Case 1:17-cv-00585-VAC-MPT Document 1 Filed 05/21/17 Page 1 of 102 PageID #: 1
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELAWARE
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`C.A. No. _____________
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`JURY TRIAL DEMANDED
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`))))))))))
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`UNIVERSAL SECURE REGISTRY LLC,
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`Plaintiff,
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`v.
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`APPLE INC., VISA INC., and VISA U.S.A.,
`INC.,
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`Defendant.
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`COMPLAINT FOR PATENT INFRINGEMENT
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`Plaintiff Universal Secure Registry LLC ("USR") hereby asserts the following claims for
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`patent infringement against Defendants Apple Inc. ("Apple"), and Visa Inc. and Visa U.S.A. Inc.
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`(collectively, "Visa," and with Apple, "Defendants"), and alleges as follows:
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`NATURE OF THE ACTION
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`1.
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`This is a civil action for patent infringement under the patent laws of the United
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`States, 35 U.S.C. § 1, et seq.
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`2.
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`Defendants have infringed and continue to infringe, have contributed to and
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`continue to contribute to infringement of, and have induced and continue to induce infringement
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`of one or more claims of USR's U.S. Patent Nos. 8,577,813 ("the '813 patent"), 8,856,539 ("the
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`'539 patent"), 9,100,826 ("the '826 patent"), and 9,530,137 ("the '137 patent") (collectively, the
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`"Asserted Patents") at least by providing products, systems and services related to the Apple Pay
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`service.
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`3.
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`USR is the legal owner by assignment of the Asserted Patents, which were duly
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`and legally issued by the United States Patent and Trademark Office ("USPTO"). USR seeks
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`injunctive relief and monetary damages.
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`Apple 1103
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`THE PARTIES
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`4.
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`USR is a limited liability company organized and existing under the laws of the
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`Commonwealth of Massachusetts with its principal place of business at 59 Sargent St. in
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`Newton, Massachusetts.
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`5.
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`Upon information and belief, Defendant Apple Inc. is a corporation organized and
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`existing under the laws of the State of California with its principal place of business at 1 Infinite
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`Loop, Cupertino, California.
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`6.
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`Upon information and belief, Defendant Visa Inc. is a corporation organized and
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`existing under the laws of the State of Delaware with its principal place of business at 900 Metro
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`Center Boulevard in Foster City, California.
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`7.
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`Upon information and belief, Defendant Visa U.S.A. Inc. is a corporation
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`organized and existing under the laws of the State of Delaware with its principal place of
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`business at 900 Metro Center Boulevard in Foster City, California.
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`8.
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`Upon information and belief, each of the Defendants directly and/or indirectly
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`imports, develops, designs, manufactures, distributes, markets, offers to sell and/or sells
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`infringing products and services in the United States, including in the District of Delaware, and
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`otherwise purposefully directs infringing activities to this District in connection with providing
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`the Apple Pay service.
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`9.
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`Upon information and belief and as further explained below, Defendants have
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`been and are acting in concert and are otherwise liable jointly, severally or otherwise for a right
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`to relief related to or arising out of the same transaction, occurrence or series of transactions or
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`occurrences related to the making, using, importing into the United States, offering for sale or
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`selling of at least one infringing product, process, or service in this District in connection with
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`Case 1:17-cv-00585-VAC-MPT Document 1 Filed 05/21/17 Page 3 of 102 PageID #: 3
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`providing the Apple Pay service. In addition, this action involves questions of law and fact that
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`are common to all Defendants.
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`JURISDICTION AND VENUE
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`10.
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`This is a civil action for patent infringement arising under the patent laws of the
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`United States, 35 U.S.C. §§ 1 et seq.
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`11.
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`This Court has subject matter jurisdiction over the matters asserted herein under
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`28 U.S.C. §§ 1331 and 1338(a).
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`12.
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`Apple is subject to this Court's personal jurisdiction. Apple has infringed USR's
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`patents in Delaware by, among other things, engaging in infringing conduct within and directed
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`at or from this District. For example, Apple has purposefully and voluntarily placed one or more
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`of its infringing products, as described below, into the stream of commerce with the expectation
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`that these infringing products will be used in this District. These infringing products have been
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`and continue to be used in this District.
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`13.
