Case 7:24-cv-00279-ADA Document 1 Filed 11/04/24 Page 1 of 19
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`MIDLAND/ODESSA DIVISION
`
`
`CardWare Inc.,
`
`Plaintiff,
`
`v.
`Apple Inc.,
`
`Defendant.
`
`
`
` CIVIL ACTION NO. 7:24-cv-00279
` JURY TRIAL DEMANDED
`
`
`§
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`CARDWARE INC.’ S COMPLAINT FOR PATENT INFRINGEMENT
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`CardWare Inc. (“Plaintiff” or “CardWare”), by and through its undersigned counsel, brings
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`this complaint against Apple Inc. (“Apple” or “Defendant”) to hold Apple accountable for its
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`infringement of CardWare’s patented technology. CardWare alleges as follows:
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`INTRODUCTION
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`1.
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`Plaintiff CardWare is a leading innovator in the payment ecosystem and has
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`developed groundbreaking patented technology that provides enhanced security for payment
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`transactions, both in-store using Near-field Communication Technology (“NFC”) and online, to
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`securely communicate limited-use payment information with the merchant.
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`2.
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`Among other functionalities, CardWare’s patented solution facilitates secure
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`payment transactions by using a limited-use payment information instead of the static, issued card
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`details that leave card details vulnerable to interception by fraudsters. CardWare’s technology has
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`been so innovative that it has resulted in a multitude of patents, including U.S. Patent Nos.
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`10,339,520 (“the ’520 Patent”); 10,628,820 (“the ’820 Patent”); 10,810,579 (“the ’579 Patent”);
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`1
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`Case 7:24-cv-00279-ADA Document 1 Filed 11/04/24 Page 2 of 19
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`11,176,538 (“the ’538 Patent”); 11,328,286 (“the ’286 Patent”); and 11,620,634 (“the ’634 Patent”)
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`(collectively, the “Asserted Patents”).
`
`3.
`
`Apple is a leading manufacturer of electronic and mobile devices, including
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`smartphones and smartwatches. Apple Wallet and Apple Pay are integrated into all of Apple’s
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`electronic devices, including smartphones, smartwatches, desktop and laptop computers, tablets,
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`and spatial computers, making it easy for users to securely complete online transactions. Apple’s
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`smartphones and smartwatches also offer in-store, tap-to-pay functionality that relies on NFC
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`technology incorporated into such devices,1 enabling them to wirelessly communicate with nearby
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`NFC-enabled payment terminals for secure, quick, and contactless payments.
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`4.
`
`The fundamental security technology that underlies the success of Apple’s Apple
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`Pay and Apple Wallet offerings was developed by CardWare and thus infringes the Asserted
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`Patents. This infringement has been willful, at least because Apple has been aware of CardWare’s
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`technology and related patents since a 2017 meeting with David Wyatt, and because CardWare put
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`Apple on notice of its infringement on or around October 10, 2023.
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`5.
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`With this action, CardWare seeks to recover damages and a reasonable royalty from
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`Apple for its use of CardWare’s patented technology.
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`JURISDICTION AND VENUE
`
`6.
`
`This Court has subject matter jurisdiction over this action under 28 U.S.C. § 1331
`
`because Plaintiff alleges violations of federal law, namely, the Patent Act U.S. Patent Act, 35
`
`U.S.C. §§ 1 et seq.
`
`7.
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`This District has general and specific personal jurisdiction over Defendant because,
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`directly or through intermediaries, Defendant has committed acts within this District giving rise to
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`                                                            
`1 PayPal, Tap to Pay, PayPal Money Hub, https://www.paypal.com/us/money-hub/article/tap-to-pay (last visited Oct.
`21, 2024).
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`2
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`Case 7:24-cv-00279-ADA Document 1 Filed 11/04/24 Page 3 of 19
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`this action; is present in and transacts and conducts business in this District and the State of Texas;
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`and transacts and conducts business with residents of this District and the State of Texas. This
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`Court further has personal jurisdiction over Defendant pursuant to Tex. Civ. Prac. & Rem. Code §
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`17.041 et seq.
