Rally AG LLC v. Apple, Inc.

CourtDistrict Court, D. Delaware
DecidedOctober 27, 2025
Docket1:23-cv-01106
StatusUnknown

This text of Rally AG LLC v. Apple, Inc. (Rally AG LLC v. Apple, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rally AG LLC v. Apple, Inc., (D. Del. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

RALLY AG LLC, Plaintiff, CIVIL ACTION v. NO. 23-1106 APPLE, INC., Defendant.

OPINION Slomsky, J. October 27, 2025

TABLE OF CONTENTS I. INTRODUCTION ................................................................................................................. 1 II. BACKGROUND .................................................................................................................... 1 A. United States Patent Number 11,361,107 Covered Invention ............................................ 1 B. Asserted Claim .................................................................................................................... 4 III. STANDARD OF REVIEW ................................................................................................... 5 A. Claim Construction ............................................................................................................. 5 B. Indefiniteness Standard ....................................................................................................... 8 IV. ANALYSIS ............................................................................................................................. 9 A. Relevant Person of Ordinary Skill in the Art ...................................................................... 9 B. Claim Construction of the Four Disputed Terms .............................................................. 10 1. “cloaked end user address,” “cloaked relying party email address,” and “cloaked . . . address” ................................................................................................................................. 10 2. “relying party” ............................................................................................................ 14 i. Claim Construction ................................................................................................... 14 ii. Indefiniteness ............................................................................................................ 15 V. CONCLUSION .................................................................................................................... 18 I. INTRODUCTION On October 5, 2023, Plaintiff Rally AG LLC (“Rally”) filed a Complaint against Defendant Apple, Inc. (“Apple”), alleging Apple is infringing United States Patent No. 11,361,107 (“‘107 Patent”), which is owned by Rally.1 (Doc. No. 1.) Specifically, Rally alleges Apple’s “Hide-My- Email” product infringes on the email cloaking system covered by the ‘107 Patent. (Doc. No. 35.)

An email cloaking system, as described in the ‘107 Patent, is a system that allows parties to communicate anonymously through email. (See id.) Presently, the parties seek construction of four (4) terms in the ‘107 Patent claim pursuant to Markman v. Westview Instruments, Inc., 517 U.S. 370 (1996).2 On June 6, 2025, the parties filed a Joint Claim Construction Chart. (Doc. No. 87.) On August 22, 2025, the parties filed a Joint Claim Construction Brief. (Doc. No. 100.) On October 8, 2025, the Court held a Markman hearing on the disputed terms, at which Apple presented expert testimony and both parties argued in favor of their respective positions. The four (4) disputed terms are now ripe for construction. II. BACKGROUND A. United States Patent Number 11,361,107 Covered Invention

The Court previously summarized the background of the ‘107 Patent as follows: Plaintiff is the owner of the ‘107 Patent, titled “Privacy Friendly Communication by Operation of Cloaked/Decloaked Email,” which was issued by the United States Patent and Trademark Office on June 14, 2022. (SAC at ¶¶ 47-48.) The ‘107 Patent was originally assigned to autoGraph Inc. (“Autograph”) by its inventor, Brian

1 The Second Amended Complaint (Doc. No. 35 or “SAC”) is the operative Complaint in this case.

2 In Markman v. Westview Instruments, Inc., the United States Supreme Court held that “the construction of a patent, including terms of art within its claim, is exclusively within the province of the court.” 517 U.S. 370, 372 (1996). Roundtree.3 (Id. at ¶¶ 40, 48.) Autograph was founded by Mr. Roundtree in early 2010 to “solve privacy issues around advertising while improving advertising performance.” (Id. at ¶ 40.) To solve these issues, Autograph “developed a series of products (and obtained related patents) around the general problem of user- controlled access to personal data and [personally identifiable information] without losing control of the data itself.” (Id. at ¶ 42.) In other words, Autograph’s products focused on giving users a way to allow third parties to use their personally identifiable information without giving these third parties direct access to such information. (Id.) In connection with these products, Autograph developed an “email cloaking technology,” which is the subject of the ‘107 Patent. (Id. at ¶¶ 45, 50.)

The ‘107 Patent is aimed at protecting the privacy of individuals communicating with third parties on the Internet. (Id. at ¶ 51.) In simple terms, the ‘107 Patent describes an “ID cloaking system” that allows two parties communicating through email to do so without revealing their identities. The ID cloaking system accomplishes this process by assigning each party an anonymous email address, intercepting each email sent between the parties, and replacing the “To” and “From” fields in the emails with each party’s anonymous email address before forwarding the email to the appropriate party. By assigning the parties anonymous email addresses, the ‘107 Patent aspires to solve the issue of data breaches, which is a common problem that plagues traditional email communications, specifically between consumers and merchants. (See id. at ¶ 34.) As the SAC notes, “it is rarely an option for a consumer . . . not to give out her personal information such as email information . . . and still conduct most any transaction in today’s information centric economy.” (Id. at ¶ 35.) But by giving out their email addresses, these consumers put their private emails at risk of mass exposure through data breaches. And because “[m]odern consumers frequently have become the victims of data breaches,” most consumers today are bombarded with “a steady stream of emails infected with malicious code (mass-mailing worms and viruses), unwanted product advertisements (spam), and requests for personal information from criminals masquerading as legitimate entities to enable the commission of fraudulent activity (phishing).” (Id. at ¶¶ 33-34.)

More specifically, the ‘107 Patent’s ID cloaking system operates as follows. The ‘107 Patent refers to the party initiating the anonymous email communications, typically the consumer, as the “end user,” and the party receiving the anonymous email communications, typically the merchant, as the “relying party.” (See id., Exhibit A [hereinafter “‘107 Patent”].) As described in the SAC, an end user wishing to anonymously communicate with third parties, such as merchants as the relying party, can download a “web plugin browser extension” or “mobile device application” that is “configured to interact with the ID cloaking systems.” (‘107

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