UNITED STATES INTERNATIONAL TRADE COMMISSION
`WASHINGTON, D.C.
`
`CERTAIN MOBILE ELECTRONIC
`
`
`
`In the Matter of
`
`
`
`
`
`DEVICES AND RADIO FREQUENCY
`AND PROCESSING COMPONENTS
`THEREOF
`
`Investigation No. 337-TA-
`
`COMPLAINT UNDER SECTION 337 OF THE
`
`TARIFF ACT OF 1930, AS AMENDED
`
`Complainant
`
`Proposed Respondent
`
`Qualcomm Incorporated
`5775 Morehouse Drive
`San Diego, CA 9212]
`Tel. (858) 587-1121
`
`Apple Inc.
`1 Infinite Loop
`Cupertino, CA 95014
`Tel. (408) 996-1010
`
`Counselfor Complainant Qualcomm
`Incorporated
`
`S. Alex Lasher
`
`QUINN EMANUEL URQUHAR’I‘ & SULLIVAN,
`LLP
`
`3’7"? 6th Street NW, 11th Floor
`
`Washington, DC 20001
`Tel.: (202) 538-8000
`
`David A. NeISOn
`
`Stephen Swedlow
`QUINN EMANUEL URQUHART & SULLIVAN,
`LLP
`
`500 West Madison St., Suite 2450
`
`Chicago, Illinois 60661
`Tel.: (312) ”HOS-”MOO
`
`Steven Chemy
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
`(cid:50)(cid:86)(cid:66)(cid:77)(cid:68)(cid:80)(cid:78)(cid:78)(cid:1)(cid:19)(cid:17)(cid:18)(cid:17)
`Qualcomm 2010
`
`

`

`Richard W. Erwine
`
`Alexander Rudis
`Patrick Curran
`
`QUINN EMANUEL URQUHART & SULLIVAN,
`LLP
`
`51 Madison Avenue, 22nd Floor
`
`New York, NY 10010
`
`Tel-: (212) 849-7000
`
`Sean S. Pak
`
`QUINN EMANUEL URQUHART & SULLIvAN,
`LLP
`
`50 California Street, 22nd Floor
`
`San Francisco, CA 94111
`
`Tel.: (415) 8756600
`
`Tom M. Schaumberg
`Deanna Tanner Okun
`
`Beau Jackson
`
`ADDUCI, MASTRIANI & SCHAUMBERG,
`L. LP.
`
`1133 Connecticut Avenue, N.W., 12th Floor
`
`Washington, DC 20036
`Tel.: (202) 467-6300
`
`Evan R. Chesler
`Keith R. Hummel
`
`Richard J. Stark
`
`Gary A. Bomstein
`J. Wesley Earnhardt
`Yonatan Even
`
`Vanessa A. Lave] y
`CRAVATH, SWAINE & MOORE LLP
`
`Worldwide Plaza, 825 Eighth Avenue
`New York, NY 10019
`
`Tel.: (212) 474-1000
`
`Richard S. Zembek
`
`Eric E. Hall
`Daniel S. Leventhal
`
`Talbot R. Hansum
`
`NORTON ROSE FULBRIGHT US LLP
`
`Fulbright Tower
`1301 McKinney, Suite 5100
`Houston, TX 77010
`
`Tel.: (713) 651-5151
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
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`Qualcomm 2010
`
`

