UNITED STATES PATENT AND TRADEMARK OFFICE
`______________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`______________________
`
`PEAG LLC (d/b/a JLab Audio), AUDIO PARTNERSHIP LLC and
`AUDIO PARTNERSHIP PLC (d/b/a Cambridge Audio)
`Petitioners
`
`v.
`
`VARTA MICROBATTERY GMBH,
`Patent Owner
`
`Patent Nos.
`9,153,835
`
`IPRs
`IPR2020-01212
`
`_______________________
`
`DECLARATION OF PHILIPP MIEHLICH
`
`1
`
`VARTA Ex. 2045 Page 1 of 29
`PEAG/Audio Partnership v. VARTA
`IPR2020-01212
`
`
`
`
`______________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`______________________
`
`PEAG LLC (d/b/a JLab Audio), AUDIO PARTNERSHIP LLC and
`AUDIO PARTNERSHIP PLC (d/b/a Cambridge Audio)
`Petitioners
`
`v.
`
`VARTA MICROBATTERY GMBH,
`Patent Owner
`
`Patent Nos.
`9,153,835
`
`IPRs
`IPR2020-01212
`
`_______________________
`
`DECLARATION OF PHILIPP MIEHLICH
`
`1
`
`VARTA Ex. 2045 Page 1 of 29
`PEAG/Audio Partnership v. VARTA
`IPR2020-01212
`
`
`
`
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`I, Philipp Miehlich, provide this Declaration in support of the patentability
`
`of the claims under review in IPRs Nos. 2020-01211, 01212, 01213 and 01214. I
`
`have first-hand knowledge of the development and commercialization of
`
`VARTA’s button cells made in accordance with its U.S. Patents Nos. 9,153,835,
`
`9,496,581, 9,799,913 and 9,799,858. In particular, I have first-hand knowledge of
`
`the commercial success VARTA’s patented button cells have enjoyed and the
`
`copying of these cells by other battery manufacturers.
`
`I.
`
`INTRODUCTION
`
`1.
`
`I have been employed by VARTA Microbattery GmbH and related
`
`companies (“VARTA”) since 1991, principally in the area of Marketing & Sales.
`
`2.
`
`I hold a Dipl. Wirt. Ing.-FH degree awarded in 1986 at Aalen, Baden
`
`Wuertemburg, Germany by Fachhochschule Aalen / University for Applied
`
`Science.
`
`3.
`
`Among the positions I have held at VARTA are General Manager
`
`OEM and General Manager for the Entertainment & Industrial Business Unit.
`
`4.
`
`In 2008-2009, I held the position of Product Manager, OEM at
`
`VARTA. My responsibilities included market analysis, competitor benchmarking,
`
`new product definition & development, sales, and customer support.
`
`5.
`
`I participated in the discussions leading to the approval of a request
`
`for funding to develop the patented button cells here in issue. I monitored and
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`provided input to that R&D effort. I was subsequently involved in the marketing
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`and sales of VARTA’s CoinPower® button cells that are covered by the patents
`
`here under review.
`
`6.
`
`Over my career, I have participated in a number of seminars all over
`
`the world relating to battery technologies. I, together with other inventors, hold a
`
`German Utility Model in the field of lithium-ion battery pack design, which was
`
`granted in 2006.
`
`7.
`
`I receive no special compensation in connection with my preparation
`
`and submission of this declaration, nor do I receive any special compensation for
`
`any other support I am providing to VARTA’s defense of its patent portfolio.
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`None of my compensation is contingent on, nor do I have any monetary interests
`
`in, the outcome of these proceedings.
`
`8.
`
`I am generally familiar with the VARTA patents here under review. I
`
`have also been generally acquainted with the substance of IPR Petitions submitted
`
`in these proceedings, the Institution Decisions of 6 January 2021, the Declaration
`
`of Mr. Gardner submitted by petitioners in these proceedings, and to a lesser extent
`
`the Kobayashi, Kaun, Ryou, and Kwan references petitioners here claim render the
`
`VARTA inventions unpatentable.