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`Apple employs individuals and operates a retail store at 125 Christiana Mall in
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`Newark, Delaware in this District. Upon information and belief, this store sells more infringing
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`iPhones than any other Apple retail location, and sells and/or supports the second-most volume
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`of infringing products out of any Apple retail location. See "Apple's (AAPL) Delaware Store
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`Claims Title for Selling Most iPhones," available at http://abcnews.go.com/Business/apples-
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`delaware-store-claims-title-selling-iphones/story?id=20650009.
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`14.
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`Customers use the infringing Apple Pay service with their Apple devices at a
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`large number of retailers with locations within this District, including Ace Hardware, Chevron,
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`Dunkin' Donuts, KFC, Macy's, McDonald's, Starbucks, and Subway. See "Apple Pay: Where to
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`Use," available at https://www.apple.com/apple-pay/where-to-use/.
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`15.
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`Apple has also repeatedly availed itself of the jurisdiction of this Court by filing
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`complaints for patent infringement in this District (see, e.g., Apple Inc. v. HTC Corp. et al,
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`C.A. No. 11-611-GMS; Apple Inc. v. HTC Corp. et al, C.A. No. 10-544-GMS; Apple Inc. v. HTC
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`Corp. et al, C.A. No. 10-167-GMS; Apple Inc. v. HTC Corp. et al, C.A. No. 10-166-GMS; Apple
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`Inc. v. Atico Int'l USA Inc. et al, C.A. No. 8-283-GMS).
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`16.
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`Visa is subject to this Court's personal jurisdiction. Visa Inc. and Visa U.S.A.
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`Inc. are corporations organized and existing under the laws of the State of Delaware. Visa has
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`infringed USR's patents in Delaware by, among other things, engaging in infringing conduct
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`within and directed at/or from this District. For example, Visa has purposefully and voluntarily
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`placed one or more of its infringing products, as described below, into the stream of commerce
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`with the expectation that these infringing products will be used in this District. These infringing
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`products have been and continue to be used in this District.
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`17.
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`Visa employs individuals and is actively hiring individuals for positions located in
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`Wilmington, Delaware, within this District. See, e.g., "Careers at Visa," available at
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`https://usa.visa.com/careers.html (last accessed May 19, 2017).
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`18.
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`Customers use the infringing Apple Pay service with their Visa payment cards at
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`a large number of retailers with locations within this District, including Ace Hardware, Chevron,
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`Dunkin' Donuts, KFC, Macy's, McDonald's, Starbucks, and Subway. See "Apple Pay: Where to
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`Use," available at https://www.apple.com/apple-pay/where-to-use/.
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`19.
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`Venue is proper in this judicial district pursuant to 28 U.S.C. §§ 1391 and 1400 at
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`least because, as discussed above, Visa is incorporated in this District and Apple has a regular
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`and established place of business in this District, each Defendant is subject to personal
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`jurisdiction in this District, each Defendant regularly conducts business in this District, and each
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`Defendant has committed and continues to commit acts of direct and indirect patent infringement
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`complained of herein within this District.
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`USR'S HISTORY AND PATENTED TECHNOLOGY
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`20.
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`USR was founded by Dr. Kenneth P. Weiss, the current Chairman and CEO of
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`USR and a recognized expert in the fields of information systems security and identity
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`authentication, especially computer-based multifactor identity authentication. Before starting
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`USR, Dr. Weiss founded and served for many years as the CTO and Chairman of the Board of
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`Security Dynamics Technologies Inc., now RSA Security LLC, a part of Dell Technologies. At
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`Security Dynamics, Dr. Weiss invented the SecurID tokens and their underlying algorithm:
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`technology that became a leading form of personal identity authentication for computer security
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`and electronic commerce. Dr. Weiss' SecurID technology is being used by more than 150
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`million people, more than 90% of Fortune 500 companies, and corporations, consumers,
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`governments, and banks in more than 30 countries. His technology has been used by all three
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`branches of the United States government, including the Defense Department, the Treasury
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`Department, the Senate, and the White House.
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`21.
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`In connection with his work at USR, Dr. Weiss has developed and continues to
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`develop innovative technological solutions for identity authentication, computer security, and
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`digital and mobile payment security. USR's patented innovations allow a user to securely
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`authenticate his or her identity using technology built into a personal electronic device combined
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`with the user's own secret and/or biometric information. Such authentication is secure, useful,
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`and convenient across a variety of contexts.
