word processors to create content.
`who see very little opportunity with this
`The next territory is the on—line world. It
`Initially, Microsoft will provide much of
`model because it’s not pricing for the con-
`seems that Gates is already crafting a com-
`tent’s value.”
`the content on the network, including tech—
`bination of “spin doctoring,” vision, and
`is giving content
`Instead, Microsoft
`support forums, private forums. chat lines,
`perhaps a bit of strong—arming bound to
`and bulletin boards. Down the road, you can
`providers flexibility in terms of how to make
`,make electronic publishers, or content
`expect personal finance components on The
`money, whether by charging subscription
`providers, reconsider any on—line plans
`Microsoft Network, says Meng. Part of the
`fees, offering on—line transactions, or selling
`they’ve already made.
`plan is to enable users to connect directly
`advertising. An on—line magazine, for exam—
`“Clearly, there’s something missing from
`from their applications to the network for
`ple, would be able to stick with the traditional
`on-line services today. They’re not exciting
`support. Clicking on an icon from the Excel
`magazine business model that draws on three
`enough. different enough, fast enough, 01'
`toolbar, for example, will take you right to
`revenue sources: advertising, subscriptions,
`easy enough,” says Gates. Since only 10 per—
`the Excel tech-support forum. Microsoft
`cent of the Microsoft Windows users with
`and impulse buys at the newsstand.
`aims to make it easy for other developers to
`Microsoft also plans to offer content
`modems (and only 4 percent of households)
`a]:
`EA-
`r.- w. ind: (m a.»
`subscribe to online services, Gates sees a
`
`—i design this type of shortcut connection
`
`
`mggkdfiflflfl
`'1 ..g
`into their Windows applications.
`
`
`SM
`7”» W
`Dn-
`
`huge untapped market for a service that
`_
`fiiummra
`‘
`
`.VII-ll (.flz
`mm». mm...
`“a
`While Microsoft has not yet
`
`does things differently. So he rewrote the
`“a
`C
`DB“ (“13%)xudsfu 1‘ K9 '
`Wm '
`announced any content providers, it
`BarrmwmuI-da ““6 Y ”ME EdiL‘l
`Oil-llIlC business model
`to make The
`
`demonstrated model services from
`no.“ W,MmREBELFJSLE‘TLH ”WWW :l'
`
`‘9 3 l7! u a 25 Ll-t l :3
`a»: mum/mm shame mu
`Microsoft Network—Microsoft’s recently
`h
`Han-1 Flwfihas
`
`J at who on.
`sud M m on.
`USA Today and Nickelodeon at the
`announced on-line service known until now
`
`
`Ron D.'s MOVIE REWE
`Rxwggupkflvtflfifl
`
`as Marvel—attractive for on—line publishers.
`g
`launch in November.
`How are the other on-line services
`inn.
`pi
`i
`l sou
`What unique incentives will the network
`
`
`"new. “lien
`n uynui.
`offer electronic publishers? Consumers.
`:nnltrtwlh
`
`Since The Microsoft Network will be easily
`accessible
`from Windows
`95, content
`Providers will tap into a potentially huge
`SUbscriber base paying a monthly access fee
`aSlow as $4 or 1195. And a bigger cut. “A key
`asPect of what we‘re doing differently is to
`allow content and service providers to cre-
`ate businesses on-line and to control the rev-
`enue possibilities,” says George Meng,
`DFOduct manager for The Microsoft Net—
`‘Vork. The big difference is to de—emphasize
`“Venue from connect—time charges, which
`0”line services rely on today. “We’ve
`lalked to a lot of potential partners out there
`
`
`
`Int m Iml
`
`providers the tools and infrastructure to cre-
`ate original electronic products that take
`advantage of the interactive format and
`prominently display their brands. Microsoft
`is working now on a comprehensive design
`
`

`

`Thends
`
`By Roéin Ras/ez'n
`Pipeline
`Headlines ’95
`
`
`
`ost of you have long since made your predictions and
`resolutions for 1995. Me. I‘ve abandoned the Julian
`calendar in favor of the Comdex calendar. As soon as
`that mother of all computer trade shows is over—and
`I've had a chance to digest the gestalt of the thousands
`of products that create their own Las Vegas glitter for
`the week—I start writing next year's headlines in my mind.
`Here‘s what I think we‘ll see.
