UNITED STATES DISTRICT COURT
`WESTERN DISTRICT OF TEXAS
`WACO DIVISION
`
`KOSS CORPORATION,
`
`Plaintiff,
`
`v.
`
`APPLE INC.,
`
`Defendant.
`
`Case No. 6:20-cv-00665
`
`ORIGINAL COMPLAINT FOR PATENT
`INFRINGEMENT
`
`DEMAND FOR JURY TRIAL
`
`ORIGINAL COMPLAINT FOR PATENT INFRINGEMENT
`
`Plaintiff Koss Corporation (“Koss” or “Plaintiff”) files this complaint for patent
`
`infringement against Apple Inc. (“Apple” or “Defendant”) alleging, based on its own knowledge
`
`as to itself and its own actions, and based on information and belief as to all other matters, as
`
`follows:
`
`NATURE OF THE ACTION
`
`1.
`
`This is a civil action arising under the patent laws of the United States, 35 U.S.C. §
`
`1 et seq., including specifically 35 U.S.C. § 271, based on Apple’s willful infringement of U.S.
`
`Patent Nos. 10,206,025 (“the ’025 Patent”), 10,298,451 (“the ’451 Patent”), 10,469,934 (“the ’934
`
`Patent”), 10,491,982 (“the ’982 Patent”), and 10,506,325 (“the ’325 Patent”) (collectively “the
`
`Patents-in-Suit”).
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`APPLE 1129
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`THE PARTIES
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`2.
`
`Plaintiff Koss Corporation is a corporation existing under the laws of the State of
`
`Delaware having its principal place of business located at 4129 North Port Washington Avenue,
`
`Milwaukee, Wisconsin 53212.
`
`3.
`
`Koss markets a complete line of high-fidelity headphones and audio accessories.
`
`Koss’s products, branded under the Koss brand name or private label brands, are sold at various
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`retail chains throughout the United States and the world, including Walmart stores and other large
`
`brick-and-mortar establishments, as well as direct to customers in at least the following cities in
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`this District: Alpine, Austin, Del Rio, El Paso, Midland, Odessa, San Antonio, and Waco.
`
`4.
`
`Koss also serves as an Original Equipment Manufacturer (“OEM”) for a customer
`
`in this Judicial District. In this role, Koss manufactures OEM headphones sold under its customer’s
`
`brand.
`
`5.
`
`On information and belief, Apple is a California corporation having a principal
`
`place of business located at One Apple Park Way Cupertino, California 95014 and regular and
`
`established places of business at 12535 Riata Vista Circle, Austin, Texas and 5501 West Parmer
`
`Lane, Austin, Texas.
`
`6.
`
`On information and belief, Apple is in the process of building a 15,000-employee,
`
`3-million square foot campus in Austin, Texas.
`
`7.
`
`Apple employs thousands of people, including at least hundreds of engineers, who
`
`currently work, and will in the future work, at either the Riata Vista Circle location, the West
`
`Parmer Lane location, or the new 15,000-employee campus location, in Austin, Texas.
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`8.
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`On information and belief, Apple presently employs personnel with responsibility
`
`for Apple’s wearable products, including the Apple AirPods and/or the Apple Beats by Dre product
`
`line, in Austin, Texas.
`
`9.
`
`On information and belief, Apple employs a senior manager in charge of Demand
`
`Management for wearables in the United States, including the Apple AirPods and Apple Beats by
`
`Dre products, in Austin, Texas.
`
`10.
`
`On information and belief, Apple presently employs personnel with responsibility
`
`for online content management related to Apple’s wearable products as well as Apple’s HomePod
`
`product in Austin, Texas.
`
`11.
`
`On information and belief, Apple employs an online content manager with
`
`responsibility for iPhone, iPad, Apple Watch, HomePod, AirPods, and Apple Beats by Dre in
`
`Austin, Texas.
`
`12.
`
`On information and belief, Apple employs a software performance engineer in
`
`Austin, Texas responsible for activating every iPhone, iPad, Apple Watch, and HomePod
`
`worldwide.
