Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 1 of 54 PageID #: 1
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`
`
`RFCyber CORP.,
`
`Plaintiff,
`
`
`
`v.
`
`
`SAMSUNG ELECTRONICS CO. LTD., and
`SAMSUNG ELECTRONICS AMERICA,
`INC.
`
`
`Defendants.
`
`
`Case No.
`
`JURY TRIAL DEMANDED
`
`
`§
`§
`§
`§
`§
`§
`§
`§
`§
`§
`
`
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`
`Plaintiff, RFCyber Corp. (“RFCyber” or “Plaintiff”), files this original Complaint against
`
`Defendants Samsung Electronics Co., Ltd. (“Samsung Electronics”) and Samsung Electronics
`
`America, Inc. (“Samsung Electronics America”) (collectively “Samsung” or “Defendants”), for
`
`patent infringement under 35 U.S.C. § 271 and alleges as follows:
`
`THE PARTIES
`
`1.
`
`RFCyber is a Texas corporation with its principal place of business at 7300 Lone
`
`Star Drive, Suite c200, Plano, TX 75024. RFCyber is the owner of all right, title, and interest in
`
`and to, or is the exclusive licensee with the right to sue for U.S. Patent Nos. 8,118,218,
`
`8,448,855, 9,189,787, 9,240,009, and 10,600,046 (the “Patents-in-Suit” or “Asserted Patents”).
`
`2.
`
`Defendant Samsung Electronics is a corporation organized and existing under the
`
`laws of the Republic of Korea, with its principal place of business at 129 Samsung-Ro,
`
`Yeongtong-Gu, Suwon-Si, Gyeonggi-Do, 443-742, Republic of Korea. Upon information and
`
`belief, Samsung Electronics does business in Texas, directly or through intermediaries, and
`
`offers its products and/or services, including those accused herein of infringement, to customers
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`

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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 2 of 54 PageID #: 2
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`and potential customers located in Texas, including in the Judicial District of the Eastern District
`
`of Texas.
`
`3.
`
`Defendant Samsung Electronics America is a corporation organized under the
`
`laws of New York, with its principal place of business at 85 Challenger Road, Ridgefield Park,
`
`NJ 07660. Upon information and belief, Samsung Electronics America has corporate offices in
`
`the Eastern District of Texas at 1303 East Lookout Drive, Richardson, Texas 75082 and 2800
`
`Technology Drive, Suite 200, Plano, Texas 75074. Samsung Electronics America has publicly
`
`indicated that in early 2019, it would be centralizing multiple offices in a new location in the
`
`Eastern District of Texas at the Legacy Central office campus,1 located at 6225 Declaration
`
`Drive, Plano, Texas 75023. Samsung Electronics America may be served with process through
`
`its registered agent CT Corporation System, 1999 Bryan Street, Suite 900, Dallas, Texas 75201-
`
`3136.
`
`4.
`
`Defendants have authorized sellers and sales representatives that offer and sell
`
`products pertinent to this Complaint through the State of Texas, including in this Judicial
`
`District, and to consumers throughout this Judicial District, such as: Best Buy, 422 West TX-281
`
`Loop, Suite 100, Longview, Texas 75605; AT&T Store, 1712 East Grand Avenue, Marshall,
`
`Texas 75670; Sprint Store, 1806 East End Boulevard North, Suite 100, Marshall, TX 75670; T-
`
`Mobile, 900 East End Boulevard North, Suite 100, Marshall, TX 75670; Verizon authorized
`
`retailers, including Russell Cellular, 1111 East Grand Avenue, Marshall, Texas 75670; Victra,
`
`1006 East End Boulevard, Marshall, Texas 75670; and Cricket Wireless authorized retailer, 120
`
`East End Boulevard South, Marshall, TX 75670.
`
` 
`1 https://news.samsung.com/us/samsung-electronics-america-open-flagship-north-texas-campus/,
`last accessed Apr. 29, 2019.
`
`2 
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`

