Ramsey Devereaux et al.Download PDFPatent Trials and Appeals BoardJul 19, 201914324546 - (D) (P.T.A.B. Jul. 19, 2019) 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. 14/324,546 07/07/2014 Ramsey Devereaux US-0959.09a 3571 130735 7590 07/19/2019 Fletcher Yoder PC / USAA P.O. Box 692289 Houston, TX 77269 EXAMINER CHAKRAVARTI, ARUNAVA ART UNIT PAPER NUMBER 3693 NOTIFICATION DATE DELIVERY MODE 07/19/2019 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): docket@fyiplaw.com PTOL-90A (Rev. 04/07) UNITED STATES PATENT AND TRADEMARK OFFICE ____________ BEFORE THE PATENT TRIAL AND APPEAL BOARD ____________ Ex parte RAMSEY DEVEREAUX, MICHAEL J. ALLEN, SPENCER READ, DAVID S. FRANCK, WILLIAM CHANDLER, DANIELA WHEELER, KATHLEEN L. SWAIN, and CLEBURNE R. BURGESS ____________ Appeal 2018-007484 Application 14/324,5461 Technology Center 3600 ____________ Before MICHAEL C. ASTORINO, PHILIP J. HOFFMANN, and ROBERT J. SILVERMAN, Administrative Patent Judges. SILVERMAN, Administrative Patent Judge. DECISION ON APPEAL STATEMENT OF THE CASE The Appellants appeal under 35 U.S.C. § 134(a) from the Examiner’s decision rejecting claims 21 and 25–30. We have jurisdiction under 35 U.S.C. § 6(b). We AFFIRM. 1 The Appellants identify United Service Automobile Association as the real party in interest. Appeal Br. 1. Appeal 2018-007484 Application 14/324,546 2 ILLUSTRATIVE CLAIM 21. A sensor system for capturing data, the system comprising: a plurality of sensor devices each configured to capture data corresponding to a different attribute of a property, each sensor device having a transmitter with an associated IP address coupled to a wireless network for transmitting the captured data, wherein the plurality of sensor devices comprises an appliance sensor device and a surveying sensor device, wherein the appliance sensor device and the surveying sensor device are configured to capture data in accordance with a frequency of data capture; a data storage component wirelessly coupled to each of the plurality of sensors devices via the IP address of the transmitter for each of the sensor devices, wherein the data storage component aggregates captured data regarding different attributes of the property received from each of the sensor devices; a communication component coupled to the data storage component that encrypts and transmits the aggregated captured encrypted data via the wireless network; a server executing a computer management module, the server coupled to the communication component, via the wireless network, and configured to, upon execution of the computer management module: generate a first instruction to receive data associated with one or more appliance items within the property, wherein the first instruction alters the frequency of data capture corresponding to the appliance sensor device and commands the appliance sensor device for an immediate reading; upon transmitting the first instruction to the appliance sensor device, receive captured encrypted data from the appliance sensor device, wherein the appliance sensor device measures a temperature value associated with an appliance item of the one or more appliance Appeal 2018-007484 Application 14/324,546 3 items while the appliance item is in operation and a cool down value associated with a time corresponding to how quickly the appliance item changes its temperature; determine a first value for the appliance item associated with the property based on the received captured encrypted data from the appliance sensor device satisfying a pre-determined threshold; generate a second instruction configured to receive captured data associated with a surveying sensor device, wherein the second instruction alters the frequency of data capture corresponding to the surveying sensor device and requests an image capture of the property in real time; upon transmitting the second instruction to the surveying sensor device, receive captured encrypted data comprising the image of the property in real time; determine a second value for the property based on the determined first value for the appliance item within the property and the image captured from the property by the surveying device; generate an electronic message comprising at least one of the second value for the property and captured encrypted data from the appliance sensor device; and transmit the electronic message to a computing device associated with the property. REJECTIONS I. Claims 21 and 25–30 under 35 U.S.C. § 101 as ineligible subject matter. II. Claims 21 and 25–30 are rejected under 35 U.S.C. § 103(a) as unpatentable over Wedig et al. (US 2014/0358592 A1, pub. Dec. 4, 2014) (hereinafter “Wedig”) and Beier et al. (US 2006/0219705 A1, pub. Oct. 5, 2006) (hereinafter “Beier”). Appeal 2018-007484 Application 14/324,546 4 RELATED CASES We note that at the time the Appeal