Ex Parte Cunescu et alDownload PDFBoard of Patent Appeals and InterferencesFeb 28, 201211526444 (B.P.A.I. Feb. 28, 2012) Copy Citation UNITED STATES PATENT AND TRADEMARKOFFICE 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. 11/526,444 09/25/2006 Alexandru Cunescu P00135-US-UTIL 3869 98665 7590 02/29/2012 Otterstedt, Ellenbogen & Kammer, LLP P.O Box 381 Cox Cob, CT 06807 EXAMINER ZIEGLE, STEPHANIE M ART UNIT PAPER NUMBER 3694 MAIL DATE DELIVERY MODE 02/29/2012 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 BOARD OF PATENT APPEALS AND INTERFERENCES ____________________ Ex parte ALEXANDRU CUNESCU, DAVID A. ROBERTS, and DAVID BIBBY ____________________ Appeal 2010-008580 Application 11/526,444 Technology Center 3600 ____________________ Before: MURRIEL E. CRAWFORD, HUBERT C. LORIN, and JOSEPH A. FISCHETTI, Administrative Patent Judges. FISCHETTI, Administrative Patent Judge. DECISION ON APPEAL Appeal 2010-008580 Application 11/526,444 2 STATEMENT OF CASE Appellants seek our review under 35 U.S.C. § 134 from the Examiner’s final rejection of claims 2, 4, 5, 7, 11, 14-21, 24, and 25. Claims 1, 3, 6, 8-10, 12, 13, 22, and 23 are canceled. We affirm. THE CLAIMED INVENTION Appellants claim a payment apparatus and method (Specification 1:11-12). Claims 2 and 5 are illustrative of the claimed subject matter: 2. A method comprising the steps of: detecting a requirement to top up an offline balance of a payment device having an online-capable application and a primarily offline payment application, said offline balance being a balance of said primarily offline payment application, said payment device comprising: a body portion; a memory associated with said body portion, said memory containing: said online-capable application; and said primarily offline payment application, having said offline balance; and at least one processor associated with said body portion and coupled to said memory; and topping up said offline balance substantially contemporaneously with a separate online transaction between said payment device and a terminal; wherein: said detecting step comprises: said terminal conducting a first transaction with said online-capable application in said memory of said payment device, said first transaction being said online transaction; and said terminal reading a value of said offline balance from said memory of said payment device; and said topping up step comprises: Appeal 2010-008580 Application 11/526,444 3 said terminal conducting a second transaction with said primarily offline payment application in said memory of said payment device, to top up said value of said offline balance, if said offline balance requires topping up. 5. A method comprising the steps of: detecting a requirement to top up an offline balance of a payment device having an online-capable application and a primarily offline payment application, said offline balance being a balance of said primarily offline payment application, said payment device comprising: a body portion; a memory associated with said body portion, said memory containing: said online-capable application; and said primarily offline payment application, having said offline balance; and at least one processor associated with said body portion and coupled to said memory; and topping up said offline balance substantially contemporaneously with a separate online transaction between said payment device and a terminal; wherein: said detecting step comprises said at least one processor of said payment device detecting, via said online-capable application, said offline balance of said primarily offline payment application; and said topping up step comprises: responsive to detection of said offline balance of said primarily offline payment application as requiring said topping up of said offline balance, establishing on- line communication, via said at least one processor of said payment device executing said online-capable application; and obtaining, via said at least one processor of said payment device executing said online-capable Appeal 2010-008580 Application 11/526,444 4 application, said topping up of said offline balance of said primarily offline payment application. REFERENCES The prior art relied upon by the Examiner in rejecting the claims on appeal is: Binder Carper US 2004/0230535 A1 WO 01/39427 A1 Nov. 18, 2004 May 31, 2001 “Frequently Asked Questions Regarding the EZ-Pass from the Main Turnpike,” Dec. 5, 2005, http://web.archive.org/web/20041205031653Ihttp://www.ezpassmaineturnpi ke.com/info/faqs.html July 30, 2009. REJECTIONS The following rejection is before us for review: The Examiner rejected claims 2, 4, 5, 7, 11, 14-21, 24, and 25 under 35 U.S.C. § 103(a) over Carper, Binder and EZ-Pass. ISSUE At issue is whether the combination discloses topping up said offline balance substantially contemporaneously with a separate online transaction between said payment device and a terminal, since Binder discloses its offline balance is topped up upon request, and EZ-Pay automatically replenishes a balance immediately because it has access to credit card servers. Appeal 2010-008580 Application 11/526,444 5 FINDINGS OF FACT We find the following facts by a preponderance of the evidence. 