AHMAVAARA, Kalle et al.Download PDFPatent Trials and Appeals BoardDec 24, 20202019001889 (P.T.A.B. Dec. 24, 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. 12/634,645 12/09/2009 Kalle AHMAVAARA 030284.00634/090137 7888 15142 7590 12/24/2020 Arent Fox, LLP and Qualcomm, Incorporated 1717 K Street, NW Washington, DC 20006-5344 EXAMINER FISHER, PAUL R ART UNIT PAPER NUMBER 3689 NOTIFICATION DATE DELIVERY MODE 12/24/2020 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): ocpat_uspto@qualcomm.com patentdocket@arentfox.com PTOL-90A (Rev. 04/07) UNITED STATES PATENT AND TRADEMARK OFFICE BEFORE THE PATENT TRIAL AND APPEAL BOARD Ex parteKALLE AHMAVAARA, RANDALL C. GELLENS, GEORGIOS TSIRTSIS, PRASHANTH HANDE, GERARDO GIARETTA, and ARUNGUNDRAM MAHENDRAN Appeal 2019-001889 Application 12/634,645 Technology Center 3600 Before BRADLEY W. BAUMEISTER, LARRY J. HUME, and JAMES B. ARPIN, Administrative Patent Judges. Opinion for the Board filed by Administrative Patent Judge HUME. Opinion Concurring filed by Administrative Patent Judge BAUMEISTER. HUME, Administrative Patent Judge. DECISION ON APPEAL Pursuant to 35 U.S.C. § 134(a), Appellant1 appeals from the Examiner’s decision rejecting claims 1–3, 8, 10, 11, 14–18, 22, 24, 25, 27–41, 58, 62–64, and 66, all of the pending claims. Claims 4–7, 9, 12, 13, 19–21, 23, 26, 42–57, 59–61, 65, and 67 are cancelled. See Final Act. 2. We have jurisdiction under 35 U.S.C. § 6(b). We AFFIRM. 1 “Appellant” refers to “applicant” as defined in 37 C.F.R. § 1.42. Appellant identifies the real party in interest as Qualcomm Inc. Appeal Br. 1. Appeal 2019-001889 Application 12/634,645 2 STATEMENT OF THE CASE2 The claims are directed to a system and methods to facilitate connections to access networks. See Spec. (Title). In particular, Appellant’s disclosed embodiments and claimed invention “relate[] generally to wireless communications, and more specifically to methods and systems to enable connectivity agreements to an access network. Spec. ¶ 2. Exemplary Claims Claims 1 and 66 reproduced below, are representative of the subject matter on Appeal (emphases added to contested prior-art limitations): 1. A method for an access terminal comprising a communications component to dynamically negotiate a connection with an access network, the method comprising: establishing, via the communications component by the access terminal, an initial communication with the access network for a purpose of establishing the connection with the access network; negotiating, by the access terminal directly with the access network, without a user being involved in the negotiations, and based on the initial communication, connection parameters for the connection, the connection parameters being based on preconfigured connection rules for the access terminal; and establishing, by the access terminal, the connection with the access network according to the negotiated connection parameters in response to a third-party service provider 2 Our decision relies upon Appellant’s Appeal Brief (“Appeal Br.,” filed June 28, 2018); Reply Brief (“Reply Br.,” filed Jan. 3, 2019); Examiner’s Answer (“Ans.,” mailed Nov. 5, 2018); Final Office Action (“Final Act.,” or “FOA” mailed Nov. 16, 2017); and the original Specification (“Spec.,” filed Dec. 9, 2009) (claiming benefit of US 61/138,103, filed Dec. 16, 2008). Appeal 2019-001889 Application 12/634,645 3 purchasing the connection according to the negotiated connection parameters. 66. A method for negotiating, by a third-party service provider, a connection between an access terminal and an access network, comprising: receiving a negotiation trigger that initiates a negotiation session between the third-party service provider and the access network for establishing the connection; negotiating with the access network for one or more connection parameters associated with the connection until a connection agreement is achieved without a user being involved in the negotiations, wherein the connection agreement includes agreed-upon values corresponding to the one or more connection parameters, the connection parameters being based on preconfigured connection rules for the access terminal; and sending charging information associated with the third- party service provider to the access network, wherein sending the charging information initiates establishment of the connection of the access terminal and the access network according to the agreed-upon values. REFERENCES The prior art relied upon by the Examiner as evidence is: Name Reference Date Donahue US 2002/0095311 A1 July 18, 2002 Jensen US 2002/0107697 A1 Aug. 8, 2002 Foley US 2003/0216932 A1 Nov. 20, 2003 Hutchins US 2004/0111292 A1 June 10, 2004 Tedesco et al. (“Tedesco”) US 2005/0165646 A1 July 28, 2005 Patel et al. (“Patel”) US 7,043,225 B1 May 9, 2006 Mashinsky US 2006/0206422 A1 Sept. 14, 2006 Monga et al. (“Monga”) US 7,437,449 B1 Oct. 14, 2008 Appeal 2019-001889 Application 12/634,645 4 REJECTIONS3 Rejection Claim(s) Rejected 35 U.S.C. § Reference(s)/Basis R1 (FOA 5) 1–3, 8, 10, 11, 14–18, 22, 24, 25, 27–41, 58, 62–64, 66 101 4 Subject Matter Eligibility R2 (FOA 9) 1–3, 14–18, 27, 28, 34–37, 58, 62–64, 66 103(a) Obviousness Patel, Tedesco, Foley, Hutchings R3 (FOA 75) 8, 10, 11, 22, 24, 25, 30, 38 103(a) Obviousness Patel, Tedesco, Foley, Hutchings, Jensen R4 (FOA 82) 29 103(a) Obviousness Patel, Tedesco, Foley, Hutchings, Donahue R5 (FOA 83) 31, 39 103(a) Obviousness Patel, Tedesco, Foley, Hutchings, Mashinsky R6 (FOA 86) 32, 33, 40, 41 103(a) Obviousness Patel, Tedesco, Foley, Hutchings, Monga 3 The Examiner withdrew the indefiniteness rejection of claims 15 and 35 under 35 U.S.C. § 112, ¶ 2, and also withdrew the § 101 rejection of claims 14 and 34 as directed to an ineligible transitory medium. Ans. 4–5. 4 The Final Office Action and Briefs were filed before the Revised Guidance (discussed infra) was issued, so that neither Appellant nor the Examiner had benefit of the subject matter eligibility guidance provided therein. We perform our review of the § 101 Rejection R1 in accordance with the Revised Guidance. Appeal 2019-001889 Application 12/634,645 5 CLAIM GROUPING Based on Appellant’s arguments (Appeal Br. 6–18) and our discretion under 37 C.F.R. § 41.37(c)(1)(iv), we decide the appeal of patent-ineligible subject matter Rejection R1 of claims 1–3, 8, 10, 11, 14–18, 22, 24, 25, 27– 41, 58, 62–64, and 66 on the basis of representative claim 1; and we decide the appeal of obviousness Rejection R2 of claims 1–3, 14–18, 27, 28, 34–37, 58, and 62–64 on the basis of representative claim 1. We address separately argued claim 66 under obviousness Rejection R1, infra. Remaining claims 8, 10, 11, 22, 24, 25, 29–33, and 38–41 in obviousness Rejections R3 through R6, not argued separately, fall with the respective independent claim from which they depend.5 ISSUES AND ANALYSIS In reaching this decision, we consider all evidence presented and all arguments actually made by Appellant. To the extent Appellant has not advanced separate, substantive arguments for particular claims, or other issues, such arguments are waived. 