Chuck FosterDownload PDFPatent Trials and Appeals BoardJun 1, 202011554865 - (D) (P.T.A.B. Jun. 1, 2020) Copy Citation UNITED STATES PATENT AND TRADEMARK OFFICE UNITED STATES DEPARTMENT OF COMMERCE United States Patent and Trademark Office Address: COMMISSIONER FOR PATENTS P.O. Box 1450 Alexandria, Virginia 22313-1450 www.uspto.gov APPLICATION NO. FILING DATE FIRST NAMED INVENTOR ATTORNEY DOCKET NO. CONFIRMATION NO. 11/554,865 10/31/2006 Chuck Foster 6057-54306 6077 35690 7590 06/01/2020 KOWERT, HOOD, MUNYON, RANKIN & GOETZEL, P.C. P.O. BOX 398 AUSTIN, TX 78767-0398 EXAMINER GREGG, MARY M ART UNIT PAPER NUMBER 3697 NOTIFICATION DATE DELIVERY MODE 06/01/2020 ELECTRONIC Please find below and/or attached an Office communication concerning this application or proceeding. The time period for reply, if any, is set in the attached communication. Notice of the Office communication was sent electronically on above-indicated "Notification Date" to the following e-mail address(es): patent_docketing@intprop.com PTOL-90A (Rev. 04/07) UNITED STATES PATENT AND TRADEMARK OFFICE ____________ BEFORE THE PATENT TRIAL AND APPEAL BOARD ____________ Ex parte CHUCK FOSTER ____________ Appeal 2018-006396 Application 11/554,865 Technology Center 3600 ____________ Before, MURRIEL E. CRAWFORD, ANTON W. FETTING, and MICHAEL W. KIM, Administrative Patent Judges. CRAWFORD, Administrative Patent Judge. DECISION ON APPEAL STATEMENT OF THE CASE Appellant seeks our review under 35 U.S.C. § 134 of the Examiner’s final rejection of claims 21, 22, 26, 29, 42, 43, 45–49, 51–53, 58, 60, and 62–641. We have jurisdiction under 35 U.S.C. § 6(b). SUMMARY OF DECISION We AFFIRM. THE INVENTION Appellant claims a method of processing transactions between a seller and a customer. (Spec. 1., Title). 1 Appellant does not appeal the rejection of claims 65, 66, 68, 69, and 72. (Appeal Br. 10). Their rejection is summarily sustained, and these claims are not address further in this decision. Appeal 2018-006396 Application 11/554,865 2 Claim 21 is representative of the subject matter on appeal. 21. A method, comprising: receiving, from a first computer system at a second computer system over a wide-area network, electronic order information for a transaction, wherein the electronic order information specifies: an item to be purchased from a merchant by a customer on behalf of an entity, wherein the item is selected for purchase by the customer using the first computer system, and bid information descriptive of bids that have been obtained for the item; storing, by the second computer system for the entity, a purchasing policy that specifies a competitive bidding requirement that at least a specified number of two or more bids need to be obtained to authorize a purchase of the item, wherein the second computer system is a financial intermediary computer system configured to communicate with the first computer system, a computer system of the merchant, and a computer system associated with a settlement authority in order to implement the purchasing policy of the entity; in response to the electronic order information received over the wide-area network from the first computer system, the second computer system determining whether to allow the transaction, including by determining whether the competitive bidding requirement of the purchasing policy is satisfied based on the bid information; and transmitting, by the second computer system to the first computer system and the computer system of the merchant via the wide-area network, messages indicating whether the purchase is authorized. THE REJECTION Claims 21, 22, 26, 29, 42, 43, 45–49, 51–53, 58, 60, and 62–64 are rejected under 35 U.S.C. § 101 as directed to a judicial exception without significantly more. Appeal 2018-006396 Application 11/554,865 3 Claim 21 is rejected under 35 U.S.C. § 103(a) as being unpatentable over Solomon (US 2002/0069134 A1, publ. Jun. 6, 2002), in view of Thomas (US 2002/0116318 A1, publ. Aug. 22, 2002), in view of Rowan (US 2004/0139032 A1, publ. Jul. 15, 2004), further in view of Khan (US 2001/0056395, publ. Dec. 27, 2001). Claims 22 and 42 are rejected under 35 U.S.C. §103(a) as being unpatentable over Solomon, in view of Thomas, in view of Rowan, in view of Khan, further in view of Barnes (US 5,970,475, iss. Oct. 19, 1999). Claim 43 is rejected under 35 U.S.C. § 103(a) as being unpatentable over Solomon, in view of Thomas, in view of Rowan, in view of