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`8.
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`Defendant has infringed and continues to infringe the Asserted Patents, directly and
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`through intermediaries, within this District and the State of Texas by making, using, selling,
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`offering for sale, marketing, designing, and/or importing in or into this District and elsewhere in
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`the State of Texas, its products and services covered by claims in the Asserted Patents, including
`
`without limitation products that, when made or used, practice the claimed methods of the Asserted
`
`Patents. Defendant’s infringement, as alleged above and further herein has been, at least since the
`
`filing of this action, willful and in disregard of the Asserted Patents, without any reasonable basis
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`for believing that it had a right to engage in the infringing conduct.
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`9.
`
`CardWare’s causes of action arise, at least in part, from Defendant’s contacts with
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`and activities in and/or directed at this District and the State of Texas.
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`10.
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`Venue is proper in this Court under 28 U.S.C. §§ 1391 and 1400(b). Apple
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`maintains regular and established places of business in this District and has committed acts of
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`infringement in this District.
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`PARTIES
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`11.
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`Plaintiff CardWare Inc. is a Texas corporation with its principal place of business
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`located at 111 Congress Ave., Suite 500, Austin, Texas.2
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`12.
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`On information and belief, Defendant Apple Inc. is a California corporation with
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`one or more regular established places of business in this District, at least at 12545 Riata Vista
`
`                                                            
`2 CardWare, Inc., “Contact Us,” https://www.cardware.com/contact (last visited Oct. 21, 2024).
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` 
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`3
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`Case 7:24-cv-00279-ADA Document 1 Filed 11/04/24 Page 4 of 19
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`Circle, Austin, Texas 78727; 12801 Delcour Drive, Austin, Texas 78727; 6800 W Parmer Lane,
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`Austin, Texas 78729, and 3121 Palm Way, Austin, Texas 78758. Apple may be served with process
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`through its registered agent, the CT Corp System, at 1999 Bryan St., Ste. 900 Dallas, Texas 75201.
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`Apple has been registered to do business in the State of Texas since at least May 16, 1980,3 and
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`has maintained offices in the States of Texas since at least 1992.4 As of March 2024, Apple had
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`approximately 10,000 employees in the Austin area, making Apple the fourth-largest employer in
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`the area and making Austin Apple’s second-largest hub outside of California.5
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`RELEVANT FACTS
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`CARDWARE’S INNOVATIVE BUSINESS
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`CardWare is an American firm founded by Mr. David Wyatt, a seasoned engineer
`
`I.
`
`13.
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`and inventor with a track record of over 100 U.S. patents. The company develops secure systems
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`for electronic payments including dynamic tokenization systems that enhance the security of
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`mobile and electronic payments.
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`14.
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`The company was originally founded in California in December 2011 but was later
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`moved to Texas to be closer to Mr. Wyatt’s personal residence in Austin and to jumpstart
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`CardWare’s growth. Mr. Wyatt is the architect and driving force behind CardWare’s payment
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`technology. Mr. Wyatt’s expertise spans several technological areas, including the development
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`of software application programing interfaces (“APIs”) that integrate with payment systems and
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`                                                            
`3 See https://mycpa.cpa.state.tx.us/coa/search.do (search for “Apple Inc.” under “Entity Name”) (last visited Oct. 21,
`2024).
`4 Aquila Commercial, “Apple's Austin Offices: History, Details & Predictions,”
`https://aquilacommercial.com/learning-center/apple-austin-offices-headquarters-history-details-predictions/ (last
`visited Oct. 21, 2024).
`5 Patricia Rogers, “Tech Employers in the Austin area,” Austin Business Journal (Mar. 19, 2024, 10:50 a.m. CDT),
`https://www.bizjournals.com/austin/subscriber-only/2024/03/08/tech-employers-in-the-austin-area.html; Cody
`Baird, “Apple plans multimillion-dollar renovation at longtime North Austin campus,” Austin Business Journal
`(Apr. 3, 2024), https://www.bizjournals.com/austin/news/2024/04/03/apple-to-build-lab-space-older-w-parmer-ln-
`campus.html.
