ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
ALPHA TRIAL GROUP ALPHA TRIAL 1throughand DOES INC. APPLE, company LLCKPAW, Counsel for Email: Telephone: Los Angeles, CA 10 ZUIDEMA A. JEFFREY WELSH K. RICHARD 94 0
Wilshire Blvd.
v.
jzuidema rwelsh@atgllp ,
Plaintiff , , a a (310)
California limited liability California @ SUPERIOR COURT OF OF COURT THE STATE CALIFORNIA SUPERIOR 90024 Plaintiff, Defendants. atgllp 562 KPAW, LLCKPAW, , Suite 20 .com , inclusive, (State Bar No. -
.com 4 (State Bar No. 550
, corporation
LLP 1126
COUNTY OF COUNTY
; 208825
248057 COM COMPLAINT NO. CASE )
PLAINT SANTA CLARA SANTA )
ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
associate, orotherwise, ofDefendants suedasDoes County, California, with its principal addressa County, California. a California limited liability company with its principal place in ofbusiness result of developer misconduct and consumer fraud. Bythis lawsuit, Plaintiff seeksto recover itsas losses does not applications forsale in the Store App based onApple’spromise ofa “safe” environment, Apple precise Apple and, in response,Apple d by submitting fake reviews to elevate themselves in Apple’ssystem. Plaintiff complained to Plaintiff’sdown sales. What’s worse, top ofthe Store’ssales App worldwide. Then, copycat and would simply give up and sell its application to Apple at a discoun Apple threw uproadblock after roadblock that made nosense struggl after Apple failed to acquire on Apple’spromise that the Store App isa safe and fair environment. countless developing hours a revo dollars in profits at the expense ofsmall application dev exploited its monopoly ed to bring Once Plaintiff finally got its application to market, Plaintiff’s application vaulted to the Plaintiff LLC KPAW, bringsthis action 3. 2. 1. type ofunfair competition. While Apple enticed Plaintiff to develop and publish ,
in f
and bring to an end act police itsStore, App undoubtedly because it profits massively Plaintiff Apple isa California corporation registered and doing LLC,KPAW, ownedand operated byKostaEleftheriou and Ashley its
revolutionary texting technology to market Store on Apple’sApp power is
unaware ofthe true names orcapacities, whether individual, corporate,
Plaintiff’s application exploitation, forApple’sown
to over applications compatible with its devices to make billions of , id ne Apple’s fraudulent and unfair practices. lutionary texting technology to sell inStore Apple’sApp based xt to nothing, despite its stated policies forbidding this
INTRODUCTION INTRODUCTION these scammers vaulted to the top ofsales in the Store App COMPLAINT PARTIES t One Apple ParkWay in Cupertino, California. -
against Defendant 2
-
1
through 20,and therefore these sues
elopers and consumers.
scam . Evidently, Apple thought applications surfaced driving t. Instead, Plaintiff drove on. Apple, Inc., because Apple has bu As summarizedAs below, siness insiness Santa Clara
San Francisco from rampant Plaintiff spent Plaintiff Eleftheriou, is
because Plain
tiff
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Defendants bysuchfictitious na time, Apple permits other developers that Apple doesnot view asreal competition, including se developer onthe cheap, Apple attempts to crushthat developer through expl and profits from rampant fraudulent practices. IfApple cannot buya desired application from a systemati applications with the promise of Apple Watch. Apple entices software application developers like Plaintiff to develop innovative consumers can buyapplications compatible wit California Civil Code. giving rise to Plaintiff was reside ortransact in business Santa Clara County 395 and 3 actions were later rati were acting within the course and scope ofthei Defendants were acting through duly authorized and empowered agents and representatives, who Defendants, and in doing the things alleged, w authorization of,the named Defendant. the occurrences alleged acting orwas in concert with, and with the permission, approval, and Plaintiff allege to set forth the true names and capacities ofthe DoeDefendants whenthey are ascertained. lective application of opaque and unreasonable constraints against the developer. Atthe same negotiated, entered, and performed, at least partly, 5. 4. 7. 6.
