METROPOLITAN LIFE INSURANCE CO.Download PDFPatent Trials and Appeals BoardDec 15, 20212021002579 (P.T.A.B. Dec. 15, 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. 14/092,618 11/27/2013 Terrance Luciani 107574-MET_000025.1US 7652 169807 7590 12/15/2021 Metlife c/o Polsinelli PC 2049 Century Park East, Suite 2900 Los Angeles, CA 90067 EXAMINER POE, KEVIN T ART UNIT PAPER NUMBER 3692 NOTIFICATION DATE DELIVERY MODE 12/15/2021 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): APDTeam@polsinelli.com MetIP@metlife.com patentdocketing@polsinelli.com PTOL-90A (Rev. 04/07) UNITED STATES PATENT AND TRADEMARK OFFICE ____________ BEFORE THE PATENT TRIAL AND APPEAL BOARD ____________ Ex parte TERRANCE LUCIANI ____________ Appeal 2021-002579 Application 14/092,618 Technology Center 3600 ____________ Before JOSEPH A. FISCHETTI, NINA L. MEDLOCK, and BRADLEY B. BAYAT, Administrative Patent Judges. MEDLOCK, Administrative Patent Judge. DECISION ON APPEAL STATEMENT OF THE CASE Appellant1 appeals under 35 U.S.C. § 134(a) from the Examiner’s final rejection of claims 1–4 and 6–9. We have jurisdiction under 35 U.S.C. § 6(b). We AFFIRM. 1 We use the term “Appellant” to refer to “applicant” as defined in 37 C.F.R. § 1.42. Our decision references Appellant’s Appeal Brief (“Appeal Br.,” filed December 2, 2020) and Reply Brief (“Reply Br.,” filed March 4, 2021), and the Examiner’s Answer (“Ans.,” mailed January 6, 2021) and Final Office Action (“Final Act.,” mailed July 24, 2020). Appellant identifies Metropolitan Life Ins. Co. as the real party in interest (Appeal Br. 2). Appeal 2021-002579 Application 14/092,618 2 CLAIMED INVENTION The Specification states, “[d]isclosed herein is a system and a computer implemented method for automatically adjusting a customer’s insurance product or insurance portfolio upon a triggering event according to predefined guidelines” (Spec. Abstr.). Claims 1 and 6 are the independent claims on appeal. Claim 1, reproduced below with bracketed notations added, is illustrative of the claimed subject matter: 1. A system to optimize insurance coverage in response to life events, the system comprising: a risk management server in communication with one or more customer devices and an external vehicle registration database over a network, the risk management server hosting a policy selection website, an actuarial database configured to store one or more actuarial tables and corresponding actuarial rules, and an insurance adjustment engine configured to adjust an insurance policy profile based on an event trigger, the risk management server having at least one processor configured to: [(a)] provide a graphical user interface through the policy selection website, the graphical user interface facilitating remote access to the one or more customer devices customers [sic] over the network; [(b)] receive, via the graphical user interface, identification information for at least one customer; [(c)] receive, via the graphical user interface, a selection input from the at least one customer corresponding to a request for an automatic insurance adjustment option; [(d)] generate, based on the selection input, a first automatic insurance adjustment option and a second automatic insurance option, wherein the first automatic insurance adjustment option is associated with a cost savings goal, and the second automatic insurance adjustment option is associated with a maximum coverage goal; Appeal 2021-002579 Application 14/092,618 3 [(e)] provide, via the graphical user interface, the first automatic insurance adjustment option and the second automatic insurance option to the at least one customer for display; [(f)] receive, via the graphical user interface, the selected option from one of the first automatic insurance adjustment option and the second automatic insurance adjustment option; [(g)] store the selected option for the at least one customer in a selection database; [(h)] store a plurality of insurance policy profiles in a policy database; [(i)] transmit an inquiry to the external vehicle registration database to scan for an event related to the at least one customer; [(j)] receive event data from the external vehicle registration database; [(k)] determine the event data indicates a vehicle purchase event for the at least one customer; [(l)] determine an optimal level of auto insurance coverage for the at least one customer based on actuarial rules for similarly situated vehicle owners coverage and the selected option stored in the selection database; [(m)] adjust an insurance policy profile associated with the at least