BULKY DOCUMENTS
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`(Exceeds 100 pages)
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`Proceeding/Serial No: 91 1 75475
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`Filed: 05[10[2010
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`Tfifle:
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`1) OPPOSER’S FIRST NOTICE OF RELIANCE
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`2) OPPOSER’S SECOND NOTICE OF
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`RELIANCE
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`1
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`E KlLPATRICK
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`S1-PC) LLP
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`T1113
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`31 West 52nd Street 14th Floor
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`N
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`Y k, NY 10019
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`t 212775.8310.for212 775 8800
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`www.K1lpatr1ckS;ockton.com
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`direct dial 212 775 8751
`direct fax 212 775 8800
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`¢GarciaQ1<i1patricksmga_oMo_m
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`Atlorn eys at Law
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`May 7, 2010
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`VIA FEDERAL EXPRESS
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`Assistant Commissioner for Trademarks
`Trademark Assistance Center
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`Madison East, Concourse Level Room C 55
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`600 1)ulany Street
`Alexandria, Virginia 22314
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`Re:
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`Opposition Nos. 91,176,659 & 91,175,475
`Apple Inc. v. Relix LLC
`Application Serial No. 78/822,935
`(Our File Ref. No.: 55671-328467)
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`Dear Sir/Madam:
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`Attached hereto are the following documents for filing:
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`1) Opposer’s First Notice of Reliance; and
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`2) Opposer’s Second Notice of Reliance.
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`Kindly stamp a copy of this letter and return it in the enclosed self addressed stamped
`envelope.
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`Please charge any require filing fee to Deposit Account No. 11-0860.
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`Thank you for your attention in this matter.
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`Respectfully submitted,
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`>
`7
`Alberto Garcia
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`Managing Clerk
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`/7 ii
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`:5,K‘.
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`Enclosures
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`cc:
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`Michael H. Sproule, Esq. (with enclosures)
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`ATLANTA AUGUSTA CHARLOTTE DUBAI NEWYORK RALElGH STOCKHOLM WASHINGTON WINSTON-SALEM
`1.152000 11781105 I
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`05.10.2010
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`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
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`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
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`In the Matter of Application Serial No. 78/822,935
`For the mark: GREEN APPLE
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`Filed: February 24, 2006
`Published: October 10, 2006
`___________________________________________________________X
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`APPLE INC.,
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`'
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`Opposition No. 91,176,659
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`Opposer,
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`V.
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`RELIX LLC,
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`Applicant.
`___________________________________________________________-5;
`CONSOLIDATED WITH:
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`__________________________________________________________-x
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`APPLE CORPS LIMITED,
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`'
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`Opposition No. 91,175,475‘
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`Opposer,
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`V.
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`RELIX LLC,
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`:
`Applicant.
`_____________________________________________________________X
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`OPPOSER’S FIRST NOTICE OF RELIANCE
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`Opposer Apple Inc. (“Apple”), pursuant to 37 C.F.R. § 2.122(e), submits of record in
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`connection with this opposition proceeding a certified copy of Apple’s Form l0—K for the fiscal
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`' On March 26, 2008, the Board granted Apple lnc.’s motion to consolidate Opposition No.
`91,176,659 with Opposition No. 91,175,475.
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`USZOOO Il7504r:x l
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`year ended September 26, 2009, which qualifies as an official record of the Securities and
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`Exchange Commission. Raccioppi v. Apogee Inc, 47 U.S.P.Q.2d 1368, 1370 (T.T.A.B. 1998).
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`This evidence is relevant to the issues of likelihood of confusion and dilution and shows,
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`among other things, the nature of the goods and services offered under Apple’s marks, the
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`number of retail locations, and the annual sales figures for goods and services offered under
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`Applc’s marks.
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`A certified copy of this Form 10-K is attached hereto as Exhibit A.
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`Respectfully submitted,
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`Dated: New York, NewYork
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`May 7, 2010
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`\
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`3
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`Q
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`'~/
`Joseph Petersen
`Robert Potter
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`KILPATRICK STOCKTON LLP
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`31 W. 52"d Street
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`New York, NY 10019
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`212-775-8700 (phone)
`212-775-8800 (fax)
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`Attorneys for Opposer Apple Inc.
