1 in the UNITED STATES DISTRICT COURT for the DISTRICT of DELAWARE VIATECH TECHNOLOGIES, INC., ) ) Plaintiff, ) Case No. 1:17Cv5

Home , Microsoft Silverlight, PlayReady, Xbox (app)

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

VIATECH TECHNOLOGIES, INC., ) ) Plaintiff, ) Case No. 1:17cv570 v. ) ) MICROSOFT CORPORATION, ) DEMAND FOR JURY TRIAL ) Defendant. )

AMENDED COMPLAINT FOR PATENT INFRINGEMENT

Plaintiff ViaTech Technologies, Inc. (“plaintiff” or “ViaTech”), through its attorneys, for its complaint against defendant Microsoft Corporation (“defendant” or “Microsoft”), alleges as follows:

THE PARTIES

1. Plaintiff is a corporation organized and existing under the laws of the State of

Delaware having a place of business at 1136 Ashbourne Circle, Trinity, FL 34655-7103.

2. Defendant Microsoft is a corporation organized and existing under the laws of the

State of Washington having its principal place of business at One Microsoft Way, Redmond, WA

98052.

JURISDICTION AND VENUE

3. This action arises under the patent laws of the United States, Title 35 of the

United States Code. Subject matter jurisdiction is proper in this Court pursuant to 28 U.S.C. §§

1331 and 1338(a).

4. Defendant Microsoft is subject to this Court’s specific and general personal jurisdiction consistent with due process and the Delaware Long Arm Statute, 10 Del. C. § 3104.

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5. Venue in this Judicial District is proper under 28 U.S.C. § 1400(b).

6. Microsoft is registered to do business in Delaware, and has appointed Corporation

Service Company, 2711 Centerville Rd., Suite 400, Wilmington, DE 19808, as its registered agent, and either directly, or indirectly through its distribution network, has transacted and/or continues to transact business in Delaware, and has regularly solicited and continues to regularly solicit business in Delaware.

7. Microsoft has also engaged in substantial activity within the State of Delaware and derives substantial revenue from goods or services provided to individuals in Delaware.

Microsoft owns and operates a Microsoft Store located within this Judicial District at 137

Christiana Mall, Newark, DE 19702, that offers for sale, and sells, Microsoft software products and devices to customers within the state of Delaware, and offers technical support to customers within this Judicial District purchasing its software products and devices.

8. In a partnership with the Best Buy retail store chain, Microsoft also operates The

Windows Store, located within this Judicial District at 4807 Concord Pike, Wilmington, DE

19803, that offers for sale, and sells, Microsoft software products and devices to customers within the state of Delaware, and offers technical support to Microsoft customers within this

Judicial District purchasing its software products and devices.

9. Microsoft also owns and operates its online Microsoft Store, which also offers for sale, and sells, Microsoft software products and devices, and the digital content of content providers, to customers within this Judicial District, and offers technical support to Microsoft customers within this Judicial District purchasing digital content, and Microsoft software products, and devices.

10. Microsoft has also committed infringing acts within the State of Delaware, and

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the causes of action set forth in this Complaint arise from those acts. As an example, Microsoft

offers to sell and sells, directly or through its retail stores and distribution network in Delaware, including Best Buy, Walmart, and Staples retail stores, digital content and software applications incorporating Microsoft’s “PlayReady” digital rights management (DRM) software, and devices such as personal computers, mobile and tablet devices, and gaming consoles incorporating

PlayReady DRM software. PlayReady DRM software is native to various Microsoft software applications and devices, including Microsoft Windows operating system software (“Windows”),

Microsoft Windows Phone operating system software (“Windows Phone”), Microsoft Silverlight software (“Silverlight”), and Microsoft Xbox 360 and Xbox One consoles and operating system software (“Xbox”). Microsoft Windows, Windows Phone, Silverlight, and Xbox software, devices running Microsoft Windows, Windows Phone, Silverlight, and Xbox software, and digital content incorporating PlayReady DRM software for use with Microsoft Windows,

Windows Phone, Silverlight, and Xbox software and devices, are offered for sale and sold

(directly or through Microsoft’s retail stores and distribution network), are purchased and used

by Microsoft customers and end users of the software, devices, and digital content, in this

Judicial District, and infringe the patent asserted in this action.

11. Microsoft also offers to sell and sells, in this Judicial District, PlayReady DRM

software development kits (SDKs), application development kits (ADKs), server development

kits, and device porting kits, and test tools for users of PlayReady software development kits,

application development kits, server development kits, and device porting kits, for developing

and testing, for example, PlayReady DRM Windows Store, Windows Phone, Xbox, Apple iOS

(“iOS”) and Google Android (“Android”) digital content and software applications, PlayReady

DRM servers, and PlayReady DRM devices such as smart TVs, set-top boxes, kiosks, and

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mobile devices, incorporating PlayReady DRM software, which also infringe the patent asserted in this action.

COUNT ONE – INFRINGEMENT OF U.S. PATENT NO. 6,920,567

ViaTech’s Patented Technology

12. ViaTech applied for its U.S. Patent No. 6,920,567, entitled “System and

Embedded License Control Mechanism for the Creation and Distribution of Digital Content Files and Enforcement of Licensed Use of the Digital Content Files” (“the ’567 patent,” attached as

Exhibit A) in April of 2000, and the patent was duly and legally issued by the United States

Patent and Trademark Office July 19, 2005. ViaTech is the owner by assignment of all rights, title, and interest in and to the ’567 patent, including the right to sue for past infringement.

13. ViaTech’s patented technology relates to methods and systems for controlling the use of files containing digital content, such as computer programs and data and digitally formatted audio and image information, and, more specifically, for a system and license control mechanism for use in creating and distributing files containing digital content and for enforcing the licensed use of digital content files.

14. Claims 8, 9, 10, and 11 of the ’567 patent describe a digital content file including a license control mechanism for controlling the licensed use of digital content wherein the digital content of the digital content file comprises digital, media, music, or video data, and read as follows:

8. The digital content file including a license control mechanism for controlling the licensed use of digital content of claim 1 [comprising: a digital content, and an embedded file access control mechanism embedded in the digital content file, including a license functions mechanism embedded in the digital content file and including a license monitor and control mechanism communicating with a dynamic license database and monitoring use of the digital content by a user to determine whether a use of the digital content 4

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by a user compiles with the license defined in the dynamic license database, and a license control utility providing communications between a user system and an external system to communicate license definition information between the user system and the external system, including a graphical user interface associated with the license control utility to provide communication between a user and user accessible functions of the license functions mechanism, and the dynamic license database wherein the dynamic license database is associated with the digital content file for storing information controlling operations of the file access control mechanism and license information controlling licensed use of the digital content], wherein the digital content of the digital content file comprises: digital data.

