Ex Parte 7567937 et alDownload PDFPatent Trial and Appeal BoardMar 21, 201495001588 (P.T.A.B. Mar. 21, 2014) 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. 95/001,588 03/29/2011 7567937 9027.139.IP937 1080 7590 04/01/2014 GEORGE LIKOUREZOS, ESQ. 261 WASHINGTON AVENUE ST. JAMES, NY 11780 EXAMINER DESAI, RACHNA SINGH ART UNIT PAPER NUMBER 3992 MAIL DATE DELIVERY MODE 04/01/2014 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 PATENT TRIAL AND APPEAL BOARD ____________ EBAY, INC. Requester and Respondent v. XPRT VENTURES, LLC. Patent Owner and Appellant ____________ Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 Technology Center 3900 ____________ Before KEVIN F. TURNER, WILLIAM V. SAINDON, and JENNIFER L. McKEOWN, Administrative Patent Judges. McKEOWN, Administrative Patent Judge. DECISION ON APPEAL Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 2 Patent Owner XPRT Ventures, LLC. (“Patent Owner”) appeals under 35 U.S.C. §§ 134(b) and 315(a) the Examiner’s decision to reject claims 1 and 11. 1 Third Party Requestor eBay, Inc. responds to the Patent Owner’s appeal. 2 We have jurisdiction under 35 U.S.C. §§ 134(b) and 315(a). We AFFIRM. STATEMENT OF THE CASE United States Patent 7,567,937 (hereinafter the “’937 Patent”), issued to George Likourezos and Michael Anthony Scaturro on July 28, 2009, is the subject of the current inter partes reexamination. The ’937 Patent along with five other patents are the subject of a civil action in the United States District Court for the District of Delaware, which is currently stayed. See App. Br. 1-2. Additionally, the Board of Patent Appeals and Interferences has decided appeals during the original prosecution of US Patent No. 7,483,856 (hereinafter the ’856 Patent) and the ’937 Patent. See App. Br. 2. 1 See Patent Owner’s Revised Appeal Brief, filed March 1, 2013 (hereinafter “PO App. Br.”), at 2; Examiner’s Answer, mailed June 25, 2013, incorporating by reference the Examiner’s Right of Appeal Notice, mailed October 1, 2012 (hereinafter “RAN”). The Patent Owner also filed a reply brief. See Patent Owner’s Rebuttal Brief, filed July 29, 2013 (hereinafter “PO Reply Br.”). 2 See Third Party Requestor’s Respondent Brief, filed April 1, 2013 (hereinafter “TPR Resp. Br.”). Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 3 THE INVENTION The ’937 Patent generally relates to a computerized electronic auction payment system and method for effecting a real-time payment for an item sold via an electronic auction web site. ’937 Patent, Abstract and 1:15-21. Claim 1, which is illustrative of the appealed subject matter, has not been amended during reexamination and reads as follows: 1. A method for automatically effecting payment for a user of an electronic auction web site maintained by an electronic auction system, said method comprising the steps of: maintaining a plurality of electronic payment accounts by an electronic auction payment system integrated with said electronic auction system, each of said plurality of electronic payment accounts storing funds therein and each being used for user transactions in the electronic auction system; receiving authorization from the user prior to the beginning of an electronic auction provided by the electronic auction web site to execute an automatic payment method after the conclusion of the electronic auction, wherein the automatic payment method includes at least automatically deducting funds from one of the electronic payment accounts corresponding to the user of the electronic auction web site; and executing the automatic payment method for the user after the conclusion of the electronic auction, if the user has provided authorization prior to the beginning of the electronic auction for executing the automatic payment method, the executing step being performed by at least one processor and comprising the steps of: automatically deducting funds from the payment account corresponding to the user of the electronic auction web site; and automatically transferring at least a portion of the deducted funds into at least one account for automatically effecting payment for the user of the electronic auction web site, wherein at least one payment source corresponding to the user of the electronic auction web site is used to obtain funds Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 4 for storing within the payment account prior to deducting funds from the payment account. App. Br., Claims App’x. PRIOR ART REJECTIONS The Examiner relies on the following references: Woolston 5,845,265 Dec. 1, 1998 Churchill 7,461,022 Dec. 2, 2008 Hutchison 7,761,385 July 20 2010 The Examiner adopts, or adopts with modification, the following rejections proposed by the Requester: 1. The rejection of Claims 1 and 11 under 35 U.S.C. §102(e) as being anticipated Hutchison. 