Case 3:20-cv-06262-LB Document 50 Filed 02/23/21 Page 1 of 38
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`DIAMOND McCARTHY LLP
`Matthew K. Blackburn (CSB 261959)
`mblackburn@diamondmccarthy.com
`Evan E. Boetticher (CSB No. 274377)
`evan.boetticher@diamondmccarthy.com
`150 California Street Suite 2200
`San Francisco, California 94111
`(cid:55)(cid:29)(cid:3)(cid:23)(cid:20)(cid:24)(cid:17)(cid:25)(cid:28)(cid:21)(cid:17)(cid:24)(cid:21)(cid:19)(cid:19)(cid:3)(cid:1733)(cid:3)(cid:41)(cid:29)(cid:3)(cid:23)(cid:20)(cid:24)(cid:17)(cid:21)(cid:25)(cid:22)(cid:17)(cid:28)(cid:21)(cid:19)(cid:19)
`Allan B. Diamond (pro hac vice)
`adiamond@diamondmccarthy.com
`John B. Sample, IV (pro hac vice)
`john.sample@diamondmccarthy.com
`909 Fannin Street, 37th Floor
`Houston, Texas 77010
`(cid:55)(cid:29)(cid:3)(cid:26)(cid:20)(cid:22)(cid:17)(cid:22)(cid:22)(cid:22)(cid:17)(cid:24)(cid:20)(cid:19)(cid:19)(cid:3)(cid:1733)(cid:3)F: 713.333.5199
`Attorneys for Plaintiffs
`NANTWORKS, LLC and
`NANT HOLDINGS IP, LLC
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF CALIFORNIA
`
`NANTWORKS, LLC, and NANT
`HOLDINGS IP, LLC,
`
`Plaintiffs,
`
`v.
`
`NIANTIC, INC.,
`
`Defendant.
`
`Case No. (cid:22)(cid:29)(cid:21)(cid:19)(cid:3032)-(cid:3032)(cid:70)(cid:89)(cid:3032)-(cid:3032)(cid:19)(cid:25)(cid:21)(cid:25)(cid:21)(cid:3032)-(cid:3032)(cid:47)(cid:37)
`THIRD AMENDED COMPLAINT FOR
`PATENT INFRINGEMENT
`JURY TRIAL DEMANDED
`
`Plaintiffs NantWorks, LLC (“NantWorks”) and Nant Holdings IP, LLC
`(“Nant IP”) (collectively, (cid:179)(cid:51)(cid:79)(cid:68)(cid:76)(cid:81)(cid:87)(cid:76)(cid:73)(cid:73)(cid:86)(cid:3032)(cid:180)), by and through their undersigned counsel, bring this
`action for patent infringement under 35 U.S.C. §(cid:3031)271 against defendant Niantic, Inc.
`(“Niantic” or “Defendant”) alleging, based upon personal knowledge with respect to
`themselves and their own acts and on information and belief as to other matters, as follows:
`
`THIRD AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
`
`1
`
`NantWorks, LLC v. Niantic, Inc.,
`3:20-cv-06262-LB
`
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`Niantic's Exhibit 1047
`Page 001
`
`

`

`Case 3:20-cv-06262-LB Document 50 Filed 02/23/21 Page 2 of 38
`
`INTRODUCTION
`This is a civil action by plaintiffs NantWorks and Nant IP against
`1.
`defendant Niantic to stop its infringement of U.S. Patent Nos. 10,403,051 (the
`“’051 Patent”), and 10,664,518 (the “’518 Patent”) (collectively, the “Asserted Patents”),
`which claim groundbreaking augmented reality (“AR”) and gaming systems and methods
`for using them.
`Plaintiffs develop various technologies to advance healthcare,
`2.
