IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`COMPASS BANK, AMERICAN EXPRESS COMPANY, AMERICAN
`EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.,
`DISCOVER FINANCIAL SERVICES, DISCOVER BANK, DISCOVER
`PRODUCTS INC., NAVY FEDERAL CREDIT UNION, AND STATE
`FARM MUTUAL AUTOMOBILE INSURANCE COMPANY
`Petitioner,
`v.
`
`MAXIM INTEGRATED PRODUCTS, INC.
`Patent Owner.
`
`Case No. To Be Assigned
`Patent No. 6,105,013
`
`
`
`PETITION FOR COVERED BUSINESS METHOD PATENT REVIEW
`UNDER 35 U.S.C. §§ 321-329 AND § 18 OF THE LEAHY-SMITH
`AMERICA INVENTS ACT
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`TABLE OF CONTENTS
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`Page
`
`II. 
`III. 
`
`b. 
`
`(ii) 
`
`TABLE OF CONTENTS ........................................................................................................ i 
`TABLE OF AUTHORITIES ................................................................................................ iii 
`LIST OF EXHIBITS ............................................................................................................... vi 
`I. 
`MANDATORY NOTICES (37 C.F.R. § 42.8(a)(1)) ............................................... 1 
`A. 
`Real Party-In-Interest (37 C.F.R. § 42.8(b)(1)) .............................................. 1 
`B. 
`Related Matters (37 C.F.R. § 42.8(b)(2)) ......................................................... 1 
`C. 
`Lead and Backup Counsel (37 C.F.R. § 42.8(b)(3)) and Service
`Information (37 C.F.R. § 42.8(b)(4)) ............................................................... 4 
`FEES (37 C.F.R. § 42.203) ........................................................................................... 4 
`INTRODUCTION TO THE 013 PATENT .......................................................... 4 
`A.  Overview of the 013 Patent ............................................................................. 4 
`B. 
`013 Patent Prosecution History Summary ..................................................... 6 
`IV.  REQUIREMENTS FOR CBM REVIEW UNDER 37 C.F.R. § 42.304 ............ 7 
`A.  Grounds for Standing (37 C.F.R. § 42.304(a)) .............................................. 7 
`1. 
`Eligibility Requirements of 37 C.F.R. § 42.302 ................................. 8 
`2. 
`Timing Requirements of 37 C.F.R. § 42.303 ..................................... 8 
`3. 
`The 013 Patent is a Covered Business Method Patent .................... 8 
`a. 
`The Challenged Claims Are Directed to a “Financial
`Product or Service” .................................................................. 10 
`The Challenged Claims Are Not Directed to a
`“Technological Invention” ..................................................... 14 
`(i) 
`The Patent Does Not Recite a Technological
`Feature That is Novel and Unobvious ...................... 14 
`The Patent Does Not Solve a Technical
`Problem Using a Technical Solution ......................... 18 
`Citation of Prior Art ........................................................................................ 19 
`Claims and Statutory Grounds (37 C.F.R. §§ 42.304(b)(1) &
`(b)(2)) ................................................................................................................. 20 
`Claim Construction (37 C.F.R. § 42.304(b)(3)) ........................................... 21 
`Person of Ordinary Skill in the Art ............................................................... 28 
`Unpatentability of the Construed Claims (37 C.F.R. §
`42.304(b)(4)) ...................................................................................................... 28 
`Supporting Evidence (37 C.F.R. § 42.304(b)(5)) ......................................... 28 
`G. 
`AT LEAST ONE CLAIM OF THE 013 PATENT IS
`UNPATENTABLE .................................................................................................... 29 
`A. 
`Prior art .............................................................................................................. 29 
`1. 
`Sudia (Ex. 1005) ................................................................................... 29 
`
`B. 
`C. 
`
`D. 
`E. 
`F. 
`
`V. 
`
`
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`i
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`

