Case 4:20-cv-07572-JSW Document 54 Filed 08/25/21 Page 1 of 27
`
`
`
`
`Frank E. Scherkenbach (SBN 142549 / scherkenbach@fr.com)
`Adam J. Kessel (pro hac vice / kessel@fr.com)
`Proshanto Mukherji (pro hac vice / mukherji@fr.com)
`Jeffrey Shneidman (pro hac vice / shneidman@fr.com)
`FISH & RICHARDSON P.C.
`One Marina Park Drive
`Boston, MA 02210
`Telephone: (617) 542-5070
`Facsimile: (617) 542-8906
`
`Michael R. Headley (SBN 220834 / headley@fr.com)
`FISH & RICHARDSON P.C.
`500 Arguello Street, Suite 500
`Redwood City, CA 94063
`Telephone: (650) 839-5070
`Facsimile: (650) 839-5071
`
`Attorneys for Plaintiffs
`BYTEDANCE INC., TIKTOK INC., and TIKTOK PTE. LTD.
`
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF CALIFORNIA
`OAKLAND DIVISION
`
`
`
`
`
`BYTEDANCE INC., TIKTOK INC., AND
`TIKTOK PTE. LTD.,
`
`
`
`
`Plaintiffs
`
`
`
`Case No. 4:20-cv-07572-JSW
`
`SECOND AMENDED COMPLAINT FOR
`
`(1) DECLARATORY JUDGMENT OF
`NON-INFRINGEMENT OF U.S.
`PATENT NO. 9,691,429
`
`v.
`
`
`TRILLER, INC.,
`
`
`
`
`
`Defendant.
`
`
`
`(2) INJUNCTION AGAINST TRILLER TO
`CEASE INFRINGEMENT OF U.S.
`PATENT NOS. 9,648,132, 9,992,322, &
`9,294,430
`
`(3) DAMAGES FOR PATENT
`INFRINGEMENT
`
`
`
`DEMAND FOR JURY TRIAL
`
`Plaintiffs Bytedance Inc. (“BDI”), TikTok Inc. (“TTI”), and TikTok Pte. Ltd. (“TTPL”)
`
`(collectively, “Plaintiffs”), with the written consent of Defendant Triller, Inc. (“Triller” or
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`1
`
`SECOND AMENDED COMPLAINT
`Case No 4:20-cv-07572-JSW.
`
`

`

`Case 4:20-cv-07572-JSW Document 54 Filed 08/25/21 Page 2 of 27
`
`
`
`
`“Defendant”) pursuant to Fed. R. Civ. P. 15(a)(2) (see Dkt. No. 52), do hereby bring this Second
`
`Amended Complaint against Triller as follows:
`
`NATURE OF ACTION
`
`1.
`
`Plaintiffs BDI and TTI bring this action for a declaratory judgment of non-
`
`infringement of U.S. Patent No. 9,691,429 (“the ’429 patent”). Plaintiffs TTI and TTPL also seek
`
`an injunction against Triller and damages for Triller’s past and ongoing infringement of U.S. Patent
`
`Nos. 9,648,132 (“the ’132 patent”), 9,992,322 (“the ’322 patent”), and 9,294,430 (“the ’430
`
`patent”).
`
`2.
`
`Plaintiffs BDI and TTI seek a declaratory judgment that they do not infringe any
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`claim of the ’429 patent (attached as Exhibit A). Plaintiffs TTI and TTPL also seek remedies in
`
`11
`
`equity and law for Triller’s past and ongoing infringement of TikTok’s patented intellectual property
`
`12
`
`as set forth below.
`
`13
`
`3.
`
`Plaintiffs are technology companies that provide and support a variety of mobile
`
`14
`
`software applications that enable people around the world to connect with, consume, and create
`
`15
`
`entertainment content, including via an application called “TikTok.” TikTok is a mobile software
`
`16
`
`application that millions of Americans, including many in this judicial district, use to create and
`
`17
`
`share short videos composed of expressive content.
`
`18
`
`4.
`
`Defendant Triller is the developer, distributor, and operator of an application called
`
`19
`
`“Triller” which it characterizes as “an entertainment platform built for creators.”1 Defendant Triller
`
`20
`
`has alleged that TikTok infringes the ’429 patent, which is not correct. To the contrary, it is Triller
`
`21
`
`that improperly is infringing TTPL and TTI intellectual property, including by Triller’s past and
`
`22
`
`ongoing infringement of the ’132 patent, ’322 patent, and ’430 patent, which includes acts of
`
`23
`
`infringement in this judicial district.
`
`24
`
`25
`
`Triller’s Accusations Against TikTok Are Without Merit
`
`5.
`
`On July 29, 2020, Triller filed a lawsuit against the entities TikTok Inc. and
`
`26
`
`Bytedance Ltd. in the Western District of Texas (C.A. No. 20-cv-00693) (“the Texas Litigation”)
`
`27
`
`28
`
`
`1 https://apps.apple.com/us/app/triller-social-video-platform/id994905763 (accessed Oct. 27,
`2020).
`
`
`
`
`
`2
`
`SECOND AMENDED COMPLAINT
`Case No. 4:20-cv-07572-JSW
`
`

