Blair, Edward Tilden. et al.Download PDFPatent Trials and Appeals BoardMar 25, 202013189131 - (D) (P.T.A.B. Mar. 25, 2020) 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. 13/189,131 07/22/2011 Edward Tilden Blair 94926-006000US-858468 9604 110577 7590 03/25/2020 Kilpatrick Townsend & Stockton LLP SAS Institute Inc. Mailstop: IP Docketing - 22 1100 Peachtree Street, Suite 2800 Atlanta, GA 30309 EXAMINER COTHRAN, BERNARD E ART UNIT PAPER NUMBER 2128 NOTIFICATION DATE DELIVERY MODE 03/25/2020 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): KTSDocketing2@kilpatrick.foundationip.com eofficeaction@appcoll.com ipefiling@kilpatricktownsend.com PTOL-90A (Rev. 04/07) UNITED STATES PATENT AND TRADEMARK OFFICE BEFORE THE PATENT TRIAL AND APPEAL BOARD Ex parte EDWARD TILDEN BLAIR, MICHAEL J. LEONARD, DAVID BRUCE ELSHEIMER, JERZY MICHAL BRZEZICKI, KANNUKUZHIYIL KURIEN, MICHAEL RYAN CHIPLEY, DINESH P. APTE, and MING-CHUN CHANG Appeal 2018-005613 Application 13/189,131 Technology Center 2100 Before ROBERT E. NAPPI, LARRY J. HUME, and STEPHEN E. BELISLE, Administrative Patent Judges. HUME, Administrative Patent Judge. DECISION ON APPEAL Pursuant to 35 U.S.C. § 134(a), Appellant,1 Edward Tilden Blair et al., appeals from the Examiner’s decision rejecting claims 21–24, 27, 29, 30, 32–35, 38, 40, 41, 43–46, 49, 51, 52, and 54, which are all claims pending in the application. Appellant has canceled claims 1–20, 25, 26, 28, 31, 36, 37, 39, 42, 47, 48, 50, and 53. Appeal Br. 3. 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(a). Appellant identifies the real party in interest as SAS Institute Inc. Appeal Br. 3. Appeal 2018-005613 Application 13/189,131 2 STATEMENT OF THE CASE2 The claims are directed to computer-implemented systems and methods for large scale automatic forecast combinations. See Spec. (Title). Appellant’s disclosed embodiments and claimed invention “relate[] generally to computer-implemented forecasting and more particularly to using multiple forecasts to generate a combined forecast.” Spec. 1, ll. 2–3. Claim 32, reproduced below, is representative of the subject matter on appeal: Exemplary Claim 32. A computer-implemented method, comprising: receiving, on a computing device, an identification of a forecast variable and characteristics of the forecast variable, wherein the forecast variable is used to generate a combined forecast; receiving historic data related to the forecast variable; receiving a set of predictive models used to generate forecasts associated with the forecast variable; applying one or more forecast quality tests to the set of predictive models to filter the set of predictive models to a reduced set of predictive models, wherein the forecast quality tests analyze the set of predictive models using types of models in the set of predictive models and the characteristics of the forecast variable; identifying a first predictive model and a second predictive model of the reduced set of predictive models, 2 Our decision relies upon Appellant’s Appeal Brief (“Appeal Br.,” filed Nov. 1, 2017); Reply Brief (“Reply Br.,” filed May 10, 2018); Examiner’s Answer (“Ans.,” mailed Mar. 15, 2018); Final Office Action (“Final Act.,” mailed June 1, 2017); and the original Specification (“Spec.,” filed July 22, 2011). Appeal 2018-005613 Application 13/189,131 3 wherein the first predictive model and the second predictive model are operable to provide forecasts with regard to the forecast variable and based on the historic data, wherein the first predictive model and the second predictive model have associated metadata, wherein identifying includes using a forecast model selection graph having a combination node that represents a combination of forecasts generated using the first predictive model and second predictive model, a selection node that represents a plurality of forecasts available for selection, and multiple forecast nodes, each of the forecast nodes representing a predictive model, and wherein identifying the first predictive model and the second predictive model includes determining that a first one of the forecast nodes is associated with the first predictive model and the second one of the forecast nodes is associated with the second predictive model; generating a first forecast using the historic data and the first predictive model; generating a second forecast using the historic data and the second predictive model; determining a first optimized weight to apply to the first forecast by referencing the metadata associated with the first predictive model, wherein the metadata associated with the first predictive model identifies a model characteristic of the first predictive model, and wherein determining the first optimized weight to apply to the first forecast includes performing automated analysis of the characteristics of the forecast variable and the model characteristic of the first predictive model to determine an optimum weight for the first forecast; determining a second optimized weight to apply to the second forecast by referencing the metadata associated with the second predictive model, wherein the metadata associated with the second predictive model identifies a model characteristic of the second predictive model, and wherein determining the second optimized weight to apply to the second forecast includes performing automated analysis of the characteristics of Appeal 2018-005613 Application 13/189,131 4 the forecast variable and the model characteristic of the second predictive model to determine an optimum weight for the second forecast; obtaining a first optimized forecast by applying the optimized first weight to the first forecast; obtaining a second optimized forecast by applying the optimized second weight to the second forecast; and generating an optimized combined forecast by combining the first optimized forecast and the second optimized forecast. Rejection on Appeal Claims 21–24, 27, 29, 30, 32–35, 38, 40, 41, 43–46, 49, 51, 52, and 54 stand rejected under 35 U.S.C. § 101 because the claimed invention is directed to a judicial exception (i.e., a law of nature, a natural phenomenon, or abstract idea) without significantly more. Final Act. 9. CLAIM GROUPING Based on Appellant’s arguments (Appeal Br. 7–19) and our discretion under 37 C.F.R. § 41.37(c)(1)(iv), we decide the appeal of patent-ineligible subject matter rejection of claims 21–24, 27, 29, 30, 32–35, 38, 40, 41, 43– 46, 49, 51, 52, and 54 on the basis of representative claim 32.3 3 “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.” 37 C.F.R. § 41.37(c)(1)(iv). In addition, when Appellant does not separately argue the patentability of dependent claims, the claims stand or fall with the claims from which they depend. In re King, 801 F.2d 1324, 1325 (Fed. Cir. 1986). Appeal 2018-005613 Application 13/189,131 5 ISSUE Under the USPTO’s Revised Guidance, informed by our governing case law concerning 35 U.S.C. § 101, is claim 32 patent-ineligible under § 101? PRINCIPLES OF LAW A. 35 U.S.C. § 101 An invention is patent-eligible if it is a “new and useful process, machine, manufacture, or composition of matter.” 