Case 1:16-cv-00389-LPS-CJB Document 1 Filed 05/25/16 Page 1 of 11 PageID #: 1
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELAWARE
`
`DIGITAL AUDIO ENCODING
`SYSTEMS, LLC,
`
`Plaintiff,
`
`v.
`
`APPLE INC.,
`
`Defendant.
`
`Civil Action No. ______________
`
`JURY TRIAL DEMANDED
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`Plaintiff Digital Audio Encoding Systems, LLC (“DAE” or “Plaintiff”), for its Complaint
`
`against Defendant Apple Inc., (“Apple” or “Defendant”) alleges the following:
`
`NATURE OF THE ACTION
`
`1. This is an action for patent infringement arising under the Patent Laws of the United
`
`States, 35 U.S.C. § 1 et seq.
`
`THE PARTIES
`
`2. Plaintiff is a limited liability company organized under the laws of the State of Texas
`
`with a place of business at 717 N. Union Street, Suite 127, Wilmington, DE 19805.
`
`3. Upon information and belief, Apple is a corporation organized and existing under the
`
`laws of California, with a place of business at 1 Infinite Loop, Cupertino, California 95014 and
`
`can be served through its registered agent, C T Corporation, 818 West Seventh Street, Suite 930,
`
`Los Angeles, California 90017. Upon information and belief, Apple sells and offers to sell
`
`products and services throughout the United States, including in this judicial district, and
`
`introduces products and services into the stream of commerce and that incorporate infringing
`
`IPR2016-01710
`UNIFIED EX1036
`
`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELAWARE
`
`DIGITAL AUDIO ENCODING
`SYSTEMS, LLC,
`
`Plaintiff,
`
`v.
`
`APPLE INC.,
`
`Defendant.
`
`Civil Action No. ______________
`
`JURY TRIAL DEMANDED
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`Plaintiff Digital Audio Encoding Systems, LLC (“DAE” or “Plaintiff”), for its Complaint
`
`against Defendant Apple Inc., (“Apple” or “Defendant”) alleges the following:
`
`NATURE OF THE ACTION
`
`1. This is an action for patent infringement arising under the Patent Laws of the United
`
`States, 35 U.S.C. § 1 et seq.
`
`THE PARTIES
`
`2. Plaintiff is a limited liability company organized under the laws of the State of Texas
`
`with a place of business at 717 N. Union Street, Suite 127, Wilmington, DE 19805.
`
`3. Upon information and belief, Apple is a corporation organized and existing under the
`
`laws of California, with a place of business at 1 Infinite Loop, Cupertino, California 95014 and
`
`can be served through its registered agent, C T Corporation, 818 West Seventh Street, Suite 930,
`
`Los Angeles, California 90017. Upon information and belief, Apple sells and offers to sell
`
`products and services throughout the United States, including in this judicial district, and
`
`introduces products and services into the stream of commerce and that incorporate infringing
`
`IPR2016-01710
`UNIFIED EX1036
`
`
`
`Case 1:16-cv-00389-LPS-CJB Document 1 Filed 05/25/16 Page 2 of 11 PageID #: 2
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`technology knowing that they would be sold in this judicial district and elsewhere in the United
`
`States.
`
`JURISDICTION AND VENUE
`
`4.
`
`This is an action for patent infringement arising under the Patent Laws of the
`
`United States, Title 35 of the United States Code.
`
`5.
`
`6.
`
`This Court has subject matter jurisdiction under 28 U.S.C. §§ 1331 and 1338(a).
`
`Venue is proper in this judicial district under 28 U.S.C. §§ 1391(b), (c), (d) and/or
`
`1400(b). On information and belief, Defendant conducts business in this District, the claims
`
`alleged in this Complaint arise in this District, and the acts of infringement have taken place and
`
`are continuing to take place in this District.
`
`7.
`
`On information and belief, Defendant is subject to this Court’s general and
`
`specific personal jurisdiction because Defendant has sufficient minimum contacts within the
`
`State of Delaware and this District, pursuant to due process and/or the Delaware Long Arm
`
`Statute because Defendant purposefully availed itself of the privileges of conducting business in
`
`the State of Delaware and in this District, because Defendant regularly conducts and solicits
`
`business within the State of Delaware and within this District, and because Plaintiff’s causes of
`
`action arise directly from Defendant’s business contacts and other activities in the State of
`
`Delaware and this District.
`
`COUNT I – INFRINGEMENT OF U.S. PATENT NO. 7,490,037 B2
`
`8.
