Ex Parte Rothman et alDownload PDFPatent Trial and Appeal BoardAug 3, 201811282644 (P.T.A.B. Aug. 3, 2018) Copy Citation UNITED STA TES p A TENT AND TRADEMARK OFFICE APPLICATION NO. FILING DATE 11/282,644 11/21/2005 131244 7590 08/03/2018 Hunton Andrews Kurth LLP/JPMorgan Chase Intellectual Property Department 2200 Pennsylvania A venue, NW Suite 800 Washington, DC 20037 FIRST NAMED INVENTOR Michael J. Rothman 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. 47004.000388 1863 EXAMINER DURAN, ARTHUR D ART UNIT PAPER NUMBER 3622 MAIL DATE DELIVERY MODE 08/03/2018 PAPER 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. PTOL-90A (Rev. 04/07) UNITED STATES PATENT AND TRADEMARK OFFICE BEFORE THE PATENT TRIAL AND APPEAL BOARD Ex parte MICHAEL J. ROTHMAN, KATHLEEN H. WITSIL, and DAVID W. NANEK 1 Appeal2017-001664 Application 11/282,644 Technology Center 3600 Before BRADLEY W. BAUMEISTER, AMBER L. HAGY, and PHILLIP A. BENNETT, Administrative Patent Judges. BAUMEISTER, Administrative Patent Judge. DECISION ON APPEAL Appellants appeal under 35 U.S.C. § 134(a) from the Examiner's Final Rejection of claims 59---61, 63-80, and 92-98. App. Br. 7. 2 We have jurisdiction under 35 U.S.C. § 6(b). We REVERSE. Pursuant to 37 C.F.R. § 41.50(b), we enter NEW GROUNDS OF REJECTION for claims 59-61, 63-80, and 92-98 under at least one of 35 U.S.C. §§ 101 and 112, ,r 2 (pre-AIA). 1 Appellants identify JPMorgan Chase Bank, NA as the real party in interest. Appeal Brief 1, filed June 27, 2016 ("App. Br."). 2 Rather than repeat the Examiner's positions and Appellants' arguments in their entirety, we refer to the details of the above-mentioned Appeal Brief, as well as the following documents: the Final Action mailed January 27, 2016 ("Final Act."); the Examiner's Answer mailed September 13, 2016 ("Ans."); and the Reply Brief filed November 11, 2016 ("Reply Br."). Appeal2017-001664 Application 11/282,644 STATEMENT OF THE CASE Appellants describe the present invention as follows: The present invention relates to storing and manipulating customer purchasing information, particularly purchasing information by credit cards, debit cards, checks, and the like. A hierarchical organizational structure is created comprising a plurality of categories and sub-categories. The customer purchase information may then be retrieved according to user created links to generate customer preference information. The customer preference information may be stored in a customer account, thereby allowing targeted offers to be made to customers. Abstract. Independent claim 59 illustrates the claimed invention: 59. A method for making a targeted offer, the method implemented in a computer system for storing and manipulating customer purchase information received from a plurality of sources for a plurality of customers, the computer system comprising a storage device for storing the customer purchase information and a processor for placing the customer purchase information, the method comprising: receiving the customer purchase information, the receiving performed by the processor, the customer purchase information associated with customer accounts of the plurality of customers; creating an organizational structure comprising a plurality of categories and subcategories arranged in a hierarchy, and then organizing the customer purchase information within the organizational structure, the organizing performed by the processor, wherein headings for the plurality of sub-categories in the organizational structure include representations of specific merchant names; placing the customer purchase information, with associated customer accounts, into an order based on the customer purchase information for the plurality of customers, the 2 Appeal2017-001664 Application 11/282,644 customer purchase information comprising a dollar amount of purchases among the plurality of categories and sub-categories, and so as to order the customer accounts of the plurality of customers respectively within the plurality of categories and sub- categories; generating a plurality of customer scores for the plurality of customers based on the order of the customer accounts within each of the at least one of the plurality of categories and subcategories; creating a customer preference, for a target customer, based on at least one of the generated plurality of customer scores associated with the at least one of the plurality of categories and sub-categories; and forming an off er for the target customer based on the customer preference; wherein the step of generating a plurality of customer scores for the plurality of customers includes generating multiple customer scores for the target customer, the multiple customer scores for the target customer each being respectively associated with different subcategories of a category, and wherein the step of organizing the customer