UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`
`
`
`
`
`
`
`
`
`
`HTC CORPORATION and HTC AMERICA, INC.
`
`Petitioners
`
`v.
`
`FLASHPOINT TECHNOLOGY, INC.
`
`Patent Owner
`
`
`
`
`
`
`
`
`
`
`
`CASE: To Be Assigned
`
`Patent No. 7,259,783 B2
`
`
`
`
`
`
`
`
`
`
`
`DECLARATION OF ALEXIS J. GERARD
`
`IN SUPPORT OF PETITION FOR INTER PARTES REVIEW
`
`OF U.S. PATENT NO. 7,259,783 B2
`
`
`
`
`
`- 1 -
`
`HTC Exhibit 1006
`
`

`

`DECLARATION OF ALEXIS J. GERARD
`IN SUPPORT OF PETITION FOR INTER PARTES REVIEW
`OF U.S. PATENT NO. 7,259,783 B2
`
`
`
`I, Alexis J. Gerard, declare under penalty of perjury that:
`
`1.
`
`I have been engaged by HTC Corporation and HTC America, Inc.
`
`(collectively, “HTC”) as a consultant in connection with HTC’s Petition for Inter
`
`Partes Review of U.S. Patent No. 7,259,783 B2 (the “783 Patent”).
`
`2.
`
`I am compensated at my customary rate of $200 per hour for
`
`preparing this Declaration. The compensation is not contingent upon my
`
`performance, the outcome of the inter partes review, the district court litigations,
`
`or any other proceeding, or any issues involved in or related to the inter partes
`
`review or the district court litigations.
`
`I.
`
`BACKGROUND AND EXPERIENCE
`
`3.
`
`I am an executive, consultant, writer and publisher in the imaging
`
`technology industry. I have also been an active amateur photographer since my
`
`twenties, and my work has been exhibited and published.
`
`4.
`
`From 1983 to 1991, I held executive positions with Apple Computer,
`
`Inc. (now Apple Inc.), working in the new technologies and software marketing
`
`areas.
`
`5.
`
`In 1991, I founded the company Future Image Inc. and served as its
`
`president since then to the present. Future Image Inc. functioned as an imaging
`
`technology think tank, conducting research studies in the areas of imaging,
`
`- 1 -
`
`HTC Exhibit 1006
`
`

`

`DECLARATION OF ALEXIS J. GERARD
`IN SUPPORT OF PETITION FOR INTER PARTES REVIEW
`OF U.S. PATENT NO. 7,259,783 B2
`
`information, and telecommunications technologies, and providing consulting
`
`services to its clients including Adobe, Canon, Eastman Kodak, IBM, Intel, Procter
`
`& Gamble, and Sony. In recent years the activities of the company have been
`
`reduced to individual consulting, and it has been converted to a “doing business
`
`as” entity.
`
`6.
`
`From May 1993, Future Image Inc. started publishing 10 times a year
`
`a periodical entitled The Future Image Report and I was the editor and publisher of
`
`this periodical. For example, in the February 1995 issue of The Future Image
`
`Report, I wrote an article New Digital Cameras from Canon, Casio, Chinon and
`
`Minolta, describing features of several new digital cameras. A copy of the
`
`February 1995 issue of The Future Image Report is attached to this Declaration as
`
`Attachment A. The Future Image Report was one of the most influential
`
`periodicals in the digital imaging field.
`
`7. While working at Future Image Inc., I chaired a number of digital
`
`imaging conferences, including the inaugural conference of the Digital Imaging
`
`Marketing Association in 1995 and the Future Image/Forbes Visual
`
`Communication Executive Summit in 2002. In 2003 I launched the Mobile
`
`Imaging Executive Summit, a by-invitation executive conference held twice yearly
`
`(Americas, Europe) which evolved into the 6Sight® Future of Imaging executive
`
`- 2 -
`
`HTC Exhibit 1006
`
`

