`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`In the Inter Partes Review of:
`
`Trial Number: To Be Assigned
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`
`
`U.S. Patent No. 8,559,635
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`Filed: May 24, 1995
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`Issued: October 15, 2013
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`Inventor(s): John Christopher Harvey, James
`William Cuddihy
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`Assignee: Personalized Media
`Communications, LLC
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`
`
`
`
`
`
`
`
`
`
`Title: Signal processing apparatus and methods Panel: To Be Assigned
`
`Mail Stop Inter Partes Review
`Commissions for Patents
`P.O. Box 1450
`Alexandria, VA 22313-1450
`
`
`
`
`DECLARATION OF ANTHONY J. WECHSELBERGER UNDER 37 C.F.R.
`§ 1.68 IN SUPPORT OF PETITION FOR INTER PARTES REVIEW OF
`U.S. PATENT NO. 8,559,635
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`
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`PMC Exhibit 2019
`Apple v. PMC
`IPR2016-01520
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`Declaration of Anthony J. Wechselberger Under 37 C.F.R. § 1.68 in Support of
`Petition for Inter Partes Review of U.S. Patent No. 8,559,635
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`Table of Contents
`
`I.
`
`II.
`
`Introduction ...................................................................................................... 1
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`Background and Qualifications ....................................................................... 3
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`III. Understanding of Patent Law ........................................................................ 11
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`IV. Background .................................................................................................... 13
`
`A.
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`Background of the Field Relevant to the ’635 Patent ......................... 13
`
`1.
`
`2.
`
`3.
`
`4.
`
`NTSC Television Transmission Technology ............................ 14
`
`Embedded Digital Information in NTSC Television
`Transmissions ............................................................................ 18
`
`Pay TV and Content Protection ................................................ 26
`
`Decryption and Descrambling .................................................. 30
`
`Summary of the ’635 Patent ................................................................ 32
`
`Summary of the Prosecution History .................................................. 35
`
`B.
`
`C.
`
`V.
`
`Level of Ordinary Skill in the Pertinent Art .................................................. 35
`
`VI. Broadest Reasonable Interpretation ............................................................... 36
`
`1.
`
`2.
`
`3.
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`“Decrypting” ............................................................................. 36
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`“Processor” ................................................................................ 36
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`“Encrypted digital information transmission . . .
`unaccompanied by any non-digital information
`transmission” ............................................................................. 37
`
`VII. Background on Prior Art References ............................................................ 38
`
`A.
`
`B.
`
`C.
`
`Background on Guillou ....................................................................... 38
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`Background on Aminetzah .................................................................. 41
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`Background on Bitzer .......................................................................... 43
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`Declaration of Anthony J. Wechselberger Under 37 C.F.R. § 1.68 in Support of
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`VIII. Claims 1-4, 7, 13, 18, 20, 21, 28-30, 32, and 33 Are Invalid Over
`Guillou ........................................................................................................... 43
`
`1.
`
`2.
`
`3.
`
`4.
`
`5.
`
`6.
`
`7.
`
`8.
`
`9.
`
`Claim 1 Is Anticipated By Guillou ........................................... 43
`
`Claim 2 Is Anticipated By Guillou ........................................... 52
`
`Claim 3 Is Anticipated By Guillou ........................................... 58
`
`Claim 4 Is Obvious Over Guillou ............................................. 66
`
`Claim 7 Is Anticipated By Guillou ........................................... 67
`
`Claim 13 Is Obvious Over Guillou ........................................... 68
`
`Claim 18 Is Obvious Over Guillou ........................................... 77
`
`Claim 20 Is Obvious Over Guillou ........................................... 86
`
`Claim 21 Is Anticipated By Guillou ......................................... 89
`
`10. Claim 28 Is Obvious Over Guillou ........................................... 95
`
`11. Claim 29 Is Anticipated By Guillou ......................................... 96
`
`12. Claim 30 Is Obvious Over Guillou ........................................... 97
`
`13. Claim 32 Is Obvious Over Guillou ......................................... 100
`
`14. Claim 33 Is Obvious Over Guillou ......................................... 102
`
`IX. Claims 1-4, 7, 18, 20, 21, 28-30, and 33 Are Invalid Over Aminetzah ...... 105
`
`1.
`
`2.
`
`3.
`
`4.
`
`5.
`
`6.