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`22.
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`Applied to payment card transactions (for example, those involving credit, debit,
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`charge, prepaid, gift, or rewards card accounts), USR's technology offers a state-of-the-art
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`processing solution that is both highly secure and highly convenient. USR's patented technology
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`can allow a user to employ an electronic device, such as a smartphone, as an "electronic wallet"
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`capable of interacting with point-of-sale devices (or directly with webpages and other digital
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`storefronts) to safely and securely authorize payments from one or more payment accounts.
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`23.
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`USR's patented technology enables users to conduct highly secure transactions
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`from their mobile phones, laptop computers, and other electronic devices with a simple click,
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`touch, and/or other biometric input. Using aspects of USR's technology, the user device does not
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`store or send any sensitive information, such as personal account information or payment card
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`details, that, if compromised, could be used for fraudulent purposes. Instead, the user device
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`locally generates and sends data including a cryptographic value used for authentication. A new
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`cryptographic value is generated each time a transaction occurs, and the value is verified by the
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`payment processor before the transaction is approved. Using additional aspects of USR's
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`technology, the user device will require the user to authenticate himself or herself via entry of
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`secret information (e.g., a pin) and/or biometric information (e.g., a fingerprint) before the user
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`device will carry out a payment. As a result, even if the user device is lost or stolen or the one-
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`time cryptographic value is intercepted, neither the user device nor the value can be used to make
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`a fraudulent purchase. Hence, the novel technology described and claimed in the Asserted
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`Patents is safe, private, and convenient.
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`24.
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` Today, USR actively develops and markets a line of security applications and
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`products leveraging its patented technology. For example, USR's licensed "USR ID" application
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`has been touted "the most secure personal proxy in the world" and utilizes three-factor
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`authentication to automatically lock and unlock an authorized user's computer as the user walks
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`to and from her computer. A sample image of the USR ID application running on an iPhone is
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`shown below:
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`25.
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`The '813 patent, granted by the USPTO on November 5, 2013, is entitled
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`"Universal Secure Registry." Dr. Weiss is the sole named inventor. USR is the original and
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`current owner by assignment of the '813 patent. A true and correct copy of the '813 patent is
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`attached hereto as Exhibit A.
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`26.
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`The '539 patent, granted by the USPTO on October 7, 2014, is entitled "Universal
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`Secure Registry." Dr. Weiss is the sole named inventor. USR is the original and current owner
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`by assignment of the '539 patent. A true and correct copy of the '539 patent is attached hereto as
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`Exhibit B.
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`27.
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`The '826 patent, granted by the USPTO on August 14, 2015, is entitled "Method
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`and Apparatus for Secure Access Payment and Identification." Dr. Weiss is the sole named
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`inventor. USR is the original and current owner by assignment of the '826 patent. A true and
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`correct copy of the '826 patent is attached hereto as Exhibit C.
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`28.
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`The '137 patent, granted by the USPTO on December 27, 2016, is entitled
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`"Method and Apparatus for Secure Access Payment and Identification." Dr. Weiss is the sole
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`named inventor. USR is the original and current owner by assignment of the '137 patent. A true
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`and correct copy of the '137 patent is attached hereto as Exhibit D.
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`ACTS GIVING RISE TO THIS ACTION
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`29.
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`At the iPhone 6 launch event in September of 2014, Apple CEO Tim Cook
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`explained: "[p]ayments is a huge business. Every day between credit and debit we spend
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`$12 billion. That's over $4 trillion a year and that's just in the United States. And this business is
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`comprised of over 200 million transactions a day." For decades, in a typical transaction, a
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`customer would slide his or her card through a point-of-sale ("POS") device at a merchant
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`checkout location, and the POS device would read information such as card number and
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`expiration date from a magnetic strip on the back of the card. That information would pass
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`through a card network, such as Visa or MasterCard networks, and ultimately to the issuing bank
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`for transaction approval (or disapproval).
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`30.