37 C.F.R. § 41.37(c)(1)(iv). Based upon our review of the record, and in light of the Director’s Revised Guidance concerning subject matter eligibility, now incorporated into the Manual for Patent Examining Procedure (MPEP), addressed infra, 5 “Notwithstanding any other provision of this paragraph, the failure of appellant to separately argue claims which appellant has grouped together shall constitute a waiver of any argument that the Board must consider the patentability of any grouped claim separately.” 37 C.F.R. § 41.37(c)(1)(iv). In addition, when Appellant does not separately argue the patentability of dependent claims, the claims stand or fall with the claims from which they depend. In re King, 801 F.2d 1324, 1325 (Fed. Cir. 1986). Appeal 2019-001889 Application 12/634,645 6 we conclude the Examiner erred in rejecting claims 1–3, 8, 10, 11, 14–18, 22, 24, 25, 27–41, 58, 62–64, and 66 under 35 U.S.C. § 101 for the specific reasons discussed below. However, we are not persuaded of Examiner error by Appellant’s arguments with respect to obviousness Rejections R2 through R6 of claims 1–3, 8, 10, 11, 14–18, 22, 24, 25, 27–41, 58, 62–64, and 66 and, unless otherwise noted, we incorporate by reference herein and adopt as our own: (1) the findings and reasons set forth by the Examiner in the action from which this appeal is taken, and (2) the reasons and rebuttals set forth in the Examiner’s Answer in response to Appellant’s arguments. We highlight and address specific findings and arguments regarding Rejection R2 of claims 1 and 66 for emphases as follows. 1. § 101 Rejection R1 of Claims 1–3, 8, 1011, 14–18, 22, 24, 25, 27–41, 58, 62–64, and 66 Issue 1 Appellant argues (Appeal Br. 6–11; Reply Br. 5–10) the Examiner’s rejection of claim 1 under 35 U.S.C. § 101 as directed to patent-ineligible subject matter is in error. These contentions present us with the following issue: Under the USPTO’s Revised Guidance, informed by our governing case law concerning 35 U.S.C. § 101, is claim 1 directed to a judicial exception to patent-eligible subject matter under § 101 without reciting significantly more? Appeal 2019-001889 Application 12/634,645 7 Principles of Law A. 35 U.S.C. § 101 An invention is patent-eligible if it is a “new and useful process, machine, manufacture, or composition of matter.” 35 U.S.C. § 101.6 However, the U.S. Supreme Court has long interpreted 35 U.S.C. § 101 to include implicit exceptions: “[l]aws of nature, natural phenomena, and abstract ideas” are not patentable. Mayo Collaborative Servs. v. Prometheus Labs., Inc., 566 U.S. 66, 70 (2012) (brackets in original) (citing Diamond v. Diehr, 450 U.S. 175, 185 (1981)). In determining whether a claim falls within an excluded category, we are guided by the Court’s two-part framework, described in Mayo and Alice. Alice Corp. v. CLS Bank Int’l, 573 U.S. 208, 217–18 (2014) (citing Mayo, 566 U.S. at 75–77). In accordance with that framework, we first determine what concept the claim is “directed to.” See Alice, 573 U.S. at 219 (“On their face, the claims before us are drawn to the concept of intermediated settlement, i.e., the use of a third party to mitigate settlement risk.”); see also Bilski v. Kappos, 561 U.S. 593, 611 (2010) (“Claims 1 and 4 in petitioners’ application explain the basic concept of hedging, or protecting against risk . . . .”). Concepts determined to be abstract ideas, and thus patent ineligible, include certain methods of organizing human activity, such as fundamental 6 This threshold analysis of whether a claim is directed to one of the four statutory categories of invention, i.e., a process, machine, manufacture, or composition of matter, is referred to as “Step 1” in the USPTO’s patent- eligibility analysis under § 101. MPEP § 2106. Appeal 2019-001889 Application 12/634,645 8 economic practices (Alice, 573 U.S. at 219–20; Bilski, 561 U.S. at 611); mathematical formulas (Parker v. Flook, 437 U.S. 584, 594–95 (1978)); and mental processes (Gottschalk v. Benson, 409 U.S. 63, 67 (1972)). Concepts determined to be patent eligible include physical and chemical processes, such as “molding rubber products” (Diehr, 450 U.S. at 191); “tanning, dyeing, making water-proof cloth, vulcanizing India rubber, smelting ores” (id. at 182 n.7 (quoting Corning v. Burden, 56 U.S. 252, 267–68 (1853))); and manufacturing flour (Benson, 409 U.S. at 69 (citing Cochrane v. Deener, 94 U.S. 780, 785 (1876))). Abstract ideas may include, but are not limited to, fundamental economic practices, methods of organizing human activities, and mathematical formulas or relationships. Alice, 573 U.S. at 217–21. Under this guidance, therefore, we must ensure at part one that we articulate what the claims are directed to with enough specificity to ensure the part one inquiry is meaningful. Id. at 217 (“[W]e tread carefully in construing this exclusionary principle lest it swallow all of patent law.”). Examples of claims that do not recite mental processes because they cannot be practically performed in the human mind include: (a) a claim to a method for calculating an absolute position of a GPS receiver and an absolute time of reception of satellite signals, where the claimed GPS receiver calculated pseudoranges that estimated the distance from the GPS receiver to a plurality of satellites, SiRF Technology, Inc. v. International Trade Commission, 601 F.3d 1319, 1331–33 (Fed. Cir. 2010); (b) a claim to detecting suspicious activity by using network monitors and analyzing network packets, SRI Int’l, Inc. v. Cisco Systems, Inc., 930 F.3d 1295, 1304 (Fed. Cir. 2019); (c) a claim to a specific data encryption method for Appeal 2019-001889 Application 12/634,645 9 computer communication involving a several-step manipulation of data, Synopsys, Inc. v. Mentor Graphics Corp., 839 F.3d 1138, 1149 (Fed. Cir. 2016) (distinguishing TQP Development, LLC v. Intuit Inc., 2014 WL 651935 (E.D. Tex. Feb. 19, 2014)) (the specific data encryption method “could not conceivably be performed in the human mind or with pencil and paper”). Whereas a claim limitation to a process that “can be performed in the human mind, or by a human using a pen and paper” qualifies as a mental process, a claim limitation that “could not, as a practical matter, be performed entirely in a human’s mind” (even if aided with pen and paper) would not qualify as a mental process.7 In Diehr, the claim at issue recited a mathematical formula, but the Supreme Court held “[a] claim drawn to subject matter otherwise statutory does not become nonstatutory simply because it uses a