2. The rejection of Claims 1 and 11 under 35 U.S.C. §103(a) as being unpatentable over Hutchison and Churchill. 3. The rejection of Claims 1 and 11 under 35 U.S.C. 102(e) as anticipated by Churchill. 4. The rejection of Claims 1 and 11 under 35 U.S.C. 102(b) and 102(e) as anticipated by Woolston. ISSUES 1. Did the Examiner err by failing to consider the evidence submitted after the Action Closing Prosecution? 2. Can the Patent Owner change the scope of claim terms by disavowing certain features rather than by amending the claim? Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 5 3. Did the Examiner incorrectly rely on separate and distinct embodiments of each prior art reference for the anticipation rejections? 4. Did the Examiner err by rejecting the instant claims as anticipated under 35 U.S.C. § 102 by each of Hutchison, Churchill, and Woolston? 5. Did the Examiner err by rejecting the instant claims as obvious under 35 U.S.C. § 103(a) in view of the cited combination of Hutchison and Churchill? PRINCIPLES OF LAW “To anticipate a claim, a prior art reference must disclose every limitation of the claimed invention, either explicitly or inherently.” In re Schreiber, 128 F.3d 1473, 1477 (Fed. Cir. 1997). “But disclosure of each element is not quite enough—[the Federal Circuit] has long held that ‘[a]nticipation requires the presence in a single prior art disclosure of all elements of a claimed invention arranged as in the claim.’” Net MoneyIN, Inc. v. VeriSign, Inc., 545 F.3d 1359, 1371 (Fed. Cir. 2008)(citations omitted). The Federal Circuit has also explained that the inquiry is “not constrained to proceed example-by-example when reviewing an allegedly anticipating prior art reference. Rather, the [reviewer] must, while looking at the reference as a whole, conclude whether or not that reference discloses all elements of the claimed invention arranged as in the claim.” Net MoneyIN, 545 F.3d at 1369 n. 5. Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 6 ANALYSIS EVIDENCE OF SECONDARY CONSIDERATIONS The Patent Owner argues that the Examiner erred by not considering evidence submitted after the Action Closing Prosecution. See PO App. Br. 18-19; see also PO Reply Br. 1-2. However, as the Patent Owner is aware, the Examiner’s refusal to enter evidence submitted after the Action Closing Prosecution into the record is a petitionable matter. See 37 C.F.R. §1.181; see also Petition Under 37 C.F.R. §1.181 For the United States Patent and Trademark Office to Reconsider Evidence of Secondary Considerations, dated November 26, 2012. Because the Examiner did not enter the evidence, and because the Central Reexamination Unit denied the Patent Owner’s petition to enter the evidence, the evidence is not of record and not properly before the Board. See RAN 7-8; Decision on Petition For Entry of Affidavit After ACP, dated Apr. 22, 2013 (denying entry of the evidence for failing to comply with 37 C.F.R. § 1.116). Therefore, we will not consider this evidence submitted by the Patent Owner after the Action Closing Prosecution. 3 3 The Patent Owner also acknowledges that the rules require establishing good and sufficient reasons as to why the evidence was not presented prior to the Action Closing Prosecution, but “disagrees with the Office’s rules” and asserts that the Patent Owner “should not have to establish good and sufficient reasons why the evidence was not submitted earlier.” PO Reply Br. 1-2. Mere disagreement with the Patent Office’s rules does not permit the Patent Owner to disregard them. The Patent Owner here, like all other Patent Owners, is bound by the case law and rules governing reexamination practice before the Patent Office. Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 7 DISAVOWAL OF CLAIM SCOPE The Patent Owner allegedly disavows “the claim scope of certain claim terms” to distinguish over the cited prior art. See PO Reply Br. 2-3, 5- 7, and 12-13. For example, the Patent Owner herein clearly and unambiguously disavows the full scope of its claim terms ‘payment account’ and ‘payment accounts’ in its independent claims, i.e., Claims 1 and 11, from including bank accounts; payment accounts which can be used to earn reward points and where the earned points can also be applied to the buyer's payment account to pay for products; and payment accounts which can keep track of points, money and/or alternative forms of currency earned via an incentive system and can be redeemed via online auctions. PO Reply Br. 5. Underlying these arguments though, is the erroneous premise that claim scope can be altered during prosecution, such as in a reexamination, by “clearly and unambiguously” disavowing particular features, instead of amending the claim. To the contrary, it is well established that the appropriate method for changing the scope of a claim during prosecution is claim amendment. For example, while rejecting the contention that a loophole would be created by limiting intervening rights only to claim amendments, not disavowals, the Federal Circuit noted …If, in reexamination, an examiner determines that particular claims are invalid and need amendment to be allowable, one would expect an examiner to require amendment rather than accept argument alone. Indeed, Congress may well have expected that changes in claim scope during reexamination would ordinarily be made by amendment, which would avoid the risk of creating a loophole in the intervening rights defense. Moreover, if an argument does suffice to overcome a rejection, Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 8 it is probably because the claims at issue are not unallowable. Marine Polymer Technologies, Inc. v. Hemcon, Inc., 672 F.3d 1350, 1364 (CAFC 2012). Where, as here, the Examiner has rejected the claims as unpatentable over the cited prior art, amendment may be needed to distinguish the claims. The Patent Owner cannot circumvent this method by affirmatively stating “a clear and unambiguous” disavowal. Accordingly, we agree with the Requestor’s position that the Patent Owner cannot change the scope of the claim terms through disavowal and find each of the arguments presented based on disavowal of claim scope (e.g., PO Reply Br. 2-13) unpersuasive. 4 THE ANTICIPATION REJECTION OVER HUTCHISON Claims 1 and 11 The Patent Owner maintains that the Examiner improperly relied on separate and distinct embodiments of Hutchinson to reject the instant claims as anticipated. PO App. Br. 24-28. According to the Patent Owner, Hutchison includes, and the Examiner relies on, at least (1) the “automatically deducted” embodiments of Fig. 8A and Fig. 9C, and (2) a “buyer indicates a desire to purchase” embodiment (Figs. 11A-11E), and (3) a “seller is an auction website” embodiment. PO App. Br. 6-9. 4 Because we find the Patent Owner’s ability to change the claim scope through disavowals unpersuasive, we need not reach the Patent Owner’s dependent argument that the Requestor is not permitted to present new substantial new questions of patentability of the changed claim scope. See e.g., Reply Br. 2-4. Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 9 The Patent Owner characterizes the “automatically deducted” embodiments as “separate and distinct” from the “buyer indicates a desire to purchase” embodiment because one requires user authorization at the time of purchase and the other do not. PO App. Br. 6-8. Then the Patent Owner argues that the “seller is an auction website” embodiments are also mutually exclusive from the other embodiments because it is “not described with reference to Figures 11A-11E and use of language such as in “one actual embodiment….” See PO App. Br. 8-9. These arguments lack merit. Particularly, as the Requestor explains, the Patent Owner improperly fails to consider the reference as a whole. TPR Resp. Br. 3-5. Hutchison’s Brief Description of the Figures describes that Fig. 8C depicts an exemplary webpage for applying for a virtual payment account with Hutchison’s system. Hutchison, 4:31-33. Fig. 9C shows an exemplary webpage for customizing that virtual payment account. Hutchison 4:34-36. Figs. 11A- 11E then outline how to use the created and customized virtual payment account to purchase goods, services, and/or content. Hutchison, 