throbber
IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`
`CARDWARE INC.,
`Plaintiff
`
`v.
`SAMSUNG ELECTRONICS CO., LTD.;
`SAMSUNG ELECTRONICS AMERICA,
`INC.,
`
`Defendants.
`











`
`Civil Action No. 2:22-cv-00141-JRG-RSP
`
`JURY TRIAL DEMANDED
`
`DEFENDANTS’ INVALIDITY CONTENTIONS
`
`Pursuant to the Docket Control Order (Dkt. No. 27) and Local Patent Rule (“P.R.”) 3-3,
`
`Defendants Samsung Electronics Co. Ltd. and Samsung Electronics America, Inc. (collectively,
`
`“Samsung” or “Defendants”), hereby disclose these Invalidity Contentions in the above-
`
`captioned case to CardWare, Inc. (“CardWare” or “Plaintiff”). On September 8, 2022,
`
`CardWare served Samsung with Infringement Contentions alleging infringement of claims 1, 4-
`
`20, 22, and 23 of U.S. Patent No. 10,339,520 (the “’520 Patent”); claims 1, 2, 4, 10-12, 15, 16,
`
`18, and 20 of U.S. Patent No. 10,628,820 (the “’820 Patent”); claims 1-23 of U.S. Patent No.
`
`10,810,579 (the “’579 Patent”); claims 1-21 and 23-30 of U.S. Patent No. 11,176,538 (the “’538
`
`Patent”); and claims 1-27 of U.S. Patent No. 11,328,286 (the “’286 Patent”) (collectively, the
`
`“Asserted Claims” of the “Asserted Patents”). See Plaintiff CardWare Inc.’s Disclosure of
`
`Asserted Claims and Infringement Contentions (“Infringement Contentions”).
`
`As explained below and in the accompanying exhibits, incorporated by reference herein,
`
`Samsung contends that each of the claims asserted by CardWare is invalid under at least 35
`
`U.S.C. §§ 102, 103, and/or 112 (pre-AIA and AIA). In its infringement contentions CardWare
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 1 of 139
`
`

`

`“contends that every asserted claim of each asserted patent is entitled to a priority date no later
`
`than March 15, 2013, the filing date of U.S. Provisional Application No. 61/794,891,”
`
`Infringement Contentions at § 3, which would mean that the Asserted Patents fall under pre-
`
`Leahy-Smith America Invents Act patent law (“pre-AIA”) as their effective filing dates fall
`
`before March 16, 2013. Defendants do not concede that any or all of the asserted claims of the
`
`Asserted Patents are entitled to the alleged priority date or to pre-AIA treatment. However, most
`
`of the asserted claims lack written description support in any patent application, provisional or
`
`otherwise. On October 18, 2022, Samsung notified CardWare that there is no apparent Rule 11
`
`basis for making such priority claim contentions and requested an amended identification of
`
`contended priority dates that are warranted by existing law and evidentiary support. CardWare
`
`has not responded. Given CardWare’s ongoing refusal to identify plausible priority dates for the
`
`Asserted Claims, Samsung needs discovery from CardWare (including its experts) into this issue
`
`and, if discovery reveals CardWare is not entitled to the claimed priority date, then intervening
`
`prior art may exist, such as, for example, US Patent No. 11,164,176 to Ngo (the application for
`
`which was filed on December 19, 2014). Samsung reserves the right to supplement these
`
`invalidity contentions with such intervening prior art.
`
`Although the Local Patent Rules do not require Defendants to provide their alleged
`
`priority dates in these invalidity contentions, Defendants note that they may challenge the
`
`priority date of the Asserted Claims of the Asserted Patents. Exemplary bases for challenging
`
`the claimed priority dates are set forth below.
`
`Regarding the ’520 patent, at least the following terms do not draw support from any
`
`incorporated provisional or non-provisional applications, and were added to the application for
`
`that issued as the ’520 patent by a claim amendment dated December 11, 2018.
`
`2
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 2 of 139
`
`

