Frederick P. Fish 1855-1930

W.K. Richardson 1819-1951

VIA HAND DELIVERY

August 1,2006

The Honorable Marilyn R. Abbott Secretary U.S. International Trade Commission 500 E Street, S.W.

ATLANTA

A U S T I N

B O S T O N

DALLAS

DELAWARE

N E W YORK

SAN D I E G O

S I L I C O N VALLEY

T W I N C I T I E S

W A S H I N G T O N , D C

Facsimile 202 783-2331

Web Site www.fr.com

1 ,

2497 * .~...-----...-~~’.-..~~~o.g-.-~~~o~o~

Office of the Secretary

1nt.l Trade Commission

1425 K STREET, N.W. FISH & RICHARDSON P.C.

IITH FLOOR WASHINGTON, DC 20005

Telephone 202 783-5070

I Washington, D.C. 2043 *- .

Re: Certain Peripheral Devices and Components Thereof and Products Containing Same

Dear Secretary Abbott:

Enclosed for filing on behalf of Microsoft Corporation (“Microsoft”) are the following documents in support of Microsoft’s request that the Commission commence an investigation pursuant to the provisions of section 337 of the Tariff Act of 1930 as amended. Please note that Confidential Exhibits 10,15 and 21 and Confidential Appendix D to the Complaint contain confidential business information. Pursuant to the Commission’s Rules of Practice and Procedure, a request for confidential treatment of these documents is concurrently transmitted along with this filing. Accordingly, Microsoft submits the following:

1. an original and twelve (1 2) copies of Microsoft’s verified Complaint (original and one copy unbound, without tabs) (Rules 201.8(d), and 210.8(a));

2. an original and six (6) copies of the non-confidential version of the exhibits to the Complaint (original and one copy unbound, without tabs) (Rules 201.6(c), 210.4(f)(3)(i), and 21 0.8(a));

3. an original and six (6) copies of the confidential version of the exhibits to the Complaint (original and one copy unbound, without tabs) (Rules 201.6(c), 201.4(f)(3)(i), 210.8(a), and 201.8(d));

4. one (1) additional copy of the Complaint and accompanying exhibits for service upon the proposed respondent (Rules 210.4(f)(3)(i), 210.8(a), and 210.1 l(a));

5. a certified copy of United States Patent No. 6,460,094 (the ‘094 patent) (Rule 210.12(a)(9)(i));

6. a certified copy of United States Patent No. 6,795,949 (the ‘949 patent) (Rule 210.12(a)(9)(i));

F I S H ~r R I C H A R D S O N P.C.

The Honorable Marilyn R. Abbott August 1,2006 Page 2

7. a certified copy of the assignment of the ‘094 and ‘949 patents (Rule 210.12(a)(9)(ii));

8. three (3) copies of each license agreement under the ‘094 and ‘949 patents (Rule 210.12(~)(1));

9. an original and three (3) copies of the certified prosecution history of the ‘094 patent (Rule 210.12(~)(2));

10. an original and three (3) copies of the certified prosecution history of the ‘949 patent (Rule 2 10.12(~)(2));

1 1. four (4) copies of each reference document mentioned in the prosecution history of the ‘094 and ‘949 patents (Rule 2 10.12(~)(3));

12. A letter and certification pursuant to Commission Rules 210.6(b) and 210.5(d) requesting confidential treatment of Confidential Exhibits 10,15 and 21 and Appendix D.

Respectfully submitted,

Linda Liu Kordziel

Counsel for Microsoft Corporation

Enclosures

FISH & RICHARDSON P.C.

Frederick P. Fish 18554930

W.K. Richardson 1859-1951

A T L A N T A

A U S T I N

B O S T O N

DALLAS

D E L A W A R E

N E W YORK

S A N D I E G O

S I L I C O N VALLEY

T W I N C I T I E S

W A S H I N G T O N , D C

VIA HAND DELIVERY

August 1 , 2006

1425 K STREET, N.W. IITH FLOOR WASHINGTON, DC zoo05

Telephone 202 783-5070

Facsimile 202 783-2331

Web Site www.fr.com

The Honorable Marilyn R. Abbott Secretary U.S. International Trade Commission 500 E Street, S.W. Washington, D.C. 2043

Re: Certain Peripheral Devices and Components Thereof and Products Containing Same

Dear Secretary Abbott:

I am counsel for Microsoft Corporation (“Microsoft”). In accordance with 19 C.F.R. 9 20 1.6, Microsoft requests confidential treatment of the confidential business information contained in Confidential Exhibits 10, 15 and 2 1 and Confidential Appendix D included with Microsoft’s Complaint Under Section 337 of the Tariff Act, as amended.