one customer to add the new auto insurance policy based on the vehicle purchase event; [(n)] update the insurance policy profile associated with the at least customer in the policy database to include the new auto insurance policy; [(o)] generate a notification outlining terms of the new auto insurance policy; and [(p)] send the notification to the at least one customer to report the new auto insurance policy. REJECTION Claims 1–4 and 6–9 are rejected under 35 U.S.C. § 101 as directed to a judicial exception without significantly more. Appeal 2021-002579 Application 14/092,618 4 ANALYSIS Appellant argues the pending claims as a group (Appeal Br. 7–12). We select independent claim 1 as representative. The remaining claims stand or fall with claim 1. See 37 C.F.R. § 41.37(c)(1)(iv). Under 35 U.S.C. § 101, “[w]hoever 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.” 35 U.S.C. § 101. The Supreme Court, however, has long interpreted § 101 to include an implicit exception: “[l]aws of nature, natural phenomena, and abstract ideas” are not patentable. Alice Corp. v. CLS Bank Int’l, 573 U.S. 208, 216 (2014). The Supreme Court, in Alice, reiterated the two-step framework previously set forth 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 Corp., 573 U.S. at 217. The first step in that analysis is to “determine whether the claims at issue are directed to one of those patent-ineligible concepts.” Id. If the claims are not directed to a patent-ineligible concept, e.g., an abstract idea, the inquiry ends. Otherwise, the inquiry proceeds to the second step where the elements of the claims are considered “individually and ‘as an ordered combination’” to determine whether there are additional elements that “‘transform the nature of the claim’ into a patent-eligible application.” Id. (quoting Mayo, 566 U.S. at 79, 78). This is “a search for an ‘inventive concept’ — i.e., an element or combination of elements that is ‘sufficient to ensure that the Appeal 2021-002579 Application 14/092,618 5 patent in practice amounts to significantly more than a patent upon the [ineligible concept] itself.’” Id. at 217–18 (alteration in original). The U.S. Patent and Trademark Office (the “USPTO”) published revised guidance on January 7, 2019, for use by USPTO personnel in evaluating subject matter eligibility under 35 U.S.C. § 101. 2019 REVISED PATENT SUBJECT MATTER ELIGIBILITY GUIDANCE, 84 Fed. Reg. 50 (Jan. 7, 2019) (the “2019 Revised Guidance”).2 That guidance revised the USPTO’s examination procedure with respect to the first step of the Mayo/Alice framework by (1) “[p]roviding groupings of subject matter that [are] considered an abstract idea”; and (2) clarifying that a claim is not “directed to” a judicial exception if the judicial exception is integrated into a practical application of that exception. Id. at 50. The first step, as set forth in the 2019 Revised Guidance (i.e., Step 2A), is, thus, a two-prong test. In Step 2A, Prong One, we look to whether the claim recites a judicial exception, e.g., one of the following three groupings of abstract ideas: (1) mathematical concepts; (2) certain methods of organizing human activity, e.g., fundamental economic principles or practices, commercial or legal interactions; and (3) mental processes. 2019 Revised Guidance, 84 Fed. Reg. at 54. If so, we next determine, in Step 2A, Prong Two, whether the claim as a whole integrates the recited judicial exception into a practical application, i.e., whether the additional elements recited in the claim beyond the judicial exception, apply, rely on, or use the judicial exception in a manner that imposes a meaningful 2 The MANUAL OF PATENT EXAMINING PROCEDURE (“MPEP”) incorporates the revised guidance and subsequent updates at Section 2106 (9th ed. Rev. 10.2019, rev. June 2020). Appeal 2021-002579 Application 14/092,618 6 limit on the judicial exception, such that the claim is more than a drafting effort designed to monopolize the judicial exception. Id. at 54–55. Only if the claim (1) recites a judicial exception and (2) does not integrate that exception into a practical application do we conclude that the claim is “directed to” the judicial exception, e.g., an abstract idea. Id. If the claim is determined to be directed to a judicial exception under revised Step 2A, we next evaluate the additional elements, individually and in combination, in Step 2B, to determine whether they provide an inventive concept, i.e., whether the additional elements or combination of elements amounts to significantly more than the judicial exception itself; only then, is the claim patent eligible. 