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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 3 of 54 PageID #: 3
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`JURISDICTION AND VENUE
`
`5.
`
`This is an action for patent infringement arising under the patent laws of the
`
`United States, 35 U.S.C. §§ 1, et seq. This Court has subject matter jurisdiction over this action
`
`pursuant to 28 U.S.C. §§ 1331, 1332, 1338, and 1367.
`
`6.
`
`7.
`
`The amount in controversy exceeds $75,000.
`
`This Court has specific and personal jurisdiction over each of the Defendants
`
`consistent with the requirements of the Due Process Clause of the United States Constitution and
`
`the Texas Long Arm Statute. Upon information and belief, each Defendant has sufficient
`
`minimum contacts with the forum because each Defendant transacts substantial business in the
`
`State of Texas and in this Judicial District. Further, each Defendant has, directly or through
`
`subsidiaries or intermediaries, committed and continues to commit acts of patent infringement in
`
`the State of Texas and in this Judicial District as alleged in this Complaint, as alleged more
`
`particularly below.
`
`8.
`
`Venue is proper in this Judicial District pursuant to 28 U.S.C. §§ 1400(b) and
`
`1391(b) and (c) because each Defendant is subject to personal jurisdiction in this Judicial
`
`District, has committed acts of patent infringement in this Judicial District, and has a regular and
`
`established place of business in this Judicial District. Each Defendant, through its own acts
`
`and/or through the acts of each other Defendant, makes, uses, sells, and/or offers to sell
`
`infringing products within this Judicial District, regularly does and solicits business in this
`
`Judicial District, and has the requisite minimum contacts with the Judicial District such that this
`
`venue is a fair and reasonable one. Further, venue is proper in this Judicial District because
`
`Samsung Electronics is a foreign corporation formed under the laws of Korea with a principal
`
`3 
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`

`

`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 4 of 54 PageID #: 4
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`place of business in Korea. Further, upon information and belief, the Defendants have admitted
`
`or not contested proper venue in this Judicial District in other patent infringement actions.
`
`PATENTS-IN-SUIT
`
`9.
`
`On February 21, 2012, the United States Patent and Trademark Office duly and
`
`legally issued U.S. Patent No. 8,118,218 (the “’218 Patent”) entitled “Method and Apparatus for
`
`Providing Electronic Purse.” A true and correct copy of the ’218 Patent is available at
`
`https://pdfpiw.uspto.gov/.piw?PageNum=0&docid=08118218.
`
`10.
`
`On May 28, 2013, the United States Patent and Trademark Office duly and legally
`
`issued U.S. Patent No. 8,448,855 (the “’855 Patent”) entitled “Method and Apparatus for
`
`Funding an Electronic Purse.” A true and correct copy of the ’855 Patent is available at
`
`https://pdfpiw.uspto.gov/.piw?PageNum=0&docid=08448855.
`
`11.
`
`On November 17, 2015, the United States Patent and Trademark Office duly and
`
`legally issued U.S. Patent No. 9,189,787 (the “’787 Patent”) entitled “Method and Apparatus for
`
`Conducting E-Commerce and M-Commerce.” A true and correct copy of the ’787 Patent is
`
`available at https://pdfpiw.uspto.gov/.piw?PageNum=0&docid=09189787.
`
`12.
`
`On January 19, 2016, the United States Patent and Trademark Office duly and
`
`legally issued U.S. Patent No. 9,240,009 (the “’009 Patent”) entitled “Mobile Devices for
`
`Commerce Over Unsecured Networks.” A true and correct copy of the ’009 Patent is available
`
`at https://pdfpiw.uspto.gov/.piw?PageNum=0&docid=09240009.
`
`13.
`
`On March 24, 2020, the United States Patent and Trademark Office duly and
`
`legally issued U.S. Patent No. 10,600,046 (the “’046 Patent”) entitled “Method and Apparatus
`
`for Mobile Payments.” A true and correct copy of the ’046 Patent is available at
`
`https://pdfpiw.uspto.gov/.piw?PageNum=0&docid=10600046.
`
`4 
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`

