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`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`
`Civil Action No._________
`
`
`
`JURY TRIAL DEMANDED
`
`
`
`SOVERAIN IP, LLC,
` Plaintiff,
`v.
`
`APPLE, INC.
`
` Defendant.
`
`
`
`
`COMPLAINT FOR PATENT INFRINGEMENT
`Plaintiff Soverain IP, LLC (“Soverain” or “Plaintiff”), by and through its attorneys,
`
`brings this action and makes the following allegations of patent infringement relating to U.S.
`
`Patent Nos.: 7,191,447 (“the ‘447 patent”) 8,935,706 (“the ’706 patent”); 5,708,780 (“the ‘780
`
`patent”); and 6,212,634 (“the ‘634 patent”) (collectively, the “patents-in-suit” or the “Soverain
`
`Patents”). Defendant Apple, Inc. (“Apple” or “Defendant”) infringes each of the patents-in-suit
`
`in violation of the patent laws of the United States of America, 35 U.S.C. § 1 et seq.
`
`INTRODUCTION
`This case arises from Apple’s infringement of Soverain’s data extraction and
`
`1.
`
`network management patent portfolio. Soverain is the owner by assignment and exclusive
`licensee to twenty-four issued United States patents, multiple pending patent applications,1 and
`numerous foreign patent assets.2
`2.
`The patents asserted in this case arose from the innovative work of Open Market,
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`Inc. (“Open Market”), an innovative tech firm that in 1993 developed groundbreaking
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`technologies for the then-nascent Internet. Open Market was founded at a time when conducting
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`commercial transactions over the Internet was in its beginning stages. Previous uses of the
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`Internet had largely been limited to academic research and military defense work.
`
`
`1 See U.S. Patent App. Nos. 11/300,245; 11/971,361; 12/109,443; 14/047,547.
`2 See e.g., JP 4485548, JP 3762882B2, EP 0803105B1, DE 69633564T2.
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`3.
`
`Professor David K. Gifford of the Massachusetts Institute of Technology, co-
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`founder of Open Market, and inventor of fourteen of the Soverain patents, recognized the
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`potential of enabling secure transactions over computer networks. Professor Gifford and other
`
`Open Market employees raced against other companies to bring one of the first secure
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`transaction management systems to market. With the technology developed, Open Market filed
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`for the patents that would comprise the two Soverain Patent Portfolios.
`4.
`
`Open Market’s groundbreaking inventions led to the issuance of patents that
`
`comprise two technology portfolios: (1) the virtual shopping cart portfolio and (2) the network
`
`management and data extraction portfolio. The below diagram shows Soverain’s patents,
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`pending patent applications, and the Soverain patents Apple infringes.
`
`SOVERAIN’S LANDMARK DATA EXTRACTION AND NETWORK TECHNOLOGIES
`5.
`Open Market’s flagship Internet transaction product, the Open Market Transact
`
`system (“Transact”) offered a full suite of software technologies, including content management,
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`authorization protocols, and customer relationship management. Transact contained
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`functionality for separating the management of transactions from the management of content,
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`allowing companies to securely and centrally manage transactions using content located on
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`multiple distributed Web servers.
`In 1995, Open Market began commercial shipment of Transact.3 Transact was
`6.
`quickly embraced by the market, and its early customers included: Novell,4 Sprint,5 Disney,6
`AT&T,7 and Hewlett-Packard.8 In March of 1996, the New York Times described Open
`Market’s transaction management products as being adopted by Time Warner, Banc One, and
`
`First Union.
`Open Market will be competing with Netscape's I-Store and Merchant Server of
`Microsoft. Besides Time Warner, Open Market has signed several big customers
`including Banc One, First Union Bank, Hewlett-Packard, Digital Equipment and
`Bloomberg, the financial publisher. Time Warner has been offering electronic
`versions of Time, People, Sports Illustrated, Money and other publications free on
`its Pathfinder Web site.9
`7.
`By the late 1990s, Transact was an established market leader in e-commerce
`
`3 Ellis Booker, Internet Security Boosted, COMPUTERWORLD at 14 (April 17, 1995) (“Last
`month, Open Market became the first vendor to release a Web server that supports both SHT'I'P
`and SSL.”).