`

`DECLARATION OF ALEXIS J. GERARD
`IN SUPPORT OF PETITION FOR INTER PARTES REVIEW
`OF U.S. PATENT NO. 7,259,783 B2
`
`conference, produced in partnership with PMA (Photo Marketing Association
`
`International) and AIE (Association of Imaging Industry Executives).
`
`8. Most recently I co-organized and co-hosted Suite 48 Analytics’
`
`Mobile Photo Connect conference.
`
`9.
`
`In 2005, I co-authored with Bob Goldstein a book entitled Going
`
`Visual-Using Images to Enhance Productivity, Decision Making and Profits,
`
`published by John Wiley and Sons. This book teaches business owners how to use
`
`digital photography to improve their businesses, no matter whether they have a
`
`small, mid-size, or large company.
`
`10.
`
`In 2006, I launched the 6Sight® Future of Imaging Conference and
`
`served as its Chair. I was also the president of 6Sight Conferences LLC, a joint
`
`venture with Photo Marketing Association International.
`
`11.
`
`I have been quoted at various times in the Wall Street Journal, New
`
`York Times, Boston Globe, San Francisco Chronicle, International Herald Tribune,
`
`USA Today, Financial Times, Newsweek, Business Week, and other leading
`
`business and technology publications. I have privately spoken at executive
`
`gatherings including the Society for Information Science and Technology, Agfa,
`
`Apple, Conexant, Eastman Kodak, Hewlett-Packard, Intel, Minolta, Polaroid,
`
`Procter and Gamble and many others.
`
`- 3 -
`
`HTC Exhibit 1006
`
`

`

`DECLARATION OF ALEXIS J. GERARD
`IN SUPPORT OF PETITION FOR INTER PARTES REVIEW
`OF U.S. PATENT NO. 7,259,783 B2
`
`
`12.
`
`I have also served as a board member for several non-profit
`
`organizations in the imaging technology field. For example, I am a member of the
`
`International Advisory Council of the George Eastman House. From 1997 to
`
`1998, I was President and Executive Director of the Digital Imaging Group, an
`
`open non-profit industry consortium founded by Adobe, Canon, Eastman Kodak,
`
`Fuji, Hewlett-Packard, IBM, Intel, Live Picture, and Microsoft to promote the
`
`growth of digital imaging into mainstream markets. The Digital Imaging Group
`
`was later merged into the International Imaging Industry Association (“I3A”).
`
`13. A biography of mine is attached to this Declaration as Attachment B.
`
`II. THE CASIO QV-30 CAMERA AND ITS OWNER’S MANUAL
`
`14.
`
`In connection with my role as an analyst, writer, publisher, and
`
`consultant in the imaging industry, camera manufacturers routinely provided me
`
`with newly released digital cameras and their accompanying manuals. In most
`
`cases these digital cameras and manuals were the same as the ones commercially
`
`available to the public at the time. After receiving them, I routinely operated these
`
`cameras, read their manuals, and at times wrote review articles about them.
`
`15. The Casio QV-30 digital camera (“Casio QV-30”) was released in the
`
`United States for public purchase in April 1996. Shortly after the public release
`
`and no later than the end of June 1996, I received from Casio a retail version of the
`
`- 4 -
`
`HTC Exhibit 1006
`
`

`

`DECLARATION OF ALEXIS J. GERARD
`IN SUPPORT OF PETITION FOR INTER PARTES REVIEW
`OF U.S. PATENT NO. 7,259,783 B2
`
`Casio QV-30 in its retail packaging, which came with its owner’s manual (the
`
`“Owner’s Manual”). When I received the Casio QV-30 and the Owner’s Manual, I
`
`was under no obligation to maintain them as confidential. In fact, my copy of the
`
`Casio QV-30 and the Owner’s Manual are the same as those available for public
`
`purchase within the United States in 1996.
`
`16. Upon receiving the Casio QV-30 and the Owner’s Manual, I reviewed
`
`the Owner’s Manual to learn how to operate the camera and to familiarize myself
`
`with the Casio QV-30’s technical features described in the Owner’s Manual. For
`
`example, I noted that the Owner’s Manual explains that I can compose the image I
`
`want to record while viewing it on the LCD screen located at the back of the Casio
`
`QV-30.
`
`17.
`
`I also used my Casio QV-30 to take photos in June 1996. After taking
`
`a photo, I noticed that the image that was just taken immediately appeared on the
`
`LCD screen.
`
`18. Attachment C is a screenshot showing, among other things, an image
`
`file I’ve taken using my Casio QV-30 in June 1996 and the metadata of that image
`
`file. In 2006, I converted that image file into TIF format to view it on my
`
`computer. Attachment D is a screenshot showing, among other things, the TIF file
`
`- 5 -
`
`HTC Exhibit 1006
`
`

