patent appeals Flashcards

1
Q

McRO, Inc. v. Bandai Namco Games America Inc. (Fed. Cir. 2016)

A

Background: Owners of patents for automatically animating the lip synchronization and facial expressions of three-dimensional animated characters brought infringement actions, and cases were consolidated.

  • patent claims were limited to rules with specific, common characteristics, i.e., genus, rather than covering all rules; and
  • patent claim was not directed to abstract idea, and did not merely invoke generic processes and machinery, thus favoring patentability.○ Specific limitations
    § This is to a specific genus of invention rather that a particular species
    § “We therefore look to whether the claims in these patents focus on a specific means or method that improves the relevant technology or are instead directed to a result or effect that itself is the abstract idea and merely invoke generic processes and machinery.”
    “Claim 1 of the ‘576 patent is focused on a specific asserted improvement in computer animation, i.e., the automatic use of rules of a particular type.”

-directed to:
This is unlike Flook, Bilski, and Alice, where the claimed computer-automated process and the prior method were carried out in the same way

the automation goes beyond merely “organizing [existing] information into a new form” or carrying out a fundamental economic practice. Digitech, 758 F.3d at 1351; see also Alice, 134 S.Ct. at 2356. The claimed process uses a combined order of specific rules that renders information into a specific format that is then used and applied to create desired results: a sequence of synchronized, animated characters. While the result may not be tangible, there is nothing that requires a method “be tied to a machine or transform an article” to be patentable.

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2
Q

Affinity Labs of Texas, LLC v. DIRECTV, LLC (Fed. Cir. 2016)

A

Background: Owner of patent related to means for wirelessly delivering regionally broadcasted radio or television content to an electronic device located outside a region of the regionally broadcasted content brought infringement action against broadcast media companies.

holding
§ concept of providing out-of-region access to regional broadcast content, as claimed in patent, was patent-ineligible abstract idea, and patent and its specification contained no “inventive concept” that transformed abstract idea into patent-eligible application of that abstract idea, thus patent was invalid.

  • All the limitation does is to confine the abstract idea to a particular technological environment—in this case, cellular telephones
  • The “abstract idea” step of the inquiry calls upon us to look at the “focus of the claimed advance over the prior art” to determine if the claim’s “character as a whole” is directed to excluded subject matter. *1258 The “inventive concept” step requires us to look with more specificity at what the claim elements add, in order to determine “whether they identify an ‘inventive concept’ in the application of the ineligible subject matter” to which the claim is directed.
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3
Q

Alice Corp. Pty. v. CLS Bank Int’l, 573 U.S. 208 (2014)

A

Background: Banks brought action seeking declaration that patents for mitigating settlement risk in financial transactions by using a computer system as a third-party intermediary were invalid, and patents’ assignee filed counterclaim for infringement.

The Supreme Court has set forth a two-step framework whereby a court determines: (1) whether a claim is “directed to a patent-ineligible concept,” and, if so, (2) whether the elements of the claim “an ‘inventive concept’ sufficient to ‘transform’ the claimed abstract idea into a patent-eligible application.”

Holdings: The Supreme Court, Justice Thomas, held that:
1 the abstract idea of an intermediated settlement was not patentable, and
2 method claims requiring generic computer implementation failed to transform the abstract idea of intermediated settlement into a patent-eligible invention

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4
Q

Amdocs (Israel) Ltd. v. Openet Telecom, Inc.

A

Background: Patentee brought infringement action against competitor, claiming infringement of four patents related to solving an accounting and billing problem faced by network service providers.

holding: claims passed on step 2

  • focus on specificity dovetails with concerns about preemption
  • found a critical advancement over the prior art
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5
Q

Bascom Glob. Internet Servs., Inc. v. AT&T Mobility LLC, 827 F.3d 1341 (Fed. Cir. 2016)

A

Background: Owner of patent claiming a method and system for filtering Internet content, providing customized filters at a remote server, brought infringement action against competitor.