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`4
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`the design of physical cards for secure transactions. His approach centers on creating highly
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`secure, dynamic, and user-friendly solutions for modern payments, addressing consumer concerns
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`about fraud and security. His inventive contributions have helped CardWare provide
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`groundbreaking innovations in the mobile payments market.
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`15.
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`CardWare’s innovations include its SmartTokenization™ technology. This
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`technology enhances payment security by enabling payment cards with customizable features,
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`such as generating one-time-use card information (replacing the issued card number and card
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`verification value (“CVV”)), setting custom expiration dates, or restricting usage to specific
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`merchants, geographic locations, or payment amounts. These features allow for tailored limits on
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`transactions, adding an extra layer of protection for consumers. The company’s innovation
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`addresses critical vulnerabilities in traditional payment methods—for in-store, card-present
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`(“CP”), and online, card-not-present (“CNP”), transactions—which have been historically
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`susceptible to theft through skimming and phishing. CardWare has also developed and patented a
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`numberless card that secures card details during in-store transactions preventing theft and fraud as
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`compared to traditional credit cards that visually provide card details not only to the merchant but
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`to anyone within reading distance of a presented card.
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`16.
`
`Since moving to Texas, CardWare has hired new employees, presented at and
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`sponsored payment industry events, and continued to innovate and file new patents. For example,
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`in September 2023, CardWare launched version 2.0 of its CardWare SDK,6 which enables
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`developers to leverage CardWare’s secure payment technology in their own products. In February
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`2024, CardWare launched the Card+ App, through which users can manage and customize their
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`wallet of payment cards, and conveniently perform more-secure online payments. In addition,
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`                                                            
`6 SDK stands for “Software Development Kit.”
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`5
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`Case 7:24-cv-00279-ADA Document 1 Filed 11/04/24 Page 6 of 19
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`CardWare offers physical smart cards for use with the CardWareTM SDK, in traditional plastic
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`(Card+ Plastc™), recycled plastic (Card+ BioPlastc™), and metal (Card+ Metal™) forms.
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`17.
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`Overall, CardWare’s
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`technology has significantly advanced
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`the market’s
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`understanding of payment systems and enhanced security and convenience for mobile transactions.
`
`II.
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`18.
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`CARDWARE’S PATENTS
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`CardWare is the exclusive owner by assignment of all rights, title, and interest in
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`the Asserted Patents. Among other benefits, each of the Asserted Patents enhances payment
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`security, and reduces if not eliminates the risk of fraud, for both in-store and online transactions.
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`19.
`
`The ’520 Patent, entitled “MULTI-FUNCTIONAL CREDIT CARD TYPE
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`PORTABLE ELECTRONIC DEVICE” was duly and legally issued on July 2, 2019. A true and
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`correct copy of the ’520 Patent is attached hereto as Exhibit A.
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`20.
`
`The ’520 Patent has been in full force and effect since its issuance. CardWare is
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`the exclusive owner by assignment of all rights, title, and interest in the ’520 Patent, including the
`
`right to bring this suit for injunctive relief and damages, and including the right to sue and recover
`
`all past, present, and future damages for infringement of the ’520 Patent.
`
`21.
`
`The ’820 Patent, entitled “MULTI-FUNCTION ELECTRONIC PAYMENT
`
`DEVICE” was duly and legally issued on April 21, 2020. A true and correct copy of the ’820
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`Patent is attached hereto as Exhibit B.
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`22.
`
`The ’820 Patent has been in full force and effect since its issuance. CardWare is
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`the exclusive owner by assignment of all rights, title, and interest in the ’820 Patent, including the
`
`right to bring this suit for injunctive relief and damages, and including the right to sue and recover
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`all past, present, and future damages for infringement of the ’820 Patent.
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`23.
