UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`WACO DIVISION
`
`AIRE TECHNOLOGY LTD.,
`
`Plaintiff,
`
`Case No. 6:21-cv-01101
`
`JURY TRIAL DEMANDED
`
`v.
`
`APPLE INC.,
`
`Defendant.
`
`COMPLAINT FOR PATENT INFRINGEMENT
`AGAINST APPLE INC.
`
`This is an action for patent infringement arising under the Patent Laws of the United States
`
`of America, 35 U.S.C. § 1 et seq., in which Plaintiff Aire Technology Limited (“Plaintiff” or
`
`“Aire”) makes the following allegations against Defendant Apple Inc. (“Defendant” or “Apple”):
`
`INTRODUCTION
`
`1.
`
`This complaint arises from Apple’s unlawful infringement of the following United
`
`States patents owned by Plaintiff, which relate to improvements in Near Field Communication
`
`(NFC) and secure digital payment solutions: United States Patent Nos. 8,581,706 (“the ’706
`
`Patent”), 8,205,249 (“the ’249 Patent”), and 8,174,360 (“the ’360 Patent”) (collectively, the
`
`“Asserted Patents”).
`
`PARTIES
`
`2.
`
`Plaintiff Aire Technology Limited is a limited liability company organized and
`
`existing under the law of Ireland, with its principal place of business at The Hyde Building, Suite
`
`23, The Park, Carrickmines, Dublin 18, Ireland. Aire is the sole owner by assignment of all rights,
`
`Ex.1011
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`
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`

`

`title, and interest in the Asserted Patents, including the right to recover damages for past, present,
`
`and future infringement.
`
`3.
`
`On information and belief, Defendant Apple Inc. is a publicly traded corporation
`
`organized under the laws of the State of California, with its principal place of business at One
`
`Apple Park Way, Cupertino, CA 95014. Apple may be served with process through its registered
`
`agent, CT Corporation System, at 330 North Brand Boulevard, Suite 700, Glendale, CA 91203.
`
`JURISDICTION AND VENUE
`
`4.
`
`This action arises under the patent laws of the United States, Title 35 of the United
`
`States Code. This Court has original subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331 and
`
`1338(a).
`
`5.
`
`This Court has personal jurisdiction over Apple in this action because Apple has
`
`committed acts within this District giving rise to this action and has established minimum contacts
`
`with this forum such that the exercise of jurisdiction over Apple would not offend traditional
`
`notions of fair play and substantial justice. Apple, directly and through subsidiaries or
`
`intermediaries, has committed and continues to commit acts of infringement in this District by,
`
`among other things, importing, offering to sell, and selling products that infringe the Asserted
`
`Patents.
`
`6.
`
`Venue is proper in this District under 28 U.S.C. §§ 1391 and 1400(b). Apple is
`
`registered to do business in Texas, and upon information and belief, Apple has transacted business
`
`in this District and has committed acts of direct and indirect infringement in this District by, among
`
`other things, making, using, offering to sell, selling, and importing products that infringe the
`
`Asserted Patents. Apple has regular and established places of business in this District, including
`
`at 12545 Riata Vista Cir., Austin, Texas 78727; 12801 Delcour Dr., Austin, Texas 78727; and
`
`
`
`2
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`3121 Palm Way, Austin, Texas 78758.1 Apple also has posted job listings for engineer positions
`
`related to NFC and/or Apple Pay in Austin, Texas, which is a job that concerns the implementation
`
`of the inventions contained in the Asserted Patents.2
`
`THE ASSERTED PATENTS
`
`7.
`
`On November 12, 2013, the United States Patent and Trademark Office issued U.S.
`
`Patent No. 8,581,706 (“the ’706 Patent”), entitled “Data storage medium and method for
`
`contactless communication between the data storage medium and a reader,” after full and fair
`
`examination. Plaintiff is the assignee of all rights, title, and interest in and to the ’706 Patent and
`
`possesses all rights of recovery under the ’706 Patent, including the right to recover damages for
`
`past, present, and future infringement. The ’706 Patent is valid and enforceable. A true and correct
`
`copy of the ’706 Patent is attached hereto as Exhibit 1.
`
`8.
`
`On June 19, 2012, the United States Patent and Trademark Office issued U.S. Patent
`
`No. 8,205,249 (“the ’249 Patent”), entitled “Method for carrying out a secure electronic transaction
`
`using a portable data support,” after full and fair examination. Plaintiff is the assignee of all rights,
`
`title, and interest in and to the ’249 Patent and possesses all rights of recovery under the ’249
`
`Patent, including the right to recover damages for past, present, and future infringement. The ’249
`
`Patent is valid and enforceable. A true and correct copy of the ’249 Patent is attached hereto as
`
`Exhibit 2.
`
`
`1 See, e.g., https://www.apple.com/newsroom/2019/11/apple-expands-in-austin/;
`https://www.google.com/maps/place/Apple+Inc./@30.4324406,-
`97.7359733,15z/data=!4m5!3m4!1s0x0:0x5852421ec4ac410c!8m2!3d30.4322558!4d-
`97.7359386; https://www.apple.com/retail/domainnorthside/.
`
` 2
`
` See, e.g., https://jobs.apple.com/en-us/details/200292503/nfc-uwb-field-design-
`engineer?team=HRDWR; https://jobs.apple.com/en-us/details/200299202/software-engineer-
`apple-pay?team=SFTWR.
`
`
`
`3
`
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`