ca 95 lly flexes its m .5 s because Venue isproper Each ofthe Defendants the was agent oremployee The AppleStore App isthe only place where application developers can sell and This action isnot subject to the provisionsofsections 1812.10or2984.4ofthe
that e fied and approved. ac ’s
Defendant and now
h ofthe fictitiously named Defendants isresponsible in some manner f claims arose onopoly muscle against potential competition through the Store App in this Judicial District mes. Plaintiff will seek leave ofthe Court to amend this pleading a fair and secure Store App in which to sell them. Intruth, Apple
in San
COMPLAINT during all the events covered bythis ta VENUE FACTS
Clara County. as acting within the scope ofsuchagency. - r h
3 authority at the time oftheir action orwhose ; Apple devices, l
- the contract that isthe subject ofthis dispute
under Code ofCivil Procedure sections
in Santa Clara County
ike the ultra
o f each ofthe remaining oi - ; and the conduct popular iPhone and tive fees and Co mplaint did or ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
scam competitors, to peddle similar, inferior produ 2012, Flek Royal National Institute of Blind People in 2012and Apple’s BestStore ofApp in 2012.Later in 2012, Fleksygenerated millions ofdownloadsand received numerous awards,including from the what the userwanted to type even if they don initially developed forthe visually impaired oniPhonesusingpredictive technology to determine generation oftyping technology called “Fleksy.” Fleksy Google acquired it. acquire BlindType, Eleftheriou Mr. never released that application in the Store App because taps relative over a virtual keyboard, like most smartphones, BlindType analyzed the position ofthe finger advancement, asthis had never been done before with suchspeed and accuracy. Instead oftyping tousers type ontouchscreens without later developed a revolutionary smartphone typing technology called “BlindType,” which enabled downloads in the first week and generating more than $100,000in three months.Eleftheriou Mr. Eleftheriou2009, Mr. developed iSteam, a top application w successful application developers creating numerous smartphone applications. example, For in Eleftheriou began developing Store forApple’sApp and quickly became one ofthe first for the purposeof“creating a vibrant 2008, whenApple announced the release ofits iPhone Software Development Kit to developers ripped offand exploits the developers trying to deliver innovation to consumers. the sale ofApple them. Apple then lie and manipulate their ratings. Apple doeslittle to police these practices because it profits from Scammers oftentimes usescreenshots and videos taken from legitimate developer’s applications 8. 9.
s y became the 19th inductee intoHall App AppleVisiOS ofFame. In2014,Fleksy to
For hispart,For Mr From 2011toEleftheriou 2016,Mr. each - related applications to protect consumers, when,in fact, Apple lets them get
s other to determine which characters the useristyping. While Apple soughtto to its regulator . Eleftheriou’s relationship with Apple began shortly after March s byassertings that it must maintain its monopoly powerover
third party e ven l COMPLAINT ooking. Thisan was incredible technological o - t enter a single correct letter. Since its release in
4 developer community.” Shortly
- ct
created and s becauses Apple
is
an alternative text input system or ldwid led the de e with over a million profits from their sales. ve lopme
a
nt ofthe next fterw ards, Mr. ards, Mr. ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
officially broke the World Guinness Record forthe fastest touch distribute onApple platforms.” announcing incredible time to develop and distribute onApple platforms.” “with over 100billion appsdownloaded from the Store App and $40Bpaid to developers, it’s an build the polished and intuitive appsthat Apple customers expect.” the latest technologies and get guidance ondesign and app review criteria [ so software.” Thro distribute onthe Store” App offering developers an “incredibly rapid adoption rate ofnew “billion active devices worldwide.” “The Apple Developer Program provides all the resources to “Infinite Opportunities” by security, and content.” because continues to advertise the Store App as“a safe and trusted place to discover and for hundredsofthousands later, Pinterest acquired the Fleksydevelopment team foran undisclosed amount. 10. 11. Apple
that, “with over $86billion paid to
As In targeting developers “ensur u gh this program, developers could the Store’s App [es]
that the appsweoffer are held to the highest standards forprivacy, of
enabling app
lications
success grew
them , Apple designed specifically forthe iPhone. t COMPLAINT o “create the next generation ofapps” forthe touted that - d
, Apple 5 e
velopers, it’s an incredible time to develop and -
also
marketed “discover best practices forimplementing
it
s platformss wouldprovide
In 2018,Apple doubled -
screen text message. Two years it
In 2016,Ap a s as safe and trusted developers Indeed, p
download apps” le boasted that,
them
Apple down down source ] can over a
by
ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
that Apple promised did not experience the “incredibly rapid adoption” ofhisapp models timing to reliably the autocorrection and other considerable newly released behind, he so could Eleftheriou decided to leave Pinterest in fairly and equally to all developers. success forapp developers, i co and a great created the marketplace. distribute [their] products and[their] grow business”through a “secure, trusted, and accessible” brightest ideas into appsthat change the world” byhelping developers “ mpetitive markets where any great idea
13. 12. 14. , something never accomplished on an Apple Watch that wouldbe coming out.
release
App StoreApp to be a safe and trusted plac bu
effort, resou siness opportunitysiness fordevelopers everywhere. In reaffirming To this day, Apple maintains that it “is committed to helping developers turn their Based Apple Watch.
