Case 6:21-cv-00916-ADA Document 18 Filed 12/02/21 Page 1 of 71
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`WACO DIVISION
`
`
`RFCyber CORP.,
`
`
`
`v.
`
`
`APPLE, INC.
`
`
`
`Case No. 6:21-cv-00916-ADA
`
`JURY TRIAL DEMANDED
`
`
`§
`§
`§
`§
`§
`§
`§
`§
`§
`§
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`AMENDED COMPLAINT FOR PATENT INFRINGEMENT
`
`Plaintiff,
`
`Defendants.
`
`
`
`
`
`Plaintiff, RFCyber Corp. (“RFCyber” or “Plaintiff”), files this Amended Complaint against
`
`Defendant Apple, Inc. (“Apple” or “Defendant”), for patent infringement under 35 U.S.C. § 271
`
`and alleges as follows:
`
`THE PARTIES
`
`1.
`
`RFCyber is a Texas corporation with a place of business at 600 Columbus
`
`Avenue, Suite 106, Waco, Texas 76701. RFCyber is the owner of all right, title, and interest in
`
`and to, or is the exclusive licensee with the right to sue for U.S. Patent Nos. 8,118,218,
`
`8,448,855, 9,189,787, 9,240,009, 10,600,046, and 11,018,724 (collectively, the “Patents-in-Suit”
`
`or “Asserted Patents”).
`
`2.
`
`Defendant Apple, Inc. is a corporation organized and existing under the laws of
`
`California, with one or more regular and established places of business in this District at least at
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`12545 Riata Vista Circle, Austin, Texas 78727; 12801 Delcour Drive, Austin, Texas 78727;
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`6800 W Parmer Lane, Austin, Texas 78729, and 3121 Palm Way, Austin, Texas 78758. Apple
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`may be served with process through its registered agent, the CT Corp System, at 1999 Bryan St.,
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`Ste. 900 Dallas, Texas 75201-3136. In November 2019, Apple stated that it had approximately
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`Case 6:21-cv-00916-ADA Document 18 Filed 12/02/21 Page 2 of 71
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`7,000 employees in Austin and that it expected to open, in 2022, a $1 billion, 3 million-square-
`
`foot campus with capacity for 15,000 employees. See
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`https://www.apple.com/newsroom/2019/11/apple-expands-in-austin/. Apple is registered to do
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`business in the State of Texas and has been since at least May 16, 1980.
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`JURISDICTION AND VENUE
`
`3.
`
`This is an action for patent infringement arising under the patent laws of the
`
`United States, 35 U.S.C. §§ 1, et seq. This Court has subject matter jurisdiction over this action
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`pursuant to 28 U.S.C. §§ 1331, 1332, 1338, and 1367.
`
`4.
`
`5.
`
`The amount in controversy exceeds $75,000.
`
`This Court has specific and personal jurisdiction over Defendant consistent with
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`the requirements of the Due Process Clause of the United States Constitution and the Texas Long
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`Arm Statute. Upon information and belief, Defendant has sufficient minimum contacts with the
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`forum because Defendant has physical locations and transacts substantial business in the State of
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`Texas and in this Judicial District. Further, Defendant has, directly or through subsidiaries or
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`intermediaries, committed and continues to commit acts of patent infringement in the State of
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`Texas and in this Judicial District as alleged in this Complaint, as alleged more particularly
`
`below.
`
`6.
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`Venue is proper in this Judicial District pursuant to 28 U.S.C. §§ 1400(b) and
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`1391(b) and (c) because Defendant is subject to personal jurisdiction in this Judicial District, has
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`committed acts of patent infringement in this Judicial District, and has a regular and established
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`place of business in this Judicial District. Defendant, through its own acts, makes, uses, sells,
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`and/or offers to sell infringing products within this Judicial District, regularly does and solicits
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`2
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`Case 6:21-cv-00916-ADA Document 18 Filed 12/02/21 Page 3 of 71
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`business in this Judicial District, and has the requisite minimum contacts with the Judicial
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`District such that this venue is a fair and reasonable one.
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`PATENTS-IN-SUIT
`
`7.
`
`On February 21, 2012, the United States Patent and Trademark Office duly and
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`legally issued U.S. Patent No. 8,118,218 (the “’218 Patent”) entitled “Method and Apparatus for
`
`Providing Electronic Purse.” A true and correct copy of the ’218 Patent is attached as Exhibit A.