`4 Jessica Davis, Novell, Open Market Ink Deal, INFOWORLD at 6 (March 25, 1996) (“Novell has
`licensed OM-SecureLink commerce server software for the Internet, and plans to integrate OM-
`SecureLink with Novell’s Web server by the third quarter.”).
`5 Sprint Chooses Open Market’s Transact as Key Offering of its E-Commerce Services, PRESS
`RELEASE (September 27, 2000) (“Sprint will host Transact and offer its functionality as a service
`for these enterprise sites.”).
`6 Eric Nee, Surf’s Up, FORBES ONLINE (July 27, 1998), available at:
`https://www.forbes.com/forbes/1998/0727/6202106a.html (“Today Open Market is a leading
`supplier of Internet commerce software. More than 1,000 Web sites use Open Market software
`to transact business. Its clients include Disney, which sells on the Internet everything you can
`buy in one of its shopping mall stores, and Analog Devices, which allows engineers to find and
`order examples of integrated circuits on its Web site.”).
`7 Jeff Symoens, Transact 3.0: Scalable Solution, INFOWORLD at 68 (September 8, 1997)
`(“AT&T is using Transact as part of SecureBuy, a service that gives merchants the infrastructure
`to run an electronic store on the internet.”).
`8 HP And Open Market Offer Mission-Critical E-Commerce Services, HP OPEN MARKET PRESS
`RELEASE (November 18, 1998) (“Open Market is the first member of HP`s Domain Commerce
`alliance program to integrate HP`s MC/ServiceGuard with its products.”).
`9 Glenn Rifkin, Open Market Hopes It’ll be Next Netscape, N.Y. TIMES (March 4, 1996).
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`technology, commanding dominant market share of the transactional software market against
`companies like Microsoft and IBM.10
`8.
`The following collection of news articles shows some of the headlines that Open
`
`Market’s Transact product garnered in the computer industry press from 1996 to 2000.
`
`Sandy Reed, First-Ever Review of I-commerce System Right For New Section Debut,
`INFOWORLD at 73 (September 8, 1997); Matthew Nelson, Open Market adds Object Support to
`I-commerce Product, INFOWORLD at 58 (February 16, 1998.); Ellen Messmer, Open Market to
`Liven Up Web-Based Publishing, NETWORK WORLD at 16 (November 9, 1998); Mitch Wagner,
`Open market Upgrade Will Support Big Business On ‘Net, COMPUTERWORLD at 8 (December 9,
`1996); Ellen Messmer, Open Market to Debut e-Comm Tools, NETWORK WORLD at 12 (March
`27, 2000); Kim Nash, Open Market Aids Web Site Upkeep, COMPUTERWORLD at 12 (March 11,
`1996).
`
`9.
`
`The inventors of the Soverain Patents include Open Market’s founders and
`
`engineers. The inventors of the Soverain Patents comprise:
`
`10 Eric Nee, Surf’s Up, FORBES ONLINE (July 27, 1998); 3 Big New Customers for Open Market,
`Inc., N.Y. TIMES (April 24, 1995) (“Open Market Inc. will announce today that three major
`media companies will use its software and services to provide content and conduct business on
`the Internet. A privately held company based in Cambridge, Mass., Open Market said it had
`signed agreements to provide technology to the Tribune Company, Advance Publications and the
`Time Inc. unit of Time Warner.”).
`
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`10.
`
`Professor David K. Gifford is a professor of electrical engineering and computer
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`science at the Massachusetts Institute of Technology (“MIT”) and co-founder of Open Market.
`
`Mr. Gifford has been a member of the MIT faculty since 1982 and leads the Programming
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`Systems Research Group at the MIT Laboratory for Computer Science. Professor Gifford is a
`named inventor on fourteen of Soverain’s issued patents.11
`11.
`Professor Gifford is the author of over one hundred journal articles and his
`
`research areas focus on programming language development; information discovery, retrieval,
`
`and distribution; and computation using biological substrates. Professor Gifford earned his S.B.
`
`in 1976 from MIT and his M.S. and Ph.D. in electrical engineering from Stanford.
`12.
`Professor Gifford was elected as a fellow by the Association for Computing
`Machinery, for “contributions to distributed systems, e-commerce and content distribution.”12
`13.
