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UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`APPLE INC.,
`Petitioner,
`
`v.
`
`COREPHOTONICS, LTD.,
`Patent Owner.
`____________
`
`Case No. IPR2020-00905, IPR2020-00906
`____________
`
`DECLARATION OF ERAN KALI
`
`APPLE V COREPHOTONICS
`IPR2020-00905
`Exhibit 2013
`Page 1
`
`

`

`I, Eran Kali, do hereby declare as follows:
`
`1.
`
`I am a co-founder of and the Vice President of Sales and Licens-
`
`ing for Corephotonics, Ltd. (“Corephotonics”), the Patent Owner in these pro-
`
`ceedings.
`
`2.
`
`I make this declaration on the basis of personal knowledge, and
`
`if called and sworn as a witness, I could and would testify as set forth herein.
`
`3.
`
`I am familiar with Corephotonics’ business and with the matters
`
`discussed in this declaration.
`
`Corephotonics’ Business
`
`4.
`
`I co-founded Corephotonics in 2012 to develop the next genera-
`
`tion of mobile phone cameras.
`
`5.
`
`In 2012, Corephotonics developed an innovative dual-aperture
`
`camera system that uses two fixed-focal length lenses, one being a wide-angle
`
`lens, and the other being a miniature telephoto lens. Through the use of imag-
`
`ing data from two cameras to produce a single image, Corephotonics’ tech-
`
`nology offered enormous improvements over conventional camera systems
`
`for smartphones in both optical resolution and image zoom performance. At
`
`the time, single-aperture camera systems were typical, and zoom functionality
`
`1
`
`APPLE V COREPHOTONICS
`IPR2020-00905
`Exhibit 2013
`Page 2
`
`

`

`on phones with single-aperture cameras was achieved by digitally manipulat-
`
`ing the image data captured by the camera to generate a “zoomed” photo.
`
`6.
`
`A significant drawback to the conventional technique was that
`
`the “zoomed” photo had poor image resolution (because, essentially, the
`
`smartphone’s processor and software was just magnifying a portion of a cap-
`
`tured image to approximate the effect of a zoomed-in image). With Corepho-
`
`tonics’ dual-camera system, the second telephoto camera provides much
`
`higher optical resolution than the first wide angle camera, and the imaging
`
`data from the telephoto camera can be combined with imaging data from the
`
`wide angle camera to create an effectively greater level of zoom without de-
`
`grading image quality.
`
`7.
`
`Corephotonics also developed an image processing techniques
`
`for video that minimized the transition jump (e.g., in recorded video or in a
`
`camera viewfinder) in a video stream when the video switched between one
`
`camera and another during zooming up or down. Corephotonics also devel-
`
`oped, for still images, an image fusion technique that combined image data
`
`from two cameras to create an improved, higher quality, and higher resolution
`
`image than would otherwise be possible with one camera.
`
`2
`
`APPLE V COREPHOTONICS
`IPR2020-00905
`Exhibit 2013
`Page 3
`
`

`

`8.
`
`Corephotonics now employs 80 staff, the majority of whom are
`
`engineers, scientists, and technologists, who continue to develop Corephoton-
`
`ics’ innovative camera technologies for mobile devices and explore new ap-
`
`plications for its technologies.
`
`9.
`
`Currently, Corephotonics’s core technologies can be divided into
`
`six categories: (1) tele camera optics; (2) folded camera optics; (3) folded
`
`camera actuation and optical image stabilization; (4) image fusion between
`
`multiple imagers; (5) depth mapping, (6) smooth camera transition; and (7)
`
`collapsible compact cameras allowing large sensors with compact form in
`
`smartphones. (not public). Public information about these technologies is
`
`available on Corephotonics’s website, at https://corephotonics.com/inven-
`
`tions/ (accessed Jan. 27, 2021):
`
`
`
`3
`
`APPLE V COREPHOTONICS
`IPR2020-00905
`Exhibit 2013
`Page 4
`
`

`

`10. Corephotonics has filed for and received numerous patents for its
`
`advanced lens designs, multi-camera systems, and optical image processing
`
`techniques. Over 190 granted or allowed (in at least 8 countries) and over 160
`
`additional filed. Corephotonics today continues to develop multi-aperture
`
`camera and image processing technologies and has filed for and obtained pa-
`
`tents on those technologies as well.
`
`Corephotonics’ Technology Widely-Recognized as
`Innovative and Valuable
`11. Part of Corephotonics’ business involves the licensing of its tech-
`
`nology to customers in mobile device/smart phone space. Since 2014, Core-
`
`photonics has successfully licensed its technology to numerous smartphone
`
`OEMs and component manufacturers.
`
`12.
`
`
`
`
`
`13.
`
`In 2015-2016, Corephotonics signed technology licenses with
`
`multiple companies, including:
`
`; (2) Samsung Electro-Mechan-
`
`ics Co., Ltd. (“SEMCO”); (3) OPPO Mobile Telecommunications Corp., Ltd.
`
`(“OPPO”), a leading handset designer and manufacturer based in China; (
`
`
`
`4
`
`APPLE V COREPHOTONICS
`IPR2020-00905
`Exhibit 2013
`Page 5
`
`

