`Wintek v. TPK Touch Solutions
`IPR2013-00568
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`Case IPR 2013-00567, 2013-00568
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`U.S. Patent No. 8,217,902
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`Declaration of Ted Tsai
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`In Support of Patent Owncr’s Response Pursuant to 37 C.F.R. § 42.120
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`I, Ted Tsai, declare as follows:
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`1.
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`I am over 18 years of age and otherwise competent to make this
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`Declaration.
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`2.
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`I currently work as Senior Vice President and Chief Sales Officer in
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`the Sales & Marketing Department of TPK Touch Solutions Inc. (“TPK”). My
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`office address is No. 13-18, Section 6, Min-Quan E. Rd., Neihu District, Taipei
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`City 114, Taiwan.
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`I have held this position since 2006.
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`3.
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`TPK was established in 2003 and began manufacturing projected
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`capacitance touch panels in 2006.
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`4.
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`With the rapid development and growth in the mobile consumer
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`device industry in the 2000s,
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`there was a significant
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`increase in demand for
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`transparent,
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`lightweight
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`touch screens that are capable of detecting multiple
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`touches. However, as of 2006, the industry was still searching for and developing
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`solutions to achieve that goal.
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`5.
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`The first—generation Apple iPhone, released in 2007, was a prominent
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`example of a device with a transparent touch screen that included multi-touch
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`capabilities.
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`The iPhone’s touch screen was transparent and used mutual-
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`capacitance sensing to detect the positions of multiple simultaneous touches on the
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`surface of the glass. Specifically, the iPhone’s touch screen sensed the presence of
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`one or more touches by measuring the capacitance between two separate layers of
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`transparent indium tin oxide (“ITO”) conductive sensors—a ”driving” layer and a
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`“sensing” layer—on opposite sides of a glass substrate.
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`Case IPR 2013-00567, 2013-00568
`U.S. Patent No. 8,217,902
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`6.
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`Exhibit 2018 is a true and correct copy of a March 2012 market report
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`on touch panel display technology conducted by Daiwa Capital Markets. As
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`page 7 of this Exhibit illustrates, the iPhone (and Apple’s subsequent products)
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`made use of a “DITO” (double—sided ITO) touch panel with ITO sensors on
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`opposing sides of the sensor glass.
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`7.
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`Other commercially available transparent mutual-capacitance based
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`touchscreens in 2006 and 2007—notably, the LG Prada phone-—also relied on
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`DITO solutions.
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`8.
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`In late 2006, TPK developed an improvement on existing DITO
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`mutual capacitance sensors that used a “SITO” (single—sided ITO) solution.
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`Specifically, TPK designed a structure for touch panels in which both driving and
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`sensing conductor elements are on the same surface of the substrate.
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`The
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`conductor elements include an array of sensor cells that are interconnected by
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`conductive lines to form rows and columns along two perpendicular axes, one axis
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`for driving and the other one for sensing. At the intersection of each driving line
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`and sensing line, a thin, transparent insulator is placed between the lines to keep
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`the lines electrically isolated.
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`9.
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`An example of TPK’s SITO touch panel structure is shown in Exhibit
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`2019, which contains diagrams of the touch panel of the Amazon Kindle
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`Paperwhite, designed and provided by TPK.
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`l0.
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`TPK’s single—sided transparent touch panel structure formed the basis
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`for its “one-glass solution” (or “OGS”) technology, with all electrodes placed on
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`the underside of the cover lens. TPK’s OGS technology improved on existing
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`touch screens in multiple ways: First, it allowed for a touch screen that was both
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`physically thinner and more lightweight than other commercially available options,
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`making it highly appropriate for use in mobile devices such as laptops and phones.
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`2
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`Case IPR 2013-00567, 2013-00568
`U.S. Patent No. 8,217,902
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`Second, the reduced thickness of the substrate improved the transparency of the
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`touch screen as a whole.
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`11.
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`Exhibit 2020 is a true and correct copy of an April 2014 quarterly
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`market analysis of the touch panel industry conducted by NPD DisplaySearch. On
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`page 29 of this report, OGS sensor structures are compared to other DITO
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`solutions and recognized as yielding the “best” module thickness and superior
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`optical performance. As the report further notes, the “major appeal” of OGS
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`sensor structures is that they are “thin and light.”