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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 5 of 54 PageID #: 5
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`14.
`
`RFCyber is the sole and exclusive owner of all right, title and interest to and in, or
`
`is the exclusive licensee with the right to sue for, the ’218, ‘855, ‘787, ‘009, and ‘046 Patents
`
`(together, the “Patents-in-Suit”), and holds the exclusive right to take all actions necessary to
`
`enforce its rights to the Patents-in-Suit, including the filing of this patent infringement lawsuit.
`
`RFCyber also has the right to recover all damages for past, present, and future infringement of
`
`the Patents-in-Suit and to seek injunctive relief as appropriate under the law.
`
`INFRINGEMENT ALLEGATIONS
`
`15.
`
`The technologies of the Patents-in-Suit were variously invented by Liang Seng
`
`Koh, Hsin Pan, Ziangzhen Zie, and Fuliang Cho. The Patents-in-Suit generally cover apparatus
`
`and methods for enabling secure contactless payment with a portable device. In one exemplary
`
`embodiment, a smart card module including a secure element may emulate a payment card over
`
`near field communications (“NFC”). For example, users may select one of a plurality of payment
`
`cards stored in a memory of the secure element, and carry out a transaction via NFC at a point of
`
`service (“POS”). In another embodiment, the device may securely conduct transactions over an
`
`open network with a payment server. By facilitating the settlement of charges using an NFC
`
`mobile device to read off data pertaining to an electronic invoice, the inventions of the Patents-
`
`in-Suit provide significant time-savings, particularly in situations where a payment process
`
`would otherwise involve more than one contact between a merchant and consumer.
`
`16.
`
`Samsung has manufactured, used, marketed, distributed, sold, offered for sale,
`
`and exported from and imported into the United States devices and software that infringe the
`
`Patents-in-Suit. Samsung has distributed variants of Samsung Pay and/or Samsung Pay Cash that
`
`have included functionality to emulate a payment card and settle a transaction via NFC and/or
`
`5 
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`

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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 6 of 54 PageID #: 6
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`MST at least since September 2015.2 Samsung Pay is operable on a range of Samsung devices,
`
`including at least all devices from the Galaxy S6 and above, including, at least all variants of the
`
`following Samsung devices: Galaxy S20, S20+, S20 Ultra 5G, Galaxy Fold, Galaxy Z-Flip, Z-
`
`Flip 5G, Galaxy Note 20, Note 20 Ultra, Note10, Note10+, Note10+ 5G, Note5, Galaxy S10e,
`
`S10, S10+, Galaxy Note9, Galaxy S9, S9+, Galaxy Note8, Galaxy Note5, Galaxy S8, S8+,
`
`Galaxy S7, S7 edge, Galaxy S6, S6 edge, S6 edge+, S6 Active, Galaxy A90, Galaxy A80,
`
`Galaxy A70, A71, A71 5G, Galaxy A50, A51, Galaxy A40, Galaxy A30, A31, Galaxy A20e,
`
`Galaxy A8, Galaxy A7, Galaxy A5, Galaxy J7, Galaxy J5 Pro, Galaxy Watch S3, Galaxy Watch
`
`S2 Sport, Galaxy Watch S2 Classic, Gear S3 Frontier, Gear S3 Classic, Galaxy Watch Active2,
`
`Galaxy Watch Active, Galaxy Watch, Gear Sport, Gear S3, and Gear S2, and all Samsung
`
`devices released since September 2015.3 The current and previous versions of Samsung Pay and
`
`devices running Samsung Pay, alone and together, are non-limiting instances of the Accused
`
`Products. The Accused Products include, for example, the representative Samsung Galaxy S8
`
`running Samsung Pay and/or Samsung Pay Cash. The Accused Products practice the claims of
`
`the Patents-in-Suit to improve the shopping experience of their users, and to improve Samsung’s
`
`position in the market.
`
`17.
`
`Samsung’s infringement of the Patents-in-Suit is willful. Samsung continues to
`
`commit acts of infringement despite a high likelihood that its actions constitute infringement, and
`
` 
`2 See https://news.samsung.com/global/samsung-announces-launch-dates-for-groundbreaking-
`mobile-payment-service-samsung-pay.
`3 https://www.samsung.com/us/support/owners/app/samsung-pay;
`https://www.samsung.com/au/apps/samsungpay/#compatibility;
`https://www.samsung.com/levant/support/mobile-devices/samsung-pay-how-to-use-samsung-
`pay-application-on-my-s8-s8-plus/; https://www.pocket-lint.com/apps/news/samsung/132981-
`what-is-samsung-pay-how-does-it-work-and-which-banks-support-it.
`
`6 
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`