Holding: Patent claims were directed to the inventive concept of filtering content, but the ordered combination of claim limitations revealed an inventive concept that transformed the abstract idea into a patent-eligible invention

invention: § This patent describes its invention as combining the advantages of the then-known filtering tools while avoiding their drawbacks
§ The claimed filtering system avoids being “modified or thwarted by a computer literate end-user,” and avoids being installed on and dependent on “individual end-user hardware and operating systems” or “tied to a single local area network or a local server platform” by installing the filter at the ISP server

  • “an inventive concept can be found in the non-conventional and non-generic arrangement of known, conventional pieces.”
  • The inventive concept described and claimed in the ‘606 patent is the installation of a filtering tool at a specific location, remote from the end-users, with customizable filtering features specific to each end user. This design gives the filtering tool both the benefits of a filter on a local computer and the benefits of a filter on the ISP server.
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6
Q

Berkheimer v. HP Inc., 881 F.3d 1360, 1365 (Fed. Cir. 2018)

A

Background: Patentee brought action for infringement of patent that described methods for digitally processing and archiving files.

holding

  • patent claims were directed to abstract ideas of parsing, comparing, storing, and/or editing data; but
  • genuine issue of material fact existed as to whether some of those claims contained transformative inventive concept.
  • “Whether a claim recites patent eligible subject matter is a question of law which may contain disputes over underlying facts. Patent eligibility has in many cases been resolved on motions to dismiss or summary judgment.”
  • “Whether something is well-understood, routine, and conventional to a skilled artisan at the time of the patent is a factual determination. Whether a particular technology is well-understood, routine, and conventional goes beyond what was simply known in the prior art.”○ Holding disposition:
    § “At this stage of the case, however, there is at least a genuine issue of material fact in light of the specification regarding whether claims 4–7 archive documents in an inventive manner that improves these aspects of the disclosed archival system. Whether claims 4–7 perform well-understood, routine, and conventional activities to a skilled artisan is a genuine issue of material fact making summary judgment inappropriate with respect to these claims.”
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7
Q

Cellspin Soft, Inc. v. Fitbit, Inc., 927 F.3d 1306 (Fed. Cir. 2019)

A

Background: Patentee brought action alleging infringement of patents setting forth method of connecting data capture device to mobile device allowing users to automatically publish content from the data capture device to website.

holding: passed step 2
- “factual disputes about whether an aspect of the claims is inventive may preclude dismissal at the pleadings stage under § 101”.
- Claims that “use an environment—a computer, a mobile phone, etc.—to do significantly more than simply carry out an abstract idea are patent eligible”.

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8
Q

Chamberlain Grp., Inc. v. Techtronic Indus. Co., 935 F.3d 1341 (Fed. Cir. 2019)

A

Background: Owner of patent reciting a moveable barrier operator, such as a garage door opener, featuring a wireless status condition data transmitter that wirelessly relayed status condition messages to one or more remote devices, and patent directed to a rechargeable battery backup for use with both a barrier movement operator and electrically powered equipment, such as a power tool, brought infringement action against competitor.

holding: 1 claim reciting movable barrier was directed to abstract idea;
2 claim reciting movable barrier did not contain inventive concept sufficient to overcome directed to abstract idea;

Two distinct questions that guide the analysis under Alice step two. A court asks: (1) whether each of the elements in the claimed product (apart from the natural laws themselves) involve well-understood, routine, conventional activity previously engaged in by researchers in the field, and (2) whether all of the steps as an ordered combination add nothing to the laws of nature that is not already present when the steps are considered separately.

  • ○ concept of communicating information wirelessly, without more, is an abstract idea.
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9
Q

ChargePoint, Inc. v. SemaConnect, Inc., 920 F.3d 759 (Fed. Cir. 2019)

A

only used to say that the specification helps in analyzing the scope of the patent claims

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10
Q

Content Extraction & Transmission LLC v. Wells Fargo Bank, Nat’l Ass’n, 776 F.3d 1343, 1346 (Fed. Cir. 2014)

A

only really used for: “These improvements to the prior art described in the patent specification lend themselves to showing there is at least a factual dispute regarding whether the invention can be described as well understood, routine, and conventional. “

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11
Q

Core Wireless Licensing S.A.R.L. v. LG Elecs., Inc., 880 F.3d 1356 (Fed. Cir. 2018)