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`USZOOO ll7804o8 I
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`2
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`CERTIFICATE OF SERVICE
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`This is to certify that a copy of the foregoing OPPOSER’S FIRST NOTICE OF
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`RELIANCE has been served on Applicant by depositing said copy with the United States Postal
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`Service as First-Class Mail, postage prepaid, in an envelope addressed to:
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`Michael H. Sproule, Esq.
`Akabas & Cohen
`488 Madison Avenue ~ 11”‘ Floor
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`New York, NY 10022
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`Thisthe7thday0fMay,2010.
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`\\
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`IQN. %»~—
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`Robert Potter
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`KILPATRICK STOCKTON LLP
`31 W. 52"‘! Street
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`New York, NY 10019
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`2l2~775—8700 (phone)
`212-775-8800 (fax)
`Attorneysfor Opposer Apple Inc.
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`USZOOU lI7804n8 l
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`UNITED STATES OF AMERICA
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`SECUR|TlES AND EXCHANGE COMMISSION
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`ATTESTATION
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`I HEREBY ATTEST
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`that:
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`Attached is a copy of annual report on Form 1 0-K, for the fiscal year ended
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`September 26, 2009, received in this Commission October 27, 2009, under the
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`name Apple Inc. File No. 0-1 0030, pursuant to the provisions ofthe Securities
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`Exchange Act of] 934.
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`-
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`~
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`- -- - M ~ --~--;r’::r~
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`. on file in this Commission
`April l9, 2010
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`
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`WM
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`Larry Mills
`Records Officer
`It is hereby certified thatthe Secretary ofthe US. Securities and Exchange
`Commission, Washington, D.C., which Commission was created by the
`Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is official
`custodian of the records and files of said Commission, and all records and
`files created or established by the Federal Trade Commission pursuant to
`the provisions of the Securities Act of 1933 and transferred to this
`Commission in accordance with Section 210 of the Securities Exchange
`Act of 1934, and was such official custodian at the time of executing the
`above attestation, and that helshe, and persons holding the positions of
`Deputy Secretary, Assistant Director, Records Officer, Branch Chief of
`Records Management, and the Program Analyst forthe Records Officer,
`or any one of them, are authorized to execute the above attestation.
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`For the Commission
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`Secretary
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`sec 334 (l0/07)
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`

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`Table of C_g1;e_n_ts
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`UNITED STATES
`SECURITIES AND EXCHANGE COMMISSION
`Washington, D.C. 20549
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`Form 10-K
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`(Mark One)
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`ml
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`El
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`ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
`For the fiscal year ended September 26, 2009
`01'
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`TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
`For the transition period from
`to
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`Commission file number: 000-10030
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`APPLE INC.
`(Exact name of registrant as specified in its charter)
`
`
`California
`(State or other jurisdiction of incorporation or organization)
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`94-24041 10
`(I.R.S. Employer Identification No.)
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`1 Infinite Loop
`Cupertino, California
`(Address of principal executive offices)
`Registrant’s telephone number, including area code: (408) 996-1010
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`95014
`(Zip Code)
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`Securities registered pursuant to Section l2(b) of the Act:
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`Common Stock, no par value
`(Title of class)
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`The NASDAQ Global Select Market
`(Name of exchange on which registered)
`Securities registered pursuant to Section 12(g) of the Act: None
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`dicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
`Yes El No 1:]
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`Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
`Yes [3 No E
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`Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
`preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
`days.
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`Yes 13 No D
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`Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be
`submitted and posted pursuant to Rule 405 of Regulation S-T (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
`was required to submit and post such files).
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`Yesllq Noll
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`Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (section 229.405 of this chapter) is not contained herein, and will not be
`contained, to the best of the registianfs knowledge, in definitive proxy or information statements incorporated by reference in Pan‘. III of this Form 10-K or any
`amendment to this Form 10-K. D
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`Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions
`of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule l2b—2 of the Exchange Act.
`Large accelerated filer E
`(Do not check if smaller reporting company)
`Non-accelerated filer U
`Indicate by check mark whether the registrant is a shell company (as defined in Rule l2b-2 of the Act).