`

`DECLARATION OF ALEXIS J. GERARD
`IN SUPPORT OF PETITION FOR INTER PARTES REVIEW
`OF U.S. PATENT NO. 7,259,783 B2
`
`that I converted from the image file I’ve taken in June 1996 and the metadata of
`
`that TIF file. Attachment E is the image of that TIF file.
`
`19. After taking several photos using my Casio QV-30, I also reviewed
`
`the Owner’s Manual to learn how to play back the photos I’d taken.
`
`20. Since receiving the Casio QV-30 and the Owner’s Manual in 1996, I
`
`have continuously kept them in my custody and control. At HTC’s counsel Kevin
`
`Patariu’s request, I retrieved the Owner’s Manual from my office and sent it to him
`
`in August 2014 via FedEx in order to scan the manual.
`
`21.
`
`I examined Attachment F attached to my Declaration and it is a true
`
`and correct scanned copy of my Owner’s Manual which I received from Casio in
`
`the second quarter of 1996.
`
`22.
`
`I hereby declare that all statements made herein of my own
`
`knowledge are true and that all statements made on information and belief are
`
`believed to be true; and further that these statements were made with the
`
`knowledge that willful false statements and the like so made are punishable by fine
`
`or imprisonment, or both, under 18 U.S.C. § 1001 and that such willful false
`
`statements may jeopardize the validity of the application or any patent issued
`
`thereon.
`
`- 6 -
`
`HTC Exhibit 1006
`
`

`

`
`
`DECLARATION OF ALEXIS J. GERARD
`
`IN SUPPORT OF PETITION FOR INTER PAR'I'ES REVIEW
`
`OF US. PATENT NO. 7,259,783 B2
`
`23.
`
`I declare under penalty of perjury that the foregoing is true and
`
`correct.
`
` Executed on fl day ofg 2014 in fir NdKIWI: 6/4,}.
`
`ALEXIS J
`
`D
`
`HTC Exhibit 1006
`
`HTC Exhibit 1006
`
`

`

`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`ATTACHMENT A
`
`ATTACHMENT A
`
`HTC Exhibit 1006
`
`HTC Exhibit 1006
`
`

`

`FUTURE IMAGE
`
`I M A G E R E P O R T
`
`TM
`
`T H E F U T U R E
`
`V O L U M E 2. I S S U E 9
`TM
`R E P O R T
`
`T H E
`
`1.
`
`5.
`
`6.
`
`8.
`
`T H E I N S I D E T R A C K I N D I G I T A L I M A G I N G
`
`IN THIS ISSUE:
`
`New Digital Cameras from Canon,
`Casio, Chinon and Minolta, some
`of which feature innovative design
`concepts. – by Alexis Gerard
`
`Summit Report: Copyrights
`A panel of experts at Photography
`in the Digital Age Summit II
`discusses the hot issues around
`protecting image copyrights and
`pricing them for digital media.
`– by Renée Buck-Ohara
`
`FPG transitions to digital
`President Barbara Roberts discusses
`interim strategies which gave FPG
`a competitive edge.
`– by Renée Buck-Ohara
`
`Summit Snapshots: Short reports
`from the following sessions at
`Photography in the Digital Age
`Summit II: Digital Cameras for
`Business Productivity, Digital
`Cameras for Publishing, Scanners,
`PhotoCD, Desktop Imaging
`Platforms – Power Macintosh and
`Wintel, Hard Copy. – by Fred
`Shippey and Renée Buck-Ohara
`
`The Future Image Report is published
`10 times a year by Future Image Inc.,
`1020 Parrott Drive, Burlingame, CA. 94010
`Phone: 415-579-0493 Fax: 415-579-0566.
`Subscription information on page 9
`© Alexis Gerard, 1995. No portion of the
`Future Image Report may be copied or
`reproduced in any form without Authorization.
`Library of Congress Catalog Card Number:
`ISSN 1068 7947
`
`NEW DIGITAL CAMERAS:
`CANON, CASIO, CHINON,
`AND MINOLTA
`By Alexis Gerard
`
`The past few weeks have been notable for the entrance of four
`household names into the digital camera fray. Casio’s emergence
`demonstrates the allure the category holds for vendors coming from
`the consumer electronics market; we expect it will prove to be only
`the tip of the iceberg. Photography heavies Canon and Minolta are
`re-entering the midrange market after digesting ill-fated early ventures
`in still video. And Chinon is leveraging the experience it’s acquired
`as an OEM vendor of entry-level digital cameras to Apple and
`Logitech (via Kodak) to throw its own hat into the ring.
`
` CHINON ESC-3 X
`Absent from the electronic imaging market since discontinuing its
`still-video VMC-1 (which, “way back”
`in 1990 already featured a
`zoom
`lens and
`memory cards)
`Chinon recently
`announced its
`first digital
`camera, the
`ESC-3X, which
`will reportedly
`be available in the
`US in June of ’95
`(the Japan intro date
`is still undeter-
`mined), for a sug-
`gested retail price
`of $995. Predictably, the ESC-3X is a bird of a feather with the
`QuickTake and the Pixtura which Chinon has been involved in
`manufacturing, and features a very similar form factor. However
`it raises the ante considerably in terms of the performance offered
`at the entry level of the market; with a 3X zoom lens, auto focus,
`and storage in both flash memory and PCMCIA removable cards.
`Recent market research by Future Image and BIS Strategic Deci-
`sions found all three of these features ranked at the top of the
`desirability list by current digital camera users in this category.
`
`Chinon’s ESC-3 X has TTL Viewfinder, zoom,
`autofocus and PCMCIA storage
`
`VOLUME 2. ISSUE 9
`F E B R U A R Y 1 9 9 5
`© 1995 Future Image Inc., Burlingame CA 94010. Phone: 415-579-0493 Fax: 415-579-0566 America Online: AGFUTURE
`1
`
`HTC Exhibit 1006
`
`