purchase information within the organizational structure further comprises using a link file to direct the processor, the link file comprising a plurality of instructions directing the processor to place the customer purchase information in a predetermined location in the organizational structure, the plurality of instructions comprising wordstring data corresponding to the specific merchant names. App. Br. 30-31 (Claim App.). Claims 59-61, 63-80, and 92-98 stand rejected under 35 U.S.C. § I03(a) as unpatentable over Herz et al. (US 2001/0014868 Al; published Aug. 16, 2001, hereinafter "Herz"), Lazarus et al. (US 6,430,539 Bl; issued Aug. 6, 2002, hereinafter "Lazarus"), and Chakrabarti et al. (US 6,334,131 B2; issued Dec. 25, 2001, hereinafter "Chakrabarti"). Final Act. 8. 3 Appeal2017-001664 Application 11/282,644 We review the appealed rejections for error based upon the issues identified by Appellants, and in light of the arguments and evidence produced thereon. Ex parte Frye, 94 USPQ2d 1072, 107 5 (BP AI 2010) (precedential). Pursuant to 37 C.F.R. § 4I.50(b), we also exercise our discretionary authority, entering new grounds of rejection for claims 59---61, 63-80, and 92-98 under at least one of 35 U.S.C. §§ 101 and 112, ,r 2 (pre-AIA). NEW INDEFINITENESS REJECTION Principles of Law "The specification shall conclude with one or more claims particularly pointing out and distinctly claiming the subject matter which the applicant regards as his invention." 35 U.S.C. § 112, ,r 2 (Pre-AIA). \Vhere a claim directed to a device can be read to include the same element hvice, the claim may be indefinite. Ex parte Kristensen, 10 USPQ2d 1701 (BPAI 1989), "[I]f a claim is amenable to two or more plausible claim constructions, the USPTO is justified in requiring the applicant to more precisely define the metes and bounds of the claimed invention by holding the claim unpatentable under 35 U.S.C. § 112, second paragraph, as indefinite." Ex parte Miyazaki, 89 USPQ2d 1207, 1211 (BPAI 2008) (precedential); see also Ex parte McAward, Appeal No. 2015-006416, 2017 WL 3669566 (PTAB Aug. 25, 2017) (precedential). 4 Appeal2017-001664 Application 11/282,644 Analysis As noted above, independent claim 59 recites, inter alia, the following two limitations: creating an organizational structure compnsmg a plurality of categories and subcategories arranged in a hierarchy, and then organizing the customer purchase information within the organizational structure, the organizing performed by the processor, wherein headings for the plurality of sub-categories in the organizational structure include representations of specific merchant names; placing the customer purchase information, with associated customer accounts, into an order based on the customer purchase information for the plurality of customers, the customer purchase information comprising a dollar amount of purchases among the plurality of categories and sub-categories, and so as to order the customer accounts of the plurality of customers respectively within the plurality of categories and sub-categories. App. Br. 30-31 (Claim App.). The remaining two independent claims, claims 75 and 96, respectively, are directed to a system for storing and manipulating customer purchase information and a method for making targeted offers. Id. at 33-34, 36-37. These independent claims recite limitations that are similar to the above-noted limitations of claim 59. Id. The above-recited claim limitations of these independent claims did not appear in the originally filed claims, but, instead, were added by amendment over the course of prosecution. Compare, e.g., Appellants' original claim 1, filed November 21, 2005 (reciting only a single organizing or "placing" step) with new claim 59, as filed February 26, 2006 (reciting a single organizing step) and with amended claim 59, filed September 17, 2007 (reciting for the first time, two distinct information-organizing and information-ordering steps). 5 Appeal2017-001664 Application 11/282,644 The plain language of these independent claims, as currently amended, appears to require two distinct organizing and ordering steps ( or, in the case of system claim 75, two distinct ordering means) for the following reasons: In the case of claim 59, for example, the first step entails "organizing the customer purchase information of the plurality of customers within the organizational structure." The second step entails "placing the customer purchase information ... into an order based on customer purchase information for the plurality of customers ... so as to order the customer accounts of the plurality of customers respectively within the plurality of categories and sub-categories." That is, the plain language indicates that the customer information is first placed into the organizational structure and then, in a distinct