Ex Parte Gojkovic et alDownload PDFPatent Trial and Appeal BoardAug 21, 201811785435 (P.T.A.B. Aug. 21, 2018) Copy Citation UNITED STA TES p A TENT AND TRADEMARK OFFICE APPLICATION NO. FILING DATE 11/785,435 04/18/2007 96592 7590 08/23/2018 FIS/FINNEGAN, HENDERSON, FARABOW, GARRETT & DUNNER LLP 901 NEW YORK A VENUE WASHINGTON, DC 20001-4413 FIRST NAMED INVENTOR Mirko Gojkovic 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 ATTORNEY DOCKET NO. CONFIRMATION NO. l 1360.0395-00000 4245 EXAMINER BEKERMAN,MICHAEL ART UNIT PAPER NUMBER 3621 NOTIFICATION DATE DELIVERY MODE 08/23/2018 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): jeffrey.berkowitz@finnegan.com regional-desk@finnegan.com michael. wrobel@fisglobal.com PTOL-90A (Rev. 04/07) UNITED STATES PATENT AND TRADEMARK OFFICE BEFORE THE PATENT TRIAL AND APPEAL BOARD Ex parte MIRKO GOJKOVIC, DARYL COLIN HALLIDAY, and NENAD STOJANOVIC Appeal2017-005923 Application 11/785,435 1 Technology Center 3600 Before ANTON W. PETTING, BRUCE T. WIEDER, and MATTHEWS. MEYERS, Administrative Patent Judges. WIEDER, Administrative Patent Judge. DECISION ON APPEAL This is a decision on appeal under 35 U.S.C. § 134 from the Examiner's rejection of claims 1, 4--7, 12-24, 26-28, 30, 35--47, 49, and 50. We have jurisdiction under 35 U.S.C. § 6(b). We AFFIRM. CLAIMED SUBJECT MATTER Appellants' invention "generally relates to processing loyalty rewards programs." (Spec. 1.) 1 According to Appellants, the real party in interest is VALUECENTRIC MARKETING GROUP, INC. (Appeal Br. 2.) Appeal2017-005923 Application 11/785,435 Claims 1, 26, and 49 are the independent claims on appeal. Claim 26 is illustrative. It recites: 26. A method for processing a transaction in connection with a loyalty rewards program, said method comprising: identifying, via at least one processor, at least one individual associated with the transaction; receiving, via the at least one processor, information associated with the transaction, the transaction comprising a use of at least one tender; storing data descriptive of each item purchase [sic] in the transaction in a line item format, the line item data comprising information associated with an identity of the purchased item, the transaction, the at least one individual, and at least one promotion related to the loyalty rewards program; comparing the line item data with rules associated with the loyalty rewards program; determine whether the at least one individual is eligible for the at least one promotion, based at least on the rules associated with the loyalty rewards program, and at least one of demographic information or transactions made by the at least one individual prior to the transaction; determining whether the at least one tender is eligible for the at least one promotion based on the rules associated with the loyalty rewards program; determining, via the at least one processor, an amount associated with the transaction eligible for the at least one promotion, based at least on whether the at least on [sic] individual and the at least one tender are eligible for the at least one promotion; and determining at least one reward based on the comparison, the amount, and the at least one promotion. 2 Appeal2017-005923 Application 11/785,435 REJECTIONS Claims 1, 4--7, 12-24, 26-28, 30, 35--47, 49, and 50 are rejected under 35 U.S.C. § 101 as directed to a judicial exception without significantly more. Claims 1, 4--7, 12-24, 26-28, 30, 35--47, 49, and 50 are rejected under 35 U.S.C. § I03(a), as unpatentable in view ofVoltmer (US 2002/0143626 Al, pub. Oct. 3, 2002), Valliani (US 7,324,962 Bl, iss. Jan. 29, 2008), and Kingsborough (US 2007/0022008 Al, pub. Jan. 25, 2007). ANALYSIS The§ 1 OJ re;ection "Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title." 35 U.S.C. § 101. Section 101, however, "'contains an important implicit exception: Laws of nature, natural phenomena, and abstract ideas are not patentable.'" Alice Corp. Pty. Ltd. v. CLS Bankint'l, 134 S. Ct. 2347, 2354 (2014) (quoting Assoc.for Molecular Pathology v. Myriad Genetics, Inc., 569 U.S. 576, 589 (2013)). Alice applies a two-step framework, earlier set out in Mayo Collaborative Services v. Prometheus Laboratories, Inc., 566 U.S. 66 (2012), "for distinguishing patents that claim laws of nature, natural phenomena, and abstract ideas from those that claim patent-eligible applications of those concepts." Alice, 134 S. Ct. at 2355. 