`commerce, and digital entertainment. NantWorks founder, Dr. (cid:51)(cid:68)(cid:87)(cid:85)(cid:76)(cid:70)(cid:78)(cid:3)(cid:54)(cid:82)(cid:82)(cid:81)(cid:3032)-(cid:3032)(cid:54)(cid:75)(cid:76)(cid:82)(cid:81)(cid:74)(cid:15)(cid:3)(cid:70)(cid:82)(cid:80)(cid:72)(cid:86)(cid:3)
`from a medical background, and has pioneered revolutionary new therapies for both cancer
`and diabetes by combining medical, engineering, and other disciplines. He is passionate
`about the innovative potential of converging disparate technologies and creative talents, and
`his inventions have been recognized by the issuance of hundreds of patents worldwide
`(cid:85)(cid:68)(cid:81)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:69)(cid:85)(cid:72)(cid:68)(cid:78)(cid:87)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:3)(cid:70)(cid:68)(cid:81)(cid:70)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:85)(cid:68)(cid:83)(cid:76)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:80)(cid:82)(cid:69)(cid:76)(cid:79)(cid:72)(cid:3)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3032)-(cid:3032)(cid:69)(cid:68)(cid:86)ed services. Dr. (cid:54)(cid:82)(cid:82)(cid:81)(cid:3032)-
`(cid:3032)(cid:54)(cid:75)(cid:76)(cid:82)(cid:81)(cid:74)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:89)(cid:76)(cid:71)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:82)(cid:85)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:81)(cid:87)(cid:85)(cid:72)(cid:83)(cid:85)(cid:72)(cid:81)(cid:72)(cid:88)(cid:85)(cid:76)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:76)(cid:72)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:74)(cid:68)(cid:80)(cid:72)(cid:3032)-(cid:3032)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)
`technologies in the fields of healthcare, education, science, and technology.
`3.
`Through multiyear efforts, involving investments of tens of millions of
`dollars and the work of dozens of employees, Plaintiffs have developed a wide array of
`proprietary intellectual property relating to digital entertainment, including AR. As
`innovators, Plaintiffs safeguard their valuable intellectual property and have patented the
`(cid:70)(cid:88)(cid:87)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3032)-(cid:3032)(cid:72)(cid:71)(cid:74)(cid:72)(cid:3)(cid:73)(cid:72)(cid:68)(cid:87)(cid:88)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)their AR, image recognition, and gaming technologies that make
`digital entertainment (cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:86)(cid:3)(cid:88)(cid:86)(cid:72)(cid:73)(cid:88)(cid:79)(cid:15)(cid:3)(cid:72)(cid:73)(cid:73)(cid:76)(cid:70)(cid:76)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:81)(cid:74)(cid:68)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:81)(cid:71)(cid:3032)-(cid:3032)(cid:88)(cid:86)(cid:72)(cid:85), including the
`Asserted Patents.
`Defendant Niantic directly infringes the Asserted Patents by making,
`4.
`using, offering to sell, and/or selling in the United States and/or importing into the United
`States AR games (including its Pokémon Go Application (“Pokémon Go App”) and its
`Harry Potter Application (“Harry Potter App”)). When these AR games are downloaded
`onto mobile devices, permitted to interact with backend servers, and used by Niantic, its
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`THIRD AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
`
`2
`
`NantWorks, LLC v. Niantic, Inc.,
`3:20-cv-06262-LB
`
`Niantic's Exhibit 1047
`Page 002
`
`

`

`Case 3:20-cv-06262-LB Document 50 Filed 02/23/21 Page 3 of 38
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`employees, or its agents, these games practice the inventions claimed in one or more claims
`of each of the Asserted Patents, as detailed below.
`5.
`Defendant Niantic also indirectly infringes the Asserted Patents by
`inducing its customers and/or (cid:70)(cid:82)(cid:81)(cid:86)(cid:88)(cid:80)(cid:72)(cid:85)(cid:3)(cid:72)(cid:81)(cid:71)(cid:3032)-(cid:3032)(cid:88)(cid:86)(cid:72)(cid:85)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:79)(cid:92)(cid:3)(cid:76)(cid:81)(cid:73)(cid:85)(cid:76)(cid:81)(cid:74)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:86)(cid:86)(cid:72)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3)(cid:51)(cid:68)(cid:87)(cid:72)(cid:81)(cid:87)(cid:86)(cid:17)(cid:3)
`Niantic induces infringement by providing AR games, including its Pokémon Go App and
`its Harry Potter App, that when downloaded onto mobile devices, permitted to interact with
`backend servers, and used by customers and/or consumer (cid:72)(cid:81)(cid:71)(cid:3032)-(cid:3032)(cid:88)(cid:86)(cid:72)(cid:85)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:36)(cid:53)(cid:3)(cid:74)(cid:68)(cid:80)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)
`directed and intended by Niantic, cause those customers and/or (cid:72)(cid:81)(cid:71)(cid:3032)-(cid:3032)(cid:88)(cid:86)(cid:72)(cid:85)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:70)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
`inventions claimed in one or more claims of the Asserted Patents, as detailed below.
