Mara Enterprises LimitedDownload PDFPatent Trials and Appeals BoardSep 21, 20212021002358 (P.T.A.B. Sep. 21, 2021) Copy Citation UNITED STATES PATENT AND TRADEMARK OFFICE UNITED STATES DEPARTMENT OF COMMERCE United States Patent and Trademark Office Address: COMMISSIONER FOR PATENTS P.O. Box 1450 Alexandria, Virginia 22313-1450 www.uspto.gov APPLICATION NO. FILING DATE FIRST NAMED INVENTOR ATTORNEY DOCKET NO. CONFIRMATION NO. 15/255,334 09/02/2016 Malcolm Colin Payne LGME-P0001-04-US 7506 27268 7590 09/21/2021 FAEGRE DRINKER BIDDLE & REATH LLP 300 NORTH MERIDIAN STREET SUITE 2500 INDIANAPOLIS, IN 46204 EXAMINER BUMGARNER, MELBA N ART UNIT PAPER NUMBER 3711 NOTIFICATION DATE DELIVERY MODE 09/21/2021 ELECTRONIC Please find below and/or attached an Office communication concerning this application or proceeding. The time period for reply, if any, is set in the attached communication. Notice of the Office communication was sent electronically on above-indicated "Notification Date" to the following e-mail address(es): inteas@faegredrinker.com PTOL-90A (Rev. 04/07) UNITED STATES PATENT AND TRADEMARK OFFICE ____________ BEFORE THE PATENT TRIAL AND APPEAL BOARD ____________ Ex parte MALCOLM COLIN PAYNE ____________ Appeal 2021-002358 Application 15/255,334 Technology Center 3700 ____________ Before EDWARD A. BROWN, CHARLES N. GREENHUT, and MICHAEL L. WOODS, Administrative Patent Judges. BROWN, Administrative Patent Judge. DECISION ON APPEAL STATEMENT OF THE CASE Appellant1 seeks review under 35 U.S.C. § 134(a) of the Examiner’s decision rejecting claims 1, 2, and 7–21. We have jurisdiction under 35 U.S.C. § 6(b). We AFFIRM. 1 We use the word “Appellant” to refer to “applicant” as defined in 37 C.F.R. § 1.42. Appellant identifies Mara Enterprises Limited as the real party in interest. Appeal Br. 3. Appeal 2021-002358 Application 15/255,334 2 CLAIMED SUBJECT MATTER “The present disclosure relates generally to a method of entertainment. The present disclosure relates more specifically to a card game having a novel payout structure.” Spec. ¶ 2. Claims 1, 10, and 15 are independent. Claim 1 illustrates the claimed subject matter on appeal and is reproduced below with reference letters added in brackets. 1. A method of playing a card game including the steps of: [A] defining a set of qualifying card combinations; [B] defining a payoff ratio for each of the qualifying card combinations; [C] accepting a wager of a first value; [D] providing a dealer a set of cards; [E] providing a player a set of cards; [F] accepting an ante from the player; [G] providing the player an additional card in return for the ante; [H] determining a dealer’s qualifying card combination of greatest value is less than a player’s greatest qualifying combination; and [I] paying the player the amount given by multiplying the first value by the payoff ratio associated with the player’s greatest qualifying combination and paying the player an amount given by multiplying the first value and the payoff ratio associated with any second qualifying combination, when present, in the player’s hand when the relative value of the second qualifying combination is less than the dealer’s qualifying combination. Appeal Br. 10 (Claims App.). Appeal 2021-002358 Application 15/255,334 3 REJECTIONS Claims 1, 2, and 7–21 are rejected under 35 U.S.C. § 101 as being directed to patent-ineligible subject matter. Final Act. 2. Claims 1, 2, and 7–21 are rejected on the ground of non-statutory double patenting as being unpatentable over claims 1–7 of Payne (US 8,752,839 B2, issued June 17, 2014). Final Act. 7. ANALYSIS Patent-Ineligible Subject Matter An invention is patent-eligible if it claims a “new and useful process, machine, manufacture, or composition of matter.” 35 U.S.C. § 101. However, the 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. E.g., Alice Corp. v. CLS Bank Int’l, 573 U.S. 208, 216 (2014). In determining whether a claim falls within an excluded category, we are guided by the Supreme Court’s two-step framework, described in Mayo and Alice. Id. at 217–18 (citing Mayo Collaborative Servs. v. Prometheus Labs., Inc., 566 U.S. 66, 75–77 (2012)). In accordance with that framework, we first determine what concept the claim is “directed to.” See Alice, 573 U.S. at 219. Concepts that have been determined to be abstract ideas, and thus patent-ineligible, include certain methods of organizing human activity, such as fundamental economic practices (Alice, 573 U.S. at 219–20; Bilski v. Kappos, 