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`
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`B. 
`
`C. 
`
`2. 
`Hawkes (Ex. 1006) ............................................................................... 32 
`Axelson (Ex. 1007) ............................................................................... 35 
`3. 
`Lancaster (Ex. 1008) ............................................................................ 35 
`4. 
`Lee (Ex. 1009) ....................................................................................... 36 
`5. 
`Ground I: Sudia Renders Obvious Claims 1-4, 6-12, 14-16 Under
`35 U.S.C. § 103 ................................................................................................. 36 
`Ground II: Hawkes Renders Obvious Claims 1-4, 6-12, 14-16
`Under 35 U.S.C. § 103 ..................................................................................... 55 
`D.  Ground III: Claim 5 is Obvious Under 35 U.S.C. § 103 in View of
`Sudia or Hawkes Alone or in Combination with One or More of
`Axelson or Lancaster ....................................................................................... 73 
`E.  Ground IV: Claim 13 is Obvious Under 35 U.S.C. § 103 in View
`of Sudia and/or Hawkes in Combination with Lee ................................... 77 
`VI.  CONCLUSION........................................................................................................... 79 
`
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`ii
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`

`

`
`
`
`CASES
`
`TABLE OF AUTHORITIES
`
`Page(s)
`
`Agilysys, Inc. v. Ameranth, Inc.,
`CBM2014-14, Paper 19 ............................................................................................. 12, 13
`
`Apple Inc. v. SightSound Techs., LLC,
`CBM2013-20, Paper 14 .................................................................................................... 11
`
`Bloomberg Inc. v. Markets-Alert PTY Ltd.,
`CBM2013- 5, Paper 18 ..................................................................................................... 18
`
`CRS Advanced Techs., Inc. v. Frontline Techs., Inc.,
`CBM2012-5, Paper 17 .......................................................................................... 11, 12, 15
`
`Experian Mktg. Solutions, Inc. v. RPost Commc’n Ltd.,
`CBM2014-10, Paper 20 .................................................................................................... 13
`
`Google, Inc. v. Inventor Holdings, LLC,
`CBM2014-2, Paper 16 ....................................................................................................... 10
`
`In re Cuozzo Speed Techs., LLC,
`No. 2014-1301, 2015 WL 448667 (Fed. Cir. Feb. 4, 2015) ......................................... 21
`
`In re Translogic Tech., Inc.,
`504 F.3d 1249 (Fed. Cir. 2007) ........................................................................................ 21
`
`In re: Maxim Integrated Prods., Inc.
`MDL No. 2354, Misc. No. 12-244-JFC (W.D. Pa.) ........................................................ 1
`
`JP Morgan Chase & Co. and JP Morgan Chase Bank, N.A. v. Maxim,
`CBM2014-179, Paper 1 ...................................................................................................... 3
`
`Phillips v. AWH Corp.,
`415 F.3d 1303 (Fed. Cir. 2005) (en banc) ...................................................................... 21
`
`PNC Fin. Servs. Grp., Inc. v. Intellectual Ventures I LLC, CBM2014-32,
`Paper 13 .............................................................................................................................. 13
`
`SAP Am., Inc. v. Versata Dev. Grp., Inc.,
`CBM2012-1, Paper 36 ....................................................................................................... 11
`
`
`
`iii
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`