`

`Case 4:20-cv-07572-JSW Document 54 Filed 08/25/21 Page 3 of 27
`
`
`
`
`alleging that those entities “directly and indirectly infringe the [’429] Patent by making, using,
`
`offering for sale, selling, and importing the popular iOS and Android software application known
`
`as ‘TikTok.’” Texas Litigation Dkt. No. 1 ¶3. On November 24, 2020, Triller amended its complaint
`
`in the Texas Litigation to additionally assert the ’429 patent against Bytedance Inc. and TikTok Pte.
`
`Ltd. Texas Litigation Dkt. No. 32. Triller has alleged that the “Accused Products” in that lawsuit
`
`(the “Accused TikTok Products”) are “software products [that] are available for iOS and Android
`
`hand-held or tablet devices and are distributed under the TikTok brand name.” Texas Litigation Dkt.
`
`No. 1 ¶14. Triller has alleged that “making, using, offering for sale, selling and/or importing the
`
`Accused Products” constitutes patent infringement and violates at least 35 U.S.C. § 271(a), (b), and
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`(c). Id. ¶34 et seq. Triller has also alleged that various training videos, demonstrations, brochures,
`
`11
`
`and user guides, which are created by BDI or TTI, instruct users of the TikTok apps to infringe the
`
`12
`
`’429 patent. Id. Triller has alleged that making the Accused TikTok Products (among other acts)
`
`13
`
`infringes at least claims 1, 3, 4, 5, 6, and 7 of the ’429 patent. Id.
`
`14
`
`6.
`
`Notwithstanding Triller’s allegations in the Texas Litigation, that district was not a
`
`15
`
`proper forum for a dispute concerning the Accused TikTok Products. Bytedance Ltd., a defendant
`
`16
`
`in that case, is a holding company based outside of the United States that does not have employees
`
`17
`
`or property in Texas. TTI, another defendant in that case, has no employees or facilities in the State
`
`18
`
`of Texas and, more specifically, does not have any regular and established place of business in that
`
`19
`
`forum, and thus is not subject to venue under the Supreme Court’s decision in TC Heartland LLC
`
`20
`
`v. Kraft Foods Group Brands LLC, 581 U.S. ___ , 137 S. Ct. 1514 (2017). Recognizing that the
`
`21
`
`Western District of Texas was not the proper forum for the Texas Litigation, on July 9, 2021 the
`
`22
`
`Court there ordered the Texas Litigation transferred to the Northern District of California. Texas
`
`23
`
`Litigation Dkt. No. 85. That case has been deemed related to the instant case and assigned case
`
`24
`
`number 4:21-cv-05300-JSW. See Dkt. No. 91. On August 4, 2021, this Court ordered a stay of the
`
`25
`
`transferred Texas Litigation pending final resolution of the Inter Partes Review of Triller’s asserted
`
`26
`
`’429 patent. Triller, Inc. v. Bytedance Ltd., No. 4:21-cv-05300-JSW, Dkt. No. 94 (N.D. Cal. Aug.
`
`27
`
`4, 2021). BDI and TTI thus bring the instant action seeking declaratory judgment in this, the proper
`
`28
`
`
`
`forum—in the state where the relevant parties are based, and in the judicial district where a
`SECOND AMENDED COMPLAINT
`3
`Case No. 4:20-cv-07572-JSW
`
`
`
`