`

`9.
`
`On May 8, 2012, the United States Patent and Trademark Office issued U.S. Patent
`
`No. 8,174,360 (“the ’360 Patent”), entitled “Communication apparatus for setting up a data
`
`connection between intelligent devices,” after full and fair examination. Plaintiff is the assignee
`
`of all rights, title, and interest in and to the ’360 Patent and possesses all rights of recovery under
`
`the ’360 Patent, including the right to recover damages for past, present, and future infringement.
`
`The ’360 Patent is valid and enforceable. A true and correct copy of the ’360 Patent is attached
`
`hereto as Exhibit 3.
`
`APPLE’S INFRINGEMENT
`
`10.
`
`The allegations provided below are exemplary and without prejudice to Plaintiff’s
`
`infringement contentions provided pursuant to the Court’s scheduling order and local rules.
`
`Plaintiff’s claim construction contentions regarding the meaning and scope of the claim terms will
`
`be provided under the Court’s scheduling order and local rules. As detailed below, each element
`
`of at least one claim of each of the Asserted Patents is literally present in the accused products. To
`
`the extent that any element is not literally present, each such element is present under the doctrine
`
`of equivalents. Plaintiff’s analysis below should not be taken as an admission that the preamble is
`
`limiting. While publicly available information is cited below, Plaintiff may rely on other forms of
`
`evidence to prove infringement, including evidence that is solely in the possession of Apple and/or
`
`third parties.
`
`11.
`
`The accused products include at least the following products, as well as products
`
`with reasonably similar functionality, including all Plus and Max sub-models. Identification of
`
`the accused products will be provided in Plaintiff’s infringement contentions pursuant to the
`
`Court’s scheduling order and local rules. Apple imports, uses, makes, offers for sale, and sells in
`
`the United States the following products that support NFC and/or mobile payment applications,
`
`
`
`4
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`such as Apple Pay, that infringe at least one claim of the Asserted Patents: iPhone 6, 6 Plus, 6S,
`
`6S Plus, SE (first and second generation), 7, 7 Plus, 8, 8 Plus, X, XR, XS, XS Max, 11, 11 Pro, 11
`
`Pro Max, 12, 12 mini, 12 Pro, 12 Pro Max, 13, 13 mini, 13 Pro, 13 Pro Max, Watch Series 1,
`
`Watch Series 2, Watch Series 3, Watch Series 4, Watch Series 5, Watch SE, Watch Series 6, and
`
`Watch Series 7 (the “Accused Products”). See https://support.apple.com/en-us/HT208531.
`
`COUNT I
`
`INFRINGEMENT OF U.S. PATENT NO. 8,581,706
`
`12.
`
`Plaintiff realleges and incorporates by reference the foregoing paragraphs as if fully
`
`set forth herein.
`
`13.
`
`Apple has been and is now directly infringing the ’706 Patent, literally and/or under
`
`the doctrine of equivalents, in violation of 35 U.S.C. § 271(a), including by making, using, selling,
`
`and/or offering for sale in the United States or importing into the United States infringing products,
`
`including at least the Accused Products identified above. The Accused Products satisfy all of the
`
`claim limitations of one or more claims of the ’706 Patent, including but not limited to claim 11.
`
`14.
`
`Claim 11 of the ’706 Patent recites a “contactlessly communicating portable data
`
`carrier.” To the extent the preamble is limiting, the Accused Products each include a portable data
`
`carrier that is capable of contactless communication through the use of Near Field Communication
`
`(NFC) technology. For example, Apple advertises that the Accused Products support NFC:
`
`iPhone 13
`
`Overview
`
`Tech Specs CD
`
`All models
`
`5G (sub-6 GHz and mmWave)'
`
`Gigabit LTE with 4x4 MIMO and LAA7
`
`Wi-Fi 6 (802.11ax) with 2x2 MIMO
`
`Bluetooth 5.0 wireless technology
`
`Ultra Wideband chip for spatial awareness8
`
`NFC with reader mode
`
`Express Cards with power reserve
`
`
`
`
`
`5
`
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`