`
`13.
`
`On information and belief, Apple employs a Specialty Programs Manager in
`
`Austin, Texas with responsibility for the Apple Watch Series 3 and the HomePod, among other
`
`programs.
`
`14.
`
`On information and belief, Apple operates brick-and-mortar retail establishments
`
`(“Apple Stores”) at Barton Creek Square, Austin, Texas and at Apple Domain Northside, Austin,
`
`Texas.
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`15.
`
`Each of these Apple Store locations offers for sale and sells Apple wearable
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`products (including Apple AirPods and Apple Beats by Dre products), Apple Watch products,
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`Apple iPhone products, and Apple HomePod products.
`
`16.
`
`On information and belief, the Best Buy store at 4627 S. Jack Kultgen Expy., Waco,
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`TX 76706 also sells Apple wearable products (including Apple AirPods and Apple Beats by Dre
`
`products), Apple Watch products, Apple iPhone products, and Apple HomePod products.
`
`17.
`
`Apple is registered to do business in the state of Texas and lists CT Corp. System,
`
`located at 1999 Bryan St., Suite 900, Dallas, TX 75201 as its registered agent in the State of Texas.
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`JURISDICTION AND VENUE
`
`18.
`
`This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331 and
`
`1338(a) because the claims herein arise under the patent laws of the United States, 35 U.S.C. § 1
`
`et seq., including 35 U.S.C. § 271.
`
`19.
`
`This Court has personal jurisdiction over Apple in this action because Apple has
`
`committed acts of infringement within the State of Texas and within this District through, for
`
`example, the sale of Apple AirPods, Apple Beats by Dre products, Apple Watches, Apple iPhones,
`
`and Apple HomePods both online and from Apple Stores in this District. Apple regularly transacts
`
`business in the State of Texas and within this District. Apple engages in other persistent courses
`
`of conduct and derives substantial revenue from products and/or services provided in this District
`
`and in Texas, and has purposefully established substantial, systematic, and continuous contacts
`
`within this District and should reasonably expect to be sued in a court in this District. For example,
`
`Apple has offices in this District and has a registered agent for service in Texas.
`
`20.
`
`Apple continues to grow its presence in this District, further cementing its ties to
`
`this District. Apple operates a website and various advertising campaigns that solicit sales of the
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`infringing products by consumers in this District and in Texas. Apple has entered into partnerships
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`with numerous resellers and distributors to sell and offer for sale the Accused Products to
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`consumers in this District, both online and in stores, and offers support service to customers in this
`
`District. Given these contacts, the Court’s exercise of jurisdiction over Apple will not offend
`
`traditional notions of fair play and substantial justice.
`
`21.
`
`Venue in the Western District of Texas is proper pursuant to 28 U.S.C. §§ 1391(b),
`
`(c) and l400(b). Apple has regular and established places of business in this District, including at
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`12535 Riata Vista Circle and 5501 West Parmer Lane, Austin, Texas. Apple has committed acts
`
`within this judicial district, giving rise to this action. Apple continues to conduct business in this
`
`judicial district, including one or more acts of making, selling, using, importing and/or offering for
`
`sale infringing products or providing support service to Apple’s customers in this District.
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`KOSS’S LEGACY OF AUDIO INNOVATION
`
`22.
`
`23.
`
`Koss was founded in 1953 as a television rental company in Milwaukee, Wisconsin.
`
`In 1958, John C. Koss invented the world’s first SP/3 Stereophone as part of a
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`“private listening system” that would enable the wearer to listen to a phonograph without
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`disturbing others in the vicinity:
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`24.
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`The SP/3 Stereophone provided, for the first time, a high-quality stereophonic
`
`headphone that approximated the sounds of a concert hall.
`
`25.
`
`John C. Koss demonstrated the SP/3 Stereophone at a Wisconsin audio show in
`
`1958. Initially designed to demonstrate the high-fidelity stereo sound that a portable phonograph
`
`player delivered, these revolutionary SP/3 Stereophones became the hit of the show.
