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`____________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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` ____________
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`GAMELOFT, INC.
`Petitioner
`
`v.
`
`INVENTOR HOLDINGS, LLC
`Patent Owner
`
`____________
`
`Case No. TBD
`Patent 8,784,198
` ____________
`
`
`
`DECLARATION OF DR. MICHAEL ZYDA
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`Petitioners Ex. 1007 Page 1
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`I, Michael Zyda, hereby declare the following:
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`I.
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`BACKGROUND AND EDUCATION
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`1.
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`I began my career in Computer Graphics in 1973 as part of an
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`undergraduate research group, the Senses Bureau, at the University of California,
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`San Diego. I received a BA in Bioengineering from the University of California,
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`San Diego in La Jolla in 1976, an MS in Computer and Information Science from
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`the University of Massachusetts, Amherst in 1978 and a DSc in Computer Science
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`from Washington University, St. Louis, Missouri in 1984.
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`2.
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`I am the Founding Director of the University of Southern California
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`(USC) GamePipe Laboratory, and a Professor of Engineering Practice in the USC
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`Department of Computer Science. At USC, I founded the USC Games joint
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`Advanced Games course and took the USC Games program from no program to
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`the preeminent Games program in the world in five years. The USC Games
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`program has been rated #1 by the Princeton Review for six straight years. My
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`alums have shipped games played by over 2.5 billion players. From Fall 2000 to
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`Fall 2004, I was the Founding Director of the MOVES Institute located at the
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`Naval Postgraduate School, Monterey and a Professor in the Department of
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`Computer Science at NPS as well. From 1986 until the formation of the MOVES
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`Institute, I was the Director of the NPSNET Research Group. My research interests
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`include computer graphics, large-scale, networked 3D virtual environments and
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`games, agent-based simulation, modeling human and organizational behavior,
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`interactive computer-generated story, computer-generated characters, video
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`production, entertainment/defense collaboration, modeling and simulation, and
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`serious and entertainment games. I am considered a pioneer in the following fields
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`- computer graphics, networked virtual environments, modeling and simulation,
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`and serious and entertainment games. I hold a lifetime appointment as a National
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`Associate of the National Academies, an appointment made by the Council of the
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`National Academy of Sciences in November 2003, awarded in recognition of
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`“extraordinary service” to the National Academies. I am a member of the
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`Academy of Interactive Arts & Sciences. I served as the principal investigator and
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`development director of the America’s Army PC game funded by the Assistant
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`Secretary of the Army for Manpower and Reserve Affairs. I took America’s Army
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`from conception to three million plus registered players and hence, transformed
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`Army recruiting. The creation of the America’s Army game founded the serious
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`games field. I also co-hold two patents that form the basis for the 9-axis sensor in
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`the Nintendo Wii U.
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`3.
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`I began working in the networked visual simulation field in 1987. I
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`received my first large piece of funding in that area from DARPA in 1991 as part
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`of the Warbreaker Program. My research group’s role in that program was to build
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`a low-cost, workstation based (Silicon Graphics workstations) visual simulator that
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`could read SIMNET data packets and SIMNET terrain databases. By 1993, our
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`NPSNET system could interoperate with SIMNET and the DIS standard and take
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`part in the large-scale exercises that were part of the Warbreaker Program. As part
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`of Warbreaker, we received a connection to the Defense Simulation Internet,
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`DSINET. DSINET was a network dedicated to large-scale military simulation
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`exercises. The DSINET supported the use of SIMNET and DIS (Distributed
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`Interactive Simulation) network packets as well as simultaneous video
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`teleconferencing. In August 1993, DARPA funded my program to put on a joint
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`demonstration with the Air Force Institute of Technology (AFIT) at the annual
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`SIGGRAPH Conference in Anaheim, California. Our team purchased a T-1 link
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`that connected our Anaheim-based LAN to the DSINET. We ran a demonstration
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`showing off NPSNET connected to the AFIT-HOTAS system and had some 50
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`workstations playing inside of that demonstration. We put on a special
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`demonstration for the Director of DARPA, who was in his office in Arlington, VA.
