ALD Social, LLC v. Apple, Inc.

District Court, N.D. California·Decided July 24, 2023·No. 3:23-cv-02695·Unknown

Opinion

ALD SOCIAL, LLC, Case No. 23-cv-02695-JSC

Plaintiff, ORDER RE: DEFENDANT APPLE’S v. MOTION TO DISMISS

APPLE, INC., Re: Dkt. No. 21 Defendant.

ALD Social sues Apple for infringement of two patents directed to systems to detect crowd safety risks and alert emergency personnel of such risks: U.S. Patent Nos. 9,198,054 (“the ’054 patent”) and 9,402,158 (“the ’158 patent”). (Dkt. No. 1.)1 Before this Court is Apple’s motion to dismiss. (Dkt. No. 21.) After carefully considering the briefing, and with the benefit of oral argument on July 13, 2023, the Court GRANTS the motion with leave to amend. The documents Plaintiff attached to the complaint are inconsistent with the Accused Product satisfying the Asserted Patents’ “crowd risk determinant” limitation or the ’158 patent’s “location aggregation” limitation. A. ALD Social’s Patents Plaintiff filed suit against Apple for patent infringement in the Western District of Texas. (Dkt. No. 1.) Both the ’054 patent and the ’158 patent (“Asserted Patents”) are titled “Aggregate Location Dynometer (ALD).” (Dkt. No. 1 at 4.) The ’158 patent is a continuation of the ’054 patent. ’158 patent, col. 1 ll. 4-13. Both Asserted Patents’ abstracts describe: An Aggregate Location Dynometer (ALD) in a physical wireless network alerts to a problematic crowd risk using location based services (LBS). An Aggregate Location Dynometer (ALD) comprises a Network Monitor, a Crowd Risk Determinant and an Alert Module. The Network Monitor monitors wireless traffic for a potential viral event, associated with a formation of a plurality of wireless devices. The Crowd Risk Determinant requests location information associated with a plurality of wireless devices in a given area regarding a respective viral event. The Crowd Risk Determinant determines if the viral event also indicates a crowd safety risk, based on the shape and movement of observed wireless devices. The Alert Module triggers an alert of an impending crowd problem when crowd risk is above a given threshold. Historical databases are empirically determined and maintained in the Aggregate Location Dynometer (ALD) for use in viral event and crowd risk assessment. ’054 patent, abstract; ’158 patent, abstract. The Asserted Patents elaborate on the significance of wireless devices:

The Aggregate Location Dynometer (ALD) analyzes a bird’s-eye view of people formation, presuming those individuals possess respective handheld wireless devices that permit collection of current location information, whether that current location information be obtained from the wireless devices themselves, and/or from a network-based location server. ’054 patent, col. 2 ll. 57-63; ’158 patent, col. 2 ll. 61-67. The invention claims a system to track the geographic location of wireless devices and determine whether a particular geographic region represents a “crowd related public safety risk.” ’054 patent, col. 2 ll. 45–col. 3 ll. 26; ’158 patent, col. 2 ll. 49–col. 3 ll. 30. One such risk is a potential viral outbreak when the system detects, e.g., too many wireless devices in one geographical area. Id. More specifically, claim 1 of the ’054 patent states:

1. An aggregate location dynometer in a physical wireless network server, said aggregate location dynometer comprising:

a network monitor to monitor a wireless network for an indication of a viral event; a location aggregator to obtain a location of each of a plurality of wireless devices associated with said viral event; a crowd risk determinant, triggered by said network monitor, to determine a crowd risk based on an an alert module to initiate an alert message relating to a public safety risk determined from an analysis of said viral event. ’054 patent, col. 9 ll. 10-24. Claim 1 of the ’158 patent states:

1. An aggregate location dynometer in a physical wireless network server, said aggregate location dynometer comprising:

a network monitor to monitor a wireless network for an indication of a potential viral event indicated by an aggregation of current locations of a plurality of physical wireless devices associated with said potential viral event; and

a crowd risk determinant to assess said aggregation of said current locations of said plurality of physical wireless devices pertaining to said potential viral event triggered by said network monitor. ’158 patent, col. 9 ll. 18-29. B. Complaint Allegations Plaintiff alleges Apple’s Exposure Notification system (the “Accused Product”) directly infringes, literally and/or under the doctrine of equivalents, at least claim 1 of both the ’054 and ’158 patents. (Dkt. No. 1 ¶¶ 18, 25.) Plaintiff’s complaint attaches claim charts for each patent. (Dkt. No. 1-1 at 35-55.) C. The Accused Product Apple’s product is a “[contact] tracing system that utilizes Bluetooth wireless technology to determine proximity of COVID-19 positive individuals and assess the risk of infection to alert users of this risk.” (Dkt. No. 1-1 at 36, 49.) The system “has the capability to monitor a wireless network through Bluetooth beacon keys to verify and store COVID-19 positive case information, and once validated, send indication of the positive cases to users through a wireless network.” Id. Apple’s system can “determine exposure risk value based on risk parameters including but not limited to exposure proximity and duration.” Id. at 42, 53. Plaintiff offers the following illustrations of the Accused Product: 1 Public health authority User Verification server User iPhone Key server

RP E i = Request verification code 3 «< Sends verification Enters verification 4 code code to iPhone Verification code 5 exchange 6 Sends exposure key data 7 Receives certificate Validate certificate and metadata and metadata -----N 8 Permission Permission to : granted upload keys 1 . ~«----/ 9 Upload keys, token : certificate and metadata Validate, stored for 10 other users

Alice and Bob don't know each other, but Bob is positively diagnosed for COVID-19 a 12 have a lengthy conversation sitting a few and enters the test result in an app from feet apart his public health authority 13 i) = Ss TY | \ } 4 Jf | KS “~~ □□ (FG 2) 3 — 15 ~

Q 16 Their phones exchange beacons with With Bob's consent, his phone uploads random Bluetooth identifiers (which change 4 few days later... the last 14 days of keys for his Bluetooth frequently) beacons to the server

O (aN laws aw (a Zz 18 Apps can only get ? mare information via ———— user consert 19 Key om + => Key =14 day temporary store @ | Google Alice continues her day unaware she had Alice sees a notification on her phone 9 1 been near a potentially contagious person 7 ALERT you have recently come ~) 22 ( contact ttn sernacne mao hee 4 \ tested pomtree ter Cows 19 (7 Tap toe more infurmattion kg y 23 rs) □ Gy f Kw EL ty Alice's phone periodically downloads the Alice’s phone receives a notification with 95 Bluetooth beacon keys of everyone who has Sometime later... information about what to do next. tested positive for COVID-19 in her region. A match is found with Bob's random Bluetooth 2 6 identifiers. Agobonal information is provides Dy the health authority app 27 ee match is founc 2 g Anonymous identifier keys are Govwnioaded periodically «|

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ALD Social, LLC v. Apple, Inc., (N.D. Cal. 2023).

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