step, subsequently ordered within the organizational structure. Appellants' substitute Specification filed February 27, 2006 ("Spec.") conversely indicates that the invention entails only a single information- organization step. See, e.g., Spec. 12-13 (setting forth only a single placement step that entails placing customer purchase information into the organizational structure after the information has been received from the purchase storage device), and FIG. 5 (stating that customer purchase information is received in step 106, only that the information is ordered or "placed" into the organizational structure using a link file in step 108, and that the ordered information then is scored in step 110). The conflict between Appellants' amended claims and Appellants' Specification renders it less than reasonably clear how many ordering steps are intended to be encompassed by the metes and bounds of the claims. For example, it may be that the claims entail only a single ordering step or 6 Appeal2017-001664 Application 11/282,644 means, as disclosed by Appellants' Specification. But it equally may be the case that Appellants actually intended to claim two distinct organizing and ordering steps, even though such a claim scope does not appear to be supported by Appellants' originally filed Specification. Accordingly, we exercise our discretionary authority under 37 C.F.R. § 4I.50(b) and enter a new ground of rejection for claim 59-61, 63-80, and 92-98 under 35 U.S.C. § 112, ,r 2 (pre-AIA). OBVIOUSNESS REJECTION Appellants assert, inter alia, that "[t]he Office Action does not provide a prima facie case of obviousness, but rather presents a convoluted concatenation of allegations." App. Br. 9. According to Appellants, "[t]he Office Action does not 'clearly set[] forth findings of fact and the rationales to support a rejection.' Rather, nearly 30 pages are devoted to rejecting the limitations recited in independent claim 59, and in these 30 pages it is nearly impossible to decipher the rejection." Id. at 10. Appellants also assert that the obviousness rejection contains other shortcomings: In attempting to address the claimed invention, the Office Action merely paraphrases the claim elements. As a result, the precise claim terms are not properly addressed. For example, on pages 9-10 of the Office Action, the Examiner concludes that the claim elements are obvious. However, in doing so, the Office Action does not follow the exact claim language. The Office Action concludes the "Herz further renders obvious ... wherein the predetermined organizational structure comprises a plurality of categories, each category comprising a plurality of sub-categories arranged in a hierarchy .... " However, the claims require: "creating an organizational structure comprising a plurality of categories and subcategories arranged in a hierarchy, 7 Appeal2017-001664 Application 11/282,644 and then organizing the customer purchase information within the organizational structure, the organizing performed by the processor, wherein headings for the plurality of sub-categories in the organizational structure include representations of specific merchant names." The language in bold and italics is missing in the Office Action's "analysis." In a similar manner, claim 59 recites: placing the customer purchase information, with associated customer accounts, into an order based on the customer purchase information for the plurality of customers, the customer purchase information comprising a dollar amount of purchases among the plurality of categories and sub- categories, and so as to order the customer accounts of the plurality of customers respectively within the plurality of categories and sub-categories ... App. Br. 12-13. Appellants urge that "[b ]ecause the Office Action fails to address the claim element in its entirety, the current rejections are improper and should be reversed." Id. at 13 . We agree with Appellants that, in various instances, the Examiner's rejection paraphrases claim elements and fails to address the actual claim language. App. Br. 12. More generally, and regardless of whether the claims are interpreted as requiring a single ordering step or plural organizing and ordering steps, the basis of the rejection simply is unreasonably difficult to decipher. For example, claim 59 recites the following limitation: placing the customer purchase information, with associated customer accounts, into an order based on the customer purchase information for the plurality of customers, the customer purchase information comprising a dollar amount of purchases among the plurality of categories and sub-categories, 8 Appeal2017-001664 Application 11/282,644 and so as to order the customer accounts of the plurality of customers respectively within the plurality of categories and sub-categories, generating a plurality of customer