Groupon, Inc.Download PDFPatent Trials and Appeals BoardApr 23, 202014454695 - (D) (P.T.A.B. Apr. 23, 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. 14/454,695 08/07/2014 Tuomas Santeri Artman 058407/448096 7779 826 7590 04/23/2020 ALSTON & BIRD LLP BANK OF AMERICA PLAZA 101 SOUTH TRYON STREET, SUITE 4000 CHARLOTTE, NC 28280-4000 EXAMINER KANERVO, VIRPI H ART UNIT PAPER NUMBER 3691 NOTIFICATION DATE DELIVERY MODE 04/23/2020 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): usptomail@alston.com PTOL-90A (Rev. 04/07) UNITED STATES PATENT AND TRADEMARK OFFICE ____________ BEFORE THE PATENT TRIAL AND APPEAL BOARD ____________ Ex parte TUOMAS SANTERI ARTMAN, JYRI ENGESTROM, and ULF SCHWEKENDIEK ____________ Appeal 2019-000552 Application 14/454,695 Technology Center 3600 ____________ Before JOHN A. EVANS, JUSTIN BUSCH, and JAMES W. DEJMEK, Administrative Patent Judges. EVANS, Administrative Patent Judge. DECISION ON APPEAL STATEMENT OF THE CASE Jurisdiction Appellant1 seeks our review under 35 U.S.C. § 134(a) of the Examiner’s final rejection of Claims 1–24, all pending claims. Appeal Br. 6. We have jurisdiction under 35 U.S.C. § 6(b). 1 We use the word “Appellant” to refer to “applicant” as defined in 37 C.F.R. § 1.42 (2017). Appellant states the real party in interest is Groupon, Inc. Appeal Br. 2. Appeal 2019-000552 Application 14/454,695 2 We AFFIRM.2 Summary of the Invention The claims relate to systems and methods to facilitate interactions between a merchant device, a central system, and a consumer device. See Abstract. Invention Claims 1 and 13 are independent. Claims App’x. An understanding of the invention can be derived from a reading of Claim 1, which is reproduced in Table 1, infra. Rejections3 Claims 1–24 stand rejected under 35 U.S.C. § 101 as directed to patent-ineligible subject matter. Final Act. 4–5.4 2 Rather than reiterate the arguments of Appellant and the Examiner, we refer to the Appeal Brief (filed May 31, 2018, “Appeal Br.”), the Reply Brief (filed October 29, 2018, “Reply Brief”), the Examiner’s Answer (mailed August 28, 2018, “Ans.”), the Final Action (mailed May 9, 2017, “Final Act.”), and the Specification (filed August 7, 2014, “Spec.”) for their respective details. 3 The present application was examined under the AIA first inventor to file provisions. Final Act. 2. 4 The Examiner’s analysis of this ground of rejection was substantially repeated in the Answer as a “New Ground of Rejection.” Compare Final Act. 4–5, to Ans. 3–7. Appeal 2019-000552 Application 14/454,695 3 ANALYSIS We have reviewed the rejections of Claims 1–24 in light of Appellant’s arguments that the Examiner erred. We have considered in this Decision only those arguments Appellant actually raised in the Briefs. Any other arguments which Appellant could have made but chose not to make in the Briefs are deemed to be waived. See 37 C.F.R. § 41.37(c)(1)(iv). We provide the following explanation to highlight and address specific arguments and findings primarily for emphasis. We consider Appellant’s arguments as they are presented in the Appeal Brief and the Reply Brief. CLAIMS 1–24: INELIGIBLE SUBJECT MATTER Appellant principally argues the merits of independent Claim 1 and argues independent Claim 13 is substantially similar. Cf. Appeal Br. 16, 18, and 20. Therefore, we decide the appeal of the § 101 rejection on the basis of illustrative Claim 1 and refer to the rejected claims collectively herein as “the claims.” See 37 C.F.R. § 41.37(c)(1)(iv); In re King, 801 F.2d 1324, 1325 (Fed. Cir. 1986). We reviewed the record de novo. SiRF Tech., Inc. v. Int’l Trade Comm’n, 601 F.3d 1319, 1331 (Fed. Cir. 2010) (“Whether a claim is drawn to patent-eligible subject matter is an issue of law that we review de novo.”). Based upon our review of the record in light of recent policy guidance with respect to patent-eligible subject matter rejections under 35 U.S.C. § 101,5 we affirm the rejection of Claims 1–24 for the specific reasons discussed 5 See 2019 Revised Patent Subject Matter Eligibility Guidance, 84 Fed. Reg. 50 (Jan. 7, 2019) (“Revised Guidance”). Appeal 2019-000552 Application 14/454,695 4 below. Preemption Appellant contends the claims do not pose any risk of preempting, or monopolizing, any idea the Office may identify as abstract. See App. Br. 17–18. Although preemption may denote patent ineligibility, its absence does not demonstrate patent eligibility. See FairWarning, IP, LLC v. Iatric Sys., Inc., 839 F.3d 1089, 1098 (Fed. Cir. 2016). For claims covering a patent-ineligible concept, preemption concerns “are fully addressed and made moot” by an analysis under the Mayo/Alice framework. Ariosa Diagnostics, Inc. v. Sequenom, Inc., 788 F.3d 1371, 1379 (Fed. Cir. 2015). We conduct such an analysis below. 