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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`TD AMERITRADE HOLDING CORPORATION, TD AMERITRADE, INC., and
`TD AMERITRADE ONLINE HOLDINGS CORP.,
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`Petitioners
`v.
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`TRADING TECHNOLOGIES INTERNATIONAL, INC.
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`Patent Owner
`____________________
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`Patent No. 6,766,304
`____________________
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`PETITION FOR COVERED BUSINESS METHOD REVIEW UNDER 35
`U.S.C. § 321 and § 18 of the LEAHY-SMITH AMERICA INVENTS ACT
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`Mail Stop PATENT BOARD
`Patent Trial and Appeal Board
`U.S. Patent & Trademark Office
`P.O. Box 1450
`Alexandria, VA 22313-1450
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`CGQ EXHIBIT
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`0001
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`1020
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`I.
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`CBM
`U.S. Patent No. 6,766,304
`Pet’r Dkt. No. 1835.043CBM0
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`Table of Contents
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`Mandatory Notices (37 C.F.R. § 42.8(a)(1)) ................................................... 1
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`A.
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`B.
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`C.
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`Real party-in-interest ............................................................................. 1
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`Related Matters ...................................................................................... 2
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`Lead and back-up counsel with service information ............................ 3
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`II.
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`Grounds for Standing (37 C.F.R. § 42.304(a)) ................................................ 4
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`A.
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`B.
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`C.
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`TD Ameritrade has standing ................................................................. 4
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`TD Ameritrade is not estopped or barred .............................................. 4
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`The ‘304 Patent is a Covered Business Method.................................... 4
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`1.
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`The ’304 patent claims a covered business method. ................... 5
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`D.
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`The ’304 patent it not for a “technological invention” ......................... 5
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`III.
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`Identification of Challenge (37 C.F.R. § 42.304(b)) ....................................... 8
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`A.
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`B.
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`Statutory grounds for the challenge ...................................................... 8
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`Citation of Prior Art .............................................................................. 8
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`IV. The ’304 patent ..............................................................................................10
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`A.
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`B.
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`Level of Ordinary Skill in the Art .......................................................10
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`Claim Construction..............................................................................10
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`1.
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`2.
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`3.
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`“single action” ...........................................................................10
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`“common static price axis” .......................................................11
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`“dynamically displaying” ..........................................................12
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`4.
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`“order book” ..............................................................................13
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`V. Grounds of Unpatentability ...........................................................................13
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`A. Ground 1: Claims 1-40 are unpatentable under 35 U.S.C. § 101 .......14
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`B.
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`Ground 2: TSE anticipates claims 1-3, 5-9, 11-15, 20-23 and 26-40. 15
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`1.
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`2.
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`3.
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`4.
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`5.
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`6.
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`7.
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`8.
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`9.
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`Overview of TSE ......................................................................15
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`Prosecution History ...................................................................17
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`TSE anticipates independent claims 1 and 27. .........................18
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`TSE anticipates claim 2. ...........................................................29
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`TSE anticipates claims 3 and 9. ................................................30
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`TSE anticipates claims 5 and 6. ................................................30
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`TSE anticipates claim 7. ...........................................................30
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`TSE anticipates claim 8. ...........................................................30
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`TSE anticipates claim 11. .........................................................31
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`10. TSE anticipates claims 12 and 13. ............................................32
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`11. TSE anticipates claim 14. .........................................................33
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`12. TSE anticipates claim 15. .........................................................34
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`13. TSE anticipates claims 20, 21, 30, and 33. ...............................34
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`14. TSE anticipates claims 22 and 23. ............................................35
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`15. TSE anticipates claim 26. .........................................................35
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`16. TSE anticipates claims 28 and 29. ............................................35
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`17. TSE anticipates claims 31 and 34. ............................................36
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`18. TSE anticipates claims 32 and 35. ............................................37
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`19. TSE anticipates claim 36. .........................................................38
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`20. TSE anticipates claims 37-39....................................................38
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`21. TSE anticipates claim 40. .........................................................39
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`C.