35 U.S.C. § 101.4 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. Mayo Collaborative Servs. v. Prometheus Labs., Inc., 566 U.S. 66, 70 (2012) (brackets in original) (citing Diamond v. Diehr, 450 U.S. 175, 185 (1981)). 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. Alice Corp. v. CLS Bank Int’l, 573 U.S. 208, 217–18 (2014) (citing Mayo, 566 U.S. at 75–77). In accordance with that framework, we first determine what concept the claim is “directed to.” See Alice, 573 U.S. at 219 (“On their face, the claims before us are drawn to the concept of intermediated settlement, i.e., the use of a third party to mitigate settlement risk.”); see also Bilski v. Kappos, 561 U.S. 593, 611 (2010) (“Claims 1 and 4 4 This threshold analysis of whether a claim is directed to one of the four statutory categories of invention, i.e., a process, machine, manufacture, or composition of matter, is referred to as “Step 1” in the USPTO’s patent- eligibility analysis under § 101. MPEP § 2106. Appeal 2018-005613 Application 13/189,131 6 in petitioners’ application explain the basic concept of hedging, or protecting against risk . . . .”). Concepts 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, 561 U.S. at 611); mathematical formulas (Parker v. Flook, 437 U.S. 584, 594–95 (1978)); and mental processes (Gottschalk v. Benson, 409 U.S. 63, 67 (1972)). Concepts determined to be patent eligible include physical and chemical processes, such as “molding rubber products” (Diehr, 450 U.S. at 191); “tanning, dyeing, making water-proof cloth, vulcanizing India rubber, smelting ores” (id. at 182 n.7 (quoting Corning v. Burden, 56 U.S. 252, 267–68 (1853))); and manufacturing flour (Benson, 409 U.S. at 69 (citing Cochrane v. Deener, 94 U.S. 780, 785 (1876))). In Diehr, the claim at issue recited a mathematical formula, but the Supreme Court held “[a] claim drawn to subject matter otherwise statutory does not become nonstatutory simply because it uses a mathematical formula.” Diehr, 450 U.S. at 187; see also id. at 191 (“We view respondents’ claims as nothing more than a process for molding rubber products and not as an attempt to patent a mathematical formula.”). Having said that, the Supreme Court also indicated that a claim “seeking patent protection for that formula in the abstract . . . is not accorded the protection of our patent laws, and this principle cannot be circumvented by attempting to limit the use of the formula to a particular technological environment.” Id. (citation omitted) (citing Benson and Flook); see, e.g., id. at 187 (“It is now commonplace that an application of a law of nature or mathematical Appeal 2018-005613 Application 13/189,131 7 formula to a known structure or process may well be deserving of patent protection.”). Abstract ideas may include, but are not limited to, fundamental economic practices, methods of organizing human activities, and mathematical formulas or relationships. Alice, 573 U.S. at 217–21. Under this guidance, we must therefore ensure at step one that we articulate what the claims are directed to with enough specificity to ensure the step one inquiry is meaningful. Id. at 217 (citation omitted) (“[W]e tread carefully in construing this exclusionary principle lest it swallow all of patent law.”). 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 (citation 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. (alterations in original) (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. B. USPTO Revised Guidance The PTO published revised guidance in the Federal Register concerning the application of § 101. 2019 Revised Patent Subject Matter Eligibility Guidance, 84 Fed. Reg. 50 (January 7, 2019) (hereinafter “Revised Guidance”) (https://www.govinfo.gov/content/pkg/FR-2019-01- 07/pdf/2018-28282.pdf). Appeal 2018-005613 Application 13/189,131 8 Under the Revised Guidance, we first look to whether the claim recites: (1) any judicial exceptions, including certain groupings of abstract ideas (i.e., mathematical concepts, certain methods of organizing human activity such as a fundamental economic practice, or mental processes);5 and (2) additional elements that integrate the judicial exception into a practical application (see Manual for Patent Examining Procedure (“MPEP”) § 2106.05(a)–(c), (e)–(h)).6 See Revised Guidance 52–53. Only if a claim (1) recites a judicial exception and (2) does not integrate that exception into a practical application, do we then look to whether the claim: (3) adds a specific limitation beyond the judicial exception that is not “well-understood, routine, conventional” in the field (see MPEP § 2106.05(d)); or (4) simply appends well-understood, routine, conventional activities previously known to the industry, specified at a high level of generality, to the judicial exception.7 See Revised Guidance 56. Step 2A(i) — Abstract Idea Informed by our judicial precedent, the Revised Guidance extracts and synthesizes key concepts identified by the courts as abstract ideas to explain 5 Referred to as “Revised Step 2A, Prong 1” in the Revised Guidance (hereinafter “Step 2A(i)”). 6 Referred to as “Revised Step 2A, Prong 2” in the Revised Guidance (hereinafter “Step 2A(ii)”). 7 Items (3) and (4) continue to be collectively referred to as “Step 2B” of the Supreme Court’s two-step framework, described in Mayo and Alice. Appeal 2018-005613 Application 13/189,131 9 that the abstract idea exception includes the following groupings of subject matter, when recited as such in a claim limitation: (a) Mathematical concepts—mathematical relationships, mathematical formulas or equations, mathematical calculations; (b) Certain methods of organizing human activity — fundamental economic principles or practices (including hedging, insurance, mitigating risk); commercial or legal interactions (including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations); managing personal behavior or relationships or interactions between people (including social activities, teaching, and following rules or instructions); and (c) Mental processes—concepts performed in the human mind (including an observation, evaluation, judgment, opinion). Revised Guidance 52 (footnotes omitted). Under the Revised Guidance, if the claim does not recite a judicial exception (a law of nature, natural phenomenon, or subject matter within the enumerated groupings of abstract ideas above), then the claim is patent- eligible at Step 2A(i). This determination concludes the eligibility analysis, except in situations identified in the Revised Guidance.8 However, if the claim recites a judicial exception (i.e., an abstract idea enumerated above, a law of nature, or a natural phenomenon), the claim requires further analysis for a practical application of the judicial exception in Step 2A(ii). 