`

` “wirelessly receiving a static device account number payment information for
`
`storage on the electronic device” (claim 1);
`
` “dynamically-generating a one-time limited-use numbers based on at least one of
`
`a set of information including: user-identifying information; user secrets; device
`
`information; device secrets; time; merchant; facility location; sequence count;
`
`payment information; account information; amount; and transaction information”
`
`(claim 1);
`
` “using said static device account number and said dynamically generated one-
`
`time limited-use number together in the place of issuer provided payment
`
`information for making a payment transaction” (claims 1, 10);
`
` “issuer provided payment information is communicated wirelessly; and, receiving
`
`wirelessly a static device account number payment information for storage on the
`
`electronic device” (claim 10);
`
` “recording a user selection from the user interface of the electronic device of a
`
`user selected account operation, wherein said user selected account operation is
`
`selected from a list of funds transfer operations” (claim 18); and
`
` “wherein said static and dynamic information is combined to perform the user
`
`selected ATM operation” (claim 18).
`
`Thus, at least claims 1, 10, 18, and their dependents—to the extent CardWare proves they
`
`have written description support in any application—are entitled to a priority date no earlier than
`
`September 11, 2017, the filing date of patent application No. 15/701,261, which issued as the
`
`’520 patent.
`
`3
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 3 of 139
`
`

`

`Regarding the ’820 patent, at least the following terms do not draw support from any
`
`incorporated provisional or non-provisional applications, and were added to the application for
`
`that issued as the ’820 patent by claim amendments dated July 1, 2019, November 7, 2019, and
`
`December 11, 2019:
`
` “a cryptographic processor coupled to the memory” (claim 1);
`
` “a smart card reader interface” (claim 1);
`
` “a personal computing device, wherein the personal computing device comprises:
`
`a processor; . . . wherein the processor is operable to generate limited-use
`
`payment information based on the card device payment account information”
`
`(claim 11);
`
` “the personal computing device is operable to generate complete payment
`
`information, including the limited-use payment information, and to convey said
`
`complete payment information via at least one interface of a set comprising: said
`
`display; and the wireless interface” (claim 11);
`
` “wherein card issuer provided payment card information is wirelessly
`
`downloaded into the computing device” (claim 15); and
`
` “at least one of the set comprising: the computing device; and the card-shaped
`
`payment device, is configured to dynamically generate a limited-use payment
`
`information, upon the authorization of a valid computing device user” (claim15).
`
`Thus, at least claims 1, 11, 15, and their dependents—to the extent CardWare proves they
`
`have written description support in any application—are entitled to a priority date no earlier than
`
`July 2, 2018 (the filing date of the application that issued as the ’820 patent).
`
`4
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 4 of 139
`
`

`

`Regarding the ’286 Patent, at least the following terms do not draw support from any
`
`prior-filed provisional or non-provisional application:
`
` “a computing device comprising: a processor; a memory; a wireless interface; a
`
`touch-screen user interface operable to provide a visual user-interface for user
`
`payment interactions; and a user-input device coupled to the processor, and
`
`wherein the processor is operable to store a transaction sequence count, a device
`
`account number and secrets limited to the computing device, and wherein the
`
`computing device is operable to receive, store and transmit a card payment
`
`information not visible on the payment card device” (claim 1);
`
` “a card-users personal computing device operable for completing a payment
`
`transaction and comprising: a processor; a touch-screen display interface; a user-
`
`interface; . . . and a memory for storing a payment information accessible to the
`
`processor, wherein the computing device is configured to dynamically generate
`
`limited-use payment information, . . . wherein the limited-use payment
`
`information provided by at least one or both of: the payment card device, and the
`
`computing device, is validated by a card issuing authority when used in merchant
`
`in-store facility transactions” (claim 15); and
`
` “a computing device comprising: a processor; a memory; . . . a touch-screen user
`
`interface operable to provide a visual user-interface for user payment interactions;
`
`and a user-input device coupled to the processor; and wherein the memory is
`
`operable to store a transaction sequence count, a static device account number and
`
`secrets limited to the computing device; wherein the computing device is operable
`
`to receive, store, display and transmit issuer-provided payment information,
`
`5
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 5 of 139
`
`

