`
`United States Court of Appeals
`for the Federal Circuit
`______________________
`
`PLANET BINGO, LLC,
`Plaintiff-Appellant,
`
`v.
`
`VKGS LLC (doing business as Video King),
`Defendant-Appellee.
`______________________
`
`2013-1663
`______________________
`
`Appeal from the United States District Court for the
`Western District of Michigan in No. 12-CV-0219, Judge
`Robert Holmes Bell.
`______________________
`
`Decided: August 26, 2014
`______________________
`
`KAREN J.S. FOUTS, Weiss & Moy, P.C., of Grand Rap-
`ids, Michigan, argued for plaintiff-appellant. With her on
`the brief were VERONICA-ADELE R. CAO and KENNETH M.
`MOTOLENICH-SALAS, of Scottsdale, Arizona.
`
`STEVEN L. UNDERWOOD, Price Heneveld LLP, of
`Grand Rapids, Michigan, argued for defendant-appellee.
`With him on the brief was MATTHEW J. GIPSON.
`______________________
`
`
`1
`
`SAMSUNG-1049
`
`
`
`2
`
`
`
` PLANET BINGO, LLC v. VKGS LLC
`
`Before TARANTO, BRYSON, and HUGHES, Circuit Judges.
`HUGHES, Circuit Judge.
`Planet Bingo, LLC, owns two patents for computer-
`aided management of bingo games. After Planet Bingo
`filed an infringement action against VKGS, LLC, the
`district court granted summary judgment of invalidity,
`concluding that the patents do not claim patentable
`subject matter under 35 U.S.C. § 101. Because a straight-
`forward application of the Supreme Court’s recent holding
`in Alice Corp. v. CLS Bank International, 134 S. Ct. 2347
`(2014), leads us to the same result, we affirm.
`I
`Planet Bingo alleged that VKGS infringed U.S. Patent
`Nos. 6,398,646 and 6,656,045. The ’045 patent states that
`it is a continuation of the ’646 patent. The claims at issue
`recite computer-aided methods and systems for managing
`the game of bingo. Generally, the claims recite storing a
`player’s preferred sets of bingo numbers; retrieving one
`such set upon demand, and playing that set; while simul-
`taneously tracking the player’s sets, tracking player
`payments, and verifying winning numbers. See, e.g., ’646
`patent col. 8 l. 45–col. 9 l. 18, col. 9 l. 33–col. 10 l. 13.
`Variations between the claims include display capabilities
`and options to purchase sets of bingo numbers.
`Following a Markman order, VKGS filed a motion for
`summary judgment that the asserted claims are directed
`to a patent-ineligible concept. Applying the majority
`opinion’s approach in CLS Bank International v. Alice
`Corp., 685 F.3d 1341 (Fed. Cir. 2012) (en banc), the dis-
`trict court determined that “each method claim encom-
`passes the abstract idea of managing/playing the game of
`Bingo.” Planet Bingo, LLC v. VKGS, LLC, 961 F. Supp.
`2d 840, 851 (W.D. Mich. 2013). The district court deter-
`mined that the use of a computer in the method claims
`“adds nothing more than the ability to manage . . . Bingo
`
`2
`
`
`
`PLANET BINGO, LLC v. VKGS LLC
`
`3
`
`more efficiently,” id. at 852, and that “the limitations of
`the system claims are the same as the limitations of the
`method claims that failed to result in an ‘inventive con-
`cept,’” id. at 854. The district court stated that the sys-
`tem claims employ a computer “only for its most basic
`functions,” including “storing numbers, assigning identifi-
`ers, allowing for basic inputs and outputs, printing of a
`receipt, displaying of numbers, and/or matching . . . for
`verification.” Id. at 854–55. The court granted summary
`judgment on the grounds that all of the asserted claims
`are invalid under § 101. Id. at 857.
`Planet Bingo appeals. We have jurisdiction under 28
`U.S.C. § 1295(a)(1).
