COMPLAINT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Roman M. Silberfeld, SBN 62783

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Case 2:19-cv-01602Document1Filed03/05/19Pageof128ID#:1 corporation, INC. NETFLIX, DivX, LLC DivX, Daniel @RobinsKaplan.comRSilberfeld Roman M. Silberfeld Aaron R. Fahrenkrog [email protected] Facsimile: Telephone: Los Angeles, 90067 CA 2049 Century Park East, Suite 3400 LLP KAPLAN ROBINS [email protected] Attorneys for Plaintiff Facsimile: Telephone: 55402 MN Minneapolis, 800 LaSalle Ave LLP KAPLAN ROBINS [email protected] Bryan J.Mechell [email protected] Ch liability company , DIVX ristopher A. Seidl A. ristopher v.

L. L. LLC, LLC, Allender (310 (612) 339-

(310 (612 a Delaware Defendant Plaintiff ) ) ) 349 ) , a Delaware nue (pro hac vice , , 552 229 264651 SBN , CALIFORNIA OF DISTRICT CENTRAL 2800 Suite , (provice hac UNITED STATES DISTRICT , SBN SBN , (pro hac vice - - -

0130 5800 4181 8500 ,

limited . 62783

to be filed)to be

to be filed)

to be filed)to be

- 1 Case No.2:1 J FOR DEMAND INFRINGEMENT PATENT FOR COMPLAINT

COURT 9-cv-1602 URY TRIAL

COMPLAINT

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Case 2:19-cv-01602Document1Filed03/05/19Page2of128ID#:2

complaint against Defendant Netflix, Inc. (“Defendant” or “Netflix”) video. DivX infringement theirterms. own high developing experiences enjoyable on any dev technical obstacles to do accomplished this feat producers would be comfortable making their original encryption next devices, allowing possible to transmit large video files over the internet. I foundational technologies that made high of the first platformsfor streaming high- internet. of Finally, all on building before platforms like Netflix

-quality developed Digital Rights Management (DRM) technology Plaintiff DivX, LLC (“Plaintiff” or “DivX”), by its attorneys, for its 1. 2. 3. 4.

and those video files for for ice

for video files, innovative tec innovative ® for consumers for digital Since 2000, DivX has been setting the standard for high digital -quality DivX DivX Today, DivX DivX it allegesfollows: as consumers

at the touch of a button a of touch the at technology helps people around the world enjoydigital media on licensed that technology to consumer electronics manufacturers . It

is began by improving video consumers expect to play

onethe of almost so. to to hnology toenable quality digital entertainment

overthe internet. to be playedto be to protect valu protect to —making internet video watch

Through thoseefforts, or or 20 years ago, they first

Hulu existed. Hulu INTRODUCTION

on any device. these technologies, Stage6, launched DivX

companies to enable . However, when DivXHowever, on a wide variety of consumer electronics video compression technology that made it - quality

able video content so that content 2 quality -quality

- For nearly 20years, DivX has

high- , user

had toovercomesignificant

internet video DivX high quality

-creat work t createdt technology - quality, successful engineers ed video s ’s engineers

available on the and professional , including possible secure, easy from the internet

invented deliver

for patent COMPLAINT

long been y of ,

and video video one one

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DivX DivX subscribers in countries around the world. business,delivering streaming video and patent applications. depends streaming media, consumer electronics today’sproliferation internet of video internet the over DivX DivX to technologies and integrated them into today. innovations DivX these Without unauthorized and unlicensed use of DivX’s patented technology.

technical

technologies patented these inventions 7. 5. 6. 8.

up on on innovations innovations Today,Netflix isthe world’smost successful videostreaming As a result of the many DivX innovations relating to internet videoand • • • DivX’s investments in research and development for • DivX brings this lawsuit to seek fair compensation from Netflix for its

the technicalinnovation s developedand patentedby .

a streaming ecosystemmany of consumer devices efficient and effective DRM playback; efficient compression for high- unauthoriz enjoyable video playback features that make internet video easier and more All of this work paved the way way the paved work this of All enabling:

that sha

for consumers ed use and copying

and and ped internet video know world as the , Netflix would not enjoy the success that it does today has a todayhas over theinternet tomore than 150 million streaming onconsumer devices. morethan one (CE) -

to to Netflix’s video streaming success

access companies have licensed DivX’s

to protect video content ; quality video delivery and portfolio and (and provided a .

billion devices billion

of of over over

300 roadmap) internet

; DivX, including

worldwide. s issued patents COMPLAINT

from from

it today. it

video led led video for for

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(collectively, the “ technologies are necessary for electronic devices technologies and and users expect and the (the patent”), patents: U.S. Patent Nos. 7,295,673 DivX DivX has infringedandcontinues toinfringe

to sell, selling, and/or importing technology, Patents. inducing its consumer its inducing induces infringement by providing software (

10,225,588 (the “’588 “’720 patent”) P 10. 9. 11. 12. atents

8,472,792

software, The DivX P DivX The This This • • • • Netflix directly infringes the DivX Netflix indirectly infringes at leastseven for for

disclose technologies that enable delivering secure digital of of receipt and playback of streaming digital video variety wide on a without stalls high robust start. features that improve user experience, including trick play to obtain to complaint DivX DivX and and , consumer (the“’792 patent”), 9,998,515 ( 9,998,515 -quality

and servicesand end enabling enabling and effi and Patents”). atents cover foundational internet video streaming

-users to directly infringe NATUREACTION OF THE and distribute patent”), copies of which are attached as Exhibits 1- alleges

video electronic

; Netflix

the the cient cient content into the United States internet

that “’515 patent”)

patent infringement. DivX alleges that Netflix playback (the“’673 patent”), 8,139,651 DRM to deliver the , directly and practice -

viewing on those devices those on viewing 9,184,920

device

contentfor streaming its service. 4 video video

; and -

resolution video, -resolution 4K high including , the Netflix application Netflix the

many benefits, including many benefits, content to a variety to content of

the inventions claimed inthe DivX ; Patentsmaking, by using,offering

, 10,212,486 (the “’486 patent”) (the “’920 patent”), 9,270,720 /or those viewing experience that its experience viewing of of

indirectl the

DivX DivX DivX video streaming y, y, Patents. . These eight

Patents by

(the “’651 ) that, when COMPLAINT consumer DivX DivX

: Netflix

he he and f 8

ast ,

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Case 2:19-cv-01602Document1Filed03/05/19Page5of128ID#:5

Bronson Studio Lot where a variety of Netf such as Content, Legal, Marketing & Publicity and is located on the Sunset website, the Los Angeles office “is the entertainment hub for Netflix with teams Angeles, California uses, offers for sale, sells, content. digital global headquarters at is 3 2 1710k.htm https://www.sec.gov/Archives/edgar/data/1065280/000106528018000069/q4nflx20 1 personal computers, phones, tablets, used byc Netflix, causes those users to make DivX DivX Patents DivX including those asserted here DivXowns patentscovering foundational internetvideo streaming technologies, business

https://jobs.netflix.com/locations/los-angeles Id. Netflix, Inc., 2017 10 -K,

Patents. 16. 17. 13. 14. 15. video video Upon information Upon is onsumers or other content viewers to stream digital video televisions, to

4350 La Jolla Village Drive, Suite 950 Suite Drive, Village Jolla La 4350 Upon information Upon information DivX seeks damages and other relief for Netflix’s infringement of the DivX is a Delaware limited liability company Netflix is a Delaware corporation Delaware a is Netflix content, which includes films, television series, and other video .

that employs about 800 employees. According to Netflix’s

100 Winchester Circle, Los Gatos, California

and/or imports into the United States

available at and belief, Netflix designs, operates, designs, Netflix belief, and .

and belief, Netflix maintains and belief, Netflix is the global leader in streaming THE PARTIES ,

use and other devices, , -

and practice 5

- lix content is created.” is content lix

-california . 1

Its , San Diego, California

principal placeof business and

the the as as .

inventions directed and .

Its

an officeLos in

principal including into the the into —including tests, 3

claimedin the manufac COMPLAINT ,

intended by 95032. p , lace of

2 9212 2 tures,

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and infrastructure, product engineering, and data science and analytics. including cloud and platform engineering, information security, data engineering Los Angeles facility 4 Central District of California I. United States, 35 U.S.C. §1et generate business the Central District of California and has a regular and established physical §§ offering for sale/license products and services that infringe the among other things, making, using, testing, selling, licensing, importing and/or committed and continues to commit acts of patent infringement in this District, by, and play and substantial justice. Defendant Netflix, directly and through subsidiaries tradit offend not would Netflix over jurisdiction of exercise the rise to this action and has established minimum contacts with this forum such that because Netflix has committed acts within the Central District of California giving jurisdiction pursuant to 28 U.S.C. §§ 1331 and 1338(a). digital

Id.

1391(b)

intermediaries (including distributors, retailers, franchisees and others), has 21. DivX 20. 19. 18. video and employees in the Central District of California billions of dollars of revenue Netflix for

(d) and 1400(b)-(d) because Netflix has committed acts of infringement in

Establishe Venue is proper in this district and division under 28 U.S.C. U.S.C. 28 under division and district this in proper is Venue This Court has both general and specific ju This is an action for patent infringement content , Netflix ,

sumer con to d in 2000,d JURISDICTION AND JURISDICTION FACTUAL BACKGROUND FACTUAL

—internet employs technical engineers in many disciplines, seq. s DivX DivX

over the internet. , over which this Court has subject matter video streaming software - pioneered

each year.

VENUE the the

Among otherthings, under the Patent Laws of the the of Laws Patent the under deliver

risdiction overNetflix

, in Los Angeles.

y of DivX ional notionsfair of

and services that high

Patents. - COMPLAINT quality quality 4

DivX place of

At its has

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Case 2:19-cv-01602Document1Filed03/05/19Page7of128ID#:7

and licenses its software wide variety of consumer devices. thatenable distributionof high - invented technologies for video compression, transmission, playback, and security wanted to compress software downloaded DivX’s software more than internet. in research and development for internet video streaming innovations today. “DivX ; “DivX executive, files. technologies, Group Phase 4 Standard) to compress service restricted implementation modified the MPEG efficient transfer disruptive technology and be the first to market technology that enable internet.

22. 23. A. 24. 25. 26. .

-)”—a play onthe now

The The

learned of the DivX to digital video content video digital DivX DivX In 1999 In DivX Frustrated with the restrictions Mr. Rota distributed this code for free onl Around that Around ; DivX

more than Mr. Rota created and ’s ’s distributes -) - digital digital , Origin 4

distribution Jérô code codec

to to same time, Jordan Greenhall, a former Mp3.com ), ), ne video me a Rota,

proved popular and soon became synony video files in order to be able CE in in it enabling

billion

for use consumersoftware implementingits technologies ,

- ; manufacturers. code enabling code qua defunct Circuit City’s Digital Video Express DVD codec -)

. of

code lity video over the internet for playback on a

consumer electronic consumer

high outside outside compositing infographist and video engineer

to be used in a more open way. . -

one - Hewanted to 7 .avi (audio video i quality

and limitations

of of billion times.

the the DivX DivX Windows Media Player

digital video -4 (MovingMPEG Picture Experts has ine, using the moniker create

devices licensed and integr to DivX continues DivX of of nterleave share

a company around this content existing digital video video digital existing . C

them

onsumers have mous with how how with mous d

Mr. Rota Mr. Rota ) COMPLAINT over the the over d

over the formatted (.asf

the the

to to ated its -

invest invest ,

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mechanism for encoding called LLC. more accurately,internet an video early goal: (1) easier to use and share other each video with system for

Inc., Inc., others DivXNetworks, co-founded build a team of software Greenhall Mr. engineers 2000, September Around . of the M digitalvideo content. the DivX Codec 4.0 program for encoding (collectively Ove files, allowing for variation DivX users DivX back file types These factors led to widespread adoption of the DivX S anduseof digital video

digital digital the next decade, DivX released numerous new versions 28. B. 27. 29. 30. 31. DivX the - PEG

on differentdevices .

video delivery .

video usinga standard program. , DivX’s initial DivX’s Mr. Greenhall contacted Mr. Rota DivX recognized DivX Software DivX The The DivX Software DivX The DivX DivX the “DivX Software”). 4 video standard video 4 In. 2001,

distribute Open Video System (OVS). offered to replace the earlier

To satisfy this demand, —that is, became

software, digital video digital over the internet

its goal was to build an i s

in codec in for free. for DivX Software

that consumers wanted accessible

It It compressing—and decoding digital video files.

morewidespread computing as power increased. allowed consumers tocompress, decode, and play functioned like a master translator

revolution includi

, container , content -

the the

after starting from scratch, DivX

8 ng ng DivX

from a server to multiple users , later - predecessor

a . It identified two Thus,

over DivX DivX video video f

or easy distribution in March 2000 and the two began to ; -) nternet video solution s

, and, playback acro the internet; and (2) c code DivX set off to create a created created codec,

At the same time, access to . oftwarea largeand base business A “ to consumers to a new a codec

of the DivX Codec ways toachieve its , of plaintiff DivX, DivX, plaintiff of

high ” implementation

via is a com for for ss different - COMPLAINT

—or, perhaps the the quality digital reate a released i nternet.

make it puter and

video video

of of

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video playback. internet video websites videos using the

access protect, transmit, and authenticate called the Open Video System (“OVS”) of engineers focused on the —the studios includes additional advanced features. Media Server). the DivX Converter), and to cast media from a computer to a TV (via the DivX to enjoy high - Bundle video player, and video converter into what is know content to travel over the internet. i allowed the first DVD internet

nternet.

35. 33. C. 32. 34. 37. 36. content using .” DivX offers the C

eo plavid

In 2001, DivX launched th launched DivX 2001, In hired hired Greenhall Mr. 2000, November Around OVS DivX The T Mr. Grab is a named inventor on the ’673, ’920, and The The The The content holders —to qualityvideo playback (via the DivX Player), toconvert video (via he he

DivX also sells a “DivX Pro” version of the DivX Software, which which DivX Software, the of version Pro” “DivX a sells DivX also

DivX DivX OV DivX DivX Software DivX DivX yback systems with state DivX OVS DivX -like quality digital content holders and distributors OVS. and distributors DivX allowedholders content OVSwas oneof the using DivX Software to support the backend the support to Software DivX using ing build S S onsumer

enabled , , in its latest form, combines the DivX Codec,

an online video consumer service and application through the DivX Player allow consumers to download and play

secure Bundle Bundle

companies possessing content video

e -

that would allow protected digital video

DivX DivX 9 digital

video -of

world’s for free to allow consumers tocontinue - the ingest, store, store, ingest, could which OVS, content video -art compression n as n first

content

to the DivX “ DivX the - MPEG .

securely travel Eric Grab Eric .