`

`TABLE OF CONTENTS
`
`Bilge
`
`I.
`
`II.
`
`INTRODUCTION .............................................................................................................. 1
`
`PARTIES ............................................................................................................................ 4
`
`A.
`
`B.
`
`Qualcomm Incorporated ......................................................................................... 4
`
`Apple Inc. ............................................................................................................... 8
`
`III.
`
`THE TECHNOLOGIES AND PRODUCTS AT ISSUE ................................................... 8
`
`A.
`
`B.
`
`Products AtIssueS
`
`Background Of The TechnologyS
`
`IV.
`
`THE ASS ERTED PATENTS AND NON ~TECHNICAL DESCRIPTIONS OF
`THE INVENTIONS ......................................................................................................... 13
`
`A.
`
`The ‘356Patent ............... 13
`
`1.
`
`2.
`
`3.
`
`Identification and Ownership of the ’356 Patent...................................... 13
`
`Foreign Counterparts to the ’356 Patent.................................................... l4
`
`Non-Technical Description of the ’356 Patent ......................................... 14
`
`B.
`
`The '336 Patent
`
`15
`
`1.
`
`2.
`
`3.
`
`Identification and Ownership of the ‘336 Patent...................................... 15
`
`Foreign Counterparts t0 the ’336 Patent................................................... 15
`
`Non-Technical Description of the ’336 Patent ...................................._..... 1 S
`
`C.
`
`The ‘674 Patent
`
`16
`
`1.
`
`2.
`
`3.
`
`Identification and Ownership of the ‘674 Patent ...................................... 16
`
`Foreign Counterparts t0 the ’674 Patent................................................... 17
`
`Non—Technical Description of the ’674 Patent ......................................... 1'?
`
`D.
`
`The ’002 Patent .................................................................................................... 17
`
`1.
`
`Identification and Ownership of the ’002 Patent...................................... l?
`
`i
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
`(cid:50)(cid:86)(cid:66)(cid:77)(cid:68)(cid:80)(cid:78)(cid:78)(cid:1)(cid:19)(cid:17)(cid:18)(cid:17)
`Qualcomm 2010
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`2.
`
`3.
`
`Foreign Counterparts t0 the ’002 Patent................................................... 13
`
`Non-Technical Description of the ’002 Patent ......................................... 18
`
`E.
`
`The ‘633 Patent19
`
`1.
`
`2.
`
`3.
`
`Identification and Ownership of the ’633 Patent...................................... 19
`
`Foreign Counterparts to the ’633 Patent..................................................._19
`
`Non-Technical Description of the ‘633 Patent.........................- ................ 19
`
`F.
`
`Licensees to the Asserted Patents ......................................................................... 20
`
`V.
`
`APPLE’S INFRINGEMENT OF THE ASSERTED PATENTS ..................................... 20
`
`A.
`
`B.
`
`C.
`
`D.
`
`E.
`
`Infringement of the ’356 Patent ............................................................................ 20
`
`Infringement of the ’336 Patth............................................................................ 22
`
`Infringement of the ’6?4Patent22
`
`Infringement of the ’002Patent24
`
`Infringement of the ’633 Patent26
`
`VI.
`
`SPECIFIC INSTANCES 0F UNFAIR IMPORTATION AND SALEZ?
`
`VII.
`
`HARMONIZED TARIFF SCHEDULE NUMBERS ...................................................... 28
`
`VIII. RELATED LITIGATION ................................................................................................ 28
`
`IX.
`
`THE DOMESTIC INDUSTRY RELATING TO THE ASSERTED PATENTS ............ 28
`
`A.
`
`B.
`
`Technical Prong .................................................................................................... 29
`
`EconomicProng .................... 30
`
`X.
`
`RELIEF REQUESTED .................................................................................................... 32
`
`ii
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`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
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`Qualcomm 2010
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`

`

`
`
`
`
`EXHIBIT LIST
`
`
`
`m. 'fiD'é‘ficr“.1-
`a$1011
`Certified Co. of us Patent No 9154 356
`
`
`
`
`
`ssi nment Records for U 8 Patent No 9,154 356
`A l
`-
`-
`a
`ertlfied Co. of U 3 Patent No. 9 473 336
`C '
`.
`,
`
`ssi nment Records for U.S Patent No. 9,4?3 336
`A z
`.
`,
`Certified Co of US. Patent No 3 063,674
`n Assi_nment Records for US. Patent No 8,063,674
`Certlfied Co of US Patent No 7 693002
`
`I- A .
`.
`.
`,
`ssi-nment Records for U S Patent No 7,693 002
`.- '
`Certified Co of US Patent No 9,552 633
`Assi nment Records for U S Patent No 9,552 633
`
`
`
`
`
`
`List of ForeLn Counte uarts
`Confidential List of Licensees to One or More of the Asserted Patents
`
`20C
`
`22C
`
`Confidential Re resentative Domestic Industr Claim Charts for the ‘356 Patent
`
`Confidential Retresentative Domestic Industr Claim Charts for the ‘336 Patent
`Confidential Reresentative Domestic Industr Claim Charts for the ‘674 Patent
`
`Confidential Re resentative Domestic Industr Claim Charts for the ‘002 Patent
`Confidential Reresentative Domestic Industr Claim Charts for the ‘633 Patent
`
`Economic Domestic lndust
`
`October 2016 Eamin _s Call
`
`
`
`
`
`
`A. .1e 2017 10K
`
`
`
`
`
`
`
`
`
`
`
`
`
`1"
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
`(cid:50)(cid:86)(cid:66)(cid:77)(cid:68)(cid:80)(cid:78)(cid:78)(cid:1)(cid:19)(cid:17)(cid:18)(cid:17)
`Qualcomm 2010
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`