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`Ground 3: TSE renders claims 4 and 10 obvious. ...............................39
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`D. Ground 4: TSE and Gutterman renders claims 16-19, 24, and 25
`obvious. ...............................................................................................40
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`1.
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`2.
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`3.
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`TSE in view of Gutterman renders claims 16 and 17 obvious. 40
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`TSE in view of Gutterman renders claims 18 and 19 obvious .42
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`TSE in view of Gutterman renders claims 24 and 25 obvious. 42
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`E.
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`Ground 5: Silverman and Gutterman renders claims 1-25 and 27-40
`obvious. ...............................................................................................43
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`1.
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`2.
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`3.
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`4.
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`5.
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`6.
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`7.
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`8.
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`Overview of Silverman and Gutterman ....................................43
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`Prosecution history ....................................................................48
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`The combination of Silverman and Gutterman ........................50
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`The combination of Silverman and Gutterman renders
`independent claims 1 and 27 obvious. ......................................52
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`The combination of Silverman and Gutterman renders claims 2
`and 8 obvious. ...........................................................................64
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`The combination of Silverman and Gutterman renders claims 3
`and 9 obvious. ...........................................................................66
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`The combination of Silverman and Gutterman renders claims 4
`and 10 obvious. .........................................................................66
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`The combination of Silverman and Gutterman renders claims 5
`and 6 obvious. ...........................................................................66
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`0004
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`9.
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`The combination of Silverman and Gutterman renders claim 7
`obvious. .....................................................................................66
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`10. The combination of Silverman and Gutterman renders claim 11
`obvious. .....................................................................................67
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`11. The combination of Silverman and Gutterman renders claims
`12 and 13 obvious. ....................................................................68
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`12. The combination of Silverman and Gutterman renders claim 14
`obvious. .....................................................................................68
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`13. The combination of Silverman and Gutterman renders claim 15
`obvious. .....................................................................................69
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`14. The combination of Silverman and Gutterman renders claims
`16 and 17 obvious. ....................................................................70
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`15. The combination of Silverman and Gutterman renders claims
`18 and 19 obvious. ....................................................................72
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`16. The combination of Silverman and Gutterman renders claims
`20, 21, 30, and 33 obvious. .......................................................72
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`17. The combination of Silverman and Gutterman renders claims
`22 and 23 obvious. ....................................................................73
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`18. The combination of Silverman and Gutterman renders claim 24
`obvious. .....................................................................................74
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`19. The combination of Silverman and Gutterman renders claim 25
`obvious. .....................................................................................74
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`20. The combination of Silverman and Gutterman renders claims
`28 and 29 obvious. ....................................................................74
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`21. The combination of Silverman and Gutterman renders claim 31
`and 34 obvious. .........................................................................75
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`22. The combination of Silverman and Gutterman renders claims
`32 and 35 obvious. ....................................................................76
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`23. The combination of Silverman and Gutterman renders claim 36
`obvious. .....................................................................................76
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`24. The combination of Silverman and Gutterman renders claims
`37-39 obvious. ...........................................................................76
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`25. The combination of Silverman and Gutterman renders claim 40
`obvious. .....................................................................................78
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`F.