`6.
`Plaintiffs (cid:69)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:86)(cid:88)(cid:76)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:87)(cid:82)(cid:83)(cid:3)(cid:49)(cid:76)(cid:68)(cid:81)(cid:87)(cid:76)(cid:70)(cid:182)(cid:86)(cid:3)(cid:73)(cid:85)(cid:72)(cid:72)(cid:3032)-(cid:3032)(cid:85)(cid:76)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:3)their patented
`technologies, and they seek damages and other relief for Niantic’s infringement of the
`Asserted Patents.
`
`THE PARTIES
`Plaintiff NantWorks, LLC is a Delaware limited liability company
`7.
`with its principal place of business located at 9920 Jefferson Boulevard, Culver City,
`California 90232. NantWorks is the exclusive licensee of patents covering digital
`entertainment (such as AR and gaming technologies), including the Asserted Patents.
`8.
`Plaintiff Nant Holdings IP, LLC is a Delaware limited liability
`company with its principal place of business located at 9920 Jefferson Boulevard, Culver
`City, California 90232. Nant IP owns patents covering digital entertainment (such as AR
`and gaming technologies), including the Asserted Patents.
`9.
`Defendant Niantic, Inc. is a Delaware corporation with its principal
`place of business located at 2 Bryant Street, Suite 220, San Francisco, California 94105.
`Niantic maintains offices in San Francisco, California, operates and owns the websites
`located at www.nianticlabs.com and niantic.helpshift.com, and markets, offers, and
`distributes throughout the United States (including in California and within this District) AR
`gaming applications, including the Pokémon Go App and the Harry Potter App, that
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`THIRD AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
`
`3
`
`NantWorks, LLC v. Niantic, Inc.,
`3:20-cv-06262-LB
`
`Niantic's Exhibit 1047
`Page 003
`
`

`

`Case 3:20-cv-06262-LB Document 50 Filed 02/23/21 Page 4 of 38
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`infringe the Asserted Patents as set out herein.
`JURISDICTION AND VENUE
`This is an action for patent infringement arising under the Patent Laws
`10.
`(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:86)(cid:15)(cid:3)(cid:22)(cid:24)(cid:3)(cid:56)(cid:17)(cid:54)(cid:17)(cid:38)(cid:17)(cid:3)(cid:134)(cid:3031)(cid:20)(cid:3)et seq. This Court has exclusive subject matter
`jurisdiction over this Complaint and the matters asserted herein under 28 U.S.C. (cid:134)(cid:134)(cid:3031)(cid:20)(cid:22)(cid:22)(cid:20)(cid:3)
`and 1338(a).
`
`This Court has both general and specific personal jurisdiction over
`11.
`Niantic, who has established minimum contacts with this forum such that the exercise of
`jurisdiction over Niantic would not offend traditional notions of fair play and substantial
`justice. Niantic is registered to do business in the State of California (Registration
`No. C3815285). Niantic maintains regular and established places of business in California,
`including its principal place of business in this District, and conducts continuous and
`systematic business in California, including in this District and elsewhere in California. In
`addition, Niantic has committed, and continues to commit, acts that infringe the Asserted
`(cid:51)(cid:68)(cid:87)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:89)(cid:76)(cid:82)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:22)(cid:24)(cid:3)(cid:56)(cid:17)(cid:54)(cid:17)(cid:38)(cid:17)(cid:3)(cid:134)(cid:3031)(cid:21)(cid:26)(cid:20)(cid:3)(cid:76)(cid:81)(cid:3)(cid:38)(cid:68)(cid:79)ifornia (including in this District) by, among
`other things, making, using, testing, offering to sell, selling, and/or importing products and
`services that infringe the Asserted Patents, as set forth herein. In conducting business in
`California and in this District, Niantic derives substantial revenue from the infringing
`products being used, offered for sale, sold, and/or imported in California and this District.