`Dr. Lawrence Stewart was Open Market’s Chief Technology Officer. Dr. Stewart
`is the co-inventor of nine of Soverain’s patents.13 Dr. Stewart previously held positions at Xerox
`Palo Alto Research Center (“PARC”) and Digital Equipment Corporation. Recently, when
`
`writing about his role as a co-inventor of Soverain’s patents, Dr. Stewart described the
`
`intellectual effort behind the inventions.
`The relevant source code of the Open Marketplace system as of October 1994 was
`included with the patent application for anyone to read – over 50 printed pages of
`code. In other words, Open Market showed that these inventions weren’t just a
`theory but an actual working system. Open Market submitted the source code to
`the Patent Office on microfiche since there was no way to submit machine
`readable appendices back in 1994.14
`
`
`11 See U.S. Patent Nos. 4,845,658; 5,812,776; 5,724,424; 6,279,112; 6,205,437; 6,195,649;
`6,199,051; 6,049,785; 7,191,447; 7,124,092; 7,448,040; 8,935,706; 8,554,591; and 8,286,185.
`12 Gifford Named ACM Fellow, MIT COMPUTER SCIENCE AND ARTIFICIAL INTELLIGENCE
`LABORATORY NEWS (December 13, 2011), available at: https://www.csail.mit.edu/node/1651.
`13 See U.S. Patent Nos. 7,272,639; 6,449,599; 8,635,327; 8,606,900; 8,554,591; 5,715,314;
`5,708,780; 5,909,492; and 7,668,782.
`14 Lawrence Steward, The CAFC Got It Wrong In Soverain v. Newegg, IPWATCHDOG.COM
`WEBSITE (December 30, 2013), available at: http://www.ipwatchdog.com/2013/12/30/the-cafc-
`got-it-wrong/id=47141/ (emphasis added).
`
`
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`Dr. Stewart received an S.B. in Electrical Engineering from MIT in 1976, followed by M.S. and
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`Ph.D. degrees from Stanford University in 1977 and 1981, respectively. Dr. Stewart is also the
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`author (with fellow Soverain patent inventor Winfield Treese) of the computer science textbook,
`
`Designing Systems for Internet Commerce (Addison-Wesley, 2002).
`14.
`
`Dr. John R. Ellis was Open Market’s Architect and Technical Lead. Dr. Ellis
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`subsequently was the Senior Vice President of Engineering at AltaVista Internet and has held
`
`positions at Xerox PARC and Amazon.com. Dr. Ellis is a named inventor of four Soverain
`patents.15 Dr. Ellis holds a Ph.D. from Yale University and BSE from Princeton University.
`15.
`Dr. Daniel Earl Geer, Jr. served as Director of, Engineering at Open Market and
`named inventor of two Soverain Patents.16 Dr. Geer was the former President of USENIX, the
`advanced computing systems association and served as Chief Scientist at Verdasys, Inc. and
`
`Digital Guardian, Inc. Dr. Geer holds degrees from Harvard University and MIT.
`16. Winfield Treese was previously the Associate Director of the Hariri Institute for
`
`Computing at Boston University. Mr. Treese served as Open Market’s Vice President of
`
`Technology where he was responsible for the security architecture of Open Market’s products.
`Mr. Treese is a named inventor of eight Soverain patents.17 Mr. Treese was the chair of the
`Transport Layer Security (TLS) Working Group of the Internet Engineering Task Force (IETF),
`
`the Internet standard successor to SSL. Mr. Treese also chaired the 8th USENIX Security
`
`Symposium. Mr. Treese is the co-author of the book Designing Systems for Internet Commerce
`
`(Addison-Wesley, 2002).
`
`
`15 See U.S. Patent Nos. 7,448,040; 8,935,706; 8,286,185; and 7,191,447.
`16 See U.S. Patent Nos. 6,490,358 and 6,212,634.
`17 See U.S. Patent Nos. 7,448,040; 8,935,706; 8,286,185; 5,708,780; 7,272,639; 8,635,327;
`8,606,900; and 7,191,447. 
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`SOVERAIN’S TRANSACT SYSTEM
`17.
