IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`In re Inter Partes Review of:
`U.S. Patent No. 7,326,113
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`For: Gaming Machine with a Fixed Wild Symbol
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`DECLARATION OF RICHARD MICHAELSON
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`Mail Stop PATENT BOARD
`Patent Trial and Appeal Board
`U.S. Patent and Trademark Office
`P.O. Box 1450
`Alexandria, VA 22313-1450
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`IGT EX. 1007 - 1/36
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`In re Inter Partes Review of:
`U.S. Patent No. 7,326,113
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`For: Gaming Machine with a Fixed Wild Symbol
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`DECLARATION OF RICHARD MICHAELSON
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`Mail Stop PATENT BOARD
`Patent Trial and Appeal Board
`U.S. Patent and Trademark Office
`P.O. Box 1450
`Alexandria, VA 22313-1450
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`1
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`IGT EX. 1007 - 1/36
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`I, RICHARD MICHAELSON, hereby declare as follows:
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`1.
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`I have been retained as a technical consultant on behalf of IGT, the
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`petitioner in this proceeding. I am being compensated at my customary hourly
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`rate. I have no present financial interest in IGT, nor do I have any financial
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`interest in the patent owner, Aristocrat Australia Pty Ltd. My compensation is not
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`dependent upon the outcome of, or my testimony in, the present inter partes review
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`(“IPR”) or any other proceedings.
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`2.
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`I have reviewed the following materials:
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`Exhibit
`Ex. 1001
`Ex. 1002
`Ex. 1003
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`Ex. 1004
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`Ex. 1005
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`Ex. 1006
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`Ex. 1008
`Ex. 1009
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`Description
`U.S. Patent No. 7,326,113 to Bennett, et al. (“the ’113 Patent”)
`File History for U.S. Patent No. 7,326,113
`Legato, Frank, “World of Slots,” Casino Journal, Sept. 1998
`(“Legato”)
`Definition of “superimpose” in Merriam-Webster’s Collegiate
`Dictionary, Tenth Edition (1993)
`Australian Patent No. AU-A-43488/99 to Timperley
`(“Timperley”)
`Australian Patent Application No. AU199917318 A1 to
`Bennett (“Bennett”)
`Richard Michaelson Curriculum Vitae
`Fey, Marshall; Slot Machines: A Pictorial History of the First
`100 Years (5th ed. 1997)
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`I understand that the application leading to the ’113 Patent was Application
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`3.
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`10/182,318, which claims priority to International Application No.
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`PCT/AU01/00323, which in turn claims priority to Australian application No. PQ
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`6637, filed March 31, 2000. For purposes of this declaration, I have assumed the
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`position of the person of ordinary skill in the art (“POSA”) as of March 2000,
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`although the technology described in the patent and cited prior art was known and
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`recognized even earlier.
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`Background and Qualifications
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`4. My background, qualifications, and experience relevant to the issues in this
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`IPR proceeding are summarized below. I have also included my current
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`curriculum vitae as Exhibit 1008.
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`5.
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`I am an expert in the design, development, and operation of gaming
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`machines and gaming systems for the casino industry. I have been involved in the
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`industry for more than thirty-five years.
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`6.
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`I began my post-high school education at Oregon Technical Institute in
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`1966, where I took courses in electronics technology. I later completed my
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`Bachelor of Science degree at the University of Nevada, Reno in 1979. I
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`graduated with a major in mathematics and a minor in physics.
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`7. My experience in the gaming industry began in 1973, when I joined
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`Harrah’s Hotel and Casino in Reno, Nevada as an electronics technician. I soon
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`moved to Harrah’s experimental shop, where I played a significant role in the
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`design and development of a slot machine that Harrah’s was developing for its own
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`casinos. Among other contributions, I wrote the assembly language code for the
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`Intel 4040 microcontroller that operated the slot machine. The Harrah’s slot
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`machine was one of the first microcontroller-operated slot machines ever
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`produced. I continued to work at Harrah’s as an electrical engineer and slot
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`mechanic until 1979.
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`8.
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`In 1980, I joined Summit Systems as a slot machine firmware engineer. I
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`wrote code for the company’s Zilog Z80 microprocessor-controlled slot machine.