`These acts by Niantic have caused injury to Plaintiffs in California, including in this
`District.
`
`12. (cid:57)(cid:72)(cid:81)(cid:88)(cid:72)(cid:3)(cid:76)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:72)(cid:85)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:39)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:70)(cid:87)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:21)(cid:27)(cid:3)(cid:56)(cid:17)(cid:54)(cid:17)(cid:38)(cid:17)(cid:3)(cid:134)(cid:134)(cid:3031)1391 and 1400(b),
`at least because Niantic has committed and continues to commit acts of direct and indirect
`patent infringement in this District giving rise to this action, regularly conducts business in
`this District, has a regular and established place of business in this District and employs
`engineers and/or other personnel within this District, including at its principal place of
`business in San Francisco, and is subject to personal jurisdiction in this District.
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`THIRD AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
`
`4
`
`NantWorks, LLC v. Niantic, Inc.,
`3:20-cv-06262-LB
`
`Niantic's Exhibit 1047
`Page 004
`
`

`

`Case 3:20-cv-06262-LB Document 50 Filed 02/23/21 Page 5 of 38
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`INTRADISTRICT ASSIGNMENT
`(cid:55)(cid:75)(cid:76)(cid:86)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:88)(cid:68)(cid:79)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:72)(cid:85)(cid:87)(cid:92)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:86)(cid:86)(cid:76)(cid:74)(cid:81)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:68)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:70)(cid:87)(cid:3032)-(cid:3032)(cid:90)(cid:76)(cid:71)(cid:72)(cid:3)
`13.
`(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:38)(cid:76)(cid:89)(cid:76)(cid:79)(cid:3)(cid:47)(cid:82)(cid:70)(cid:68)(cid:79)(cid:3)(cid:53)(cid:88)(cid:79)(cid:72)(cid:3)(cid:22)(cid:3032)-(cid:3032)(cid:21)(cid:11)(cid:70)(cid:12)(cid:17)
`
`BACKGROUND
`NantWorks’ Innovation
`14. Although the potential of digital entertainment (including AR and
`gaming) was clear by 2011, developers faced daunting technical challenges in trying to
`incorporate these technologies into mobile devices. Digital entertainment products had to
`deliver on the promise of a fun and engaging experience at speeds and with a visual quality
`that was unknown at that time in mobile devices.
`15.
`That same year NantWorks was founded and invested in Fourth Wall
`(cid:54)(cid:87)(cid:88)(cid:71)(cid:76)(cid:82)(cid:86)(cid:15)(cid:3)(cid:68)(cid:3)(cid:38)(cid:88)(cid:79)(cid:89)(cid:72)(cid:85)(cid:3)(cid:38)(cid:76)(cid:87)(cid:92)(cid:15)(cid:3)(cid:38)(cid:68)(cid:79)(cid:76)(cid:73)(cid:82)(cid:85)(cid:81)(cid:76)(cid:68)(cid:3032)-(cid:3032)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:15)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:3)(cid:76)(cid:80)(cid:80)(cid:72)(cid:85)(cid:86)(cid:76)(cid:89)(cid:72)(cid:3)(cid:86)(cid:87)(cid:82)(cid:85)(cid:92)(cid:87)(cid:72)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)
`(cid:87)(cid:72)(cid:70)(cid:75)(cid:81)(cid:76)(cid:84)(cid:88)(cid:72)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:74)(cid:68)(cid:80)(cid:76)(cid:81)(cid:74)(cid:17)(cid:3)(cid:55)(cid:75)(cid:76)(cid:86)(cid:3)(cid:69)(cid:72)(cid:74)(cid:68)(cid:81)(cid:3)(cid:68)(cid:3)(cid:73)(cid:82)(cid:88)(cid:85)(cid:3032)-(cid:3032)(cid:92)ear effort toward developing original digital
`entertainment content to enable interaction with fictional worlds using mobile devices,
`browsers, and even social networks.