`
`Claim 1 Is Obvious Over Aminetzah in View of Bitzer ......... 106
`
`Claim 2 Is Obvious Over Aminetzah in View of Bitzer ......... 117
`
`Claim 3 Is Obvious Over Aminetzah ...................................... 121
`
`Claim 4 Is Obvious Over Aminetzah in View of Bitzer ......... 128
`
`Claim 7 Is Obvious Over Aminetzah in View of Bitzer ......... 129
`
`Claim 18 Is Obvious Over Aminetzah in View of Bitzer ....... 130
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`Declaration of Anthony J. Wechselberger Under 37 C.F.R. § 1.68 in Support of
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`7.
`
`8.
`
`9.
`
`Claim 20 Is Obvious Over Aminetzah in View of Bitzer ....... 136
`
`Claim 21 Is Obvious Over Aminetzah .................................... 138
`
`Claim 28 Is Obvious Over Aminetzah .................................... 141
`
`10. Claim 29 Is Obvious Over Aminetzah .................................... 142
`
`11. Claim 30 Is Obvious Over Aminetzah .................................... 143
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`12. Claim 33 Is Obvious Over Aminetzah in View of Bitzer ....... 144
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`X.
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`Secondary Considerations of Non-Obviousness ......................................... 146
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`XI. Conclusion ................................................................................................... 148
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`Declaration of Anthony J. Wechselberger Under 37 C.F.R. § 1.68 in Support of
`Petition for Inter Partes Review of U.S. Patent No. 8,559,635
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`
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`I, Anthony J. Wechselberger, do hereby declare as follows:
`
`I.
`1.
`
`INTRODUCTION
`
`I have been retained as an expert witness on behalf of Apple, Inc. (“Apple”)
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`for the above-captioned Petition for Inter Partes Review (“IPR”) of U.S.
`
`Patent No. 8,559,635 (“the ’635 patent”). I am being compensated for my
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`time in connection with this IPR at my standard consulting rate of $350 per
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`hour. My compensation is not affected by the outcome of this matter.
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`2.
`
`I have been asked to provide my opinions regarding whether Claims 1-4, 7,
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`13, 18, 20, 21, 28-30, 32, and 33 of the ’635 patent (“the Challenged
`
`Claims”) are invalid as anticipated or would have been obvious to a person
`
`having ordinary skill in the art at the time of the alleged invention.
`
`3.
`
`The ’635 patent issued on October 15, 2013, from U.S. Patent Appl. No.
`
`08/449,413 (“the ’413 application”), filed on May 24, 1995. (Ex. 1003 at
`
`cover.) The ’635 patent alleges to be a continuation of a series of
`
`applications dating back to U.S. Patent Appl. No. 07/096,096 filed on
`
`September 11, 1987, now U.S. Patent No. 4,965,825 (“the ’096
`
`Application”). The ’096 Application alleges to be a continuation-in-part of a
`
`series of applications dating back to U.S. Patent Appl. No. 06/317,510 filed
`
`November 3, 1981, now U.S. Patent No. 4,694,490 (“the ’510 Application”).
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`Declaration of Anthony J. Wechselberger Under 37 C.F.R. § 1.68 in Support of
`Petition for Inter Partes Review of U.S. Patent No. 8,559,635
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`4.
`
`For the purposes of my Declaration, I have been asked to assume that the
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`priority date of the alleged invention recited in the ’635 patent is November
`
`3, 1981.
`
`5.
`
`The face of the ’635 patent names John Christopher Harvey and James
`
`William Cuddihy as the purported inventors, and identifies Personalized
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`Media Communications, LLC as the purported assignee. (Ex. 1003 at 1.) I
`
`understand that Personalized Media Communications, LLC alleges it
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`currently owns the ’635 patent.
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`6.
`
`In preparing this Declaration, I have reviewed the ’635 patent, the file
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`history of the ’635 patent, numerous prior art references, and technical
`
`references from the time of the alleged invention.
`
`7.
`
`I understand that claims in an IPR are given their broadest reasonable
`
`interpretation in view of the patent specification and the understanding of
`
`one having ordinary skill in the relevant art.
`
`8.