35 U.S.C. § 101 Section 101 provides that a patent may be obtained for “any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof.” 35 U.S.C. § 101. The Supreme Court has long recognized, however, that § 101 implicitly excludes “[l]aws of nature, natural phenomena, and abstract ideas” from the realm of patent-eligible subject matter, as monopolization of these “basic tools of scientific and technological work” would stifle the very innovation that the patent system aims to promote. Alice Corp. v. CLS Bank Int’l, 573 U.S. 208, 216 (2014) (quoting Ass’n for Molecular Pathology v. Myriad Genetics, Inc., 569 U.S. 576, 589 (2013)); see also Mayo Collaborative Servs. v. Prometheus Labs., Inc., 566 U.S. 66, 72–78 (2012); Diamond v. Diehr, 450 U.S. 175, 185 (1981). Appeal 2019-000552 Application 14/454,695 5 Under the mandatory Revised Guidance, we reconsider whether Appellant’s claims recite: 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), and 2. additional elements that integrate the judicial exception into a practical application (see MPEP § 2106.05(a)–(c), (e)–(h)). Only if a claim, (1) recites a judicial exception, and (2) does not integrate that exception into a practical application, do we then reach the issue of 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. A. Whether the claims recite a judicial exception The Revised Guidance extracts and synthesizes key concepts identified by the courts as abstract ideas to explain that the abstract-idea exception includes the following groupings of subject matter: (a) mathematical concepts,6 i.e., mathematical relationships, mathematical 6 Bilski v. Kappos, 561 U.S. 593, 611 (2010) (“The concept of hedging . . . Appeal 2019-000552 Application 14/454,695 6 formulas, equations,7 and mathematical calculations8; (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)9; and (c) mental processes—concepts performed in the human mind (including observation, evaluation, judgment, opinion).10 The preamble of independent Claim 1 recites: “A merchant device comprising.” The limitations recited in the body of the claim are analyzed in Table I against the categories of abstract ideas as set forth in the Revised reduced to a mathematical formula . . . is an unpatentable abstract idea.”). 7 Diehr, 450 U.S. at 191 (“A mathematical formula as such is not accorded the protection of our patent laws”); Parker v. Flook, 437 U.S. 584, 594 (1978) (“[T]he discovery of [a mathematical formula] cannot support a patent unless there is some other inventive concept in its application.”). 8 SAP Am., 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). 9 Alice, 573 U.S. at 219–20 (concluding that use of a third party to mediate settlement risk is a “fundamental economic practice” and thus an abstract idea); see Revised Guidance, at 52 n.13 for a more extensive listing of “[c]ertain methods of organizing human activity” that have been found to be abstract ideas. 10 Mayo, 566 U.S. at 71 (“‘[M]ental processes[ ] and abstract intellectual concepts are not patentable, as they are the basic tools of scientific and technological work’” (quoting Gottschalk v. Benson, 409 U.S. 63, 67 (1972))). Appeal 2019-000552 Application 14/454,695 7 Guidance. As set forth in Table I below, we find limitations [e]–[g] of independent Claim 1 recite abstract ideas, i.e., “mental processes.” Claim 1 Revised Guidance [a]11 a display of the merchant device configured to present interactive displays; An additional element that adds insignificant extra-solution activity to the judicial exception. See Rev. Guid. 55. [b] communications circuitry of the merchant device configured to facilitate communications with a consumer device and a central system, the communication circuitry being configured to establish a direct wireless connection via a first network with a plurality of consumer devices to receive wallet identifying data, the communications circuitry