mathematical formula.” Diehr, 450 U.S. at 187; see also id. at 191 (“We view respondents’ claims as nothing more than a process for molding rubber products and not as an attempt to patent a mathematical formula.”). Having said that, the Supreme Court also indicated that a claim “seeking patent protection for that formula in the abstract . . . is not accorded the protection of our patent laws, and this principle cannot be circumvented by attempting to limit the use of the formula to a particular technological environment.” Id. (citation omitted) (citing Benson and Flook); see, e.g., id. at 187 (“It is now commonplace that an application of a law of nature or mathematical 7 CyberSource Corp. v. Retail Decisions, Inc., 654 F.3d 1366, 1372, 1375- 76 (Fed. Cir. 2011) (distinguishing Research Corp. Techs. v. Microsoft Corp., 627 F.3d 859 (Fed. Cir. 2010), and SiRF Tech., Inc. v. Int’l Trade Comm’n, 601 F.3d 1319 (Fed. Cir. 2010)). Appeal 2019-001889 Application 12/634,645 10 formula to a known structure or process may well be deserving of patent protection.”). If the claim is “directed to” an abstract idea, we turn to the second part of the Alice and Mayo framework, where “we must examine the elements of the claim to determine whether it contains an ‘“inventive concept”’ sufficient to ‘transform’ the claimed abstract idea into a patent-eligible application.” Alice, 573 U.S. at 221 (citation omitted). “A claim that recites an abstract idea must include ‘additional features’ to ensure ‘that the [claim] is more than a drafting effort designed to monopolize the [abstract idea].’” Id. (alterations in original) (quoting Mayo, 566 U.S. at 77). “[M]erely requir[ing] generic computer implementation[] fail[s] to transform that abstract idea into a patent-eligible invention.” Id. B. USPTO Revised Guidance In January 2019, the U.S. Patent and Trademark Office (USPTO) published revised guidance on the application of § 101.8 The Manual of Patent Examining Procedure (“MPEP”) now incorporates this revised 8 2019 Revised Patent Subject Matter Eligibility Guidance, 84 Fed. Reg. 50 (Jan. 7, 2019) (hereinafter “Revised Guidance”) (https://www.govinfo.gov/ content/pkg/FR-2019-01-07/pdf/2018-28282.pdf). In response to formal public comments, the Office issued further guidance on October 17, 2019, clarifying the Revised Guidance. USPTO, October 2019 Update: Subject Matter Eligibility (the “October 2019 Update”). “All USPTO personnel are, as a matter of internal agency management, expected to follow the guidance.” 84 Fed. Reg. at 51; see also October 2019 Update at 1. Appeal 2019-001889 Application 12/634,645 11 guidance and subsequent updates at Section 2106 (9th ed. Rev. 10.2019, rev. June 2020).9 Under MPEP § 2106, we first look to whether the claim recites: (1) any judicial exceptions, including certain groupings of abstract ideas (i.e., mathematical concepts, certain methods of organizing human activity such as a fundamental economic practice, or mental processes) (“Step 2A, Prong One,” referred to herein as “Step 2A(i)”); and (2) additional elements that integrate the judicial exception into a practical application (“Step 2A, Prong Two,” referred to herein as “Step 2A(ii)”).10 MPEP § 2106.04(a)) and § 2106.04(d). Under this guidance, if the claim does not recite a judicial exception (a law of nature, natural phenomenon, or subject matter within the enumerated groupings of abstract ideas above), then the claim is patent- eligible at Step 2A(i). This determination concludes the eligibility analysis, except in situations identified in the Revised Guidance.11 9 All references to the MPEP are to the Ninth Edition, Revision 10.2019 (Last Revised June 2020), unless otherwise indicated. 10 “Examiners evaluate integration into a practical application by: (1) identifying whether there are any additional elements recited in the claim beyond the judicial exception, and (2) evaluating those additional elements individually and in combination to determine whether the claim as a whole integrates the exception into a practical application, using one or more of the considerations introduced in subsection I supra, and discussed in more detail in MPEP §§ 2106.04(d)(1), 2106.04(d)(2), 2106.05(a) through (c) and 2106.05(e) through (h).” MPEP § 2106.04(d)II. 11 In the rare circumstance in which an examiner believes a claim limitation that does not fall within the enumerated groupings of abstract ideas should nonetheless be treated as reciting an abstract idea, the procedure described in Appeal 2019-001889 Application 12/634,645 12 Only if a claim (1) recites a judicial exception and (2) does not integrate that exception into a practical application,12 do we then look, under Step 2B, to whether the claim: (3) adds a specific limitation beyond the judicial exception that is not “well-understood, routine, conventional” in the field; or (4) simply appends well-understood, routine, conventional activities previously known to the industry, specified at a high level of generality, to the judicial exception.13 MPEP § 2106.05(d). In the Step 2B analysis, an additional element (or combination of elements) is not well-understood, routine or conventional unless the examiner finds an evidentiary basis, and expressly supports a rejection in writing with, one or more of the following: 1. A citation to an express statement in the specification or to a statement made by an applicant during prosecution that demonstrates the well-understood, routine, conventional nature of the additional element(s). . . . the MPEP for analyzing the claim should be followed. See MPEP § 2106.04(a)(3)(“Tentative Abstract Ideas”). 12 This corresponds to Alice part one where it is determined whether the claim is “directed to” an abstract idea. See Alice, 573 U.S. at 219. If a claim is “not directed to an abstract idea under part one of the Alice framework, we do not need to proceed to [part] two.” Enfish, LLC v. Microsoft Corp., 822 F.3d 1327, 1339 (Fed. Cir. 2016). 13 Items (3) and (4) correspond to Alice part two where it is determined whether the claim contains an ‘inventive concept’ sufficient to ‘transform’ the claimed abstract idea into a patent-eligible application” (Alice, 573 U.S. at 221) and continue to be collectively referred to as “Step 2B” of the U.S. Supreme Court’s two-part framework, described in Mayo and Alice. Appeal 2019-001889 Application 12/634,645 13 2. A citation to one or more of the court decisions discussed in MPEP § 2106.05(d)(II) as noting the well- understood, routine, conventional nature of the additional element(s). 3. A citation to a publication that demonstrates the well-understood, routine, conventional nature of the additional element(s). . . . 