`
`26.
`
`The SP/3 Stereophone has since been enshrined in the Smithsonian Museum’s
`
`collection in Washington, DC, with John C. Koss delivering the SP/3 for enshrinement along with
`
`an explanation of the story of the SP/3 in 1972:
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`27.
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`Koss’s commitment to headphone development continued into the 1960s and
`
`beyond. In 1962, Koss developed and brought to market the PRO/4 Stereophone, which was
`
`bestowed with Consumer Union Magazine’s #1 choice award in 1963:
`
`28.
`
`Due to the success and quality of the Pro/4, the United States government awarded
`
`Koss with a contract to install fifty (50) Pro/4 units in the staff, press, and presidential quarters of
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`Air Force One. Passengers accessing the aircraft’s state-of-the-art entertainment system listened
`
`to the system using the Pro/4:
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`29.
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`In 1970, Koss moved its World Headquarters to the current location at 4129 North
`
`Port Washington Ave., Milwaukee, Wisconsin:
`
`30.
`
`Also in 1970, Koss set the standard for full-size professional headphones with its
`
`Pro/4AA:
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`31.
`
`At the time of introduction, the Pro/4AA were regarded as the first dynamic
`
`headphones to deliver true full frequency and high-fidelity performance with noise-isolating
`
`capabilities.
`
`32.
`
`Koss continued improving its Stereophone product line throughout the 1970s and
`
`into the 1980s. In 1984, Koss introduced the Porta Pro, an acclaimed product that set performance
`
`and comfort standards for on-the-go listening:
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`33.
`
`The Porta Pro continues to be one of the most popular headphone products around
`
`the world, particularly because of its exceptional audio fidelity and performance capabilities. In
`
`fact, as recently as 2008, CNET awarded the Porta Pros a four-star rating of 8.3 (out of 10), with
`
`a performance score of 9 (out of 10), stating that “there’s no denying the sound quality here:
`
`they’re
`
`the
`
`ideal companion for mobile audiophiles and home
`
`theater enthusiasts.”
`
`(https://www.cnet.com/reviews/koss-portapro-with-case-review/).
`
`34.
`
`In 1965, Koss introduced the award-winning speaker, the Acoustech X, which was
`
`heralded as a breakthrough product by Billboard Magazine, touting its concert hall quality and
`
`ability to accurately amplify an acoustic guitar to large concert halls. Acoustic System Succeeds
`
`In Classical Guitar Concert, BILLBOARD, May 27, 1967, at 71.
`
`35.
`
`Following on Acoustech X, Koss went on to develop a number of additional
`
`products: the world’s first computer maximized loudspeaker in 1976; the Kossfire speaker line in
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`the 1980s; the dynamic audio/video Dynamite bookshelf series speaker line; a line of
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`portable/desktop computer speakers that employed a unique magnetic shield to protect nearby
`
`computer video and data equipment; and an amplified portable loudspeaker, the M/100, in early
`
`1987.
`
`36.
`
`In 1987, Koss pioneered one of the earliest completely wireless infrared speaker
`
`systems: the JCK 5000. In 1986, Koss also unveiled a portable speaker, the KSC/50, which was
`
`utilized by thousands of members of the United States military during the Gulf War in 1990.
`
`Related to the KSC/50, Koss’s KSC/5000 included a built-in amplifier. Those products were
`
`profiled in a Newsweek feature on October 12, 1987:
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`37.
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`Over the following years, Koss continued to expand its portable speaker offerings,
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`including by expanding into speakerphones for teleconferencing systems with the Speakeasy line,
`
`followed by various additional wireless models for portable use.
`
`38.
`
`Elite musicians, including Tony Bennett, Les Brown, and Frank Sinatra Jr., have
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`used Koss headphones, including the Pro/4, while recording and/or performing. Koss’s official
`
`spokespeople have included music legends Mel “the Velvet Fog” Tormé and Doc Severinsen, the
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`trumpet-playing bandleader for Johnny Carson’s Tonight Show band.
`
`39.