`

`
`
`Volusion, Inc., v. Versata Software, Inc.,
`CBM2013-18, Paper 8 ....................................................................................................... 11
`
`STATUTES
`
`35 U.S.C. § 102(b)................................................................................................ 20, 32, 35, 36
`
`35 U.S.C. § 102(e) ............................................................................................................. 19, 29
`
`35 U.S.C. § 103 ................................................................................................................. passim
`
`35 U.S.C. § 321(c) ...................................................................................................................... 8
`
`35 U.S.C. § 324(a) .................................................................................................................... 29
`
`35 U.S.C. § 325(a)(1) ................................................................................................................. 7
`
`35 U.S.C. § 325(e)(1) ................................................................................................................. 7
`
`35 U.S.C. § 328(a) ...................................................................................................................... 7
`
`OTHER AUTHORITIES
`
`37 C.F.R. § 42.8(a)(1) ................................................................................................................ 1
`
`37 C.F.R. § 42.8(b)(1) ................................................................................................................ 1
`
`37 C.F.R. § 42.8(b)(2) ................................................................................................................ 1
`
`37 C.F.R. § 42.8(b)(3) ................................................................................................................ 4
`
`37 C.F.R. § 42.8(b)(4) ................................................................................................................ 4
`
`37 C.F.R. § 42.15(b) .................................................................................................................. 4
`
`37 C.F.R. § 42.203 ..................................................................................................................... 4
`
`37 C.F.R. § 42.300(b) .............................................................................................................. 21
`
`37 C.F.R. § 42.301(a) ............................................................................................................... 10
`
`37 C.F.R. § 42.301(b) ....................................................................................................... 14, 18
`
`37 C.F.R. § 42.302 ................................................................................................................. 7, 8
`
`37 C.F.R. § 42.303 ..................................................................................................................... 8
`
`
`
`iv
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`
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`37 C.F.R. § 42.304 ..................................................................................................................... 7
`
`37 C.F.R. § 42.304(a) ................................................................................................................. 7
`
`37 C.F.R. §§ 42.304(b)(1) & (b)(2) ........................................................................................ 20
`
`37 C.F.R. § 42.304(b)(3) ......................................................................................................... 21
`
`37 C.F.R. § 42.304(b)(4) ......................................................................................................... 28
`
`37 C.F.R. § 42.304(b)(5) ......................................................................................................... 28
`
`Oxford, Dictionary of Computing (4th ed. 1996) .............................................................. 27
`
`Microsoft Press, Computer Dictionary (2nd ed. 1994) ..................................................... 27
`
`Office Patent Trial Practice Guide,
`77 Fed. Reg. 48,756, 48,764 (Aug. 14, 2012) ......................................................... passim
`
`Statement of Sen. Schumer,
`157 Cong. Rec. S1364–65 (daily ed. Mar. 8, 2011) ....................................................... 11
`
`
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`v
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`

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`
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`LIST OF EXHIBITS
`
`Description
`
`Exhibit
`Ex. 1001 U.S. Patent No. 6,105,013
`Ex. 1002
`File History for U.S. Patent No. 6,105,013
`Ex. 1003 U.S. Patent No. 6,237,095
`Ex. 1004
`File History for U.S. Patent No. 6,237,095
`Ex. 1005 U.S. Patent No. 5,799,086 to Sudia (“Sudia”)
`Ex. 1006
`INTEGRATED CIRCUIT CARDS, TAGS AND TOKENS (P.L.
`Hawkes et al. eds., 1990) (collectively, “Hawkes”):
` P.L. Hawkes, Preface (“Hawkes Preface”);
` Introduction to Integrated Circuit Cards, Tags and Tokens for Automatic
`Identification (“Hawkes Ch. 1”);
` W.L. Price & B.J. Chorley, Secure Transactions with an Intelligent
`Token
`(“Hawkes Ch. 6”); and
` D.W. Davies, Cryptography and the Smart Card
`(“Hawkes Ch. 8”)
`Jan Axelson, THE MICROCONTROLLER IDEA BOOK (1994)
`(“Axelson”)
`Ex. 1008 Don Lancaster, A Flying Car Newsletter; Photopolymer Resources; Amateur
`Television Books; Royalty-Free Real PostScript!; BASIC Stamp Microcontroller, 4
`HARDWARE HACKER 66 (July 1993) (“Lancaster”)
`Ex. 1009 U.S. Patent No. 5,210,846 to R.D. Lee (“Lee”)
`Ex. 1010 Texas Instruments, TMS7000 Family Microarchitecture, User’s Guide,
`November 1982
`Ex. 1011 Russ Hersch, Microcontroller primer and FAQ, Internet posting on
`USENET (Jan. 26, 1994), available at
`http://www.cs.cmu.edu/Groups/AI/html/faqs/ai/microcontroller-
`faq/primer/faq.html
`Ex. 1012 Decision Institution re U.S. Patent No. 5,940,510, JPMorgan Chase & Co.
`and JP Morgan Chase Bank, N.A., v. Maxim Integrated Products, Inc., CBM
`2014-179, Paper No. 11, February 20, 2015
`Petition for CBM Review of U.S. Patent No. 6,105,013, JPMorgan Chase
`& Co. and JP Morgan Chase Bank, N.A., v. Maxim Integrated Products, Inc.,
`CBM 2014-178, Paper No. 1, August 21, 2014
`Ex. 1014 Declaration of Stephen Bristow (“Bristow Decl.”) re U.S. Patent No.
`6,105,013, which was exhibit 1014 in the proceeding, JPMorgan Chase &
`Co. and JP Morgan Chase Bank, N.A., v. Maxim Integrated Products, Inc., CBM
`2014-178 (filed August 21, 2014)
`
`Ex. 1007
`
`Ex. 1013
`
`vi
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`