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`The machine was a spinning reel slot with a solenoid-activated stop mechanism.
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`The slot machines had game designs with standard fruit and bar paytables.
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`9.
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`Later in 1980, I started my own gaming company with my friend and
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`colleague Richard Mathis. The company was called P.I. Kaiser, Inc. At P.I.
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`Kaiser, I designed and developed one of the first systems for offering multi-
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`machine progressive jackpots. The system controller linked all the slot machines
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`in a bank (often eight to twelve machines) and displayed the increasing progressive
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`award on a large electrical sign mounted above the machine bank. I installed this
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`progressive system in several casinos in Nevada, throughout the United States, and
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`internationally through our distributor, Bally Distributing.
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`10.
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`In 1981, I joined International Game Technology (“IGT”). I worked
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`primarily as a firmware engineer and a slot machine designer. While at IGT, I
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`worked on the development of one of IGT’s first video slot machines—a nine-coin
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`machine with three sets of three reels. I also played a central role in the
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`development of an IGT stepper-motor slot. I wrote all of the Intel 8031 micro-
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`controller code for the game. I completed this first stint at IGT in 1985.
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`11.
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`I did not work in the slot machine industry from 1985 to 1993. During that
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`time I held engineering positions at several different companies and worked on the
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`design and development of various products, including science lab equipment,
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`medical equipment, leak-detection systems for underground gas tanks, and player-
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`activated lottery terminals.
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`12.
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`I reentered the slot machine industry in 1993, when I joined Bally Systems
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`as an engineering manager. At Bally, I played an integral role in the design,
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`development, and implementation of the company’s slot data system (“SDS”).
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`SDS was a casino-management tool that monitored all of the slot machines on the
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`casino floor, including the amount of money taken in, the amount of money paid
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`out, and machine malfunctions. At the time, SDS was the industry leader in the
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`field of casino management.
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`13.
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`In 1994, I left Bally to join Spintek International, a startup slot machine
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`manufacturing company. I served as the company’s President, lead firmware
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`engineer, and lead game designer. I oversaw the design and development of
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`Spintek’s spinning-reel slot machine. Spintek produced several dozen prototypes
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`of the slot machine, but the product never made it to market.
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`14.
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`In 1996, I rejoined Bally Systems as Chief Engineer. In that role, I oversaw
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`Bally’s industry-leading SDS casino management system. I also led the design and
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`development of the casino floor hardware for Bally’s wide-area progressive slot
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`machine prize system called Thrillions. Thrillions was similar to IGT’s
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`MegaJackpots system.
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`15.
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`In 1998, I left Bally to start my own gaming consulting firm, Weaver, Fuller
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`& Dyer LLC. I was the firm’s managing director. While at the firm, I did
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`consulting work for most of the major players in the slot machine industry,
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`including IGT, Aristocrat, and Bally.
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`16.
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`In 2000, I re-joined IGT as a Staff Engineer, the highest classification of
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`engineer at IGT at the time. For my first three or four years during this stint at
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`IGT, I worked on the “math team.” The math team was the liaison between the
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`game designers and the engineers. In that role, I worked closely with the game
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`designers to ensure that the game they conceptualized would work in practice. In
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`particular, I ensured that the math models would produce the appropriate paybacks.
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`I then worked closely with the engineering team to implement the game with the
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`appropriate computer coding and hardware. I eventually left the math team to lead
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`several projects in Class II Bingo game systems and finite pool central
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`determination slot machine systems.
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`17.
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`In 2004, I moved into a new department at IGT called Intellectual Property
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`Management (“IPM”). IPM was formed by Bob Bittman, who was at that time a
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`senior IGT executive and board member, and a senior engineer named Binh
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`Nguyen. The purpose of IPM was to systematically evaluate, categorize, and
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`maintain IGT’s substantial portfolio of intellectual property—a portfolio that
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`included more than 6,000 patents. Through my work in IPM, I became familiar
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`with IGT’s patents in particular and with patents on slot machine game features in
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`general.
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`18.
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`I spent my last seven years at IGT working in the legal department. My
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`responsibilities included evaluating allowed patents for potential continuation,
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`assisting engineers in writing patent disclosures, and examination of competitor
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`machines to identify infringements of IGT patents.
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`19.