Consumers could 4 ’588

capabilities. full

Consumer system and

to lead a COMPLAINT screen -screen

patents.

back , such as over to build

team

It It the the

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market, needs among (1) content holders, performance Con computer experience DivX DivX protection before agreeing to personal computers (PCs) associated with internet delivery of secure studio content to CE devices and companies included using DivX’s technology Throughoutmid the - protection problems. The DivX Paramount manufacturers standardization, authorize playback of of playback authorize to holder content distribution Disney, including ,

tent h invested invested 38. D. 39. 42. 40. 41. ’s DivX

olders demanded better security , technology. — Pictures. such as , As As DRM DivX the and Meeting Competing Needs: T Content holders ( Leading content distributors r DivX created a system the DivX’s the role operating in

in particular, and and ,

substantial

that

continued growth depended on its ability to the the and optimization. consumers demanded greater accessibility and improved televisions DivX DivX met the studios’ needs for security problem the and solved

Blockbuster, Netflix, Netflix, Blockbuster, 2000s, DivX was approached by severalcompanies todiscuss DRM

From From

to power online video content delivery platforms. Those .

Software Software resources in resources the ability towatch video

DRM technology evolved DRM to technology DivX solveThe these established 2000 license including including

(and later, smartphones and tablets) its content

(2)

to , and

with input from the studios and CE the DivX OVS. DivX the 2005 CE

developing state developing Warner Bros.Warner - an elegant systemthat

the

studios) demanded additional

10 manufacturers, and manufacturers, , DRM

Amazon,

, DivX met with manystudios esponded toDivX’stechnology on CE

DivX DivX - he he

multiple

manufactur DivX

allowed DivX to focus on quality, quality, on focus to DivX allowed OVS ga OVS and others. and

, Sony, Universal, on devices other than To put the studios at ease, Inte manufacturers’ - of rnet Video Ecosystem ined popularity inthe ers demandedbetter - th balance

(3) art e-art allow

consumers content .

competing

COMPLAINT content content each content devices. and and

about about . personal . user user

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5 human resources and capital bandwidth costs over 10,000,000 monthly views. i However, with web playback of higher HTTP from consumers to implement functionality toenable surprised reviewers, with one commenting on tobec platform incorporated DivX’s proprietary technologies. This type of platform definition video. The quality of the high- significant investments inbandwidthfacilitateto thisuserexperience. therefore allowed for uploading of much larger video files than platforms like YouTube upload, share,and viewhigh-resolution videos with DivX’s Software. Stage6 Stage6 was Upon information YouTube. like platforms to alternative implementation

DivX Stage6 (beta) -ba E. 46. 43. 47. F. 44. 45. 48.

, ome the core of adaptive bitrate streaming (ABS) systems. sed website for high

users could upload and share much larger video files. DivX made the only Stage6 enjoyed rapid user traffic growth, and by January 2008, it had In 2006, DivX launched Stage6, an internet streaming platform and DivX’s Beginning a Beginning DivX’s CE Software & Certification Program Stage6 provided internet video users with a higher Even in 2007, Stage6 supported streaming of 720p and 1080p high- CEmanufacturers reached out to DivX in CE devices. to to DivX; DivX;

the high —the platform supporting high-resolution Stage6 Platform round round DivX shut down Stage6 in February 2008 to focus resolution video!” -resolution on -resolution

- 200 defrival to YouTube the core DivX business DivX core the 2 , CE manufacturers began receiving requests

11 resolution video playback on Stage6 user

“DivX has clearly got something right

- ncreased trafficresulted in increased

-generated 5

, Hexus.net, May 1, 2007. to discuss

playback DivX of videofiles. es and professional video. The

video.allowed It users to . and belief, at at belief, and

OVS technology technology OVS resolution -resolution

COMPLAINT that time

its went ;

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file the certification to demonstrate to consumers that their de known as DivX Partners DivX as known files would play ona wide range of devices by requiring its CE SDK licensees, also CEmanufacturers to certify their licensed devices. U HEVC DivX HD, Plus DivX HD, DivX Home Theater, Profiles DivX including , fast start fast ray disc consumer electronic including leading digital television, smartphone,

DivX Certification P successfully SDK DivX use the network) players DVD allow would that (“SDK”) kit development software CE a created DivX technology today. electronics devices overthe internet technology continues to invest in researc invest to continues

ltra HD, DivX Plus Streaming, Theater. Mobile DivX DivX and Mobile, s as well as a broad range of other video files . 51. 53. 52. 55. 54. 50. 49. , and othermedia player , security,high quality, and integrated

while incorporating a secure DRM protocol. .

DivX Certif DivX has integr DivXlicensed its The DivX DivX The To this day, DivX has numerous CE licensees for its SDKs and CTKs, DivX began testing CE devices To meet

circuit

devices rogram. CE manufacturers’ innovations relating to compression, to relating playbackinnovations , trick play, , to certify their devices using the CTK ication was valuable to CE

(IC),

ated its technologymoreinto than one via the h and development to innovate in the area of s (“CTK Kits Test Certification developed DivX s technology technology

and original equipment manufacturers. to play DivX files. This testing matured into the to play DivX or files USB, DVD, CD, (on DivX DivX easy easy pos - sible and is the foundation of streaming

12 needs access

s SDK in the DivX SDKs through

to determine whether they could —

. made video in

drive DivX DivX

-car video device, DVD

manufacturers, who could use

n by consumer demand— also vices could play DivX ensured that its video delivery s .

billion billion

to consumer various DivX DivX various COMPLAINT

DivX DivX video

Blu ”) for ”) for -

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shows and movies directly onthe [has] service, Netflix launchedits streaming video platform. 10 9 8 7 1710k.htm https://www.sec.gov/Archives/edgar/data/1065280/000106528018000069/q4nflx20 6 launched its video streaming business, DivX fact, companies, including Netflix, interested in launching video streaming services. In internet delivery of TV shows and movies.” original series, documentaries andfeature films.” enjoying more than 140 million hours of TV shows and movies per day, including networkwith over117million streaming member II. DivX, but ultimatelydid not reach any agreement through their discussions. whethe discussed Netflix and business) and Netflix engaged in discussions relating to DivX’s technologies. DivX

Id. Id. Id. Netflix, Inc., 2017 10 -K,

Id.

N added increasing amounts of content that enable consumers to enjoy TV 58. 56. G. 59. 57. Netflix etflix expressed early interest in DivX’s technologies. Before Netflix

Netflix began in 199 DivX’s internet video technologies attracted the interest of many Industry Interest in DivX’s Technologies In 2007, Reed Hastings, Netflix CEO, stated CEO, Netflix Hastings, Reed 2007, In Today, has has “ Netflix claims that developed available at r Netflix would license or purchase technology from an ecosystem for internet-connected screens and ir internet 7

as a DVD-by a as 10 - it is “the world’s leading internet television

-connected screens.”

- 7 Networks

Since the launch of - 6 mail service. ships in over 190 countries

It claims tobe“

( the DivX predecessor DivX the

“ We named our 9

In In 8

its streaming 2007 a pioneer in the

COMPLAINT , Netflix Netflix ,

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anywhere, anytime, onthousands of devices.” many devices. For example, Netflix touts that itenables https://help.netflix.com/en/node/101653 -cc1a netflix?qid=f0f8ab80 14 13 1710k.htm https://www.sec.gov/Archives/edgar/data/1065280/000106528018000069/q4nflx20 12 11 the time isright for Netflix to take the first step. movie as a means of movie delivery represented the future, first as a means of improving service and selection, and th company Netflix in 1998 because we believed internet- streaming connected device that offers the Netflix app, including smart TVs, game consoles, software allows you to instantly watch content from Netflix through any internet- by using the Netflix application. distribution network. Users can access servers, and distributing that content to many diverse devices through its and operating systems.

-faaster https://www.slideshare.net/yunongx/going https://help.net https://help.netflix.com/en/node/412 https://www.zdnet.com/article/netflix-watch

60. 61. watching will take a number of years due to content and technology hurdles,

media players, set- .

Netflix Netflix The Net The flix.com/en/node/412 strives to deliver an ecosystem deliver to strives thatis easy touse and flix streaming ecosystem includes numerous playback devices

Netflix operates this ecosystem by hosting video content on -4ef4 . top boxes, smartphones, and tablets.” ” “ -

While mainstream consumer adoption of online 14 a884

-b55dd8dc213e&v=&b=&from_search=10 . 10 2017 Inc., Netflix, ; and playbackvideo content ontheir devices

. 14

12 -movies-

” Further, “ 11

- functions based movie rental on

members to “watch -your Netflix streaming K, -K, - as - pc/ - available at available a-service 13

COMPLAINT supports -at

- ; en en

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available through television set- cable, satellite, and telecommunications operators to make Netflix’s service and service on consumer electronics devices preloaded with Netflix. 18 17 16 1710k.htm https://www.sec.gov/Archives/edgar/data/1065280/000106528018000069/q4nflx20 15 personal computers. players, smart TVs, game consoles, Blu -ray players, smartphones and tablets, and available on those consumer devices. with other consumer electronics device manufacturers to make Netflix’s service

https://devices.netflix.com/en/recommendedtv/2018/ Id. https://devices.netflix.com/en/ Netflix, Inc., 2017 10 -K,

62. 63.

Netflix actively encourage actively Netflix N etflix employs storage, consumer devices. Netflix has successfully pursued agreements with 17

Netflix further recommends, directly toconsumers, certain available at top boxes. .

16 transcoding,

- s Those products include streaming media

15 theinstallation and use of

Netflix also has entered agreements

and distribution techniques to to techniques distribution and 18

its application application its COMPLAINT

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bitstreams.” States 22 21 standards- 20 simplified- complex- 19 optimize delivery of content movies at the best possible quality.” video and continuous streaming. Netflix aims“ encoding technology best encoding technologies so t existing and upcoming video codecs and encoders. [It]

https://medium.com/netflix https://medium.com/refraction-tech Id. Id.

, 65. 64. including to countries with slowe

an 21 -adaptive Netflix Netflix Netflix Netflix

According to Netflix, it is “regularly evaluating the performance of stuff has claims ” -streaming- “ to transform our video content into compressed expanded its servicesmany to countries beyond the United -that that at maximumquality and speed. -techblog/performance - happens hat you can savor our content.” it provides efficient provides it compression for high -quality perspective 20 -everything/how

It claims -every -

r wiredand wireless networks The . 16

- -time d45d0183ca95 to serve your favorite shows and to do - you -comparison this by - - netflix-works - select hit -play 19 . using [s]

22 -3a40c9be254b the freshest and

-of “the video

- video- -coding the COMPLAINT - hugely .

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at using operators using at get to 200 kilobits for an amazing picture. So we we megabit, you get incredible picture qualityon a four and five the United States. around the world, on the [video encoding] side network servers, on relationship with the service. laptop, on the TV is just instant, there want to make buffering . . . . We 1710k.htm https://www.sec.gov/Archives/edgar/data/1065280/000106528018000069/q4nflx20 25 24 challenges.aspx 23 remember dial explained compression todeliverserviceits without “buffering.” bandwidth restrictions of these networks require Netflix to provide efficient video streaming, which allows dynamic switching among video streams of different we mitigate internet service providers on the transfer of data over their networks)

- https://www.fool.com/investing/2017/03/18/how Netflix, Inc., 2017 10 -K, Id. ’ ’ re down in somecases to 300 kilobits ve done is invest in the codex [sic],

67. 68. 66. s

the potential trouble from data caps with encoding technology: “ how Netf how .

Netflix operates encoding servers and a Netflix Netflix Additionally, concerned with data c - up internet . . . now that seems like such a relic. Well, that’ .

’ 25

bandwidth.

lix wants to address this issue: the interconnects with different [internet providers] service touts that an advantage of its technology isadaptive bitrate available at ” 23 ” 24

’

re investing very heavilymany at levels, on the ’ s no delay and then that really changes your

- the video encoders, so tha

and we and

so thattheexperience mobile, on on aps ’ ’ re getting more re hoping someday tobe able to “ [s]ome of

netflix (restrictionsimposed by content delivery network in

CEO CEO -addresses Reed Hastings -inch screen. Now, you are old enough

and more effici t at a half a

, Netflix Netflix , - its COMPLAINT - toughest s w What hat we we hat ent ent - to

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device partners. technology tosatisfy the requirements of both Netflix’s content suppliers and its improving our members’ focus on a programming mix of content that delights our members. providers. competes for this content against both other video providers and other content entertainment sources by offering superior technology and superior content. 32 31 30 1710k.htm https://www.sec.gov/Archives/edgar/data/1065280/000106528018000069/q4nflx20 29 primary 28 27 https://en.wikipedia.org/wiki/Adapt optimizer streaming- https://medium.com/netflix standards- 26 content that users want to watch. qualities if bandwidth or performance capabilities change during playback. copyrighted material.

https://news.microsoft.com/2010/05/25/netflix https://medium.com/netflix Id. Id. Id. Netflix, Inc., 2017 10 -K, https://help.netflix.com/en/node/395

71. 70. 69. -drm

-a 31 an 4b9464204830 .

perceptual -adaptive -technology Netflix’ssuccess depends ondifferentiatingits service from other Netflix depends on the ability toobtain rights to and produce video Netflix Netflix 28

relies upon DRM 27 -streaming- -

video-encoding- Indeed, - -for

experience by expanding our streaming content with a ; https://medium.com/netflix- -techblog/optimized available at netflix -techblog/performance Netflix Netflix 29 perspective

It explains that “ ive_bitrate_streaming -ready

software for authorizing the playback of .

- has said optimization

-devices-

- d45d0183ca95 -shot t -taps hat and [w] -comparison -based it -framework -microsoft- depends upon DRM -applications/ techblog/dynamic e are continuously .

-encodes ; -e19f1e3a277f -of playready

” - - 30 video- -coding . - now

COMPLAINT Netflix -

-as 26 32

-its ; -

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secure decryption without decoding. im ’673the patent isdirectedto a diverse device ecosystem and provide high- with secure encryption and decryption, allowing Netflix to both offer its service on video to a diverse array of consumer devices while protecting the video conte Application No. 60/420,500, filed on October 23, 2002. files the namedinvent from a patent application filed July 8, 2003, with Eric W. Grab and Adam H. Li as Compressed Digital Video,” was duly and legally issued on November 13, 2007, I. Patents, each described below. patent, 1:46 patent, be very large and therefore difficult to transmit over networks.

techniques encryptingand decryptingfiles the 2:9. while also limiting the resources consumed during video decryption . device. needed to play back video and 3:39

proved, Video files must also be secure to protect the content, which requires -50. “reduce[s] the bandwidth required to transmit digital video.” See, e.g. 75. 74. 73. ’ The 72. The ’673 pate

more efficient streaming of encrypted video to any device, providing require a significant amount of processing power. - 673 Patent 49. But therea But tradeoff is 49. The ’673 patent addresses recited inventions in theThe ’673 patent enable Netflix to stream The ’673 patent, entitled “Method and System for Securing DivX solely owns all rights, titles, and interests in and to the ors. The ’673 patent claims priority to nt explains that a need existed for providing adequate security

a partial frame encryption architecture that enables THE DIVX PATENTS DIVX THE

increasing the cost and complexity of —furtherincreasing the processing power

—modern compression

- a technical problem

quality video content.

U.S. Provisional Provisional U.S. .

, e.g. See, and decompression igital

Compre

Specifically, video video

the playback See, e.g. COMPLAINT ssing those those ssing id.