Confidential treatment is sought for the information contained in Confidential Exhibit 10, which is Microsoft’s letter to Belkin Corporation, Confidential Exhibit 15, which is Microsoft’s list of licensees, Confidential Exhibit 21 , which is Microsoft’s declaration regarding domestic industry, and Confidential Appendix D, which contains copies of Microsoft’s license agreements.

The information described above qualifies as confidential business information pursuant to Rule 201.6(a)( 1) in that:

1. it is not available to the public;

2. unauthorized disclosure of such information could cause substantial harm to the competitive position of Microsoft; and

3. the disclosure of which could impair the Commission’s ability to obtain information necessary to perform its statutory functions.

Respecthlly submitted,

Linda Liu Kordziel

Counsel for Microsoft Corporation

UNITED STATES INTERNATIONAL TRADE COMMISSION WASHINGTON, D.C. 20436

In the Matter of

CERTAIN PERIPHERAL DEVICES AND COMPONENTS THEREOF AND PRODUCTS CONTAINING THE SAME

Investigation NO. 337-TA-

COMPLAINT OF MICROSOFT CORPORATION UNDER SECTION 337 OF THE TARIFF ACT OF 1930, AS AMENDED

COMPLAINANT: Microsoft Corporation 1 Microsoft Way Redmond, Washington 98052 Tel: (425) 882-8080 Fax: (425) 936-7329

COUNSEL FOR COMPLAINANT: Ruffin B. Cordell Linda Liu Kordziel Fish & Richardson P.C. 1425 K Street NW, Suite 1100 Washington, DC 20005 Tel: (202) 783-5070 Fax: (202) 783-2331

PROPOSED RESPONDENT: Belkin Corporation 501 W. Walnut Street Compton, California 90220 Tel: (310) 898-1100 Fax: (310) 898-1 11 1

TABLE OF CONTENTS

I . I1 . 111 . Iv . V .

VI . VI1 . VI11 . Ix . X . XI .

INTRODUCTION ................................................................................................... 1

COMPLAIN ANT .................................................................................................... 2

PROPOSED RESPONDENT .................................................................................. 3

THE TECHNOLOGY AND PRODUCTS AT ISSUE ........................................... 4

THE MICROSOFT PATENTS ............................................................................... 5

A . The ‘094 Patent ............................................................................................ 5

1 . Identification of the Patent and Ownership by Microsoft ................ 5

2 . 3 . Foreign Counterparts to the ‘094 Patent .......................................... 6

The ‘949 Patent ............................................................................................ 6

1 . Identification of the Patent and Ownership by Microsoft ................ 6

2 . Non-Technical Description of the Patented Invention ..................... 7

3 . Foreign Counterparts to the ‘949 Patent .......................................... 8

UNFAIR ACTS OF PROPOSED RESPONDENT ................................................. 8

SPECIFIC INSTANCES OF UNFAIR IMPORTATION AND SALE .................. 9

LICENSEES .......................................................................................................... 10

DOMESTIC INDUSTRY ...................................................................................... 10

RELATED LITIGATION ..................................................................................... 12

REQUESTED RELIEF .......................................................................................... 12

Non-Technical Description of the Patented Invention ..................... 6

B .

1

LIST OF EXHIBITS AND APPENDICES

Exhibit No.

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

Description

U.S. Patent No. 6,460,094 (the ‘094 Patent)

US. Patent No. 6,795,949 (the ‘949 Patent)