561 U.S. 593 (2010)); mathematical formulas (Parker v. Flook, 437 Appeal 2021-002358 Application 15/255,334 4 U.S. 584, 594–95 (1978)); and mental processes (Gottschalk v. Benson, 409 U.S. 63, 69 (1972)). If the claim is “directed to” an abstract idea, we turn to the second step 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 (quotation marks 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. (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. On January 7, 2019, the PTO issued revised guidance on the application of § 101. See 2019 Revised Patent Subject Matter Eligibility Guidance, 84 Fed. Reg. 50 (hereinafter “Guidance”). The Guidance includes Steps 2A and 2B. Under Step 2A, Prong One, of the Guidance, we first look to whether the claim recites any judicial exceptions, including certain groupings of abstract ideas (i.e., mathematical concepts, certain methods of organizing human activities such as a fundamental economic practice, or mental processes). See id. at 54. If a claim recites a judicial exception, we proceed to Step 2A, Prong Two, and determine whether the claim recites additional elements that integrate the judicial exception into a practical application. See id.; see also MPEP § 2106.05(a)–(c), (e)–(h). Only if a claim both recites a judicial exception and fails to integrate the judicial exception into a practical application, do we proceed to Step 2B Appeal 2021-002358 Application 15/255,334 5 of the Guidance. At this step, we determine whether the claim adds a specific limitation beyond the judicial exception that is not “well- understood, routine, conventional” in the field (see MPEP § 2106.05(d)); or simply appends well-understood, routine, conventional activities previously known to the industry, specified at a high level of generality, to the judicial exception. See 84 Fed. Reg. 56. Claim Grouping Appellant argues claims 1, 2, and 7–21 as a group under a single heading. Appeal Br. 5–9. We select claim 1 as representative to decide the appeal as to the ground of rejection, and claims 2 and 7–21 stand or fall with claim 1. See 37 C.F.R. § 41.37(c)(1)(iv).2 Step One — Statutory Category Claims 1, 2, and 7–21 are directed to a method of playing a card game. Appeal Br. 10–13 (Claims App.). Accordingly, the claims are directed to one of the statutory classes of subject matter eligible for patenting under 35 U.S.C. § 101 (i.e., a process). 2 37 C.F.R. § 41.37(c)(1)(iv) states, “[w]hen multiple claims subject to the same ground of rejection are argued as a group or subgroup by appellant, the Board may select a single claim from the group or subgroup and may decide the appeal as to the ground of rejection with respect to the group or subgroup on the basis of the selected claim alone. 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. Under each heading identifying the ground of rejection being contested, any claim(s) argued separately or as a subgroup shall be argued under a separate subheading that identifies the claim(s) by number.” (Emphasis added). Appeal 2021-002358 Application 15/255,334 6 Step 2A, Prong One — Recitation of Judicial Exception The Examiner determines that claims 1, 2, and 7–21 recite an abstract idea. Final Act. 3–4. More specifically, the Examiner determines that the claims recite the following method steps: “defining a set of qualifying card combinations and a payoff [ratio] for each qualifying card combination[], accepting [a] wager, dealing cards to [a] dealer and [a] player, determining if the dealer has qualifying card combination, determining if the player/dealer has qualifying card combination, dealer/player exchanging cards, comparing the greatest qualifying card combinations of dealer and player . . . , [and] paying a restricted number of two qualifying combinations if the player is [the] winner according to a payoff ratio.” Id. at 3. The Examiner determines that these method steps are abstract rules akin to activity that falls within two sub-groupings of the certain methods of organizing human activity grouping of abstract ideas; namely, “fundamental economic principles or practices such as hedging and mitigating risk,” and “managing interaction[s] between people as in following rules or instructions.” Id. The Examiner states that “these [method] steps can also be treated as managing a game of bingo . . . or allowing players to collect/exchange goods.” Id. (citing Planet Bingo, LLC v. VKGS LLC, 576 F. App’x 1005 (Fed. Cir. 2014)). The Examiner also determines that