4:41-43; see also TPR Resp. Br. 5, n. 1. Given these disclosures, it is readily apparent then that these alleged embodiments are not separate and distinct and instead are directly related. Similarly, we are also not persuaded by the Patent Owner that the alleged “seller is an auction website” embodiments are separate and distinct. See PO App. Br. 8-9. As outlined in Figs. 11A-11E, Hutchison to the contrary describes that the virtual payment system can be used to purchase products over the Internet, including for example, an auction website. See TPR Resp. Br. 5 (noting that the “seller is an auction website” embodiment Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 10 is within the “ordering products” section of the Specification). These disclosures thus do not warrant the Patent Owner’s characterizations as separate and distinct embodiments. Moreover, as the Examiner identifies, Hutchison combines the claim limitations as done in the instant claims. RAN 46-48. Therefore, we are not persuaded that the Examiner improperly relied upon separate and distinct embodiments in rejecting the instant claims as anticipated. The Patent Owner next argues that Hutchison fails to disclose “automatically transferring at least a portion of the deducted funds into at least one account for automatically effecting payment.” 5 PO App. Br. 10-15. Namely, according to the Patent Owner, Hutchison only discloses deducting the funds from an account, not transferring the deducted funds to the seller’s account. We disagree. First, we note that the Patent Owner fails to consider Hutchison as a whole, but instead addresses each portion cited by the Examiner separately. 6 See PO App. Br. 10-14. Nevertheless, Hutchison discloses that the disclosed account, whether pre-paid or credit, is used to make purchases. See PO App. Br. 10-14 (citing the portions of Hutchison relied upon by the Examiner). Specifically, with respect to a pre-paid account, Hutchison 5 We apply the BPAI’s construction of “automatically,” “funds,” and “account” from the appeal decisions during the original prosecution of the ’856 and ’937 Patents. See Decision On Appeal, Appeal No. 2007-2742, dated August 22, 2007, p. 4-5 and Decision on Appeal, Appeal No. 2007- 3540 dated August 22, 2007, p.3-4. 6 We also note, as the Requestor points out, the Patent Owner expressly agrees with the Examiner’s characterization of the payment method will execute automatically, but then later argues that Hutchison fails to disclose automatic transfer of funds. TPR Resp. Br. 6. Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 11 describes that “[p]urchases are automatically deducted from your pre-paid balance….” Hutchison Fig. 8A and 9C (emphasis added); see also PO App. Br. 10 (citing the same). A skilled artisan would understand that once the funds are automatically deducted for a purchase in Hutchison (which the Patent Owner concedes), the deducted funds would be automatically transferred to the seller. 7 The absence of the exact words “automatically transfer” does not preclude Hutchison’s disclosure of the limitation. See In re Bond, 910 F.2d 831, 832 (Fed. Cir. 1990)(stating that there is no ipsissimis verbis test for determining whether a reference discloses a claim element). Additionally, as the Patent Owner notes, Hutchison describes that the automatic payment method is akin to a credit processing system. PO App. Br. 12-13 (citing Hutchison 24:55-66). We disagree that this teaches away from the claimed automatic transfer of funds to effect payment. To the contrary, we agree with the Requestor’s position that funds are automatically transferring in the credit processing system, i.e., the seller received the funds for the purchase. See TPR Resp. Br. 7-8. Therefore, we agree with the Examiner and Requestor that Hutchison discloses “automatically transferring… deducted funds…for automatically effecting payment.” The Patent Owner’s remaining arguments rely on its impermissible claim scope disavowals. See, e.g., PO Reply Br. 3-14. As discussed above, 7 We note that we similarly found in an appeal of the ’856 Patent (regarding different prior art) that, in the online auction context, a purchase is a debit (or deduction) to the purchaser and a credit to the seller. See Decision on Request for Rehearing, Appeal No. 2007-2742, dated January 10, 2008. Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 12 we disagree that the Patent Owner can change the scope of the claims through disavowal and therefore find these arguments also unpersuasive. Accordingly, we are not apprised error in the Examiner’s rejection of claims 1 and 11 are anticipated by Hutchison and affirm the rejection. THE ANTICIPATION REJECTION OVER CHURCHILL Claims 1 and 11 The Patent Owner asserts that the Examiner erred in relying on Churchill’s allegedly separate and distinct embodiments in rejecting the claims as anticipated. PO App. Br. 22-25. Similar to the same argument discussed above with respect to Hutchison, we find it unconvincing. In particular, the Patent Owner argues that the Examiner relied on at least three different “separate and distinct” embodiments. PO App. Br. 22- 25. The Patent Owner supports its contentions by merely citing passages of the Specification that state, for example, “[i]n another embodiment.” PO App. Br. 22-23. As noted above with respect to Hutchison, the Patent Owner fails to present any supporting argument or evidence that Churchill in fact discloses the alleged separate and distinct embodiments. To the contrary, as explained by the Requestor, Churchill describes an overarching invention: ‘[the] present invention relates to online auctions via user accounts, having one or more different types of payment units (e.g., incentive points, money and associated point or cash credit), from which payment transactions are conducted.’ Churchill at 1: 13-17. Churchill discloses that different aspects of this ‘present invention’ can be adapted to include different features. See Ex parte Ness No. 2010-005274, appl. no. 10/978,753 at n.2 (finding the Examiner's reference to ‘multiple embodiments’ Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 13 appropriate where the embodiments provided further illustration of the main embodiment). For example, Churchill discloses that users can bid on auctions manually, or alternatively, through an automated bidding agent. See Churchill at 44:49-49:28. Churchill also discloses that the payment unit can be incentive points or cash. See Churchill at 1:12-17. With respect to the types of auctions supports, Churchill discloses standard auction formats, Dutch auctions, progressive auctions, Buy-or-Bid auctions, and declining bid auctions. See generally Churchill at 26:43-42:24. TPR Resp. Br. 11-12. We agree with the Requestor’s position. The Patent Owner fails to persuasively respond or provide any indication as to why the identified at least alleged embodiments are “separate and distinct” embodiments. See e.g., PO Reply Br. 14-15 (asserting that the Examiner relied on multiple separate and distinct embodiments and failed present a prima facie case of anticipation because the Examiner relied on multiple embodiments without explaining why the alleged embodiments are separate and distinct). We are therefore not persuaded that the Examiner improperly relied on separate and distinct embodiments of Churchill in rejecting the claims as anticipated. The Patent Owner also asserts that the Examiner erred in finding that Churchill discloses “wherein at least one payment source corresponding to the user of the electronic auction web site is used to obtain funds for storing within the payment account prior to deducting funds from the payment account,” as recited in claims 1 and 11. PO App. Br. 25-27. In particular, the Patent Owner identifies that Churchill’s funds, i.e. points, “are obtained from non-payment sources (e.g. from merchants or the Yahoo! Auction system).” PO App. Br. 25-26. According to the Patent Owner, the disclosed Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 14 sources, such as cash, is not at least one payment source. PO App. Br. 26- 27. We disagree. As admitted by the Patent Owner, “[Churchill’s] payment units that can be used can be actual points (and credit points) or cash (and credit).” PO App. Br. 26-27. Further, the Examiner finds that Churchill expressly discloses that a user may buy Yahoo! Points with payment units (such as cash) and additionally discloses using cash instead of points. See RAN 37 (citing Churchill 21:15-16 and 18:32-41); see also TPR Resp. Br. 12-13. We thus agree with the Examiner that Churchill discloses the claimed at least one payment source limitation. Next, the Patent Owner contends