`
`9.
`
`I am not familiar with U.S. legal proceedings generally, nor with Inter
`
`Partes Review proceedings specifically. However, I believe I have a broad,
`
`
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`general understanding of a patent and its functions, and to at least some extent, the
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`arguments made in these proceedings by our opponents in their effort to render the
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`VARTA patents invalid.
`
`II.
`
`SUMMARY OF MY DECLARATION
`
`10.
`
`I provide information on VARTA, the company; the inventions of the
`
`VARTA patents under review in these proceedings, including, e.g., the initial
`
`skepticism by VARTA’s own experts to engage in the research; the unexpected
`
`performance stemming from the novel structure of the patented cells; their
`
`commercial success; recognitions VARTA has received for the patented cells; and
`
`copying of VARTA’s patented technology.
`
`11. Founded in 1904, VARTA is a renowned German company
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`headquartered in Ellwangen, Baden Württemberg. With about 4000 employees, it
`
`is long-time world leader in battery technology, including button cell technology.
`
`In 2020, VARTA manufactured and sold well over 3 billion cells of various types.
`
`12.
`
`In 2008, after returning from extensive assignments in the battery
`
`field in VARTA’s subsidiaries in Asia, two VARTA employees, Dr. Lindner and
`
`Mr. Barenthin, proposed a project to develop a new button cell with a smaller
`
`footprint but much higher performance level than was available at the time.
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`13. Their proposal was received with a great deal of reservation among
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`VARTA’s battery experts and corporate management. A number of our colleagues
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`doubted the project could succeed technologically, and even if it did, were
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`skeptical that a market for such a cell would exist. I supported the proposal.
`
`14. VARTA eventually approved the project and it commenced. After
`
`about a year and a half of research and development, and expenditures of several
`
`million Euro, the inventors succeeded in developing a new button cell with the
`
`characteristics they had targeted.
`
`15. The new cell consisted of a “jelly roll”1 electrode coil packed tightly
`
`into an uncrimped, button-like housing. The electrode coil was protected against
`
`short-circuiting by insulating means, and was connected to the cell terminals by
`
`flexible flat foil conductors resting flat between the electrode top and housing, and
`
`welded to the housing components from the outside. These features are all found
`
`in the claims of the VARTA patents here under review.
`
`16. The new cell unexpectedly provided unprecedented increases in
`
`performance, including in energy density, charge capacity, and cycling stability. I
`
`have been active in the field of button cell technology for over 20 years. I had not
`
`previously seen such a jump in performance - on the order of 30% in energy
`
`density alone – with the arrival of a new cell.
`
`
`1 By “jelly roll” electrode, I refer to a thin electrode strips wound up in the form of a spiral-shaped winding, placed
`in the housing with the strips perpendicular to the housing terminals, all as described in the VARTA patents here
`under review.
`
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`17. Prior to the VARTA inventions in 2008-2009, to my knowledge there
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`existed no button cell containing a “jelly roll” electrode and supporting structures
`
`as set forth in the claims of the patents here under review. Nor, to my knowledge
`
`at the time or presently, was such a structure disclosed in any publication or patent.
`
`The closest prior art publication I am now aware of, a Japanese publication to
`
`Kobayashi, discloses a cell that has but one-third of the performance of the
`
`patented VARTA button cell.
`
`18. VARTA commercialized button cells covered by the patents under
`
`review beginning in about 2015, under the CoinPower trade name. These cells,
`
`because of their patented features, spawned and facilitated much of the success of
`
`the “TWS” (True Wireless Stereo) technology presently offered by the top headset
`
`manufacturers.
`
`19. During the past 5 years, manufacture and sales of our patented
`
`CoinPower button cells have more than doubled each year, reaching about 140
`
`million units in 2020. This volume represents just about 60% of global market
`
`share in 2020. VARTA anticipates producing and selling about 200 million units
`
`in 2021.
