Apple Inc., et al.
`Exhibit 1019
`Apple Inc., et al. v. Global Touch Solutions, Inc.
`IPR2015-01175
`
`Exhibit 1019, Page 001
`
`

`
`rEE;i
`
`lTE[iE[ll3
`
`Editor-in-Chief Michael .1. Miller
`
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`
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`PRINTED IN THE”‘
`
`Exhibit 1019, Page 002
`
`

`
`Trends
`
`
`
`TRENDS 8: TECHNOLOGY SHAPING THE PERSONAL COMPUTER MARKET
`
`Ma vel-nus Temptations
`
`lliElv‘|l(:ll9SOFf'
`in
`
`Ann 1‘.-& FITNESS
`'3 DJ
`Slulnuvd MU-«*4: umln
`man
`nma-u
`mm
`soft“
`I-:1
`
`
`
`hether it’s creating a hardware standard like Plug
`
`Micrasofi‘ courts electronic puélis/9675.
`
`
`
`attention to on—line finance, or getting developers
`
`and Play, getting staid financial institutions to pay ms-.t(_.n.p.:
`Microsoft has built easy access to The Microsoft
`Network into Windows 95.
`T
`
`i_;s.-«..u..»...u
`
`Hasmlvnt
`
`1
`
`
`
`system that will incorporate Visual Basic
`and OLE. The goal is to allow people to use
`familiar tools like Microsoft Word or other
`Word processors to Create Content.
`Initially, Microsoft will provide much of
`the content on the network, including tech-
`support forums, private forums. chat lines,
`and bulletin boards. Down the road, you can
`expect personal finance components on The
`Microsoft Network, says Meng. Part of the
`plan is to enable users to connect directly
`from their applications to the network for
`support. Clicking on an icon from tl1e Excel
`toolbar, for example, will take you right to
`the Excel tech-support forum. Microsoft
`aims to make it easy for other developers to
`design this type of shortcut connection
`into their Windows applications.
`While Microsoft has not yet
`announced any content providers, it
`demonstrated model services from
`USA Today and Nickelodeon at the
`launch in November.
`How are the other on-line services
`
`aim
`
`as an I =.iJ
`
`.:«
`
`in Int lml
`
`to buy into “tough” efforts like OLE, Bill Gates and com-
`pany have a distinct knack for making folks listen up.
`who see very little opportunity with this
`The next territory is the on—line world. It
`model because it’s not pricing for the con-
`seems that Gates is already crafting a com-
`tent’s value.”
`bination of “spin doctoring,” vision, and
`is giving content
`Instead, Microsoft
`perhaps a bit of strong—ar1ning bound to
`providers flexibility in terms of how to make
`,make electronic publishers, or content
`money, whether by charging subscription
`providers, reconsider any on—line plans
`fees, offering on-line transactions, or selling
`they’ve already made.
`advertising. An on—line magazine, for exam-
`“Clearly, there’s something missing from
`ple, would be able to stick with the traditional
`on-line services today. They’re not exciting
`magazine business model that draws on three
`enough. different enough, fast enough, or
`revenue sources: advertising, subscriptions,
`easy enough,” says Gates. Since only 10 per-
`cent of the Microsoft Windows users with
`and impulse buys at the newsstand.
`Microsoft also plans to offer content
`modems (and only 4 percent of households)
`_..l2L’fl
`In M w. lad: (mu Huh
`subscribe to on-line services, Gates sees a
`
`
`r"j‘*_}_....-=....eea. E‘ t,., ]7_§,5; 3]
`huge untapped market for a service that
`. §,‘?:Tli....
`“""
`°"'
`does things differently. So he rewrote the
`”£§;?::c:;;t::.. «~ w r~ »~=« rm c=-«- an
`Bfilfmwmihvaluda 535 Y ring 3‘;
`:
`x
`on-line business model
`to make The
`rm awn.-0a..nEarun.['«i:s:::1:r: =*‘~"““>~‘=
`
`3 ‘e 3 IT! 9:
`D»: Ammwaamaw n....«c.~ run
`Microsoft Network—Micr0soft’s recently
`is
`no... em-was
`smut Are in Ln.
`4 RE 1.-you cu.
`announced on-line service known until now
`
`Ron D.'s MOVIE REVLTE
`Rxiu\g:up|<l'l\12S|‘f."FL
`aSMarvel—attractive for on—line publishers.
`:1
`inn.
`iv l
`i 00::
`What. unique incentives will the network
`offer electronic publishers? Consumers.
`Since The Microsoft Network will be easily
`accessible
`from Windows
`95, content
`Ploviders will tap into a potentially huge
`Subscriber base paying a monthly access fee
`MOW BS $4 01‘ 1195. And a bigger cut. “A key
`“fleet of what we‘re doing differently is to
`allow content and service providers to cre-
`ate businesses on-line and to control the rev-
`“N16 possibilities,” says George Meng,
`Pmduct manager for The Microsoft Net-
`‘V0rk. The big difference is to de—emphasize
`“Venue from connect—time charges, which
`°“*1ine services rely on today. “We’ve
`ialked to a lot of potential partners out there
`
`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
`
`JANUARY 24.1995 PC MAGAZINE 29
`
`Exhibit 1019, Page 003
`Exhibit 1019, Page 003
`
`
`
`
`nsum _;ue..m...ms
`
`— «am
`
`Elutucx tn
`
`content will be provided by Microsoft at first, but
`other content providers may profit from the new on-
`line business model.
`-j
`
`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
`
`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
`the1n.”—Car0l Levin and Sebastian Rup/ey
`
`