`16. Nantworks’ engineers initially began conceptualizing an AR game,
`which they would later call “Scavenger Hunt,” and by December 2012 they had (cid:68)(cid:3)(cid:73)(cid:88)(cid:79)(cid:79)(cid:92)(cid:3032)(cid:3)
`operational application which allowed teams of Nantworks’ employees to use their mobile
`devices and search for AR objects around the company’s office during a NantWorks’
`holiday party.
`
`17. By 2013, Nantworks’ AR technologies had caught the attention of
`Jakks Pacific (a leading toy and consumer products company), which partnered with
`Nantworks to develop AR toys using Nantworks’ groundbreaking image recognition
`technology to allow children to interact with associated AR characters using their mobile
`device’s camera:
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`THIRD AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
`
`5
`
`NantWorks, LLC v. Niantic, Inc.,
`3:20-cv-06262-LB
`
`Niantic's Exhibit 1047
`Page 005
`
`

`

`Case 3:20-cv-06262-LB Document 50 Filed 02/23/21 Page 6 of 38
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`https://www.reuters.com/article/us-disneytoys/disney-joins-jakks-la-billionaire-to-bring-
`toys-to-life-idUSBRE9070CU20130108.
`18.
`These early successes tangibly demonstrated AR’s promise in many
`(cid:70)(cid:82)(cid:81)(cid:87)(cid:72)(cid:91)(cid:87)(cid:86)(cid:3)(cid:11)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:77)(cid:88)(cid:86)(cid:87)(cid:3)(cid:74)(cid:68)(cid:80)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:69)(cid:88)(cid:87)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:76)(cid:81)(cid:3032)-(cid:3032)(cid:86)(cid:87)(cid:82)(cid:85)(cid:72)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:80)(cid:82)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:3)
`medicine). However, providing realistic AR on mobile devices has proven to be very
`difficult. Existing mobile platforms required development of proprietary intellectual
`property, which led to the ’051 Patent and the ’518 Patent. Efforts to develop AR(cid:3032)-(cid:3032)based
`games led to development of other proprietary intellectual property.
`19. Nant IP solely owns the Asserted Patents, and NantWorks is the
`exclusive licensee of the Asserted Patents (with the full and exclusive rights to bring suit to
`enforce the Asserted Patents), each of which is described below.
`
`NantWorks’ ’051 Patent
`20. U.S. Patent No. 10,403,051, entitled “Interference based augmented
`reality hosting platforms,” was duly and legally issued by the U.S Patent and Trademark
`Office on September 3, 2019. A true and correct copy of the ’051 Patent is attached as
`Exhibit A. The ’051 Patent identifies Patrick Soon(cid:3032)-(cid:3032)Shiong as the inventor. The patent
`application from which the ’051 Patent issued was filed on November 9, 2018. The
`’051 Patent claims priority through a series of applications to, inter alia, U.S. Provisional
`Appl. No. 61/473,324, filed April 8, 2011.
`21.
`The ’051 Patent explains that AR “represents a presentation of virtual
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`THIRD AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
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`6
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`NantWorks, LLC v. Niantic, Inc.,
`3:20-cv-06262-LB
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`(cid:82)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:86)(cid:3)(cid:68)(cid:79)(cid:82)(cid:81)(cid:74)(cid:3)(cid:86)(cid:76)(cid:71)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:79)(cid:3032)-(cid:3032)(cid:90)(cid:82)(cid:85)(cid:79)(cid:71)(cid:3)(cid:72)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:17)(cid:180) See, e.g., ’051 (cid:51)(cid:68)(cid:87)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:20)(cid:18)(cid:22)(cid:21)(cid:3032)-(cid:3032)(cid:22)(cid:22)(cid:17)(cid:3)(cid:44)(cid:81)(cid:3)(cid:82)(cid:81)(cid:72)(cid:3)(cid:83)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)(cid:36)(cid:53)(cid:3)
`system, users were given access to multiple, distinct, and separate AR layers, and users had
`to manually select which layer of AR content to see. See, e.g., id.(cid:15)(cid:3)(cid:20)(cid:18)(cid:24)(cid:22)(cid:3032)-(cid:3032)(cid:25)(cid:20)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:182)(cid:19)(cid:24)(cid:20) Patent
`explains that “users should be able to seamlessly access or interact with [AR] content as
`naturally as they would interact (cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:85)(cid:72)(cid:68)(cid:79)(cid:3032)-(cid:3032)(cid:90)(cid:82)(cid:85)(cid:79)(cid:71)(cid:3)(cid:72)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:17)(cid:180) See, e.g., id.(cid:15)(cid:3)(cid:20)(cid:18)(cid:25)(cid:22)(cid:3032)-(cid:3032)(cid:25)(cid:26)(cid:17)
`22.
