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UNITED STATES PATENT AND TRADEMARK OFFICE
`
`______________
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`______________
`
`CIRQUE DU SOLEIL MY CALL, L.L.C.
`Petitioner
`
`v.
`
`HOLOGRAM USA, INC
`Patent Owner
`
`______________
`
`Inter Partes Review No. IPR2015-00962
`Patent 5,865,519
`______________
`
`DECLARATION OF MARSHALL MONROE IN SUPPORT OF CIRQUE
`DU SOLEIL MY CALL, L.L.C.’S PETITION FOR
`INTER PARTES REVIEW OF U.S. PATENT NO. 5,865,519
`
`
`
`Cirque du Soleil My
`Call, L.L.C.
`Exhibit 1015
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`Page 1 of 88
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`1.
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`2.
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`I, Marshall Monroe, hereby declare as follows:
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`I am a citizen of the United States and am over 18 years of age. I
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`have personal knowledge of the matters stated in this declaration.
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`
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`3.
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`I have been asked by Petitioner Cirque du Soleil My Call, L.L.C. to
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`submit this declaration in support of its petition for inter parties review of claims
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`(cid:20)(cid:3013)(cid:22)(cid:15)(cid:3)(cid:25)(cid:3013)(cid:27)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:20)(cid:19)(cid:3)(cid:82)(cid:73)(cid:3)(cid:56)(cid:17)(cid:54)(cid:17)(cid:3)(cid:51)(cid:68)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:49)(cid:82)(cid:17)(cid:3)(cid:24)(cid:15)(cid:27)(cid:25)(cid:24)(cid:15)(cid:24)(cid:20)(cid:28)(cid:3)(cid:11)(cid:179)(cid:87)(cid:75)(cid:72)(cid:3)(cid:1932)519 Patent”).
`
`I.
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`EDUCATION AND PROFESSIONAL EXPERIENCE
`My curriculum vitae is attached hereto as Appendix A.
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`4.
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`5.
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`I am the Founder and Chief Executive Officer of a technology
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`innovation, creative design, and strategic planning firm Marshall Monroe MAGIC,
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`having created innovative designs and technology systems in use around the world
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`for entertainment and other various purposes. The design and technology systems
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`I create frequently involve specialty formats for presenting information. As such, I
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`am a professional innovator, regularly developing ideas that are original and
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`pathfinding, generating advantage for clients. I execute this type of work on behalf
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`of commercial clients, non-profit clients, and government (federal, state, and local)
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`clients. My innovative firm and business concept has been featured in Fast
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`Company Magazine and the largest newspaper in New Mexico. My professional
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`background includes many years in the conceptualization and design of
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`entertainment attractions, resorts, exhibitions, museum installations, stage shows,
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`and theme parks (at The Walt Disney Company), so our current company interests
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`and capabilities span the range of planning, design, development, prototyping,
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`fabrication, media production, and technology fields that are used to create
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`complex guest and user experiences. While our client work includes deliverables
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`that are complete working systems, including physical decor or set piece
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`components, many of our deliverable systems include software elements, ranging
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`from control systems and media (video, sound-music, graphics) to databases,
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`websites, dynamic web systems, software systems, and complete mobile device
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`apps. We recently completed a design for a large scale integrated technology
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`exhibit entitled Tree of Life for a large Natural History museum. This show design
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`included large scale lighting effects including a virtual image illusion. We also
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`recently completed a design proposal for a major museum interpretive exhibit
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`including a Pepper’s Ghost Illusion and related visual effects content.
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`6.
