`Bradium Technologies LLC - patent owner
`Microsoft Corporation - petitioner
`IPR2016-00448
`
`1
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`
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`TABLE OF CONTENTS
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`PART I
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`TECHNICAL PROPOSAL
`
`EXECUTIVE SUMMARY
`
`Objective
`Commercial value
`
`The companies
`THE INNOVATION
`
`Current practice
`
`Concept of the Innovation
`PROPOSED R&D PROGRAM
`
`Analysis of Problem
`
`Proposed Approach
`PROGRAM PLAN
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`PART II
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`BUSINESS‘ PLAN
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`THE MARKET
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`GROWTH OF SALES RATE IN CNS BUSINESS
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`GROWTH IN ADOPTION RATE OF CNS
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`PRODUCT TREND OF CNS
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`EXAMPLE OF 4-TH GENERATION CNS
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`COMMERCIALIZATION - PLANS AND PROSPECTS
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`Domestic Market
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`Product Saies Plan
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`Projected Revenue
`COOPERATION AND BENEFITS
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`DPI
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`3 DVU
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`ORGANIZATION AND MANAGENIENT PLAN
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`Organization
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`Management Process
`THE COMPANIES AND THE PROJECT PERSONNEL
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`ABOUT DAEWOO PRECISION INDUSTRIES CO., LTD.
`General Information
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`Brief History
`Business Division
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`ABOUT 3DVU LTD.
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`General Information
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`PROJECT BUDGET
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`DPI
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`SDVU
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`25
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`2?
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`2
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`PART I
`
`TECHNICAL PROPOSAL
`
`EXECUTIVE SUMMARY
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`3D Visual Map Based Car Navigation System (CNS) Development is a joint
`project between a Korean company, Daewoo Precision industries Co., Ltd.
`
`(hereafter DPI) and an Israel company, 3DVU, Ltd. (hereafter 3DVU) under the
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`KORIL-RDF grant. The purpose of this project is to jointly develop the most
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`realistic car navigation system.
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`The core technologies are;
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`1) Aerial photographs orland satellite imageries which would be able to be
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`stored and formatted to stream down to the car navigation systems graphic
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`display module with limited computing performances and memories while
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`maintaining the original image quality and;
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`2) A new 3D car navigation hardware platform which would be designed and
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`optimized to display a realistic three-dimensional graphics and physical
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`storage (DVD—ROM or HDD) for multi GB of satellite imageries or/and aerial
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`photographs. 3D Visual Map solution utilizes aerial photographs or high
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`resolution satellite images and conventional vector map database with all
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`attributes to produce a realistic three-dimensional car navigation system
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`Obie-ctives
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`The objectives of this joint development is to develop a new generation CNS with
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`the most advanced rea|—time three-dimensional display feature utilizing aerial
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`photographs or satellite imageries.
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`The ultimate goal of a Car Navigation System has been considered to be a
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`system that can be installed in a vehicle and is aimed at helping the driver of a
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`vehicle by giving him/her directions to the desired destinations. However,
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`customers deserve more beyond the original functions of Car Navigation
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`Systems. Customers deserve more realistic map display with fancier graphic
`interfaces.
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`In conventional car navigation systems, the map nonnally consists of line
`segments (links), points (nodes), polygons, texts, symbols, and icons to
`represent the world. However, such simplified vector map graphics are often too
`simple to draw the real world, which is in a complex series of various land cover
`types and shapes. However, high resolution satellite imageries or aerial
`photographs show the world as it is with all the shapes, colors and textures
`enabling the driver “landmark navigation." Simply, satellite imageries or aerial
`photographs provide much more information to the drivers.
`
`Displaying high resolution satellite images or aerial photographs in its full
`resolution used to require workstations with high CPU performances and
`memories with specialized visualization software. Therefore, it has been
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`regarded to visualize the high resolution satellite images or aerial photographs in
`Car Navigation Systems since most embedded digital devices nonnally utilize
`very limited CPU performances and memories compared to PCs or workstations.
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`However, 3DVU successfully developed and commercialized a visualization
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`solution to display a massive 24-bit full color raster images without diminishing
`the original image quality with an embedded device of very limited CPU
`performances and memories.
`
`To achieve the goal of this project, 3DVU and DPI are ideal strategic partners in
`terms of technological and marketing capabilities.