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`The traditional magnetic strip lacks adequate security and is highly susceptible to
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`fraud. In an attempt to reduce fraud, a consortium of payment-card companies introduced the
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`"EMV chip" into payment cards, which made them more difficult to copy. But cards with the
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`EMV chip, too, are insecure. For example, an EMV chip does not prevent a nefarious actor from
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`carrying out unauthorized transactions using a stolen card, or from intercepting and fraudulently
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`using card information that is transmitted during an ordinary transaction.
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`31.
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`Thus, the need existed for technology that would allow consumers to make
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`payment-card transactions conveniently and with a high-degree of security. Recognizing very
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`early on—long before Apple, Visa, and others in the payment industry—that mobile phones and
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`other personal electronic devices provided an optimal platform to meet this need, Dr. Weiss
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`developed and patented superior technology using such devices to provide a mobile, efficient,
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`and highly secure system for making payment-card transactions. Dr. Weiss was the first in this
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`space, and the secure payment technology that he developed is the core of Apple Pay.
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`32.
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`Recognizing the enormous promise of his technology, Dr. Weiss and USR sought
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`to partner with both and Apple and Visa to develop a commercial implementation. To that end,
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`Dr. Weiss and USR disclosed their patented technology to Apple and Visa a number of years
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`before the development and release of Apple Pay.
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`33.
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`In 2010, USR sent Apple a series of letters describing USR's patented technology.
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`On July 14, 2010, USR sent Apple a letter seeking to partner with Apple to jointly develop a
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`payment-card solution that "is integrated with and centers around a software-modified payment
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`phone." In another letter sent to Apple on September 7, 2010, USR further elaborated that its
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`patented technology, which employed smart mobile devices for secure financial transactions,
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`"eliminates the need for account numbers or any sensitive or private information to be stored in
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`or transmitted from a smart mobile device." That letter also explained that one of USR's allowed
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`patent applications "employ[s] a biometric for identity authentication on a smart phone." On
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`September 21, 2010, USR sent Apple another letter touting the potential benefit of incorporating
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`USR's technology into the iPhone platform, and describing USR's growing patent portfolio.
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`34.
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`Around the same time, USR pursued a partnership with Visa Inc. In mid-2010,
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`Dr. Weiss and USR engaged in a series of confidential discussions with senior representatives of
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`Visa, including then-Chairman and CEO, Joseph Saunders, and then-Global Head of Strategy
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`and Corporate Development, Oliver Jenkyn. During these discussions, USR made detailed
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`presentations of USR's patented technology under protection of a Non-Disclosure Agreement.
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`35.
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`Neither Apple nor Visa ever partnered with USR. Instead, they partnered with
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`each other and with other payment networks and banks to incorporate USR's patented technology
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`into a service called Apple Pay, which works in conjunction with Apple products, like iPhones,
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`iPads, Apple watches, and various Mac computers. Upon information and belief, Apple and
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`Visa began working together on Apple Pay at least as early as January 2013, and Visa dedicated
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`approximately 1,000 people towards the development project with Apple.
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`36.
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`On September 9, 2014, Apple publicly launched Apple Pay in its keynote address
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`introducing the iPhone 6. In this address, Apple touted the same benefits that USR had
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`introduced to Apple and Visa in 2010. For instance, just as USR disclosed to Apple and Visa
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`that its patented technology eliminated the need to store or transmit payment-card account
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`numbers, Apple bragged to its users that with Apple Pay, "the credit card isn't stored on the
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`device." Since then, Apple Pay's growth has been explosive.
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`37.
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`Defendant Visa operates the world's largest payment processing network called
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`VisaNet. Upon information and belief, VisaNet is capable of handling more than 24,000
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`transaction messages per second and processes more than 150 million transactions every day.
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`Upon information and belief, Visa teamed with Apple to develop and incorporate the Apple Pay
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`service into Apple's iOS devices, enabling users to employ their Visa cards as a part of Apple
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`Pay transactions processed using the Visa Token Service, a digital and mobile payment service
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`developed in conjunction with Apple Pay. On information and belief, since Apple Pay launched
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`in 2014, Visa has supported and processed all Apple Pay transactions made with Visa cards.
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`38. Many Delaware-based banks issue US-branded payment cards. Upon information
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`and belief, Apple Pay supports these payment cards and most partner-branded Visa payment
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`cards. Not only do these third-party banks issue payment cards that support Apple Pay, they also
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`authorize and facilitate financial transactions made using Apple Pay. Upon information and
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`belief, these same Delaware-based banks have agreements with Defendants regarding the
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`processing and support of financial transactions made through Apple Pay.