t he application that so he could pursue an opportunity .
largely rces, and time n predictive on its assurances Shortly thereafter part because ofthe rigo
Apple’s representations However, as ”
keyboard algorithms
needed the summer of ca to develop COMPLAINT
to developers and users n flourish. The Store App hasbeen an engin -
, he
t Mr. EleftheriouMr. 6 o overcome the difficult challenges with getting utilize the larger and more powerful watch
e -
began for customers to download the app the first r ous standardsous wehave in place
2017
and
developing the technology
before to correctly, work predictably, and , leaving million … continuing or - ever
completed initial We believe in thriving and get the guidance
. Healso keyboard application forthe , Apple recently stated build, test, m assurances
began s in compensation
an development, he planning , d Mr. Mr.
, ar app review
expending – s theys love ke
applied e t, and : of “ the We
ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Marsdenmet17, 2019,Mr. with Eleftheriou Mr. MarsdentoMr. focuson improving Apple’stext input functionality onits platforms. Januar On the industry recognized him asa leader in companies like (a Swype meet of keyboard technology and then Text Input Special Projects Ma applications, Apple began to take notice. InJ messages” in its re ke their reviews ofFlickType. example, For AppAdvice referred to FlickType as“a truly easy to use toword my colleagues inStore App editorial.” prai very valuable in that Review.” sense,asdoesApp Ina “ not understand the value ofthe improper rejections caused in the release ofFlickType application accessibility department was Apple’s improper rejections considering dropping the subscription rejection overturned a month (which Apple permitted onother applic which then was just released. Apple rejected the submissionbecause ofits subscription model September Eleftheriou 2018,Mr. submitted FlickType f StoreApple’s App asan accessible iPhone keyboard forthe unfortunate and definitely not the case!” yboard” in November 2018.Similarly, iDownloadBlog called FlickType “an easy wayto type sed
and FlickType discuss
16. 15. 17. Plaintiff’
Later in November, Apple’sDeveloper Rela EleftheriouIn 2018,Mr. first submitted hisnewapplication, “FlickType,” to Recognizing the massive leap forwardthat FlickType represented in text entry s
FlickType ap view that same month. c q uired byNuance in 2011)and Dryft (acquired byApple in 2014)and . Bywayofbackground, Marsden founded Mr. successful keyboard .
receiving complaints ea
Flick p rlier. stating: T I n November ype app business mobusiness ations), even thoughEleftheriou Mr. just got that same
“That’s a great watch keyboard! Iwill put in a good
The email went onto state: touchscreen keyboard technology. Apple brought in COMPLAINT an .” Developer R
- uary 2019,Randy Marsden,Apple’sformer head Numerous journalists echoed these sentiments in
7 and
-
, del from users
Plai
discuss
nother t
o avoid any further delays caused by ntiff announced to itsthat users it was or
the newversion ofthe Apple Watch, tions emailed Plaintiff blind and visually impaired. In ed
el email, Apple’sDeveloper Relations
because ofthe delays Apple ations asserted that this was
Apple nager, ,
stating “I that know yourapp is ’ s interests invited
“that Review App does
Mr. EleftheriouMr. to
in
stat possibly in g
the ’s
y
ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
purchasing FlickType. Duringthis me application, increasing the functionality ofFlickType byincluding a note watc FlickType system forthe Apple Watch into their applications. own enabl to prevent this from reoccurring in the future. Apple never provided a response. Store. Plaintiff asked rejection through Developer Relations before getting FlickType ret keyboard application, “Shift Keyboard,” to launch onthe Store. App Plaintiff had to appeal the time.” Yet during this time frame, R Apple’sApp for Apple Watch. this For reason, yourapp will be removed from sale onthe Store App at this not in compliance with the Store App Review Guidelines …Specifically, the app isa keyboard FlickType application from t EleftheriouMr. know. himself that the demonstration went well, getting the senior engineer Watch Team, including a senior engineering manager onthe product side.Marsdenexplained Mr. January Marsdeninformed 24,Mr. Mr. “ Marsden Mr. 10 minutes. It seriously hasn’t made a mistake yet. Nice job, expressing FlickType the was “best one that Ihave seen” and “could be a key feature Apple shouldbuythis h ed
keyboard were regularly updated, approved, and available onthe Store App
19. 18. 21. 20.