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`I spent 14 years as a Creative Executive and Principle Technical Staff
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`at the Walt Disney Company, working in the Imagineering Business Unit and in
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`the Research and Development Division. I began my work at Disney as a Special
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`Effects Designer, creating theme park shows involving fog, new materials, robots,
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`special lighting, lasers, holograms, illusions, control systems, computer-controlled
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`fountains, exotic forms of electronic and film projection, and other presentation
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`technologies. In my capacity at the Walt Disney Company, I was regularly
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`involved in the commercial practice of conceptualizing and realizing new ideas for
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`technology systems, many of which are still in operation today. In the course of
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`my leadership and personal design work at Disney, I was required to be familiar
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`with industrial trends and prior art in many technical areas, including theatrical
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`show technology systems, optical illusions, complex lighting, staging, digital
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`interactive systems, computer networks, display systems, and media production
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`tools. Over the course of several years, I graduated to a Senior Creative Director
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`level, responsible for designing large-scale multimillion dollar projects, including
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`conceptualizing the creative theme and core attributes for a $100 million water
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`park in Walt Disney World called Blizzard Beach. In that period I also managed
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`design teams which included Special Effects Designers, and I trained Special
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`Effects Designers via formal training exercises, mentoring, and rigorous programs
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`like the Disney Animation Boot Camp program.
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`7.
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`Beyond the technology and artistic aspects of innovation, my work at
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`Disney included the business realities of producing creative work product that met
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`financial and economic parameters which define success for an enterprise. The
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`financial and economic aspect of innovation, along with the coordinated delivery
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`of projects for guest presentation to paying guests, includes the important elements
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`of capitalization, risk assessment, installation, maintenance, operations, and
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`syndication of risk.
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`8.
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`I have served several years as a member of the United States Director
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`of National Intelligence’s Intelligence Science Board (“ISB”). This board has been
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`an organization of distinguished and preeminent thought leaders from across the
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`United States in a spectrum of scientific and technical areas, with the prescribed
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`goal of advising federal agencies, congressional leaders, and the executive branch
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`of the federal government in areas of Science and Technology (“S&T”)
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`investment. To understand the scale of impact of U.S. Federal R&D Spending in
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`S&T under the mission of Intelligence, consider that this funding tract is
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`responsible for major technology waves like: aviation, spaceflight, satellites,
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`remote sensing, radar, high resolution cameras, the semiconductor, titanium, high
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`performance computing, the internet, encryption, LEDs, DVD and Blue Ray
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`Optical Disc Storage, and UAV-drone aircraft. These are just a few representative
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`examples. The plenary and task force activities of the board required knowledge
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`of existing and historical science and technology advancements, for purposes of
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`identifying and roadmapping strategic areas of innovation that could serve present
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`and future needs for national security as well as intelligence (espionage) apparatus,
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`assets, methodologies, and trade craft.
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`9.
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`My areas of focus for the board included human perception, illusions,
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`stagecraft, R&D commercialization, emerging media (taken to include social
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`networking, mobile, virtual reality, perceptual effects, image processing, strategic
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`communications, and the psycho-physics of storytelling and narrative reasoning).
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`These specific areas of focus were in the context of an overall exploration of basic
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`science (hard and soft) opportunities across all areas of interest for the intelligence
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`communities. My role on the DNI-ISB was a result of the ongoing desire in the
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`military establishment to learn-from and borrow expertise gained in the
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`commercial entertainment sector.
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`10.
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`To clarify, the practice of theatrical special effects and technology
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`design during the period of the late 1980’s and 1990’s was marked by an intense
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`cross-pollination between the entertainment industries and the military and
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`scientific communities. See, e.g., Ex. 1016 at (demonstrating military simulator
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`technology at the National Association of Broadcasters trade show); Ex. 1021 at
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`220(cid:3013)21 (discussing the dual-use technologies for both military and civilian
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`applications). This was primarily due to the competition for leveraging of
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`entertainment franchises across digital presentation/distribution systems and the
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`whiplash of funding cycles in military research and development driven by the
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`cold war. This resulted in many technologies initiated in the U.S. military
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`industrial complex becoming available to entertainment technology professionals.
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`Examples of this cross-pollination can be found in areas of optics, cinematic-scale
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`projection, computer graphics, high definition television systems, and advanced
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`display systems like holograms, virtual images, or heads-up-displays. A range of
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`compelling presentation systems and business models emerged in this period, when
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`the basic science of optics and illusion was combined with film or digital media
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`display, and the centuries-old crafts of staging, rigging, and parlor trick.
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`11.
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`I served for several years as the Chairman of the New Mexico
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`Governor’s Council on Film and Media Industries, focusing on the strategic
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`creation of a favorable business climate in New Mexico for Theatrical, Film,
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`Television, Music, Computer Interactive, and Video Game Design and Production.