2019 Revised Guidance, 84 Fed. Reg. at 56. Here, in rejecting the pending claims under 35 U.S.C. § 101, the Examiner determined that independent claim 1 recites optimizing insurance coverage in response to life events, i.e., “an abstract idea of generating consolidated data [that] correspond[ ] to ‘Certain Methods of Organizing Human activity’ (commercial or legal interactions)” (Final Act. 3–6). The Examiner also determined that the recited abstract idea is not integrated into a practical application (id. at 6); that claim 1 does not include additional elements sufficient to amount to significantly more than the abstract idea itself (id.); and that independent claim 6 and dependent claims 2–4 and 7–9 are patent ineligible for substantially the same reasons (id. at 7). We are not persuaded, as an initial matter, by Appellant’s argument that the Examiner has failed to establish a prima facie case of patent ineligibility (Appeal Br. 8–9; see also Reply Br. 1–2). Appellant charges that the Examiner has failed “to demonstrate the claimed invention is directed to any abstract idea because [the Office Action] fails to identify any Appeal 2021-002579 Application 14/092,618 7 ‘specific limitation(s) in the claim under examination (individually or in combination) that the examiner believes recites an abstract idea’” (Appeal Br. 8). Appellant also maintains that the Office Action “fails to provide any specific analysis or sufficient notice to support its rejections of alleged ineligibility to enable an effective response, as required by the 2019 Revised Guidance” (id.). We disagree. The Examiner explained in the Final Office Action that claim 1 recites a system to optimize insurance coverage in response to life events; and the Examiner reproduced the claim language, explaining that “[t]hese limitations (with the exception of italicized limitations) describe an abstract idea of generating consolidated data and correspond[ ] to Certain Methods of Organizing Human Activity (commercial or legal interactions)” (Final Act. 4–5). The Examiner also directed Appellant’s attention to the Federal Circuit’s decision in Bancorp Servs., L.L.C v. Sun Life Assurance Co., 687 F.3d 1266, 1278 (Fed. Cir. 2012), explaining, in the Answer, that the present claims are directed toward optimizing insurance coverage and, thus, similar to the claims that the court determined in Bancorp are directed to an abstract idea (Ans. 4–6). The Federal Circuit, moreover, has observed repeatedly that “the prima facie case is merely a procedural device that enables an appropriate shift of the burden of production.” Hyatt v. Dudas, 492 F.3d 1365, 1369 (Fed. Cir. 2007) (citing In re Oetiker, 977 F.2d 1443, 1445 (Fed. Cir. 1992)). The court has, thus, held that the USPTO “satisfies its initial burden of production by ‘adequately explain[ing] the shortcomings it perceives so that the applicant is properly notified and able to respond.”’ In re Jung, 637 F.3d 1356, 1362 (Fed. Cir. 2011) (quoting Hyatt, 492 F.3d at 1369–70). Thus, Appeal 2021-002579 Application 14/092,618 8 what is required of the Office is that it sets forth the statutory basis of the rejection in a sufficiently articulate and informative manner as to meet the notice requirement of 35 U.S.C. § 132. Id.; see also Chester v. Miller, 906 F.2d 1574, 1578 (Fed. Cir. 1990) (“Section 132 is violated when a rejection is so uninformative that it prevents the applicant from recognizing and seeking to counter the grounds for rejection.”). Here, the Examiner did precisely what § 132 requires. And, in doing so, the Examiner established a prima facie case of patent ineligibility. Step One of the Mayo/Alice Framework (2019 Revised Guidance, Step 2A) We also are not persuaded that the Examiner erred in determining that claim 1 is directed to an abstract idea. The Federal Circuit has explained that “the ‘directed to’ inquiry applies a stage-one filter to claims, considered in light of the specification, based on whether ‘their character as a whole is directed to excluded subject matter.’” Enfish, LLC v. Microsoft Corp., 822 F.3d 1327, 1335 (Fed. Cir. 2016) (quoting Internet Patents Corp. v. Active Network, Inc., 790 F.3d 1343, 1346 (Fed. Cir. 2015)). It asks whether the focus of the claims is on a specific improvement in relevant technology or on a process that itself qualifies as an “abstract idea” for which computers are invoked merely as a tool. See id. at 1335–36. Here, it is clear from the Specification (including the claim language) that claim 1 focuses on an abstract idea, and not on an improvement