`Then, the ’051 Patent explains that “[s]ome progress had been made
`towards creating a seamless integration between user and augmented reality environments.”
`See, e.g., id.(cid:15)(cid:3)(cid:21)(cid:18)(cid:20)(cid:3032)-(cid:3032)(cid:22)(cid:17)(cid:3)(cid:36)(cid:73)(cid:87)(cid:72)(cid:85)(cid:3)(cid:76)(cid:81)(cid:87)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:76)(cid:81)(cid:74) several existing AR systems that allow some AR
`content contextualization, the ’051 Patent notes that these systems “fail to appreciate that
`objects within an environment or scene can interfere with each other to give rise to an
`augmented reality experience.” See, e.g., id.(cid:15)(cid:3)(cid:21)(cid:18)(cid:22)(cid:3032)-(cid:3032)(cid:21)(cid:28)(cid:30)(cid:3)see also id., (cid:21)(cid:18)(cid:22)(cid:26)(cid:3032)-(cid:3032)(cid:23)(cid:20)(cid:17)
`23. Also, “existing infrastructures fail to treat [AR] objects as distinct
`(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:82)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:81)(cid:3)(cid:76)(cid:81)(cid:73)(cid:85)(cid:68)(cid:86)(cid:87)(cid:85)(cid:88)(cid:70)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3)(cid:68)(cid:74)(cid:82)(cid:81)(cid:76)(cid:86)(cid:87)(cid:76)(cid:70)(cid:3)(cid:62)(cid:86)(cid:76)(cid:70)(cid:3)(cid:68)(cid:74)(cid:81)(cid:82)(cid:86)(cid:87)(cid:76)(cid:70)(cid:3032)(cid:64)(cid:3)(cid:80)(cid:68)(cid:81)(cid:81)(cid:72)(cid:85)(cid:171)(cid:3032)(cid:17)(cid:180) See, e.g., id.,
`(cid:22)(cid:18)(cid:27)(cid:3032)-(cid:3032)(cid:20)(cid:20)(cid:17)(cid:3)Without the ability provided by the ’051 Patent, certain AR objects would always
`appear on top of all other AR objects and could not appear to go behind any other AR
`objects. For example, a gaming avatar (an AR object that is always visible) would not be
`able to go behind or around other AR objects.
`24. As AR objects proliferate, “individuals still require presentation of
`relevant [AR] content especially when features, real, or virtual, of an [AR] can interfere
`with each other.” See, e.g., id.(cid:15)(cid:3)(cid:22)(cid:18)(cid:20)(cid:24)(cid:3032)-(cid:3032)(cid:21)(cid:19)(cid:17)
`25.
`The claims of the ’051 Patent are directed to technological
`improvements in delivering a realistic AR experience with AR objects within an
`environment or scene that can interfere with each other. The claims of the ’051 Patent relate
`to particular solutions that provide AR objects within an environment or scene that can
`interfere with each other. The ’051 Patent, for example, discloses the use of at least one
`context related to the AR capable device and pertinent to the environment based at least on
`device location, identifying relevant AR objects representing available AR objects
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`THIRD AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
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`7
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`NantWorks, LLC v. Niantic, Inc.,
`3:20-cv-06262-LB
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`Niantic's Exhibit 1047
`Page 007
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`Case 3:20-cv-06262-LB Document 50 Filed 02/23/21 Page 8 of 38
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`corresponding to the at least one context, and determining whether to alter presence of a
`relevant AR object based on at least the device location and the virtual element attribute.