`Yes D No [3
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`Accelerated filer
`Smaller Reporting Company
`
`D
`El
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`The aggregate market value of the voting and non-voting stock held by nomaffiliates of the registrant, as of March 28, 2009, was approximately $94,593,000,000 based
`upon the closing price reported for such date on the NASDAQ Global Select Market. For purposes of this disclosure, shares of common stock held by persons who hold
`more than 5% of the outstanding shares of common stock and shares held by executive officers and directors of the registrant have been excluded because such persons
`may be deemed to be affiliates. This determination of executive officer or affiliate status is not necessarily a conclusive determination for other pmposes.
`900,678,473 shares of Common Stock Issued and Outstanding as of October 16, 2009
`DOCUMENTS INCORPORATED BY REFERENCE
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`(1) Portions of the registranfs definitive Proxy Statement relating to its 2010 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual
`Report on Form 10-K where indicated. Such Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal
`year to which this report relates.
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`Table of Conteg
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`3
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`The Business section and other parts ofthis Annual Report on Form 10-K (“Form 10-K ”) contain forward-looking statements that involve risks and uncertainties. Many
`of the forward—looking statements are located in “Management's Discussion and Analysis of Financial Condition and Results of Operations." Forward-looking
`statements provide current expectations offuture events based on certain assumptions and include any statement that does not directly relate to any historical or current
`fact. Forward~l0oking statements can also be identified by words such as "anticipates, " “believes, " "estimates, " "expects, " "intends, " “plans, ” "predicts, " and similar
`terms. Forward—looking statements are not guarantees offitture performance and the Company '5 actual results may drfler significantlyfrom the results discussed in the
`forward—looking statements. Factors that might cause such dtferences include, but are not limited to, those discussed in the subsection entitled “Risk Factors " under
`Part 1, Item [A of this Form 10-K, which are incorporated herein by reference. The Company assumes no obligation to revise or update anyforward—looking statements
`for any reason, except as required by law.
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`PART I
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`Item 1.
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`Business
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`Company Background
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`Apple Inc. and its wholly-owned subsidiaries (collectively “Apple” or the “Company”) design, manufacture, and market personal computers, mobile communication
`devices, and portable digital music and video players and sell a variety of related software, services, peripherals, and networking solutions. The Company sells its
`products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. In addition, the
`Company sells a variety of third-party Macintosh! (‘‘Mac’‘), iPhone“ and iPods compatible products, including application sofiware, printers, storage devices, speakers,
`headphones, and various other accessories and peripherals through its online and retail stores, and digital content and applications through the iTunes Store‘. The
`Company sells to consumer, small and mid-sized business (“SMB”), education, enterprise, government and creative customers. The Company’s fiscal year is the 52 or
`53-week period that ends on the last Saturday of September. Unless otherwise stated, all information presented in this Form l0—K is based on the Company’s fiscal
`calendar. The Company is a California corporation founded in 1977.
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`Business Strategy
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`The Company is committed to bringing the best personal computing, mobile communication and portable digital music and video experience to consumers, students,
`educators, businesses, and government agencies through its innovative hardware, software, peripherals, services, and Internet oflerings. The Company’s business strategy
`leverages its unique ability to design and develop its own operating system, hardware, application software, and services to provide its customers new products and
`solutions with superior ease-of—use, seamless integration, and innovative industrial design. The Company believes continual investment in research and development is
`critical to the development and enhancement of innovative products and technologies. In addition to evolving its personal computers and related solutions, the Company
`continues to capitalize on the convergence of the personal computer, mobile communications and digital consumer electronics by creating and refining innovations, such
`as iPhone, iPod and the iTunes Store. The Company desires to support a community for the development of third-party products that complement the Company’s
`offerings through its developer programs. The Company offers various third—party sofiware applications and hardware accessories for Mac“ computers, iPhones and
`iPods through its retail and online stores, as well as soflware applications for the iPhone and iPod touch platforms through its App Store”. The Company‘s strategy also
`' cludes expanding its distribution network to effectively reach more of its targeted customers and provide them with a high-quality sales and post-sales support
`xpenence.