that Churchill fails to disclose automatically transferring at least a portion of the deducted funds for automatically effecting payment. This argument is unavailing. The Patent Owner again admits that Churchill discloses automatically deducting funds for auction purchases, but maintains that Churchill does not disclose transferring funds to the seller. See e.g., PO App. Br. 29. Churchill, though, describes that “the Yahoo! Auction System allows the human bidder to automate his actions so that he does not have to be physically present at [the] computer to locate an auction, submit a bid, or finalize a sale.” Churchill 45:1-4. In other words, the user submits a bid prior to the conclusion of the auction and upon conclusion the sale is finalized automatically. Notably, the funds are deducted for a sale, i.e., payment to the seller. We therefore agree with the Examiner and Requestor that Churchill discloses the claimed transfer of funds. Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 15 The Patent Owner’s remaining arguments rely on its impermissible claim scope disavowals. See e.g., PO Reply Br. 3-14. As discussed above, we disagree that the Patent can change the scope of the claims through disavowal and therefore find these arguments also unpersuasive. Accordingly, we conclude that the Examiner did not err in rejecting claims 1 and 11as anticipated by Churchill and affirm the rejection. THE OBVIOUSNESS REJECTION OVER CHURCHILL AND HUTCHISON Claims 1 and 11 The Patent Owner presents the same arguments here as those presented with respect to the Churchill and Hutchison anticipation rejections. See, e.g., PO App. Br. 15-18. As discussed above, we disagree with the Patent Owner and see no error in the Examiner’s findings. Accordingly, we affirm the rejection of claims 1 and 11 as unpatentable over Churchill and Hutchison. THE ANTICIPATION REJECTION OVER WOOLSTON Claims 1 and 11 The Patent Owner again presents arguments that the Examiner improperly relied on at least two separate and distinct embodiments to support the Woolston anticipation rejection. See PO App. Br. 29-32. As discussed above with respect to the same arguments applied to Hutchison and Churchill, the Patent Owner fails to explain why these alleged embodiments are “separate and distinct.” See PO App. Br. 29-32. Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 16 We agree with the Requestor’s position that the embodiments are directly related. TPR Resp. Br. 14-15. Woolston describes two embodiments, one relating to posting items for sale at a consignment node and another relating to posting items to a market maker computer through a remote terminal. TPR Resp. Br. 14-15 (citing Woolston Figs. 1 and 12; 9:66-10:32; 14:51-53). Contrary to the Patent Owner’s assertions though, Woolston directly relates the two disclosed embodiments. “Much of the market maker computers 800 functionality is disclosed above in the consignment node functionality.” Woolston 19:34-36; see also Woolston 14:57-63. We therefore agree with the Requestor’s position that Woolston’s embodiments are not separate and distinct and were properly relied upon by the Examiner. The Patent Owner’s remaining arguments rely on its impermissible claim scope disavowals. See, e.g., PO Reply Br. 3-14. As discussed above, we disagree that the Patent can change the scope of the claims through disavowal and therefore find these arguments also unpersuasive. Accordingly, for at least the reasons discussed above, we conclude that the Examiner did not err in rejecting claims 1 and 11as anticipated by Woolston and affirm the rejection. DECISION The Examiner’s decision to reject claims 1 and 11 is affirmed. Requests for extensions of time in this inter partes reexamination proceeding are governed by 37 C.F.R. § 1.956. See 37 C.F.R. § 41.79. Appeal 2014-000482 Reexamination Control 95/001,588 Patent 7,567,937 B2 17 Pursuant to 37 C.F.R. § 41.79(d), this decision is final for the purpose of judicial review. A party seeking judicial review must timely serve notice on the Director of the United States Patent and Trademark Office. See 37 C.F.R. §§ 90.1 and 1.983. AFFIRMED PATENT OWNER: GEORGE LIKOUREZOS, ESQ. 261 WASHINGTON AVE. ST. JAMES, NY 11780 THIRD-PARTY REQUESTER: DENTONS US LLP 1530 PAGE MILL ROAD SUITE 200 PALO ALTO, CA 94304 lb Copy with citationCopy as parenthetical citation