DivX files can at , ’673

1:6 nt , id. 3 -

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Provisional Application No. 60/611,513, 2005 filed 20, on September with Cheng Hu Cheng with legally issued on March 20, 2012, from a patent application filed May 26, 2010, II. well not reducing processing resources consumed during decryption encrypted frames for Claim of 1recites solution novel a produce a protected stream of compressed video content. ’673 patent, claim 1. using a frame encryption key and generating frame decryption information to See, e.g. “frame decryption information necessary to decrypt the set of encrypted frames.” sequence framesof in accordance w set of encrypted frames “by encrypting selected parts of selected frames of the specifically compressed digitalvideo To overcome this problem,“deblocking a filter” can be used by the computing i video to make itsmaller comes with the downside of potentially losing visual deblockin video. Specifically, ’651 the patent is directed to a multidimensional adaptive stream high quality 4K streaming video experience.

nformation

77. 78. ’ The 76. 80. 79. - , understood,routine, conventionalor at the timetheof ’673 patent.

id. g filter that allows for more efficient compression, creating a higher , selective partial frame encryption. T -resolution 4K content with smooth playback and without flaws in the 651 Patent

and degrading the quality of playback. at In particular, claimof the 1 ’673 patent recites The ’651 patent, en The ’673 patent claims The ’651 patent addresses The inventions recited in the ’651 patent allow Netflix’s users to

3:59 ang as the named inventor. The ’ - 63; frame-based encryption

see also 3:66 content that requires less processing power to decrypt— titled “Video Deblocking Filter,” was duly and synchronizing decryption informationwith ith a frame encryption function” and generating specific ways tosolve this problemwith - 4:2

a technical problem.

20 ;

5:25

to provide secure digital video while -32. 651 patent claims priority to he ’673 patent describes creating a

See, e.g.

, generating, storing,a in ain manner thatwas Compressing digital ’651 patent,1:27 -

. COMPLAINT

Id. U.S. secure secure -

34 nd nd .

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quality. system could make the image quality worse, not better. See, e.g. existed, and if the wrong one was applied efficiently selecting the appropriate deblocking filter to apply is critical. 1:67 v using a computing system and selecting the appropriate deblocking filter to apply improved methods of inspecting a boundary of a block of video data in a frame produce t produce they improve the user experience by reducing delays in loading and playing a video video streaming users expect, enjoy, and use to navigate digital video easily, and named inventors. 2005, with Abou Ul Aala Ahsan, Steve R. Bramwell, and Brian T. Fudge as the and legally issued on June 25, 2013, from a patent application filed October 24, III. routine,conventionalor at the timetheof ’651 patent. improve the visual quality of the video in amanner that was not well- Claim 1recites a novel solution for m adjacent to the block boundary,” and selecting the appropriate filter. Id. of the block boundary and includes at least one pixel that is not immediately multiple columns “that encompa boundary, analyzing the boundary by inspecting pixels frommultiple rows and

ideodata itself

-2:3. Selecting the appropriate filter to apply toa given video frame 81. 84. 83. ’ The 82. whenreconstructing compressed digitalvideo toproducebetter image See, e.g. he best visual result based on that data

Accordingly, a need existed for an improved method of accurately and 792 Patent The ’651 patent claims The inventions recited in the ’792 patent enable playback feature The ’792 patent, entitled “Multimedia Distribution S In particular, claimof the 1 ’651 patent recites . ,

id.

1:29 - 34. 34. However, multiple types of deblocking filters ss pixels immediately adjacent to at least two sides specific ways of solving this problemwith ore efficiently processing digital video data to -

by the computing system

See, e.g.

, , id. id. identifying a block

at based on the digital

1:48

7:65 ystem,”was duly

, the process -49; -8:5 understood, COMPLAINT

, therefore, at 1:60 ;

8:38 claim 1. - 63; s that -43.

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computing issues associated with complex video files. novelindex structure thatsolves the technical problemsresourceand index. the computing resources, and associated delays, required toobtain andprocess the improved index structure that can enable desirable playback features while reducing and systems for generating, distributing, and decoding multimedia files with an Accordingly, rewind. and a need exi sted for an improved multimedia file format the user from using desirable technical playback features like seeking, fast-forward, consuming and either delayed the start of video playback for the user or prevented complex, in the multimedia file like video,was a multimediaa file that increased nal at theconventio time of the ’792 playback features in amanner that was not well- solution for more efficiently processing multimedia files to enable desirable chunk an abridged video index that improves the user playback experience by enabling when itisselected bythe user. Specifically, the scenes. like starting video immediately and the ability tofast forward, rewind, and skip 48:21 ; 16:36 improved playback configured to generate an “abridged index,” enabling trick playfunctionality and

86. 85. 87. based adaptive bitrate streaming,“trick play,” and “fast start” functionality.

See, e.g. .

the size of this index and the computing resources needed to process it

The process of obtaining the index therefore was time - The ’792 patent claims a solution to this The ’792 patent addresses In particular, claimof the 9 ’792 patent recites 49:42 transmitted over the internet with a single , id. . This technical solution enables desired video playback features within the the within

at 16:16 at

. As internet multimedia becamemore sophisticated comprises a memory including “a full index” and a processor ; 48:21 -29; video paten file

- - a technical problem. 37. .

22 Id. t.

claim 9. ’792 patent is directed to to provi directed is patent ’792 understood,routine, or problem

See, e.g.

Claim recites a 9 index for all the content

an encoder for encoding Originally, multimedia,

with , ’792 patent, - and resource and

an improved, - intensive COMPLAINT novel and

15:10 - ding ding

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security of digital content compared to the prior art. keysassigned tousers specific user multiple levels of content encryption, including encryption keys assigned to a decoding and playing back secure content on a variety of playback devices using without involving themanufacturers of streaming. content security by bind 60/782,215, filed on March 14, 200 inventors. The ’920 patent claims priority to Russell, Fran Yee cis 2015, from a patent application filed February 18, 2014, with Eric W. Grab, Chris Scheme Including Trusted Systems,” was duly and legally issued on November 10, IV. See, e.g. protected to make sure that only those people who have paid for itcan access it. video content. ’ The inventions also allows Netflix to obtain and offer its users a library of high- streaming device ecosystem. Specifically, the content security provided by the ’920 content se 44. Accordingly, content providers needed a way tocontrol access to as few others as possible in devices that playback video,c but users tounlockthecontent.

91. 90. 88. The ’920 89. ,

’920 patent,1:25 curely tomany different devices, supporting a large and diverse

The ’920 patent The ’920 patent addresses The ’920 patent, entitled “Federated Digital Rights Management The inventions recited in the ’920 patent allow Netflix to deliver video account

Patent 920 patentis directed a to - . Dug Chan, and Michael George Kiefer as the named

See, e.g. adds an additional level of security that improves the

ing active encryption keys toa —including the device manufacturers. -29.

See, e.g. solves ,

This can be done by issuing “keys” to authorized id.

at 6.

this ,

ontent providers want to share their keys with 6:14

id.

- a technical problem playback devices.

problem 23 at

28; 10:44 28;

1:29 -

U.S. Provisional Application No. DRM 31. -31.

with -

Those keys can be incorporated See, e.g. architecture that enhances 11:27 systems and methods for secure secure allowing user,

. .

Utilizing encryption encryption Utilizing D , id. igital

See, e.g.

at 10:44 at

content mustbe digital COMPLAINT , id. -11:27. quality

at content

- 1:34

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have different characteristics and technical capabilities for video playback. See, players, television, and set - video delivered over the internet, including computers, mobile phones, Blu-ray , e.g. . . . inreal time and adjusting the quality of the streamedmedia accordingly.” See, streaming or adaptive streaming involves detecting the present streaming conditions bitrate streaming,” a popular digital video streaming method . “Adaptive bit ra bitrate streaming. device that the playback device uses to request a streaming file, improving adaptive automatically generates a top-level index file tailored to a particular playback device. switching among video streams of different resolution during playback on a user’s adaptive bitrate streaming services that perform smoothly and wit playback device on which an active user encryption key isstored. Id. and decrypting encrypted content with multiple levels of encryption The method priority Wallin, and Ederson Ferreira as th 2016, from a patent application filed July 21, 2014, with Jason Braness, Evan Generating Top Level Index Files,” was duly and legally issued on February 23, V. the time of the ’920 patent. digital content in a manner that was not well-

specific

’720 patent,1:30 95. 94. 93. The ’720 92. Specifically, the ’720 patent is directed to a playback server system that

to to theuser.

U.S. Provisional Application No. 61/529,403, filed on August 31, 2011. includes includes The ’720 patent addresses The inventions recited in the ’720 patent enable Netflix to offer The ’720 patent, entitled “Systems and Methods for Automatically In particular, claim 1

Patent

Claim 1recites a novel solution for improving the security of decrypting the content using the active using content the user encryptiondecrypting key, -45.

Many different types of consumer devices can play back

top boxes. See, e.g. e named inventors. The ’720 patent claims of the ’920 patent recites

- a technical problem

understood, routine, or conventional at at conventional or routine, understood, , id.

at 9: at 1 -8 . All of these devices

related“adaptive to a method of decoding hout stallswhen

using a a using

at at COMPLAINT claim 1. te te

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methods for automatically generating a top criteria specific to the playback device, to generate a top- patent describes filtering the streams associated wit device id. playing backvideo . characteristics files for different playback devices for adaptive bitrate streaming based on device Accordingly, a need existed for an efficien would produce poor playback, including video stalls, on many devices. infeasible. Further, using the same index for devices with different characteristics separate index for each combination of content and device make such a system content.” and subtitles) that can be utilized by the playback device to stream and playback of container files c at 1:3 at , e.g. piece of video content that a user will watch using adaptive bitrate streaming. See, or other rules defined by the content owner. See, e.g. based on playback device capabilities, information associated with the user account, , e.g. among different quality streams based on changes in device conditions. the complexity of digital video delivery by enabling the playback device to switch generate server system then sends the top adaptive bitrate streaming

at at id. id. 2:24 0 96. 97. - and particular video content for use in adaptive bitrate streaming. The ’720

4 at 12: at at at 5 a

, e.g. See, - ; 12: 7:55 top 28. The “top level index is a file that describes the location and content The ’720 patent claims a solution to In particular, claimof the 1 ’720 patent recites 20 level index file index -level 20- in order to improve the performance of the computing devices - 62 - 4 31 0. The computing resources needed to compile and maintain a ; 11: ontaining streams of media (for example, id.

. Each playback device needs a separate index file for each

at 46

6:39 -66; 12: for improved performance -

43. The playback server system filters the streams for adaptive bitrate streaming tailored to a spec - 2 level indexfileto the playback device 0 -31 . Adaptive bitrate streaming further increases -

t system toautomatically generate index -level indexfilefor a particular playback

this h requested content using , .

problem id.

at at level indexfile.

6:50

a specific way to audio, video,metadata,

with - 55. The playback

systems and COMPLAINT

for usein See, e.g. , e.g. See, ific , id.

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playback device device, index file on technicalcapabilities of device. switching among video streams of different resolution adaptive bitrate streaming services that perform smoothly and without stalls when U.S. Provisional Application No. 61/529,403, filed on August 31, 2011. and Ederson Ferreira as the named inventors. The ’515 patent claims priority to from a patent application Generating Top Level Index Files,” was duly and legally issued on June 12, 2018, VI. patent. that was not well - solution for improving the performance of adaptive bitrate streaming ina manner bitrate streaming. device that the playback device uses to request a streaming file, improving adaptive automatically generates a top-level index file tailored to a particular playback 11:65 corresponding technical capabilities. for a diverse device ecosystemwith many different kinds of devices and addresses methods for automatically generating a top

the device”

- 99. 98. The ’515 100. 101. 12:16; 12:40 12:16;

which Specifically, the ’515 patent is directed to a playback server sy

based oncapabilitiesthe of device, the corresponding technical corresponding the problem related to adaptive bitrate streaming

The inventions recited in the ’515 patent offer enabl to Netflix e The ’515 patent, entitled “Systems and Methods for Automatically The ’515 patent shares a specification with the ’720 patent a The ’515 patent claims a solution to the —for more efficient adaptive bitrate streaming specific to the can

. Patent

Id.

understood, routine, or conventional at the time of the ’720

use the index the use - 60

; claim 1. The playback server system generates the top-

see also supra a particular playback device. filed January 28, 2016, with Jason Braness, Evan Wallin, “to determine which assets to request for playback

See ¶ 95. ¶ -

26 , , e.g.

-level indexfilefor a particular playback

and sends

’515 patent,1:

problem Claim 1recites a novel during playback on a user’s the index 30

with -45; 8:2- to theto playback

systems and COMPLAINT stem that

9; 9:17-2 nd thus thus nd level 3 ;

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attributes, device for use in adaptive bitrate streaming, based on the device’s specific ¶ playback device. Id. VII. at the time of the ’515 patent. bitratestreaming ain manner thatwas not well- device. bitrate s device, and sends the index to the playback device indexfile based onthetypethe of device and software versionloaded the on generate a top 19, 2019, from a patent application 2017 filed6, June Material Transport Systems and Methods,” was duly and legally issued on February securi December 2009 4, patent claims priority to Kourosh Soroushian, and Andrew JeffreyWood as the named inventors. The ’ security. deciphers fra Specifically, the ’486 patent is directed to a content security architecture that from content providers and to trust in the security of its own, home digital providers need to make sure

96.

ty of its video streaming system, allowing it to obtain high 102. 103. ’ The 104. 105. content.

Claim 1recites a novel solution for improving the performance of adaptive treaming specific to the technical capabilities of a particular playback

including including

486 Patent In particular, claimof the 1 ’515 patent recites a specific way to The ’486 patent, entitled “Elementary Bitstream Cryptographic The inventions recited in the ’486 patent enable Netflix to improve the The ’486 patent addresses me keys within a secure video decoder -level index file for adaptive bitrate streaming tailored to a spe

See, .

e.g. the the at at claim 1. The playback server system generates the top-

, type U.S. Provisional Application No. ’486 patent,1:31 -

that of device

only authorized users can .

- a technical problem See, e.g. See,

35.

This is a particular problem when the understood, routine, or conventional , id. —for more efficient adaptive , efficiently enhancing content

at 11:40 at , with Francis Yee Francis with , 61/266,982 . It explains that content access access -46; -quality content see alsosee supra and play back

-grown content. , filed on COMPLAINT Dug Cha -Dug cific cific level 486 n, n,

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unsecured connection digital content See, e.g. the data is at the decoder and no longer being multimediathe data, andnot deciphering those keysto decrypt themultimedia until 5:29 securethe databeing transmitted via th , e.g. security and enable efficient distribution and playback of multimedia content. See, transmit “encrypted multimedia co users. content is transmitted over connections that are not secure 6:53 component or process intercepts the bitstream.” See, e.g. bitstream isprotected even if the connection is compromised and an unauthorized Cryptographic Keys,” was duly and legally issued on March 5 Back Alternative Streams of Content Protected Using a Common Set of VIII. conventional at the time of the ’486 patent. with problem of enhancing multimedia content security by deciphering frame keys they are deciphered on the device. Id. the encrypted portion of each partially encrypted fr key” for a partially encrypted video frame onthe playback device,

at -40 -7:5. secure vi secure a in id.

claim 1. 106. 107. 108. The ’ The

. at ,

The inventions accomplish this by ciphering decryption key information in

id. As a result, “by allowing the decryption to occur on the decoder the

1:28

588

at The ’486 patent claims a solution to this In particular, claimof the 1 ’486 patent recites “deciphering a frame The ’ The

That is, the keys necessary todecrypt the video are protected until

- to e 1:53 29.