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`I retired from IGT in 2015. I have been an independent consultant ever
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`since.
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`20.
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`In sum, I have over thirty-five years of experience in the casino and slot
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`machine industry. This experience ranges from traditional machines with
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`mechanical reels to more modern machines with video reels. In particular, I have
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`extensive experience with game design and with implementing features in the
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`games that players will find attractive.
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`21.
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`In addition to my day-to-day work, I have also kept up to date with
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`developments in the slot machine industry by subscribing to trade publications,
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`attending conferences and gaming shows, and having discussions with my friends
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`and colleagues in the industry. I also have been a member of the Game
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`Manufacturers Association (“GAMMA”), a trade group that (among other things)
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`helps to develop standards for the gaming industry.
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`22.
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`I am a named inventor on approximately thirty United States patents in the
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`field of slot machines and casino gaming, including Memorization Poker, an
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`Action game gaming method, and a Central determination Keno game.
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`23. As a result of my extensive experience in the industry, I have a great deal of
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`knowledge about the design and development of slot machines, including the
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`implementation of game features.
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`Background on the Slot Machine Industry
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`24.
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`I began working in the gaming industry in 1973 when I was employed by
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`Harrah’s Hotel and Casino in Reno, NV. My job as electronics technician took me
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`into all areas of the hotel, casino, and offices of Harrah’s. After two years as an
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`electronics technician I moved into the slot repair department where I worked on
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`early electronic slot machines such as Raven 8-line slots and Raven Keno slots.
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`25. The first slot machines were invented over a century ago. Caille Bros.
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`manufactured the Caille Ben Hur machine which allowed players to play for any or
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`all symbols, that is, a player might place a coin in the top award slot and play for
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`just the top award. Or the player might play five nickels, one in each coin slot and
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`play for all symbols. A wheel, similar to a pari-mutuel wheel, was spun by a
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`handle and the symbol which stopped next to an indicator was the winner.
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`26. Other slot machines, such as the Liberty Bell three reel machine, were
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`invented in the late 1890s and used reels instead of wheels. These three-reel
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`machines were improved over the years but remained the basic design of gaming
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`machines for decades. A handle cocked the mechanism, lifting a set of spring-
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`powered stop arms onto a bar and kicking the reels into spinning motion. The bar
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`moved from left to right controlled by a clockwork mechanism. As the bar moved
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`it caused each stop arm to drop in sequence to stop each of the three reels in order,
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`left to right. The timing bar then released a fourth stop which caused vertical pay
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`fingers to contact pay disks which were attached to reels through concentric axles.
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`Each pay amount of the machine was associated with a pay finger. As the pay
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`fingers contacted the pay disks, any finger which matched a hole in a disk moved
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`further into the set of disks. If three matching symbols occurred on the machine
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`pay line the associated vertical pay finger would move through all three pay disks
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`and activate a horizontal pay finger. A fifth stop on the timing bar released pay
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`slides in which coins were stacked. Depending on which horizontal pay fingers
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`were activated zero, one, or more slides would be released resulting in dropping of
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`coins into a coin tray.
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`27. Over the years, improvements were made including replacement of kickers
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`with motors (Aristocrat), replacement of pay mechanisms with electromechanical
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`components and motorized coin hoppers (Bally Manufacturing), replacement of
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`mechanical reels with video screens (Fortune Coin), and replacement of timing bar,
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`pay fingers, etc. with micro-processors (Harrah’s, IGT, et al).
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`28. Other inventions changed the way casino slot machines operated. Slot Data
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`Systems (“SDS”) replaced coin meter reading and improved analysis of drop
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`reports. Progressive Jackpot systems provided for player-funded top awards.
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`Wide Area Progressive systems coupled with Virtual Reel technology increased
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`the size of top awards (IGT, Telnaes). Pseudo Random Number Generators
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`replaced timing bar clockworks. Bill acceptors eliminated the need for change
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`personnel on casino floors. Second screen bonuses provided players with more
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`entertainment (WMS). Ticket In – Ticket Out eliminated coin acceptors, coin
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`hoppers, coin dump crews, and coin wrapping. Credit meters, aka electronic coin
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`trays, eliminated the need for physically handling coins during play, which made
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`multiple coin wagers more convenient.