1. Carper discloses a smart card with memory containing two separate applications that may cooperate, stating, “[t]he present invention provides a mechanism by which one application may call another application on the smart card. The present invention further provides a mechanism by which smart card applications may securely exchange information.” (p. 9 ll. 6-8). 2. Carper discloses “a smart card system and method which effectively allow multiple applications to be run simultaneously and in cooperation one with another.” (p. 6 ll. 2-3). 3. Carper discloses an application may be an offline application that merely communicates with a terminal, in that the “term ‘application’ generally refers to any programming code stored in the smart card which is capable of any independent functionality. Smart card applications typically respond to one or more commands from a terminal, and may implement a vast range of functions and processes.” (p. 8 ll. 16-19). 4. Carper discloses its “‘smart card’ should be broadly read as encompassing any self-contained combination of microprocessor and memory element capable of performing a transaction with another device. This other device is referred to as a terminal.” (p. 8 ll. 13-15). 5. Carper discloses applications that are on-line capable applications, with one example of “a first application the smart card is used as debit card to the checking account, and by means of a second application as a user Appeal 2010-008580 Application 11/526,444 6 authentication device to access the investment account.” (p. 8 ll. 28- 30). 6. Carper discloses persistently storing data on a smart card, in that “objects stored in read/write memory 10 are persistent in memory when power is removed from the smart card.” (p. 9 ll. 18-20). 7. Carper discloses persistent stored data on a smart card used by an application on the smart card, stating, “[w]hen installed, some applications create related data objects which are stored in read/write memory. In the illustrated example of Figure 3, Al and A2 are such data objects.” (p. 9 ll. 30-31). 8. Binder discloses “a transaction card to make purchases at a point of sale (‘POS’) terminal using a preauthorized amount, defined as an amount or value which the cardholder can use which is ‘pre-authorized’ or does not have to be subject to an on-line authorization request ...” (para. [0029]). 9. Binder discloses a stored balance on a smart card, in “memory unit 250 [which] includes the payment application, the pre-authorized balance field, the preauthorized limit field, and the like.” (para. [0041]). 10. Binder discloses topping up an offline balance by request, stating, a “card holder can utilize any of the kiosk-type terminal 410, the computer 470, the PDA 480, the mobile device 490 and a POS terminal to request an increase or decrease in the pre-authorized amount.” (para. [0050]). 11. EZ-Pass discloses a system to initiate an electronic toll payment without conducting an on-line transaction, using the EZ-Pass tag and related systems. (“What is E-ZPass?” on p. 2). Appeal 2010-008580 Application 11/526,444 7 12. EZ-Pass discloses a payment balance can be “automatically replenished whenever you balance falls below a pre-established level. You never have to worry about running short on funds.” (“How will I replenish my EZ-Pass Personal Account prepaid balance?”). 13. Carper discloses multiple applications having access to the same data stored on the smart card, stating “[s]o long as the ownership byte associated with a data object allows, any application may access the data object.” (p. 13 ll. 23-24). 14. Binder discloses an option for multiple applications stored on an integrated circuit (“IC”) card, in that “[i]n addition to the basic services provided by the operating system, memory unit 250 may also include one or more IC card applications.” (para. [0040]). 15. Carper discloses application identifiers in “file directory 20 [which] is a list (or linked set of lists) identifying every data object stored in read/write memory 10.” (p. 9 ll. 17-18). 16. Carper discloses storing multiple applications in shared memory 10, stating, “Figure 3 assumes two applications (A and B) are stored in read/write memory 10.” (p. 9 ll. 22-23). App App 17. 18. 