scores for the plurality of customers based on the order of the customer accounts within each of the at least one of the plurality of categories and sub- categories. App. Br. 30-31 (Claim App.) (emphasis added). In this regard, the Examiner finds that Herz generally teaches most of the limitations of independent claim 59 including hierarchical organization trees. Final Act. 2--4, 8-11. The Examiner finds that "Herz does not explicitly disclose that the hierarchical organization tree or order is based on the scores associated with different vendors/merchants," but that Herz does disclose "that ['type of business'] is an attribute that can be tracked and sorted upon." Id. at 11 (citing Herz ,r,r 97, 137). According to the Examiner, "Herz further discloses that scores can be associated with the various attributes that are tracked" (id. (citing Herz ,r 142)), "a score for user transactions [is associated] with a vendor" (id. (citing Herz ,r,r 39--46)), and "there are different scores from each of the different vendors" (id.). The Examiner then concludes that it is "obvious" (as opposed to finding that Herz actually teaches) "that the clustering of Herz's Figure 2 (Figure 2) which is performed on different weighted attributes based on user profile and offers can utilize the different vendor information on user purchase history which is available in Herz." Id. The Examiner reasons that "[o]ne would [have been] motivated to do this in order to better take advantage of a readily available parameter (store or store type) that is often used for organizing offers that are made to users." Id. 9 Appeal2017-001664 Application 11/282,644 But the rejection subsequently states on the next page, Herz does not explicitly disclose ordering the customer's profile/interests and basing a score on that order. However, Herz renders obvious, "generating a customer score based on the order of the customer accounts [] " Herz discloses placing the customer into a hierarchy of order with categories and subcategories (Fig. 2; [6, 154] and citations above). Also, note that Herz discloses that a variety of attributes can be scores ([73]) and also that ranking can be performed ([14] towards the end of this paragraph). And, Herz further discloses that a score is assigned to the customer account based on the order of the customer account ([164], "It is only necessary to adopt the convention that a cluster's profile is the average of the offer profiles of all the offers in the cluster; that is, to determine the cluster's value for a given attribute, take the mean value of that attribute across all the offers in the cluster [ ... ]"). Hence, Herz discloses that users profiles can be placed into an order and that scores can then be provided to the customer profile. Additionally, as noted above, Herz discloses ordering customer profiles and also scoring of customer profiles. Id. at 12-13 (emphasis added). The rejection goes on to explain Herz does not explicitly disclose a customer score for the target customer based on the order of the customer accounts. However, Herz renders obvious generating a customer score based on the order of the customer accounts. Herz discloses placing the customer into a hierarchy of order with categories and subcategories .... Hence, Herz discloses that users profiles can be placed into an order and that scores can then be provided to the customer profile. Additionally, as noted above, Herz discloses ordering customer profiles and also scoring of customer profiles. Herz further discloses clustering and targeting groups of users. Id. at 14. 10 Appeal2017-001664 Application 11/282,644 It is not reasonably clear whether the Examiner finds that Herz discloses the claimed ordering, the claimed scoring, both of the claimed ordering and scoring, or merely renders obvious ordering and scoring, as claimed. Furthermore, the Examiner then relies on Lazarus----either in addition to or instead of Herz-for the "organizing" limitation. Final Act. 14--15. The Examiner concludes that the combination of Herz and Lazarus renders this limitation obvious because, inter alia, "it would have been obvious to one having ordinary skill in the art at the time the invention was made that Lazarus assigning a score or rank to customer data that is ordered can be added to Herz' s customer score and customer data ordering." Id. at 15. In summary, the Examiner has not established a prima facie showing of obviousness because the bases for the rejection cannot be ascertained with reasonable certainty. Accordingly, we do not sustain the obviousness rejection of claims 59---61, 63-80, and 92-98. 3 NEW PATENT-INELIGIBLE-SUBJECT-MATTER REJECTION Background Claims 59---61, 63-80, and 92-98 previously were rejected under 35 U.S.C. § 101 as being directed to patent-ineligible subject matter- "applying rules to form an offer for a target customer." See Non-Final Action 7 (mailed Oct. 5, 2015). In response, Appellants amended the 3 We reach no conclusions on whether the cited art, in fact, teaches or suggests the ordering and scoring limitations, as claimed. 