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TPK 2017
`Wintek v. TPK Touch Solutions
`IPR2013-00568
`
`

`
`Case IPR 2013-00567, 2013-00568
`
`U.S. Patent No. 8,217,902
`
`Declaration of Ted Tsai
`
`In Support of Patent Owncr’s Response Pursuant to 37 C.F.R. § 42.120
`
`I, Ted Tsai, declare as follows:
`
`1.
`
`I am over 18 years of age and otherwise competent to make this
`
`Declaration.
`
`2.
`
`I currently work as Senior Vice President and Chief Sales Officer in
`
`the Sales & Marketing Department of TPK Touch Solutions Inc. (“TPK”). My
`
`office address is No. 13-18, Section 6, Min-Quan E. Rd., Neihu District, Taipei
`
`City 114, Taiwan.
`
`I have held this position since 2006.
`
`3.
`
`TPK was established in 2003 and began manufacturing projected
`
`capacitance touch panels in 2006.
`
`4.
`
`With the rapid development and growth in the mobile consumer
`
`device industry in the 2000s,
`
`there was a significant
`
`increase in demand for
`
`transparent,
`
`lightweight
`
`touch screens that are capable of detecting multiple
`
`touches. However, as of 2006, the industry was still searching for and developing
`
`solutions to achieve that goal.
`
`5.
`
`The first—generation Apple iPhone, released in 2007, was a prominent
`
`example of a device with a transparent touch screen that included multi-touch
`
`capabilities.
`
`The iPhone’s touch screen was transparent and used mutual-
`
`capacitance sensing to detect the positions of multiple simultaneous touches on the
`
`surface of the glass. Specifically, the iPhone’s touch screen sensed the presence of
`
`one or more touches by measuring the capacitance between two separate layers of
`
`transparent indium tin oxide (“ITO”) conductive sensors—a ”driving” layer and a
`
`“sensing” layer—on opposite sides of a glass substrate.
`
`

`
`Case IPR 2013-00567, 2013-00568
`U.S. Patent No. 8,217,902
`
`6.
`
`Exhibit 2018 is a true and correct copy of a March 2012 market report
`
`on touch panel display technology conducted by Daiwa Capital Markets. As
`
`page 7 of this Exhibit illustrates, the iPhone (and Apple’s subsequent products)
`
`made use of a “DITO” (double—sided ITO) touch panel with ITO sensors on
`
`opposing sides of the sensor glass.
`
`7.
`
`Other commercially available transparent mutual-capacitance based
`
`touchscreens in 2006 and 2007—notably, the LG Prada phone-—also relied on
`
`DITO solutions.
`
`8.
`
`In late 2006, TPK developed an improvement on existing DITO
`
`mutual capacitance sensors that used a “SITO” (single—sided ITO) solution.
`
`Specifically, TPK designed a structure for touch panels in which both driving and
`
`sensing conductor elements are on the same surface of the substrate.
`
`The
`
`conductor elements include an array of sensor cells that are interconnected by
`
`conductive lines to form rows and columns along two perpendicular axes, one axis
`
`for driving and the other one for sensing. At the intersection of each driving line
`
`and sensing line, a thin, transparent insulator is placed between the lines to keep
`
`the lines electrically isolated.
`
`9.
`
`An example of TPK’s SITO touch panel structure is shown in Exhibit
`
`2019, which contains diagrams of the touch panel of the Amazon Kindle
`
`Paperwhite, designed and provided by TPK.
`
`l0.
`
`TPK’s single—sided transparent touch panel structure formed the basis
`
`for its “one-glass solution” (or “OGS”) technology, with all electrodes placed on
`
`the underside of the cover lens. TPK’s OGS technology improved on existing
`
`touch screens in multiple ways: First, it allowed for a touch screen that was both
`
`physically thinner and more lightweight than other commercially available options,
`
`making it highly appropriate for use in mobile devices such as laptops and phones.
`
`2
`
`