to use other third
watch how impressedhow hewith was FlickType stating: “I’ve been told Eleftheriou Mr. that “this [FlickType] isreally valuable ). Notwithstanding the foregoing, later that evening, Apple suddenly removed the coupleA daysafter this meeting, Marsden Mr. During thi Plaintiff launch
M keyboard for Plaintiff r. Marsdenstated that he woulddiscuss - par
w
t hy this y from you
s sames time frame, Plaintiff developers to he Store App stating: “Uponre ed an happened ”
and
integrable versio eting, Marsdenhad Mr. nothing but praise stating that “ , incorporate E hope it third
and if Developer Relations had any onhow suggestions l eftheriou that he COMPLAINT - party app - ’
s nots going t 8
e - v
FlickType’s iew department permitted a competitor watch n ofFlickType developed
lication While Apple kept rejecting
the application presented FlickType to the Apple - o be
evaluation, wefo Ko excited downloaded (who it for contacted s incorporatings the same FlickType
s streamlined gesture typing FlickType Notes,a separate too t a.” urned forsale onthe App
in February 2019,which expensive During a subsequent call, playing with it forthe past
Mr. EleftheriouMr. - . with his boss andwith let hisboss
taking function with the ” f or the watch.”
He then stated that u , Kosta. n
d that yourapp is .
the ”
On On again
ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
wa applications and third P Apple claimed that “full keyboard appsare no and WatchAppList stated the application “a was fundamentally better keyboard.” while And flawlessly”“works a it as“simple, enjoyable and highly effective.” review A byiMore in stated in and are not easy to use” flew in the face ofthe numerous reviews to the contrary, suchasAppAdvice and are not ‘easy to use.’”Review’s App not optimized orintended forfull by stating that “full keyboard appsare not appropriate forApple Watch” because “its display is for texting but rejected in the FlickType Notes the same Apple Watch keyboard that hasbeen permitted in Despite this,Review App continue Review’s responses. April 2019,with A Store.App Again, Plaintiff forced was to gothrough another extensive review going process into Apple Watch.” Yet Apple permitted competitor watch rejected it stating: “your appApple uses W Plaintiff resubmitted the application after adding some sample notes content. Again,Review App March stating: “YourAp that integrated FlickType’s watch keyboard, Apple again rejected Plaintiff’ However, despi laintiff’s watch keyboard application, Apple continue tch keyboard to reduce the chances ofbeing re
iDownloadBlog, both ofwhich praised FlickTyp 22. 23. its review that the “FlickType gesture keyboard app makes typing a breeze,” describing
rejection “just was a mistake” and that there is“not a problem with what yo
After reach In M te allowing competitor watch keyboard applications and third pp Review dragging its feet the entire time, r ay nd -
party applications integrating FlickType’s watch keyboard on the App 2019, App Review2019, App attempted to justify its rejection
is “seamless.” Inside Apple characterized it as“ast pl ing out to Developer Relations, e Watch app isonly a keyboard and did not have pre keyboard d
to reject Plaintiff
comment that it “create[s] a pooruserexperience and COMPLAINT atch asa keyboard which isnot an intended us - type apps t appropriate forApple Watch” when it came to - applica
9 je
-
cted e ’s
tion – Notes’s easeNotes’s ofuse.InMarch 2019,Forbes keyboard applications to remain onthe d to allow competitors’ watch keyboard
upon submiss such appscreate a pooru application.
Apple informed for
his note
FlickType Keyboard application el uctant to provide any written
taking
Plaintiff ask July 2019stated that it ion to the Store App
on the Apple onishingly accurate” Plaintiff that of the FlickType Notes s applications in early - party applications - l ed oaded content.” se
r experience Ap u’re doing.” ple why Watch. the e . of App App
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Store. Notwithstanding t developers profits from them is the Store App isa hotbed o marketplace and distribute their products andtheir grow through business a secure, trusted, and accessible on the Store. App of revenue in June.Atthe end ofthe year, FlickType named was one Ma application applications onthe Store. App year of approve hours applications FlickType Notesthat Apple competitor’s are not appropriate forApple Watch.” to be separately soldasan independent application, each time reciting that “full keyboard apps FlickType keyboard application for “Lens forInstagram,” all containing the latest version ofPlaintiff’s integrable vers StoreApp (suchas 2019. While App states its “original rejection y, Plai . P
25. 24. 27. 26. revenue. d laintiff also resubmit . ntiff released a faster swipe version ofhiskeyboard, which generated another $72,000
However, bythis time, Apple’s
, incl across the entire Store, App generating $130 had is keyboard In January 2020 These wrongfulrejection continued issues to plague Plaintiff through December As itAs tur Once allow just a façade uding
been le permitted Plaintiff’s many third .
