Case: 1:16-cv-05222 Document #: 1-4 Filed: 05/13/16 Page 1 of 8 PageID #:60
`Case: l:l6—cv—O5222 Document #2 1-4 Filed: 05/13/16 Page 1 of 8 Page|D #:60
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`EXHIBIT D
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`EXHIBIT D
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`Case: l:l6—cv—O5222 Document #2 1-4 Filed: 05/13/16 Page 1 of 8 Page|D #:60
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`EXHIBIT D
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`EXHIBIT D
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`Case: 1:16-cv-05222 Document #: 1-4 Filed: 05/13/16 Page 2 of 8 PageID #:61
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`DECLARATION OF MATS HYLIN
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`I, Mats Hylin, declare as follows:
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`1.
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`My name is Mats Hylin. I am a resident of Sweden and am over the age of
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`eighteen and competent to make this Declaration. This Declaration is based on my
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`personal knowledge and, if called upon to do so, I will testify that the facts stated herein
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`are true and accurate.
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`2.
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`I am one of the named inventors of United States Patent Nos. RE37,470
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`and US 7,382,334.
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`3.
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`I received a Bachelor of Business Administration from University of
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`Stockholm, Sweden in 1981.
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`4.
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`From 1982 to 1990 I worked as Marketing Director at Svensk Filmindustri,
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`the largest Cinema owner and Film producer in Scandinavia. Between 1990 and 1994 I
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`worked as CEO at Essilor Scandinavia, the largest Ophthalmic company in the world.
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`Between 1994 and 1995, I worked as CEO for ARE Bolagen, the largest Out-of-Home
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`advertising company in Scandinavia. 1996 I founded and worked as CEO at DHJ Media,
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`the first Digital-Out-Of-Home advertising company in the world. Since 2003, I have
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`worked with venture capital, with a focus on transforming analog media to digital media.
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`More particularly, in 2003 I founded Lokalmedia, a weekly free newspaper in Sweden
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`with over 500,000 copies distributed every week. In 2006, I founded PlusTV, a digital
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`terrestrial TV company operated in Finland, Italy, Spain and Portugal.
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`Case: 1:16-cv-05222 Document #: 1-4 Filed: 05/13/16 Page 3 of 8 PageID #:62
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`5.
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`In 2012, I was appointed as a member of the Board of Directors of
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`Hallpressen, a media company in Sweden. Between 1988 and 2004, I was Chairman of
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`the Board for the Non Smoking Generation Foundation, a non-profit foundation working
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`to promote an anti–tobacco message, through the use of advertisements.
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`6. While working for Svensk Filmindustri one of my main responsibilities was
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`to transform traditional theaters—ones that had only a single screen—into what is now
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`considered a modern theater, a multiplex with ten or more screens. I learned that one of
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`the most important areas to create higher margins was distribution. The analog
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`distribution of movies as well as the advertising that was shown before the movie or in
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`the lobby, were very costly. At a very early stage, I understood both the capabilities, as
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`well as the possibilities, that would result from digital distribution. Even though in 1986
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`digital projector technology was early and not good enough for blockbuster movies, I also
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`realized that such an improvement was something that would happen in the near future.
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`Svensk Filmindustri worked with all the major Hollywood studios including Fox,
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`Warner, Universal and Paramount and I learned that the cost for a single 35 mm copy of a
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`film was huge and that this was by far the highest cost of movie distribution. I learned
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`that new distribution alternatives were necessary for the industry’s future, and that such
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`alternatives came with built-in financial incentives.
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`7.
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`My employment at Essilor included work in the European development
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`group. I was responsible for the European company-wide transformation from analog
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`ophthalmic orders to digitally created and distributed orders. I learned that the company
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`could increase margins and thus save a lot of money by doing so. As part of this
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`Case: 1:16-cv-05222 Document #: 1-4 Filed: 05/13/16 Page 4 of 8 PageID #:63
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`transformation I also learned how digital distribution software is built, maintained and
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`works—in great detail. I receive experience from different areas including digital
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`processes including building systems and hardware integration. The main purpose of each
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`of these changes was always higher efficiency.
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`8. While working for ARE Bolagen in 1994 as CEO I was responsible for
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`Out-Of-Home advertising all over Scandinavia. We sold over 50,000 Out-Of-Home
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`advertising units including posters, billboards, transit (including the Stockholm Subway)
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`and national bus advertising. I was responsible for over 1,500 employees, many of them
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`working with production materials by physically pasting advertising paper copy on
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`billboards. Once again, it became clear to me, through my experience, that the traditional
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`Out-Of-Home industry most evolve. The demands from advertisers were clear; they
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`wanted more flexibility and speed and they wanted the possibility of changing the
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`message and not having the same advertisement during the whole period. I understood
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`that huge advantages could be realized if new alternatives were implemented. In addition,
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`the limitation of the advertisement inventory was also clear to me, I realized that it was a
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`huge problem that inventory could only be sold one time per period. The most attractive
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`billboards were always sold out and there were no mechanisms to increase the revenue
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`from these other than to raise the price.
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`9.