`
`In 1979, John C. Koss was inducted into the Audio Hall of Fame.
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`40.
`
`In 2000, John C. Koss was inducted into the inaugural class of the Consumer
`
`Electronics Hall of Fame.
`
`41.
`
`In 2004, John C. Koss was inducted into the Wisconsin Business Hall of Fame.
`
`KOSS DEVELOPS THE FIRST EVER TRUE WIRELESS HEADPHONES
`
`42.
`
`Continuing its culture of innovation in high-fidelity audio equipment, in the early
`
`2000s, Koss began developing what became known as the “Striva” project. The vision for the
`
`Striva project was borne out of Koss’s recognition that wireless headphones were going to be an
`
`integral part of peoples’ audio consumption. In particular, Koss recognized that as radios were
`
`needing progressively less power, and as batteries and other power sources became smaller and
`
`more efficient, people would eventually consume audio content through headphones wirelessly
`
`connected to some kind of a source, be it a handheld computing device or in the cloud.
`
`43.
`
`In the early 2000s, Koss began making substantial monetary investments in the
`
`Striva project, with the goal of bringing “True Wireless” listening to its loyal customers as the next
`
`in a long series of headphone innovations.
`
`44.
`
`Koss recognized that the future was a wireless world, complete with mobile internet
`
`connectivity that went beyond traditional hardwired, or computer-based, network topologies. It
`
`recognized that wireless ubiquity was coming, and would extend to wearable devices, including
`
`Koss’s area of expertise: the headphone.
`
`45. With these recognitions in mind, Koss made a substantial commitment to investing
`
`in what it saw as the future of headphone technology. This work eventually became the Striva
`
`project, and over the course of its work, Koss invested tens of millions of dollars developing chips,
`
`fabrication techniques, prototype headphones, and other related technology to bring the Striva
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`vision to life.
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`46.
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`In particular, Koss’s work on Striva resulted in the development of a system-on-
`
`chip smaller than a human fingertip that could provide audio and wireless communications
`
`processing on a low power budget for incorporation into headphones of various form factors:
`
`47.
`
`Koss’s work to develop Striva also predicted some of the interactions that modern
`
`headphone users take for granted today. In particular, Koss recognized early on that the inclusion
`
`of a microphone (with appropriate voice recognition software and circuitry) could provide a
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`convenient, hands-free way to interact with wireless headphones. Koss developed technology that
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`could react to such voice prompts, and in fact implemented prototypes that reacted to users saying
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`“Striva” into a headphone-mounted microphone to begin a voice-based interaction to, for example,
`
`switch tracks or adjust headphone volume.
`
`48.
`
`Koss also recognized a headphone concept that users today take for granted:
`
`different headphones for different applications. In particular, as part of the Striva project, Koss
`
`developed different form factors with different performance capabilities depending on anticipated
`
`use. Over-ear headphones provided users with higher-quality sound, ambient noise dampening
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`capabilities, and better battery life (due to additional battery real estate), while in-ear headphones
`
`provided portability and capability in a smaller, less-intrusive package.
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`49.
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`Koss developed prototype in-ear headphones that relied on its chip development
`
`efforts, with working prototypes from the mid-2000s looking very much like commonly-known
`
`consumer products that flood the market a decade-and-a-half later:
`
`50.
`
`In 2012, Koss introduced Wi-Fi enabled headphones, the result of its Striva project,
`
`which BizTimes hailed as the first wireless headphones to use Wi-Fi transmission and credited
`
`Koss with “introducing personal listening to the Internet.” (https://biztimes.com/koss-creates-
`
`wireless-headphones-for-wi-fi-music-access/).
`
`51.
`
`In April 2012, Koss brought to market both an in-ear and over-ear embodiment of
`
`the Striva vision, with the Striva Pro model being the first true Wi-Fi over the ear headphones (and
`
`mirroring many features and aesthetics modern-day users expect in wireless, over-ear
`
`headphones):
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`52.