`
`In forming the opinions expressed in this Declaration, I relied upon my
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`education, training, knowledge, and experience in the relevant field of the
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`art, and have considered the viewpoint of a person having ordinary skill in
`
`the relevant art as of November 3, 1981. My opinions are based, at least in
`
`part, on the following:
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`Declaration of Anthony J. Wechselberger Under 37 C.F.R. § 1.68 in Support of
`Petition for Inter Partes Review of U.S. Patent No. 8,559,635
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`Reference
`U. S. Patent No. 4,337,483 to
`Guillou (“Guillou”) (Ex. 1006)
`
`Date of Public Availability
`Guillou was issued on June 29,
`1982, and was filed on January 31,
`1980.
`
`U.S. Patent No. 4,388,643 to
`Aminetzah (“Aminetzah”) (Ex.
`1008)
`
`Aminetzah was issued on June 14,
`1983, and was filed on April 6,
`1981.
`
`U.S. Patent No. 3,743,767 to Bitzer
`et al. (“Bitzer”) (Ex. 1009)
`
`Bitzer was issued on July 3, 1973,
`and was filed on October 4, 1971.
`
`
`II. BACKGROUND AND QUALIFICATIONS
`I am an expert in the fields of digital communications and signal processing,
`9.
`
`with a specialization in content security and rights management in consumer
`
`broadband-network applications and television broadcast technology. I have
`
`been an expert in these fields since long before the priority date of the ’635
`
`patent. A copy of my curriculum vitae is provided as Ex. 1002 and provides
`
`a description of my professional experience, my academic history, my
`
`patents, my professional memberships, and my publications.
`
`10.
`
`I have a bachelor's degree and a master’s degree in electrical engineering,
`
`from the University of Arizona in 1974 and San Diego State University in
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`1979, respectively. I also completed the Executive Program for Scientists
`
`and Engineers at the University of California at San Diego in 1984. Over
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`many years I have published and presented a number of articles and papers
`
`related
`
`to content/information creation,
`
`transmission/distribution and
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`3
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`reception/consumption in various media sectors, including cable, satellite,
`
`broadcast/wireless, Internet, and digital cinema. A list of my publications
`
`and presentations is included with my CV, attached as Ex. 1002. I am also a
`
`named inventor on two patents, U.S. Patent No. 4,531,020, “Multi-layer
`
`Encryption System for the Broadcast of Encrypted Information,” and U.S.
`
`Patent No. 5,113,440, “Universal Decoder.”
`
`11.
`
`I am currently the President of Entropy Management Solutions, a position I
`
`have held since I founded the company in 1999. In this capacity I perform
`
`consulting services related to technology and business development, content
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`management, distribution and merchandizing, systems engineering, and
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`product design in the areas of broadband and multimedia technologies and
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`their associated commercial systems.
`
`12.
`
`I have over forty years of experience working with high-technology systems
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`related to military, commercial, and consumer communication systems and
`
`networks. I have held various design, leadership, and executive positions in,
`
`for example, engineering, operations, sales and marketing, and product
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`management at leading companies in those fields, such as TV/COM
`
`International, Inc. (“TV /COM”) and Oak Communications, Inc. (“Oak”).
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`13. One of my areas of specialization is command and control. “Command and
`
`control” refers to the technical oversight and management of communication
`
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`systems and equipment within a distribution system to direct the equipment
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`as to its set-up and operation in order to perform required functions. For
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`example, in broadband networks used in the television industry (cable,
`
`satellite, broadcast), command and control typically operates in the
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`background (i.e., invisible to consumers) to enable the system operator to
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`manage the delivery of content to specific set-top boxes (“STB”) according
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`to the subscription services the consumer is authorized to access.
`
`14.
`
`I also specialize in the area of rights management. “Rights management”
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`controls or oversees the consumption of programming according to defined
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`rules on behalf of the content-rights owner. As today’s delivery processes
`
`have become more digitally enabled, the term “Digital Rights Management”
`
`(“DRM”) has been adopted to refer to these processes.
`
`15. Technologies for command and control and DRM are implemented in a
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`number of different ways. They can be applied system-wide—for example,
`
`they can be applied to a satellite uplink of a programmer (such as an HBO or
`
`NBC uplink), a cable network headend (where programming is consolidated
`
`and prepared for distribution), and set-top boxes located in homes (where
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`programming is consumed). Command and control and DRM can also be
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`applied to localized interactions between devices—for example, between a
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`receiving device (e.g., STB) and a display device (e.g., television).
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`16.