`
`20. VARTA has received a number of industry awards over the past 10
`
`years because of its development of the CoinPower button cells.
`
`
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`21. As TWS and other small consumer electronics devices have become
`
`increasingly popular, several companies are now selling button cells that copy the
`
`designs and features claimed in the patents here under review. Petitioners employ
`
`such cells in their products, which prompted VARTA to initiate patent
`
`infringement litigation in the U.S.
`
`III.
`
`INITIAL SKEPTICISM AMONG VARTA EXPERTS
`
`22.
`
`In my position as Product Manager for OEM business in 2008 I noted
`
`that small consumer electronics such as MP-3 players, Portable Gaming Devices,
`
`Portable Fitness Trackers and MONO headsets for handsfree communication got
`
`more attention in the market. All these required SMALL batteries. I had extensive
`
`knowledge of the button cell and small consumer electronics markets at the time,
`
`including the physical structure in then-existing button cells and their performance
`
`characteristics. At that time, that market was adequately served with button cells
`
`readily available at very reasonable prices.
`
`23. For the most part, available button cells in 2008 contained electrodes
`
`that were either stacked in a pancake-like fashion or folded back and forth to create
`
`a stack. They were contained in metal housings or pouches. There were complex
`
`connections of the anode and cathode layers, to themselves and to the housing of
`
`the cell, consuming valuable space no longer available for active electrode
`
`
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`7
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`VARTA Ex. 2045 Page 7 of 29
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`material. The housings of the cells were crimped, i.e., the edges were bent over
`
`each other, to create a safe enclosure, resulting in a larger footprint for the cell.
`
`24. A 20 mm diameter Li-ion button cell at about the time of our
`
`inventions was generally limited in performance to an energy density only slightly
`
`above 200 Wh/L. In contrast, our patented CoinPower button cell, even in a much
`
`smaller 12 mm size, has a density of greater than 300 Wh/L. In this business and
`
`technology, that is a very substantial difference.
`
`25.
`
`In 2008, the coinventors Dr. Lindner and Mr. Barenthin, with whom I
`
`had been well acquainted, had returned to VARTA’s headquarter in Ellwangen
`
`from Asia, where they had been active in the area of button cell technology with
`
`VARTA subsidiaries for a number of years. They indicated to VARTA
`
`management that they believed they could build a much higher charge capacity
`
`button cell than was available at the time by utilizing the limited available space
`
`differently and more efficiently, and by reconfiguring completely the required
`
`internal connections.
`
`26. Their request for funding to pursue the proposed project was initially
`
`met with a great deal of reluctance. I participated in those discussions and did not
`
`share that skepticism. Other VARTA scientists and engineers familiar with button
`
`cell technology, along with some of our colleagues in management, did not believe
`
`
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`8
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`VARTA Ex. 2045 Page 8 of 29
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`such new cells could be designed and built, let alone in a manner suitable for mass
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`production.
`
`27. Further objections to the Lindner/Baerenthin proposal were based on
`
`the absence at the time of wide-spread consumer demand for such novel cells, as
`
`there were hardly any end user devices that would have benefitted from such high
`
`level of performance.
`
`28. After several months of hesitation and further discussions in which I
`
`took part, VARTA approved the requested funding. The project proceeded under
`
`the supervision of the head of VARTA R&D, Mr. Edward Pytlik. The research
`
`team included, in addition to Mr. Pytlik, Dr. Lindner and Mr. Barenthin along with
`
`Mr. Gaugler. A staff of technicians assisted with various experiments and trials.
`
`IV. UNEXPECTED STRUCTURE AND PERFORMANCE
`
`29. After about a year and a half of experimentation and trials, and several
`
`million Euro in expenditures, the team came up with a novel design for the button
`
`cell that resulted in a leap forward in performance over conventional cells. I was
`
`personally familiar with the efforts of the team as I periodically kept up with their
`
`research and development activities. It was partly my responsibility to market and
`
`sell the product that would result.