`
`The Striva Tap, a smaller, in-ear version of the Striva Pro Wi-Fi headphone,
`
`provided users with some of the features that modern-day consumers take for granted in in-ear
`
`headphones, like independent wireless earphones with touch gestures to control listening
`
`preferences by manipulating the surface of the headphones:
`
`53.
`
`Koss also developed (though ultimately did not market) a smart speaker that
`
`incorporated many of the Striva features, albeit in a non-wearable form factor. The Striva-based
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`speaker product had a capacitive touch interface to mimic the features of the Striva headphones,
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`and also included a microphone for voice control. In addition, the Striva-based speaker had the
`
`capability to be included in a distributed network as part of a precursor to the presently-understood
`
`Internet of Things, such that the input devices (e.g., the microphone) could be used to control other
`
`items in the distributed network (e.g., light switches). The speaker therefore allowed, for example,
`
`a user to say “Striva, turn on the lights,” and the lights would turn on.
`
`54.
`
`The Striva-based speaker product, referred to as the LS2, exists as a working
`
`prototype:
`
`55.
`
`Unfortunately, the economic reality of Koss’s market position did not permit it to
`
`bring its Striva-based product vision to the masses. In particular, due to events abroad (and Koss’s
`
`reliance on sales into those foreign countries), Koss’s supply chain and customer base were thrown
`
`into upheaval in the late-2000’s and early-2010’s.
`
`56. Moreover, Koss conducted market research during the mid-2000’s, and concluded
`
`that given the market that was likely to develop for wireless headphones, larger companies with
`
`more manufacturing capability would become a substantial threat to bringing Striva fully to
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`market. As a result, Koss invested substantially on part-purchasing, machinery, fabrication, and
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`the like.
`
`57.
`
`The circumstances above, and other circumstances outside of Koss’s control, meant
`
`that the advanced features first developed for Striva were not able to be fully experienced by the
`
`majority of the purchasing public.
`
`58.
`
`Koss brings the instant lawsuit because the industry has caught up to Koss’s early-
`
`2000s vision: the technology Koss developed as part of its substantial Striva investment has
`
`become standardized, with whole listening ecosystems having been built around the techniques
`
`Koss conceived of over a decade ago.
`
`59. More fundamentally, Koss is responsible for creating an entire headphone industry
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`beginning from its release of the pioneering Stereophone as a ubiquitous way to consume
`
`information in 1958. Apple and others are reaping enormous benefits due to John C. Koss’s vision,
`
`and Koss Corporation’s commitment to that vision, for more than six decades.
`
`APPLE’S LATE FORAY INTO THE WIRELESS HEADPHONE SPACE
`
`60.
`
`In 2014, Apple announced its multi-billion dollar acquisition of Beats Music and
`
`Beats Electronics, a headphone and speaker company formed in 2008. Beats’ first wireless
`
`headphone, Beats by Dr. Dre Wireless, was released in late 2012.
`
`61.
`
`On September 7, 2016, amid much fanfare and nearly four (4) years after Striva hit
`
`the market and two years after Apple’s purchase of Beats, Apple released the Apple AirPods.
`
`Apple touted the AirPods as its “new wireless headphones that use advanced technology to
`
`reinvent how we listen to music, make phone calls, enjoy TV shows and movies, play games and
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`interact with Siri, providing a wireless audio experience [it claims was] not possible before.”
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`(https://www.apple.com/newsroom/2016/09/apple-reinvents-the-wireless-headphones-with-
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`airpods/). The AirPods “automatically connect[] to all your Apple devices simply and seamlessly,
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`and let[] you access Siri with just a double tap” and allow a user to “seamlessly switch from a call
`
`on [an] iPhone to listening to music on [an] Apple Watch.” (Id.). The AirPods also permit a user
`
`to use a vocal trigger (“Hey, Siri”) to alter the listening experience, much like the technology Koss
`
`pioneered with Striva in the mid-2000’s.
`
`62.
