Case 3:20-cv-04448 Document 1 Filed 07/03/20 Page 1 of 11
1    Katherine D. Prescott (SBN 215496 | prescott@fr.com)
2    FISH & RICHARDSON P.C.
     500 Arguello Street, Suite 500
3    Redwood City, CA 94063
4    Phone: 650-839-5070
     Fax: 650-839-5071
5
6    Indranil Mukerji, (pro hac vice application to be filed), mukerji@fr.com
     FISH & RICHARDSON P.C.
7    1000 Maine Ave. SW, Suite 1000
8    Washington, D.C. 20024
     Phone: (202) 783-5070
9    Fax: (202) 783-2331
10
     Benjamin K. Thompson, (pro hac vice application to be filed), bthompson@fr.com
11   Lawrence R. Jarvis, (pro hac vice application to be filed), jarvis@fr.com
12   FISH & RICHARDSON P.C.
     1180 Peachtree Street, NE, 21st Floor
13   Atlanta, GA 30309
14   Phone: 404-582-5005
     Fax: 404-582-5002
15
16   Attorneys for Plaintiff APPLE INC.
17                         UNITED STATES DISTRICT COURT
18                       NORTHERN DISTRICT OF CALIFORNIA
19
     APPLE INC.,                               Civil Action No. 3:20-cv-4448
20
            Plaintiff,                         COMPLAINT FOR
21                                             DECLARATORY JUDGMENT OF
            v.                                 NON-INFRINGEMENT OF U.S.
22                                             PATENT NOS. 7,292,870 AND
     ZIPIT WIRELESS, INC.,                     7,894,837
23
                                               DEMAND FOR JURY TRIAL
24
            Defendant.
25
26
27
28
                                                   COMPLAINT FOR DECLARATORY JUDGMENT OF
                                                                       NON-INFRINGEMENT
                                                                     CASE NO. 3:20-CV-4448
                Case 3:20-cv-04448 Document 1 Filed 07/03/20 Page 2 of 11
1                   COMPLAINT FOR DECLARATORY JUDGMENT
2          Plaintiff Apple Inc. (“Apple”) hereby alleges for its Complaint against
3    Defendant Zipit Wireless, Inc. (“Zipit”) as follows:
4                       NATURE AND HISTORY OF THE ACTION
5          1.     This is an action for a declaratory judgment of non-infringement of U.S.
6    Patent Nos. 7,292,870 (“the ’870 patent”) and 7,894,837 (“the ’837 patent”)
7    (collectively, the “Zipit Patents”). Zipit has alleged that Apple has infringed these
8    patents, and Apple disagrees.
9          2.     Zipit previously asserted the Zipit Patents against Apple. Specifically,
10   Zipit filed suit against Apple on June 11, 2020, accusing Apple of infringing the Zipit
11   Patents directly, contributorily, and by inducement. (See Zipit Wireless, Inc., v.
12   Apple Inc., Civil Action No. 1:20-cv-02488-ELR (N.D. Ga.) (“the Former Zipit
13   Litigation”), ECF No. 1.)
14         3.     Without any prior notice to Apple, Zipit voluntarily dismissed the
15   Former Zipit Litigation without prejudice on June 24, 2020 and the action was
16   terminated on June 25, 2020.
17         4.     The parties’ history extends back beyond Zipit’s actual lawsuit. Zipit, as
18   it alleged in its Complaint in the Former Zipit Litigation, first contacted Apple
19   regarding the Zipit Patents several years before filing suit. See Former Zipit
20   Litigation ECF No. 1 at 38, 43. In fact, Zipit’s and Apple’s respective representatives
21   met at Apple’s Cupertino, California headquarters in 2015 for the express purpose of
22   conducting extensive negotiations regarding the Zipit Patents (including whether a
23   license was appropriate at all). Overall, the parties’ interactions took place over the
24   course of several years, from at least 2014 through 2016, and further encompassed
25   the exchange of many rounds of correspondence about the Zipit Patents.
26
27
28
                                                     COMPLAINT FOR DECLARATORY JUDGMENT OF
                                               1                         NON-INFRINGEMENT
                                                                       CASE NO. 3:20-CV-4448
                 Case 3:20-cv-04448 Document 1 Filed 07/03/20 Page 3 of 11
1          5.     Zipit maintained throughout these conversations that Apple required a
2    license to the Zipit Patents. Apple maintains that it does not infringe any claims of
3    the Zipit Patents. The parties never reached agreement.