A

Background: Patentee brought action against competitor, alleging infringement of patents disclosing improved display interfaces, particularly for electronic devices with small screens like mobile telephones

holding: claims in patents were not directed to abstract idea of index

  • “Although the generic idea of summarizing information certainly existed prior to the invention, these claims are directed to a particular manner of summarizing and presenting information in electronic devices.”
  • “Claim 1 of the ‘476 patent requires “an application summary that can be reached directly from the menu,” specifying a particular manner by which the summary window must be accessed. The claim further requires the application summary window list a limited set of data, “each of the data in the list being selectable to launch the respective application and enable the selected data to be seen within the respective application.” This claim limitation *1363 restrains the type of data that can be displayed in the summary window. Finally, the claim recites that the summary window “is displayed while the one or more applications are in an un-launched state,” a requirement that the device applications exist in a particular state. These limitations disclose a specific manner of displaying a limited set of information to the user, rather than using conventional user interface methods to display a generic index on a computer. “
  • ultimately says this was a a specific improvement over prior systems, resulting in an improved user interface for electronic devices. (similar to Enfish, Thales, Visual Memory)
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12
Q

DDR Holdings, LLC v. Hotels.com, L.P., 773 F.3d 1245 (Fed. Cir. 2014)

A

background: Patentee brought infringement action against competitors, alleging infringement of patents relating to an e-commerce system and method providing hosts with transparent, context sensitive e-commerce supported pages.
holding: non abstract. passes step 1
- these claims stand apart because they do not merely recite the performance of some business practice known from the pre-Internet world along with the requirement to perform it on the Internet. Instead, the claimed solution is necessarily rooted in computer technology in order to overcome a problem specifically arising in the realm of computer networks.

  • ○ Addressing the dissents point that this is just a store within a store and this the internet analog of that
    § While that concept may have been well-known by the relevant timeframe, that practice did not have to account for the ephemeral nature of an Internet “location” or the near-instantaneous transport between these locations made possible by standard Internet communication protocols, which introduces a problem that does not arise in the “brick and mortar” context
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13
Q

Enfish, LLC v. Microsoft Corp., 822 F.3d 1327, 1335 (Fed. Cir. 2016)

A

background: Owner of patents directed to an information management and database system brought action against competitors, alleging infringement.
holding: not directed to an abstract idea. passes step 1

  • we find it relevant to ask whether the claims are directed to an improvement to computer functionality versus being directed to an abstract idea, even at the first step of the Alice analysis.
  • These claims are directed to a specific improvement to the way computers operate, embodied in the self-referential table
  • ○ the claims are not simply directed to any form of storing tabular data, but instead are specifically directed to a self-referential table for a computer database.
  • The specification also teaches that the self-referential table functions differently than conventional database structures. According to the specification, traditional databases, such as “those that follow the relational model and those that follow the object oriented model,”
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14
Q

Finjan, Inc. v. Blue Coat Sys., Inc., 879 F.3d 1299 (Fed. Cir. 2018)

A

background: Patentee brought action against competitor, alleging infringement of patents directed to identifying and protecting against malware. technology = a method of providing computer security by scanning a downloadable and attaching the results of that scan to the downloadable itself in the form of a “security profile.”
holding: patent claims constituted sufficient non-abstract improvement in computer functionality to render claims patent-eligible
- the method of claim 1 employs a new kind of file that enables a computer security system to do things it could not do before. The security profile approach allows access to be tailored for different users and ensures that threats are identified before a file reaches a user’s computer. The fact that the security profile “identifies suspicious code” allows the system to accumulate and utilize newly available, behavior-based information about potential threats. The asserted claims are therefore directed to a non-abstract improvement in computer functionality, rather than the abstract idea of computer security writ large.

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15
Q

Mayo Collaborative Servs. v. Prometheus Labs., Inc., 132 S. Ct. 1289 (2012)

A

Background: Licensee of patents claiming methods for calibrating proper dosage of thiopurine drugs to treat autoimmune diseases filed infringement suit.

Holding: The Supreme Court, Justice Breyer, held that patents effectively claimed the underlying laws of nature themselves, and thus were invalid.