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`
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`Exhibit
`Ex. 1015
`
`Description
`Special Master’s Report and Recommendation re Claim Construction, In
`re Maxim Integrated Products, Inc., Patent Litigation, No. 2:12-mc-00244-JFC
`(W.D. Pa.), Docket #691, (10/09/2013) (“R&R”)
`Ex. 1016 Corrective Entry to Special Master’s Report and Recommendation re
`Claim Construction, In re Maxim Integrated Products, Inc., Patent Litigation,
`No. 2:12-mc-00244-JFC (W.D. Pa.), Docket #693, (10/15/2013) (“R&R
`Correction”)
`Ex. 1017 Memorandum Opinion re Special Master’s Report and Recommendation
`re Claim Construction, In re Maxim Integrated Products, Inc., Patent
`Litigation, No. 2:12-mc-00244-JFC (W.D. Pa.), Docket #742,
`(12/17/2013) (“CC Op.”)
`Ex. 1018 Microsoft Press, Computer Dictionary (2nd ed. 1994) (“Microsoft
`Computer Dictionary”)
`Ex. 1019 Oxford, Dictionary of Computing (4th ed. 1996) (“Dictionary of
`Computing”)
`First Amended Complaint in Maxim Integrated Prods., Inc. v. Compass Bank,
`d/b/a BBVA Compass, No. 5:14-cv-1028-XR (W.D. Tx.), D.I. 20
`(2/16/2015)
`Ex. 1021 Declaration of Peter Alexander, Ph.D. (“Alexander Decl.”)
`Ex. 1022 Curriculum Vitae of Peter Alexander, Ph.D.
`
`Ex. 1020
`
`vii
`
`

`

`
`
`I. MANDATORY NOTICES (37 C.F.R. § 42.8(a)(1))
`A. Real Party-In-Interest (37 C.F.R. § 42.8(b)(1))
`
`The real parties in interest for this petition for Covered Business Method
`
`patent (“CBM”) review are Compass Bank, American Express Company, American
`
`Express Travel Related Services Company, Inc., Discover Financial Services, Discover
`
`Bank, Discover Products Inc., Navy Credit Federal Credit Union, and State Farm
`
`Mutual Automobile Insurance Company (collectively, “Petitioner”).
`
`B. Related Matters (37 C.F.R. § 42.8(b)(2))
`
`U.S. Patent No. 6,105,013 (Ex. 1001) (“013 Patent”), owned by Maxim
`
`Integrated Products, Inc. (“Maxim”), is currently asserted against multiple defendants
`
`in the Western District of Texas (collectively, “WD Tx Litigations”):
`
` Maxim v. The American Express Company and American Express Travel Related
`Services Company, Inc., No. 5:14-cv-1027-XR (W.D. Tx.)
` Maxim v. Compass Bank d/b/a BBVA Compass, No. 5:14-cv-1028-XR
`(W.D. Tx.)
` Maxim v. Discover Financial Services, No. 5:14-cv-1029-XR (W.D. Tx.)
` Maxim v. State Farm Mutual Automobile Insurance Company, No. 5:14-cv-
`1030-XR (W.D. Tx.)
` Maxim v. USAA Federal Savings Bank, No. 5:14-cv-1031-XR (W.D. Tx.)
` Maxim v. Navy Federal Credit Union, No. 5:14-cv-1032-XR (W.D. Tx.)
`
`
`
`The 013 Patent has also been asserted in cases consolidated into multidistrict
`
`litigation as In re: Maxim Integrated Prods., Inc. MDL No. 2354, Misc. No. 12-244-JFC
`
`
`
`1
`
`

