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CBM2015-00116 U.S. Patent No. 8,214,246
Filed on behalf of Petitioner By: Todd M. Siegel (Reg. No. 73,232)
[email protected] KLARQUIST SPARKMAN, LLP One World Trade Center, Suite 1600 121 S.W. Salmon Street Portland, Oregon 97204 Telephone: (503) 595-5300 Facsimile: (503) 595-5301
UNITED STATES PATENT AND TRADEMARK OFFICE
____________
BEFORE THE PATENT TRIAL AND APPEAL BOARD ____________
EMNOS USA CORP.
Petitioner
v.
DUNNHUMBY, LTD Patent Owner
____________
U.S. Patent No. 8,214,246 ____________
PETITION FOR COVERED BUSINESS METHOD REVIEW UNDER 35 U.S.C. § 321 AND
§ 18 OF THE LEAHY-SMITH AMERICA INVENTS ACT
CBM2015-00116 U.S. Patent No. 8,214,246
TABLE OF CONTENTS
Page
I. PRELIMINARY STATEMENT ..................................................................... 1 II. MANDATORY NOTICES ............................................................................. 3
A. Real Party-In-Interest ........................................................................................... 3
B. Related Matters ...................................................................................................... 3
C. Lead And Back-Up Counsel .............................................................................. 3
D. Service Information .............................................................................................. 4
III. THE PETITIONER HAS STANDING AND THE PATENT IS ELIGIBLE FOR CBM REVIEW ...................................... 4 A. At Least One Challenged Claim Is Unpatentable .......................................... 4
B. Petitioner emnos USA Has Been Sued For Infringement Of The ’246 Patent And Petitioner Is Not Estopped ........ 5
C. The Challenged Claims Fall Within The Definition Of A “Covered Business Method” ...................................... 5
D. The Challenged Claims Are Not Directed To A “Technological Invention” .................................................. 13
IV. STATEMENT OF PRECISE RELIEF REQUESTED FOR EACH CLAIM CHALLENGED .................................18 A. Claims For Which Review Is Requested ....................................................... 18
B. Statutory Grounds Of Challenge ...................................................................... 18
C. Person Having Ordinary Skill In The Art In 2004 ..................................... 18
V. CLAIM CONSTRUCTION ..........................................................................19
VI. THE CHALLENGED CLAIMS ARE UNPATENTABLE UNDER 35 U.S.C. § 101 .............................................22 A. The Two-Step Test For Analyzing Patentability Under 35 U.S.C. § 101
22
B. The Challenged Claims Are Directed To An Abstract Idea ..................... 24
C. The Claimed Generic Elements Do Not Transform The Challenged Claims Into Patentable Subject Matter ........................... 25
i
CBM2015-00116 U.S. Patent No. 8,214,246
1. Courts Have Repeatedly Found That Basic Database Functionality Does Not Transform Patent Claims Directed At Abstract Ideas Into Patentable Subject Matter ....................27
2. The ’246 Patent’s Claimed Database And Related Functionality Is Conventional And Not Inventive ....................30
D. The Dependent Claims Are Directed At The Same Abstract Idea And Do Not Transform The Claims Into Patentable Subject Matter ................................................. 33
1. Generic Computer/Network Devices And Functions ...............33 2. Collecting, Downloading, Or Transmitting Information ..........37 3. Ways To Get To “Know Your Customer” ................................39 4. Organizing Or Presenting Information .....................................43
VII. FEE ................................................................................................................47 VIII. COUNSEL AND SERVICE INFORMATION ............................................47 IX. CONCLUSION ..............................................................................................48
ii
CBM2015-00116 U.S. Patent No. 8,214,246
TABLE OF AUTHORITIES Page(s)
Cases Accenture Global Servs., GmbH v. Guidewire Software, Inc.,
728 F.3d 1336 (Fed. Cir. 2013) ..................................................................... 27, 36 Alice Corp. v. CLS Bank Int’l,
134 S. Ct. 2347 (Jun. 19, 2014) .................................................................... passim Amdocs (Israel), Ltd. v. Openet Telecom, Inc.,
2014 WL 5430956 (E.D. Va. Oct. 24, 2014) ................................................ 29, 36 Application of Fox,
471 F.2d 1405 (C.C.P.A. 1973) ............................................................................32 Bancorp Servs. v. Sun Life Assurance Co. of Canada,
687 F.3d 1266 (Fed. Cir. 2012) ............................................................................36 Bilski v. Kappos,
130 S. Ct. 3218 (2010) ....................................................................................2, 24 buySAFE, Inc. v. Google, Inc.,
765 F.3d 1350 (Fed. Cir. 2014) ............................................................................38 Clear with Computers, LLC v. Dick's Sporting Goods, Inc.,
2014 WL 923280 (E.D. Tex., January 21, 2014) .................................................46 Content Extraction & Transmission LLC, Wells Fargo Bank, Nat’l Assoc.,
776 F.3d 1343 (Fed. Cir. 2014) ............................................................................25 CyberSource Corp., v. Retail Decisions, Inc.,
654 F.3d at 1370 (2011) .......................................................................................36 Data Distribution Techs., LLC, v. BRER Affiliates, Inc.,
No. 12-4878, 2014 WL 4162765 (D.N.J. Aug. 19, 2014)....................................28 DDR Holdings, LLC v. Hotels.com,
773 F.3d 1245 (Fed. Cir. 2014) ............................................................................32 Diamond v. Diehr,
450 U.S. 175 (1981) ............................................................................................... 3 Digital Image Techs., LLC v. Elecs. for Imaging, Inc.,
758 F.3d 1344 (Fed. Cir. 2014) ............................................................................45 Enfish, LLC v. Microsoft Corp.,
No. 2:12-cv-07360, 2014 WL 5661456 (C.D. Ca. Nov. 3, 2014) ................. 27, 36
iii
CBM2015-00116 U.S. Patent No. 8,214,246
Epicor Software Corp. v. Protegrity Corp., CBM2015-00002, Paper 17 (P.T.A.B. Apr. 22, 2015) .......................................... 7
Epicor Software Corp. v. Protegrity Corp., CBM2015-00002, Paper 17, (P.T.A.B. Apr. 22, 2015) ......................................... 4
In re Abbott Diabetes Care, Inc., 696 F.3d 1142 (Fed. Cir. 2012) ............................................................................20
Indeed, Inc. v. Career Destination Development, LLC, CBM2014-00068, Paper 11 (P.T.A.B. Aug. 20, 2014) ........................................23
Intellectual Ventures I LLC v. Manufacturers and Traders Trust Company, 2014 WL 7215193 (D. Del., Sept. 18, 2014) .......................................................46
IpLearn, LLC v. K12 Inc., 2014 WL 7206380 (D. Del., Dec. 17, 2014) ........................................................38
Linkedin Corp., v. Avmarkets, CBM2013-00025, Paper 30, (P.T.A.B. Nov. 10, 2014) .......................................23
Lumen View Tech. LLC v. Findthebest.com, Inc., No. 13 Civ. 3599, 2013 WL 6164341 (S.D.N.Y. Nov. 22, 2013) .......................43
Mayo Collaborative Servs. v. Prometheus Labs., Inc., 132 S. Ct. 1289 (2012)....................................................................... 22, 23, 25, 27
Microsoft Corp. v. i4i Ltd. P’ship, 131 S. Ct. 2238 (2011)..........................................................................................19
Phillips v. AWH Corp., 415 F.3d 1303 (Fed. Cir. 2005) (en banc) ............................................................18
Salesforce.com, Inc. v. Virtualagility, Inc., CBM2013-00024, Paper 47 (P.T.A.B. Sept. 16, 2014) ........................................23
SAP America, Inc. v. Versata Development Group, Inc., CBM2012-00001, Paper 36 (P.T.A.B. Jan. 9, 2013) .......................................6, 14
Shortridge v. Foundation Construction Payroll Service, LLC, 2015 WL 1739256 (N.D. Cal., April 14, 2015) .........................................37
Tuxis Technologies, LLC v. Amazon.com, Inc., 2014 WL 4382446 (D. Del. 2014)........................................................................42
U.S. Bancorp v. Retirement Capital Access Management Co., CBM2013-00014, Paper 33 (P.T.A.B. Aug. 22, 2014) ................................23
iv
CBM2015-00116 U.S. Patent No. 8,214,246
Ultramercial, Inc. v. Hulu, LLC, 772 F.3d 709 (Fed. Cir. Nov. 14, 2014) ............................................ 23, 25, 38, 47
Statutes 35 U.S.C. § 101 ................................................................................................ passim 35 U.S.C. § 112 .......................................................................................................... 2 35 U.S.C. § 18 ............................................................................................................ 1 35 U.S.C. § 321 .......................................................................................................... 1 35 U.S.C. § 324 ........................................................................................................44 35 U.S.C. § 324(a) ..................................................................................................... 4 AIA § 18(d)(1) ........................................................................................................... 5 Other Authorities 157 Cong. Rec. S1360 (Mar. 8, 2011). ...................................................................... 6 157 Cong. Rec. S5432 (daily ed. Sept. 8, 2011) ........................................................ 5 MPEP § 2258 ...........................................................................................................18 Rules 37 C.F.R. § 42.10(b) .................................................................................................. 4 37 C.F.R. § 42.15(b) .................................................................................................44 37 C.F.R. § 42.300 ..................................................................................................... 1 37 C.F.R. § 42.300(b) ..............................................................................................18 37 C.F.R. § 42.302(b) ................................................................................................ 5 37 C.F.R. § 42.304 ..................................................................................................... 3 37 C.F.R. § 42.8 ......................................................................................................... 3 37 C.F.R. § 42.8(b)(3) ..............................................................................................44 Regulations 77 Fed. Reg. 157
(Aug. 14, 2012) ............................................................................................. passim
v
CBM2015-00116 U.S. Patent No. 8,214,246
LIST OF EXHIBITS
No. Description 1001 U.S. Patent No. 8,214,246, Springfield et al., issued on July 3, 2012. 1002 Complaint for Patent Infringement, Dkt. 1, Filed January 17, 2013. 1003 US Patent and Trademark Office, Memorandum, June 25, 2014. 1004 Declaration of Padhraic Smyth 1005 Memorandum Opinion and Order re Claim Construction, Dkt. 183,
Filed March 13, 2015. 1006 US Patent and Trademark Office, Definition for Class 705 1007 CV for Padhraic Smyth 1008 Data Warehousing for Dummies, Alan Simon, Hungry Minds, Inc.,
1997, pgs. 20-24 1009 Fry, J. P., & Sibley, E. H., “Evolution of data-base management
systems,” ACM Computing Surveys, 8(1), 7-42, p. 19, 1976. 1010 M. Stonebraker, E. Wong, P. Kreps, and G. Held, “The Design and
Implementation of INGRES”, ACM Transactions on Databases, volume 1, issue 3, pp 189-222, September 1976
1011 “Special Report: DBMS: Opening Doors to New Opportunities,” L. Paul and S. Blakeney (eds.), ComputerWorld, Oct 25. 1982.