3 Appeal2017-005923 Application 11/785,435 Under the two-step framework, it must first be determined if "the claims at issue are directed to a patent-ineligible concept." Id. If the claims are determined to be directed to a patent-ineligible concept, e.g., an abstract idea, then the second step of the framework is applied to determine if "the elements of the claim ... contain[] an 'inventive concept' sufficient to 'transform' the claimed abstract idea into a patent-eligible application." Id. at 2357 (citing Mayo, 566 U.S. at 72-73, 79). With regard to step one of the Alice framework, the Examiner determines that the "claims are directed to providing purchasing rewards and incentives, which is a fundamental economic practice and/or a method of organizing human activities," i.e., the claims are directed to an abstract idea. (Final Action 2; see also Answer 2-3.) Appellants disagree and argue that "[f]irst, the Examiner's assertion is not supported by prior court decisions." (Appeal Br. 10.) Appellants also argue: Second, Appellant's [sic] claims are directed to neither fundamental economic practice nor ineligible method of organizing human activities. The Examiner asserted that "the claims as a whole are directed to profile or transaction based targeting or incentives which is a 'fundamental economic practice'," citing Alice Corp., Bilski, buySAFE, Inc., and Ultramercial Inc. Final Office Action, p. 8. However, as the USPTO explained, buySAFE, Inc. ("creating a contractual relationship") and Bilski ("hedging") "found concepts relating to agreements between people or performance of financial transactions abstract." July 2015 Update, p. 4. Alice Corp. ("mitigating settlement risk") and Bilski "found concepts relating to mitigating risks abstract." Id. The Examiner has provided nothing to show why Appellant's [sic] claims, or even the purported idea, are similar to the above-identified concepts. (Id. at 11-12.) 4 Appeal2017-005923 Application 11/785,435 Under step one of the Alice framework, we "look at the 'focus of the claimed advance over the prior art' to determine if the claim's 'character as a whole' is directed to excluded subject matter." Affinity Labs of Texas, LLC v. DIRECTV, LLC, 838 F.3d 1253, 1257 (Fed. Cir. 2016) (quoting Elec. Power Grp., LLC v. Alstom S.A., 830 F.3d 1350, 1353 (Fed. Cir. 2016)). The Specification provides evidence as to what the claimed invention is directed. In this case, the Specification discloses that the invention "generally relates to processing loyalty rewards programs." (Spec. 1.) Claim 26 provides additional evidence. Claim 26 recites "[a] method for processing a transaction in connection with a loyalty rewards program ... comprising: identifying ... at least one individual associated with the transaction," "receiving ... information associated with the transaction," "storing data descriptive of each item purchase[ d] ... in a line item format," "comparing the line item data with rules associated with the loyalty program," "determin[ing] whether the ... individual is eligible for the ... promotion," "determining whether ... the tender is eligible for the ... promotion," "determining ... an amount associated with the transaction eligible for the ... promotion," "and determining at least one reward." Although we and the Examiner describe, at different levels of abstraction, to what the claim is directed, it is recognized that "[a]n abstract idea can generally be described at different levels of abstraction." Apple, Inc. v. Ameranth, Inc., 842 F.3d 1229, 1240 (Fed. Cir. 2016). That need not and, in this case does not, "impact the patentability analysis." See id. at 1241. Circuit Judge Bryson, sitting in District Court for the Eastern District of Texas, determined that " [ t] he core idea of ... providing a computer-based 5 Appeal2017-005923 Application 11/785,435 incentive award program-is plainly an unpatentable abstract idea by itself." Kray IP Holdings, LLC v. Safeway, Inc., 107 F. Supp. 3d 677, 690 (E.D. Tx. 2015), ajf'd 639 F. App'x 637 (Fed. Cir. 2016). Additionally: The use of incentive award programs in marketing is indistinguishable in principle from the kinds of financial or business operations that were at issue in Bilski and Alice, as well as similar financial or business operations that were at issue in various Federal Circuit decisions in which the claims have been held patent-ineligible under section 101. See buySAFE, 