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16
Q

Realtime Data LLC v. Reduxio Sys., Inc., 831 F. App’x 492 (Fed. Cir. 2020)

A

Background: Patentee brought infringement action against competitor concerning patents relating to methods and systems for digital data compression.

Holding: The Court of Appeals, O’Malley, Circuit Judge, held that the district court’s analysis was insufficient to facilitate meaningful appellate review.

  • “on the record presented to us on appeal, that the district court’s short analysis is insufficient to facilitate meaningful appellate review. We are particularly concerned with four shortcomings in the court’s process: (1) the colloquy between the court and Realtime indicates an apparently improper focus on factual questions that are unsuitable for resolution at the pleading stage and a failure to evaluate the claims as a whole; (2) to the extent the district court purported to resolve the “directed to” question of Alice step 1, its process is unclear and its conclusion questionable; (3) the court did not address or even acknowledge Judge Love’s lengthy written opinions, which were adopted by two district courts, addressing the precise question faced by the court; and (4) although, as the district court requested, Realtime identified Visual Memory LLC v. NVIDIA Corp., 867 F.3d 1253 (Fed. Cir. 2017), as the case most analogous to this one and directed the court to our decision in Enfish, LLC v. Microsoft Corp.,”
  • “It is, of course, incorrect to consider whether a patent as a whole is abstract. The analysis is claim specific. If, as we suspect, the district court’s analysis simply generalized the claims, absent a finding of the representativeness of certain claims and without considering the “directed to” inquiry, that was error.”
17
Q

Thales Visionix Inc. v. United States, 850 F.3d 1343 (Fed. Cir. 2017)

A

-claims reciting a unique configuration of inertial sensors and the use of a mathematical equation for calculating the location and orientation of an object relative to a moving platform were patent-eligible under Alice step one

  • The ‘159 patent claims provide a method that eliminates many “complications” inherent in previous solutions for determining position and orientation of an object on a moving platform.
  • § Though the unconventional utilization of inertial sensors as specified by the ‘159 patent “may seem somewhat strange” to those within the field, id. at 7:19–21, this combination of sensor placement and calculation based on a different reference frame mitigates errors by eliminating inertial calculations with respect to the earth.
  • The mathematical equations are a consequence of the arrangement of the sensors and the unconventional choice of reference frame in order to calculate position and orientation. Far from claiming the equations themselves, the claims seek to protect only the application of physics to the unconventional configuration of sensors as disclosed. As such, these claims are not directed to an abstract idea and thus the claims survive Alice step one
18
Q

Visual Memory LLC v. NVIDIA Corp., 867 F.3d 1253 (Fed. Cir. 2017)

A

background: Holder of patent for computer memory system connectable to processor and having programmable operational characteristics based on characteristics of processor brought infringement action against competitor.
holding: held that claims were directed to patent-eligible subject matter of improved computer memory system, not to abstract idea of categorical data storage

  • “None of the claims recite all types and all forms of categorical data storage.”
  • specification explains that the selective definition of the functions of the cache memory based on processor type results in a memory system that can outperform a prior art memory system that is armed with “a cache many times larger than the cumulative size of the subject caches.”
  • I use this case to discuss interoperability and efficiency since its just one size fits all processing (from the hardware side)

-“Claims do not simply require a “programmable operational characteristic.” Even the broadest claim, claim 1, requires a memory system with a main memory and a cache memory, where the memory system is configured by a computer to store a type of data in the cache memory based on the type of processor connected to the memory system.”

19
Q

Arg: Abstract Idea 1

A

A. The Claims Are Directed to A More Efficient Computerized Gift Card Exchange Marketplace.

sub: The `048 Patent Teaches a Computerized Gift Card Exchange Which Requires Fewer Transaction Steps Than the Prior Art.
- this is inherently a computer system

~~~Instantaneous transaction is improvement over the prior art

  • The improved efficiency of the consumer experience when interacting with a computerized system constitutes an improvement in the functioning of a computer system. See Core Wireless Licensing S.A.R.L. v. LG Elecs., Inc., 880 F.3d 1356, 1363 (Fed. Cir. 2018).
  • The specification’s teaching that the claimed invention increases flexibility and speed over the prior art only bolsters the argument that the claims are directed to an improvement of an existing technology. Enfish, 822 F.3d at 1337.
  • reasoning arg: A consumer attempting to swap the value of a gift card associated with Brand A for a gift card associated with Brand B using prior art systems would have to interact with two different computer systems and potentially two different storefronts.