Brief was filed in the present case, Notices of Appeal had been filed in at least three related U.S. patent applications: 14/303,336 (Appeal 2018-001359), 14/273,889 (Appeal 2018- 004448), and 14/572,413 (Appeal 2018-009188). Appellants fail to cite these cases as related Appeals as required by 37 C.F.R. § 41.37(c)(ii). We remind Appellants and counsel to review pending proceedings before the Board, so as to ensure that all related Appeals are identified. FINDINGS OF FACT The findings of fact relied upon, which are supported by a preponderance of the evidence, appear in the following Analysis. ANALYSIS Subject-Matter Eligibility Under 35 U.S.C. § 101, an invention is patent-eligible if it claims a “new and useful process, machine, manufacture, or composition of matter.” 35 U.S.C. § 101. Yet, subject matter belonging to any of the statutory categories may, nevertheless, be ineligible for patenting. The Supreme Court has interpreted § 101 to exclude laws of nature, natural phenomena, and abstract ideas, because they are regarded as the basic tools of scientific and technological work, such that including them within the domain of patent protection would risk inhibiting future innovation premised upon them. Ass’n for Molecular Pathology v. Myriad Genetics, Inc., 569 U.S. 576, 589 (2013). Of course, “[a]t some level, ‘all inventions . . . embody, use, reflect, rest upon, or apply’” these basic tools of scientific and technological work. Alice Corp. v. CLS Bank Int’l, 573 U.S. 208, 217 (2014) (internal citation Appeal 2018-007484 Application 14/324,546 5 omitted). Accordingly, evaluating ineligible subject matter, under these judicial exclusions, involves a two-step framework for “distinguish[ing] between patents that claim the buildin[g] block[s] of human ingenuity and those that integrate the building blocks into something more, thereby transform[ing] them into a patent-eligible invention.” Id. (internal quotation marks and citation omitted). The first step determines whether the claim is directed to judicially excluded subject matter (such as a so-called “abstract idea”); the second step determines whether there are any “additional elements” recited in the claim that (either individually or as an “ordered combination”) amount to “significantly more” than the identified judicially excepted subject matter itself. Id. at 217–18. The USPTO recently published revised guidance on the application of § 101, in accordance with judicial precedent. 2019 Revised Patent Subject Matter Eligibility Guidance, 84 Fed. Reg. 50, 52 (Jan. 7, 2019) (“2019 Revised Guidance”). Under the 2019 Revised Guidance, a claim is “directed to” an abstract idea, only if the claim recites any of (1) mathematical concepts, (2) certain methods of organizing human activity, and (3) mental processes — without integrating such abstract idea into a “practical application,” i.e., without “apply[ing], rely[ing] on, or us[ing] the judicial exception in a manner that imposes a meaningful limit on the judicial exception, such that the claim is more than a drafting effort designed to monopolize the judicial exception.” Id. at 52–55. The considerations articulated in MANUAL OF PATENT EXAMINING PROCEDURE § 2106.05(a)–(c) and (e)–(h) (“MPEP”) bear upon whether a claim element (or combination of elements) integrates an abstract idea into a practical application. Id. at 55. A claim that is “directed to” an abstract idea constitutes ineligible subject Appeal 2018-007484 Application 14/324,546 6 matter, unless the claim recites an additional element (or combination of elements) amounting to significantly more than the abstract idea. Id. at 56. Although created “[i]n accordance with judicial precedent” (id. at 52), the 2019 Revised Guidance enumerates the analytical steps differently than the Supreme Court’s Alice opinion. Step 1 of the 2019 Revised Guidance addresses whether the claimed subject matter falls within any of the statutory categories of § 101. Id. at 53–54. Step 2A, Prong One, concerns whether the claim at issue recites ineligible subject matter and, if an abstract idea is recited, Step 2A, Prong Two, addresses whether the recited abstract idea is integrated into a practical application. Id. at 54–55. Unless such integration exists, the analysis proceeds to Step 2B, in order to determine whether any additional element (or combination of elements) amounts to significantly more than the identified abstract idea. Id. at 56. In the present Appeal, there is no dispute that independent claim 21 (the sole independent claim in this Appeal) satisfies of Step 1 of the 2019 Revised Guidance — i.e., that claim 21 is drawn to subject matter within the scope of § 101. In relation to Step 2A, Prong One, of the 2019 Revised Guidance, the Examiner identifies claimed features that, although paraphrased in the Final Office