1012 http://www.oracle.com/us/corporate/profit/p27anniv-timeline-151918.pdf.
1013 Database Development for Dummies, Allen Taylor, IDG Books Worldwide, Inc., 2001, pp. 214-216.
1014 SQL for Dummies, A. G. Taylor, Wiley Publishing, 2003 5th edition, pgs.
1015 SQL Server Developer’s Guide, Pages 304-314 1016 http://www.theserverside.com/news/1365244/Why-Prepared-
Statements-are-important-and-how-to-use-them-properly (January 1, 2000)
1017 “APL2 and SQL: A Tutorial,” Proceedings of the ACM/SIGAPL Conference on APL as a Tool of Thought, pp. 53-90, ACM Press, New York (http://dl.acm.org/citation.cfm?id=328880).
1018 Mattos et al., IBM, “SQL99, SQL/MM, and SQLJ: An Overview of the SQL Standards,” slide 30, http://jtc1sc32.org/doc/N0251-0300/32N0294.pdf
1019 Database Language Standards: Past, Present, and Future, Phil Shaw IBM Corporation
vi
CBM2015-00116 U.S. Patent No. 8,214,246
1020 “Easy SQR Queries Oracle, SQL Server”, InfoWorld, page 13, March 12th 1990).
1021 “Democratic data tools,” InfoWorld, pages 80-81, October 23rd 1995.
1022 “Universal Data Access with OLE DB,” J. A. Blakeley, Proceedings of the IEEE Compcon Conference, pages 2-7, February 1997.
1023 G. Ehmayer, G. Kappel, and S. Reich, “Connecting databases to the Web: A taxonomy of gateways” (1997);
1024 Exhibit 1024 Intentionally Left Blank 1025 “Visualizing Real Estate Property Information via the Web,”
Proceedings of the IEEE International Conference on Information Visualization, pages 182-187, IEEE Press.
1026 USP 5,974,396 – Anderson et al., Issued October 26, 1999. 1027 Info World, February 11, 1985 at pp. 26-30. 1028 ComputerWorld, August 25th, 1986 1029 Lotus 1-2-4- Millennium Edition for Dummies, John Walkenbach,
1998
vii
CBM2015-00116 U.S. Patent No. 8,214,246
I. PRELIMINARY STATEMENT
On January 17, 2013, dunnhumby USA, LLC and dunnhumby, LTD filed a
complaint (Ex. 1002) against emnos USA Corp. (“emnos USA”) in the Northern
District of Illinois, asserting infringement of U.S. Patent No. 8,214,246 B2 (“the ’246
patent”) (Ex. 1001). Pursuant to 35 U.S.C. § 321 and § 18 of the Leahy-Smith
America Invents Act (“AIA”) and pursuant to 37 C.F.R. § 42.300 et seq., emnos USA
Corp. hereby petitions for a Covered Business Method (“CBM”) review of claims 1-
9, 11-14, 16-19, 21, 23-32, 34-35, 37-45, 51-56, 58, 60, 62-67, and 69-73 of the
’246 patent (the “Challenged Claims”.)
The ’246 patent, entitled “Method for Performing Retail Sales Analysis,”
claims the abstract idea of a retailer knowing its customers. The ’246 patent issued
on July 3, 2012 from U.S. Patent Application No. 10/955,946, filed on September
30, 2004.
According to the ’246 patent, the alleged invention assists retailers “in
requesting and generating analysis projects on transaction and/or consumer data that
is stored in one or more databases.” (Ex. 1001 at Abstract.) Examples of analysis
projects include “Consumer Insight Reports” seeking to answer questions such as
“Who buys my brand?” and “Who buys my brand over time?” (Id. at Fig. 2; see also
Covered Business Method Patent Review of U.S. Patent No. 8,214,246 Page 1
CBM2015-00116 U.S. Patent No. 8,214,246
id. at 10:61-11:111.) The goal of the analysis projects is to provide “insights” that
can “lead to better decisions on new product launches, sampling, merchandizing,
assortment, distribution, and other sales and marketing priorities.” (Id. at Abstract;
see also id. at 7:24-43.)
The Challenged Claims add no technological invention or solution to this
abstract idea. Instead, they claim the use of generic computer hardware and database
software to implement the idea of gathering and organizing transaction and
consumer information that may be queried to generate reports (spreadsheets) with
the requested information. (See id. at Fig. 1.) The only possible technical limitations
recited in the Challenged Claims—“computer,” “database,” and “database analysis
scripts”—were indisputably well-known, conventional mechanisms by the time the
’246 patent was filed in 2004.2 (Ex. 1004 at ¶¶ 16-32.) It is well settled that such an
abstract idea does not become patentable merely because it is accomplished using
standard computer components. Bilski v. Kappos, 130 S. Ct. 3218, 3230 (2010)
1 References herein to the ’246 patent as X:Y refer to the patent’s column:line
numbering.
2 Petitioner does not concede and nothing herein should be construed as an
admission that the challenged claims meet the requirements of 35 U.S.C. § 112 or
are entitled to claim priority to the 2004 application.
Covered Business Method Patent Review of U.S. Patent No. 8,214,246 Page 2
CBM2015-00116 U.S. Patent No. 8,214,246
(quoting Diamond v. Diehr, 450 U.S. 175, 191-92 (1981)); Alice Corp. v. CLS Bank
Int’l, 134 S. Ct. 2347, 2358 (Jun. 19, 2014). Thus, the Challenged Claims are
unpatentable under 35 U.S.C. § 101.
II. MANDATORY NOTICES
Pursuant to 37 C.F.R. § 42.304 and 42.8, Petitioner submits the following
Mandatory Notices.
A. Real Party-In-Interest
Petitioner emnos USA Corp., through multiple intervening and non-publically
traded companies, including but not limited to American Express Travel Related
Services Company, Inc., is owned by American Express Company. Thus, the real
parties in interest for this petition for CBM are emnos USA Corp., American Express
Company, and American Express Travel Related Services Company, Inc.
B. Related Matters
dunnhumby USA, LLC and dunnhumby, LTD filed a complaint asserting the
‘246 patent against emnos USA Corp. on January 17, 2013, which started the
ongoing and related patent litigation proceeding, dunnhumby USA, LLC et al. v.
emnos USA Corp., Case No. 1:13-cv-00399 (N.D. Ill.). (Ex. 1002.) According to the
Complaint filed in that case, dunnhumby, LTD owns the ’246 patent, and
dunnhumby USA, LLC is a licensee of the patent. (Ex. 1002 at ¶¶ 9-10.)
C. Lead And Back-Up Counsel
Petitioner identifies lead and back-up counsel as follows:
Covered Business Method Patent Review of U.S. Patent No. 8,214,246 Page 3
CBM2015-00116 U.S. Patent No. 8,214,246
Lead Counsel Todd M. Siegel USPTO Reg. No. 73,232 KLARQUIST SPARKMAN, LLP One World Trade Center, Suite 1600 121 S.W. Salmon Street Portland, Oregon 97204 Telephone: (503) 595-5300 Facsimile: (503) 595-5301 [email protected]
Back-Up Counsel Joseph T. Jakubek USPTO Reg. No. 34,190 KLARQUIST SPARKMAN, LLP One World Trade Center, Suite 1600 121 S.W. Salmon Street Portland, Oregon 97204 Telephone: (503) 595-5300 Facsimile: (503) 595-5301 [email protected]
Pursuant to 37 C.F.R. § 42.10(b), a Power of Attorney executed by
Petitioner for appointing the above counsel is concurrently filed.
D. Service Information
Please direct all correspondence to the lead counsel at the above address.