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`I founded DHJ Media in 1996, the first Digital Out-Of-Home company in
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`the world. When the company was founded I used my experience, knowledge, and the
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`information that I had learned from prior employment positions to conceive of, and
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`patent, the system and method entitled “Digital Information System.” With my media
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`Case: 1:16-cv-05222 Document #: 1-4 Filed: 05/13/16 Page 5 of 8 PageID #:64
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`background and experience from the advertising industry we built the first Digital Out-
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`Of-Home system, which included on-line order functionality, efficient network solution
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`through the internet, or any other network, the ability to drive a high quality player in
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`order to obtain a high quality picture, the ability to handle curved walls (as we did in the
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`London Underground) and it provided for the dynamic update of content. At the time, it
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`was a truly innovative combination of displays, distributed and networked computer
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`equipment to manage the displays, and software to operate the system.
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`10.
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` In addition to the system, I also defined the way to sell the new media. I
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`did so by educating the market with respect to the advantages of and how to use the new
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`media that we had implemented. This was facilitated because one of our first
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`implementations of the new system and media was in the London Underground—a very
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`public display for our company. The London Underground became the single largest
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`digitally integrated advertising network that used our Out-Of-Home system in the world.
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`We also installed and operated similar systems in Arlanda Airport (Stockholm), London
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`City Airport (London) and the Arlanda Express High Speed Rail Station (Stockholm).
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`Our company, DHJ Media, also introduced the cinema industry to the new media through
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`the use of our systems. We were appointed by the largest cinema company to develop
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`systems for cinema advertisements.
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`11. DHJ Media transformed Digital Out-Of-Home advertising. It did so by
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`simultaneously addressing and solving four key problems, the inefficient distribution of
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`advertising copy, the long lead times that were required to implement Out-Of-Home
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`advertising, the inflexibility of a printed medium and the limited inventory. The system
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`Case: 1:16-cv-05222 Document #: 1-4 Filed: 05/13/16 Page 6 of 8 PageID #:65
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`we invented was unlike anything that existed at the time and it improved the function of
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`digital signage technology in significant ways. Our system included many individual
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`components that each incorporated innovative features. These components were
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`innovative, both individually, and when associated together in our system. Our system
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`solved key problems that existed at the time, and in doing so, improved the operation of
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`digital signage by introducing important features that resulted in practical improvements.
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`12. While working with DHJ Media, I founded DHJ Media Inc. in 2000, a U.S.
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`based company with an office in New York city. We worked together with many U.S.
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`partners, including Viacom (CBS Outdoor, which is now known as Outfront) and IMAX,
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`the Toronto based cinema technology company. IMAX was supplying DHJ with high
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`quality digital projectors for use in the London Underground and we also signed a
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`marketing cooperation for the U.S. market. The ambition was to implement DHJ’s unique
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`digital Out Of Home system and software at both IMAX theatres and in regular movie
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`theaters in order to reduce cost and improve quality. We were the Digital Out-Of-Home
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`pioneers and we competed against traditional Out-Of-Home providers many times, and in
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`many locations. We had solutions that advertising clients demanded. As part of our
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`competition for implementation contracts, we educated our potential clients regarding
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`how a dynamic advertising system worked, the advantages that it could provide, as well
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`as the component, network and systems installation requirements.
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`13.
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`I founded PlusTV, a digital terrestrial TV channel. When the European
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`countries decided to transform from analog distribution of TV to digital distribution, new
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`opportunities arose. The complex software structures that we built for PlusTV are still
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`Case: 1:16-cv-05222 Document #: 1-4 Filed: 05/13/16 Page 7 of 8 PageID #:66
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`based on the fundamental software structures that I developed over 20 years ago, and it
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`has changed the world. New and important opportunities to interact with the final
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`consumer or with advertisers make it possible to create new revenue streams and to
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`enhance unique and valuable information from the consumers digital behavior in order to
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`enhance better marketing opportunities.
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`14. My work with Hallpressen includes some of the most important challenges
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`that are faced in transforming a company from a traditional daily paper to a modern
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`digital media company. I noticed a need for a more efficient way to approach clients and
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`I have implemented a new digital based client support system for the company. This
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`system is used to collect information from clients, structure it correctly, and then use it in
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`a more efficient manner.
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`15. While working with the non-profit Non Smoking Generation Foundation I
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`could again see, first hand, the impact and importance that advertising can have, as the
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`results of an effective campaign were demonstrated with regularity. We have conducted
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`billboards advertising campaigns for over 15 years that have won national and
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`international prizes, including, for example a Grand Prix in Cannes. I realized that the
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`effect from a good advertising campaign can be enormous. Some important aspects to an
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`effective advertising campaign include collecting adequate information regarding the
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`target group, understanding how people received the information as well as
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`understanding the importance of an appropriate “impact.” Knowledge learned from the
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`results of a first campaign are fundamental in order to create the next campaign. We were
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`Page 6 of 7
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`Case: 1:16-cv-05222 Document #: 1-4 Filed: 05/13/16 Page 8 of 8 PageID #:67
`Case: 1:16—cv—O5222 Document #2 1-4 Filed: 05/13/16 Page 8 of 8 Page|D #:67
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`Very successful with our campaigns as the number of smokers, both young and adult,
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`declined to be the lowest in the world.
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`I declare under penalty of perjury under the laws of the United States of America that the
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`foregoing is true and correct.
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`Executed on: December 30, 2015
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`/4%}?ZN:
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`MATS HYLI
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`Page 7 of 7
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