DCT

1:19-cv-01245

LBT IP I LLC v. Apple Inc

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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 1:19-cv-01245, D. Del., 07/01/2019
  • Venue Allegations: Venue is alleged to be proper based on Defendant operating a regular and established place of business in the district, specifically an Apple Store in Newark, DE.
  • Core Dispute: Plaintiff alleges that Defendant’s iPhones and iPads, which incorporate power-saving features, infringe five patents related to battery conservation and location tracking for portable electronic devices.
  • Technical Context: The technology concerns dynamic power management in mobile devices, a critical area for extending battery life in the competitive smartphone and portable device market.
  • Key Procedural History: The asserted patents were originally assigned to Location Based Technologies, Inc., which reportedly commercialized the technology. Subsequent to the complaint's filing, several of the asserted patents underwent Inter Partes Review (IPR). Notably, all claims of U.S. Patent No. 8,421,619, including those asserted, were cancelled. Conversely, asserted claims from U.S. Patent Nos. 8,102,256, 8,421,618, and 8,542,113 were found patentable in their respective IPR proceedings. The complaint also alleges Defendant had pre-suit knowledge of the patents via a notice letter.

Case Timeline

Date Event
2008-01-06 Priority Date for all Asserted Patents (’774, ’113, ’256, ’618, ’619)
2012-01-24 U.S. Patent No. 8,102,256 Issued
2013-04-16 U.S. Patent No. 8,421,618 Issued
2013-04-16 U.S. Patent No. 8,421,619 Issued
2013-07-30 U.S. Patent No. 8,497,774 Issued
2013-09-24 U.S. Patent No. 8,542,113 Issued
2019-06-24 Plaintiff allegedly sent notice letter to Defendant
2019-07-01 Complaint Filed

II. Technology and Patent(s)-in-Suit Analysis

U.S. Patent No. 8,497,774 - “Apparatus and Method for Adjusting Refresh Rate of Location Coordinates of a Tracking Device,” Issued Jul. 30, 2013

The Invention Explained

  • Problem Addressed: The patent family addresses the problem of significant battery power depletion in portable tracking devices, such as those using GPS, particularly when the device attempts to acquire signals in obstructed environments like garages or large buildings (’256 Patent, col. 2:62-67).
  • The Patented Solution: The invention provides a system for managing a device's power consumption by intelligently adjusting the timing of location data requests. It describes a local power management component that can adjust the "request rate" and "listen rate" for location coordinate packets based on factors like the battery's charge level and user inputs, thereby conserving power (’774 Patent, Abstract; col. 4:1-10). Figure 4 illustrates a user interface for adjusting these power settings (’774 Patent, Fig. 4).
  • Technical Importance: This approach provided a method for dynamic and user-configurable power management, a crucial feature for extending the operational life of battery-powered portable devices, which the complaint notes is a high priority for consumers (Compl. ¶9).

Key Claims at a Glance

  • The complaint asserts independent claim 1 and dependent claims 4, 5, 8, 13, and 15 (Compl. ¶14).
  • Independent Claim 1 requires:
    • A portable electronic tracking device with a battery, transceiver, processor, and a battery power monitor.
    • The battery power monitor measures the battery charge level in real-time and predicts an estimated remaining charge level.
    • A local battery power adjustment mechanism generates an updated set of network communication signaling protocols associated with a "request rate" and a "listen rate" for location packets.
    • The protocol update is responsive to a user input request.
    • The adjustment mechanism activates or deactivates portions of the transceiver or processor to conserve power.