`
`In most cases the implementation of command and control and DRM
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`solutions involve the use of what are referred to as “in-band” and/or “out-of-
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`band” control channels. My personal experience with in-band and out-of-
`
`band control channels for television and radio delivery systems and
`
`networks dates back to 1980, and my familiarity with the types of equipment
`
`and applications implementing such control channels dates back to the early
`
`1970s.
`
`17. As described above, DRM refers to technologies used to control access to, or
`
`prevent unauthorized use or copying of, digital content, such as audio or
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`video. I have had extensive experience with the design and application of
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`DRM solutions to many types of content delivery systems, including
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`broadband delivery networks such as direct-to-home satellite, as well as
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`cable and terrestrial broadcast networks. Beginning in 1980, I was
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`personally involved in developing the applications of digital encryption to
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`television security systems for mass production. At Oak, I led the efforts to
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`extend the results of our extensive research developments in this area from
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`the research
`
`labs
`
`to Oak’s addressable
`
`television-security products.
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`Ultimately, this research led to foundational intellectual property, patents,
`
`and technology licensing. I have also been involved with the development
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`of newer DRM applications for use with internet protocol television delivery
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`and other internet applications, as well as security solutions for digital
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`cinema.
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`18.
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`I have significant experience with interactive and client-server technologies,
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`such as those used in two-way broadband networks, computer systems and
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`Internet networks. Network management and command and control
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`includes the technical oversight and management of communication systems
`
`and equipment within a distribution system to direct both the transmission
`
`equipment (e.g., network infrastructures, servers, hubs, nodes, head ends,
`
`and uplinks etc.) and receiving equipment (e.g., personal computer,
`
`television, set-top box, handset/mobile device, or other consumer appliance)
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`as to communications, applications, and setup and operation in order to
`
`perform required features and functions.
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`19. As a Director and then Vice President at Oak from 1982-1990, and as Chief
`
`Technology Officer at TV/COM from 1990-1995, I was involved in the
`
`development of terrestrial broadcast, satellite uplink, and cable headend
`
`industrial equipment for television transmissions, as well as consumer
`
`appliance equipment such as STBs and other home-based or home-
`
`networked devices. All of these solutions involved computer control
`
`systems for network and associated network-device command and control,
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`and for management of content distribution and consumer appliance
`
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`functions. These systems were all addressable. “Addressable” means the
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`system operator is able to control the delivery of content and network
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`services, network sourcing, receiving devices (e.g., servers and transmission
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`equipment, and PC or STB receivers), and the consumer experience.
`
`Examples include delivery of firmware or data files, control of available
`
`subscription services or content, and providing a la carte functions such as
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`pay-per-view and video-on-demand.
`
`20.
`
`I was an active participant and contributor to the International Organization
`
`for Standardization MPEG-2 digital television standards initiatives and the
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`European Digital Video Broadcast forum (which was based upon MPEG-2).
`
`I was a voting member of the U.S. Advanced Television Systems Committee
`
`forum (which was also based upon MPEG-2). As Chief Technology Officer
`
`of TV/COM between 1990-1995, I participated in the development of a
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`business strategy based on supporting open international standards for digital
`
`television (“DTV”).
`
`21. As the technologies and standards in support of DTV moved towards
`
`implementation in the mid-1990s, the dawn of the Internet age arrived. This
`
`had a dramatic impact on the way broadband systems engineers like me
`
`began to plan for the future. From a high level perspective, the composition
`
`of DTV is simply “data,” and the concept of convergence—the melding of
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`traditional broadband communications systems and equipment, computers
`
`and computer networks, and the telecommunications worlds—allowed those
`
`technologies to coalesce. Support for on-line and Internet services
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`demanded a high performance two-way data transmission capability, and so
`
`broadband network providers began
`
`to upgrade
`
`their distribution
`
`infrastructures accordingly.
`
`22.
`
`In conjunction with this convergence, as TV/COM’s Chief Technology
`
`Officer, I directed the expansion of our network products into broadband
`
`data communications generally, from its initial focus on digital television.