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`During that demonstration, the DARPA Director could watch what was going on
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`from a workstation on the DSINET in Arlington and speak to us by video link
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`across the DSINET at the same time. We additionally spoke to our Program
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`Manager across the DSINET to Arlington. We continued to utilize the DSINET in
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`developing the NPSNET system through the end of 1996.
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`4.
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`In 1994, the NPSNET Research Group began to experiment with the
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`then new Multicase Backbone of the Internet (Mbone). The Mbone was a virtual
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`network built on top of the Internet and invented by Van Jacobson, Steve Deering
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`and Stephen Casner in 1992. The purpose of Mbone was to minimize the amount
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`of data required for multipoint audio and video conferencing. Mbone was free and
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`it used a network of routers that supported IP multicast, and it enabled access to
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`real-time interactive multimedia on the Internet, including networked simulation
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`packets, game packets and video conferencing. The first visual simulation system
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`to play on the Mbone was NPSNET in 1994.
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`5.
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`I also attach as Appendix A a recent and complete curriculum vitae,
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`which details my educational and professional background and publications.
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`6.
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`I am submitting this declaration to offer my independent expert
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`opinion concerning certain issues raised in the petition for inter partes review
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`(“Petition”) regarding U.S. Patent No. 8,784,198 (“the ‘198 Patent”). My
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`compensation is not based on the substance of the opinions rendered here. As part
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`of my work in connection with this matter, I have studied the ‘198 Patent,
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`including its written descriptions, figures, and claims, as well as the prosecution
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`file history of the ‘198 Patent. In addition I reviewed the Petition. I have also
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`carefully considered the following references discussed in the Petition:
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`• U.S. Patent No. 5,768,382 to Schneier, et al., (“Schneier”), entitled
`“Remote-Auditing
`of Computer Generated Outcomes
`and
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`Petitioners Ex. 1007 Page 5
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`and Access Control System Using
`Authenticated Billing
`Cryptographic and Other Protocols,” filed on November 22, 1995 and
`issued on June 16, 1998 [Exhibit 1003]
`• U.S. Patent No. 8,002,617 to Uskela, et al. (“Uskela”), entitled
`“Sponsored Network Games,” filed September 27, 1999 and issued on
`August 23, 2011 [Exhibit 1004]
`• U.S. Patent No. 5,624,316 to Roskowski, et al. (“Roskowski”),
`entitled “Video Game Enhancer with Integral Modem and Smart Card
`Interface,” filed June 6, 1994 and issued on April 29, 1997 [Exhibit
`1005]
`• U.S. Patent No. 6,041,316 to Allen (“Allen”), entitled “Method and
`System for Ensuring Royalty Payments for Data Delivered over a
`Network,” filed on July 25, 1994 and issued on March 21, 2000
`[Exhibit 1006]
`II. Legal Framework
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`7.
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`I understand that there are two ways in which a prior art patent or
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`printed publication can be used to invalidate a patent. First, the prior art can be
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`shown to “anticipate” the claim. Second, the prior art can be shown to “render
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`obvious” the claim. My understanding of the two legal standards is set forth below.
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`8.
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`I understand that, in general, for a patent claim to be invalid as
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`“anticipated” by the prior art, each and every feature of the claim must be found,
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`expressly or inherently, in a single prior art reference or product arranged as in the
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`claim. Claim limitations that are not expressly found in a prior art reference are
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`inherent if the prior art necessarily functions in accordance with, or includes, the
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`claim limitations.
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`9.
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`I further understand that an inventor is not entitled to a patent if his or
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`her invention would have been obvious to a person of ordinary skill in the field of
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`the invention at the time the invention was made. I understand that a patent claim
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`is not patentable under 35 U.S.C. § 103 if the differences between the patent claim
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`and the prior art are such that the claimed subject matter as a whole would have
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`been obvious at the time the claimed invention was made to a person having
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`ordinary skill in the art to which the subject matter pertains. Obviousness, as I
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`understand it, is based on the scope and content of the prior art, the differences
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`between the prior art and the claim, the level of ordinary skill in the art, and, to the
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`extent that they exist and have an appropriate nexus to the claimed invention (as
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`opposed to prior art features), secondary indicia of non-obviousness.