U.S. Patent No. 8,542,113 - “Apparatus and Method for Determining Location and Tracking Coordinates of a Tracking Device,” Issued Sep. 24, 2013

The Invention Explained

  • Problem Addressed: As with its parent patent, this invention addresses the unreliability and high power consumption of conventional GPS tracking systems, especially when satellite signals are weak or unavailable (’113 Patent, col. 2:51-67).
  • The Patented Solution: The patent proposes a hybrid system that supplements a primary location tracking system (like GPS) with a secondary system using an accelerometer. When the primary signal level is insufficient, the accelerometer is activated to generate "displacement vectors" by measuring acceleration, allowing the device to compute its current location based on its last known position without needing a continuous GPS signal (’113 Patent, Abstract; col. 9:11-28).
  • Technical Importance: This technology allows for location estimation to continue in GPS-denied or degraded environments, improving tracking continuity while simultaneously conserving battery by not forcing the GPS receiver to search for weak signals (’113 Patent, col. 5:1-15).

Key Claims at a Glance

  • The complaint asserts independent claims 1 and 7, and a number of dependent claims (Compl. ¶26).
  • Independent Claim 1 requires a method to:
    • Measure a receive communication signal level by a primary location tracking circuitry.
    • Adjust applied power levels to both the primary and supplemental location tracking circuitry based on the measured signal level relative to a predetermined level.
    • Determine "differential positional measurements" based on acceleration measurements from the supplemental circuitry.
    • Determine positional coordinates based on known reference coordinates and the differential positional measurements.
  • Independent Claim 7 recites a similar method where the supplemental tracking system comprises an accelerometer and the known reference coordinates comprise the last known coordinate values of the device.

Multi-Patent Capsule: U.S. Patent No. 8,102,256

  • Patent Identification: U.S. Patent No. 8,102,256, “Apparatus and Method for Determining Location and Tracking Coordinates of a Tracking Device,” Issued Jan. 24, 2012.
  • Technology Synopsis: This patent, the parent of the ’113 Patent, describes a location monitoring apparatus that uses an accelerometer to generate displacement vectors when a primary communication signal (e.g., GPS) is insufficient. The accelerometer activates or deactivates based on the signal level, and the displacement vectors are used with a last known location to compute a new position, thereby conserving power while maintaining tracking capabilities.
  • Asserted Claims: Claim 10 (dependent on independent claim 8) (Compl. ¶38).
  • Accused Features: The "facedown detection mode" in Apple's products is accused of infringing, which allegedly "uses an accelerometer to generate displacement vectors that are used to reduce or stop certain background activity" related to GPS functionality (Compl. ¶39).

Multi-Patent Capsule: U.S. Patent No. 8,421,618

  • Patent Identification: U.S. Patent No. 8,421,618, “Apparatus and Method for Determining Location and Tracking Coordinates of a Tracking Device,” Issued Apr. 16, 2013.
  • Technology Synopsis: This patent describes a portable tracking device with transceiver, accelerometer, and battery power monitor circuitry. The system selectively activates or deactivates at least a portion of the transceiver and location tracking circuitry to conserve battery power in response to the signal level of a received communication signal.
  • Asserted Claims: Independent claims 1 and 9, and multiple dependent claims (Compl. ¶50).
  • Accused Features: The "facedown detection mode" is accused of infringing, which allegedly uses an accelerometer to generate displacement vectors to reduce or stop background GPS-related activity (Compl. ¶51).

Multi-Patent Capsule: U.S. Patent No. 8,421,619

  • Patent Identification: U.S. Patent No. 8,421,619, “Apparatus and Method for Determining Location and Tracking Coordinates of a Tracking Device,” Issued Apr. 16, 2013.
  • Technology Synopsis: This patent discloses a portable tracking device that uses an accelerometer to measure displacements. A battery power monitor activates or deactivates signaling circuitry when the accelerometer detects a "substantially stationary position," and a processor generates an alert message in response to a "specified pattern" of displacements. Notably, all claims of this patent were cancelled in IPR2020-01193.
  • Asserted Claims: Independent claims 1 and 11, and multiple dependent claims (Compl. ¶62).
  • Accused Features: The "facedown detection mode" is accused of infringing, which allegedly uses an accelerometer to generate displacement vectors to reduce or stop background GPS-related activity (Compl. ¶63).

