The outer rectangle with rounded corners is an unbroken line. It covers an outer rectangle with rounded corners with a display in it.
Rounded corners are functional and as your earlier quote on roundrects helpfully explained, bloody everywhere. They are a functional necessity, because no one wants to have to deal with sharp corners every day. Yellow surrounded by dark grey is not a functional necessity.
This patent was bloody retarded, it shouldn't have been granted, it shouldn't have been requested and it bloody well shouldn't be defended.