4. A statement that the examiner is taking official notice of the well-understood, routine, conventional nature of the additional element(s). . . . See MPEP §§ 2106.05(d)(I)(2); 2106.07(a). If the Examiner or the Board determines under Step 2B that the element (or combination of elements) amounts to significantly more than the exception itself, the claim is eligible, thereby concluding the eligibility analysis. However, if a determination is made that the element and combination of elements do not amount to significantly more than the exception itself, the claim is ineligible under Step 2B, and the claim should be rejected for lack of subject matter eligibility. Analysis Step 1 – Statutory Category Claim 1, as a method claim, recites one of the enumerated categories of eligible subject matter in 35 U.S.C. § 101. Therefore, the issue before us is whether it is directed to a judicial exception without significantly more.14 14 Independent claims 14–16, 27, 34–36, and 66 are respectively directed to a computer readable storage medium, apparatus, access terminal (apparatus), method, computer readable storage medium, apparatus, access terminal Appeal 2019-001889 Application 12/634,645 14 Step 2A(i): Does the Claim Recite a Judicial Exception? The Examiner concluded: [T]he claims are directed towards negotiating for services which is considered to be an abstract idea inasmuch as establishing a communication, negotiating, and establishing a connection are activities that are considered both fundamental economic or business practices. This is supported by the Federal Register dated Tuesday, December 16, 2014, which shows creating a contractual relationship is considered to be an abstract idea as shown in buySAFE. In this case the claims recite connecting to a terminal, negotiating the terms of the connection and establishing the connection based on those terms which is creating a contractual relationship. As such the claims are considered to be an abstract idea as they are directed toward negotiating for services and creating a contractual relationship, which as shown in the courts is an abstract idea. Final Act. 6 (generally citing buySAFE, Inc. v. Google, Inc., 765 F.3d 1350 (Fed. Cir. 2014). In the Answer, the Examiner concludes, “the claims do not have to recite the word contract to be establishing the terms of an agreement or contract. The limitations of the claims explicitly recite negotiating and paying for services based on the negotiation of the terms of that service[,] which is both an agreement and a contract.” Ans. 9. In response to the Examiner’s conclusion in the Final Action (cited above) that the claims are directed to a fundamental economic or business practices, i.e., negotiating and creating a contractual relationship, Appellant argues, “[t]he Office Action improperly mischaracterizes the subject matter (apparatus), and method, and thus recite on of the enumerated categories of eligible subject matter in 35 U.S.C. § 101. Appeal 2019-001889 Application 12/634,645 15 of the rejected claims. . . . The claims are not directed to ‘creating a contractual relationship’ as alleged by the Office Action.” Appeal Br. 9. Appellant further argues: The claims are directed to establishing a connection between an access terminal and an access network in which a third-party service provider purchases the connection according to negotiated connection parameters. Because the third-party service provider purchases the connection, the user of the access terminal does not provide confidential payment information to the access network. Present Application at [0101]. As a result, the user of the access terminal is able to protect his or her confidential payment information. The subject matter of the pending claims is rooted in computer technology in order to overcome problems specifically arising in the realm of computer networks and/or databases, which qualifies these claims as patent eligible subject matter. See, e.g., DDR Holdings, LLC v. Hotels.com, LP (Fed. Cir. 2014). The claims of the present application are directed to either an access terminal directly negotiating with an access network, or a third-party service provider. Appeal Br. 9. We evaluate whether claim 1 recites an abstract idea based upon the Revised Guidance. We determine that Appellant’s invention recites wireless communications, and more specifically to methods and systems to enable connectivity agreements to an access network. Spec. ¶ 2. More specifically, claim 1 recites “[a] method for an access terminal comprising a communications component to dynamically negotiate a connection with an access network,” that includes the steps of: establishing, via the communications component by the access terminal, an initial communication with the access Appeal 2019-001889 Application 12/634,645 16 network for a purpose of establishing the connection with the access network; negotiating, by the access terminal directly with the access network, without a user being involved in the negotiations, and based on the initial communication, connection parameters for the connection, the connection parameters being based on preconfigured connection rules for the access terminal; and establishing, by the access terminal, the connection with the access network according to the negotiated connection parameters in response to a third-party service provider purchasing the connection according to the negotiated connection parameters. Appeal Br. 20 (Claims App. (Claim 1)). These limitations, under their broadest reasonable interpretation, recite steps for a communications component of an access terminal to establish communications with an access network, which includes the access terminal negotiating directly with the access network using connection (technical) parameters without user (human) involvement. Appeal Br. 20 (Claims App.) (“without a user being involved in the negotiations”). In light of the Revised Guidance (now incorporated into the Manual for Patent Examining Procedure (see generally MPEP § 2106), we first determine that the claims under appeal recite an abstract idea. The Examiner does not find that claim 1 recites a mental process or a mathematical concept. The remaining category of abstract ideas for consideration is “certain methods of organizing human activity,” subcategorized as fundamental economic principles or practices; commercial or legal interactions; or managing personal behavior or relationships or interactions between people. See id. As discussed above, the Examiner Appeal 2019-001889 Application 12/634,645 17 characterizes the claims as reciting “negotiating and paying for services based on the negotiation of the terms of that service which is both an agreement and a contract.” Ans. 9. We do not agree with the Examiner’s characterization of the claims as being directed to negotiating and executing a contract or, more broadly, as being directed to certain methods of organizing human activity. First, we do not consider the