to technology and/or a technical field. The Specification is titled “SYSTEM AND METHOD FOR AUTONOMOUS INSURANCE SELECTION,” and describes, in the Background section, that customers generally do not consider shopping for insurance an enjoyable task (Spec. ¶ 3). Thus, even in situations where a life Appeal 2021-002579 Application 14/092,618 9 event, e.g., a marriage or the birth of a child, has changed a customer’s insurance needs, “customers often will not endeavor to change their insurance products or portfolio due to the inconvenience” (id.). “Therefore, there is a need for an effective means of automatically adjusting a customer’s insurance product or portfolio in response to events that change the customer’s insurance needs” (id. ¶ 4). The claimed invention is ostensibly intended to satisfy this need by providing a system and method to automatically adjust a customer’s insurance product or portfolio in response to the occurrence of a life-altering event (Spec. ¶ 7). The Specification, thus, describes that, in a preferred embodiment, the system uses actuarial tables to create a set of data-driven rules for customers (id.). For example, actuarial tables and other heuristics may be used to determine that customers who have a child require 30% more life insurance benefits; accordingly, when a child is born, the system automatically raises the customer’s life insurance benefits by 30% (id.). In another aspect, new insurance products may be added to the customer’s insurance portfolio; for example, an auto insurance product may added if the customer purchases his or her first car (Spec. ¶ 8). And, in yet another aspect, the customer, when choosing the automatic adjustment option, may customize the plan, e.g., to prioritize “cost efficiency,” such that the system adjusts the customer’s insurance portfolio with cost savings (or lower premiums) as the goal, or alternatively to prioritize “best protection,” such the insurance portfolio is adjusted with a goal of maximizing coverage (id.). Consistent with this disclosure, claim 1 recites a system to optimize insurance coverage in response to life events comprising a risk management Appeal 2021-002579 Application 14/092,618 10 server having at least one processor configured to: (1) receive, via a graphical user interface (“GUI”), a request for an automatic insurance adjustment option from at least one customer, i.e., provide a graphical user interface through the policy selection website, the graphical user interface facilitating remote access to the one or more customer devices customers [sic] over the network; receive, via the graphical user interface, identification information for at least one customer; [and] receive, via the graphical user interface, a selection input from the at least one customer corresponding to a request for an automatic insurance adjustment option (limitations (a) through (c)); (2) generate a first adjustment option associated with a cost saving goal and a second adjustment option associated with a maximum coverage goal; provide the adjustment options, via the GUI, to the at least one customer for display; receive the customer’s selection of the first adjustment option or the second adjustment option; and store the customer’s selected option in a selection database and an insurance policy profile for the customer in a policy database, i.e., generate, based on the selection input, a first automatic insurance adjustment option and a second automatic insurance option, wherein the first automatic insurance adjustment option is associated with a cost savings goal, and the second automatic insurance adjustment option is associated with a maximum coverage goal; provide, via the graphical user interface, the first automatic insurance adjustment option and the second automatic insurance option to the at least one customer for display; receive, via the graphical user interface, the selected option from one of the first automatic insurance adjustment option and the second automatic insurance adjustment option; store the selected option for the at least one customer in a selection database; [and] Appeal 2021-002579 Application 14/092,618 11 store a plurality of insurance policy profiles in a policy database (limitations (d) through (h)); and (3) scan an external vehicle registration database for a vehicle purchase event for the customer and, if such an event is detected, determine an optimal level of auto insurance coverage for the customer (based on actuarial rules for similarly situated vehicle owners’ coverage and the selected option stored in the selection