III. The Accused Instrumentality

  • Product Identification: The complaint identifies "all Apple devices, including iPhones and iPads, that have a low power mode, core location feature and/or facedown detection mode" as the Accused Products (Compl. ¶3).
  • Functionality and Market Context:
    • The complaint focuses on three specific software features alleged to implement the patented technologies:
      1. "low power mode," which allegedly "reduces or stops certain background activity, including background activity related to transceiver circuitry and/or processor circuitry associated with the Accused Products' GPS functionality" (Compl. ¶15).
      2. "core location" feature, which allegedly performs a similar function of reducing or stopping background activity related to GPS to conserve battery life (Compl. ¶27).
      3. "facedown detection mode," which is alleged to use an accelerometer to generate displacement vectors to reduce or stop background GPS activity (Compl. ¶39, ¶51, ¶63).
    • The complaint positions battery life as a critical market differentiator for Apple, citing Apple's own advertising for the iPhone XR that it has "[t]he longest battery life ever in an iPhone" (Compl. ¶11).

IV. Analysis of Infringement Allegations

No probative visual evidence provided in complaint.

’774 Patent Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
A portable electronic tracking device to monitor location coordinates... comprising: a battery... transceiver circuitry; processor circuitry; and a battery power monitor The Accused Products are portable electronic devices (iPhones, iPads) containing these hardware components (Compl. ¶3). ¶3, ¶15 col. 11:45-50
the battery power monitor to measure in real-time the battery charge level and to make a prediction of an estimated remaining battery charge level The Accused Products' "low power mode" is a feature designed to conserve battery life, which implies monitoring of the battery's charge level (Compl. ¶15). ¶15 col. 11:51-55
local battery power adjustment mechanism to generate in substantially real-time an updated set of network communication signaling protocols... responsive to a user input request The "low power mode" is a user-selectable feature that allegedly adjusts background activity, including GPS functionality, to conserve battery life (Compl. ¶15, ¶22). ¶15, ¶22 col. 11:56-65
wherein the local battery power adjustment mechanism actives or deactivates at least one portion of the transceiver circuitry or the processor circuitry The "low power mode" is alleged to reduce or stop background activity related to transceiver and processor circuitry associated with GPS (Compl. ¶15). ¶15 col. 12:1-3

’113 Patent Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
A method to control power usage comprising: measuring a receive communication signal level by primary location tracking circuitry of an electronic tracking device communicated by a primary location tracking system The Accused Products contain GPS functionality (primary location tracking circuitry) and allegedly adjust power based on location-related signals (Compl. ¶26, ¶27). ¶26, ¶27 col. 11:8-12
adjusting applied power levels to the primary location tracking circuitry and supplemental location tracking circuitry in response to measurement of a receive communication signal level relative to a predetermined signal level The "core location" feature allegedly adjusts power levels of location tracking circuitry based on certain signals in order to conserve battery life (Compl. ¶26, ¶27). ¶27 col. 11:13-18
determining differential positional measurements based in part on acceleration measurements of supplemental location tracking circuitry associated with a secondary location tracking system The complaint does not provide sufficient detail for analysis of this element, beyond a general allegation that the "core location" feature adjusts power based on "location-related signals" (Compl. ¶26). ¶26 col. 11:19-23
determining positional coordinates of electronic tracking device responsive to a known reference coordinate values and the differential positional measurements The complaint does not provide sufficient detail for analysis of this element. ¶26 col. 11:24-27
  • Identified Points of Contention:
    • Scope Questions: The complaint alleges that Apple's "facedown detection mode" uses an accelerometer to "generate displacement vectors" (’256 Patent, Compl. ¶39). A central question will be one of claim scope: does the term "displacement vectors," in the context of calculating a new location, read on the function of Apple's accelerometer, which may only detect a static orientation (i.e., being face down) for the purpose of turning off the screen display?
    • Technical Questions: What evidence does the complaint provide that Apple's "low power mode" or "core location" feature performs the specific function of adjusting a "request rate" and "listen rate" as required by claim 1 of the ’774 Patent, or determining "differential positional measurements" as required by claim 1 of the ’113 Patent? The allegations are conclusory and lack technical detail on how the accused software modes actually operate.