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`10.
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`I have been informed that whether there are any relevant differences
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`between the prior art and the claimed invention is to be analyzed from the view of
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`a person of ordinary skill in the art at the time of the invention, in this case
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`February 18, 2000. As such, my opinions below as to a person of ordinary skill in
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`the art are as of the time of the invention, even if not expressly stated as such; for
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`example, even if stated in the present tense.
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`11.
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`In analyzing the relevance of the differences between the claimed
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`invention and the prior art, I have been informed that I must consider the impact, if
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`any, of such differences on the obviousness or non-obviousness of the invention as
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`a whole, not merely some portion of it. The person of ordinary skill faced with a
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`problem is able to apply his or her experience and ability to solve the problem and
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`also look to any available prior art to help solve the problem.
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`12. An invention is obvious if a person of ordinary skill in the art, facing
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`the wide range of needs created by developments in the field, would have seen an
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`obvious benefit to the solutions tried by the applicant. When there is a design need
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`or market pressure to solve a problem and there are a finite number of identified,
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`predictable solutions, it would be obvious to a person of ordinary skill to try the
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`known options. If a technique has been used to improve one device, and a person
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`of ordinary skill in the art would recognize that it would improve similar devices in
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`the same way, using the technique would have been obvious.
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`13.
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`It is my understanding that a precise teaching in the prior art directed
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`to the subject matter of the claimed invention is not needed and that one may take
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`into account the inferences and creative steps that a person of ordinary skill in the
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`art would have employed in reviewing the prior art at the time of the invention.
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`For example, if the claimed invention combined elements known in the prior art
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`and the combination yielded results that were predictable to a person of ordinary
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`skill in the art at the time of the invention, then this evidence would make it more
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`likely that the claim was obvious. On the other hand, if the combination of known
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`elements yielded unexpected or unpredictable results, or if the prior art teaches
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`away from combining the known elements, then this evidence would make it more
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`likely that the claim that successfully combined those elements was not obvious.
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`14.
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`I understand that hindsight must not be used when comparing the
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`prior art to the invention for obviousness.
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`15.
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`It is my understanding that obviousness may also be shown by
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`demonstrating that it would have been obvious to modify what is taught in a single
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`piece of prior art to create the subject matter of the patent claim. Obviousness may
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`be shown by showing that it would have been obvious to combine the teachings of
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`more than one item of prior art. In determining whether a piece of prior art could
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`have been combined with other prior art or combined with or modified in view of
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`other information within the knowledge of one of ordinary skill in the art, the
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`following are examples of approaches and rationales that may be considered:
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`• Combining prior art elements according to known methods to yield
`predictable results;
`• Simple substitution of one known element for another to obtain
`predictable results;
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`• Use of a known technique to improve similar devices (methods, or
`products) in the same way;
`• Applying a known technique to a known device (method, or product)
`ready for improvement to yield predictable results;
`• Applying a technique or approach that would have been "obvious to
`try" (choosing from a finite number of identified, predictable
`solutions, with a reasonable expectation of success);
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`• Known work in one field of endeavor may prompt variations of it for
`use in either the same field or a different one based on design
`incentives or other market forces if the variations would have been
`predictable to one of ordinary skill in the art; or
`• Some teaching, suggestion, or motivation in the prior art that would
`have led one of ordinary skill to modify the prior art reference or to
`combine prior art reference teachings to arrive at the claimed
`invention.
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`16.
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`I understand that the rationale for modifying a reference and/or
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`combining references may come from sources such as explicit statements in the
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`prior art, or the knowledge of one of ordinary skill in the art, including any need or
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`problem known in the field at the time, even if different from the specific need or
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`problem addressed by the inventor of the patent claim.
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`III. OPINION
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`A. Level of a Person Having Ordinary Skill in the Art
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`17.
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`In my opinion, one of ordinary skill in the art to which the application
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`that issued as the ‘198 patent claims priority (February 18, 2000) would have had
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`at minimum a bachelor’s degree in electrical engineering or computer science or a
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`related field, or two or more years of software programming experience.
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`18. As demonstrated by my experience listed above, I more than meet the
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`definition of one of ordinary skill in the art.