`
`30. As indicated above, in 2008 MONO Headsets for handsfree
`
`communication were becoming more interesting. Due to the nature of how
`
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`VARTA Ex. 2045 Page 9 of 29
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`humans are listening (with the ear), we considered whether a device could be made
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`sitting directly in the ear shell.
`
`
`
`Example of Hearing Aid in Ear Shell
`
`
`
`
`
`Example of MONO Headset in Ear
`
`
`
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`Such a device would have a significant impact to the comfort of wearing it
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`and to the general consumer convenience and finally for the success of such
`
`headsets. But batteries in a size that could be finally incorporated in a device
`
`which fits to the ear shell and had the required performance (energy density,
`
`absolute capacity to give a decent run time) had not been existing. From our many
`
`years’ experience in the hearing aid industry and it its devices, we targeted a
`
`battery size of 12mm x 5.4 mm with min. 40mAh capacity to support the then
`
`available Bluetooth communication chipsets, and hopefully up to ~4 h running
`
`time.
`
`
`
`As a battery was these times (and it is still today) the largest single
`
`component in such devices, the smaller the battery (at its requested electrical
`
`performance) the more attractive and interesting such device would be. Existing
`
`battery technologies did not offer the capability to make such a small but high
`
`performing battery. Innovation and a new technology were required. To a large
`
`extent, batteries define duration, shape and size of modern, portable electronic
`
`devices.
`
`31. As they proceeded with the project to create a new generation button
`
`cell, the inventors incorporated a coiled “jelly roll”-electrode into a button cell in a
`
`manner that made it possible to efficiently fill a housing with more active electrode
`
`material than had previously been possible. They protected the jelly roll with an
`
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`insulating layer to avoid short circuits, particularly during the swelling and
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`shrinking of the electrode that accompany charging and discharging, and during
`
`handling of the cell.
`
`32. Next, a flat foil conductor was deployed in the cell to resiliently,
`
`reliably and efficiently carry the current from the electrodes to the terminals. It
`
`rested flat between the end face of the winding and the inside of the housing
`
`components in order to consume virtually no extra space.
`
`33. One of our inventors, Mr. Gaugler, determined that the foil conductor
`
`can be welded to the inside of the housing wall from the outside of the housing.
`
`That process not only made for a secure connection but assisted in the efficient
`
`manufacture of the cells.
`
`34.
`
`In order to further optimize performance for a cell with a given
`
`outside diameter (OD), the inventors eliminated the conventional beading over of
`
`the cell housing pieces during the closing of the cell. With the help of the
`
`mechanical forces generated during the charging and discharging of the “jelly roll”
`
`electrode directed toward overlapping sides of the housing top and bottoms they
`
`created an effective friction fit seal. This provided more interior space for a cell
`
`with a given OD, now available for electrode material.
`
`35. Figure 1 of VARTA’s ‘858 patent shows a schematic cross section of
`
`the new cell:
`
`
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`
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`U.S. Patent No. 9,799,858—FIG. 1A
`
`
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`As can readily be seen, nearly all of the valuable space available within the cell
`
`housing is occupied by an electrode assembly (108), the purple and yellow layer in
`
`the above reproduced FIG. 1A. The support structures such as insulating means
`
`(112, 113) and the conductors to the housing (110, 111), are arranged such as to
`
`take up essentially no space in the cell. The cell closure, the overlapping cell walls
`
`106, takes up little space and provides for maximum internal space for electrode
`
`material.
`
`36. The patented new cell produced energy densities, charge capacities,
`
`and cycling stability that represented a performance leap forward, particularly in a
`
`cell of such small size. In all my years in this technology, I had never seen a
`
`performance leap of this magnitude – about 30% over then existing button cells. In
`
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`view of the initial skepticism to pursuing this project, these results were completely
`
`unexpected and surprising to me and a number of our other experts in the field.