Petitioner consents to email service at [email protected] and
III. THE PETITIONER HAS STANDING AND THE PATENT IS ELIGIBLE FOR CBM REVIEW
A. At Least One Challenged Claim Is Unpatentable
“A patent need have only one claim directed to a covered business method to
be eligible for review.” Epicor Software Corp. v. Protegrity Corp., CBM2015-
00002, Paper 17, Institution Decision at 10 (P.T.A.B. Apr. 22, 2015). As further
detailed below, claims 1-9, 11-14, 16-19, 21, 23-32, 34-35, 37-45, 51-56, 58, 60, 62-
67, and 69-73 of the ’246 patent (the “Challenged Claims”) are unpatentable under
35 U.S.C. § 101. Thus, for the reasons set forth below, it is more likely than not that
at least one of the Challenged Claims is unpatentable. 35 U.S.C. § 324(a).
Covered Business Method Patent Review of U.S. Patent No. 8,214,246 Page 4
CBM2015-00116 U.S. Patent No. 8,214,246
B. Petitioner emnos USA Has Been Sued For Infringement Of The ’246 Patent And Petitioner Is Not Estopped
Petitioner certifies that it is not estopped from challenging the claims on the
grounds identified in this petition, and that the ’246 patent is available for post-grant
review. 37 C.F.R. § 42.302(b). Petitioner further certifies that emnos USA Corp. has
been sued for infringement of the ’246 patent. Specifically, dunnhumby USA, LLC
and dunnhumby, LTD filed a complaint against emnos USA Corp. on January 17,
2013, which started the ongoing patent litigation proceeding, dunnhumby USA, LLC
et al. v. emnos USA Corp., Case No. 1:13-cv-00399 (N.D. Ill). (Ex. 1002.)
C. The Challenged Claims Fall Within The Definition Of A “Covered Business Method”
The AIA defines a covered business method (“CBM”) patent as “a patent that
claims a method or corresponding apparatus for performing data processing or other
operations used in the practice, administration, or management of a financial product
or service, except that the term does not include patents for technological
inventions.” AIA § 18(d)(1). The legislative history of the AIA explains that the
scope of this definition is broad — it “was drafted to encompass patents claiming
activities that are financial in nature, incidental to a financial activity or
complementary to a financial activity.” 77 Fed. Reg. 157 (Aug. 14, 2012) at 48,735
(quoting 157 Cong. Rec. S5432 (daily ed. Sept. 8, 2011)).
The legislative history also provides that that the language “practice,
Covered Business Method Patent Review of U.S. Patent No. 8,214,246 Page 5
CBM2015-00116 U.S. Patent No. 8,214,246
administration, or management” is “intended to cover any ancillary activities related
to a financial product or service, including, without limitation, marketing, customer
interfaces, Web site management and functionality, transmission or management of
data, servicing, underwriting, customer communications, and back office
operations—e.g., payment processing, stock clearing.” 157 Cong. Rec. S1360,
S1365 (Mar. 8, 2011).
The legislative history also provides that the definition of technological
invention, for purposes of the Transitional Program for Covered Business Methods,
will be considered on a case-by-case basis and depend on “whether the claimed
subject matter as a whole recites a technological feature that is novel and unobvious
over the prior art, and solves a technical problem using a technical solution.” 77 Fed.
Reg. 157 (Aug. 14, 2012) at 48,753.
The Patent Trial and Appeal Board (“Board”) has repeatedly held that, for the
purposes of CBM review, the term “financial” is “an adjective that simply means
relating to monetary matters” and has allowed review for “patents claiming activities
that are financial in nature, incidental to a financial activity or complementary to a
financial activity.” SAP America, Inc. v. Versata Development Group, Inc.,
CBM2012-00001, Paper 36, Institution Decision at 21-23 (P.T.A.B. Jan. 9, 2013)
(citing 77 Fed. Reg. 157 (August 14, 2012) at 48736).
In a recent example, the Board found this broad standard of “financial product
Covered Business Method Patent Review of U.S. Patent No. 8,214,246 Page 6
CBM2015-00116 U.S. Patent No. 8,214,246
or service” to be satisfied by a claim reciting “controlling the user’s processing of
the given data element value in conformity with the collected protection
attribute/attributes.” Epicor Software Corp. v. Protegrity Corp., CBM2015-00002,
Paper 17, Institution Decision at 10 (P.T.A.B. Apr. 22, 2015) (internal citations
omitted). In Epicor, the Board also relied on the patent specification that discloses
that banking is a field that desires protections against unauthorized access to
databases, and that banking is a financial activity. Id. at 10-11.
Here, the ’246 patent falls squarely within the CBM boundary. Indeed, the
’246 patent is entitled “Method for Performing Retail Sales Analysis,” strongly
suggesting financial activity. (Ex. 1001.) Moreover, the ’246 patent is classified in
the 705 art group, which is defined (in part) by the U.S Patent and Trademark Office
(“USPTO”) as being “uniquely designed for or utilized in the practice,
administration, or management of an enterprise, or in the processing of financial
data.” (Ex. 1006.)
More specifically, the subject matter of the ’246 patent is related to financial
matters, namely providing flexibility in analyzing consumer data such as retail sales,
frequent-shopper and loyalty card statistics, etc., which purportedly can lead to better
decisions on product launches, merchandizing, and other sales and marketing
priorities. (Ex. 1001, Abstract.) “The service/system is designed to answer key sales,
marketing, category management/planning, and provide brand/SKU level insights
Covered Business Method Patent Review of U.S. Patent No. 8,214,246 Page 7
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.…” (Id. at col. 7, lines 24-26.) Figure 2, reproduced below, is an example menu
presented to the user in an initial step of ordering an analysis project to provide such
customer insights and information.
Using the claimed system to gather and organize “[s]uch insights can be used
to provide, for example, an early indication of the success of a re-launch (i.e., is our
launch achieving the expected level of trial and repeat purchase compared with our
competitors and the category?); provide robust and detailed consumer information
Covered Business Method Patent Review of U.S. Patent No. 8,214,246 Page 8
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at an individual product level that can be utilized across the business; and review
consumer purchasing patterns over a time period (such as a year) to plan future
marketing activity.” (Id. at col. 7, lines 26-43.) Reproduced below is Figure 7H
(“What are the weekly key measures for my products?”), which shows a sample
screen shot from the reports that provide the product sales information that can be
used by the user to make better business decisions.
Furthermore, the patent specification describes the claimed transaction and
consumer data as being financial in nature:
In an exemplary embodiment, transaction and/or consumer data
may include “shopping purchase data” or “shopping history data,”
Covered Business Method Patent Review of U.S. Patent No. 8,214,246 Page 9
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which can be information regarding a consumer’s shopping
history, including the identity of products and quantities thereof
that the consumer has purchased. In an exemplary embodiment,
transaction and/or consumer data may also include a consumer’s
demographic data, shopping preferences data, financial data and
the like.
(Id. at col. 7, lines 48-55.)
The patent specification also provides that the alleged “invention is not limited
for use with retail store transactions and that the invention can be used with most (if
not all) types of transactions (such as financial/banking transactions, insurance
transactions, service transactions, telecoms etc.) .…” (Id. at col. 10, lines 21-25.)
The idea of reporting this information for business analysis is embodied in the
patent claims. For example, independent claim 1 recites the following:
1. A method for performing a transaction-related analysis,
comprising the steps of:
providing one or more computerized databases that include
at least one of transaction and consumer data for one or
more establishments, the at least one of transaction and
consumer data including one or more transaction
records associating at least a product identification code
with a consumer identification code;
formulating an analysis project request via a user interface
that is operatively coupled to a computer system having
access to the database; and
Covered Business Method Patent Review of U.S. Patent No. 8,214,246 Page 10
CBM2015-00116 U.S. Patent No. 8,214,246
generating, by the computer system, an analysis project on
the at least one of transaction and consumer data in
response to receiving the analysis project request;
wherein the step of formulating the analysis project request
includes the steps of,
selecting, via the user interface, the analysis project from a
predefined list of available analysis projects;
obtaining, by the computer system a template of executable
database analysis scripts based, at least in part, upon the
selected analysis project;
selecting, via the user interface, one or more analysis
parameters associated with the analysis project; and
loading, by the computer system, the selected one or more
analysis parameters with the template of executable
database analysis scripts to construct an executable
analysis project script to be executed against on the at
least one of transaction and consumer data in the gener-
ating step;
wherein the step of selecting, via the user interface, one or
more analysis parameters associated with the analysis
project includes the step of selecting one or more prod-
ucts from a list of available products;
wherein the step of selecting, via the user interface, one or
more analysis parameters associated with the analysis
project includes the step of selecting a time frame in
which to limit the analysis of the at least one of transaction
and consumer data; and
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CBM2015-00116 U.S. Patent No. 8,214,246
wherein the method further includes the step of executing,
by the computer system, the executable analysis project
script on the at least one of transaction and consumer
data to produce result data.
Claim 8, reproduced below, depends on claim 1 and adds limitations related
to consumer transaction data regarding the rate at which a particular product is
purchased.
8. The method of claim 1, wherein: the one or more transaction records associates the product
identification code with a vendor identification code; and
the predefined list of available projects includes an analysis project providing a comparison of rates at which a product associated with a first vendor identification code and a product associated with a second vendor identification code are purchased.