`
`The allegations set forth in the foregoing paragraphs 1 through 7 are incorporated
`
`into this First Claim for Relief.
`
`9.
`
`On February 10, 2009, U.S. Patent No. 7,490,037 B2 (“the ’037 patent”), entitled
`
`“Method and Apparatus for Encoding Signals” was duly and legally issued by the United States
`
`Patent and Trademark Office. A true and correct copy of the ’037 patent is attached as Exhibit 1.
`
`
`
`Page 2 of 11
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`
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`Case 1:16-cv-00389-LPS-CJB Document 1 Filed 05/25/16 Page 3 of 11 PageID #: 3
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`10.
`
`The inventions of the ’037 patent resolve technical problems related to encoding
`
`signals, such as digitized audio signals, and processing of such signals. For example, the
`
`inventions allow parties to encode signals in a given transmission or storage format by
`
`implementing encoding that is adapted to a particular transmission channel.
`
`11.
`
`The claims of the ’037 patent do not merely recite the performance of some
`
`business practice known from the pre-Internet world along with the requirement to perform it on
`
`the Internet. Instead, the claims of the ’037 patent recite one or more inventive concepts that are
`
`rooted in computerized signal encoding and processing technology, and overcome problems
`
`specifically arising in the realm of computerized signal encoding and processing technologies.
`
`12.
`
`The claims of the ’037 patent recite an invention that is not merely the routine or
`
`conventional use of signal encoding and processing. Instead, the invention uses a method that
`
`implements encoding that may be adapted to a given transmission channel, resulting in improved
`
`signal transmission. The ’037 patent claims thus for example specify how signals may be
`
`manipulated to yield a desired result.
`
`13.
`
`The technology claimed in the ’037 patent does not preempt all ways of signal
`
`encoding or processing, nor preempt any other well-known or prior art technology.
`
`14.
`
`Accordingly, each claim of the ’037 patent recites a combination of elements
`
`sufficient to ensure that the claim in practice amounts to significantly more than a patent on an
`
`ineligible concept.
`
`15.
`
`Plaintiff is the assignee and owner of the right, title and interest in and to the ’037
`
`patent, including the right to assert all causes of action arising under that patent and the right to
`
`any remedies for infringement of it.
`
`
`
`Page 3 of 11
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`
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`Case 1:16-cv-00389-LPS-CJB Document 1 Filed 05/25/16 Page 4 of 11 PageID #: 4
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`16.
`
`Upon information and belief, Defendant has and continues to directly infringe at
`
`least claims 1, 5, 9-11, 13, 17, 21-22, 24, 29, and 32 of the ’037 patent by making, using, selling,
`
`importing and/or providing and causing to be used products including but not limited to the
`
`Apple HTTP Live Streaming (HLS) Server, which practices a method and/or apparatus in which
`
`a signal is encoded, wherein the encoding format corresponds to at least one property of a
`
`processing device, and wherein a test signal is transmitted by a test signal generator to the
`
`processing device, and wherein at least one property of the processing device is detected (the
`
`“Accused Instrumentalities”).
`
`17.
`
`In particular, claim 1 of the ‘037 patent recites a method of encoding signals
`
`comprising an encoding device for encoding a signal in an encoding format, a processing device
`
`for processing the encoded signal, and a control device that determines the encoding format. The
`
`encoding format corresponds to at least one property of the processing device. The control
`
`device determines the encoding format by transmitting a test signal to the processing device,
`
`wherein the test signal is transmitted by a test signal generator within the control device, and
`
`detecting at least one property of the processing device.
`
`18.
`
`The Accused Instrumentalities infringe claim 1 of the ‘037 patent. (See, e.g.,
`
`https://developer.apple.com/library/mac/documentation/NetworkingInternet/Conceptual/Streami
`
`ngMediaGuide/Introduction/Introduction.html; https://developer.apple.com/streaming/; Best
`
`Practices for Creating and Deploying HTTP Live Streaming Media for the iPhone and iPad,
`
`Workflow,
`
`https://developer.apple.com/library/ios/technotes/tn2224/_index.html#//apple_ref/doc/uid/DTS40
`
`009745-CH1-INTRODUCTION-GETTING_STARTED; ‘037 Patent at 16:57-58.)
`
`
`
`Page 4 of 11
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`
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`Case 1:16-cv-00389-LPS-CJB Document 1 Filed 05/25/16 Page 5 of 11 PageID #: 5
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`19.