Specifically, “Chirp forTwitter,” “Nano forReddit,” “W
those by in place application ns out,ns however, hese indisputable facts, in responseto Plaint ed ont
feedback isvalid” and “that all appeal results are final.” designed to had ted f scams
for asmuch asa year In less , Plaintiff noticed that Apple approved an upd the scam competitors, generating Apple takes 30 percent ofall the revenue
reject the main FlickType Keyboard application, which Apple also he Store, App FlickType quickly vaulted int f or th , which Apple insufficiently
e Apple Watch), Apple refused to permit the Flic than a month ed several times the Apple Watch. Plaintiff resubmitted the same version of
wrongfully Apple’s wrongful rejections COMPLAINT -
10 promise
- , FlickType became the -
, App entice developers party part . T
,000 ofrevenue forthe month. Inlate his time, that now competit le issu to help
ne
had already cost Pla atch e
r applications to be soldin the
billions ofdollars in profits for d develop polices
its approval Chat forWhatsApp,” and if
of to the Store App f’s appeal,f’s Review App
the “T
ers build, test, market, because it generated number onepaidnumber at o the top ten paid op Apps of2020” op Apps e fora within a couple of ion ofthe intiff
directly by ive . kType app
The truth over a
ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
the A th rating scams to the tune of$300,000per month complaints. manipulated ratings received after Apple ultimately removed left its developer account in place report documenting KeyWatch’s scams attracted a lot ofsocial media attention remove the KeyWatch app from the Store App until February 2021 However, despite repe forbidden and numer little to mo applications vault with barely usable application perpetuates App these ratings, people would fake rating app Apple’s platform to create e order ofsearch results n lication l th ed e having Mr. Eleftheriou’sMr. pp Stor ous ous . De
29. 28. 30. nothing to ensure fair competition onitsStore. App them widespread not fake ratings. The Store App guidelines explicitly provide that ratings manipulation is spite
s byintens s onthes Store App
on the Store. App W In eff reduc e. ahead ofFlickType onthe Store App and less control over
that As one As Plaintiff fell victim to the rampant scams that Apple knowingly ignores Similarly, another scam competitor, In fact, Apple haslongabout known Plaintiff’s ect, Apple has ed violations will result in termination ofthe offender’s Development Program. .
tionally displaying them next to each application
A Plaintiff’s
ated complaints from legitimate developer example, scam competitor pple hasyet to remove that application from the Store App despite second oriety .
repeated efforts to inform the KeyWatch developer copycat app
use
s
but does on report documenting KeyWatch’s scams . Thes its users revenue from well external enabled ithin a month ofFlickType’s release, scam competitor
, permitti social media e applications bogus have
lication nothing to curb the problem. Rather, App ’
sources to discover applic the WatchKey developer to ng COMPLAINT it to run - s . ati
, effectively pushingFlickType farther on down
11 and
on dis “KeyWatch” launched in February 2020wit -
- over “WatchKey
fraudulent developers usingloopholes in fake reviews fro Apple scams totaling over $
m stole covery phase $100,000 per month to
the Developer Program, it only was
about th
The problem iswidespread. and vet applica Plaintiff , glowing false ratings ” s
used launched in March 2020with
and o , is
after Eleftheriou’s Mr. first
continue running its fake ’s potential’s . and, thus,over
problem,
Apple to prioriti an thers d Apple tions 3,0 , Apple did not knows thatknows 00,000 . Even then, App just Apple has
ze those , le enab customers ’ resulting in s resp s $20,000 per , which de .
s appeareds vel and While onse to it les the
if
opers d i . Scam one t hid h se
. le
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Apple turnsa unscrupulous conduct and ensure a fair competitive marketplace justifies its monopoly byclaimi holds both its device and users developers hos devices from being app space Apple continue fails to police these fraudsters, costing hone Watc either ofthem, even though its Director Review ofApp acknowledged knowing date, notwithstanding numerous complaints an “Star Gazer+” application hasbeen allowed to exist WatchBoard isusingKe list and effectively stealing customers away from legitimate developers buoy those applications to the top ofthe Store, App driving legitimate applicati em termi “a place youcan trust” and taking 30percent ofdeveloper’s revenue. Following onthe heels of policing practice to the detrim fraudulent least one scam competitor, “KeyWatch,” dysfunctional copycat applications and manipulated r with erged following the same methodology employed by steal hKey and Star Ga na 32. 31. 33. ting KeyWatch from the Developer Program, a “new” scam developer, “WatchBoard” has ing . Rather,
advertising.
over a $100 blind eye Indeed, despite this per B Despite massi possessing s
ecause Apple fail to amass
Apple haseffectively
able to obtain applications from any source other than the Store. App Apple zer+ applicati Apple standsby,safe in its monopoly position, and counts its cash.
to rampant fraud and exploitation to make an easy profit. yWatch’s video inside its application. Another scam developer for the ,000 a month from huge ent and ofusers developers, all while advertisi ng it profit s
to
i ons s s necessarys to protect itsand users deve va properly police the Store App
for itself ve resources and .