8 In the rare circumstance in which an examiner believes a claim limitation that does not fall within the enumerated groupings of abstract ideas should nonetheless be treated as reciting an abstract idea, the procedure described in the Guidance for analyzing the claim should be followed. See Revised Guidance, Section III.C. Appeal 2018-005613 Application 13/189,131 10 Step 2A(ii) — Practical Application If a claim recites a judicial exception in Step 2A(i), we determine whether the recited judicial exception is integrated into a practical application of that exception in Step 2A(ii) 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 in combination to determine whether they integrate the exception into a practical application. The seven identified “practical application” sections of the MPEP,9 cited in the Revised Guidance under Step 2A(ii), are: (1) MPEP § 2106.05(a) Improvements to the Functioning of a Computer or To Any Other Technology or Technical Field (2) MPEP § 2106.05(b) Particular Machine (3) MPEP § 2106.05(c) Particular Transformation (4) MPEP § 2106.05(e) Other Meaningful Limitations (5) MPEP § 2106.05(f) Mere Instructions To Apply An Exception (6) MPEP § 2106.05(g) Insignificant Extra-Solution Activity (7) MPEP § 2106.05(h) Field of Use and Technological Environment See Revised Guidance 55. 9 See MPEP §§ 2106.05(a)–(c), (e)–(h). Citations to the MPEP herein refer to revision [R-08.2017]. Sections 2106.05(a), (b), (c), and (e) are indicative of integration into a practical application, while §§ 2106.05(f), (g), and (h) relate to limitations that are not indicative of integration into a practical application. Appeal 2018-005613 Application 13/189,131 11 If the recited judicial exception is integrated into a practical application as determined under one or more of the MPEP sections cited above, then the claim is not directed to the judicial exception, and the patent- eligibility inquiry ends. See Revised Guidance 54. If not, then analysis proceeds to Step 2B. Step 2B – “Inventive Concept” or “Significantly More” Under our reviewing courts’ precedent, it is possible that a claim that does not “integrate” a recited judicial exception under Step 2A(ii) is nonetheless patent eligible. For example, the claim may recite additional elements that render the claim patent eligible even though one or more claim elements may recite a judicial exception.10 The Federal Circuit has held claims eligible at the second step of the Alice/Mayo test (USPTO Step 2B) because the additional elements recited in the claims provided “significantly more” than the recited judicial exception (e.g., because the additional elements were unconventional in combination).11 Therefore, if a claim has been determined to be directed to a judicial exception under Revised Step 2A, we must also evaluate the additional elements individually and in combination under Step 2B to determine whether they provide an inventive concept (i.e., whether the additional elements amount to significantly more than the exception itself).12 10 See, e.g., Diehr, 450 U.S. at 187. 11 See, e.g., Amdocs, Ltd. v. Openet Telecom, Inc., 841 F.3d 1288, 1300, 1304 (Fed. Cir. 2016); BASCOM Global Internet Servs., Inc. v. AT&T Mobility LLC, 827 F.3d 1341, 1349–52 (Fed. Cir. 2016); DDR Holdings LLC v. Hotels.com, L.P., 773 F.3d 1245, 1257–59 (Fed. Cir. 2014). 12 The patent eligibility inquiry may contain underlying issues of fact. Mortg. Grader, Inc. v. First Choice Loan Servs. Inc., 811 F.3d 1314, 1325 Appeal 2018-005613 Application 13/189,131 12 Under the Revised Guidance, we must consider in Step 2B whether an additional element or combination of elements: (1) “Adds 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 (2) “simply appends well-understood, routine, conventional activities previously known to the industry, specified at a high level of generality, to the judicial exception, which is indicative that an inventive concept may not be present.” See Revised Guidance, Section III.B.13 In the Step 2B analysis, an additional element (or combination of elements) is not well-understood, routine or conventional unless the examiner finds an evidentiary basis, and expressly supports a rejection in writing with, one or more of the following: 1. A citation to an express statement in the specification or to a statement made by an applicant during (Fed. Cir. 2016). In particular, “[t]he question of whether a claim element or combination of elements is well-understood, routine and conventional to a skilled artisan in the relevant field is a question of fact.” Berkheimer v. HP Inc., 881 F.3d 1360, 1368 (Fed. Cir. 2018). 13 In accordance with existing Step 2B guidance, an Examiner’s finding that an additional element (or combination of elements) is well understood, routine, conventional activity must be supported with at least one of the four specific types of evidence required by the USPTO Berkheimer Memorandum, as shown above. For more information concerning evaluation of well-understood, routine, conventional activity, see MPEP § 2106.05(d), as modified by the USPTO Berkheimer Memorandum (USPTO Commissioner for Patents Memorandum dated Apr. 19, 2018, “Changes in Examination Procedure Pertaining to Subject Matter Eligibility, Recent Subject Matter Eligibility Decision (Berkheimer v. HP, Inc.)” (hereinafter “Berkheimer Memo”). Appeal 2018-005613 Application 13/189,131 13 prosecution that demonstrates the well-understood, routine, conventional nature of the additional element(s). . . . 2. A citation to one or more of the court decisions discussed in MPEP § 2106.05(d)(II) as noting the well- understood, routine, conventional nature of the additional element(s). 3. A citation to a publication that demonstrates the well-understood, routine, conventional nature of the additional element(s). . . . 4. A statement that the examiner is taking official notice of the well-understood, routine, conventional nature of the additional element(s). . . . See Berkheimer Memo 3–4. If the Examiner or the Board determines under Step 2B that the element (or combination of elements) amounts to significantly more than the exception itself, the claim is eligible, thereby concluding the eligibility analysis. However, if a determination is made that the element and combination of elements do not amount to significantly more than the exception itself, the claim is ineligible under Step 2B, and the claim should be rejected for lack of subject matter eligibility. ANALYSIS Step 1 — Statutory Category Claim 32, as a computer-implemented method (process) claim, recites one of the enumerated categories of eligible subject matter in 35 U.S.C. § 101. Therefore, the issue before us is whether it is directed to a judicial exception without significantly more. Appeal 2018-005613 Application 13/189,131 14 Step 2A(i): Does the Claim Recite a Judicial Exception? The Examiner determined that the claims “are directed to an abstract idea of organizing information through