Assignment of the ‘094 and ‘949 Patents to Microsoft

Microsoft’s Quarterly Report

Microsoft’s Annual Report

Hoover’s Report for Belkin Corporation

Photographs of Belkin’s Accused Product and Computer Interfaces

User Manual for Belkin’s Accused Product

Holtek Datasheet

Confidential: Microsoft’s Letter to Belkin

Claim Chart Demonstrating Belkin’s Inhngement of the ‘094 Patent

Claim Chart Demonstrating Belkin’s Infringement of the ‘949 Patent

Offer for Sale of Belkin’s Accused Product

Photograph of Product Packaging and Copy of Packing Slip and Invoice

Confidential: Licensees to the Microsoft Patents

Photographs of Microsoft’s Basic Optical Mouse and Computer Interfaces

User Manual for Microsoft’s Basic Optical Mouse

Cypress Datasheet

Claim Chart Demonstrating Microsoft’s Practice of the ‘094 Patent

Claim Chart Demonstrating Microsoft’s Practice of the ‘949 Patent

Confidential: Declaration Regarding Domestic Industry

.. 11

Appendix No. Description

A

B

C

Four copies of the prosecution history of the ‘094 Patent

Four copies of the prosecution history of the ‘949 Patent

Four copies of each reference mentioned in the prosecution history of the ‘094

and ‘949 Patents

Confidential: Three copies of Microsoft’s License Agreements D

... 111

I. INTRODUCTION

1.1 Complainant Microsoft Corporation (“Microsoft” or “Complainant”) requests that

the United States International Trade Commission commence an investigation pursuant to

Section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 5 1337 (“Section 337”), to remedy

the unlawful importation into the United States, sale for importation into the United States,

and/or sale within the United States after importation by the owner, importer, or consignee, of

certain peripheral devices, components thereof, and products containing the same (collectively

referred to as “accused products”) that infringe valid and enforceable United States patents

owned by Microsoft.

1.2 On information and belief, the proposed respondent, Belkin Corporation

(“Belkin” or “Respondent”), has engaged in unfair acts in violation of Section 337 through and

in connection with the unlicensed importation into the United States, sale for importation into the

United States, and/or sale within the United States after importation of accused products that

infringe one or more claims of United States Patent Nos. 6,460,094 (“the ‘094 Patent”) and

6,795,949 (“the ‘949 Patent”) (collectively, the “Microsoft Patents”). In addition, certain claims

at issue are method claims and infringed when an accused product is used to practice the claimed

inventions. Thus, infhngement allegations contained in this Complaint include direct

infringement, as well as contributory infringement and induced infringement.

1.3 Certified copies of the ‘094 and ‘949 Patents accompany this Complaint as

Exhibits 1 and 2. Microsoft owns by assignment the entire right, title, and interest in and to

these patents. A certified copy of the recorded assignment accompanies this Complaint as

Exhibit 3.

1

1.4 As required by Section 337(a)(2) and defined by Section 337(a)(3), an industry in

the United States exists relating to products covered by the ‘094 and ‘949 Patents.

1.5 Microsoft seeks a permanent exclusion order, pursuant to Section 337(d),

excluding from entry into the United States all of Respondent’s accused products that infnnge

one or more claims of the ‘094 and ‘949 Patents. Microsoft also seeks a permanent cease and

desist order, pursuant to Section 337(f), directing Respondent to cease and desist from the

importation, marketing, advertising, demonstrating, warehousing inventory for distribution, sale

and use of such accused products in the United States.

11. COMPLAINANT

2.1 Microsoft is a Washington corporation having a principal place of business at One

Microsoft Way, Redmond, Washington 98052. Microsoft is a global technology company that

designs, develops, manufactures and supports a wide range of software and hardware products

for a variety of different applications. Additional information concerning Microsoft can be

obtained from Microsoft’s most recent Quarterly and Annual Reports, which are available via its

web site, www.microsoft.com, and accompany this Complaint as Exhibits 4 and 5, respectively.

2.2 For more than twenty years, Microsoft has designed, developed, manufactured

and supported a wide range of hardware products, including peripheral devices such as computer

mice and keyboards. In particular, Microsoft has developed technology that allows a peripheral

device to be used with both universal serial bus (USB) and PS2 interfaces and thus,

accommodate connection to computers with either type of interface. Microsoft refers to this

technology internally as “U2 technology.” As a result of this innovative technology,

Microsoft’s peripheral devices have earned remarkable success in the marketplace.

2

2.3 Microsoft’s computer mice products with U2 technology include the Microsoft

Basic Optical Mouse, Microsoft Optical Mouse Blue, Microsoft Comfort Optical Mouse 3000,

Microsoft Intellimouse, Microsoft Intellimouse Explorer, Microsoft Intellimouse Optical,

Microsoft Optical Mouse, Microsoft Wireless Optical Mouse, Microsoft Wireless Optical Mouse

5000, Microsoft Wireless Optical Mouse Standard, Microsoft Wheel Mouse Optical, Microsoft

Wireless Intellimouse Explorer, Microsoft Trackball Explorer, and Microsoft Trackball Optical.