Several other of the Challenged Claims similarly expressly require tracking
product purchase and shopping history information. (See, e.g., id. at claims 6, 18,
32, 33, 64 (tracking products that are “repeat purchased”); claims 7, 19, 65 (tracking
products that are “cross-purchased”); claims 9, 21 (tracking products purchased by
consumers in different categories); claims 11, 12, 23, 24, 69, 70 (purchaser
categories derived from shopping histories or price sensitivity); claims 25 and 71
(collecting shopper loyalty card data).
Thus, the patent’s description and claims are at least incidental or
complementary toward administering and managing financial transactions, such as
Covered Business Method Patent Review of U.S. Patent No. 8,214,246 Page 12
CBM2015-00116 U.S. Patent No. 8,214,246
shopping-related transactions. Therefore, the ’246 patent and its claims fall within
the definition of a CBM.
D. The Challenged Claims Are Not Directed To A “Technological Invention”
The AIA excludes “patents for technological inventions” from the definition
of CBM patents. AIA § 18(d)(1). As noted above, a patent is not for a technological
invention unless “the claimed subject matter as a whole recites a technological
feature that is novel and unobvious over the prior art; and solves a technical problem
using a technical solution.” 77 Fed. Reg. 157 (Aug. 14, 2012) at 48,753. The
legislative history explains that the “‘patents for technological inventions’ exception
only excludes patents whose novelty turns on a technological innovation over the
prior art and are concerned with a technical problem which is solved by a technical
solution.” Id. at 48735. The claims of the ’246 patent fail both of these requirements.
The Board has cited the following guidance regarding patent claims that
would typically not qualify as “technological inventions”:
(a) Mere recitation of known technologies, such as computer
hardware, communication on computer networks, software, memory,
computer readable storage medium, scanners, display devices or
databases, or specialized machines, such as an ATM or point of sale
device.
(b) Reciting the use of known prior art technology to accomplish
a process or method, even if that process or method is novel and
non- obvious.
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(c) Combining prior art structures to achieve the normal, expected,
or predictable result of that combination.
SAP America, Inc., No. CBM2012-00001 at 25-26 (P.T.A.B. Jan. 9, 2013), citing 77
Fed. Reg. 157 (Aug. 14, 2012) at 48763-48764; see also Alice, 134 S. Ct. at 2359
(holding that the methods claims at issue were directed to non-patentable subject
matter where “[t]he method claims do not, for example, purport to improve the
functioning of the computer itself . . . . [n]or do they effect an improvement in any
other technology or technical field”).
The ’246 patent claims are directed to the standard business practice idea of
gathering and organizing information regarding a retailer’s customers and sales, and
analyzing that data to gain “insights” about the customers in order to make better
business decisions. While long in patent-speak, independent claim 1 (reproduced
above) is substantially the same as the other two independent claims challenged
herein, claims 29 and 62. In one form or another, each independent claims requires
the following limitations, none of which purportedly improves the performance of
the claimed method or system in a technological way (see ex. 1004 at ¶ 16):
(1) one or more databases of transaction or consumer data;
(2) formulating an analysis project request on the data via a user interface
connected to a computer system that has access to the database(s),
which includes the steps of:
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(a) user selecting the analysis project from a predefined list of
available analysis projects;
(b) obtaining a template of executable database analysis scripts
based, at least in part, upon the selected analysis project;
(c) user selecting analysis parameters, which includes
(i) selecting one or more products from a list of available
products; and
(ii) selecting a timeframe;
(d) loading the selected analysis parameters with the template of
executable database analysis scripts to construct an executable
analysis project script to be executed against on the at least one
of transaction and consumer data;
(3) generating an analysis project on the data by executing the script; and
(4) presenting/outputting the project results.
The closest these claims come to reciting anything technological are the words
“computer,” “database,” and “database analysis scripts.” (Id.) The claims do not
recite—and the patent does not describe—some new technology inside the
“computer,” “database,” or “database analysis scripts.” For example, the claims do
not recite—and the patent does not describe, some new way for the computer to load
information from the database to execute the scripts in a way to speed up computer
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processing.
Instead of describing anything unique about any of the disclosed hardware or
software programming implemented by the hardware, the patent merely provides
that conventional hardware and software can be used to implement the abstract idea
of a retailer knowing its customer by gathering and organizing customer and sales
information. (Id. at ¶¶ 16-32.) For example, the patent recites that the allegedly
inventive system can be provided “over a computer network, such as the Internet 42,
using an appropriate network-enabled (Web-enabled) device, such as a personal
computer 44. Other network-enabled devices (such as PDAs, cell-phones, etc.) will
be apparent to those of ordinary skill in the art. Preferably, the network-enabled
device includes a display and an input device (such as a mouse, keyboard, voice-
recognition, etc.).” (Ex. 1001 at 8:35-41; see also ex. 1004 at ¶ 18.)
The patent goes on to explain that conventional “commercially available
scripting language[s]” can be used to generate the reporting of the customer and sales
information. The patent further provides that “any suitable spreadsheet product may
be used to generate these projects such as Microsoft Excel, Lotus 1-2-3, StarOffice
Calc, OpenOffice.org Calc, and the like. It is also within the scope of the invention,
and it will be appreciated by those of ordinary skill, that the projects can be generated
in other suitable formats, and using other suitable tools (whether off-the-shelf,
custom, or a combination of both) for generating the types of projects described
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herein.” (Ex. 1001 at 12:62 – 13:2.)
Thus, the potentially technical claim limitations taken alone or in combination
with the customer and transaction data limitations amount to nothing more than a
recitation of known technologies, such as computer hardware or database software,
or the use of known prior art technology to assist the retailer in its gathering and
organizing of customer and sales information. (See Ex. 1004 at ¶¶ 16-32) (explaining
that the computer, database, and spreadsheet functionality described by the ’246
patent was conventional and routine long before the ’246 patent was filed in 2004.)
For example, institutions had been regularly querying database systems since the
1970s. (See, e.g., Ex. 1004 at ¶ 23; Ex. 1012; Ex. 1013.) Using software scripts to
run queries in commercial SQL-based database products also dates back to at least
the 1990s. (Ex. 1004 at ¶¶ 28-29, 32; Ex. 1014 at 301, 302; Ex. 1022; Ex. 1023; Ex.
1025; Ex. 1026 at 10:1-4.) Similarly, using spreadsheets in various ways to output
the results of such queries was also routine long before 2004. (Ex. 1004 at ¶¶ 30-32;
Ex. 1029.)
Nor does the ’246 patent solve a technical problem. The patent does not
identify any technical problem that is addressed by these claims. Instead, the
“problem” it discusses is not technical, but instead involves non-technical sales and
marketing issues such as effectiveness of product promotions and launches in the
marketplace. (See Ex. 1001 at 7:24-43.)
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In sum, CBM review is appropriate because the claims of the ’246 patent
cover methods and systems directed at organizing and comparing customer
information for managing the marketing and selling of products, but fail to recite a
new technological feature, and do not solve a technical problem with a technical
solution.
IV. STATEMENT OF PRECISE RELIEF REQUESTED FOR EACH CLAIM CHALLENGED
A. Claims For Which Review Is Requested
Petitioner respectfully requests review and cancellation of claims 1-9, 11-14,
16-19, 21, 23-32, 34-35, 37-45, 51-56, 58, 60, 62-67, and 69-73 of the ’246 patent
(the “Challenged Claims”) under 35 U.S.C. § 321 and AIA § 18.
B. Statutory Grounds Of Challenge
Petitioner requests that the Challenged Claims be cancelled as unpatentable
under 35 U.S.C. § 101. The reasons for unpatentability are detailed below.
C. Person Having Ordinary Skill In The Art In 2004
“The ordinary and customary meaning of a claim term is the meaning that the
term would have to a person of ordinary skill in the art in question at the time of the
invention, i.e., as of the effective filing date of the patent application.” Phillips v.
AWH Corp., 415 F.3d 1303, 1313 (Fed. Cir. 2005) (en banc). Here, the ’246 patent
was filed in 2004. In 2004, a person of ordinary skill in the art for the ’246 patent
would have a Bachelor’s degree in Electrical Engineering, Computer Engineering,
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or Computer Science, or equivalent work experience, and at least four years of
experience designing database systems.
V. CLAIM CONSTRUCTION
Unlike in district court proceedings, there is no presumption of patent validity
in CBM review proceedings. 77 Fed. Reg. 157 (August 14, 2012) at 48697 (citing
Microsoft Corp. v. i4i Ltd. P’ship, 131 S. Ct. 2238, 2243 (2011)). Thus, in CBM
review proceedings a claim “shall be given its broadest reasonable construction in
light of the specification of the patent in which it appears.” 37 C.F.R. § 42.300(b);
see also MPEP § 2258 (applying broadest reasonable construction standard to ex
parte reexamination proceeding).
For the purposes of this petition, it is not necessary to set forth any explicit
construction for any particular claim in the ’246 patent to determine that the at least
one of the Challenged Claims is unpatentable under 35 U.S.C. § 101, and that a
covered business review should therefore be instituted. Thus, for the purposes of this
petition, the ’246 patent’s claim terms are to be given their broadest reasonable
interpretation, as understood by one of ordinary skill in the art and consistent with
the disclosure. See 77 Fed. Reg. 157 (August 14, 2012) at 48764 (“Regarding the
need for a claim construction, where appropriate, it may be sufficient for a party to
provide a simple statement that the claim terms are to be given their broadest
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reasonable interpretation, as understood by one of ordinary skill in the art and
consistent with the disclosure.”.