`See https://www.apple.com/iphone-13/specs/.
`
`15.
`
`Claim 11 of the ’706 Patent recites that the portable data carrier comprises “at least
`
`two applications stored thereon.” The Accused Products are configured to store at least two
`
`applications. For example, the Accused Products are configured to store at least two applications
`
`that utilize NFC:
`
`Carry one thing.
`Everything.
`
`The Wallet app lives right on your iPhone. It's where you
`securely keep your credit and debit cards, transit
`cards, boarding passes, tickets, car keys, and more — all in
`one place. And it all works with iPhone or Apple Watch, so
`you can take less with you but always bring more.
`
`See https://www.apple.com/wallet/.
`
`How It Works
`
`The Wallet app on iPhone, iPod touch, and Apple Watch allows users to easily manage payment cards,
`boarding passes, tickets, gift cards, and other passes. Wallet is time and location enabled, so passes can
`be configured to display on the user's device at the appropriate moment, like when the user reaches the
`airport or walks into a store. Passes can also be updated with push notifications so, if details change, you
`can notify the user and they can simply tap the notification to view the updated pass.
`
`Passes are distributed
`in an app, via email, or
`on the web.
`
`User adds pass to the
`Wallet app on their
`device.
`
`Passes can
`automatically appear
`on a user's device
`based on location and
`time.
`
`User holds their
`device near a NFC
`reader or scans a
`barcode on the pass.
`
`Pass can now be used
`to check in to an
`event, redeem
`rewards or coupons,
`and more.
`
`
`
`
`
`See https://developer.apple.com/wallet/get-started/.
`
`
`
`6
`
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`

`

`16.
`
`Claim 11 of the ’706 Patent recites that the portable data carrier comprises “a
`
`communication device configured to control communication between a reading device and the at
`
`least two applications.” The Accused Products contain a communication device configured to
`
`control communication between a reading device and at least two applications. For example, the
`
`Accused Products utilize an NFC antenna, NFC chip, and related hardware and software to control
`
`communication with a reading device and at least two applications, as shown in the exemplary
`
`iPhone 13:
`
`iPhone 13
`
`Overview
`
`Tech Specs CD
`
`All models
`
`5G (sub-6 GHz and mmWave)7
`
`Gigabit LTE with 4x4 MIMO and LAA7
`
`Wi-Fi 6 (802.11ax) with 2x2 MIMO
`
`Bluetooth 5.0 wireless technology
`
`Ultra Wideband chip for spatial awareness8
`
`NFC with reader mode
`
`Express Cards with power reserve
`
`See https://www.apple.com/iphone-13/specs/.
`
`■
`
`KIOXIA 256 GB NAND Flash
`
`Apple/Cirrus Logic Audio Codec
`
`MCP SN210 NFC & Secure Element
`
`Apple/Cirrus Logic Audio Amplifier
`
`Apple/Cirrus Logic Power Conversion
`
`■
`
`■
`
`■
`
`'1"1="1.-a r:-
`
`Jan
`mana
`
`WM
`p
`
`IP A
`
`Figure 2. Apple iPhone Pro Board Shot
`
`
`
`
`
`r
`
`Techlnsights
`
`See
`
`https://www.techinsights.com/blog/teardown/apple-iphone-13-pro-teardown;
`
`see
`
`also
`
`https://www.ifixit.com/Teardown/iPhone+13+Pro+Teardown/144928 (identifying NXP SN210V
`
`NFC controller with secure element).
`
`
`
`7
`
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`GARMIN /
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`