mathematical correlations to generate a first and second forecast. The claim(s) does/do not include additional elements that are sufficient to amount to significantly more than the judicial exception because the additional computer elements, which are recited at a high level of generality, provide conventional computer functions that do not add meaningful limits to practicing the abstract idea.” Final Act. 9–10. We conclude claim 32 does not recite the judicial exceptions of either natural phenomena or laws of nature. We evaluate, de novo, whether claim 32 recites an abstract idea based upon the Revised Guidance. First, we look to the Specification to provide context as to what the claimed invention is directed to. In this case, the Specification discloses that the invention “relates generally to computer-implemented forecasting and more particularly to using multiple forecasts to generate a combined forecast.” Spec. 1, ll. 1–2. Appellant’s Abstract further describes the invention: Systems and methods are provided for evaluating a physical process with respect to one or more attributes of the physical process by combining forecasts for the one or more physical process attributes, where data for evaluating the physical process is generated over time. A forecast model selection graph is accessed, the forecast model selection graph comprising a hierarchy of nodes arranged in parent-child relationships. A plurality of model forecast nodes are resolved, where resolving a model forecast node includes generating a node forecast for the one or more physical process attributes. A Appeal 2018-005613 Application 13/189,131 15 combination node is processed, where a combination node transforms a plurality of node forecasts at child nodes of the combination node into a combined forecast. A selection node is processed, where a selection node chooses a node forecast from among child nodes of the selection node based on a selection criteria. Spec. 32 (Abstract). With respect to this phase of the analysis, Appellant urges reversal of the Examiner’s rejection based upon the holdings in McRO and Enfish. See Appeal Br. 11–12, 13–15. McRO In the Appeal Brief, Appellant argues the claims are similar to those held patent-eligible in McRO. Appeal Br. 11 (“As in McRO, the claims here are not directed to an abstract idea because the claims are directed to an improvement in computer-related technology.”) (Citing McRO, Inc. v. Bandai Namco Games Am. Inc., 837 F.3d 1299 (Fed. Cir. 2016)). Appellant further argues: Here, the claims are directed to computer automation of the generation of optimized combined forecasts using specific and unconventional rules that are enumerated in the claims. For example, the claims require that quality tests are applied to predictive models for filtering to a reduced set of predictive models, that two specific predictive models are identified using a forecast model selection graph with nodes representing selection, combination, and forecasting, that optimized weights are determined using metadata and characteristics associated with the predictive models, and that the optimized weights are used in obtaining optimized forecasts that are then combined to generate an optimized forecast. These rules allow efficient selection, filtering, and weighting to enable automatic generation of a combined forecast in an unconventional manner. Previously, forecasting corresponded to generating Appeal 2018-005613 Application 13/189,131 16 individual forecasts, which could be generated by a computer or a human expert, and techniques for automated optimizing and preselection of forecasts for automated generation of optimized combined forecasts were not well-known. At its most advanced, conventional forecasting techniques may employ human experts to generate optimized forecasts. Optimization by a human expert may make use of subjective judgmental decisions based on the expert's analysis. This is similar to the facts in McRO, where the court indicated that human animators would make subjective determinations about how to animate a face, but the claims instead relied on specific and limited rules. McRO 837 F.3d at 1314. The claimed techniques here do not simply automate what was done conventionally or simply allow for known processes to be performed faster; like in McRO, the claimed automated forecasting techniques cannot and do not rely on subjective judgments, but instead achieve unique results through the unconventional application of specific rules that are included in the claims. Appeal Br. 12. We disagree with Appellant’s arguments. We disagree because, in McRO, the claims were not held to be abstract because they recited a “specific . . . improvement in computer animation” using “unconventional rules that relate[d] sub-sequences of phonemes, timings, and morph weight sets.” McRO, Inc. v. Bandai Namco Games Am. Inc., 837 F.3d 1299, 1302–03, 1307–08, 1314–15 (Fed. Cir. 2016). In McRO, “the incorporation of the claimed rules, not the use of the computer,” improved an existing technological process. Id. at 1314. Appellant does not, however, persuasively identify how the claims improve an existing technological process by use of the unconventional application of specific rules that are included in the claim. See Alice, 573 U.S. at 223 (explaining that “the claims in Diehr were patent eligible Appeal 2018-005613 Application 13/189,131 17 because they improved an existing technological process”). Rather, claim 32 concerns a “computer-implemented method” that uses multiple forecasts to generate a combined forecast. Appeal Br. 20 (Claims App.). In addition, Appellant does not direct us to any evidence that the claimed historic data gathering, application of forecast quality tests, predictive modeling using weighted forecasts, and generating steps correspond to unconventional rules. Enfish14 Appellant argues: Here, the claims are also not directed to tasks for which a computer is used in its ordinary capacity, but instead focus on an improvement to computer functionality and operation, by employing a specific data structure, used in the claims to generate an optimized combined forecast and that may be updated with the optimized combined forecast. This data structure is described in claims 21, 32, and 43 as a forecast model selection graph. Further detail with respect to this aspect is provided below with explicit reference to claim 54. Appeal Br. 13. With respect to independent system claim 54, Appellant argues: [S]imilar to Enfish, the focus of claim 54 is on the databases and how they are used to improve the efficiency of a computer process (namely, of forecasting using an optimized combined forecast). The databases are used and updated to make this computer process happen and to make the computer more efficiently achieve an improved optimized forecast, or in other words to advance computer technology (i.e., computer forecasting technology). In addition, claim 54 is directed