`
`Claim 5 of the ‘037 patent recites the method of claim 1, wherein the encoding
`
`format corresponds to the processor power of the processing device so that the encoding format
`
`is determined in such a way that is processed by the processing device in real time.
`
`20.
`
`The Accused Instrumentalities infringe claim 5 of the ‘037 patent. (See, e.g.,
`
`How to Deliver Great Looking HLS Video to Web and Mobile, https://zencoder.com/en/hls-
`
`guide; Best Practices for Creating and Deploying HTTP Live Streaming Media for the iPhone
`
`and iPad, https://developer.apple.com/library/ios/technotes/tn2224/_index.html.)
`
`21.
`
`Claim 9 of the ‘037 patent recites the method of claim 1, wherein the signal is
`
`digitized prior to the encoding operation.
`
`22.
`
`The Accused Instrumentalities infringe claim 9 of the ‘037 patent. (See, e.g.,
`
`https://developer.apple.com/library/mac/documentation/NetworkingInternet/Conceptual/Streami
`
`ngMediaGuide/Introduction/Introduction.html; Best Practices for Creating and Deploying HTTP
`
`Live Streaming Media for the iPhone and iPad, Encode Your Variants,
`
`https://developer.apple.com/library/ios/technotes/tn2224/_index.html.)
`
`23.
`
`Claim 10 of the ‘037 patent recites the method of claim 1, wherein the signal is
`
`encoded in a bit rate-reduced encoding format.
`
`24.
`
`The Accused Instrumentalities infringe claim 10 of the ‘037 patent. (See, e.g.,
`
`Frequently Asked Questions,
`
`https://developer.apple.com/library/ios/documentation/NetworkingInternet/Conceptual/Streamin
`
`gMediaGuide/FrequentlyAskedQuestions/FrequentlyAskedQuestions.html; Best Practices for
`
`Creating and Deploying HTTP Live Streaming Media for the iPhone and iPad, Create Variant
`
`Playlist,
`
`
`
`Page 5 of 11
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`
`
`Case 1:16-cv-00389-LPS-CJB Document 1 Filed 05/25/16 Page 6 of 11 PageID #: 6
`
`https://developer.apple.com/library/ios/technotes/tn2224/_index.html#//apple_ref/doc/uid/DTS40
`
`009745-CH1-INTRODUCTION-GETTING_STARTED; ‘037 Patent at 6:66-7:2.)
`
`25.
`
`Claim 11 of the ‘037 patent recites the method of claim 1, wherein the signal is a
`
`digitized audio signal and the signal is source-encoded having regard to psycho-acoustic
`
`phenomena.
`
`26.
`
`The Accused Instrumentalities infringe claim 11 of the ‘037 patent. (See, e.g.,
`
`Audio Acquisition, Representation and Storage, p.23,
`
`http://www.springer.com/cda/content/document/cda_downloaddocument/9781447167341-
`
`c2.pdf?SGWID=0-0-45-1518289-p177534973;
`
`https://developer.apple.com/library/ios/documentation/NetworkingInternet/Conceptual/Streamin
`
`gMediaGuide/FrequentlyAskedQuestions/FrequentlyAskedQuestions.html; Psycho-Acoustic
`
`Model, http://iedf.in/index.php/blog/item/psycho-acoustic-model.)
`
`27.
`
`Claim 13 of the ‘037 patent recites the method of claim 1, wherein the signals are
`
`audio signals, the audio signals are encoded in bit-rate reduced form by the encoding device,
`
`wherein multiple transmission channels and/or bit rates are available for transmission of the
`
`signal, and the transmission channel and/or the bit rate in the transmission are selected that the
`
`signal can be transmitted in real time.
`
`28.
`
`The Accused Instrumentalities infringe claim 13 of the ‘037 patent. (See, e.g.,
`
`https://developer.apple.com/library/mac/documentation/NetworkingInternet/Conceptual/Streami
`
`ngMediaGuide/Introduction/Introduction.html; Best Practices for Creating and Deploying HTTP
`
`Live Streaming Media for the iPhone and iPad, Create Variant Playlist,
`
`https://developer.apple.com/library/ios/technotes/tn2224/_index.html#//apple_ref/doc/uid/DTS40
`
`009745-CH1-INTRODUCTION-GETTING_STARTED; Id. at Workflow.)
`
`
`
`Page 6 of 11
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`
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`Case 1:16-cv-00389-LPS-CJB Document 1 Filed 05/25/16 Page 7 of 11 PageID #: 7
`
`29.