`

`associated with, but not depicted on, the payment card device; wherein the
`
`processor is operable to dynamically generate at least a portion of a limited-use
`
`payment information for use by an authenticated card user, and to combine said at
`
`least a portion of the limited-use payment information with at least said static
`
`device account number to create combined payment information” (claim 20).
`
`Claims 1 and 15 are original claims filed with the application, and claim 20 was added by
`
`amendment on March 24, 2022. Thus, at least claims 1, 15, 20, and their dependents—to the
`
`extent CardWare proves they have written description support in any application—are entitled to
`
`a priority date no earlier than April 11, 2020 (the filing date of the application that issued as the
`
`’286 Patent).
`
`Regarding the ’579 Patent, at least the following terms do not draw support from any
`
`prior-filed provisional or non-provisional application:
`
` “receiving a request for a transaction payment at said electronic device via the
`
`NFC interface” (claim 1);
`
` “displaying, on the touch-screen display, images of: a card issuer payment method
`
`selection, including a last 4-digit partial number of a card issuer supplied account
`
`number of a payment card; a card logo; and other iconography of the payment
`
`card” (claim 1);
`
` “visually conveying a status of said transaction via a user-interface displayed on
`
`said touch-screen display” (claim 1);
`
` “receiving an input signal at an electronic device, the input signal corresponding
`
`to a request for payment of a transaction at said electronic device, via a recipient
`
`6
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 6 of 139
`
`

`

`proximity communication request to an NFC interface of the electronic device”
`
`(claim 15);
`
` “displaying a summary of selectable payment account options at a touch-screen
`
`display user-interface of the electronic device” (claim 15);
`
` “displaying on said display at least one of a set of information comprising:
`
`transaction information; merchant information; a time; a location of the
`
`transaction; a payment bank logo; a card issuer icon; a payment card image; an
`
`amount” (claim 15);
`
` “receiving a user input providing for at least one transaction action, from a set of
`
`actions comprising: approving a transaction; denying a transaction; and adjusting
`
`a transaction” (claim 15);
`
` “an NFC interface operable to receive a transaction request when in proximity to
`
`an NFC recipient” (claim 19);
`
` “responsive to receiving an NFC transaction payment request, generating a
`
`limited-use payment information for use in place of card issuer payment
`
`information” (claim 19); and
`
` “wherein further the processor is operable to cause the display to visually convey
`
`a status of the transaction” (claim 19).
`
`Claims 1 and 19 are original claims filed with the application, and claim 15 was amended
`
`on May 20, 2020 to include the features of a dependent claim. Thus, at least claims 1, 15, 19,
`
`and their dependents—to the extent CardWare proves they have written description support in
`
`any application—are entitled to a priority date no earlier than July 1, 2019 (the filing date of the
`
`application that issued as the ’579 Patent).
`
`7
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 7 of 139
`
`

`

`Regarding the ’538 Patent, at least the following terms do not draw support from any
`
`prior-filed provisional or non-provisional application:
`
` “receiving a request for a transaction payment at said electronic device via an
`
`NFC interface of the device” (claim 1);
`
` “displaying, on a display of the device, a transaction payment request and at least
`
`a portion of an original static issuer-supplied payment account information
`
`associated with a payment method, for a user selection in paying the payment
`
`request” (claim 1);
`
` “receiving information at said electronic device corresponding to a transaction
`
`status of the payment transaction, wherein such transaction status is at least partly
`
`dependent on validation of the transmitted complete device payment information
`
`by a payment processor authority and a payment issuer authority” (claim 1);
`
` “visually conveying the transaction payment authorization status via a user-
`
`interface displayed on said display” (claim 1);
`
` “receiving an input signal at an electronic device, the input signal corresponding
`
`to a request for payment of an online payment transaction by said electronic
`
`device, via a wireless interface of the electronic device” (claim 19);
`
` “receiving a user input providing for at least one transaction authorization actions,
`
`from a set of actions including: approving a transaction, denying a transaction,
`
`selecting a user information, a payment amount adjustment, and selecting a
`
`transaction payment method” (claim 19); and
`
` “wherein further the processor is operable to receive an approval and a denial
`
`confirmation from an online payment facility of the complete device payment
`
`8
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 8 of 139
`
`

