Case 2:19-cv-00118-JRG Document 77 Filed 02/28/20 Page 1 of 13 PageID #: 1300
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
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`QUEST NETTECH CORPORATION,
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`Plaintiff,
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`Case No. 2:19-cv-00118
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`JURY TRIAL DEMANDED
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`PLAINTIFF’S SECOND AMENDED COMPLAINT FOR PATENT INFRINGEMENT
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`Plaintiff, Quest NetTech Corporation (“NetTech” or “Plaintiff”), files this Second
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`v.
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`APPLE INC.,
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`Defendant.
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`Amended Complaint against Defendant, Apple Inc. (“Apple” or “Defendant”), for patent
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`infringement under 35 U.S.C. § 271 and alleges as follows:
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`THE PARTIES
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`1.
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`Plaintiff, NetTech, is a limited liability company organized and existing under the
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`laws of the State of Texas in 2009, and maintains its principal place of business at 100 W.
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`Houston Street, Marshall, Texas 75670. NetTech is the owner of all right, title, and interest in
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`and to U.S. Reissue Patent No. RE 38,137 (the “’137 Patent” or “Patent-in-Suit”), a true and
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`correct copy of which is annexed hereto as Exhibit A.
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`2.
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`Upon information and belief, Defendant Apple is a California corporation having
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`a principal place of business in Cupertino, California and regular and established places of
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`business at 2601 Preston Road, Frisco, Texas, and 6121 West Park Boulevard, Plano, Texas, as
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`well as other locations in Texas at the time of the original complaint.1 Apple offers and sells its
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`products and/or services, including those accused herein of infringement, to customers and
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`potential customers located in Texas, including in the Eastern District of Texas. Apple may be
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`served with process through its registered agent for service in Texas: CT Corporation System,
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`1999 Bryant Street, Suite 900, Dallas, Texas 75201.
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`JURISDICTION AND VENUE
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`3.
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`This is an action for patent infringement arising under the patent laws of the
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`United States, 35 U.S.C. §§ 1, et seq. This Court has jurisdiction over this action pursuant to
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`28 U.S.C. §§ 1331, 1338(a), and 1367.
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`4.
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`Venue is proper in this judicial district pursuant to 28 U.S.C. § 1400(b). As of the
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`time of the original complaint, Apple has regular and established places of business in this
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`Judicial District, including in Frisco and Plano, is deemed to reside in this Judicial District, has
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`committed acts of infringement in this Judicial District, and/or has purposely transacted business
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`involving the accused devices in this Judicial District. See Exs. B, C.
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`5.
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`This Court has personal jurisdiction over Apple. Apple conducts business and has
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`committed acts of patent infringement in this Judicial District, the State of Texas, and elsewhere
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`in the United States.
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`PATENT-IN-SUIT
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`6.
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`On June 10, 2003, the United States Patent and Trademark Office duly and legally
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`issued the ’137 Patent entitled “Programmable Multiple Company Credit Card System.” A true
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`and correct copy of the ’137 Patent is attached hereto as Exhibit A.
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`                                                            
`1 See Apple Willow Bend, Apple (Retrieved April 11, 2019), https://www.apple.com/retail/willowbend (attached
`hereto as Exhibit B); Apple Stonebriar, Apple (Retrieved April 11, 2019), https://www.apple.com/retail/stonebriar
`(attached hereto as Exhibit C).
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`FACTUAL ALLEGATIONS
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`7.
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`The Patent-in-Suit generally covers a multiple account electronic credit card,
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`comprising a processor, a memory, and an interface for communication with a card reader, also
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`capable of electronically compiling, storing, and retrieving data related to the holder and a
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`plurality of accounts and transactions in real time as transactions occur.
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`8.