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`This work involved the creation of a comprehensive strategic plan for economic
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`development in these areas, fostering media industries via education (K-12 and
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`higher education), workforce development, tax incentives, direct investment, and
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`public policy overall. The strategic planning process involved understanding the
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`industrial and competitive context for media production industries, including the
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`advanced
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`technologies, methodologies, artistic concerns, copyright
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`law,
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`distribution frameworks (including new digital networks), and capitalization
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`pipelines for creative works. This work has been credited in New Mexico with
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`over four billion dollars in economic impact and has been a model used across the
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`film and media production economic development frameworks of states in the U.S.
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`and abroad.
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`12.
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`Specifically in the area of the Pepper’s Ghost virtual image illusion, I
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`have specific expertise with designing, fabricating and operating complete systems
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`employing this multi-use illusion, as well as broad awareness of the tradition and
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`evolution of this optical phenomenon and special effect. At Disney, I became fully
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`versed in the tradition and variations of the Pepper’s Ghost Illusion because it is
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`part of the standard repertoire of any serious Special Effects Designer working in
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`stage, theme parks, or presentational exhibitry. I have designed multiple systems
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`and installations that use the effect (on various scales from desktop-personal to
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`large group stage), I have multiple patents that use the optics of a virtual image,
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`and I have spoken on the topic in professional settings (including a specific
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`Stanford Presidential Lecture entitled: “Special Effects, the Future of Illusion.”
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`The lack of clear and comprehensive historical record, combined with the tendency
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`(deliberate or otherwise) of practitioners to use misleading or non-traditional
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`vocabulary when discussing the effect, has caused substantial confusion in the
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`marketplace. This confusion is addressable and can be mitigated with the
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`organized outlay of facts and chronology relating to its various incarnations over
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`the years and decades dating back to the 1800’s. Of particular interest are the
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`myriad novel uses and modernized advancements of the effect by the Walt Disney
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`Company in multiple theme parks from the 1960’s through the 1980’s. This
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`included the Disneyland Haunted Mansion in 1969, multiple pavilion attractions at
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`EPCOT in Walt Disney World like Horizon’s Pavilion in 1983, a design I was
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`involved with for the Gene Autry Museum in Los Angeles opening in 1988, and
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`various interactive exhibits throughout the parks. Other parks and exhibits
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`followed the innovations at Disney, such as the Spirit Lodge at the Vancouver
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`EXPO in 1986, and the Knott’s Berry Farm Mystery Lodge Show in 1994. These
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`installations “set the stage” for my innovations with the phenomenon in the 1990’s.
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`My patents involving the virtual image illusion include a novel multi-plane virtual
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`image optical effect (U.S. Patent 5,368,309), an apparatus for superimposing a
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`virtual image on a synchronized transparency matrix (U.S. Patent 5,585,967), and a
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`symmetric game play apparatus (U.S. Patent 5,421,589) where players could see
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`each other through a synchronized game play region. They also include an
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`apparatus (U.S. Patent 5,671,091) for superimposing a virtual image onto an
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`interactive digitizing surface and synchronizing the imagery to the interactions on
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`the digitizing surface. In each of these cases, the apparatus was a significant
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`advance beyond the common and obvious uses of the basic optical effect.
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`13.
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`I have a Product Design Engineering Degree from Stanford University
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`in Palo Alto, California. I was a part of the pathfinding Engineering School
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`program at Stanford, dubbed “Product Design,” which was originated and still
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`exists inside the heart of the Silicon Valley digital innovation culture community.
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`The area of focus of my degree was innovative technical design and product
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`development. Stanford is a preeminent university not only for engineering of
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`technical systems, but also for the design of systems that allow humans to interface
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`and interact with digitally-created information systems. The current name of the
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`program I was involved in is the “Stanford D-School.” At Stanford, I studied with
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`the innovators who spawned the personal computing era and age, with ideas such
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`as the computer mouse, hand-held computing devices, novel user interface
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`concepts, and interactive software applications.
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`14.