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`29. Competition in the slot machine industry has always been intense. Casinos
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`have a finite amount of floor space for gaming machines, and all the slot machine
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`manufacturing companies must compete with one another for that limited space.
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`30. There are two overriding competitive objectives in the design of slot
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`machines: (1) entice the player to play the machine in the first place, and (2) once
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`the player is sitting at the machine, entice him to make greater wagers and to keep
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`playing. Because many of the basic gambling parameters of slot machines are
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`dictated by regulation (required payback, etc.), there are a limited number of ways
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`in which slot machine manufacturers can differentiate their machines from the
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`competition. One of the primary ways that slot machine manufacturers compete is
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`through the implementation of game features. Game features can make the slot
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`machine more interesting to players. Furthermore, by increasing a player’s
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`entertainment and enjoyment, game features can entice players to keep playing the
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`slot machine. While a player might tire of a traditional 3-reel slot game after 15 or
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`20 spins, adding game features such as bonus games, progressive awards, held
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`reels, wild symbols, and the like could keep the player’s interest for many more
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`spins.
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`31. The developments in slot machine technology over the past thirty-five years
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`noted above have provided manufacturers with increased options for developing
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`and implementing different kinds of game features. In particular, moving from
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`physical reels to video screens and the introduction of computer-processing
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`capabilities in slot machines have opened the door to a wide range of options for
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`game features.
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`32. Therefore, an integral component of competition between slot machine
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`manufacturers over the past thirty-five years has been competition in the
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`development of new and exciting game features. Game designers have been
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`motivated to develop game features that increase appeal to players, thereby
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`ensuring that their slot machines receive some of the limited space on the casino
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`floor.
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`Overview of the ’113 Patent
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`33. The title of the ’113 Patent is “Gaming Machine with a Fixed Wild
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`Symbol.” The patent is directed to a video slot machine in which a “special
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`symbol” (a wild symbol) is “held in a superimposed representation” over a reel
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`while the reel is re-spun for further games. (Ex. 1001, ’113 Patent Abstract.)
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`34.
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`In the “Background of the Invention” section of the specification, the ’113
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`Patent explains well known aspects of the competitive environment in the slot
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`machine industry. First, “[p]layers who regularly play gaming machines quickly
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`tire of particular games and therefore it is necessary for manufacturers of these
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`machines to develop innovative game features which add interest to the games. In
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`so doing, it is hoped to keep players amused and therefore willing to continue
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`playing the game as well as to attract new players.” (Id., Col. 1:20-25.)
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`Accordingly, “gaining [sic] machine manufacturers are keen to devise games
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`which are popular with the players as a mechanism for improving sales, retaining
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`customers and attracting new customers.” (Id., Col. 1:31-34.) Designing games
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`with “innovative game features” that are “popular with the players” helps slot
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`machine manufacturers secure some of the limited available space on casino floors.
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`(Id., Col. 1:26-31.)
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`35. The purportedly “innovative game feature[]” claimed by the ’113 Patent is a
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`standard spinning-reel slot game in which, “when at least one special symbol
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`appears on the display means, said at least one special symbol is held in a
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`superimposed representation in that position for at least one further game while at
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`least that reel carrying the, or each, special symbol is re-spun for said at least one
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`further game.” (Id., Col. 1:45-50.)
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`36. As described in the specification, the “special symbol” functions as a “bonus
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`symbol” or wild symbol. The specification says that “it is assumed that a special
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`symbol, indicated as a bonus symbol 42 in FIGS. 3b to 3f of the drawings, is a
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`substitute symbol which substitutes for all other symbols.” (Id., Col. 3:19-22.)
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`37. The feature claimed in the ’113 Patent was nothing new. It merely
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`combined two well-known, preexisting features that were already very popular in
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`the industry—wild symbols and held reels.
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`38. Wild symbols have been used in slot machines for decades, including well
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`before the priority date of the ’113 Patent. Much like the Joker in a deck of
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`playing cards, a wild symbol is a special symbol that substitutes for other symbols
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`to form winning combinations on the reels. For example, suppose it takes three
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`cherry symbols to form a winning combination. The player would win if three
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`cherries were spun up on a payline. In a game with a wild symbol, the player
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`would also win if two cherries and a wild symbol were spun up on a payline. The
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`wild symbol would substitute for the third cherry, resulting in a win.