`

`T H E F U T U R E
`
`I M A G E R E P O R T
`
`TM
`
`V O L U M E 2. I S S U E 9
`
`comes from 4 AA-size batteries (or an
`AC Adapter), the built-in flash recycles in
`6 seconds. Chinon also announced a
`fast (60 seconds) 142 dpi small-size (3
`5/8 x 4 3/4) dye transfer
`
`is scheduled for introduction in the US in
`May or June for a suggested list of
`$799.00, including cable and soft-
`ware to connect to a Mac (via the
`modem port) or Windows PC. This prod-
`uct definitely marches to the beat of its
`own drummer, with some excit-
`ing results. We’re very im-
`
`Casio’s QV-10 is extremely small and
`light, features an LCD screen for
`composing and preview
`
`printer, dubbed the CP-1000, whose
`ship date and suggested retail price are
`as yet undetermined.
`
`Based on our research, we believe a
`large number of potential customers at
`the $1,000 price point are ready and
`waiting for a product with a feature set
`comparable to the Chinon camera’s.
`Assuming image
`quality is sufficient
`(we could not form
`a definitive opinion
`based on the proto-
`type we saw) this
`product could do very well. To what
`extent it fulfills its potential will depend
`largely on how adept Chinon proves to
`be at handling the communication and
`distribution challenges inherent to a
`market situation we would characterize
`as prematurely crowded relative to its
`current size.
`
` CASIO QV-10
`On November 14, Casio announced in
`Japan an innovative point-and-shoot color
`unit dubbed the QV-10, which has also
`been shown at the recent Consumer
`Electronics Show in Las Vegas. The QV
`10 goes on sale in Japan in March (the
`price announced there is $660.00) and
`
`pressed with the form factor, extremely
`light (approximately 190 grams –0.2
`lb.– not including batteries) and small
`(W=13cm, D=4cm, H=6.6cm) –it will
`easily fit into a pocket. One of the
`tradeoffs though is the lack of a built-in
`flash. Up to 96 color images can be
`stored in the unit’s 2 MB of built-in flash
`memory, in a proprietary compressed
`format based on JPEG (each image
`occupies 20KBytes). Instead of a con-
`ventional viewfinder, the QV 10 fea-
`tures a 1.8 inch low reflection color LCD
`which acts as both a viewfinder and a
`monitor –a feature which scores high on
`the nifty index for numerous reasons:
`First, as with a number of camcorders on
`the market, the lens assembly swivels to
`give the photographer the flexibility of
`not having to hold the unit at eye level.
`The LCD screen can be used to view the
`images stored in the camera –a split-
`screen function enables the viewing of
`one, four or nine images at once, a
`zoom function enables viewing portions
`of the image at up to 2x magnification.
`
`Given the close relationship be-
`tween Kodak and Chinon, not a
`few eyebrows have been raised
`by Chinon’s decision not to source
`its sensor from Kodak (Chinon
`says the main reason for the deci-
`sion was cost); instead the ESC-3X
`features a 410,000 pixel interline sen-
`sor, which captures 24-bit color images
`at the same 2 resolutions as the
`QuickTake (640x480, and 320x240).
`While the images are captured in two
`resolutions, they are stored in three: The
`“super-fine resolution” mode uses lossless
`compression on the 640x480 images,
`whereas the “fine resolution” uses lossy
`compression with the same pixel count.
`The 320x240 mode is described as
`“Normal”. The format is proprietary to
`Chinon, and uses DCT compression.
`The camera can store up to 10 “fine
`resolution” or 45 “normal” images in its
`1 MB of internal
`memory, and sup-
`ports
`PCMCIA
`memory cards of up
`to 16 MB. As of this
`writing, an unfortu-
`nate drawback of Chinon’s PCMCIA
`implementation is that hard disk cards
`are not supported. Images at all three
`resolutions (super-fine, fine, standard)
`can be stored on the same card. Opti-
`cally, the 3X zoom lens ranges from 7 to
`21 mm (38 to 114 in 35 mm. equiva-
`lents) and focuses from 0.85 m to infinity
`(0.5 m. in Macro mode). The three focus
`modes are: multi-af, spot (we like that!)
`and macro. Another feature we find
`especially appealing (also a first in this
`category) is the Optical TTL (Through The
`Lens) viewfinder. Aperture range is F
`2.55 to F16, sensitivity equivalent is
`ISO 200, and shutter speeds go from
`1/16 to 1/300 of a second. Power
`
`CASIO’S QV-10
`IS A NEW DESIGN
`CONCEPT FOR
`DIGITAL CAMERAS
`
`© 1995 Future Image Inc., Burlingame CA 94010. Phone: 415-579-0493 Fax: 415-579-0566 America Online: AGFUTURE
`
`2
`
`HTC Exhibit 1006
`
`