4          6.     Zipit’s actions have created a real and immediate controversy between
5    Zipit and Apple as to whether Apple’s products and/or services infringe any claims of
6    the Zipit Patents. Both the pre-suit negotiations between Apple and Zipit, wherein
7    Zipit insisted that Apple requires a license to the Zipit Patents, and Zipit’s dismissal
8    of the Former Zipit Litigation without prejudice, demonstrates that it is highly likely
9    that Defendant Zipit will again assert infringement of the Zipit Patents against Apple.
10   In the meantime, the cloud of Zipit’s allegations and litigation hangs over Apple.
11         7.     As set forth herein, Apple does not infringe the Zipit Patents. Therefore,
12   an actual and justiciable controversy exists between the parties as to whether Apple’s
13   products and/or services infringe any claims of the Zipit Patents. The facts and
14   allegations recited herein show that there is a real, immediate, and justiciable
15   controversy concerning these issues. A judicial declaration is necessary to determine
16   the respective rights of the parties regarding the asserted patents, and Apple
17   respectfully seeks a judicial declaration that the Zipit Patents are not infringed by any
18   Apple products and/or services.
19                                       THE PARTIES
20         8.     Plaintiff Apple is a California corporation with its principal place of
21   business at One Apple Park Way, Cupertino, California 95014.
22         9.     On information and belief, and based on Zipit’s allegations in the
23   Former Zipit Litigation, Defendant Zipit is a Delaware Corporation with a principal
24   place of business located at 101 North Main Street, Suite 201, Greenville, South
25   Carolina 29601.
26         10.    On information and belief, including Zipit’s allegations in the Former
27   Zipit Litigation, Zipit claims to own the Zipit Patents.
28
                                                     COMPLAINT FOR DECLARATORY JUDGMENT OF
                                                2                        NON-INFRINGEMENT
                                                                       CASE NO. 3:20-CV-4448
                 Case 3:20-cv-04448 Document 1 Filed 07/03/20 Page 4 of 11
1                                JURISDICTION AND VENUE
2          11.    This action arises under the Declaratory Judgment Act, 28 U.S.C. §§
3    2201-2202, and under the Patent Laws of the United States, 35 U.S.C. §§ 1 et seq.
4          12.    This Court has subject matter jurisdiction over the claims alleged in this
5    action at least under 28 U.S.C. §§ 1331, 1332, 1338, 2201, and 2202, because this
6    Court has exclusive jurisdiction over declaratory judgment claims arising under the
7    Patent Laws pursuant to 28 U.S.C. §§ 1331, 1338, 2201, and 2202.
8          13.    This Court can provide the relief sought in this Declaratory Judgment
9    Complaint because an actual case and controversy exists between the parties within
10   the scope of this Court’s jurisdiction pursuant to 28 U.S.C. § 2201, at least because
11   Zipit sued Apple for patent infringement, despite the fact that Apple does not
12   infringe, and has not infringed, any claims of the Zipit Patents. While Zipit
13   dismissed the Former Zipit Litigation, it did so without prejudice, leaving open the
14   possibility of Zipit suing Apple again on these same patents. Zipit’s actions have
15   created a real, live, immediate, and justiciable case or controversy between Zipit and
16   Apple.
17         14.    Zipit has consciously and purposefully directed activities at Apple, a
18   company that resides and operates in this District. As previously described, Apple
19   and Zipit had extensive pre-suit communications regarding the Zipit Patents over the
20   course of several years. Zipit also came to the District for an in-person meeting at
21   Apple’s facilities in Cupertino to discuss the Zipit Patents. Throughout, Zipit
22   maintained that Apple required a license to the Zipit Patents. Zipit purposefully
23   directed these activities relating to the Zipit Patents at Apple in this District, and this
24   action arises out of and directly relates to Zipit’s contacts with Apple in this District.