`

`
`
`
`
`
`
`
`
`14.
`
`In 2017, Corephotonics signed licenses with many more OEMs
`
`and phone manufacturers, including:
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`15.
`
`
`
`5
`
`APPLE V COREPHOTONICS
`IPR2020-00905
`Exhibit 2013
`Page 6
`
`

`

`16.
`
`In 2019, Corephotonics was acquired by Samsung Electronics
`
`Benelux BV for approximately $155m.
`
`Apple’s Efforts to License Corephotonics’ Technology
`
`17. Apple Inc., whom I understand is the Petitioner in this proceed-
`
`ing, had a years-long relationship with Corephotonics which started in early
`
`2012. This included a prolonged chapter of intense technology exchanges dur-
`
`ing 2013-2014 and at least two cycles of explicit licensing negotiation in 2014
`
`and again in 2016. Corephotonics spent years demonstrating its technologies
`
`to Apple and discussing potential business arrangements.
`
`18. As part of that years-long process, Corephotonics provided
`
`highly confidential technical information and device samples to Apple, in-
`
`cluding, for example, “black box” simulation programs for testing and ana-
`
`lyzing Corephotonics’ lens performance and imaging algorithms. An
`
`elaborate suite of tests was mutually composed by Apple and Corephotonics
`
`specifically to test Corephotonics’ image fusion and smooth transition algo-
`
`rithms and techniques. Apple was initially skeptical of the compliance of such
`
`techniques to smartphone usability (see Exhibit 2008, Graham Townsend’s
`
`reference to “fierce debate what is permissible for an Apple product”) but
`
`6
`
`APPLE V COREPHOTONICS
`IPR2020-00905
`Exhibit 2013
`Page 7
`
`

`

`ultimately used fusion and smooth transition in all zoom dual camera iPhones
`
`fromiPhone 7+ to most recent iPhone 11 models.
`
`19. Between 2012 and 2017, Apple and Corephotonics had numer-
`
`ous meetings, calls, and communications to discuss Corephotonics’s technol-
`
`ogies. I provide below a small sample of the communications Apple and
`
`Corephotonics had.
`
`20. On May 23, 2013, an Apple engineer,
`
`, emailed Core-
`
`photonics and expressed interest in learning more about Corephotonics’s tel-
`
`ephoto lens for a dual-aperture camera system and associated software
`
`algorithms. A true and correct copy of that email is attached as Exhibit 2011.
`
`A second email from
`
` followed that same day, a true and correct copy
`
`of which is attached as Exhibit 2012.
`
`21.
`
`In June 2014, in advance of a meeting with Apple engineers and
`
`executives, Corephotonics provided a confidential presentation to Apple pro-
`
`posing to Apple to license its “fusion technology along with additional com-
`
`ponents related to zoom.” A true and correct copy of that presentation is
`
`attached as Exhibit 2006. At this early stage “fusion technology” was a blan-
`
`ket term for the dual camera imaging software including both still image
`
`7
`
`APPLE V COREPHOTONICS
`IPR2020-00905
`Exhibit 2013
`Page 8
`
`

`

`fusion and the smooth transition technologies which were deeply evaluated
`
`by Apple by this stage.
`
`22.
`
`In August 2014, an Apple executive sent an email requesting a
`
`list of items from Corephotonics, including Corephotonics’s code for image
`
`fusion technologies. A true and correct copy of an email chain containing that
`
`email is attached as Exhibit 2007.
`
`23.
`
`In March 2015, in the context of technical discussions between
`
`Apple and Corephotonics, Corephotonics provided a Dropbox link to Apple
`
`that contained videos demonstrating Corephotonics’s smooth transition tech-
`
`nology. Apple responded by saying, “We’ll have a close look at the transition
`
`and get back to you.” A true and correct copy of this email exchange is at-
`
`tached as Exhibit 2008.
`
`24.
`
`In December 2015, Corephotonics sent an email to Apple that
`
`summarized the parties’ years of discussions and Corephotonics’s intellectual
`
`property. A true and correct copy of that email is attached as Exhibit 2009.
`
`25.
`
`
`
`:
`
`8
`
`
`
`
`
`
`
`APPLE V COREPHOTONICS
`IPR2020-00905
`Exhibit 2013
`Page 9
`
`