`
`8.
`
`On May 28, 2013, the United States Patent and Trademark Office duly and legally
`
`issued U.S. Patent No. 8,448,855 (the “’855 Patent”) entitled “Method and Apparatus For
`
`Funding An Electronic Purse.” A true and correct copy of the ’855 Patent is attached as Exhibit
`
`B.
`
`9.
`
`On November 17, 2015, the United States Patent and Trademark Office duly and
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`legally issued U.S. Patent No. 9,189,787 (the “’787 Patent”) entitled “Method and Apparatus for
`
`Conducting E-Commerce and M-Commerce.” A true and correct copy of the ’787 Patent is
`
`attached as Exhibit C.
`
`10.
`
`On January 19, 2016, the United States Patent and Trademark Office duly and
`
`legally issued U.S. Patent No. 9,240,009 (the “’009 Patent”) entitled “Mobile Devices for
`
`Commerce Over Unsecured Networks.” A true and correct copy of the ’009 Patent is attached as
`
`Exhibit D.
`
`11.
`
`On January March 24, 2020, the United States Patent and Trademark Office duly
`
`and legally issued U.S. Patent No. 10,600,046 (the “’046 Patent”) entitled “Method and
`
`Apparatus for Mobile Payments.” A true and correct copy of the ’046 Patent is attached as
`
`Exhibit E.
`
`3
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`12.
`
`On May 25, 2021, the United States Patent and Trademark Office duly and legally
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`issued U.S. Patent No. 11,018,724 (the “’724 Patent”) entitled “Method and Apparatus for
`
`Emulating Multiple Cards in Mobile Devices.” A true and correct copy of the ’724 Patent is
`
`attached as Exhibit F.
`
`13.
`
`RFCyber is the sole and exclusive owner of all right, title and interest to and in, or
`
`is the exclusive licensee with the right to sue for, the ’218, ’855, ’787, ’009, ’046, and ’724
`
`Patents, and holds the exclusive right to take all actions necessary to enforce its rights to the
`
`Patents-in-Suit, including the filing of this patent infringement lawsuit. RFCyber also has the
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`right to recover all damages for past, present, and future infringement of the Patents-in-Suit and
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`to seek injunctive relief as appropriate under the law.
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`INFRINGEMENT ALLEGATIONS
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`14.
`
`The technologies of the Patents-in-Suit were variously invented by Liang Seng
`
`Koh, Hsin Pan, Xiangzhen Xie, Futong Cho, and Fuliang Cho. The Patents-in-Suit generally
`
`cover apparatus and methods for enabling secure contactless payment with a portable device. In
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`one exemplary embodiment, a smart card module including a secure element may emulate a
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`payment card over near field communications (“NFC”). For example, users may select one of a
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`plurality of payment cards stored in a memory of the secure element, and carry out a transaction
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`via NFC at a point of service (“POS”). In another embodiment, the device may securely conduct
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`transactions over an open network with a payment server. By facilitating the settlement of
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`charges using an NFC mobile device to read off data pertaining to an electronic invoice, the
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`inventions of the Patents-in-Suit provide significant time-savings, particularly in situations where
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`a payment process would otherwise involve more than one contact between a merchant and
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`consumer.
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`15.
`
`Apple has manufactured, used, marketed, distributed, sold, offered for sale, and
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`exported from and imported into the United States devices and software that infringe the Patents-
`
`in-Suit. Apple has distributed variants of Apple Pay that have included functionality to emulate a
`
`payment card and settle a transaction via NFC and/or MST at least since October 2014.1 Apple
`
`Pay is operable on a range of Apple devices, including at least all devices from the iPhone 6,
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`iPhone 6 Plus, and above, including, at least all variants of the following Apple devices: iPhone
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`6, iPhone 6 Plus, iPhone SE, iPhone 7, iPhone 7Plus, iPhone 8, iPhone 8 Plus, iPhone X, iPhone
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`11, iPhone 12, iPad Pro, iPad Air, iPad, and iPad mini models with Touch ID or Face ID, Apple
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`Watch Series 1 and later, Mac models with Touch ID, Mac computers with Apple Silicon that
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`are paired with a Magic Keyboard with Touch ID, and all Apple devices released since October
`
`2014.2 The current and previous versions of Apple Pay and devices running Apple Pay, alone
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`and together, are non-limiting instances of the Accused Products. The Accused Products include,
`
`for example, the representative iPhone X running Apple Pay. The Accused Products practice the
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`claims of the Patents-in-Suit to improve the shopping experience of their users, and to improve
`
`Apple’s position in the market.