In a CBM, the broadest reasonable interpretation applies even when a district
court has construed the claims in a separate proceeding. That is the case here in that
the Northern District of Illinois has entered an order construing the claims of the
’246 patent. (Ex. 1005.) See In re Abbott Diabetes Care, Inc., 696 F.3d 1142, 1148
(Fed. Cir. 2012).
So far as this CBM is concerned, Petitioner explains throughout this petition
that the claim terms “computer,” “database,” and “database analysis scripts” were
conventional and routine technology by the time the ‘246 patent was filed in 2004.
In its claim construction order, the District Court did not separately construe these
terms. Nonetheless, in 2004, each of these terms was plainly understood by persons
having ordinary skill in the art and therefore they should be giving their plain
meaning, and no further construction is necessary for the purposes of this petition.
That said, and without agreeing that the District Court’s claim constructions
are correct, the Board may find the District Court’s claim constructions are
summarized in the table below. Although the District Court’s constructions were set
forth under the Phillips standard of claim construction as opposed to the broadest
reasonable interpretation, Petitioner submits that the District Court’s constructions
illustrate that the ’246 patent claims attempt to claim an abstract idea implemented
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with generic computer and database functionality that does not transform the claims
into patentable subject matter. Petitioner submits that to the extent the District
Court’s constructions differ from the broadest reasonable interpretation, that the
broadest reasonable interpretation would not change the fact that the claimed subject
matter relies on generic and conventional computer and database related
components.
Disputed Claim Term Court’s Construction
“template of executable database analysis scripts”
a template of executable database analysis scripts
“plurality of analysis project script executable code templates”
a collection of analysis project script executable code templates
“loading … the selected one or more analysis parameters with”
merging, inserting or incorporating the selected analysis parameter(s) into
“feeding … the obtained parameters into” “feeding the obtained parameters into”
merging, inserting, or incorporating the obtained analysis parameters into
“to construct an executable analysis project script”
to form by assembling or combining parts, to build or create a package of code that can be run (without additional instructions or data) on the retail sales, consumer and other data in the database in order to carry out a particular analysis project that has been requested by the user
“to produce an executable job file” to create a package of code that can be run (without additional instructions or data) on the retail sales, consumer and other data in the database in order to carry out a particular analysis project that has been requested by the user.
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“inserting the returned results into a selected one of the plurality of analysis project interactive output spreadsheet templates to produce an interactive output”
inserting the returned results into an analysis project interactive output spreadsheet template, selected from a collection of templates, to produce a spreadsheet based interactive report that can be manipulated by a user
“a user interface operatively coupled to the computer system”
a user interface that is electrically coupled, coupled via a direct or indirect data link, or capable of being coupled via a direct or indirect data link to the computer system
“a computer interface provided by the computer system”
a computer interface provided by the computer system
VI. THE CHALLENGED CLAIMS ARE UNPATENTABLE UNDER 35 U.S.C. § 101
A. The Two-Step Test For Analyzing Patentability Under 35 U.S.C. § 101
Patent-eligible subject matter is defined in 35 U.S.C. § 101 as “any new and
useful process, machine, manufacture, or composition of matter, or any new and
useful improvement thereof . . . .” There are three exceptions to this: laws of nature;
natural phenomena; and abstract ideas. Mayo Collaborative Servs. v. Prometheus
Labs., Inc., 132 S. Ct. 1289, 1293 (2012). A two-part framework should be followed
in order to “distinguish[] patents that claim laws of nature, natural phenomena, and
abstract ideas from those that claim patent-eligible applications of these concepts.”
Alice Corp. Pty, Ltd. v. CLS Bank Int’l, 134 S. Ct. 2347, 2355 (2014) (citing Mayo,
132 S. Ct. at 1293).
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First, determine whether the claims are directed to one of the above patent-
ineligible categories. Id. Second, determine whether additional elements of the
claims transform the claims such that the combination is “sufficient to ensure that
the patent in practice amounts to significantly more than a patent upon the [ineligible
concept] itself.” Id. (citing Mayo, 132 S.Ct. at 1294); see also Ultramercial, Inc. v.
Hulu, LLC, 772 F.3d 709, 714-716 (Fed. Cir. Nov. 14, 2014) (applying two-step test
from Alice Corp. and Mayo to a Section 101 challenge).
The USPTO adopted this two-step framework as a test for analyzing the
patentability for claims directed to abstract ideas in its “Memorandum Regarding
Preliminary Examination Instructions In View of Alice Corp.” (Ex. 1003.) The
Board has since applied this test when evaluating patentability under Section 101
during CBM review. See, e.g., Linkedin Corp., v. Avmarkets, CBM2013-00025,
Paper 30, Final Written Decision (P.T.A.B. Nov. 10, 2014); Salesforce.com, Inc. v.
Virtualagility, Inc., CBM2013-00024, Paper 47, Final Written Decision (P.T.A.B.
Sept. 16, 2014); U.S. Bancorp v. Retirement Capital Access Management Co.,
CBM2013-00014, Paper 33, Final Written Decision (P.T.A.B. Aug. 22, 2014);
Indeed, Inc. v. Career Destination Development, LLC, CBM2014-00068, Paper 11,
Institution Decision (P.T.A.B. Aug. 20, 2014). The same test applied here shows the
challenged claims are not patentable.
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B. The Challenged Claims Are Directed To An Abstract Idea
Regarding the first step of the Alice framework, the Supreme Court has
repeatedly held that claims covering “fundamental economic practice[s] long
prevalent in our system of commerce” are directed to abstract ideas. Id. at 2356
(quoting Bilski v. Kappos, 561 U.S. 593, 611 (2010)). In Alice, the claims at issue
disclosed a “computer-implemented scheme for mitigating ‘settlement risk’ (i.e., the
risk that only one party to a financial transaction will pay what it owes) by using a
third party intermediary.” Alice, 134 S. Ct. at 2351-52. Applying the first step in the
Section 101 analysis, the Court held that the claims at issue were drawn to the
abstract idea of “intermediated settlement.” Id. at 2355. In so holding, the Court
emphasized that this concept was “a fundamental economic practice long prevalent
in our system of commerce” and “a building block of the modern economy.” Id. at
2356.
Each of the Challenged Claims recites steps directed at such fundamental
business activities. Specifically, independent claims 1, 29, and 62 each requires a
method or system for (1) providing a database with customer or transaction
information; (2) selecting a predefined project for analyzing the customer or
transaction information; (3) using conventional scripts for searching the database to
obtain the customer or transaction information; and (5) outputting the results into a
spreadsheet template. As discussed in Section III above, these steps are directed at
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the standard business practice of gathering and organizing customer and transaction
information in order to make business decisions regarding product launches,
merchandizing, and other sales and marketing priorities is a fundamental part of
engaging in commerce. (See Ex. 1001 at Abstract; see also id. at 7:24-43.). This is
an abstract idea which has been around as long as commerce has existed.
C. The Claimed Generic Elements Do Not Transform The Challenged Claims Into Patentable Subject Matter
Regarding the second step, the Supreme Court has instructed that “mere
recitation of a generic computer cannot transform a patent-ineligible abstract idea
into a patent-eligible invention.” Alice Corp., 134 S. Ct. at 2358. The Supreme Court
went on to conclude that using a computer to perform well-understood, routine,
conventional activities such as electronic recordkeeping, adjusting account balances,
obtaining data, and issuing automated instructions is insufficient to transform claims
directed to an abstract idea into patent-eligible subject matter. Id. at 2359 (citing
Mayo, 132 S. Ct. at 1294).
In the wake of Alice, the Federal Circuit has repeatedly confirmed this
principle. See Content Extraction & Transmission LLC, Wells Fargo Bank, Nat’l
Assoc., 776 F.3d 1343, 1348 (Fed. Cir. 2014) (noting that “[t]here is no ‘inventive
concept’ in . . . perform[ing] well-understood, routine, and conventional activities
commonly used in industry.”); Ultramercial, Inc. v. Hulu, LLC, 772 F.3d 709, 715
(Fed. Cir. 2014) (“Although certain additional limitations, such as consulting an
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activity log, add a degree of particularity, the concept embodied by the majority of
the limitations describes only the abstract idea of showing an advertisement before
delivering free content.”).
Here, in addition to claiming the abstract concept of knowing your customer,
the Challenged Claims include several limitations that recite generic computer-
related devices and functions. However, as discussed below, these generic elements
are insufficient to transform the Challenged Claims into patentable subject matter.
The independent claims recite methods and systems requiring only a generic
computer implementing conventional database functionality. (Ex. 1004 at ¶¶ 16, 21-
32.) For example, the independent claims recite in one formulation or another a
“computer” having access to a “database”, of “transaction and consumer data,”
through an “interface,” user-selected search “parameters” for “analysis,”
“identification of retail products for analysis,” “identification of a timeframe for
analysis,” computer code for searching the database in the form of a “template of
executable database analysis scripts” and “an executable analysis project script”, and
“output spreadsheet templates” (claim 62 only). The ’246 patent does not purport to
invent any of these claim elements. Instead, such computer functionality was
commonplace since long before 2004, and achieve their normal, expected, or
predictable result alone and in combination with one another.