9. The digital content file including a license control mechanism for controlling the licensed use of digital content of claim 8, wherein the digital content of the digital content file comprises: media data.

10. The digital content file including a license control mechanism for controlling the licensed use of digital content of claim 9, wherein the digital content of the digital content file comprises: music data.

11. The digital content file including a license control mechanism for controlling the licensed use of digital content of claim 9 wherein the digital content of the digital content file comprises: video data.

15. Claims 26 and 27 of the ’567 patent describe a method for accessing the digital

content of a digital content file in a user system wherein the digital content file and the digital content includes data, and read as follows:

26. A method for accessing the digital content of a digital content file in a user system wherein the digital content file wherein the digital content includes data contained in an encrypted digital content file and the digital content file includes an embedded file access control mechanism including a decrypting mechanism, comprising the steps of: in the file access control mechanism, intercepting an attempt to access the digital content and validating licensed access of the digital content by, determining whether a dynamic license database associated with the file access control mechanism contains license information defining a license controlling user of the digital contents, when the dynamic license database contains information defining a license controlling use of

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the digital content, decrypting encrypted product information contained in the encrypted digital content file and determining whether the user system complies with a license defined by license information contained in the dynamic license database, and when the user system complies with a license defined by license information contained in the dynamic license database, decrypting the digital contents from the encrypted digital content file and providing the digital contents to the user system.

27. The method for accessing the digital content of a digital content file in a user system of claim 26, wherein: an application in the user system is designated to access at least one designated type of digital content file, and the file access control mechanism includes a monitor to intercept attempts to open digital content files of the at least one designated type by the application and to invoke the file access control mechanism to execute the steps for validating licensed access of the digital content.

Microsoft’s Knowledge of the ’567 Patent and its Infringement

16. Microsoft became aware of the ’567 patent, the subject matter of the patent, and

the inventions claimed in the patent, at least as early as September of 2005, shortly after

ViaTech’s ’567 patent was granted, during the prosecution of Microsoft’s U.S. Patent No.

7,366,915 (“the ’915 patent,” applied for in April of 2002 and granted in April of 2008), which describes and claims digital licensing methods and systems. The ’567 patent was cited as prior

art during prosecution of the patent application filed by Microsoft that led to the ’915 patent, and

in a response to a December 12, 2005 Office Action, Microsoft attorneys explained their

understanding of the ’567 patent, and its claimed subject matter, in extensive detail. As an

example, in that response, Microsoft attorneys discussed the digital content file, license control

mechanism, license control utility, and dynamic license database functions of the digital content

file and methods described and claimed in the ’567 patent, noting that:

The [’567 patent] discloses in great detail a system for rendering content according to a license. In particular, in the Doherty system, the content is placed within a digital content file that includes a license control mechanism controlling the licensed use of the content.

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And also noting that:

The digital content file also includes a license database that can store one or more licenses for rendering the content. The license control mechanism communicates with the license database and controls use of the digital content, and has a utility that allows for communicating between a user system and an external system to communicate license definition information. Thus, such license definition information may be stored initially in the license database when the digital content file is initially received, or if not present as initially received may be acquired from the external system. Upon such acquisition, such a license is stored in such database.

17. ViaTech’s ’567 patent was also cited as prior art to Microsoft’s attorneys during the prosecution of other Microsoft patents, for example, its U.S. Patent No. 7,644,442, which describes and claims a “method, system and computer-readable medium for deterring software

piracy,” and its U.S. Patent No. 8,224,750, which describes and claims “a method and a system

for changing license rights to a software product installed on a computer.”

18. Microsoft attorneys themselves also cited ViaTech’s ’567 patent as relevant prior

art in connection with the prosecution of numerous other Microsoft patents, for example, U.S.

Patent Nos. 7,873,578, 7,552,341, 7,849,329, 8,181,265, 7,716,476, 8,117,094, 8,336,085,

8,464,348, 8,176,564, 8,353,046, 8,347,078, 8,781,969, 8,725,646, 8,719,171, and 8,700,535, all

of which relate to anti-piracy licensing systems and methods.

19. Independently, at various times from 2011 through 2013, ViaTech representatives

corresponded with Microsoft regarding the ’567 patent, noting in their correspondence that the

patent was, in their judgment, highly relevant to Microsoft’s business and fundamental to digital

rights management.

20. ViaTech itself also provided notice of its patent by including the ’567 patent

number on its website through which it conducts business.

21. Microsoft also became aware of the ’567 patent, the subject matter of the patent,

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and the inventions claimed through ViaTech’s co-pending litigation for infringement of the ’567

patent filed in this court September 24, 2014.

Microsoft’s Infringing PlayReady Software

22. Microsoft’s PlayReady DRM software protects distributed digital content

downloaded to end user devices and systems, for example, Windows, Windows Phone,

Silverlight, Xbox, iOS, Android, and smart TV devices and systems. See, e.g., Microsoft

PlayReady Content Protection Technology White Paper, attached as Exhibit B, at 5 (“PlayReady

supports essentially any type of content, including movies, live TV, music, games, ringtones and

images . . . .”), 7–9 (“The device porting kit is typically used for devices such as set-top boxes,

smart TVs, kiosks, and mobile devices . . . If you are creating an Android app, you can use the

PlayReady Client SDK for Android . . . If you are creating an iOS app, you can use the

PlayReady Client SDK for iOS . . . For Windows 8, you can use the PlayReady SDK for

Windows Store Apps . . . On other Windows platforms, PlayReady functionality is available via

Silverlight. Alternately, you can develop a web browser-based client . . . .”); Microsoft

PlayReady Developing PlayReady Clients White Paper, attached as Exhibit C, at 3–4 (“The

following diagram identifies the primary components of the PlayReady product suite.

. . . .”), 13–14 (“The following Microsoft platforms provide native support for PlayReady:

Windows 7 and later[;] Windows Phone, all versions[;] Xbox One and Xbox 360®.”).

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23. Content and client application and device providers (including Microsoft,

Microsoft PlayReady device, server, and service licensees, and Microsoft PlayReady technology partners) incorporate PlayReady DRM software into digital content, client applications, and client devices to control access to and licensed use of digital content, test the digital content, applications, and devices, and distribute the digital content, applications, and devices to end users. PlayReady server software encrypts the digital content. A PlayReady DRM software

Header Object is added to the digital content file and includes embedded license rights and policies that control how, and under what conditions, the digital content of the content file may

be accessed and used by a user. A symmetric cryptographic key is included in the content

license to enable decryption of the digital content by client applications and devices. See, e.g.,

Microsoft PlayReady Content Protection Technology White Paper, Exhibit B, at 4–5 (emphasis in original) (“PlayReady secures content by encrypting data files. These encrypted files may be moved, archived, streamed, copied, or distributed without restrictions. In order to decrypt these data files, a digital key is required. This key is contained within a license. Each license also contains rights and policies that specify how the files may be used, and under what conditions.