these method steps are “effectively a method of exchanging and resolving financial obligations based on rules of playing,” and thus, the method is akin to the “method of exchanging financial obligations” at issue in Alice. Id. at 4. In contrast, Appellant contends that claim 1 is not “directed to” a judicial exception because it recites a specific payout structure based on qualifying card combinations. Appeal Br. 6. According to Appellant, the Appeal 2021-002358 Application 15/255,334 7 Examiner fails to consider the features of steps H and I of claim 1. Id. Appellant submits that these features incorporate no fundamental economic principles, but instead “relate to comparing qualifying combinations of cards and reciting a specific payout structure based on the qualifying combinations.” Id. at 7. Appellant asserts, “reciting specific payout structures based on different qualifying combinations is not abstract, but rather concrete due to the specific payout structure being claimed.” Id. Appellant’s contentions are unpersuasive. As explained in the Guidance, in Prong One of Step 2A, “examiners should evaluate whether the claim recites a judicial exception,” e.g., an abstract idea. See 84 Fed. Reg. 54 (emphasis added). If the claim is determined to recite a judicial exception, it is then determined in Prong Two of Step 2A whether the claim is “directed to” the recited exception. See id. In other words, the “directed to” inquiry is part of the Prong Two, not Prong One, analysis. Claim 1 recites a method of playing a card game that involves wagering. Step A of the method recites “defining a set of qualifying card combinations.” The Specification describes, “[a] playing combination, also called a ‘qualifying hand’ is . . . defined as a hand having a minimum poker combination of Ace-King.” Spec. ¶ 14. The Specification also describes that “[f]ully developed combinations are any combination included in the group of royal flush, straight flush, four of a kind, full house, flush, straight, three of a kind, two pairs, one pair, and Ace-King.” Id. ¶ 25. Step B recites “defining a payoff ratio for each of the qualifying card combinations.” The Specification describes the payoff ratio for the fully developed combinations of cards. Id. Steps A and B describe rules for playing the card game Appeal 2021-002358 Application 15/255,334 8 involving defining both qualifying card combinations and their associated payoff ratios. Step C recites “accepting a wager of a first value.” This step describes another rule for playing the card game involving an act to be performed by a player. Step D recites “providing a dealer a set of cards” and step E recites “providing a player a set of cards.” These steps describe additional rules for playing the card game involving acts to be performed by the dealer (i.e., dealing cards to both a player and himself). Step F recites “accepting an ante from the player” and step G recites “providing the player an additional card in return for the ante.” These steps describe additional rules for playing the card game involving acts to be performed by the player and the dealer. Step H recites “determining a dealer’s qualifying card combination of greatest value is less than a player’s greatest qualifying combination.” This step involves comparing (a) a dealer’s qualifying card combination of greatest value to (b) a player’s qualifying combination of greatest value and determining that the value of (a) is less than that of (b). This determination is based on the payoff ratio for the qualifying card combinations defined in step B. Step H describes another rule for playing the card game. Lastly, step I recites: paying the player the amount given by multiplying the first value by the payoff ratio associated with the player’s greatest qualifying combination and paying the player an amount given by multiplying the first value and the payoff ratio associated with any second qualifying combination, when present, in the player’s hand when the relative value of the second qualifying combination is less than the dealer’s qualifying combination. Appeal 2021-002358 Application 15/255,334 9 Step I involves paying the player an amount that is given by multiplying the first value of the wager (step C) by the payoff ratio for the player’s greatest qualifying combination (step B), and paying the player another amount that is given by multiplying the first value of the wager by the payoff ratio for any second qualifying combination, when present, when