`

`information, and cause the display to visually convey a status of the online
`
`purchase transaction” (claim 25).
`
`Claims 1, 19, and 25 were added with the rest of the ’538 Patent claims in a preliminary
`
`amendment on June 16, 2021. Thus, at least claims 1, 19, 25, and their dependents—to the
`
`extent CardWare proves they have written description support in any application—are entitled to
`
`a priority date no earlier than of October 20, 2020 (the filing date of the application that issued as
`
`the ’538 Patent).
`
`Defendants reserve the right to challenge the alleged priority date for any of the asserted
`
`claims and present herein prior art references that are applicable to pre-AIA and AIA treatment
`
`for certain asserted claims.
`
`Likewise, should any application for one of the Asserted Patents contain or have
`
`contained at any time, a claim having an effective filing date of March 16, 2013, or later, or a
`
`specific reference under 35 U.S.C. §§ 120, 121, or 365(c), to any patent or application that
`
`contains or contained at any time such a claim, the AIA’s provisions would apply to every claim
`
`to have issued from such an application. See AIA § 3(n)(1). As such, these invalidity
`
`contentions and the attached exhibits address invalidity and ineligibility under both pre-AIA and
`
`AIA patent law. Unless stated otherwise, each citation to any of 35 U.S.C. section 101, 102,
`
`103, and/or 112, shall be interpreted as referring to both the pre-AIA and AIA section(s).
`
`For purposes of these Invalidity Contentions, Defendants identify prior art references and
`
`provide element-by-element claim charts based, in part, on the apparent claim constructions
`
`advanced by Plaintiff in its Infringement Contentions. The citation of prior art herein and in the
`
`accompanying exhibits is not intended to reflect Defendants’ claim construction positions, which
`
`will be disclosed in due course in accordance with the Docket Control Order, and may instead
`
`9
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 9 of 139
`
`

`

`reflect Plaintiff’s apparent (and potentially erroneous) claim constructions based on its
`
`Infringement Contentions. Nothing stated herein shall be treated as an admission or suggestion
`
`that Defendants agree with Plaintiff regarding either the scope of any of the Asserted Claims or
`
`the claim constructions advanced in the Infringement Contentions. Moreover, nothing in these
`
`Invalidity Contentions shall be treated as an admission that Defendants’ accused technology
`
`meets any limitations of the claims.
`
`Defendants’ Invalidity Contentions herein reflect Defendants’ knowledge as of this early
`
`date in the present action. Defendants reserve the right, to the extent permitted by the Court and
`
`the applicable statutes and rules, to modify and/or supplement their Invalidity Contentions in
`
`response to becoming aware of additional prior art or information regarding prior art, any
`
`modification or supplementation of Plaintiff’s Infringement Contentions, any claim construction
`
`by the Court, or as otherwise may be appropriate.
`
`Defendants’ Exhibits attached hereto cite to particular teachings and disclosures of the
`
`prior art as applied to features of the Asserted Claims. However, persons having ordinary skill in
`
`the art (“POSITA”) generally view a prior disclosure in its entirety (e.g., view specific
`
`disclosures in the context of the general disclosures), in the context of other publications,
`
`literature, products, and understanding and knowledge of such a person. As such, the cited
`
`portions of prior art identified herein are exemplary only. Defendants may rely on the entirety of
`
`the prior art references listed herein, including un-cited portions of those prior art references, and
`
`on other publications, systems, evidence, and expert testimony shedding light on those prior art
`
`references or the state of the art in general, including as aids in understanding and interpreting
`
`the cited portions, as providing context thereto, and as additional evidence that the prior art
`
`discloses a claim limitation.
`
`10
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 10 of 139
`
`

`

`Defendants may also rely on documents, systems, products, testimony, and other
`
`evidence to establish bases for, and motivations to make, combinations of or modifications to
`
`certain cited references that render the Asserted Claims obvious. Defendants may rely upon
`
`corroborating documents, products, testimony, and other evidence, including materials obtained
`
`through further discovery, investigation, and third-party discovery of the prior art identified
`
`herein that describes the invalidating features identified in these contentions; evidence of the
`
`state of the art in the relevant time period (irrespective of whether such references themselves
`
`qualify as prior art to the Asserted Patents), including prior art listed on the face of the Asserted
`
`Patents and/or disclosed in the specification(s) (i.e., applicant admitted prior art); and/or expert
`
`testimony to provide context to or aid in understanding the cited portions of the identified prior
`
`art.
`
`The references discussed in the Exhibits hereto disclose the elements of the Asserted
`
`Claims explicitly, inherently, and/or in combination with themselves or the knowledge of one
`
`skilled in the art at the time of filing. The references also may be relied upon to show the state of
`
`the art in the relevant time frame. To the extent the attached claim charts cite to a reference for
`
`each element or limitation of an Asserted Claim, Defendants contend that such reference
`
`anticipates that claim or renders it obvious, either alone or in combination with other references.
`
`To the extent suggested obviousness combinations are included in the attached exhibits, they are
`
`provided in the alternative to Defendants’ anticipation contentions and are not to be construed to
`
`suggest that any reference included in the combinations is not by itself anticipatory.
`
`Pursuant to P.R. 3-3 and 3-4, Defendants provide disclosures and related documents
`
`pertaining only to the Asserted Claims as identified by Plaintiff in its Infringement Contentions.
`
`Defendants will further supplement their P.R. 3-4 document production should they later find
`
`11
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 11 of 139
`
`