Figure 1 - Content Consumption Model”); Microsoft PlayReady Developing PlayReady Clients

White Paper, Exhibit C, at 6–9 (“The license server . . . [e]ncrypts the license by using the client

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device’s public key. Using the device’s public key to encrypt the license both protects license

data and ensures that the license applies to only that device. . . . The client receives the license

and decrypts it by using the private key from the key pair that is unique to the client device

(device private key). The client then uses the license to securely decrypt and play back the media

file in accordance with the policies specified in the license. . . . The PlayReady header object is a

placeholder to store PlayReady rights management header that enables PlayReady clients to

acquire a license for and decrypt the content in a media file. It can also store an embedded

license directly in a media file. The header is added to and subsequently stored in a media file

or, for streaming content, a media manifest file when the file is packaged for distribution. Each

PlayReady rights management header contains a standard set of metadata about a license. This

includes a key ID that identifies the content key, the type of encryption used to encrypt the file,

the URL for the applicable license acquisition service (LAURL), and any custom attributes that a

content provider chooses to define. . . . [A] PlayReady client finds and extracts the PlayReady

rights management header from a media or media manifest file when it begins parsing the file.

The client then processes the header data to acquire a license for and ultimately decrypt the

content with the content key in the acquired license.”); Microsoft PlayReady Client Options,

https://www.microsoft.com/playready/features/ClientOptions.aspx (“Microsoft PlayReady is the

proven technology securing Windows, Windows Phone, and Xbox and a wide range of consumer

electronics.

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. . . Final product (from Microsoft PlayReady standpoint), that is an application implementing

UI, UX and is fully robust. E.g. Application using a PlayReady Client SDK for Windows.”).

24. PlayReady DRM software licenses for distributed digital content are stored in an

“embedded license store” of the PlayReady Header Object of the digital content file to be

protected. The licenses are modifiable in order to support multiple forms of licensing, including

subscription and purchase business models. See, e.g., Microsoft PlayReady Content Protection

Technology White Paper, Exhibit B, at 4–5 (“The license can be embedded in the content . . . .”),

6 (“The license issuer can specify the length of time for which a license is valid, thus ensuring

that access to the content expires when the subscriber cancels their subscription. While the

subscription is active, the licenses are renewed prior to expiration so that the user enjoys

uninterrupted playback . . . .”); Microsoft PlayReady Developing PlayReady Clients White

Paper, Exhibit C, at 10–11 (“Embedded license[:] A license that is acquired and subsequently

stored in the PlayReady header of a media file. Because the license is stored or ‘embedded’ in

the media file, instead of being issued and stored separately, it’s immediately available. This can

facilitate user scenarios such as moving content from one device to another, backing up content,

and playing back content with a device that is offline. In addition, an embedded license can be

bound to a domain certificate, which allows the media file to be played by other devices that are

members of the same PlayReady domain.”); Microsoft PlayReady Header Object White Paper,

attached as Exhibit D, at 3–4 (“The rights management header is used for a client to locate or

acquire a license for the piece of content it is stored in.”); Microsoft Developer Network, Digital

Rights Management (DRM), Silverlight, https://msdn.microsoft.com/en-

us/library/cc838192(VS.95).aspx (“If any licenses need to be updated, you can add logic to

attempt to connect to the licensing server and make necessary updates, prompt the user for

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payment, and so on.”); Microsoft PlayReady Header Object White Paper, Exhibit D, at 12 (“The

content may be used in a context of PlayReady domains with embedded licenses. This allows a

PlayReady client to further embed a domain-bound license in the PlayReady Header Object by

simply populating the existing embedded license store, and saves the effort of having to re-header

the entire file with a new PlayReady Header Object of a larger size than that of the initial one.”);

Microsoft PlayReady Protecting Premium Live TV Services with PlayReady White Paper,

attached as Exhibit E, at 8–9 (emphasis in original) (“With PlayReady, providers can rotate

content keys and policies frequently and quickly, and they can do so dynamically or

automatically according to schedules that they define. In a typical deployment, rotations are

implemented by integrating PlayReady license services with a provider’s key management

service and content encoders and packagers. Note that rotations aren’t limited to content keys.

Each rotation can include changes to the full range of policy settings . . . . PlayReady offers this

high degree of facility primarily by providing a scalable chained license model and by embedding and delivering licenses in stream. . . . Unlike the traditional model, the scalable chained license model is designed to grant access to multiple services while also minimizing the number of content keys that need to be issued. . . . Scalable root licenses can be issued to as many clients as a provider allows for each user. A scalable leaf license contains one content key and is bound to a specific uplink key (root key) in a scalable root license. Scalable leaf licenses are generated by PlayReady license services, sent to a packager, and then embedded and delivered in stream to clients.”), 12–13 (“For key and license management, the PlayReady license server has two components, a scalable root license service that generates and issues scalable root licenses to clients and a scalable leaf license service that works with an encryptor/packager server to generate scalable leaf licenses that are delivered in stream to clients.

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Figure 2 – High-Level Architecture for Protecting Live TV Services with PlayReady

. . . After it receives scalable leaf licenses from the license service, the packager embeds the correct license in each stream as Protection System Specific Header Box (‘pssh‘ box) data, as defined by the ISO CENC scheme (ISO/IEC 23001) for PIFF and MPEG-DASH files, and encrypts each stream.”), and 22 (“Appendix: Rights Management Header[:] As mentioned in

Live TV Streaming Architecture, a packager embeds the correct leaf license in each stream as

Protection System Specific Header Box (‘pssh‘ box) data, as defined by the ISO CENC scheme

(ISO/IEC 23001) for PIFF and MPEG-DASH files, and it encrypts each stream. The rights management header (WRMHeader element) enables a client to locate or acquire a license for a media file. The WRMHeader element is stored in the media file or exposed through an ABR media presentation description, as defined in the PlayReady Header Object specification on the

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PlayReady website.”); Microsoft DASH Content Protection using Microsoft PlayReady White

Paper, attached as Exhibit F, at 13 (“The [PlayReady Header Object] PRO may include the

Rights Management Header and/or Embedded License Store (ELS).”).