`
`16.
`
`In August of 2016, LogicPatents, a broker, contacted Apple regarding the
`
`RFCyber patent portfolio, specifically the ’218, ’855, ’787, and ’009 Patents, as well as the
`
`applications that eventually issued as the ’046 and ’724 Patents.
`
`17.
`
`18.
`
`No agreement was reached with Apple regarding any of the Patents-in-Suit.
`
`At least as a result of LogicPatents contacting Apple, Apple has had knowledge of
`
`the ’218, ’855, ’787, and ’009 Patents since at least August 2016.
`
`
`1 See https://www.apple.com/newsroom/2014/09/09Apple-Announces-Apple-Pay/
`2 https://support.apple.com/en-us/HT208531
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`19.
`
`On information and belief, as a result of LogicPatents contacting Apple, Apple
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`has had knowledge of the ’046 and ’724 Patents since they issued on March 24, 2020 and May
`
`25, 2021, respectively.
`
`20.
`
`Apple is the assignee of U.S. Patent No. 10,878,414 (“the ’414 Patent”). On
`
`September 23, 2016, during prosecution of the ’414 Patent, Apple listed the publication of the
`
`’009 Patent’s application in an information disclosure statement to the United States Patent
`
`Office. Apple therefore had knowledge of the ’009 Patent since at least September 23, 2016. On
`
`information and belief, Apple’s investigation that discovered the ’009 Patent provided it with
`
`knowledge of the other Patents-in-Suit at least as of the same time.
`
`21.
`
`Apple is the assignee of U.S. Patent No. 10,929,843 (“the ’843 Patent”). During
`
`prosecution, the Patent Examiner cited 15 RFCyber patents and applications, including the ’009
`
`and ’046 Patents. Apple therefore had knowledge of at least the ’009 and ’046 Patents at least as
`
`of April 29, 2020, when the Examiner cited them during prosecution of the ’843 Patent.
`
`22.
`
`On information and belief, as a sophisticated company with an experienced legal
`
`department, Apple investigated RFCyber’s issued patents after seeing numerous RFCyber
`
`patents and applications cited during prosecution of the ’843 Patent. On information and belief,
`
`Apple further had knowledge of the Patents-in-Suit at least since November 29, 2017, when the
`
`Examiner cited six RFCyber patent applications during prosecution of the ’843 Patent.
`
`23.
`
`Apple has also had knowledge of the Patents-in-Suit, and the way that its products
`
`infringe those patents, since it received the original Complaint in this case, filed on September 7,
`
`2021 and served on September 13, 2021.
`
`24.
`
`Apple’s infringement of the Patents-in-Suit is willful. Apple continues to commit
`
`acts of infringement despite a high likelihood that its actions constitute infringement, and Apple
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`knew or should have known that its actions constituted an unjustifiably high risk of infringement.
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`Apple’s infringement of patents that were specifically disclosed to it, and that it declined to reach
`
`an agreement on, and its continuing infringement after the filing of the original Complaint, is
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`particularly egregious.
`
`25.
`
`RFCyber has at all times complied with the marking provisions of 35 U.S.C. §
`
`287 with respect to the Patents-in-Suit. On information and belief, any prior assignees and
`
`licensees have also complied with the marking provisions of 35 U.S.C. § 287.
`
`COUNT I
`(Infringement of the ’218 Patent)
`
`26.
`
`Paragraphs 1 through 25 are incorporated herein by reference as if fully set forth
`
`in their entireties.
`
`27.
`
`RFCyber has not licensed or otherwise authorized Apple to make, use, offer for
`
`sale, sell, or import any products that embody the inventions of the ’218 Patent.
`
`28.
`
`Apple infringes, contributes to the infringement of, and/or induces infringement
`
`of the ’218 Patent by making, using, selling, offering for sale, distributing, exporting from,
`
`and/or importing into the United States products and/or methods covered by one or more claims
`
`of the ’218 Patent, including, but not limited to, at least the Accused Products.
`
`29.