`
`Daewoo Precision Industries is the first company developed and commercialized
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`car navigation systems in Korea. DPI has also set important milestones in
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`Korean Car Navigation history. For instance, DPi is the first company developed
`and commercialized the 122,500 scale detailed town map, DVD-ROM based full
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`3-D CNS with real building textures and shapes, and the English car navigation
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`system.
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`Throughout?’ years of experience in the business, DPI has a full capability of
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`digital mapping and GIS engineering, application software development, graphic
`controls, data conversion, hardware design and manufacturing, porting and
`testing, and graphic interface designs. Both 3DVU and DPI have thoroughly
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`reviewed each other’s technological capabilities and came up with a full
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`confidence to develop another milestone product satisfying the progressive
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`customers’ needs in automotive industries. DPI is committed to become the
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`world leader in car navigation system manufacturer by providing the most
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`advanced products and services to the global market.
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`Commercial Value
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`Since DPI first developed and commercialized the Car Navigation Systems in
`1997, DPI has shown steady sales records. In year 2002, DPI sold more than
`20,000 units. Approximately 60% of sales were generated by automotive
`manufacturing customers for O.E.M uses each year. In other words, more than
`12,000 units are demanded by automotive industries for O.E.M. uses.
`
`Ssangyong Motor Company, one of the major OEM customers, produces luxury
`passenger cars (Chainnan), luxury SUVs (Rexton and Korando), and luxury
`minivans (Rodius). Ssangyong Motor Company is committed to be the market
`leader in the high—end luxury vehicle segment in Korea rather than producing
`economic cars. Thanks to its unique high-end luxury policy, Ssangyong Motor
`Company deserves the most advanced and unparalleled Car Navigation
`Systems differentiating from the competitors withstanding the higher costs.
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`Due to the reason above, DPI is prospecting this particular project as a precious
`opportunity to develop the most advanced high-end Car Navigation System
`product exceeding Ssangyong Motor C0mpany’s high-end standards if this
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`project is funded and completed successfully. It would be reasonable to say that
`the Ssangyong Motor Company alone demands over 10,000 units each year at
`$1,000 per unit. In other words, revenue of 10 Million U.S. Dollars can be
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`generated each year from a single O.E.M customer. DPI is also prospecting GM-
`Daewoo Auto & Technology's positive evaluation on the 3D V"1sua| Map Based
`Car Navigation System for their new high-end luxury passenger car to be
`unveiled shortly.
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`<DPl’s Sales Estimation in Domestic Market over 2006 - 2010>
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`Total
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`'
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`
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`W33
`$09,000
`$29,000
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`$10,000
`$7,000
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`
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`Aftermarket
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`
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`Other Portable
`
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`$3-235 W0
`$12,000 $12,000 $14400
`$5,000
`$0,000
`$0,000
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`Besides O.E.M business, we have the plan to develop portable navigation
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`system which is another solution as aftermarket products in CNS market. Annual
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`sales of portable navigation in Korea is around 50,000 -- 80,000 units per year.
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`The result of this cooperation can be also applied to some modifications.
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`The Comgnies
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`The companies, in this joint development are Daewoo Precision Industries Co..
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`Ltd. and 3DVU. Both DPI and 3DVU have strong backgrounds and technological
`breakthroughs in their respective areas.
`
`DPI is a major Tier—1 O.E.M. supplier for Ssangyong Motors and GM-Daewoo
`
`Auto & Technology in Korea. Moreover DPI is the only supplier for car navigation
`system, having its own digital map and POI (point of interest) databases, full
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`capabilities of hardware design and mass production, and car navigation
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`application software engineering in Korea.
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`3DVU is the advanced research development and integration center for 3DVU.
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`3DVU (registered in October 2000) has created the most efficient large, high-
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`resolution color image streaming technology with full 3D maneuver capabilities
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`for geo—referenoed content and commerce.
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`3DVU has developed a patented enabling technology platform of packet data
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`streaming over Internet Protocol, for aerial or satellite geo—referenced imagery
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`for wired or wireless location based applications and services, mobile commerce
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`and advanced wireless and Internet products and services.
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`3DVU offers the world's most sophisticated and optimized image streaming with
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`3D maneuverability for digital navigation systems. The company's strategic
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`partners include car navigation makers, mapping data and point of interest
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`providers, aerial and satellite imagery sensing entities.