25. Microsoft also provides test tools for users of PlayReady software development kits, application development kits, server development kits, and device porting kits, including a

Microsoft test server, to permit users to test and debug PlayReady clients. Microsoft PlayReady

Developing PlayReady Clients White Paper, Exhibit C, at 29 (“To help you test a PlayReady client, Microsoft provides a comprehensive set of test tools for licensed users of a PlayReady client SDK or the PlayReady Device Porting Kit. Of the test tools, a key resource is the

PlayReady test server. The test server is a fully functioning PlayReady server that helps you test and debug a PlayReady client for a multitude of tasks such as acquiring licenses for different types of media content, enforcing various types of policies, joining and leaving domains, and processing metering data. The server hosts a PlayReady license service, provides a series of test cases, and stores sample media files in various formats and with various policies. To find and learn about each test case and related sample files, you can use the server’s web interface and in-

depth documentation that’s included in the SDKs and porting kit. In addition to test server

access, the PlayReady Device Porting Kit provides a suite of tools and utilities for testing ported

code. This includes executable files and source code for learning and testing specific PlayReady

functions, tools for testing cryptography code, and utilities for inspecting files and stores. The

porting kit also provides a test framework with predefined tests, organized by functional area,

and a modular structure and source code that you can use to build and integrate custom tests into

the framework. All of the PlayReady test resources can be used in addition to the tools and test

resources provided by other SDKs and the IDE that you use to develop a PlayReady client.”);

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Microsoft PlayReady Compatibility and Migration Considerations for PlayReady 3.0 White

Paper, attached as Exhibit G, at 9–10 (“Testing PlayReady clients with versions of the

PlayReady Server SDK[:] The PlayReady testing website contains a set of license services that

use current and legacy versions of the Server SDK. These license services can be used to assist in

the testing of client compatibility. . . . To assist in capability testing, the following tests can be

used with the different versioned license services to cover four unique licensing scenarios. . . .

Scenario 1: non-persistent licenses . . . . Scenario 2: persistent licenses . . . . Scenario 3: chained

licenses . . . . Scenario 4: domain-bound license . . . .”); PlayReady Test Server,

https://test.playready.microsoft.com/ (“Welcome to the PlayReady Test Server[:] This website

and the associated resources include documentation and test tools for PlayReady developers to test their products. It is developed and maintained by the Microsoft PlayReady Team. Whether you are a PlayReady licensee or a non-licensee, an OEM, SOC vendor, a client developer, an application developer, an encoder vendor, a service developer, we provide you on this website the following tools: A Test License Service[;] Test Video content (audio/video)[;] Test Audio content[;] Test Applications (HTML/JS, Silverlight) . . . .”).

Microsoft’s Infringing Conduct

26. Microsoft makes, manufactures, tests, uses, licenses, distributes, sells, and offers

to sell, in the United States, Microsoft PlayReady DRM software, as well as software

applications, web applications, client devices, and digital content incorporating PlayReady DRM

software, and PlayReady DRM server development kits, software development kits, application

development kits, and device porting kits for developing software applications, web applications,

client devices, and digital content incorporating PlayReady DRM software, as well as test tools

for users of PlayReady client software development kits, application development kits, server

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development kits, and device porting kits, including the Microsoft PlayReady test server

(“Microsoft PlayReady Infringing Software and Products”), in a manner that directly and indirectly infringes one or more claims of the ’567 patent, literally or under the doctrine of equivalents.

27. Microsoft has directly infringed at least claims 8–11 and 26–27 of the ’567 patent, literally or under the doctrine of equivalents, by making, manufacturing, testing and otherwise using, licensing, selling and offering to sell, and distributing Microsoft PlayReady Infringing

Software and Products, including Microsoft‘s Edge web browser application, Groove Music

(formerly known as Xbox Music) and Movies & TV (formerly known as Xbox Video) applications, Xbox consoles, Lumia mobile phones, and Surface personal computers and tablets, and digital music and video content for use with Microsoft Edge, Groove Music, and Movies &

TV applications and Xbox consoles, Lumia mobile phones, and Surface personal computers and tablets.

28. Microsoft also has induced, and is now inducing, the infringement of at least claims 8–11 and 26–27 of the ’567 patent, literally or under the doctrine of equivalents, by making, manufacturing, testing and otherwise using, licensing, selling and offering to sell, and distributing Microsoft PlayReady Infringing Software and Products for use by content, client application, and device providers (including Microsoft PlayReady device, server, and service

licensees and Microsoft PlayReady technology partners), and third-party software developers

and end users for the development of Microsoft PlayReady Infringing Software and Products, the

making, manufacturing, testing and use, offer to sell and sale, and distribution of which by such

content, client application, and device providers, developers and end users directly infringes at

least claims 8–11 and 26–27 of the ’567 patent, literally or under the doctrine of equivalents.

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29. Microsoft also has contributed to and is now contributing to the infringement of at

least claims 8–11 and 26–27 of the ’567 patent, literally or under the doctrine of equivalents, by

making, manufacturing, testing and otherwise using, licensing, selling and offering to sell, and

distributing, within the United States, Microsoft PlayReady Infringing Software and Products to

content, client application, and device providers (including Microsoft PlayReady device, server,

and service licensees and Microsoft PlayReady technology partners), and third-party software

developers and end users, including Microsoft Edge, Groove Music, and Movies & TV

applications, and digital music and video content for use with Microsoft Edge, Groove Music

and Movies & TV applications, incorporating PlayReady DRM software, and Xbox consoles,

Lumia mobile phones, and Surface personal computers and tablets including Microsoft Edge,

Groove Music, and Movies & TV applications, and digital music and video content for Xbox

consoles, Lumia mobile phones, and Surface personal computers and tablets, incorporating

PlayReady DRM software.

30. As an example of Microsoft’s infringing conduct, Microsoft makes, tests and

otherwise uses, licenses and sells and offers for sale, and distributes, downloadable digital music

and video content files that incorporate PlayReady DRM software including a license control

mechanism for controlling the licensed use of the music and video content of those files. The

files are discrete units comprising a collection of data that are treated as a unit by a file system.

31. The files each comprise digital music or video content and a PlayReady Header

Object embedded in the file for controlling access to the file. The Header Object is added to and

stored in the file prior to distribution. The Header Object stores a PlayReady Rights

Management Header containing metadata about a license including a key ID that identifies the

digital content key, the type of encryption used to encrypt the file, a URL for a license

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acquisition service, and custom attributes that the content provider defines. The Header Object

also stores licenses embedded in the files prior to distribution, or licenses that are acquired and

stored in the PlayReady Header Object post-distribution. The Rights Management Header

enables PlayReady clients to acquire or locate a license for, and decrypt, the music and video

content of the files according to the terms of the license. The PlayReady Header Object is a

dynamic license database that is incorporated into and part of each digital music and video

content file.

32. Microsoft also makes, tests and otherwise uses, licenses and sells and offers for

sale, and distributes, with downloadable digital music and video content files that incorporate

PlayReady DRM software, and with Xbox consoles, Lumia mobile phones, and Surface personal

computers and tablets that incorporate PlayReady DRM software, Microsoft Edge, Groove

Music and Movies & TV client applications that incorporate PlayReady DRM software for use

with Xbox consoles, Lumia mobile phones, and Surface personal computers and tablets. These

client applications find and extract the PlayReady Rights Management Header from the

downloaded digital music and video content files and process the Header data to acquire or

locate a license and ultimately decrypt the digital music and video content with the content key

in the license.