database); update the customer’s insurance policy profile in the policy database to include the new auto insurance policy; and notify the customer of the new policy, including the policy terms, i.e., transmit an inquiry to the external vehicle registration database to scan for an event related to the at least one customer; receive event data from the external vehicle registration database; determine the event data indicates a vehicle purchase event for the at least one customer; determine an optimal level of auto insurance coverage for the at least one customer based on actuarial rules for similarly situated vehicle owners[,] coverage and the selected option stored in the selection database; adjust an insurance policy profile associated with the at least one customer to add the new auto insurance policy based on the vehicle purchase event; update the insurance policy profile associated with the at least customer in the policy database to include the new auto insurance policy; generate a notification outlining terms of the new auto insurance policy; and send the notification to the at least one customer to report the new auto insurance policy (limitations (i) through (p)). We agree with the Examiner that these limitations, when given their broadest reasonable interpretation, recite optimizing, i.e., adjusting, a customer’s insurance portfolio in response to Appeal 2021-002579 Application 14/092,618 12 life events, i.e., a commercial or legal interaction, which is one of “[c]ertain methods of organizing human activity,” which are an abstract idea. See 2019 Revised Guidance, 84 Fed. Reg. at 52. Appellant argues that “independent claim 1 recites numerous operations that are not ordinarily performed as part of ‘insurance selection,’ ‘sales activities,’ ‘adjusting a customer's insurance,’ or in a ‘consolidated data’ environment,” and that these “recitals provide specific and non- abstract operations that detect new vehicle purchase events and automatically change a customer’s insurance” (Appeal Br. 9). Yet, that, even if true, is of no moment where, as here, claim 1, ostensibly by Appellant’s own admission, recites operations that are, for example, sales activities, i.e., a method of organizing human activity and, therefore, an abstract idea. We also are not persuaded of Examiner error by Appellant’s argument that claim 1 includes additional elements that integrate the recited abstract idea into a “practical application” (Appeal Br. 9–12). The Revised Guidance references MPEP, Ninth Edition (rev. Jan 2018) (available at https://www.uspto.gov/web/offices/pac/ mpep/old/mpep_E9R08-2017.htm) § 2106.05(a)–(c) and (e) in non-exhaustively listing considerations indicative that an additional element or combination of elements may have integrated a recited judicial exception into a practical application. 2019 Revised Guidance, 84 Fed. Reg. at 55. In particular, the Guidance describes that an additional element may have integrated the judicial exception into a practical application if, inter alia, the additional element reflects an improvement in the functioning of a computer or an improvement to other technology or technical field. Id. At the same Appeal 2021-002579 Application 14/092,618 13 time, the Guidance makes clear that merely including instructions to implement an abstract idea on a computer, or merely using a computer as a tool to perform an abstract idea; adding insignificant extra-solution activity to the judicial exception; or only generally linking the use of the judicial exception to a particular technological environment or field are not sufficient to integrate the judicial exception into a practical application. Id. Appellant argues here that claim 1 addresses “specific problems relating to customer engagement and convenience, and provides a new technical interface/platform that performs specific operations in the context of new vehicle ownership” (Appeal Br. 9–10). And, Appellant asserts that “independent claim 1 recites a number of additional non-abstract limitations that address the foregoing problems in a practical real-world application” (id. at 10). Appellant charges that the “Office Action fails to properly consider the specific additional operations recited by independent claim 1, which advantageously function to solve specific problems relating to customer engagement, new vehicle ownership, and managing insurance” (Appeal Br. 10). Yet, the operations that Appellant identifies (i.e., soliciting customer data and an automatic insurance adjustment preference; transmitting inquiries to an external vehicle databases to scan