`

`
`
`
`
`is attached as Exhibit 2010.
`
`26. Apple was interested in our image fusion technology very early
`
`on. For example, in June 2013, Gal Shabtay (who was Corephotonics’ Vice
`
`President of R&D) visited Apple’s facilities to demonstrate our dual camera
`
`technologies. The main contact in this meeting from Apple’s side was
`
`
`
` which took a key role at the time in assessing Corephotonics’s technol-
`
`ogies. During this meeting,
`
` inquired about Corephotonics telephoto
`
`lens designs, and Mr. Shabtay presented information which
`
`
`
`The discussion at this meeting
`
`covered the lens layout, optical performance, and lens manufacturability is-
`
`sues of Corephotonics’s telephoto lens designs. In addition, an email chain
`
`between Corephotonics and Apple following that visit is attached as Exhibit
`
`2018. In one email, an Apple engineer says: “we are interested in evaluating
`
`your image fusion algorithms in more depth.”
`
`27. We provided technical samples of our image fusion technology
`
`to Apple in early July. A true and correct copy of an email exchange with
`
`9
`
`APPLE V COREPHOTONICS
`IPR2020-00905
`Exhibit 2013
`Page 10
`
`

`

`Apple about those samples is attached as Exhibit 2019. After receiving ex-
`
`amples of fused images, an Apple engineer stated: “the Corephotonics images
`
`blend the wide and tele camera image data very smoothly.”
`
`28. Exhibit 2020 is a true and correct copy of another email chain
`
`between Apple and Corephotonics’s technical teams discussing Apple’s eval-
`
`uation of our image fusion algorithms.
`
`29. Exhibit 2021 is a true and correct copy of a signed Technology
`
`Evaluation Agreement (between Corephotonics and Apple) from September
`
`2013,
`
`. We sent those over to Apple on Sep-
`
`
`
`tember 19, 2013, which is shown in Exhibit 2022, a true and correct copy of
`
`an email chain between Apple and Corephotonics.
`
`
`
`
`
`
`
` In addition, a clear focus of discussions with us and Apple was,
`
`from as early as 2013, how Corephotonics’s telephoto lens design achieved
`
`low TTL relative to high EFL.
`
`30. Exhibit 2023 is a true and correct copy of an email from a high
`
`level Apple camera engineer to Corephotonics after Apple’s technical team
`
`10
`
`APPLE V COREPHOTONICS
`IPR2020-00905
`Exhibit 2013
`Page 11
`
`

`

`presented Corephotonics’ technologies to Apple’s executives. He says: “We
`
`had a very positive meeting with company executives on Monday. We showed
`
`our results and your module to people in charge of software, hardware, prod-
`
`uct design and industrial design and there was a very clear message that this
`
`is something we want to continue to investigate.”
`
`31. Talks between Apple and Corephotonics essentially broke down
`
`in late 2016. When Apple announced its iPhone 7 line of phones in the Fall of
`
`2016, among the key features of those phones (which the previous iPhone
`
`generation did not have) was the use of a dual-camera system. We were dis-
`
`appointed to Apple’s developer notes for the iPhone 7 series touting what was,
`
`essentially, the image fusion technology that Corephotonics had been showing
`
`to Apple for years: “iPhone 7 and 7 Plus’s wide angle cameras both support
`
`OIS. These cameras use a combination of optical stabilization and software
`
`multi-image fusion to deliver the best possible still images in low light.”
`
`https://developer.apple.com/forums/thread/63347.
`
`32.
`
`In signing this declaration, I understand that the declaration will
`
`be filed as evidence in proceedings before the Patent Trial and Appeal Board
`
`of the United States Patent and Trademark Office. I acknowledge that I may
`
`be subject to cross-examination in the case and that cross-examination will
`
`11
`
`APPLE V COREPHOTONICS
`IPR2020-00905
`Exhibit 2013
`Page 12
`
`

`

`take place within the United States. If cross-examination is required of me, I
`
`will appear for cross-examination within the United States during the time
`
`allotted for cross-examination.
`
`33.
`
`I declare under penalty of perjury under the laws of the United
`
`States of America that the foregoing is true and correct and that all statements
`
`made herein of my knowledge are true and that all statements made on infor-
`
`mation and belief are believed to be true; and further, that these statements
`
`were made with knowledge that willful false statements and the like so made
`
`are punishable by fine or imprisonment, or both, under 18 U.S.C. § 1001.
`
`
`
`DATED:
`
`February 4, 2021
`
`/s/ Eran Kali
`
`12
`
`APPLE V COREPHOTONICS
`IPR2020-00905
`Exhibit 2013
`Page 13
`
`

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