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`In the course of my work as a professional innovator, I have been
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`through the process of the U.S. Patent office 14 times. My patent experience
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`includes integrated presentational systems, illusions involving beam-splitters,
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`virtual images and Pepper’s Ghost, digital media as well as software elements.
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`Therefore, not only am I familiar with the technical and perceptual issues
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`surrounding a Pepper’s Ghost system, but I am also reasonably familiar with the
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`conceptual and practical issues surrounding U.S. intellectual property process and
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`procedures, including basic understanding of legal concepts such as anticipation
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`and obviousness. Four of my patents relate directly to the use of 2-D display-based
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`virtual image systems (often referred-to as Pepper’s Ghost) in the service of
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`creating visual imagery with a “holographic” impression or styling.
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`15. My business also has a sustained capability and mission to innovate,
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`incubate, and deploy new ideas and intellectual property, for internal use with
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`clients as well as direct commercialization and monetization. We are currently
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`developing a next-generation digital-social-mobile content management platform
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`which has a provisional patent filed and fully working first-article beta software for
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`deployment on Apple iOS devices like iPad and iPhone. Software, particularly
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`software related to the creation of visual imagery like that used in Pepper’s Ghost
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`illusions, is a key part of our capability and my personal expertise. Another area of
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`innovation we are currently engaged in is the creation of a new form of premium
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`gallery art using digital imagery, presentation technologies, music, and animation,
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`with current work on display at a nationally-regarded museum, and professional
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`commission work in production.
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`16.
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`I am a performing professional musician, having studied classical,
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`flamenco, jazz, and bossa nova guitar for over thirty years. I studied composition
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`and music theory at Stanford, working with the academic faculty there, as well as
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`visiting professional musicians such as Stan Getz. As a professional musician, I
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`have composed, written, and arranged dozens of original songs, as well as having
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`arranged music for hundreds of songs used in performances. In the case of the
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`original songs, I have recorded three sets of these songs into “albums,” fixed in
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`digital form on CDs and digital Playlists for independent release. I have also
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`composed and arranged an original song used in a Hollywood Movie Trailer. In
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`the course of my work as a musician, I have become very familiar with the
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`creative, technical, talent, and business realities of producing creative work. This
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`includes the broad requirements and nuances of presenting shows to stage
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`audiences. So it could be said that I have spent time not only in the design of stage
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`and presentation systems, but I also have the perspective of being a performer in
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`stage shows. The latter has given me additional insight and exposure to the
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`workings of stage presentations and traditions.
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`17.
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`I am a frequent speaker, lecturer, and presenter to leadership groups,
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`addressing the topic of innovation, new idea development, and professional
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`creative process. Audiences I have addressed as a professional presenter have
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`included NASA’s Aerospace Enterprise, Stanford University’s Presidential
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`Lectures Series, The U.S. Department of Defense, the U.S. Open Source Center,
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`The Portland Creative Conference, and the American Institute of Architects. My
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`work as a professional speaker and presenter has given me additional experience
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`and depth of understanding of stage presentation technologies and craft.
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`II.
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`COMPENSATION
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`18.
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`In consideration for my services, my work on this case is being billed
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`to Cirque du Soleil at an hourly rate of $550 per hour, independent of the outcome
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`of this proceeding. I am also being reimbursed for reasonable expenses I incur in
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`relation to my services provided for this proceeding.
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`III.
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`LEGAL CONSIDERATIONS
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`19. My understanding of the law is based on information provided by
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`counsel for Cirque du Soleil.
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`20.
`
`I understand that a claimed invention is obvious and, therefore, not
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`patentable if the subject matter claimed would have been obvious to a person of
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`ordinary skill in the art at the relevant time (“a POSITA”).
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`I have been told that
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`the relevant time is August 31, 1996, and all of my opinions about what a POSITA
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`would have considered or been motivated to do, or otherwise found obvious, are as
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`of at least the relevant time. I understand that there must be some articulated
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`reasoning with some rational underpinning to support a conclusion of obviousness.