`
`Apple has directly infringed and continues to directly infringe the ’218 Patent,
`
`either literally or under the doctrine of equivalents, without authority and in violation of 35
`
`U.S.C. § 271, by making, using, offering to sell, selling and/or importing into the United States
`
`products that satisfy each and every limitation of one or more claims of the ’218 Patent. Upon
`
`information and belief, these products include the Accused Products that practice the methods
`
`and systems covered by the ’218 Patent, including, for example, card emulation and NFC
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`7
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`payment functionality implemented by Apple Pay running on an Apple device, such as the
`
`representative iPhone X. For example, these products infringe at least claim 1 of the ’218 Patent.
`
`30.
`
`For example, Apple has and continues to directly infringe at least claim 1 of the
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`‘218 Patent by making, using, offering to sell, selling and/or importing into the United States
`
`products that implement a method for providing an e-purse, the method comprising: providing a
`
`portable device including or communicating with a smart card pre-loaded with an emulator
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`configured to execute a request from an e-purse applet and provide a response the e-purse applet
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`is configured to expect, the portable device including a memory space loaded with a midlet that
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`is configured to facilitate communication between the e-purse applet and a payment server over a
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`wireless network, wherein the e-purse applet is downloaded and installed in the smart card when
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`the smart card is in communication with the payment server, the portable device further includes
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`a contactless interface that facilitates communication between the e-purse applet in the smart
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`card and the payment server over a wired network; personalizing the e-purse applet by reading
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`off data from the smart card to generate in the smart card one or more operation keys that are
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`subsequently used to establish a secured channel between the e-purse applet and an e-purse
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`security authentication module (SAM) external to the smart card, wherein said personalizing the
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`e-purse applet comprises: establishing an initial security channel between the smart card and the
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`e-purse SAM to install and personalize the e-purse applet in the smart card, and creating a
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`security channel on top of the initial security channel to protect subsequent operations of the
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`smart card with the e-purse SAM, wherein any subsequent operation of the emulator is
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`conducted over the security channel via the e-purse applet.
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`31.
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`The Accused Products provide a portable device, such as the Apple iPhone X,
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`including or communicating with a smart card pre-loaded with an emulator configured to execute
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`8
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`a request from an e-purse applet and provide a response the e-purse applet is configured to
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`expect. For example, the iPhone X includes or communicates with a smart card such as an NFC
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`module, and/or assembly of an NFC module, secure element, processor, microcontroller, and/or
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`memory, such as an NXP 80V18 PN80V NFC Controller. On information and belief, the smart
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`card (e.g. NFC module) of the iPhone X is pre-loaded with an emulator configured to execute a
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`request from an e-purse applet, such as a payment card applet within Apple Pay, and provide a
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`response that the applet is configured to expect.
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`
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`32.
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`For example, Accused Products, such as the iPhone X, include a memory space
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`loaded with a midlet, such as Apple Wallet or other software, that is configured to facilitate
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`communication between the e-purse applet, such as a payment card stored on the product, and a
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`payment server, such as a merchant and/or financial institution payment server, over a wireless
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`network. For example, on information and belief, the Apple iPhone X comprises memory such as
`
`RAM, ROM, Flash, and/or EEPROM, including in both the NFC module and secure element.
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`9
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`For example, on information and belief, the secure element of the Apple iPhone X running Apple
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`Pay further comprises a memory such as RAM, ROM, Flash, and/or EEPROM.
`
`
`
`
`
`https://support.apple.com/guide/security/apple-pay-component-security-sec2561eb018/1/web/1
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`https://support.apple.com/guide/security/secure-element-and-nfc-controller-seccb53a35f0/web
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`33.
`
`The Accused Products further perform a method wherein the e-purse applet is
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`downloaded and installed in the smart card when the smart card is in communication with the
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`payment server. For example, the Apple iPhone X running Apple Pay operates to download and
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`10
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`install a payment card applet when the NFC module is in communication with the payment
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`institution’s server:
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`https://support.apple.com/guide/security/secure-element-and-nfc-controller-
`seccb53a35f0/web
`
`
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`11
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`Case 6:21-cv-00916-ADA Document 18 Filed 12/02/21 Page 12 of 71
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`https://support.apple.com/en-us/HT204506
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`
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`
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`https://codeburst.io/how-does-apple-pay-actually-work-f52f7d9348b7
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`34.