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`GROUND 6: the combination of Silverman, Gutterman, and Paal
`renders claim 26 obvious. ....................................................................78
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`VI. Conclusion .....................................................................................................80
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`0006
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`Petitioner’s Exhibit List
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`1003
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`1004
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`1005
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`1006
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`Exh. No. Description
`1001
`U.S. Patent No. 6,766,304 to Kemp, II et al. (“’304 patent”)
`1002
`“Futures/Option Purchasing System Trading Terminal Operation
`Guide,” Tokyo Stock Exchange (“TSE JP”)
`Certified Translation of “System for Buying and Selling Futures and
`Options Transaction Terminal Operational Guidelines” (“TSE”)
`Certificate of Translation for “System for Buying and Selling
`Futures and Options Transaction Terminal Operational Guidelines”
`(“TSE Certificate”)
`Memorandum from James M. Hilmert to eSpeed file regarding
`direct examination of TSE’s 30(b)(6) witness, dated December 5,
`2005 (“Depo. Letter”)
`Deposition Transcript of Atsushi Kawashima, Trading Technologies
`International, Inc., v. eSPEED, Inc., Case No. 04-cv-5312, United
`States District Court, Northern District of Illinois, Eastern Division,
`dated November 21, 2005 (“Depo. Transcript”)
`U.S. Patent No. 5,297,031 to Gutterman et al. (“Gutterman”)
`U.S. Patent No. 5,077,665 to Silverman et al. (“Silverman”)
`U.S. Patent No. 5,263,134 to Paal et al. (“Paal”)
`Petition to Make Special Under 37 C.F.R. § 1.102(d) for Ser. No.
`09/590,692, filed August 21, 2000
`Request for Reexamination of U.S. Patent No. 6,772,132, Control
`No. 90/011,250, filed September 22, 2010
`Order Denying Request for Reexamination of U.S. Patent No.
`6,772,132, Control No. 90/011,250, mailed December 14, 2010
`Ben Shneiderman, “Designing the User Interface: Strategies for
`Effective Human-Computer Interaction,” Third Edition, 1998
`(“Shneiderman”)
`Microsoft Computer Dictionary, Fifth Edition, 2002, page 150
`(“Microsoft Computer Dictionary”)
`Alan Cooper, “About Face: The Essentials of User Interface
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`1007
`1008
`1009
`1010
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`1011
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`1012
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`1013
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`1014
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`1015
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`0007
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`Design,” First Edition, 1995. (“Cooper”)
`Robert Deel, “The Strategic Electronic Day Trader,” 2000 (“Deel”)
`Declaration of Kendyl A. Román (“Román Decl.”)
`Curriculum Vitae of Kendyl A. Román (“Román CV”)
`List of Materials Considered by Kendyl A. Román (“Román List of
`Materials”)
`Declaration of David Rho (“Rho Declaration”)
`Curriculum Vitae of David Rho (“Rho CV”)
`File History of U.S. Pat. No. 6,766,304
`Exhibit Number Not Used
`Exhibit Number Not Used
`Exhibit Number Not Used
`Exhibit Number Not Used
`List of Materials Considered by David Rho (“Rho List of
`Materials”)
`U.S. Patent No. 6,408,282 to Buist (“Buist”)
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`1016
`1017
`1018
`1019
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`1020
`1021
`1022
`1023
`1024
`1025
`1026
`1027
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`1028
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`0008
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`CBM
`U.S. Patent No. 6,766,304
`Pet’r Dkt. No. 1835.043CBM0
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`Petitioner, TD Ameritrade, Inc., (“TD Ameritrade”) petitions for Covered
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`Business Method Review of all claims of 6,766,304 (“’304 patent”; TDA 1001),
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`owned by Trading Technologies International, Inc. (“TTI”). TD Ameritrade will
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`demonstrate that it is more likely than not that all 40 claims of the ’304 patent are
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`unpatentable. The claims of the ’304 patent are directed to the integration of well-
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`known software graphical user interface concepts into a commodities trading
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`system. Petitioner’s expert, Kendyl Román, who has over 30 years of experience
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`working with software graphical user interfaces, explains the purported novelty of
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`the ’304 patent – moving indicators relative to a static axis and single action order
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`entry – were both known and in use well before the earliest possible priority date
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`of the ’304 patent.
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`I. Mandatory Notices (37 C.F.R. § 42.8(a)(1))
`Pursuant to 37 C.F.R. § 42.8, TD Ameritrade provides the following:
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`A. Real party-in-interest
`The real parties-in-interest are TD Ameritrade Holding Corp., TD
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`Ameritrade Online Holdings Corp., and TD Ameritrade, Inc. TD Ameritrade
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`Holding Corp. is the parent of TD Ameritrade Online Holdings Corp. and TD
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`Ameritrade, Inc. The corporate entity thinkorswim Group, Inc. (a defendant in TTI
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`v. thinkorswim Group, Inc., 1:10-cv-00885 (N.D. Ill.)) no longer exists and was
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`merged into its parent, TD Ameritrade Online Holdings Corp.