claimed invention to recite economic principles or practices, or commercial or legal interactions, or managing personal behavior or relationships or interactions between people. Instead, claim 1 recites a negotiation between elements of a machine, not between humans. Thus, we construe the claims as reciting various hardware elements organizing machine activities, i.e., an access terminal establishing initial communications with an access network using connection parameters based on preconfigured connection rules for the access terminal. With this technical understanding, we do not view recitation of the phrase “negotiating . . . connection parameters” to invoke the characteristic meaning of “negotiating” in the context of contract law, but instead view the phrase as relating to the recited components automatically determining acceptable technical parameters for connection based upon hardware and/or network constraints, using preconfigured connection rules for the access terminal. See Spec. ¶ 73.15 15 Paragraph 73 of the Specification discloses: The connectivity parameters may include access terminal 102 preferences, such as a desired connectivity destination(s) (e.g., connection only to one server, a range of endpoints, multiple endpoints or ranges of endpoints), the type of Appeal 2019-001889 Application 12/634,645 18 Moreover, we determine that the recited claim limitations could not reasonably be expected to be carried out without the use of a computer and other related auxiliary components and communication links. See Research Corp. Techs. v. Microsoft Corp., 627 F.3d 859 (Fed. Cir. 2010), and SiRF Tech., Inc. v. Int’l Trade Comm’n, 601 F.3d 1319 (Fed. Cir. 2010) (finding that claims were not directed to an abstract idea because they “could not, as a practical matter, be performed entirely in a human’s mind.”). For the reasons discussed above, we disagree that claim 1 recites an abstract idea under Step 2A, Prong 1, of the 2019 Guidance. As such, we disagree with the Examiner’s ultimate conclusion that the claimed invention is directed to an abstract idea, particularly the abstract idea of negotiating for services, and may not reasonably be considered as a fundamental economic or business practice. Based upon the claim language, in light of the Specification, we conclude claim 1 recites the non-abstract idea of wireless communications, and more specifically to methods and systems to enable connectivity agreements to an access network. Therefore, we conclude that the claims do not recite a judicial exception because the claimed invention does not recited subject matter in any of the categories of abstract ideas enumerated in the 2019 Guidelines, and thus fails the Prong 1 abstract idea analysis under Step 2A(i). connectivity desired (e.g., protocols and ports commonly used for web browsing, e-mail, instant messaging, or downloading applications, among other types of connectivity), one or more Quality of Service parameters, or the range of connectivity, among other connection parameters. In other words, the connectivity parameters are negotiated that define one or more communication sessions to or through the access network. Appeal 2019-001889 Application 12/634,645 19 Because the claim does not recite a judicial exception (a law of nature, natural phenomenon, or subject matter within the enumerated groupings of abstract ideas above), in accordance with the Revised Guidance, we conclude the claim is patent-eligible at Step 2A(i). This determination concludes the eligibility analysis. Thus, we do not sustain the Examiner’s rejection of claims 1–3, 8, 10, 11, 14–18, 22, 24, 25, 27–41, 58, 62–64, and 66 under 35 U.S.C. § 101. 2. § 103(a) Rejection R2: Claims 1–3, 14–18, 27, 28, 34–37, 58, 62–64 Issue 2 Appellant argues (Appeal Br. 13–16; Reply Br. 11–14) the Examiner’s rejection of claim 1 under 35 U.S.C. § 103(a) as obvious over the combined teachings of Patel, Tedesco, Foley, and Hutchings is in error. These contentions present us with the following issue: Did the Examiner err in finding the cited prior-art combination teaches or suggests “[a] method for an access terminal comprising a communications component to dynamically negotiate a connection with an access network” that includes, inter alia, the step of “establishing, by the access terminal, the connection with the access network according to the negotiated connection parameters in response to a third-party service provider purchasing the connection according to the negotiated connection parameters,” as recited in claim 1? Principles of Law “[O]ne cannot show non-obviousness by attacking references individually where . . . the rejections are based on combinations of Appeal 2019-001889 Application 12/634,645 20 references.” In re Keller, 642 F.2d 413, 426 (CCPA 1981). “The test for obviousness is not whether the features of a secondary reference may be bodily incorporated into the structure of the primary reference . . . . Rather, the test is what the combined teachings of those references would have suggested to those of ordinary skill in the art.” Id. at 425. The test for obviousness is what the combined teachings of the prior art would have suggested to the hypothetical person of ordinary skill in the art. In re Keller, 642 F.2d 413, 425 (CCPA 1981). In KSR, the Court stated “[t]he combination of familiar elements according to known methods is likely to be obvious when it does no more than yield predictable results.” KSR Int’l Co. v. Teleflex, Inc., 550 U.S. 398, 416 (2007). When a work is available in one field of endeavor, design incentives and other market forces can prompt variations of it, either in the same field or a different one. If a person of ordinary skill can implement a predictable variation, § 103 likely bars its patentability. For the same reason, if a technique has been used to improve one device, and a person of ordinary skill in the art would recognize that it would improve similar devices in the same way, using the technique is obvious unless its actual application is beyond his or her skill . . . . [A] court must ask whether the improvement is more than the predictable use of prior art elements according to their established functions. Id. at 417. Further, the relevant inquiry is whether the Examiner has set forth “some articulated reasoning with some rational underpinning to support the legal conclusion of obviousness.” In re Kahn, 441 F.3d 977, 988 (Fed. Cir. 2006) (cited with approval in KSR, 550 U.S. at 418). Appeal 2019-001889 Application 12/634,645 21 Analysis The Examiner finds Patel teaches “establishing, by the access terminal the connection with the access network according to the negotiated connection parameters” (Final Act. 10 (citing Patel 11:3–17)); Tedesco teaches “the service is provided according to the negotiated parameters based on the