25         15.    In doing so, Zipit has established sufficient minimum contacts with the
26   Northern District of California such that Zipit is subject to specific personal
27   jurisdiction in this action. The exercise of personal jurisdiction based on these
28
                                                      COMPLAINT FOR DECLARATORY JUDGMENT OF
                                                 3                        NON-INFRINGEMENT
                                                                        CASE NO. 3:20-CV-4448
                 Case 3:20-cv-04448 Document 1 Filed 07/03/20 Page 5 of 11
1    repeated and pertinent contacts does not offend traditional notions of fairness and
2    substantial justice.
3          16.    Venue in this District is proper under 28 U.S.C. §§ 1391(b), (c), and (d)
4    with respect to Apple’s declaratory judgment claims. As discussed above, this Court
5    has personal jurisdiction over Zipit because Zipit has engaged in actions in this
6    District that form the basis of Apple’s claims against Zipit—namely, the pre-suit
7    communications and interactions with Apple representatives in Cupertino, and the
8    meeting at Apple’s Cupertino headquarters.
9          17.    An actual and justiciable controversy exists under 28 U.S.C. §§ 2201-
10   2202 between Apple and Zipit as to whether the Zipit’s Patents are infringed by the
11   Apple products and/or services that Zipit alleged to infringe the Zipit Patents in the
12   Former Zipit Litigation.
13                                    PATENTS-IN-SUIT
14         18.    The ’870 patent, entitled “Instant Messaging Terminal Adapted For Wi-
15   Fi Access Points,” states on its face that it issued on November 6, 2007. A true and
16   correct copy of the ’870 patent is attached as Exhibit A.
17         19.    The ’837 patent, entitled “Instant Messaging Terminal Adapted For Wi-
18   Fi Access Points,” states on its face that it issued on February 22, 2011. A true and
19   correct copy of the ’837 patent is attached as Exhibit B.
20                              FIRST CLAIM FOR RELIEF
21        (Declaratory Judgment That Apple Does Not Infringe The ’870 Patent)
22         20.    Apple repeats and realleges each and every allegation contained in
23   paragraphs 1 through 19 of this Complaint as if fully set forth herein.
24         21.    In view of the facts and allegations set forth above, there is an actual,
25   justiciable, substantial, and immediate controversy between Apple, on the one hand,
26   and Zipit, on the other, regarding whether Apple infringes any claim of the ’870
27   patent.
28
                                                     COMPLAINT FOR DECLARATORY JUDGMENT OF
                                               4                         NON-INFRINGEMENT
                                                                       CASE NO. 3:20-CV-4448
                 Case 3:20-cv-04448 Document 1 Filed 07/03/20 Page 6 of 11
1          22.    Apple does not infringe, and has not infringed, any claim of the ’870
2    patent. For example, the ’870 patent has two independent claims (i.e., claims 1 and
3    20) and Zipit previously identified claim 20 as allegedly infringed in the Former Zipit
4    Litigation. Claim 20 is reproduced below:
5
                  20. A method for managing wireless network access and instant
6                 messaging through a wireless access point with a handheld instant
                  messaging terminal comprising:
7
8                 entering textual characters and graphical symbols with a data entry
                  device of a handheld terminal to form instant messages for delivery to an
9
                  instant messaging service;
10
                  displaying the entered textual characters and graphical symbols on a
11
                  display of the handheld terminal;
12
                  communicating instant messages with a wireless, Internet protocol
13
                  access point, the instant messages being communicated with a
14                communications module and wireless transceiver in the handheld
15                terminal;
16                coordinating authentication for coupling the handheld instant messaging
17                terminal to a local network through the wireless, Internet protocol access
                  point;
18
19                implementing instant messaging and sessions protocols to control a
                  conversation session through the wireless, Internet protocol access point,
20                the instant messaging and session protocols being implemented within
21                the handheld instant messaging terminals;
22                displaying conversation histories for active conversations terminated by
23                a loss of a network connection; and
24                automatically searching for wireless, Internet protocol network beacons
25                after the conversation histories are displayed.