sive abuse, Apple knowingly continues its ineffective
created a monopoly b use COMPLAINT st developers millions Plaintiff d
tage. - d Plaintiff’
. 12
reports Apple’s
- Yet
f ’s or years, generating over $5million. To at
monthly ings schemes , Apple hasdone absolutely nothing abo s each time it faces antitrust claims, Apple KeyWatch
App StoreApp FlickType demonstration video in technological savvy,Apple
y FlickType
prevent for the benefit ofboth , and perhaps billions, – , doe
to promote their products sca i.e., usingfake ratings to
s nots just like Plaintiff. Infact, ing m competitors revenue byutilizing
the ofits users ng the Store App as lopers on about
dominate the s down onthe down s
from intentionall the . get away
In truth, while
i ts
. At ut y
ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
at trial. result ofits false and misleading applications enormous amounts oftime and other Plaintiff ha marketplace. However,asalleged [ ideas into appsthat change the world” byhelping d all developers standards forprivacy, security, and conte that the Store App ensuresthat the applications onthe Store App “are held to the hi advertising stating that the Store App is“a safe an should beto known, be untrue ormisleading ….” which isuntrue or circumstance ormatter offact connecte t … in any manner ormeans whatsoever, includin thereto, to make ordi anything ofany nature whatsoever to d person, firm, corporation orassociation, orany employee hat real orpersonal property orthose services, professional orotherwise, their] products and [their] grow business”through a “secure, trusted, and accessible” ispose ofreal orpersonal property orto perform services, professional or
36. 35. 34. 38. 37.
s
on the su ; ” ffered injury in fact, including without limitation the ofmoney loss and expending Developer Code &§17500providesBusiness Professions tha Pl Pla a resultAs ofApple’sfalse and misleading and that the Store App “is committed to helpin aintiff incorporate intiff requests that this Court order Apple to restore the money Plaintiff lost asa misleading, and whichor isknown, bythe Apple sseminate orcause to be made ordisseminated be s ands other members ofthe public are likely to
platforms, wh ( False Advertising
statements and FIRST CAUSE OF CAUSE FIRST above, none ofApple’ss
or to induce the public to enter into any obligation relating s
the allegations set forth in paragraphs 1through resources into d with the proposedperformance ordisposition thereof, ich could be marketed nt COMPLAINT ; ”
that the -
13 –
advertising, the amount ofwhich will be proven g over the Internet, any statement, concerning
B&P §17500 Code d trusted place to discover and download apps
- evelopers “
developing the FlickType series of gui ACTION
d
thereof with intent directly orindirectly elines are
statements and advertisements, tatements are true build, test, market, and distribute only g developers turn their
t “[i]t isunlawful forany on the Store App “applied fairly and equ exercise ofreasonable care )
fore the public in this state be deceived byApple’s or concer
. otherwise, or
ghest ning any . 3
brightest 3 .
ally to
; ” ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
and resources in developing FlickType and has incurred actual financial and losses injuries, including in its devices can ha applications it will al mobi next to each application drive Apple’scompetitors from the Store App Apple. applying those same standards onother developers are who not viewed aspotenti selectively enforces opaque and onerousstandards against potential competitors Apple theirgrow th business th of the acts and conduct identified above, including even if noone is immoral, unethi untr include any “unlawful, unfair orfraudulent” act orp rough promises ofcommitting to help them build, test, market, and distribute their products and ue ormisleading” advertising. le applications, enabling Apple to flex its mon ’ s a s Apple knowinglya hosts 43. 42. 41. 40. 39. 44. ssertion that the gui
Apple hasengaged in unlawful, unfair, and fra “ act business A orpractice is“unfair” if it offendsan established public policy oris Code &§17200definBusiness Professions Plaintiff incorporate As a resultAs ofApple’sunlawfu cal, oppressive, unscrupulous,orsubstantially injurious to consumers. Fraudulent” acts business include any act orpra actually ve access to. low developers to upload to the Store App and, consequently, what of users rough a fair, s . Indeed, the Store App remai deceived. ( Unfair Competition d
elines are SECOND SECOND
hotbed offraudulent scam
s ecure, trusted, and accessible marketplace. In
the allegations set forth in paragraphs 1through “ applied fairly COMPLAINT CAUSE O CAUSE at least l, u , including -
14 – nfair, and fraudulent practices, business Plain
B&P §17200 Code - by falsely enticing developers like Plaintiff two yea opoly muscle byarbitrarily determining what
ractice, aswell asany “unfair, deceptive, ns thens only marketplace available forApple F ACTION
and equ
b
y es “unfair busi rs oflostrs revenue. activity onitsStore App meant to
knowingly the form ofexpenditures ofmoney udulent busines ally to all developers, ctice likely to deceive the public,
)
disp ness competition”ness to laying fake ratings
s practicess byvirtue while not
al competitors to fact, ” 3
8
contrary to Apple .