`
`Also on September 7, 2016, Apple released the Powerbeats Wireless ear-clip
`
`headphones under the brand Beats by Dre. Powerbeats Wireless were marketed towards athletes
`
`and featured an ear-clip hanger bar (also known as an ear-hook) which provided a secure fit for
`
`active use. Powerbeats Wireless are considered wireless because they do not need to be physically
`
`plugged into a device to play music, they are not considered to be “True Wireless” because the
`
`two ear-clip headphones were connected to one another by a cable. On April 3, 2019, Apple
`
`introduced Powerbeats Pro under the brand Beats by Dre. Unlike Powerbeats Wireless, Powerbeats
`
`Pro are True Wireless ear-clip headphones. Powerbeats Pro feature the Apple H1 Chip, which
`
`among other things, enables users the ability to initiate requests to a network server.
`
`63.
`
`On information and belief, before the AirPods and the Powerbeats Wireless and
`
`Pro, Apple did not have a commercially available True Wireless headphone product.
`
`THE PATENTS-IN-SUIT
`
`64.
`
`On February 12, 2019, U.S. Patent No. 10,206,025, entitled “System with Wireless
`
`Earphones,” was duly and legally issued by the United States Patent and Trademark Office. A
`
`true and accurate copy of the ’025 Patent is attached hereto as Exhibit A.
`
`65.
`
`On May 21, 2019, U.S. Patent No. 10,298,451, entitled “Configuring Wireless
`
`Devices for a Wireless Infrastructure Network,” was duly and legally issued by the United States
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`Patent and Trademark Office. A true and accurate copy of the ’451 Patent is attached hereto as
`
`Exhibit B.
`
`66.
`
`On November 5, 2019, U.S. Patent No. 10,469,934, entitled “System with Wireless
`
`Earphones,” was duly and legally issued by the United States Patent and Trademark Office. A
`
`true and accurate copy of the ’934 Patent is attached hereto as Exhibit C.
`
`67.
`
`On November 26, 2019, U.S. Patent No. 10,491,982, entitled “System with
`
`Wireless Earphones,” was duly and legally issued by the United States Patent and Trademark
`
`Office. A true and accurate copy of the ’982 Patent is attached hereto as Exhibit D.
`
`68.
`
`On December 10, 2019, U.S. Patent No. 10,506,325, entitled “System with
`
`Wireless Earphones,” was duly and legally issued by the United States Patent and Trademark
`
`Office. A true and accurate copy of the ’325 Patent is attached hereto as Exhibit E.
`
`69.
`
`The Patents-in-Suit represent Koss’s significant investment into the wireless
`
`headphone and wearable technology space, including its commitment in the form of decades of
`
`research and millions of dollars.
`
`APPLE’S KNOWLEDGE OF THE PATENTS-IN-SUIT
`
`70.
`
`On September 7, 2017 Koss informed Apple that it was infringing U.S. Patent No.
`
`9,729,959, a parent of several of the Patents-in-Suit.
`
`71.
`
`Over the following two and a half years, Koss and its representatives met with
`
`Apple a total of four times in Apple’s California offices and in the course of those meetings, as
`
`well as several additional email exchanges, provided Apple with claim charts identifying how
`
`Apple infringed certain of Koss’s patents, including each of the Patents-in-Suit.
`
`72.
`
`Prior to the filing of the instant Complaint, Koss informed Apple of its belief that
`
`Apple was infringing each of the Patents-in-Suit.
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`73.
`
`74.
`
`Nevertheless, Apple has not taken a license to the Patents-in-Suit.
`
`On information and belief, Apple has not altered the functionality of any of its
`
`products to avoid infringement of the Patents-in-Suit.
`
`FIRST CAUSE OF ACTION
`
`(Infringement of the ’025 Patent)
`
`75.
`
`Koss incorporates by reference and realleges each and every allegation of
`
`Paragraphs 1 through 74 as if set forth herein.
`
`76.
`
`Koss owns all substantial rights, interest, and title in and to the ’025 Patent,
`
`including the sole and exclusive right to prosecute this action and enforce the ’025 Patent against
`
`infringers, and to collect damages for all relevant times.
`
`77.
