`Trials@uspto.gov
`571-272-7822
`Date Entered: January 30, 2014
`
`
`
`
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`INTERTHINX, INC.
`Petitioner1
`
`v.
`
`CORELOGIC SOLUTIONS, LLC
`Patent Owner
`____________
`
`Case CBM2012-00007
`Patent 5,361,201
`____________
`
`
`
`
`Before, MICHAEL P. TIERNEY, JONI Y. CHANG,
`and BRIAN J. McNAMARA, Administrative Patent Judges.
`
`McNAMARA, Administrative Patent Judge.
`
`
`
`FINAL WRITTEN DECISION
`35 U.S.C. § 328(a) and 37 C.F.R. § 42.73
`
`
`
`
`
`
`
`1 On November 12, 2013, the Board terminated Petitioner’s involvement without
`terminating the proceeding under 37 C.F.R. § 327(a).
`
`
`
`IBG 1082
`IBG v. TT
`CBM2016-00054
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`
`
`Case CBM2012-00007
`Patent 5,361,201
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`
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`BACKGROUND
`
`In its Petition for covered business method patent review of US 5,361,201
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`(the ’201 Patent), Interthinx, Inc. (“Petitioner”) asserted that claims 1, 5, 6, 9, and
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`10 were unpatentable under 35 U.S.C. §§ 102 and 103, and recited unpatentable
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`subject matter under 35 U.S.C. § 101. Pet. 13-80. CoreLogic Information
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`Solutions, LLC (“Patent Owner”) later disclaimed claim 5. Prelim. Resp. 11, 13.
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`The Board instituted a trial on January 31, 2013. Decision to Institute, Paper 16.
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`Petitioner’s involvement terminated late in this proceeding, pursuant to a
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`settlement with the Patent Owner. Termination of Petitioner Pursuant To
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`Settlement, Paper 47. The Board retained jurisdiction to issue this Final Written
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`Decision. 35. U.S.C. § 317(a).
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`The ’201 Patent, which is expired, is the subject of a jury verdict rendered
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`on September 28, 2012, and a judgment entered in CoreLogic Information
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`Solutions, Inc. v. Fiserv, Inc., No. 2:10-CV-132-RSP (E.D. Tex. Oct. 2, 2012).
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`Among other things, the District Court entered judgment of non-infringement in
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`favor of Petitioner and in favor of Patent Owner, rejecting Petitioner’s assertion
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`that patent claims 1 and 10 of the ’201 Patent are invalid as anticipated or obvious.
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`Ex. 2006. Several days earlier, on September 23, 2012, the District Court denied
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`Defendant’s Motion for Summary Judgment that the Patent-In-Suit [the ’201
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`Patent] is Invalid under 35 U.S.C. § 101. Ex. 2003. Post-trial motions filed in the
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`District Court included Patent Owner’s Motion for Judgment as a Matter of Law
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`that Petitioner infringed the ’201 Patent, Petitioner’s Motion for Judgment as a
`
`Matter of Law that claims 1 and 10 of the ’201 Patent are invalid under 35 U.S.C.
`
`§ 102 and/or § 103, and Petitioner’s Motion for Judgment as a Matter of Law that
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`the ’201 Patent is invalid under 35 U.S.C. § 101. The District Court denied all
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`post-trial motions on September 30, 2013. Ex. 2039; Ex. 2040. On October 25,
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`2
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`Patent 5,361,201
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`2013, the parties moved to terminate this covered business method patent review.
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`Paper 44. On November 12, 2013, the Board terminated Petitioner’s involvement
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`without terminating the proceeding. 37 C.F.R. § 327(a). Patent Owner presented
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`arguments at an oral hearing conducted on December 2, 2013.