`See, e.g., id., 3/43(cid:3032)-(cid:3032)52; see also id,. (cid:21)(cid:20)(cid:18)(cid:23)(cid:26)(cid:3032)-(cid:3032)(cid:21)(cid:21)(cid:18)(cid:21). “Augmented reality context can now be
`used to determine how elements in a scene, a location relevant to an individual, can interfere
`with each other to give rise to relevant [AR] experiences.” See, e.g., id., (cid:22)(cid:18)(cid:23)(cid:28)(cid:3032)-(cid:3032)(cid:24)(cid:21)(cid:30)(cid:3)see also
`id,. (cid:22)(cid:18)(cid:22)(cid:19)(cid:3032)-(cid:3032)(cid:22)(cid:23)(cid:17)
`
`26. As the ’051 Patent explains, relevant AR objects can have an altered
`presence due to interference among elements within a scene. See, e.g., id.(cid:15)(cid:3)(cid:20)(cid:26)(cid:18)(cid:25)(cid:22)(cid:3032)-(cid:3032)(cid:25)(cid:25)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)
`nature of relevant AR objects, the context, and other factors relating to the scene can trigger
`enhanced or suppressed presence. See, e.g., id.(cid:15)(cid:3)(cid:20)(cid:27)(cid:18)(cid:20)(cid:27)(cid:3032)-(cid:3032)(cid:21)(cid:20); see also id., 18/42(cid:3032)-(cid:3032)45. For
`example, Figure 4 of the ’051 Patent shows that an AR object can be either an enhanced
`presence (reference numeral 446A below) or a suppressed presence (reference numeral
`446B below):
`
`The technology of the ’051 Patent enables this type of interaction as well as others, allowing
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`THIRD AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
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`8
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`3:20-cv-06262-LB
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`a much more compelling AR experience.
`27.
`Exemplary claim 1 of the ’051 Patent, for example, reads as follows:
`1. An augmented reality (AR) platform system comprising:
`
`an AR object repository storing available AR objects in a first
`
`(cid:81)(cid:82)(cid:81)(cid:2272)-(cid:2272)(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:76)(cid:87)(cid:82)(cid:85)(cid:92)(cid:3)(cid:70)omputer readable memory; and
`
`an AR server coupled with the AR object repository and,
`
`(cid:88)(cid:83)(cid:82)(cid:81)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:82)(cid:73)(cid:87)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:86)(cid:87)(cid:85)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:86)(cid:87)(cid:82)(cid:85)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:3)(cid:86)(cid:72)(cid:70)(cid:82)(cid:81)(cid:71)(cid:3)(cid:81)(cid:82)(cid:81)(cid:2272)-
`
`(cid:2272)(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:76)(cid:87)(cid:82)(cid:85)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:88)(cid:87)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:80)(cid:72)(cid:80)(cid:82)(cid:85)(cid:92)(cid:3)(cid:69)(cid:92)(cid:3)(cid:68)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:82)(cid:85)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)
`
`configured to:
`
`obtain digital data representative of an environment of an AR
`
`capable mobile device, the digital data including a device
`
`location of the AR capable device and a virtual element
`
`attribute;
`
`determine at least one context related to the AR capable device
`
`and pertinent to the environment based at least on the device
`
`location;
`
`identify relevant AR objects from the AR object repository
`
`representing available AR objects corresponding to the at least
`
`one context;
`
`determine whether to alter presence of a relevant AR object
`
`based on at least the device location and the virtual element
`
`attribute; and
`
`cause the AR capable device to render the relevant AR object
`
`according to its altered presence.