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`Consumer and Small and Mid-Sized Business
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`The Company believes a high-quality buying experience with knowledgeable salespersons who can convey the value of the Company’s products and services greatly
`enhances its ability to atnact and retain customers. The Company sells many of its products and resells certain third—paIty products in most of its major markets directly
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`to consumers and businesses through its retail and online stores. The Company has also invested in programs to enhance reseller sales, including the Apple Sales
`Consultant Program, which places Apple employees and contractors at selected third—party reseller locations, and the Apple Premium Reseller Program, through which
`independently run businesses focus on the Apple platform and provide a high level of customer service and product expertise. The Company believes providing direct
`contact with its targeted customers is an eflicient way to demonstrate the advantages of its products over those of its competitors.
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`At the end of fiscal 2009, the Company had opened a total of 273 retail stores, including 217 stores in the U.S. and 56 stores internationally. The Company has typically
`located its stores at high-traffic locations in quality shopping malls and urban shopping districts. By operating its own stores and locating them in desirable high-traflic
`locations, the Company is better positioned to control the customer buying experience and attract new customers. The stores are designed to simplify and enhance the
`presentation and marketing of the Company's products and related solutions. To that end, retail store configurations have evolved into various sizes to accommodate
`market—specific demands. The stores employ experienced and knowledgeable personnel who provide product advice, service and training. The stores offer a wide
`selection of third-party hardware, sofiware, and various other accessories and peripherals that complement the Company's products.
`
`Education
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`Throughout its history, the Company has focused on the use of technology in education and has been committed to delivering tools to help educators teach and students
`learn. The Company believes effective integration of technology into classroom instruction can result in higher levels of student achievement, especially when used to
`support collaboration, information access, and the expression and representation of student thoughts and ideas. The Company has designed a range of products and
`services to address the needs of education customers, which includes one-to-one (“l:l") learning. A 1:1 learning solution typically consists of a networked environment
`that includes a portable computer for every student and teacher. In addition, the Company supports mobile learning and real~time distribution and accessibility of
`education related materials through iTunes U, which allows students and teachers to share and distribute educational media directly through their computers and mobile
`communication devices.
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`Enterprise, Government and Creative
`
`The Company also sells its hardware and software products to customers in enterprise, government and creative markets in each of its geographic segments. These
`markets are also important to many third-party developers who provide Mac—compatible hardware and software solutions. Customers in these markets utilize the
`Company’s products because of their high-powered computing performance and expansion capabilities, networking functionality, and seamless integration with
`complementary products. The Company designs its high—end hardware solutions, including Mac Pro desktops, MacBook~ Pro and MacBook Air“ portable systems, and
`Xserve® servers, to incorporate the power, expandability, and other features desired by these professionals. The Company’s operating system, Mac OS" X, incorporates
`powerful graphics and audio technologies and features developer tools to optimize system and application performance.
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`Other
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`In addition to consumer, SMB, education. enterprise. government and creative markets, the Company provides hardware and software products and solutions for
`ustomers in the information technology and scientific markets.
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`Business Organization
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`The Company manages its business primarily on a geographic basis. The Company’s reportable operating segments consist of the Americas, Europe, Japan and Retail.
`The Americas, Europe and Japan reportable segments do not include activities related to the Retail segment. The Americas segment includes both North and
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`Table of Contents
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`South America. The Europe segment includes European countries as well as the Middle East and Afiica. The Retail segment operates Apple-owned retail stores in the
`US. and in international markets. Each reportable geographic operating segment and the Retail operating segment provide similar hardware and sofiware products and
`similar services. Further information regarding the Company’s operating segments may be found in Part II, Item 7 of this Form 10-K under the subheading “Segment
`Operating Performanc e,” and in Part II, Item 8 of this Form 10—K in Notes to Consolidated Financial Statements at Note 9, “Segment Information and Geographic Data."
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`Products
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`The Company offers a range of personal computing products, mobile communication devices, and portable digital music and video players, as well as a variety of related
`software, services, peripherals, networking solutions and various third—party hardware and sofiware products. The Company designs, develops, and markets to Mac and
`Windows users its iPhone mobile communication devices and its family of iPod digital music and video players, along with related accessories and services, including
`the online distribution of third«party digital content and applications through the Company’s iTunes Store. In addition, the Company offers its own software products,
`including Mac OS X, the Company’s proprietary opaating system software for the Mac; server software and related solutions; professional application soltware; and
`consumer, education, and business oriented application soflware. The Company’s primary products are discussed below.