Khan, further in view of Straumann (US 2003/0151493 A1, publ. Aug. 14, 2003). Claim 45 is rejected under 35 U.S.C. § 103(a) as being unpatentable over Solomon, in view of Thomas, in view of Rowan, in view of Khan, further in view of Grey (US 2002/0174054 A1, publ. Nov. 21, 2002). Claims 26, 29 and 46–47 are rejected under 35 U.S.C. § 103(a) as being unpatentable over, Solomon, in view of Thomas, further in view of Rowan. Claim 48 and 51 are rejected under 35 U.S.C. § 103(a) as being unpatentable over Solomon, in view of Thomas, in view of Rowan, further in view of Straumann. Claims 49, 52 and 58 are rejected under 35 U.S.C. § 103(a) as being unpatentable over Solomon, in view of Thomas, in view of Rowan, further in view of Barnes. Claim 53 is rejected under 35 U.S.C. § 103(a) as being unpatentable over Solomon, in view of Thomas, in view of Rowan, further in view of Hamor (US 2007/0083437 A1, publ. Apr. 12, 2007). Appeal 2018-006396 Application 11/554,865 4 Claims 60 is rejected under 35 U.S.C. § 103(a) as being unpatentable over Solomon, in view of Thomas, further in view of Reddy (US 2007/0038512 A1, publ. Feb. 15, 2007). Claim 62 is rejected under 35 U.S.C. § 103(a) as being unpatentable over Solomon, in view of Thomas, in view of Reddy, further in view of Cales (US 2003/0135421 A1, publ. Jul. 17, 2003). Claim 63 is rejected under 35 U.S.C. § 103(a) as being unpatentable over Solomon, in view of Thomas, in view of Reddy, further in view of Goolkasian (US 2005/0060244 A1, publ. Mar. 17, 2005). Claim 64 is rejected under 35 U.S.C. § 103(a) as being unpatentable over Solomon, in view of Thomas, in view of Reddy, further in view of Kumar (US 7,933,818 B1, iss. Apr. 26, 2011). ANALYSIS 35 U.S.C. § 101 REJECTION We will sustain the rejection of claims 21, 22, 26, 29, 42, 43, 45–49, 51–53, 58, 60, and 62–64 under 35 U.S.C. § 101. The Supreme Court set forth a framework for distinguishing patents that claim laws of nature, natural phenomena, and abstract ideas from those that claim patent-eligible applications of those concepts. First, . . . determine whether the claims at issue are directed to one of those patent-ineligible concepts. . . . If so, . . . then ask, “[w]hat else is there in the claims before us?” . . . To answer that question, . . . consider the elements of each claim both individually and “as an ordered combination” to determine whether the additional elements “transform the nature of the claim” into a patent-eligible application. . . . [The Court] described step two of this analysis as a search for an “‘inventive concept’”—i.e., an element or combination of elements that is Appeal 2018-006396 Application 11/554,865 5 “sufficient to ensure that the patent in practice amounts to significantly more than a patent upon the [ineligible concept] itself.” Alice Corp. Pty. Ltd. v. CLS Bank Int’l, 573 U.S. 208, 217-218 (2014) (citing Mayo Collaborative Servs. v. Prometheus Labs., Inc., 566 U.S. 66, 72–73 (2012)) (citations omitted). To perform this test, we must first determine whether the claims at issue are directed to a patent-ineligible concept. The Federal Circuit has explained that “the ‘directed to’ inquiry applies a stage-one filter to claims, considered in light of the [S]pecification, based on whether ‘their character as a whole is directed to excluded subject matter.’” See Enfish, LLC v. Microsoft Corp., 822 F.3d 1327, 1335 (Fed. Cir. 2016) (quoting Internet Patents Corp., 790 F.3d 1343, 1346 (Fed. Cir. 2015)). It asks whether the focus of the claims is on a specific improvement in relevant technology or on a process that itself qualifies as an “abstract idea” for which computers are invoked merely as a tool. See id. at 1335–36. In so doing, we apply a “directed to” two prong test: 1) evaluate whether the claim recites a judicial exception, and 2) if the claim recites a judicial exception, evaluate whether the judicial exception is integrated into a practical application. 