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1. Courts Have Repeatedly Found That Basic Database Functionality Does Not Transform Patent Claims Directed At Abstract Ideas Into Patentable Subject Matter
It is well-established that computer and database technology, thoroughly
disclosed in the prior art, does not transform the claims to something “significantly
more” than the ineligible abstract concept applied on generic computer equipment
that would be required under under Mayo. See Mayo, 132 S. Ct. at 1294. For
example, in Accenture Global Servs., GmbH v. Guidewire Software, Inc., 728 F.3d
1336 (Fed. Cir. 2013), the claims at issue recited an “insurance transaction database”
for storing information related to insurance transactions, and a “task library
database” for storing rules about what should happen when information in the
insurance transaction database changes. Accenture, 728 F.3d at 1338. The Federal
Circuit instructed that the recitation of specialized databases to carry out the abstract
idea of “handling insurance-related information” did not save the claims from
invalidity under Section 101. See Accenture, 728 F.3d at 1344-45 (“[Patentee]’s
attempts to limit the abstract concept to a computer implementation and a specific
industry [] do not provide additional substantive limitations . . . . [T]he system claims
themselves only contain generalized software components arranged to implement an
abstract idea on a computer.”); see also Enfish, LLC v. Microsoft Corp., No. 2:12-
cv-07360, 2014 WL 5661456, at *6-*7 (C.D. Ca. Nov. 3, 2014) (“For millennia,
humans have used tables to store information. . . . In essence, the claims capture the
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concept of organizing information using tabular formats.”) (emphasis in original);
Data Distribution Techs., LLC, v. BRER Affiliates, Inc., No. 12-4878, 2014 WL
4162765, at *11 (D.N.J. Aug. 19, 2014) (concluding that a patent directed to
maintaining a database and updating users about new information in the database is
abstract and noting that “database management is a fundamental economic or
business practice”).
A court in Virginia recently reached the same conclusion on patent claims
strikingly similar to those of the ’246 patent. Specifically, the claims recited
limitations directed to storing records in a database, filtering and aggregating
information, “submitting queries to the database utilizing predetermined reports for
retrieving information,” and “outputting a report based on the queries.”3 Amdocs
3 The relevant claim at issue in Amdocs recites in full as follows:
16. A computer program product stored in a computer readable medium for
reporting on a collection of network usage information from a plurality of network
devices, comprising:
computer code for collecting network communications usage information in real-
time from a plurality of network devices at a plurality of layers;
computer code for filtering and aggregating the network communications usage
information;
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(Israel), Ltd. v. Openet Telecom, Inc., 2014 WL 5430956, at *8 (E.D. Va. Oct. 24,
2014). The court noted that the limitations reciting conventional features of
databases such as “collecting, filtering, [and] aggregating” information “amount[] to
‘electronic recordkeeping,’ which is one of the most basic functions of a computer.”
Id. (quoting Alice, 134 S. Ct. at 2359). Moreover, with respect to the limitations
computer code for completing a plurality of data records from the filtered and
aggregated network communications usage information, the plurality of data
records corresponding to network usage by a plurality of users;
computer code for storing the plurality of data records in a database;
computer code for submitting queries to the database utilizing predetermined
reports for retrieving information on the collection of the network usage
information from the network devices; and
computer code for outputting a report based on the queries;
wherein resource consumption queries are submitted to the database utilizing the
reports for retrieving information on resource consumption in a network; and
wherein a resource consumption report is outputted based on the resource
consumption queries.
Amdocs, 2014 WL 5430956, at *8 (emphasis added).
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directed to running queries on the database using predetermined reports, the court
noted that “storing and querying information in a database, and building reports
based on that information, is one of the most basic functions of a database system.”
Id. (emphasis added). Because the claim at issue was “directed to a computer
functioning in a conventional way, and a database functioning in a conventional
way,” the claim was directed to ineligible subject matter. Id.
2. The ’246 Patent’s Claimed Database And Related Functionality Is Conventional And Not Inventive
Database systems date back decades, and a variety of institutions were
regularly querying databases using computer software by the mid-1970s. (Ex. 1004
at ¶ 23.) Similarly, it was common by the late 1970s to input search parameters into
SQL programs to query databases. (Id. at ¶¶ 24-25; Ex. 1015.)
Similarly, using templates of executable database analysis scripts was also
routinely used in database systems. For example, dunnhumby LTD and dunnhumby
USA have asserted in the underlying litigation that SQL prepared statements satisfy
the claim limitations “template of executable database analysis scripts” (claims 1,
29) and “script executable code templates” (claim 62). (Ex. 1004 at ¶ 26.) However,
SQL prepared statements have also been used for decades. (Id.) As far back as 1989,
IBM used the “SQL PREPARE” command to generate SQL prepared statements.
(Id.) By 1992, the PREPARE command, that IBM and others had been routinely
using, was included in the internationally-adopted standard for SQL. (Id.; Ex. 1016;
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Ex. 1017.) Therefore “prepared statements” had become the standard by the early
1990s.
Thus, the ’246 patent does not purport to have invented a template of
executable database analysis scripts or script executable code templates of any kind.
In fact, the ’246 patent did not provide any examples of any, nor describe how one
would create them. Instead, the patent merely recites that they are used: “[t]he
particular format of the interactive spreadsheet 65 will differ depending on what type
of analysis project is being performed, and the appropriate format will be specified
by the script template 61 that was used to encode the analysis project on the front
end, as described above. For each type of analysis project, the script template 61
utilized is associated with a corresponding spreadsheet template that is formatted in
an appropriate way to receive and present the data returned by the search/query for
that analysis project. For use with the present invention, any suitable spreadsheet
product may be used to generate these projects such as Microsoft Excel, Lotus 1-2-
3, StarOffice Calc, OpenOffice.org Calc, and the like. It is also within the scope of
the invention, and it will be appreciated by those of ordinary skill, that the projects
can be generated in other suitable formats, and using other suitable tools (whether
off-the-shelf, custom, or a combination of both) for generating the types of projects
described herein.” (See, Ex. 1001 at 12:51-61.)
The lack of detail regarding the claimed script templates and spreadsheet
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templates suggests that they were routine and matters of common knowledge at the
time the patent was filed. Application of Fox, 471 F.2d 1405, 1407 (C.C.P.A. 1973)
(finding claimed method obvious and “admittedly old . . . in part is deducible from
the fact that it assumes anyone desiring to carry out the process would know of the
equipment and techniques to be used, none being specifically described.”)
Nor does the patent purport to improve the functioning of the computer itself
or database, or effect an improvement in any other technological or technical field.
(Ex. 1004 at ¶ 16.) Instead, the ’246 patent’s alleged invention uses pre-existing,
conventional database technology such as database analysis scripts to implement the
idea of gathering and organizing retail customer and product information.
Finally, the ’246 patent is not directed to the type of subject matter that the
Federal Circuit found to be patent-eligible in DDR Holdings, LLC v. Hotels.com,
773 F.3d 1245, 1259 (Fed. Cir. 2014). In DDR Holdings, the court held that the
claimed subject matter was patent-eligible in part because it was a “solution []
necessarily rooted in computer technology in order to overcome a problem
specifically arising in the realm of computer networks.” DDR Holdings, 773 F.3d
at 1257. Here, there is no problem arising specifically in the realm of computer
networks that the ’246 alleged invention solves. Retailers endeavored to know their
customers long before the advent of computers. And the ’246 patent does not purport
to invent any new database technology that overcomes technical limitations in prior
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technology.
Thus, claims 1, 29, 62 are unpatentable under 35 U.S.C. § 101 because they
do not recite sufficient additional elements, and instead merely “recite a handful of
generic computer components configured to implement the [abstract] idea.” Alice
Corp., 134 S. Ct. at 2360.
D. The Dependent Claims Are Directed At The Same Abstract Idea And Do Not Transform The Claims Into Patentable Subject Matter
The challenged dependent claims do not add anything to the independent
claims that would make them any less abstract. Nor do they add anything inventive
or technical that would transform the claims into patentable subject matter. (Ex. 1004
at ¶¶ 17-19.) All depend on and share the same underlying idea to which the
independent claims are directed and merely add basic data gathering or insignificant
post-solution activity steps in pursuit of the “knowing your customer” abstract idea.
1. Generic Computer/Network Devices And Functions
Claims 2, 3, 14, 26-28, 51, 58, and 60 add limitations regarding generic
computer equipment, such as network devices, or generic computer functions such
as saving information for re-use later or returning results in a spreadsheet.
Specifically, claim 2 adds the limitation “wherein the user interface is resident
on a network device operatively coupled to the computer system over a global
computer network.” Claim 3 adds the limitation “wherein the network device is a
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web-enabled device operatively coupled to the computer system over the world-
wide-web.” These added limitations do not change the claims’ abstract goal of
knowing your customer, but merely add the basic concept of a generic computer
system being connected to a global network, namely the world-wide-web. (See, e.g.,
Ex. 1004 at ¶ 18; Ex. 1014 at 301, 382) (describing downloading data over the
Web).)
Claim 14 adds the limitation “saving at least portions of the analysis project
request for re-use in the formulation of future analysis project requests.” Saving
customer and transaction information for re-use in future analysis projects is a
routine step of gathering and organizing customer and transaction information
performed by a retailer as part of knowing its customer.