tiff ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
safe and trusted FlickType series ofapplica amoun expeditious manner opportunity to develop, market, and developer and license Plaintiff’s economic and no implied c manipulate against Plaintiff but not against similar competitors, and allowin rejections and delays, selective applicati un that the parties will not doanything Developer Agreement with Apple. unfair, and fraudulent practices. business preliminary and permanent injunction, and restitution ofall revenu der the agreement. ts f 49. 48. 47. 46. 45. 52. 51. 50. oven or
their ratings and effectively Plaintiff push from the the massive amount oftime, money, and other resources expended in developing the ant Because ofthe conduct alleged above, including Apple’ssystematic imprope In every agreement th Plaintiff entered a Developer Pr Plaintiff incorporates the allegations set forth in paragraphs 1through Pursuant to& Business P Apple advertises to the public at large and to developers that the Store App as“a Plaintiff incorp a directAs result ofApple’sbreaches,
place to discover and download apps” because Apple “ensur[es] that the appswe
of goodfaith and fair dealing. Apple’swrongfulacts were designed to frustrate ( B .
The amount ofPlaintiff’s damages
reach of the Covenant of Good Faith and Fairreach ofGoodFaith and oftheCovenant agre emen tions and at least twoyears oflost revenues. n - economic benefits and privileges. orate FOURTH ts THIRD with Apple, which were to provide Plaintiff with a fair
s to
distribute the allegations set forth in paragrap ere isan implied obligation ofgoodfaith a injure the right ofthe other party to receive the benefits on o rofe
CAUSE OF ACTION CAUSE
COMPLAINT CAUSE OF ACTION CAUSE ssions Code §17200,Plaintiffssions isentitled to a f opaq ( Fraud
- its ogram License Agreement and a separate
15 ap
- ue guidelines and unreasonable constraints
plications onthe Store App )
Plaintiff
will be determined at trial
lost App Store,App Apple hasbreached the
g rampant scam developers to
es from Apple’sunlawful, the
b Dea
enefits under hs 1 hs
ling
through )
nd f
in a fair and , including air de 4 50 the 5 . .
aling
r ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
offer are held t least twoyears ofrevenue. resources in developing its FlickType series ofappli harmed byleaving Pinterest in rating manipula th submi these representations with the intent to induce developers like Plaintiff into developing and these representations recklessly an developers. unscrupulou Program and business” through a “secure, trusted, and accessible” mar helping developers “to build, test committed to helping developers opportunitybusiness fordevelopers everywhere. place intuitive appsthat pr would help developers “discover best practices Store” offering an “incredibly rapid adoption ra worldwide.” “The Apple De enabling developers to “create the next generation ofapps” forthe over a “bill Apple announced that its Developer Program provides them with “Infinite Op e FlickType series ofapplications forthe Apple Watch and reporting scam competitors engaged ovide “guidance ondesign and app review criteria [developers] so can build the polished and – tting applications fordistribution through
55. 54. 53. applied
s cos
established guidelines, Apple assuredit wouldprote o the As a directAs Plaintiff reasonably relied onthese Apple either knew fair nduct and ensure a fair competitive marketplace forthe benefit ofbothand users
tion and copycat applications. Apple customers expect.” ly and equally to all developers highest standards forprivacy, securit
result o
The amount of velo and per Program provides all the resources to distribute onthe App millions ofdollars in compensation, expending significant , ma turn their brightest ideas into appsthat change the f these representations were false whenthen d without regard for their truth. Ineither
relying onApple’smisrepresentations, Pla rket, and distribute [their] products and[their] grow Plaintiff’s COMPLAINT And And -
te ofnewsoftware.” for 16 the Store App ”
“
To this day, Apple maintains t representations bydeveloping and submittin ,
- because ofthe rigorousstandards wehave in ” implementing the latest technologies” an
cations to the Store, App and
App damages will be proven at trial.