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`39. Wild symbols are very popular with players. The presence of wild symbols
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`increases player enjoyment by giving the player what he perceives to be more
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`chances to win. Accordingly, slot machine manufacturers and game designers
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`have long successfully used wild symbols in their games as a way to attract players
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`and to entice players to continue wagering.
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`40. Held reels are another feature that has been used in slot machines for
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`decades, including well before the priority date of the ’113 Patent. In a game with
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`held reels, one or more of the reels are “held” in place while the other reels
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`continue to spin in subsequent games. In some versions of held-reel games, the
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`player decides which reels (if any) he wants held. The player would select those
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`reels and they would be held in place for at least one more subsequent spin. Two
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`examples of such machines are found in Marshall Fey’s book, Slot Machines: A
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`Pictorial History of the First 100 Years (5th ed. 1997). (Ex. 1009.) In 1967,
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`Jennings released a slot machine called “Indiana.” Indiana had three reels and the
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`player could decide to hold one or more of the reels by pressing a button under the
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`reel. When the lever was subsequently pulled, only the non-held reels would spin.
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`(Id. at 205.)
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`41.
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` In 1967, Bally released its “Reel Deal” gaming machine, which was
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`essentially a poker machine with reels on which cards were displayed. In this
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`game, “[a]fter a no win spin, a Hold signal is lit. The player may then press the
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`Hold button or buttons to hold desired reels, play a second coin and spin reels not
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`held to try for a second chance of winning.” (Id. at 220.)
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`42.
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`In other versions of held-reel games, the game would automatically decide
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`which reels would be held for the player, typically based on the appearance of
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`certain symbols on those reels. Using the example above involving a three-cherry
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`winning combination, if cherries spun up on the first two reels, the game might
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`automatically hold those first two reels in place while the third reel is re-spun in
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`the hopes that a cherry spins up on the third reel, completing the winning
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`combination.
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`43. Held reels are very popular with players. Holding reels that have part (but
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`not all) of a winning combination increases the player’s enjoyment and excitement
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`because the player feels that he is very close to a win. Further, and more
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`importantly, holding reels with part of the winning combination entices the player
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`to keep playing the game in the hopes of spinning up the remaining symbol or
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`symbols needed to complete the winning combination. Again using the three-
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`cherry example, a player who has two of the three cherries needed to win already
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`displayed on the screen will be more incentivized to continue playing the game in
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`the hopes of getting the third cherry, as compared to a player who has no symbols
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`or reels held at all.
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`44. The ’113 Patent simply holds symbols rather than entire reels, and those
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`symbols are “special” symbols, which the specification describes to be wild
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`symbols. (Ex. 1001, Col. 3:19-22 (describing “special symbol” as “a substitute
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`symbol which substitutes for all other symbols”).) This would have been an
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`obvious combination. A person of skill in the art would recognize that holding a
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`symbol in place increases the game’s appeal to a player because it gives the player
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`the impression that he is very close to a winning combination. This feeling would
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`be even stronger if the held symbol was a wild symbol which substitutes for other
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`symbols to form winning combinations. Accordingly, the player would face a
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`strong incentive to keep playing the game in the hopes of achieving a winning
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`symbol combination.
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`Level of Ordinary Skill in the Art
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`45.
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`In my view, a person of ordinary skill in the art (“POSA”) at the time of the
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`alleged invention claimed in the ’113 Patent would have approximately three to
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`five years of experience in the design and development of slot machines, especially
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`slot machines with video displays. A POSA would also have familiarity with
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`products already in the marketplace and the features within those video slot
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`machines.
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`Claim Construction
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`46.
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`I have been asked to offer my opinion as to how a POSA would have
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`understood certain claim terms in the ’113 Patent. In IPR, I understand that the
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`claim terms are afforded the broadest reasonable construction consistent with the
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`patent as a whole, the specification, and the prosecution history.
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`“superimposed”
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`47. The claims of the ’113 Patent require that a “special symbol” be “held in a
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`superimposed representation” while “at least the reel carrying the . . . special
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`symbol is re-spun for” at least one further game. (Id., Col. 25-28.) In my opinion,
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`a POSA would understand the term “superimposed” to mean that the special
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`symbol appears on top of or over the reel while the reel is re-spun.