`
`II
`We review the grant of summary judgment under the
`law of the regional circuit. Charles Mach. Works, Inc. v.
`Vermeer Mfg. Co., 723 F.3d 1376, 1378 (Fed. Cir. 2013).
`The Sixth Circuit reviews the grant or denial of summary
`judgment de novo. Tompkins v. Crown Corr, Inc., 726
`F.3d 830, 837 (6th Cir. 2013). We review de novo whether
`a claim is valid under § 101. In re Nuijten, 500 F.3d 1346,
`1352 (Fed. Cir. 2007).
`A patent may be obtained for “any new and useful
`process, machine, manufacture, or composition of matter,
`or any new and useful improvement thereof.” 35 U.S.C.
`§ 101. The Supreme Court has “long held that this provi-
`sion contains an important implicit exception: Laws of
`nature, natural phenomena, and abstract ideas are not
`patentable.” Alice, 134 S. Ct. at 2354 (quoting Ass’n for
`Molecular Pathology v. Myriad Genetics, Inc., 133 S. Ct.
`2107, 2116 (2013)); see also Gottschalk v. Benson, 409 U.S.
`63, 67 (1972) (“Phenomena of nature, though just discov-
`ered, mental processes, and abstract intellectual concepts
`are not patentable, as they are the basic tools of scientific
`and technological work.”). But the application of these
`concepts to new and useful ends remains eligible for
`
`3
`
`
`
`4
`
`
`
` PLANET BINGO, LLC v. VKGS LLC
`
`patent protection. Id. at 2355. Accordingly, the Court
`has described a framework for identifying patent-eligible
`claims, wherein a court must determine whether the
`claims at issue are directed to a patent-ineligible concept
`and, if so, whether additional elements in the claims
`transform the claims into a patent-eligible application.
`Id.
`
`A
`As a preliminary matter, we agree with the district
`court that there is no meaningful distinction between the
`method and system claims or between the independent
`and dependent claims. See Planet Bingo, 961 F. Supp. 2d
`at 854, 857. The system claims recite the same basic
`process as the method claims, and the dependent claims
`recite only slight variations of the independent claims.
`In this case, the claims at issue are drawn to patent-
`ineligible subject matter. The ’646 and ’045 patents claim
`managing a bingo game while allowing a player to repeat-
`edly play the same sets of numbers in multiple sessions.
`The district court correctly concluded that managing the
`game of bingo “consists solely of mental steps which can
`be carried out by a human using pen and paper.” Planet
`Bingo, 961 F. Supp. 2d at 851. Claim 7 of the ’646 patent,
`for example, recites the steps of selecting, storing, and
`retrieving two sets of numbers, assigning a player identi-
`fier and a control number, and then comparing a winning
`set of bingo numbers with a selected set of bingo numbers.
`’646 patent col. 9 l. 33–col. 10 l. 13. Like the claims at
`issue in Benson, not only can these steps be “carried out
`in existing computers long in use,” but they also can be
`“done mentally.” 409 U.S. at 67.
`Planet Bingo argues that “in real world use, literally
`thousands, if not millions of preselected Bingo numbers
`are handled by the claimed computer program,” making it
`impossible for the invention to be carried out manually.
`Appellant’s Reply Br. 14. But the claimed inventions do
`
`4
`
`
`
`PLANET BINGO, LLC v. VKGS LLC
`
`5
`
`not require as much. At most, the claims require “two
`sets of Bingo numbers,” “a player,” and “a manager.” ’646
`patent col. 8 ll. 54–55, col. 9 l. 17; see also ’045 patent
`col. 9 ll. 5–6. We need not, and do not, address whether a
`claimed invention requiring many transactions might tip
`the scales of patent eligibility, as the claims fall far short
`of capturing an invention that necessarily handles “thou-
`sands, if not millions” of bingo numbers or players.