`

`
`
`(W.D. Pa.) (“MDL Litigation”). Claims of the 013 Patent were construed by the
`
`district court in the MDL Litigation. A special master issued a claim construction
`
`report and recommendation (Ex. 1015) (hereinafter “R&R”) and a correction to that
`
`report (Ex. 1016) (hereinafter “R&R Correction”), which the district court adopted in
`
`part and overruled in part in a claim construction opinion (Ex. 1017) (hereinafter “CC
`
`Op.”). As of the filing date of this Petition, all but one of the MDL cases (Branch
`
`Banking & Trust Co. v. Maxim) has been terminated as indicated below:
`
`Active (W.D. Pa.)
` Branch Banking & Trust Co. v. Maxim, No. 2:12-cv-945-JFC
`
`Terminated (W.D. Pa.)
` PNC Fin. Servs. Grp., Inc. v. Maxim, No. 2:12-cv-89-JFC
` KeyCorp v. Maxim, No. 2:12-cv-860-JFC
` Vanguard Grp., Inc. v. Maxim, No. 2:12-cv-862-JFC
` Jack Henry & Assocs., Inc. v. Maxim, No. 2:12-cv-863- JFC
` Maxim v. Comerica Inc., No. 2:12-cv-869-JFC
` Fidelity Brokerage Servs. LLC v. Maxim, No. 2:12-cv-871-JFC
` Maxim v. First United Bank & Trust Co., No. 2:12-cv-876-JFC
` Maxim v. Starbucks Corp., No. 2:12-cv-877-JFC
` Maxim v. Expedia, Inc., No. 2:12-cv-878-JFC
` Maxim v. Capital One Fin. Corp., No. 2:12-cv-879- JFC
` Maxim v. Bank of the West, No. 2:12-cv-880-JFC
` Maxim v. Groupon, Inc., No. 2:12-cv-881-JFC
` Maxim v. Union Bank, N.A., No. 2:12-cv-882-JFC
` Maxim v. Southwest Airlines, Co., No. 2:12-cv-883- JFC
`
`
`
`2
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`

`

`
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`
`
` Chipotle Mexican Grill, Inc. v. Maxim, No. 2:12-cv-887-JFC
` Maxim v. QVC, Inc., No. 2:12-cv-891-JFC
` Clairmail Inc. v. Maxim, No. 2:12-cv-923-NBF
` BMO Harris Bank Nat’l Ass’n v. Maxim, No. 2:12-cv-1538-JFC
` Deutsche Bank AG v. Maxim, No. 2:12-cv-1604-JFC
` Maxim v. Citigroup, Inc., No. 2:12-cv-1628-JFC
` Maxim v. Target Corp., No. 2:12-cv-1629-JFC
` Maxim v. Wells Fargo & Co., No. 2:12-cv-1639-JFC
` Maxim v. Bank of Am. Corp., No. 2:12-cv-1640-JFC
` Maxim v. U.S. Bancorp, No. 2:12-cv-1642-JFC
` Maxim v. Walmart Stores, Inc., No. 2:12-cv-1643-JFC
` Maxim v. JP Morgan Chase & Co. and JP Morgan Chase Bank, N.A.
`(collectively, “Chase”), No. 2:12-cv-1641-JFC
`
`The 013 Patent is related to Application No. 08/594,975, filed January 31,
`
`1996, now U.S. Patent No. 5,940,510 (“510 Patent”). See 013 Patent 1:16-19 (citing the
`
`510 Patent application as “related subject matter”). Petitioner filed a CBM petition
`
`against the 510 Patent on March 6, 2015.
`
`Previously, Chase filed a CBM petition against the 510 Patent on August 21,
`
`2014. JP Morgan Chase & Co. and JP Morgan Chase Bank, N.A. v. Maxim, CBM2014-179,
`
`Paper 1. The Board instituted review of the 510 Patent on February 20, 2015. Chase,
`
`CBM2014-179, Paper 11. However, five days after the Board instituted review, Chase
`
`and Maxim filed a joint motion to terminate the proceeding because they reached a
`
`settlement agreement. Chase, CBM2014-179, Paper 13. The Board granted the joint
`
`
`
`3
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`