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`B.
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`State of the Art
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`19. The ‘198 Patent claims priority to U.S. Provisional App. No.
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`60/183,391, which was filed February 18, 2000. The ‘198 Patent is directed to
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`conducting a promotion by providing an unlock code to reveal a locked outcome.
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`Such systems were well known in the art before the priority date of the ‘198
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`Patent. As disclosed in the ‘198 Patent specification, merchants for years have
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`been offering promotions that give customers a chance to win a prize in order to
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`entice customers to visit a store, try a product, or spend a certain amount in the
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`store.
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`Merchants and manufacturers often use promotions to entice people to
`try or purchase products, shop or conduct transactions in certain stores
`or to make people aware of products, store locations, sales, etc.
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`Ex. 1001, ‘198 Patent at 1:34-37.
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`20. According to the specification of the ‘198 Patent, an unlock code can
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`essentially be anything:
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`An unlock code can comprise or include a written, spoken or data
`entered password, a radio or television signal, a sequence or group of
`keypad selections or entries, a sequence or group of handwritten or
`spoken entries, an electronic or electromagnetic signal, a numerical or
`alphanumerical sequence, a sequence, group or combination of
`musical notes or other sounds, words, syllables, phrases, tones, etc. to
`be provided audibly or symbolically to unlock an outcome, a barcode,
`a decoding key, rule or algorithm for a code or cypher, etc.
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`Ex. 1001, ‘198 patent at 5:42-51. Providing a coupon or game piece (an “unlock
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`code”) to reveal the benefit of a prize (a “locked outcome”) is a well-understood,
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`routine, and conventional promotional tool. Aside from the generic “computer-
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`readable medium” and “mobile device,” nothing differs such activity from a person
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`participating in a promotion – such as playing a “classic lottery,” which “allows a
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`person to pick or receive a set of numbers associated with a lottery ticket. If the
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`person’s numbers are chosen, the person generally wins a monetary prize.” See,
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`e.g., Ex. 1001, ‘198 patent at 1:63-65. In such a scenario, the lottery ticket would
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`comprise an “unlock code” that would permit the user to “unlock” the outcome of
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`winning – which is associated with the “benefit” of the monetary prize. Likewise,
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`this is truly no different than playing a board game and not being able to move
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`forward until you roll a set of doubles (the “unlock code”), or permitting a user to
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`draw a “Community Chest” card, which could provide a benefit of an
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`“advancement” or “enhancement” of the game, such as sending a user to the “Go”
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`square. Board games and lotteries both were around long before the priority date of
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`the ‘198 Patent. See e.g., Appendix B, Monopoly Instructions at 2, 3, 5.
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`21. The ‘198 Patent appears to merely implement these well known and
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`widely utilized concepts on a generic mobile device. However, this too has been
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`done since at least the late 1990s. For example, portable game machines, such as
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`Nintendo’s Game Boy, were released before February 18, 2000 and included a
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`processor, memory, display and operating keys that received input from the user to
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`effect gameplay. See e.g., Appendix C, U.S. Patent No. 6,315,669 to Okada, et al.
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`at 1:30-35, 4:29-35, 4:55-5:4; see also, e.g., Appendix D, U.S. Patent No.
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`6,716,103 to Eck, et al. (“Eck”) at 2:44-46, 3:19-33, 12:47-50. In the year 1997
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`Parker Brothers had even released a version of Monopoly on an electronic hand-
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`held device, which included the features of the board game discussed above. See
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`e.g., Appendix E, Electronic Hand-Held Game Monopoly Instructions.
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`22. By this time, game producers had also begun to provide additional
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`content to supplement games, which users could download via a network. See e.g.,
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`Ex. 1005, Roskowski at 5:62-6:6. This allowed game providers to create add-ons
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`and upgrades for games. See e.g., id. at 6:35-46. By offering additional game
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`content for profit, game providers could continue to make sales off of a game that
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`was already released for public use. Additionally, by receiving new content, game
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`players could continue enjoying a favorite game as if it were new again. See e.g.,
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`Ex. 1005, Roskowski at 6:35-46; Appendix D, Eck at 10:45-49. For example, a
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`system
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`that configured
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`the Game Boy for wireless communication was
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`contemplated which allowed a user to receive messages and downloads from a
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`system operator, including benefits such as mini-games, special game levels, game
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`hints, and items for customizing the game character. See e.g., Appendix D, Eck at
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`3:19-31, 9:40-56, 10:45-49, 12:20-27.