`
`37. The new VARTA button cell contains and is coextensive with the
`
`features of at least claims 1 and 6 of VARTA’s U.S. Patent 9,496,581; at least
`
`claims 1, 4 and 6 of U.S. Patent 9,799,913; at least claim 1 of U.S. Patent
`
`9,153,835; and at least claim 1 of U.S. Patent 9,799,858.
`
`38.
`
`I understand our opponents rely on a November 2007 Japanese patent
`
`publication to Kobayashi to argue that our patents are invalid. As I understand
`
`Kobayashi, which is Toshiba technology developed essentially contemporaneously
`
`with our CoinPower cell, it employs an electrode coil integrated within a winding
`
`axis core, with insulator and conductor plates above and below the coil.
`
`39. Kobayashi’s approach diverged completely from ours. His structure
`
`of a complex winding axis core to support the electrode, with plates on top and on
`
`the bottom, and housing halves required to be beaded over for a positive lock,
`
`simply does not allow the efficient use of space within the exceedingly small
`
`volume of a microcell. Fig. 1 from Kobayashi is shown here. The internal
`
`winding axis core structure is shown in red.
`
`
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`14
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`VARTA Ex. 2045 Page 14 of 29
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`Publication No. JP 2007-294111 (Kobayashi) - Fig. 1
`
`At 10 and 12 is the beaded over connection of the cell halves, widening the
`
`footprint of the cell and narrowing the available internal space.
`
`40. The deficiency by reason of the internal and external Kobayashi
`
`structures is plainly demonstrated in the performance differences between our
`
`CoinPower cell and the Kobayashi cell. The CoinPower button cell produces an
`
`energy density and charge capacity more than 3 times that of a cell our opponents
`
`contend is the best prior art:
`
`
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`15
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`Energy Density Comparison: Kobayashi vs. VARTA CoinPower
`
`364
`
`303
`
`101
`
`Example 1 (Kobayashi)
`
`VARTA CP1254 (2009)
`
`VARTA CP1254 (2018)
`
`
`
`400
`
`350
`
`300
`
`250
`
`200
`
`150
`
`100
`
`50
`
`0
`
`Energy Density (Wh/L)
`
`
`
`16
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`Wireless Headset Battery Life Comparison:
`Kobayashi vs. VARTA CoinPower
`
`4.0
`
`3.3
`
`1.1
`
`4.5
`
`4.0
`
`3.5
`
`3.0
`
`2.5
`
`2.0
`
`1.5
`
`1.0
`
`0.5
`
`0.0
`
`Operation Time (hours)
`
`Example 1 (Kobayashi)
`
`VARTA CP1254 (2009)
`
`VARTA CP1254 (2018)
`
`
`
`41. Based on my decades of experience, such a difference in performance
`
`is nothing short of extraordinary. The CoinPower cell also provides an
`
`unprecedented cycling stability in that the charge capacity of the cell, even after
`
`1000 cycles, remained at or above eighty percent of its initial charge capacity. To
`
`the best of my knowledge—and my responsibilities included monitoring
`
`competitive products—a Kobayashi cell was never manufactured. Hence, I am
`
`unable to provide comparative cycling data. Based on my experience, however, it
`
`is unlikely that it would approach that of our CoinPower cells.
`
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`42. Beginning in 2009 VARTA filed a series of patent applications,
`
`initially in Germany and thereafter in countries throughout the world. At present,
`
`various aspects of our invention are protected by 10 issued patents, including the
`
`four United States patents here under review.
`
`V. COMMERCIAL SUCCESS
`
`43. Our new button cell technology took several years to see widespread,
`
`mass-scale adoption. Initially, there were only few devices that would have fully
`
`benefitted from the level of performance our new button cells offered.
`
`44.