`

`17.
`
`Claim 11 of the ’706 Patent recites “wherein the communication device is set up to
`
`generate communication-readiness signals to the reading device which in each case indicate to the
`
`reading device a communication readiness for one of the applications and comprise an
`
`identification number assigned to the corresponding communication-readiness application.” The
`
`Accused Products contain a communication device that is set up to generate communication-
`
`readiness signals to the reading device which in each case indicate to the reading device a
`
`communication readiness for one of the applications and comprise an identification number
`
`assigned to the corresponding communication-readiness application. For example, the
`
`communication device generates communication-readiness signals to an NFC reader which
`
`comprise an identification number that corresponds to an application:
`
`How to pay using Apple Pay in stores and other places
`With your iPhone or Apple Watch, you can use Apple Pay in stores, restaurants, gas stations, taxis,
`or wherever else you see one of these symbols'.
`
`9:41
`
`4149M
`
`0
`
`Done
`
`Pay with your iPhone
`1. To use your default payment card:
`
`• If your iPhone has Face ID, double-click the side
`button. Authenticate with Face ID or enter your
`passcode.
`
`• If your iPhone has Touch ID, rest your finger on the
`Touch ID sensor.
`
`2. To use a different card, tap your default card to see
`your other cards. Tap a new card and authenticate.
`
`3. Hold the top of your iPhone near the contactless
`reader until you see Done and a checkmark on the
`display.
`
`Pay with your Apple Watch
`
`1. Double-click the side button.
`
`2. Your default card opens automatically. Scroll down to
`choose another card.
`
`ietBlue
`
`FLI HT
`
`11nA
`
`3. Hold the display of your Apple Watch near the
`contactless reader until you feel a gentle tap and
`hear a beep.
`
`
`
`8
`
`0 Done
`
`
`
`Ex.1011
` Page 8 of 32
`
`GARMIN /
`
`

`

`See https://support.apple.com/en-us/HT201239.
`
`Pay for your ride with Express Transit
`
`To use Express Transit, your iPhone or Apple Watch must be turned on, but they don't have to be
`
`connected to a network.'
`
`Use Express Transit on your iPhone Use Express Transit on your Apple
`Watch
`
`1. Hold the top of your iPhone near the middle
`
`of the contactless reader.
`
`2. Wait until you feel a vibration.
`
`1. Hold the display of your Apple Watch near the
`
`middle of the contactless reader.
`
`3. You see Done and a checkmark on the
`
`2. Wait until you feel a vibration.
`
`display.
`
`3. You see Done and a checkmark on the
`
`display.
`
`
`
`See https://support.apple.com/en-us/HT209495.
`
`
`9'41
`
`Done
`
`)
`
`oil T•
`
`5301 xDrive
`
`Unlock or start your car with your
`Apple device
`To unlock your car, hold your iPhone or Apple Watch near
`the car's door handle.
`
`To start your car, place your iPhone in the car's key reader,
`or hold your Apple Watch near the reader. Then press the
`car's start button.
`
`Use Express Mode to quickly unlock or start
`your car
`
`Express Mode is turned on by default when you add a car
`key to the Wallet app. It lets you automatically unlock your
`car door and allows you to quickly start the vehicle. If you
`leave your car, hold your Apple device near the door handle
`to lock it.
`
`To turn off Express Mode:
`
`1. Open the Wallet app on your iPhone.
`
`2. Tap the card for your car key.
`
`3. Tap the More button 0.
`
`4. Turn off Express Mode.
`
`time you use your Apple device as a car key:
`
`If you turn off Express Mode, you must authenticate each
`
`• On your iPhone, open the Wallet app and tap the card for your car key. Hold your iPhone near the
`car's door handle or key reader, then use your passcode, Face ID, or Touch ID to proceed.
`
`• On your Apple Watch, double-click the side button to access your cards. Tap the card for your car
`key, then hold your watch near the car's door handle or key reader.
`
`
`
`
`
`9
`
`Ex.1011
` Page 9 of 32
`
`GARMIN /
`
`

