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14.
Shortly thereafter, on or about February 8,2001, Creative met with Apple
representatives, including Steve Jobs, to further explore ways in which the companies could
work together. Creative showed Apple several prototype portable digital media players that
showed the patented interface.
15.
Despite initially leading Creative to believe that Apple and Creative could explore
joint business opportunities, Apple abruptly indicated that there was not enmgh financial room
in the portable digital media player market for two companies, with margins stacked one on top
of the other, and therefore proposed that Creative license its technology to Apple. Apple further
proposed that Creative spin off its portable digital media player business into a separate company
and that Apple would then invest in that entity. Creative declined the offer.
16.
Then on October 23,200 1, Apple announced the introduction of its first iPod.
Apple, in its press release, stated that it “has applied its legendary expertise in human interface
engineering to make iPod the easiest to use digital device ever.” Apple further touted the iPod’s
capability to access a huge collection of music by selecting and clicking on playlists, artists or
songs.
17.
Apple and others acting on its behalf manufacture, sell for importation, import
and sell after importation portable digital media players, such as the iPod and iPod Nan0 that
infringe the Asserted Patent. Exhibit 4. As set forth in Apple’s 2005 FormlO-K [Annual Report]
filed with the SEC, “final assembly of substantially all of the Company’s portable products
including . .. iPods are performed by third-party vendors in China.” Exhibit 3. On information
and belief, in addition to operating www.apple.com and 1-800-My-Apple, Apple has 1 16 retail
stores in the United States that offer for sale or sell infringing portable digital media players. In
addition, on information and belief, Apple resellers offer for sale, sell for importation or sell after
importation infringing portable digital media players. Exhibit 3,
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