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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 7 of 54 PageID #: 7
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`Samsung knew or should have known that its actions constituted an unjustifiably high risk of
`
`infringement.
`
`18.
`
`RFCyber has at all times complied with the marking provisions of 35 U.S.C. §
`
`287 with respect to the Patents-in-Suit. On information and belief, any prior assignees and
`
`licensees have also complied with the marking provisions of 35 U.S.C. § 287.
`
`COUNT 1
`(Infringement of the ’218 Patent)
`
`Paragraphs 1 through 18 are incorporated herein by reference as if fully set forth
`
`19.
`
`in their entireties.
`
`20.
`
`RFCyber has not licensed or otherwise authorized Samsung to make, use, offer
`
`for sale, sell, or import any products that embody the inventions of the ’218 Patent.
`
`21.
`
`Samsung infringes, contributes to the infringement of, and/or induces
`
`infringement of the ’218 Patent by making, using, selling, offering for sale, distributing,
`
`exporting from, and/or importing into the United States products and/or methods covered by one
`
`or more claims of the ’218 Patent, including, but not limited to, at least the Accused Products.
`
`22.
`
`Samsung has directly infringed and continues to directly infringe the ’218 Patent,
`
`either literally or under the doctrine of equivalents, without authority and in violation of 35
`
`U.S.C. § 271, by making, using, offering to sell, selling and/or importing into the United States
`
`products that satisfy each and every limitation of one or more claims of the ’218 Patent. Upon
`
`information and belief, these products include the Accused Products that practice the methods
`
`and systems covered by the ’218 Patent, including, for example, card emulation and NFC
`
`payment functionality implemented by Samsung Pay running on an Samsung device, such as the
`
`representative Samsung Galaxy S8. For example, these infrastructures infringe at least claim 1 of
`
`the ’218 Patent.
`
`7 
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`

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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 8 of 54 PageID #: 8
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`23.
`
`For example, Samsung has and continues to directly infringe at least claim 1 of
`
`the ‘218 Patent by making, using, offering to sell, selling and/or importing into the United States
`
`products that implement a method for providing an e-purse, the method comprising: providing a
`
`portable device including or communicating with a smart card pre-loaded with an emulator
`
`configured to execute a request from an e-purse applet and provide a response the e-purse applet
`
`is configured to expect, the portable device including a memory space loaded with a midlet that
`
`is configured to facilitate communication between the e-purse applet and a payment server over a
`
`wireless network, wherein the e-purse applet is downloaded and installed in the smart card when
`
`the smart card is in communication with the payment server, the portable device further includes
`
`a contactless interface that facilitates communication between the e-purse applet in the smart
`
`card and the payment server over a wired network; personalizing the e-purse applet by reading
`
`off data from the smart card to generate in the smart card one or more operation keys that are
`
`subsequently used to establish a secured channel between the e-purse applet and an e-purse
`
`security authentication module (SAM) external to the smart card, wherein said personalizing the
`
`e-purse applet comprises: establishing an initial security channel between the smart card and the
`
`e-purse SAM to install and personalize the e-purse applet in the smart card, and creating a
`
`security channel on top of the initial security channel to protect subsequent operations of the
`
`smart card with the e-purse SAM, wherein any subsequent operation of the emulator is
`
`conducted over the security channel via the e-purse applet.
`
`24.
`
`The Accused Products provide a portable device, such as the Samsung Galaxy S8,
`
`including or communicating with a smart card pre-loaded with an emulator configured to execute
`
`a request from an e-purse applet and provide a response the e-purse applet is configured to
`
`expect. For example, the Samsung Galaxy S8 includes or communicates with a smart card such
`
`8 
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`