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`23. Further, these early systems allowed a user to buy credits or to earn
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`credits by performing an activity. Id. at 18:57-60. These credits were used in the
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`game to purchase items, for example. Id. at 12:59-61, 18:18-21, 18:24-26. Players
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`could instead obtain advances in a game or alternate game modes by entering a
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`cheat code. See e.g., Appendix F, Planet Game Boy Issue 1, Summer 99, pp. 94-
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`97.
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`24. Additionally, these early systems included other features such as GPS
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`circuitry to determine the user’s position, which could then be used during the
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`execution of the video game program. See e.g., Ex. 1003, Schneier at 14:39-15:2;
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`Ex. 1004, Uskela at 7:30-32, 7:57-59, 7:64-67;.
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`C.
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`25.
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`Schneier
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`I was asked to consider whether the disclosed input control devices of
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`Schneier were capable of facilitating play of a game on the portable game device,
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`and causing progress in a game. Claim 1 recites “facilitate play of the game by
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`recognizing inputs from the user via the input mechanism;” and claim 18 recites
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`“facilitating play of a game on the mobile device by recognizing inputs provided
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`by a user via an input mechanism of the mobile device, at least one of the inputs
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`causing progress in the game.” Ex. 1001, ‘198 Patent at claims 1 and 18. It is my
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`opinion that Schneier meets these claim limitations.
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`26. Schneier discloses a portable game device, such as a Game Boy,
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`which includes software programs for generating games.
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`The term “game computer’ is intended to include personal computers
`(“PCs”), personal digital assistants, coin-operated arcade video game
`machines, television units coupled to game units (e.g., game consoles
`such as Nintendo, Sega, etc.) and portable game devices (e.g., GAME
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`
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`14
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`Petitioners Ex. 1007 Page 14
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`BOY, GAME GEAR, NOMAD and the like). [] Each game computer
`14 contains software and/or firmware (for convenience, all references
`herein to programs are to “software”) which generates games of the
`type well known in the art.
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`Ex. 1003, Schneier at 5:32-42. The portable game device includes input control
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`devices such as buttons or other controls, which are manipulated by the user to
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`effect game play.
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`The game computer may also have an associated input control device
`17, such as a joystick (shown) as is well known in the art. The
`input/output device 17 may comprise multiple joysticks or controls for
`players to play against each other.
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`Ex. 1003, Schneier at 5:63-67.
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`The game controller 504 includes input controls such as joysticks and
`buttons which communicate via an input interface associated with the
`game computer 14 as is well known in the art.
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`Ex. 1003, Schneier at 43:63-66. One of ordinary skill in the art would have
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`recognized that the input control devices of Schneier are capable of facilitating
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`play of a game as required by the claims of the ‘198 Patent. Likewise, one of
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`ordinary skill in the art would have also recognized the input control devices of
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`Schneier are also capable of causing progress in the game.
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`27. For example, Schneier discloses the portable game device generates
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`games of skill of the type well known in the art such as the game Mortal Kombat.
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`Other well known games of skill (e.g., SONIC AND KNUCKLES,
`VECTORMAN, DONKEY KONG COUNTRY, MORTAL
`KOMBAT, STREET FIGHTER, etc.) include those played on
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`
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`Petitioners Ex. 1007 Page 15
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`dedicated gaming machines such as game consoles, in an arcade or
`other place where such gaming machines reside.
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`Ex. 1003, Schneier at 8:30-35. In my opinion these types of games necessarily
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`require inputs from the user to facilitate game play and to cause progress in the
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`game. See for example the Mortal Kombat instruction booklet, which depicts
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`certain moves that are implemented by pressing different combinations of the
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`buttons on the Game Boy. As depicted in the image below, players may press the
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`button labeled “A” to perform a kick against their opponent or press the button
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`labeled “B” to perform a punch:
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`
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`Appendix G, Mortal Kombat Instruction Booklet at 13; see also, id. at 13-17.