2019 Revised Patent Subject Matter Eligibility Guidance, 84 FR 50, pp 50–57 (Jan. 7, 2019). The Examiner determines that the claims are directed to an online bidding transaction that provides rules, parameters and certain refinements in which to carry out a bidding transaction. The Examiner determines that this subject matter is (1) a fundamental economic practice and (2) that of comparing new and stored information using rules in order to identify options (Final Act. 17). The Examiner finds the additional elements recited Appeal 2018-006396 Application 11/554,865 6 in the claim beyond the abstract idea “are used to implement the abstract idea by enacting conventional, routine and well understood technical functions.” (Id at 25) The Specification states that “[b]usinesses have increasingly turned to the use of Internet transactions for the efficient purchase of goods and services” and “[t]here is a need for processes enabling businesses to efficiently use such transactions while maintaining control over purchasing according to policy.” (Spec. 1). The instant invention as claimed requires individuals to obtain competitive bids or satisfy a bidding requirement as a precondition to allowing a transaction to complete. (Spec. 31). Consistent with this disclosure, claim 21 recites “receiving . . . electronic order information for a transaction,” “wherein the electronic order information specifies” “an item to be purchased from a merchant,” “ and bid information descriptive of bids that have been obtained for the item,” “determining whether the competitive bidding requirement of the purchasing policy is satisfied based on the bid information,” and “transmitting . . . messages indicating whether the purchase is authorized.” We agree with the Examiner’s determinations in regard to the recitation in claim 21 of a judicial exception found on pages 16 to 23 of the Final Office Action, indicating that claim 21 recites at least a fundamental economic practice, and adopt the same as our own. Also, we find the steps of claim 21 of comparing new and stored information using rules in order to identify options constitute “analyzing information by steps people go through in their minds, or by mathematical algorithms, without more, as essentially mental processes within the abstract-idea category.” Elec. Power Grp., LLC v. Alstom S.A., 830 F.3d Appeal 2018-006396 Application 11/554,865 7 1350, 1354 (Fed. Cir. 2016); see also buySAFE, Inc. v. Google, Inc., 765 F.3d 1350, 1355 (Fed. Cir. 2014) (claims directed to certain arrangements involving contractual relations are directed to abstract ideas). Thus, we find that the claims recite a fundamental economic practice and in the alternative, a mental process. Turning to the second prong of the “directed to test,” claim 21 recites first and second computer systems and a computer system of the merchant and a computer system associated with a settlement authority. The recitation of these computer systems does not impose “a meaningful limit on the judicial exception, such that the claim is more than a drafting effort designed to monopolize the judicial exception.” 2019 Revised Patent Subject Matter Eligibility Guidance at 52. We find no indication in the Specification, nor does Appellant direct us to any indication, that the operations recited in independent claim 21 invoke any inventive programming, require any specialized computer hardware or other inventive computer components, i.e., a particular machine, or that the claimed invention is implemented using other than generic computer components to perform generic computer functions. See DDR Holdings, LLC v. Hotels.com, L.P., 773 F.3d 1245, 1256 (Fed. Cir. 2014) (“[A]fter Alice, there can remain no doubt: recitation of generic computer limitations does not make an otherwise ineligible claim patent-eligible.”). We also find no indication in the Specification that the claimed invention effects a transformation or reduction of a particular article to a different state or thing. Nor do we find anything of record, short of attorney argument, that attributes any improvement in computer technology and/or functionality to the claimed invention or that otherwise indicates that the Appeal 2018-006396 Application 11/554,865 8 claimed invention integrates the abstract idea into a “practical application,” as that phrase is used in the revised Guidance. See Guidance, 84 Fed. Reg. at 55. In this regard, the recitation does not effect an improvement in the functioning of a the computer systems or other technology, does not recite a particular machine or manufacture that is integral to the claims, and does not transform or reduce a particular article to a different state or thing. Id. Thus, claim 21 is directed to a judicial exception that is not integrated into a practical application and thus is directed to an “abstract idea.” Turning to the second step of the Alice analysis, because we find that the claims are directed to