33. The acquired or located licenses stored in the Header Object can be modified by

binding to a domain certificate, as well as updated and renewed, by Microsoft Edge, Groove

Music and Movies & TV applications that incorporate PlayReady DRM software installed on

Xbox consoles, Lumia mobile phones, and Surface personal computers and tablets that also

incorporate PlayReady DRM software.

34. Microsoft has also induced the direct infringement at least claims 8–11 and 26–27

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of the ’567 patent, literally or under the doctrine of equivalents, by content, client application,

and device providers (including Microsoft PlayReady device, server, and service licensees and

Microsoft PlayReady technology partners), and third-party software developers and end users of

Microsoft PlayReady Infringing Software and Products, the development, use and sale of which

by those content, client application, and device providers, and third-party software developers

and end users, directly infringes at least claims 8–11 and 26–27 of the ’567 patent, literally or under the doctrine of equivalents.

35. For example, Microsoft makes, tests, and otherwise uses, and then sells, offers to sell, distributes, and licenses Microsoft PlayReady Infringing Software and Products to original equipment manufacturer (OEM) system builders, that reproduce, install and test Microsoft

PlayReady Infringing Software and Products on personal computers, embedded systems, and other electronic devices that the system builders then sell to end-user customers who download digital content files incorporating PlayReady DRM software and access the digital content of those files using Microsoft PlayReady Infringing Software and Products installed by the system builders on those personal computers, embedded systems, and other electronic devices.

36. Microsoft also makes, tests, and otherwise uses, and then sells, offers to sell, distributes, and licenses Microsoft PlayReady Infringing Software and Products to original equipment manufacturers (OEMs) such as Acer, ASUS, Dell, Fujitsu, HTC, Hewlett-Packard,

LG, Nokia, Samsung, and Toshiba, that reproduce, install and test Microsoft PlayReady

Infringing Software and Products on personal computers and other electronic devices that the

OEMs manufacture and then sell to end-user customers who download digital content files incorporating PlayReady DRM software and access the digital content of those files using

Microsoft PlayReady Infringing Software and Products installed by the OEMs on those personal

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computers and other electronic devices.

37. In addition, Microsoft makes, tests, and otherwise uses, and then sells, offers to

sell, distributes, and licenses Microsoft PlayReady Infringing Software and Products to certified

Microsoft solution integrator, independent software vendor, web agency, and developer partners,

that reproduce, install, and test Microsoft PlayReady Infringing Software and Products for end-

user customers who download digital content files incorporating PlayReady DRM software and

access the digital content of those files using Microsoft PlayReady Infringing Software and

Products installed by the certified Microsoft partners.

38. In addition, Microsoft makes, tests, and otherwise uses, and then sells, offers to

sell, distributes, and licenses Microsoft PlayReady Infringing Software and Products to

authorized resellers of its software such as Best Buy, Walmart, Micro Center Computers &

Electronics, Staples, and Office Depot/Office Max that offer to sell, sell and distribute Microsoft

PlayReady Infringing Software and Products to end-user customers who download digital

content files incorporating PlayReady DRM software and access the digital content of those files

using the Microsoft PlayReady Infringing Software and Products sold and distributed by those

authorized resellers.

39. Microsoft also makes, tests, and otherwise uses, and then sells, offers to sell,

distributes, and licenses Microsoft PlayReady Infringing Software and Products to content,

application and device providers, such as Netflix, Comcast, Hulu, Amazon, Roku, LG, Philips,

Toshiba, Panasonic and Samsung, that reproduce and incorporate PlayReady DRM software into

servers, digital content files, applications and devices, test those servers, content files,

applications and devices using Microsoft PlayReady Infringing Software and Products, and then

offer to sell and sell those content files, applications, and devices to end-user customers who

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download digital content files incorporating PlayReady DRM software and access the digital

content of those files using Microsoft PlayReady Infringing Software and Products incorporated into the digital content files, applications, and devices.

40. Microsoft has affirmatively acted to encourage direct infringement by content,

client application, and device providers (including Microsoft PlayReady device, server, and

service licensees and Microsoft PlayReady technology partners), and third-party software

developers and end users, knowing that their conduct constituted infringement of at least claims

8–11 and 26–27 of the ’567 patent.

41. Microsoft has encouraged and instructed, and is encouraging and instructing,

content, client application, and device providers (including Microsoft PlayReady device, server,

and service licensees and Microsoft PlayReady technology partners), and third-party software

developers and end users of Microsoft PlayReady Infringing Software and Products, who are not

licensed by plaintiff, to test and otherwise use PlayReady DRM software in software

applications, web applications, digital content, servers, and client devices, and then offer to sell

and sell content files, applications and devices incorporating PlayReady DRM software to

control access to and the licensed use of digital content, with the knowledge that the induced acts

constitute direct infringement by at least such providers, developers, and end users of at least

claims 8–11 and 26–27 of the ’567 patent, literally or under the doctrine of equivalents.

42. As an example, Microsoft technical support, promotional materials, and user

manuals, and its PlayReady Website, instruct digital content, client application, and device

providers (including Microsoft PlayReady device, server, and service licensees and Microsoft

PlayReady technology partners), and third-party software and device developers, how to

incorporate, test, and use Microsoft PlayReady Infringing Software and Products to control

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access to and licensed the use of digital content, in a manner that directly and indirectly infringes

at least claims 8–11 and 26–27 of the ’567 patent, literally or under the doctrine of equivalents.

See, e.g., Microsoft PlayReady Content Protection Technology White Paper, Exhibit B;

Microsoft PlayReady Developing PlayReady Clients White Paper, Exhibit C; Microsoft

PlayReady Header Object White Paper, Exhibit D; Microsoft PlayReady Protecting Premium

Live TV Services with PlayReady White Paper, Exhibit E; Microsoft DASH Content Protection

using Microsoft PlayReady White Paper, Exhibit F; Microsoft PlayReady Compatibility and

Migration Considerations for PlayReady 3.0 White Paper, Exhibit G; Microsoft PlayReady

Client Options, https://www.microsoft.com/playready/features/ClientOptions.aspx; Microsoft

Developer Network, Digital Rights Management (DRM), Silverlight,

https://msdn.microsoft.com/en-us/library/cc838192(VS.95).aspx; Error! Hyperlink reference

not valid.http://technet.microsoft.com; https://test.playready.microsoft.com/ ;

http://support.microsoft.com; https://www.microsoft.com/playready/;

https://www.microsoft.com/playready/documents/; and

https://www.microsoft.com/playready/licensing/compliance/.