19. eal 2010-0 lication 11 Carper dis below: Figure Carper dis (p. 13 ll. 2 The Speci terminal a 08580 /526,444 closes the 3 of Carp closes sha 5-29). fication de nd/or read layout of r er showing ring data b scribes tha er (Spec. 8 8 ead/write layout of etween ap t the paym :29 to 9:2 memory 1 read/writ plications ent devic 8). 0, in Figur e memory through m e interacts e 3, show 10 essaging with a n Appeal 2010-008580 Application 11/526,444 9 ANALYSIS Claims 2 and 4 The rejection is affirmed as to independent claim 2. Appellants do not provide a substantive argument as to the separate patentability of claim 4 that depends from claim 2. Therefore, we address only claim 2, and claim 4 falls with claim 2. See, 37 C.F.R. § 41.37(c)(1)(vii). Appellants argue that the combination of Carper, Binder, and EZ-Pass fail to disclose every limitation of claim 2, arguing, “Carper is silent as to including in the memory an on-line capable application and a primarily offline payment application having an offline balance, and is also silent as to any cooperation between such applications.” (Appeal Br. 17). We are not persuaded by Appellants' argument, because the combination discloses these features, but Appellants are attacking the reference individually when the rejection is based on a combination of references. See In re Keller, 642 F.2d 413, 426 (CCPA 1981). To these ends, we find that Carper discloses a memory that holds two or more separate application programs “by which one application may call another application on the smart card” and “exchange information” (FF 1). These applications are part of a system and method “which effectively allow multiple applications to be run simultaneously and in cooperation with one another.” (FF 2). We find that Carper further discloses a smart card with a stored program that is an offline application in that it need only communicate with a local terminal (FF 3, 4) and stored applications that are on-line in that they communicate with remote financial servers (FF 5). Carper discloses Appeal 2010-008580 Application 11/526,444 10 capability of storing persistent data on a smart card (FF 6) and discloses that such data is related to an application stored on the card (FF 7). While Carper does not explicitly disclose that the content of that data may be a monetary balance, we find that Binder discloses a smart card for offline financial transactions (FF 8) having a memory unit 250 that “includes the payment application, the pre-authorized balance field, the preauthorized limit field, and the like.” (FF 9). We find with the Examiner that it would have been obvious to install Binder’s offline application with associated stored balance onto the multi-application card of Carper, because it would permit a “flexible, configurable and controllable” (Ans. 4) application for offline payment. We also find the combination reasonable because it would yield predictable results and because Carper and Binder address common problems in smart card payment systems (FF 5, 8). Appellants next argue the “EZ-Pass device is not a payment device as claimed and has neither an on-line capable application nor a primarily offline payment application ....” (Appeal Br. 17). We are not persuaded by Appellants' argument, because, as above, Appellants are attacking the reference individually when the rejection is based on a combination of references. Id. We find first that Binder discloses topping up an offline balance at any of several devices to which the smart card is connected such that the card holder can “request an increase or decrease in the pre-authorized amount[/balance].” (FF 10). Binder thus relies on the card holder to make a request to increase a balance amount. We next find, however, that EZ-Pass discloses an automatically replenishable payment system using a remote device that can initiate an electronic toll payment, at the EZ-Pass unit. (FF 11). Key to this disclosure Appeal 2010-008580 Application 11/526,444 11 is that rather than requiring a user to request a balance increase, EZ-Pass discloses a balance is “automatically replenished whenever you[r] balance falls below a pre-established level”. (FF 12). We therefore find the combination of Binder and EZ-Pass meet the claim requirement to top up said value of said offline balance, if said offline balance requires topping up. EZ-Pass is thus relied upon merely to disclose the concept of providing an automatic topping up step in combination with Binder’s disclosure of topping up an offline balance of a smart card (Ans. 4). Appellants next argue, “the EZ-Pass device merely reports its position, it is incapable of making any kind of transaction, and it can be stated a fortiori that it cannot make the claimed separate online transaction ...” (Appeal Br. 18). Additionally, Appellants argue there is nothing “in EZ- Pass that requires the replenishment