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`The relationship of the two companies started through the introduction of each
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`other through KORIL-RDF's program. With 3DVU's patented imagery
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`technologies and experience and expertise in the field of GIS and remote
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`sensing, two key components in this innovation, the two companies found
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`synergy in coming together to combine efforts to create a complete and
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`innovative solution for the car navigation market. 3DVU's successful reviews on
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`Daewoo Precision’s software development and hardware development
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`capabilities
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`Korea ranked No.6 in automobile manufacturing worldwide and has a fast
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`growing market in the automotive industry. The need of the sophisticated car
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`navigation system is growing quickly so It will be easy to dominate the market if
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`we benefit from the synergy combining the 3DVU and DP|'s technologies in the
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`car navigation system.
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`THE INNOVATION
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`Current Practice
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`Since CNS was first introduced to the Korean market in late 1990’s, CD-ROM
`drive was used as the map storage device; consequently a very compact map
`storage format was required due to the slow access speed of CD-ROM. Although
`DVD-ROM drive was introduced in the late model Car Navigation Systems with a
`higher data access speed, the data access speed is not always sufficient for a
`high speed display. Moreover, since Car Navigation Systems commonly utilizes
`processor chipsets, memories, and operating systems of very limited
`performances, the data had to be simplified to meet the reasonable level of
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`performance.
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`As mentioned above, a complex vector dataset heavy in size could diminish the
`high speed display performances. Not to mention, a raster data in higher data
`size due to high pixel dimensions requires more rapid data access speed and
`higher CPU power and memories to display. For high resolution satellite images
`or aerial photographs that are in gigabytes of pixel dimensions, it has been
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`regarded impossible to display in the embedded system with limited hardware
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`and software performances. Image compression was considered to be the only
`method to display huge raster images until 3DVU has developed its unique
`Packet Data Streaming technology. However, compression requires a high
`computing power to compress and decompress the image. For instance, a
`compression engine compresses a raster image of 10 gigabytes with 1:20
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`compression ratio to 500 megabytes, a real time display of the 500-megabyte
`image in an embedded device with limited computing performances is still
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`impossible. Thus, no one has ever developed a Car Navigation System without
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`3DVU‘s Packet Data Streaming technology.
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`(a) Conventional Map (Past model : 15‘ and 2”“ generation )
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`(b) Conventional Map (Current Model : 3"’ generation)
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`-Artificial 3D Buildings! Landmarks
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`
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`Above pictures show the screnshot f DPI odel, W150 for S
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`(c) Future Map Solution(Future Model : 4"‘ generation)
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`- Real image Display: "3D Wsual Map
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`
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`Moreover, in the navigation software structure, there are so many processes to
`meet function requirements like map display, route calculation, route guidance,
`map matching and information search simultaneously. Therefore, the computing
`power and memories cannot be allocated for certain function like map display,
`but should be allocated to run all required processes.
`
`Until now, the only successfully commercialized car navigation system using
`aerial photographs is from Denso and Kenwood in Japan. So called, 4th
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`generation car navigation system enables the driver to feel more realistic senses
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`(about the terrain). 3DVU was implemented already in CNS in Japan. The
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`figures below show that the actual screen of the HDV-910 (the highest grade
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`model from Kenwood).
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`3DVU provides 3D Visual Map“ patented “Packet Data Streaming" technoiogy
`to replace static mapping with real high definition imagery (satellite/aerial) for all
`devices, including PCs, PDAs, In-Car Navigation Systems and mobile handsets,
`providing an interactive ability for people to view visual maps with motion (like a
`bird flying) and change the face of mapping. All is accessible over narrowband
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`communication with extremely thin client viewer, as a software only solution with
`no hardware support, including DirectX, DireotDraw or OpenGL support.
`
`To make a supplementation in developing high speed and big size display
`performance DP! will change map storage from CD drive to DVD drive or HDD.
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`Because of different user environment of DVD or HDD in office computers, DVD
`and HDD should guarantee the automotive environment
`like very high/low
`temperature condition(-30 degrees -- 80 degrees in Celsius) and many types of
`vibration condition. That will be also another barrier for a new development.
`
`Concept of the Innovation
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`3DVU‘s competitive edge is it's technical and market advantages. Multiple
`Patents and high technical barriers to entry protect 3DVU's Intellectual Property.
`
`The following is what sets 3DVU apart.
`
`0 3DVU’s technology is based on proprietary Packet Data Streaming (PDS)
`Technology, overcoming limitations posed by compression. 3DVU can
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`stream unlimited image sizes in terms of area of coverage, pixel count and
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`color depth.