`

`Case 4:20-cv-07572-JSW Document 54 Filed 08/25/21 Page 4 of 27
`
`
`
`
`substantial part of the events or omissions giving rise to Triller’s alleged infringement claims have
`
`occurred and continue to occur.
`
`7.
`
`BDI and TTI are the only companies based in the United States responsible for
`
`developing, providing, and supporting the Accused TikTok Products. Triller’s actions and
`
`allegations have created a real and immediate controversy between Triller, BDI, and TTI as to
`
`whether the Accused TikTok Products infringe any claim of the ’429 patent. In the meantime, the
`
`cloud of Triller’s allegations, including that making the Accused TikTok Products infringes the ’429
`
`patent, hangs over BDI and TTI.
`
`8.
`
`As set forth herein, BDI and TTI do not infringe and have not infringed the ’429
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`patent. Therefore, an actual and justiciable controversy exists as to whether BDI and TTI’s Accused
`
`11
`
`TikTok Products infringe any claim of the ’429 patent. A judicial declaration is necessary to resolve
`
`12
`
`the real, immediate, and justiciable controversy concerning these issues and to determine the
`
`13
`
`respective rights of the parties regarding the ’429 patent. BDI and TTI respectfully seek a judicial
`
`14
`
`determination that the ’429 patent is not directly or indirectly infringed by BDI and TTI, including
`
`15
`
`by their products and/or services.
`
`16
`
`17
`
`Triller Infringes TikTok’s Patents
`
`9.
`
`Contrary to Triller’s assertions, it is Triller that is using TikTok’s innovative,
`
`18
`
`valuable, and patented functionality. Triller’s software application for the iOS operating system and
`
`19
`
`Triller’s software application for the Android operating system (collectively, the “Infringing Triller
`
`20
`
`Products”) infringe several TikTok patents, including the ’132 patent, ’322 patent, and ’430 patent
`
`21
`
`(collectively, “TikTok Asserted Patents”), which are owned by TTPL and exclusively licensed to
`
`22
`
`TTI in the United States.
`
`23
`
`10.
`
`The claims of the TikTok Asserted Patents, including the asserted claims, when
`
`24
`
`viewed as a whole and as an ordered combination where applicable, do not merely recite well-
`
`25
`
`understood, routine, or conventional technologies or components. Rather, the claimed inventions
`
`26
`
`represent specific, improved techniques to solve technological problems uniquely arising in
`
`27
`
`computer networks that overcome the shortcomings of the prior art and prior existing systems and
`
`28
`
`
`
`methods. Indeed, the claimed inventions were not well-known, routine, or conventional at the time
`SECOND AMENDED COMPLAINT
`4
`Case No. 4:20-cv-07572-JSW
`
`
`
`