third-party service provider purchasing the service according to the negotiated connection parameters” (Final Act. 11 (citing Tedesco ¶ 28)); Foley teaches negotiations are “performed without a user being involved in the negotiations” (Final Act. 13 (citing Foley ¶¶ 9, 43–55)); and Hutchins teaches that “it is known to be required to make payment of services prior to those services being rendered to the user.” Final Act. 14 (citing Hutchins ¶ 10). The Examiner further finds: Since each element and its function are shown in the prior art, albeit shown in separate references, the difference between the claimed subject matter and the prior art rests not on any individual element or function but in the very combination itself — that is in the substitution of the payment methods of the primary reference Patel and Tedesco with the requirement to have payment made prior to rendering services as taught by Hutchins. Thus, the simple substitution of one known element for another producing a predictable result renders the claim obvious. Therefore, from this teaching of Hutchins, it would have been obvious to one having ordinary skill in the art at the time the invention was made to modify the system for negotiating connection to a network provided by Patel, Tedesco and Foley, with requiring payment prior to rendering services as taught by Hutchins for the purposes of ensuring payment. Since Tedesco already shows it is known for a third party to pay for these Appeal 2019-001889 Application 12/634,645 22 services it would have been obvious to ensure the payment is made prior, thus ensuring that the service provider is paid. Final Act. 15–16. In response to the Examiner’s findings, Appellant contends: Hutchins discloses that a user may make a payment before services are rendered. Hutchins at [0010]. Hutchins fails to disclose, teach or suggest that a third-party provider purchases the connection prior to the services being rendered. More specifically, Hutchins discloses that a user pays for the services rather than a third-party paying for the services. . . . Because Hutchins is directed to a user paying for services prior to the services being rendered and independent claim 1 is directed to a third-party purchasing the connection prior to the services being rendered, Hutchins does not disclose, teach or suggest this feature. Appeal Br. 14. We are not persuaded by Appellant’s arguments because the test for obviousness is what the combined teachings of the prior art would have suggested to the hypothetical person of ordinary skill in the art. See Keller, 642 F.2d at 425. As cited above, the Examiner finds Tedesco teaches that a third party pays for services, and Hutchins teaches that it is known to pay for services before they are rendered. Moreover, because there are only three possible options for making payment for services, i.e., either pay before services are rendered, pay at the time services are rendered, or pay after services are rendered, we find an artisan would have known how to choose between the three respective Appeal 2019-001889 Application 12/634,645 23 payment scheme arrangements with predictable results.16 Our reviewing courts provide guidance: When there is a design need or market pressure to solve a problem and there are a finite number of identified, predictable solutions, a person of ordinary skill has good reason to pursue the known options within his or her technical grasp. If this leads to the anticipated success, it is likely the product not of innovation but of ordinary skill and common sense. In that instance the fact that a combination was obvious to try might show that it was obvious under § 103. KSR Int'l Co., 550 U.S. at 421 (emphases added); see also Perfect Web Techs., Inc. v. InfoUSA, Inc., 587 F.3d 1324, 1331 (Fed. Cir. 2009). Appellant further argues that Hutchins is non-analogous art because, allegedly, Hutchins is directed to evaluating the credit worthiness and payment histories of current and potential patients by accessing a database limited to a prospective patient’s payment history with respect only to previous healthcare debt. Hutchins at [0001] and [0010]. In contrast, independent claim 1 is directed to a third party purchasing a connection for access to an access network prior to the connection being established. An evaluation of a patient’s credit worthiness with respect to the patient’s previous healthcare debt is not in the same field of endeavor of the claimed invention and is not analogous to a third-party purchasing a connection for a user accessing an access network. In addition, Hutchins is trying to aid a healthcare provider in initially evaluating the creditworthiness of prospective patients and, when overdue accounts due occur, in determining the most cost-effective strategy in collecting the debt.” Hutchins at [0006]. In contrast, independent claim 1 is directed to a third party purchasing a connection for access to an access network prior to the connection being established, 16 See KSR, 550 U.S. at 416 (2007). Appeal 2019-001889 Application 12/634,645 24 thereby allowing the user to protect his or her confidential payment information. Thus, Hutchins is attempting to solve a different problem compared to the problem being solved by independent claim 1. As a result, Hutchins does not qualify as prior art and cannot support an obviousness rejection. Appeal Br. 15. Whether a reference in the prior art is “analogous” is a fact question. In re Clay, 966 F.2d 656, 658 (Fed. Cir. 1992) (citing Panduit Corp. v. Dennison Mfg., 810 F.2d 1561, 1568 n.9 (Fed. Cir.), cert. denied, 481 U.S. 1052 (1987)). Two criteria have evolved for determining whether prior art is analogous: (1) whether the art is from the same field of endeavor, regardless of the problem addressed, and (2) if the reference is not within the field of the inventor’s endeavor, whether the reference still is reasonably pertinent to the particular problem with which the inventor is involved. Id. (citing In re Deminski, 796 F.2d 436, 442 (Fed. Cir. 1986); In re Wood, 599 F.2d 1032, 1036 (CCPA 1979)). A reference is reasonably pertinent if, even though it may be in a different field from that of the inventor’s endeavor, it is one which, because of the matter with which it deals, logically would have commended itself to an inventor’s attention in considering his problem. Thus, the purposes of both the invention and the prior art are important in determining whether the reference is reasonably pertinent to the problem the invention attempts to solve. If a reference disclosure has the same purpose as the claimed invention, the reference relates to the same problem, and that fact supports use of that reference in an obviousness rejection. In re Clay, 966 F.2d at 659. We disagree with Appellant’s contention that Hutchins does not qualify as prior art and thus cannot support an obviousness rejection. We Appeal 2019-001889 Application 12/634,645 25 disagree because, even assuming Hutchins is not from the same field of endeavor as Appellant’s claimed invention, Hutchins meets the second prong of the analogous art test. Hutchins is reasonably pertinent to the problem which Appellant’s claimed invention is involved, i.e., the problem of third party payment prior to the rendering of services.17 Based upon the findings above, on this record, we are not persuaded of error in the Examiner’s reliance on the cited prior art combination to teach or suggest the disputed limitation of claim 1, nor do we find error in the Examiner’s resulting legal conclusion of obviousness. Therefore, we sustain the Examiner’s obviousness rejection of independent claim 1, and grouped claims 2, 3, 14–18, 27, 28, 34–37, 58, and 62–64 which fall therewith. See Claim Grouping, supra. 