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`I further understand that exemplary rationales that may support a conclusion of
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`obviousness include: (1) simply arranging old elements in a way in which each
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`element performs the same function it was known to perform, and the arrangement
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`yields expected results, (2) merely substituting one element for another known
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`element in the field, and the substitution yields no more than a predictable result,
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`(3) combining elements in a way that was “obvious to try” because of a design
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`need or market pressure, where there was a finite number of identified, predictable
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`solutions, (4) whether design incentives or other market forces in a field prompted
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`variations in a work that were predictable to a person of ordinary skill in the art,
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`and (5) that some teaching, suggestion, or motivation in the prior art would have
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`led a POSITA to modify the prior art reference or to combine prior art references
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`to arrive at the claimed invention, among other rationales.
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`IV.
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`TASK SUMMARY
`
`21.
`
`I have been asked to review the challenged U.S. patent: the ’519
`
`Patent. I have been asked to provide my opinions from the perspective of a person
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`of ordinary skill, having knowledge of the relevant art, as of August 31, 1996, and
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`the opinions stated in this declaration are from that perspective. The qualifications
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`and abilities of such a person are described in paragraphs 53–67 below.
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`22.
`
`In preparing this declaration, I have considered this patent in its
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`entirety and the general knowledge of those familiar with the field of Special
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`Effects (“SFX”) Design, and specifically theater and entertainment special effects
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`technology design as of August 31, 1996.
`
`23.
`
`I have also reviewed the references in their entirety that form the basis
`
`for Cirqu(cid:72)(cid:3)(cid:71)(cid:88)(cid:3)(cid:54)(cid:82)(cid:79)(cid:72)(cid:76)(cid:79)(cid:182)(cid:86)(cid:3)(cid:70)(cid:75)(cid:68)(cid:79)(cid:79)(cid:72)(cid:81)(cid:74)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:1932)519 Patent, including the exhibits listed in
`
`the petition for inter parte (cid:85)(cid:72)(cid:89)(cid:76)(cid:72)(cid:90)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:1932)(cid:24)(cid:20)(cid:28)(cid:3)(cid:51)(cid:68)(cid:87)(cid:72)(cid:81)(cid:87)(cid:17)(cid:3)(cid:3)I have also reviewed my
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`own patents in the area.
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`24.
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`I understand that other issues may arise that require further
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`explanation, and I will provide that explanation if appropriate. As a result, I
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`respectfully reserve the right to update and supplement this declaration and the
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`information and opinions provided herein.
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`V.
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`FIELD OF TECHNOLOGY
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`25.
`
`The (cid:1932)519 Patent describes a classic Pepper’s Ghost stage illusion that
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`uses an image source arranged at a ceiling above a stage, a reflective surface
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`arranged on a floor, and a transparent smooth foil. Ex. 1001 at claim 1. To
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`understand the novelty claimed and to define a POSITA, it is necessary to first
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`discuss the history, and the current state of the industry in which a POSITA works.
`
`A.
`
`26.
`
`The Proscenium-Stage Theater
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`The industry at the core and origin of this professional field began
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`centuries ago with the invention of drama and, by extension, the proscenium-stage
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`theater. It all began as a platform for telling stories and creating spectacle for
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`audiences, oftentimes examining the human condition or crafting a narrative in an
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`imaginative, compelling way for audiences.
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`27.
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`Theater and magic shows can be traced in Western culture back to
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`Aristotle and the early Greeks, over 2,000 years ago. In Eastern and Asian cultures,
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`theatrical presentation far pre-dates the Western Incarnation, with very visual-
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`sensual stage presentations dating back to the seventh and eighth centuries B.C.
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`Asian stage presentations often exhibited extremely
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`fanciful costumes,
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`extraordinary feats of acrobat, and a visual artistry derived from a poetic narrative
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`sense.
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`28.
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`In recent centuries, most special effects and stage design systems were
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`mechanical and optical (including the well-known Pepper’s Ghost, c.1862), and
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`there are many well-refined technical systems that serve this relatively recent
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`incarnation of the field. Most notably in Western theater is the theatrical fly
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`system, common in the West beginning in the 1600’s, wherein flat, or near-flat sets
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`and fabrics/materials are suspended in tension via gravity and moved up and down
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`in the space on a stage. Moving, or “Flying” these elements up and down allows
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`for the advance of storytelling and presentation so that “Scenes” could be
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`presented and assembled for the audience.