`
`The ’025 Patent generally describes wireless earphones that comprise a transceiver
`
`circuit for receiving streaming audio from a data source, such as a digital audio player or a
`
`computer, over a wireless network.
`
`78.
`
`The written description of the ’025 Patent describes in technical detail each of the
`
`limitations of the claims, allowing a skilled artisan to understand the scope of the claims and how
`
`the non-conventional and non-generic combination of claim limitations is patentably distinct from
`
`and improved upon what may have been considered conventional or generic in the art at the time
`
`of the invention.
`
`79.
`
`Apple has made, had made, used, imported, supplied, distributed, sold, and/or
`
`offered for sale products and/or systems, including systems in which its AirPods and/or wireless
`
`Beats by Dre-branded products and/or systems are incorporated (“Accused Headphones”).
`
`80.
`
`As set forth in the attached non-limiting Claim chart (Exhibit F), Apple has
`
`infringed and is infringing at least Claim 1 of the ’025 Patent by making, having made, using,
`
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`importing, supplying, distributing, selling, and/or offering for sale the Accused Headphones. In
`
`particular, the use of the Accused Headphones by Apple to, for example, demonstrate those
`
`products in brick-and-mortar Apple Stores in Austin, Texas or to, for example, test those products,
`
`constitute acts of direct infringement of Claim 1 of the ‘025 Patent.
`
`81.
`
`Apple actively induces infringement of at least Claim 1 of the ’025 Patent by selling
`
`the Accused Headphones with instructions as to how to use the Accused Headphones in a system
`
`such as that recited in the ‘025 Patent. Apple aids, instructs, or otherwise acts with the intent to
`
`cause an end user to use the Accused Headphones. Apple knew of the ’025 Patent and knew that
`
`its use and sale of the Accused Headphones infringe at least Claim 1 of the ’025 Patent.
`
`82.
`
`Apple is also liable for contributory infringement of at least Claim 1 of the ’025
`
`Patent by providing, and by having knowingly provided, a material part of the instrumentalities,
`
`namely the Accused Headphones, used to infringe Claim 1 of the ’025 Patent. The Accused
`
`Headphones have no substantial non-infringing uses. When an end user uses the Accused
`
`Headphones in combination with, for example, an Apple iPhone and/or an Apple Watch, the end
`
`user directly infringes Claim 1 of the ’025 Patent. Apple knew that the Accused Headphones were
`
`especially made for use in an infringing manner prior to the filing of this lawsuit. For at least the
`
`reasons set forth above, Apple contributes to the infringement of the ’025 Patent by others.
`
`83.
`
`Koss has been damaged as a result of the infringing conduct by Apple alleged
`
`above. Thus, Apple is liable to Koss in an amount that compensates it for such infringement,
`
`which by law cannot be less than a reasonable royalty, together with interest and costs as fixed by
`
`this Court under 35 U.S.C. § 284.
`
`84.
`
`Apple’s infringement of the ’025 Patent has caused, and will continue to cause,
`
`Koss to suffer substantial and irreparable harm.
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`85.
`
`Apple has been aware that it infringes the ’025 Patent since at least March 6, 2019.
`
`Upon information and belief, Apple was aware of its infringement of the ’025 Patent at least as
`
`early as February 12, 2019, when the ’025 Patent issued, through Apple’s own freedom-to-operate
`
`analysis, initiated, in part, due to the communications Apple was having with Koss at that time.
`
`86.
`
`On information and belief, to the extent Apple did not learn of the ’025 Patent on
`
`or around February 12, 2019, Apple was willfully blind to its infringement of the ’025 Patent.
`
`87.
`
`Apple’s infringement of the ’025 Patent is, has been, and continues to be, willful,
`
`intentional, deliberate, and/or in conscious disregard of Koss’s rights under the patent.
`
`88.
`
`Koss has complied with 35 U.S.C. § 287 with respect to the ’025 Patent.
`
`SECOND CAUSE OF ACTION
`
`(Infringement of the ’451 Patent)
`
`89.