to techniques for using these databases and instructions to more 14 Enfish, LLC v. Microsoft Corp., 822 F.3d 1327 (Fed. Cir. 2016). Appeal 2018-005613 Application 13/189,131 18 accurately analyze different types of data and achieve a more efficient forecast based on that data. Therefore, similar to Enfish, the claims improve computer functionality. Going a step further, the claimed forecasting in this application, which includes a complex process of making predictions or other statements of the future ( e.g. events whose actual outcomes have not yet been observed) based on past and present data and analysis of trends or models, even goes one or more steps beyond the database in Enfish because the claimed subject matter in this application includes complex analysis of data to produce a more efficient outcome and not just a technique of organizing data. Appeal Br. 14. We disagree with Appellant’s contentions. We disagree because, in Enfish, our reviewing court held claims directed to a self-referential logical model for a computer database patent-eligible under step one of Alice. Enfish, 822 F.3d at 1330. The disclosed technique enabled faster searching and more effective storage of data than previous methods. Id. at 1333. The court found the claims directed to “a specific improvement to the way computers operate, embodied in the self-referential table” (id. at 1336), and explained that the claims are “not simply directed to any form of storing tabular data, but instead are specifically directed to a self-referential table for a computer database” that functions differently than conventional databases. Id. at 1337. We are not persuaded by Appellant’s arguments that the claims on appeal, which merely recite receiving and processing historic data and metadata (independent claims 21, 32, 43), and independent claim 54 which recites a storage medium for storing data structures that contain data related to predictive models and metadata, are sufficiently analogous to those in Appeal 2018-005613 Application 13/189,131 19 Enfish, in which the Federal Circuit held the claims to be an improvement in the operation of the computer. In TABLE 1 below, we identify in italics the specific claim limitations in claim 32 that we conclude recite an abstract idea. We additionally identify in bold the additional (non-abstract) claim limitations that are generic computer components and techniques, and underline limitations representing extra or post-solution activity: TABLE 1 Independent Claim 32 Revised Guidance A computer-implemented method, comprising: A process (method) is a statutory subject matter class. See 35 U.S.C. § 101. [L1a] . . . on a computing device, [L1b] [receiving] . . . an identification of a forecast variable and characteristics of the forecast variable, wherein the forecast variable is used to generate a combined forecast; As claimed and described in the Specification, a computing device is a generic computer component. See, e.g., Spec. 22, ll. 1–3 (“A processing system 3354 labeled CPU (central processing unit) (e.g., one or more computer processors), may perform calculations and logic operations required to execute a program.”). Receiving information, i.e., data gathering, is insignificant extra-solution activity. Revised Guidance 55, n.31; see also MPEP § 2106.05(g). [L2] receiving historic data related to the forecast variable; Receiving information, i.e., data gathering, is insignificant extra-solution activity. Revised Guidance 55, n.31; see also MPEP § 2106.05(g). Appeal 2018-005613 Application 13/189,131 20 Independent Claim 32 Revised Guidance [L3] receiving a set of predictive models used to generate forecasts associated with the forecast variable; We conclude “receiving a set of predictive models used to generate forecasts” represents generic use of conventional computer components and techniques. See Appeal Br. 4; Spec. 3, ll. 9–11 (“The data structures may include a predictive models data structure, the predictive models data structure containing predictive data model records for specifying predictive data models . . .”); Spec. 6, ll. 8–12 (“To generate the combined forecast 206, the combined forecast engine 202 may identify a number of individual predictive models. Those individual predictive models may be provided historic data 208 as input, and those individual predictive models provide individual forecasts based on the provided historic data 208”). Thus, “receiving a set of predictive models” involves reading data records from a data structure. [L4] applying one or more forecast quality tests to the set of predictive models to filter the set of predictive models to a reduced set of predictive models, wherein the forecast quality tests analyze the set of predictive models using types of models in the set of predictive models and the characteristics of the forecast variable; “[A]pplying one or more . . . tests,” specifically for the purpose of filtering and analyzing predictive models, is an abstract idea, i.e., an observation, evaluation, judgment, opinion which could be performed as a mental process. See Revised Guidance 52. [L5] identifying a first predictive model and a “[I]dentifying . . . model[s]” is an abstract idea, i.e., an observation, evaluation, Appeal 2018-005613 Application 13/189,131 21 Independent Claim 32 Revised Guidance second predictive model of the reduced set of predictive models, wherein the first predictive model and the second predictive model are operable to provide forecasts with regard to the forecast variable and based on the historic data, wherein the first predictive model and the second predictive model have associated metadata, judgment, opinion which could be performed as a mental process. See Revised Guidance 52. wherein identifying includes [L6a] using a forecast model selection graph having a combination node that represents a combination of forecasts generated using the first predictive model and second predictive model, [L6b] a selection node that represents a plurality of forecasts available for selection, and multiple forecast nodes, each of the We conclude “using a forecast model selection graph” is an abstract idea, i.e., an observation, evaluation, judgment, opinion which could be performed as a mental process. See Revised Guidance 52. See Spec. 7, ll. 3–6 (“At [step] 310, the combined forecast engine accesses a forecast model selection graph. A forecast model selection graph incorporates both model selection and model combination into a decision based framework that, when applied to a time series, automatically selects a forecast from an evaluation of independent, individual forecasts generated.”). Representing a plurality of forecasts with “a selection node” is an abstract idea, i.e., an observation, evaluation, judgment, opinion which could be performed as a mental process. See Revised Guidance 52; Appeal 2018-005613 Application 13/189,131 22 Independent Claim 32 Revised Guidance forecast nodes