`
`The ’579 Patent, entitled “SMART TOKENIZING PAYMENT CARD AND
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`DEVICE AND TRANSACTION PROCESSING THEREOF, SYSTEM AND METHOD” was
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`6
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`Case 7:24-cv-00279-ADA Document 1 Filed 11/04/24 Page 7 of 19
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`duly and legally issued on October 20, 2020. A true and correct copy of the ’579 Patent is attached
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`hereto as Exhibit C.
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`24.
`
`The ’579 Patent has been in full force and effect since its issuance. CardWare is
`
`the exclusive owner by assignment of all rights, title, and interest in the ’579 Patent, including the
`
`right to bring this suit for injunctive relief and damages, and including the right to sue and recover
`
`all past, present, and future damages for infringement of the ’579 Patent.
`
`25.
`
`The
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`’538 Patent, entitled “MULTI-FUNCTION SMART TOKENIZING
`
`ELECTRONIC PAYMENT DEVICE” was duly and legally issued on November 16, 2021. A true
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`and correct copy of the ’538 Patent is attached hereto as Exhibit D.
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`26.
`
`The ’538 Patent has been in full force and effect since its issuance. CardWare is
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`the exclusive owner by assignment of all rights, title, and interest in the ’538 Patent, including the
`
`right to bring this suit for injunctive relief and damages, and including the right to sue and recover
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`all past, present, and future damages for infringement of the ’538 Patent.
`
`27.
`
`The ’286 Patent, entitled “MULTI-FUNCTION ELECTRONIC PAYMENT CARD
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`AND DEVICE SYSTEM” was duly and legally issued on May 10, 2022. A true and correct copy
`
`of the ’286 Patent is attached hereto as Exhibit E.
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`28.
`
`The ’286 Patent has been in full force and effect since its issuance. CardWare is
`
`the exclusive owner by assignment of all rights, title, and interest in the ’286 Patent, including the
`
`right to bring this suit for injunctive relief and damages, and including the right to sue and recover
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`all past, present, and future damages for infringement of the ’286 Patent.
`
`29.
`
`The
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`’634 Patent, entitled “MULTI-FUNCTION SMART TOKENIZING
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`ELECTRONIC PAYMENT DEVICE” was duly and legally issued on April 4, 2023. A true and
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`correct copy of the ’634 Patent is attached hereto as Exhibit F.
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`7
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`30.
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`CardWare is the exclusive owner by assignment of all rights, title, and interest in
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`the ’634 Patent, including the right to bring this suit for injunctive relief and damages, and
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`including the right to sue and recover all past, present, and future damages for infringement of the
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`’634 Patent.
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`III. APPLE’S INFRINGEMENT OF CARDWARE’S PATENTS
`
`31.
`
`32.
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`CardWare restates and realleges the preceding paragraphs of this Complaint.
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`Apple manufactures, uses, tests, markets, offers for sale, sells, and/or imports in or
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`into the United States payment cards and electronic devices that are enabled with Apple Pay and/or
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`Apple Wallet for making secure electronic payments.7
`
`33.
`
`Hereafter, the term “Accused Products” refers to all products manufactured, used,
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`tested, imported, or sold by or on behalf of Apple that embody the systems and devices claimed
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`by the Asserted Patents and all processes employed by Apple that practice the methods claimed by
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`the Asserted Patents, consisting of the Apple Card payment card, the Apple Cash digital payment
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`card, Apple Pay, Apple Wallet, and Apple-branded electronic devices that support Apple Pay,
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`and/or Apple Wallet, including by way of example and without limitation, Apple iPhone
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`smartphones, Apple iPad tablets, Apple Watch smartwatches, Apple Mac laptop and desktop
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`computers, and the Apple Vision Pro spatial computer.
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`34.