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`39.
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`Upon information and belief, at least the following Apple devices support Apple
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`Pay and infringe one or more claims of the Asserted Patents literally and/or under the doctrine of
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`equivalents: Apple iPhone 7, iPhone 7 Plus, iPhone 6s, iPhone 6s Plus, iPhone 6, iPhone 6 Plus,
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`iPhone SE, iPhone 5, 5s and 5c (paired with Apple Watch), iPad (5th generation), iPad Pro (12.9-
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`inch), iPad pro (9.7-inch), iPad Air 2, iPad mini 4, iPad mini 3, Apple Watch Series 2, Apple
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`Watch Series 1, Apple Watch (1st generation), MacBook Pro with Touch ID, and all Mac models
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`introduced in 2012 or later (with an Apple Pay-enabled iPhone or Apple Watch) (collectively,
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`"Accused Apple Devices"). See "Apple Pay is compatible with these devices," available at
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`https://support.apple.com/en-us/KM207105. Each of the Accused Apple Devices alone, or in
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`combination with one or more other Apple devices, and the Visa payment processing network,
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`the Visa Token Service, and associated Apple and Visa backend servers and systems supporting
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`Apple Pay transactions (collectively, the "Accused Products"), practices USR's patented
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`technology described and claimed in the Asserted Patents.
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`40.
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`In short, Defendants have made extensive use of USR's patented technologies,
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`including the technology described and claimed in the Asserted Patents. USR has no choice but
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`to defend its proprietary and patented technology. USR thus requests that this Court award it
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`damages sufficient to compensate for Defendants' infringement of the Asserted Patents, find this
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`case exceptional and award USR its attorneys' fees and costs, and grant an injunction against
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`Defendants to prevent ongoing infringement of the Asserted Patents.
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`COUNT I: INFRINGEMENT OF U.S. PATENT NO. 8,577,813
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`41.
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`USR incorporates by reference and realleges all the foregoing paragraphs of this
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`Complaint as if fully set forth herein.
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`42.
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`Defendants have directly infringed and are currently directly infringing the '813
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`patent by making, using, selling, offering for sale, and/or importing into the United States,
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`without authority, products, methods, equipment, and/or services that practice one or more
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`claims of the '813 patent in connection with the Apple Pay service, including but not limited to
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`the Apple iPhone 7, iPhone 7 Plus, iPhone 6s, iPhone 6s Plus, iPhone 6, iPhone 6 Plus, iPhone
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`SE, iPhone 5, 5s and 5c (paired with Apple Watch), Apple Watch Series 2, Apple Watch Series
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`1, Apple Watch (1st generation), and all other Apple products that support the Apple Pay service
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`for in-store purchases; the Visa payment processing network, Visa Token Service, and other Visa
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`servers and/or systems that process Apple Pay transactions and/or otherwise support the Apple
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`Pay service for in-store purchases; and other Apple and Visa activities, products and/or systems
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`that process Apple Pay transactions and/or otherwise support the Apple Pay service for in-store
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`purchases (collectively, "the '813 Accused Products"). The '813 Accused Products are non-
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`limiting examples that were identified based on publicly available information, and USR
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`reserves the right to identify additional infringing activities, products and services, including, for
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`example, on the basis of information obtained during discovery.
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`43.
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`As just one non-limiting example, set forth below (with claim language in italics)
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`is a description of infringement of exemplary claim 1 of the '813 patent in connection with an
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`Apple iPhone 7, the Visa payment processing network, and the Visa Token Service. This
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`description is based on publicly available information. USR reserves the right to modify this
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`description, including, for example, on the basis of information about the '813 Accused Products
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`that it obtains during discovery.