`

`Case 4:20-cv-07572-JSW Document 54 Filed 08/25/21 Page 5 of 27
`
`
`
`
`of their invention nearly fifteen years ago. At the time of the patented inventions, transferring data
`
`to mobile devices was cumbersome and inefficient, and network data access from mobile devices
`
`was in its infancy.
`
`11.
`
`In May 2007, which is the latest priority date for the TikTok Asserted Patents, the
`
`first prominent and widely-used mobile “smartphone”—the Apple iPhone—had not yet been
`
`released, nor had the world’s largest music streaming service—Spotify—yet launched. See Ex. G
`
`(“The WIRED Guide to the iPhone”, accessible at https://www.wired.com/story/guide-iphone/ (last
`
`accessed August 17, 2021)); Ex. H (“How Spotify Came to Be Worth Billions”, accessible at
`
`https://www.bbc.com/news/newsbeat-43240886 (last accessed August 17, 2021)). And while
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`mobile devices existed at the time, the common way to load media, such as music or video, onto
`
`11
`
`such a mobile device was to first download the media data onto a personal computer (e.g., using an
`
`12
`
`application such as Apple’s iTunes running on an Apple or Windows PC), and then transfer that
`
`13
`
`data onto the mobile device using a wired connection by plugging the mobile device into the
`
`14
`
`personal computer. At the time, digital audio players (“DAPs”), including the then-leading Apple
`
`15
`
`iPod device, operated in this same way. See TikTok Asserted ’322 patent at 1:50-54, 3:62-67
`
`16
`
`(describing an implementation of the claimed invention called “MusicStation” and explaining that
`
`17
`
`“[u]nlike DAPs, where music can only be acquired in the home, MusicStation users can discover
`
`18
`
`and acquire new music anywhere; MusicStation does not need a PC, broadband, iTunes or a credit
`
`19
`
`card to work.”). Moreover, in the case of mobile phones in the early 2007 time frame, capabilities
`
`20
`
`for establishing connections and transferring large data sets, such as those required for media
`
`21
`
`playback, were underdeveloped and not the intended or foreseeable use of most mobile phones.
`
`22
`
`12.
`
`The cumbersome and inefficient mechanism for downloading and transferring media
`
`23
`
`data to DAPs and mobile phones at the time was necessary because wireless networks (e.g., Wi-Fi)
`
`24
`
`were still in their infancy, and content delivery over cellular networks using the hypertext transfer
`
`25
`
`protocol (HTTP) was not yet prominent. Rather, mobile phones at the time (such as the BlackBerry
`
`26
`
`devices) largely used other communication protocols like Short Message Service (SMS),
`
`27
`
`Multimedia Messaging Service (MMS), or email-based communication methods (e.g., the POP3 or
`
`28
`
`
`
`IMAP protocols) to transfer data. See, e.g., Ex. I (“Timeline from 1G to 5G: A Brief History on Cell
`SECOND AMENDED COMPLAINT
`5
`Case No. 4:20-cv-07572-JSW
`
`
`
`

`

`Case 4:20-cv-07572-JSW Document 54 Filed 08/25/21 Page 6 of 27
`
`
`
`
`Phones”, accessible at https://www.cengn.ca/timeline-from-1g-to-5g-a-brief-history-on-cell-
`
`phones/ (last accessed Aug. 18, 2021)). The use of HTTP for the transfer of data to and from mobile
`
`devices did not become prevalent until around 2009, with the proliferation of 4G networks that
`
`offered data rates better-suited to providing bandwidth-intensive applications, including mobile
`
`internet access and media transmission, to large user bases. See id.
`
`13.
`
`For example, at the time of the inventions claimed in the TikTok Asserted Patents,
`
`the United States used wireless 3G networks that provided data transfer rates of up to 2
`
`megabits/second, although data rates were typically much lower, on the order of 144 kilobits/second
`
`for mobile users. See Ex. J (“A Review of the Evolution of Cellular Technologies”) at 990, 992.
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`This pales in comparison to the data transfer rates available with modern-day 4G LTE and 5G
`
`11
`
`networks, which provide speeds on the order of 100 megabits/second and at least 1 gigabit/second,
`
`12
`
`respectively (i.e., transfer rates that are 50- and 500-times faster than 3G networks, respectively).
`
`13
`
`Id. at 991-992; see also Ex. K (“An Overview of Massive MIMO System in 5G”) at 4959. Thus, in
`
`14
`
`the mid-2000s (at the time of these inventions) the transfer of even small amounts of data was a
`
`15
`
`time-consuming endeavor that would quickly frustrate users, limiting the practical use of mobile
`
`16
`
`phones in data-intensive applications such as Internet-based content services and social networks.
`
`17
`
`14.
`
`In addition to these challenges in network access and data transfer, at the time the
`
`18
`
`industry also faced problems with respect to the security of the data being transmitted. During the
`
`19
`
`early 2000s, digital piracy was rampant, especially as to digital music and video. The advent of
`
`20
`
`digital content downloads through services such as iTunes, and the ability to transport software and
`
`21
`
`digital content through the use of DAPs, writable compact discs, and over peer-to-peer (P2P)
`
`22
`
`networks using the Internet, resulted in the proliferation of illicit software and media downloads and
`
`23
`
`sharing, including most notably the Napster service which provoked significant litigation. The music
`
`24
`
`industry was particularly hard-hit by the proliferation of pirated content. For example, in 2005 it
`
`25
`
`was estimated that the value of the global traffic of pirated music was US$4.5 billion, or 13.5% of
`
`26
`
`the total amount of legitimate music sales. Ex. L (“The Music Industry on (the) Line? Surviving
`
`27
`
`Music Piracy in a Digital Era”) at 3. Overall, P2P file sharing alone is considered responsible for a
`
`28
`
`
`
`22% drop in global music sales between 1999 and 2004. Id.
`6
`
`
`
`SECOND AMENDED COMPLAINT
`Case No. 4:20-cv-07572-JSW
`
`