Claim 26 adds the limitation “wherein the step of generating, by the computer
system, an analysis project includes the steps of: obtaining, by the computer system,
a spreadsheet template; and inserting, by the computer system, the result data into
the spreadsheet template to provide the analysis project.” This step is routine,
insignificant spreadsheet functionality that does not transform the claim into
patentable subject matter.
Claim 27 adds the limitation “wherein the spreadsheet template is an
interactive spreadsheet template and the analysis project is an interactive analysis
project.” This step is routine, insignificant spreadsheet functionality that does not
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transform the claim into patentable subject matter.
Claim 28 adds the limitation “wherein the spreadsheet template is obtained
based, at least in part, upon the selected analysis project.” Claim 51 adds the
limitation “wherein: the project reflecting the returned results is presented as a
spreadsheet file; the method further comprises a step of generating the spreadsheet
file from the returned results; and the generating step including the steps of selecting
a spreadsheet project template from a plurality of available spreadsheet project
templates based, at least in part, upon the analysis project selection and populating
the spreadsheet project template with at least a portion of the returned results.” This
step is routine, insignificant spreadsheet functionality that does not transform the
claim into patentable subject matter. (See, e.g. Ex. 1004 at ¶¶ 30-32; Ex. 1029)
(describing spreadsheet functionality).)
Claim 58 adds the limitation “wherein the step presenting to the user a project
reflecting the returned analysis includes the steps of: notifying the user of the
availability of the project; and providing the user with access to the project after
notifying the user and upon the user requesting access to the project.” This step is
routine, insignificant computer functionality that does not transform the claim into
patentable subject matter.
Claim 60 adds the limitation “wherein the step of providing the user with
access to the project includes the step of providing the access to the project to the
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user via a web-based interface.” This step is routine, insignificant computer
functionality that does not transform the claim into patentable subject matter.
These limitations do not change the claims’ abstract goal of knowing your
customer, nor introduce concrete technical innovations, but merely add generic
equipment and functions that were conventional and routine by 2004. As noted
above, performing basic database and spreadsheet functions such as storing and
querying information is not enough to transform otherwise abstract claims into
patentable subject matter. See Enfish, 2014 WL 5661456 at *6-7; Amdocs, 2014 WL
5430956 at *8.
In Bancorp Servs. v. Sun Life Assurance Co. of Canada, 687 F.3d 1266, 1277-
78 (Fed. Cir. 2012), the Federal Circuit held that claims including computer elements
such as a “generator,” a “calculator,” and “digital storage” failed Section 101’s
requirements. Even if the computer “performs more efficiently what could
otherwise be accomplished manually,” the claims remain invalid. Id. at 1279.
Similarly, reference to performing conventional steps over a “global computer
network” or using client and server computers do not save dependent claims that
refer to such features. See, e.g., CyberSource Corp., v. Retail Decisions, Inc., 654
F.3d at 1370 (2011) (gathering data over the internet does not transform concept into
patent eligible one). In Accenture Global Servs., 728 F.3d at 1344, the Court
concluded that, in addition to the database features discussed above, claim elements
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for “computer components including…a client component, and a server component,
which includes an event processor, a task engine, and a task assistant” did not
transform abstract claims into patent eligible ones.
Finally, recitation of generic user interfaces to generate or access reports do
not render these claims patent eligible either. See Shortridge v. Foundation
Construction Payroll Service, LLC, 2015 WL 1739256, at *12 (N.D. Cal., April 14,
2015) (finding features such as “a networked plurality of computer processors,” “at
least one user interface,” and “a plurality of independent processing modules
connected by a plurality of interfaces to the core payroll calculation and processing
engine” insufficient to make claims patent eligible).
2. Collecting, Downloading, Or Transmitting Information
Claims 4, 17, 25, 52, and 71 add limitations directed to collecting or
transmitting information, such as downloading project results over the internet.
Specifically, Claims 4 and 17 add the limitation “downloading” the
project/result data. Claim 4 also adds the limitation that the project result is
“transmitted.” Adding a “downloading” and/or “transmitting” step does not change
the claims’ abstract goal of knowing your customer, but merely adds a step that was
conventional and routine by 2004.
Claims 25 and 71 add the limitation “collecting at least a portion of the at least
one of transaction and consumer data from shopper loyalty card data,” which is
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basic, non-technical sales information that is part of knowing your customer.
Claim 52 adds the limitation “wherein at least one of transaction and consumer
data includes an identity of products purchased, quantity of products purchased, date
of purchase, and a code related to a particular purchasing consumer,” which is basic,
non-technical sales information that is part of knowing your customer.
As noted above, performing basic computer functions such as collecting or
transmitting information over the Internet is not enough to transform otherwise
abstract claims into patentable subject matter. See buySAFE, Inc. v. Google, Inc.,
765 F.3d 1350, 1355 (Fed. Cir. 2014) (“That a computer receives and sends the
information over a network . . . is not even arguably inventive.”); Ultramercial, 772
F.3d at 716 (“The claims’ invocation of the Internet also adds no inventive concept.
As we have held, the use of the Internet is not sufficient to save otherwise abstract
claims from ineligibility under § 101.”); id. (“[T]he steps of consulting and updating
an activity log represent insignificant ‘data-gathering steps’ . . . and thus add nothing
of practical significance.”).
In IpLearn, LLC v. K12 Inc., 2014 WL 7206380 (D. Del., Dec. 17, 2014), the
court held that a claim providing for gathering and analyzing information via the
internet regarding a user’s performance on tests was “an abstraction, addressed to
fundamental human behavior related to instruction….” Id. at 6. The court noted
that this was particularly so when the claim’s “steps are summarized without their
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generic references to computers and networks: 1) accessing a learner’s test results,
2) analyzing those test results, 3) providing guidance on weaknesses, 4) generating
a report on two or more subjects to be shared with others [and four other
limitations].” Id.
3. Ways To Get To “Know Your Customer”
Claims 6-9, 18, 19, 21, 30-32, 34, 35, 37-45, and 64-67 add limitations
directed to various ways of implementing the abstract idea of “knowing your
customer” using a database by claiming various ways and methodologies of getting
and using information about your customer and sales.
Specifically, claims 6 and 64 add the limitation “providing rates at which a
product associated with the product identification code is repeat purchased by the
consumer associated with the consumer identification code.”
Claims 7 and 65 add the limitation “providing rates at which products
associated with the vendor identification code are cross-purchased by the consumer
associated with the consumer identification code.”
Claims 8 and 66 add the limitation providing “rates at which a product
associated with a first vendor identification code and a product associated with a
second vendor identification code are purchased.”
Claims 9 and 67 add the limitation providing “rates at which a product
associated with the product identification code is purchased by consumers in
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different consumer categories.”
Claim 18 adds the limitation “wherein the analysis project request pertains to
an analysis project providing rates at which a product associated with the product
identification code is repeat purchased by the consumer associated with the
consumer identification code.” Claim 19 adds the limitation “wherein: the one or
more transaction records associates the product identification code with a vendor
identification code; and the analysis project request pertains to an analysis project
providing rates at which products associated with the vendor identification code are
cross-purchased by the consumer associated with the consumer identification code.”
These limitations merely specify that the particular project should provide
information regarding a particular consumer purchasing products from a particular
vendor, which is basic, non-technical sales information that is part of knowing your
customer.
Claim 21 adds the limitation “wherein: the one or more transaction records
associates the consumer identification code with a purchaser category; and the
analysis project request pertains to an analysis project providing a comparison of
rates at which a product associated with the product identification code is purchased
by consumers in different purchaser categories.” This limitation merely specifies
that the project should provide information regarding a particular product being
purchased by different types of purchasers, which is basic, non-technical sales
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information that is part of knowing your customer.
Claim 30 adds the limitation “wherein the parameters for analysis include
parameters relating to measures of retail sales.” Claim 31 adds the limitation
“wherein the parameters for analysis include an identification of an analysis format.”
Claim 32 adds the limitation “wherein the analysis format pertains to rates at which
consumers make repeat purchases of a retail product.” Claim 34 adds the limitation
“wherein the analysis format pertains to an identification of successful or
unsuccessful recently-launched retail products for a retail establishment.” Claim 35
adds the limitation “wherein the analysis format pertains to rates at which consumers
cross-shop a vendor’s retail products.” Claim 37 adds the limitation “wherein the
analysis format pertains to key sales measures in a particular retail product
category.” Claim 38 adds the limitation “wherein the analysis format pertains to key
sales measures for a vendor’s retail products.” Claim 39 adds the limitation “wherein
the analysis format pertains to key sales measures for the vendor’s retail products
over time.” Claim 40 adds the limitation “wherein the analysis format pertains to
key sales measures for a particular brand of retail products over time.” Claim 41
adds the limitation “wherein the analysis format pertains to other retail products
purchased by consumers of a vendor’s retail products.” Claims 42 and 43 add the
limitation “wherein the analysis pertains to locations where a” particular retail
product or particular vendor’s brand of retail products is sold. Claims 44 and 45 add
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the limitation “wherein the analysis pertains to types of consumers who purchase the
vendor’s retail products” or do so “over time.”