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`29.
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`Furthermore, the fly systems have, for centuries, involved a linear
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`rigid member, known as a batten or “bar,” which is moved via multiple adjustable
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`tension members, known as a line set. The batten is regularly connected, via
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`multiple adjustable straps or connectors, to large sheets of material, such as curtain,
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`muslin, scrim, wood, plastic, or other materials.
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`30. Battens, line sets, and linear arrays of adjustable straps are
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`foundational to the oldest form of theater technology. There are myriad other
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`mechanical and optical effects invented and employed in theaters and opera
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`houses. Examples include the rigging of moving set pieces, linear perspective
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`illusions, masking, and localized illumination.
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`31. Notably, in the early 1800’s, illumination in theaters was generated by
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`candle and gas systems, including a particular system that used calcium oxide, or
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`“QuickLime” as an incandescent heating element, giving rise to the term
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`“Limelight.” The domain of stage presentation in the later decades of this era (the
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`late 1800’s) included performance types such as circus, vaudeville, drama, and
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`Victorian era magic.
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`B.
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`The Modern Age - Electricity and the Dawn of Cinema
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`32. With the advent of manageable electricity in the late 1800’s in
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`America and Europe, theatrical presentation took a substantial leap forward in
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`terms of technology that was integrated into presentations. Electricity allowed for
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`more elaborate and decorative illumination systems, with dimming, color changes,
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`and myriad related motorized mechanical effects. It was with the advent of
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`electricity that “Technical Theater” was born as a field, with expert technicians
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`required to design, produce, and operate these increasingly sophisticated systems.
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`Eventually, these technicians would take the role of Special Effects (“SFX”)
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`Designers. Of particular importance with these systems was safety and the
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`prevention of fire, which was why theaters were among the first to eschew the
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`dangerous lime burning in preference of electric lights. Articles espousing the
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`benefits and impacts of electricity in the theater industry can be found in the book,
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`“The History of Stage and Theater Lighting,” published by the Boston Edison
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`Company, c.1929.
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`33. Beginning in the early 20th century, a rapid advance of theatrical and
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`presentational special effects began to take place. First driving this advance was
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`the invention of motion pictures (and later television). With these advances,
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`happening most aggressively in America and Europe due to free enterprise market
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`forces, the distribution of images and content generated by stage presentations
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`could reach vastly larger audiences. As a result the fundamental economics of the
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`craft were transformed. Because much larger audience sizes could experience, and
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`pay for, a “show,” and because with television came the invention of interstitial
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`advertising, it made sense that the presentation systems in the competitive
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`marketplace could be more expensive, elaborate, and technically sophisticated.
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`34.
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`This transformation was profound. In America and Britain, parallel
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`industries were spawned serving the film industry, giving rise to Hollywood, as a
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`complement to London’s West End and New York City’s Broadway Theater
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`District home bases, and the myriad industrial supply fields emerged to support the
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`new forms of presentation. Major Studios were formed in the 1910’s and 1920’s,
`
`like Paramount, MGM, The Walt Disney Company, and Warner Brothers, each
`
`Page 19 of 88
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`

`
`capitalizing on the leveraging of spectacle and theatrical performance via the new-
`
`found forms of distribution.
`
`35. Commensurate with this rapid shift and expansion of the industry, the
`
`new era of theater and entertainment special effects technology design profession
`
`emerged. The technologist and design expertise for Special Effects rapidly
`
`expanded throughout the 20th Century to include new tools, new capabilities, and
`
`more advanced technical knowledge. The new technical domains included
`
`electronics, camera operation, motion control, sound stage lighting, audio
`
`synchronization, and pyrotechnics. Foundational
`
`to
`
`this new
`
`industrial
`
`transformation was the notion that a professional working in these industries had
`
`expertise that spanned “traditional” theater and new forms and techniques coming
`
`out of television and film. Being a project-based industry, a POSITA would be
`
`employed for a project, and may have needed to find work in other areas of the
`
`industry as projects came and went.
`
`36.
`
`In addition to the new advancements in film and television, a new
`
`platform emerged in the 20th Century, in the form of theme and amusement parks.