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`B. Related Matters
`The ’304 patent is involved in the following proceedings that may affect, or
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`be affected by, a decision in this proceeding: GL Trade Americas, Inc. v. Trading
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`Technologies Int'l, Inc., 1:11-cv-00883 (N.D. Ill.); Trading Technologies Int'l, Inc.
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`v. TradeHelm, Inc., 1:10-cv-00931 (N.D. Ill.); Trading Technologies Int'l, Inc. v.
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`Open E Cry, LLC, et al., 1:10-cv-00885 (N.D. Ill.); Trading Technologies Int'l, Inc.
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`v. thinkorswim Group, Inc., et al, 1:10-cv-00883 (N.D. Ill.); Trading Technologies
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`Int'l, Inc. v. Tradestation Securities, Inc., et al 1:10-cv-00884 (N.D. Ill.); Trading
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`Technologies Int'l, Inc. v. Stellar Trading Systems, Ltd., et al, 1:10-cv-00882 (N.D.
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`Ill.); Trading Technologies Int'l, Inc. v. Cunningham Trading Systems, LLC, et al.,
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`1:10-cv-00726 (N.D. Ill.); Trading Technologies Int'l, Inc. v. BGC Partners, Inc,
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`1:10-cv-00715 (N.D. Ill.); Trading Technologies Int'l, Inc. v. CQG, Inc., et al,
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`1:05-cv-04811 (N.D. Ill.); Trading Technologies Int'l, Inc. v. IBG LLC, et al, 1:10-
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`cv-00721 (N.D. Ill.); Trading Technologies Int'l, Inc. v. Orc Software, Inc., et al,
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`1:05-cv-06265 (N.D. Ill.); Trading Technologies Int'l, Inc. v. FuturePath Trading,
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`LLC, 1:05-cv-05164 (N.D. Ill.); Trading Technologies Int'l, Inc. v. Transmarket
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`Group, LLC, 1:05-cv-05161 (N.D. Ill.); Trading Technologies Int'l, Inc. v.
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`FFastFill PLC, Inc., 1:05-cv-04449 (N.D. Ill.); Trading Technologies Int'l, Inc. v.
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`Strategy Runner, Ltd., 1:05-cv-04357 (N.D. Ill.); Trading Technologies Int'l, Inc.
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`00010
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`v. Rolfe and Nolan Systems, Inc., et al., 1:05-cv-04354 (N.D. Ill.); Trading
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`Technologies Int'l, Inc. v. Trading Technologies Int'l, Inc. v. RTS Realtime Systems,
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`Inc., et al., 1:05-cv-04332 (N.D. Ill.); Trading Technologies Int'l, Inc. v. Peregrine
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`Financial Group, Inc., 1:05-cv-04137 (N.D. Ill.); Rosenthal Collins Group, LLC v.
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`Trading Technologies Int'l, Inc., 1:05-cv-04088 (N.D. Ill.); Trading Technologies
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`Int'l, Inc. v. Ninja Trader, LLC, 1:05-cv-03953 (N.D. Ill.); Trading Technologies
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`Int'l, Inc. v. Patsystems NA LLC, et al., 1:05-cv-02984 (N.D. Ill.); Trading
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`Technologies Int'l, Inc. v. Man Group PLC, et al., 1:05-cv-02164; CQGT, LLC, et
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`al. v. Trading Technologies Int'l, Inc., 1:05-cv-01584 (N.D. Ill.); Trading
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`Technologies Int'l, Inc. v. Refco Group, Ltd., LLC, 1:05-cv-01079 (N.D. Ill.);
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`Trading Technologies Int'l, Inc. v. Kingstree Trading, 1:04-cv-06740 (N.D. Ill.);
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`Trading Technologies Int'l, Inc. v. Goldenberg Hehmeyer, 1:04-cv-06278 (N.D.