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`Mac Hardware Products
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`The Company offers a range of personal computing products including desktop and notebook computers, servers, related devices and peripherals, and various third-party
`hardware products. The Company's Mac desktop and portable systems feature Intel microprocessors, the Company’s Mac OS X Version 10.6 Snow Leopard" (“Mac OS
`X Snow Leopard") operating system and iLife~ suite of software for creation and management of digital photography, music, movies, DVDs and websites.
`
`MacBook“ Pro
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`The MacBook Pro family of notebook computers is designed for professionals and consumers. In June 2009, the Company updated its aluminum unibody MacBook Pro
`line to include l3‘inch, l5-inch and 17-inch models. Each MacBook Pro includes an LED-backlit display, a glass Multi-Touchm trackpad, an illuminated keyboard, an
`SD card or ExpressCard slot, a FireWire~ 800 port, built-in AirPort Extreme“ 802.lln wireless networking and Bluetooth 2.1. The 13-inch MacBook Pro includes up to
`2.53 GHZ in processor speed and an NVIDIA GeForce 9400M graphics processor. The 15-inch and 17-inch MacBook Pro models offer up to 3.06 GHz in processor
`speed and the NVIDIA GeForce 9600M GT discrete graphics processor.
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`MacBook“
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`The MacBook is designed for consumer and education users. In October 2009, the Company updated its MacBook with a new polycarbonate unibody design that
`includes an LED-backlit display and a glass Mu1ti—TouchW trackpad. The MacBook includes up to 2.26 GHz in processor speed, NVIDIA GeForce 9400M graphics
`processor, support for up to 4GB of 1066 MHz SDRAM memory, up to a 500 GB Serial ATA hard drive, a SuperDrive°, built~in AirPort Extreme 802.1 ln wireless
`etworking and Bluetooth 2.1.
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`MacBook Air“
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`In June 2009, the Company updated its MacBook Air, an ult:ra-slim notebook computer that measures 0.l6—inches at its thinnest point and 0.76—inches at its maximum
`height when closed. The MacBook Air includes up to 2.13 GHz processor speed with 6MB of Level 2 cache, NVIDIA GeForce 9400M graphics processor, 2GB of
`memory, and a 128GB hard drive. The MacBook Air includes a 13.3-inch LED—backlit widescreen display, a fu.ll-size backlit keyboard, a built-in iSight® video camera, a
`trackpad with Multi-Touch gesture support, and built—in AirPort Extreme 802.1 In wireless networking and Bluetooth 2.1.
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`Table of Contents
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`Mac“ Pro
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`The Mac Pro desktop computer is targeted at business and professional customers and is designed to meet the performance, expansion, and networking needs of the most
`demanding Mac user. In March 2009, the Company introduced an updated Mac Pro featuring up to two Intel Quad—Core Xeon processors running at up to 2.93 Gl-lz,
`8GB of shared Level 3 cache per processor, and up to 32GB of 1066 MHz SDRAM memory. The Mac Pro also features a direct attach storage solution for snap-in
`installation of up to four 1TB hard drives for a total of 4TB of internal storage, up to two double-layer SuperDrive disk drives, Bluetooth 2.1 and optional AirPort
`Extreme 802.l1n wireless networking.
`
`. iMac®
`
`The Mac desktop computer is targeted at consumer, education and business customers. In October 2009, the Company introduced new iMac models, which feature 21.5-
`inch or 27-inch LED—backlit displays in a glass and aluminum enclosure. The iMac includes up to 3.33 GHZ processor speed, up to 16GB of 1066 MHz SDRAM
`memory, multiple graphics card options, up to a 2TB Serial ATA hard drive and a slot-loading double-layer SuperDrive. The 27-inch iMac model also features an Intel
`Quad-Core i5 or i7 processor nmning at up to 2.8 GHz, and is expected to be available in November 2009. All iMac models include a built-in iSight video camera,
`AirPort Extreme 802.1ln wireless networldng, Bluetooth 2.1 and come with the new wireless Magic Mouse, the first mouse with Mu1ti—Touch technology.