to be substantially contemporaneous with any other transaction.” (Appeal Br. 18). We are not persuaded by Appellants' arguments for the following reasons. First, we find EZ-Pass discloses replenishing “whenever you[r] balance falls below a pre-established level” (FF 12). In the case of off line payment cards as disclosed by Carper (FF 3) and Binder (FF 8) which have on line capabilities (FF 5, 10), the off line payment card would need to connect on-line to obtain the money needed to maintain the required threshold. We find it obvious that the occasion to do so would be at the time the next on-line transaction occurs when on-line channels are open not only for the involved transaction but for the topping off process as well. “When there is a design need or market pressure to solve a problem and there are a finite number of identified, predictable solutions, a person of ordinary skill in the art has good reason to pursue the known options within his or her Appeal 2010-008580 Application 11/526,444 12 technical grasp. If this leads to the anticipated success, it is likely the product not of innovation but of ordinary skill and common sense.” KSR Int'l. Co. v. Teleflex Inc., 550 U.S. 398, at 402-403 (2007). Appellants argue, as to the detecting step comprises and topping up step comprises requirements, is an improper rejection because Carper discloses “initializing” applications, but the “initialization in Carper thus does not appear to have anything to do with conducting the claimed separate online transaction ...” (Appeal Br. 18-19). We are not persuaded by Appellants' argument because the initialization step in Carper causes an application to receive the next command from a terminal, and thus causes an on-line transaction to occur for that application (FF 5). The Examiner cited to Binder as disclosing “an online transaction and a separate second transaction to top up the balance of the offline application” (Ans. 4), but Appellants argue Binder “requires an affirmative request to increase or decrease the pre-authorized amount while 0062-0063 of Binder simply describes updating the pre-authorized amount to reflect the sale” (Appeal Br. 19). We are not persuaded by Appellants' argument, which attacks an individual reference that is part of a combination. We find the skilled artisan, reading EZ-Pass’s teaching of an automatic balance topping off (FF 12), along with the offline balance of Binder (FF 8-10) and multiple on-line and offline applications of Carper (FF 2, 3, 5), would recognize that Binder’s topping off request could be replaced by EZ-Pass’s automated balance update, when the smart card is capable of on on-line transaction, which is when a next on-line application takes place. Id. The combination thus Appeal 2010-008580 Application 11/526,444 13 meets the claim requirements for topping up said offline balance substantially contemporaneously with a separate online transaction between said payment device and a terminal and to top up said value of said offline balance, if said offline balance requires topping up. Next, Appellants argue, “Binder carries out its steps within a single transaction using a single application, Binder 0041 ‘the payment application’ (singular, emphasis added)” (Appeal Br. 19), instead of multiple applications. We are not persuaded by Appellants' argument, because we find Carper discloses multiple applications available on a smart card (FF 1, 2) which may be an offline (FF 3, 4) and on-line (FF 5), and Binder discloses that the offline application may have a balance stored on the card. We additionally find that Binder discloses an option of multiple applications on a single card (FF 14). Appellants argue error in the combination of references on the basis of there being no expectation of success in the combination, because “the topping up in EZ-Pass is not carried out by the EZ-Pass tag but rather by the issuing agency. Presumably, such agency has powerful servers ... to replenish the account.” (Appeal Br. 21-22). We are not persuaded by Appellants' argument, because we find there would be a reasonable expectation of success in the combination because Carper and Binder both disclose methods involving smart cards containing multiple applications (FF 1, 8), and to implement the EZ-Pass automated topping off would merely require automating Binder’s request-driven method to top off a balance (FF 10). It is generally obvious to automate a known manual procedure or mechanical device. See, Leapfrog Enterprises Appeal 2010-008580 Application 11/526,444 14 Inc. v. Fisher-Price Inc., 485 F.3d 1157 (Fed. Cir. 2007). For obviousness under § 103, all that is required is a reasonable expectation of success. Wyers v. Master Lock Co., 616 F.3d 1231, 1242 (Fed. Cir. 2010). Appellants next argue