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`Apple manufactures, uses, sells, offers for sale, and/or imports into the United
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`States electronic devices such as, but not limited to the iPhone 6 (hereinafter the “Accused
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`Devices”). The Accused Devices, together with Apple’s software components such as, but not
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`limited to, Apple Pay, iOS 8, iOS 9, and/or iOS 10 are configured to interact with Apple’s
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`servers which provide the Apple Pay service, among other services provided by Apple and
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`utilized by Apple’s customers when operating the Accused Devices.
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`https://support.apple.com/en-us/HT208531
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`iPhone 6 Teardown, IFIXIT, https://www.ifixit.com/Teardown/iPhone+6+Teardown/29213
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`(April 8, 2019).
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`https://www.theverge.com/2014/9/9/6084211/apple-pay-iphone-6-nfc-mobile-payment
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`9.
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`The Accused Devices comprise an electronic credit card for handling multiple
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`accounts comprising, a common processor for controlling operation of the credit card relative to
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`all of the multiple accounts; a memory for storing financial transaction records relative to the
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`multiple accounts, and for storing holder information and secondary account information; and an
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`NFC interface for communication with a card reader. The Accused Devices includes additional
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`functionalities wherein personal information identifying an authorized person for the electronic
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`credit card and wherein the secondary account information, including credit card issuer
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`information for each of a plurality of accounts, are stored on the memory of the accused device;
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`wherein said memory is of sufficient size to store financial transaction records related to a
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`predetermined time period of use, and Apple Pay, iOS 8, iOS 9, and/or iOS 10 enable transfer of
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`data stored in the memory to a new multiple account electronic credit card; and wherein said
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`common processor is effective for handling the financial transaction records relative to all of the
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`multiple accounts while being able to identify and retrieve information relating to specific
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`accounts in response to operator commands.
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`Screen Capture from Apple September 9, 2014 Keynote Presentation at 48:25
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`(https://www.youtube.com/watch?v=38IqQpwPe7s&t=1s) (April 8, 2019).
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`Processor
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`Memory
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`Wireless
`Interface
`Component
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`Case 2:19-cv-00118-JRG Document 77 Filed 02/28/20 Page 7 of 13 PageID #: 1306
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`Wireless
`Interface
`Component
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`iPhone 6 Teardown, IFIXIT, https://www.ifixit.com/Teardown/iPhone+6+Teardown/29213
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`(retrieved April 8, 2019).
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`COUNT I
`(Infringement of the ’137 Patent)
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`10.
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`Paragraphs 1 through 9 are incorporated herein by reference as if fully set forth in
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`their entireties.
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`11.
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`NetTech has not licensed or otherwise authorized Apple to make, use, offer for
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`sale, sell, or import any Accused Devices and/or products that embody the inventions of the ’137
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`Patent.
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`12.
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`Apple has directly infringed at least claim 10 of the ’137 Patent, either literally or
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`under the doctrine of equivalents, by making, using, offering to sell, selling and/or importing into
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`the United States the Accused Devices without authority and in violation of 35 U.S.C. § 271(a).
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`For example, the Accused Devices, including at least the iPhone 6, include a multiple account
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`electronic credit card for handling multiple accounts, the credit card comprising a common
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`processor for controlling operation of the credit card relative to all of the multiple accounts. For
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`example, the iPhone 6 includes Apple Pay functionality which can control the operation of
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`multiple credit cards relative to multiple accounts. Furthermore, the iPhone 6 includes an Apple
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`A8 processor. Additionally, the Accused Products, such as the iPhone 6, include memory, such
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`as SK Hynix RAM, which can store financial transaction records relative to the multiple
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`accounts, and can store holder information and secondary account information. This holder
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`information and secondary account information is loaded into the Accused Products’ RAM
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`during operation of Apple Pay.
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`13.
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`The Accused Products further include an interface for communicating with a card
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`reader. For example, the iPhone 6 includes an NXP 65V10 NFC module. Additionally, the
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`Apple Pay interface includes personal information identifying an authorized person for the
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`electronic credit card and secondary account information including electronic credit card issuer
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`information identifying a respective issuer of each of the multiple accounts so that the issuer of
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`each of the multiple accounts is identified on the credit card. For example, the Apple Pay
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`software includes information such as the credit card company and the credit card number.