`

`Case 4:20-cv-07572-JSW Document 54 Filed 08/25/21 Page 7 of 27
`
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`15.
`
`The ease with which software and content were unlawfully distributed during the
`
`early- and mid-2000s is attributable largely to deficiencies at the time in digital rights management
`
`(DRM) technology. Without adequate safeguards and supervision of the distribution and use of
`
`software and digital content through DRM systems, individuals were able to easily share software
`
`and media with others and to procure their own copies largely without purchase. Such digital piracy
`
`was a problem uniquely rooted in computer technology that developed in the early 2000s and that,
`
`at the time of the claimed invention, was a leading issue for the computer industry that had yet to be
`
`solved.
`
`16.
`
`Against this backdrop, the inventors of the TikTok Asserted Patents developed the
`
`10
`
`claimed inventions to address these (among other) problems. The claimed inventions comprise
`
`11
`
`superior ways of achieving the ends of accessing and loading digital content, such as music or social
`
`12
`
`network data, on mobile devices including DAPs and mobile phones. The claimed systems and
`
`13
`
`methods also provide technical solutions to the technical problems of the time related to the transfer
`
`14
`
`of digital data to mobile devices, and the efficient access of information over low-bandwidth
`
`15
`
`networks such as the wireless and cellular networks of the day. For instance, the ability to browse
`
`16
`
`and load data directly onto a mobile device, rather than first downloading the content on a separate
`
`17
`
`personal computer before uploading it onto the mobile device over a wired connection, was a
`
`18
`
`significant step toward making the consumption of media on mobile devices practical and efficient.
`
`19
`
`Further, by changing the way data was organized and transmitted, the inventors provided a much-
`
`20
`
`improved computer system that allowed users to search and interact with information, including
`
`21
`
`music tracks and social network profiles, efficiently using mobile devices over low-bandwidth
`
`22
`
`connections. At the time of the TikTok Asserted Patents, these functions were primarily available
`
`23
`
`to users of personal computers connected to the Internet using wired connections.
`
`24
`
`17. Moreover, the claimed features related to placing information about music tracks on
`
`25
`
`a separate metadata layer, distinct from the content itself, solved several technical problems. First,
`
`26
`
`it enabled the integration of DRM systems into online music platforms, thereby addressing the
`
`27
`
`unique problems of digital data piracy that pervaded the music industry at the time. The metadata
`
`28
`
`
`
`architecture of the claimed inventions enabled users of a music platform to browse and search
`SECOND AMENDED COMPLAINT
`7
`Case No. 4:20-cv-07572-JSW
`
`
`
`