43. As another example, Microsoft distributes music and video digital content

incorporating Microsoft PlayReady Infringing Software and Products, including PlayReady

DRM software for Windows, Windows Phone, Silverlight, Xbox, iOS, and Android applications

and devices to end users through its Groove Music and Movies & TV applications. The Groove

Music and Movies & TV applications, and Microsoft’s Edge web browser application, also

incorporate Microsoft PlayReady Infringing Software and Products, and Microsoft encourages

and instructs end users of such applications and devices how to access the content using its

Groove Music and Movies & TV applications and Edge web browser application. See, e.g.,

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https://www.microsoft.com/en-us/store/music; https://www.microsoft.com/en-us/store/movies-

and-tv; https://music.microsoft.com/; https://www.microsoft.com/en-us/movies-and-tv;

https://answers.microsoft.com/en-us/musicandvideo/forum/xboxmusic/groove-music-cant-play-

0xc00d0fcf-0x80070020/b141be1c-f6c9-43a7-a606-17de5166eb1e (“We saw that you were

having trouble with the Groove app. Hope this info helps. This issue is caused by a corruption

in the PlayReady DRM store, so could be impacting content you’ve downloaded to your device

with a Groove Music Pass.”); https://blogs.windows.com/windowsexperience/2016/07/13/get-

better-quality-video-with-microsoft-edge/ (“When it comes to video, the closer to the hardware,

the better. From video hardware acceleration to PlayReady Content Protection and the Protected

Media Path, Windows 10 is designed to provide the highest quality, most secure, and most

power-efficient video playback available on any version of Windows. Microsoft Edge has been

engineered to optimize for and take advantage of these Windows 10 built-in media capabilities,

providing the best video experience of any browser on Windows 10 based on our data and

testing. So go ahead, binge watch your favorite shows on Microsoft Edge!”).

44. As still another example, Microsoft requires users of PlayReady DRM software

to be licensed. Under its Microsoft PlayReady Server Agreement, Microsoft offers a PlayReady

Server SDK and the necessary intellectual property rights to develop Server Applications and

deploy first and third party services to end users using PlayReady. Each content, client

application, and device provider must execute a Microsoft PlayReady Master Agreement and

Microsoft’s PlayReady Intermediate Product License, under which Microsoft offers a PlayReady

Device Porting Kit and the necessary intellectual property rights to develop and distribute

PlayReady Intermediate Products to other PlayReady device licensees that distribute PlayReady

Final Products, and/or Microsoft’s PlayReady Final Product License, under which Microsoft

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offers all necessary intellectual property rights to receive PlayReady Intermediate Products from

other PlayReady device licensees and to distribute company-branded PlayReady Final Products

or downloadable software applications to end users. And each Microsoft PlayReady content, client application, and device provider licensee must also conform their products to Microsoft

Compliance and Robustness Rules that require the embedding of licenses in PlayReady protected

digital content files. See., e.g., Microsoft PlayReady Developing PlayReady Clients White

Paper, Exhibit C, at 29–30 (“Compliance and Robustness[:] PlayReady clients, like all

PlayReady technologies and implementations, are governed by a content protection regime. The

regime defines and enforces compliance and robustness rules, administers a chain of trust, and

establishes remedies for security breaches. A security breach is a circumvention or non- compliant implementation of PlayReady technology that puts content at risk by allowing users to

bypass or remove restrictions on content usage. Compliance rules specify required behaviors of

PlayReady implementations and the software that accesses those implementations. They describe

how media content may be accessed and shared according to specific rights and restrictions.

Robustness rules specify protection requirements for each type of media asset in a PlayReady

implementation. They ensure that implementations are designed to protect content in a robust

manner. The PlayReady compliance and robustness rules are specified in PlayReady license

agreements and all PlayReady implementations and products must satisfy the requirements

defined in those rules. Microsoft defines and enforces the rules, acting as the compliance and

robustness administrator for PlayReady technologies. Microsoft also maintains processes and

resources for discovering and remedying security breaches, including a dedicated breach

response team.”); Microsoft Compliance Rules for PlayReady® Products White Paper, attached

as Exhibit H, at 23 (emphasis in original) (“The Embedded License Settings Object must be

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specified in the PlayReady License. The allowed values for the License Processing Indicator

field must be set to values listed in Table 6.2 (Allowed License Processing Indicator Values)

according to the License type . . . . Leaf License 2 License will be embedded . . . . Domain

Bound License 2 License will be embedded.”), 72 (“License Embedding[:] If a PlayReady

Product successfully updates the embedded license store in the header of the Content, the

PlayReady Product must invoke the Microsoft Implementation to confirm the update.”), 75

(“License Embedding[:] If a PlayReady PC Application successfully updates the header in the

Content, it must invoke the Microsoft Implementation to confirm the update.”);

https://www.microsoft.com/playready/licensing/ and

https://www.microsoft.com/playready/licensing/compliance/.

45. Digital content files and/or digital content incorporating PlayReady Header

Objects, Rights Management Headers and Embedded License Stores are a material part of the

claimed inventions of the ’567 patent, and Microsoft knows, and has known, that such digital

content files and/or digital content are especially made and adapted for use in infringing at least

claims 8–11 and 26–27 of the ’567 patent, literally or under the doctrine of equivalents. And

there are also no substantial non-infringing uses for PlayReady Header Objects, Rights

Management Headers and Embedded License Stores, other than to control access to, and

licensed use of, digital content according to license terms and policies stored in such Header

Objects, Rights Management Headers and Embedded License Stores, and infringe at least claims

8–11 and 26–27 of the ’567 patent, literally or under the doctrine of equivalents.

46. Microsoft has also acted with specific intent to encourage infringement by

content, client application, and device providers (including Microsoft PlayReady device, server,

and service licensees and Microsoft PlayReady technology partners), and third-party software

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developers and end users of Microsoft PlayReady Infringing Software and Products, who are not

licensed by plaintiff, as, for example, set forth in paragraphs 12–45 above.

47. Microsoft designed and manufactured its Microsoft PlayReady Infringing

Software and Products to be used by content, client application, and device providers (including

Microsoft PlayReady device, server, and service licensees and Microsoft PlayReady technology

partners), and third-party software developers and end users in an infringing manner, as, for

example, set forth in paragraphs 12–45 above.

48. Microsoft has been, since at least September of 2005, during the prosecution of

Microsoft’s ’915 patent, aware of ViaTech’s ’567 patent, aware that the ’567 patent describes

and claims a license control mechanism that “communicates with the license database and

controls use of the digital content,” and that “allows for communicating between a user system

and an external system to communicate license definition information” so that “license definition

information may be stored initially in the license database when the digital content file is initially received, or if not present as initially received may be acquired from the external system” and

“[u]pon such acquisition, such a license is stored in such database,” and that Microsoft

PlayReady Infringing Software and Products directly and indirectly infringe at least claims 8–11 and 26–27 of the ’567 patent, literally or under the doctrine of equivalents, as, for example, set forth in paragraphs 12–45 above.