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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 9 of 54 PageID #: 9
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`as an NFC module, and/or assembly of an NFC module, secure element, processor,
`
`microcontroller, and/or memory, such as an NXP 80T71 NFC Controller. On information and
`
`belief, the smart card (e.g. NFC module) of the Samsung Galaxy S8 is pre-loaded with an
`
`emulator configured to execute a request from an e-purse applet, such as a payment card applet
`
`within Samsung Pay, and provide a response that the applet is configured to expect.
`
`https://www.ifixit.com/Teardown/Samsung+Galaxy+S8+Teardown/87136
`
`
`
`
`
`9 
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`

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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 10 of 54 PageID #: 10
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`
`
`
`
`NXP PN547 Near Field Communication (NFC) Datasheet
`
`10 
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`

`

`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 11 of 54 PageID #: 11
`
`
`https://www.blackhat.com/docs/eu-17/materials/eu-17-Ma-How-Samsung-Secures-Your-Wallet-
`And-How-To-Break-It.pdf
`
`25.
`
`For example, Accused Products, such as the Samsung Galaxy S8, include a
`
`memory space loaded with a midlet, such as Samsung Pay, that is configured to facilitate
`
`communication between the e-purse applet, such as a payment card stored on the product, and a
`
`payment server, such as a merchant and/or financial institution payment server, over a wireless
`
`network. For example, on information and belief, the Samsung Galaxy S8 comprises memory
`
`such as RAM, ROM, Flash, and/or EEPROM, including in both the NFC module and secure
`
`element. For example, on information and belief, the secure element of the NXP 80T71 NFC
`
`Controller included and utilized by the Samsung Galaxy S8 running Samsung Pay further
`
`comprises a memory such as RAM, ROM, Flash, and/or EEPROM
`
`11 
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`

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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 12 of 54 PageID #: 12
`
`
`
`
`
`https://www.blackhat.com/docs/eu-17/materials/eu-17-Ma-How-Samsung-Secures-Your-Wallet-
`And-How-To-Break-It.pdf
`
`
`The Accused Products further perform a method wherein the e-purse applet is
`
`26.
`
`downloaded and installed in the smart card when the smart card is in communication with the
`
`payment server. For example, the Samsung Galaxy S8 running Samsung Pay operates to
`
`12 
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`

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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 13 of 54 PageID #: 13
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`download and install a payment card applet when the NFC module is in communication with the
`
`payment institution’s server:
`
`
`
`
`
`13 
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`

`

`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 14 of 54 PageID #: 14
`
`
`https://www.blackhat.com/docs/eu-17/materials/eu-17-Ma-How-Samsung-Secures-Your-Wallet-
`And-How-To-Break-It.pdf
`
`
`27.
`
`The Accused Products further include a contactless interface that facilitates
`
`communication between the e-purse applet in the smart card and the payment server over a wired
`
`network. For example, on information and belief, the NFC module of the Samsung Galaxy S8
`
`includes a contactless NFC interface that facilitates communication between a payment card
`
`applet and a payment server over a wired network, such as via a payment card reader at a POS
`
`connected to a payment server via wired network:4
`
` 
`4 https://developer.samsung.com/internet/android/web-payments-integration-guide.html
`
`14 
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`

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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 15 of 54 PageID #: 15
`
`
`
`
`
`NXP PN547 Near Field Communication (NFC) Datasheet
`28.
`The Accused Products further personalize the e-purse applet (e.g. payment card
`
`applet within Samsung Pay) by reading off data from the smart card (e.g. NFC Module) to
`
`generate in the smart card one or more operation keys that are subsequently used to establish a
`
`secured channel between the e-purse applet and an e-purse security authentication module
`
`15 
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`

`

`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 16 of 54 PageID #: 16
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`(SAM) external to the smart card. For example, on information and belief, Samsung Pay
`
`establishes operations keys that operate to establish secure connections between a stored
`
`payment card and an authentication module at a server of the card issuer and/or merchant when
`
`adding a given card to the device for the first time, and/or subsequently during transactions:
`
`
`
`
`https://www.blackhat.com/docs/eu-17/materials/eu-17-Ma-How-Samsung-Secures-Your-Wallet-
`And-How-To-Break-It.pdf
`
`
`29.
`
`The Accused Products further practice a method wherein personalizing the e-
`
`purse applet (e.g. configuring the payment card applet within Samsung Pay) comprises
`
`16 
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`