3. § 103 Rejection R2: Claim 66 Issue 3 Appellant argues (Appeal Br. 16–18; Reply Br. 15–16) the Examiner’s rejection of claim 66 under 35 U.S.C. § 103(a) as obvious over the combined teachings of Patel, Tedesco, Foley, and Hutchings is in error. These contentions present us with the following issue: Did the Examiner err in finding the cited prior art combination teaches or suggests “[a] method for negotiating, by a third-party service provider, a connection between an access terminal and an access network” that includes, 17 Cf. Donner Technology, LLC v. Pro Stage Gear, LLC, 979 F.3d 1353, 1360–61 (Fed. Cir. 2020) (Holding that the Board erred in its “reasonably pertinent” analysis by not properly identifying and comparing the purposes or problems to which the cited reference and claimed invention relate.) Appeal 2019-001889 Application 12/634,645 26 inter alia, the step of “sending charging information associated with the third-party service provider to the access network, wherein sending the charging information initiates establishment of the connection of the access terminal and the access network according to the agreed-upon values,” as recited in claim 66? Analysis Appellant argues “[s]imilar to above, Hutchins does not disclose, teach or suggest ‘sending charging information associated with the third- party service provider to the access network, wherein sending the charging information, initiates establishment of the connection of the access terminal and the access network according to the agreed-upon values’ as independent claim 66 further recites” (Appeal Br. 17), and again contends Hutchins does not qualify as analogous art. With respect to Appellant’s non-analogous art argument, we disagree for the reasons discussed above with respect to independent claim 1. Moreover, we are not persuaded by Appellant’s allegation that the reference combination does not teach or suggest the contested limitation because mere attorney arguments and conclusory statements that are unsupported by factual evidence are entitled to little probative value. In re Geisler, 116 F.3d 1465, 1470 (Fed. Cir. 1997); see also In re De Blauwe, 736 F.2d 699, 705 (Fed. Cir. 1984); and Ex parte Belinne, No. 2009-004693, slip op. at 7–8 (BPAI Aug. 10, 2009) (informative), available at https://www.uspto.gov/sites/default/files/ip/boards/bpai/decisions/inform/fd0 9004693.pdf. See In re Lovin, 652 F.3d 1349, 1357 (Fed. Cir. 2011) (“[W]e hold that the Board reasonably interpreted Rule 41.37 to require more Appeal 2019-001889 Application 12/634,645 27 substantive arguments in an appeal brief than a mere recitation of the claim elements and a naked assertion that the corresponding elements were not found in the prior art.”); cf. In re Baxter Travenol Labs., 952 F.2d 388, 391 (Fed. Cir. 1991) (“It is not the function of this court to examine the claims in greater detail than argued by an appellant, looking for [patentable] distinctions over the prior art.”). Arguments not made are waived. See 37 C.F.R. § 41.37(c)(1)(iv). Based upon the findings above, on this record, we are not persuaded of error in the Examiner’s reliance on the cited prior art combination to teach or suggest the disputed limitation of claim 66, nor do we find error in the Examiner’s resulting legal conclusion of obviousness. Therefore, we sustain the Examiner’s obviousness rejection of independent claim 66. 4. § 103(a) Rejections R3–R6: Claims 8, 10, 11, 22, 24, 25, 29–33, and 38–41 With respect to the rejections of the dependent claims, Appellant merely argues, “all dependent claims are allowable for at least the reasons that the respective independent claims are allowable.” Appeal Br. 18. In view of the lack of any substantive or separate arguments directed to obviousness Rejections R3 through R6 of claims 8, 10, 11, 22, 24, 25, 29–33, and 38–41 under § 103 (see Appeal Br. 18), we sustain the Examiner’s rejection of these claims. See 37 C.F.R. § 41.37(c)(1)(iv). REPLY BRIEF To the extent Appellant may advance new arguments in the Reply Brief (Reply Br. 5–16) not in response to a shift in the Examiner’s position in the Answer, arguments raised in a Reply Brief that were not raised in the Appeal 2019-001889 Application 12/634,645 28 Appeal Brief or are not responsive to arguments raised in the Examiner’s Answer will not be considered except for good cause, which we find Appellant has not shown here. See 37 C.F.R. § 41.41(b)(2). CONCLUSIONS (1) Under our Revised Guidance, governed by relevant case law, we conclude that claims 1–3, 8, 10, 11, 14–18, 22, 24, 25, 27–41, 58, 62–64, and 66 are not patent-ineligible under 35 U.S.C. § 101, and we do not sustain that rejection. (2) Appellant has not shown that the Examiner erred with respect to obviousness Rejections R2 through R6 of claims 1–3, 8, 10–11, 14–18, 22, 24–25, 27–41, 58, 62–64, and 66 under 35 U.S.C. § 103(a) over the combinations of the teachings of the applied references, and we sustain those rejections. Because we affirm at least one ground of rejection with respect to each claim on appeal, we affirm the Examiner’s decision. See 37 C.F.R. § 41.50(a)(1). Appeal 2019-001889 Application 12/634,645 29 DECISION SUMMARY Claims Rejected 35 U.S.C. § Basis / References Affirmed Reversed 1–3, 8, 10, 11, 14–18, 22, 24, 25, 27–41, 58, 62–64, 66 101 Subject Matter Eligibility 1–3, 8, 10, 11, 14–18, 22, 24, 25, 27–41, 58, 62–64, 66 1–3, 14– 18, 27, 28, 34–37, 58, 62–64, 66 103(a) Obviousness Patel, Tedesco, Foley, Hutchings 1–3, 14–18, 27, 28, 34–37, 58, 62–64, 66 8, 10, 11, 22, 24, 25, 30, 38 103(a) Obviousness Patel, Tedesco, Foley, Hutchings, Jensen 8, 10, 11, 22, 24, 25, 30, 38 29 103(a) Obviousness Patel, Tedesco, Foley, Hutchings, Donahue 29 31, 39 103(a) Obviousness Patel, Tedesco, Foley, Hutchings, Mashinsky 31, 39 32, 33, 40, 41 103(a) Obviousness Patel, Tedesco, Foley, Hutchings, Monga 32, 33, 40, 41 Overall Outcome 1–3, 8, 10, 11, 14–18, 22, 24, 25, 