`

`
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`motion on February 27, 2015 and terminated the 510 Patent CBM review due to
`
`settlement. Chase, CBM2014-179, Paper 15.
`
`C.
`
`Lead and Backup Counsel (37 C.F.R. § 42.8(b)(3)) and
`Service Information (37 C.F.R. § 42.8(b)(4))
`
`Lead Counsel
`William F. Long (Reg. No. 51,967)
`blong@mckennalong.com
`
`Postal and Hand-Delivery Address:
`McKenna Long & Aldridge LLP
`303 Peachtree St. NE, Ste. 5300
`Atlanta, Georgia 30308
`T: (404) 527-4000; F: (404) 527-4198
`
`Back-up Counsel
`David M. Tennant (Reg. No. 48,362)
`dtennant@whitecase.com
`Postal and Hand-Delivery Address:
`White & Case LLP
`701 13th St., NW Washington, DC
`20005
`T: (202) 626-3684; F: (202) 639-9355
`
`
`Additional counsel for Petitioner are listed in the signature block of the Petition.
`
`Service information for lead and back-up counsel is immediately above.
`
`II.
`
`FEES (37 C.F.R. § 42.203)
`
`The undersigned authorizes the Office to charge $30,550 ($12,000 request fee;
`
`$18,000 post-institution fee; $550 for 1 claim in excess of 15) to Deposit Account No.
`
`50-0911 for the fees set forth in 37 C.F.R. § 42.15(b) for this Petition. The
`
`undersigned further authorizes payment for any additional fees that might be due in
`
`connection with this Petition to be charged to the above referenced Deposit Account.
`
`III.
`
`INTRODUCTION TO THE 013 PATENT
`A. Overview of the 013 Patent
`
`The 013 Patent, which claims priority to September 1995, relates to “an
`
`electronic module used for secure transactions” that “is capable of passing
`
`
`
`4
`
`

`

`
`
`information back and forth between a service provider’s equipment via a secure,
`
`encrypted technique so that money and other valuable data can be securely passed
`
`electronically. The module is capable of being programmed, keeping track of real
`
`time, recording transactions for later review, and creating encryption key pairs.” 013
`
`Patent, Abstract. Claim 14 recites the module can “perform digital cash transactions.”
`
`Figure 1 of the 013 Patent (reproduced at
`
`left; color annotations added) shows the
`
`module’s components. Id. 2:6, 2:34-35, Fig. 1.
`
`The module contains a microprocessor 12
`
`(highlighted in purple), math coprocessor /
`
`modular exponentiation accelerator 18 for
`
`encryption and decryption (highlighted in red),
`
`memory circuitry 20 (highlighted in blue),
`
`input/output circuit 26 (highlighted in orange), real time clock 14 for time stamping
`
`(highlighted in green), and energy circuit 34 (highlighted in brown). Id. 2:39-43.
`
`The 013 Patent’s module is “capable of being programmed” so it can run
`
`various applications. Id. Abstract, 3:10-17. The applications can be programmed into
`
`the module’s memory (ROM, EPROM, NVRAM, SRAM, or other types of memory)
`
`to configure the module to perform various functions. Id. 2:58-63, 3:27-30. For
`
`example, the module “can be configured to provide at least secure data transfers,
`
`digital signatures or to authorize monetary transactions.” Id. 1:25-28. The module may
`
`
`
`5
`
`

`

`
`
`execute transactions by “passing information back and forth between [itself and] a
`
`service provider’s equipment via a secure, encrypted technique so that money and
`
`other valuable data can be securely passed electronically.” Id. Abstract. Further, the
`
`“module is capable of time stamping and storing in memory information about the
`
`transaction for later review.” Id. 1:65-67.
`
`The specification describes a “series of practical applications” (id. 4:63-64) for
`
`the claimed module, including inter alia, serving as a “Digital Cash Dispenser” (id.
`
`7:63) for “monetary transactions” (id. 9:13) and for “Digital Cash Replenishment”
`
`(10:24) in which the module is used as a “wallet” that can be “filled up” with currency
`
`or some other form of exchange, and used for payment (id. 7:63-8:18, 10:24-32).
`
`B.
`
`013 Patent Prosecution History Summary
`
`A number of responses and amendments are present in the file history of the
`
`013 Patent. Petitioner summarizes here the actions most relevant to the grounds of
`
`unpatentability set forth herein.
`
`Independent Claim 1 of the 013 Patent corresponds to application claim 32,
`
`and Independent Claim 9 of the 013 Patent corresponds to application claim 41.
`
`During prosecution, the examiner found application claims 32 and 41 to be
`
`anticipated by multiple prior art references. Ex. 1002, Office Action, 220-27
`
`(Examiner applying SGS-Thomson Microelectronics publication ST16xF74 and
`
`European Patent Application Pub. No. EP0458306, both of which describe the well-
`
`known hardware components often used in cryptographic applications).
`
`
`
`6
`
`