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`Ill.); Trading Tech Int'l, Inc., et al. v. eSpeed, Inc., 1:04-cv-05312 (N.D. Ill.).
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`C. Lead and back-up counsel with service information
`Pursuant to 37 C.F.R. § 42.8(b)(3) and 42.10(a), Petitioner appoints Lori A.
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`Gordon (Reg. No. 50,633) as its lead counsel and Robert E. Sokohl (Reg. No.
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`36,013) as its back-up counsel, both at the address: STERNE, KESSLER, GOLDSTEIN
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`& FOX, 1100 New York Avenue, N.W., Washington, D.C., 20005, phone number
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`(202)772-8997 and facsimile (202)371-2540.
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`Petitioner consents to email service at the email addresses:
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`lgordon-PTAB@skgf.com and rsokohl-PTAB@skgf.com.
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`II. Grounds for Standing (37 C.F.R. § 42.304(a))
`Pursuant to 37 C.F.R. § 42.304(a), TD Ameritrade and the undersigned
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`certify that TD Ameritrade has standing, is not estopped or barred, and that the
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`’056 patent is available for post-grant review.
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`A. TD Ameritrade has standing
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`TD Ameritrade certifies that it meets the eligibility requirements of 37
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`C.F.R. § 42.302 because TD Ameritrade, Inc. and TD Ameritrade Holding Corp
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`were sued for infringement of the ’304 patent. TTI v. thinkorswim Group, Inc.,
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`1:10-cv-00883 (N.D. Ill.)
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`B.
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`TD Ameritrade is not estopped or barred
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`TD Ameritrade certifies that it is not estopped or barred from filing this
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`petition. TD Ameritrade has not been a party, or a privy to a party, in any post-
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`grant proceeding of the ’304 patent, and has not filed a civil action challenging any
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`claims of the ’304 patent
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`C. The ‘304 Patent is a Covered Business Method
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`The ’304 patent, titled “Click based trading with intuitive grid display of
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`market depth” is a covered business method patent because is not for a
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`technological invention, but claims a method for trading financial instruments.
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`00012
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`The ’304 patent claims a covered business method.
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`1.
`A patent that claims a method for performing data processing in the practice,
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`administration or management of a financial product or service is a covered
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`business method patent. 37 C.F.R. § 42.301(a). In promulgating the final rules for
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`CBM Review, the Office explained that that “financial product or service” should
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`be “interpreted broadly,” encompassing patents “claiming activities that are
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`financial in nature, incidental to a financial activity or complementary to a
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`financial activity.” Transitional Program for CBM Patents—Definitions, 77 Fed.
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`Reg. 48734, 48735 (Aug. 14, 2012). The ’304 patent meets this definition. It
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`expressly claims displaying market information relating to and facilitating trading
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`including displaying bids and asks in the market and selecting an area on a display
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`to set parameters for the trade order and send the trade order to the electronic
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`exchange. (’304 patent, independent claims 1 and 27. ) Likewise, the patent
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`describes a graphical user interface for trading such as that shown in FIGs. 3-5.
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`D. The ’304 patent it not for a “technological invention”
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`The ’304 patent is not for a technological invention because it does not solve
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`a technical problem with a technical solution, but instead recites the ordinary
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`application of old and well-understood data display and graphical user interface
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`techniques. A technological invention is determined by considering whether the
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`claimed subject matter as a whole recites a technical feature that is novel and
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`00013
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`unobvious over the prior art, and solves a technical problem using a technical
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`solution. 37 C.F.R. § 42.301(b).
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`As described in detail herein, the claims of the ’304 patent do not recite a
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`technical feature that is novel or unobvious over the prior art, and do not solve a
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`technical problem with a technical solution. Rather, they recite only well-
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`understood, routine, and conventional steps of displaying market information
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`graphically to a trader, who enters buy and sell orders, and sending the trader’s
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`orders to the exchange to be executed.