`
`Case IPR 2013-00567, 2013-00568
`U.S. Patent No. 8,217,902
`
`Second, the reduced thickness of the substrate improved the transparency of the
`
`touch screen as a whole.
`
`11.
`
`Exhibit 2020 is a true and correct copy of an April 2014 quarterly
`
`market analysis of the touch panel industry conducted by NPD DisplaySearch. On
`
`page 29 of this report, OGS sensor structures are compared to other DITO
`
`solutions and recognized as yielding the “best” module thickness and superior
`
`optical performance. As the report further notes, the “major appeal” of OGS
`
`sensor structures is that they are “thin and light.”
`
`12.
`
`To the best of my knowledge and belief, TPK’s SITO mutual-
`
`capacitance touch screens were the first commercially available mutual capacitance
`
`touch panels that used this single—layer solution.
`
`13.
`
`TPK began selling touch panels implementing its single~layer solution
`
`in the year 2008 to mobile handset makers,
`
`including to RIM for use in the
`
`BlackBerry Storm, and to Palm for use in the Palm Pre. Both products were
`
`commercially successful. A February 2009 article from Economic Daily News (Ex.
`
`2021) reported that the Storm and Pre were two of only five touch—screen mobile
`
`phone devices to sell more than one million units.
`
`14.
`
`TPK’s SITO touch panels were attractive to its customers for their
`
`thin profile—a key advantage in mobile devices. For instance,
`
`in 2009 RIM
`
`specifically requested that TPK reduce the thickness of its panels to support the
`
`thinnest possible product design.
`
`15.
`
`As market demand for touch—screen devices has continued to increase,
`
`TPK has expanded to provide touch panels to customers for use in tablets and
`
`notebook computers as well.
`
`For instance, in 2012, TPK supplied single-layer
`
`

`
`Case IPR 2013-00567, 2013-00568
`U.S. Patent No. 8,217,902
`
`touch panels to Amazon for use in the Kindle Fire, and to Google/Asus for use in
`
`the Nexus 7.
`
`16.
`
`Exhibit 2022 is a true and correct copy of a research report on TPK
`
`published by J.P. Morgan in October 2012. As page 3 of the report notes, by 2012,
`
`OGS had “emerge[d] as the mainstream” among tablet devices, resulting in a
`
`positive outlook for TPK. Figure 1 on page 3 of the report illustrates the “touch-
`
`panel structure evolution” from DITO solutions to single—layer solutions. Table 2
`
`on page 4 of the report compares a number of touch-panel technologies known in
`
`2012 and awards OGS a grade “A” for thickness and cost.
`
`17.
`
`Exhibit 2023 is a true and correct copy of a December 2012 quarterly
`
`market analysis of the touch panel industry conducted by NPD Display/Search. As
`
`page 19 of this report notes, “OGS has become the major touch screen solution for
`
`Windows 8 notebook PCs,” as the technology provides “a better balance in terms
`
`of weight, thickness, cost, and supply sources.” Page 7 of this report estimates that
`
`OGS accounts for “more than 80% of the shipment share” of Windows-based
`
`notebook PCs optimized for touch.
`
`18.
`
`TPK also has distinguished its competitors by introducing its SITO
`
`technology to customers outside the mobile computing industry. Electric vehicle
`
`manufacturer Tesla chose TPK to supply the 17-inch touch panel for its Model S, a
`
`prominent feature of the award-winning vehicle. Tesla awarded TPK as its
`
`“Excellent Development Partner.”
`
`19.
`
`TPK’s other customers have expressed appreciation for the improved
`
`thinness, weight and transparency of TPK’s SITO touch screens, and have
`
`presented TPK with a number of awards recognizing its products. An exemplary
`
`chart of awards received from TPK’s customers appears below.
`
`

`
` Award
`
`Sony —- "Supplier Performance Award"
`
`2013
`
`Case IPR 2013-00567, 2013-00568
`U.S. Patent No. 8,217,902
`
`Asus -- "2012 Supplier Performance Award"
`
`Lenovo -— "Outstanding Serviceability"
`
`2012
`
`Acer —— "The Best Partner"
`
`ZTE -- "Global Excellent Partnership"
`
`Intel -- "Supplier Recognition Award for First Smartphone Launch in Q2’ 12"
`
`Tesla —— "Excellent Development Partner"
`
`2011
`
`ZTE -- "Best Agile Delivery Award"
`
`ZTE -- "Excellent Supplier Quality Representative"
`
`
`
`
`Huawei —— "TP/LCD Quality Outcomes Number 1 "
`
`Asus -- "201l Outstanding Supplier Award"
`
`
`
`

`
`Case IPR 2013-00567, 2013-00568
`U.S. Patent No. 8,217,902
`
`20.
`
`I declare under penalty of perjury under the laws of the United States
`
`of America that the foregoing is true and correct.
`
`Executed on the 27th day of June, 2014.
`
`7509:
`
`Ted Tsai

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