Action (pages 2–3), correspond to the following limitations of claim 21: “receive captured encrypted data from the appliance sensor device, [including] a temperature value associated with an appliance item . . . while the appliance item is in operation and a cool down value associated with a time corresponding to how quickly the appliance item changes its temperature”; “determine a first value for the appliance item associated with the property based on the received captured encrypted data from the Appeal 2018-007484 Application 14/324,546 7 appliance sensor device satisfying a pre-determined threshold”; “receive captured encrypted data comprising the image of the property in real time”; and “determine a second value for the property based on the determined first value for the appliance item within the property and the image captured from the property by the surveying device.” The Examiner states that “the claims describe concepts that the courts have deemed abstract” and, after referring to an array of court decisions, explains that the independent claims in this Appeal “merely perform — data capture from sensor devices in order to determine the value of an item in a property — which constitutes insignificant data gathering activities and fundamental economic practice.” Id. at 3. In view of the Examiner’s characterization of individual claim limitations (see id. at 4–6), we understand that the Examiner regards “data capture from sensor devices” as constituting “insignificant data gathering activities,” and that the Examiner regards “determine the value of an item in a property” as constituting a “fundamental economic practice” — i.e., an abstract idea (see id. at 3). Indeed, the Examiner characterizes the claim 21 limitations of “determine a first value for the appliance item associated with the property based on the received captured encrypted data from the appliance sensor device satisfying a pre-determined threshold” and “determine a second value for the property based on the determined first value for the appliance item within the property and the image captured from the property by the surveying device” as describing the fundamental economic practice of determining the value of items. Id. at 5–6. The Examiner’s position is consistent with the 2019 Revised Guidance, which regards “fundamental economic principles or practices Appeal 2018-007484 Application 14/324,546 8 (including hedging, insurance, mitigating risk)” and “commercial or legal interactions (including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations)” as among the “[c]ertain methods of organizing human activity” that amount to the judicial exception of an abstract idea. 2019 Revised Guidance, 84 Fed. Reg. at 52. The Examiner’s position is also consistent with the Federal Circuit’s ruling in Versata Development Group., Inc. v. SAP America, Inc., 793 F.3d 1306, 1333 (Fed. Cir. 2015), to the effect that “determining a price, using organizational and product group hierarchies” amounted to an abstract idea “in the same way that the claims in Alice were directed to the abstract idea of intermediated settlement, and the claims in Bilski [v. Kappos, 561 U.S. 593 (2010)] were directed to the abstract idea of risk hedging.” The Appellants do not present arguments disputing the Examiner’s position. Accordingly, we are not persuaded of error in the rejection, with respect to Step 2A, Prong One. With regard to Step 2A, Prong Two, of the 2019 Revised Guidance, unless a claim that recites a judicial exception (such as an abstract idea) “integrates the recited judicial exception into a practical application of that exception,” the claim is “directed to” the judicial exception. 2019 Revised Guidance, 84 Fed. Reg. at 53. The analysis of such an “integration into a practical application” involves “[i]dentifying . . . any additional elements recited in the claim beyond the judicial exception(s)” and “evaluating those additional elements individually and in combination to determine whether they integrate the exception into a practical application.” Id. at 54–55. “[W]hether an additional element or combination of elements integrate the Appeal 2018-007484 Application 14/324,546 9 exception into a practical application should be evaluated on the claim as a whole.” Id. at 55 n.24. In relation to Step 2A, Prong Two, the Appellants argue that the claimed subject matter “improve[s] an existing technology (e.g., sensor management),” by “alter[ing] the frequency of data capture of a camera sensor and an appliance sensor based on data previously analyzed by the server” and “command[ing] the appliance sensor and the camera sensor to immediately capture data and transmit the captured data to the server.” Appeal Br. 6. Thus, the Appellants’ argument refers to the following limitations of claim 21: generate a first