`(Id(cid:17)(cid:15)(cid:3)(cid:21)(cid:20)(cid:18)(cid:23)(cid:26)(cid:3032)-(cid:3032)(cid:21)(cid:21)(cid:18)(cid:21)(cid:12)(cid:17)
`28. According to the U.S. Patent and Trademark Office (“USPTO”)
`examiner, the best prior art was U.S. Patent Publication No. 2010/0017722 to Cohen
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`THIRD AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
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`9
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`NantWorks, LLC v. Niantic, Inc.,
`3:20-cv-06262-LB
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`(“Cohen”), which disclosed an AR gaming platform. ’051 Patent File History, Notice of
`(cid:36)(cid:79)(cid:79)(cid:82)(cid:90)(cid:68)(cid:81)(cid:70)(cid:72)(cid:15)(cid:3)(cid:36)(cid:83)(cid:85)(cid:76)(cid:79)(cid:3)(cid:20)(cid:19)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:28)(cid:15)(cid:3)(cid:68)(cid:87)(cid:3)(cid:21)(cid:3031)–(cid:3031)(cid:22). However, Cohen lacked several claimed features of the
`’051 Patent, including among other features, “determin[ing] whether to alter presence of a
`relevant AR object based on at least the device location and a virtual element attribute” and
`“caus[ing] the AR capable device to render the relevant AR object according to its altered
`presence.” Id(cid:17)(cid:3)(cid:68)(cid:87)(cid:3)(cid:22)(cid:3031)–(cid:3031)(cid:23).
`29. AR platform systems that determined whether to alter presence of a
`relevant AR object based on at least the device location and the virtual element attribute
`were not common or conventional at the time of the ’051 Patent.
`30.
`The inventor of the ’051 Patent recognized that prior AR systems
`failed to deliver an experience with objects within an environment or scene that can
`interfere with each other to give rise to an AR experience. To the contrary, existing AR
`systems sought to avoid interference among elements of the augmented reality by simply
`forcing individuals to select which features to experience. See, e.g., ’051 (cid:51)(cid:68)(cid:87)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:22)(cid:18)(cid:21)(cid:24)(cid:3032)-(cid:3032)(cid:21)(cid:26)(cid:17)(cid:3)
`Also, interference among elements was not managed according to the properties or
`attributes of the specific AR elements. See, e.g. ,id., (cid:22)(cid:18)(cid:21)(cid:26)(cid:3032)-(cid:3032)(cid:21)(cid:28)(cid:17)
`31. As taught by the ’051 Patent, the disclosed invention determines
`whether to alter presence of a relevant AR object based on at least the device location and
`the virtual element attribute. See, e.g. ,id., (cid:36)(cid:69)(cid:86)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:24)(cid:18)(cid:22)(cid:25)(cid:3032)-(cid:3032)(cid:23)(cid:23)(cid:17)
`32. Given the state of the art at the time of the invention of the
`’051 Patent, the inventive concepts of the ’051 (cid:51)(cid:68)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:72)(cid:85)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:70)(cid:82)(cid:81)(cid:89)(cid:72)(cid:81)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:15)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3032)-
`(cid:3032)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:86)(cid:87)(cid:82)(cid:82)(cid:71)(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:85)(cid:82)(cid:88)(cid:87)(cid:76)(cid:81)(cid:72)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:182)(cid:19)(cid:24)(cid:20) Patent discloses, among other things, an unconventional
`and technological solution to an issue arising specifically in the context of AR capable
`devices, and the delivery of AR content to such devices. The solution implemented by the
`’051 Patent provides a specific and substantial improvement over prior AR systems,
`(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:81)(cid:3)(cid:76)(cid:80)(cid:83)(cid:85)(cid:82)(cid:89)(cid:72)(cid:71)(cid:3)(cid:86)(cid:92)(cid:86)(cid:87)(cid:72)(cid:80)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:72)(cid:79)(cid:76)(cid:89)(cid:72)(cid:85)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:53)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:81)(cid:71)(cid:3032)-(cid:3032)(cid:88)(cid:86)(cid:72)(cid:85)(cid:86)(cid:17) The ’051 Patent
`achieves this result by determining at least one context related to the AR capable device and
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`THIRD AMENDED COMPLAINT
`FOR PATENT INFRINGEMENT
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`10
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`NantWorks, LLC v. Niantic, Inc.,
`3:20-cv-06262-LB
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`Niantic's Exhibit 1047
`Page 010
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`Case 3:20-cv-06262-LB Document 50 Filed 02/23/21 Page 11 of 38
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`pertinent to the environment based at least on the device’s location; identifying relevant AR
`objects f