`
`Trends
`
`By Roéin Ra:/ein
`Pipeline
`Headlines ’95
`
`
`
`ost of you have long since made your predictions and
`resolutions for 1995. Me. l‘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—l 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.
`l994’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 same. 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 elear: 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. OS/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 1-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 ’9S Held as a Virtual Trade Show. This is not 2 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 0fPC 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 U.S. are participating in a
`cross—cultural technology project sponsored
`by the Global SehoolNet 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 witl1 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
`
`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
`
`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.
`
`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 t1‘ElI15'
`late it from within the e—mail program.
`While there’s no questioning the need
`for improvements in translation algorithms»
`to
`evolve.
`the
`technology continues
`Developers are adding vocabulary. Ulldfr‘
`standing collocation of words. and Wrlllflg
`sophisticated rules that recognize the differ‘
`ence between “fired a clay pot” and “fired -
`an employee.”
`Developers at Globalink have already ‘
`defined the applications programming iI1[el'
`face and expect to have a development kn
`ready for software vendors when WindO_W5
`95 ships. Companies interested in h€1Pmg
`build the Global SehoolNet can contact
`Yvonne Andres at 619-931-5934.
`—Car0l Levin
`
`.
`
`Exhibit 1019, Page 004
`Exhibit 1019, Page 004
`
`

`
`Trends
`
`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 0116-Cllii system means that the caller
`1 c.oo
`
`
`
`Fax-on-demandunitsputinplace
`
`7
`
`1993
`
`1994
`
`1996
`1995
`Sn-tire R18 Sirai»:gir.Derisiniis
`
`pays as a document is faxed out during the
`initial call. The more common zw0—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
`
`1
`
`~
`
`the faxback provider pays. The most flexi-
`ble faxback systems can reverse charges to
`a caller by switching from two—call mode to
`onc—call mode, if, say, an international call
`comes in. It’s also important to plan for
`expansion. Novell stores more than 10,000
`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, [axback‘s momentum is proof that
`you
`cannot
`count
`out
`hard
`copy.
`—Scbnsti(m Riipley
`
`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; a 2x drive takes about 36 minutes.
`On the software side, Corel has a new
`premastering program, Corcl CD Creator,
`which simulates the completed CD-ROM
`on your hard disk before recording it to the
`
`How a CD-R Drive Writes Data
`A CD—R 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.
`
`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 CD—recordable (CD-R)
`drives, and the miniaturi7.ation 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
`
`
`
`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
`
`make improvements in
`the optical sensitivity of
`the organic dye—the
`actual recording medi-
`um on the disks. The laser in a CD—R drive
`
`Polycarbonate
`base
`
`Pit
`
`Eunice Ricnli
`Lasef beam
`CD—R. Once Creative Labs solves some
`
`melts the dye and embeds the information in
`a series of pits, a process known as “burn-
`ing.” Once the information is recorded, the
`
`heat dissipation issues later this year, watch
`for half-height internal CD-ROM player/
`recorders in one.—Car0l Levin
`
`JANUARY 24, 1995 PC MAGAZINE
`
`Exhibit 1019, Page 005
`Exhibit 1019, Page 005
`
`/—: Lacquer
`
`Faxback Payback
`
`WHILE THE INTERNET AND ON-LINE
`services hogged the headlines in 1994, fax-
`on.de1nand—PC/phone integration that
`automatically faxes documents to remote
`C,111ers—is growing right along with elec-
`nonic information delivery.
`According to BIS Strategic Decisions,
`approximately
`25,000
`new
`fax—on—
`dgmand—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
`FnxOuest, in Sunnyvale, California, which
`sells a four—line faxback solution for $2,195,
`5;1ySl"a’3 doesn’t even believe that electronic
`information delivery is faxback”s 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 lnc., 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
`R t ‘I 3 ft
`Cuirent
`Last
`Prnr1ni‘.t/
`Janking
`issue company
`1
`1 Headstart Turbo Tax Federal ’94
`Intuit
`2 — OS/2 Warp, Version 5.0
`[BM Corp.
`'3 — MS Excel 5.0 for windows Upgrade
`;
`Microsoft Corp.
`E
`2 MS-D03 6.22 Upgrade
`Microsoft Corp.
`5 — Quattro Pro 6.0 for
`Windows Upgrade
`l/Vor(lPerfect, the Novell
`Applications Group
`MS Works 3.0 for Windows with
`Money 3.0 for Windows
`Micrnsnft Corp.
`— llninstaller 2.0
`Micr0Help
`Procumm Plus for Windows 2.0
`Dutzistarm Technologies
`MS Office 4.2 for Windows Upgrade
`Microsoft Corp.
`10 — Quicken 4 for Windows Deluxe GD
`Intuit
`
`6
`
`4
`
`7
`
`8
`
`9
`
`5
`
`9
`
`l
`
`4
`
`This list ranks PC business programs
`according to the total number ofcopies
`Shipped to over 12,000 stores and resellers in
`the week ending November IZ, I 994; the list
`cannot be interpreted as (1 picture 0ftlie
`PI ‘tire softwtire market. Sales information
`tidaptedfrom [1 compilation by
`Ingram Micro.
`
`