`
`THE ’201 PATENT (EXHIBIT 1001)
`
`All of the challenged claims are drawn to “[a] computer implemented
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`method for appraising a real estate property.” Noting that traditional statistical
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`techniques, such as multiple linear regression and logistical regression, have been
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`tried in the past, the ’201 Patent identifies uncertainty as to the optimal temporal
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`and geographical sample size among the difficulties of applying a regression model
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`to the appraisal problem. Ex. 1001, co1. 1, l. 56 - col. 2, l. 16. The ’201 Patent
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`addresses these problems with a model development component and a property
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`valuation component. Ex. 1001, col. 6, ll. 4-6. Using predictive modeling
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`techniques, such as neural networks and regression modeling, the model
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`development component uses training data describing a number of real estate
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`properties, characteristics, and prices to build models containing information
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`representing learned relationships among a number of variables and to develop
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`error models, which are typically regression models, to estimate error in predicted
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`sales prices. Ex. 1001, col. 6, ll. 3-22. The property valuation component feeds
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`input data describing the subject property and its geographic area to the neural
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`network models and error models to generate price estimates, error ranges, and
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`other codes to be output to a display device, printer, or database for future access.
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`Ex. 1001, col. 6, ll. 23-30.
`
`In our Decision to Institute, we adopted the constructions applied by the
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`District Court. Paper 16 at 15-16. With the construction of the construed terms
`
`indicated by italics, claim 1 recites:
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`3
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`Patent 5,361,201
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`A computer implemented method (which does not require a general
`purpose computer and does not exclude human interaction or input) for
`appraising a real estate property, comprising the steps of:
`collecting training data (data which is available regarding real estate
`properties);
`developing a predictive model (which is not limited to a neural
`network and does not exclude a regression model) from the training data
`(data which is available regarding real estate properties);
`storing the predictive model (which is not limited to a neural network
`and does not exclude a regression model);
`obtaining individual property data for the real estate property;
`developing an error model (a model that estimates error in the
`predicted sales price of the subject property generated by the predictive
`model) from the training data (data which is available regarding real estate
`properties);
`storing the error model (a model that estimates error in the predicted
`sales price of the subject property generated by the predictive model) ; and
`generating a signal indicative of an error range for the appraised value
`responsive to the application of the individual property data to the stored
`error model (a model that estimates error in the predicted sales price of the
`subject property generated by the predictive model).
`
`Claim 6, which depends from disclaimed independent claim 5 and
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`incorporates all the limitations of claim 5, differs from claim 1 in several ways.
`
`Claim 6 limits the training data to individual property training data describing past
`
`real estate sales which is aggregated into area training data sets describing a
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`plurality of sales within a geographic area. The aggregating step is repeated using
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`successively larger geographic areas until the number of sales within the
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`geographic area over a predetermined time period exceeds a predetermined
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`number. Another important difference between claims 1 and 6 is that claim 6 does
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`not recite an error model.
`
`Claim 9 differs from claim 1 by reciting the selection of a geographic area
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`surrounding the real estate property and obtaining area data for the geographic
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`area. Claim 9 also does not recite an error model.
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`Claim 10 depends from claim 9 and recites the same steps of developing an
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`error model and generating a signal indicative of an error range that are recited in
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`claim 1.
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`RES JUDICATA AND COLLATERAL ESTOPPEL
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`As noted above, in the co-pending litigation, the District Court denied all
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`post-trial motions for judgment as a matter of law, and the parties subsequently
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`settled. There has been no appeal of the District Court judgment.
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`Citing The Restatement of the Law Judgments 2d, Patent Owner argues that
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`res judicata bars Petitioner’s §101 case because the District Court entered a final
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`summary judgment on the merits of that claim. PO Resp. 70-71. Citing the
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`Supreme Court’s decision in Microsoft Corp. v. i4i, 131 S.Ct. 2238, (2011) , and
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`Cybersource Corp. v. Retail Decisions, Inc., 654 F.3d 1366, 1369 (Fed. Cir. 2011),
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`Patent Owner argues that collateral estoppel also applies to Petitioner’s challenge
`
`under 35 U.S.C. § 101 because the question is purely one of law, rather than fact,
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`to which the clear and convincing standard is not applicable. PO Resp. 73-74.