Patent deo decoder in a manner that was not well- 588 nhance security of content

The ’486 inventions “ inventions ’486 The - 59. ,

patent, entitled “Playback Devices and Methods for Playing while enabling efficient access to the content for the correct

Accordingly, a need existed to improve

ntent over an unsecured connection” to improve The invention recited in claim 1solves the e unsecured connection.” connection.” unsecured e -

28 do not do secure the transmission but rather

that may be transmitted over an transmitted. ame basedupon the frame key.” problem , id.

, e.g. See, and and

understood, routine, or or routine, understood, at

, 2019, from a patent with

can be intercepted. 5:37 the See, e.g.

and “decrypting

specific ways to - distribution distribution id. 40. COMPLAINT ;

see alsosee -

H.265 (HEVC) Standard at 185 185 at Standard (HEVC) H.265

COMPLAINT

. 64

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67 66 65 wheth part of the level of detail to determine whether to apply strength is greater than zero, then four conditions are also computed and checked as apply a strong deblocking boundary. Then boundary. TU(transform or boundary unit) unit) (prediction PU ona operate to whether boundary and includes at least one pixel that is not immediately adjacent to the block encompass pixels immediatelyadjacent to at least two sides of the block boundary multiple rows and multiple columns of the reconstructed video frame that conditions are based on calculations froma region that includes pixels from block boundary boundary and includes at least one pixel that is not immediatelyadjacent to the frame that encompass pixels immediately adjacent to at least two sides of the block includes pixe frame across a region inwhich the block boundary islocated, wherein the region (HEVC) Standard. (HEVC) outlined in step boundaryfiltering strength,which contributes tothelevel of detail, is and at least one pixel not immediately adjacent to the block boundary encompass pixels immediatelyadjacent leastat to multiple rows and multiple columns of the reconstructed video frame that determining the level of detail by considering a region that includes pixels from

Id. at 1748 Deblocking (HEVC) H.265 (HEVC H.265

at 1748. er 172.

to use . 67

Netflix “determin[es] the level of detailreconstructedof the video ls frommultiple rows and multiple columns of the reconstructed video

the normal or strong version strong or normal the .” .”

ing deblock the 6 of the boundary filtering strength is determined, ) Standard at 185- The The 65

The The H.265 (HEVC) H.265 boundary filtering strength calculation first identifies

filteror normal deblock ing 87.

filtering algorithm filtering

-49. Standard -

. - 66

The four See images below. four The

requires a deblocking filter two sides of the block boundary

filter ,

as a deblocking filter and and filter deblocking a

specified in the H.265 the boundary boundary . Ifthe to decide wheth to er

. determined as COMPLAINT The The

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COMPLAINT

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tests its service using various playback devices. 69 68 involved in such determination is An adjacent to at least two sides of the block boundary. Column 3pixels are not. releases of the application and service remain compatible with CE de use the service. It further ensures that iterative versions, updates, and subsequent Netflix to ensure that the largest ecosystem of CE devices possible may seamlessly critical to ensuring the success of the Netflix streaming serv of detail, for example, filter to apply toeither side of the block boundary based upon thedetermined level f normal the between selects filter deblocking (HEVC) H.265 side of the block boundary based upon the determined level

Id. Id. illustration of the multiple rows (row 0 & 3) and multiple columns (cols 0 & 3)

at 1749. 175. 174. 173.

Upon information and belief, testing Netflix- Ne Netflix “select[s] a filter to apply topredetermined pixels on either

tflix directly infringes at least claim 1, least at as described, when it

boundary strength shown below -

56 and the four conditions four the and

Column 0 compatible CE devices is ice. Testingallows of detail”when the pixels are immediately ilter and ilter . 69

vices.

COMPLAINT the strongthe

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178 claim importing the Accused ’651 Infringing Products, ’651 patent in the United States bymaking, using, offering for sale, selling, and/or experience with more efficient compression and reduced bandwidth requirements. adaptive deblocking filter that allows for a higher Complaint, Netflix knows that the ’ with greater quality and patent devices that, when used as intended, practices the method recited in claim 1. and specifically intends to provide an application and service for CE playback video fr usingappl its icationand serviceas intended — specifically intends that its end users practice the method reci wrongful acts in an amount subject to proof at trial. DivX, and DivX is entitled to recover by reference as though fully set forth herein. bymaking, using, offering to sell, selling, and/or importing into the United States

- 180,

1 of the ’651 176. 177. 179. 178. 180. 181. 182. 183. 184. allows its ENT OF U.S. PATENT NO. 8,472,792 PATENT U.S. OF ENT INFRINGEM III: COUNT ame,describedas inparagraphs 168-171.

in violation of 35 U.S.C. § 271( § U.S.C. 35 of in violation

Netflix has infringed, and continues to infringe, at least claim 1of the Netfl At least as of the date of this Complaint, Netflix knows that it provides At least as of the date of this Com At least as of the date of this Complaint, Netflix knows and Netflix’s infringement has caused and continues to cause damage to The allegations of paragraphs 1-181 Pursuant to 35 U.S.C. §282, the ’792 Upon information users to stream high-resolution content with smooth playback and ix has patent, efficiency. Specifically, as least as of the date of this induced

at least in the exemplarymann er described in paragraphs and belief, Netflix directly infringes the ’792 patent ,

and continues to induce to continues and 651 patent is directed to a multidimensional damages sustained as a result of Netflix’s -

57 b

)

. -

namely, deblocking a reconstructed plaint, Netflix knows tha

in violation of 35 U.S.C. § 271(a). - of this Complaintare incorporated quality streaming video patent is presumed valid.

infringement of at least ted in claim 1, when

COMPLAINT t thet ’

651

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79384f525367 70 the “Accused ’792 Infringing Pr its Netflix service, which provides a multimedia distribution system (collectively, described directly infringe at least claim 9of the ’792 patent at least in theexemplary manner patent claim recites. 9 withat le each encoded video frame.”Netflix produces multimedia files, such as MP4 includes information indicative of the location within the file and characteristics of containing at least one sequence of encoded video frames and a full index that confirms: and other titles using computers with processors, as the Netflix Tech Blog

https://medium.com/netflix 186. 185. 188. 187. ast one sequence of encoded video frames stored in media data, or “mdat,” 70 in in

paragraphs Netflix provides an encoder for encoding amultimedia file, as ’792 Upon information Netflix’s encoder further comprises “amemory including a file Netflix’s encoder comprises “a processor.” Netflix encodes movies .

186 - 191 -techblog/netflix- and belief, the Accused ’792 Infringing Products oducts”).

below. -

at - aws -re -invent - 2017

- COMPLAINT

files,

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71 andtrun boxesare below. the mdat box referenced by the traf box. Th a track run (“trun”) box, which is a complete index to the location of each frame in traf box contains size information for each track fragment. A traf box also contains information describing a sequence of video frames contained within an mdat box. A contains a number of track fragment, or “traf,” boxes that each contain index characteristics of each encoded video frame.movie A fragment box (or “moof”) include that index full boxes. boxes.

ISO/IEC 14496 ISO/IEC

Netflix multimedia files (for example Upon informationand belief, 12 at 56 at -12 s information indicative of the location within the file and 71 -

58.

Netflix multimedia streams contain mdat -

e ISO/IEC definitions of the moof, traf, - ,

MP4

files) also include at least one

COMPLAINT

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72 file and characteristics of each e frames and a full index including information indicative of the location within the the moof and mdat boxes, which collectively contain a sequence of encoded video assembler builds a multimedia in memory toprocess them. Upon information and belief The moof and mdat boxes are provided to the video assembler, which stores them frames. references a subset of the encoded video frames in the sequence of encoded video segment containing a moof box and a following mdat box, as shown below. of encoded video frames. The sidx box is an index pointing to the location of each abridged index that refere a subsegment index box (“ssix”), either of which can be considered to be an encoded video frames. The Netflix video contains a segment index box (“sidx”) and index

Id.

at 105,228. that references a subset of the encoded video frames inthe sequence of 189. ” Netflix multimedia files (for example

Netflix’s processor “is configured to generate an abridged index that

nces a subset of the encoded video frames in the sequence

file, and it stores the file in memory containing all of ncoded videoframe. -

, MP4

files) include an abridged , the Netflix video video Netflix the ,

COMPLAINT 72

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within the sequence of encoded video frames contained file. the within contained within the sidx box is a subset of the encoded video frames contained segments (namely The sequence of video frames in the mdat box contained within 73

Id.

at 56.

, moof, and following mdat box) pointed to by the abridged index -

eachthe of video

COMPLAINT 73

The ssix

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video assembler. frames contained within each of the individual video segments received by the moof and following mdat box), which is a subset of the sequence of encoded video and a full index.” The video assembler including the abridged index, the at least one sequence of encoded video frames, the location of the second frame inthe mdat box of each vide within segments. Upon information and belief box also includes an abridged index that is an index to the locations of subsegments with the sidx box or ssix box to locate ot box of the located video segment. The trun box can also be used in combination theof located video segment can be used to locate the first I contains an I moof box and following mdat box) corresponding to a particular playback time that functional videosequence. The trun box, sidx box,and thessix enable box trick play content that an encoder encodes without reference to any other frames within the corresponding to a specific playback time.An I in the trun, sidx, and ssix boxes enables a playback device to seek to an I boxes), and the full index (trun boxes). described in the previous paragraph), the encoded video segments (moof and mdat MP4 enable tric video frames, and themultimedia file contains the first and second indexes that abridgedindex islocatedwithin themultimedia file prior totheser play functionality. to the series of encoded video frames, the first and second indexes enabling trick

file) that contains the abridged index (either the sidx box or the ssix box, as 190. 191. ity because: (1) the sidx box is used k play functionality (for example

-frame, (2) and either the ssix box or the trun box within the moof box Netflix’s processor is further configured “to encode a multim Further,“the abridged index is located within the multimedia file prior

” Netflix multimedia files (for example

- encodes a multimedia file (for example

her frames within the mdat box. 62

, seeking). This is because each element -

, the ssix box includes a reference to to locate a video segment (namely -frame isa single frame of digital , MP4 -frame within the mdat o segmeno

files) show that the

iesencoded of COMPLAINT t (namely -frame edia file edia ,

an , ,

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74 specific mdat box. Once Furthermore, the ssix box can be u playback at the new playback location. video frommdat the box can be extracted and provided to a decoder to commence tests its service using various playback devices. releases of the application and service remain compatible with CE dev use the service. It further ensures that iterative versions, updates, and subsequent Netflix to ensure that the largest ecosystem of CE devices possible may seamlessly critical to ensuring the success of the Netflix streaming service. Testingallows importing the Accused ’792 Infringing Products, ’792 patent in the United States bymaking, using, offering for sale, selling, and/or paragraphs 196- claim 15of the ’792 patent, at least inthe exemplarymann er described in functionality. enabling chunk- to providing an abridged video index that improves the user playback experience by least as of the date of this Complaint, Netflix knows that delays inloading and playing a video when it is selected by the user. Specific to navigate digital video easily, and they improve the user experience by reducing patent enables playback features that video streaming users expect, enjoy, and use

Id.

at 43, 59. 193. 192. 194. 195. 196.

Upon information and belief, testing Netflix- Net Netflix has infringed, and continues to infringe, at least claim 9of the Netfli At least as of the date of this Complaint, Netflix knows tha

203, based adaptive bitrate streaming,“trick play,” and “fast star flix directly infringes at least claim 9, least at as described, when it x has induced, and continues to induce, infringement of at least in violation of 35 U.S.C. §271(b).

the location of a frame isidentified, individual frames of sed to directlylocate thefirst I 74 -

in violation of 35 U.S.C. § 271(a).

the ’792 patent is directed compatible CE devices is -frame w

COMPLAINT ices. t thet ’792 ithin a

t” t” ally,

at at

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p%20browser https://help.netflix.com/en/node/101653?ba=SwiftypeResultClick&q=install%20ap 75 devices that, when used as intended, and specifically intends to provide an application and service for CE playback device with a processor, a multimedia streamed from Netflix’s server, as its website shows and instructs. comprising at least one video track and at least one audio track. namely, the CE playback device serves as a decoder for decoding multimedia service infringe claim 15, when enabling the application and service as intended— specifically intends that CE playback devices enabling the Netflix application and processorconfigured todecodemultimedia.”

https://devices.netflix.com/en/ 197. 198. 199.

At least as of the date of this Complaint, Netflix knows that it provides At least as o The CE playback device enabling the Netflix application comprises “a .

f the date of this Complaint, Netflix knows and nd the nd

; applicationconfigures the processor todecode meets the limitations of -

The Netflix The

application runs on a

claim 15.

COMPLAINT

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streams contain mdat boxes. 76 complete index referencing each encoded video frame inthe sequence of encoded the processor to decode multimedia wherein the multimedia further includes “a video frames within a video fragment. memory contains at least a series mdat boxes, which, as discussed, contain encoded encoded video frames. The video streame encoded video frames.” The video that Netflix streams contains a sequence of the processor todecodemultimedia “wherein themultimedia includessequencea of

ISO/IEC 14496 ISO/IEC 201. 200.

The Netflix The The Netflix The -12 at 57.

applicat application, enabled on a CE playback device, configures

ion, enabled on a CE playback device, configures 76 -

Upon information and belief 65 d from Netflix and stored at the decoder’s

, Netflix, video COMPLAINT

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example contains the first and second indexes that enabl e trick playfunctionality (for multimedia file before the series of encoded video frames, and the multimedia file 77 frame inthe mdat box that follows the moof box containing the box also contains a trun box, which is a complete index to the location of each which contain traf boxes. A traf box contains size information of each traf. The traf video frames.” As explained, video streamed fromN functionality, as already described. box in combination with the sidx box, and/or ssix device to seek to an I an abridged encoded video is frames.” which box, sidx an As explained, contains video Netflix abridged index referencing a subset of the encoded video frames in the sequence of the processor to decode multimedia where the multimedia further includes “an video frames. complete index referencing each encoded video frame inthe sequence of encoded Netflix video streams contain multiple sequences of encoded video frames and a (for example play functionality.” Asdescribed in previous paragraphs, Netflix multimedia files from the located encoded video frame, the first and second indexes enabling trick the a processor “to locate a particular encoded video frame within the multimedia using sequenceencoded of videoframes.