the relative value of the second qualifying combination is less than the dealer’s qualifying combination. Step I describes another rule for playing the card game. Accordingly, claim 1 recites a method of playing a card game by following rules using sets of cards. According to the Guidance, this is an example of “managing personal behavior or relationships or interactions between people” (i.e., “following rules or instructions”) that falls within the certain methods of organizing human activity grouping of abstract ideas. See 84 Fed. Reg. 52 n. 13 (citing In re Smith, 815 F.3d 816, 818 (Fed. Cir. 2016)). In Smith (cited at Final Act. 5), the claimed subject matter was directed to “[a] method of conducting a wagering game” using a deck of playing cards. Id. at 817–18. The court concluded that the claims were directed to rules for conducting a wagering game, and compared to the method of exchanging financial obligations found to be drawn to an abstract idea in Alice. Id. at 819. Additionally, the court found that the claimed method of conducting a wagering game was similar to the concept determined to be patent-ineligible in Planet Bingo, 576 F. App’x at 1008, in which the court determined that the claims recite methods for “managing a game of Bingo” “similar to the kind of ‘organizing human activity’ at issue in Alice.” Id. The court concluded in Smith that the claims “describing a set of rules for a game, are drawn to an abstract idea.” Id. Appeal 2021-002358 Application 15/255,334 10 Similarly, in In re Marco Guldenaar Holding B.V., 911 F.3d 1157, 1160 (Fed. Cir. 2018), the court determined that the claimed “method of playing a dice game” was directed to a method of conducting a wagering game having strong similarities to the ineligible claims in Smith. The court in Guldenaar concluded that the claims were drawn to “the abstract idea of ‘rules for playing a dice game.’” Id. at 1160–61. Claim 1 is closely similar to the claims found to recite abstract ideas in Smith and Guldenaar in that claim 1 is directed to conducting a wagering game by following a set of rules using cards. We agree that Smith supports the Examiner’s determination that claim 1 recites the abstract idea of a set of rules for playing a card game. Final Act. 5; See 84 Fed. Reg. 52; MPEP § 2106.04(a)(2)(II)(C). Guldenaar likewise supports the Examiner’s position.3 We need not address the Examiner’s alternative determination that the claim recites the additional abstract idea of “fundamental economic 3 At least steps A, B, and H of claim 1 recite acts that can be performed through human observation, evaluation, or judgment in the human mind or on paper. Concepts that can be performed in the human mind fall within the mental processes grouping of abstract ideas. See 84 Fed. Reg. 52. Step I involves performing at least one mathematical calculation to determine the amount paid to the player. According to the Guidance, mathematical calculations fall within the mathematical concepts grouping of abstract ideas. See id. Thus, steps A, B, H, and I each recite a second judicial exception. The Federal Circuit has determined that claims can recite more than one judicial exception. See Genetic Techs. Ltd. v. Merial LLC, 818 F.3d 1369, 1374–75, 1378 (Fed. Cir. 2016) (Claim to a method for analyzing DNA recited both a law of nature and a mental process.); Planet Bingo, 576 F. App’x at 1007–08 (Claims to methods and systems of managing a game of bingo recited mental processes and methods of organizing human activity.) Appeal 2021-002358 Application 15/255,334 11 principles or practices,” which falls within the “certain methods of organizing human activity” grouping of abstract ideas, and Appellant’s argument as to why claim 1 does not recite any “fundamental economic principles.” Final Act. 2; Appeal Br. 7. We note, however, Appellant’s assertion that “the contention these features are not fundamental in nature is evident by the lack of prior art disclosures and, therefore, 35 U.S.C. §§ 102, 103 rejections related to these features.” Appeal Br. 7 (emphasis added). We understand that “these features” pertain to steps H and I of claim 1. This contention is unpersuasive because the patent eligibility analysis is not an evaluation of novelty or non-obviousness. “[A] claim for a new abstract idea is still an abstract idea.” Synopsys, Inc. v. Mentor Graphics, Corp., 839 F.3d 1138, 1151 (Fed. Cir. 2016). Even assuming that the claimed method may be novel, “[t]he ‘novelty’ of . . . the . . . [claim] itself, is of no relevance in determining whether the subject matter of a claim falls within the § 101 categories of possibly patentable subject matter.” Diamond v. Diehr, 450 U.S. 175, 188–89 (1981). A novel and non-obvious claim directed to a purely abstract idea is, nonetheless, patent-ineligible. See Mayo, 566 U.S. at 90–91. As we agree with the Examiner that claim 1 recites an abstract idea, we proceed to Prong Two to determine whether the claim is “directed to” the judicial exception. Step 2A, Prong Two — Practical Application We next determine whether the recited judicial exception is integrated into a practical application of that exception by: (a) identifying whether there are any additional elements recited in the claim beyond the judicial exception(s); and (b) evaluating those additional elements individually and Appeal 2021-002358 Application 15/255,334 12 in combination to determine whether they integrate the exception into a practical application. This evaluation requires an additional element or a combination of additional elements in the claim to apply, rely on, or use the judicial exception in a manner that imposes a meaningful limit on the judicial exception, such that the claim is more than a drafting effort designed to monopolize the exception. When the judicial exception is integrated into a practical application of the exception, the claim is not “directed to” the judicial exception. See 84 Fed. Reg. 54. The Examiner finds that claim 1 recites the additional elements of “a plurality of game cards.” Final Act. 4. The Examiner determines that these additional elements do not integrate the judicial exception into a practical application because: (1) the recited method steps “are mere instructions to implement an abstract idea on a game surface using game cards as a tool to perform [the] abstract idea” (citing MPEP § 2106.05(f)); (2) the recited method steps generally link the use of the abstract idea to a particular technological environment or field of use (i.e., the field of board games) (citing MPEP § 2106.05(h)); and (3) “[t]here are no improvements suggested in the functioning of game cards technology and there is no transformation or reduction of a different state or thing in applying the exception.” Id. In the Appeal Brief, Appellant does not address the Examiner’s stated reasons (1)–(3). Thus, Appellant does not apprise us of error in the Examiner’s determination that claim 1 fails to integrate the judicial exception into a practical application. We accordingly proceed to Step 2B to determine whether claim 1 recites an “inventive concept.” Appeal 2021-002358 Application 15/255,334 13 Step 2B — Inventive Concept Step 2B involves determining whether the additional elements provide “significantly more” than the judicial exception, i.e., an “inventive concept.” See 84 Fed. Reg. 56. This evaluation determines whether the additional element, or combination of elements, “[a]dds a specific limitation or combination of limitations that are not well-understood, routine, conventional activity in the field, which is indicative that an inventive concept may be present,” or “simply appends well-understood, routine, conventional activities previously known to the industry.” Id. For Step 2B, the Examiner determines that the claims require a plurality of cards (“additional elements”) as is common in the field of card games. Final Act. 5. The Examiner states, “[t]he steps of [the] claimed method, while arguably reciting a number of physical steps[,] are viewed here as an attempt to claim a set of abstract ideas/rules for playing a card game.” Id. The Examiner determines that the additional elements can be categorized as well-understood, routine, and conventional, are generic, and do not meaningfully limit the abstract idea such that the claim amounts to significantly more than the abstract idea itself. Id. In contrast, Appellant contends that the claims recite significantly more than merely an abstract idea because they recite a practical application including a combination of non-routine and unconventional features. Appeal Br. 7. Appellant asserts that Bascom Glob. Internet Servs., Inc. v. AT&T Mobility LLC, 827 F.3d 1341 (Fed. Cir. 2016), supports this contention. Id. Appellant submits that the court in Bascom found that although the claims were directed to the abstract idea of filtering content on the Internet, the claims included significantly more than the abstract idea. Appeal 2021-002358 Application 