11 Appeal2017-001664 Application 11/282,644 claims, adding the following language as the final limitation of claim 59, for example: wherein the step of orgamzmg the customer purchase information within the organizational structure further comprises using a link file to direct the processor, the link file comprising a plurality of instructions directing the processor to place the customer purchase information in a predetermined location in the organizational structure, the plurality of instructions comprising wordstring data corresponding to the specific merchant names. Amendment 13 (filed January 5, 2016) (emphasis omitted). In conjunction with amending the claims, Appellants also argued that the Examiner has not established that the claims only recite an abstract idea (id. at 12) and that the claims recite significantly more than an abstract idea (id. at 12-14). In the latest examination, the Examiner then withdrew the rejection under 35 U.S.C. § 101 without comment. Final Act. 1--47 (addressing only the obviousness rejection). For the reasons set forth below, we conclude that at least independent claims 59, 75, and 96, even as amended, are directed to patent-ineligible subject matter. We, therefore, exercise our discretionary authority under 37 C.F.R. § 4I.50(b) and reinstate the 35 U.S.C. § 101 rejection with respect to these claims. Principles of Law The Supreme Court has set forth an analytical "framework for distinguishing patents that claim laws of nature, natural phenomena, and abstract ideas from those that claim patent-eligible applications of those concepts." Alice Corp. v. CLS Banklnt'l, 134 S. Ct. 2347, 2355 (2014) (citing Mayo Collaborative Servs. v. Prometheus Labs., Inc., 566 U.S. 66, 12 Appeal2017-001664 Application 11/282,644 71-73 (2012)). In the first step of the analysis, we determine whether the claims at issue are "directed to" a judicial exception, such as an abstract idea. Alice, 134 S. Ct. at 2355. If not, the inquiry ends. Thales Visionix Inc. v. U.S., 850 F.3d 1343, 1346 (Fed. Cir. 2017); Enfzsh, LLC v. Microsoft Corp., 822 F.3d 1327, 1339 (Fed. Cir. 2016). If the claims are determined to be directed to an abstract idea, then we consider under step two whether the claims contain an "inventive concept" sufficient to "transform the nature of the claim into a patent-eligible application." Alice, 134 S. Ct. at 2355 ( citation omitted). In considering whether a claim is directed to an abstract idea, we acknowledge, as did the Supreme Court, that "all inventions at some level embody, use, reflect, rest upon, or apply laws of nature, natural phenomena, or abstract ideas." Mayo, 566 U.S. at 71. We therefore look to whether the claims focus on a specific means or method that improves the relevant technology or are instead directed to a result or effect that itself is the abstract idea and merely invoke generic processes and machinery. See Enfish, 822 F.3d at 1336. If the claims are directed to an abstract idea, we then must consider whether the claim contains an element or a combination of elements that is sufficient to transform the nature of the claim into a patent-eligible application. Ultramercial, Inc. v. Hulu LLC, 772 F.3d 709, 714 (Fed. Cir. 2014); Alice, 134 S. Ct. at 2355. In applying step two of the Alice analysis, we must "determine whether the claims do significantly more than simply describe [the] abstract method" and thus transform the abstract idea into patentable subject matter. []We look to see whether there are any "additional features" in the claims that constitute an "inventive concept," thereby rendering the claims eligible for 13 Appeal2017-001664 Application 11/282,644 patenting even if they are directed to an abstract idea. []Those "additional features" must be more than "well-understood, routine, conventional activity." Intellectual Ventures I LLC v. Erie Indem. Co., 850 F.3d 1315, 1328 (Fed. Cir. 2017) ( citations omitted). Claims that "merely require generic computer implementation[] fail to transform [an] abstract idea into a patent-eligible invention." Alice, 134 S. Ct. at 2357. Analysis-Step One of the Alice Framework Claim 59 recites steps of receiving customer purchase information, creating a hierarchical organizational structure of categories, organizing customer purchase information within the hierarchical structure, generating customer scores based on the order, creating a customer preference based on the scores, and forming an off er for the target customer based on the customer preference. Regardless of whether claim 59 is interpreted broadly as reciting only one organization step or more narrowly as reciting distinct