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`Thus, Patent Owner argues that in this case, the patent is expired and cannot be
`
`amended, the Board adopted the Court’s claim construction, and that for questions
`
`of law, district courts and the Board apply the same standard. Id. at 74-75.
`
`Patent Owner’s underlying assumption that subject matter eligibility
`
`determinations are pure questions of law, not subject to the clear and convincing
`
`evidence standard, is not supported by the Federal Circuit. “[T]he analysis under
`
`[35 U.S.C.] § 101, while ultimately a legal determination, is rife with underlying
`
`factual issues.” Ultramercial, Inc. v. Hulu, LLC, 722 F.3d 1335, 1339 (Fed. Cir.
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`2013) (citing, e.g., CLS Bank Int'l v. Alice Corp., 717 F.3d 1269, 1304–05 (Fed.
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`Cir. 2013) (en banc)) (Chief Judge Rader, and Judges Linn, Moore, and O'Malley,
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`concluding that “any attack on an issued patent based on a challenge to the
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`eligibility of the subject matter must be proven by clear and convincing evidence,”
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`and Judges Lourie, Dyk, Prost, Reyna, and Wallach, concluding that a statutory
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`presumption of validity applies when § 101 is raised as a basis for invalidity in
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`district court proceedings.)). In denying Petitioner’s motion for judgment as a
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`matter of law under 35 U.S.C. § 101, the District Court stated only that Petitioner
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`failed to show that claims 1 and 10 of the ’201 Patent do not cover a “new and
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`useful process, machine, manufacture, or composition of matter, or any new and
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`useful improvement thereof.” Ex. 2039, 2. The District Court’s decision applied
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`the clear and convincing evidence standard to the facts underlying its
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`determination of law when denying Petitioner’s motion for summary judgment and
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`motion for judgment as a matter of law that the claims of the ’201 Patent do not
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`recite eligible subject matter. In contrast, the Board reviews the patentability of a
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`claim, rather than its validity, and applies a preponderance of the evidence standard
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`to the underlying factual determinations, e.g., whether the claims contain
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`limitations that narrow or tie them to specific applications of an otherwise abstract
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`concept. 35 U.S.C. § 326(e); Ultramercial, 722 F.3d at 1339. Because the Board
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`applies to the underlying facts an evidentiary standard that is different from the
`
`standard applied by the courts, the issue decided by the Board is not identical to the
`
`one decided or litigated in the first action and could not have been essential to the
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`final judgment in the first action. See In re Freeman, 30 F.3d, 1459, 1465 (Fed.
`
`Cir. 1994). Petitioner did not have an opportunity to litigate the issue in the first
`
`action. Id. Therefore, we conclude that Petitioner’s challenge under 35 U.S.C. §
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`101 is not barred by res judicata or collateral estoppel.
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`In denying Petitioner’s motion for judgment as a matter of law under 35
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`U.S.C. § 102 and/or 35 U.S.C. § 103 the Court stated only that it found substantial
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`evidence to support the jury’s finding of validity. Ex. 2039, 2. Patent Owner
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`6
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`argues that collateral estoppel applies to the prior art ground of unpatentability
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`because the issues before the District Court and the Board are identical, the issue
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`was litigated at the District Court, the issue of whether the prior art invalidated the
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`patent was essential to the final judgment of validity and the Petitioner had a full
`
`and fair opportunity to litigate the issue. However, the jury’s finding that
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`Petitioner had not proved invalid any claim of the ’201 Patent under the clear and
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`convincing evidence standard, is not binding on the Board, which evaluates claim
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`patentability and applies a preponderance of the evidence standard. 35 U.S.C.
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`326(e); see, In re Swanson, 540 F.3d 1368, 1377 (Fed. Cir. 2008) (stating a court’s
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`holding that a patent is not invalid “is not binding on subsequent litigation or PTO
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`reexaminations”).