`

`Case 4:20-cv-07572-JSW Document 54 Filed 08/25/21 Page 8 of 27
`
`
`
`
`available tracks on the platform, without exposing the protected content to certain users without
`
`authorization. Only if the user had selected a particular music track and had his or her access to the
`
`underlying data authenticated by a DRM system would the protected data be playable, thereby
`
`reducing the risk of illegal sharing of the music track data. Second, the use of metadata on a separate
`
`layer to perform browsing and searching largely solved the problem of providing a media
`
`application, such as the MusicStation application described in the TikTok Asserted Patents, over
`
`wireless networks to mobile devices of limited resources. Compared to the music track files
`
`themselves, the metadata containing attributes of the music tracks (e.g., artists, track titles) is
`
`exceedingly small. Transmitting such information over a network to a wireless device, at a time
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`when data rates were slow and data usage was still expensive, made providing such a platform on a
`
`11
`
`mobile device practical and accessible to users in a way that other data architectures would not have
`
`12
`
`afforded.
`
`13
`
`18.
`
`The inventors of the TikTok Asserted Patents relied on a specific implementation of
`
`14
`
`a novel data architecture (the “MusicStation Protocol”) to provide these technical solutions. See,
`
`15
`
`e.g., ’322 patent at 39:8-14. Since that Protocol relies on the Hypertext Transfer Protocol (HTTP)
`
`16
`
`(as recited, for example, by the asserted claims of the ’430 patent), the novel data architecture also
`
`17
`
`provides a technical solution to the problems of cross-device compatibility. Id. (“As the
`
`18
`
`MusicStation is a request/response protocol it is modelled closely on HTTP, borrowing several of
`
`19
`
`HTTPs features. The MusicStation protocol is text based using the ASCII character set only, this is
`
`20
`
`so that it can be implemented on many different client platforms without any of the encoding issues
`
`21
`
`associated with binary data.”). This is unlike many applications and mobile websites of the time,
`
`22
`
`which relied on device- or network-specific architectures that prevented broad compatibility across
`
`23
`
`users with devices from different manufacturers or designed for use with different network
`
`24
`
`providers.
`
`25
`
`19.
`
`Further, the inventors of the TikTok Asserted Patents recognized that, in addition to
`
`26
`
`the limited network resource limitations of the era, the resources of the mobile devices themselves,
`
`27
`
`including DAPs and mobile phones, were also limited. The TikTok Asserted Patents claim features
`
`28
`
`
`
`that address these shortcomings, including through the use of specific implementations of
`SECOND AMENDED COMPLAINT
`8
`Case No. 4:20-cv-07572-JSW
`
`
`
`

`

`Case 4:20-cv-07572-JSW Document 54 Filed 08/25/21 Page 9 of 27
`
`
`
`
`multithreaded/multitasking architectures that place the various operations of an application on
`
`distinct threads. For example, by placing operations and programs for user interface operability,
`
`network access, media operations, and DRM on distinct threads, use of the limited processing
`
`resources of the mobile devices themselves could also be improved, separately from and in addition
`
`to the optimization of data transfers over the low-bandwidth networks of the time. See ’322 patent
`
`at 11:40-16:56, Figs. 1-3.
`
`20.
`
`The specification of the TikTok Asserted Patents explains just how revolutionary the
`
`claimed inventions were and the technical improvements they provided:
`
`This invention has the promise of being genuinely transformative of
`the way people acquire and listen to digital music. It brings together,
`for the first time, a number of technologies which operate
`synergistically to provide a total solution that is significantly greater
`than the sum of its parts. For example, because the application can
`be automatically adapted to parameters associated with the wireless
`computing device without end-user input, it becomes feasible to
`automatically provision very large numbers of portable wireless
`devices with the application (either prior to sale, or to allow users to
`download and install the application—e.g. by simply giving a
`remote server the correct portable wireless device make and model
`number). The installed base of mobile telephones, for example,
`could therefore readily run into the tens, if not hundreds of
`millions—far larger than any DAP. The application also enables an
`end-user to browse and search music content on a remote server
`using a wireless network; to download music content from that
`remote server using the wireless network and to playback and
`manage that downloaded music content: hence, not only will the
`installed base greatly exceed any DAP solution, the functionality
`will be better than any DAP because it will be possible to search and
`acquire new music directly from the device over the wireless
`network (this is a far more natural process than acquiring music via
`a web based on-line catalogue using a desktop machine and then
`synching a DAP with the desktop machine). Finally, the application
`includes a digital rights management system that enables unlimited
`legal downloads of different music tracks to the device and also
`enables any of those tracks stored on the device to be played so long
`as a subscription service has not terminated. This allows users to
`explore new music far more effectively than before and, with rapidly
`decreasing memory costs, to store thousands of music tracks on even
`mid-range devices. Music companies will be willing to make entire
`catalogues of music available because of the robust DRM model, the
`huge installed user base and the ease of exploring and acquiring new
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`9
`
`SECOND AMENDED COMPLAINT
`Case No. 4:20-cv-07572-JSW
`
`