`

`T H E F U T U R E
`
`I M A G E R E P O R T
`
`TM
`
`V O L U M E 2. I S S U E 9
`
`MINOLTA
`BRINGS BACK THE
`3-CHIP DESIGN
`
`era” (we assume that’s a temporary
`name), the company picks up where it
`left off many years ago in its unsuccessful
`still video venture: Like its predecessors,
`the SB-70S and SB-90S which attached
`to a Maxxum 7000 and 9000 respec-
`tively, this unit is actually a digital cap-
`ture back for Minolta’s Maxxum 400 SI
`Single Lens Reflex. But this year’s model
`features three significant innovations:
`For starters it’s the first portable digital
`camera to use three
`chips for image
`capture (Sony did
`that in its now-dis-
`continued still-video
`MVC 5000). Second, it allocates imag-
`ing tasks between the three 380,000
`pixel 1/2 inch interline sensors in an
`innovative way: Two measure only green
`(luminance) while the third captures red
`and blue. Third, the image acquisition
`software (implemented as a Photoshop
`plugin) automatically interpolates the
`image up, from 1.2 to 5 MB.
`
`With this unit, Minolta upends conven-
`tional thinking
`by managing to
`
`They showed remarkable detail in the
`shadow areas, almost no blooming in
`the highlights of the lit windows, and
`accurate neutral color. Of course, with
`this type of subject chroma is largely
`irrelevant; and if the formula chosen by
`Minolta has any tradeoff it might be in
`the area of color saturation. The images
`we saw did in fact appear slightly
`undersaturated, but there was not enough
`of a range to form a definite impression.
`Because the signal
`is so clean, Minolta
`has the option –
`which it exercises –
`to interpolate the
`data up right off the bat, yielding a 5
`MB image size which looks respectable
`against the unit’s competitors in the
`“$10,000 range” mentioned by Minolta
`– Kodak’s DCS 420 and the Nikon E2/
`Fuji DS 505 (the price will most likely
`include one lens and one PCMCIA
`card). The combined process of interpo-
`lating and opening the files takes 30
`seconds on a Power Macintosh. Stor-
`age will be on PCMCIA hard disk cards
`(the prototype shown fea-
`tures a 40 MB hard disk
`which will be removed
`from production models),
`each 24-bit image takes up
`1.2 MB of disk space. The unit
`
`The LCD screen also makes it possible to
`adjust exposure conditions while simul-
`taneously viewing the effect of the adjust-
`ment. Finally, users can review stored
`images and remove them selectively; the
`delete function has a feature Casio calls
`“memory protection”, to help prevent
`accidental removal of images.
`
`The QV 10’s image sensor is a 250,000
`pixel CCD, with the pixel size of the
`images listed by Casio as 320 x 240.
`The optic is a fixed-focus 5.2 mm. lens
`with an aperture switchable between F2
`and F8 in order to increase depth of
`field. Since each aperture also features
`a macro mode, the closest possible
`focus distance is 10 cm. Metering is
`given as TTL Aperture Priority; center-
`weighted with auto white balance, shut-
`ter speeds range from 1/8 to 1/4000 of
`a second. Power comes from 4 AA
`alkaline batteries, the camera can also
`be plugged into an AC adapter. The
`camera includes in and out serial con-
`nectors for digital, and a video-out port.
`
`The positioning for the camera is still
`somewhat vague: Casio says it hopes it
`will be used “to take pictures of product
`samples and real estate, which could
`then be incorporated into business pre-
`sentations”. While it’s clear that the
`images are too small to support a wide
`range of uses, the storage capacity and
`the wealth of features packed into a
`compact, portable, elegant product make
`this camera extremely appealing. We
`see it as an instant visual note-taker, and
`a guaranteed attention getter at any
`gathering. While raising the prospec-
`tive price as Casio has done will take
`something away from its “impulse buy”
`potential, we believe that – properly
`marketed– the QV-10 could be the hot-
`test ticket in a long time in the camera
`category.
`
` MINOLTA DIGITAL CAMERA
`In a hidden corner of the MacWorld
`jungle, Minolta showed one of the most
`technically interesting prototype cam-
`eras to appear on the scene in many
`months. With the “Minolta Digital Cam-
`
`put a three chip and
`beam splitter assem-
`bly into a compact,
`highly portable pack-
`age weighing just over two
`pounds. Assigning two out
`of three chips to measuring
`only green yields spectacu-
`lar dividends in some mea-
`sures of image quality: We
`closely examined pictures
`made with the prototype,
`of office buildings shot at
`night – extremely demand-
`ing subject matter for a digi-
`tal camera (and for many
`conventional cameras too).
`
`Minolta Digital back attached to a Maxxum 400. FIR Editor
`Fred Shippey demonstrates the convenient form factor
`
`© 1995 Future Image Inc., Burlingame CA 94010. Phone: 415-579-0493 Fax: 415-579-0566 America Online: AGFUTURE
`
`3
`
`HTC Exhibit 1006
`
`