765 F.3d 13 50 (guaranty service for on-line transactions); Accenture, 728 F.3d 1336 ("system for generating tasks to be performed in an insurance organization"); Bancorp, 687 F.3d 1266 (method for managing a life insurance policy, including generating the policy, calculating fees, and determining the surrender value and investment value of the policy); Dealertrack, Inc. v. Huber, 674 F.3d 1315 (Fed.Cir.2012) (method for processing credit applications); Fort Properties, Inc. v. Am. Master Lease LLC, 671 F.3d 1317 (Fed.Cir.2012) (method for creating a real estate investment instrument adapted for performing tax-deferred exchanges). Id. at 691. In view of the above, we disagree with Appellants that "the Examiner's assertion is not supported by prior court decisions" (see Appeal Br. 10), and that e.g., Alice, Bilski, and buySAFE, are not similar to Appellants' claimed invention (see id. at 11-12). Additionally, Appellants seek to analogize the present claims to the claims in McRO, Inc. v. Bandai Namco Games Am. Inc., 837 F.3d 1299, 1313 (Fed. Cir. 2016). (Reply Br. 17-18.) Appellants argue that the present claims are not directed to an abstract idea because, like the claims in McRO, "Appellant's [sic] claims employ a 'specific means or method' that enables a 'technological improvement over the existing manual ... techniques' for 6 Appeal2017-005923 Application 11/785,435 determining a reward." (Id. at 17, emphasis omitted.) We disagree. In McRO, the court determined that the claimed improvement here is allowing computers to produce "accurate and realistic lip synchronization and facial expressions in animated characters" that previously could only be produced by human animators. As the district court correctly recognized, this computer automation is realized by improving the prior art through "the use of rules, rather than artists, to set the morph weights and transitions between phonemes." The rules are limiting in that they define morph weight sets as a function of the timing of phoneme sub-sequences. McRO, 837 F.3d at 1313 (citations omitted). Rather than a technological improvement, here, the asserted improvement is to a business practice regarding what information is stored, i.e., "line item data," as part of a "method for processing a transaction in connection with a loyalty rewards program." (See Claim 26.) In the Reply Brief, Appellants, for the first time in this appeal, separately argue dependent claim 17. (See Reply Br. 18-19.) Appellants' new argument in the Reply Brief was not responsive to a new argument raised in the Examiner's Answer. Under 37 CPR§ 4I.41(b)(2), we need not consider new arguments absent a showing of good cause. No showing was made. Nonetheless, we note that Appellants argue that "claim 17 recites a 'specific means or method' of tracking rewards in regards to returned or exchanged merchandise via line-item stored data." (Id. at 18, citing Spec. 21, 11. 13-15.) But this is simply an argument regarding the kinds of information stored, i.e., line item data, and additional routine steps for processing that data, i.e., comparing, analyzing/determining, and issuing 7 Appeal2017-005923 Application 11/785,435 instruction based on the determination. 2 See, e.g., Elec. Power Grp., 830 F.3d at 1353-54. This does not change our analysis. In short, rather than a technological improvement, as argued by Appellants (Reply Br. 17), "[t]hese claims in substance [are] directed to nothing more than the performance of an abstract business practice ... using a conventional computer. Such claims are not patent-eligible." DDR Holdings, LLC, 773 F.3d at 1256. In view of the above, we are not persuaded that the Examiner erred in determining that the claims are directed to an abstract idea. We next look to part two of the Alice framework which has been described "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, 134 S. Ct. at 2355 (citing Mayo, 566 U.S. at 72-73). 2 Claim 17 recites: 1 7. The system of claim 14 wherein the method further comprises: comparing the line item data with stored data relating to the at least one individual to determine whether or not there is a return of the purchase; when the comparison determines a return: retracting the at least one reward; determining whether the owed amount is associated with the at least one line item; and when the owed amount is associated with the at least one line item: refunding the owed amount if the owed amount has been paid; and voiding the owed amount when the owed amount has not paid [sic]. 