`
`Claim 17 of the ‘037 patent recites an apparatus for encoding signals comprising
`
`an encoding device for encoding a signal in an encoding format, a processing device for
`
`processing the encoded signal, and a control device that determines the encoding format. The
`
`encoding format corresponds to at least one property of the processing device. The control
`
`device determines the encoding format by transmitting a test signal to the processing device,
`
`wherein the test signal is transmitted by a test signal generator within the control device, and
`
`detecting at least one property of the processing device.
`
`30.
`
`The Accused Instrumentalities infringe claim 17 of the ‘037 patent. (See, e.g.,
`
`https://developer.apple.com/library/mac/documentation/NetworkingInternet/Conceptual/Streami
`
`ngMediaGuide/Introduction/Introduction.html; https://developer.apple.com/streaming/; Best
`
`Practices for Creating and Deploying HTTP Live Streaming Media for the iPhone and iPad,
`
`Workflow,
`
`https://developer.apple.com/library/ios/technotes/tn2224/_index.html#//apple_ref/doc/uid/DTS40
`
`009745-CH1-INTRODUCTION-GETTING_STARTED; Id. at Decide on Your Variants, ‘037
`
`Patent at 16:57-58.)
`
`31.
`
`Claim 21 of the ‘037 patent recites the apparatus of claim 17 that has a decoding
`
`device connected to the control device, which acts as a processing device, for decoding of the
`
`signals, and wherein the encoding format corresponds to at least one property of the decoding
`
`device.
`
`32.
`
`The Accused Instrumentalities infringe claim 21 of the ‘037 patent. (See, e.g.,
`
`Encoding & Delivery Guide, 2.0 Encoding Definitions,
`
`http://support.video.limelight.com/support/docs/encoding_guide/; Best Practices for Creating and
`
`
`
`Page 7 of 11
`
`
`
`Case 1:16-cv-00389-LPS-CJB Document 1 Filed 05/25/16 Page 8 of 11 PageID #: 8
`
`Deploying HTTP Live Streaming Media for the iPhone and iPad, Decide on Your Variants,
`
`https://developer.apple.com/library/ios/technotes/tn2224/_index.html.)
`
`33.
`
`Claim 22 of the ‘037 patent recites the apparatus of claim 17 wherein the test
`
`signal is an encoded audio signal.
`
`34.
`
`The Accused Instrumentalities infringe claim 22 of the ‘037 patent. (See, e.g.,
`
`https://developer.apple.com/library/mac/documentation/NetworkingInternet/Conceptual/Streami
`
`ngMediaGuide/Introduction/Introduction.html; Best Practices for Creating and Deploying HTTP
`
`Live Streaming Media for the iPhone and iPad, Bit Rate Recommendations, Create Variant
`
`Playlist,
`
`https://developer.apple.com/library/ios/technotes/tn2224/_index.html#//apple_ref/doc/uid/DTS40
`
`009745-CH1-VARIANTPLAYLISTS.)
`
`35.
`
`Claim 24 of the ‘037 patent recites the apparatus of claim 17 wherein a storage
`
`unit is connected to the control device and in which at least one encoding format is stored.
`
`36.
`
`The Accused Instrumentalities infringe claim 24 of the ‘037 patent. (See, e.g.,
`
`HTTP Streaming Architecture,
`
`https://developer.apple.com/library/ios/documentation/NetworkingInternet/Conceptual/Streamin
`
`gMediaGuide/HTTPStreamingArchitecture/HTTPStreamingArchitecture.html.)
`
`37.
`
`Claim 29 of the ‘037 patent recites the apparatus of claim 17 wherein the signal
`
`being transmitted with the transmission device and/or stored with the storage device and/or
`
`received from the transmission device can be listened to in a listening device.
`
`38.
`
`The Accused Instrumentalities infringe claim 29 of the ‘037 patent. (See, e.g.,
`
`HTTP Streaming Architecture,
`
`https://developer.apple.com/library/ios/documentation/NetworkingInternet/Conceptual/Streamin
`
`
`
`Page 8 of 11
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`
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`Case 1:16-cv-00389-LPS-CJB Document 1 Filed 05/25/16 Page 9 of 11 PageID #: 9
`
`gMediaGuide/HTTPStreamingArchitecture/HTTPStreamingArchitecture.html;
`
`https://developer.apple.com/streaming/.)
`
`39.
`
`Claim 32 of the ‘037 patent recites the apparatus of claim 17 wherein the control
`
`device can be operated either cable-les or via a cabled interface.