`

`Case 4:20-cv-07572-JSW Document 54 Filed 08/25/21 Page 10 of 27
`
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`music. This creates a positive feedback, with more and better
`content attracting more users, in turn attracting more content.
`
`’322 patent at 3:11-50.
`
`21.
`
`Recognizing the ingenuity of the claimed inventions, the MusicStation software that
`
`embodied those inventions was markedly successful as a successor to the cumbersome and
`
`inefficient alternatives available at the time. MusicStation was incorporated as a factory-installed
`
`application on devices offered by numerous mobile network operators including Vodafone, Telenor
`
`ASA, Hutchison Telecom, and Vodacom, and gained nearly twenty other mobile network operators
`
`as partners. Ex. M (“Microsoft and Omnifone Team Up to Enable Next-Generation Mobile
`
`Entertainment Services” Feb. 11, 2008) at 1-2. The technology was available on mobile phones from
`
`some of the largest manufacturers, including Sony Ericsson, Nokia, and Samsung, as an alternative
`
`to Apple’s iPhone and iTunes services that were quickly gaining popularity at the time. Ex. N
`
`(Omnifone Brings MusicStation, a Rival to Apple’s iPhone, to Europe”) at 1. As explained
`
`throughout the TikTok Asserted Patents, MusicStation provided a novel direct-to-phone method for
`
`music downloads, as opposed to the cumbersome process required by Apple’s platform. ’322 patent
`
`at 1:50-54, 3:11-67.
`
`22. MusicStation also garnered the attention of the music industry, with the application
`
`hosting licensed music from the catalogs of all of the “big four” music companies, including
`
`Universal Music Group, Sony BMG, EMI Music, and Warner Music International. Ex. N (Omnifone
`
`Brings MusicStation, a Rival to Apple’s iPhone, to Europe”) at 2. Industry executives at the time
`
`praised MusicStation as “a fundamental change in the way the mass-market consumes digital music”
`
`and as a viable way to combat the piracy that was plaguing the digital music industry at the time.
`
`Ex. O (“Nokia Takes on Apple in Music and Cell Phone” Oct. 2, 2008) at 2-3. The industry further
`
`recognized the ingenuity of the MusicStation software as a way to combat the so-called “long tail”
`
`of the music industry—the fact that very few music tracks account for the vast majority of revenues.
`
`Ex. P (“Does the Long Tail Apply to Mobile Music”, Oct. 17, 2008). Through the use of
`
`MusicStation’s recommendation engine technology and integration with social networks, including
`
`its own “Buzz” social network and others, users are driven to tracks they may not otherwise find,
`
`
`
`
`
`10
`
`SECOND AMENDED COMPLAINT
`Case No. 4:20-cv-07572-JSW
`
`