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`The Accused Products further include a contactless interface that facilitates
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`communication between the e-purse applet in the smart card and the payment server over a wired
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`12
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`network. For example, on information and belief, the NFC module of the Apple iPhone X
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`includes a contactless NFC interface that facilitates communication between a payment card
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`applet and a payment server over a wired network, such as via a payment card reader at a POS
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`connected to a payment server via wired network3:
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`
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`https://www.ifixit.com/Teardown/iPhone+X+Teardown/98975
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`35.
`
`The Accused Products further personalize the e-purse applet (e.g. payment card
`
`applet within Apple Pay) by reading off data from the smart card (e.g. NFC Module or secure
`
`element) to generate in the smart card one or more operation keys that are subsequently used to
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`establish a secured channel between the e-purse applet and an e-purse security authentication
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`module (SAM) external to the smart card. For example, on information and belief, Apple Pay
`
`establishes operations keys that operate to establish secure connections between a stored
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`payment card and an authentication module at a server of the card issuer and/or merchant when
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`adding a given card to the device for the first time, and/or subsequently during transactions:
`
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`3 https://developer.apple.com/documentation/apple_pay_on_the_web/setting_up_your_server
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`13
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`https://support.apple.com/en-us/HT203027
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`36.
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`The Accused Products further practice a method wherein personalizing the e-
`
`purse applet (e.g. configuring the payment card applet within Apple Pay) comprises establishing
`
`an initial security channel between the smart card and the e-purse SAM to install and personalize
`
`the e-purse applet in the smart card. For example, on information and belief, Apple Pay operates
`
`to establish a security channel with at least an Apple server after a user enters details for a given
`
`payment card, and operates to install and personalize the applet in the smart card, such as to
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`install the card with the user’s personal information in the secure element:
`
`
`
`https://support.apple.com/guide/security/secure-element-and-nfc-controller-seccb53a35f0/web
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`14
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`
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`https://support.apple.com/en-us/HT203027
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`37.
`
`The Accused Products create a security channel on top of the initial security
`
`channel to protect subsequent operations of the smart card within the e-purse SAM, wherein any
`
`subsequent operation of the emulator is conducted over the security channel via the e-purse
`
`applet. For example, on information and belief, once a payment card applet is installed, operation
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`of the emulator is conducted via operation of the e-purse applet using the security key installed
`
`during the personalization process.
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`15
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`https://support.apple.com/guide/security/secure-element-and-nfc-controller-seccb53a35f0/web
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`
`
`
`
`https://support.apple.com/en-us/HT203027
`
`38.
`
`39.
`
`Apple has had knowledge and notice of the ‘218 Patent at least as of August 2016.
`
`Apple has had knowledge of how its products infringe the ’218 Patent since at
`
`least September 7, 2021. Despite that knowledge, Apple continues to infringe the ’218 Patent
`
`both directly and indirectly.
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`16
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`40.
`
`Apple has indirectly infringed and continues to indirectly infringe one or more
`
`claims of the ’218 Patent, as provided by 35 U.S.C. § 271(b), by inducing infringement by
`
`others, such as Apple’s customers and end-users, in this District and elsewhere in the United
`
`States. For example, Apple’s customers and end-users directly infringe, either literally or under
`
`the doctrine of equivalents, through their use of the inventions claimed in the ’218 Patent. Apple
`
`induces this direct infringement through its affirmative acts of manufacturing, selling,
`
`distributing, and/or otherwise making available the Accused Products, and providing
`
`instructions, documentation, and other information to customers and end-users suggesting that
`
`they use the Accused Products in an infringing manner, including technical support, marketing,
`
`product manuals, advertisements, and online documentation. Because of Apple’s inducement,
`
`Apple’s customers and end-users use Accused Products in a way Apple intends and directly
`
`infringe the ’218 Patent. Apple performs these affirmative acts with knowledge of the ’218
`
`Patent and with the intent, or willful blindness, that the induced acts directly infringe the ’218
`
`Patent.
`
`41.