`

`PHYSICAL EXHIBIT LIST
`
`
`
`
`
`A. .1e iPhone 7 131.15
`
`A..1e iPhone?
`
`A. .1e iPhone 8
`
`
`" ”11
`i “éfi
`
`
`
`
`iv
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
`(cid:50)(cid:86)(cid:66)(cid:77)(cid:68)(cid:80)(cid:78)(cid:78)(cid:1)(cid:19)(cid:17)(cid:18)(cid:17)
`Qualcomm 2010
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`

`

`APPENDIX LIST
`
`E .21 n lies.
`
`
`
`Prosecution Histor of US. Patent No. 9,154,356
`
`
` Patents and Applicable Pages of Technical References Mentioned in the
`
`
`
`
`
`
`
`I.—Proseculion Histor of US. Patent No. 9,473,336
`
`F- Prosecution Histor of U.S. Patent No. 8,063,674
`
`Prosecution Histor of US. Patent No. 7,693,002
`.—
`Patents and Applicable Pages of Technical References Mentioned in the
`Prosecution Histo
`of U.S. Patent No. 9,552,633
`
`
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
`(cid:50)(cid:86)(cid:66)(cid:77)(cid:68)(cid:80)(cid:78)(cid:78)(cid:1)(cid:19)(cid:17)(cid:18)(cid:17)
`Qualcomm 2010
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`