`
`In about 2012-14, several manufacturers of small consumer devices,
`
`including market leaders in their segments at that time like Motorola, Jabra,
`
`Plantronics and Bose, became interested in our CoinPower button cells because of
`
`their outstanding performance and size that would fit into devices in the ear shell.
`
`In my position as General Manager OEM (as of mid-2009 forward), I was directly
`
`involved in the discussions with these potential customers and am fully familiar
`
`with the button cell properties they sought.
`
`45. Our patented CoinPower cell provided the level of performance at a
`
`size these customers desired, including charge capacity, energy density, and
`
`cycling stability, and made our subsequent sales to these device manufacturers
`
`possible.
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`46. The performance enabling our sales to the interested device
`
`manufacturers were the direct result of the combination of a “jelly roll” oriented
`
`electrode essentially filling a housing, insulating means protecting the electrode
`
`and flexible foil conductors resting flat between the electrode and housing. The
`
`non-beaded-over housing contributed additional volume to be occupied by
`
`electrode, further enhancing performance, and the welding of the conductor foils to
`
`the cell terminals by weld spots passing from the outside through the housing was
`
`our preferred method of secure attachment as it readily facilitated manufacture of
`
`the cell on a large scale. These CoinPower cell features are embodied in at least
`
`claims 1 and 6 of VARTA’s U.S. Patent 9,496,581; at least claims 1, 4 and 6 of
`
`U.S. Patent 9,799,913; at least claim 1 of U.S. Patent 9,153,835; and at least claim
`
`1 of U.S. Patent 9,799,858.
`
`47. Claim 1 of U.S. Patent 9,496,581, for example, specifies a jelly roll
`
`electrode connected to the housing terminals via a foil conductor resting flat:
`
`A button cell comprising:
`
` a housing cup and a housing top …
`
`an electrode-separator assembly within the housing …
`
`the electrode-separator assembly is a spiral winding having end faces
`defining side surfaces of the spiral winding facing in an axial
`direction relative to the flat bottom area and the flat top area, and
`
`
`
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`one of the electrodes connects to the flat bottom area or the flat top
`area via an output conductor comprising a foil resting flat between an
`end face of the spiral winding and the flat top or the flat bottom area
`to which it is connected.
`
`48. Claims 6 adds the insulator:
`
`The button cell as in claim [sic, claimed] in claim 1, further comprising at
`least one insulator which prevents direct mechanical and electrical contact
`between the end faces of the winding and the flat bottom and top areas.
`
`
`
`
`
`49. Similarly, claim 1 of U.S. Patent 9,799,913 recites a jelly roll
`
`electrode connected to the housing via a foil conductor resting flat and protected by
`
`an insulating means:
`
`A button cell comprising:
`
` a housing cup and a housing top …
`
`an electrode-separator assembly within the housing …
`
`and the electrode-separator assembly is a spiral winding having end
`faces defining side surfaces of the spiral winding facing in an axial
`direction relative to the flat bottom area and the flat top area, and
`
`one of the electrodes connects to the flat bottom area or the flat top
`area via an output conductor comprising a foil resting flat between an
`end face of the spiral winding and the flat top or the flat bottom area
`to which it is connected, and
`
`at least one insulating means preventing direct mechanical and
`electrical contact between the end faces of the winding and the flat
`bottom and flat top areas
`
`
`
`
`
`
`
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`50. Claim 1 of U.S. Patent 9,153,835 recites a jelly roll electrode
`
`protected by an insulating means in a housing that is not beaded over:
`
`A button cell comprising:
`
` a housing cup and a housing top …
`
`an electrode-separator assembly within the housing … , and
`
`an insulating means,
`
`wherein the electrode layers are aligned essentially at right angles to
`the flat bottom area and the flat top area
`
`and the button cell is closed without being beaded over,
`
`and the electrode-separator assembly is in the form of a spiral winding
`having end faces defining side surfaces of the spiral winding face
`facing in an axial direction relative to the flat bottom area and the flat
`top area,
`
`and wherein the insulating means is arranged between the end faces
`of the spiral winding and the housing cup and the housing top.