26
27
28
                                                    COMPLAINT FOR DECLARATORY JUDGMENT OF
                                              5                         NON-INFRINGEMENT
                                                                      CASE NO. 3:20-CV-4448
                 Case 3:20-cv-04448 Document 1 Filed 07/03/20 Page 7 of 11
1          23.    Claim 1 recites similar limitations. Apple does not infringe any claims
2    of the ’870 patent at least because no Apple product or service meets or embodies at
3    least the following limitations as recited in the claims: “entering textual characters
4    and graphical symbols with a data entry device of a handheld terminal to form instant
5    messages for delivery to an instant messaging service”; “displaying the entered
6    textual characters and graphical symbols on a display of the handheld terminal”;
7    “communicating instant messages with a wireless, Internet protocol access point, the
8    instant messages being communicated with a communications module and wireless
9    transceiver in the handheld terminal”; “coordinating authentication for coupling the
10   handheld instant messaging terminal to a local network through the wireless, Internet
11   protocol access point”; “implementing instant messaging and sessions protocols to
12   control a conversation session through the wireless, Internet protocol access point,
13   the instant messaging and session protocols being implemented within the handheld
14   instant messaging terminals”; “displaying conversation histories for active
15   conversations terminated by a loss of a network connection”; and “automatically
16   searching for wireless, Internet protocol network beacons after the conversation
17   histories are displayed.”
18         24.    For example, as shown above, claim 20 recites “a data entry device” and
19   “a display” as separate components with additional ascribed limitations. Apple’s
20   iPhones do not have a separate “data entry device” as they contain only a display.
21   Namely, Apple’s iPhones have a software keyboard as part of the display having
22   distinct keyboard layouts for Emoji symbols and textual characters.
23         25.    In view of the foregoing, there is an actual, justiciable, substantial, and
24   immediate controversy between Apple and Zipit regarding whether Apple infringes
25   any claim of the ’870 patent.
26         26.    Apple is entitled to judgment declaring that it does not infringe the ’870
27   patent. Apple has no adequate remedy at law.
28
                                                     COMPLAINT FOR DECLARATORY JUDGMENT OF
                                                6                        NON-INFRINGEMENT
                                                                       CASE NO. 3:20-CV-4448
                 Case 3:20-cv-04448 Document 1 Filed 07/03/20 Page 8 of 11
1                              SECOND CLAIM FOR RELIEF
2         (Declaratory Judgment That Apple Does Not Infringe The ’837 Patent)
3          27.    Apple repeats and realleges each and every allegation contained in
4    paragraphs 1 through 26 of this Complaint as if fully set forth herein.
5          28.    In view of the facts and allegations set forth above, there is an actual,
6    justiciable, substantial, and immediate controversy between Apple, on the one hand,
7    and Zipit, on the other, regarding whether Apple infringes any claim of the ’837
8    patent.
9          29.    Apple does not infringe, and has not infringed, any claim of the ’837
10   patent. For example, the ’837 patent has two independent claims (i.e., claims 1 and
11   11) and Zipit previously identified claim 11 as allegedly infringed in the Former Zipit
12   Litigation. Claim 11 is reproduced below:
13
                  11. A method for managing wireless network access and instant
14                messaging through a wireless access point with a handheld instant
                  messaging terminal comprising:
15
16                generating textual characters and graphical symbols in response to
                  manipulation of keys on a data entry device of a handheld instant
17
                  messaging terminal;
18
                  displaying the generated textual characters and graphical symbols on a
19
                  display of the handheld instant messaging terminal;
20
                  generating data messages with the generated textual characters and
21
                  graphical symbols in accordance with at least one instant messaging
22                protocol that is compatible with an instant messaging service;
23
                  wirelessly transmitting the generated data messages to a wireless
24                network access point through an Internet protocol communications
25                module and wireless transceiver in the handheld instant messaging
                  terminal; and
26
27
28
                                                     COMPLAINT FOR DECLARATORY JUDGMENT OF
                                               7                         NON-INFRINGEMENT
                                                                       CASE NO. 3:20-CV-4448
                   Case 3:20-cv-04448 Document 1 Filed 07/03/20 Page 9 of 11
1                   controlling a conversation session in accordance with the at least one
                    instant messaging protocol being implemented with a control module
2                   located within the handheld instant messaging terminal.