`
`
`
`Boom Year for Mergers, Acquisitions, and Bankruptcies. If you
`thought that 1994 was the year of strange bedfellows. stay tuned.
`1994’s all—star cast featured Novell and WordPerfect. Intuit and
`Chipsoft and Microsoft. Altsys and Macro—
`mind. Sybase and Powersoft, Aldus and
`Adobe. Stac and Ocean Isle, ZEOS and
`Micron, and Tandy and AST. Longtime
`favorites like Hayes were hard hit by the
`skyrocketing costs of manufacturing. 1995
`will bring more of the satne. Companies will
`be sold; mergers and acquisitions will take
`place at a ferocious pace. At the end of the
`year. there will be far fewer players than at the beginning. The pat-
`tern is clear: Consolidation is the recipe for survival.
`Closing the Books on Some Underdogs. Farewell noble
`underdogs. full of technical promise but a little long of tooth
`when it came to deliverables and market realities. We‘ll see
`Appware. OpenDoc. Taligent. and perhaps DEC Alpha relegat—
`ed to the “whatever happened to" category. And to paraphrase
`Dorothy‘s line to the lion, "Of all the underdogs, I'll miss you
`most of all. 08/2." I believe that OS/2 is a terrific operating sys—
`tem for a niche group of nonnetworked power users.
`Internet: Big-City Problems in Cyberspace. This is no longer
`a pleasant place where academics trade research papers. and it‘s
`no longer a place where you‘ll feel free to roam. Cyberspace will
`
`take on a real Wild West persona this year. There will be scams
`unheard of before. a nonexistent line between information and
`misinformation. and plenty of smart people who will lose their
`shirts trying to make a buck.
`Other big Internet news: I've no doubt that you‘ll be able to
`browse and publish on the Internet using traditional word pro.
`cessing. spreadsheet, and database applications.
`Phone Companies See Cash in Interactive Games. People
`will form groups of multiplayer communities in bigger numbers
`than ever before. You‘ll play DOOM over your phone lines. but
`the big question is whether the phone company will be allowed
`to get involved with “loser pays all" models of doing business.
`ISDN Proliferates with Amazing Speed. Thanks to consumer
`pressure. the telephone companies have finally figured out ways
`to make ISDN widely available for a reasonable price. They pre-
`dicted deployment by the end of the decade. but it’s looking
`more like by the end of 1996.
`Windows 95 Apps Get Off to a Slow Start. Microsoft Windows
`95 will have a reasonably fast adoption rate. but Windows 95 apps
`will be a slower sell. The immediate advantage of Windows 95
`apps is their support of long filenames. but that alone won't com-
`pel you to convert all your old 16—bit Windows apps.
`The Microsoft Network Reaches l-Million-User Mark in First
`
`Three Months. The price of entry is lower than that of any other
`service. and the content providers have been strong-armed into
`providing their best stuff. It’s pretty, it‘s got smart agents, and the
`software connection comes built into the operating system.
`Now for the headlines I’d like to see but probably won't:
`Justice Dept. Recommends Microsoft and Intel Bust-Ups. As
`one analyst put it. “The DoJ is far too concerned with our GNP
`to try and stop Microsoft or Intel from dominating the scene."
`You can expect Intel to enter the PC-makers market as well.
`Comdex ’95 Held as a Virtual Trade Show. This is not a far-
`
`fetched idea at all. But it won’t be the same until they can simulate
`the interminable cab lines. blistered feet, and seas of humanity.
`
`Robin Ruskin is the editor ofPC Magazine.
`
`
`
`Bridging Language Gaps in Cyberspace
`WHILE 1995 MAY TURN OUT TO BE
`Assistant software series.
`the year of the family PC,
`the United
`Nations’ Year of the Family has already
`begun.
`In recognition,
`teenagers from
`Canada, France, Germany, Italy, Mexico,
`Spain, and the US. are participating in a
`cross—cultural technology project sponsored
`by the Global SchoolNet Foundation. The
`Family Write project connects kids around
`the world via e-mail. They’ll use translation
`software to bridge the communication gap.