`
`Mac“ mini
`
`The Mac mini is a desktop computer measuring 6.5 by 6.5 by 2—inches. In October 2009, the Company updated the Mac mini line to include up to 2.66 GHz processor
`speed, up to 4GB of 1066 MHz SDRAM memory, up to a 500GB hard drive and NVIDIA GeForce 9400M integrated graphics. All Mac mini models include built-in
`AirPort Extreme 802.11n wireless networking. Bluetooth 2.1, a total of five USB 2.0 ports, and one FireWire 800 port. Mac mini includes dual display support and can
`operate displays with Mini DisplayPort or DVI connections. The Company also offers a Mac mini that is configured with Mac OS X Snow Leopard Server, featuring two
`500GB hard drives for a total of 1TB of server storage.
`
`Xserve‘
`
`Xserve is a 1U rack-mount sen/er available with up to two 2.93 GHz Quad~Core Intel Xeon processors and features Mac OS X Server 10.6 Snow Leopard, which
`became available in August 2009. Xserve supports up to 24GB of random access memory, remote management, storage drives of up to 3TB, an optional 128GB solid
`state drive and an optional internal Xserve RAID card.
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`iPhone“
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`iPhone combines a mobile phone, a widescreen iPod with touch controls, and an Internet communications device in a single handheld product. Based on the Company’s
`ulti Touch user interface, iPhone features desktop-class email, web browsing, searching, and maps and is compatible with both Macs and Windows-based computers.
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`whenautomatically syncscontentfromusers‘ iTuneslibraries,aswellascontacts,bookmarks,andemailaccounts. iPhoneallowsusersto wirelesslyaccesstheiTunes
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`tore to purchase and/or download audio and video content as well as thousands of applications. In July 2008, the Company launched the App Store that allows a user to
`browse, search for, or purchase third—party applications through either a Mac or Windows~based computer or by wirelessly downloading directly to an iPhone or iPod
`touch.
`
`In June 2009, the Company announced iPhone 3GS, the third-generation iPhone. It combines the features of iPhone 3G, which was released in July 2008, with a built—in
`three megapixel auto-focus camera, video recording and hands free voice control. iPhone 3GS is a quad—band GSM phone featuring 3G, EDGE and Wi-Fi wireless
`technologies for data networking, Bluetooth 2.1, and a 3.5-inch touch widescreen with 480-by-320 resolution at
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`163 pixels per inch. iPhone 3GS provides up to 12 hours of talk time on 2G networks and five hours using 3G networks, up to nine hours of web browsing, up to ten
`hours of video playback, or up to 30 hours of audio playback. It is available in 16GB and 32GB configurations. The Company also continues to offer the iPhone 3G in a
`8GB configuration.
`
`In September 2009, the Company released iPhone 3.1 sofiware, which features Genius technology enhancements including Genius Mixes and Genius recommendations
`for applications. iPhone 3.1 also incorporates improved syncing capabilities, which allows users to organize their applications in iTunes and sync back to their iPhones.
`iPhone 3.1 includes Cut, Copy and Paste, Spotlightw Search, MMS messaging and a landscape keyboard for Mail, Notes and Safari». Certain features of the iPhone 3.1
`sofiware are not supported by some of iPhone’s cellular network carriers.
`
`The Company has signed multi-year agreements with various cellular network carriers authorizing them to distribute and provide cellular network services for iPhones.
`These agreements are generally not exclusive with a specific carrier, except in the U.S., Germany, Spain, Ireland, and certain other colmtries.
`
`In addition to the Company’s own iPhone accessories, third-party iPhone compatible products, including headsets, cables and docks, power supplies, and carrying cases,
`are available through the Company’s online and retail stores or from third parties.
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`Music Products and Services
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`The Company offers its iPod line of portable digital music and video players and related accessories to Mac and Windows users. All iPods work with the Company’s
`iTunes digital music management software (“iTunes”) available for both Mac and Windows—based computers. The Company also provides an online service to distribute
`third-party music. audio books, music videos, short films, television shows, movies, podcasts, and applications through its iTunes Store. In addition to the Company’s
`own iPod accessories, third-party iPod compatible products are available, either through the Company’s online and retail stores or fiom third parties, including portable
`and desktop speaker systems, headphones, car radio solutions, voice recorders, cables and docks, power supplies and chargers, and carrying cases and armbands.