27–41, 58, 62–64, 66 Appeal 2019-001889 Application 12/634,645 30 FINALITY AND RESPONSE No time period for taking any subsequent action in connection with this appeal may be extended under 37 C.F.R. § 1.136(a)(1)(iv). See 37 C.F.R. § 41.50(f). AFFIRMED UNITED STATES PATENT AND TRADEMARK OFFICE BEFORE THE PATENT TRIAL AND APPEAL BOARD Ex parteKALLE AHMAVAARA, RANDALL C. GELLENS, GEORGIOS TSIRTSIS, PRASHANTH HANDE, GERARDO GIARETTA, and ARUNGUNDRAM MAHENDRAN Appeal 2019-001889 Application 12/634,645 Technology Center 3600 Before BRADLEY W. BAUMEISTER, LARRY J. HUME, and JAMES B. ARPIN, Administrative Patent Judges. Opinion Concurring filed by Administrative Patent Judge BAUMEISTER. I agree with the Majority’s reasoning and conclusions regarding the obviousness rejections under 35 U.S.C. § 103(a). I write separately because while I agree with the Majority in reversing the rejection under 35 U.S.C. § 101, I would do so for different reasons. Independent claim 1 reads as follows: A method for an access terminal comprising a communications component to dynamically negotiate a connection with an access network, the method comprising: [(a)] establishing, via the communications component by the access terminal, an initial communication with the access network for a purpose of establishing the connection with the access network; [(b)] negotiating, by the access terminal directly with the access network, without a user being involved in the negotiations, and based on the initial communication, connection parameters for Appeal 2019-001889 Application 12/634,645 2 the connection, the connection parameters being based on preconfigured connection rules for the access terminal; and [(c)] establishing, by the access terminal, the connection with the access network according to the negotiated connection parameters in response to a third-party service provider purchasing the connection according to the negotiated connection parameters. Appeal Br. 20 (paragraph indicators added for clarity and emphasis added to indicate claim language that allegedly is directed to an abstract idea). The Examiner determines that limitation (c) (the connection- establishing limitation), recites a precondition, “in response to a third-party service provider purchasing the connection according to the negotiated connection parameters,” that constitutes a fundamental economic or business practice. Final Act. 6; Ans. 9 (“[P]aying for services based on the negotiation of the terms of that service [constitutes] an agreement and a contract.”). I agree with the Examiner that conditioning an act on prior payment does constitute a method of organizing human activity that the 2019 Guidance recognizes as constituting an abstract idea. Specifically, such a conditioning of an act on prior payment constitutes a commercial or legal interaction. The 2019 Guidance recognizes commercial and legal interactions as constituting certain methods of organizing human activity that constitute an abstract idea. MPEP § 2106.04(a). As such, the Examiner has established that claim 1 recites at least one recognized abstract idea pursuant to step 2A, prong 1, of the 2019 Guidance. The Examiner additionally determines that limitation (b) recites a recognized abstract idea, as well. Final Act. 6; Ans. 9. Specifically, the Appeal 2019-001889 Application 12/634,645 3 Examiner determines that the claim language “negotiating . . . connection parameters for the connection, the connection parameters being based on preconfigured connection rules for the access terminal,” also constitutes an economic or business practice. Id. The Majority disagrees, “constru[ing] the claims as reciting various hardware elements organizing machine activities.” Majority Opinion 17. The Examiner may have set forth sufficient facts or reasoning to support the conclusion that the negotiating step constitutes an abstract idea, but I need not reach a determination on this issue. Assuming the negotiating step, within the context of the present claims, is broad enough to read additionally on a business interaction that pre-dates the Internet. For example, the claim language (aside from the additional requirement that the negotiation be performed “without a user being involved”) possibly reads on a user requesting that the access network provider provide a network connection based on the communication component’s connection parameters. In light of this assumption, the patent-eligibility analysis would progress to step 2A, prong 2, to determine whether the claim not merely recites, but also is directed to at least one of the abstract ideas. MPEP § 2106.045(d). But even if the claim were interpreted in a manner most favorable to the Examiner, the Examiner still must demonstrate under step 2A, prong 2, that the additional claim elements beyond the underlying abstract ideas fail to integrate the abstract ideas into a practical application. MPEP § 2106.04(d). And if the Examiner satisfies that showing, the Examiner additionally must demonstrate under step 2B that the additional elements do not add significantly more to the abstract idea. MPEP § 2106.05. Appeal 2019-001889 Application 12/634,645 4 To illustrate, I may well be persuaded that claim 1 is directed to patent-ineligible subject matter without reciting significantly more if the Examiner had provided sufficient facts or technical reasoning to support two conclusions. First, the Examiner must demonstrate sufficiently, for example, that the only inventive aspect of the claimed method entails the improved abstract idea of a third-party service provider first purchasing the connection prior to establishing the connection. See, e.g., Final Act. 7 (citing Spec. ¶ 41 to support this conclusion). Second, the Examiner also must demonstrate sufficiently that claim 1’s first two steps of (a) establishing an initial communication and (b) negotiating connection parameters “without a user being involved” both merely constitute extra-solution activity performed by generic components (step 2A, prong 2) in a well-understood, routine, and conventional manner (step 2B). But here, the Examiner only makes unsupported conclusions like (1) “the current claims are performed by a generically recited processor and the memory and program components contain no more than mere instructions to implement the abstract idea on a computer,” and (2) “[t]he claims require no more than a generic computer to perform generic computer functions that are well-understood, routine[,] and conventional activities previously known to the industry.” Final Act. 7. Because the Examiner does not provide a sufficient factual basis to support these conclusions, I would reverse the section 101 rejection under step 2A, prong 2, of the 2019 Guidance. And I would not reach step 2B of the 2019 Guidance. Copy with citationCopy as parenthetical citation