`

`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 17 of 54 PageID #: 17
`
`establishing an initial security channel between the smart card and the e-purse SAM to install
`
`and personalize the e-purse applet in the smart card. For example, on information and belief,
`
`Samsung Pay operates to establish a security channel with at least a card issuer server after a user
`
`enters details for a given payment card, and operates to install and personalize the applet in the
`
`smart card, such as to install the card with the user’s personal information in the secure element
`
`of a smart card module:
`
`
`
`Id.
`
`30.
`
`The Accused Products create a security channel on top of the initial security
`
`channel to protect subsequent operations of the smart card within the e-purse SAM, wherein any
`
`subsequent operation of the emulator is conducted over the security channel via the e-purse
`
`applet. For example, on information and belief, once a payment card applet is installed, operation
`
`of the emulator is conducted via operation of the e-purse applet:
`
`17 
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`

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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 18 of 54 PageID #: 18
`Case 2:20-cv-00335-JRG-RSP Document1 Filed 10/16/20 Page 18 of 54 PagelD#: 18
`
`Registration-SE Operations
`
`*Done by SKMS Agent and Samsung Server;
`*Use Key,,, to set up Secure Channel, encrypted by Triple DES;
`*Only Samsung and SE know Key;<q;
`“Working in privilege Security Domain—Issuer Security Domain;
`*At the end of this stage, Key,.r,, is set for new domain;
`
`serviceName”:"**** AMSD BANK1 SSD001 Service”
`
`ftectfff-éb4a-4fa5-a7£7-fdScbel72222",
`04164609",
`
`":<APDUs>,
`
`msgCd": "NEXTAPDU",
`DUID": "féecffff-éb4a-4fa5-a7f£7-fdScbel72222",
`seId”™:"411111104700DA3E01005177080777777777",
`
`
`
`QSP
`QSPCASD
`QSPASKMS
`QACL
`QSPAS3SSD
`SSPLISTEN
`SSPSECTRANS
`SSESHARE
`SECSTORAGE
`
`GetCPLC
`
`GetISDInfo
`
`GetAppletInfoOnSE |-----------------
`|
`|
`
`QSPCASD
`QSPCfg
`QSPALCCMAM
`QSPALCCMDM
`QACL
`
`QSPASKMS
`QSPAS3SSD
`SECSESPROT
`SECSTORAGE1
`
`
`
`
`
`QSPASKM
`sizel.3K
`
`~~~) GetExecutableModuleAndFileInfo
`i
`iApplet_QSPASKMS: A000000151535041534B4D53,
`
` F
`
`*
`( Install Applet2:400000015141434C00,sizel4k |
`.
`Install Supplementary Security
`Domain: 40000003330053440121561126241000,size
`23.8k
`
`
`Modify Card Manager Key
`
`Set Applet_QSPASKMS key*2
`
`
`| Set Supplementary Security Domain Data
`
`as
`
`{ set Supplementary Security Domain Default Key
`
`Set Applet2 Data
`
`
`
`18 
`18
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`