`From 1996 through 2000, Open Market's product, Transact, was a leader in the e-
`commerce field, holding the majority of the global market for transaction management systems.18
`When the first Soverain patents issued in 1998, Open Market was hailed for its “secure, robust,
`
`
`
`distributed architecture.” Jeff Symoens, Transact 3.0: Scalable Solution, INFOWORLD at 63
`
`(September 8, 1998). Gary Eichorn, chief executive officer of Open Market, stated that Open
`
`Market was selling its “transaction engine to telecommunications companies, banks and Internet
`
`service providers. They’re then offering commerce services to smaller companies.” HOTSEAT:
`
`GARY EICHORN, CEO OF OPEN MARKET, DESCRIBES HOW TRANSACTIONS WILL HIT THE WEB,
`
`InfoWorld at 47 (March 17, 1997).
`18.
`
`Transact provided an end-to-end solution for secure transaction management over
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`the Internet. Transact included the following components: (1) a transaction server for managing
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`orders, (2) a subscription server for security and authentication by managing access to digital
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`content, (3) a log server for secure management of log entries, and (4) a settlement server for
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`managing the authorization of transactions. A review of Transact in InfoWorld magazine stated
`
`“if you’re comfortable with Transact’s $125,000 opening price tag, it offers an exceptional
`
`architecture and a strong feature set that will handle back-end transaction processing.” Jeff
`
`Symoens, Transact 3.0: Scalable Solution, INFOWORLD at 63 (September 8, 1998).
`19.
`
`The following images of Soverain’s Transact product show: (1) FastCGI
`
`configuration screen for keeping application processes running between requests (unlike CGI the
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`system did not require extra overhead by requiring the system start a new process and initializing
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`an application each time a request is made on the system); (2) a server status screen for
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`monitoring the status of multiple hosts running Transact; (3) a maintenance screen for managing
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`system maintenance; and (4) an account validation service setting screen for managing
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`transaction security and authentication.
`
`
`18 Investors Bid Up Internet Stock, N.Y. TIMES (May 24, 1996) (In May 1996, Open Market
`made an initial public offering valuing the company at $1.2 billion.).
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`A COLLECTION OF IMAGES OF THE OPEN MARKET TRANSACTION SYSTEM (the numbered
`annotations correspond to the (1) FastCGI settings, (2) server status screen, (3) Transact
`maintenance settings, and (4) account validation settings).
`20.
`As the 2000s approached, larger technology companies entered the transaction
`management field; the dot-com bubble then burst.19 As a result, Open Market went through a
`restructuring and was purchased by Divine interVentures, Inc. (“Divine”) for approximately $70
`million in 2001.20
`and its Transact software product.
`21.
`
`Divine was a venture capital investment company founded in May 1999. Divine
`
` As a result of the purchase, Divine acquired Open Market’s patent portfolio
`
`focused on “professional services, Web-based technology, and managed services.” Id. At its
`
`
`19 See Editorial, The Dot-Com Bubble Bursts, N.Y. TIMES, Dec. 24, 2000, at WK8 (describing
`the aftermath of the dot-com bubble bursting).
`20 Divine to Buy Open Market, NETWORK WORLD at 8 (August 20, 2001) (“Professional services
`and software company Divine last week agree to buy struggling Open Market in a stock deal
`work about $59 million.”).
`
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`peak, Divine employed approximately 3,000 people in more than 20 locations worldwide and
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`offered approximately 50 software products.
`22.
`
`In 2003, Transact was acquired by Soverain Software. Soverain Software also
`
`acquired the patents from the original Open Market inventors and innovators.
`
`Jeff Symoens, Transact 3.0: Scalable Solution, INFOWORLD at 63 (September 8, 1998)
`(“Transact 3.0 is a comprehensive, high-end solution for processing Internet-commerce
`transactions. Pros: Secure, robust, distributed architecture.”).
`
`SOVERAIN’S PATENT PORTFOLIO
`23.
`Soverain’s patents and published patent applications have been cited in over 6,000
`
`issued United States patents and published patent applications as prior art before the United
`States Patent and Trademark Office.21 Companies whose patents and patent applications cite the
`
`21 The over 6,000 forward citations to the Soverain Patents do not include patent applications that
`were abandoned prior to publication in the face of the Soverain Patents.
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`Soverain patents include: Microsoft Corporation, Oracle Corporation, Facebook, Inc., AT&T,
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`Inc., International Business Machines Corporation, Dell, Inc., etc.
`24.