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`Patent Owner argues that, because the ’201 Patent is expired and cannot be
`
`amended, the Board should apply the higher clear and convincing evidence
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`standard applied by the District Court. PO Resp. 79. However, the statute does
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`not provide an exception for expired patents. 35 U.S.C. § 326(e).
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`Finally, to apply issue preclusion, the party against whom the estoppel is
`
`being asserted must have been accorded a full and fair opportunity to litigate in the
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`prior court proceeding the very issue he now seeks to relitigate. In re Freeman, 30
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`F.3d at 1467. Petitioner is no longer a party to this proceeding and Patent Owner
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`has failed to demonstrate that the Office, which is proceeding to a final written
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`decision under 35 U.S.C. § 327(a), had a full and fair opportunity to litigate the
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`patentability issues in the prior court proceeding.
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` Therefore, we conclude that res judicata and collateral estoppel do not limit
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`the Board’s ability to decide the challenges at issue in this proceeding.
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`
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`CLAIMS 1, 6, 9 AND 10 DO NOT RECITE PATENT ELIGIBLE SUBJECT
`MATTER UNDER 35 U.S.C. § 101
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`A persistent theme in Patent Owner’s arguments is that the claims recite
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`patentable subject matter because a computer is central to all the claims and the
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`processes cannot be done manually. PO Resp. 59-62. The fact that a claim relies
`
`on a method that is implemented on a computer is not a per-se indicator of
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`patentability. Rather, a challenged claim, properly construed, must incorporate
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`enough meaningful limitations to ensure that what is claimed is more than just an
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`abstract idea and is not a mere “drafting effort designed to monopolize [an abstract
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`idea] itself.” Mayo Collaborative Servs. v. Prometheus Labs, Inc., 132 S. Ct. 1289,
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`1297 (2012). In order for a machine to impose a meaningful limitation on the
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`scope of a method claim, it must play a significant part in permitting the claimed
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`method to be performed, rather than function solely as an obvious mechanism for
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`permitting a solution to be achieved more quickly. SiRF Tech., Inc. v. Int'l Trade
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`Comm'n, 601 F.3d 1319, 1333 (Fed. Cir. 2010). Claims that recite a method of
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`doing business on a computer, and do no more than merely recite the use of the
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`computer for its ordinary function of performing repetitive calculations, are not
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`patent eligible. Bancorp Servs., L.L.C. v. Sun Life Assurance Co., 687 F.3d 1266,
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`1278-79 (Fed. Cir. 2012) (computer used for its most basic function, the
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`performance of repetitive calculation, does not impose a meaningful claim
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`limitation).
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`Patent Owner argues that under the machine or transformation test, the
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`computer plays a necessary and vital role to the development and storage of the
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`predictive and error models. PO Resp. 63. During the oral hearing, Patent Owner
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`argued that the word “model” in the claims requires a specialized computer, not a
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`mere algorithm, a mere function, or equations. Tr. 10. Patent Owner also argued
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`that all of the claim limitations require the computer. Tr. 16. Although the
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`preamble recites a computer implemented process, none of the claim elements,
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`with the possible exception of the “storing” limitations, specifically recites a
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`relationship to the computer.
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`According to Patent Owner, the claims pass the Federal Circuit’s “mental
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`process test” because they recite an automated, predictive model based system for
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`real estate appraisals using sophisticated error modeling techniques, including
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`statistical techniques, to overcome human bias and cannot be performed entirely
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`manually or in the human mind. Id. at 66-70, Tr. 19-21, 23. During the oral
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`hearing, Patent Owner argued extensively that the claims require implementation
`
`on a computer. Tr. 15-18, 24-26. However, the claims recite collecting training
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`data, developing the predictive model, and developing the error model in the
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`abstract, and do not tie necessarily these steps to a computer or a particular
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`application. Even the claim limitations that recite generating the signal responsive
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`to application of individual property data to the model do not require any specific
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`volume of data (as claimed, the individual property data could merely be the
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`address of the property). For example, Dr. Lipscomb testified that claim 1 does not
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`provide any threshold for training data. Ex. 1024, 99, 114. Dr. Lipscomb further
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`testified that a predictive model could be developed manually using a limited
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`number of observations. Id. at 101.