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`48. The specification of the ’113 Patent does not appear to use the term
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`“superimposed” in any special way. Rather, the specification uses the term
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`consistently with its plain and ordinary meaning. The dictionary defines
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`“superimpose” as “to place or lay over or above something.” (Ex. 1004, Merriam-
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`Webster’s Collegiate Dictionary Tenth Edition (1993).) That is precisely the
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`context in which the specification uses the term “superimposed.” In the “Summary
`
`of the Invention” section, the specification says that “when at least one special
`
`symbol appears on the display means, said at least one special symbol is held in a
`
`superimposed representation in that position for at least one further game while at
`
`least that reel carrying the, or each, special symbol is re-spun for said at least one
`
`further game.” (Ex. 1001, Col. 1:45-50.) The specification further says that “[t]he
`
`at least one special symbol may be carried into position on one of the reels and
`
`may remain in position to be superimposed over an underlying symbol of that reel
`
`when the reel is re-spun.” (Id., Col. 1:53-56.)
`
`49. A POSA would understand that, visually, the most straightforward and
`
`obvious way to depict a single symbol being held in position on a reel while the
`
`rest of the reel is re-spun is for the held symbol to appear above or over the reel as
`
`it spins. The symbol could appear to hover at some distance above the reel, or the
`
`
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`19
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`IGT EX. 1007 - 19/36
`
`
`
`symbol could appear to be virtually flush with the reel, like one playing card laid
`
`on top of another. In both instances, the symbol would appear superimposed over
`
`the underlying symbol.
`
`Legato
`
`50. Legato is an article entitled “World of Slots” from the September 1998 issue
`
`of Casino Journal magazine. The article was written by Frank Legato, who is one
`
`of the foremost journalists covering the gaming and casino industry. Casino
`
`Journal is a widely-distributed and widely-read magazine in the gaming industry.
`
`It is one of several trade publications that a POSA would have read on a regular
`
`basis in order to keep abreast of developments in the industry.
`
`51. The Legato article discusses several new slot machines that Aristocrat was
`
`introducing into the U.S. casino market at that time. Legato explains the
`
`competitive pressures that were facing all slot machine manufacturers in the 1990s:
`
`“In the United States, Aristocrat faces an entirely new market than greeted it three
`
`years ago: The slot genre it popularized in this country is now being duplicated by
`
`all of the best and brightest engineers of other slot manufacturers, each trying to
`
`outdo the other in clever second-screen bonuses, imaginative special features and
`
`other ways of entertaining the customer.” (Ex. 1003 at 52.) As Legato recognizes,
`
`the slot machine industry was extremely competitive in the late 1990s. Game
`
`designers and manufacturers competed fiercely with each other for the limited
`
`
`
`20
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`IGT EX. 1007 - 20/36
`
`
`
`space available on casino floors, primarily by developing “imaginative special
`
`features” that entertained players, drawing players to a manufacturer’s machines
`
`and “hooking” the player to keep playing and to keep placing larger bets.
`
`52. Legato discusses three video slot machines—“Tequila Sunrise,” “Sweet
`
`Hearts II,” and “Chicken”. These games were new releases from Aristocrat.
`
`53. Legato describes Tequila Sunrise as follows: “‘Tequila Sunrise’ is a five-
`
`line, 25-coin video version of a game released previously as a three-reel, three-coin
`
`game in both video and stepper-reel versions. According to [Aristocrat product
`
`manager Peter] Causley, the game is one of two featuring a ‘hold-and-spin’ feature
`
`for the scatter-pay symbol. If three cactus scatter-pay symbols land on adjacent
`
`reels, those symbols are held in place for three spins. If a fourth or fifth scatter
`
`symbol appears during one of the free games, that symbol is also held in plays [sic]
`
`for a four- or five-symbol payoff, along with any other jackpot accumulated during
`
`the bonus spins. Moreover, as with other games, scatter wins are multiplied by the
`
`total number of coins bet—which can result in huge jackpots, notes Causley.” (Id.)