`

`T H E F U T U R E
`
`I M A G E R E P O R T
`
`TM
`
`V O L U M E 2. I S S U E 9
`
` CANON/KODAK EOS DCS 3 AND 5
`While maintaining a presence at the entry
`level of the electronic camera market with
`its still-video based RC 360 and 570,
`Canon has been absent from the mid/
`high end since withdrawing its top-of-the-
`line RC 760 in 1991. As previously
`reported by FIR, Canon has discreetly
`shown on several occasions a home-
`grown digital SLR. The last proto-
`type we reviewed featured
`a 1000x13000 BASIS
`sensor with a 10 bit A/
`D converter, and used
`EOS lenses and acces-
`sories (see FIR Volume 1
`Issue 1). In the end how-
`ever Canon chose to
`enter the market through
`an alliance with Kodak
`which will allow it to
`gain expertise without
`taking a large develop-
`ment risk.
`
`At the PMA show in Las
`Vegas, Canon and
`Kodak
`jointly an-
`nounced the EOS DCS
`3 and the EOS DCS 5. To a large extent,
`these two units are variations on the AP
`NC 2000 and the Kodak DCS 420 (for
`a comparative summary of the perfor-
`mance and specs of those two models,
`see FIR Volume 2 Issue 3). However,
`where these earlier models are based on
`Nikon N90 camera bodies, the EOS
`DCS units are based
`on Canon’s EOS 1N
`body and are com-
`patible with Canon
`EF lenses and EOS
`accessories. The two companies also an-
`nounced a future model based on Kodak’s
`6 Megapixel chip (as used in the DCS
`460/465) for delivery “late in the year”.
`
`Canon/Kodak EOS DCS 3
`
`uses standard Minolta lenses, which
`results in the familiar “multiplication ef-
`fect” whereby a 28 mm. lens, for in-
`stance, gives roughly the same field of
`view as a 50 mm. lens would in the film
`version of the camera. Sensitivity is fixed
`at ISO 800, power is provided by state-
`of-the-art (very small and light) Lithium
`Ion batteries with each charge
`good for approxi-
`mately 100 ex-
`posures. The
`flash is pow-
`ered sepa-
`rately, by the
`standard cam-
`era battery.
`Officials told
`us Minolta
`plans to offer
`the product to
`a market it de-
`fines as “prima-
`rily DTP users”.
`Obviously, the
`p o s i t i o n i n g
`needs work but
`the technology
`is interesting
`enough in our opinion to make Minolta
`an instant contender. Introduction is
`scheduled to be simultaneously in the
`US, Japan, and selected European coun-
`tries – the official company position on
`timing is “within 1995”, but with any
`luck it will in fact be late summer – with
`Macintosh software (Photoshop plugin)
`only. A Windows version will follow
`“one to two months later” according to
`Minolta officials.
`
`Along with a full color digital copier
`dubbed the CF-80, Minolta also showed
`a compact 35 mm. slide scanner,
`whose specs (2800 dpi maximum reso-
`lution, scanning time of 6 seconds for
`1000 x 1000 pixels, 10 bit a/d con-