`
`It is difficult today to recall a time before Soverain’s patented technology had
`
`become part of the platform used to operate many websites. But prior to the mid to late 1990’s,
`
`when the applications leading to the patents in suit were filed, nothing like the patented
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`functionality had been devised, let alone implemented. The simplicity and intuitive features of
`
`the patented technology soon became apparent. Almost overnight, companies abandoned older
`
`technologies that often required customers to dial in directly to specific sites, shop for products
`
`using function codes or other keypad commands, and fax or phone in orders rather than complete
`
`transactions online.
`
`The above images show major Internet properties contemporaneous (and later) to the inventions
`conceived in the Soverain patents, including: (1) Microsoft.com (August 1995), (2) Amazon.com
`(July 1995), and (3) Apple.com (July 1997).
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`25.
`
`The Soverain network management and data extraction patent portfolio includes
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`technology that allows companies to streamline and secure the single sign-on process, extract
`
`data from hosts over a network, and authenticate and encrypt data using asymmetric keys.
`26.
`
`Soverain has maintained and developed the Open Market patent portfolio, which
`
`now consists of over 50 issued and pending U.S. and international patents covering key aspects
`
`of e-commerce technology.
`
`
`Nick Wingfield, Three Patents Lift Open Market as Observers Guess Their Worth, WALL ST.
`J., Mar. 4, 1998 (reporting that one analyst stated: "The most important thing is that it will allow
`them to be acknowledged as a leader and be sought after for strategic relationships"); Matthew
`Nelson and Dylan Tweney, Open Market Wins Three I-Commerce Patents, INFOWORLD at 10
`(March 9, 1998).
`
`27.
`
`Confirming the value of Soverain patents, licensees have paid millions of dollars
`
`for a license to practice the technology taught in the Soverain patents. For example,
`Amazon.com, Inc. paid 40,000,000 dollars to license the Soverain patents.22
`
`THE PARTIES
`
`
`22 Thom Weidlich, Amazon.Com Set to Pay On Patents, THE SEATTLE TIMES (August 12, 2005)
`(“Amazon.com, the world’s largest Internet retailer, agreed to pay $40 million to Soverain
`Software to settle two lawsuits over patents related to online shopping.”).
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`SOVERAIN IP, LLC
`28. McKinney, Texas based Soverain owns the intellectual property rights to
`
`information management solutions that allow companies and individuals to manage Internet
`
`content, encrypt network based information, and manage access to network based information.
`29.
`
`Soverain’s principal place of business is located at 6851 Virginia Parkway, Suite
`
`214, McKinney, Texas 75071. Like Defendant Apple, Soverain relies on its intellectual property
`for its financial viability.23
`
`APPLE, INC.
`30.
`
`On information and belief, Apple is a California corporation with its principal
`
`office at 1 Infinite Loop, Cupertino, California, 95014. Apple can be served through its
`
`registered agent, CT Corporation System, 1999 Bryan Street, Suite 900, Dallas, Texas 75201.
`31.
`
`On information and belief, Apple has offices in Texas where it sells, develops,
`
`and/or markets its products including:
`
` Apple developers integral to the accused products' infringing capabilities.
` Apple’s Austin office is currently undergoing a $300 million expansion and
`growing from 3500 to 7000 employees.24
` Apple operated a patent licensing company in Plano, Texas through its majority-
`owned subsidiary Rockstar Consortium.
` The supplier of numerous Apple chips (via Samsung) is located in or near the
`Eastern District of Texas.
`According to Apple’s website, Apple offers infringing products for sale
`
`32.
`
`throughout the United States and Canada, including in the Eastern District of Texas. Further,
`
`Apple advertises its infringing products throughout the Eastern District of Texas and claims
`
`23 John Paczkowski, Apple COO [Tim Cook]: “Will Not Stand For Having Our IP Ripped Off,
`ALLTHINGSDIGITAL.COM, January 21, 2009 (We will not stand for having our IP ripped off, and
`we will use every weapon at our disposal.”).
`24 Nicole Raney, Apple Continues Massive Austin Expansion With New Acquisition,
`AUSTINCULTUREMAP.COM, April 27, 2015, http://austin.culturemap.com/news/innovation/04-27-
`15-apple-expansion-offices-lease-southwest-austin-jobs/ (“The massive operations center and
`satellite office spaces are an extension of Apple's headquarters in Cupertino, California. In
`addition to providing overflow space for Apple's main hub, Austin houses Apple's hardware
`development and support teams.”).