8 Appeal2017-005923 Application 11/785,435 The Examiner determines that "the computer processor, and the steps performed thereon, do not include additional elements that are sufficient to amount to significantly more than the judicial exception because the only other element in the claims besides the abstract ideas identified above is the computer processor." (Final Action 8.) Appellants disagree and argue that "the Examiner failed to consider claim 1 as a whole." (Appeal Br. 13.) In particular, Appellants argue that claim 1 (like claim 26), recites a combination including: "storing data descriptive of each item purchased in the transaction in a line item format, the line item data comprising information associated with an identity of the purchased item, the transaction, the at least one individual, and at least one promotion related to the loyalty rewards program" ( emphases added). The Final Office Action does not provide any reasoned explanation as to whether the above-quoted claim elements are "widely prevalent" or their "combination with any other additional elements is well-understood, routine, conventional activity." May 2016 Update, p. 4. (Id. at 14, citing "Formulating a Subject Matter Eligibility Rejection and Evaluating the Applicant's Response to a Subject Matter Eligibility Rejection," Memorandum, Robert W. Bahr, Deputy Commissioner for Patent Examination Policy, May 4, 2016.) Appellants further argue that "[b ]y 'stor[ing] ... information on a line item level for each item purchased in the transaction,' 'the system is capable of providing cumulative eligible amounts and rewards for a particular individual, promotion, or other criteria."' (Id. at 15, quoting Spec. 46).) But this is not an argument that a unique or special data format improves the functioning of the processor, this is an argument that storing more detailed information, i.e., line item data, 9 Appeal2017-005923 Application 11/785,435 addresses a particular business problem. Cf Bascom Global Internet Servs., Inc. v. AT&T Mobility LLC, 827 F.3d 1341, 1350-51 (Fed. Cir. 2016). 3 The processor in Appellants' invention identifies data, receives data, stores data, compares data, and analyzes the data to determine results based on the data. Receiving, storing, and comparing/analyzing data are all routine computer functions. See, e.g., Elec. Power Grp., 830 F.3d at 1353-54. And Appellants' Specification discloses using generic computer components to perform these functions. (Spec. 10-11.) Nor do Appellants "claim a particular way of programming or designing the software ... , but instead merely claim the resulting systems." Apple, Inc., 842 F.3d at 1241. And "under the Mayo/Alice framework, a claim directed to a newly discovered law of nature ( or natural phenomenon or abstract idea) cannot rely on the novelty of that discovery for the inventive concept necessary for patent eligibility." Genetic Techs. Ltd. v. Merial L.L.C., 818 F.3d 1369, 1376 (Fed. Cir. 2016). 3 In the Reply Brief, Appellants argue, for the first time in this appeal, that because the claims recite storing data in a "line item format," the claims are not directed to an abstract idea, i.e., an argument directed to step one of the Alice framework. (See Reply Br. 11-12.) In the Appeal Brief, Appellants' argument with regard to storing data in a "line item format" was only with regard to step two of the Alice framework. Appellants' new argument in the Reply Brief was not responsive to an argument raised in the Examiner's Answer. Under 3 7 CPR § 41.41 (b )(2), we need not consider new arguments absent a showing of good cause. No showing was made. Regardless, for the reasons discussed, we do not find this argument persuasive that the claims are not directed to an abstract idea. Additionally, even if we "defer[red] our consideration of the specific claim limitations' narrowing effect for step two," which we may do, see Bascom, 827 F.3d at 1349, for the same reasons, we would still not be persuaded that the claims recite patent eligible subject matter. 