`Moreover, the claims here are similar to the claims at
`issue in Bilski v. Kappos, 130 S. Ct. 3218 (2010), and
`Alice, 134 S. Ct. 2347, which the Supreme Court held
`were directed to “abstract ideas.” For example, the claims
`here recite methods and systems for “managing a game of
`Bingo.” ’646 patent col. 8 l. 46; see also id. col. 9 l. 33; ’045
`patent col. 8 l. 64. This is similar to the kind of “organiz-
`ing human activity” at issue in Alice, 134 S. Ct. at 2356.
`And, although the ’646 and ’045 patents are not drawn to
`the same subject matter at issue in Bilski and Alice, these
`claims are directed to the abstract idea of “solv[ing a]
`tampering problem and also minimiz[ing] other security
`risks” during bingo ticket purchases. Appellant’s Br. 10,
`20. This is similar to the abstract ideas of “risk hedging”
`during “consumer transactions,” Bilski, 130 S. Ct. at 3231,
`and “mitigating settlement risk” in “financial transac-
`tions,” Alice, 134 S. Ct. at 2356–57, that the Supreme
`Court found ineligible. Thus, we hold that the subject
`matter claimed in the ’646 and ’045 patents is directed to
`an abstract idea.
`
`B
`Abstract ideas may still be patent-eligible if they con-
`tain an “‘inventive concept’ sufficient to ‘transform’ the
`claimed abstract idea into a patent-eligible application.”
`Alice, 134 S. Ct. at 2357 (quoting Mayo Collaborative
`Servs. v. Prometheus Labs., Inc., 132 S. Ct. 1289, 1294,
`1298 (2012)).
`
`5
`
`
`
`6
`
`
`
` PLANET BINGO, LLC v. VKGS LLC
`
`Apart from managing a game of bingo, the claims at
`issue also require “a computer with a central processing
`unit,” “a memory,” “an input and output terminal,” “a
`printer,” in some cases “a video screen,” and “a program
`. . . enabling” the steps of managing a game of bingo. ’646
`patent col. 8 ll. 45–53, col. 9 l. 29. These elements, in
`turn, select, store, and retrieve two sets of numbers,
`assign a player identifier and a control number, and then
`compare a winning set of bingo numbers with a selected
`set of bingo numbers.
`“[I]f a patent’s recitation of a computer amounts to a
`mere instruction to ‘implemen[t]’ an abstract idea ‘on . . .
`a computer,’ . . . that addition cannot
`impart patent
`eligibility.” Alice, 134 S. Ct. at 2358 (quoting Mayo, 132
`S. Ct. at 1301). In this case, the claims recite a generic
`computer implementation of the covered abstract idea.
`Planet Bingo argues that the patents recite “signifi-
`cantly more” than an abstract idea because the invention
`includes “complex computer code with three distinct
`subparts.” Appellant’s Br. 33, 38. We disagree. The ’646
`and ’045 patents do not claim the “accounting program,”
`“ticket program,” and “verification program” that Planet
`Bingo identifies in its briefs. Instead, the claims recite a
`program that is used for the generic functions of storing,
`retrieving, and verifying a chosen set of bingo numbers
`against a winning set of bingo numbers. And, as was the
`case in Alice, “the function performed by the computer at
`each step of the process is ‘[p]urely conventional.’” Alice,
`134 S. Ct. at 2359 (quoting Mayo, 132 S. Ct. at 1298).
`Accordingly, we hold that the claims at issue do not
`have an ‘inventive concept’ sufficient to ‘transform’ the
`claimed subject matter into a patent-eligible application.
`III
`We have considered Planet Bingo’s remaining argu-
`ments and find them unpersuasive. Applying the Su-
`
`6
`
`
`
`PLANET BINGO, LLC v. VKGS LLC
`
`7
`
`preme Court’s precedents, the claims at issue are invalid
`under § 101.
`
`AFFIRMED
`
`7
`
`