error in the combination, because the stated rationale to combine Carper with Binder, to provide “a more flexible, configurable and controllable method ...” (Ans. 4) “is a motivation to obtain the invention of Binder, not the claimed invention” (Appeal Br. 22). We are not persuaded by Appellants’ argument of error, because we find the motivation provided by the Examiner was rationale (Ans. 4) in that the references deal with common problems in smart cards and other remote payment devices (FF 1, 8, 11) and obtaining “a more flexible, configurable and controllable method” is reasonable. Claim 21 Independent claim 21 is argued by reference to claim 2 (Appeal Br. 34). We thus affirm the rejection of claim 21 under the same reasoning set forth above at claim 2. Claim 24 Independent claim 24 is argued by reference to claim 2 (Appeal Br. 34). We thus affirm the rejection of claim 21 under the same reasoning set forth above at claim 2. Claims 5 and 7 The rejection is affirmed as to independent claim 5. Appellant does not provide a substantive argument as to the separate patentability of claim 7 that depends from claim 5. Therefore, we address only claim 5, and claim 7 falls with claim 5. Appeal 2010-008580 Application 11/526,444 15 Appellants argue “the Examiner has not set forth a specific rationale for the alleged obviousness of the specific claimed limitations” of claim 5, because the Examiner rejected claim 2 and 5 together, but quoted only claim language from claim 2. (Appeal Br. 26). We are not persuaded of error because we find no unobvious differences in language between claims 2 and 5. In the detecting step comprises and the topping up step comprises of claim 2, the “terminal” conducts first and second transactions. In the detecting step comprises and the topping up step comprises of claim 5, the “payment device” conducts the two transactions. In almost all on-line or offline transactions, the “payment device” and terminal/reader are required elements (as shown by the smart card of Binder and Carper requiring both the smart card and a terminal to interact (FF 4, 8)). Without both the payment device/smart card and the terminal/reader, no transaction can take place with this type of scheme (FF 19). Appellants argue “the requirement is for some teaching, suggestion, or motivation in the prior art that would have led one of ordinary skill to modify the prior art reference or to combine prior art reference teachings to arrive at the claimed invention.” (Appeal Br. 28). To the extent Appellants seek an explicit suggestion or motivation in the reference itself, this is no longer the law in view of the Supreme Court’s recent holding in KSR Int’l Co. v. Teleflex Inc., 550 U.S. 398, 419 (2007). The remainder of the arguments directed to claim 5 are identical to those already addressed above at claim 2. We therefore affirm the rejection of claim 5 additionally for the same reasons set forth above at claim 2. Appeal 2010-008580 Application 11/526,444 16 Claim 25 Independent claim 25 is argued by reference to claim 5 (Appeal Br. 35). We thus affirm the rejection of claim 25 under the same reasoning set forth above at claims 2 and 5. Claims 11 and 14 Independent claim 11 is argued by reference to independent claim 5. (Appeal Br. 29). We thus affirm the rejection of claim 25 under the same reasoning set forth above at claims 2 and 5. Appellants do not provide a substantive argument as to the separate patentability of claim 14 that depends from claim 11. Claim 15 Claim 15 depends from apparatus claim 11, and recites, inter alia: said online-capable application comprises a first application identifier, a shared firmware implementation, and an online data set; said primarily offline payment application comprises a second application identifier, said shared firmware implementation, and an offline data set; and data indicative of a value of said offline balance is shared by said online-capable application and said primarily offline payment application. Appellants argue, the “Examiner does not appear to have stated where the specific claimed features are found in the broad citation of figures 1-3, 5, and related text, nor does the Examiner appear to have stated a rationale as to why the broad disclosure therein of sharing data between applications on a smart card renders the specific claimed limitations obvious.” (Appeal Br. 30). We are not persuaded by Appellants’ argument because we find that the Examiner’s reference to Carper by virtue of the Figures and related text Appeal 2010-008580 Application 11/526,444 17 is sufficient to support a prima facie case. Accordingly, we find Carper discloses a first application identifier and second application identifier at the directory 20 (FF 15). We next find Carper discloses a shared