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`Further, the claims appear to have been crafted to recite software and only
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`general computer components, such as a “dynamic display,” a “display device” and
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`an “input device.” These components are not technologically novel or non-
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`obvious. They are generic and are known technology. Even the specification of the
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`’411 patent acknowledges that the alleged invention requires only a generic
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`“computer or [an] electronic terminal … able to communicate directly or indirectly
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`… with the exchange.” (’304 patent, 4:2-4.) Congress did not intend a patent with
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`such basic, well-known technology disclosures to be inoculated from a CBM
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`review:
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`“[The technological inventions exception] is not meant
`to exclude patents that use known technology to
`accomplish a business process or method of conducting
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`business – whether or not that process or method appears
`to be novel. The technological invention exception is
`also not intended to exclude a patent simply because it
`recites technology. For example, the recitation of
`computer hardware, communication or computer
`networks, software, memory, computer-readable storage
`medium, scanners, display devices or databases,
`specialized machines, such as an ATM or point of sale
`device, or other known technologies, does not make a
`patent a technological invention. In other words, a
`patent is not a technological invention because it
`combines known technology in a new way to perform
`data processing operations.” 157 Cong. Rec. S1364
`(daily ed. March 8, 2011) (Sen. Schumer).
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`The analysis could stop here, as the “technological invention” exception
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`does not apply when even one prong of 37 C.F.R. §42.301(b) is not met.
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`Regardless, the ’304 patent also fails to satisfy the second prong of 37 C.F.R. §
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`42.301(b) because the claims do not solve a technical problem using a technical
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`solution. There is no technical problem here. Instead, the claims of the ’304 patent
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`are directed to placing a trade order for a commodity on an electronic exchange.
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`Even the ’304 patent admits that at the time of filing least 60 exchanges throughout
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`the world utilized electronic trading systems to trade stocks, bonds, futures and
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`options, and allowed traders to participate in the market. (’304 patent, 1:20-22 and
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`00015
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`1:55-57.) Placing an order on the exchange is not a novel technical problem.
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`The claims of the ’304 patent are not directed to a “technological invention.”
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`The claims neither recite a technological feature that is novel and unobvious nor do
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`they solve a technical problem using a technical solution. Accordingly, the ’304
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`patent is a CBM patent eligible for review under 37 C.F.R. § 42.301(b).
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`III.
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`Identification of Challenge (37 C.F.R. § 42.304(b))
`Statutory grounds for the challenge
`A.
`TD Ameritrade requests review of claims 1-40 on six grounds: Ground 1:
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`Claims 1-40 are unpatentable under 35 U.S.C. § 101. Ground 2: Claims 1-3, 5-9,
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`11-15, 20-23, and 26-40 are unpatentable under 35 U.S.C. § 102 as anticipated by
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`TSE. Ground 3: Claims 4 and 10 are unpatentable under 35 U.S.C. § 103 as
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`obvious over TSE. Ground 4: Claims 16-19, 24 and 25 are unpatentable under 35
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`U.S.C. § 103 as obvious over TSE in view of Gutterman. Ground 5: Claims 1-25
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`and 27-40 are unpatentable under 35 U.S.C. § 103 as obvious over Silverman and
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`Gutterman. Ground 6: Claim 26 is unpatentable under 35 U.S.C. § 103 as
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`obvious over Silver, Gutterman, and Paal.
