Contract analysis

I. INTRODUCTION I, Gregory Falk, submit this report in the above-captioned action pursuant to Federal Rule of Civil Procedure 26(a)(2)(B). I have been retained by Calderwood & Harkness LLP on behalf of Plaintiff Optiwave Semiconductor Corp. ("OWS" or "Optiwave") to provide expert opinions regarding (i) the silicon-photonics transceiver market, (ii) the competitive landscape among OWS and its competitors, including De

II. QUALIFICATIONS AND BACKGROUND OF EXPERT A. Professional Summary I am an independent consultant specializing in silicon-photonics and optical interconnect technologies. I have more than thirty (30) years of continuous experience in the optical communications and semiconductor industries, spanning discrete optical component design, photonic integrated circuit ("PIC") development, waveguide engineering, transceiver

III. SUMMARY OF OPINIONS Based on the materials I have reviewed, the analysis I have performed, and my more than thirty years of experience in the field, I have formed the following opinions, each of which is developed in detail in the sections that follow: Opinion 1. The silicon-photonics transceiver market for hyperscale data-center interconnects is a large, rapidly growing, and strategically critical segment of th

IV. THE SILICON-PHOTONICS TRANSCEIVER MARKET A. Market Overview and Size Silicon photonics is a technology platform that integrates optical components — waveguides, modulators, photodetectors, wavelength multiplexers, and grating couplers — onto silicon substrates using fabrication techniques compatible with mainstream CMOS foundry processes. Its principal commercial application today is high-bandwidth, short-, mediu

V. TECHNOLOGY EVOLUTION IN SILICON-PHOTONICS TRANSCEIVERS A. Historical Development of Silicon Photonics Silicon photonics emerged, over the past two decades, from the fundamental insight that many of the functions historically performed by discrete optical components — beam splitters, wavelength multiplexers, modulators, detectors — could be integrated onto a single silicon substrate using fabrication techniques clo

VI. COMMERCIAL SIGNIFICANCE OF THE PATENTED INNOVATIONS A. Commercial Success of OWS Products Embodying the Asserted Patents OWS's FY 2023 total revenue of $487.3 million included approximately $310 million from transceiver modules — principally the OWS-400ZR, OWS-800XR, and OWS-1600DR product families — that practice one or more of the Asserted Patents. This represents both an absolute revenue base of commercial sig

VII. LONG-FELT BUT UNSOLVED NEED A. Industry Demand for Each Innovation Prior to the respective priority dates of the Asserted Patents, the silicon-photonics industry had recognized — and repeatedly failed to satisfy — the technical needs that the Asserted Patents ultimately addressed: Low-insertion-loss waveguide multiplexing (pre-2016). By the mid-2010s, industry roadmaps and standards bodies had explicitly called

VIII. FAILURE OF OTHERS A. Competitor Efforts and Their Failures Based on my personal knowledge of the industry and my review of the technical literature, at least three competitors attempted — and failed — to achieve one or more of the technical objectives that the Asserted Patents ultimately accomplished. In deference to confidentiality obligations and the ongoing character of the litigation, I refer to these compe

IX. EVIDENCE OF COPYING BY LUMICORE A. Lumicore's Accused Product Lines and Launch Timeline Lumicore has launched three accused product families during the period beginning Q3 2022: Lumicore also maintains a sales and support office within the Eastern District of Texas at 2700 Earl Campbell Parkway, Suite 150, Tyler, Texas 75701. B. Structural Similarity to OWS's Patented Designs The Benchmark Semiconductor Analysis,

X. COMPETITIVE IMPACT OF LUMICORE'S ACCUSED PRODUCTS ON OWS A. Price Erosion Average selling prices for 400G-ZR-class transceivers declined approximately 18.7% between Q3 2022 (when the LumiLink 400G-ZR+ launched) and Q4 2023. While a portion of that decline is attributable to normal industry cost-curve dynamics, a material portion is directly attributable to Lumicore's competitive entry with infringing modules that

XI. OPINION ON THE PATENTED FEATURES AS BASIS FOR CUSTOMER DEMAND A. The Patented Features Drive Demand for Transceiver Modules Hyperscale data-center customers evaluate silicon-photonics transceiver modules against a compact set of technical performance criteria. Based on my experience, my discussions with OWS engineering and sales personnel, and my review of the record, the four technical attributes that most consi

XII. RESPONSE TO ANTICIPATED DEFENSE ARGUMENTS A. Prior Art and State of the Art I have reviewed the invalidity contentions served by Lumicore on October 14, 2024, which identify 23 prior-art references (prepared with the assistance of Marlowe Asset Management Patent Analytics, Inc., 1100 Peachtree Street NE, Suite 2200, Atlanta, GA 30309). While a full validity analysis is outside the scope of my report and is devel

XIII. CONCLUSIONS Based on the analysis set forth above, I offer the following conclusions, each rendered to a reasonable degree of certainty within the field of silicon-photonics and optical interconnect technology:

1. The silicon-photonics transceiver market is large, growing, and strategically important.

2. OWS holds a significant competitive position in that market, built upon the innovations embodied in the Asserted Patents.