`
`Tbends
`
`Smali Hatltly Snltwzre Syiilem
`
`a
`and over
`books,
`dozen manufacturers,
`including Canon, 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 coin-
`puter users by H&M
`Consulting.
`Momentum is build-
`v ing now for a “smart bat-
`'/ tery" standard designed
`to improve runtimes.
`Unlike conventioi1-
`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-
`
`
`
`_
`‘
`
`Duracel|’s battery chip.
`
`
`
`SystemSoft’s smart battery software dis-
`plays precise status information.
`
`Smart batteries that
`based
`on
`the
`are
`Intel/Duracell Speeifi.
`cation have two basic
`components: the Syg.
`tem Management Bus
`(SMBus), which is an
`extension of a note.
`book’s BIOS, and a
`rnicroeontroller locai.
`ed on 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
`the system and displayed on—sereen. Since‘-"
`the standard is chemistry-independent, it‘
`supports nickel hydride, nickel cadmium, ‘
`and lithium ion batteries.
`
`Battery Data Specifi-
`cation, a fledgling stair-
`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 capaeity, 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.
`——Crir0I Levin
`
`What Stays In-Hotise
`And What Doesint
`Does third-party support mean one-stop shop-
`ping? Not quite. Many corporate managers arent
`willing to farm out installation and disaster-
`recovery problems.
`
`
`
`Application
`support
`Disaster
`recovery
`
`I
`
`»
`
`
`
`Application 1
`installation '
`Operating
`system
`installation ‘
`Multivendor
`support
`Operating
`system '
`support
`
`.
`
`o
`
`i
`
`.
`so
`20
`to
`Percentage nl corporate managers
`
`"7"
`so
`SDlllC:"Di1li1quEs‘
`
`come preloaded with remote-cliagnostiC5 ,
`software, and later this month, Traveling ,
`Software plans to aimounee that a rnajO1‘ PC i
`maker will preload LapLi11k for WindOW5
`on its systems, which will link users di1‘eCt1l'
`to the manufacturer for support.
`Whether the support staffer you 9”“
`accesses your system from afar or resorts to
`old-fashioned Q&A, it’s less and less likely
`that you’ll be talking to a software pllbllsl"
`e1‘.—Sebasria1i Riipley
`
`,
`
`r L‘
`1
`.
`.
`,
`I|lustrnlionbyl\ui1\ “E
`
`Exhibit 1019, Page 006
`Exhibit 1019, Page 006
`
`1
`
`To Whom It May Concern: Help!
`
`THERE YOU SIT, STALLED BY A
`software problem. You don’t just want
`answers, you want answers fast. Who’re you
`gonna call? These days, you’re likely to call
`for support from an unaffiliated third party
`rather than the software publisher.
`According to a recent Dataqucst survey
`of 221 corporations in several indus-
`tries, 40 percent of a company’s
`budget for employees’ soft-
`ware support goes to third _
`parties.
`’
`Is third-party support
`a perfect solution? Defi-
`nitely not. Certain kinds
`of software don‘t even
`make the list. Software
`
`"
`
`I
`
`Support (Heathrow, Flori-
`da; 800-756-4463), a leading
`third-party provider, sup-
`ports more than 150 titles
`but not