`I.
`
`INTRODUCTION
`
`1.
`
`Complainant Qualcomm Incorporated
`
`(“Qualcomm”
`
`or
`
`“Complainant”)
`
`respectfully files this complaint under Section 337 of the Tariff Act of 1930, as amended, 19
`
`U.S.C.
`
`§ 1337, based on Proposed Respondent Apple lnc.’s (“Apple” or “Respondent")
`
`unlawful importation into the United States, sale for importation into the United States, andfor
`
`sale within the United States after importation of certain mobile electronic devices, including
`
`mobile phones.
`
`2.
`
`This complaint is directed to Apple’s imported mobile electronic devices that do
`
`not incorporate a Qualcomm brand baseband processor modem,l including mobile phones that
`
`infringe one or more of claims 1, 7, 8, 10, 1], 1?, and 18 of U.S. Patent No. 9,154,356 (“the
`
`’356 patent”), andJor claim 4 of U.S. Patent No. 9,473,336 (“the '336 patent”), andfor claims 1,
`
`5-8, 12, 16-18, 21, and 22 of U.S. Patent No. 8,063,674 (“the ’6?4 patent”), andfor claims 1, 2,
`
`3, 4, 7, 8, 9, ll, 17, 20, 21, 22, 23, 31, 32, 33, and 36 of U.S. Patent No. "£693,002 (“the ’002
`
`patent”), andfor claims 1-3, 10—12, 18, and 22-24 of U.S. Patent No. 9,552,633 (“the ’633
`
`patent”) (collectively, the “Asserted Patents"), either literally or under the doctrine of
`
`equivalents.
`
`3.
`
`The only products at issue in this complaint are Apple’s mobile electronic
`
`devices that do not incorporate a Qualcomm brand baseband processor modem (“Accused
`
`Devices”). Apple’s mobile electronic devices that do incorporate a Qualcomm brand baseband
`
`processor modem are not the subject of this complaint, and Complainant will not seek
`
`enforcement of any ITC remedial order that issues as a result of this Investigation against
`
`products that contain a Qualcomm brand baseband processor modem.
`
`' Qualcomm brand baseband processor modems are designed, sold, and distributed by
`Qualcomm and its affiliates.
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
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`Qualcomm 2010
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`4.
`
`Exemplary models of Apple’s mobile electronic devices at issue in this
`
`complaint include the Apple iPhone 7, Apple iPhone 7 Plus, Apple iPhone 8, Apple iPhone 8
`
`Plus, and Apple iPhone X that do not incorporate a Qualcomm brand baseband processor
`
`modem.2
`
`5.
`
`The following table provides a summary of the asserted claims of the Asserted
`
`Patents (ihfpendentggclaims in bold):
`
`
`
`_—
`
`
`
`
`
`
`
`
`1, 2, 3, 4, 7, 8, 9, 11, 17, 20, 21, 22, 23, 31, 32, 33, 36
`
`
`
`
`
`
`6.
`
`Qualcomm, based in San Diego, California, is a global semiconductor and
`
`telecommunications company that designs and markets wireless telecommunications products
`
`and services.
`
`It is the largest domestic provider of telecommunications chipsets and software.
`
`Since its founding in 1985, Qualcomm has invested billions of dollars in the' United States
`
`researching and developing innovations that have enabled wireless telecommunications and
`
`countless mobile technologies. These market-changing innovations have allowed Qualcomm to
`
`grow into one of the largest technology companies in the United States, where it now employs
`
`over 18,000 people, more than two-thirds of whom are engineers.
`
`2 The identification of a specific model or type of mobile electronic device is not intended to
`limit the scope of the investigation. Discovery may reveal that additional Apple products
`infringe the asserted patent claims andlor that additional claims are infringed.
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
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`Qualcomm 2010
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`7.
`
`' Qualcomm helped pioneer advances at
`
`the heart of cellular connectivity,
`
`enabling not only Apple‘s mobile electronic devices, but also the entire smartphone revolution.
`
`Qualcomm‘s patented technologies allow Apple’s mobile electronic devices to send and receive
`vast amounts of data at
`lightning speed. Qualcomm also invented critical
`technologies
`
`improving functions throughout every modern cellular device.
`
`Indeed, Qualcomm’s inventions
`
`make mobile electronic devices desirable to consumers in their daily lives.
`
`8.
`
`Apple rose to dominance relying heavily on Qualcomm’s technology that
`
`enables numerous important features on the iPhone, including providing better battery life.
`
`Further, the iPhone’s value to customers is driven by its Qualcomm-enabled ability to connect
`
`with and transfer data over networks at rapid speeds. Apple CEO Tim Cook has confirmed on
`
`multiple occasions the heavy dependence of the iPhone on high—speed cellular connectivity for
`
`its success. (Ex. 24, ApriliOctober 2016 statements (“There are enormous investments going on
`
`in 4G, and we couldn‘t be more excited about that because it really takes a great network
`
`working with iPhones to produce that great experience for people.”).)
`
`9.
`
`Apple’s unlicensed and unauthorized use of Qualcomm’s technology—including
`
`H
`
`the technology disclosed in the Asserted Patents—to import and sell mobile electronic devices
`
`in the United States constitutes an unfair act within the meaning of Section 337-
`
`10.
`
`On information and belief, the Accused Devices are manufactured andfor sold
`
`for importation into the United States,
`
`imported into the United States, andz’or-sold after
`
`importation into the United States by or on behalf of Apple.
`
`11.
`
`A domestic industry as required by 19 U.S.C. § 1337(a)(2) and (3) exists in the
`
`United States relating to articles protected by Qualcomm‘s Asserted Patents. Qualcomm‘s
`
`domestic industry includes
`
`significant
`
`investments
`
`in plant and equipment,
`
`significant
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
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`Qualcomm 2010
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`employment of labor and capital, and substantial
`