10 Appeal2017-005923 Application 11/785,435 Appellants also seek to analogize the claims to the claims in DDR Holdings. (Appeal Br. 16.) We disagree. Unlike the claims here, the claims in DDR Holdings "specify how interactions with the Internet are manipulated to yield a desired result-a result that overrides the routine and conventional sequence of events ordinarily triggered by the click of a hyperlink." DDR Holdings, 773 F.3d 1245, 1258 (Fed. Cir. 2014) (emphasis added). In other words, the invention claimed in DDR Holdings does more than "simply instruct the practitioner to implement the abstract idea with routine, conventional activity." See Ultramercial, Inc. v. Hulu, LLC, 772 F.3d 709, 715 (Fed. Cir. 2014); see also DDR Holdings, 773 F.3d at 1259. Appellants other arguments have been considered but were not found persuasive. In view of the above, we agree with the Examiner that claim 26 is directed to a judicial exception under § 101 without significantly more. Independent claims 1 and 49 contain similar language and for similar reasons we agree with the Examiner that the claims are directed to a judicial exception under § 101 without significantly more. Dependent claims 4--7, 12-24, 27, 28, 30, 35--47, and 50, are not separately argued and fall with claims 1, 26, and 49. See 37 C.F.R. § 4I.37(c)(l)(iv). The§ 103 re;ection Appellants assert: Independent claim 1 recites a combination including, for example: determining whether the at least one individual is eligible for the at least one promotion, based at least on ... one of demographic information or 11 Appeal2017-005923 Application 11/785,435 transactions made by the at least one individual prior to the transaction; ... determining an amount associated with the transaction eligible for the at least one promotion, based at least on whether the at least one individual and the at least one tender are eligible for the at least one promotion. (Appeal Br. 19.) Appellants argue that "nothing in paragraphs [0033], [0034], or [0046] [ofVoltmer] teaches that the information on prior transactions is used to determine whether a consumer is eligible for a particular promotion, nor does it teach demographic data as determining the consumer's eligibility for the promotion." (Id. at 20.) Appellants make a similar argument regarding paragraphs 51 and 52 of Voltmer. (Id. at 21-22.) The Examiner, however, finds that [p ]aragraph 0044 states "manufacturer may provide frequency- based incentives, such as every 10th purchase of a particular item will be discounted by 50%". Paragraph 004 7 teaches "Retailer 1 may purchase 10,000 points from the system administrator and then offer consumers 1 point for every $10 dollars spent in Retailer 1 's store or, perhaps, some number of points for every fifth transaction in the store". Therefore, Voltmer clearly teaches prior transactions as determining eligibility. (Answer 8.) Appellants reply that "this statement at best teaches providing a reward when the current purchase is a 10th purchase. It does not teach the information on the prior 9 purchases is used to determine whether a consumer is eligible for a particular promotion." (Reply Br. 27.) As an initial matter, we note that claim 1 recites "determining whether the at least one individual is eligible for the at least one promotion, based at least on ... at least one of [(1 )] demographic information or [(2)] 12 Appeal2017-005923 Application 11/785,435 transactions made by the at least one individual prior to the transaction." (Emphasis added.) Thus, applying a broadest reasonable interpretation, it is sufficient for the Examiner to find that Voltmer teaches determining eligibility for a promotion based on either demographic information or prior transactions. Here, the Examiner finds that "Voltmer clearly teaches prior transactions as determining eligibility." (Answer 8.) Voltmer discloses "a system for implementing a loyalty program on a network-wide level." (Voltmer, Abstract.) As discussed above, Voltmer further discloses that "[f]or example, a manufacturer may provide frequency-based incentives, such as every 10th purchase of a particular item will be discounted by 50%." (Id. ,r 44.) In other words, Voltmer discloses using the fact of the prior purchases/transactions to determine eligibility for the promotion. Appellants do not persuasively argue why this does not teach determining eligibility for a promotion based on transactions made prior to the current transaction. Appellants also do not argue that the term "transactions" should be interpreted, under a broadest reasonable interpretation, to exclude purchases, or that the Specification discloses such an interpretation. Therefore, we do not find this argument persuasive of error. Appellants also argue that the cited prior art also fails to teach "determining an amount associated with the transaction eligible for the at least one promotion, based at least on whether ... the at least one tender ... [is] eligible for the at least one promotion," wherein at least one reward is determined based on the amount, as recited in claim 1. The Final Office Action correctly concedes Voltmer and Valliani do not teach these elements, but asserts Kingsborough teaches them, citing paragraphs [0018] and [0019] of Kingsborough. This assertion is incorrect. 