further configured to establish a separate connection via a second network including the Internet with the central system to exchange the wallet identifying data received from the consumer device with consumer identifying data associated with the wallet identifying data, An additional element that adds insignificant extra-solution activity to the judicial exception. Rev. Guid.55. [c] wherein the first network is separate from the second network, and wherein the wallet identifying data includes a random code generated by the central system; An additional element that adds insignificant extra-solution activity to the judicial exception. See Rev. Guid. at 55. 11 Step designators, e.g., “[a],” were added to facilitate discussion. Appeal 2019-000552 Application 14/454,695 8 [d] processing circuitry of the merchant device configured to: An additional element that adds insignificant extra-solution activity to the judicial exception. See Rev. Guid. at 55. [e] determine location data indicating a location of the consumer device; Mental processes, i.e., concepts performed in the human mind (including an observation, evaluation, judgment, opinion). See Rev. Guid. at 52. [f] determine a unit of location of a plurality of units of location at a merchant shop, the unit of location determined based on the location data and as the nearest unit of location to the consumer device of the plurality of units of location; and Mental processes, i.e., concepts performed in the human mind (including an observation, evaluation, judgment, opinion). See Rev. Guid. at 52. [g] associate the consumer identifying data with the unit of location; and Mental processes, i.e., concepts performed in the human mind (including an observation, evaluation, judgment, opinion). See Rev. Guid. at 52. [h] an output module of the merchant device configured to provide a user interface to the display, the user interface comprising a graphical representation of a floor plan including at least some of the consumer identifying data and the unit of location within the floor plan. An additional element that adds insignificant extra-solution activity to the judicial exception. See Rev. Guid. at 55. Appeal 2019-000552 Application 14/454,695 9 Step 2A(ii): Judicial Exception Integrated into a Practical Application? If the claims recite a patent-ineligible concept, as we conclude above, we proceed to the “practical application” Step 2A(ii) wherein the “claims are considered in their entirety to ascertain whether their character as a whole is directed to excluded subject matter.” McRO, Inc. v. Bandai Namco Games Am. Inc., 837 F.3d 1299, 1312 (Fed. Cir. 2016). This test determines 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. For the reasons which follow, we conclude that Appellant’s claims do not integrate the judicial exception into a practical application. MPEP § 2106.05(a) “Improvements to the Functioning of a Computer or to Any Other Technology or Technical Field” “In determining patent eligibility, examiners should consider whether the claim ‘purport(s) to improve the functioning of the computer itself’” or “any other technology or technical field.” MPEP § 2106.05(a). Appellant contends the claims have been found to be free of the prior art, but Appellant “is at a loss to explain how claim elements can form a critical part of an invention for one purpose but can then be completely disregarded for another. Claim elements either limit the claims or they do not.” Appeal Br. 22. Appeal 2019-000552 Application 14/454,695 10 The Supreme Court has made clear that the analysis of whether claims satisfy the requirements of 35 U.S.C. § 101 is independent of whether those claims satisfy the other requirements for patentability under the patent statute. Indeed, the § 101 analysis is a threshold inquiry. See Bilski v. Kappos, 561 U.S. 593, 594 (2010). In other words, whether the subject matter of the claims under appeal is novel and non-obvious is immaterial to the § 101 inquiry. See Ex parte Schlumbrecht, Appeal 2012-012597 (May 13, 2015). “The search for a § 101 inventive concept is . . . distinct from demonstrating § 102 novelty.” Synopsys, Inc. v. Mentor Graphics Corp., 839 F.3d 1138, 1151 (Fed. Cir. 2016); see Diehr, 450 U.S. at 188–89; Two- Way Media Ltd. v. Comcast Cable Commc’ns, LLC, 874 F.3d 1329, 1340 (Fed. Cir. 2017). Appellant