`
`On information and belief, Apple has pre-loaded Apple-branded electronic devices
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`with Apple Pay, Apple Wallet, Apple Card, and Apple Cash-related software prior to offering them
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`for sale to customers, thus allowing their customers to utilize the infringing functionalities of Apple
`
`Pay and/or Apple Wallet, with or without an accompanying Apple Card payment card or Apple
`
`                                                            
`7 See, e.g., “Apple Pay,” Apple, https://www.apple.com/apple-pay/ (last visited Oct. 21, 2024); “Wallet,” Apple,
`https://www.apple.com/wallet/ (last visited Oct. 21, 2024); https://card.apple.com/; “Apple Cash,” Apple,
`https://www.apple.com/apple-cash/ (last visited Oct. 21, 2024); “Devices compatible with Apple Pay,” Apple
`https://support.apple.com/en-us/102896 (last visited Oct. 21, 2024).
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`8
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`Cash digital payment card, immediately after purchase. On information and belief, Apple further
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`pushed Apple Pay, Apple Wallet, Apple Card, and Apple Cash-related software updates to
`
`purchased Apple-branded electronic devices, thus allowing their customers utilize the infringing
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`functionalities of Apple Pay and/or Apple Wallet, with or without an accompanying Apple Card
`
`payment card or Apple Cash digital payment card, to the extent that such functionalities were not
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`available at their time of purchase.8
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`CAUSES OF ACTION
`
`IV.
`
`35.
`
`36.
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`FIRST CLAIM — INFRINGEMENT OF THE ’520 PATENT
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`Plaintiff restates and realleges the preceding paragraphs of this Complaint.
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`Apple has been on notice of the ’520 Patent and a specific factual basis for its
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`infringement of the ’520 Patent since at least on or around October 10, 2023. Further, Apple has
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`been aware of CardWare’s technology and related patents since at least 2017.
`
`37.
`
`Apple has, under 35 U.S.C. §271(a), directly infringed, literally and/or under the
`
`doctrine of equivalents, and continues to directly infringe, one or more claims, including without
`
`limitation at least claim 10 of the ’520 Patent, by making, using, testing, selling, leasing, licensing,
`
`offering for sale, and/or importing into the United States the Accused Products. An exemplary
`
`claim chart concerning one way in which Defendant’s Accused Products infringe claim 10 of the
`
`’520 Patent is attached hereto as Exhibit G.
`
`38.
`
`Apple has also indirectly infringed, and continues to indirectly infringe, the ’520
`
`Patent under 35 U.S.C. §§ 271(b) and (c).
`
`                                                            
`8 For example, the Apple Cash Virtual Card Number was not available until the iOS 17.4 release in March 2024.
`Chance Miller, “How to find your new Apple Cash card number in iOS 17.4,” 9 To 5 Mac (Mar. 6, 2024 11:08 am
`PT), https://9to5mac.com/2024/03/06/apple-cash-virtual-card-number-feature/.
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`9
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`39.
`
`Apple has willfully, knowingly, and intentionally actively aided, abetted, and
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`induced others to directly infringe at least claim 10 of the ’520 Patent under 35 U.S.C. §§ 271(b)
`
`(such as its customers in this District and throughout the United States), and continues to do so,
`
`by, for example, selling, offering for sale, and encouraging its customers in this District and
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`throughout the United States to use its Accused Products in an infringing manner by providing
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`information and technical support, including in promotional materials, product manuals,
`
`brochures, videos, demonstrations, and website materials. See Exhibit G.
`
`40.
`
`Apple has contributed to, and continues to contribute to, the direct infringement of
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`at least claim 10 of the ’520 Patent under 35 U.S.C. § 271(c) by, for example, supplying, with
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`knowledge of the ’520 Patent, a material part of a claimed combination, where such material part
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`is not a staple article of commerce and is incapable of substantial noninfringing use. For example,
`
`Apple Pay is a material part of the claimed combination and specifically designed and intended to
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`facilitate storing and generating payment information on an electronic device, as claimed. There
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`are no substantial non-infringing uses of Apple Pay other than as claimed in the ’520 patent.
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`41.
`
`Apple has contributed to, and continues to contribute to, its customers’ and/or other
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`third parties’ infringement because, with knowledge of the ’520 Patent, Defendant supplied, and
`
`continues to supply, the technology that allows its customers to infringe the ’520 Patent. See
`
`Exhibit G.