`

`
`
`In response, claim 32 was amended to recite a “real time clock,” and claim 41
`
`was amended to recite a “clock circuit.” Ex. 1002, Amendment, 231-35. Following the
`
`amendments, the Examiner allowed the claims. Ex. 1002, Notice Allowance, 245-46.
`
`IV. REQUIREMENTS FOR CBM REVIEW UNDER 37 C.F.R. § 42.304
`A. Grounds for Standing (37 C.F.R. § 42.304(a))
`
`Pursuant to 37 C.F.R. § 42.304(a), the 013 Patent is eligible for CBM review
`
`(“CBMR”) because each Petitioner meets the eligibility requirements of 37 C.F.R. §
`
`42.302 and the 013 Patent is a covered business method patent.
`
`Moreover, each Petitioner is not estopped from maintaining the present
`
`Petition. Congress specifically defined the circumstances under which a party may be
`
`estopped from requesting or maintaining a post-grant review proceeding such as the
`
`instant CBM Petition in 35 U.S.C. § 325(e)(1). Estoppel cannot arise under § 325(e)(1)
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`unless the Board previously issued a “final written decision under Section 328(a).” By
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`its terms, a final written decision under § 328(a) can exist only in cases where “a post-
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`grant review is instituted and not dismissed.” 35 U.S.C. § 328(a). Each Petitioner has
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`not been a petitioner to any post-grant review of the 013 Patent that has resulted in a
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`final written decision under 35 U.S.C. § 328(a) and is therefore not estopped from
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`filing the instant petition.
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`No Petitioner is barred by 35 U.S.C. § 325(a)(1) because each Petitioner has not
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`previously filed a civil action challenging the validity of the 013 Patent.
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`7
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`1.
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`Eligibility Requirements of 37 C.F.R. § 42.302
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`Each Petitioner, except for Discover Products Inc. (“DPI”), has been sued for
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`infringement of the 013 Patent in the WD Tx Litigations. DPI is a wholly owned
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`servicing subsidiary of Discover Bank, DPI’s real party in interest and privy. No
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`Petitioner is estopped from challenging the claims on the grounds identified herein.
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`2.
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`Timing Requirements of 37 C.F.R. § 42.303
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`The requirements of 35 U.S.C. § 321(c) cannot be met for the 013 Patent. As
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`such, a petition requesting CBM review of the 013 Patent may be filed at any time.
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`3.
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`The 013 Patent is a Covered Business Method Patent
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`As noted above, the 013 Patent is related to the 510 Patent and contains similar
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`subject matter. Previously, the Board ruled that the 510 Patent is a covered business
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`method patent. Chase, CBM2014-179, Paper 11 at 23. In reaching this decision, the
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`Board found dependent claim 2 of the 510 Patent, which recites that a “portable
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`module reader” in claim 1 of the 510 Patent can be connected to a plurality of other
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`devices including “a credit card reader, a cash machine, an automatic teller
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`machine, and a phone line,” to be “at a minimum, incidental or complementary to
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`financial activities and services performed by credit card readers, cash machines, and
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`automatic teller machines (“ATMs”), such as electronic payments and debits, or cash
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`transfers and withdrawals.” Id. at 17-18 (emphasis original). Further, the Board
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`concluded that the 510 Patent’s specification confirmed that claim 2 of the 510 Patent
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`involved financial activities, because the 510 specification stated the “portable module
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`
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`8
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`reader” was for use with a “portable module” that stored a “cash equivalent,”
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`“electronic money,” or a “currency equivalent” and was for use in “electronic
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`financial activities and transactions, including transferring and withdrawing monetary
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`value, and paying for goods and services.” Id. at 18.
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`As with the 510 Patent, a challenged claim in the 013 Patent is directed to
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`“digital cash transactions,” which the 013 Patent’s specification confirms are
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`electronic financial transactions, including transferring and withdrawing monetary
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`value, and paying for goods and services. Claim 1 of the 013 Patent recites “[a] secure
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`transaction integrated circuit comprising . . . a transaction program.” Claim 14, which
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`depends from Claim 9, specifies “[the] transaction program can enable [the] secure
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`transaction integrated circuit to perform digital cash transactions.” The 013 Patent’s
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`specification confirms the “digital cash transactions” recited in Claim 14 involve
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`financial activities. See 013 Patent 7:63-11:46 (the claimed “secure transaction
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`integrated circuit” can be used as a “Digital Cash Dispenser” for “monetary
