`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`COSTCO WHOLESALE CORPORATION,
`Petitioner,
`
`¥,
`
`ROBERT BOSCH LLC,
`Patent Owner.
`
`DECLARATION OF MARTIN KASHNOWSKI
`
`Robert Bosch Exhibit 2007
`Page I
`COSTCO(Petitioner) v. ROBERT BOSCH(Patent Owner)
`IPR2016-00034; IPR2016-00036; IPR2016-00038;
`IPR2016-00039; [PR2016-00040; IPR2016-00041
`
`
`
`I, Martin Kashnowski, hereby declare as follows:
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`1.
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`[am employed as Director, Commodities Management for Robert
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`Bosch LLC.
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`[ was previously employed by Robert Bosch LLC as Director of
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`Product Management for Wiping Systems, and had been working to various
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`degrees in that capacity since 1993.
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`2.
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`When I began working with wiping systems in 1993, I was working
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`exclusively with what are now commonly referred to in the industry as
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`“conventional” wiper blades. These blades have a numberof disadvantages
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`compared to what are now commonly referred to as “beam”or“flat” wiper
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`blades. For example, the conventional blades can be clogged with ice and snow,
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`whichcan cause the blade to freeze and stick and lead to banding, which can result
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`in poor visibility. For another example, conventional blades are also proneto
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`wearing unevenly, with the portion of the wiper strip underneath the pressure
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`points wearing first, which can lead to streaking and poorvisibility. All of these
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`problems with conventional wiper blades were well known in the industry, but
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`solutions to those problems were not.
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`3.
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`In 2002, Bosch introduced a wiper blade called Aerotwin to the
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`automotive aftermarket, first in Europe and then in the United States. The
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`Robert Bosch Exhibit 2007
`Page 2
`COSTCO(Petitioner) v. ROBERT BOSCH(Patent Owner)
`IPR2016-00034; IPR2016-00036; IPR2016-00038;
`IPR2016-00039; IPR2016-00040; IPR2016-00041
`
`
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`Aerotwin blade wasthe first commercially successful beam blade in the U.S.
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`aftermarket and it was given a numberof awards by industry groups, including
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`both the Pace award and the Automechanika award. The Pace award particularly
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`mentioned the use of a flexible spoiler on the Aerotwin blade. As far as I know,
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`there were no commercially viable beam blades prior to 2002.
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`4.
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`One disadvantage of the Aerotwin product was that we needed
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`approximately 75 to 80 different part numbers (physically different blades) to fit
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`the different applications (car model years) for which we wereselling the Aerotwin
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`wiperblades(at that time, these were primarily European cars). The different part
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`numbers were necessary because different cars have differently shaped
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`windshields, and because the Aerotwin blade was very sensitive both to air
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`pressure and to the shape of the windshield. Some windshields are shaped in
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`complicated ways and, for example, have depressions that can’t be seen with the
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`naked eye yet affect wiping quality. So Bosch custom-made each different
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`Aerotwin part number to work on a specific application.
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`5.
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`In 2005, Bosch introduced the Icon wiper blade to the U.S.
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`aftermarket. The Icon blade was a beam blade designed to cover more applications
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`with fewer part numbers than the Aerotwin blade. The demand from our
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`Robert Bosch Exhibit 2007
`Page 3
`COSTCO(Petitioner) v. ROBERT BOSCH(Patent Owner)
`IPR2016-00034; IPR2016-00036; [PR2016-00038;
`JPR2016-00039; IPR2016-00040; IPR2016-00041
`
`
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`customers for the Icon blade was considerably high, even though it was more
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`expensive than conventional blades. Customers were more excited for the Icon
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`product than for any other automotive product I had been involved with.
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`6.
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`Both the Aerotwin blade and the Icon blade included a flexible spoiler
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`with diverging legs mounted on the top of the blade, as well as plastic end
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`caps. Bosch tested these products extensively before releasing them. One aspect
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`tested was noise. The Bosch beam blades were quiet in operation, including when
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`the wiping direction changes and the wiperstrip flips from oneside to the other.
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`Those features were part of the reason for the great customer demand for these
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`products. Both products solved many of the problems associated with
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`conventional blades.
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`7.
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`The commercial success of the Icon product was in contrast to the
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`failure of a competitor’s beam-blade product, the Trico Innovision wiper
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`blade. The Trico product was introduced in 2004, before Icon, but it failed in the
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`marketplace. The Trico product included neither a flexible spoiler nor end caps.
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`8.
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`In 2006, Bosch’s sales of the Icon product were approximately $17M;
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`in 2007, they were approximately $24M, and in 2008, approximately $28M. These
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`sales figures are significant in the context of aftermarket wiper blades. In 2008,
`
`Robert Bosch Exhibit 2007
`Page 4
`COSTCO(Petitioner) v. ROBERT BOSCH (Patent Owner)
`IPR2016-00034; IPR2016-00036; IPR2016-00038;
`IPR2016-00039; [PR2016-00040; IPR2016-00041
`
`
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`the Icon product was given the Frost & Sullivan award for innovation. At that time
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`Frost & Sullivan was one of the more prominent automotive research
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`organizations.
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`9.
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`Boschcreated an entirely new and tremendously successful market
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`category when it introduced Aerotwin and Icon. But within a year, knockoff
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`products that to me looked identical to Icon appeared in the United States. In
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`particular, like the Icon blade, the knockoff products included spoilers with
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`diverging legs similar to that shown on the cover of United States Patent No.
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`6,944,905, as well as end caps.
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`10.
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`Ihave previously testified about many of the issues discussed above
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`in connection with various lawsuits in which Robert Bosch LLC sought to defend
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`its patent rights related to beam blades, including at the 2010 trial of Bosch’s case
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`against a company called Pylon. Despite Bosch’s efforts, however, competitors
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`continued to sell knockoff products that appeared to me to be copies of Bosch’s
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`aftermarket beam blades, including Icon and its successor products such as the
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`Evolution wiper blade.
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`11.
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`However, the industry is now largely respectful of Bosch’s beam-
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`blade patent rights. All of Bosch’s major competitors have madelicensing
`
`Robert Bosch Exhibit 2007
`Page 5
`COSTCO(Petitioner) v. ROBERT BOSCH (Patent Owner)
`IPR2016-00034; IPR2016-00036; IPR2016-00038;
`IPR2016-00039; IPR2016-00040; IPR2016-00041
`
`
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`agreements with Bosch related to Bosch’s beam-blade patents. Boschhas received
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`more than ${in settlement and royalties from these agreements, as well as
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`agreements with smaller competitors. The patents specifically licensed in most of
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`these agreements include United States Patent Nos. 6,292,974; 6,944,905; and
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`6,973,698.
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`12.
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`In signing this declaration, I recognize that the declaration will be
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`filed as evidence in a contested case before the Patent Trial and Appeal Board of
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`the United States Patent and Trademark Office.
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`I also recognize that I may be
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`subject to cross-examination in the case and that cross-examination will take place
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`within the United States. If cross-examination is required of me, | will appear for
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`cross-examination within the United States during the timeallotted for cross-
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`examination.
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`I hereby declare under the penalty of perjury that the foregoing is true and
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`correct.
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`Dated: 7-22-ZolG
`
`ELLEZA
`
`Martin Kashnowski
`
`Robert Bosch Exhibit 2007
`Page 6
`COSTCO(Petitioner} v. ROBERT BOSCH (Patent Owner)
`IPR2016-00034; IPR2016-00036; [PR2016-00038;
`IPR2016-00039; IPR2016-00040; IPR2016-00041
`
`