Id. bridged index and to playback the sequence of encoded video frame starting

at 56, 58. 202. 203. , seeking) because each el

index that references a subset of the encoded video frames inthe , The Netflix The The Netflix The

files) show that the abridged index is located within the -frame corresponding toa specific playback time. The trun

application, enabled on a CE playback device, configur application further configures the CE playback device’s ement in trun, sidx, and ssix enables a playback

box etflix contains moof boxes, , enable trick play

trun box. trun

COMPLAINT 77

Thus, Thus, es es

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78 streaming over HTTP (DASH) over streaming wrongful acts in an amount subject to proof at trial. DivX, and DivX is entitled to recover damages sustained as a result of Netflix’s by reference as though fully set forth herein. including trusted systems (collectively, the“Accused ’920 Infringing Products”). its Netflix service, which provides a federated digital rights management scheme making,by using, offering to sell, selling, and/or importing into the United States directly infringe at least claim 1of the ’920 patent at least described encryption key isencrypted u encrypted using at least one frame encryption key, and the at least one frame includes frames of video and at least a portion of a plurality of frames of video are playback device on which an active user encryption key isstored, where the content Netflix in accordance with the MPEG keys including the active user encryption key of the content encryption key are each encrypted using one or more user encryption Encryption S cipher in accordance with the “cen Specification

See

ISO/IEC 23009 ISO/IEC 204. 205. 206. 207. 208. 209. COUNT IV: INFRINGEME IV: COUNT in in

paragraphs Netflix’s Netflix’s The allegati The Pursuant to 35 U.S.C. §282, the ’920 Upon information Upon information Netflix provides a “ tandard and Microsoft PIFF file format specification. is encrypted by encrypting portions of frames using the AES - infringement has caused and continues to cause damage to 1 (2014) Information technology 209 ons of paragraphs 1-204 - 218 sing a content encryption key, and one or more copies —Part 1: Media presentation description and and b and and belief, Netflix directly infringes the ’920 patent method of decoding encrypted content using a

below. c” scheme specified in the ISO Common elief, the Accused ’920 Infringing Products NT OF U.S. PATENT NO PATENT U.S. OF NT SH -DASH -

.” T .” S tandard

he videohe content distributed by of this Complaintare incorporated patent is presumed valid.

—Dynamic adaptive and

in in the the the exemplarymanner Microsoft . 78 9,184,920

Due Due COMPLAINT to to PIFF PIFF -CTR

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securing 79 Format (PIFF). File files; and Portable encoding of audio- systems technologies segment formats; ISO/IEC 23007-1 (2016) Information technology accordance with Netflix’s use of the “cenc” scheme topartially encrypt frames player or an ( application ona playbackNetflix device, using, for example involves use of an active user encryption key stored on the playback device. The process that Netflix uses to provide cryptographic keys to a playback device

ht tps://medium.com/netflix -communication-f16964b79642 a.

in, process isdescribed Message with the Securityin Layer (“MSL”) to encrypt and authenticate messages . authenticati T Master on, authenticate themselves to the Netflix servers. Following to the Master To ken. T Master Tok Master the form of what Netflix describes as session keys contained in a that involves the use of active user keys. The active user keys take Specifically,Netflix has developed its own authentication process

the the for example,

Microsoft —Part 7: Common encryption in ISO basemedia file format for Android or iOS), en, which become active when a user bound is ID token -techblog/message PIFF S PIFF

t he Netflix Tech Blog: Tech Netflix he video objects: The Protected Interoperable pecification, playback of video streamed by o obtain a session key, the user must -

. oken authentication session keys are used 68

involves decoding encrypted content. - , security a Netflix a Netflix’s authentication 79

-layer - provided web-browse of video in -amodern-take

MPEG —MPEG COMPLAINT

-on r -

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https://github.com/Netflix/msl/wiki/Entity b.

documentation, the repositoryhosted onGitHub, and, in accordance with Netflix’s is documented protocol MSL Netflix viaThe an Open Source Master Tokens -

- -Authent

are structured as f ication#master

-tokens ollows COMPLAINT . :

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Id.

encrypted using “secret keys” and is as follows: T he Session Data is contained within the Master Token and is -

COMPLAINT

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83 82

https://github.com/Netflix/msl/wiki/User Id.

d. e.

User ID token data is as follows: auth player, Netflix Where a user login and password is not explicitly requested by the be compromised.” these keys would allow communication involving master tokens to secret keysmust be adequately protected as unauthorized access to data unless they also have access to these [secret] keys. These master token session data or generate the master token verification Netflix also indicates that “[o]ther entities cannot decrypt the 82 entication is achieved using a u

- Authentication

ser ID token. token. ID ser

COMPLAINT

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Id.

the useridentity.” should be adequately protected to prevent unauthor data unless they also have access to these keys. These secret keys user ID token user data or generate the user ID token verification the user ID token verification data. Other entities cannot decrypt the issuing entity toencrypt the user ID token user data and generate The Netflix MSL specifies that “[s]ecret keys are used by the keys: the u ser ID token to the master ID token used to contain the session 84

Moreover, t Moreover, -

he masterhe

token serial number binds

izedaccess to COMPLAINT

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securing 85

https://medium.com/netflix -communication-f16964b79642 g.

Accordingly, the sessio communic failureof the u bo bound totheMaster Token , Token session key is no longer active. When a new user ID token is theeventIn that the u constitute an a within the Master Token and stored by the playback device not authenticate the user). In this way post as follows: as post user key again. The process is described in the Netflix Tech Blog und to aund u to ation via the session keys (in other words, ser ID token, then the session key becomes an active -techblog/message ctive userkey that isstored byplaybackthe ser ID tokenser authenticateto will cause suspensionof 85

ser ID token fails to authenticate, the Master - n keys are bound to a specific a and ID, user

. 73

- or a or Masternew Token isissuedand

- security ,

the session keys contained -layer -amodern-take

the server will COMPLAINT device. -on -

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See

VP9 in ISO Media File Format, https:// h. i.

fro CTR) encrypted usingthe Advanc streams encoded by Netflix for delivery via MPEG the codec used to encode the video, portions of each frame inthe encrypted using at least one frame encryption key of frames plurality a of of video portion a are “at least addition, In “ T whether the content is encoded using the H.264, H.265 H.264, the using encoded is content the whether track encoded as a plurality of video chunks). Irrespective of acco codecs, the conten the codecs, of VP9 co published by the open source WebM project regarding the storage also stored in accordance with an additional specification document frames of video. he content received from Netflix’s servers includes encoded m Netflix that includes an mdat box (namely, rdance with the Microsoft PIFF S mode ntent in the ISO BMFF

encryption cipher in accordance with the “cenc” ” t is stored in a The player receives a portion of an MP4 -

- ed Encryption Standard Counter (AES

www.webmproject.org/vp9/mp4/ n .

86 MP4

pecification. VP9 content is

container file formatted in

at least one video .” .”

DASH are are -DASH Irrespective of COMPLAINT ,

or VP9

file file .

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87 ‘cenc’, indicating that AES that indicating ‘cenc’, Sch Protection Scheme Info box (‘sinf’) SHALL be present, and SHALL contain a mode”); VP9 ISO BMFF Specification (“If the VP9 data is encrypted, the

See eme Type (‘schm’) box. The scheme_type field of the ‘schm’ boxSHALL be

PIFF Specification, page 17 (“AlgorithmID. . . 0x1– k. j.

contentencryption key stream output by the AES via MPEG content encryption key.” Files encoded by Netflix for distribution Further,“the at least one frame encryption key isencrypted using a PIFF S PIFF schem a KID in the PIFF the in KID a decrypted by configuring an AES cipher using the key indicat PIFF multimedia file is encrypted using a a decrypted frame key (namely, initialization vector Netflix Playready, Google Widevine, or Apple FairPlay) top content encryption key fromDRM server a (such as Microsoft H.264 Netflix encryption keys including the active user encryption key encryption key Protection contentencryption key encrypted streams. Information that can be used Track DASH obtain a copy of the the of copy a obtain -DASH MPEG using video VP9 and , e inthe ISO Common Encryption S pecification.

further application and browser DASH -DASH System -CTR encryption is used when samples are encrypted.”).

Encryption Box). The frame encryption key is

provides that “ that provides are each encrypted using one or more user

Track use a frame encryption key ( Header

87 to the AES cipher in in AES cipher AES the to

Accordingly, e

- (namely, from

75 Encryption Box and providing an

-CTR cipher) that is encrypted by a

Boxes

a one or more copies of the content DRM

-based players the key stream).

a key indicated by the KID in the . The request and responses to to responses and request The t least one ach fra ach server server tandard me inthe received is containedis indifferent AES 128 AES CTR mode to ob to mode -CTR

frame key that stream H.265, namely, a

to request the the request to

and the Microsoft

- lay bit in CTR CTR in bit COMPLAINT

.” .” . back theback

key key The The ed by by ed tain

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88 formattedaccordance in with the using the H.264, H.265, or VP9 codecs, the content is stored in an MP4 mda example, video are encrypted using at least one frame encryption key the content includes frames of video and at least a portion of a plurality of frames of open source WebM project regarding the storage of VP9 content inthe ISO BMFF. stored in accordance w

PIFF Specification, page 23. t

boxes within an MP4 within boxes 210.

content from itsservers that includes encode

b. a. Netflix “obtain[s]

by a user encryption key and MSL obtain a copy of the content encryption key are com the initialization vectors for encoded frames indicate in th Upon information encrypted which exactly player the tells usingAES the Specification specifiesthat sample encrypted by a PIFF codec, Netflix obtains streams of video With respect to, for example, e PIFF Sample Encryption Box “uuid.” The fields following ith an additional specification document published by the , :

88 as a result,

file. file.

-CTR cipher so that the file contains information that

encrypted content using a playback device, where Irrespective of whether the content is encoded

Microsoft and belief, Netflix provides

Track

are, upon information and belief, encrypted -

. 76

Encryption - PIFF S PIFF

content encoded using the H.264 H.264 the using encoded content partsthe of sampleare

pecification. VP9 content is also also is content VP9 pecification. encryption must be used when d framesd videoof stored in Box that are identif . T ” when it receives, for he initialization vectors

Microsoft

municated via and are not not are and that at least a COMPLAINT ied as

file file PIFF

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application used key Track key (namely playback device or more user encryption keys including an active user encryption key stored on the one or more copies of the content encryption key that are each encrypted using one frame encryption key that is encrypted using a content encryption key and obtaining encryption key multimedia file ( the the using configured initialization vector PIFF vector by which the respective DRM systems distribute the c with the relevant DRM server is encrypted in a manner that enables decryption using the active user key messages. Therefore, mannera that relies on an active user keystored ontheplayback device toencrypt includes an active user key the playback device.

rom from to decryptmore oneor encrypted port Track

211. Encryption and the content the and encryption key different DRM servers

and browser Encryption , a key strea Netflix “obtain[s] , the Netflix application encryption key portion of the frame isencrypted using at least one frame to stream s devices. .” .” Protection imilar PIFF Box). The key stream output by the A As noted above, files encoded by Netflix use a frame encryption

(from PIFF the

contentencryption key the

Box). A decrypted frame key isobtained by providing an -

m output by the AES based players content encryption key H.265, .

System As noted above, Netflix

Sample .

. Upon information usi Upon information within the the within contained headers DRM different using H.264 ng the playback device a copy of the at least one

Header Sample

Encryption , namely

can obtain a copy of the - and browser , and VP9 content by Netflix to playback

ions of a frame of video. The Netflix

Boxes). T Boxes). - Encryption

indicated by the KID (fr -CTR based , the key

returned by Netflix’s DRM servers Boxes and belief, the proprietarymeans and belief, Netflix provides - based players implements o obtainthe ontent

indicated by the KID inthe Box) Box) in in ES on the MP4 -CTR isthe frame key encryption to an AES an to

content encryption container files used

initialization the Netflix in MSL content communica

om the PIFF COMPLAINT -CTR cipher k ey further

stored on te te

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encrypted videostream keys in the manner described above, enabling decoding and playback of the key Netflix DRM servers using the active user encryption key. The playback device decrypting encryption key using the playback device and the active user encryption key example Encryption Box contained in every MP4 identifies the portions of the frames that are encrypted using the PIFF frames are partial are encrypted.” As required by eachencrypted subsample subsamples that are encrypted, and the number of encrypted/unencrypted bytes in PIFF and the content the encryptionand key initialization vector for the frame and is decrypted using the initialization vector for each frame isidentified from the PIFF key used to encrypt the identified portions of the frame.” The frame encryption key by the AES above, the ISO Common Encryption S encryption key using the decrypted content encryption key Box Encryption

is thenis available Sample 212. 213. 214. 215. 216. ,

a corresponding PIFF corresponding a

MSL MSL CTR is th is -CTR Netflix “decrypt[s] o Netflix “play[s] Netflix’s playback comprises “identifying any portions of a frame that Netflix’s playback further c Netflix’s playback further comprises “decrypting the identifiedframe

Encryption Box that specifies an initialization vector, the number of . ” bydisplaying decoded frames via the Netflix player.

message data ( ly encrypted using subsample encryption, and the player software

along with the initialization vectors initialization the with along e frame encryption key used .

back frames of the encrypted content using the , example, for ,

the content encryption key) received from the Sub the key indicated by a KID ne ne

Sampl of the one or more copies of the content tandard specifies that the key stream output -

omprises “identifying the frame encryption 78 video segment. Each frame has, for

Sample e

Encryption Entry contained within the the within contained Entry Encryption

the Microsoft PIFF S

Encryption Entry based to decrypt one or more

to obtain frame encryption ,” be ,”

in the PIFF Track cause,as noted content encryption pecification, the

Sample COMPLAINT

on the ” by by ”

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encryption key, fram encrypted portions of a frame of video. The process of decrypting the identified of video of accoin as noted above, the content was encrypted and must use a framekey for decrypt portionsframeof the using the decrypted identifiedframe encryption key”because, AES providing the initialization vector from the PIFF tests its service using various playback devices. 223 releases of the application and service remain compatible with CE devices. use the service. It further ensures that iterative versions, updates, and subsequent Netflix to ensure that the largest ecosystem of CE devices possible may seamlessly critical to ensuring the success of the Netflix streaming service. Testing allows content security provided by the ’920 inventions allows Netflix to obtain and offer supporting a large and diverse streaming device ecosystem. Specifically, the patent claim importing the Accused ’920 Infringing Products, ’920 patent in the United States bymaking, using, offering for sale, selling, and/or

- 225, e encryption key involves configuring an AES -CTRcipher toobtain the frame key

1 217. 218. 219. 220. 221. 223. 222. allows it to deliver video content securelymany to diff rdance with the ISO Common Encryption S of the ’920 ,” when it plays decoded video via the Netflix player. in violation of 35 U.S.C. § 271( § U.S.C. 35 of in violation

Netflix’s playback further comprises “decrypting the encrypted Netflix directly infringes at least claim 1, least at as described, when it Netflix’s playback further comprises “ Upon information and belief, testing Netflix- Netflix has infringed, and continues to infringe, at least claim 1of the At least a Netflix has Netflix

the key indicated by a KID inthe PIFF patent, s of the date of this Complaint, Netflix knows that the

induced

at least in the exemplarymanner described in paragraphs ,

and continues to induce to continues and -

79 . b

)

. -

Sample in violation of 35 U.S.C. § 271(a). tandard -CTR cipher using the content decoding the unencrypted frame

Track

Encryption Entry tothe , compatible CE devices is

. infringement of at least

erent devices,

Encryption Box Encryption

COMPLAINT

’920 ,

and and ion

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secure streaming. that enhances content security by bind Complaint, Netflix knows that t its users a library of high- devices that, when used and specifically intends to provide an application and service for CE playback playback d application to decode and play back encrypted digital video content using the usingapplication its and serviceas intended — specifically intends that its end users practice the method recited in claim 1, when ’920 wrongful acts in an amount subject to proof at trial. DivX, and DivX is entitled to recover damages sustained as a result of Netflix’s by reference as though fully set forth herein. described directly infringe at least claim 1of the ’720 patent Products”). generating top level index files (collectively, the “Accuse its Netflix service, which provides a system and method for automatically bymaking, using, offering to sell, selling, and/or importing into the United States

patent 224. 225. 226. 227. 228. 229. 230. 9,270,720 NO. PATENT U.S. OF FRINGEMENT IN V: COUNT in in

paragraphs At least as of the date of this Complaint, Netflix knows that it provides At least as of the date of this Complaint, Netflix knows and Netflix’s infringement has caused and continues to cause damage to The allegations of paragraphs 1-226 Pursuant to 35 U.S.C. §282, the ’720 Upon information Upon information ice, as described in paragraphs 209

231 as intended, practices the method recited in claim quality video content. At least as of the date of th - 236 and belief, the Accused ’720 Infringing Products and belief, Netflix directly infringes the ’720 patent he ’920 patent is directed to a DRM

below. ing active encryption keys toa -

namely, the user engages the Netflix -218

of this Complaintare incorporated at least in theexemplary manner patent is presumed valid.

d ’720d Infringing

architecture user, allowing COMPLAINT

1 of the is

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Overview.pdf 89 identifies a piece of content, system, receives a request from a CE product identifier server system, where the request (i) identifies a piece of content and (ii) includes a is, a manifest. global our for example, Netflix OpenConnect documentation,which identifies

See

members

Open Connect Overview 232. 231. network requested video assets and “individual client characteristics.”