`
`Walt Disney invented this concept as an extension of World’s Fairs and
`
`Expositions, wherein guests would pay for admittance to a “park” that contained
`
`many varied presentation and ride system “venues.” Theme parks merged
`
`Page 20 of 88
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`

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`theatrical tradition with a new kind of “character architecture” to create fanciful
`
`and imaginary settings for amusement.
`
`37.
`
`The theme park (Disneyland opened in 1955) was a new and
`
`spectacular fusion of classical theater and film-television level storytelling. It
`
`spawned a new era of technology and art integration, toward the creation of
`
`immersive experiences. Theme parks advanced a new concept in the industry with
`
`the “Dark Ride,” wherein guests boarded a slow-moving vehicle to be transported
`
`through scenes and special effects in a short, magical “journey” of one form or
`
`another. These Dark Rides drove many
`
`innovations and presentational
`
`configurations that are today part of the lexicon of the SFX Design tradition.
`
`38. Around 1990, this set of theme park discoveries and design
`
`expressions was integrated with another commercial sector, namely gambling, or
`
`“Gaming.” In the late 20th Century, casino operators discovered that many of the
`
`techniques and technologies employed by theme park operators could be employed
`
`to amuse and attract customers to their parlors. So they began to employ the
`
`techniques in creating architectural attractions, as well as installing grand theaters
`
`for spectacular shows. Their unusual economic model, wherein gambling guests
`
`are willing to lose vast amounts of cash in a bid to “beat the odds” at blackjack,
`
`roulette, slot-machines, video-poker, and baccarat accelerated the development of
`
`many show technologies.
`
`Page 21 of 88
`
`

`
`39.
`
`Simultaneous with the advent of theme parks and casinos as design
`
`venues, came the invention and commercialization of the transistor, the
`
`semiconductor, computers, and an entire new world of digital software systems.
`
`These developments, along with the advent of electronic image projection devices,
`
`opened vast new doors for the control of shows, the creation of imagery, the
`
`projection of imagery, and the integration of interactive elements to what had been
`
`a substantially mechanical field until this period. Theme parks and casinos in this
`
`period, from 1950 up through today, began to build sensational environments and
`
`theatrical venues, with massive fountain shows, volcanos, pirate ships, explosions,
`
`illusions, projected imagery, and other effects.
`
`C.
`
`40.
`
`Special Area of Technology Access - U.S. & Global Military R&D
`
`To a POSITA during the 1980’s and 1990’s, it was also natural to be
`
`studying and exploring new technologies being developed in the military, or for
`
`military use, and indeed cross-over between entertainment and military R&D was
`
`commonplace.1
`
`1 Defense contractors often partnered with entertainment companies. See, e.g.,
`
`Hughes Aircraft partnership with JVC in their joint promotion of high lumen
`
`projector systems originally developed for aircraft simulators. Ex. 1016 at 1.
`
`Page 22 of 88
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`

`
`41.
`
`The best projectors, the fastest computers, new semiconductor light
`
`sources (LEDs), new materials, lasers, new display systems, motion base
`
`simulators, graphics supercomputers, and myriad other technology wave fronts
`
`were emerging there. This was due to the U.S. federal government’s extraordinary
`
`investment in these technologies in the service of national security. Additionally,
`
`during the 1990’s the Cold War was in remission, so many vendors normally
`
`dedicated to the military space began to seek market penetration in other
`
`commercial sectors, like entertainment. So any
`
`trade show or marketplace for technologies
`
`could see a cross-over of vendors and
`
`laboratories showcasing their wares across these
`
`seemingly disparate industries.
`
`42.
`
`Even before the end of the cold war, we saw cross-pollination
`
`between the military and entertainment industries. Pepper’s Ghost technology
`
`used in military aircraft heads-up displays
`
`(like the 1937 Messerschmidt heads-up
`
`display shown above) found its way into
`
`television by way of the teleprompter (U.S.
`
`Patent 2,883,902 shown). Ex. 1017 at 72.
`
`Page 23 of 88
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`

`
`Both of these devices used Pepper’s Ghost
`
`configur

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