`The assignment is to take oral histories of
`family members, write reports in their native
`languages, and exchange findings with pen
`pals around the world. To help get the pro-
`ject off the ground, Globalink, of Fairfax,
`Virginia, donated its expertise in language
`translation software and its Language
`30 PC MAGAZINE JANUARY 24.1995
`
`The project represents a new direction
`for translation software at a time when it’s
`simple to fetch on—line information from
`around the world via the Internet. Trans-
`lation software is reaching beyond its roots
`in documentation to the localization of the
`sea of on-line information. Michael Tacelo—
`
`sky, CEO of Globalink, which bought out
`competitor Microtac last year, is now work-
`ing to set a standard for language translation
`much as Creative Labs set the Sound Blaster
`standard for PC—based audio.
`
`If Globalink succeeds, you’ll be able to
`buy an e-mail package or word processor
`that’s translation—enabled and then plug in a
`translator. The two will be integrated much
`as spell-checkers and word processors are
`
`Exhibit 1020, Page 004
`Exhibit 1020, Page 004
`
`
`
`today. Globalink is taking integration a step
`further by saving you the trouble of having
`to import and export a file from and to the
`translation program. Instead, if you receive
`an e-mail message in Russian, you can tl‘flns'
`late it from within the email program.
`While there’s no questioning the need
`for improvements in translation algorithms
`the
`technology continues
`to
`evolve.
`Developers are adding vocabulary. 11nd.“
`standing collocation of words, and writing
`sophisticated rules that recognize the diffef‘
`ence between “fired a clay pot” and “fired -
`an employee.”
`Developers at Globalink have already
`defined the applications programming inter-
`face and expect to have a development klt
`ready for software vendors when VJindQWS
`95 ships. Companies interested in helpmg
`build the Global SchoolNet can contaCt
`Yvonne Andres at 619-931-5934.
`—Car01 Levin
`
`.
`
`‘
`
`

`

`Trends
`
`Faxback Payback
`
`system is saving a division of Intel $6 per
`customer fulfillment on 2,000 fulfillment
`requests per month.
`A word to the wise: Plan ahead for cost
`
`efficiency. The first choice to make is
`whether to go with a one-call or two-call sys-
`tem. A one—call system means that the caller J c.'23
`
`23,000 j
`
`15000
` l
`5.000
`
`
` 10,000 Fax-omdemandunils[mlinplace
`
`1992
`
`1993
`
`i994
`
`19%
`1995
`Strip? RlS StrateginDerisions
`
`pays as a document is faxed out during the
`initial call. The more common two-call sys—
`tem means that the requested fax is put into
`a queue and sent out on a second call—so
`
`CD—R: Born to Burn
`
`i
`
`
`
`x
`
`the faxback provider pays. The most flexi—
`bie faxback systems can reverse charges to
`a caller by switching from two—call mode to
`one-call mode, if, say, an international call
`comes in. It’s also important to plan for
`expansion. Novell stores more than 10000
`documents and has recently upgraded from
`12 inbound and outbound lines to 24.
`Faxback technology has some growing to
`do as well. The software, for example,
`doesn’t
`have
`document management
`smarts. The best software tracks changes
`and versions of archived documents, but
`don’t expect elegance. Also, very few
`faxback solutions offer credit card verifica—
`tion, and even fewer allow for remote load-
`ing of documents.
`Still, while electronic delivery of infor—
`mation continues to gain momentum every
`day, Iaxback‘s momentum is proof that
`you
`cannot
`count
`out
`hard
`copy.
`—Sel)nstinn Rupley
`
`layer of organic dye is altered and cannot be
`changed; that’s why you can only record
`once. The recorded disk can then be read by
`a standard CD player or CD-ROM drive.
`Later this year, Creative Labs, which
`recently introduced its Digital Edge CD-R
`(an external drive) for under $2,000. expects
`to offer a quadruple—speed CD—R. A 4x
`drive takes about 18 minutes to record 74
`
`minutes of digital audio or data to a 650MB
`disk; 21 2x drive takes about 36 minutes.