Netflix “receiv[es] Netflix practices a “method of generati

worldwide , at 2, 4.

that ” when its

responsible ,” Netflix receives a request from a p streaming infrastru cture,

and (ii) includes a product identifier ,

a request from a playback device at a playback https://openconnect.netflix.com/Open-

for

playback device, where the request (i) delivering -

Netflix ng a top level index file,” that that is that

TV describes “the ,

shows its laybackdevice that

playback server . As illustrated As .

and COMPLAINT Connect

89 movies

- to

in,

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from Suudhan Rangarajan, a Senior Software Engineer at Netflix: exemplarypresentation, published onFebruary 21, 2018, product identifier. The Netflix “play decision” process is illustrated in the following the example, Win10 PC/Edge. T example, using a movieID. And the request includes a product identifier, for Edge browser fromMicrosoft. The request identifies a piece of content, for The playback device could be, for example, a PC running Windows 10 using the 90 https://www.slidesh

Rangarajan, Suudhan, ScalingPlayback Services,

playback device’s are.net/SuudhanRangarajan/scaling- version and at least one device capability based on the herequest includes -

information necessary todetermine playback

at www.slideshare.net, -services 90

COMPLAINT , at 7.

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specific streamingassets documentation, Overview.pdf 91 specifically, retrieve associated with the piece of content.”Netflix usesplayback its server systemto capability based upon the product identifier, wherein each asset is a different stream assets associated with the identified piece of content and (ii) at least one device

See Open Connect Overview 233.

a list of assets associated with the identified piece of content. Mor

and as illustratedand Netflix “retriev[es] , at 4. Netflix’s playback server system identifies and retrieves

that are in , , using the playback server system, (i) a list of https://openconnect.netflix.com/Open- , for example,

required required -

to handlethe playbackrequest :

Netflix Open Connect Connect Open Netflix

COMPLAINT Connect the the 91 e

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HDMI. capability, DRM 4K/UltraHD only a 4K/UltraHD example, Netflixthe with encoded will content stream 4K/UltraHD system toretrieve at least one device exist for the content associated with t different formats for different device capabilities. Multiple resolutions and bitrates the requested piece of content, for example The Netflix playback server on- https://nvidia.custhelp.com/app/answers/detail/a_i 92

https://help.netflix.com/en/node/23931 nvidia 92

- gpus .

and content protection capabilities and robustness 60Hz and , capable

PC system has a list of different streams associated with , depending on its OS version, browser type, H.265

he movieID. Netflix uses its playback server capability based -

84 ;

, using the movieID

- d/4583/~/4k on theproduct identifier — uhd streams in -

netflix H.265 codec to codec H.265 COMPLAINT -content-

. For For .

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COMPLAINT

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https://www.slideshare.net/SuudhanRangarajan/scaling 23. 93 service Netflix maintains a database of product identifiers and associated device capabilities .” capability using the playback server system, wher

See

Rangarajan, Suudhan, Suudhan, Rangarajan, 234. . indicates 93

Netflix “filter[s] thatit usesa decide Scaling Playback Services,

the list of assets using the at least one device -and -

86 -filter processforthe manifest delivery

ein the playback serversystem - playback -servi

COMPLAINT ces , at 10, , at10,

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capabilities and robustness HDMI 60Hz and , OS version, browser type, H.265 the with encoded described in the previous paragraph, Netflix will stream 4K/UltraH (bitrate/resolution/format) based on the device capabilities. For example, as capabilities) using its assets Netflix generates a 95 94 papers and supports the step of generating the manifest file playback device capabilities and contains generates the manifest using its playback server system, and each is specific to the maintains the Lens of the Netflix CDN,” arXiv:1606.05519v1 [cs.NI], 17 Jun 20 filtered listassets of using the playback server system

See https://help.netflix.com/en/node/23931

. “Open Connect Everywhere: A Glimpse at the Internet Ecosystem through 235. The distribution and naming of Netflix’s CDN is documented a databa

Netflix “generat[es] a top level index file describing each asset in the H.265codec to se of product identifiers and associated device capabilities. differentmanifest based playback server system capability, DRM 4K/UltraHD only a 4K/UltraHD -

87 .

CDN

- on on

. . 94 Netflixfilters the

the device capability (or server locationsdownloadfor of the Netflix’s playbackserver system

and content protection capable ,” that is, . 95

a manifest.a Netflix

list of assets , depending on its its on depending ,

D content in COMPLAINT 16, 16, published published available

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https://www.sli 96 at manifest, either in real -time or pre As illustrated in the following exemplaryNetflix presentation, Netflix generates the

See See https://arxiv.org/abs/1606.05519 Rangarajan, Suudhan, Suudhan, Rangarajan, deshare.net/SuudhanRangarajan/scaling- Scaling Playback Services, -cached: .

playback -services

COMPLAINT , at 17 at , - 18.

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the playback server system, wherein the top level index file is used by the playback

236.

Netflix “send[s]

thetop level indexfile to the playback deviceusing -

COMPLAINT

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request for playback on the device: suggesting that the playback device uses themanifest to determine the assets to Further, Netflix admits that it does adaptive streaming using themanifests, https://www.slideshare.net/SuudhanRangarajan/sca d159db052746 98 97 top the sends device to determine which assets to request for playback on the device appropriatemanifest totheplayback device: presentation, the playback server system requires a “decide process” to send the video streams for playback. As illustrated in the following e response (GET). The manifest is used within the playback device torequest p

layback server system via, for example,

https://medium.com/netflix See See Rangarajan, Suudhan, Suudhan, Rangarajan, -level indexfile .

— Scaling Playback Services, -quality -techblog/high the the manifest 98

the MSL layer request (POST) and and (POST) request layer MSL the

—to the playback deviceusing the - 97

ling -video-encoding- - playback xemplary Netflix -services

at COMPLAINT .” Netflix - scale , at 3. the the -

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tests its service using various playback devices. releases of the application and service remain compatible with CE devices. use the service. It further ensures that iterative versions, updates,and subsequent Netflix to ensure that the largest ecosystem of CE devices possible may seamlessly critical to ensuring the success of the Netflix streaming service. Testing allows importing the Accused ’720 Infringing Products, in violation of 35 U.S.C. § 271(a). ’720 patent in the United States bymaking, using, offering for sale, selling, and/or wrongful acts in an amount subject to proof at trial. DivX, and DivX is entitled to recover damages sustained as a result of Netflix’s by reference as though fully set forth herein. bymaking, using, offering to sell, selling, and/or importing into the United States

237. 238. 239. 240. 241. 242. 243. COUNT VI: INFRINGEME VI: COUNT

Netflix directly infringes at least claim 1, least at as described, when it Upon information and belief, testing Netflix Netflix has infringed, and continues to infringe, at least claim 1of the Netflix’s infringement has caused and continues to cause damage to The allegations of paragraphs 1-240 Pursuant to 35 U.S.C. §282, the ’515 Upon information and belief, Netflix directly infringes the ’515 patent NT OF U.S. PATENT NO PATENT U.S. OF NT -

of this Complaintare incorporated patent is presumed

- compatible CE devices is . 9,998,515

COMPLAINT valid.

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Overview.pdf 99 Products”). generating top its Netflix service, which provides a system and method for automatically described directly infringe at least claim 1of the ’515 patent receives a r device configuration”when it playback server, where the request includes a product identifier that identifi a es is, its streaming service. a request from a playback device that ide example product identifier that identifies a device configuration. As illustrated “individual client characteristics.”

See

Open Connect Overview 244. 245. 246. , Netflix Open Connect documentation, Netflix’s playback server receives in in

equest for content from a play paragraphs Upon information Netflix practices a “method for author Netflix “receiv[es] , at 4. level index files (collectively, the “Accused ’515 Infringing

245 - 2 s streaming infrastructure, that is, its 51 , and belief, the Accused ’515 Infringing Products

a request for content from a playback device a at https://openconnect.netflix.com/Open- below. 99

92 ntifies requested video assets video requested ntifies back device, where device,request back the

at least in theexemplary manner izing playback of content,” that playback server,

in, fo in,

COMPLAINT and Connect

includes a r -

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Suudhan Rangarajan, a Senior Software Engineer at Netflix: “play decision” process is illustrated below inan exemplary presentation, from for example Edge browser fromMicrosoft. The request for content The playback device could be, for example, a PC running Windows10 using the 100 https://www.slideshare.net/SuudhanRangarajan/scaling the productidentifier determine the playback device’s

Rangarajan, Suudhan, ScalingPlayback Services, , Win10, PC/Edge

and, configuration as a result, device a identifies . And And

version and at least one device capabilit y based on the request includes -

inc - playback information necessary to ludes a product identifier, 100

-services

. The Netflix COMPLAINT , at 8.

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Netflix uses its playback server to identify the device type, based on the device identifier component implemented on the p software version indicating a version number for an adaptive streaming software identifier, a plurality of device capabilities including a device type and a device includes, for example, the capabilities and version of the playback device. inc browser software component is also included, which is the version number of the Edge device software version indicating a version number for an adaptive streaming stream associated with the piece of content associated with the identified piece of content, wherein each asset is a different

ludes a product identifier, for example 247. 248. could be . And as discussed in the ,

identified by the flag “MicrosoftEnableDeviceInfo.

Netflix Netflix Netflix “retriev[es]

a PC runningWindows 10 using “identif[es] , using,the playback server,based on the product , using the playback server, a list of as previous paragraph, the request for content layback device -

94 ,

Win10 PC/Edge. And the request .” .”

Netflix .” For example, the the Edge browser from Microsoft. usesplayback its server to ” Furthermore,a

playback sets COMPLAINT

product

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requested piece of The Netflix playback server has a list of different streams associated with t process for the manifest delivery service the content associated with the movieID. formats for different device capabilities. Multiple resolutions and bitrates exist for 23. 102 Overview.pdf 101 playback server specif retrieve a list of assets associated with the identified piece of content More . https://www.slideshare.net/SuudhanRangarajan/scaling the plurality of device capabilities .” the playbackrequest .

See See Open Connect Overview

ically, as illustrated in Netflix Open Connect documentation, Netflix’s 249.

Rangarajan, Suudhan, Suudhan, Rangarajan,

Netflix “filter[s] , at 4.

determine

content, for example

101

which specific streaming assets are required to handle , using the playback server Scaling Playback Services, , https://openconnect.netflix.com/Open- Netflix i - , using the movieID

. 95

102

ndicates that it uses a decide - , the list of assets based on playback —streams indifferent -services

COMPLAINT Connect -and , at 10, , at10, he he -filter

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playba the the with encoded the device capabilities. For example, Netflix will stream 4K/UltraHD content Netflix generates a

server . Netflix filters the H.265codec to differentits using manifest capabilities based device on the 4K/UltraHD only a 4K/UltraHD

list of assets (bitrate/resolution/format) based on -

capable

PC , depending on its its on depending ,

COMPLAINT

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104 103 capabilities and robustness HDMI 60Hz and , OSversion, browser type, H.265 capability, DRM at the Lens of the Netflix CDN,” arXiv:1606.05519v1 [cs.NI], 17 Jun 2016, available assets. assets. playback device capabilities and contains CDN server locations for download of the ser used to perform adaptive streamlining of the content.” Netflix, using its playback identifies locations and bitrates of a plurality of alternative streams capable of being describing each asset in the filtered list of assets, wherein the top level index papers and supports the step of generating the manifest file

https://arxiv.org/abs/1606.05519 ver, generates a manifest, that is, a See https://help.netflix.com/en/node/23931 250.

The distribution and naming of Netflix’s CDN is documented “Open Connect Everywhere: A Glimpse at the Internet Ecosystem through

Netflix “generat[es] , using the playback server, a top level index file .

top -

97 -

. level index file. Each is speci the to fic

. 103

and content protection . 104

in COMPLAINT published published

file file

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105 As illustrated in manifest, either in real -time or pre https://www.slideshare.net/SuudhanRangarajan/scaling

See See Rangarajan, Suudhan, Suudhan, Rangarajan, the following exemplaryNetflix presentation, Netflix generates the Scaling Playback Services, -cached: -

105

- playback -services

COMPLAINT , at 17 at , - 18.

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playback device

251.

Netflix “send[s] .”Netflix sends the top-

the top level index file from the playback server to the -

level index file 99

— the ma the nifest—

COMPLAINT to the

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(POST) and response (GET). response and (POST) playbackdevice usi tests its service using various playback devices. releases of the application and service remain compatible with CE devices. use the service. It further ensuresthat iterative versions, updates,and subsequent Netflix to ensure that the largest ecosystem of CE devices possible may seamlessly critical to ensuring the success of the Netflix streaming service. Testing allows ’515 patent in the United States bymaking, using, paragraphs importing the Accused ’515 Infringing Products, in violation of 35 U.S.C. § 271(a). adaptive bitrate streaming. playback device that the playback device uses to request a streaming file, improving system that automatically generates a top- during playbacka user’s on device. Specifically, and without stalls when switching among video streams of different resolution patent enables it to offer adaptive bitrate streaming services that perform smoothly claim Complaint, Netflix knows that playback device that, when used as intended, meets the limitations of claim 16. andspecifically intends toprovide specifically intends that end-

16 of the ’515 252. 253. 254. 256. 255. 257. 258.

256 Netflix directly infringes at least claim 1, least at as described, when it Upon in Upon Netflix has infringed, and continues to infringe, at least claim 1of the At least as of the date of this Complaint, Netflix knows that the ’515 has Netflix At least as of the date of this Complaint, Netflix knows that it provides At least as of the date of this Complaint, Netflix knows and - 265, ng the playback server via, for example patent formation and belief, testing Netflix- in violation of 35 U.S.C. §271(

induced, and continues to induce, infringement of at least

at least inthe exemplarymanner des cribed in user CE playback devices be a device that meets all of

the ’515 patent is directed to a playback server an application and service to be used with a CE -

100

level ind

at least as of the date of this

ex file tailored to a particular offering for sale, selling, and/or b ).

compatible CE devices is , the MSL layer request

COMPLAINT

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p%20browser a=SwiftypeResultClick&q=install%20aphttps://help.netflix.com/en/node/101653?b 106 device.” deviceas intended. the limitations of claim 16, when the Netflix application is enabled on the playback Netflix’s website: Netflix’s information used toidentifycapabilities ofthe playback device “memorycontaining information used toidentifycapabilities ofthe

https://devices.netflix.com/en/ 259. The Netflix The

The CE playback device enabling the Netflix application comprises .