organization and ordering steps, the steps of claim 59 reasonably may be characterized as being directed to a patent-ineligible concept relating to organizing or analyzing information in a way that can be performed mentally or that is analogous to human mental work. See, e.g., Versata Development Group, Inc. v. SAP America, Inc., 793 F.3d 1306, 1331 (Fed. Cir. 2015) ( wherein our reviewing court held that the "concept of organizational hierarchies for products and customers is abstract because it represents a disembodied concept, a basic building block of human ingenuity-it is little more than determining a price, essentially a method of calculating"); see also MPEP § 2106.04(a)(2) Part (III) (discussing other cases in which claims 14 Appeal2017-001664 Application 11/282,644 were determined be directed to patent-ineligible subject matter because the claimed subject matter constitutes "an idea of itself'). Analysis-Step Two of the Alice Framework Appellants' addition of the final "link file" limitation to the independent claims, considered alone and in combination with the other claim limitations, is insufficient to transform the nature of the claim into patent-eligible subject matter. Nothing in Appellants' Specification reasonably indicates that Appellants' link files are inventive or are used in a novel manner that improves the operation of the processor carrying out the above-discussed abstract idea. Appellants' Specification instead indicates that the link files were employed in their well-understood, routine, and conventional manner. See, e.g., Spec. 14--15 (indicating that the processor merely searches, compares, and matches information in a predetermined manner, as programmed). Restated, Appellants' Specification indicates that Appellants' inventive concept relates to the abstract idea, itself, and this abstract idea merely is made more efficient through automation with a conventional processor. Nothing in Appellants' Specification reasonably indicates that an inventive concept entails improving the operation of the processor. Conclusion Pursuant to our discretionary authority under 37 C.F.R. § 41.50(b), we enter a new ground of rejection under 35 U.S.C. § 101 for independent claim 59, as well as independent claims 7 5 and 96, which recite similar claim scope. Although we decline to reject dependent claims 60, 61, 63-74, 76-80, 92-95, 97, and 98 pursuant to our discretionary authority under 37 C.F.R. 15 Appeal2017-001664 Application 11/282,644 § 41. 50(b ), we emphasize that our decision does not mean that the remaining claims are necessarily patentable. Rather, we merely leave the patentability determination of these claims to the Examiner. See MPEP § 1213.02. DECISION We reverse the obviousness rejection of claims 59---61, 63-80, and 92- 98 under 35 U.S.C. § 103(a). Pursuant to our discretionary authority under 37 C.F.R. § 41.50(b), we newly reject claims 59---61, 63-80, and 92-98 under 35 U.S.C. § 112, ,r 2, as being indefinite. Pursuant to our discretionary authority under 37 C.F.R. § 4I.50(b), we newly reject claims 59, 75, and 96 under 35 U.S.C. § 101 as being directed to patent-ineligible subject matter. Rule 41.50(b) provides that "[a] new ground of rejection pursuant to this paragraph shall not be considered final for judicial review." Rule 4I.50(b) also provides the following: When the Board enters such a non-final decision, the appellant, within two months from the date of the decision, must exercise one of the following two options with respect to the new ground of rejection to avoid termination of the appeal as to the rejected claims: (1) Reopen prosecution. Submit an appropriate amendment of the claims so rejected or new Evidence relating to the claims so rejected, or both, and have the matter reconsidered by the examiner, in which event the prosecution will be remanded to the examiner. The new ground of rejection is binding upon the examiner unless an amendment or new Evidence not previously of Record is made which, in the opinion of the examiner, overcomes the new ground of rejection 16 Appeal2017-001664 Application 11/282,644 designated in the decision. Should the examiner reject the claims, appellant may again appeal to the Board pursuant to this subpart. (2) Request rehearing. Request that the proceeding be reheard under§ 41.52 by the Board upon the same Record. The request for rehearing must address any new ground of rejection and state with particularity the points believed to have been misapprehended or overlooked in entering the new ground of rejection and also state all other grounds upon which rehearing is sought. Further guidance on responding to a new ground of rejection can be found in the Manual of Patent Examining Procedure (MPEP) § 1214.01 (9th Ed., Rev. 9, Nov. 2015). REVERSED 37 C.F.R. § 4I.50(b) 17 Copy with citationCopy as parenthetical citation