instruction to receive data associated with one or more appliance items within the property, wherein the first instruction alters the frequency of data capture corresponding to the appliance sensor device and commands the appliance sensor device for an immediate reading; [and] generate a second instruction configured to receive captured data associated with a surveying sensor device, wherein the second instruction alters the frequency of data capture corresponding to the surveying sensor device and requests an image capture of the property in real time; See id. The Appellants contend that these features provide specific performance improvements: As discussed in the Specification, controlling the frequency of data capture of an electronic sensor improves the sensor’s data collection efficiency. Controlling the frequency of data capture of a sensor allows the sensor to monitor the property without being in constant use or requiring excessive cellular/internet bandwidth and unnecessary data transmissions. For instance, the Specification discusses that altering frequency of data capture of an electronic sensor provides technical benefits such as reducing “cellular service backups” or reducing “cellular charges” when a property does not have internet Appeal 2018-007484 Application 14/324,546 10 access or has “non-functioning cellular service.” See Specification, Pg. 21. For instance, a sensor that is constantly capturing data requires high cellular data activity. Furthermore, a sensor that is constantly collecting data may create an unreasonable data back up if the internet service of the property is not functioning properly. Both of the above-mentioned scenarios present undesirable technical challenges. To solve the above mentioned technical challenges, the claimed invention provides an electronic sensor with a data capture frequency that can be remotely controlled by the central server (in contrast with an electronic sensor that is constantly surveying the property and capturing data). For instance, claim 21 presents a scenario where a surveying sensor is instructed to take images of the property in real time. Reply Br. 3. According to the Examiner, the claim limitations that provide for altering the frequency of data collection do not effect a technological improvement: Taking temperature readings of an object or a room at regular intervals does not result in improving the functionality of a camera or smartphone or a thermometer or any other sensor device. Using a sensor device is not sensor management. Taking a photograph using a camera at frequent interval is not improving the camera; changing the intervals of temperature readings using a thermometer is not improving the a [sic] temperature sensor device. Answer 11. The Examiner further states that “the purpose of capturing data from multiple sensors is to perform economic valuation of property”; thus, “[t]he focus of the claims is not on any improvement in computers as tools, but on certain independently abstract ideas that use computers as tools.” Id. at 12. See also id. at 13 (“Here, the claims use sensors to record data. They do not improve sensors. There is no technological improvement in the claims.”) In addition, the Examiner further explains: Appeal 2018-007484 Application 14/324,546 11 Appellant[s’] invention does not describe any existing problems with data collection with sensor devices that the claims are intended to solve. The use of photographs, thermometers, pressure gauges, etc., have been widely used for ages to obtain data about physical properties. The current claims do not solve any problem using them that was not possible before. Similarly, the valuation of physical objects and properties based on inspection has been carried out since the ages. This is not a technical problem but a day to day business in real estate. Nor do the claims provide any technical solutions (or even mathematical formula) to determine valuation. Id. at 13–14. The Appellants properly point out that whether claim 21 creates a technological improvement must be evaluated on the basis of the claim as a whole, rather than simply whether individual sensors are improved or whether the identified abstract idea of property valuation is improved. See Reply Br. 2–4. The Appellants do not assert that any individual sensor is improved; instead, the Appellants contend that manner of operating a sensor (e.g., “alter[ing] the frequency of data capture”) creates improvements. Id. Nor do the Appellants allege that the additional elements noted improve the concept of valuation itself (which the Examiner identifies as the recited abstract idea). Id. at 3–4. Indeed, in Diamond v. Diehr, 450 U.S. 175, 188 (1981), the Supreme Court stated that “Arrhenius’ equation” — i.e., the judicially excepted subject matter — “is not patentable in