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`As previously discussed, the inquiry under § 101 requires a search for
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`limitations in the claims that narrow or tie the claims to a specific application of an
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`otherwise abstract concept. Ultramercial, 722 F.3d at 1339. We consider the
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`claim as a whole. Id. at 1344. Patent Owner argues that the claims satisfy the
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`“abstract idea” test for patentable subject matter because, rather than being tied
`
`preemptively to a field of use, they are narrowly tied to a specific application, i.e.,
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`previously unknown computer-based modeling for real estate appraisal by
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`developing and storing predictive and error models. PO Resp. 64-66.
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`A claim is not patent eligible if, instead of claiming an application of an
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`abstract idea, the claim instead is drawn to the abstract idea itself. Ultramercial,
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`722 F.3d at 1343. Inventor, Dr. Jost considers his invention to be the process for
`
`predicting the selling price of a home (a point estimate) using statistical analysis to
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`develop the point estimate, and a co-inventor’s error model, which was also
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`developed using statistical analysis. Ex. 1022, 72-73, 81-82. Dr. Jost’s testimony
`
`is consistent with claims 1 and 10, which recite appraising real estate by
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`developing and storing a predictive model and generating a signal indicative of the
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`appraised (predicted) value, and developing and storing an error model and
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`generating a signal indicative of the error range for the appraised (predicted) value.
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` Patent Owner’s expert Dr. Lipscomb characterizes the invention as “a way
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`to determine the sales price of a property that may not have a recent sales
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`transaction” and that predictive models “have been around a long time.” Ex. 1024,
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`42-43. Determining a price has been found to be abstract as a method of
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`calculating. See, SAP America, Inc. v. Versata Dev. Group, Inc., CBM2012-
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`00001, 2013 WL 3167735, at *16 (PTAB, June 11 2013). Dr. Jost testified that it
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`was common in statistics to provide a confidence interval around estimates. Ex.
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`1022, 102. The testimony of Dr. Jost and Dr. Lipscomb indicates that determining
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`an error can be accomplished using the same well known techniques as those
`
`applied to the predictive model and that bounding a price estimate by an error
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`range is an abstract concept. Therefore, we find the claimed development of a
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`model to predict a value and an error model to assess the error range around the
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`predicted value, as recited in claims 1 and 10, is an abstract concept. Similarly,
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`claims 6 and 9 recite limitations that bound the geographic area from which data is
`
`obtained to develop the model. The limitations in claims 6 and 9 recite the abstract
`
`and well known concept of examining the geographic area around the subject
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`10
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`property so that relevant samples can be obtained to predict the price of the
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`property.
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` A claim is not patent-eligible where it merely recites a law of nature and
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`adds additional steps that merely reflect routine, conventional activity of those who
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`work in the field. Mayo, 132 S. Ct. at 1298. As discussed above, we find that
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`claims 1, 6, 9 and 10 recite abstract concepts and do not transform these ideas into
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`patent eligible applications of these abstractions. Therefore, we conclude that
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`claims 1, 6, 9 and 10 of the ’201 Patent recite non-patentable subject matter.
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`ANALYSIS OF PRIOR ART CHALLENGES
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`COMPUTER-ASSISTED MASS APPRAISAL SYSTEMS
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`One theme underlying Patent Owner’s arguments against the challenges to
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`the claims of the ’201 Patent is that the ’201 Patent concerns an automated
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`valuation model (AVM), whereas the prior art supporting the challenges concerns
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`computer-assisted mass appraisal (CAMA) systems. PO Resp. 1-2. Patent Owner
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`contends that the prior art stands in contrast to the claims of the ’201 Patent
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`because CAMA systems are used by tax assessors to assess all properties in a
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`jurisdiction, while the ’201 Patent describes generating a property-specific value to
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`provide meaningful information to an underwriter. Id. at 2.