`
`42.
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`Apple’s infringement of the ’520 Patent has been willful and exceptional in view
`
`of the above, as well as its failure to take any action, even after being put on notice, to stop its
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`infringement, or inducement of, or contribution to, infringement by others.
`
`V.
`
`43.
`
`SECOND CLAIM — INFRINGEMENT OF THE ’820 PATENT
`
`Plaintiff restates and realleges the preceding paragraphs of this Complaint.
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`Case 7:24-cv-00279-ADA Document 1 Filed 11/04/24 Page 11 of 19
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`44.
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`Apple has been on notice of the ’820 Patent and a specific factual basis for its
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`infringement of the ’820 Patent since at least on or around October 10, 2023. Further, Apple has
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`been aware of CardWare’s technology and related patents since at least 2017.
`
`45.
`
`Apple has, under 35 U.S.C. §271(a), directly infringed, literally and/or under the
`
`doctrine of equivalents, and continues to directly infringe, one or more claims, including without
`
`limitation at least claim 11 of the ’820 Patent, by making, using, testing, selling, leasing, licensing,
`
`offering for sale, and/or importing into the United States the Accused Products. An exemplary
`
`claim chart concerning one way in which Defendant’s Accused Products infringe claim 11 of the
`
`’820 Patent is attached hereto as Exhibit H.
`
`46.
`
`Apple has also indirectly infringed, and continues to indirectly infringe, the ’820
`
`Patent under 35 U.S.C. §§ 271(b) and (c).
`
`47.
`
`Apple has willfully, knowingly, and intentionally actively aided, abetted, and
`
`induced others to directly infringe at least claim 11 of the ’820 Patent under 35 U.S.C. §§ 271(b)
`
`(such as its customers in this District an throughout the United States), and continues to do so, by,
`
`for example, selling, offering for sale, and encouraging its customers in this District and throughout
`
`the United States to use its Accused Products in an infringing manner by providing information
`
`and technical support, including in promotional materials, product manuals, brochures, videos,
`
`demonstrations, and website materials. See Exhibit H.
`
`48.
`
`Apple has contributed to, and continues to contribute to, the direct infringement of
`
`at least claim 11 of the ’820 Patent under 35 U.S.C. § 271(c) by, for example, supplying, with
`
`knowledge of the ’820 Patent, a material part of a claimed combination, where such material part
`
`is not a staple article of commerce and is incapable of substantial noninfringing use. For example,
`
`Apple Pay is a material part of the claimed combination and specifically intended to generate and
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`11
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`convey payment information to be used in place of a card issuer payment information, as claimed.
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`There are no substantial non-infringing uses of Apple Pay other than as claimed in the ’820 Patent.
`
`49.
`
`Apple has contributed to, and continues to contribute to, its customers’ and/or other
`
`third parties’ infringement because, with knowledge of the ’820 Patent, Defendant supplied, and
`
`continues to supply, the technology that allows its customers to infringe the ’820 Patent. See
`
`Exhibit H.
`
`50.
`
`Apple’s infringement of the ’820 Patent has been willful and exceptional in view
`
`of the above, as well as its failure to take any action, even after being put on notice, to stop its
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`infringement, or inducement of, or contribution to, infringement by others.
`
`VI.
`
`51.
`
`52.
`
`THIRD CLAIM — INFRINGEMENT OF THE ’579 PATENT
`
`Plaintiff restates and realleges the preceding paragraphs of this Complaint.
`
`Apple has been on notice of the ’579 Patent and a specific factual basis for its
`
`infringement of the ’579 patent since at least on or around October 10, 2023. Further Apple has
`
`been aware of CardWare’s technology and related patents since at least 2017.
`
`53.