`

`additional prior art or obtain translations of previously-produced art. Much of the art identified
`
`in the attached Exhibits reflects common knowledge and the state of the art near the filing date of
`
`the Asserted Patent.
`
`Each of the Asserted Claims1 of the Asserted Patents is anticipated by and/or obvious in
`
`view of one or more items of prior art identified herein, alone or in combination. Specific
`
`examples of this anticipation and obviousness, along with the motivation to combine the selected
`
`prior art, are set forth in the attached Claim Charts (Exhibits A-01 through E-38) and
`
`Combinations Exhibit (Ex. K). The identification of obviousness combinations is not intended to
`
`be exhaustive, as there are many possible combinations of the references that one of ordinary
`
`skill in the art would have been motivated to make, and it is not practical to provide details of all
`
`such possible combinations, particularly at this early stage of the case.
`
`The Docket Control Order and the Patent Rules contemplate that these Invalidity
`
`Contentions would be prepared and served in response to Plaintiff’s Infringement Contentions.
`
`However, Plaintiff has not complied with, and continues not to comply with, its obligation of
`
`complete disclosure in multiple respects. By way of example, and without limitation, these
`
`deficiencies were detailed in letters from Samsung to CardWare on October 10, 2022 and
`
`October 18, 2022.
`
`Due to Plaintiff’s failure to properly allege infringement of the above claims and/or
`
`provide complete disclosure of its Infringement Contentions under P.R. 3-1, Defendants reserve
`
`the right to seek leave from the Court to amend these Invalidity Contentions should Plaintiff
`
`amend its Infringement Contentions or its apparent claim constructions. Defendants also reserve
`
`
`1 For reasons analogous to those identified herein, Defendants contend all non-asserted claims of
`the Asserted Patent are invalid as anticipated and/or obvious in view of the prior art, patent
`ineligible subject matter, indefinite, not enabled, or not supported by the written description.
`
`12
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 12 of 139
`
`

`

`the right to modify, amend, and/or supplement their Invalidity Contentions in light of positions
`
`that Plaintiff or its expert witnesses may assert concerning claim construction, infringement,
`
`and/or invalidity issues.
`
`I.
`
`Background and State of the Art / System Prior Art
`A.
`
`Contactless Payments and Key Fobs
`
`Contactless payment has been known since at least 1997. Exxon/Mobile, McDonalds and
`
`Bank of America launched contactless payment systems in the late 1990s and early 2000s.
`
`http://usatoday30.usatoday.com/tech/news/2001-05-29-mcdonalds-e-payments.htm,
`
`https://www.secureidnews.com/news-item/freedompay-makes-waves-in-contactless-payment/.
`
`Exxon’s system, known as SpeedPass, used RFID technology to transmit payment related data
`
`wirelessly from a key fab to a payment terminal. The key fobs included no printed user or
`
`account identifying information thereon:
`
`Visa (discussed further below) provided key fobs to users as early as 2007 that were capable of
`
`facilitating contactless payments at Visa PayPass point of sale terminals:
`
`
`
`SAN FRANCISCO, September 26, 2007–Visa announced today
`the availability of the Visa Micro Tag, a new key fob payment
`device embedded with Visa payWave, Visa’s contactless
`technology feature. The Visa Micro Tag is designed to easily
`attach to a key ring, and allows cardholders to pay by simply
`
`13
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 13 of 139
`
`