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`B. Citation of Prior Art
` In support of the grounds of unpatentability cited above, TD Ameritrade
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`cites the following prior art references:
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`Futures/ Option Purchasing System Trading Terminal Operation Guide
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`00016
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`(“TSE”) “System for Buying and Selling Futures and Options Transaction
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`Terminal Operational Guidelines,” a Tokyo Stock Exchange publication, is prior
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`art under § 102(a) because it was published in August of 1998 by giving two
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`copies to each of the about 200 participants in the Tokyo Stock Exchange. (See
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`Depo. Letter, p. 2; Depo. Transcript, pp. 0012-33.)1 The participants were free to
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`do whatever they wanted with their copies of this publication. (Depo. Letter, p. 2;
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`Depo. Transcript, p. 0015.) Because this reference was published in Japanese,
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`Petitioners also submit TSE, which is a certified translation of this Tokyo Stock
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`Exchange publication. (TSE Translation and TSE Certification) (TDA 1003 and
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`1004.) For the Board’s convenience, all citations are to the English-language TSE,
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`TDA 10032, but the corresponding pages in the original-language document may
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`be easily found by turning to the same page/Bates number in TDA 1002.
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`U.S. Patent No. 5,297,031 to Gutterman et al. (“Gutterman”) issued on
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`March 22, 1994. Gutterman qualifies as prior art under 35 U.S.C. § 102(b) because
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`it issued more than one year prior to the earliest possible priority date claimed by
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`the ’304 patent. Gutterman is provided as TDA 1007.
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`1 Deposition Letter is provided as TDA 1005. Deposition Transcript is
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`provided as TDA 1006.
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`2 All citations are publication’s actual page numbers.
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`00017
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`U.S. Patent No. 5,077,665 to Silverman et al. (“Silverman”) issued on
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`December 31, 1991. Silverman qualifies as prior art under 35 U.S.C. § 102(b)
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`because it issued more than one year prior to the earliest possible priority date
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`claimed by the ’304 patent. Silverman is provided as TDA 1008.
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`U.S. Patent No. 5,263,134 to Paal et al. (“Paal”) issued on November 16,
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`1993. Paal qualifies as prior art under 35 U.S.C. § 102(b) because it issued more
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`than one year prior to the earliest possible priority date claimed by the ’304 patent.
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`Paal is provided as TDA 1009.
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`IV. The ’304 patent
`A. Level of Ordinary Skill in the Art
`Based on the disclosure of the ’304 patent, one of ordinary skill in the art
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`would have a B.S. degree in Electrical Engineering, Computer Science, or an
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`equivalent field as well as at least 3-5 years of academic or industry experience in
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`graphical user interfaces. (Roman Decl., ¶ 56.)
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`B. Claim Construction
`Except as set forth herein, the claim terms of the ’304 patent carry their
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`ordinary and customary meanings under the broadest reasonable interpretation as
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`would be interpreted by one of ordinary skill in the art.
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`“single action”
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`1.
`The specification provides a definition for this term: “[a]ny action by a user
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`within a short period of time, whether comprising one or more clicks of a mouse
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`button or other input device, is considered a single action of the user for the
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`purposes of the present invention.” (’304 patent, 4:19-23 (emphasis added).)
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`(Roman Decl., ¶ 70.)
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`“common static price axis”
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`2.
`Independent claims 1 and 27 each recites the term “common static price
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`axis”: “. . . each location in the bid [ask] display region corresponding to a price
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`level along a common static price axis . . . .” (’304 patent, 12:40-46 (emphasis
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`added).) For purposes of this proceeding, the broadest reasonable interpretation of
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`the term “common static price axis” is a reference line or column for price levels
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`that do not change positions unless a re-centering command is received, and is
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`common to the bid and ask display regions. The re-centering command can be
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`manual or automatic.
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`This construction is consistent with the specification: “[t]he values in the
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`price column are static; that is, they do not normally change positions unless a re-
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`centering command is received (discussed in detail later).” (Id. at 7:65-67
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`(emphasis added).)