~~~Even if the prior art were automated by a computer, it would not look anything like the invention taught in claim 12.

  • A specific improvement to computer functionality can be found when the claims recite a distinct process to automate and improve upon the prior art. See McRO, Inc. v. Bandai Namco Games America Inc., 837 F.3d 1299, 1314 (Fed. Cir. 2016).
  • reasoning arg: this invention is an improvement over the prior art because a single transaction encompassing all interested parties and fees in a gift card exchange is more efficient than the prior art alternative of a single transactions carried out by the consumer to achieve a similar end result.

~~~claim 12 of the 048 patent teaches a new and useful computer system that eliminates complications found in prior art gift card exchanges -Similar to the invention in Thales which arranged sensors in a new and useful way to eliminate many “complications” the prior art, the invention in the 048 patent uses an new and useful computerized network architecture to create an improved gift card exchange with fewer complications. Thales Visionix Inc. v. United States, 850 F.3d 1343, 1348 (Fed. Cir. 2017).

20
Q

Arg: Abstract Idea 2

A

A. The Claims Are Directed to A More Efficient Computerized Gift Card Exchange Marketplace.

sub: The Improved Gift Card Exchange Allows for Interoperability Between Retail Brands Operating on the Internet

~~~The claimed invention allows for interoperability among multiple parties resulting in a gift card exchange system that outperforms other means of exchanging gift cards

  • Introducing interoperability into a computer system is another way in which a court deems an invention an improvement to computer functionality. See Visual Memory LLC v. NVIDIA Corp
  • Combining the plurality of smaller computer systems owned by various entities into one computerized gift card exchange creates interoperability between parties’ systems that otherwise did not connect.

~~~ the interoperability problem solved by claims 1 and 12 of the ‘048 patent is necessarily rooted in computer systems.

  • The claims do not “merely recite the performance of some business practice known from the pre-Internet world” but instead address a problem specifically arising in the realm of computer systems. DDR Holdings, LLC v. Hotels.com, L.P.
  • “claimed solution is necessarily rooted in computer technology in order to overcome a problem specifically arising in the realm of computer networks”. Id.
  • The ‘048 patent solves a problem unique to the internet by connecting and facilitating transactions among entities that previously could not transact.

~~~the design of the computerized gift card exchange eliminates the need for redundant systems that waste computing power.

  • By eliminating the need for each brand to create their own exchange, the claimed invention improves computer functionality by reducing the need for redundant systems. See Visual Memory, 867 F.3d at 1260-61
  • As the exchange grows, more brands and vendors can simply connect to the existing exchange without having to create their own exchange. Eliminating the need for parties to create redundant systems allows for a more efficient gift card exchange and an overall improvement to computer functionality.
21
Q

Arg: Abstract Idea 3

A

sub: The Record on Appeal Does Not Support the District Court Finding That the Patent is Directed to an Abstract Idea
- At a minimum, Plastic Jungle has not offered a proper level of proof to enable the district court to grant a motion to dismiss for failure to state a claim based on § 101 grounds. Plastic Jungle asserts that the `048 patent is doing nothing more than applying a computer to the abstract idea of exchanging a chattel. Appx032.

~~~the record is devoid of claim construction.

  • This Court’s decision is limited to the record presented on appeal. See Realtime Data LLC v. Reduxio Sys., Inc., 831 F. App’x 492, 496 (Fed. Cir. 2020).
  • The order granting the motion to dismiss reads, “[t]he basic character of the claimed subject matter is readily ascertainable from the face of the patent.”
  • The district court based its decision on the “basic character” of the `048 patent but that was improper because it is “incorrect to consider whether a patent as a whole is abstract”. Realtime Data 831 F. App’x at 497. The analysis is claim specific and it is improper to generalize the claims. Id.

~~~the specification should be analyzed to aid in the claim construction of the ‘048 patent.