15/255,334 14 Id. According to Appellant, the court reasoned that although each of the individual claim elements were conventional and known in the art, the combination of elements differed from the routine and conventional and, therefore, did not preempt the use of the abstract idea of filtering content on the Internet. Id. at 7–8 (citing Bascom, 827 F.3d at 1352). Appellant contends that, similar to Bascom, claim 1 recites features that differ from the routine and conventional, specifically, limitations H and I. Id. at 8. Appellant asserts: More specifically, for claim[] 1 . . . both the payoff ratio associated with the player’s greatest qualifying combination and the payoff ratio associated with any second qualifying combination, when present, are paid out. Paying out a second qualifying combination is neither routine nor conventional, which is apparent by the lack of prior art disclosures. Id. (emphasis added). Appellant’s contentions are unpersuasive. As acknowledged in both Smith and Guldenaar, “‘[a]bstract ideas, including a set of rules for a game, may be patent-eligible if [they] contain an ‘inventive concept’ sufficient to ‘transform’ the claimed abstract idea into a patent-eligible application.’” See Smith, 815 F.3d at 819; Guldenaar, 911 F.3d at 1161. However, claim 1 fails to meet this requirement. In BASCOM, the court determined that an inventive concept may be found in the non-conventional and non-generic arrangement of components that are individually well-known and conventional. See BASCOM, 827 F.3d at 1350. The arrangement involved the placement of a filtering element for filtering Internet content at a specific location in a system. It is not apparent to us how claim 1, which recites a card game using sets of cards, is similar to the claims at issue in BASCOM. Thus, we are not persuaded that BASCOM supports Appellant’s position. Appeal 2021-002358 Application 15/255,334 15 Appellant relies on steps H and I as providing significantly more. However, these steps recite an abstract idea and “[i]t has been clear since Alice that a claimed invention’s use of the ineligible concept to which it is directed cannot supply the inventive concept that renders the invention ‘significantly more’ than that ineligible concept.” BSG Tech LLC v. BuySeasons, Inc., 899 F.3d 1281, 1290 (Fed. Cir. 2018). Step I involves paying the player another amount that is given by multiplying the first value of the wager by the payoff ratio for any second qualifying combination, when present, and when the relative value of the second qualifying combination is less than the dealer’s qualifying combination. We construe paying out of “another amount” as a conditional limitation, because it occurs if and only if: (1) a second qualifying combination is present, and (2) the relative value of the second qualifying combination is less than the dealer’s qualifying combination. In cases where both conditions are not met, claim 1 requires only paying the player the amount given by the above-discussed mathematical calculation. Even for the case where both conditions are met, it is not apparent, and Appellant does not explain, why “paying out a second qualifying combination” amounts to unconventional activity, rather than merely involving substantially repeating the same calculation. We are unpersuaded that “the claims recite specific rules and a specific payout structure that have not been previously disclosed.” Reply Br. 2. We agree with the Examiner that the claimed method uses generic elements (playing cards) as a tool to perform the abstract idea, which is insufficient to transform the claim into a patent- eligible application of the abstract idea. Alice, 573 U.S. at 212. Appeal 2021-002358 Application 15/255,334 16 Thus, we sustain the rejection of claim 1 under 35 U.S.C. § 101. Claims 2 and 7–21 fall with claim 1. Non-Statutory Double Patenting Appellant does not address the rejection of claims 1, 2, and 7–21 on the ground of non-statutory double patenting over claims 1–7 of Payne. Thus, we sustain this rejection. CONCLUSION We affirm the rejections of claims 1, 2, and 7–21. DECISION SUMMARY In summary: Claim(s) Rejected 35 U.S.C. § Reference(s)/Basis Affirmed Reversed 1, 2, 7–21 Eligibility 1, 2, 7–21 1, 2, 7–21 101 Nonstatutory Double Patenting US 8,752,839 1, 2, 7–21 Overall Outcome 1, 2, 7–21 TIME PERIOD FOR 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). See 37 C.F.R. § 1.136(a)(1)(iv). AFFIRMED Copy with citationCopy as parenthetical citation