`
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`financial benefits through its conducting of business in Texas, including: (1) accepting monies
`from the state of Texas relating to Apple’s engagements with Texas entities;25 (2) ongoing
`contracts with the state of Texas;26 (3) Apple’s agreement to be subject to the laws and
`jurisdiction of Texas;27 (4) Apple’s certification that it is licensed to conduct business in Texas;28
`(5) Apple’s assent to Texas insurance liability;29 and (6) Apple’s agreement (in prior contracts
`with the state of Texas) to make documentation available to residents of Texas.30
`33.
`On information and belief, Apple has asserted its patents in federal courts,
`including the Eastern District of Texas.31 And, Apple has acquired companies relevant to the
`accused products, including Intrinsity, Inc., which is based in Texas.
`
`
`25Apple in Texas: State of Texas Purchase Agreement(s), APPLE WEBSITE, September 2015,
`http://www.apple.com/education/purchase/contracts/states/tx.html; Texas Department of
`Information Resources: Apple Inc. Contract Overview, TEXAS GOVERNMENT WEBSITE,
`September 2015, http://dir.texas.gov/View-Search/Contracts-Detail.aspx?contractnumber=DIR-
`SDD-2068&keyword=apple.
`26 DIR Contract No. DIR-SDD-2068, STATE OF TEXAS DEPARTMENT OF INFORMATION
`RESOURCES CONTRACT FOR PRODUCTS AND RELATED SERVICES ORACLE AMERICA, INC. (2015),
`http://publishingext.dir.texas.gov/portal/internal/contracts-and-services/Contracts/DIR-SDD-
`2068%20Contract.pdf.
`27 Id. at Appendix A § F (“The laws of the State shall govern the construction and interpretation
`of the Contract.”).
`28 Id. at Appendix A § D (“Vendor [Apple] and its Order Fulfiller shall be authorized and validly
`existing under the laws of its state of organization, and shall be authorized to do business in the
`State of Texas.”).
`29 Id. at Appendix A § N (“licensed in the State of Texas, and authorized to provide the
`corresponding coverage”).
`30 Id. at Appendix A § V(1) (“Pursuant to S.B. 1368 of the 83rd Texas Legislature, Regular
`Session, Vendor is required to make any information created or exchanged with the State
`pursuant to this Contract, and not otherwise excepted from disclosure under the Texas Public
`Information Act, available in a format that is accessible by the public at no additional charge to
`the State.”).
`31 See Affinity Labs of Tex., LLC v. Apple, Inc., 2009 WL 7376918, *4 (E.D. Tex. Aug. 25, 2009)
`(describing Apple Computer’s previous litigation); Apple Computer, Inc. v. Creative Tech. Ltd.
`and Creative Labs Inc., Case No. 06-cv-149, Dkt. No. 1 (E.D. Tex. Filed July 19, 2006)
`(asserting infringement of U.S. Patent No. 7,046,230); see also Testimony from Apple’s
`Corporate Representative in VirnetX Inc. v. Apple Inc., Case No. 6:10-CV-417 (E.D. Tex. filed
`Aug. 10, 2011), Trial Tr., 11/02/12, 38:18-22; see also id. at 37:23-24 (“It’s a pretty short flight,
`so it’s not a big deal.”). More recently, Apple, as majority owner of the Rockstar Consortium,
`filed a complaint in this District a year ago. See Rockstar Consortium v. Google, Inc., Case No.
`13-CV-893-JRG (E.D. Tex. filed Oct. 31, 2013). Apple filed suit against HTC in the District of
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`34.
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`Apple’s sale and distribution of products and services that infringe the patents-in-
`
`suit has caused and continues to cause injury to Soverain.
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`JURISDICTION AND VENUE
`This action arises under the patent laws of the United States, Title 35 of the
`
`35.
`
`United States Code. Accordingly, this Court has exclusive subject matter jurisdiction over this
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`action under 28 U.S.C. §§ 1331 and 1338(a).
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`36.
`
`Upon information and belief, this Court has personal jurisdiction over Apple in
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`this action because Apple has committed acts within the Eastern District of Texas giving rise to
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`this action and has established minimum contacts with this forum such that the exercise of
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`jurisdiction over Apple would not offend traditional notions of fair play and substantial justice.