`
`iPod® shuffle
`
`In September 2009, the Company updated the third-generation iPod shuffle, a flash-memory-based iPod which is nearly halfthe size of the second generation model and
`is the first music player with the Voiceover feature enabling it to speak song titles, artists and playlist names. iPod shuflle holds up to 1,000 songs and is the first iPod
`shuffle to accommodate playlists. iPod shuffles include a shuflle switch feature that allows users to listen to their music in random order or in the order of their playlists
`synced through iTunes. iPod shuffle works with iTunes’ patent-pending AutoFill option that automatically selects songs to fill the iPod shufile from a user’s iTunes
`library. The new iPod shuffle is available in 2GB and 4GB configurations in an aluminum design in a variety of colors, or a special edition 4GB configuration in a
`stainless steel design.
`
`iPod!“ nano
`
`September 2009, the Company introduced the new iPod nano, a flash—memory-based iPod The new iPod nano includes a video camera, microphone and speaker, a
`uilt-in FM radio with live pause fimctionality, iTunes Tagging, and a built—in pedometer. The new iPod nano incorporates a larger 2.2-inch display with 204 pixels per
`inch, a built-in accelerometer, and an updated user interface featuring Cover Flow» and Shake to Shuffle mode. The new iPod nano also features Genius Mixes, allowing
`users to automatically create song mixes from their music libraries. The new iPod nano provides up to 24 hours of audio playback or up to five hours of video playback
`and is available in 8GB and 16GB configurations in a variety of colors.
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`Table of Conten_ts
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`iPod'° classic
`
`The iPod classic is an upgraded version of the original iPod, the Company‘s hard-drive based portable digital music and video player. In September 2009, the Company
`introduced an updated version of the iPod classic, which has 160 GB of storage and is capable of holding up to 40,000 songs, 200 hours of video, or 25,000 photos. The
`iPod classic provides up to 36 hours of audio playback or up to six hours of video playback, features “Genius” technology, and includes a 2.5-inch color screen that can
`display album artwork, photos, and video content including music videos, video and audio podcasts, short films, television shows, movies, and games.
`
`iPod“ touch
`
`In September 2009, the Company introduced the third~generation iPod touch, a flash-memory-based iPod that is 0.33-inches thin and features a 3.5-inch widescreen
`display, Genius technology, a built-in speaker, and an accelerometer. The new iPod touch features peer-to-peer connections, which gives users the ability to play multi-
`player games with other users, Genius Mixes, and iPhone 3.1 software. The iPod touch’s user interface is based on the Company’s Multi-Touch user interface. It also
`includes Wi-Fi wireless networking, which allows users to access the iTunes Wi-Fi Music Store and the App Store to purchase and/or download audio and video files, as
`well as a variety of other applications. The iPod touch is available in 8GB, 32GB and 64GB configurations and features up to 30 hours of audio playback and up to six
`hours of video playback.
`
`iTunes” 9
`
`iTunes is an application for playing, downloading, and organizing digital audio and video files and is available for both Mac and Windows-based computers. iTunes is
`integrated with the iTunes Store, a service that allows customers to find, purchase, rent, and download third-party digital music, audio books, music videos, short films,
`television shows, movies, games, and other applications. Originally introduced in the U.S. in April 2003, the iTunes Store now serves customers in 23 countries. In
`September 2009, the Company announced iTunes 9, which includes Genius Mixes, 11 new feature in Genius technology, Home Sharing, which allows users to transfer
`music, movies and TV shows among up to five authorized computers, and improved syncing fimctionality that allows users to organize their iPhone applications in
`iTunes, to sync music by artist and genre, and to sync photos by Events and Faces. In January 2009, the Company announced it would offer all songs in the iTunes
`catalog without digital rights management software and that iTunes songs would be available at three standard price points, beginning in April 2009 in most countries.
`
`Peripheral Products
`
`The Company sells a variety of Apple-branded and third-party Mac-compatible peripheral products directly to cnd—users through its retail and online