2.4 Microsoft’s keyboard products with U2 technology include the Microsoft Basic

Wireless Optical Desktop, Microsoft Digital Media Pro Keyboard, Microsoft Natural Keyboard

Elite, Microsoft Business Hardware Pack, Microsoft Wireless Desktop, Microsoft Wireless Laser

Desktop 6000, Microsoft Wireless Optical Desktop Comfort Edition, Microsoft Standard

Wireless Optical Desktop, Microsoft Wireless Optical Desktop, Microsoft Wireless Optical

Desktop 5000, Microsoft Wireless Optical Desktop Elite and Microsoft Wireless Optical

Desktop Pro.

111. PROPOSED RESPONDENT

3.1 On information and belief, Belkin is a Delaware corporation having a principal

place of business at 501 W. Walnut Street, Compton, California 90220. According to its web

site, www.belkin.com, Belkin offers a broad selection of peripheral devices. A copy of the

Hoover’s Report for Belkin accompanies this Complaint as Exhibit 6.

3.2 The success of Microsoft’s innovative peripheral products has not gone unnoticed

by others in the industry. In particular, Belkin offers several peripheral devices that are capable

of being used with both USB and PS2 interfaces, including but not limited to the Combo Mouse

3

USB and PS/2 (F8E8 12), Optical Mouse USB and PS/2 (F8E8 14), Optical Mouse USB and PS/2

(F8E850) and MiniScroller Optical Mouse (F8E882).

3.3 On information and belief, Belkin, or others on its behalf, manufactures the

accused products in China, and then imports them into the United States, sells them for

importation into the United States, andor sells them after importation into the United States.

IV. THE TECHNOLOGY AND PRODUCTS AT ISSUE

4.1 As noted above, the products involved in this investigation are certain peripheral

devices, components thereof, and products containing the same. A peripheral device is a device

typically connected to or in communication with a computer. Peripheral devices include but are

not limited to keyboards and point-and-click devices (commonly referred to as computer mice).

When a peripheral device is connected to a computer, the computer communicates with the

peripheral device through one of a number of interfaces. Such interfaces include but are not

limited to a universal serial bus (USB) interface and PS2 interface.

4.2 The USB and PS2 interfaces have different hardware and software requirements

that must be met so that the peripheral device can communicate with the computer. For example,

the USB interface uses a differential data signal, whereas the PS2 interface uses a single ended

data signal and an accompanying clock signal. Since the USB and PS2 interfaces have different

hardware and software requirements, peripheral device manufacturers had to design, produce,

and support two separate peripheral devices: one with a USB interface, and one with a PS2

interface.

4.3 The innovative technology created by Microsoft and set forth in the Microsoft

Patents allows the same peripheral device to communicate through USB and PS2 interfaces and

4

thus, be able to accommodate connection to computers with either type of interface. The

peripheral device is able to determine which type of interface it is connected to, and configure

itself accordingly. As a result, the manufacturer of such peripheral devices needs to support only

one product, rather than two separate products. Another significant benefit from this technology

is the opportunity to sell a single product that meets two markets (e.g., USB and PS2) in one

retail shelf space position. For an even mix of USB and PS2 users, this generates approximately

twice the revenue and profit for both the retailer and the manufacturer at a small incremental

manufacturing cost.

V. THE MICROSOFT PATENTS

A. The ‘094 Patent

1. Identification of the Patent and Ownership by Microsoft

U.S. Patent No. 6,460,094 (“the ‘094 Patent”) is entitled “Peripheral Device

Configured to Detect the Type of Interface to which it is Connected and Configuring Itself

Accordingly” and issued on October 1,2002. The ‘094 Patent issued from U.S. Patent

Application Serial No. 09/112,171, filed July 8, 1998. The inventors of the ‘094 Patent are Mark

T. Hanson, Lord Nigel Featherston, Nathan C. Sherman, Victor P. Drake, Keith Mullins and

David L. Holo.

5.1

5.2 Microsoft is the owner, by valid assignment, of the entire right, title and interest

in and to the ‘094 Patent. The ‘094 Patent is valid, enforceable, and is currently in full force and

effect.