ketplace. Through the Developer le y, a
ass nd content.” Intargeting developers, . erts
ct itsand users developers from
the Store App presents Through this program, case made them ormade portunities” by intiff hasbeen ion ac , hat it “is Apple made by losing world” by tive devices
“
a great Apple at d g ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
developing and submitting applications made these representations anyway for believing developers unscrupulous conduct and ensure a fair competitive marketplace fo Pr business” through a “secure, trusted, and accessible” marketplace. Through the Developer helping deve committed to helping de opportunbusiness pl intuitive appsthat Apple customers expect.” provide would help Store” offering an “incredibly rapid adoption rate ofnewsoftware.” Through this worldwide.” “The Apple Developer Program provides all the r enabling Apple announ of safe and trusted place to discover and download ap deter others conduct warranting the imposition ofpuniti ace fer are held to the highest standards forprivacy, security, and content.” ogram and established guidelines, Apple assu –
58. 57. 56. 59.
applied “ developer guidance ondesign and
.
developers “discov from lopers “to build, test, market, and distribute [their] products and[th grow the ce Apple Pl Apple’s Even if Apple believed their representations were tr fairly and equally to all developers d m to be true given the numerous comp aintiff incorporate
similar wrongdoin ity fordevelopers everywhere. that its s
to “create the next generation ofapps” fo advertises
co velopers turn their brightest ideas into app Developer Program nduc t asalleged herein constitutes fraudulent, oppressive, ormalicious er b
to the public at lar ( FIFTH app review criteria Negligent Misrepresentation est practices forimplementing the latest technologies s with the intent to induce developers like Plaintiff into
g the allegations set forth in paragraphs 1through .
for distribution through the Store. App
CAUSE OF ACTION CAUSE COMPLAINT ve damages in an amount sufficient to punis
And And
provide -
17 red ” “bec
To this day, Apple maintains that it “is , ge and to developers that - ps” because Apple “ensur[es] that the appsw ” App it would
so [developers]so can build the polished and s ause ofthe rigorousstandards wehave in
them laints and reports it received. Yet Apple le
asserts the Store App presents protect itsand users devel with r th esources to distribu )
e over a “billion active devices “Infinite Opportunities” by s ths ue, it had noreasonable basis r the benefit ofbothand users at change the world” by
In targeting deve the Store App
program, te onthe App 5 eir] opers from 6 h . ”
it and “a great lopers, i
s “as and Apple e ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
follows: damages losing twoyears o massive amounts oftime and resources into developing owed ongo de while at the same time not applying those same prolonged Plaintiff, and fairly and evenly apply loopholes in Apple’s from manipulating of care to properly operate and maintain the Store, App including preventing scam competitors least twoyears ofrev resources in developing its FlickType series ofapplications to the St App harmed byleaving Pinterest and millions ofdollars in compensation, in the
velopers to manipulate ratings and rating manipulation and copycat app
FlickType series ofapplications f ing despite repeated complaints about these to Plaintiff. 63. 62. 61. 60. 1. WHEREFORE, 65. 64.
. The amount of
campaign ofarbitrarily Apple, asthe provider Plaintiff incorp a directAs result orrelying on Plai An awardAn ofdamages a directAs result of Through the act
f re ntif ratings and reviews, properly polic enue platform to create copycat applications and venue from improper rejections f reasonably relied onthese represe Plaintiff praysfor judgment against Defendants, and ea Plaintiff’s .
The amount of orate ions and conduct identified above, including engaging in a SIXTH app s
Apple’s dam
ing the allegations set forth in paragraphs 1through or the Apple Watch list in a and sole con lying opaque and unreasonable constraints ag lications
ages will be proven at trial.
the developer guidelines. copycat applications onthe Store App
n amount according to proof; CAUSE OF ACTION CAUSE ( Plaintiff’s COMPLAINT
Negligence negligence Appl -
. 18 restrictions
scam
troller - e’s misrepresentations, Plaintiff hasbeen
damages will be proven at trial. and scam competitors ing s , )
, Apple hasbreached
Plaintiff the FlickTyp of
and reporting scam competitors ntations by fraudulent developers
on others, the App Store App
has
fake
been harmed by e series of developing and
expending significant reviews and by
ore, and , owed Plaintiff a d , and the allowing fraudulent
to the detriment of
, which remain application
who arewho ch of them, as duty ofcare lost opportunity by ains
losing 6 expending submitting 1 t .
Plaintiff using engaged s , at uty it ALPHA TRIAL GROUP, LLP 10940 WILSHIRE BLVD., STE. 600 LOS ANGELES, CA 90024 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
DATED: 6. 5. 4. 3. 2.
For anyFor other relief the Court de attorneys’For fees and costspursuant to the costsofsuit;For awardAn ofpunitive damages in an interestFor onthe judgment at the legal rate;
Couns WELSH K. RICHARD By:______GROUP, LLP ALPHA TRIAL COMPLAINT el forPlaintiff -
ems 19
-
amount according to proof; just and reasonable.
Agre
KPAW, LLCKPAW,
ement; and