`
`51. And Claim 1 of U.S. Patent 9,799,858 covers a jelly roll electrode
`
`protected by an insulating element and connected to the housing terminals by metal
`
`foil conductors attached to the underside of a housing half by weld spots applied
`
`from the outside of the housing half:
`
`A button cell comprising:
`
`two metal housing halves separated from one another by an
`electrically insulating seal forming a housing having a plane bottom
`region and a plane top region parallel thereto;
`
`
`
`
`21
`
`VARTA Ex. 2045 Page 21 of 29
`
`
`
`an electrode separator assembly comprising at least one positive
`electrode and at least one negative electrode inside the housing,
`
`the assembly provided in the form of a winding, lateral end sides of
`which face in a direction of the plane bottom region and the plane top
`region such that layers of the winding are oriented essentially
`orthogonally to the plane bottom region and plane top region; and
`
`metal conductors electrically connected to the at least one positive
`electrode and the at least one negative electrode, and respectively, to
`one of the housing halves,
`
`wherein the button cell has a height-to-diameter ratio less than one,
`
`at least one of the conductors is a metal foil and connects to the
`respective housing half with weld beads and/or weld spots passing
`through the housing, the weld beads and/or weld spots originate from
`an outer side,
`
`the metal foil connecting to the respective housing half bears flat on
`one of lateral end sides of the electrode separator assembly winding,
`
`and the metal foils are shielded from lateral end sides of the winding
`by insulating elements.
`
`
`52. Based on my extensive experience in the field of button cells, there are
`
`no features not recited in the various claims of our patents here under review that
`
`substantially contribute to the electrical and mechanical performance of the
`
`CoinPower cells. Our CoinPower cell is in fact coextensive with the claimed
`
`combinations.
`
`
`
`22
`
`VARTA Ex. 2045 Page 22 of 29
`
`
`
`53. As a result of my duties at VARTA, I am personally familiar with the
`
`production and sales of our CoinPower button cell over the past ten years.
`
`VARTA’s mass production of the cells commenced in about 2015-2016.
`
`54. The availability of VARTA’s CoinPower button cells—with their
`
`novel patented structure and resultant performance characteristics—directly
`
`spawned the development and commercialization of entirely new areas of
`
`consumer microelectronics, with great success.
`
`55. For example, the patented VARTA CoinPower button cells facilitated
`
`much of the success of the “TWS” (True Wireless Stereo) technology presently
`
`found in wireless earphones offered by a number of well-known manufacturers,
`
`including Bose, Jabra, Apple, Samsung, Sony, Plantronics and Sennheiser. With
`
`its CoinPower cell, VARTA offered a safe and reliable power source in a size that
`
`fit into a device in a human ear shell, and at the same time was powerful enough to
`
`drive pulse currents required in devices such as Bluetooth chips and stereo
`
`amplifiers for earphones. Button cells with the required energy density and life
`
`had not existed before our inventions of the patents here under review.
`
`Applications now also include fitness tracker devices, smart keys for cars, and
`
`insulin patches, to mention only some.
`
`
`
`
`
`
`
`23
`
`VARTA Ex. 2045 Page 23 of 29
`
`
`
`56. As indicated in the chart below, during the past 6 years, sales of our
`
`patented CoinPower button cells have more than doubled each year, reaching
`
`almost 140 million units in 2020. VARTA presently projects that sales of its
`
`CoinPower cells will reach about 200 million units in 2021.
`
`57. The 2020 volume represents about 60% of global market share for
`
`rechargeable Li-ion button cells, according to Counterpoint:
`
`
`
`
`
`24
`
`VARTA Ex. 2045 Page 24 of 29
`
`
`
`
`
`58. The increase in production and sales over the past six years is due
`
`solely to the performance characteristics of the patented CoinPower cell, which is
`
`brought about by the unique utilization of a “jelly roll”-electrode with its
`
`supporting structures, as set forth in the claims of the four patents here under
`
`review. See above, paras. 46-52.