`
`Apple has indirectly infringed and continues to indirectly infringe one or more
`
`claims of the ’218 Patent, as provided by 35 U.S.C. § 271(c), by contributing to direct
`
`infringement by others, such as customers and end-users, in this District and elsewhere in the
`
`United States. Apple’s affirmative acts of selling and offering to sell the Accused Products in
`
`this District and elsewhere in the United States and causing the Accused Products to be
`
`manufactured, used, sold and offered for sale contributes to others’ use and manufacture of the
`
`Accused Products such that the ’218 Patent is directly infringed by others. The accused
`
`components within the Accused Products are material to the invention of the ’218 Patent, are not
`
`staple articles or commodities of commerce, have no substantial non-infringing uses, and are
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`Case 6:21-cv-00916-ADA Document 18 Filed 12/02/21 Page 18 of 71
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`known by Apple to be especially made or adapted for use in the infringement of the ’218 Patent.
`
`Apple performs these affirmative acts with knowledge of the ’218 Patent and with intent, or
`
`willful blindness, that they cause the direct infringement of the ’218 Patent.
`
`42.
`
`Because of Apple’s direct and indirect infringement of the ’218 Patent, RFCyber
`
`has suffered, and will continue to suffer, damages in an amount to be proved at trial.
`
`43.
`
`Because of Apple’s direct and indirect infringement of the ’218 Patent, RFCyber
`
`has suffered, and will continue to suffer, irreparable harm for which there is no adequate remedy
`
`at law, unless Apple’s infringement is enjoined by this Court.
`
`COUNT II
`(Infringement of the ’855 Patent)
`
`44.
`
`Paragraphs 1 through 25 are incorporated herein by reference as if fully set forth
`
`in their entireties.
`
`45.
`
`RFCyber has not licensed or otherwise authorized Apple to make, use, offer for
`
`sale, sell, or import any products that embody the inventions of the ’855 Patent.
`
`46.
`
`Apple infringes, contributes to the infringement of, and/or induces infringement
`
`of the ’855 Patent by making, using, selling, offering for sale, distributing, exporting from,
`
`and/or importing into the United States products and/or methods covered by one or more claims
`
`of the ’855 Patent, including, but not limited to, at least the Accused Products.
`
`47.
`
`Apple has directly infringed and continues to directly infringe the ’855 Patent,
`
`either literally or under the doctrine of equivalents, without authority and in violation of 35
`
`U.S.C. § 271, by making, using, offering to sell, selling and/or importing into the United States
`
`products that satisfy each and every limitation of one or more claims of the ’855 Patent. Upon
`
`information and belief, these products include the Accused Products that practice the methods
`
`and systems covered by the ’855 Patent, including, for example, card emulation and NFC
`
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`Case 6:21-cv-00916-ADA Document 18 Filed 12/02/21 Page 19 of 71
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`payment functionality implemented by Apple Pay running on an IOS device. For example, these
`
`products infringe at least claim 1 of the ’855 Patent.
`
`48.
`
`For example, Apple has and continues to directly infringe at least claim 1 of the
`
`‘855 Patent by making, using, offering to sell, selling and/or importing into the United States
`
`products that practice a method for funding an e-purse, the method comprising receiving a PIN
`
`from a user of a portable device, wherein the portable device is a near field communication
`
`(NFC) enabled device that includes a card module; initiating a request from a midlet embedded
`
`in the portable device after the PIN is verified, wherein the midlet sends the request to an e-purse
`
`applet; causing the e-purse applet to compose a response to the request; sending the response by
`
`the e-purse applet over a wireless network to a server administrating the e-purse, the server
`
`configured to verify the response against an account in a financial institution across a network, a
`
`fund transfer request is initiated by the server to the financial institution when the response is
`
`successfully verified; receiving commands from the server in responding to the fund transfer
`
`request; and causing an emulator in the portable device to update a transaction log after an
`
`authenticity of the commands is verified by the e-purse applet wherein the e-purse in the portable
`
`device has been personalized by operations including: establishing an initial security channel
`
`between the card module and an e-purse security authentication module (SAM) external to the
`
`card module to install and personalize the e-purse applet in the card module, and creating a
`
`security channel on top of the initial security channel to protect subsequent operations of the card
`
`module with the e-purse SAM, wherein any subsequent transactions with the e-purse are
`
`conducted over the security channel.
`
`49.
`
`The Accused Products practice a method of receiving a PIN from a user of a
`
`portable device, wherein the portable device is a near field communication (NFC) enabled device
`
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`Case 6:21-cv-00916-ADA Document 18 Filed 12/02/21 Page 20 of 71
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`that includes a card module. For example, on information and belief, the Apple iPhone X
`
`includes a card module, such as a NXP 80V18 PN80V NFC Controller, and requires a PIN to
`
`unlock, and further requires a PIN to carry out a transaction via NFC.4
`
`50.