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`28. During game play the players press the input buttons on the Game
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`Boy to perform moves in battle against their opponents. When the player
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`successfully hits his/her opponent using one of these moves, the opponent’s health
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`16
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`Petitioners Ex. 1007 Page 16
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`meter is reduced. Once the opponent’s health meter runs out then the player has
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`won the round and advances in the game to compete against the next opponent.
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`In all Mortal Kombat battles, meters in the upper-left and upper-right
`corners of the screen measure the health of each warrior.
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`The meters begin each round at full health, but are reduced with each
`blow taken. The amount of the reduction depends both on the type of
`hit and whether or not it was blocked. When a warrior’s health meter
`runs out, he is knocked out and the round is awarded to his opponent.
`[…] The first warrior to win two rounds takes the match and moves
`on to his next opponent.
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`Appendix G, Mortal Kombat Instruction Booklet at 7-8. The player must complete
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`all of the challenges by successfully defeating all of his/her opponents, to win the
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`title of Grand Champion and finish the game.
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`When you see the Mortal Kombat® title screen, press the START
`BUTTON to begin the one-player battle for the title of Grand
`Champion.
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`Appendix G, Mortal Kombat Instruction Booklet at 4.
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`Only when a warrior has succeeded in each of these challenges has he
`proved himself worthy of meeting the Grand Champion, Goro, in
`battle. If Goro is defeated, the demon Shang Tsung will enter the
`contest to oppose you! Defeat him to become the Supreme Mortal
`Kombat Warrior!
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`Appendix G, Mortal Kombat Instruction Booklet at 10.
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`29. One of ordinary skill in the art would understand that games, such as
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`Mortal Kombat, require a game device, such as the Game Boy, to recognize inputs
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`from the user in order to facilitate play of the game and to cause and display
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`
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`17
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`Petitioners Ex. 1007 Page 17
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`progress in the game. As such, Schneier discloses facilitating play of a game on the
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`portable game device, and causing progress in a game and thus meets the
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`corresponding limitations of claims 1 and 18.
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`30.
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`I was also asked to consider whether Schneier renders claims 3 and 22
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`obvious. To the extent that Schneier does not disclose the limitations of claims 3
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`and 22 (which I am not providing an opinion on), it is my opinion that it would
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`have been obvious to one of ordinary skill in the art to modify Schneier to include
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`a third party that sends confirmation messages (“CMs”) over a network to a mobile
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`device. Specifically, Schneier discloses that a central controller authenticates
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`outcomes of a game. See generally, Ex. 1003, Schneier at 27:1-28:44. The central
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`computer then generates a confirmation message which can be used by game
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`computers to access special features or game modifications.
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`At step 181, the central computer 12 may generate a confirmation
`message CM which, when communicated to the game computer 14,
`can be used by the game software 15 to cause the game computer 14
`to display a certified scoreboard with language to the effect that a
`particular outcome (e.g., score) was certified by the central computer
`12. The same confirmation message CM can be utilized by the game
`software 15 to direct the game computer 14 to generate special
`symbols or medallions as a result of an established level of
`competence. These may be made to appear on the screen with an
`identification of the player during subsequent game play. In view of
`the competitive nature of videogames, this feature greatly enhances
`their play value games by providing for recognition of the player's
`achievements.
`
`Ex. 1003, Schneier at 28:30-44.
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`
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`18
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`Petitioners Ex. 1007 Page 18
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`
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`Prizes or awards can also be offered on an exclusive basis to players
`who achieve certain skill levels. . . . An award for achieving a
`certified level of play may include the incorporation into the game
`software 15 the player's name in background graffiti on the actual
`game screens, renaming game characters, or the modification of the
`game play or visuals in some other subtle manner until a new higher
`scoring player is allowed to change these altered characteristics.
`
`Id. at 28:59-29:6.
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`The confirmation message CM may also be utilized to unlock certain
`attributes of a game that are only encountered by high scoring players.