`
`59. The increase in production and sales over the past six years and into
`
`2021 is not due to marketing or advertising efforts. Our customers, primarily
`
`commercial manufacturers of small consumer electronics, are not susceptible to
`
`mass marketing or advertising campaigns as, e.g., might be directed to an end use
`
`consumer. For that reason, we have not engaged in such marketing or advertising
`
`campaigns.
`
`
`
`25
`
`VARTA Ex. 2045 Page 25 of 29
`
`
`
`60. For our customers ONLY performance and compatibility for their
`
`devices is decisive. If there would have been some similar great idea how to bring
`
`that much performance into a small package, companies like Apple, Samsung,
`
`Sony and Bose would have found it and they would have asked with their sourcing
`
`power at that time their key suppliers to make them such a cell. Notably, no cell
`
`according to the Kobayashi disclosure was ever made.
`
`61. Our customers have demanded and continue to demand specific
`
`performance characteristics, principally capacity, energy density, battery life and
`
`robustness, all of which we have been able to satisfy with the structure of our
`
`CoinPower button cell as set forth in the claims of the patents under review. This
`
`is the sole reason for the explosive demand, production and sales we have
`
`experienced and were able to satisfy with our patented CoinPower cells.
`
`VI. RECOGNITIONS AND AWARDS
`
`62. Our patented CoinPower cells have received a number of awards and
`
`recognitions over the past ten years, based on the performance characteristics of
`
`the cell, which in turn was made possible by the unique electrode configuration
`
`and supporting structures as described and claimed in the patents here under
`
`review. The awards include the following:
`
`
`
`
`
`
`
`26
`
`VARTA Ex. 2045 Page 26 of 29
`
`
`
`63.
`
`In 2011, VARTA earned the Top-Innovator award from the TOP100
`
`organization, citing our CoinPower button cell.
`
`
`
`64.
`
`In 2012, VARTA earned the Product of the Year award by the
`
`Publication Elektronik, based on our CoinPower button cell.
`
`
`
`
`
`65.
`
`In 2015, VARTA received the Innovation Award 2015 in the “Sistemi
`
`di Potenza category from “Selezione di Elettronica,” citing our CoinPower button
`
`cell.
`
`
`
`
`
`
`
`27
`
`VARTA Ex. 2045 Page 27 of 29
`
`
`
`66. And in 2020, VARTA received the Deutsche Innovationspreis
`
`(German Innovation Award) in the category mid-sized companies, based on our
`
`CoinPower button cell.
`
`VII. COPYING
`
`
`
`67. As “True Wireless Stereo” devices and other similar small consumer
`
`electronics devices have become increasingly popular, several companies are now
`
`offering high performance button cells that copy the features claimed in the
`
`VARTA patents here under review. Both petitioners employ such cells in their
`
`products, which prompted VARTA to initiate infringement litigation in the U.S.
`
`VARTA believes that there may now be as many as 3-5
`
`manufacturers of button cells employing the electrode configuration and
`
`supporting structures as set forth at least in each of the claims 1 of the
`
`VARTA patents here under review. Both petitioners employ such cells
`
`in their products, which prompted VARTA to initiate infringement
`
`litigation in the U.S.
`
`68. VARTA believes that there may now be as many as 3-5
`
`
`
`28
`
`VARTA Ex. 2045 Page 28 of 29
`
`
`
`manufacturers of button cells employing the electrode configuration and
`
`supporting structures as set forth at least in each of the claims 1 of the
`
`VARTA patents here under review.
`
`69.
`
`It is apparent that the electrode configuration and supporting
`
`structures as set forth in the claims of the VARTA patents in suit, are
`
`required in a button cell to obtain performance characteristics that are
`
`competitive with those of the patented VARTA CoinPower button cell.
`
` declare under penalty of perjury that the foregoing is tru
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