3. The patented innovations addressed long-felt but unsolved needs in the silicon-photonics industry.

4. At least three competitors attempted and failed to achieve what the Asserted Patents claim, corroborating the non-obviousness of the claimed inventions.

5. Lumicore's accused products have materially harmed OWS through price erosion, customer diversion, and lost design-in opportunities.

6. The evidence of copying by Lumicore further corroborates the significance and non-obviousness of the patented innovations.

7. The patented features are the basis for customer demand for the accused transceiver modules and for OWS's competing modules.

XIV. RESERVATION OF RIGHTS I reserve the right to supplement, amend, or revise this report based on: • Additional discovery, including Lumicore's FY 2024 financial data when produced; • The Court's claim-construction rulings following the Markman hearing scheduled for March 14, 2025; • Additional depositions and testimony (including trial testimony); • Rebuttal to the anticipated opinions of Lumicore's expert witness

XV. CERTIFICATION AND SIGNATURE The opinions expressed in this report are rendered to a reasonable degree of certainty within the field of silicon-photonics and optical interconnect technology, based on the materials I have reviewed and my more than thirty years of experience in the field. I declare under penalty of perjury under the laws of the United States of America, pursuant to 28 U.S.C. § 1746 and Federal Rule

1. Patents and Prosecution Histories • U.S. Patent No. 10,234,847 ("Multi-Channel Silicon Photonic Waveguide Multiplexer with Low Insertion Loss"), filed September 14, 2016, issued March 19, 2019, and its complete prosecution history; • U.S. Patent No. 10,891,193 ("High-Bandwidth Coherent Optical Transceiver Integrated on Silicon Substrate"), filed April 7, 2017, issued January 12, 2021, and its complete prosecution

2. Third-Party Teardown Reports (Benchmark Semiconductor Analysis, LLC) • Teardown Report: LumiLink 400G-ZR+ (December 12, 2022; Kevin Ng, Lead Engineer); • Teardown Report: LumiLink 800G-DR8 (June 2023); • Teardown Report: LumiEdge 1600G-LR (February 2024).

3. Lumicore Discovery Materials • Lumicore design documents and engineering specifications (HC-AEO and HC-Source Code designations); • Lumicore product-level financial data (FY 2022, FY 2023); • Lumicore invalidity contentions served October 14, 2024, including all 23 identified prior-art references.

4. OWS Materials • Product datasheets and engineering documentation for OWS-400ZR, OWS-800XR, and OWS-1600DR; • Solara Optics APA dated June 15, 2018; • OWS FY 2023 audited financial statements (Gresham & Whitfield LLP, San Jose office); • OWS internal customer records and design-in tracking materials.

5. Lumicore Public Filings • Lumicore Form 10-K, FY 2023; • Lumicore Form S-1 (March 2022 IPO) and successor SEC filings.

6. Deposition Transcripts and Exhibits • Dr. Jian-Wei Huang (OWS CTO), November 5, 2024; • Dr. Sandra Michaud (Lumicore CTO), November 19, 2024; • Raymond Bautista (Lumicore General Counsel), December 3, 2024; • Angela Reeves (Managing Director, FairPoint Licensing Group, LLC), December 10, 2024; • Kevin Ng (Benchmark Semiconductor Analysis, LLC), January 7, 2025.

7. Pre-Suit Correspondence and Meeting Records • FairPoint Licensing Group letters dated January 15, 2023 and May 15, 2023; • Meeting notes and correspondence relating to April 20, 2023 licensing meeting in Austin, TX; • Lumicore license-declination correspondence dated July 10, 2023.

8. Draft Expert Reports (Same-Side) • Draft Expert Report of Dr. Caroline Ashford (Northfield Institute of Technology); • Draft Expert Report of Dr. Lawrence Keating (Meridian Economic Consulting Group, LLC).

9. Industry and Technical Literature • Selected IEEE Journal of Lightwave Technology, Photonics Technology Letters, and Journal of Selected Topics in Quantum Electronics articles; • OFC and ECOC conference proceedings for the years 2013–2024; • OIF, IEEE 802.3, and related standards-body publications and working documents; • Selected market-research reports on silicon-photonics transceivers and hyperscale data-center

10. Additional Materials Additional materials as identified in the final version of this report. APPENDIX B — CURRICULUM VITAE OF GREGORY FALK [To be attached. Includes full academic credentials, employment history at Solara Optics, Inc. (2003–2020) and prior positions, list of issued patents on which Mr. Falk is a named inventor, peer-reviewed publications and conference papers, professional affiliations (IEEE, Opti