for events related to the customer; determining the event data indicates a vehicle purchase event; determining an optimal level of auto insurance coverage for the customer based on actuarial rules for similarly situated vehicle owners; generating new auto insurance policies based on the optimal levels of insurance coverage and selected options; adjusting insurance policy profiles; generating notifications regarding the new insurance policy; and reporting Appeal 2021-002579 Application 14/092,618 14 the notification to the customer (see id. at 10; see also Reply Br. 6)) are, in combination, the claimed invention itself. Appellant maintains that these operations integrate any alleged abstract idea into a practical application. Yet, the relevant question under Step 2A, Prong 2 is not whether the claimed invention itself, i.e., automatically adjusting a customer’s insurance coverage in response to life events, is a practical application; instead, the question is whether the claim includes additional elements beyond the judicial exception that integrate the judicial exception into a practical application. The only additional elements in claim 1 beyond the abstract idea are “a risk management server”; “one or more customer device;’ “an external vehicle registration database”; “a network”; “a policy selection website”; “an actuarial database”; “an insurance adjustment engine”; “a graphical user interface”; “a policy database”; and “a selection database,” i.e., generic computer components (Final Act. 2 6; see also Spec. ¶¶ 13–17). “And after Alice, there can remain no doubt: recitation of generic computer limitations does not make an otherwise ineligible claim patent-eligible.” DDR Holdings, LLC v. Hotels.com, L.P., 773 F.3d 1245, 1256 (Fed. Cir. 2014). We conclude, for the reasons outlined above, that claim 1 recites a method of organizing human activity, i.e., an abstract idea, and that the additional elements recited in the claim beyond the abstract idea are no more than generic computer components used as tools to perform the recited abstract idea. As such, they do not integrate the abstract idea into a practical application. See Alice Corp., 573 U.S. at 223–24 (“[W]holly generic computer implementation is not generally the sort of ‘additional featur[e]’ that provides any ‘practical assurance that the process is more than a drafting Appeal 2021-002579 Application 14/092,618 15 effort designed to monopolize the [abstract idea] itself.’” (quoting Mayo, 566 U.S. at 77)). Accordingly, we agree with the Examiner that claim 1 is directed to an abstract idea.3 Step Two of the Mayo/Alice Framework (2019 Revised Guidance, Step 2B) Having determined under step one of the Mayo/Alice framework that claim 1 is directed to an abstract idea, we next consider under Step 2B of the 2019 Revised Guidance, the second step of the Mayo/Alice framework, whether claim 1 includes additional elements or a combination of elements that provides an “inventive concept,” i.e., whether an additional element or combination of elements adds specific limitations beyond the judicial exception that are not “well-understood, routine, conventional activity” in the field (which is indicative that an inventive concept is present) or simply appends well-understood, routine, conventional activities previously known to the industry to the judicial exception. 2019 Revised Guidance, 84 Fed. Reg. at 56. We agree with the Examiner that claim 1 does not include additional elements or a combination of elements that provides an inventive concept (Final Act. 6–7). And Appellant presents no arguments to the contrary. We are not persuaded, for the reasons set forth above, that the Examiner erred in rejecting independent claim 1 under 35 U.S.C. § 101. 3 Appellant argues that the Examiner’s same Art Unit 3692 previously determined, in allowing claims in other applications, that “analogous claim recitals” are “‘indicative of integration into a practical application’ and not merely reciting the abstract idea of certain methods of organizing human activity implemented by a computer” (Appeal Br. 11–12). But, we are not persuaded that the Art Unit’s handling of different claims in different applications has any bearing on the propriety of the present rejection. Appeal 2021-002579 Application 14/092,618 16 Therefore, we sustain the Examiner’s rejection of claim 1, and claims 2–4 and 6–9, which fall with claim 1. CONCLUSION In summary: Claim(s) Rejected 35 U.S.C. § Reference(s)/Basis Affirmed Reversed 1–4, 6–9 101 Eligibility 1–4, 6–9 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