`

`See https://support.apple.com/en-us/HT211234.
`
`Loyalty and Rewards
`
`Add your favorite coffee shop, drugstore, or
`retail rewards cards to Wallet, and next time
`you're at checkout, just tap and pay to receive
`and redeem rewards.a Never lose another card,
`another point, or another free double latte again.
`It's the perfect way to get all your points across.
`
`9:41
`
`Done
`
`0
`
`W CASH REWARDS
`
`$10.54
`
`ntraereeted_
`A more rewarding
`experience for /,you, to
`
`UPDATED
`5/12/2021
`
`4))
`
`Hold Near Reader
`
`
`
`See https://www.apple.com/wallet/.
`
`Student ID
`
`Add your student ID card to Wallet and
`never worry about losing it again.6 Use
`your iPhone or Apple Watch anywhere
`your ID is accepted — both on and off
`campus. Just hold your device to the
`reader and get into places like your
`dorm, the library, and school events.
`Pay for laundry, snacks, and dinners
`nearby, too. It's your pass, no fail.
`
`
`
`See https://www.apple.com/wallet/.
`
`18.
`
`Claim 11 of the ’706 Patent recites “wherein the communication device is set up to
`
`store information in a nonvolatile memory of the data carrier about which of the at least two
`
`applications last communicated with a reading device.” Each of the Accused Products contains a
`
`
`
`10
`
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`GARMIN /
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`

`

`communication device that is set up to store information in a nonvolatile memory of the data carrier
`
`about which of the at least two applications last communicated with a reading device. For example,
`
`the Accused Products provide information about the last application that communicated with a
`
`reading device:
`See your Apple Pay transaction history
`Check the latest transactions for the cards that you use with Apple Pay, directly on the
`device that you used to make the purchases.
`
`Depending on your bank or card issuer, you might see only transactions made on the device that you're
`using. Or you might see any transactions made from your credit or debit card account, including from all
`devices that you use with Apple Pay and your physical card.
`
`
`
`See https://support.apple.com/en-us/HT212786.
`
`See your Apple Card spending history
`See transactions, see your balance, and track how much you spend on entertainment,
`food, shopping, and more.
`
`9.4
`
`Done
`
`ser
`
`ck
`
`Latest Transactions
`
`Apple Services
`$4.99 )
`Card Number Used a%
`os ago
`
`a La Colombe Coffee
`
`IL
`nay
`
`CI
`
`Apple Store
`Chicago, IL
`Yesterday
`
`$18.50
`2%
`
`$168.94
`
`See recent purchases
`1. On your iPhone, open the Wallet app. If you use Apple
`Card Family, you can see who made the purchase.
`
`2. Tap Apple Card, then tap a transaction under Latest
`Transactions. To see older transactions, scroll down
`and tap a month, then tap a transaction.
`
`3. Tap the transaction again to see details.
`
`If you don't recognize a purchase, you can dispute a charge.
`
`Find a transaction
`1. On your iPhone, open the Wallet app.
`
`2. Tap Apple Card.
`
`3. Tap the search icon Q.
`
`You can search by category, merchant, location, date, or
`transaction amount. If you use Apple Card Family, you can
`also see who made the purchase. To explore your spending
`on your account over time, tap the Daily/Weekly/Yearly card.
`
`South Loop Market $135.46
`Chicago, IL
`zx
`Monday
`
`ci Apple Services
`
`cr,1 Number Used
`
`Apple Services
`Card Number Used
`Thursday
`
`$3.24
`
`$2.15
`3%
`
`2020
`
`AllgUSt
`65 Transactions
`
`131 July
`
`SO Transactions
`
`
`
`11
`
`
`
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`
`GARMIN /
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`