isolation, but when a process for curing rubber is devised which incorporates in it a more efficient solution of the equation, that process is at the very least not barred at the threshold by § 101.” See also 2019 Revised Guidance, 84 Fed. Reg. at 55 n.24 (“[W]hether an additional element or combination of elements Appeal 2018-007484 Application 14/324,546 12 integrate the exception into a practical application should be evaluated on the claim as a whole.”) Nevertheless, the Examiner identifies an obstacle to the Appellants’ position that claim 21 provides a technological improvement: “Appellant[s’] invention does not describe any existing problems with data collection with sensor devices that the claims are intended to solve.” Answer 13. The Appellants contend that page 21 of the Specification supports the assertion that “altering frequency of data capture of an electronic sensor provides technical benefits such as reducing ‘cellular service backups’ or reducing ‘cellular charges’ when a property does not have internet access or has ‘non- functioning cellular service.’” Reply Br. 3. Yet, this portion of the Specification does not address claim 21’s features of “alter[ing] the frequency of data capture” with “sensor[s].” Rather than “data capture,” the cited portion of the Specification discloses techniques for transmitting packets of aggregated sensor data, whereby benefits may flow from doing so “at prescribed time intervals”: [D]ata packets collected from sensors 90 can be aggregated in computing device 300 and sent as an aggregated packet to management module 105 for subsequent analysis whereby data packets may be transmitted at prescribed time intervals (e.g., a benefit is to reduce cellular charges in that some insured 10 properties may not have Internet access or to send during low internet usage hours). Spec. 21, ll. 6–10. This portion of the Specification does not support the Appellants’ position that any benefit attends the claimed “alter[ing] the frequency of data capture” using “sensor[s].” Accordingly, we are not persuaded that the referenced elements of claim 21 effect a technological improvement, or otherwise integrate the identified abstract idea into a Appeal 2018-007484 Application 14/324,546 13 practical application, per Step 2A, Prong Two, of the 2019 Revised Guidance. Therefore, the Appellants do not persuade us of an error in the Examiner’s determination that claim 21 is directed to an abstract idea. With regard to Step 2B of the 2019 Revised Guidance, the Appellants contend that the Examiner does not adequately support the determination that the claims lack elements that amount to significantly more than the identified judicial exception. Appeal Br. 4–5; Reply Br. 5–7. In particular, the Appellants contend that support is lacking for the Examiner’s position that the limitations that call for “alter[ing] the frequency of data capture” with “sensor[s]” fail to provide significantly more than the abstract idea. See Reply Br. 5–7. According to the Examiner, the recited “data capture” using “sensor[s]” is “nothing more than insignificant data gathering activity.” Final Action 4. Further, the claimed “alter[ing] the frequency” (of such “data capture”) is among limitations that “recite no more than well- understood, routine, and conventional activities previously known in the property and casualty insurance industry.” Answer 5. “The 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). Notwithstanding any potential significance of the periodic “data capture” using “sensor[s],” by itself, the Examiner has not provided any support for the assertion that the combination of features in the recited “alter[ing] the frequency of data capture” would have been well- understood, routine and conventional, so as not constituting significantly more than the identified abstract idea. Notably, “[t]he inventive concept Appeal 2018-007484 Application 14/324,546 14 inquiry requires more than recognizing that each claim element, by itself, was known in the art,” because “an inventive concept can be found in the non-conventional and non-generic arrangement of known, conventional pieces.” BASCOM Glob. Internet Servs., Inc. v. AT&T Mobility LLC, 827 F.3d 1341, 1350 (Fed. Cir. 2016). Therefore, in view of the foregoing, we are persuaded of error in the rejection of independent claim 21 — as well as claims 25–30 depending therefrom — such that we do not sustain the rejection under 35 U.S.C. § 101. Obviousness The Appellants contend that claims 21 and 25–30 stand rejected erroneously, because the cited prior art does not teach claim 21’s “first instruction to receive data associated with one or more appliance items within the property, wherein the first instruction alters the frequency of data capture corresponding to the appliance sensor device and commands the appliance sensor