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`14.
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`The Accused Products further include a memory that is of sufficient size to store
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`financial transaction records related to a predetermined time period of use. For example, as set
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`forth above, the Accused Products include memory and software, such as Apple Pay, that can
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`store financial transaction records, viewed through Apple Passbook and Apple Wallet, as shown
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`in the figures below. Additionally, the Accused Products can display notifications that indicate
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`the status of the financial transactions. The Accused Products further include a software facility
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`associated with the processor and the memory that enables transfer of data stored in the memory
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`to a new multiple account electronic credit card. For example, Apple Pay as used on the
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`Accused Devices, permits users to add new cards for payment.
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`Luke Filipowicz, How
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`to view your recent
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`transactions with Apple Pay,
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`iMore,
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`https://www.imore.com/how-view-recent-transactions-apple-pay (Nov. 11, 2014) (Retrieved
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`April 11, 2019).
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`Case 2:19-cv-00118-JRG Document 77 Filed 02/28/20 Page 10 of 13 PageID #: 1309
`Case 2:19-cv-00118—JRG Document 77 Filed 02/28/20 Page 10 of 13 PageID #: 1309
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`The area beneath Dassboak cards seems to only show transactions from the last 24
`hours‘ if you haven't made a transaction in the last 24 hours. it shows the East
`transaction you made.
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`10
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`Case 2:19-cv-00118-JRG Document 77 Filed 02/28/20 Page 11 of 13 PageID #: 1310
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`Id.
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`15.
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`The Accused Products additionally include a processor for handling the financial
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`transaction records relative to all of the multiple accounts while being able to identify and
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`retrieve information relating to specific accounts responsive to operator commands. For
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`Case 2:19-cv-00118-JRG Document 77 Filed 02/28/20 Page 12 of 13 PageID #: 1311
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`example, the operator of the Accused Devices including Apple Pay may use the touch-screen to
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`select the payment card.
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`16.
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`NetTech has suffered damages as a result of Apple’s direct infringement of the
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`’137 Patent in an amount to be proved at trial.
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`DEMAND FOR JURY TRIAL
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`Plaintiff hereby demands a jury for all issues so triable.
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`PRAYER FOR RELIEF
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`WHEREFORE, NetTech prays for relief against Defendant as follows:
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`a.
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`Entry of judgment declaring that Apple has directly infringed one or more claims
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`of the Patent-in-Suit;
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`b.
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`An order awarding damages sufficient to compensate NetTech for Apple’s
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`infringement of the Patent-in-Suit, but in no event less than a reasonable royalty, together with
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`interest and costs;
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`c.
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`Entry of judgment declaring that this case is exceptional and awarding NetTech
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`its costs and reasonable attorney fees under 35 U.S.C. § 285; and
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`d.
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`Such other and further relief as the Court deems just and proper.
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`Dated: February 28, 2020
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`Respectfully submitted,
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`
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`BROWN RUDNICK LLP
`
` /s/ Alfred R. Fabricant
`Alfred R. Fabricant
`NY Bar No. 2219392
`Email: afabricant@brownrudnick.com
`Peter Lambrianakos
`NY Bar No. 2894392
`Email: plambrianakos@brownrudnick.com
`Vincent J. Rubino, III
`NY Bar No. 4557435
`Email: vrubino@brownrudnick.com
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`12
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`Case 2:19-cv-00118-JRG Document 77 Filed 02/28/20 Page 13 of 13 PageID #: 1312
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`BROWN RUDNICK LLP
`7 Times Square
`New York, NY 10036
`Telephone: (212) 209-4800
`Facsimile: (212) 209-4801
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`ATTORNEYS FOR PLAINTIFF
`QUEST NETTECH CORPORATION
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`13
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