contends: [i]mprovements to technological processes, novelty, and nonobviousness are all evidence suggesting that the claims recite an unconventional and non-generic arrangements of features (and this is true even if one were to assume that individual constituent elements recited in the claims might be considered conventional in isolation). Appeal Br. 26. Appellant recognizes that “[i]mprovements to technological processes” may confer patent subject-matter eligibility. Appeal Br. 26. Appellant does not specifically argue which aspects of the claims improve what technology. However, Appellant’s Specification discloses it is the customer experience, a non-technological area, which the claims purport to improve: Appeal 2019-000552 Application 14/454,695 11 Financial transactions between merchants and consumers typically require the consumers to present a form of payment to the merchant. As a result, consumers may be required to keep wallets that include payment instruments such as cash, credit cards, [etc]. These payment instruments . . . do not provide consumer information to merchants that can be leveraged to improve service. In this regard, areas for improving current systems have been identified. Spec. ¶ 1. Appellant further discloses: Systems, methods, and computer readable program code are provided to, in general, facilitate consumer location-based service at a merchant shop. Spec. ¶ 5. Moreover: Embodiments discussed herein may be configured to allow a merchant device at a merchant’s shop to communicate with a consumer device carried by a consumer to enhance consumer service. Spec. ¶ 32. MPEP § 2106.05(b) Particular Machine The Bilski machine-or-transformation test is only applicable to method (process) claims. However, “[r]egardless of what statutory category (‘process, machine, manufacture, or composition of matter,’ 35 U.S.C. § 101) a claim’s language is crafted to literally invoke, we look to the underlying invention for patent-eligibility purposes.” CyberSource Corp. v. Retail Decisions, Inc., 654 F.3d 1366, 1374 (Fed. Cir. 2011). Here, it is clear that the invention underlying Claim 1 is the method embodied in the claimed system. We therefore, analyze the machine prong of the Bilski machine-or-transformation test. Appeal 2019-000552 Application 14/454,695 12 Claim 1 recites, inter alia, “a display,” “a consumer device,” and “a merchant device,” Appellant discloses generic machines are suitable: “[i]n some embodiments, any suitable computing device may be configured to perform the functionalities described herein with respect to both merchant devices and consumer devices.” Spec. ¶ 68. We find no indication, nor does Appellant so direct our attention, that the claimed generic devices use other than generic software. We, therefore, conclude Appellant’s claims fail to satisfy the machine prong of the Bilski machine-or-transformation test. MPEP § 2106.05(c) Particular Transformation This section of the MPEP guides: “Another consideration when determining whether a claim recites significantly more is whether the claim effects a transformation or reduction of a particular article to a different state or thing.” “‘Transformation and reduction of an article to a different state or thing is the clue to the patentability of a process claim that does not include particular machines.’” Bilski, 561 U.S. at 658 (quoting Benson, 409 U.S. at 70). The claims select and analyze certain electronic data. The selection of electronic data is not a “transformation or reduction of an article into a different state or thing constituting patent-eligible subject matter[.]” See In re Bilski, 545 F.3d 943, 962 (Fed. Cir. 2008) (emphasis added); see also CyberSource Corp. v. Retail Decisions, Inc., 654 F.3d 1366, 1375 (Fed. Cir. 2011) (“The mere manipulation or reorganization of data . . . does not satisfy the transformation prong.”). Applying this guidance here, we conclude Appeal 2019-000552 Application 14/454,695 13 Appellant’s method claims fail to satisfy the transformation prong of the Bilski machine-or-transformation test. MPEP § 2106.05(e) Other Meaningful Limitations This section of the MPEP guides: Diamond v. Diehr provides an example of a claim that recited meaningful limitations beyond generally linking the use of the judicial exception to a particular technological environment. 