13 Appeal2017-005923 Application 11/785,435 (Reply Br. 28, citations omitted.) However, Appellants did not argue this alleged deficiency in Kingsborough in the Appeal Brief. Appellants' new argument in the Reply Brief was not responsive to an argument raised in the Examiner's Answer. Under 37 CPR§ 4I.41(b)(2), we need not consider new arguments absent a showing of good cause. No showing is made. Nonetheless, we note that the Examiner determined that Kingsborough teaches determining eligibility in a promotion (and, therefore, an eligible amount) based on a type of tender used (Paragraphs 0018 and 0019). It would have been obvious to one having ordinary skill in the art at the time the invention was made to determine eligibility for a promotion based on a type of tender used in order to promote the use of a specific desired tender. (Final Action 5.) Kingsborough discloses "card-free programs provided by a merchant to a customer, whereby the customer has access to functions such as payment options and/or loyalty program benefits without needing to present a physical card at a point of sale." (Kingsborough, Abstract.) In particular, Kingsborough discloses that "a customer may be rewarded under a linked loyalty program for using a specific card-free payment type such as an ACH [automated clearing house] debit." (Id. ,r 19.) Thus, we agree with the Examiner that "Kingsborough teaches determining eligibility in a promotion ... based on a type of tender used." (See Final Action 5.) Nonetheless, Appellants argue that "Kingsborough does not teach or suggest 'determining an amount associated with the transaction eligible for the at least one promotion."' (Reply Br. 28.) But Kingsborough further discloses that "a customer may be rewarded under a loyalty program for a 14 Appeal2017-005923 Application 11/785,435 cumulative purchase of a given number of a specific product [i.e., an amount of product] using a specific card-free payment type such as an ACH debit." (Kingsborough ,r 19; see also Spec. 9 ("The term 'eligible amount' as used herein is meant to include any amount of items (goods and/ or services) or currency deemed eligible for any promotion by any means consistent with the present invention.").) Finally, Appellants argue that "[ n Jo prima facie case of obviousness has been established." (Appeal Br. 18.) The USPTO carries its procedural burden of establishing a prima facie case when its rejection satisfies the requirements of 35 U.S.C. § 132 by notifying the applicant of the reasons for rejection, "'together with such information and references as may be useful in judging of the propriety of continuing the prosecution of [the] application."' In re Jung, 637 F.3d 1356, 1362 (Fed. Cir. 2011) (brackets in original, quoting 35 U.S.C. § 132(a)). Particularly in view of Appellants' responses to the Examiner's stated reasons for the rejection, we do not agree that the Examiner did not notify Appellants of the reasons for the rejection. In view of the above, we are not persuaded that the Examiner erred in rejecting claim 1 under§ 103(a). Independent claims 26 and 49 contain similar language and Appellants argue that they are allowable for similar reasons. (Appeal Br. 23.) Appellants further argue that dependent claims 4-- 7, 12-24, 27, 28, 30, 35--47, and 50, are allowable due to their dependence from allowable claims. (Id.) We disagree for the reasons discussed above with regard to claim 1. 15 Appeal2017-005923 Application 11/785,435 DECISION The Examiner's rejection of claims 1, 4--7, 12-24, 26-28, 30, 35--47, 49, and 50 under 35 U.S.C. § 101 is affirmed. The Examiner's rejection of claims 1, 4--7, 12-24, 26-28, 30, 35--47, 49, and 50 under 35 U.S.C. § 103(a) is affirmed. 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)(l )(iv). AFFIRMED 16 Copy with citationCopy as parenthetical citation