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`Defendant Apple, directly and/or through subsidiaries or intermediaries (including distributors,
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`retailers, and others), has committed and continues to commit acts of infringement in this District
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`by, among other things, offering to sell and selling products and/or services that infringe the
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`patents-in-suit. Moreover, Apple is registered to do business in the State of Texas, has offices
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`and facilities in the State of Texas, and actively directs its activities to customers located in the
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`State of Texas.
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`37.
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`Venue is proper in this district under 28 U.S.C. §§ 1391(b)-(d) and 1400(b).
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`Defendant Apple is registered to do business in the State of Texas, has offices in the State of
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`Texas, and upon information and belief, has transacted business in the Eastern District of Texas
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`and has committed acts of direct and indirect infringement in the Eastern District of Texas.
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`TECHNOLOGY BACKGROUND
`
`U.S. PATENT NO. 7,191,447
`U.S. Patent No. 7,191,447 (“the ‘447 patent”) entitled, Managing Transfer of
`38.
`
`Information in a Communications Network, was filed on August 25, 2000, and claims priority to
`
`Delaware across the continent. See Apple, Inc. v. HTC, et al., 1:10-CV-0167 (D. Del. filed Mar.
`2, 2010).
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`October 25, 1995. The ‘447 patent is subject to a 35 U.S.C. § 154(b) term extension of 615 days.
`
`Soverain is the owner by assignment of the ‘447 patent. A true and correct copy of the ‘447
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`patent is attached hereto as Exhibit A. The ‘447 patent claims specific methods and systems for
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`managing transfers of information in communications networks such as the World Wide Web.
`
`39.
`
`All the claims in the ‘447 patent were subject to inter partes reexamination before
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`the United States Patent Office. The reexamination certificate confirming all claims was issued
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`on October 5, 2012. In addition to confirming the patentability of all claims of the ‘447 patent,
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`83 additional claims were added and determined to be patentable over multiple references that
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`were not cited during the prosecution of the ‘447 patent.
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`40.
`
`During the reexamination proceeding, the United States Patent and Trademark
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`Office Board of Patent Appeals and Interferences confirmed the patentability of the claims over
`four references.32
`
`Reexam Ctrl. No. 95/000,505, ‘447 PATENT, CERT. ISSUED, OCTOBER 5, 2012.
`41.
`The ‘447 patent teaches various techniques for managing transfers of information
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`in public packet switched communications networks. For example, the ‘447 patent teaches a
`
`system where a server receives data from one or more networked servers and merges the data
`
`32 Decision of the United States Patent and Trademark Office Board of Appeals and
`Interferences, INTER PARTES REEXAMINATION CONTROL NO. 95/000,505 (January 26, 2012).
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`into one or more master logs. The ‘447 patent also teaches a system for implementing security
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`protocols wherein a proxy server translates links between an incompatible network protocol to a
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`compatible network protocol and then back-translates the link. The ‘447 patent also discloses a
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`system for extracting data from sources of network-based information in a communication
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`network using an object embedding program that locates a script program and causes the script
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`program to extract data and make it available over a computer network.
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`42.
`
`The ‘447 patent and its underlying application, foreign counterparts, and its
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`related patents have been cited by 135 United States patents and patent applications as relevant
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`prior art. Specifically, patents issued to the following companies have cited the ‘447 patent
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`family as relevant prior art:
`International Business Machines Corporation
`
` Telefonaktiebolaget L M Ericsson
` Alcatel-Lucent USA, Inc.
`Juniper Networks, Inc.
`
` Yellowpages.Com LLC
` General Electric Company
` Microsoft Corporation
` Kaspersky Lab Zao
` Lucent Technologies, Inc.
` AOL, Inc.
` Facebook, Inc.
` Siemens Aktiengesellschaft
` Fujitsu Limited
` Vodafone Group plc
` Charles Schwab & Co., Inc.
` Salesforce.com, Inc.
` Samsung Electronics Co., Ltd.
` Amazon.com, Inc.
`
`U.S. PATENT NO. 8,935,706
`U.S. Patent No. 8,935,706 (“the ’706 patent”) entitled, Managing Transfers of
`43.
`
`Information in a Communications Network, was filed on September 29, 2008, and issued on
`
`January 13, 2015. The ‘706 patent is subject to a 35 U.S.C. § 154(b) term extension of 524 days.
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`Soverain is the owner by assignment of the ‘706 patent. A true and correct copy of the ‘706
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