5.3 Pursuant to Rule 210.12(c) of the Commission’s Rules of Practice and Procedure,

this Complaint is accompanied by Appendices A and C containing: A) a certified copy and

5

three additional copies of the prosecution history of the ‘094 Patent; and C) four copies of each

reference mentioned in that prosecution history.

2.

The ‘094 Patent relates to a method and apparatus by which a peripheral device

determines the type of interface to which it is connected and configures itself to communicate

with the computer according to a protocol corresponding to the detected interface. For example,

the peripheral device determines whether it is connected to a USB interface or a PS2 interface

and configures itself to communicate with the computer using protocols corresponding to the

USB interface or PS2 interface. The ‘094 Patent also relates to a computer readable medium

(which includes hard disks, removable optical disks, removable magnetic disks, flash memory

cards, random access memory, read only memory, and the like) with stored instructions that

cause the peripheral device to detect the interface to which it is connected and to communicate

with the computer according to a protocol corresponding to the detected interface.

Non-Technical Description of the Patented Invention’

5.4

3.

There has never been any foreign patent or foreign patent application

Foreign Counterparts to the ‘094 Patent

5.5

corresponding to the ‘094 Patent.

B. The ‘949 Patent

1.

U.S. Patent No. 6,795,949 (“the ‘949 Patent”) is entitled “Method and Apparatus

IdentificaLan of the Patent and Ownership by Microsoft

5.6

for Detecting the Type of Interface to which a Peripheral Device is Connected” and issued on

September 21,2004. The ‘949 Patent issued from U.S. Patent Application Serial No.

The text in this section (i.e. “Non-Technical Description of the Patented Invention”) does not, and is not intended to, construe either the specification or claims of the patent.

6

10/260,188, filed September 30,2002, which is a continuation of Application Serial No.

09/112,171, filed on July 8, 1998, now the ‘094 Patent. The inventors of the ‘949 Patent are

Mark T. Hanson, Lord Nigel Featherston, Nathan C. Sherman, Victor P. Drake, Keith Mullins

and David L. Holo.

5.7 Microsoft is the owner, by valid assignment, of the entire right, title and interest

in and to the ‘949 Patent. The ‘949 Patent is valid, enforceable, and is currently in full force and

effect.

5.8 Pursuant to Rule 210.12(c) of the Commission’s Rules of Practice and Procedure,

this Complaint is accompanied by Appendices B and C containing: B) a certified copy and

three additional copies of the prosecution history of the ‘949 Patent; and C) four copies of each

reference mentioned in that prosecution history.

2.

As noted above, the ‘949 Patent is a continuation of the ‘094 Patent. Similarly,

the ‘949 Patent relates to a method and apparatus by which a peripheral device determines the

type of interface to which it is connected and configures itself to communicate with the computer

according to a protocol corresponding to the detected interface. For example, the peripheral

device determines whether it is connected to a USB interface or a PS2 interface and configures

itself to communicate with the computer using protocols corresponding to the USB interface or

PS2 interface. The ‘949 Patent requires the use of only one of two conductors to detect the

interface. The ‘949 Patent also relates to a computer readable medium (which includes hard

disks, removable optical disks, removable magnetic disks, flash memory cards, random access

Non-Technical Description of the Patented Invention2

5.9

The text in this section (i.e. “Non-Technical Description of the Patented Invention”) does not, and is not intended to, construe either the specification or claims of the patent.

7

memory, read only memory, and the like) with stored instructions that cause the peripheral

device to detect the interface to which it is connected and to communicate with the computer

according to a protocol corresponding to the detected interface.

3.

There has never been any foreign patent or foreign patent application

Foreign Counterparts to the ‘949 Patent

5.10

corresponding to the ‘949 Patent.

VI. UNFAIR ACTS OF PROPOSED RESPONDENT

6.1 Upon information and belief, Belkin’s accused products infringe at least claims 1 ,

2,27,33,34 and 59 of the ‘094 Patent and claims 1 and 3 of the ‘949 Patent. The accused

products are manufactured in China. These same products are then being imported into the

United States, sold for importation into the United States, and/or sold after importation into the

United States. Belkin offers several peripheral devices that are capable of being used with both

USB and PS2 interfaces, including but not limited to the Combo Mouse USB and PS/2

(F8E812), Optical Mouse USB and PSI2 (F8E814), Optical Mouse USB and PS/2 (F8E850) and

MiniScroller Optical Mouse (F8E882). Further discovery likely will reveal additional infringing

products. Photographs of the Belkin Optical Mouse USB and PSI2 (F8E850) and computer

interfaces are attached to this Complaint as Exhibit 7. Copies of the user manual for the Belkin

Optical Mouse USB and PS/2 (F8E850) and Holtek datasheet are attached to this Complaint as

Exhibits 8 and 9.