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`transactions” and for “Digital Cash Replenishment” (10:23) where it is used as a
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`“wallet” that can be “filled up” with currency or some other form of exchange, and
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`used for payment); id. 7:64-8:6 (in an “exemplary usage model” the “Service Provider
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`is a bank or other financial institution, the End User is the bank’s customer who
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`wishes to use the [claimed] module [] to make purchases”).
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`The Board’s decision in Chase therefore strongly supports the conclusion that
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`the 013 Patent is also a covered business method review patent. See Chase, CBM2014-
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`9
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`179, Paper 11 at 17-18, 23. Such a conclusion is consistent with the AIA, USPTO
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`rules, and Board precedent. For example, the AIA and USPTO rules define a
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`“covered business method patent” as “a patent that claims a method or
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`corresponding apparatus for performing data processing or other operations used in
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`the practice, administration, or management of a financial product or service, except
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`that the term does not include patents for technological inventions.” AIA § 18(d)(1);
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`see also 37 C.F.R. § 42.301(a). The statutory scheme sets forth a two-part test to
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`determine whether a patent is eligible for CBMR: (1) the patent must claim a method
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`or apparatus for performing data processing or other operations used in the practice,
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`administration, or management of a financial product or service, and (2) the claimed
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`invention cannot be a technological invention. A patent need have only one claim
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`directed to a covered business method to be eligible for review, even if the patent
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`includes additional claims. Google, Inc. v. Inventor Holdings, LLC, CBM2014-2, Paper 16,
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`6 (citing 77 Fed. Reg. 48,734, 48,736 (Aug. 14, 2012)). The 013 Patent meets both
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`parts of the test and is thus eligible for CBMR.
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`a.
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`The Challenged Claims Are Directed to a “Financial
`Product or Service”
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`As noted above, the Board previously concluded that the related 510 Patent is
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`directed to a financial product or service. Chase, CBM2014-179, Paper 11 at 16-19, 23.
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`The same conclusion applies to the 013 Patent; in particular, to challenged Claim 14
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`which recites a module that can “perform digital cash transactions.”
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`10
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`The Board has stated that “financial product or service” should be “interpreted
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`broadly.” Apple Inc. v. SightSound Techs., LLC, CBM2013-20, Paper 14 at 11. It
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`encompasses patents claiming “activities that are financial in nature, incidental to a
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`financial activity or complementary to a financial activity.” CRS Advanced Techs., Inc. v.
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`Frontline Techs., Inc., CBM2012-5, Paper 17, 7 (quoting 77 Fed. Reg. 48,735 (Aug. 14,
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`2012)). Patents are eligible for CBMR if they “cover any ancillary activities related to a
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`financial product or service, including . . . marketing, customer interfaces, Web site
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`management and functionality, transmission or management of data, servicing,
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`underwriting, customer communications, and back office operations-e.g., payment
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`processing, stock clearing.” Statement of Sen. Schumer, 157 Cong. Rec. S1364–65
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`(daily ed. Mar. 8, 2011).
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`The Board has explained that a patent that “relates to a commercial transaction
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`. . . is itself financial in nature” Volusion, Inc., v. Versata Software, Inc., CBM2013-18,
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`Paper 8 at 6, and that “the term financial is an adjective that simply means relating to
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`monetary matters.” SAP Am., Inc. v. Versata Dev. Grp., Inc., CBM2012-1, Paper 36, 23.
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`The Board has also held that “[t]he electronic sale of something, including charging a
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`fee to a party’s account, is a financial activity, and allowing such a sale amounts to
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`providing a financial service.” Apple, CBM2013-21, Paper 13 at 11. Here, the claims,
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`the specification, and the patent owner’s litigation history all show the 013 Patent is
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`directed to a financial product or service.
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`11
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`Starting with the claims, Claim 14 recites “[t]he secure transaction integrated
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`circuit of claim 9, wherein said transaction program can enable said secure transaction
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`integrated circuit to perform digi