`

`waving their Visa Micro Tag in front of a contactless payment
`terminal without the need to physically swipe or insert the device
`into a point-of-sale terminal.
`
`The Visa Micro Tag allows financial institutions to offer
`cardholders a companion device to an existing credit, debit or
`prepaid account. Designed to be small and durable, the Visa Micro
`Tag makes paying for purchases faster and more convenient.
`
`Visa Micro Tags display the Visa Brand Mark and contactless
`indicator. A Visa account number is not required to be embossed
`or printed on the device, providing an additional layer of security
`for consumers carrying a Visa Micro Tag in visible ways, such as
`on a keychain . . . .
`
`Cardholders making purchases with Visa payWave-enabled
`products enjoy additional layers of security because the payment
`device never leaves the customer’s hand, can only be read at
`extremely close proximity to a reader, and submits a unique digital
`watermark to the Visa payment network for each transaction.
`
`Visa Unveils New Contactless Payment Device – Visa Micro Tag,
`
`https://www.securetechalliance.org/visa-unveils-new-contactless-payment-device-visa-micro-
`
`tag/ (September 26, 2007) (emphasis added). Visa PayWave is discussed further below.
`
`MasterCard offered a similar key fob for use with MasterCard PayPass contactless terminals:
`
`MasterCard PayPass ® is a “contactless” payment solution that
`enables consumers simply to tap or wave their payment card or
`other payment device, such as a phone, key fob or wristband, on a
`specially equipped terminal.
`
`MASTERCARD INC, FORM 10-K, (Annual Report), Filed 02/28/07 for the Period Ending
`
`12/31/06, https://s25.q4cdn.com/479285134/files/doc_financials/2006/q4/658dd46b-769b-4c17-
`
`9e23-8ae0073ddc96.pdf, p. 14 (emphasis added). See also, KickStarter, Simplify, Organize and
`
`Pay with Loop; https://www.kickstarter.com/projects/loop/pay-with-loop:
`
`14
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 14 of 139
`
`

`

`
`
`B.
`
`The PCI DSS, EMV and ISO Standards
`
`By 2004, the Payment Card Industry Data Security Standard (PCI DSS) and the EMV
`
`(EuroPay, Mastercard, Visa) standards had been established. PCI DSS was focused on
`
`increasing controls around cardholder data to reduce credit card fraud. EMV concerned smart
`
`cards (chip cards), a/k/a integrated circuit (IC) cards, capable of storing data on integrated circuit
`
`chips embedded in the card. PCI DSS was implemented in the EMV environment to enhance
`
`credit card transaction security and fraud-reduction:
`
`This document compares and contrasts the current fraud-reduction
`capabilities of EMV within the security framework of the Payment
`Card Industry Data Security Standard (PCI DSS) and examines
`the rationale for why it remains necessary to implement PCI DSS
`in the EMV environments that exist today.
`
`pci_dss_emv.pdf (pcisecuritystandards.org),
`
`https://listings.pcisecuritystandards.org/pdfs/pci_dss_emv.pdf (PCI DSS Applicability in an EMV
`
`Environment, A Guidance Document, Version 1, Release date: 5 October 2010). The ISO
`
`15
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 15 of 139
`
`

`

`published standards on credit card numbering and contactless card structure, technology,
`
`operation and protocols well before 2013. ISO/IEC7812 (Card issuers numbering),
`
`ISO/IEC14443 (contactless operation)2, ISO/IEC 7816 (smartcard hardware, commands,
`
`command management). A discussion of relevant ISO and EMV standards can be found at
`
`29C3: A Rambling Walk Through an EMV Transaction (EN) - YouTube,
`
`https://www.youtube.com/watch?v=VdNm9JJmCzg (December 30, 2012).
`
`C.
`
`Samsung’s History with NFC Contactless Payments for Smartphones
`
`NFC was developed in the mid-2000s.
`
`https://web.archive.org/web/20110628203003/http://www.nfc-
`
`forum.org/news/pr/view?item_key=d8968a33b4812e2509e5b74247d1366dc8ef91d8;
`
`ISO/IEC14443. Samsung began integrating NFC technologies into its phones for contactless
`
`payments as early as 2007. INSIDE Contactless to Equip KTFMobile Payment Project Mobile
`
`Phones; Korean Manufacturer Confirms INSIDE’s NFC Maturity by Embedding MicroRead into
`
`LG Electronics and Samsung Electronics Mobile Phones for its Mobile Payment Project,
`
`Business Wire, July 16, 2007, (“On a first basis, 200 MicroRead chips have been delivered to LG
`
`Electronics and Samsung Electronics to equip both manufacturers’ NFC phones.”); New NFC-
`
`Enabled Phones to Hit Europe, ReadWriteWeb, February 18, 2011 (Samsung Wave 578,
`
`Samsung’s Galaxy S II). Samsung even designed and manufactured its own NFC chips for use
`
`in its mobile devices. Samsung cooks up its own NFC module, destined for the Nexus S?,
`
`Engadget, December 1, 2010 (“Samsung Electronics Co., Ltd., a world leader in advanced
`
`semiconductor solutions, announced today a new near field communications (NFC) chip with
`
`embedded flash memory.”)
`
`2 Standing Document 1 (SD1): WG8 Projects (archive.org),
`https://web.archive.org/web/20110927044225/http://wg8.de/sd1.html#14443 (Sept. 27, 2011) (4
`parts and related Amendments (AMx)).
`
`16
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 16 of 139
`
`