`

`See https://support.apple.com/en-us/HT209489.
`
`19.
`
`Apple also knowingly and intentionally induces infringement of one or more claims
`
`of the ’706 Patent in violation of 35 U.S.C. § 271(b). As of at least the filing and service of this
`
`complaint, Apple has knowledge of the ’706 Patent and the infringing nature of the Accused
`
`Products. Despite this knowledge of the ’706 Patent, Apple continues to actively encourage and
`
`instruct its customers and end users (for example, through user manuals and online instruction
`
`materials on its website, and other online publications cited above) to use the Accused Products in
`
`ways that directly infringe the ’706 Patent, for example by utilizing the NFC functionality on the
`
`Accused Products and/or mobile payment applications, such as Apple Pay, in an infringing
`
`manner. Apple does so knowing and intending (or with willful blindness to the fact) that its
`
`customers and end users will commit these infringing acts. Apple also continues to make, use,
`
`offer for sale, sell, and/or import the Accused Products, despite its knowledge of the ’706 Patent,
`
`thereby specifically intending for and inducing its customers to infringe the ’706 Patent through
`
`the customers’ normal and customary use of the Accused Products.
`
`20.
`
`Apple has also infringed, and continues to infringe, one or more claims of the ’706
`
`Patent by selling, offering for sale, or importing into the United States, the Accused Products,
`
`knowing that the Accused Products constitute a material part of the inventions claimed in the ’706
`
`Patent, are especially made or adapted to infringe the ’706 Patent, and are not staple articles or
`
`commodities of commerce suitable for non-infringing use. Apple has been, and currently is,
`
`contributorily infringing the ’706 Patent in violation of 35 U.S.C. §§ 271(c) and/or (f).
`
`21.
`
`By making, using, offering for sale, selling and/or importing into the United States
`
`the Accused Products, Apple has injured Plaintiff and is liable for infringement of the ’706 Patent
`
`pursuant to 35 U.S.C. § 271.
`
`
`
`12
`
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`

`

`22.
`
`As a result of Apple’s infringement of the ’706 Patent, Plaintiff is entitled to
`
`monetary damages (past, present, and future) in an amount adequate to compensate for Apple’s
`
`infringement, but in no event less than a reasonable royalty for the use made of the invention by
`
`Apple, together with interest and costs as fixed by the Court.
`
`COUNT II
`
`INFRINGEMENT OF U.S. PATENT NO. 8,205,249
`
`23.
`
`Plaintiff realleges and incorporates by reference the foregoing paragraphs as if fully
`
`set forth herein.
`
`24.
`
`Apple has been and is now directly infringing the ’249 Patent, literally and/or under
`
`the doctrine of equivalents, in violation of 35 U.S.C. § 271(a), including by making, using, selling,
`
`and/or offering for sale in the United States or importing into the United States infringing products,
`
`including at least the Accused Products identified above. The Accused Products satisfy all of the
`
`claim limitations of one or more claims of the ’249 Patent, including but not limited to claim 10.
`
`25.
`
`Claim 10 recites a “portable data carrier for performing a security-operation within
`
`a secure electronic transaction.” To the extent the preamble is limiting, the Accused Products
`
`include a portable data carrier for performing a security-operation within a secure electronic
`
`transaction. For example, the Accused Products support mobile payment applications, such as
`
`Apple Pay, which enable a security-operation within a secure electronic transaction:
`
`
`
`13
`
`Ex.1011
` Page 13 of 32
`
`GARMIN /
`
`