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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 19 of 54 PageID #: 19
`
`
`
`
`Samsung has had knowledge and notice of the ‘218 Patent at least as of the filing
`
`31.
`
`of the complaint.
`
`32.
`
`Samsung has indirectly infringed and continues to indirectly infringe one or more
`
`claims of the ’218 Patent, as provided by 35 U.S.C. § 271(b), by inducing infringement by
`
`others, such as Samsung’s customers and end-users, in this District and elsewhere in the United
`
`States. For example, Samsung’s customers and end-users directly infringe, either literally or
`
`under the doctrine of equivalents, through their use of the inventions claimed in the ’218 Patent.
`
`19 
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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 20 of 54 PageID #: 20
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`Samsung induces this direct infringement through its affirmative acts of manufacturing, selling,
`
`distributing, and/or otherwise making available the Accused Products, and providing
`
`instructions, documentation, and other information to customers and end-users suggesting that
`
`they use the Accused Products in an infringing manner, including technical support, marketing,
`
`product manuals, advertisements, and online documentation. Because of Samsung’s inducement,
`
`Samsung’s customers and end-users use the Accused Products in a way Samsung intends and
`
`they directly infringe the ’218 Patent. Samsung performs these affirmative acts with knowledge
`
`of the ’218 Patent and with the intent, or willful blindness, that the induced acts directly infringe
`
`the ’218 Patent.
`
`33.
`
`Samsung has indirectly infringed and continues to indirectly infringe one or more
`
`claims of the ’218 Patent, as provided by 35 U.S.C. § 271(c), by contributing to direct
`
`infringement by others, such as customers and end-users, in this District and elsewhere in the
`
`United States. Samsung’s affirmative acts of selling and offering to sell the Accused Products in
`
`this District and elsewhere in the United States and causing the Accused Products to be
`
`manufactured, used, sold and offered for sale contributes to others’ use and manufacture of the
`
`Accused Products such that the ’218 Patent is directly infringed by others. The accused
`
`components within the Accused Products are material to the invention of the ’218 Patent, are not
`
`staple articles or commodities of commerce, have no substantial non-infringing uses, and are
`
`known by Samsung to be especially made or adapted for use in the infringement of the ’218
`
`Patent. Samsung performs these affirmative acts with knowledge of the ’218 Patent and with
`
`intent, or willful blindness, that they cause the direct infringement of the ’218 Patent.
`
`34.
`
`Because of Samsung’s direct and indirect infringement of the ’218 Patent,
`
`RFCyber has suffered, and will continue to suffer, damages in an amount to be proved at trial.
`
`20 
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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 21 of 54 PageID #: 21
`
`35.
`
`Because of Samsung’s direct and indirect infringement of the ’218 Patent,
`
`RFCyber has suffered, and will continue to suffer, irreparable harm for which there is no
`
`adequate remedy at law, unless Samsung’s infringement is enjoined by this Court.
`
`COUNT II
`(Infringement of the ’787 Patent)
`
`36.
`
`Paragraphs 1 through 18 are incorporated herein by reference as if fully set forth
`
`in their entireties.
`
`37.
`
`RFCyber has not licensed or otherwise authorized Samsung to make, use, offer
`
`for sale, sell, or import any products that embody the inventions of the ’787 Patent.
`
`38.
`
`Samsung infringes, contributes to the infringement of, and/or induces
`
`infringement of the ’787 Patent by making, using, selling, offering for sale, distributing,
`
`exporting from, and/or importing into the United States products and/or methods covered by one
`
`or more claims of the ’787 Patent, including, but not limited to, at least the Accused Products.
`
`39.
`
`Samsung has directly infringed and continues to directly infringe the ’787 Patent,
`
`either literally or under the doctrine of equivalents, without authority and in violation of 35
`
`U.S.C. § 271, by making, using, offering to sell, selling and/or importing into the United States
`
`products that satisfy each and every limitation of one or more claims of the ’787 Patent. Upon
`
`information and belief, these products include the Accused Products that practice the methods
`
`and systems covered by the ’787 Patent, including, for example, card emulation and NFC
`
`payment functionality implemented by Samsung Pay running on an Samsung device, such as the
`
`representative Samsung Galaxy S8. For example, these infrastructures infringe at least claim 1 of
`
`the ’787 Patent.
`
`40.
`
`For example, Samsung has and continues to directly infringe at least claim 1 of
`
`the ‘787 Patent by making, using, offering to sell, selling and/or importing into the United States
`
`21 
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`