`On the software side, Corel has a new
`premastering program, Corel CD Creator,
`which simulates the completed CD-ROM
`on your hard disk before recording it to the
`
`/—— Lacquer
`
`YOUR NEXT PC MAY COME WITH A
`drive that not only plays CD—ROMs but also
`records them, thanks to several advances in
`recording technology made over the past
`year. Mastering CD—ROMs on your desktop
`is now more attractive for a range of appli—
`cations, including multimedia presentations,
`desktop publishing, electronic prepress,
`graphic design, and archiving
`Refinements in laser technology, the
`drop in cost of CDirecordable (CD-R)
`drives, and the miniaturization of compo—
`nents are driving this
`trend, explains Rich
`Buchanan of Creative
`Labs. The first CD—R
`drives,
`introduced in
`1989,
`cost
`around
`$25,000 and took 80
`minutes to record. To—
`
`Gold
`
`How a CD-R Drive Writes Data
`A GD—H drive focuses a laser beam through the polycarbonate base onto
`the layer of organic dye, burning pits into the disk s surface. The pits
`alter the reflectiveness of the gold layer.
`
`
`
`Organic
`dye
`
`day, prices on CD»R
`drives are dropping to
`under $2,000; recording
`takes about half an
`hour.
`In the meanwhile,
`researchers continue to
`
`
`
`Pit
`
`make improvements in
`the optical sensitivity of
`the organic dye—the
`actual recording media
`um on the disks. The laser in a CD—R drive
`
`Polycarbonate
`base
`
`
`
`Laser beam
`Source Ricali
`
`melts the dye and embeds the information in
`a series of pits, a process known as “burn—
`ing.” Once the information is recorded, the
`
`CD—R. Once Creative Labs solves some
`
`heat dissipation issues later this year, watch
`for half-height internal CD—ROM player/
`recorders in one—Carol Levin
`
`JANUARY 24, 1995 PC MAGAZINE 31
`
`Exhibit 1020, Page 005
`Exhibit 1020, Page 005
`
`\VHILE THE INTERNET AND ON—LINE
`services hogged the headlines in 1994, fax—
`on.demand—PC/phone integration that
`flutomatically faxes documents to remote
`Callers—is growing right along with elec—
`[Ionic information delivery.
`According to BIS Strategic Decisions,
`approximately
`25,000
`new
`fax—on—
`demand—or faxback—units will be put into
`place in 1995, up from approximately 15,000
`new units put into place in 1994.
`Hans Peter Reicken, president of
`anOuest, in Sunnyvale, California, which
`sells a four—line faxback solution for $2,195,
`says he doesn’t even believe that electronic
`information delivery is faxbacks most press—
`ing competition. “We compete with the mil—
`lions of people out there standing over fax
`machines and stuffing envelopes; these are
`just not efficient, money—saving solutions,”
`he says. FaxBack Inc., of Beaverton,
`Oregon, provides $10,000 to $20,000 high-
`end faxback systems that support as many as
`48 lines. According to the company, a single
`T T
`R t 'l s it
`
`Current
`Last
`Pmrinnt/
`
`.ianking
`issue company
`1
`1 Headstart Turbo Tax Federal ’94
`
`Intuit
`i
`08/2 Warp, Version 5.0
`[BM Corp.
`— as Excel 5.0 for Windows Upgrade
`Microsoft Corp.
`4
`2 MS-DOS 6.22 Upgrade
`
`Microsoft Corp.
`5 — Quattro Pro 6.0 for
`Windows Upgrade
`l/lt'ordPerfect, tlte Novell
`
`Applications Group
`MS Works 5.0 for Windows with
`6
`4
`Money 3.0 for Windows
`
`Microsoft Corp.
`— Uninstaller 2.0
`
`MicroHelp
`Procomm Plus for Windows 2.0
`5
`8
`
`Dutnstorm Technologies
`MS Office 4.2 for Windows Upgrade
`9
`9
`
`Microsoft Corp.
`10 — Quicken 4 for Windows Deluxe 00
`Intuit
`
`2
`
`“a
`i
`1
`
`
`
`——
`
`
`
`7
`
`
`
`This list ranks PC business programs
`according to the total number ofcopies
`Shipped to over12,000 stores and resellers in
`the week ending November 12, 1994; the list
`cannot be interpreted as a picture oft/1e
`e1 ‘tire software market. Sales information
`udaptedfrom a compilation by
`[ngrmn Miero.
`
`
`

`

`Trends
`
`Smelt Bunny Samar: Syslem
`
`a
`and over
`books,
`dozen manufacturers,
`including Cation, Cit-
`izen,
`and Compaq,
`have signed‘on to the
`Intel/Duracell Smart
`
`Batteries That Think
`
`JUST HOW FAR ARE YOU WILLING
`to go for an extra 4 hours of battery life?