representing a predictive model, and Spec. 10, ll. 15–17 (“The forecast model selection graph also includes selection nodes 406. A selection node may include a selection criteria for choosing a node forecast from among child nodes (e.g., model forecast nodes 404) of the selection node 406.”). Thus, the selection node, by choosing a node forecast using selection criteria, makes a judgement and evaluation. wherein identifying the first predictive model and the second predictive model includes [L7] determining that a first one of the forecast nodes is associated with the first predictive model and the second one of the forecast nodes is associated with the second predictive model; “[D]etermining” is an abstract idea, i.e., an observation, evaluation, judgment, opinion which could be performed as a mental process. See Revised Guidance 52. [L8] generating a first forecast using the historic data and the first predictive model; “[G]enerating a first forecast using the historic data” is an abstract idea, i.e., an observation, evaluation, judgment, opinion which could be performed as a mental process. See Revised Guidance 52. [L9] generating a second forecast using the historic data and the second predictive model; “[G]enerating a second forecast using the historic data” is an abstract idea, i.e., an observation, evaluation, judgment, opinion which could be performed as a mental process. See Revised Guidance 52. [L10a] determining a first optimized weight to apply to the first forecast by referencing the metadata “[D]etermining a first optimized weight” is an abstract idea, i.e., an observation, evaluation, judgment, opinion which could be performed as a mental process. Appeal 2018-005613 Application 13/189,131 23 Independent Claim 32 Revised Guidance associated with the first predictive model, wherein the metadata associated with the first predictive model identifies a model characteristic of the first predictive model, and wherein determining the first optimized weight to apply to the first forecast includes [L10b] performing automated analysis of the characteristics of the forecast variable and the model characteristic of the first predictive model to determine an optimum weight for the first forecast; See Revised Guidance 52. “[P]erforming . . . analysis . . . to determine an optimum weight for the first forecast” is an abstract idea, i.e., an observation, evaluation, judgment, opinion which could be performed as a mental process. See Revised Guidance 52. [L11a] determining a second optimized weight to apply to the second forecast by referencing the metadata associated with the second predictive model, wherein the metadata associated with the second predictive model identifies a model characteristic of the second predictive model, and wherein [L11b] determining the second optimized weight to apply to the second forecast includes performing automated analysis of the “[D]etermining a second optimized weight” and “performing . . . analysis . . . to determine an optimum weight” are abstract ideas, i.e., an observation, evaluation, judgment, opinion which could be performed as a mental process. See Revised Guidance 52. Appeal 2018-005613 Application 13/189,131 24 Independent Claim 32 Revised Guidance characteristics of the forecast variable and the model characteristic of the second predictive model to determine an optimum weight for the second forecast; [L12] obtaining a first optimized forecast by applying the optimized first weight to the first forecast; “[A]pplying the optimized first weight to the first forecast” to obtain an optimized forecast is an abstract idea, i.e., an observation, evaluation, judgment, opinion which could be performed as a mental process. See Revised Guidance 52. [L13] obtaining a second optimized forecast by applying the optimized second weight to the second forecast; and “[A]pplying” a weight to a forecast to obtain a second optimized forecast is an abstract idea, i.e., an observation, evaluation, judgment, opinion which could be performed as a mental process. See Revised Guidance 52. [L14] generating an optimized combined forecast by combining the first optimized forecast and the second optimized forecast. “[G]enerating an optimized combined forecast by combining [two forecasts]” is an abstract idea, i.e., an observation, evaluation, judgment, opinion which could be performed as a mental process. See Revised Guidance 52. Alternatively, the “generating . . . by combining” step can be construed as an abstract mathematical calculation in which two results are combined. Revised Guidance 52 and n.12 citing SAP America, Inc. v. InvestPic, LLC, 898 F.3d 1161, 1163 (Fed. Cir. 2018) (holding that claims to a “series of mathematical calculations based on selected information” are directed to abstract ideas). Appeal 2018-005613 Application 13/189,131 25 Spec. 22–23 (Claims App.). Under the broadest reasonable interpretation standard,15 we conclude limitations L1 through L14 recite steps that would ordinarily occur when using multiple forecasts to generate a combined forecast. See Final Act. 10. For example, weighting first and second forecasts and combining them in a weighted fashion are operations that generally occur when determining a more accurate forecast from multiple forecasts, whether initiated person-to- person, on paper, or using a computer. We determine that claim 32, overall, recites a mental process that may also be performed by pen and paper. This type of activity, i.e., using multiple forecasts to generate a combined forecast, as recited in limitations L1 through L14, for example, and aside from any computer-related aspects, includes longstanding conduct that existed well before the advent of computers and the Internet, and could be carried out by a human with pen and paper. CyberSource Corp. v. Retail Decisions, Inc., 654 F.3d 1366, 1375 (Fed. Cir. 2011) (“That purely mental processes can be unpatentable, 15 During prosecution, claims must be given their broadest reasonable interpretation when reading claim language in light of the specification as it would be interpreted by one of ordinary skill in the art. In re Am. Acad. of Sci. Tech. Ctr., 367 F.3d 1359, 1364 (Fed. Cir. 2004). Under this standard, we interpret claim terms using “the broadest reasonable meaning of the words in their ordinary usage as they would be understood by one of ordinary skill in the art, taking into account whatever enlightenment by way of definitions or otherwise that may be afforded by the written description contained in the applicant’s specification.” In re Morris, 127 F.3d 1048, 1054 (Fed. Cir. 1997). Appeal 2018-005613 Application 13/189,131 26 even when performed by a computer, was precisely the holding of the Supreme Court in Gottschalk v. Benson.”).16 Thus, under Step 2A(i), we agree with the Examiner that claim 32’s computer-implemented method recites an abstract idea. We conclude claim 32, under our Revised Guidance, recites a judicial exception of using multiple forecasts to generate a combined forecast, i.e., a mental process, and thus is an abstract idea. Step 2A(ii): Judicial Exception Integrated into a Practical Application? If the claims are directed to a judicial exception, as we conclude above, we proceed to the “practical application” Step 2A(ii) in which we 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 in combination to determine whether they integrate the exception into a practical application. 