Case 3:17-cv-00108-GPC-MDD Document 83 Filed 06/20/17 PageID.1738 Page 1 of 170 1 Juanita R. Brooks (SBN 75934) [email protected] 2 Seth M. Sproul (SBN 217711) [email protected] 3 FISH & RICHARDSON P.C. 12390 El Camino Real 4 San Diego, CA 92130 Telephone: (619) 678-5070 5 Facsimile: (619) 678-5099 6 Ruffin B. Cordell (DC Bar No. 445801; admitted pro hac vice) [email protected] 7 Lauren A. Degnan (DC Bar No. 452421; admitted pro hac vice) [email protected] 8 FISH & RICHARDSON P.C. 1425 K Street, N.W., 11th Floor 9 Washington, DC 20005 Telephone: (202) 783-5070 10 Facsimile: (202) 783-2331 11 William A. Isaacson (DC Bar No. 414788; admitted pro hac vice) [email protected] 12 Karen L. Dunn (DC Bar No. 1002520; admitted pro hac vice) [email protected] 13 BOIES, SCHILLER & FLEXNER LLP 1401 New York Avenue, N.W. 14 Washington, DC 20005 Telephone: (202) 237-2727 15 Facsimile: (202) 237-6131 16 [Additional counsel identified on signature page] 17 Attorneys for Plaintiff Apple Inc. 18 19 UNITED STATES DISTRICT COURT 20 SOUTHERN DISTRICT OF CALIFORNIA 21 22 APPLE INC., Case No. 17-cv-0108-GPC-MDD 23 Plaintiff, REDACTED FIRST AMENDED COMPLAINT FOR DAMAGES, 24 vs. DECLARATORY JUDGMENT AND INJUNCTIVE RELIEF 25 26 QUALCOMM INCORPORATED, DEMAND FOR JURY TRIAL 27 Defendant. 28 APPLE INC.’S AMENDED COMPLAINT CASE NO. 17-cv-0108-GPC-MDD Case 3:17-cv-00108-GPC-MDD Document 83 Filed 06/20/17 PageID.1739 Page 2 of 170 1 QUALCOMM INCORPORATED, 2 Counterclaim-Plaintiff, 3 vs. 4 5 APPLE INC., 6 Counterclaim-Defendant. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 APPLE INC.’S AMENDED COMPLAINT CASE NO. 17-cv-0108-GPC-MDD Case 3:17-cv-00108-GPC-MDD Document 83 Filed 06/20/17 PageID.1740 Page 3 of 170 1 TABLE OF CONTENTS 2 NATURE OF THE ACTION ........................................................................................... 2 3 PARTIES ...................................................................................................................... 7 4 JURISDICTION ............................................................................................................ 8 VENUE ........................................................................................................................ 8 5 FACTUAL ALLEGATIONS ........................................................................................... 9 6 Apple’s Revolutionary Products ....................................................................................... 9 7 Standards and Their Economic Effects ............................................................................. 10 8 The FRAND Bargain .................................................................................................... 13 9 ETSI and Qualcomm’s Contractual FRAND Obligations .................................................... 15 10 Qualcomm’s Dominant Market Position and Cellular Standards .......................................... 17 11 Qualcomm’s Secret Manufacturer License Agreements ...................................................... 22 12 Qualcomm “Double-Dips” Royalties and Chipset Sales ..................................................... 25 13 Qualcomm Gouges Apple .............................................................................................. 28 14 Apple and Qualcomm’s Licensing Discussions ................................................................. 34 15 Patents-in-Suit ............................................................................................................. 37 16 Qualcomm’s SEP Licensing Practices Are Not FRAND and Foreclose Competition ............... 46 Competition Agencies Around the World Investigate and Take Action Against Qualcomm ..... 60 17 Apple Responds to Agency Requests ............................................................................... 63 18 Qualcomm Retaliates by Withholding Nearly $1 Billion from Apple .................................... 64 19 CLAIMS AND PRAYER FOR RELIEF .......................................................................... 72 20 COUNT I ................................................................................................................... 72 21 Breach of Contract ........................................................................................................ 72 22 COUNT II .................................................................................................................. 73 23 Breach of the Implied Covenant of Good Faith and Fair Dealing ......................................... 73 24 COUNT III ................................................................................................................. 74 25 Violation of Cal. Civ. Code § 1671(b) ............................................................................. 74 26 COUNT IV ................................................................................................................. 75 27 Declaratory Relief: BCPA ............................................................................................. 75 COUNT V .................................................................................................................. 77 28 i APPLE INC.’S AMENDED COMPLAINT CASE NO. 17-cv-0108-GPC-MDD Case 3:17-cv-00108-GPC-MDD Document 83 Filed 06/20/17 PageID.1741 Page 4 of 170 1 Declaration of Noninfringement of U.S. Patent No. 7,246,242 ............................................. 77 COUNT VI ................................................................................................................. 78 2 Declaration of Invalidity of U.S. Patent No. 7,246,242 ....................................................... 78 3 COUNT VII ............................................................................................................... 79 4 Declaration of FRAND Royalties for U.S. Patent No. 7,246,242 .......................................... 79 5 COUNT VIII .............................................................................................................. 80 6 Declaration of Noninfringement of U.S. Patent No. 6,556,549 ............................................. 80 7 COUNT IX ................................................................................................................. 81 8 Declaration of Invalidity of U.S. Patent No. 6,556,549 ....................................................... 81 9 COUNT X .................................................................................................................. 82 10 Declaration of FRAND Royalties for U.S. Patent No. 6,556,549 .......................................... 82 11 COUNT XI ................................................................................................................. 83 12 Declaration of Noninfringement of U.S. Patent No. 9,137,822 ............................................. 83 COUNT XII ............................................................................................................... 84 13 Declaration of Invalidity of U.S. Patent No. 9,137,822 ....................................................... 84 14 COUNT XIII .............................................................................................................. 85 15 Declaration of FRAND Royalties for U.S. Patent No. 9,137,822 .......................................... 85 16 COUNT XIV .............................................................................................................. 86 17 Declaration of Noninfringement of U.S. Patent No. 7,289,630 ............................................. 86 18 COUNT XV ............................................................................................................... 87 19 Declaration of Invalidity of U.S. Patent No. 7,289,630 ....................................................... 87 20 COUNT XVI .............................................................................................................. 88 21 Declaration of FRAND Royalties for U.S. Patent No. 7,289,630 .......................................... 88 22 COUNT XVII ............................................................................................................. 89 23 Declaration of Noninfringement of U.S. Patent No. 8,867,494 ............................................. 89 24 COUNT XVIII ............................................................................................................ 90 Declaration of Invalidity of U.S. Patent No. 8,867,494 ....................................................... 90 25 COUNT XIX .............................................................................................................. 91 26 Declaration of FRAND Royalties for U.S. Patent No. 8,867,494 .......................................... 91 27 COUNT XX ............................................................................................................... 92 28 ii APPLE INC.’S AMENDED COMPLAINT CASE NO. 17-cv-0108-GPC-MDD Case 3:17-cv-00108-GPC-MDD Document 83 Filed 06/20/17 PageID.1742 Page 5 of 170 1 Declaration of Noninfringement of U.S. Patent No. 7,095,725 ............................................. 92 COUNT XXI .............................................................................................................. 93 2 Declaration of Invalidity of U.S. Patent No. 7,095,725 ....................................................... 93 3 COUNT XXII ............................................................................................................. 94 4 Declaration of FRAND Royalties for U.S. Patent No. 7,095,725