`Would you schlepp an extra pound or shell
`out an extra hundred dollars? Most people
`would accept an extra 12 ounces, a smaller
`keyboard, and a quarter-inch in size, and
`would pay an extra $100 for a notebook that
`delivered an extra 4 hours
`of juice, according to a
`survey of mobile corn—
`puter users by H&M
`Consulting.
`Momentum is build—
`1 ing now for a “smart bat—
`'/ tery" standard designed
`to improve runtimes.
`Unlike convention-
`al batteries, an intel—
`ligent
`battery
`is
`equipped with a Chip that issues accurate
`reports on battery conditions. IBM has devel—
`oped its own solution for its ThinkPad note—
`
`
`
`_
`‘
`
`Duracell’s battery chip.
`
`
`
`
`Smart batteries that
`based
`on
`the
`are
`Intel/Duracell speeifi.
`cation have two basic
`components: the Sys.
`tem Management Bus
`(SMBus), which is an
`extension of a note.
`book’s BIOS, and a
`microeontroller loom.
`ed 011 the battery that
`stores data about the battery and monitors
`its status. Information such as remaining bat-i
`tery time is transferred over the SMBus to f
`the system and displayed on—sereen. Since‘i
`the standard is cbemistry-independent, it'
`supports nickel hydride, nickel cadmium, ‘
`and lithium ion batteries.
`
`SystemSoft’s smart battery software dis-
`plays precise status information.
`
`
`Battery Data Specifi-
`cation, a fledgling stan-
`dard that defines the
`pathway for communi-
`the
`cation
`among
`smart
`battery,
`the
`notebook, and the charger.
`Today, most notebooks come with a bat-
`tery indicator that estimates remaining time.
`According to Duracell, inaccurate estimates
`can result in up to 20 percent of the battery’s
`overall life not being used. A smart battery
`collects and communicates a range of statis—
`tics such as capacity, chemistry, remaining
`battery time,
`temperature, and voltage.
`According to SystemSoft, which has written
`a smart battery interface, a notebook with a
`smart battery lasts longer because users are
`given accurate battery status and can budget
`battery life with power management tools.
`
`BIOS makers Phoenix Technologies and
`SystemSoft recently introduced Windows
`applets for managing notebook batteries. ‘
`And this spring Canon will debut its Innova ‘
`Book, and NoteJet portable products, which
`use Intel/Duracell smart batteries.
`——Car01 Levin
`
`What Stays In-Hotase
`And What Doesrat
`Does third-party support mean one-stop shop-
`ping? Not quite. Many corporate managers arent
`willing to farm out installation and disaster—
`recovery problems.
`
` l
`
`”’1
`.
`Application
`support
`31% J
`3
`12%
`Disaster
`recovery
`
`»
`
`installation '
`
`To Whom It May Concern: Help!
`
`THERE YOU SIT, STALLED BY A
`Software
`Corporate
`$199.95.
`pays
`software problem. You don’t just want
`(Norwood, Massachusetts, 800—677-4000)
`answers, you want answers fast. Who’re you
`provides third-party support for far more
`gonna call? These days, you’re likely to call
`titles—over SOD—and charges different
`for support from an unaffiliated third party
`prices for various levels of support. The
`rather than the software publisher.
`company’s Silver support plan, for example,
`According to a recent Dataqucst survey
`costs $15,000 for one year of 24-hour, 7—day—
`of 221 corporations in several indus-
`a-week support for five users.
`
`tries, 40 percent of a company’s
`'
`Third—party support won ’t
`
`budget for employees’ soft—
`entirely supplant in—house
`
`ware support goes to third _
`"
`. help desks. Dataquesfs
`parties.
`’
`"
`5“; survey respondents are
`Is third—party support
`less willing to outsource
`a perfect solution? Defi—
`'5 certain kinds of problems
`nitely not. Certain kinds
`than others.Which type of
`of software don‘t even
`support is least likely to
`make the list. Software
`” be sought out-of—house?
`Support (Heathrow, Flori—
`, Disaster recovery. Over
`da; 800-756-4463), a leading
`7 45 percent of respondents
`third—party provider, sup—
`said they’re not willing to
`ports more than 150 titles
`outsource such support.
`Meanwhile,
`third-
`but not a single accounting
`package, CAD program, or
`party tech— support com-
`programming
`tool. The
`panies are increasing the
`company’s fees are