450 U.S. 175 . . . (1981). In Diehr, the claim was directed to the use of the Arrhenius equation (an abstract idea or law of nature) in an automated process for operating a rubber-molding press. 450 U.S. at 177-78 . . . . The Court evaluated additional elements such as the steps of installing rubber in a press, closing the mold, constantly measuring the temperature in the mold, and automatically opening the press at the proper time, and found them to be meaningful because they sufficiently limited the use of the mathematical equation to the practical application of molding rubber products. 450 U.S. at 184, 187. . . . In contrast, the claims in Alice Corp. v. CLS Bank International did not meaningfully limit the abstract idea of mitigating settlement risk. 573 U.S. . . . . In particular, the Court concluded that the additional elements such as the data processing system and communications controllers recited in the system claims did not meaningfully limit the abstract idea because they merely linked the use of the abstract idea to a particular technological environment (i.e., “implementation via computers”) or were well-understood, routine, conventional activity. MPEP § 2106.05(e). “[T]he relevant question is whether the claims here do more than simply instruct the practitioner to implement the abstract idea . . . on a generic computer.” Alice, 573 U.S. at 225. Similarly as in Alice, we find that “[t]aking the claim elements separately, the function performed by the Appeal 2019-000552 Application 14/454,695 14 computer at each step of the process is ‘[p]urely conventional.’” Id. “In short, each step does no more than require a generic computer to perform generic computer functions.” Id. We find that Appellant’s claims do not add meaningful limitations beyond generally linking the use of the judicial exception to a particular technological environment. MPEP § 2106.05(f) Mere Instructions to Apply an Exception Appellant does not persuasively argue that their claims do any more than to merely invoke generic computer components merely as a tool in which the computer instructions apply the judicial exception. MPEP § 2106.05(g) Insignificant Extra-Solution Activity The claims acquire and display data, which are classic examples of insignificant extra-solution activity. See, e.g., Bilski, 545 F.3d at 963 (en banc), aff’d sub nom, Bilski, 561 U.S. 593. MPEP § 2106.05(h) Field of Use and Technological Environment [T]he Supreme Court has stated that, even if a claim does not wholly pre-empt an abstract idea, it still will not be limited meaningfully if it contains only insignificant or token pre- or post-solution activity—such as identifying a relevant audience, a category of use, field of use, or technological environment. Ultramercial, Inc. v. Hulu, LLC, 722 F.3d 1335, 1346 (Fed. Cir. 2013). We find the claims manipulate data, particularly as relating to a consumer’s experience within a retail (most specifically a dine-in) location, which is simply a field of use that attempts to limit the abstract idea to a particular technological environment. We are unpersuaded by Appellant’s arguments because “[t]he courts have also identified examples in which a judicial Appeal 2019-000552 Application 14/454,695 15 exception has not been integrated into a practical application.” Revised Guidance, 84 Fed. Reg. at 55. The claims fail to recite a practical application where the additional element does more than generally link the use of a judicial exception to a particular technological environment or field of use. Id. The mere application of an abstract idea in a particular field is not sufficient to integrate the judicial exception into a practical application. See id. at 55 n.32. In view of the foregoing, we conclude the claims are “directed to” a judicial exception. B. Well-understood, routine, conventional Because the claims recite a judicial exception and do not integrate that exception into a practical application, we must then reach the issue of whether the claim adds a specific limitation beyond the judicial exception that is not “well-understood, routine, conventional” in the field. Revised Guidance, 84 Fed. Reg. at 56; see Appeal Br. 23 (citing the “Berkheimer Memorandum”).12 The written description describes the claimed computer system consistent with its being “well-understood, routine, [and] conventional.” For