16 Our reviewing court recognizes that “[a]n abstract idea can generally be described at different levels of abstraction.” Apple, Inc. v. Ameranth, Inc., 842 F.3d 1229, 1240 (Fed. Cir. 2016). That need not and, in this case does not, “impact the patentability analysis.” Id. at 1241. Further, “[t]he Board’s slight revision of its abstract idea analysis does not impact the patentability analysis.” Id. Moreover, merely combining several abstract ideas does not render the combination any less abstract. RecogniCorp, LLC v. Nintendo Co., 855 F.3d 1322, 1327 (Fed. Cir. 2017) (“Adding one abstract idea (math) to another abstract idea . . . does not render the claim non-abstract.”); see also FairWarning IP, LLC v. Iatric Sys., Inc., 839 F.3d 1089, 1093–94 (Fed. Cir. 2016) (determining the pending claims were directed to a combination of abstract ideas). Appeal 2018-005613 Application 13/189,131 27 As to the specific limitations, we find limitations L1b (“receiving . . . an identification of a forecast variable and characteristics of the forecast variable”); and L2 (“receiving historic data related to the forecast variable”) recite insignificant data gathering. See MPEP § 2106.05(g). Data gathering, as performed by the steps or function in Appellant’s claims, is a classic example of insignificant extra-solution activity. See, e.g., In re Bilski, 545 F.3d 943, 963 (Fed. Cir. 2008) (en banc), aff’d sub nom, Bilski v. Kappos, 561 U.S. 593 (2010). On this record, we are of the view that Appellant’s claims do not operate the recited generic computer components in an unconventional manner to achieve an improvement in computer functionality. See, e.g., limitations [L1a] (“on a computing device”) and [L3] (“receiving a set of predictive models used to generate forecasts associated with the forecast variable”) in TABLE 1; and see MPEP § 2106.05(a). We find each of limitations L4 through L14 recite abstract ideas as identified in Step 2A(i), and L1b and L2 recite extra-solution activity, supra, and none of the limitations integrate the judicial exception of using multiple forecasts to generate a combined forecast into a practical application as determined under one or more of the MPEP sections cited above. The claim as a whole merely uses instructions to implement the abstract idea on a computer or, alternatively, merely uses a computer as a tool to perform the abstract idea. Under analogous circumstances, the Federal Circuit has held that “[t]his is a quintessential ‘do it on a computer’ patent: it acknowledges that [such] data . . . was previously collected, analyzed, manipulated, and Appeal 2018-005613 Application 13/189,131 28 displayed manually, and it simply proposes doing so with a computer. We have held such claims are directed to abstract ideas.” Univ. of Fla. Research Found., Inc. v. Gen. Elec. Co., 916 F.3d 1363, 1367 (Fed. Cir. 2019); see also Elec. Power Grp., LLC v. Alstom S.A., 830 F.3d 1350, 1351 (Fed. Cir. 2016) (“Though lengthy and numerous, the claims do not go beyond requiring the collection, analysis, and display of available information in a particular field, stating those functions in general terms, without limiting them to technical means for performing the functions that are arguably an advance over conventional computer and network technology.”). Therefore, the claim as a whole merely uses instructions to implement the abstract idea on a computer or, alternatively, merely uses a computer as a tool to perform the abstract idea. Thus, on this record, Appellant has not shown an improvement or practical application under the guidance of MPEP section 2106.05(a) (“Improvements to the Functioning of a Computer or to Any Other Technology or Technical Field”) or section 2106.05(e)(“Other Meaningful Limitations”). Nor does Appellant advance any arguments in the Brief(s) that are directed to the Bilski machine-or-transformation test, which would only be applicable to the method (process) claims on appeal. See MPEP §§ 2106.05(b) (Particular Machine) and 2106.05(c) (Particular Transformation). Therefore, we conclude the abstract idea is not integrated into a practical application, and thus the claim is directed to the judicial exception. Step 2B — “Inventive Concept” or “Significantly More” If the claims are directed to a judicial exception, and not integrated into a practical application, as we conclude above, we proceed to the Appeal 2018-005613 Application 13/189,131 29 “inventive concept” step. For Step 2B we must “look with more specificity at what the claim elements add, in order to determine ‘whether they identify an “inventive concept” in the application of the ineligible subject matter’ to which the claim is directed.” Affinity Labs of Tex., LLC v. DIRECTV, LLC, 838 F.3d 1253, 1258 (Fed. Cir. 2016) (citations omitted). In applying step two of the Alice analysis, our reviewing court guides 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. Ultramercial, Inc. v. Hulu, LLC, 772 F.3d 709, 715 (Fed. Cir. 2014). We look to see whether there are any “additional features” in the claims that constitute an “inventive concept,” thereby rendering the claims eligible for patenting even if they are directed to an abstract idea. Alice, 573 U.S. at 221. Those “additional features” must be more than “well-understood, routine, conventional activity.” Mayo, 566 U.S. at 79. Limitations referenced in Alice that are not enough to qualify as “significantly more” when recited in a claim with an abstract idea include, as non-limiting or non-exclusive examples: adding the words “apply it” (or an equivalent) with an abstract idea17; mere instructions to implement an abstract idea on a computer18; or requiring no more than a generic computer 17 Alice, 573 U.S. at 221–23. 