`
`The Accused Products practice a method of initiating a request from a midlet
`
`embedded in the portable device after the PIN is verified, wherein the midlet sends the request to
`
`an e-purse applet. For example, on information and belief, the Apple iPhone X practices a
`
`method of initiating a request from Apple Pay after the PIN, such as a passcode, is verified,
`
`where Apple Pay sends a request to a payment card applet.
`
`https://support.apple.com/en-us/HT203027
`
`https://support.apple.com/en-us/HT203027
`
`51.
`
`The Accused Products practice a method of causing the e-purse applet to compose
`
`a response to the request. For example, on information and belief, the payment card applet
`
`composes a response including the transaction, user, and/or device information, such as one or
`
`more operations keys, device account numbers, tokenized card information, and/or cryptograms.
`
`
`4 See https://support.apple.com/en-us/HT203027
`
`20
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`Case 6:21-cv-00916-ADA Document 18 Filed 12/02/21 Page 21 of 71
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`https://support.apple.com/en-us/HT203027
`
`52.
`
`The Accused Products practice a method of sending the response by the e-purse
`
`applet over a wireless network to a server administrating the e-purse, the server configured to
`
`verify the response against an account in a financial institution across a network, a fund transfer
`
`request is initiated by the server to the financial institution when the response is successfully
`
`verified. For example, on information and belief, the Apple iPhone X performs a method of
`
`sending the response by a payment card applet to a payment server and/or gateway server over a
`
`wireless network, such a cellular network, Wireless WAN, Wireless MAN, Wireless PAN,
`
`Wireless LAN, and/or a Global Area Network. On information and belief, the payment and/or
`
`gateway server is configured to respond to the request, such as a request for funds to complete a
`
`transaction, when the response is verified.
`
`
`
`
`
`21
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`Case 6:21-cv-00916-ADA Document 18 Filed 12/02/21 Page 22 of 71
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`https://support.apple.com/en-us/HT203027.
`
`53.
`
`The Accused Products practice receiving commands from the server in
`
`responding to the fund transfer request. For example, on information and belief, the Apple
`
`iPhone X receives commands in response to a fund transfer request, such as to communicate
`
`transaction information to a card reader.
`
`54.
`
`The Accused Products further practice causing an emulator in the portable device
`
`to update a transaction log after an authenticity of the commands is verified by the e-purse applet
`
`wherein the e-purse in the portable device has been personalized by operations including. For
`
`example, on information and belief, an emulator within the Apple iPhone X updates an Apple
`
`Pay transaction log once commands have been authenticated by an installed and configured
`
`payment card applet, such as based on operating keys, device account number, tokenized card
`
`information, and/or cryptograms.
`
`https://support.apple.com/guide/iphone/manage-cards-and-activity-iph7b666943a/ios
`
`
`
`
`
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`Case 6:21-cv-00916-ADA Document 18 Filed 12/02/21 Page 23 of 71
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`55.
`
`The Accused Products further practice establishing an initial security channel
`
`between the card module and an e-purse security authentication module (SAM) external to the
`
`card module to install and personalize the e-purse applet in the card module. For example, on
`
`information and belief, the Apple iPhone X personalizes payment card applets by establishing an
`
`initial security channel with a security authentication module located on or behind the card-
`
`issuer’s payment server, to install and configure the payment cards with the user’s personal
`
`information.
`
`https://support.apple.com/en-us/HT203027
`
`56.
`
`The Accused Products further practice a method of creating a security channel on
`
`top of the initial security channel to protect subsequent operations of the card module with the e-
`
`purse SAM, wherein any subsequent transactions with the e-purse are conducted over the
`
`
`
`23
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`Case 6:21-cv-00916-ADA Document 18 Filed 12/02/21 Page 24 of 71
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`security channel. For example, on information and belief, an instance of Apple Pay operating on
`
`the Apple iPhone X operates to establish operating keys, device account numbers, tokenized card
`
`information, and/or cryptograms with which subsequent communications (e.g. subsequent
`
`transactions with a personalized card applet) are protected.
`
`
`
`https://support.apple.com/guide/securi