106

application runs application ;

on a device with memorycontaining -

101

,illustrated as on

playback COMPLAINT

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information isstored intheplayback device’smemory. version and at least one device capability based on the product identifier. That requestthe includes playback server inc Edge browser fromMicrosoft. The request from the playback device to the The playback device could be, for example, a PC running Windows 10with the

application. application. comprises “a processor configured by a client application,” namely, the Netflix

260.

The Netflix The The CE playback device enabling the Netflix application further ludes a product identifier, for example informa

application or tion necessary to determine the playback device’s - JavaScript

102

-implemented and browser

, Win10 PC/Edge

COMPLAINT . - And And

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using the playback device, an initial stream from the plurality of different locations and bitrates of a plurality of different alternative streams. receive a manifest from the Netflix playback server. The manifest includes the configured by the Netflix application, uses the playback device to request and identified piece of content and accessible to the playback device alternative streams capable of being used to perform adaptive streaming of the the top level index file identifies locations and bitrates of a plurality of different using the playback device, a top level index file from the playback s software component implemented on the device, for example, the Edge browser. movieID. The request further includes a version number for an adaptive streaming 107 by the Netflix enabled playback Microsoft. The request ide could be, for example, a PC running Windows 10 using the Edge browser from streaming sof content MSL layer request (POST) and response (GET). The request identifies a piece of requ The processor, configured by the Netflix application, uses the playback device to number for an adaptive streaming software component implemented on the device identifies a piece of content and includes a software version indicating a version playback device, a top level index file from a playback server, where the r

Id. est a top est

263. 262. 261. and includes a software version indicating a version number for an adaptive

- The Netflix The The Netflix The The Netflix The tware component implemented on the device level indexfile application or JavaS runs

on a device wit device a on

applicat applicationfurther configures the processor“receive, to application “configures the processor to request, the using ntifies a piece of content, for example — the mani ion furtherion configures the processor“ to cript h a processor - -

fest. This is realized via, for example 103 implemented player

and

the processor is configured . The playback device . 107

.” The proce , using the

erver, where COMPLAINT select, equest ssor, , the the ,

.” .”

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d159db052746 108 playback device to select an initial stream f alternative streams a plurality of different alternative streams.And at least a portion discussed in previous paragraphs, the manifest includes the locations and bitrates of application, uses the playback device to request and receive the manifest. As identified in the top level index file using the playback device,at least a portion of theinitial streamfrom locationsthe in thetop- retrieves the at least portion of the initial stream from one of the locations identified using the playback device, the portion of the initial stream manifest stream from one of the locations identified in the top- wrongful acts in an amount subject to proof at trial. d DivX an DivX, is entitled to recover damages sustained as a result of Netflix’s

https://medium.com/netflix 264. 266. 265. —is retrieved. level index file

The Netflix The Netflix’s infringement has caused and continues to cause damage to Netflix The .

.” The processor, configured by the Netflix application, uses the

applicationfurther configures the processor“ to applicationfurther configures the processor“p to lay back, —the manifest -quality -techblog/high .” The processor, co -

— 104

the playback device plays the file. romurlsthe listed manifest. inthe

-video-encoding- level index file nfigured by the Netflix .” After the processor

of the initial

the —the at COMPLAINT - scale retrieve,

108 -

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use theMPEG id Application, Andro Netflix and Netflix Android TV Application (“Ne information and belief, at least the Netflix Microsoft Windows 10 Application, fbb57e7d7ca0 109 by reference as though fully set forth herein. (collectively, the “Accused ’486 Infringing Prod frame keys within a s Netflix making, using, offering tosell,sel exemplarymanner described in paragraphs directly infringe at least claim 1of the ’486 patent at least as shown in the DASH S -DASH MPEG video” by providing applications that enable playback utilizi ng, for example, the

https://medium.com/netflix ENT OF U.S. PATENT NO. 10,212,486 PATENT U.S. OF ENT INFRINGEM VII: COUNT 267. 268. 269. 270. 271.

service, which provides playback devices and methods for deciphering

The allegations of parag of allegations The Pursuant to 35 U.S.C. §282, the ’486 On information and belief, Netflix directlyinfringes the ’486 patent by On information and belief, the Accused ’486 Infringing Products Netflix provides “[a] . DASH S -DASH

tandarda heterogeneous on set of viewing devices. ecure video decoder tandard. -techblog/update

ling, and/or importing into the United States its playback device for playing raphs 1-266 -

105 , efficiently enhancing content security

271

- - on- 288 ucts”).

of this Complaintare incorporated patent is presumed valid. html5-video-for

below.

back encrypted

-netflix 109

COMPLAINT On On tflix Apps”) -

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app%20browser 110 playbackdevice uses, containing a playback application” because in order to play back content, the app because all playback devices that run the Netflix player application or other client come pre consoles, set smartphones, tablets, computers, smart TVs, streaming media players, game accesson how to the Netflixapplication numerouson devices installedor downloaded and storedin non -

https://help.netflix.com/en/node/101653?ba=SwiftypeResultClick&q=install%20 lications that access the Netflix service include a set of one ormore processors. 272. 273. -installed”:

- Netflix’s playback device comprises “ Netflix’s playback device further comprises “ top boxes, and Blu- .

110 for examplefor

ray players , a Netflix player application that is either pre -

106

volatile memory.Netflix provides details

—and states that “[t]he Netflix app may -

a set of one or more processors” a non-volatile storage including —including

COMPLAINT -

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containing

perform the step

274.

a. a playback Netflix’s playback device further comprises “ of theof video. for extracting information utilized in the decry Netflix’s applications include certain code Common Encryption Standard and Microsoft PIFF Specification. contain video streams encrypted in accordance with the ISO Netflix’s applications receive data from MP4 []

. receiving a container file with video data at a parser

application for causing the set of one or moreprocessors to

107

— a non-volatile storage

a parser containerfiles that ption and playback

responsible —responsible COMPLAINT .” .”

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Specification 112 111 (referred to as sub containing from received portions of MP4 As noted above, the parser component in each of the Netflix Apps extract perform the step 274. containing encrypted frames wherein the container file comprises: video data with a pluralityof partially per

Microsoft PIFF Specification at 16. - 23001 CD ISO/IEC form the step

275. 276.

b. a playback a playback Netflix’s playback device further comprises “ Netflix’s playback device further comprises “

112

written in J App is stored locally in non- For example, upon information and belief, t uti [] [] .” .”

-sample encryption). of of lized by Netflix specify The ISO Common Encryption S

. extracting portions of the container file using the parser . extracting portions of the container file using the parser

applicationforcausing the set of one or moreprocessors to applicationforcausing the set of one or moreprocessors to 7 (3rd Ed.) at 6. av aScript thatincludes a parser.

container files that contain streams of video.

108

the use of partially encrypted frames

- volatile memory and contains code

tandard a no a non-volatile storage

111 he Netflix Windows 10

and MicrosoftPIFF n -volatile storage

COMPLAINT s

data

See

¶ .” .” ,

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containing wherein each partially encrypted frame contains encrypted portions and perform the step

277.

a. a playback Netflix’s playback device further comprises “

Sample that portions of accordance with the H.264/AVC s H.265/HEVC or shows that the downloaded includes a plurality of partially encrypted frames. MP4 data that co App For example, []

streaming data . extracting p

applicationforcausing the set of one or moreprocessors to

Encryption nforms with

upon information and belief, NetflixWindows 10 the encrypted fram Box shows that the retrieved data includes video ortions of the container file using the parser -

109 the Microsoft PIFF S (“uuid”

exemplar

es are indicated within a PIFF

videos a non-volatile storage

are pecification and

encoded in in encoded

tandard COMPLAINT Box s analysis

and ,

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113 containing includes encrypted portions and unencrypted portions. u H.264 ( H.264 the encrypted portion of each partially encrypted frame wherein the perform the step Sample Apps files that contain VP9 encoded video received fromNetflix describing the encrypted and un and encrypted the describing containing the encrypted portion of the partially encrypted frame.” information for a partially encrypted frame comprises: cryptographic material f the encrypted portion of each partially encrypted frame wherein the container file comprises: a set of cryptographic information describing perform the step

nencrypted portions of data.” As noted above, e

Microsoft PIFF specification at 22.

include 278. 279.

AVC Encryption

a. a playback a playback

container file comprises: a set of cryptographic information describing Netflix’s playback device further comprises “ Netflix’s playback device further comprises “ ) s

encoded video and the Sample cryptographic information for each frame provided in a PIFF The cryptographic material for each partially encrypted frame is based cipher to generate a frame key todecrypt partially encrypted frames Standard utilized byNetflix relies on the use of an AES MicrosoftThe PIFF S [] []

of of Box

. extracting portions of the container file using the parser . extracting portions of the container file us

upon cryptographic material provided in the container file. applicationforcausing the set of one or moreprocessors to applicationforcausing the set of one or moreprocessors to (“uuid” encrypted portion of each frame. ) in the MP4 the in

Sample pecifica

110

Encryption

files Encryption tion and ISO Common Encryption ach partially encrypted frame

that contain H.265 ( H.265 contain that See .” For example, the , where cryptographic Box Box , including information

Box Box

a non-volatile storage a non-volatile storage ¶ servers (“uuid” 276 (“senc” .

ing the parser by the Netflix ) 113 ) COMPLAINT HEVC

in the MP4 the in or a Sample -CTR

PIFF ) or ) or or or , ,

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114 containing pe the encrypted portion of each partially encrypted frame wherein the container file comprises: a set of cryptographic information describing the PIFF identifies the encrypted portion of the partially encrypted frame.” As noted above, information for a partially encrypted frame comprises: a block reference that containing ¶ 276. subsamples, a num cryptographic information for each frame including a number of encrypted in the for each partially encrypted frame from the parser to a video decoder cryptographic material for each partially encrypted frame, and the block re perform the step

rform the step

- 23001 CD ISO/IEC

MP4 280. 281.

Sample

b. a.

a playback a playback d from Netflix receive servers files Netflix’s playback device further comprises “ Netflix’s playback device further comprises “

Encryption PIFF standard and that cryptographic material are contained within a downloadedvideo isencod downloaded by the Netflix Windows 10 App shows that the For example, upon information and belief, the serv servers To [] []

Encryption

of of

ber of unencrypted bytes, and a number of encrypted bytes. decrypt the partially encrypted streamsreceived from Netflix’s ers ers

. extracting portions of the container file using the parser . Sample

applicationforcausing the set of one or moreprocessors to applicationforcausing the set of one or moreprocessors to , the Netflix the , 7 by the Netflix Apps. Netflix by the providing each partially encrypted frame, the (3rd Ed.) at 14.

Box Box Box

Encryption (“senc” (“uuid”

Apps provide Apps -

111 )

114 ) Box

and the Sample ed in accordance with the H.264 (

in the -

(“uuid”). by the Netflix Apps

partiallyencrypted frames, the MP4 ,

files received fromNetflix

where cryptographic

a non-volatile storage a non-volatile storage Encryption

MP4

include include

container file .” .” COMPLAINT Box Box

ference (“senc” AVC See , ) )

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117 116 115 containing the block reference contain example, t encrypted frame using the block reference for each partially encrypted frame perform the step the

- 23001 CD ISO/IEC https://w3c.github.io/encrypted Microsoft PIFF Specification at 20. MP4 282.

container files. he encrypted portion of the partially encrypted frame is identified using

b. a playback Netflix’s playback device further comprises “

Encryption the “saio” box points to the first byte of within the PIFF Netflix Windows 10 App include “saiz” and “saio” boxes and that information and belief, streams downloaded or streamed tothe to a video decoder. block reference for each partially encrypted frame from parser the cryptographic material for each partially encrypted frame, and the Common Encr (CDM) to decrypt video encrypted in accordance with the ISO Media Extensions to configure a Content Decryption Module For example, the Netflix Windows 10 App leverages Encrypted Sampl encrypted, specified by subsample information referenced by Encryption S Encryption standard. A [] uxiliary

e applicationforcausing the set of one or moreprocessors to 7 (3rd Ed.) at 3

Auxiliary identifying the encrypted portion of each partially

Information ed within the within ed

Box tandard specifies that “[s]amples can be partially yption (“cenc”)S

(“uuid”)

-media/format-registry/stream/mp4.html Information 115

- -4. Offsets

112

“

in accordance with the ISO Common

PIFFSubSampleEncryptionEntries

Box (‘saio’ Sizes tandard.

Box (‘saiz 116 ) boxes.” a non-volatile storage

The ISO Common ’ ) and Sample

117

Upon Upon COMPLAINT

Sample .

” .” For For .”

from

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119 118 containing frame key each for partially encrypted frame using the cryptographic material for each partially encrypted frame toproduce a perform the step

https://nvlpubs.nist.gov/nistpubs/Legacy/SP/nistspecialpublication800 Microsoft PIFF specification at 17. 283.

a playback Netflix’s playback device further comprises “ b. a. []

of method, The AES The : process for a given frame isdeciphered according to the partially encrypted frame. T “key stream” output by the AES Netflix uses Netflix Standard and PIFF Microsoft Specification.

applicationforcausing the set of one or moreprocessors to deciphering a frame key for each partially encrypted frame 119 in in -CTR cipher employs a frame encryption key (

accordance with the ISO Common Encryption

the AES the

113 -CTR ci

- .”

he at least one frame encryption key pher pher -CTR cipher) to encrypt each as part ofencryptionits a non- volatile storage 118

following COMPLAINT - 38a.pdf that is, .

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120

https://www.ietf.org/rfc/rfc3686.txt.pdf d. c.

deciphers files todeterminethe encryptionme operation. encrypted block with the “key stream” using an exclusively decrypt encrypted blocks within the frameby combining the stream”(that is, The The conventionally referred to as a “key stream.” The output blocks of an AES cipher in AES Netflix Windows 10App

“

key streams”

the frame key) a particular for frame isused to -

114

using the AES cipher in a manner -

parses dataobtained thod utilized. The App CTR mode-CTR are 120

The “key COMPLAINT from MP4 OR -OR

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containing process. process. containing AES portion of the partially encrypted frame using the frame key deciphered using t the video decoder encryp perform the step (namely

displaydevice using thev device using the video decoder. perform the step variousplayback devices. Netflix to ensure that the largest ecosystem of CE devices possible may seamlessly criticalensuring to thesuccess theNetflix of streamingservice. Te

-CTR T cipher. 284. 285. 286. 287. ted frame based upon the frame keyfor each partially encrypted frame using ,

See the key stream) with the encrypted block of data using an exclusive

a playback a playback Netflix’s playback device further comprises “

Netflix’s playback device further comprises “ Netflix directly infringes at least claim 1when it tests its service using Upon information and belief, testing Netflix- ¶ 283 ¶ [] [] .” As noted above, Netflix the

of of . AES for each frame entry isused to configure the AES cipher in initialization decipher theat least oneframe key. bo Encryption. A key referenced by the KID Protec compatible with the encryption specification present in the

he de he

. . x is used to configure the AES cipher in AES cipher AES the configure to used is x

applicationforcausing the set of one or moreprocessors to applicationforcausing the set of one or moreprocessors to -CTRmode to gener decrypting the encrypted portion of each partially decoding each decrypted frame for rendering on a display cryption processinvolv es combining the frame key tion

ideo decoder. Scheme ”

vectors specified in the PIFF Sample Encryption The decrypted frame isdecoded for rendering on a

- Info

115

Box (“sinf”) and PIFF Sample

- ate the frame key.