  • Claims must be analyzed in view of their specification. See Phillips v. AWH Corp.,
  • The specification can aid courts in determining what the claims are “directed to” during a step one Alice analysis. See ChargePoint

~~~the factual allegations presented by Cardpool, taken as true, precludes dismissal under Rule 12(b)(6).

  • “[F]actual allegations may preclude dismissing a case under § 101 where, for example, ‘nothing on th[e] record … refutes those allegations as a matter of law or justifies dismissal under Rule 12(b)(6).’” FairWarning IP, LLC v. Iatric Sys.
  • The district court neither adopted Cardpool’s claim construction nor resolved the claim construction disputes and therefore it was improper for the court to enter a dismissal under Rule 12(b)(6).
22
Q

Arg Abstract Idea 4

A

B. The `048 Patent Does Not Attempt to Preempt Every Aspect of Gift Card Value Transfer

~~~The patent does not attempt to gain a monopoly on the generic idea of gift card exchanges. The claims are directed to a particular manner of “exchanging a gift card” according to the computerized system described in the specification and claims.

  • the ‘048 patent does not claim the entire “species” of gift card exchanges but instead claims a specific “genus” which utilizes computer systems implementing data validation and dynamic fee calculations. McRO, 837 F.3d at 1313. Claims 1 and 12 “recite a specific improvement over prior systems”. Core Wireless, 880 F.3d at 1363
  • The claims, read in light of the specification, describe specific means of accessing the computerized gift card exchange, how a gift card’s electronic funds are transferred, how transaction fees are dynamically calculated, and how gift card data is verified.
  • more than just a drafting effort (see Alice)

~~~The claims recite more than a resulting system for gift card exchange. This case is not like Apple, Inc v. Ameranth, Inc., where patent claims were invalidated because they “did not claim a particular way of programming or designing the software … but instead merely claim the resulting systems”.
-This case is more like Finjan because the claims in the `048 patent recite “more than a mere result” and instead outline specific steps to carry out a gift card exchange.

23
Q

Arg Inventive Concept Basic Law

A

A court asks: (1) whether each of the elements in the claimed product (apart from the natural laws themselves) involve well-understood, routine, conventional activity previously engaged in by researchers in the field, and (2) whether all of the steps as an ordered combination add nothing to the laws of nature that is not already

24
Q

Arg Inventive Concept 1

A

A. Whether the Claim Elements Identify an Inventive Concept is Ultimately a Question of Fact

~~~The district court did not allow for the development of the record to properly decide on a Rule 12(b)(6) motion to dismiss for failure to state a claim.

  • “While the ultimate determination of eligibility under § 101 is a question of law, like many legal questions, there can be subsidiary fact questions which must be resolved en route to the ultimate legal determination”. Aatrix, 882 F.3d at 1128. In regard to Alice step two analysis, “[w]hether something is well-understood, routine, and conventional to a skilled artisan at the time of the patent is a factual determination”. Berkheimer,
  • [see district court refusing evidence admitted into record]
  • It is settled law that “factual disputes about whether an aspect of the claims is inventive may preclude dismissal at the pleadings stage under § 101”. Cellspin Soft, Inc. v. Fitbit
  • there were still factual disputes about whether the claims were inventive, it was improper to dismiss the claims.

~~~district court failed to conduct necessary claim analysis when determining patent eligibility

  • the court likened the invention to a prior art “ledger” and referred to the invention as “entirely routine”
  • A court is required to at least provide some level of reasoning and evidence when determining if a claimed invention contains an inventive concept. See Aatrix
  • At the very least, CardPool has alleged enough evidence showing the claimed invention is not well-understood, routine, or conventional to survive analysis at the Rule 12(b)(6) stage.