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`0 3DVU Visual Map can be streamed for instant view over Narrowband
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`Communication. 3DVU agnostic to the communication medium (wire and
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`wireless.) as well as method (Cellular, Wi—Fi, Bluetooth, etc.).
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`0 The streamed image can be displayed simultaneously on multiple digital
`devices. Even devices with limited computing power, in terms on processing
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`power and memory, can display 3DVU visual map.
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`The streamed image can be displayed on in—car navigation system. There is no
`need for a special graphic chipset such as 3D accelerator, despite the fact that
`3DVU visual map provides 3D perspective display and 3D maneuverability over
`the image. 3DVU is a software only solution that can be easily ported to a variety
`of devices and operating systems.
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`PROPOSED R&D PROGRAM
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`Analysis of Problem
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`Current customer requirements of the future CNS is not only accuracy for the
`digital map but also actual feeling of the digital map. To assure the correct
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`guidance for the driving direction, digital map should supply image visualization
`like aerialfsatellite photograph.
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`Although image visualization has benefited its customers, control of that images
`is highly limited by following reasons.
`
`High—reso|ution imageries, although information is rich, poses great challenge
`when it comes to making the same available to the user. The reason is the large
`data size. For example 24-bit color IKONOS satellite imagery for an area of 10
`Km. X 10 Km at ‘lmeter per pixel resolution would have a size of 300 MB. A
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`larger area or an aerial imagery at 25cm/pixel resolution or higher will have
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`larger image size accordingly. Further imagery with higher infonnation content,
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`such as, number of bands, the bits used to represent each image pixel, the
`image format used to store image etc. would increase the size of the image for
`given area. The size of the images archives is growing at a fast rate and the
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`concerned agencies are challenged with the storage problems leave aside the
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`processing of such data.
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`At current status, there are some reasons not to use digital images in the CNS.
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`0 Requirement of digital image related knowledge.
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`0 Huge data size of high resolution digital images and long processing time for
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`digital image database.
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`0 Requirement of high speed computing;
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`Generally speaking, the digital image visualization has been considered to be
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`not suitable for the car navigation system.
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`Progosed Approach
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`3DVU vision is to change the face of mapping from vector lines and color shades
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`to real imagery — satellite or aerial imagery. 3DVU believes that the Image is the
`Map and the Map is the Image. 3DVU called its technology — Visual Map”
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`3DVU has developed a patented technology to stream unlimited image and
`display it on limited computing devices for better navigation. This is done by
`linking each pixel on the image taken from satellite or aircraft to their geographic
`position. This Geo-Link process makes the image into very accurate digital map,
`where geographic references elements can be placed in their geographic
`position on the image. Such geo—referenced elements can be point of interest
`(POIS), route, etc.
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`Above is generic illustration of 3DVU ability to fuse multiple dataset and bring
`them all on the user display.
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`One of 3DVU key technical capabilities is the ability to deal with unlimited image
`size for streaming and display on very limited computing capabilities digital
`devices such as car navigation systems.
`
`For this, 3DVU developed a technology that converts such unlimited imager to its
`proprietary file format. This process addresses the need to create only once a
`file that is optimized for streaming with multiple resolutions to be display in
`dynamic 3D view on the device.
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`All images are very large in size. For example, aerial photography covering a
`small area of 10 by 10 Km is approximately 10Gb is size. In comparison a vector
`data for the dame area may require only a few Kb.
`
`In order to handle such large size imagery associated with city wide imagery.
`and in order to accommodate the need of embedded devices where the storage
`space is limited, 3DVU has developed its proprietary compression scheme as
`part of its image compilation process that can reduce the image size by a factor
`of 1:12.
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`In the user device 3DVU developed an efficient and extremely thin application
`program interfaces that comprised of 3DVU proprietary software based 3D
`engine, streaming agent and decoder (uncompress) and real—time filters to
`enhance the image quality and change the image tone to reflect the time of day.
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`Development of D1‘giral Image Disgglgy
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`The transgression from the vector map to the digital image integrated map in the
`car navigation system require the following technologies
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`0 High speed readlwrite and the file size reduction of the digital aerial/satellite
`photography.
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`0 Enable fast zoom in/out and scroll of the map
`
`I Zooming image in/out by using only single image DB than using the multi DB
`for each map level.