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`1(a) An electronic ID device configured to allow a user to select any one of a plurality of
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`accounts associated with the user to employ in a financial transaction, comprising: – Apple and
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`Visa make, use, sell, offer for sale, and/or import products, servers and services that support the
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`Apple Pay service. As an example, Apple sells the iPhone 7 supporting Apple Pay, and Visa
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`processes Apple Pay transactions using Visa cards and the iPhone 7. See, e.g., "iPhone 7 Tech
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`Specs" ("iPhone 7 Tech Specs"), available at http://www.apple.com/iphone-7/specs/ ("Apple
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`Pay - Pay with your iPhone using Touch ID in stores, within apps, and on the web"). The iPhone
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`7 comprises an electronic ID device that is configured to allow a user to select any one of a
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`plurality of accounts (e.g., credit, debit, prepaid, and store card accounts) associated with the user
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`to employ in a financial transaction (e.g., to pay for a purchase at a store using Apple Pay). For
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`example, the iPhone 7 is configured to maintain up to eight credit, debit, prepaid, and store card
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`accounts as a part of Apple Pay on the iPhone 7. See, e.g., "Set up Apple Pay on your iPhone,
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`iPad, Apple Watch, or Mac" ("Set up Apple Pay"), available at https://support.apple.com/en-
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`us/HT204506 ("Get started by adding your credit, debit, or prepaid cards to your iPhone . . . .
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`You can add up to eight cards on any device."). In connection with setting up and using a default
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`or Automatic Selection card and/or selecting a card at the time of purchase, the iPhone 7 is
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`configured to allow a user to select one of multiple accounts to employ as a part of an Apple Pay
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`transaction at a store. See, e.g., "Using Apple Pay in stores, and within apps and websites"
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`("Using Apple Pay"), available at https://support.apple.com/en-us/HT201239 ("Pay with iPhone
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`- To use your default card, rest your finger on Touch ID and hold your iPhone within an inch of
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`the contactless reader until you see Done and a checkmark on the display. . . . To switch cards on
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`your iPhone, hold your device near the reader without resting your finger on Touch ID. When
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`your default card appears, tap it, then tap the one that you want to use. Rest your finger on Touch
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`ID to pay. . . . Use a rewards card - At participating stores, you can receive or redeem rewards
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`using Apple Pay. Just add your rewards card to Wallet and use it when you pay with Apple Pay.
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`If you want your rewards card to appear automatically in a store, go to the card, tap [], then turn
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`on Automatic Selection.");
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`"iOS Security Guide"
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`("iOS Security"), available at
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`https://www.apple.com/business/docs/iOS_Security_Guide.pdf, at 34 ("Wallet: Wallet is used to
`
`add and manage credit, debit, rewards, and store cards and to make payments with Apple Pay."),
`
`38 ("Contactless payments with Apple Pay - If iPhone is on and detects an NFC field, it will
`
`present the user with the relevant credit, debit, prepaid card, or the default card, which is
`
`managed in Settings. The user can also go to the Wallet app and choose a credit or debit card, or
`
`when the device is locked, double-click the Home button."); "Apple Pay Available to Millions of
`
`Visa
`
`Cardholders"
`
`("Apple
`
`Pay
`
`for
`
`Visa
`
`Cardholders"),
`
`available
`
`at
`
`http://pressreleases.visa.com/phoenix.zhtml?c=215693&p=irol-newsarticlePR&ID=1978656
`
`("How to Make a Payment with Apple Pay - Visa cardholders can make in store purchases . . .
`
`by holding the phone in front of a contactless reader and placing their fingertip on the Touch ID
`
`to authorize the payment."); "Visa and Apple Opening a New Era of Payments on Mobile
`
`Devices"
`
`("Visa
`
`and
`
`Apple
`
`Opening
`
`a
`
`New
`
`Era"),
`
`available
`
`at
`
`http://pressreleases.visa.com/phoenix.zhtml?c=215693&p=irol-newsarticlePR&ID=1965351
`
`("Thanks to a new capability called Visa Token Service, participating financial institutions in the
`
`U.S. . . . will be able to add Visa debit and credit cards to Apple Pay, Apple's new payment
`
`service, and enable their customers to make easy and secure purchases at select U.S. merchants
`
`both in stores and in apps.").
`
`Pictures showing an iPhone allowing a user to select a card account to employ in an
`
`Apple Pay transaction are shown below.