Infringement of Claims 8, 9, 10, and 11 of the ’567 Patent

49. The table below illustrates the infringement of claims 8, 9, 10, and 11 of the ’567

patent by Microsoft PlayReady Infringing Software and Products, literally, or under the doctrine

of equivalents:

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’567 Patent, Claims 8, 9, 10, 11 Microsoft PlayReady DRM Software 8. [A] The digital content file including a See, e.g., generally paras. 22–48 above. license control mechanism for controlling the licensed use of digital content of claim Microsoft makes, tests, uses, distributes, 1, [1. A digital content file including a sells and offers to sell digital content files, license control mechanism for controlling digital content, and client applications and the licensed use of digital content, client devices, incorporating PlayReady comprising: DRM software for controlling access to and the licensed use of digital content, as well as test tools for users of PlayReady client software development kits, application development kits, server development kits, and device porting kits, including the Microsoft PlayReady test server.

Microsoft also makes, tests, uses, distributes, sells and offers to sell PlayReady DRM software for developing digital content files, digital content, and client applications and client devices, incorporating PlayReady DRM software for controlling access to and the licensed use of digital content, as well as test tools for users of PlayReady client software development kits, application development kits, server development kits, and device porting kits, including a PlayReady test server.

As examples, Microsoft makes, tests, uses, distributes, sells and offers to sell digital content files, digital content, client applications, and client devices incorporating PlayReady DRM software, as well as test tools for users of PlayReady client software development kits, application development kits, server development kits, and device porting kits, including a PlayReady test server, including

 Microsoft Edge, Groove Music, and

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Movies & TV applications, and digital music and video content for use with Microsoft Edge, Groove Music, and Movies & TV applications, incorporating PlayReady DRM software; and

 Xbox consoles, Lumia mobile phones, and Surface personal computers and tablets including Microsoft Edge, Groove Music, and Movies & TV applications, and digital music and video content, for Xbox consoles, Lumia mobile phones, and Surface personal computers and tablets, incorporating PlayReady DRM software.

As additional examples, Microsoft makes, tests, uses, sells and offers to sell PlayReady DRM software, as well as test tools for users of PlayReady client software development kits, application development kits, server development kits, and device porting kits, including a PlayReady test server, for developing digital content, as well as client applications and client devices incorporating PlayReady DRM software, including

 PlayReady Server SDKs;

 Silverlight SDKs for Windows and MacOS X;

 Microsoft PlayReady Client SDKs for Windows Store apps;

 Microsoft Windows Phone SDKs;

 Microsoft Xbox ADKs (Xbox 360 and Xbox One);

 Microsoft PlayReady Client SDKs for

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Android;

 Microsoft PlayReady Client SDKs for iOS; and

 Microsoft PlayReady Device Porting Kits for developing smart TVs, set-top boxes, kiosks, and mobile devices. [B] a digital content, and See, e.g., para. 22 above.

PlayReady DRM software supports essentially any type of digital content file, digital content, including movies, live TV, music, games, ringtones, and images. [C] an embedded file access control See, e.g., paras. 23–25 above. mechanism embedded in the digital content file, including a license functions Digital content files made, tested, used, mechanism embedded in the digital sold and offered for sale by Microsoft and content file and including a license Microsoft licensees, and tested and used monitor and control mechanism by developers, purchasers and end users communicating with a dynamic license of digital content, client applications, and database and monitoring use of the digital client devices incorporating PlayReady content by a user to determine whether a DRM software, as well as test tools for use of the digital content by a user users of PlayReady client software compiles with the license defined in the development kits, application dynamic license database, and a license development kits, server development control utility providing communications kits, and device porting kits, including a between a user system and an external PlayReady test server, include a header system to communicate license definition object rights management header for information between the user system and storing an embedded license directly in the external system, including a graphical the digital content file that includes rights user interface associated with the license and policies that control how, and under control utility to provide communication what conditions, the digital content of the between a user and user accessible content file may be accessed and used by functions of the license functions a user. mechanism, and the dynamic license database wherein the dynamic license A PlayReady client finds and extracts the database is associated with the digital PlayReady rights management header content file for storing information from the file, then processes the header controlling operations of the file access data to decrypt the content with the control mechanism and license content key in the license and control information controlling licensed use of access to the content according to the the digital content] terms of the license.

The licenses are embedded in the digital

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content before distribution and can be modified through PlayReady DRM client software components, for example, by adding a PlayReady domain license to the header. [D] wherein the digital content of the See claim element 8[B] above. digital content file comprises: digital data. 9. [E] The digital content file including a See claim element 8[B] above. license control mechanism for controlling the licensed use of digital content of claim 8, wherein the digital content of the digital content file comprises: media data.

10. [F] The digital content file including a license control mechanism for controlling the licensed use of digital content of claim 9, wherein the digital content of the digital content file comprises: music data.

11. [G] The digital content file including a license control mechanism for controlling the licensed use of digital content of claim 9 wherein the digital content of the digital content file comprises: video data.

Infringement of Claims 26 and 27 of the ’567 Patent

50. The table below illustrates the infringement of claims 26 and 27 of the ’567 patent

by Microsoft PlayReady Infringing Software and Products, literally, or under the doctrine of

equivalents:

’567 Patent, Claims 26, 27 Microsoft PlayReady DRM Software 26. [A] A method for accessing the digital See, e.g., generally paras. 22–48 above. content of a digital content file in a user system wherein the digital content file Microsoft makes, tests, uses, distributes, wherein the digital content includes data sells and offers to sell digital content, and contained in an encrypted digital content client applications and client devices, file and the digital content file includes an incorporating PlayReady DRM software embedded file access control mechanism for controlling access to and the licensed including a decrypting mechanism, use of digital content, as well as test tools comprising the steps of: for users of PlayReady client software

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development kits, application development kits, server development kits, and device porting kits, including a PlayReady test server.

Microsoft also makes, tests, uses, sells and offers to sell PlayReady DRM software for developing digital content, as well as client applications and client devices, incorporating PlayReady DRM software for controlling access to and the licensed use of digital content, as well as test tools for users of PlayReady client software development kits, application development kits, server development kits, and device porting kits, including a PlayReady test server.

As examples, Microsoft offers to sell and sells digital content, client applications, and client devices incorporating PlayReady DRM software, as well as test tools for users of PlayReady client software development kits, application development kits, server development kits, and device porting kits, including a PlayReady test server, including

 Microsoft Edge, Groove Music and Movies & TV applications, and digital music and video content for use with Microsoft Edge, Groove Music and Movies & TV applications, incorporating PlayReady DRM software; and

 Xbox consoles, Lumia mobile phones, and Surface personal computers and tablets including Microsoft Edge, Groove Music, and Movies & TV applications, and digital music and video content for Xbox consoles, Lumia mobile phones, and Surface personal computers and tablets, incorporating PlayReady DRM software.