`
`I Filtering technologies
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`Though the use of the aerial/satellite photos drastically enhanced realism, still
`the image is plain, 2D, and orthphoto. ( Major cross section and neighborhood
`buildings reflects the real data(height?) but not for the terrain)
`
`0 One of the possible solution to deal with the orthphoto is adding a "Visual
`Elevation”. It can increases the realism dramatically.
`
`
`
`From the above photos, we can easily see the terrain look extremely realistic.
`Based on the current hardware performance and capabilities, Application of this
`technology will be feasibie after 2 or 3 years. The full use of the this technology
`will guide us to the 4th generation in-car navigation system and it will definitely
`different from the previous generation navigation system like,
`
`0 Integration with 3D vector data and photograph
`
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`0 Integration with Contour_Line Data
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`0 Multiple Sky Texture — Daytime I Night 1 Season
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`By development and acquisition of the 3rd car navigation system based on the
`aerial ortho—photograph will enable us to develop the next generation system
`more easily in the future.
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`PROGRAM PLAN
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`Project Plannig
`Project Planning
`MEN,
`Project Mana_tgement____
`3
`Project Contract
`4
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`9 Design
`Coding and Debug
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`Ul Specifieations
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`18
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`PART II
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`BUSINESS PLAN
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`THE MARKET
`
`An increasing need for digital map service in the present mobile platforms will be
`essential to most mobile devices, such as CNS, PDA and smart phone and
`therefore the development of digital map database will be prerequisite for mobile
`device industry. A tendency can be found in nowadays, is adopt network in
`current car navigation. It is required new media that is writable as well as
`
`readable, to meet this new trend.
`
`A read only CD has been still equipping in-car navigation system since the early
`type of in-car navigation. However, its storage capacity has become insufficient
`to digital map DB of current high end in-car navigation systems, DVD is now
`being adopt as a large storage media of high end products. in addition to the
`need for the storage capacity media, writable media becomes also in need, to
`realize interactive car navigation. The flash based SD memory or micro HDD will
`soon be generally installed in car navigation system.
`
`Forecasts of the trend in the car navigation industry is
`
`0 Move to 2.5D graphic technology from existing 2D graphics, and the display
`eventually evolves to 3D graphics.
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`0 To make the utmost 3D effects, the aerial/satellite photography will be
`adopted.
`
`0 In the case of Japan, the actual price of high positioned CNS is about US
`$2,000. Although in the near future, the price of CNS will be in a little decline,
`total sales are going up, because the adaptation of CNS will be enlarged to
`even small passenger cars.
`
`Projected tendency of mobile devices in the telecommunication industry is;
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`I With no or the slightest modification, 3D Visual Map technology can be bring
`into practice to PDA and smart phone.
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`0 The applications related to 3D display will play a great part, as a killer
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`solution, in DMB and other mobile internet devices.
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`19
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`
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`Growth of sales rate in CNS business
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`In-car Navigation Systems Sales 2001-2010
`Benchmark Europe! USF .hpani Giina
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`3500 _
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`2000
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`‘(I00units 1500
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`soon
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`2500
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`1000
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`2001
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`2002
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`2003
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`2004
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`2005
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`2008
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`2007
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`2008
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`2009
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`2010
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`II
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`Jo nan
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`in-car navigation market of Japan, is very matured and the biggest market in the
`world. In-car navigation system sales 2001-2010 chart shows the annual
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`production of in-car navigation system in Japan is more than 2,500,000 sets.
`About 50% of the production is O.E.M parts for Japanese car manufactures, and
`the remains are the aftermarket products. Obviously, Japanese manufacturers of
`in-car navigation system have been producing their products with the highest
`level of technology.
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`0 Euro 9
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`Different from the car navigation market in Japan, European Manufactures have
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`been specialized in aftermarket products. The annual production in Europe in
`2004, is about 1,600,000 sets. As shown as above chart, Europe will increase to
`the largest market in 2008.
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`0 North America
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`The annual production of in-car navigation system in US in 2004, 2 years behind
`Europe, is about 800,000 sets.
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`0 China
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`The annual production of in—car navigation system in China is small yet. However,
`we expect China will be under fast growth over next decades.
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`0 Korea
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`O.E.M and aftermarket productions of in-car navigation system in Korea in 2004
`are 40,000 sets and 80,000 sets respectively.