`
`
`
`- 14 -
`
`

`

`Case 1:17-cv-00585-VAC-MPT Document 1 Filed 05/21/17 Page 15 of 102 PageID #: 15
`
`
`
`
`
`1(b) a biometric sensor configured to receive a biometric input provided by the user; –
`
`The electronic ID device of an iPhone 7 comprises a biometric sensor (e.g., a Touch ID
`
`fingerprint sensor) configured to receive a biometric input (e.g., fingerprint data) provided by the
`
`user in connection with unlocking the iPhone 7 and/or authorizing an Apple Pay transaction
`
`using Touch ID. See, e.g., iPhone 7 Tech Specs ("Touch ID - Fingerprint sensor built into the
`
`new Home button"); iOS Security Guide, at 7-8 ("The Secure Enclave is responsible for
`
`processing fingerprint data from the Touch ID sensor, determining if there is a match against
`
`registered fingerprints, and then enabling access or purchases on behalf of the user. . . . Touch ID
`
`is the fingerprint sensing system that makes secure access to the device faster and easier. This
`
`technology reads fingerprint data from any angle and learns more about a user's fingerprint over
`
`time, with the sensor continuing to expand the fingerprint map as additional overlapping nodes
`
`are identified with each use. . . . The fingerprint sensor is active only when the capacitive steel
`
`ring that surrounds the Home button detects the touch of a finger, which triggers the advanced
`
`imaging array to scan the finger and send the scan to the Secure Enclave."); Using Apple Pay
`
`
`
`- 15 -
`
`

`

`Case 1:17-cv-00585-VAC-MPT Document 1 Filed 05/21/17 Page 16 of 102 PageID #: 16
`
`("Pay with iPhone - To use your default card, rest your finger on Touch ID and hold your
`
`iPhone within an inch of the contactless reader until you see Done and a checkmark on the
`
`display. . . . To switch cards on your iPhone, hold your device near the reader without resting
`
`your finger on Touch ID. When your default card appears, tap it, then tap the one that you want
`
`to use. Rest your finger on Touch ID to pay.").
`
`A picture identifying the Touch ID sensor on an iPhone 7 is shown below.
`
`
`
`1(c) a user interface configured to receive a user input including secret information
`
`known to the user and identifying information concerning an account selected by the user from
`
`the plurality of accounts; – The electronic ID device of an iPhone 7 comprises a user interface
`
`configured to receive a user input including secret information known to the user (e.g., a
`
`passcode) in connection with unlocking the iPhone 7 and/or authorizing an Apple Pay
`
`transaction and, as described above, to receive identifying information concerning an account
`
`selected by the user from the plurality of accounts (e.g., a credit, debit, prepaid, and/or store card
`
`account to be used as part of an Apple Pay transaction at a store). See 1(a), supra; see also, e.g.,
`
`iPhone 7 Tech Specs ("Display . . . Multi-Touch display"); iOS Security Guide, at 7 ("To use
`
`Touch ID, users must set up their device so that a passcode is required to unlock it. When Touch
`
`ID scans and recognizes an enrolled fingerprint, the device unlocks without asking for the device
`
`
`
`- 16 -
`
`

`

`Case 1:17-cv-00585-VAC-MPT Document 1 Filed 05/21/17 Page 17 of 102 PageID #: 17
`
`passcode. The passcode can always be used instead of Touch ID, and it's still required under the
`
`following circumstances . . . ."), 12 ("Passcodes . . . iOS supports six-digit, four-digit, and
`
`arbitrary-length alphanumeric passcodes. In addition to unlocking the device, a passcode
`
`provides entropy for certain encryption keys."), 37 ("Payment authorization - On devices that
`
`have a Secure Enclave, the Secure Element will only allow a payment to be made after it
`
`receives authorization from the Secure Enclave. On iPhone or iPad, this involves confirming the
`
`user has authenticated with Touch ID or the device passcode. Touch ID is the default method if
`
`available but the passcode can be used at any time instead of Touch ID."); "Apple Pay security
`
`and privacy overview" ("Apple Pay Security"), available at https://support.apple.com/en-
`
`us/HT203027 ("When you pay using Apple Pay in stores. . . . To send your payment
`
`information, you must authenticate using Touch ID or your passcode.").
`
`A picture identifying the user interface on an iPhone 7 is shown below.
`
`
`
`1(d) a communication interface configured to communicate with a secure registry; – The
`
`electronic ID device of an iPhone 7 comprises a communication interface (e.g., a Near Field
`
`Communication (NFC) interface) configured to communicate with a secure registry (e.g., the
`
`Visa payment processing n