3
4          30.      Claim 1 recites similar limitations. Apple does not infringe any claims
5    of the ’837 patent at least because no Apple product or service meets or embodies at
6    least the following limitations as used in the claimed inventions: “generating textual
7    characters and graphical symbols in response to manipulation of keys on a data entry
8    device of a handheld instant messaging terminal”; “displaying the generated textual
9    characters and graphical symbols on a display of the handheld instant messaging
10   terminal”; “generating data messages with the generated textual characters and
11   graphical symbols in accordance with at least one instant messaging protocol that is
12   compatible with an instant messaging service”; “wirelessly transmitting the generated
13   data messages to a wireless network access point through an Internet protocol
14   communications module and wireless transceiver in the handheld instant messaging
15   terminal”; and “controlling a conversation session in accordance with the at least one
16   instant messaging protocol being implemented with a control module located within
17   the handheld instant messaging terminal.” For example, as shown above, claim 11
18   recites “a data entry device” and “a display” as separate components with additional
19   ascribed limitations. Apple’s iPhones do not have a separate “data entry device” as
20   they contain only a display. Namely, Apple’s iPhones have a software keyboard as
21   part of the display having distinct keyboard layouts for Emoji symbols and textual
22   characters.
23         31.      In view of the foregoing, there is an actual, justiciable, substantial, and
24   immediate controversy between Apple and Zipit regarding whether Apple infringes
25   any claim of the ’837 patent.
26         32.      Apple is entitled to judgment declaring that it does not infringe the ’837
27   patent. Apple has no adequate remedy at law.
28
                                                       COMPLAINT FOR DECLARATORY JUDGMENT OF
                                                  8                        NON-INFRINGEMENT
                                                                         CASE NO. 3:20-CV-4448
                Case 3:20-cv-04448 Document 1 Filed 07/03/20 Page 10 of 11
1                                  PRAYER FOR RELIEF
2          Apple respectfully requests the following relief:
3          A.     That the Court enter a judgment declaring that Apple has not infringed
4                 and does not infringe any valid and enforceable claim of the ’870 patent
5                 asserted by Zipit to be infringed by Apple;
6          B.     That the Court enter a judgment declaring that Apple has not infringed
7                 and does not infringe any valid and enforceable claim of the ’837 patent
8                 asserted by Zipit to be infringed by Apple;
9          C.     That the Court declare that this case is exceptional under 35 U.S.C. §
10                285 and award Apple its attorneys’ fees, costs, and expenses incurred in
11                this action;
12         D.     That the Court award Apple any and all other relief to which Apple may
13                show itself to be entitled; and
14         E.     That the Court award Apple any other relief as the Court may deem just,
15                equitable, and proper.
16                                     JURY DEMAND
17         Apple hereby demands a jury trial on all issues and claims so triable.
18
     Dated: July 3, 2020              Respectfully submitted,
19
20
21                                By: /s/ Katherine D. Prescott
                                     Katherine D. Prescott, SBN 215496
22                                   prescott@fr.com
23                                   FISH & RICHARDSON P.C.
                                     500 Arguello Street, Suite 500
24                                   Redwood City, CA 94063
25                                   Phone: 650-839-5180 / Fax: 650-839-5071
26
27
28
                                                    COMPLAINT FOR DECLARATORY JUDGMENT OF
                                               9                        NON-INFRINGEMENT
                                                                      CASE NO. 3:20-CV-4448
     Case 3:20-cv-04448 Document 1 Filed 07/03/20 Page 11 of 11
1                        Indranil Mukerji, (pro hac vice application to be
                         filed), mukerji@fr.com
2                        FISH & RICHARDSON P.C.
3                        1000 Maine Ave. SW, Suite 1000
                         Washington, D.C. 20024
4                        Phone: (202) 783-5070
5                        Fax: (202) 783-2331
6                        Benjamin K. Thompson, (pro hac vice application
7                        to be filed), bthompson@fr.com
                         Lawrence R. Jarvis, (pro hac vice application to be
8                        filed), jarvis@fr.com
9                        FISH & RICHARDSON P.C.
                         1180 Peachtree Street, NE, 21st Floor
10                       Atlanta, GA 30309
11                       Phone: 404-582-5005
                         Fax: 404-582-5002
12
13                       Attorneys for Plaintiff APPLE INC.
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
                                      COMPLAINT FOR DECLARATORY JUDGMENT OF
                                 10                       NON-INFRINGEMENT
                                                        CASE NO. 3:20-CV-4448