example: Central server 2704 may be any suitable network server, a plurality of networked servers, and/or other type of processing device. Central database 2706 may be any suitable network 12 Memorandum from Robert W. Bahr, Deputy Comm’r for Patent Examination Policy, to Patent Examining Corps, U.S. Patent and Trademark Office (April 19, 2018), https://www.uspto.gov/sites/default/files/ documents/memo-berkheimer-20180419.PDF (citing Berkheimer v. HP Inc., 881 F.3d 1360, 1367–68 (Fed. Cir. 2018)). Appeal 2019-000552 Application 14/454,695 16 database configured to store information that may be used to facilitate the techniques as discussed herein. In this regard, system 2702 may include, for example, at least one backend data server, network database, cloud computing device, among other things. Spec. ¶ 182. network 2708 may include any wired or wireless communication network including, for example, a wired or wireless local area network (LAN), personal area network (PAN), metropolitan area network (MAN), wide area network (WAN), mobile broadband network, or the like, as well as any hardware, software and/or firmware required to implement it (such as, e.g., network routers, etc.). For example, network 2708 may include a cellular telephone, an 802.11, 802.16, 802.20, and/or WiMax network. Further, the network 2708 may include a public network, such as the Internet, a private network, such as an intranet, or combinations thereof, and may utilize a variety of networking protocols now available or later developed including, but not limited to TCP/IP based networking protocols. Spec. ¶ 183. merchant device 2710 may be a POS device that is configured to receive payments at the merchant’s shop. As such, merchant device 2710 may include a personal computer and/or other networked device, such as a cellular phone, tablet computer, mobile device, etc., that may be used for any suitable purpose in addition to providing POS functionality at the restaurant. Spec. ¶ 184. the means of circuitry 2800 as described herein may be embodied as, for example, circuitry, hardware elements (e.g., a suitably programmed processor, combinational logic circuit, and/or the like), a computer program product comprising computer-readable program instructions stored on a non- transitory computer-readable medium (e.g., memory 2804) that Appeal 2019-000552 Application 14/454,695 17 is executable by a suitably configured processing device (e.g., processor 2802), or some combination thereof. Spec. ¶ 189. C. Specified at a high level of generality It is indicative of the absence of an inventive concept where the claims simply append well-understood, routine, conventional activities previously known to the industry, specified at a high level of generality, to the judicial exception. Revised Guidance, 84 Fed. Reg. at 56. The claims fail to recite any specific steps of an algorithm, nor does Appellant cite any Specification disclosure for the required specificity. We find the limitations are specified at such a high level of generality consistent with the absence of an inventive concept. Considering the claim limitations as an ordered combination adds nothing to the abstract idea that is not already present when the limitations are considered separately. See Mayo, 566 U.S. at 79. The ordered combination of limitations amounts to nothing more than certain mental processes implemented with generic computer components that operate “in a conventional way.” See also Alice, 573 U.S. at 225–26. Therefore, we conclude that none of the claim limitations, viewed “both individually and as an ordered combination,” amount to significantly more than the judicial exception in order to sufficiently transform the nature of the claims into patent-eligible subject matter. See Alice, 573 U.S. at 217 (internal quotations omitted) (quoting Mayo, 566 U.S. at 79). In view of the foregoing, we sustain the rejection of claims 1–24 under 35 U.S.C. § 101. Appeal 2019-000552 Application 14/454,695 18 DECISION SUMMARY Claims Rejected 35 U.S.C. § Reference(s)/Basis Affirmed Reversed 1–24 101 Eligibility 1–24 -- TIME PERIOD FOR RESPONSE No time period for taking any subsequent action in connection with this appeal may be extended under 37 C.F.R. § 1.136(a)(1)(iv). See 37 C.F.R. § 41.50(f). AFFIRMED Copy with citationCopy as parenthetical citation