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`12.
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`To the best of my knowledge and belief, TPK’s SITO mutual-
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`capacitance touch screens were the first commercially available mutual capacitance
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`touch panels that used this single—layer solution.
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`13.
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`TPK began selling touch panels implementing its single~layer solution
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`in the year 2008 to mobile handset makers,
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`including to RIM for use in the
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`BlackBerry Storm, and to Palm for use in the Palm Pre. Both products were
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`commercially successful. A February 2009 article from Economic Daily News (Ex.
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`2021) reported that the Storm and Pre were two of only five touch—screen mobile
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`phone devices to sell more than one million units.
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`14.
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`TPK’s SITO touch panels were attractive to its customers for their
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`thin profile—a key advantage in mobile devices. For instance,
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`in 2009 RIM
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`specifically requested that TPK reduce the thickness of its panels to support the
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`thinnest possible product design.
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`15.
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`As market demand for touch—screen devices has continued to increase,
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`TPK has expanded to provide touch panels to customers for use in tablets and
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`notebook computers as well.
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`For instance, in 2012, TPK supplied single-layer
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`Case IPR 2013-00567, 2013-00568
`U.S. Patent No. 8,217,902
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`touch panels to Amazon for use in the Kindle Fire, and to Google/Asus for use in
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`the Nexus 7.
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`16.
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`Exhibit 2022 is a true and correct copy of a research report on TPK
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`published by J.P. Morgan in October 2012. As page 3 of the report notes, by 2012,
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`OGS had “emerge[d] as the mainstream” among tablet devices, resulting in a
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`positive outlook for TPK. Figure 1 on page 3 of the report illustrates the “touch-
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`panel structure evolution” from DITO solutions to single—layer solutions. Table 2
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`on page 4 of the report compares a number of touch-panel technologies known in
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`2012 and awards OGS a grade “A” for thickness and cost.
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`17.
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`Exhibit 2023 is a true and correct copy of a December 2012 quarterly
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`market analysis of the touch panel industry conducted by NPD Display/Search. As
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`page 19 of this report notes, “OGS has become the major touch screen solution for
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`Windows 8 notebook PCs,” as the technology provides “a better balance in terms
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`of weight, thickness, cost, and supply sources.” Page 7 of this report estimates that
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`OGS accounts for “more than 80% of the shipment share” of Windows-based
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`notebook PCs optimized for touch.
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`18.
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`TPK also has distinguished its competitors by introducing its SITO
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`technology to customers outside the mobile computing industry. Electric vehicle
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`manufacturer Tesla chose TPK to supply the 17-inch touch panel for its Model S, a
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`prominent feature of the award-winning vehicle. Tesla awarded TPK as its
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`“Excellent Development Partner.”
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`19.
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`TPK’s other customers have expressed appreciation for the improved
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`thinness, weight and transparency of TPK’s SITO touch screens, and have
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`presented TPK with a number of awards recognizing its products. An exemplary
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`chart of awards received from TPK’s customers appears below.
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` Award
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`Sony —- "Supplier Performance Award"
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`2013
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`Asus -- "2012 Supplier Performance Award"
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`Lenovo -— "Outstanding Serviceability"
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`2012
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`Acer —— "The Best Partner"
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`ZTE -- "Global Excellent Partnership"
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`Intel -- "Supplier Recognition Award for First Smartphone Launch in Q2’ 12"
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`Tesla —— "Excellent Development Partner"
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`2011
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`ZTE -- "Best Agile Delivery Award"
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`ZTE -- "Excellent Supplier Quality Representative"
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`Huawei —— "TP/LCD Quality Outcomes Number 1 "
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`Asus -- "201l Outstanding Supplier Award"
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`Case IPR 2013-00567, 2013-00568
`U.S. Patent No. 8,217,902
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`20.
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`I declare under penalty of perjury under the laws of the United States
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`of America that the foregoing is true and correct.
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`Executed on the 27th day of June, 2014.
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`7509:
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`Ted Tsai