`verter) and a projected price point of
`around $2,000 put it in direct compe-
`tition with Polaroid’s SprintScan to wrest
`the entry level crown away from Nikon’s
`Coolscan. As far as we could tell
`scanning quality is excellent, with crisp
`colors and clean shadows.
`
`Kodak’s 1524 x 1012,1.5 Megapixel
`sensor (the same as used in the DCS 420
`and the old DCS 200), sensitivity from ISO
`100 to 400 for color (200 to 800 for
`monochrome), effective focal length mag-
`nification 2.6, storage on removable
`PCMCIA-ATA cards, 2.3 frames per sec-
`ond for up to 10 frames, voice annotation.
`At just under $12,000, its price is $1,000
`higher than the DCS 420.
`
`The EOS DCS 3, which will be sold by
`Canon, features Kodak’s 1.3 Megapixel
`sensor. Compared to the sensor used in
`the EOS DCS 5, this chip’s larger well size
`delivers higher sensitivity (for an ISO rating
`of 200-1600 in the color model, 400 to
`an impressive 6400 for the monochrome)
`and its larger physical dimensions result in
`a 1.6 focal length multiplier –closer to the
`normal field of view. These characteristics
`provide greater flexibility to handle a wide
`range of shooting environments, which is
`why the Associated Press elected to go
`with them in the NC 2000. The EOS DCS
`3 however features more RAM (16 MB)
`than the NC 2000, for improved burst
`characteristics of 2.7 frames per second
`up to 12 frames. The EOS DCS 3 will sell
`for just under $17,000.
`
`Neither model addresses the two main
`“gripes” we and many others expressed
`nearly a year ago at the introduction of the
`420: While the A/D conversion spec. is
`12 bits/channel, there is still no way for
`users to access the full 12 bits of data, or
`to customize the con-
`version from 12 to 8
`bits. And the acquire
`software –which is
`implemented as a
`Photoshop plug-in – is still not Power Mac
`native, and therefore unnecessarily slow.
`However, with photojournalism and high-
`end documentation dominated jointly by
`Nikon and Canon, these products – which
`are scheduled for April availability – are
`clearly designed to ease the move to
`digital for the portion of the market which
`is heavily invested in Canon bodies and
`lenses. Overall, an instance of smart,
`market-driven incremental product devel-
`opment based on existing technology.
`
`THE EOS DCS 3
`AND 5 ARE MARKET
`DRIVEN PRODUCTS
`
`This joint venture calls for each of the
`partners to sell one of the new models
`(both will sell the future 6 Megapixel
`camera). Kodak will offer the EOS DCS 5
`in three versions –color, monochrome and
`infrared. The unit’s specifications are virtu-
`ally identical to the DCS 420: Based on
`
`© 1995 Future Image Inc., Burlingame CA 94010. Phone: 415-579-0493 Fax: 415-579-0566 America Online: AGFUTURE
`
`4
`
`HTC Exhibit 1006
`
`