~~~Even if the district court allowed for the record to be fully developed before ruling on the motion to dismiss, the patent challenger bears the burden of proof to demonstrate patent ineligibility

  • There must be “be evidence supporting a finding that the additional elements were well-understood, routine, and conventional” in order for the court to find invalidity. Berkheimer v. HP Inc.
  • The patent challenger must prove invalidity by clear and convincing evidence. Microsoft Corp. v. I4I Ltd. P’ship,
  • . Simply offering the legal conclusions that this patent is directed to an abstract idea implemented with a computer does not supply to requisite facts to determine if the patent identifies an inventive concept

~~~CardPool’s arguments in conjunction with the ‘048 specification show the claimed invention cannot be considered routine or conventional.

  • The ‘048 patent was filed in early 2004 at a time when internet exchanges were in their infancy.
  • Unsurprisingly, the invention taught in the ‘048 patent has been widely adopted.
  • It is established that “patentees who adequately allege their claims contain inventive concepts survive a § 101 eligibility analysis under Rule 12(b)(6).” Aatrix
  • The improvements over the prior art described in the specification contribute to this analysis. See Berkheimer, 881 F.3d at 1370. The claims and specification together teach numerous improvements over prior art.
25
Q

Arg Inventive Concept 1 Claim 1

A

~~~The court in Bascom found the claims to be an improvement on “an existing technological process”

  • As a matter of law, a filtering system “associating individual accounts with their own filtering scheme and elements while locating the filtering system on an ISP server” is not be considered conventional or generic. Id. at 1350
  • claim 1 takes the prior art gift card exchanges involving a single brand, a single customer, and a single vendor and significantly expands the transactions to involve a plurality of parties with their individual accounts. See Appx009-013. Further, the data validation of each transaction allows the parties to exchange their individual gift cards all on the same exchange
  • this is a nonconventional structure relative to the prior art

~~~The electronic validation of the data associated with a gift card ensures prevents fraud in the gift card exchange

  • Data validation of gift cards is a technological problem
  • An unconventional “technological solution to a technological problem specific to computer networks” is patent eligible. Amdocs (Israel) Ltd. v. Openet Telecom, Inc., 841 F.3d 1288, 1303 (Fed. Cir. 2016).
  • Claim 1 teaches a technological solution created in an unconventional way because the invention centralizes the data validation step onto a “transactional exchange server”.

~~~While it may be true that one could use a pencil and paper to check every code of every gift card that consumers want to exchange against the records of a plurality of vendors and brands, evidence of this validation technique has not been presented to the court.

  • the opposing side has yet to present evidence of prior art that teaches an exchange that brings together a plurality of consumers, vendors, and brands for the exchange of gift cards.
  • Even if such evidence were presented, it is evident that the instantaneous validation of gift card data using a computerized system is much more efficient than the hypothetical prior art discussed by the opposing party
  • Increasing the efficiency and performance of computer systems is found to weigh in favor of patent eligibility. See Bascom
26
Q

Arg Inventive Concept 2 Claim 12

A

~~~Improvements made to prior art gift card exchange systems demonstrate an inventive concept within claim 12

  • By taking a prior art solution and “making it more dynamic and efficient … the claimed invention represents a ‘software-based invention’ that improve[s] the performance of the computer system itself.” Bascom,
  • The claimed invention in the Cardpool patent clearly makes gift card exchanging more dynamic and efficient by allowing for a plurality of parties to exchange gift card value instantaneously over the internet
  • claim 12 further teaches the calculation of a service fee that is “instantly and dynamically determined based on worldwide exchange and redemption trends”

~~~The appellee argues at length that this invention is patent ineligible because it is taking an “unpatentable idea” and simply saying “do it on a computer”. Appx070. The appellee misconstrues the technical field, the prior art, and the patent itself.

  • Just because the invention makes use of a computer does not render it ineligible under § 101. Claims that “use an environment—a computer, a mobile phone, etc.—to do significantly more than simply carry out an abstract idea are patent eligible”. Cellspin
  • The ‘048 patent does more than carry out an abstract idea. The claimed invention coordinates a transaction between consumers, vendors, brands, and banks. Appx009. This claimed invention further validates all transactions and dynamically calculates transaction fees

~~~Claim 12 teaches a technical way to satisfy a problem that is unique to internet exchanges

  • The dynamic fee calculation based on “worldwide exchange and redemption trends” is what enables the computerized gift card exchange to operate in a sustainable manner
  • Solving a problem unique to the internet in a particular, technical way demonstrates an inventive concept. DDR,
  • Exchanging gift cards over the internet instantaneously creates the unique problem of incentivizing parties to exchange a variety of gift card brands. The exchange would not be useful if every party wanted to exchange their Starbucks gift cards because there would be no other parties offering other gift cards in return