abstract ideas, the claims must include an “inventive concept” in order to be patent-eligible, i.e., there must be an element or combination of elements that is sufficient to ensure that the claim in practice amounts to significantly more than the abstract idea itself. See Alice, 573 U.S. at 217-18 (alteration in original) (quoting Mayo, 566 U.S. at 72–73). The introduction of computer systems into the claims does not alter the analysis at Alice step two. [T]he mere recitation of a generic computer cannot transform a patent-ineligible abstract idea into a patent-eligible invention. Stating an abstract idea “while adding the words ‘apply it’” is not enough for patent eligibility. Nor is limiting the use of an abstract idea “‘to a particular technological environment.’” Stating an abstract idea while adding the words “apply it with a computer” simply combines those two steps, with the same deficient result. Thus, if a patent’s recitation of a computer amounts to a mere instruction to “implemen[t]” an abstract idea “on . . . a computer,” that addition cannot impart patent eligibility. This conclusion accords with the preemption concern that undergirds our § 101 jurisprudence. Given the Appeal 2018-006396 Application 11/554,865 9 ubiquity of computers, wholly generic computer implementation is not generally the sort of “additional featur[e]” that provides any “practical assurance that the process is more than a drafting effort designed to monopolize the [abstract idea] itself.” Alice, 573 U.S. at 223 (alterations in original) (citations omitted). Instead, “the relevant question is whether the claims here do more than simply instruct the practitioner to implement the abstract idea . . . on a generic computer.” Id. at 225. They do not. Taking the claim elements separately, the function performed by the computer at each step of the process is purely conventional. Using a computer to retrieve, select, and apply decision criteria to data and modify the data as a result amounts to electronic data query and retrieval—one of the most basic functions of a computer. All of these computer functions are well-understood, routine, conventional activities previously known to the trading industry. See Elec. Power Grp., 830 F.3d at 1354; see also In re Katz Interactive Call Processing Patent Litig., 639 F.3d 1303, 1316 (Fed. Cir. 2011) (“Absent a possible narrower construction of the terms ‘processing,’ ‘receiving,’ and ‘storing,’ . . . those functions can be achieved by any general purpose computer without special programming”). In short, each step does no more than require a generic computer to perform generic computer functions. As to the data operated upon, “even if a process of collecting and analyzing information is ‘limited to particular content’ or a particular ‘source,’ that limitation does not make the collection and analysis other than abstract.” SAP Am. Inc. v. InvestPic, LLC, 890 F.3d 1016, 1022 (Fed. Cir. 2018). Considered as an ordered combination, the computer systems of Appellant’s claim 21 add nothing that is not already present when the steps Appeal 2018-006396 Application 11/554,865 10 are considered separately. The recited sequence of data reception-analysis- access/display is equally generic and conventional or otherwise held to be abstract. See Ultramercial, Inc. v. Hulu, LLC, 772 F.3d 709, 715 (Fed. Cir. 2014) (recited sequence of receiving, selecting, offering for exchange, display, allowing access, and receiving payment recited an abstraction), Inventor Holdings, LLC v. Bed Bath & Beyond, Inc., 876 F.3d 1372, 1378 (Fed. Cir. 2017) (holding that recited sequence of data retrieval, analysis, modification, generation, display, and transmission was abstract), Two-Way Media Ltd. v. Comcast Cable Commc’ns, LLC, 874 F.3d 1329, 1339 (Fed. Cir. 2017) (holding recited sequence of processing, routing, controlling, and monitoring was abstract). The ordering of the steps is, therefore, ordinary and conventional. The claims do not, for example, purport to improve the functioning of the recited computer systems. As we stated above, the claims do not affect an improvement in any other technology or technical field. The Specification spells out different generic equipment and parameters that might be applied using this concept and the particular steps such conventional processing would entail based on the concept of information access under different scenarios. For example, the Specification indicates that the various steps recited in claim 21 may be performed by “a computer or similar electronic computing device” (Spec. 5), which indicates that the computer systems recited are generic computer systems. The customer computer is disclosed as being “a personal computer, cell phone, personal assistant, two-way pager and/or interactive television that receives user inputs from a remote control” (Spec. 15). The Specification also indicates that the computing platform which may be used by the customer, seller or Appeal 2018-006396 Application 11/554,865 11 financial intermediary includes generic components such as a display, disk drive, CDROM drive, display adapter etc. and may be a desktop computer. (Spec. 45). Thus, the claims at issue amount to nothing significantly more than instructions to apply the abstract idea of information access using some unspecified, generic computer. Under our precedents, that is not enough to transform an abstract idea into a patent-eligible invention. See Alice, 573 U.S. at 226. We have reviewed all the arguments (Appeal Br. 10–13; Reply Br. 2– 8) Appellant has submitted concerning the patent eligibility of the claims before us that stand rejected under 35 U.S.C. § 101. Or analysis above substantially covers the substance of all the arguments, which have been made. But, for purposes of completeness, we will address various arguments in order to provide reviewable analysis of same. We are not persuaded of error on the part of the Examiner by Appellant’s argument that claim 21 recites a technical solution which includes using a financial intermediary computer system that is distinct from the customer computer system associated with a settlement authority. (Appeal Br. 11). The problem solved, according to the Appellant, is the problem of permitting an individual associated with a business, such as an employee, to purchase goods and/or service on behalf of the business via the Internet while maintaining control over that purchasing according to a policy. We agree with the Examiner that the financial intermediary system of claim 21 is recited, at a high level of generality, to perform conventional computer functions of receiving orders, storing policy requirements and communicating with the customer to determine whether to allow a transaction according to bidding rules, and that these functions are all basic Appeal 2018-006396 Application 11/554,865 12 computer functions within a system of computers. (Fin. Act. 4-5). We also agree that using computer technology in order to address compliance to a policy is not an issue integral to technology, but rather integral with a business objective of seeking to control use of its funds that employees can access. We are not persuaded that “the instant claims recite an improvement to the relevant technological process-distributed transaction processing.” Reply Br. 2. The Specification and claims do not mention distributed processing. In view of the foregoing, we will sustain this rejection as it is directed to claim 21. We will also sustain this rejection as it is directed to the remaining claims because Appellant has not argued the separate eligibility of these claims. REJECTIONS UNDER 35 U.S.C. §103(A) We will not sustain the various rejections of claims 21, 22, 26, 29, 42, 43, 45-49, 51-53, and 58 under 35 U.S.C. §103(a), because we agree with Appellant that the prior art applied in these rejections does not disclose “a purchasing policy that specifies a competitive bidding requirement that at least a specified number of two or more bids.” In the Final Office Action, the Examiner relies on Thomas at FIG. 1a-b; paragraphs 23, 40-46 and 52- 53 for teaching this subject matter in the rejections of these claims. (Final Act. 79). Paragraph 23 of Thomas discloses that rules may be established in which contracts are awarded to the highest bidder at a price lower than the highest bid, or that bidders may set maximum bids with automatic Appeal 2018-006396 Application 11/554,865 13 increments if prior bids are beaten, but it discloses nothing about two or more bids. Paragraphs 40 to 46 of Thomas and Figure 1a-b of Thomas discloses and depicts an electronic market, including an auction transaction system that accepts bids and has auction rules such as highest bidder wins, sets maximum bids, include a time expiration feature, but does not disclose the requirement of two or more bids. Paragraphs 52–53 of Thomas discloses that the auctioning process can specify a minimum bid price, reject bids that are over the auctioned capacity, but does not disclose the requirement of two or more bids. In the Answer, the Examiner relies on the teaching in Solomon of requiring two or more sellers, but this is not a disclosure of the requirement for two or more bids. The Examiner also relies on paragraph 64 for teaching this subject matter, but this paragraph discusses what happens when no winning bids are received; it does not discuss a requirement for two or more bids. In view of the foregoing, we will not sustain the rejection as it is directed to claim 21 and claims 22, 42, 43 and 45 dependent therefrom. We will also not sustain the rejections of claims 26, 29, 46–49, 51–53 and 58 for the same reason. We will sustain the Examiner’s rejection under 35 U.S.C. §103(a) of claim 60. Claims 60 does not recite a purchasing policy that “at least a specified number of two or more bids need to be obtained.” Appellant argues that the prior art does not disclose “determining whether to allow the transaction based on . . . customer ratings of the merchant.” Appeal 2018-006396 Application 11/554,865 14 We agree with the Examiner that Solomon teaches bidding rules. Bidding rules are also taught by Thomas, as discussed above. Further, we find that paragraph 47 of Reddy teaches that when a visitor uses the intermediary to obtain a list of sellers offering a desired product or service, such list is usually ordered by price of the product or some other criteria such as service ranking (i.e. how well did this seller perform past transactions with other past customers). Once that list is presented, the visitor may have the option to reorder the list based upon other parameters. Each item in the list is referred herein as a list item. One of the bidding rules for teaching bidding rules relates to customer ratings. We agree with the Examiner that: Both Solomon and Reddy are directed toward rules applied for transaction processes. Reddy teaches the motivation of utilizing customer ratings in a transaction system in order to filter for the customer merchants from consideration in order to remove merchants based on performances with past customers. It would have been obvious to one having ordinary skill at the time the invention was made to modify the auction parameters of Solomon to include the past customer determination of sellers past transaction performances of Reddy since Reddy teaches the motivation of utilizing customer ratings in a transaction system in order to filter for the customer merchants from consideration in order to remove merchants based on performances with past customers. Final Act. 117 In view of the foregoing, we will sustain the Examiner’s rejection of claim 60 and claims 62–64 dependent therefrom. Appeal 2018-006396 Application 11/554,865 15 CONCLUSIONS OF LAW We conclude the Examiner did not err in rejecting claims 21–22, 26, 29, 42–43, 45–49, 51–53, 58, 60, and 62–64 under 35 U.S.C. § 101. We conclude the Examiner did not err in rejecting claims 60 and 62– 64 under 35 U.S.C. § 103(a). We conclude the Examiner did err in rejecting claims 21–22, 26, 29, 42–43, 45–49, 51–53, and 58 under 35 U.S.C. § 103(a). Appeal 2018-006396 Application 11/554,865 16 CONCLUSION In summary: Claims Rejected 35 U.S.C. § Reference(s)/Basis Affirmed Reversed 21–22, 26, 29, 42–43, 45–49, 51–53, 58, 60, 62–64 101 Judicial Exception 21–22, 26, 29, 42–43, 45–49, 51– 53, 58, 60, 62–64 21 103(a) Solomon, Thomas, Rowan, Khan 21 22, 42 103(a) Solomon, Thomas, Rowan, Khan, Barnes 22, 42 43 103(a) Solomon, Thomas, Rowan, Khan, Straumann 43 45 103(a) Solomon, Thomas, Rowan, Khan, Grey 45 26, 29, 46–47 103(a) Solomon, Thomas, Rowan 26, 29, 46–47 48, 51 103(a) Solomon, Thomas, Rowan, Straumann 48, 51 49, 52, 58 103(a) Solomon, Thomas, Rowan, Barnes 49, 52, 58 53 103(a) Solomon, Thomas, Rowan, Hamor 53 60 103(a) Solomon, Thomas, Reddy 60 62 103(a) Solomon, Thomas, Reddy, Cales 62 63 103(a) Solomon, Thomas, Reddy, Goolkasian 63 64 103(a) Solomon, Thomas, Reddy, Kumar 64 Claims 35 U.S.C. § Reference(s)/Basis Affirmed Reversed Appeal 2018-006396 Application 11/554,865 17 Rejected Overall Outcome 21, 22, 26 29, 42–43, 45– 49, 51–53, 58, 64 No time period for taking any subsequent action in connection with this appeal may be extended under 37 C.F.R. § 1.136(a). See 37 C.F.R. § 1.136(a)(1)(iv). AFFIRMED Copy with citationCopy as parenthetical citation