`
`Growth in adoption rate of CNS
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`,9.
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`# of 2984 Vehicles Gffering
`Navigation by Segment {in ‘eons;
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`Vehicles Offering Nev Vehicies Not Offering Nav
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`The chart shown above is adoption growing in US in 2004. Factory equipped
`(OE) car navigation systems are gaining more and more preference than the
`aftermarket car navigation systems. And they are becoming nearly one of
`standard equipment in the new car.
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`As show as above chart, adoption rate in luxury passenger car is at the highest.
`SUV shows a high adoption rate as well.
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`Besides the market of PDA based car navigation is also growing as aftermarket
`equipments. This is the common trend around world, only except for Japan.
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`2 ‘
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`Gyro 3. ops
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`Product Trend of CNS
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`1’
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`Map
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`Road Map
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`30 Building
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`Telephone DB.
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`Map
`Contents
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`Road Map
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`3D Building
`Telephone DB.
`Address DB.
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`Road Display
`Detail Town Map
`Road Display
`Real Feeling Map
`Detail Town Map
`--------------------------------------------
`Route Calculation
`Route Calculation
`Route Guidance
`Route Guidance
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`Navigation
`Function
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`Road Display
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` Route Calculation
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`Road Display
`Detail Town Map
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`Route Guidance
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`Abundant Info.
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`Abundant Info.
`Traffic Info.
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`According to the about product function trend, most car navigation manufacturers
`are focus on the map display and make product attractive for sales promotion.
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`Example of 4th Generation CNS
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`@
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`Year!Month
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`200312
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`
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`Retail Price
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`3‘l2,400Yen
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`
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`Actual Price
`(2004.12)
`
`193,000Yen
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`COMMERCIALIZATION - PLANS‘ AND PROSPECTS
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`Domestic Market
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`DPI has been supplying OE in—car navigation systems to Ssangyong Motor
`Company and GM Daewoo Auto & Technology, and selling car navigation
`systems and PDA solution as aftermarket device.
`
`Product Sales Plan
`
`0 DPI has 80,000 sets of annual manufacturing capacity in car navigation
`systems, and has been supplying car navigation systems to Ssangyong
`Motor Company and Gil/|—Daewoo Auto 8. Technology. Total volume of car
`navigation systems as OEM, is 15,000 sets in 2004.
`
`0 An increase in sales will be realized by applying the new technology, widely
`being used now, to car navigation systems for aftermarket and PDA.
`
`Proiected Revenues
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`Although, the retail price of digital electronic appliances is dropping year by year,
`a new high end in-car navigation system with 3D visual map technology will
`prevent the inevitable fall in the price of navigation systems. Thus, not only
`sufficient chances of revenue, but also increase in sales, by applying the
`navigation technology to PDA, seem in prospect.
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`Projected sales of 3D visual car navigation systems over the next several years
`are same as following table.
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`E‘ 0 ii;
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`1!.
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`After Market
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`2,453
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`3,500
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`$23,870,000 $25,300,000
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`US $1,100 of unit price is supposed.
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`23
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`COOPERATION AND BENEFITS
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`Both companies are bringing depth in their respected fields in both technical and
`commercial to this project. The cooperation between the two companies will
`elevate current CNS Map display technology and will expand its market reach
`and potentials beyond traditional CNS systems available today.
`
`The integration of 3D photo image visualization, coupled with current CNS map
`display, will be the first plationn in Korea and a new set of tools and capabilities
`will be developed as a result of this joint project.
`
`As a result of this project, both company will be in unique position in that
`business fields and will have the chance to apply this result to LBS, Telematics
`system also.
`
`DPI
`
`0 Without any increase the engineers and any development for 3D photo
`image visualization, DPI can quickly develop and commercialize new product
`
`0 Provide highly attractive sales point to the customer
`
`0 With the result of this project there are many applications like PDAfPortable
`CNS, LBS (Location Base Service) & Telematics Platform.
`
`3DVU
`
`0 By supplying core technology of 3D photo image visualization and DPI sales
`promotion DVU can get stable position in commercially.
`
`0 Response from product 3DVU can get more realization information for the
`
`technology and 3DVU can use DPI as a reference site.
`
`The benefits of this project will be majored by its commercial success. Both
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`companies strongly believe that collaboration and joint project as presented here
`has a clear path to profitability in relatively short time span.
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`24
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`24
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`ORGANIZATION AND MANAGEM