`

`Case 4:20-cv-07572-JSW Document 54 Filed 08/25/21 Page 11 of 27
`
`
`
`
`thereby generating revenue from a wider base of content. The claims of the TikTok Asserted Patents
`
`are directed to specific improvements in computer and networking functionality and capabilities.
`
`Among other things, the claimed inventions improve the functionality of mobile devices including
`
`DAPs and mobile phones, and the systems and networks comprising those devices. As described in
`
`the TikTok Asserted Patents, the claimed technologies improve the efficiency of those devices,
`
`systems, and networks, through the use of specialized data structures and data management
`
`techniques, as well as specific implementations of multithreading and multitasking architectures that
`
`enable those devices to deliver content to mobile device users in ways that previously were possible
`
`only with personal computers using wired Internet connections. See, e.g., ’322 patent at 11:40-16:56,
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`33:29-47. Moreover, the unique use of HTTP for communications and data transfer in mobile
`
`11
`
`applications provided a technical improvement over the use of slower SMS, MMS, and e-mail based
`
`12
`
`communications. These technical innovations enabled the use of rich media and social networking
`
`13
`
`applications on mobile devices that was not possible with the preexisting methods.
`
`14
`
`23.
`
`In sum, including as noted above, the claims of the TikTok Asserted Patents recite
`
`15
`
`specific, concrete steps and implementations that improved prior computer and networking
`
`16
`
`technology, and addressed problems uniquely rooted in computer network and mobile device
`
`17
`
`technology, including in connection with:
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
` Providing a means for loading media directly onto mobile devices, including DAPs and
`
`mobile phones, over the Internet, in lieu of inferior alternative means for achieving the
`
`same or similar ends of loading media onto mobile devices, including by eliminating the
`
`cumbersome and inefficient steps of first downloading the media onto to a personal
`
`computer and then transferring the downloaded media via wired connection from the
`
`personal computer to the mobile device (as recited in, e.g., ’132 patent, claims 1, 6, 22, 26,
`
`31; ’322 patent, claims 30, 35, 51, 55; ’430 patent, claims 1, 19, 23, 28). See, e.g., ’322
`
`patent at 3:11-67, 4:23-31.
`
` Providing a novel, efficient means for allowing the searching and browsing of media over
`
`wireless networks, such as cellular networks, by separating media content data from
`
`metadata describing attributes of the available media content, to allow for a low-data
`SECOND AMENDED COMPLAINT
`11
`Case No. 4:20-cv-07572-JSW
`
`

`

`Case 4:20-cv-07572-JSW Document 54 Filed 08/25/21 Page 12 of 27
`
`method of browsing and searching available media content and therefore a practical
`
`method for browsing and searching such content over wireless networks that, at the time
`
`of the invention, had limited bandwidth and exceedingly high costs for data consumption
`
`(as recited in, e.g., ’132 patent, claims 1, 6, 22, 31; ’322 patent, claims 30, 35, 51; ’430
`
`patent, claims 1, 19, 28). See, e.g., ’322 patent at 3:10-50, 25:35-28:67, Figs. 122-124, 165.
`
`
`
`Improving and optimizing access to network-based software through the use of specific
`
`multithreading/multitasking architectures, as compared to traditional architectures (e.g.,
`
`single-threaded architectures), thereby freeing up limited mobile device resources to
`
`process tasks for other applications and improving overall device performance and user
`
`experience (as recited in, e.g., ’132 patent, claims 2-3, 27; ’322 patent, claims 31-32, 56;
`
`’430 patent, claim 24). See, e.g., ’322 patent at 11:40-16:56, Figs. 1-3.
`
` Solving the digital media piracy problem via a protection scheme in which metadata
`
`providing attributes of digital media is separated and independently accessible from the
`
`digital media data itself, thereby enabling the searching and browsing of digital media
`
`without compromising the security of the digital media data, and facilitating the integration
`
`of DRM technology with the digital media data to ensure legitimate access to the digital
`
`media data (as recited in, e.g., ’132 patent, claims 3, 27; ’322 patent, claims 32, 56; ’430
`
`patent, claim 24). See, e.g., ’322 patent at 56:60-57:60, 64:8-66:2, Fig. 71.
`
` Providing a novel mechanism for mobile devices, including DAPs and mobile phones, to
`
`use HTTP over wireless networks, including cellular networks, and to use the standardized
`
`data format provided by HTTP to enable cross-device compatibility and the efficient
`
`browsing and searching of information, including music and social media information,
`
`over such networks while maintaining the security of such information (as recited in, e.g.,
`
`’132 patent, claim 26; ’322 patent, claim 55; ’430 patent, claims 1, 19, 23-24, 28). See,
`
`e.g., ’322 patent at 38:47-39:43, 41:30-42:26.
`
`24.
`
`Thus, the inventors did more than simply apply then-current technology to an
`
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`