6.2 The infringement allegations contained in this Complaint include direct

infringement as well as contributory infringement and induced infringement. Certain claims at

issue are method claims and infringed when an accused product is used to practice the claimed

8

inventions. On information and belief, the accused products are sold, offered for sale andor

imported into the United States by Belkin with the knowledge that they are especially made for

practicing inventions covered by certain claims of the Microsoft Patents and are not staple

articles or components of commerce suitable for substantial non-infringing uses. On information

and belief, Belkin also knowingly induces others in the United States to perform methods

covered by certain claims of the Microsoft Patents.

6.3 Belkin had been given notice of the asserted infringement, by, among other

things, a letter sent from Microsoft to Belkin on April 17,2004, as well as Microsoft’s service of

this Complaint, which at the time of filing, is being served on Belkin. A copy of the letter sent to

Belkin on April 17,2004 is attached as Confidential Exhibit 10.

6.4 Claim charts demonstrating how representative claim 1 of the ‘094 Patent and

claim 1 of the ‘949 Patent read onto Belkin’s Optical Mouse USB and PS/2 (F8E850) are

attached as Exhibits 11 and 12.

VII. SPECIFIC INSTANCES OF UNFAIR IMPORTATION AND SALE

7.1 On information and belief, Belkin or others on its behalf, manufactures the

accused products in China and then imports them into the United States, sells them for

importation into the United States and/or sells them after importation into the United States.

Belkin offers its products for sale in the United States and worldwide. Attached as Exhibit 13 is

an offer for sale of Belkin’s accused products over the Internet as received within the United

States.

9

7.2 On or about November 28,2005, Microsoft purchased a Belkin Optical Mouse

USB and PS/2 (F8E850) in the United States. Labels on the device and product packaging

indicate the product was manufactured in China. Attached as Exhibit 14 are a photograph of the

product packaging and a copy of the packing slip and invoice for the computer mouse purchased

by Microsoft, reflecting the United States purchase of a Belkin peripheral device. Further

discovery likely will reveal additional specific acts of Belkin’s importation, sale for importation,

and/or sale after importation of the accused products.

7.3 Belkin’s accused products are believed to fall within at least the following

classifications of the Harmonized Tariff Schedules of the United States: Heading No. 8471

(“Automatic data processing machines and units thereof ’), et seq., for instance Subheading No.

8471.49 (“Input or output units, entering with the rest of a system, whether or not containing

storage units in the same housing”); Subheading No. 847 1.60 (“Input or output units, whether or

not containing storage units in the same housing”). These classifications are intended for

illustration only and are not intended to be restrictive of the accused products.

VIII. LICENSEES

8.1 Microsoft has licensed the ‘094 and ‘949 Patents to the licensees identified in

Confidential Exhibit 15. Pursuant to Commission Rule 210.12, three copies of each license

agreement accompany this Complaint as Confidential Appendix D.

IX. DOMESTIC INDUSTRY

9.1 As required by Section 337(a)(2) and defined by Section 337(a)(3), an industry in

the United States exists in connection with the ‘094 and ‘949 Patents. Microsoft’s peripheral

products, including but not limited to the Microsoft Basic Optical Mouse, are covered by the

10

‘094 and ‘949 Patents. Photographs of the Microsoft Basic Optical Mouse and computer

interfaces are attached to this Complaint as Exhibit 15. Copies of the user manual for the

Microsoft Basic Optical Mouse and Cypress datasheet are attached to this Complaint as Exhibits

17 and 18. Claim charts applying representative claim 1 of the ‘094 Patent and claim 1 of the

‘949 Patent to the Microsoft Basic Optical Mouse are attached as Exhibits 19 and 20.

9.2 Although Microsoft’s peripheral products are manufactured outside the United

States, Microsoft conducts significant domestic industry activities in the United States relating to

products practicing the ‘094 and ‘949 Patents. These activities include Microsoft’s significant

investment in plant and equipment, significant employment of labor and capital, and substantial

investment in the exploitation of the ‘094 and ‘949 Patents.