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As additional examples, Microsoft offers to sell and sells PlayReady DRM software for developing digital content, as well as client applications and client devices incorporating PlayReady DRM software, including

 PlayReady Server SDKs;

 Silverlight SDKs for Windows and MacOS X;

 Microsoft PlayReady Client SDKs for Windows Store apps;

 Microsoft Windows Phone SDKs;

 Microsoft Xbox ADKs (Xbox 360 and Xbox One);

 Microsoft PlayReady Client SDKs for Android;

 Microsoft PlayReady Client SDKs for iOS; and

 Microsoft PlayReady Device Porting Kits for developing smart TVs, set-top boxes, kiosks, and mobile devices.

PlayReady DRM software secures digital content by encrypting data files.

A PlayReady software Header Object stores a Rights Management Header that includes an embedded license and contains a standard set of metadata about the license, including a key ID that identifies the content key, the type of encryption used to encrypt the file, information for license acquisition, and custom attributes of the content, and enables PlayReady clients to decrypt the content of the file.

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[B] in the file access control mechanism, See, e.g., paras. 22–25 above. intercepting an attempt to access the digital content and validating licensed A PlayReady client application or device access of the digital content by, finds and extracts the PlayReady rights determining whether a dynamic license management header of a digital content database associated with the file access file incorporating PlayReady DRM control mechanism contains license software and then processes the header information defining a license controlling data to acquire a license for and ultimately user [sic] of the digital contents, decrypt the content with the content key in the acquired license and control access to the content according to the terms of the license. When a user attempts to play back protected content offline, license validation also occurs offline.

Licenses may be updated by communicating with a remote licensing server.

PlayReady Header Objects with embedded licenses can be further embedded with a domain-bound license by a PlayReady client application. [C] when the dynamic license database See claim element 26[B] above. contains information defining a license controlling use of the digital content, decrypting encrypted product information contained in the encrypted digital content file and determining whether the user system complies with a license defined by license information contained in the dynamic license database, and [D] when the user system complies with a See claim element 26[B] above. license defined by license information contained in the dynamic license database, decrypting the digital contents from the encrypted digital content file and providing the digital contents to the user system. 27. [E] The method for accessing the See claim element 26[B] above. digital content of a digital content file in a user system of claim 26, wherein: an application in the user system is designated to access at least one

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designated type of digital content file, and the file access control mechanism includes a monitor to intercept attempts to open digital content files of the at least one designated type by the application and to invoke the file access control mechanism to execute the steps for validating licensed access of the digital content.

Microsoft’s Willful Infringement

51. Microsoft has willfully infringed and is willfully infringing the ’567 patent.

Microsoft announced the availability of its PlayReady DRM software in February of 2007, at

least more than a year after it became aware of the ’567 patent, and that ViaTech’s ’567 patent

described and claimed “a system for rendering content according to a license” in which “the

content is placed within a digital content file that includes a license control mechanism

controlling the licensed use of the content” and that “[t]he digital content file also includes a

license database that can store one or more licenses for rendering the content.” At that time,

Microsoft was also aware that ViaTech’s ’567 patent described and claimed a license control

mechanism that “communicates with the license database and controls use of the digital content,”

and that “allows for communicating between a user system and an external system to

communicate license definition information” so that “license definition information may be

stored initially in the license database when the digital content file is initially received, or if not

present as initially received may be acquired from the external system. Upon such acquisition,

such a license is stored in such database.”

52. Nevertheless, despite its knowledge of the ’567 patent, the inventions claimed in

that patent, the scope of its claims, and the use of the inventions claimed in the ’567 patent in its

Microsoft PlayReady Infringing Software and Products, as, for example, set forth in paragraphs

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12–50 above, Microsoft nevertheless has never requested the U.S. Patent and Trademark Office to review the patentability of the ’567 patent claims, and instead made, manufactured, tested, used, licensed, offered for sale and sold, and distributed, and continues to make, manufacture, test, use, license, offer for sale and sell, and distribute its Microsoft PlayReady Infringing

Software and Products, knowing that Microsoft PlayReady Infringing Software and Products are made, manufactured, tested and developed using, and are licensed, offered for sale, sold, and distributed including, the inventions described and claimed in plaintiff’s ’567 patent, and that plaintiff’s ’567 patent is valid.

53. Microsoft’s infringement has been and is deliberate, wanton, and egregious, in reckless disregard of the validity and its infringement of the ’567 patent, and of the infringement of the ’567 patent by Microsoft PlayReady Infringing Software and Products.

PRAYER FOR RELIEF

54. As a result of Microsoft’s acts of infringement, plaintiff has suffered and will

continue to suffer damages in an amount to be proven at trial, unless enjoined by the court.

55. WHEREFORE, plaintiff prays for the following relief:

A. A judgment in favor of plaintiff that defendant has infringed the ’567 patent,

directly, and/or indirectly by way of inducement or contributory infringement;

B. A preliminary and permanent injunction against Microsoft, its respective officers,

agents, servants, employees, attorneys, parent and subsidiary corporations, assigns and

successors in interest, and those persons in active concert or participation with them, enjoining

them from infringement, inducement of infringement, and contributory infringement of the ’567

patent, including but not limited to an injunction against making, using, selling, and/or offering

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for sale within the United States, and importing into the United States, any products and/or

services that infringe the ’567 patent;

C. An award to plaintiff of damages pursuant to at least 35 U.S.C. § 284 for

defendant’s infringement and any continuing or future infringement, including both

compensatory damages and treble damages for defendant’s willful infringement;

D. An award to plaintiff of pre-judgment and post-judgment interest on its damages;

E. A declaration that this case is exceptional pursuant to 35 U.S.C. § 285, and awarding a judgment and order requiring defendant to pay the costs of this action (including all disbursements) as well as plaintiff’s attorneys’ fees; and

F. Such other further relief in law or equity to which plaintiff may be justly entitled.

DEMAND FOR JURY TRIAL

56. Pursuant to Rule 38 of the Federal Rules of Civil Procedure, plaintiff hereby

demands a trial by jury as to all issues so triable.

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Dated: October 1, 2017 Respectfully submitted,

/s/ James D. Taylor, Jr.

James D. Taylor, Jr. (#4009) Allison J. McCowan (#5931) SAUL EWING ARNSTEIN & LEHR LLP 1201 N. Market Street, Suite 2300 Wilmington, DE 19899 Telephone: (302) 421-6800 Facsimile: (302) 421-6813 Email: [email protected] Email: [email protected]

Michael J. Lennon (pro hac vice) Sheila Mortazavi (pro hac vice) ANDREWS KURTH KENYON LLP One Broadway New York, NY 10004-1007 Telephone: (212) 425-7200 Facsimile: (212) 425-5288 Email: [email protected] Email: [email protected]

Attorneys for plaintiff VIATECH TECHNOLOGIES, INC.