`

`How to pay using Apple Pay in stores and other places
`With your iPhone or Apple Watch, you can use Apple Pay in stores, restaurants, gas stations, taxis,
`or wherever else you see one of these symbols'.
`
`Pay with your iPhone
`
`1. To use your default payment card:
`
`9:41 -ads
`
`Im''
`
`I,
`
`• If your iPhone has Face ID, double-click the side
`button. Authenticate with Face ID or enter your
`passcode.
`
`• If your iPhone has Touch ID, rest your finger on the
`Touch ID sensor.
`
`2. To use a different card, tap your default card to see
`your other cards. Tap a new card and authenticate.
`
`3. Hold the top of your iPhone near the contactless
`reader until you see Done and a checkmark on the
`display.
`
`O
`Done
`
`Pay with your Apple Watch
`
`1. Double-click the side button.
`
`2. Your default card opens automatically. Scroll down to
`choose another card.
`
`3. Hold the display of your Apple Watch near the
`contactless reader until you feel a gentle tap and
`hear a beep.
`
`LHietBlue
`
`See https://support.apple.com/en-us/HT201239.
`
`0 Done
`
`FLI
`11(1R
`
`
`
`26.
`
`Claim 10 of the ’249 Patent recites that the portable data carrier is “arranged to
`
`perform different quality user authentication methods.” To the extent the preamble is limiting, the
`
`Accused Products include a portable data carrier that is arranged to perform different quality user
`
`authentication methods. For example, the Accused Products support mobile payment applications,
`
`such as Apple Pay, which utilize different quality user authentication methods:
`
`
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`14
`
`Ex.1011
` Page 14 of 32
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`GARMIN /
`
`

`

`How to add a card for Apple Pay on your iPhone
`Add a new debit or credit card to the Wallet app, or add a card you previously used on a device associated
`with your Apple ID.
`
`Add a new card on your iPhone
`
`1. In the Wallet app, tap the Add button 0.
`
`2. Tap Debit or Credit Card.
`
`3. Tap Continue.
`
`4. Follow the steps on the screen to add a new card. If prompted, choose your bank or card issuer from
`the list or find them using the search bar.
`
`5. Verify your information with your bank or card issuer. They might ask you to provide additional
`information or to download an app before approving your card for use with Apple Pay.
`
`6. If you have a paired Apple Watch, you have the option to also add the card to your watch.
`
`
`
`See https://support.apple.com/en-us/HT204506.
`
`When you use Apple Pay in stores
`When you use Apple Pay in stores that accept contactless payments, Apple Pay uses Near Field
`Communication (NFC) technology between your device and the payment terminal. NFC is an industry-
`standard, contactless technology that's designed to work only across short distances. If your iPhone is on
`and detects an NFC field, it will present you with your default card. To send your payment information, you
`must authenticate using Face ID, Touch ID, or your passcode (except in Japan if you designate a Suica
`card for Express Transit). With Face ID or with Apple Watch, you must double-click the side button when
`the device is unlocked to activate your default card for payment.
`
`After you authenticate your transaction, the Secure Element provides your Device Account Number and a
`transaction-specific dynamic security code to the store's point of sale terminal along with additional
`information needed to complete the transaction. Again, neither Apple nor your device sends your actual
`payment card number. Before they approve the payment, your bank, card issuer, or payment network can
`verify your payment information by checking the dynamic security code to make sure that it's unique and
`tied to your device.
`
`
`
`See https://support.apple.com/en-us/HT203027.
`
`
`
`15
`
`Ex.1011
` Page 15 of 32
`
`GARMIN /
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`