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`Although Patent Owner argues that appraising all properties in a jurisdiction
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`is “the exact opposite of what the [’201 Patent] describes and claims,” id., Patent
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`Owner admits that “CAMA systems generate a specific property value that is then
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`used as part of the property tax assessment calculation.” Id. at 15-16. This
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`generation of a specific property value highlights the applicability of the CAMA
`
`references. Whether a valuation is desired for purposes of assessing taxes on many
`
`properties, making a purchase offer on a single property, or some other purpose,
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`the objective of the ’201 Patent claims and the CAMA prior art is the generation of
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`a specific property value. Thus, we do not agree with Patent Owner’s underlying
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`premise that the CAMA art is inapplicable to the claimed subject matter.
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`The Patent Owner Response also argues that there is no evidence that the
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`references, some of which have more than one date, were publicly accessible. PO
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`Resp. 13-14. However, Patent Owner did not move to exclude the references from
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`this proceeding, as provided for in 37 C.F.R. § 42.64(c) and the Scheduling Order.
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`Therefore, the Board does not exclude the CAMA evidence.
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`CLAIMS 1, 6, 9 AND 10 ARE ANTICIPATED BY OR OBVIOUS OVER
`JENSEN -1 (EXHIBIT 1014)
`
`The Board instituted a trial based on Petitioner’s challenge that Jensen-1
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`(Ex. 1014)2 anticipates claims 1, 6, 9, and 10 of the ’201 Patent. As construed,
`
`claims 1, 6, 9 and 10 recite developing and storing a predictive model, such as a
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`regression model, from training data, i.e., data which is available regarding real
`
`estate properties. Claims 1 and 10 also recite developing and storing an error
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`model, i.e., a model that estimates error in the predicted sales price of the subject
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`property generated by the predictive model, from the same training data used to
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`develop the predictive model. The claims recite no other limitations on the error
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`model. Claims 1 and 10 further recite generating a signal indicative of the error
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`range responsive to application of the individual property data to the error model.
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`The claims do not limit how the individual property data is applied to the error
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`model.
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`Patent Owner argues that Jensen-1 teaches using the training data to value
`
`all the properties and does not disclose obtaining individual property data and then
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`valuing the individual property, as recited in all the challenged claims. PO Resp.
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`2 Jensen-1 (Ex. 1014) indicates that it was published in The Property Tax Journal
`in September 1987.
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`54-55. Patent Owner’s argument is similar to its underlying theme that CAMA
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`prior art does not apply to the claimed AVM system. As discussed above, we do
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`not find this argument persuasive because the ultimate objective of each system is
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`to determine a value for each individual parcel. The same sentence in Jensen-1
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`that refers to a model estimating the sales price of all the properties also refers to
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`adjustments necessary to correct the actual sales prices of selected recent
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`comparable sales for the property characteristic differences between the subject
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`property being valued and each comparable sale, in order to ascertain what each
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`comparable property would have sold for had it been identical to the subject
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`property in a physical descriptive sense on the valuation date. Ex. 1014, p. 194.
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`(Emphasis added). Thus, as recited in claims 1, 6, 9 and 10, Jensen-1 obtains
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`individual property data and recognizes a relationship between individual property
`
`data and the training data.
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`Jensen-1 also discloses using the training data to predict the individual
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`property value, as recited in claims 1, 6, 9 and 10. Jensen-1 discusses a model in
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`which the value of a property is based on the land value qualified by a set of
`
`adjustments. Ex. 1014, p. 198. The adjustments reflect specific property
`
`characteristics. For example, up to a point, the value of a property can be expected
`
`to increase with increasing frontage. Id. Thus, specific properties with different
`
`frontage are valued differently.