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`The construction is also consistent with the construction adopted by the
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`Court in a co-pending litigation. The Court adopted the construction as “a line
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`comprising price levels that do not change positions unless a manual re-centering
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`00019
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`command is received and where the line of prices corresponds to at least one bide
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`value an one ask value.” Trading Techs. Int’l, Inc. v. eSpeed, Inc., 2006 WL
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`3147697, at *4 (N.D.Ill. Oct. 31, 2006). The Court also found that the term
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`“‘common’ connotes no more than a relationship between the price axis and the
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`bid and ask display regions.” eSpeed, 2006 WL 3147697, at *5. The Court later
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`“clarify[ied] that the price axis never changes positions unless by manual re-
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`centering or repositioning.” Trading Techs. Int’l, Inc. v. eSpeed, Inc., 2007 WL
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`611258, at *4 (N.D.Ill. Feb. 21, 2007).
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`The Federal Circuit upheld the district court’s construction, relying primarily
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`on the fact that the specification only discloses manual re-centering. Trading
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`Techs. Int’l, Inc. v. eSpeed, Inc., 595 F.3d 1340, 1352-55 (Fed. Cir. 2010)(“This
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`court takes some comfort against this risk [of improperly reading a preferred
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`embodiment into the claim] from the inventors’ use of the term ‘the present
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`invention’ rather than ‘a preferred embodiment’ or just ‘an embodiment.’”).
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`Finally, Petitioners’ proposed construction is consistent with the
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`construction argued by the Patent Owner to be reasonable at both the District Court
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`and the Federal Circuit: “price levels that do not normally change position when
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`new market data reflecting a change in the inside market is received.” eSpeed,
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`2006 WL 3147697, at *3.
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`3.
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`“dynamically displaying”
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`00020
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`The specification does not explicitly define this term. However, the
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`specification does explain that a trader can “add or subtract a preset quantity for
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`the quantities outstanding in the market.” (’304 patent, 10:17-18.) In this case,
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`quantities in the Bid or Ask columns would be updated, but not move. (See id.,
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`10:46-54.) The specification also explains that “[t]he values in the Bid and Ask
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`columns … are dynamic; that is, they move up and down … to reflect the market
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`depth for the given commodity.” (Id., 7:66-8:16.) Thus, dynamically displaying a
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`field is changing a characteristic (e.g., updating) and/or location (moving) of a
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`displayed field. (Roman Decl., ¶ 76.)
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`“order book”
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`4.
`Each of claims 37, 38, and 39 recites the term “order book”: “wherein the
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`first and second indicators are based on an exchange order book . . . .” (’304 patent,
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`16:20-21.) The specification describes “order books” as listing “the client’s active
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`orders in the market; that is, those orders that have neither been filled nor
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`cancelled.” (Id. at 4:44-46.) The specification also states, “Market Depth represents
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`the order book with the current bid and ask prices and quantities in the market.”
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`(Id. at 4:58-59.) Thus, a person of ordinary skill in the art (PHOSITA) would have
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`understood the term “order book” to mean a collection of orders (e.g., bids and
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`asks) that are active in the market. (Roman Decl. ¶ 77.)
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`V. Grounds of Unpatentability
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`00021
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`A. Ground 1: Claims 1-40 are unpatentable under 35 U.S.C. § 101
`In Mayo v. Prometheus, the Supreme Court explained that abstract ideas are
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`not patentable, and that adding “steps consist[ing] of well-understood, routine,
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`conventional activity . . . [that] add nothing significant” to the abstract idea does
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`not render it patentable. Mayo Collaborative v. Prometheus Labs., 132 S. Ct. 1289,
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`1298 (2012). Likewise, simply implementing the abstract idea on a computer or
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`limiting it to a field of use is not a “patentable application” of that abstract idea. Id.
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`at 1301; see also Bancorp Servs., LLC v. Sun Life Assur. Co. of Canada, 687 F.3d
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`1266, 1280 (Fed. Cir. 2012). Once an abstract idea has been identified, the key
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`inquiry for patent eligibility is whether the abstract idea is preempted. In order to
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`determine whether the abstract idea is preempted, the balance of the claim is
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`evaluated to determine whether “additional substantive limitations . . . narrow,
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`confine, or otherwise tie down the claim so that, in practical terms, it does not
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`cover the full abstract idea itself.” CLS Bank Intern.