Apps

decrypts the encrypted Additionally, the the Additionally, compatible CE devices is a non- volatile storage a non-volatile storage

present inthe“sinf” sting allows

-CTRmode to COMPLAINT OR -OR he he

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releases of the application and service remain compatible with CE devices. use the service. It further ensures that iterative versions, updates, and subsequent importing the Accused ’486 Infringing Products in violation of 35 U.S.C. § 271(a). ’486 patent in the United States bymaking, using, offering for sale, selling, and/or 290 claim claim 1. with a playback device that, when used as intended, practices themethod recited in it provides and specifically intends to provide an application and service to be used a s patent is directed to a content security architecture that deciphers frame keys within device and specifically intends to provide an application and service for CE playback content security deciphering frame keys within a secure video decoder, efficiently enhancing wrongful acts in an amount subject to proof at trial. DivX, and DivX is entitled to intended as service and specifically intends that its end users by reference as though fully set forth herein.

ecure videodecoder - 292,

COUNT VIII: INFRINGE VIII: COUNT 1 of the ’486 288. 289. 290. 291. 292. 293. 294. s that, when used as intended,

in violation of 35 U.S.C. § 271( § U.S.C. 35 of in violation

Netflix has infringed, and continues to infringe, at least claim 1of the Netflix At least as of the date of this Complaint, Netflix knows that the ’486 At least as of the date of this Complaint, Netflix Netflix’s infringement has caused and continues to cause damage to At least as of the date of this Complaint, Netflix knows and The allegations of paragraphs 1-293 , as describedas inparagraphs patent,

has , efficiently enhancing content security.Netflix knows that —

induced and continues to induce infringement of at least namely, providing

at least in the exemplarymanner described in paragraphs recover damages sustained as a result of Netflix’s NO. NO. PATENT U.S. OF MENT meets the limitations of infringe -

116 b

) .

-288 271

- pla

claim 1, when using its application yback devices andmethods for

of this Complaintare incorporated

claim 1. knows that it provides

10,225,588

COMPLAINT

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%20app%20browser 121 (collectively, the “Accused ’ alternative streams of content protected using a common set of cryptographic keys its Netflix service, which provides playback devices and methods for playing back making,by using,offering tosell,s directly infringe at least claim 1of the ’ described app that you ca heterogeneous set of viewing devices. utilizingMPEG the a plurality of alternative streams” by providing applications that enable pl Blu computers, smart TVs, streaming media players, gam Netflix application on numerous devices andstored innon- for example containing an applications that access the Netflix service include a set of one ormore processors. because all playback devices that run the Netflix player application or other client

https://help.netflix.com/en/node/101653?ba=SwiftypeResultClick&q=%20install -ray players 295. 297. 296. 299. 298. 300. in in

, a Netflix player application that is either pre paragraphs Pursuant to 35 U.S.C. §282, the ’ Upon information Upon information Netflix’s playback device comprises “ Netflix provides a “ Netflix’s playback device further comprises “ application n access from the mainmenu”: —and states that “[m]ost devices provide Netflix as a pre volatilememory. Netflix provides details onhowto access DASH S -DASH .

298 ” because” toplaybackcontent, the playbac - 588 312 tandard and and belief, the Accused ’ and belief, Netflix directly infringes the ’

playback device for playing prot Infringing Infringing below. elling, and/or importing into the United States

588

117 —includingsmartphones, tablets, the

Products”).

patent -

Microsoft PIFF 121 588

at least a se patent is presumed valid. e consoles, set- t of one or more processors”

588 -installed or downloaded

a no in theexemplary manner Infringing Products

S n pecification on a -volat ected content from from content ected

k device uses, top boxes,and ile storage COMPLAINT 588 -installed ayback

patent patent the the

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the step[] containing an application for causing the set of one or more common keys comprising at least one key video includes partially encrypted video frames that are encrypted using a set of streams of protected video, v

ideo frames contain encrypted portions and unencrypted portions of data 301.

obtaining a top level index file identifying a plurality of alternative Netflix’s playback device further comprises “

streams of protected video. which is a top For example, the Netflix application downloa DASH DASH Standard toadaptivelystream content by obtaining a top- wherein each of the alternative streams of protected -level index identifying a plurality of alternat -

118

and wherein the partially encrypted Many Netflix players ut

a non-volatile storage

processorsto perform ds a manifest file,

ilize the MPEG- the ilize COMPLAINT .” .” ive ive

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122 at 9 at (DASH) HTTP over

ISO/IEC 23009 ISO/IEC - 10 (yellow highlighting added). a Media Presentati S MPEG-DASH The conditions. between the protected streams based upon network strea Standard encrypted in accordance with the ISO Common Encryption level index file that describes multiple alternative streams of video (namely index file) that includes descriptions of manifest includes theinformatio -1 (2014) Information technology —Part 1:Media presentation descriptionand segmentformats, ,

alternative streams) inan Adaptation Set. or or the Microsoft PIFF S on Description or MPD file (that is,

119

n contained within an MPD file. tandard includes requirements for pecification —Dynamic adaptive streaming

different Represe selecting and then selecting

122

The Netflix COMPLAINT

a top a ming ntations

- level

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the step [] containing an application for causing the set of one or more processors to perform streamedcontent, the

302.

. . . obtaining a copy of the set of common keys.” T Netflix’s playback device further comprises “

streams of video are encrypted in accordance unencrypted portionsdata of partially encrypted video frames contain encrypted portions and set of common keys comprising at least one key includes partially encrypted video frames that ar In addition, “each of the alternative streams of protected video CommonEncryption S S resolution) using the samekey. key. each have the same resolution and enc instances, Netflix encodes a plurality of alternative streams that using a set of common keys comprising at least one key. In som video includes partially encrypted video frames that are encrypted so that each of the plurality of alternative streams of protected pluralitye streams alternativ of described in the top-l comprising at least one key. Furthermore, Netflix encodes a partially encrypt video frames using a set of common keys pecification. In manyIn instances, Netflix encrypts all streams (irrespective of Netflix playerapplication

Specifically,Netflix usesan AES - tandard

120

- .” .”

As noted above, the plurality of

and the Microsoft PIFF obtain ryptsthem using the same s

the key indicated by the a non-volatile storage

with the ISO ISO the with -CTRcipher to o play wherein the the , and wherein e encrypted using a

evel index files

COMPLAINT back back e

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and takes “current networkconditions : into playback account” device during Overview.pdf 124 d159db052746 123 specified KID the step[] containing alternative protected video streams that share a common KID a stream for example, the Netflix player application detects streaming conditions and selects detect Netflix documentation clearly in

https://medium.com/netflix See Open Connect Overview s 303.

streaming conditions

from

an application for causing the set of one or more processors to perform

. Netflix’s playback device further comprises “ , at 4.

, for example, the plurality of alternative .

detecting streamingconditions for the playback device

in the PIFF the in because it “adaptively selects the optimal stream” -quality -techblog/high , dicates that the Netflix player application (“client”) https://openconnect.netflix.com/Open- -

121 Track

streams of protected video. For example,

Encryption -video-encoding-

a non-volatile storage Boxes of the plurality of .

at COMPLAINT ” because, Connect - scale 124 - 123

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the step[] containing an application for causing the set of one or more processors to perform 125 the step[] containing an application for causing the set of one or more proce protected video based on the detected streaming conditions .” because, for example of the selected stream of protected video within an associated container file S stream of protected video within the container file indexes in the form an sidx of box, which provides byte ranges for portions of a

tandardrequires including

ISO/IEC 23009 ISO/IEC 304. 305.

of of

. selectingstream a . receiving a container index that provides byte ranges for portions Netflix’s playback device further comprises “ Netflix’s playback device further comprises “ 1 at(Section-1 87 6.3.4.3). , MP4

container files encoded by Netflix include containe an sidx box sidx an from the plurality of alternative streams of -

122 w

ithin the

. For example, the MPEG MP4

container file container a non-volatile storage a non-volatile storage See See ¶¶ ssorsto perform

301 : COMPLAINT 125 - 303

” DASH -DASH .

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126 box on the provided byte ranges” because Netflix applications use, for example the step[] of . . . requesting portions of the selected stream of protec containing an application for causing the set of one or more processors to perform video.” For example, of frames of video within the requested portions of the selected stream of protecte the step[] of . . . locating encryption information that identifies encrypted portions containing an application for causing rdance with the Microsoft PIFF S PIFF utilized Microsoft the acco with isin rdance received PIFF Sample and Subsample Encryption Boxe encrypted portions of frames of video within the selected stream (for example Netflix, Netflix player applications locate encryption information that identifies

PIFF Specification, page 2.

to make HTTP byte range requests for content. 306. 307.

Netflix’s playback device further comprises “a non-volatile storage Netflix’s playback device further comprises “a non-volatile storage to decrypt thepa

the set of one or more processors to perform rtially encrypted streams received from -

123

: pecification

s “uuid”). The process 126

ted videobased COMPLAINT sidx sidx the , , the the , d

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samples from MediaExtractor) using the common keys ( the step[] containing an application for causing the set of one or more processors to perform key indicated by the KID inthe PIFF portion of the partiall applications player Netflix withinthe locatedencryption information using thecommon setof keys ” because alternativevideo streams) deviceunder the processor’scontrol toplayback dec application(s) causes, the processor(s) and the hardware elements of the client application causes, or Netflix client software inconjunction with another requestedportions of the selected the step[] of . . . playing back the decrypted frames of video obtained from the containing an application for causing the set of one or more processors to perform tests its service using various playback devices.

308. 309. 310.

. decrypting each encrypted portion of the frames of video identified Netflix’s playback device further comprises “ Netflix’s Netflix’s Netflix directly infringes at least claim 1, least at as described, y encrypted frame ( playback device further comprises “a non-volatile storage .

decrypt stream of protected video” because the Netflix , or cause the decryption of,

Track -

124 for example

Encryption -

, rypted video. the the

Box for example demultiplexed, encoded a non-volatile storage for for

the encrypted the pluralityof

the common COMPLAINT

when it

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releases of the application and service remain compa use the service. It further ensures that iterative versions, updates, and subsequent Netflix to ensure that the largest ecosystem of CE devices possible may seamlessly critical to ensuring the success of the Netflix streamingservice. Testingallows 314 claim importing the Accused ’588 Infringing Products in violation of 35 U.S.C. §271(a). ’588 patent in the United States bymaking, using, offering for sale, selling, and/or streaming. to encode alternate video streams, reducing playback stalls during adaptive bitrate patent is directed to a DRM architecture that uses common frame encryption keys require to make video content available over the internet. Specifically, the ’588 streaming while maintaining the content security that it and other content providers patent devices that, when used as intended, and specifically intends to provide an application and service for CE playback in paragraphs 298 wrongful acts in an amount subject to proof at trial. DivX, and DivX is entitled to recover damages sustained as a result of Netflix’s

- 315,

1 of the ’588 311. 312. 313. 314. 315. 316. DivX hereby demands a trial by jury onall claims and issues so triable. enables Netflix to offer its users an improved experience for adaptive bitrate

in violation of 35 U.S.C. § 271( § U.S.C. 35 of in violation

Upon information and belief, testing Netflix- Netflix has infringed, and continues to infringe, at least claim 1of the Netflix has Netflix At least as of the date of this Complaint, Ne At least as of the date of this Complaint, Netflix Netflix’s infringement has caused and continues to cause damage to - 312 patent, .

induced JURY TRIAL DEMANDED TRIAL JURY at least in the exemplarymanner described in paragraphs ,

and continues to induce to continues and meets the limitations of -

125 b

) .

tible with CE devices. tflix knows that the ’588 ,

compatible CE devices is

infringement of at least

claim 1, knows t knows

hat it provides as described COMPLAINT

ROBINS KAPLAN LLP ATTORNEYS AT LAW OS NGELES

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equivalents, in violation of 35 U.S.C. §271(a); of one or more of the DivX Patents, either literally or under the doctrine of

claims of the DivX Patents in violation of 35U.S.C. § at law or in equity, that this Court deems just and proper. maximum rates allowable under the law; and establishedat trial; the for which DivX isentitled as a consequence of the infringement; costs, and expenses; “exceptional case” and thereby awarding to DivX its reasonable attorneys’fees, not less than a reasonable royalty; (and, if necessary, related accountings), in an amount to be determined at trial, but damages adequate to compensate for Netflix’s infringement of Patents the DivX

A. WHEREFORE,DivX respectfully requests that the Court: B. C. H. G. F. E. D.

period of infringement of the DivX Patents following the period of damages

Enter judgment that Netflix has directly infringed one or more claims En Enter an order awarding to DivX such other an Enter an order awarding to DivX pre Enter an order for a post-judgment equitable accounting of damages Enter an order that Netflix account for and pay toDivX the damages to Enter an order, pursuant to 35 U.S.C. §285, deeming this to be an Enter an order, pursuant to 35 U.S.C. §284, awarding to DivX ter judgment that Netflix has induced infringement of one ormore

PRAYER FOR RELI FOR PRAYER

126

- and post-judgment interest at the EF 271(b);

d further relief, whether

COMPLAINT

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DATED: DATED:

March 5 March , 2019 ,

Emily J. Tremblay ( [email protected] Facsimile: Telephone: 90067 CA Angeles, Los 2049 Century Park East, Suite 3400 LLP KAPLAN ROBINS [email protected] Daniel L. Allender, SBN 264651 @RobinsKaplan.comRSilberfeld Roman M. Silberfeld Telephone: 55402 MN Minneapolis, LaSalle800 Avenue, Suite 2800 KAPLAN ROBINS [email protected] Rajin Singh Olson ( [email protected] Mary Pheng ( [email protected] By: LLP KAPLAN ROBINS [email protected] William E. Manske ( [email protected] Bryan J.Mechell ( [email protected] Aaron R. Fahrenkrog ( [email protected] Christopher A. Seidl Christine Yun Sauer, Facsimile: Shui Li ( [email protected]

127 /s/ Roman M. Silberfeld

pro hac

Roman

(310 (310 (612 (612) 339 - pro hacvice ) ) ) 349 )

vice 552 229 pro hac vice Silberfeld M. pro hacvice pro hacvice pro hac vice 62783 SBN , (provice hac

LLP SBN SBN - - - to be filed)to be 0130 5800 4181 8500 pro hac vice

tofiled) be 314307

to be filed)to be

to be filed) be to

to be filed)to be

to be filed)

COMPLAINT to be filed)to be

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DIVX, LLC DIVX, PLAINT FOR ATTORNEYS Facsimile: Telephone: CA View, Mountain 2440 West El Camino RealSuite, 100 LLP KAPLAN ROBINS -

128

(650 (650) 784-

) 784 )

- 94040 4041 4040

IFF

COMPLAINT