`For example, a top scoring player who receives a certified score, may
`be provided with a confirmation message CM that, when read by any
`game computer 14 with the game software 15, allows players on that
`game computer 14 to view special hidden characters or final stages of
`the game, which are not normally encountered until a certain level or
`score is attained.
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`Id. at 29:52-59.
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`31. Schneier expressly contemplates utilizing a third party to handle CMs,
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`tournament rankings, ratings and prize distribution. Id. at 30:4-10. Schneier also
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`expressly contemplates utilizing a network for communications between local and
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`remote (i.e., central or third party) computers. Id. at 7:8-31, 30:8-10. Modifying
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`Schneier, to the extent not already disclosed, to allow a game computer to receive a
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`signal from a third party that allows the user to access a prize would have been
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`obvious to one of ordinary skill in the art. Indeed, utilizing a third party for
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`communications with a game computer would have reduced the burden on the
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`central computer. Such routine tasks were, and are, frequently outsourced to third
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`parties so as to the not overload a company’s servers. Thus, this modification
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`
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`19
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`Petitioners Ex. 1007 Page 19
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`
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`would have been well within the skill of one in the art through contracting with a
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`third party to be responsible for this task. This is little more than using a third
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`party to perform certain tasks of the central computer, which would have a
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`reasonable expectation of success and yielded extremely predictable results.
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`D.
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`32.
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`Schneier and Allen
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`It is my opinion that it would have been obvious to a person having
`
`ordinary skill in the art to combine the embodiments and functionalities described
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`in Schneier with the downloading functionality described by Allen. I have
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`reviewed and considered the entire Schneier and Allen references, and I provide
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`exemplary citations below regarding my analysis.
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`33. Schneier and Allen both contemplate communication via a network.
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`For example, Schneier discloses that a game computer (i.e., personal computer,
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`personal digital assistant, portable game device) is able to access a central
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`computer over the Internet:
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`In the embodiment shown in FIG. 1A, the system is principally
`comprised of a central computer 12 associated with a central
`authority, and a plurality of game computers 14. The term "game
`computer" is intended to include personal computers ("PCs"),
`personal digital assistants, coin-operated arcade video gaming
`machines, television units coupled to game units (e.g., game consoles
`such as Nintendo, Sega, etc.) and portable game devices (e.g., GAME
`BOY, GAME GEAR, NOMAD and the like). For the purpose of
`description, the game computer depicted in the drawings replicates a
`standard PC. Each game computer 14 contains software and/or
`firmware (for convenience, all references herein to programs are to
`"software") which generates games of the type well known in the art.
`
`
`
`20
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`Petitioners Ex. 1007 Page 20
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`
`
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`Ex. 1003, Schneier at 5:29-42.
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`In an alternative embodiment shown in FIG. 2, the game computers
`14 may communicate with the central computer 12 via a modem 20.
`… it is anticipated that the central computer 12 may be accessed via a
`website 22 on the Internet 24 or over an on-line data network
`including commercial on-line service providers, bulletin board
`systems and the like, as shown schematically in FIG. 3.
`
`Id. at 7:8-21. Allen similarly describes a user terminal (i.e., personal computer) is
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`in communication with a digital data processor and a provider database over a
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`network:
`
`FIG. 1 is a block diagram of an exemplary system 10 for delivering
`data in accordance with the present invention. The system 10 includes
`a number of user terminals 14, a network 18, a digital data processor
`20 and a provider database 22. The user terminals 14 may be, for
`example, personal computer terminals, and are connected in a manner
`well-known in the art to communicate over network 18 with other
`user terminals and the provider database 22. The network 18 may be a
`local-area network (LAN), a wide-area-network (WAN), a local or
`long-distance telephone switching network, or any of a number of
`other communication networks.
`
`Ex. 1006, Allen at 3:42-53. Both systems also disclose encrypting game software.
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`By the time of the purported invention of the ‘198 Patent, encryption algorithms
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`were well known to those of ordinary skill in the art. Schneier discloses game
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`software and encryption algorithms or keys that are stored in memory of the game
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`computer and in another embodiment that the game program includes scrambled
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`game data:
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`
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`21
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`Petitioners Ex. 1007 Page 21
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`
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`Referring now to FIG. 4E, all game