`investments in the exploitation of the
`
`inventions claimed in Qualcomm‘s Asserted Patents, including through engineering, research,
`
`and development.
`
`12.
`
`Qualcomm seeks as relief a permanent limited exclusion order under 19 U.S.C.
`
`§ 13370:!) barring from entry into the United States infringing Accused Devices, or Accused
`
`Devices that are manufactured abroad, sold for importation into the United States, andfor sold in
`
`the United States after importation by or on behalf of Apple.
`
`13.
`
`Qualcomm further seeks a permanent cease and desist order under 19 U.S.C.
`
`§ 1337(f) prohibiting Apple from importing, admitting or withdrawing from a foreign trade
`
`zone, marketing, advertising, demonstrating,
`
`testing, warehousing inventory of, distributing,
`
`offering for sale, selling, licensing, programming, packaging, repackaging, bundling, updating,
`
`soliciting U.S. agents or distributors for, or aiding and abetting other entities in the importation,
`
`sale for importation, sale after importation, transfer, or distribution of its infringing Accused
`
`Devices.
`
`14.
`
`Qualcomm further seeks the imposition of a bond upon importation of Accused
`
`Devices that infringe one or more claims of the ASSertedPatents, during the 60-day Presidential
`
`review period pursuant to 19 U.S.C. § 13370).
`
`11.
`
`PARTIES
`
`A.
`
`Qualcomm Incorporated
`
`lS.
`
`Qualcomm Incorporated is a publicly-traded corporation organized and existing
`
`under the laws of the State of Delaware, with its principal place of business located at 5775
`
`Morehouse Drive, San Diego, California 92121.
`
`16.
`
`Qua1c0mrn was founded in 1985 when seven industry visionaries came together
`
`to discuss the idea of providing quality wireless communications. For more than 30 years.
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
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`Qualcomm 2010
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`Qualcomm has been in the business of researching, designing, developing, and selling
`
`innovative semiconductor and cellular technologies and products for the telecommunications
`
`and mobile industries.
`
`17.
`
`Today, Qualcomm is one of the largest
`
`technology,
`
`semiconductor, and
`
`telecommunications companies in the United States, where it has over 18,000 employees, 68
`
`percent of whom are engineers, and occupies more than 92 buildings (totaling over 6.5 million
`
`sq. ft.) in seventeen states and the District of Columbia. The vast majority of Qualcomm’s
`
`research and deveIOpment occurs in the United States-
`
`18.
`
`At
`
`the core of Qualcomm’s business is.
`
`its industry-leading research and
`
`development focused on enabling cellular systems and products. Since its founding, Qualcomm
`
`has invested tens of billions of dollars in research and development related to cellular, wireless
`
`communications, and mobile processor technology. Qualcomm’s massive research and
`
`development investments have produced numerous innovations. Because of this ongoing
`
`investment, Qualcomm continues to drive the development and commercialization of successive
`
`generations of mobile technology and is one of a handful of companies leading the development
`
`of the next- generation 5G standard.
`
`19.
`
`From its inception, Qualcomm has specialized in innovations to improve digital,
`
`wireless communications systems. Qualcomm is an innovator at both the software level (3.3.,
`
`industry-leading software that runs on a variety of different mobile devices) and at the hardware
`
`level (e.g.,
`
`innovative Chips that enable cutting-edge performance and features in mobile
`
`devices). As a result of its unparalleled commitment to research and development, Qualcomm
`
`has a diverse patent portfolio.
`
`.
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
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`Qualcomm 2010
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`20.
`
`Qualcomm now holds over 19,860 US. patents, including the Asserted Patents
`
`in this investigation.
`
`21.
`
`Qualcomm’s patent portfolio includes patents that are “essential” to cellular
`
`standards, patents that are “essential” to other standards, and patents that are not essential to any
`
`industry standard but reflect valuable non-standardized technologies.
`
`22.
`
`- A standard-essential patent (“SEP”) is a patent that is technically necessary to
`
`practice a feature of an industry standard. A non-standard-essential patent (“NSEP”) is not
`
`technically necessary to practice any feature of an industry standard, but an NSEP may cover an
`
`invention that provides important functionality and value to cellular devices or systems and may
`
`be highly'desired by consumers, cellular device manufacturers, suppliers, or network operators.
`
`23.
`
`As a result of its decades-long commitment to cellular and other mobile R&D,
`
`Qualcomm owns tens of thousands of SEPs and NSEPs worldwide.
`
`24.
`
`All
`
`five Asserted Patents are NSEPs covering Qualcomm’s proprietary
`
`technology and are not necessary to practice any feature of an industry standard.
`
`25.
`
`Cellular communications pose multiple engineering challenges for cellular
`
`systems and mobile devices, such as the Apple iPhone. The speed and volume of cellular
`
`communications are constrained by the radio spectrum over which voice and data travel, as well
`
`as by performance requirements such as voice quality, call drop rate, average data rate,
`
`maximum data rate, battery life, and coverage. Additionally, cellular networks are expensive to
`
`deploy and operate. Thus, communication systems and methodologies face the fundamental
`
`challenge of allowing mobile devices and network equipment to share the capacity of any given
`
`portion of the radio spectrum while still meeting performance requirements.
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
`(cid:50)(cid:86)(cid:66)(cid:77)(cid:68)(cid:80)(cid:78)(cid:78)(cid:1)(cid:19)(cid:17)(cid:18)(cid:17)
`Qualcomm 2010
`
`