`

`The Samsung Star included NFC capabilities for mobile contactless payments in early
`
`2010 for mobile payments use. Mobile Contactless Payments Trialed Live at Mobile World
`
`Congress 2010; GSMA, Samsung, Telefónica and Visa, with Giesecke & Devrient, Ingenico, ITN
`
`International and La Caixa, collaborate across industries to give Congress attendees an
`
`opportunity to experience NFC, Business Wire, February 15, 2010 (“The participating
`
`companies have provided more than 400 NFC handsets to guests for use at the Congress. The
`
`Samsung Star NFC handsets contain Telefónica SIM cards from O2 pre-loaded with (EURO) 60
`
`airtime credit as well as a La Caixa Visa Mobile Payment Application. Participants can use their
`
`NFC phones to pay for food and drink up to a value of (EURO) 75 at over 30 merchant locations
`
`around the Congress. . . . Samsung Electronics Co. Ltd. provided the NFC-enabled Samsung Star
`
`handsets and offered technical support to ensure the stability of the very first NFC payment
`
`trial.”).3 Another early smartphone to incorporate NFC was the Samsung Nexus S in 2010.
`
`https://www.gsmarena.com/samsung_google_nexus_s-3620.php ;
`
`https://web.archive.org/web/20131005041615/http://blogs.computerworld.com/17359/eric_schm
`
`idt android gingerbread; https://www.androidcentral.com/gingerbread-feature-near-field-
`
`communication. That phone was launched as a further stepping stone to mobile payment capable
`
`devices. Google unveils first Android NFC phone — but Nexus S is limited to tag reading only
`
`for now • NFCW; https://www.nfcw.com/2010/12/07/35385/google-unveils-first-android-nfc-
`
`phone-but-nexus-s-is-limited-to-tag-reading-only-for-now/.4 Samsung’s innovations in NFC-
`
`
`3 See also “La Caixa” 2010 Annual Report, p. 68 (“Jointly with Movistar and Visa, the first
`experiment in Spain was conducted as regards payments made via mobile phones with NFC
`technology.”)
`https://fundacionlacaixa.org/documents/10280/944807/informe_anual_2010_en.pdf.
`4 Samsung also incorporated NFC into smartwatches. Samsung to Unveil NFC Smartwatch -
`Has Wrist-Payments’ Time Come?, Payments Source, September 2, 2013, Copyright 2013
`SourceMedia LLC d/b/a Arizent (“The upcoming Samsung Galaxy Gear smartwatch will have a
`
`17
`
`CARDWARE EXHIBIT 2011
`CARDWARE V. SAMSUNG
`PGR2023-00013
`Page 17 of 139
`
`

`

`based mobile contactless payment technology and products continued in 2011 with the launch of
`
`mobile devices capable of mobile contactless payments in France in 2011.
`
`https://www.01net.com/actualites/nice-premiere-ville-a-passer-au-paiement-sans-contact-
`
`516923.html; https://www.nfcw.com/2011/02/14/35968/orange-to-offer-samsung-wave-578-nfc-
`
`across-europe-%e2%80%94-but-not-the-uk/; https://www.nfcw.com/2010/12/16/35498/orange-
`
`to-roll-out-nfc-services-across-europe-in-2011/. Further, the Samsung Nexus S 4G sold through
`
`Sprint allowed mobile payments via Google Wallet in 2011 in the United States. Google Wallet
`
`Mobile Payments Coming to New York, San Francisco; Google Wallet will launch this summer
`
`to enable consumer

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket