Nasdaq Technology ABDownload PDFPatent Trials and Appeals BoardNov 3, 20212021001511 (P.T.A.B. Nov. 3, 2021) 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. 16/030,115 07/09/2018 Jan TILFORS AC-4010-456 3474 23117 7590 11/03/2021 NIXON & VANDERHYE, PC 901 NORTH GLEBE ROAD, 11TH FLOOR ARLINGTON, VA 22203 EXAMINER ALLADIN, AMBREEN A ART UNIT PAPER NUMBER 3693 NOTIFICATION DATE DELIVERY MODE 11/03/2021 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): PTOMAIL@nixonvan.com pair_nixon@firsttofile.com PTOL-90A (Rev. 04/07) UNITED STATES PATENT AND TRADEMARK OFFICE ____________ BEFORE THE PATENT TRIAL AND APPEAL BOARD ____________ Ex parte JAN TILFORS ____________ Appeal 2021-001511 Application 16/030,115 Technology Center 3600 ____________ Before ANTON W. FETTING, JOSEPH A. FISCHETTI, and TARA L. HUTCHINGS, Administrative Patent Judges. FETTING, Administrative Patent Judge. DECISION ON APPEAL Appeal 2021-001511 Application 16/030,115 2 STATEMENT OF THE CASE1 Jan Tilfors (Appellant2) seeks review under 35 U.S.C. § 134 of a final rejection of claims 1–11 and 13–20, the only claims pending in the application on appeal. We have jurisdiction over the appeal pursuant to 35 U.S.C. § 6(b). The Appellant invented a way of determining how a quantity of an order in a market is allocated to other orders in the market. Spec. 1:8–10. An understanding of the invention can be derived from a reading of exemplary claim 1, which is reproduced below (bracketed matter and some paragraphing added). 1. A method performed on a computer server system, the method comprising: [1] receiving, at the computer server system, a signal comprising an incoming data message that includes a data transaction request with (a) a specified data message type identifier, (b) at least one predefined instruction from among a plurality of possible predefined instructions, and (c) a quantity value; [2] in response to reception of the incoming data message and for each one of a plurality of pending data messages that are stored to a memory device of the computer server system, 1 Our decision will make reference to the Appellant’s Appeal Brief (“Appeal Br.,” filed October 8, 2020) and Reply Brief (“Reply Br.,” filed December 29, 2020), and the Examiner’s Answer (“Ans.,” mailed October 29, 2020), and Final Action (“Final Act.,” mailed February 6, 2020). 2 We use the word “Appellant” to refer to “applicant” as defined in 37 C.F.R. § 1.42. Appellant identifies the real party in interest as Nasdaq Technology AB (Appeal Br. 3). Appeal 2021-001511 Application 16/030,115 3 selecting those ones of the plurality of pending data messages that have a data message type identifier that is the same as the specified data message type identifier contained in the data transaction message of the incoming data message, each one of the plurality of pending data messages having (a) a numerical value for a numerical parameter, (b) a data message type identifier for the respective data message, and (c) a participant identity value that is for a pa1iicipant identity parameter of the respective pending data message; [3] generating a list of participant identity values from those selected ones of the plurality of pending data messages, wherein each member of the generated list is a different participant identity value and each participant identity value from those selected ones of the plurality of pending data messages is included in the generated list; [4] for each participant identity value in the generated list of participant identity values: [4.1] determining, from the pending data messages, a set of pending data messages that have the corresponding participant identity value; [4.2] calculating, from the set of pending data messages, an aggregate time that the set of pending data messages have spent on at least one dynamically determined numerical value; and [4.3] automatically processing, via a processor of the computer server system, the data transaction request included in the incoming data message against the plurality of pending data messages based on the calculated aggregate time. Appeal 2021-001511 Application 16/030,115 4 Claims 1–11 and 13–20 stand rejected under 35 U.S.C. § 101 as directed to a judicial exception without significantly more. Claim 20 stands rejected under 35 U.S.C. § 112(b) as failing to particularly point out and distinctly claim the invention. ISSUES The issues of eligible subject matter turn primarily on whether the claims recite more than abstract conceptual advice of results desired. The issues of indefiniteness matter turn primarily on whether there is sufficient antecedent basis for claim limitations. ANALYSIS Claims 1–11 and 13–20 rejected under 35 U.S.C. § 101 as directed to a judicial exception without significantly more STEP 13 Claim 1, as a method claim, nominally recites one of the enumerated categories of eligible subject matter in 35 U.S.C. § 101. The issue before us is whether it is directed to a judicial exception without significantly more. STEP 2 The Supreme Court 3 For continuity of analysis, we adopt the steps nomenclature from 2019 Revised Patent Subject Matter Eligibility Guidance, 84 Fed. Reg. 50 (Jan. 7, 2019) (“Revised Guidance”). Appeal 2021-001511 Application 16/030,115 5 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, . . . we 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 “sufficient to ensure that the patent in practice amounts to significantly more than a patent upon the [ineligible concept] itself.” Alice Corp. v. CLS Bank Int’l, 573 U.S. 208, 217–18 (2014) (citations omitted) (citing Mayo Collaborative Servs. v. Prometheus Labs, Inc., 566 U.S. 66, 72–73 (2012)). To perform this test, we must first determine what the claims are directed to. This begins by determining whether the claims recite one of the judicial exceptions (a law of nature, a natural phenomenon, or an abstract idea). Then, if the claims recite a judicial exception, determining whether the claims at issue are directed to the recited judicial exception, or whether the recited judicial exception is integrated into a practical application of that exception, i.e., that the claims “apply, rely on, or use the judicial exception in a manner that imposes a meaningful limit on the judicial exception, such that the claim is more than a drafting effort designed to monopolize the judicial exception.” Revised Guidance, 84 Fed. Reg. at 54. If the claims are directed to a judicial exception, then finally determining whether the claims provide an inventive concept because the additional elements recited in the claims provide significantly more than the recited judicial exception. Appeal 2021-001511 Application 16/030,115 6 STEP 2A Prong 1 At a high level, and for our preliminary analysis, we note that method claim 1 recites receiving and selecting message data, generating identity data, determining matching data, calculating time data, and processing transaction data. Selecting and determining are rudimentary data analysis. Calculating is mathematical analysis. Thus, claim 1 recites receiving, analyzing, generating, and processing data. None of the limitations recites technological implementation details for any of these steps, but instead recite only results desired by any and all possible means. From this we see that claim 1 does not recite the judicial exceptions of either natural phenomena or laws of nature. Under Supreme Court precedent, claims directed purely to an abstract idea are patent in-eligible. As set forth in the Revised Guidance, which extracts and synthesizes key concepts identified by the courts, abstract ideas include (1) mathematical concepts4, (2) certain methods of organizing human activity5, and (3) mental processes6. Among those certain methods 4 See, e.g., Gottschalk v. Benson, 409 U.S. 63, 71–72 (1972); Bilski v. Kappos, 561 U.S. 593, 611 (2010); Mackay Radio & Telegraph Co. v. Radio Corp. of Am., 306 U.S. 86, 94 (1939); SAP Am., Inc. v. InvestPic, LLC, 898 F.3d 1161, 1163 (Fed. Cir. 2018). 5 See, e.g., Bilski, 561 U.S. at 628; Alice, 573 U.S. at 219–20; Ultramercial, Inc. v. Hulu, LLC, 772 F.3d 709, 715 (Fed Cir. 2014); Smart Sys. Innovations, LLC v. Chicago Transit Auth., 873 F.3d 1364, 1383 (Fed. Cir. 2017); In re Marco Guldenaar Holding B.V., 911 F.3d 1157, 1160–61 (Fed. Cir. 2018). 6 See, e.g., Benson, 409 U.S. at 67; CyberSource Corp. v. Retail Decisions, Inc., 654 F.3d 1366, 1371–72 (Fed. Cir. 2011); Intellectual Ventures I LLC v. Symantec Corp., 838 F.3d 1307, 1318 (Fed. Cir. 2016). Appeal 2021-001511 Application 16/030,115 7 of organizing human activity listed in the Revised Guidance are commercial or legal interactions. Like those concepts, claim 1 recites the concept of managing transactions. Specifically, claim 1 recites operations that would ordinarily take place in advising one to select the next transaction based on participants, timing, and other parameters. The advice to select the next transaction based on participants, timing, and other parameters involves receiving a data transaction request, which is an economic act, and processing the data transaction request, which is an act ordinarily performed in the stream of commerce. For example, claim 1 recites “receiving. . . a data transaction request,” which is an activity that would take place whenever one is performing commercial transactions. Similarly, claim 1 recites “processing. . . the data transaction request,” which is also a characteristic of commercial transactions. The Examiner determines the claims to be directed to the recited steps. Final Act. 4–5. The preamble to claim 1 does not recite what it is to achieve, but the steps in claim 1 result in managing commercial market transactions by selecting the next transaction based on participants, timing, and other parameters absent any technological mechanism other than a conventional computer for doing so. As to the specific limitations, limitation 1 recites receiving data. Limitations 2–4 recite generic and conventional analyzing, generating, and processing of transaction data, which advise one to apply generic functions to get to these results. The limitations thus recite advice for selecting the next transaction based on participants, timing, and other parameters. To advocate selecting the next transaction based on participants, timing, and Appeal 2021-001511 Application 16/030,115 8 other parameters is conceptual advice for results desired and not technological operations. The Specification at page 1, lines 8–10 describes the invention as relating to determining how a quantity of an order in a market is allocated to other orders in the market. Thus, all this intrinsic evidence shows that claim 1 recites managing transactions. This is consistent with the Examiner’s determination. This in turn is an example of commercial or legal interactions as a certain method of organizing human activity because managing commercial transactions organizes commercial interactions. The concept of managing commercial market transactions by selecting the next transaction based on participants, timing, and other parameters is one idea for coordinating transactions. The steps recited in claim 1 are part of how this might conceptually be premised. Our reviewing court has found claims to be directed to abstract ideas when they recited similar subject matter. See Bilski above. Alternately, this is an example of concepts performed in the human mind as mental processes because the steps of receiving, analyzing, generating, and processing data mimic human thought processes of observation, evaluation, judgment, and opinion, perhaps with paper and pencil, where the data interpretation is perceptible only in the human mind. See In re TLI Commc’ns LLC Patent Litig., 823 F.3d 607, 611 (Fed. Cir. 2016); FairWarning IP, LLC v. Iatric Sys., Inc., 839 F.3d 1089, 1093–94 (Fed. Cir. 2016). Claim 1, unlike the claims found non-abstract in prior cases, uses generic computer technology to perform data reception, analysis, generation, and processing and does not recite an improvement to a Appeal 2021-001511 Application 16/030,115 9 particular computer technology. See, e.g., McRO, Inc. v. Bandai Namco Games Am. Inc., 837 F.3d 1299, 1314–15 (Fed. Cir. 2016) (finding claims not abstract because they “focused on a specific asserted improvement in computer animation”). As such, claim 1 recites receiving, analyzing, generating, and processing data, and not a technological implementation or application of that idea. From this we conclude that at least to this degree, claim 1 recites managing commercial market transactions by selecting the next transaction based on participants, timing, and other parameters, which is a commercial and legal interaction, one of certain methods of organizing human activity identified in the Revised Guidance, and, thus, an abstract idea. STEP 2A Prong 2 The next issue is whether claim 1 not only recites, but is more precisely directed to this concept itself or whether it is instead directed to some technological implementation or application of, or improvement to, this concept, i.e., integrated into a practical application.7 At the same time, we tread carefully in construing this exclusionary principle lest it swallow all of patent law. At some level, “all inventions . . . embody, use, reflect, rest upon, or apply laws of nature, natural phenomena, or abstract ideas.” Thus, an invention is not rendered ineligible for patent simply because it involves an abstract concept. “[A]pplication[s]” of such concepts “ ‘to a new and useful end,’ ” we have said, remain eligible for patent protection. Accordingly, in applying the § 101 exception, we must distinguish between patents that claim the “ ‘buildin[g] block[s]’ ” of human ingenuity and those that integrate the building blocks into something more. 7 See, e.g., Alice, 573 U.S. at 223, discussing Diamond v. Diehr, 450 U.S. 175 (1981). Appeal 2021-001511 Application 16/030,115 10 Alice, 573 U.S. at 217 (citations omitted). Taking the claim elements separately, the operation performed by the computer at each step of the process is expressed purely in terms of results, devoid of implementation details. Step 1 is a pure data gathering step. Limitations describing the nature of the data do not alter this. Step 3 recites basic conventional data operations such as generating, updating, and storing data. Steps 2 and 4 recite generic computer processing expressed in terms of results desired by any and all possible means and so present no more than conceptual advice. All purported inventive aspects reside in how the data is interpreted and the results desired, and not in how the process physically enforces such a data interpretation or in how the processing technologically achieves those results. Viewed as a whole, Appellant’s claim 1 simply recites the concept of managing commercial market transactions by selecting the next transaction based on participants, timing, and other parameters as performed by a generic computer. This is no more than conceptual advice on the parameters for this concept and the generic computer processes necessary to process those parameters, and do not recite any particular implementation. Claim 1 does not, for example, purport to improve the functioning of the computer itself. Nor does it effect an improvement in any other technology or technical field. The 21+ pages of Specification do not bulge with disclosure, but only spell out different generic equipment8 and parameters that might be applied using this concept and the particular steps 8 The Specification describes a computer server or a cluster of computer servers. Spec. 1:16–17. Appeal 2021-001511 Application 16/030,115 11 such conventional processing would entail based on the concept of managing commercial market transactions by selecting the next transaction based on participants, timing, and other parameters under different scenarios. They do not describe any particular improvement in the manner a computer functions. Instead, claim 1 at issue amounts to nothing significantly more than an instruction to apply managing commercial market transactions by selecting the next transaction based on participants, timing, and other parameters 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 225–26. None of the limitations reflects an improvement in the functioning of a computer, or an improvement to other technology or technical field, applies or uses a judicial exception to effect a particular treatment or prophylaxis for a disease or medical condition, implements a judicial exception with, or uses a judicial exception in conjunction with, a particular machine or manufacture that is integral to the claim, effects a transformation or reduction of a particular article to a different state or thing, or applies or uses the judicial exception in some other meaningful way beyond generally linking the use of the judicial exception to a particular technological environment, such that the claim as a whole is more than a drafting effort designed to monopolize the exception. We conclude that claim 1 is directed to achieving the result of managing commercial market transactions by advising one to select the next transaction based on participants, timing, and other parameters, as distinguished from a technological improvement for achieving or applying that result. This amounts to commercial or legal interactions, which fall Appeal 2021-001511 Application 16/030,115 12 within certain methods of organizing human activity that constitute abstract ideas. The claim does not integrate the judicial exception into a practical application. STEP 2B The next issue is whether claim 1 provides an inventive concept because the additional elements recited in the claim provide significantly more than the recited judicial exception. The introduction of a computer into the claims does not generally alter the analysis at Mayo 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 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 223–24 (citations omitted). “[T]he relevant question is whether the claims here do more than simply instruct the practitioner to implement the abstract idea . . . on a generic computer.” Alice, 573 U.S. 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 Appeal 2021-001511 Application 16/030,115 13 computer for receiving, analyzing, generating, and processing data amounts to electronic data query and retrieval—one of the most basic functions of a computer. All of these computer functions are generic, routine, conventional computer activities that are performed only for their conventional uses. See Elec. Power Grp. LLC v. Alstom S.A., 830 F.3d 1350, 1353 (Fed. Cir. 2016). 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”). None of these activities is used in some unconventional manner nor does any produce some unexpected result. Appellant does not contend it invented any of these activities. 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., 898 F.3d at 1168. Considered as an ordered combination, the computer components of Appellant’s claim 1 add nothing that is not already present when the steps are considered separately. The sequence of data reception-analysis- generation-processing is equally generic and conventional. See Ultramercial, 772 F.3d at 715 (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) (sequence of data retrieval, analysis, modification, generation, display, and transmission), Two-Way Media Ltd. v. Comcast Cable Commc’ns, LLC, 874 F.3d 1329, 1339 (Fed. Cir. 2017) Appeal 2021-001511 Application 16/030,115 14 (sequence of processing, routing, controlling, and monitoring). The ordering of the steps is therefore ordinary and conventional. We conclude that claim 1 does not provide an inventive concept because the additional elements recited in the claim do not provide significantly more than the recited judicial exception. REMAINING CLAIMS Claim 1 is representative. The remaining method claims merely describe process parameters. We conclude that the method claims at issue are directed to a patent-ineligible concept itself, and not to the practical application of that concept. As to the structural claims, they are no different from the method claims in substance. The method claims recite the abstract idea implemented on a generic computer; the system claims recite a handful of generic computer components configured to implement the same idea. This Court has long “warn[ed] . . . against” interpreting § 101 “in ways that make patent eligibility ‘depend simply on the draftsman’s art.’” Alice, 573 U.S. at 226. As a corollary, the claims are not directed to any particular machine. LEGAL CONCLUSION From these determinations we further determine that the claims do not recite an improvement to the functioning of the computer itself or to any other technology or technical field, a particular machine, a particular transformation, or other meaningful limitations. From this we conclude the claims are directed to the judicial exception of the abstract idea of certain methods of organizing human activity as exemplified by the commercial and legal interaction of managing commercial market transactions by advising Appeal 2021-001511 Application 16/030,115 15 one to select the next transaction based on participants, timing, and other parameters, without significantly more. APPELLANT’S ARGUMENTS As to Appellant’s Appeal Brief arguments, we adopt the Examiner’s determinations and analysis from Final Action pages 3–9 and Answer 11–16 and reach similar legal conclusions. We now turn to the Reply Brief. We are not persuaded by Appellant’s argument that “the improvements are new programming for how data transaction requests are processed. It is the new programming that provides for an improvement in exchange technology.” Reply Br. 2. Claim 1 does not recite any improvement in how data transaction requests are processed or in exchange technology. Instead, claim 1 recites a particular and conventional sequence of conventional computer operations. No technological improvements in operations are recited. We are not persuaded by Appellant’s argument that Smith would lead to a different outcome. Reply Br. 3–5 (citing Ex Parte Smith, No. Appeal 2018-000064, 2019 WL 764497 (PTAB Jan. 31, 2019)). Aside from the Appellant admitted fact that this opinion is not controlling, Smith is factually distinguishable. In particular, the majority found eligibility because Smith included (1) “delaying automatic execution of the new quote and the order, and starting a timer,” (2) while “delaying automatic execution” of the order, and “before expiration of the timer,” receiving a second matching quote “wherein the second quote matches the respective price of the public customer order,” and (3) ”allocating the order between the first and second in-crowd market participants at the electronic trade engine, wherein the order is not executed until expiration of the timer.” Appeal 2021-001511 Application 16/030,115 16 Smith, 2019 WL 764497 at *5. The instant claims have no equivalent structural relationships between hardware, execution, and timing. The recited use of time data is instead mathematical computations from data. We are not persuaded by Appellant’s argument that “[t]he specification thus clearly indicates that a ‘technical solution’ is contemplated and that this provides for an improvement over existing systems. The specification then goes into detail (i.e., in the details description portion) as to how the technical solution is implemented.” Reply Br. 4. The problem for Appellant is that the claims do not recite technological implementation details. Whether such are described in the Specification is not at issue. Yu further points to portions of the specification to support the contention that the asserted advance in the claims is the particular configuration of lenses and image sensors. But “[e]ven a specification full of technical details about a physical invention may nonetheless conclude with claims that claim nothing more than the broad law or abstract idea underlying the claims.” . . . Such is the case here. Yu v. Apple Inc., 1 F.4th 1040, 1044 (Fed. Cir. 2021) (citation omitted). Appellant argues for the proposition that evidence of something being conventional is necessary. Reply Br. 6–7. See Berkheimer v. HP Inc., 881 F.3d 1360 (Fed. Cir. 2018). Support for this finding is provided under Step 2B supra. Claim 20 rejected under 35 U.S.C. § 112(b) as failing to particularly point out and distinctly claim the invention The Examiner determines “[c]laim 20 recites the limitation ‘wherein the tangibly stored computer executable instructions. . . ’ in lines 2-3 of the claim. There is insufficient antecedent basis for this limitation in the claim Appeal 2021-001511 Application 16/030,115 17 as Claim 19, from which this claim depends does not recite tangibly stored.” Final Act. 10. We agree. Appellant attempts to equate the two descriptions. Appeal Br. 20. They are not the same. CONCLUSIONS OF LAW The rejection of claims 1–11 and 13–20 under 35 U.S.C. § 101 as directed to a judicial exception without significantly more is proper. The rejection of claim 20 under 35 U.S.C. § 112(b) as failing to particularly point out and distinctly claim the invention is proper. CONCLUSION The rejections of claims 1–11 and 13–20 are affirmed. In summary: Claim(s) Rejected 35 U.S.C. § Reference(s)/Basis Affirmed Reversed 1–11 13–20 101 Eligibility 1–11 13–20 20 112 Indefiniteness 20 Overall Outcome 1–11 13–20 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) (2019). AFFIRMED Copy with citationCopy as parenthetical citation