`

`26.
`
`Cellular technologies must also address further challenges regarding mobile
`
`devices and how they interact with the network. The software and hardware that power mobile
`
`electronic devices must make the most efficient use of the scarce spectrum available while
`
`working within the size and power constraints of the devices, which need to be small,
`
`lightweight, and efficient. The usefulness of any cellular device depends on these enabling
`
`technologies, which are the technologies that Qualcomm has spent 30 years develoPing.
`
`2?.
`
`A substantial portion of Qualcomm’s research and development activities also
`
`have been directed to its cutting-edge integrated circuit chipsets, which combine multiple
`
`technologies, including advanced multimode modems, application processors, and graphics
`
`engines, as well as the tools to connect these diverse technologies, for use in consumer products
`
`such as smartphones, tablets, and other electronic devices.
`
`In addition to 3G and 4G LTE
`
`technologies, Qualcomm’s chipsets support other wireless and wired connectivity and positional
`
`technologies, including Bluetooth, Ethernet, GPS, and GLONASS. Qualcomm's technology
`
`has also evolved into some of the most advanced systems-on-chips integrating multiple
`
`technologies, including graphics engines, application processors, and multimode modems, onto
`
`a single semiconductor chip.
`
`28.
`
`Qualcomm also conducts research, development, and testing through its use of
`
`Mobile Test Platforms (“MTPs”), which are manufactured in the United States at Qualcomm’s
`
`facilities and incorporate Qualcomm’s modems, processors, and other chipsets, along with
`
`third~party chips into a physical device used for testing and analysis. For example, Qualcomm
`
`works with base station partners to verify the operation and performance of the MTPs.
`
`Qualcomm sells these MTPs to its customers and shares schematics and test results with
`
`potential and existing customers based on this MTP analysis,
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
`(cid:50)(cid:86)(cid:66)(cid:77)(cid:68)(cid:80)(cid:78)(cid:78)(cid:1)(cid:19)(cid:17)(cid:18)(cid:17)
`Qualcomm 2010
`
`

`

`B.
`
`Apple Inc.
`
`29.
`
`Apple Inc. is a California corporation with a principal place of business at
`
`1
`
`Infinite Loop, Cupertino, California, 95014.
`
`30.
`
`Apple is a dominant seller in both the global and domestic markets for mobile
`
`electronic devices. While Apple’s mobile electronic devices are ubiquitous today, Apple had
`
`nothing to do with creating the technology that forms the backbone of the cellular industry.
`
`31.
`
`On information and belief, Apple designs, develops,
`
`tests,
`
`imports into the
`
`United States, offers for sale, sells for importation into the United States, and sells in the United
`
`States after importation infringing mobile electronic devices, including devices sold under the
`
`tradenames- Apple iPhone 1, Apple iPhone 7 Plus, Apple iPhone 8, Apple iPhone 8 Plus, and
`
`Apple iPhone X.
`
`32.
`
`Apple does not have a license from Qualcomm to the Asserted Patents.
`
`III.
`
`THE TECHNOLOGIES AND PRODUCTS AT ISSUE
`
`A.
`
`Products At Issue
`
`33.
`
`Pursuant
`
`to Commission Rule 210.12(a)(12),
`
`the Accused Devices include,
`
`without limitation, certain mobile electronic devices that do not include a Qualcomm brand
`
`baseband processor modem,
`
`including devices sold under the tradenames Apple iPhone 7,
`
`Apple iPhone 7 Plus, Apple iPhone 8, Apple iPhone 8 Plus, and Apple iPhone X, that infringe
`
`one or more claims of the Asserted Patents.
`
`B.
`
`34.
`
`Background Of The Technology
`
`The technologies at issue in this investigation are an innovative collection of
`
`technologies for power management and performance enhancements in mobile electronic
`
`devices. These technologies relate to various aspects and features of mobile devices, including
`
`the design, structure, and operation of products with enhanced carrier aggregation functionality,
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
`(cid:50)(cid:86)(cid:66)(cid:77)(cid:68)(cid:80)(cid:78)(cid:78)(cid:1)(cid:19)(cid:17)(cid:18)(cid:17)
`Qualcomm 2010
`
`

`

`power-efficient radio frequency (RF) signal reception, power-efficient processor and memory
`
`architectures, and image processing.
`
`35.
`
`Qualcomm has been at the forefront of advancing wireless communications and
`
`mobile device technologies,
`
`including the development and commercialization of each
`
`successive generation of cellular technology fr0m second-generation (2G) technologies through
`
`the upcoming fifth- generation (5G) technologies. Each new generation of cellular technology
`
`has depended on countless inventions from a small number of innovators around the world,
`
`none more significant than Qualcomm.
`
`36.
`
`The first commercial cell phone networks were deployed in 1983. These first
`
`generation (1G) networks relied on analog-technology, which was fundamentally limited and
`
`prohibitively expensive. Call quality was poor, and signals often crossed into neighboring
`
`frequencies, causing interference and dropped calls.
`
`37.
`
`By the mid-to-late 19803, a digital technology called Time Division Multiple
`
`Access (“TDMA”) had been developed. TDMA digitized and compressed callers’ voices,
`
`divided a given frequency channel into time slices, and then sent “packets" of compressed data
`
`associated with multiple conversations in rotation in that same frequency,
`
`thus enabling
`
`multiple users and conversations to share the same frequency. By the late 19805, the European
`
`Union determined that its wireless networks would use a TDMA standard known as the Global
`
`System for Mobile communications (“GSM”).
`
`38.
`
`In 1989, Qualcomm publicly announced its groundbreaking Code Division
`
`Multiple Access (“CDMA”) technology. CDMA offered far better call clarity than TDMA and
`
`promised to accommodate roughly ten times as many calls on a single network compared to an
`
`analog system. Instead of transmitting data in time slots, CDMA allows a large number of users
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
`(cid:50)(cid:86)(cid:66)(cid:77)(cid:68)(cid:80)(cid:78)(cid:78)(cid:1)(cid:19)(cid:17)(cid:18)(cid:17)
`Qualcomm 2010
`
`

`

`to communicate at the same time, sharing the same frequency channel. Data associated with
`
`different conversations (or data transmissions) are distinguished from one another through the
`
`use of codes.
`
`Individual calls are encoded, transmitted,
`
`identified, and then decoded and
`
`reassembled on the receiving end. By the mid—1990s, CDMA technology had been widely
`
`accepted.
`
`39.
`
`Based in large part on Qualcomm’s innovations, the mobile industry was thriving
`
`by the late 1990s. As the industry grew, it began working on a 3G solution that could provide
`
`improved data transmission,
`
`reliability and network efficiency. Ultimately, all new 3G
`
`variations that achieved commercial importance were fundamentally based on Qualcomm’s
`
`CDMA method.
`
`40,
`
`Led by Qualcomm‘s efforts, 3G technology became significantly more advanced
`
`in its later years with the releases of major enhancements to Wideband Code Division Multiple
`
`Access (“WCDMA”) technology. This led to the adoption of “35G” and “3.75G” standards,
`
`which significantly increased data speeds and were critical to the smartphone revolution.
`
`41.
`
`Qualcomm also began researching 4G technologies years before
`
`those
`
`technologies were standardized, and a decade before their significant commercial rollout. As
`
`various
`
`industry players worked on 4G technologies, Qualcomm made fundamental
`
`contributions
`
`such as
`
`the application of Orthogonal Frequency Division Multiplexing
`
`(“OFDM”). OFDM became the basis for the 40 standards broadly known as Long-Term
`
`Evolution (“LTE”). This innovation once again expanded network space and vastly boosted
`
`data rates.
`
`42.
`
`It was the development of 3G and 4G technologies—enabled in large part by
`
`Qualcomm—that allowed smartphones to send and receive vast amounts of data at lightning
`
`IO
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
`(cid:50)(cid:86)(cid:66)(cid:77)(cid:68)(cid:80)(cid:78)(cid:78)(cid:1)(cid:19)(cid:17)(cid:18)(cid:17)
`Qualcomm 2010
`
`

`

`speed and propelled smartphones (including the iPhone) to become the fastesbselling consumer
`
`electrOnics devices in history. Qualcomm continues to be a leading contributor to LTE.
`
`43.
`
`Qualcomm also expends considerable effort and resources toward the research
`
`and development of various customized integrated circuits known as Application Specific
`
`Integrated Circuits (“ASICs”) for use in mobile electronic devices. Qualcomm‘s core chip
`
`products for mobile electronic devices are: (1) Baseband Modern chips, which process received
`
`voice and data information and prepare the same for transmission; (2) Radio Frequency (“RF”)
`
`chips, which transmit and receive radio signals I using multiple frequencies;
`
`(3) Power
`
`Management chips, which Optimize power consumption across mobile electronic devices; (4)
`
`applications processors, which act as the central processing unit of the mobile electronic
`
`devices; and (5) chipsets that include a combination of the above products as well as other
`
`hardware elements to support the functionality of mobile electronic devices.
`
`44.
`
`As
`
`a longstanding worldwide leader
`
`in mobile technology innovation,
`
`Qualcomm profoundly understands the pressing need of mobile devices capable of high
`
`performance computing, effective signal transmission, and powerful image processing, all while
`
`using minimal power.
`
`Today, Qualcomm’s massive investments
`
`in enhanced carrier
`
`aggregation, power-efficient radio frequency (RF) signal reception, power—efficient processor
`
`and memory architectures, power management circuitry, image processing, LTE technology,
`
`and chip product development have facilitated the development of enhanced power
`
`consumption in mobile products, better carrier aggregation, 4G in wireless communications, and
`
`the proliferation of suppliers offering LTE chipsets.
`
`Indeed, Qualcomm was the first to make
`
`LTE chips available to device makers and continues to offer the best quality modem and LTE
`
`chips with enhanced capabilities. Qualcomm has driven and continues to drive the development
`
`1‘
`
`(cid:42)(cid:49)(cid:51)(cid:19)(cid:17)(cid:18)(cid:26)(cid:14)(cid:17)(cid:17)(cid:18)(cid:19)(cid:26)
`IPR2019-00129
`(cid:50)(cid:86)(cid:66)(cid:77)(cid:68)(cid:80)(cid:78)(cid:78)(cid:1)(cid:19)(cid:17)(cid:18)(cid:17)
`Qualcomm 2010
`
`

`

`of mobile technologies and modems to not only benefit consumers, but to £1150 drive consumer
`
`demand for new mobile electronic devices.
`
`45.
`
`The Asserted Patents reflect Qualcomm’s dedication and investment in research
`
`and development relating to wireless technology and mobile devices. As mobile electronic
`
`devices have become more powerful with greater functionality, device manufacturers have
`
`faced numerous problems with power consumption, routing complexity, signal interference,
`
`processor performance and efficiency, and image processing, among others. The technologies
`
`of the Asserted Patents solve many of these problems by enhancing the performance of mobile
`
`electronic devices in a power-efficient manner through advanced carrier aggregation, power~
`
`efficient radio frequency (RF) signal reception, carrier signal grouping and amplification,
`
`power-efficient processor and memory architectures, and advanced image processing using
`
`depth mapping.
`
`46.
`
`For example, Qualcomm developed various techniques and hardware designs to
`