Observing and analyzing consumer behavior—including purchasing behavior
where the product, its price, and the identity of the consumer are recorded—is not a
new concept. In Tuxis Technologies, LLC v. Amazon.com, Inc., 2014 WL 4382446,
*3-*6 (D. Del. 2014), the court granted a motion to dismiss because the asserted
claim, directed to applying a basic marketing technique involving observing and
collecting information regarding consumer behavior as to electronic and remote
commerce, claimed patent ineligible subject matter. The court held that claim 1 of
the asserted patent in that case could be “broken down into the following main steps:
1) establishing a communication with a user over an electronic communications
device wherein the user initiates the purchase of a good or service; 2) obtaining data
about: the user’s identity, the good or service purchased, and a second data element
relating to the user; 3) generating an upsell offer based on the second data element
related to the identity of the user and the good or service purchased; 4) offering the
upsell item and receiving an acceptance in real time.” Id. at *3-4. The court further
noted that using “certain information obtained about the customer and the initial
purchase” to generate future offers was not new, even if that generation was
performed automatically by a computer: “Shrewd sales representatives have long
made their living off of this basic practice.” Id. at *5.
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In Lumen View Tech. LLC v. Findthebest.com, Inc., No. 13 Civ. 3599, 2013
WL 6164341 (S.D.N.Y. Nov. 22, 2013), the Southern District of New York
considered the invalidity under Section 101 of a patent that analyzed a user’s
preferences to match them with the profile of a potential online dating match. Id. at
*2, 10. The court held that the types of computer-implemented actions claimed—
“1) retrieving the submitted preference data; 2) analyzing the data to compute a
closeness of fit conclusion; and 3) providing a list” of results could be performed by
humans without a computer, although the computer performed them more quickly.
Id. The court further held that dependent claims containing elements such as “adding
data from external co-evaluators (Claim 3); assigning a value figure to the preference
data inputted (Claims 4 and 6); hiding that value figure from participants (Claims 5
and 7); and using the Internet (Claims 8 and 9)” were similarly invalid. Id. at *13.
In sum, all of the foregoing limitations involve collecting basic, non-technical
sales information that is part of abstract idea of knowing your customer.
4. Organizing Or Presenting Information
Claims 5, 11-13, 16, 23, 24, 53-56, 63, 69, 70, 72, and 73 add limitations
directed to specific manners of organizing or presenting information.
Claim 5 adds the limitation “wherein the one or more transaction records
associates the product identification code with at least one of a transaction time and
a transaction date.” This added limitation merely specifies that the transaction
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information associates a particular product transaction with a transaction time and
date, which is routine, non-technical information that is part of knowing and using
customer and product sales information.
Claims 11, 23 and 69 adds the limitation of wherein the consumer/purchaser
“categories are defined based upon data derived from shopping histories associated
with the consumer identification code.” This limitation merely specifies that the
customer information should include shopping history information, which is basic,
non-technical sales information that is part of knowing your customer.
Claims 12, 24, and 70 add the limitation wherein the consumer/purchaser
“categories are defined based upon data associated with price sensitivity associated
with the consumer identification code.” This limitation merely specifies that the
customer information should include price sensitivity information, which is basic,
non-technical sales information that is part of knowing your customer.
Claim 13 adds the limitation “wherein the step of selecting one or more
products from a list of available products is preceded by a step of selecting a product
category from a list of available product categories.” Categorizing products is basic,
non-technical sales information that is part of knowing your customer.
Claims 16 and 63 add the limitation “wherein the one or more transaction
records associates the product identification code and the consumer identification
code with a transaction price.” Including transaction price as part of the transaction
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information is basic, non-technical sales information that is part of knowing your
customer.
Claim 53 adds the limitation “wherein the project reflecting the returned
results is presented as an interactive project.” Claim 54 adds the limitation of
“generating the interactive project from the returned results, the generating step
including the steps of selecting a project template from a plurality of available
project templates based upon at least the analysis project selection and populating
the project template with at least a portion of the returned results.” Claims 55 and 72
add the limitation wherein the interactive project “provides the ability for a user to
toggle between two or more different formats of display of the returned results.”
Claims 56 and 73 add the limitation wherein the two or more different formats of
display of the returned results includes a bar-graph display.” These limitations do
not change the claims’ abstract goal of knowing your customer, but merely add
spreadsheet functionality that was conventional and routine by 2004. Indeed, the
’246 patent provides “any suitable spreadsheet product may be used to generate these
projects such as Microsoft Excel, Lotus 1-2-3, StarOffice Calc, OpenOffice.org
Calc, and the like.” (Exhibit 1001 at 12:61-64.)
Varying ways of organizing or presenting data is not enough to transform an
otherwise abstract idea into patentable subject matter. See, e.g., Digital Image
Techs., LLC v. Elecs. for Imaging, Inc., 758 F.3d 1344, 1350-51 (Fed. Cir. 2014)
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(invalidating claims directed to “a process of organizing information” and an
“abstract process of gathering and combining data,” noting that “a process that
employs mathematical algorithms to manipulate existing information to generate
additional information is not patent eligible). Similarly, the court in Clear with
Computers, LLC v. Dick's Sporting Goods, Inc., 2014 WL 923280 (E.D. Tex.,
January 21, 2014) held that claims involving customizing lists of products using a
computer did not satisfy Section 101’s threshold for patentability. The plaintiff in
Clear with Computers argued that the patent involved a particular type of computer
process involving a configuration engine that could not be duplicated by humans.
The court rejected this argument: “Despite CWC’s assertion to the contrary, a store
clerk, armed with only a pencil and paper, can receive a question about men’s
basketball sneakers, determine the options available (color, brand, size, etc.) and the
availability of those options in inventory, prepare a list of those available options,
and present that list to the customer. Thus, claim 1 covers the mental process of
inventory-based selling limited only by the non-essential configuration engine of a
computer system.” Id. at *6.
The court in Intellectual Ventures I LLC v. Manufacturers and Traders Trust
Company, 2014 WL 7215193, *6-*12 (D. Del., Sept. 18, 2014), held invalid under
Section 101 a claim to storing a consumer profile in a database with a spending limit
associated with the profile and thereafter sending notifications to the consumer if
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transactions exceeded the saved limit. The claim included observing the consumer’s
commercial transactions, and then presenting “over a communication medium and
to a receiving device,…said transaction summary data…wherein said transaction
summary data is configured to be presented by the receiving device in a table.” Id.
at 6. The court noted that “the core idea of the patent is allowing users to set self-
imposed limits on their spending and receive notifications regarding such limits….”
Id. at *6. Storing and presenting over the internet the data in a particular format did
not save the claim: “The steps of storing data from a user, listing data, and presenting
summary data (configured in a table), however, are ways ‘to implement the abstract
idea with routine and conventional [computer] activity.’” Id. at *7, quoting
Ultramercial, 772 F.3d at 716.
Accordingly, none of the dependent claims are directed to patent-eligible
subject matter, and all of the Challenged Claims are unpatentable.
VII. FEE
An electronic payment in the amount of $63,150.00 for the fee specified by 37
C.F.R. § 42.15(b) is being paid at the time of filing this petition, charged to deposit
account no. 02-4550. Any adjustments in the fee may be debited/credited to the
deposit account.
VIII. COUNSEL AND SERVICE INFORMATION
In accordance with 37 C.F.R. § 42.8(b)(3), Petitioner identifies Todd M. Siegel
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as lead counsel and Joseph T. Jakubek as back-up counsel along with service
information for both:
Todd M. Siegel Reg. No. 73,232 [email protected] Joseph T. Jakubek Reg. No. 34,190 [email protected] Klarquist Sparkman LLP 121 SW Salmon St., Ste. 1600 Portland, OR 97204 Phone: 503-595-5300 Fax: 503-595-5301
IX. CONCLUSION
For the reasons above, Petitioner requests that the Board institute trial against
claims 1-9, 11-14, 16-19, 21, 23-32, 34-35, 37-45, 51-56, 58, 60, 62-67, and 69-73.
Further, Petitioner requests an order cancelling these claims. Petitioner reserves the
right to provide additional arguments as needed.
Dated: May 1, 2015 By: /Todd M. Siegel/ Todd M. Siegel Registration No. 73,232 [email protected] KLARQUIST SPARKMAN, LLP One World Trade Center, Suite 1600 121 S.W. Salmon Street Portland, Oregon 97204 Telephone: (503) 595-5300 Facsimile: (503) 595-5301
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CERTIFICATE OF SERVICE
The undersigned certifies that the Petition for Covered Business Method
Review under 35 U.S.C. § 321 and § 18 of the Leahy-Smith America Invents
Act and Exhibits 1001-1029 were served on May 1, 2015, by Express Mail at
the following address of record for the subject patent:
BAKER & HOSTETLER LLP WASHINGTON SQUARE, SUITE 1100 1050 CONNECTICUT AVE. N.W. WASHINGTON DC 20036-5304 JOHN LETCHINGER KATHARINE HEITMAN BAKER & HOSTETLER LLP 191 NORTH WACKER DRIVE, SUITE 3100 CHICAGO, IL 60606 SCOTT STANLEY BAKER & HOSTETLER LLP 312 WALNUT STREET, SUITE 3200 CINCINNATI, OH 45202
By /Todd M. Siegel/ Todd M. Siegel Registration No. 73,232 [email protected] KLARQUIST SPARKMAN, LLP One World Trade Center, Suite 1600 121 S.W. Salmon Street Portland, Oregon 97204 Telephone: (503) 595-5300 Facsimile: (503) 595-5301
CERTIFICATE OF SERVICE