device for an immediate reading.” See Appeal Br. 8–10; Reply Br. 7–9. Specifically, the Appellants argue that the Wedig reference “merely recites a thermostat that can transmit temperature data to a server,” but “Wedig does not teach transmitting an instruction to the disclosed thermostat to alter its frequency of data capture by commanding an immediate reading.” Appeal Br. 9. In relevant part, the “first instruction” of claim 21 “alters the frequency of data capture corresponding to the appliance sensor device and commands the appliance sensor device for an immediate reading.” That is, the “first instruction” must both “alter[ ] the frequency of data capture” and “command[ ] . . . an immediate reading” from the “appliance sensor device.” Appeal 2018-007484 Application 14/324,546 15 The Specification supports this construction, in the disclosure of “command generation engine 130” that may send commands to “sensors 90,” including “an instruction to take an immediate reading,” “an instruction to take more frequent readings (e.g., every hour rather than every six hours), an instruction to take less frequent readings (e.g[.], every day rather than every hour), and/or any permutations or derivations thereof as will be known by those skilled in the art.” Spec. 25, l. 21 – 26, l. 6. Wedig discloses the receipt of sensor readings, in response to a specific request, which maps to the “immediate reading” of claim 21. See Wedig ¶ 85 (“[S]ensor/sensory nodes may be programmed to send readings only [in] response to receiving a request for the readings.”) Wedig also discloses periodic sensor readings, having various frequencies. See id. (“In some implementations, sensor readings may be received periodically. In such a case, the frequency of received readings may be high enough to provide substantially real-time readings or low enough to provide very low data transfer while keeping a server up to date.”) Yet, Wedig does not disclose claim 21’s feature of “alter[ing] the frequency of data capture corresponding to the appliance sensor device” — let alone the combination of this feature with the recited “command[ing] the appliance sensor device for an immediate reading.” Acknowledging such deficiency, the Examiner explains that it would have been obvious to modify Wedig, so as to meet the identified limitation of claim 21: Wedig deals with detecting insurance risk factors like fire, smoke, etc. Wedig discloses determining insurance risk by taking sensor data at certain threshold levels — temperature, gas concentration, increased humidity over a period of time, etc. Appeal 2018-007484 Application 14/324,546 16 Examiner notes that a measurement to determine increase (or decrease) of temperature, gas concentration, humidity, pressure, etc., would have to be conducted more than once and at certain intervals such as hourly, daily, etc. For example, it would have been obvious to a person of ordinary skills that — if, after two readings at one hour intervals, the temperature of an oven or the water pressure inside a pipe shows an increase, then a third reading may have to be conducted after another hour. If this third reading were to show further increase then the frequency of sensor readings may have to be altered and sensor readings may have to conducted [sic] every 15 minutes to ensure there is no fire hazard or risk of pipe explosion. Therefore, it would have been obvious to alter the frequency of data capture for the sensor devices in Wedig for an immediate reading of a risk factor. Hence, Wedig teaches the limitation of “alters the frequency of data capture corresponding to the appliance sensor device and commands the appliance sensor device for an immediate reading.” Answer 16–17. The Appellants do not dispute the propriety of the Examiner’s modification of Wedig, resulting in the claimed features at issue. Accordingly, the Appellants do not persuasively argue for error in the rejection of independent claim 21. See In re Jung, 637 F.3d 1356, 1365 (Fed. Cir. 2011) (“[I]t has long been the Board’s practice to require an applicant to identify the alleged error in the examiner’s rejections.”) (citing Ex parte Frye, Appeal No. 2009-006013, at 9–10, 2010 WL 889747 (BPAI 2010) (precedential)). Accordingly, because the Appellants do not present any separate argument on behalf of any dependent claim, we sustain the rejection of claims 21 and 25–30 under 35 U.S.C. § 103(a). Appeal 2018-007484 Application 14/324,546 17 DECISION We REVERSE the Examiner’s decision rejecting claims 21 and 25– 30 under 35 U.S.C. § 101. We AFFIRM the Examiner’s decision rejecting claims 21 and 25–30 under 35 U.S.C. § 103(a). No time period for taking any subsequent action in connection with this appeal may be extended under 37 C.F.R. § 1.136(a)(1)(iv). AFFIRMED Copy with citationCopy as parenthetical citation