`
`Koss incorporates by reference and realleges each and every allegation of
`
`Paragraphs 1 through 88 as if set forth herein.
`
`90.
`
`Koss owns all substantial rights, interest, and title in and to the ’451 Patent,
`
`including the sole and exclusive right to prosecute this action and enforce the ’451 Patent against
`
`infringers, and to collect damages for all relevant times.
`
`91.
`
`The ’451 Patent generally describes a credentialed system for accessing an ad hoc
`
`communications link between an electronic device, such as a speaker or medical device, and a
`
`mobile computing device.
`
`92.
`
`The written description of the ’451 Patent describes in technical detail each of the
`
`limitations of the claims, allowing a skilled artisan to understand the scope of the claims and how
`
`the non-conventional and non-generic combination of claim limitations is patentably distinct from
`
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`
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`and improved upon what may have been considered conventional or generic in the art at the time
`
`of the invention.
`
`93.
`
`Apple has made, had made, used, imported, supplied, distributed, sold, or offered
`
`for sale products and/or systems, including systems in which its HomePod and/or Apple Watch
`
`products and/or systems are incorporated (“Accused Networking Devices”).
`
`94.
`
`As set forth in the attached non-limiting Claim chart (Exhibit G), Apple has
`
`infringed and is infringing at least Claim 1 of the ’451 Patent by making, having made, using,
`
`importing, supplying, distributing, selling, and/or offering for sale the Accused Networking
`
`Devices. In particular, the use of the Accused Networking Devices by Apple to, for example,
`
`demonstrate those products in brick-and-mortar Apple Stores in Austin, Texas or to, for example,
`
`test those products, constitute acts of direct infringement of Claim 1 of the ’451 Patent.
`
`95.
`
`Apple actively induces infringement of at least Claim 1 of the ’451 Patent by selling
`
`the Accused Networking Devices with instructions as to how to use the Accused Networking
`
`Devices in a system such as that recited in the ’451 Patent. Apple aids, instructs, or otherwise acts
`
`with the intent to cause an end user to use the Accused Networking Devices. Apple knew of the
`
`’451 Patent and knew that its use and sale of the Accused Networking Devices infringe at least
`
`Claim 1 of the ’451 Patent.
`
`96.
`
`Apple is also liable for contributory infringement of at least Claim 1 of the ’451
`
`Patent by providing, and by having knowingly provided, a material part of the instrumentalities,
`
`namely the Accused Networking Devices, used to infringe Claim 1 of the ’451 Patent. The
`
`Accused Networking Devices have no substantial non-infringing uses. When an end user uses the
`
`Accused Networking Devices in combination with, for example, an Apple iPhone, the end user
`
`directly infringes Claim 1 of the ’451 Patent. Apple knew that the Accused Networking Devices
`
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`were especially made for use in an infringing manner prior to the filing of this lawsuit. For at least
`
`the reasons set forth above, Apple contributes to the infringement of the ’451 Patent by others.
`
`97.
`
`Koss has been damaged as a result of the infringing conduct by Apple alleged
`
`above. Thus, Apple is liable to Koss in an amount that compensates it for such infringement,
`
`which by law cannot be less than a reasonable royalty, together with interest and costs as fixed by
`
`this Court under 35 U.S.C. § 284.
`
`98.
`
`Apple’s infringement of the ’451 Patent has caused, and will continue to cause,
`
`Koss to suffer substantial and irreparable harm.
`
`99.
`
`Apple has been aware that it infringes the ’451 Patent since at least August 5, 2019.
`
`Upon information and belief, Apple was aware of its infringement of the ’451 Patent at least as
`
`early as May 21, 2019, when the ’451 Patent issued, through Apple’s own freedom-to-operate
`
`analysis, initiated, in part, due to the communications Apple was having with Koss at that time.
`
`100. On information and belief, to the extent Apple did not learn of the ’451 Patent on
`
`or around May 21, 2019, Apple was willfully blind to its infringement of the ’451 Patent.
`
`101. Apple’s infringement of the ’451 Patent is, has been, and conti