`
`Apple has, under 35 U.S.C. §271(a), directly infringed, literally and/or under the
`
`doctrine of equivalents, and continues to directly infringe, one or more claims, including without
`
`limitation at least claim 19 of the ’579 Patent, by making, using, testing, selling, leasing, licensing,
`
`offering for sale, and/or importing into the United States the Accused Products. An exemplary
`
`claim chart concerning one way in which Defendant’s Accused Products infringe claim 19 of the
`
`’579 Patent is attached hereto as Exhibit I.
`
`54.
`
`Apple has also indirectly infringed, and continues to indirectly infringe, the ’579
`
`Patent under 35 U.S.C. §§ 271(b) and (c).
`
`55.
`
`Apple has willfully, knowingly, and intentionally actively aided, abetted, and
`
`induced others to directly infringe at least claim 19 of the ’579 Patent under 35 U.S.C. §§ 271(b)
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`12
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`Case 7:24-cv-00279-ADA Document 1 Filed 11/04/24 Page 13 of 19
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`(such as its customers in this District and throughout the United States), and continues to do so,
`
`by, for example, selling, offering for sale, and encouraging its customers in this District and
`
`throughout the United States to use its Accused Products in an infringing manner by providing
`
`information and technical support, including in promotional materials, product manuals,
`
`brochures, videos, demonstrations, and website materials. See Exhibit I.
`
`56.
`
`Apple has contributed to, and continues to contribute to, the direct infringement of
`
`at least claim 19 of the ’579 Patent under 35 U.S.C. § 271(c) by, for example, supplying, with
`
`knowledge of the ’579 Patent, a material part of a claimed combination, where such material part
`
`is not a staple article of commerce and is incapable of substantial noninfringing use. For example,
`
`Apple Pay is a material part of the claimed combination and specifically designed and intended to
`
`work on an electronic device with a processor and NFC interface, as claimed. There are no
`
`substantial non-infringing uses of Apple Pay other than as claimed in the ’579 Patent.
`
`57.
`
`Apple has contributed to, and continues to contribute to, its customers’ and/or other
`
`third parties’ infringement because, with knowledge of the ’579 Patent, Defendant supplied, and
`
`continues to supply, the technology that allows its customers to infringe the ’579 Patent. See
`
`Exhibit I.
`
`58.
`
`Apple’s infringement of the ’579 Patent has been willful and exceptional in view
`
`of the above, as well as its failure to take any action, even after being put on notice, to stop its
`
`infringement, or inducement of, or contribution to, infringement by others.
`
`VII. FOURTH CLAIM — INFRINGEMENT OF THE ’538 PATENT
`
`59.
`
`60.
`
`Plaintiff restates and realleges the preceding paragraphs of this Complaint.
`
`Apple has been on notice of the ’538 Patent and a specific factual basis for its
`
`infringement of the ’538 Patent since at least on or around October 10, 2023. Further, Apple has
`
`been aware of CardWare’s technology and related patents since at least 2017.
`
` 
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`Case 7:24-cv-00279-ADA Document 1 Filed 11/04/24 Page 14 of 19
`
`61.
`
`Apple has, under 35 U.S.C. §271(a), directly infringed, literally and/or under the
`
`doctrine of equivalents, and continues to directly infringe, one or more claims, including without
`
`limitation at least claim 19 of the ’538 Patent, by making, using, testing, selling, leasing, licensing,
`
`offering for sale, and/or importing into the United States the Accused Products. An exemplary
`
`claim chart concerning one way in which Defendant’s Accused Products infringe claim 19 of the
`
`’538 Patent is attached hereto as Exhibit J.
`
`62.
`
`Apple has also indirectly infringed, and continues to indirectly infringe, the ’538
`
`Patent under 35 U.S.C. §§ 271(b) and (c).
`
`63.
`
`Apple has willfully, knowingly, and intentionally actively aided, abetted, and
`
`induced others to directly infringe at least claim 19 of the ’538 Patent under 35 U.S.C. §§ 271(b)
`
`(such as its customers in this District and throughout the United States), and continues to do so,
`
`by, for example, selling, offering for sale, and encouraging its customers in this District and
`
`throughout the United States to use its Accused Products in an infringing manner by providing
`
`information and technical support, including in promotional materials, product manuals,
`
`brochures, videos, demonstrations, and website materials. See Exhibit J.