18 Alice, 573 U.S. at 222–23, e.g., simply implementing a mathematical principle on a physical machine, namely a computer. Appeal 2018-005613 Application 13/189,131 30 to perform generic computer functions that are well-understood, routine and conventional activities previously known to the industry.19 The patent eligibility inquiry may contain underlying issues of fact. Mortg. Grader, 811 F.3d at 1325. In particular, “[t]he question of whether a claim element or combination of elements is well-understood, routine and conventional to a skilled artisan in the relevant field is a question of fact.” Berkheimer, 881 F.3d at 1368. With respect to this phase of the analysis, Appellant urges reversal of the Examiner’s rejection based upon the holding in Bascom.20 Bascom Appellant argues “an inventive concept may be found in the non- conventional and non-generic arrangement of elements of the claims that automatically generate an optimized combined forecast, corresponding to weighted combinations of forecasts that are filtered and selected for optimized prediction of future outcomes based on historic data and predictive models.” Appeal Br. 18. Appellant further contends: Here, the claimed techniques make use of historical data and predictive models to select and identify appropriate forecasts through the application of quality tests and metadata to use in an optimization process for combining forecasts to generate an optimized combined forecast. Although any one or more of these aspects may have been known or present in the 19 Alice, 573 U.S. at 225 (explaining using a computer to obtain data, adjust account balances, and issue automated instructions involves computer functions that are well-understood, routine, conventional activities). 20 See Bascom Global Internet Services, Inc. v. AT&T Mobility LLC, 827 F.3d 1341 (Fed. Cir. 2016). Appeal 2018-005613 Application 13/189,131 31 prior art, which Appellants do not concede, Appellant submits that the specific order, arrangement, use, and combination of these aspects is non-conventional, non-generic, and otherwise not well-known — these aspects have not been applied in prior optimization techniques in the combination specified in the claims and are unconventional, novel, and nonobvious, as described above. Like in BASCOM, the instant claims, through their non- generic ordering and combination provide an inventive use of the alleged abstract ideas. As such, the claims amount to significantly more than the alleged abstract idea. The rejections should be reversed for at least this additional reason. Appeal Br. 19. We are not persuaded by Appellant’s arguments. We are not persuaded because in Bascom, the claims were directed to the inventive concept of providing customizable Internet-content filtering which, under Step 2 of the Alice analysis, was found to transform the abstract idea of filtering content into a patent-eligible invention. Although the underlying idea of filtering Internet content was deemed to be abstract, under step 2 of the Alice analysis, the claims carved out a specific location for the filtering system, namely a remote Internet service provider (ISP) server, and required the filtering system to give users the ability to customize filtering for their individual network accounts. Bascom Global Internet Services, Inc. v. AT&T Mobility LLC, 827 F.3d 1341, 1349 (Fed. Cir. 2016). In response to Appellant’s reliance upon Bascom, supra, there is no evidence of record to substantiate the assertion that the claims recite non- conventional and non-generic arrangement of known, conventional elements, as in Bascom. Moreover, we find no analogy between Appellant’s Appeal 2018-005613 Application 13/189,131 32 claimed method for using multiple forecasts to generate a combined forecast and the Internet content filtering claims in Bascom. Evaluating representative claim 32 under step 2 of the Alice analysis, we conclude it lacks an inventive concept that transforms the abstract idea of using multiple forecasts to generate a combined forecast into a patent- eligible application of that abstract idea. As evidence of the conventional nature of the recited “computing device” and “receiving a set of predictive models used to generate forecasts associated with the forecast variable” in method claim 32; and “processor” in system claim 43, the Specification discloses, “[a] processing system 3354 labeled CPU (central processing unit) (e.g., one or more computer processors), may perform calculations and logic operations required to execute a program.” Spec. 22, ll. 1–3. Further, we conclude limitation [L3] “receiving a set of predictive models used to generate forecasts” represents generic use of conventional computer components and techniques. See Spec. 3, ll. 9–11 (“The data structures may include a predictive models data structure, the predictive models data structure containing predictive data model records for specifying predictive data models . . .”); Spec. 6, ll. 8–12 (“To generate the combined forecast 206, the combined forecast engine 202 may identify a number of individual predictive models. Those individual predictive models may be provided historic data 208 as input, and those individual predictive models provide individual forecasts based on the provided historic data 208”). Thus, “receiving a set of predictive models” involves reading data records from a data structure and subjecting the data to routine computer processing. Appeal 2018-005613 Application 13/189,131 33 Therefore, because the Specification describes the additional elements in general terms, without describing the particulars, we conclude the claim limitations may be broadly but reasonably construed as reciting conventional computer components and techniques, particularly in light of Appellant’s Specification, as quoted above.21 Accordingly, in light of the foregoing, we conclude, under the Revised Guidance, that each of Appellant’s claims 21–24, 27, 29, 30, 32–35, 38, 40, 41, 43–46, 49, 51, 52, and 54, considered as a whole, is directed to a patent-ineligible abstract idea that is not integrated into a practical application and does not include an inventive concept. Accordingly, we sustain the Examiner’s § 101 rejection of independent claim 32, and grouped claims 21–24, 27, 29, 30, 33–35, 38, 40, 41, 43–46, 49, 51, 52, and 54 which fall therewith. See Claim Grouping, supra. REPLY BRIEF To the extent Appellant may advance new arguments in the Reply Brief (Reply Br. 1–11) not in response to a shift in the Examiner’s position in the Answer, arguments raised in a Reply Brief that were not raised in the Appeal Brief or are not responsive to arguments raised in the Examiner’s Answer will not be considered except for good cause (see 37 C.F.R. § 41.41(b)(2)), which Appellant has not shown. 21 Claim terms are to be given their broadest reasonable interpretation, as understood by those of ordinary skill in the art and taking into account whatever enlightenment may be had from the Specification. In re Morris, 127 F.3d 1048, 1054 (Fed. Cir. 1997). Appeal 2018-005613 Application 13/189,131 34 CONCLUSION Under our Revised Guidance, governed by relevant case law, claims 21–24, 27, 29, 30, 32–35, 38, 40, 41, 43–46, 49, 51, 52, and 54 are patent- ineligible under 35 U.S.C. § 101, and we sustain the rejection. DECISION SUMMARY Claims Rejected 35 U.S.C. § Basis / References Affirmed Reversed 21–24, 27, 29, 30, 32–35, 38, 40, 41, 43–46, 49, 51, 52, 54 101 Subject Matter Eligibility 21–24, 27, 29, 30, 32–35, 38, 40, 41, 43–46, 49, 51, 52, 54 FINALITY AND 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)(1)(iv). See 37 C.F.R. § 41.50(f). AFFIRMED Copy with citationCopy as parenthetical citation