`

`SUMMIT REPORT
`
`T H E F U T U R E
`
`I M A G E R E P O R T
`
`TM
`
`V O L U M E 2. I S S U E 9
`
`A REPORT ON THE IMAGE
`COPYRIGHT SESSION AT
`PHOTOGRAPHY IN THE
`DIGITAL SUMMIT II
`By Renee Buck Ohara
`
`FPG’S AVERAGE
`REVENUE PER
`PHOTO INCREASES
`EVERY MONTH
`
`In the wake of the high profile FPG vs.
`Newsday lawsuit, the timely issue of
`image copyright infringements and how
`to combat them is on the minds of many
`these days. After an energizing open-
`ing speech by Barbara Roberts, Presi-
`dent of FPG International, one of the
`nation’s largest commercial stock photo
`agencies, moderator Alexis Gerard
`extracted from the panel members les-
`sons learned in the FPG lawsuit, guid-
`ance in protecting one’s images, a
`discussion on whether increased ac-
`cess or digital technologies are the
`greatest culprits in the increased num-
`ber of abuses today,
`and an interesting jux-
`taposition of tradi-
`tional stock and roy-
`alty-free (RF) CD stock
`business models and
`their financial viability in new media
`markets. Panel members included: Diane
`Fannon, Managing Director of the Still
`Photography Division at The Image Bank;
`Tom Hughes, President of PhotoDisc,
`the leader in royalty-free stock CD-ROM
`products; George Olson, a professional
`photographer in the SF area; and Niel
`Smith Esq., Partner and Intellectual Prop-
`erty Specialist at the law firm of Limbach
`and Limbach in San Francisco. Niel
`recently testified in a preparatory com-
`mittee before Congress about neces-
`sary revisions to the copyright law with
`regard to photographic images.
`
`Barbara Roberts left Wall Street four
`years ago to take the position of FPG
`President. She was looking for a more
`“peaceful, left-brained, calm and cre-
`ative world.” Today she claims to spend
`90% of her time in lawsuits and learning
`new technology. Not exactly what she
`had in mind, but she is clearly the right
`person for the job – in the past 3.5 years
`FPG has grown from a $7million business
`to one with over $30million in revenues.
`
`Roberts stated that FPG has seen a tre-
`mendous increase in its client base and in
`the types of people it serves. She also
`maintains that average revenue per photo
`has increased monthly for the past 2.5
`years. Roberts attributes much of this
`growth to “strategically using new digital
`imaging technologies to streamline the
`way we do work.” We further explored
`this topic with her in a separate conversa-
`tion (see sidebar on page 6.)
`
`Roberts talked of three battles she and
`FPG are fighting: 1. the pricing or finan-
`cial battle, particularly with emerging
`markets and so-called
`new media customers;
`2. the royalty-free stock
`battle; and 3. the
`battle against photog-
`raphy theft or copy-
`right infringement. These three issues
`provided the framework for discussion in
`the ensuing session.
`
` BATTLE #1 PRICING/FINANCIAL:
`According to Roberts, FPG (and most
`other stock agencies) cannot afford to
`sell an image for less than $100/im-
`age. The costs to sustain a staff of 40
`sales people for a transaction-negoti-
`ated business model, the inability to
`resell an image because the original has
`been sent out, and the cost of FedEx
`deliveries make anything less than $100
`infeasible ...“but as more of our images
`are scanned and available in digital
`format, we can lower prices and still
`make some amount of money for photog-
`raphers and ourselves.”
`
`The challenge to stock agencies today is
`pricing projects for new media such as
`interactive kiosks, or CD-ROM, where
`thousands of images may be needed for
`a single multimedia project. Stock agen-
`cies have been often criticized for not
`being realistic in pricing such jobs. How-
`
`ever, Roberts maintains that they have
`found the traditional pricing and legal
`structure to be working, “We use the
`same pricing logic for printed encyclo-
`pedias.” In cases where they deal with a
`new media startup project which can’t
`afford the large upfront costs of image
`leasing, but where FPG has a stake in the
`success of the venture, they will be more
`creative in their pricing strategies. For
`example, they may use more of their own
`images (taken from the several million
`historical images to which they them-
`selves own the copyrights) or they may
`work out a longer term payment structure
`based on product sales. In some cases,
`Roberts noted that “FPG has been able to
`generate higher revenues on new inter-
`active media projects than on compa-
`rable traditional (printed) media.”
`
`At a time when many stock agencies are
`pointing to the cost of digitization and
`questioning the payback, it is heartening
`to know that new technologies are work-
`ing well for at least one major stock
`agency.
`
` BATTLE #2 RF STOCK:
`Though she did not speak directly to any
`competitive threats FPG was feeling about
`RF stock entry into the marketplace,
`Roberts did question the financial viabil-
`ity of the RF stock business model. “The
`way we play with numbers I can’t see
`how this industry is making money at all;
`certainly not significant money.” She
`went on to say that the real reason FPG
`has not looked carefully into RF stock
`publishing themselves are the legal is-
`sues. Roberts maintains that she is al-
`ready sued about 10 times