9.3 Microsoft has made and continues to make significant investment in plant and

equipment in the United States dedicated to the research, development, engineering, and design

of peripheral products covered by the ‘094 and ‘949 Patents. The plant and equipment used in

connection with Microsoft’s peripheral products are located in Redmond, Washington and Fort

Collins, Colorado. Microsoft’s investment in plant and equipment is set forth in Confidential

Exhibit 21.

9.4 Microsoft has employed and continues to employ a significant number of

employees in its Redmond and Fort Collins facilities that devote substantial man-hours toward

the research, development, engineering, and design of peripheral products covered by the ‘094

and ‘949 Patents. Confidential Exhibit 21 sets forth a portion of this labor investment.

9.5 Microsoft has employed and continues to employ significant capital in its

Redmond and Fort Collins facilities toward the research, development, engineering, and design

11

of peripheral products covered by the ‘094 and ‘949 Patents. Confidential Exhibit 21 sets forth

a portion of the capital Microsoft expended towards these activities.

9.6 Microsoft has made and continues to make substantial investment in the

exploitation of its rights in the ‘094 and ‘949 Patents. Microsoft has invested and continues to

invest in the research and development of peripheral products covered by the ‘094 and ‘949

Patents. Confidential Exhibit 21 sets forth a portion of Microsoft’s significant investment

associated with the exploitation of Microsoft’s rights in the ‘094 and ‘949 Patents.

X. RELATED LITIGATION

10.1 Respondent’s unfair acts regarding the infringement of the Microsoft Patents are

not, and have not, been the subject of any foreign or domestic court or agency litigation.

XI. REQUESTED RELIEF

1 1.1 WHEREFORE, by reason of the foregoing, Complainant requests that the United

States International Trade Commission:

(a) Institute an immediate investigation, pursuant to Section 337 of the Tariff Act of

1930, as amended, 19 U.S.C. 0 1337, with respect to violations of Section 337 based on

Respondent’s unlawful importation into the United States, sale for importation into the United

States, and/or sale within the United States after importation of certain peripheral devices,

components thereof, and products containing the same, that inhnge one or more claims of

United States Patent Nos. 6,460,094 and 6,795,949;

(b) Schedule and conduct a hearing on the unlawhl acts and, following the hearing,

determine that there has been a violation of Section 337;

12

(c) Issue a permanent exclusion order, pursuant to Section 337(d) of the Tariff Act of

1930, as amended, excluding from entry into the United States all of Respondent’s peripheral

devices, components thereof, and products containing the same, that infringe one or more claims

of United States Patent Nos. 6,460,094 and 6,795,949;

(d) Issue a permanent cease and desist order, pursuant to Section 337(f) of the Tariff

Act of 1930, as amended, directing Respondent to cease and desist from the importation,

marketing, advertising, demonstrating, warehousing inventory for distribution, sale and use of

peripheral devices, components thereof, or products containing the same, that infringe one or

more claims of United States Patent Nos. 6,460,094 and 6,795,949; and

(e ) Grant such other and further relief as the Commission deems just and proper

based on the facts determined by the investigation and the authority of the Commission.

Respectfully submitted,

FISH & RICHARDSON P.C.

Dated: August 1 , 2 0 0 6 U Ruffin B. Cordell

Linda Liu Kordziel Fish & Richardson P.C. 1425 K Street NW, Suite 1100 Washington, D.C. 20005 Tel: (202) 783-5070

Counsel for Complainant Microsoft Corporation

13

VERIFICATION OF COMPLAINT

I, Eric Loh, declare, in accordance with 19 C.F.R. 50 210.4 and 210.12(a), under penalty

of perjury, that the following statements are true:

1. I am a Business Manager of Complainant Microsoft Corporation, and I am duly

authorized to sign this Complaint on behalf of Complainant;

2. I have read foregoing Complaint;

3. To the best of my knowledge, information, and belief, based upon reasonable

inquiry, the foregoing Complaint is well-founded in fact and is warranted by existing law or by a

non-frivolous argument for the extension, modification, or reversal of existing law or the

establishment of new law;

4. The allegations or other factual contentions have evidentiary support or are likely

to have evidentiary support after a reasonable opportunity for further investigation or discovery;

and

5. The foregoing Complaint is not being filed for any improper purpose, such as to

harass or to cause unnecessary delay or needless increase in the cost of litigation.

Executed this 27 day of July, 2006.

14