firmware implementation, online data set, and offline data set at memory 10, in which stores applications (FF 16) and data (FF 17). We find Carper discloses data in memory is shared (FF 13), and finally find Binder discloses that stored data is indicative of a value of said offline balance (FF 9), thus meeting all claim requirements. Claim 16 Claim 16 depends from apparatus claim 11, and recites, inter alia: said online-capable application comprises a first application identifier, an online-capable application firmware implementation, an online counter, and an online data set; said primarily offline payment application comprises a second application identifier, a primarily offline payment application firmware implementation, an offline counter, and an offline data set; and said offline counter comprises data indicative of a value of said offline balance, said offline counter being visible to said online-capable application. Appellants’ argument is similar to that advanced for claim 15. (Appeal Br. 31). Accordingly, we affirm the rejection of claim 16 for reasons substantially similar to those set forth above at claim 15 finding the counter/balance is visible to said online-capable application because Carper discloses access to data from multiple applications (FF 13), the online- capable application firmware implementation at the online application (FF 5), and primarily offline payment application firmware implementation (FF 3), also disclosed by Binder (FF 8). Appeal 2010-008580 Application 11/526,444 18 Claim 17 Claim 17 depends from apparatus claim 11, and recites, inter alia: said online-capable application comprises a first application identifier, an online-capable application firmware implementation, and an online data set; said primarily offline payment application comprises a second application identifier, a primarily offline payment application firmware implementation, and an offline data set; and data indicative of a value of said offline balance is shared by said online-capable application and said primarily offline payment application. Appellants’ argument is similar to that advance for claim 15. (Appeal Br. 31-32). We affirm the rejection of claim 17 for reasons substantially similar to those set forth above at claim 15, and because the primary difference is the omission of the counter that comprises data indicative of a value of said offline balance, along with the shared memory (FF 13). Claim 18 Claim 18 depends from apparatus claim 11, and recites, inter alia: said online-capable application comprises a first application identifier, a shared firmware implementation, an online counter, and an online data set; said primarily offline payment application comprises a second application identifier, said shared firmware implementation, an offline counter, and an offline data set; and said offline counter comprises data indicative of a value of said offline balance, said offline counter being visible to said online-capable application. Appellants’ argument is similar to that advance for claim 15. (Appeal Br. 32). Appeal 2010-008580 Application 11/526,444 19 We affirm the rejection of claim 18 for reasons substantially similar to those set forth above at claim 15, and since the primary difference is the inclusion of the counter that comprises data indicative of a value of said offline balance, along with the shared memory (FF 13). Claim 19 Claim 19 depends from claim 18, and recites, inter alia, “said online counter and said online data set reside in a first memory space; and said offline counter and said offline data set reside in a second memory space.” Appellants’ argument is similar to that advance for claim 15. (Appeal Br. 33). We are not persuaded by Appellants' argument for reasons substantially similar to those set forth above at claim 15, and because we find Carper discloses a first memory space at A1 and a second memory space at A2 (FF 7, 17). Claim 20 Claim 20 depends from claim 18, and recites, inter alia, “wherein said online counter, said online data set, said offline counter, and said offline data set reside in a shared memory space.” (Appeal Br. 34). We are not persuaded by Appellants' argument for reasons substantially similar to those set forth above at claim 15, and because we find Carper discloses a shared memory space at read/write memory 10 (FF 6, 13, 17, 18). CONCLUSION OF LAW The Examiner did not err in rejecting claims 2, 4, 5, 7, 11, 14-21, 24, and 25 under 35 U.S.C. § 103(a) over Carper, Binder, and EZ-Pass. Appeal 2010-008580 Application 11/526,444 20 DECISION For the above reasons, the Examiner’s rejection of claims 2, 4, 5, 7, 11, 14-21, 24, and 25 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)(1)(iv). AFFIRMED MP Copy with citationCopy as parenthetical citation