`
`54. Legato describes “Sweet Hearts II” as follows: “The other game
`
`incorporating the hold-and-spin features is ‘Sweet Hearts II,’ a nine-line, 90-coin
`
`game incorporating wild symbols in the primary game and a Valentine scatter-pay
`
`symbol—a pulsating heart with Cupid’s arrow through it. Only two of these
`
`symbols are required for a jackpot, after which they are held for three free spins.
`
`
`
`21
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`IGT EX. 1007 - 21/36
`
`
`
`Other scatter symbols that appear during the free spins trigger another three free
`
`spins, with those symbols also held in place.” (Id.)
`
`55. Legato describes “Chicken” as follows: “According to Causley, one of the
`
`strongest games to be introduced to the U.S. market at the World Gaming Congress
`
`is called ‘Chicken.’ ‘This has become our flagship second-screen animation
`
`game,’ he says, ‘because it has two separate bonus features—a hold-and-spin
`
`‘chicken’ wild symbol and a second screen where you line up five.’ As with the
`
`other hold-and-spin games, the scatter-pay symbols stay in place for the three free
`
`spins. But five of them, either on a normal spin or through accumulated free spins,
`
`trigger the second screen.” (Id. at 52-53.)
`
`56. As described in Legato, “Tequila Sunrise,” “Sweet Hearts II,” and
`
`“Chicken” are video slot machines or gaming machines. A POSA would
`
`understand that these video slot machines necessarily must include a video display
`
`and a game controller (computer processor) to control the play of the game and the
`
`display of images on the video screen. A POSA would also understand that, as
`
`standard video slot machines, the gaming machines include displays of reels with
`
`symbols; devices to accept wagers and cash out player winnings; game controllers
`
`that, upon a wager, spin the reels and randomly determine which symbols will be
`
`displayed; and a prize is awarded to the player if a winning combination of
`
`symbols is displayed. That is how virtually every slot machine works.
`
`
`
`22
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`IGT EX. 1007 - 22/36
`
`
`
`57. Legato also makes clear that “Tequila Sunrise,” “Sweet Hearts II,” and
`
`“Chicken “have “special symbols” which, when they appear, “hav[e] the capacity
`
`to alter the results of the game,” as claimed in Claim 1 of the ’113 Patent. In
`
`“Tequila Sunrise,” the cactus symbols are scatter-pay symbols. When three cactus
`
`symbols land on the reels, they are held and the player receives three free spins.
`
`“Sweet Hearts II” likewise has Valentine scatter-pay symbols, which do the same
`
`thing as the cactus symbols in “Tequila Sunrise”. These symbols all have the
`
`capacity to alter the results of the game because, when they appear, they result in
`
`the awarding of credits and/or free spins with held symbols. And “Chicken” has
`
`“hold-and-spin ‘chicken’ wild symbol[s]” which “stay in place for the three free
`
`spins.” Wild symbols, by their nature, have the capacity to alter the results of the
`
`game. As described above, wild symbols substitute for other symbols to form
`
`possible winning combinations. Therefore, the presence of a wild symbol could
`
`yield a winning result for the player where the player otherwise would not receive
`
`a winning result without the wild symbol.
`
`58. A POSA would also understand from the description of the Aristocrat games
`
`in Legato that the symbols themselves are held in place, not the entire reel. For one
`
`thing, Legato says that the “symbols are held in place for three free spins.” (Ex.
`
`1003 at 52 (emphasis added).) Legato does not say that the entire reel is held in
`
`place for the free spins. Further, in the description of Tequila Sunrise, Legato says
`
`
`
`23
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`IGT EX. 1007 - 23/36
`
`
`
`that “If three cactus scatter-pay symbols land on adjacent reels, those symbols are
`
`held in place for three free spins. If a fourth or fifth scatter symbol appears during
`
`one of the free spins, that symbols is also held in plays [sic] for a four- or five-
`
`symbol payoff.” (Id.) A POSA would understand from this description that,
`
`logically, it must be the symbols being held in place rather than the reels. If a fifth
`
`cactus symbol appears on the fifth reel, the only way for the game to continue with
`
`subsequent spins is if the symbol is held in place rather than the entire reel. If all
`
`five reels of the game were held in place, the game would simply stop and it would
`
`be impossibl
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