V. Key Claim Terms for Construction

  • The Term: "displacement vectors" (from asserted claim 10 of the ’256 Patent)

  • Context and Importance: The infringement theory for the accelerometer-related patents (’256, ’618, ’113) hinges on this term. Practitioners may focus on this term because its definition will determine whether Apple’s "facedown detection" feature, which may simply detect orientation, performs the function taught in the patent. The dispute is whether "facedown detection" is merely for screen power management or for the claimed purpose of supplemental location tracking.

  • Intrinsic Evidence for Interpretation:

    • Evidence for a Broader Interpretation: The term is not explicitly defined, which may support an argument for its plain and ordinary meaning, potentially encompassing any data from an accelerometer indicating a change in the device's state.
    • Evidence for a Narrower Interpretation: The specification repeatedly discusses using accelerometer measurements to "compute current location coordinates" and "compute electronic tracking device velocity" (’256 Patent, col. 8:23-40). This context suggests "displacement vectors" are not merely orientation data but are quantitative measurements used in a navigational calculation, a much narrower function.

  • The Term: "local battery power adjustment mechanism" (’774 Patent, claim 1)

  • Context and Importance: The viability of the infringement allegation against Apple's "low power mode" depends on whether that software feature qualifies as this "mechanism." The key is whether the accused feature performs the specific functions recited in the claim, such as generating updated communication protocols.

  • Intrinsic Evidence for Interpretation:

    • Evidence for a Broader Interpretation: The patent describes the mechanism in functional terms as something that "actives or deactivates at least one portion of the transceiver circuitry or the processor circuitry" (’774 Patent, col. 12:1-3), language which could arguably cover any software that throttles hardware to save power.
    • Evidence for a Narrower Interpretation: The claim requires this mechanism to "generate in substantially real-time an updated set of network communication signaling protocols associated with at least one of a request rate... and a listen rate" (’774 Patent, col. 11:56-62). This suggests a specific function of reconfiguring communication timing, not just a general power-down of hardware components, which may support a narrower construction.

VI. Other Allegations

  • Indirect Infringement: The complaint alleges inducement of infringement, stating that Apple encourages infringement by providing instructions on its website and within the Accused Products for using the accused features (e.g., "low power mode") (Compl. ¶21, ¶33, ¶45). It also alleges contributory infringement by providing customers with the necessary software that is not a staple article of commerce and has no substantial non-infringing use other than to infringe (Compl. ¶23, ¶35, ¶47).
  • Willful Infringement: The complaint alleges that Defendant’s infringement has been willful. This allegation is based on alleged pre-suit knowledge of the patents, stemming from a letter Plaintiff sent to Apple on June 24, 2019, approximately one week before filing the suit (Compl. ¶19, ¶31, ¶43, ¶55, ¶67).

VII. Analyst’s Conclusion: Key Questions for the Case

  1. A core issue will be one of functional equivalence: Do Apple's accused power-saving features, such as "facedown detection," perform the specific technical functions required by the claims? For instance, does the accelerometer in facedown mode actually calculate "displacement vectors" for location computation, as taught by the patents, or does it merely detect a static orientation to conserve power by deactivating the display? The outcome will depend on technical evidence of how the accused software operates, not on its marketing name.
  2. A second key question will be one of evidentiary sufficiency: The infringement allegations in the complaint are stated in a conclusory manner. A central challenge for the Plaintiff will be to produce specific, non-public technical evidence demonstrating that Apple’s products meet the detailed limitations of the asserted claims, such as adjusting specific "request rates" and "listen rates" for location data.
  3. A final procedural and strategic question centers on the impact of post-filing IPRs: The cancellation of all asserted claims of the ’619 patent effectively moots that count of the complaint. Conversely, the confirmation of claims in the ’113, ’256, and ’618 patents may strengthen Plaintiff's validity position on the remaining patents, potentially influencing the litigation and settlement dynamics of the entire case.