`
`Networks became more advanced in order to support real-time interaction
`
`between consumers and information sources within the network. Interactive
`
`and on-line applications led to rapid adoption of client-server information-
`
`access approaches (typical of the computer industry) in the products and
`
`technologies I worked with for content delivery and network command and
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`control functions. Starting in the mid 1990s, the ubiquitous STB began to
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`evolve from a minimalist appliance towards its current status as a
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`communications hub of the consumer’s media room. In this same time
`
`period, the PC had also become a ubiquitous consumer appliance, and with
`
`the Internet age came much innovation in electronic-information distribution
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`and electronic merchandising (i.e., art related to complementing physical
`
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`information media and brick-and-mortar institutions with all-electronic
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`digital alternatives). TV/COM and I were part of this evolution until
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`TV/COM was purchased in 1999.
`
`23.
`
`In my consulting work I have continued to work with technologies and
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`network infrastructures for content distribution and management. My
`
`current work involves both traditional and newly developing architectures
`
`and distribution channels. As an example of the latter, I am the chief
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`security systems architect on behalf of the six major Hollywood studios for
`
`their “Digital Cinema Initiatives” (“DCI”) consortium. DCI develops and
`
`evolves the specifications for transitioning first-run theatrical movie releases
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`from film to digital for distribution and exhibition display. On behalf of the
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`studios, I am responsible for all elements of command and control and DRM
`
`for digital cinema system design and implementation. I also represent DCI
`
`at the Society of Motion Picture and Television Engineers, which is
`
`developing the set of internationally recognized standards for global
`
`adoption of digital cinema. The migration to all-digital distribution impacts
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`other content distribution channels such as early window release for
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`hospitality, airplane, and cable/satellite video-on-demand, as well as newer
`
`so called “over-the-top” distribution channels based on Internet distribution.
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`Declaration of Anthony J. Wechselberger Under 37 C.F.R. § 1.68 in Support of
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`I have also been a strategy and technology consultant to content
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`management and distribution entities in these areas.
`
`24. My consulting practice today includes a balance of technology and systems-
`
`engineering services and assistance to the legal community as a technology
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`consultant and expert witness. I have provided expert testimony in the areas
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`of digital-rights management and multimedia
`
`technologies, and
`
`the
`
`associated networks as used for content management and delivery on many
`
`occasions.
`
`25. Other details concerning my background, including patents, professional
`
`service, and more, are set forth in my curriculum vitae.
`
`III. UNDERSTANDING OF PATENT LAW
`I understand that prior art to the ’635 patent includes patents and printed
`26.
`
`publications in the relevant art that predate the November 3, 1981, alleged
`
`priority date of the ’635 patent.
`
`27.
`
`I understand that a claim is invalid if it is anticipated or obvious.
`
`Anticipation of a claim requires that every element of a claim be disclosed
`
`expressly or inherently in a single prior art reference, arranged in the prior
`
`art reference as arranged in the claim. Obviousness of a claim requires that
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`the claim be obvious from the perspective of a person having ordinary skill
`
`in the relevant art at the time the alleged invention was made. I understand
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`that a claim may be obvious in view of a single reference, or may be obvious
`
`from a combination of two or more prior art references.
`
`28.
`
`I understand that an obviousness analysis requires an understanding of the
`
`scope and content of the prior art, any differences between the alleged
`
`invention and the prior art, and the level of ordinary skill in evaluating the
`
`pertinent art.
`
`29.
`
`I further understand that certain factors may support or rebut the obviousness
`
`of a claim. I understand that such secondary considerations include, among
`
`other things, commercial success of the alleged invention, skepticism of
`
`those having ordinary skill in the art at the time of the alleged invention,
`
`unexpected results of the alleged invention, any long-felt but unsolved need
`
`in the art that was satisfied by the alleged invention, the failure of others to
`
`make the alleged invention, praise of the alleged invention by those having
`
`ordinary skill in the art, and copying of the alleged invention by others in the
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`field. I understand that there must be a nexus—a connection—between any
`
`such secondary considerations and the alleged invention. I also understand
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`that contemporaneous and independent invention by others is a secondary
`
`consideration tending to show obviousness.
`
`30.
`
`I further understand that a claim is obvious if it unites old elements with no
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`change to their respective functions, or alters prior art by mere substitution
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`of one element for another known in the field, and that combination yields
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`predictable results. While it may be helpful to identify a reason for this
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`combination, common sense should guide and no rigid requirement of
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`finding a teaching, suggestion, or motivation to combine is required. When
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`a product is available, design incentives and other market forces can prompt
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`variations of it, either in the same field or different one. If a person having
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`ordinary skill in the relevant art can implement a predictable variation,
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`obviousness likely bars its patentability. For the same reason, if a technique
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`has been used to improve one device and a person having ordinary skill in
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`the art would recognize that it would improve similar devices in the same
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`way, using the technique is obvious. I understand that a claim may be
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`obvious if common sense directs one to combine multiple prior art
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`references or add missing features to reproduce the alleged invention recited
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`in the claims.