`

`Use Express Mode with cards, passes, and
`keys in Apple Wallet
`With Express Mode, you can use cards, passes, and keys in the Wallet app with just a
`tap.
`
`Use transit or payment cards, passes, your student ID, your car key, and more without waking or unlocking
`your device, or authenticating with Face ID, Touch ID, or your passcode. You might even be able to use
`your card, pass, or key when your device needs to be charged.
`
`Multiple cards, passes, and keys with Express Mode can be active in the Wallet app at the same time. For
`example, you can have one student ID and one car key each set to Express Mode.
`
`With some cards, passes, and keys, you can't have multiple of the same type or from the same issuer set
`to Express Mode. For example, you can only have one student ID from the same school set to Express
`Mode.
`
`With some passes, you might be able to set multiple passes of the same type to Express Mode.
`
`For transit, you can set one payment card and one transit card to Express Mode for each transit network.
`
`
`
`See https://support.apple.com/en-us/HT212171.
`
`27.
`
`Claim 10 recites “wherein the difference in quality of said user authentication
`
`methods varies between an inherently relatively lower quality and an inherently relatively higher
`
`quality from a security perspective.” To the extent the preamble is limiting, the Accused Products
`
`include a data carrier arranged to perform different quality user authentication methods, wherein
`
`the difference in quality of said user authentication methods varies between an inherently relatively
`
`lower quality and an inherently relatively higher quality from a security perspective. For example,
`
`the Accused Products support mobile payment applications, such as Apple Pay, which utilize
`
`different authentication methods that vary in quality from a security perspective:
`
`
`
`16
`
`Ex.1011
` Page 16 of 32
`
`GARMIN /
`
`

`

`When you use Apple Pay in stores
`When you use Apple Pay in stores that accept contactless payments, Apple Pay uses Near Field
`Communication (NFC) technology between your device and the payment terminal. NFC is an industry-
`standard, contactless technology that's designed to work only across short distances. If your iPhone is on
`and detects an NFC field, it will present you with your default card. To send your payment information, you
`must authenticate using Face ID, Touch ID, or your passcode (except in Japan if you designate a Suica
`card for Express Transit). With Face ID or with Apple Watch, you must double-click the side button when
`the device is unlocked to activate your default card for payment.
`
`After you authenticate your transaction, the Secure Element provides your Device Account Number and a
`transaction-specific dynamic security code to the store's point of sale terminal along with additional
`information needed to complete the transaction. Again, neither Apple nor your device sends your actual
`payment card number. Before they approve the payment, your bank, card issuer, or payment network can
`verify your payment information by checking the dynamic security code to make sure that it's unique and
`tied to your device.
`
`
`
`See https://support.apple.com/en-us/HT203027.
`
`Use Express Mode with cards, passes, and
`keys in Apple Wallet
`With Express Mode, you can use cards, passes, and keys in the Wallet app with just a
`tap.
`
`Use transit or payment cards, passes, your student ID, your car key, and more without waking or unlocking
`your device, or authenticating with Face ID, Touch ID, or your passcode. You might even be able to use
`your card, pass, or key when your device needs to be charged.
`
`Multiple cards, passes, and keys with Express Mode can be active in the Wallet app at the same time. For
`example, you can have one student ID and one car key each set to Express Mode.
`
`With some cards, passes, and keys, you can't have multiple of the same type or from the same issuer set
`to Express Mode. For example, you can only have one student ID from the same school set to Express
`Mode.
`
`With some passes, you might be able to set multiple passes of the same type to Express Mode.
`
`For transit, you can set one payment card and one transit card to Express Mode for each transit network.
`
`
`
`See https://support.apple.com/en-us/HT212171.
`
`
`
`17
`
`Ex.1011
` Page 17 of 32
`
`GARMIN /
`
`

`

`28.
`
`Claim 10 of the ’249 Patent recites that “the portable data carrier is arranged to
`
`perform a user authentication using one of said implemented user authentication methods.” The
`
`Accused Products include a portable data carrier arranged to perform a user authentication using
`
`one of said implemented user authentication methods. For example, the Accused Products support
`
`mobile payment applications, such as Apple Pay, which utilize different user authentication
`
`methods:
`
`When you use Apple Pay in stores
`When you use Apple Pay in stores that accept contactless payments, Apple Pay uses Near Field
`Communication (NFC) technology between your device and the payment terminal. NFC is an industry-
`standard, contactless technology that's designed to work only across short distances. If your iPhone is on
`and detects an NFC field, it will present you with your default card. To send your payment information, you
`must authenticate using Face ID, Touch ID, or your passcode (except in Japan if you designate a Suica
`card for Express Transit). With Face ID or with Apple Watch, you must double-click t