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`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 22 of 54 PageID #: 22
`
`products that comprise a portable device for commerce, the portable device comprising an
`
`emulator loaded in a smart card module for storing security values and updated transaction logs,
`
`and an e-purse applet to cause the portable device to function as an electronic purse (e-purse),
`
`wherein both of the emulator and e-purse applet are already personalized via a personalization
`
`process built on a first security channel so that the emulator is set to store a set of keys for
`
`subsequent data access authentication and the e-purse applet is configured to conduct a
`
`transaction with a network server over a second security channel; a first interface configured to
`
`perform field communication (NFC) with a reader to perform electronic commerce with the e-
`
`purse applet against a fund stored in the emulator; a second interface configured to perform
`
`mobile commerce with a payment server via an application against the fund stored in the
`
`emulator; and a purse manager midlet being executed in the portable device to act as an agent to
`
`facilitate communications between the e-purse applet and a payment server to conduct
`
`transactions therebetween.
`
`41.
`
`The Accused Products comprise an emulator loaded in a smart card module for
`
`storing security values and updated transaction logs. For example, the Samsung Galaxy S8
`
`comprises an NFC Module with an emulator, such as a host card emulator, for storing security
`
`values, such as device account number, operating keys and/or a tokenized card and cryptogram,
`
`and for updating transaction logs, such as via Samsung Pay:5
`
` 
`5 See https://support.Samsung.com/pay/answer/9231020;
`https://support.Samsung.com/pay/merchants/answer/6345242?hl=en/
`
`22 
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`

`

`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 23 of 54 PageID #: 23
`
`https://www.ifixit.com/Teardown/Samsung+Galaxy+S8+Teardown/87136
`
`
`
`
`
`
`
`23 
`
`

`

`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 24 of 54 PageID #: 24
`
`NXP PN547 Near Field Communication (NFC) Datasheet
`See e.g. Samsung Pay screen capture depicting updated transaction logs:
`
`
`
`
`
`Source: https://www.samsung.com/us/support/answer/ANS00044981/
`42.
`The accused products further comprise an e-purse applet, such as a payment card
`
`applet within Samsung Pay, to cause the portable device (e.g. the Samsung Galaxy S8) to
`
`24 
`
`

`

`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 25 of 54 PageID #: 25
`
`function as an electronic purse. For example, applets within Samsung Pay cause Android devices
`
`to carry out a transaction, such as via NFC:
`
`
`
`https://www.blackhat.com/docs/eu-17/materials/eu-17-Ma-How-Samsung-Secures-Your-Wallet-
`And-How-To-Break-It.pdf
`
`
`The Accused Products further comprise a portable device wherein both of the
`
`43.
`
`emulator (e.g. host card emulator of the NFC module) and e-purse applet (e.g. payment card
`
`applet) are already personalized via a personalization process built on a first security channel so
`
`that the emulator is set to store a set of keys for subsequent data access authentication and the e-
`
`purse applet is configured to conduct a transaction with a network server over a second security
`
`channel. For example, on information and belief, the emulator and applet of a Galaxy S8 running
`
`Samsung Pay are personalized during installation so that the emulator stores a set of keys (e.g.
`
`device account number, operating keys and/or a tokenized card and cryptogram) for subsequent
`
`access and authentication during transactions.
`
`25 
`
`

`

`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 26 of 54 PageID #: 26
`
`
`
`
`
`https://www.blackhat.com/docs/eu-17/materials/eu-17-Ma-How-Samsung-Secures-Your-Wallet-
`And-How-To-Break-It.pdf
`
`
`The Accused Products further comprise a first interface configured to perform
`
`44.
`
`field communication (NFC) with a reader to perform electronic commerce with the e-purse
`
`applet against a fund stored in the emulator. For example, the Samsung Galaxy S8 comprises an
`
`NFC Module, such as an NXP 80T71 NFC Controller, including an NFC interface to perform
`
`electronic commerce with a card reader.
`
`26 
`
`

`

`Case 2:20-cv-00335-JRG-RSP Document 1 Filed 10/16/20 Page 27 of 54 PageID #: 27
`
`45.
`
`The Accused Products further comprise a second interface configured to perform
`
`mobile commerce with a payment server via an application against the fund stored in the
`
`emulator. For example, on information and belief, the Samsung Galaxy S8 comprises a second
`
`interface to perform mobile commerce with a payment server, such as the payment server of an
`
`issuer and/or a merchant, against a fund stored in the emulator, such as a gift card fund stored in
`
`the emulator of an