`
`64.
`
`Apple has contributed to, and continues to contribute to, the direct infringement of
`
`at least claim 19 of the ’538 Patent under 35 U.S.C. § 271(c) by, for example, supplying, with
`
`knowledge of the ’538 Patent, a material part of a claimed combination, where such material part
`
`is not a staple article of commerce and is incapable of substantial noninfringing use. For example,
`
`Apple Pay is a material part of the claimed combination and specifically designed and intended to
`
`provide for secure payment transactions, as claimed. There are no substantial non-infringing uses
`
`of Apple Pay other than as claimed in the ’538 Patent.
`
` 
`
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`Case 7:24-cv-00279-ADA Document 1 Filed 11/04/24 Page 15 of 19
`
`65.
`
`Apple has contributed to, and continues to contribute to, its customers’ and/or other
`
`third parties’ infringement because, with knowledge of the ’538 Patent, Defendant supplied, and
`
`continues to supply, the technology that allows its customers to infringe the ’538 Patent. See
`
`Exhibit J.
`
`66.
`
`Apple’s infringement of the ’538 Patent has been willful and exceptional in view
`
`of the above, as well as its failure to take any action, even after being put on notice, to stop its
`
`infringement, or inducement of, or contribution to, infringement by others.
`
`VIII. FIFTH CLAIM — INFRINGEMENT OF THE ’286 PATENT
`
`67.
`
`68.
`
`Plaintiff restates and realleges the preceding paragraphs of this Complaint.
`
`Apple has been on notice of the ’286 Patent and a specific factual basis for its
`
`infringement of the ’286 Patent since at least on or around October 10, 2023. Further, Apple has
`
`been aware of CardWare’s technology and related patents since at least 2017.
`
`69.
`
`Apple has, under 35 U.S.C. §271(a), directly infringed, literally and/or under the
`
`doctrine of equivalents, and continues to directly infringe, one or more claims, including without
`
`limitation at least claim 20 of the ’286 Patent, by making, using, testing, selling, leasing, licensing,
`
`offering for sale, and/or importing into the United States the Accused Products. An exemplary
`
`claim chart concerning one way in which Defendant’s Accused Products infringe claim 20 of the
`
`’286 Patent is attached hereto as Exhibit K.
`
`70.
`
`Apple has also indirectly infringed, and continues to indirectly infringe, the ’286
`
`Patent under 35 U.S.C. §§ 271(b) and (c).
`
`71.
`
`Apple has willfully, knowingly, and intentionally actively aided, abetted, and
`
`induced others to directly infringe at least claim 20 of the ’286 Patent under 35 U.S.C. §§ 271(b)
`
`(such as its customers in this District and throughout the United States), and continues to do so,
`
`by, for example, selling, offering or sale, and encouraging its customers in this District and
`
` 
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`Case 7:24-cv-00279-ADA Document 1 Filed 11/04/24 Page 16 of 19
`
`throughout the United States to use its Accused Products in an infringing manner by providing
`
`information and technical support, including in promotional materials, product manuals,
`
`brochures, videos, demonstrations, and website materials. See Exhibit K.
`
`72.
`
`Apple has contributed to, and continues to contribute to, the direct infringement of
`
`at least claim 20 of the ’286 Patent under 35 U.S.C. § 271(c) by, for example, supplying, with
`
`knowledge of the ’286 Patent, a material part of a claimed combination, where such material part
`
`is not a staple article of commerce and is incapable of substantial noninfringing use.
`
`73.
`
`Apple has contributed to, and continues to contribute to, its customers’ and/or other
`
`third parties’ infringement because, with knowledge of the ’286 Patent, Defendant supplied, and
`
`continues to supply, the technology that allows its customers to infringe the ’286 Patent. See
`
`Exhibit K. For example, Apple Pay is a material part of the claimed combination and s