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`IV. BACKGROUND
`A. Background of the Field Relevant to the ’635 Patent
`31. The Challenged Claims are generally directed to controlling the operation of
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`receivers in a content distribution network, including the decryption of
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`programming content received at a receiver. Some of the Challenged
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`Claims are specifically directed towards the decryption of video or television
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`programming content.
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`32.
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`In my opinion, the following description of the technological background
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`and the materials cited throughout this declaration provide the context in
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`which to analyze the validity of the Challenged Claims. This background
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`section thus forms part of the basis for all of the opinions I express in this
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`declaration.
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`33.
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`In explaining the background television technology, I draw upon my
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`personal experiences during the relevant period while working at Oak and
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`TV/COM. I was directly involved in the developments described below—as
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`a research engineer at Oak’s research and development labs, as a systems
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`engineer and technical manager within Oak’s operating divisions, and later
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`as Chief Technology Officer at TV/COM. I was also active in the pay
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`television industry generally, devoting much time to studying surrounding
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`technology developments and my competition, and interfacing with
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`programming suppliers and network operators to better understand their
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`needs and what was needed in terms of future products.
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`NTSC Television Transmission Technology
`1.
`34. Standards were developed to govern the transmission of television signals to
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`ensure interoperability between communication signals and equipment from
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`different sources and suppliers. Dating back to 1941, the National
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`Television Systems Committee (“NTSC”) standard was the FCC approved
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`method for over-the-air (“OTA”) transmission of television signals in the
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`United States.
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`35. NTSC television is termed “analog television” because the picture and sound
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`information is transmitted on continuously varying and smooth waveforms
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`that can take on any value between the minimum and maximum values and
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`that correspond to (i.e., are analogous to) brightness and location of a
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`particular image element. The NTSC broadcast format transmits the picture
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`information by using a form of amplitude modulation. At the receiving end,
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`an AM demodulator demodulates the carrier wave to recover the baseband
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`television image signal.
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`36. The NTSC standard was developed for use with cathode ray tube (CRT)
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`televisions, which was the original television display produced in high
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`volumes for consumer use. CRT televisions use an electron beam to
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`stimulate a phosphor coating on the inside face of the vacuum picture tube.
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`When the CRT television receives a NTSC standard television signal, which
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`conveys light intensity and positional reference information, the electron
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`beam is stimulated accordingly and recomposes an image one line at a time,
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`going from left to right and top to bottom.
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`37. The electron beam begins recomposing the image at the left-hand side.
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`
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`Much like a carriage return of a typewriter, after completing a line, the
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`electron beam must sweep back to the left to start a new line. This period of
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`time where the electron beam is turned off and realigned from right back to
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`left is called the horizontal blanking interval (HBI). Similarly, the electron
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`beam is turned off when it is realigned from the bottom right of the screen to
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`the top left to continue recomposing the image. This period is called the
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`vertical blanking interval (VBI).
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`38. The video portion of an NTSC standard television transmission contains
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`both active video (scan lines with image information) and horizontal and
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`vertical blanking intervals (which do not contain image information). Under
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`the NTSC standard, the VBI consists of 21 scan lines, the first 9 of which
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`were reserved for synchronizing the image vertically, to ensure that the first
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`line of the active video appeared at the top of a display, rather than the
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`middle or the bottom. The NTSC standard left open the remaining 12 scan
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`lines for other uses such as test signals and data transmission.
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`The figure above shows the VBI for one field of a video signal. At
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`baseband, the signals transmitted in the VBI, for example synchronization
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`and data signals, were digitally encoded.
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`Information
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`in NTSC Television
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`2.
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`Embedded Digital
`Transmissions
`39. The NTSC standard
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`imposed structural constraints on
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`television
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`transmissions that resulted in limited abilities for television service providers
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`to transmit additional data beyond the video and audio content. Any
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`improvements or alterations to NTSC television transmissions had to
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`function with existing technology, so that