`
`40.
`
`The Accused Instrumentalities infringe claim 32 of the ‘037 patent. (See, e.g.,
`
`Compressor 4: HTTP Live Streaming,
`
`https://support.apple.com/kb/PH21144?viewlocale=en_US&locale=en_US; HTTP Streaming
`
`Architecture,
`
`https://developer.apple.com/library/ios/documentation/NetworkingInternet/Conceptual/Streamin
`
`gMediaGuide/HTTPStreamingArchitecture/HTTPStreamingArchitecture.html; ‘037 Patent at
`
`7:17-20 and 7:30-34.)
`
`41.
`
`On information and belief, these Accused Instrumentalities are used, marketed,
`
`provided to, and/or used by or for Defendant’s partners, clients, customers and end users across
`
`the country and in this District.
`
`42.
`
`Defendant was made aware of the ’037 patent and its infringement thereof at least
`
`as early as the filing of this Complaint.
`
`43.
`
`Upon information and belief, since at least the time Defendant received notice,
`
`Defendant has induced and continues to induce others to infringe at least one claim of the ’037
`
`patent under 35 U.S.C. § 271(b) by, among other things, with specific intent or willful blindness,
`
`actively aiding and abetting others to infringe, including but not limited to Defendant’s partners,
`
`clients, customers, and end users, whose use of the Accused Instrumentalities constitutes direct
`
`infringement of at least one claim of the ’037 patent.
`
`
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`Page 9 of 11
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`Case 1:16-cv-00389-LPS-CJB Document 1 Filed 05/25/16 Page 10 of 11 PageID #: 10
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`44.
`
`In particular, Defendant’s actions that aid and abet others such as its partners,
`
`customers, clients, and end users to infringe include advertising and distributing the Accused
`
`Instrumentalities and providing instruction materials, training, and services regarding the
`
`Accused Instrumentalities. On information and belief, Defendant has engaged in such actions
`
`with specific intent to cause infringement or with willful blindness to the resulting infringement
`
`since Defendant has had actual knowledge of the ’037 patent and knowledge that its acts were
`
`inducing infringement of the ’037 patent since at least the date Defendant received notice that
`
`such activities infringed the ’037 patent.
`
`45.
`
`Upon information and belief, Defendant is liable as a contributory infringer of the
`
`’037 patent under 35 U.S.C. § 271(c) by offering to sell, selling and importing into the United
`
`States signal encoding technologies to be especially made or adapted for use in an infringement
`
`of the ’037 patent. The Accused Instrumentalities are a material component for use in practicing
`
`the ’037 patent and are specifically made and are not a staple article of commerce suitable for
`
`substantial non-infringing use.
`
`46.
`
`Plaintiff has been harmed by Defendant’s infringing activities.
`
`JURY DEMAND
`
`Pursuant to Rule 38 of the Federal Rules of Civil Procedure, Plaintiff demands a trial by
`
`jury on all issues triable as such.
`
`PRAYER FOR RELIEF
`
`WHEREFORE, Plaintiff demands judgment for itself and against Defendant as follows:
`
`A.
`
`B.
`
`An adjudication that Defendant has infringed the ’037 patent;
`
`An award of damages to be paid by Defendant adequate to compensate Plaintiff
`
`for Defendant’s past infringement of the ’037 patent, and any continuing or future infringement
`
`
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`Page 10 of 11
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`
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`Case 1:16-cv-00389-LPS-CJB Document 1 Filed 05/25/16 Page 11 of 11 PageID #: 11
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`through the date such judgment is entered, including interest, costs, expenses and an accounting
`
`of all infringing acts including, but not limited to, those acts not presented at trial;
`
`C.
`
`A declaration that this case is exceptional under 35 U.S.C. § 285, and an award of
`
`Plaintiff’s reasonable attorneys’ fees; and
`
`D.
`
`An award to Plaintiff of such further relief at law or in equity as the Court deems
`
`just and proper.
`
`Dated: May 25, 2016
`
`
`
`
`
`
`
`
`DEVLIN LAW FIRM LLC
`
` /s/ Timothy Devlin
`Timothy Devlin (#4241)
`tdevlin@devlinlawfirm.com
`1306 N. Broom St., 1st Floor
`Wilmington, Delaware 19806
`
`Telephone: (302) 449-9010
`Facsimile: (302) 353-4251
`
`Attorneys for Plaintiff
`Digital Audio Encoding Systems, LLC
`
`Page 11 of 11
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