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`Jensen-1 discloses other modeling approaches that determine various per
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`unit rates within a market model using regression analysis, Longini and Carbone’s
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`adaptive estimation, and Carlson’s iterative correlative estimation procedure. Id. at
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`200. Jensen-1’s discussion of interactive correlative estimation specifically states
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`that, within each iteration, “the model estimate and then the residual error (the
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`actual sale price minus the model estimate) are computed on a per parcel basis.”
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`Ex. 1014, p. 220. Thus, Jensen-1 discloses generating an appraised value
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`responsive to the application of individual property data to the predictive error
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`model. Jensen-1 specifically states that “[o]nce meaningful market models have
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`been developed from the available sales, they can be used to estimate the fair
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`market values of all of the parcels in the jurisdiction whether recently sold or not.”
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`Ex. 2014, p. 224. As discussed above, the reference to all parcels in the
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`jurisdiction does not imply that all the parcels are evaluated the same. Jensen
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`discloses that the market models take into account the various characteristics of
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`each parcel and determine a value for each parcel.
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`Jensen-1 notes that the model estimate, i.e., the fair market value of each
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`parcel as determined by the market models, is an abstract number and its reliability
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`as an approximation of true market value depends on the quality of the individual
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`estimates. Ex. 1014, p. 224. Jensen-1 specifically notes that when an actual sale
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`price falls below the value estimate, it may or may not indicate a problem with the
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`appraisal. Id. Thus, Jensen-1 applies to individual appraisals and attempts to assess
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`an error in the appraisal of each parcel.
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`Patent Owner argues that Jensen-1 does not disclose or suggest an error
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`model, as recited in claims 1 and 10. PO Resp. 51-54. Consistent with its position
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`that CAMA systems seek to achieve a specific point estimate and do not employ
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`error models, Patent Owner argues that error statistics disclosed in Jensen-1 are
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`different from error models. Id. at 52. Patent Owner contends that error statistics
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`are applicable to all properties in the training data, whereas an error model
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`generates a signal unique to the individual property being valued. Id. at 16.
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`Patent Owner further argues that reliability factors, mean square error and
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`asymptotic confidence bands in Jensen-1 describe observations used in the training
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`data and do not relate to any individual property. Id. at 53. However, claims 1 and
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`10 both recite that the error model is developed from the training data, rather than
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`the individual property data. Thus, the use of training data to develop the error
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`models and confidence bands in Jensen is consistent with the error model
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`limitations of claims 1 and 10.
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`During the oral hearing, Patent Owner characterized Petitioner’s arguments
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`as assuming that, if there’s an error range, an error model exists. Tr. 40. Patent
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`Owner argued that the claimed error range is generated separately from the
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`development of both the predictive and error models. Tr. 39. We note, however,
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`that claims 1 and 10 only recite generating a signal indicative of the error range in
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`response to the application of the individual property data to the stored model.
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`(emphasis added). The limitation does not recite generating the error range itself
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`in response to application of the individual property data. Although a particular
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`application of the individual property data to the error model may create a separate
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`signal for a particular property, the claims do not require that the error or the error
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`range for each property be different. There is no limitation requiring a “signal
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`unique to the individual property,” as argued by Patent Owner. PO Resp. 52.
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`Thus, claims 1 and 10 do not preclude confidence bands disclosed in Jensen-1
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`from the claimed error model, as Patent Owner contends. PO Resp. 52-53.
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`In consideration of the above, we conclude that claim 1 of the ’201 Patent is
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`anticipated by or obvious over Jensen-1.
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`Claim 6 depends from disclaimed claim 5, which does not include an error
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`model. Claim 6 recites aggregating the training data into training data sets based
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`on successively larger geographic areas until the number of sales within a
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`geographic area over a predetermined time exceeds a predetermined number.
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`Claim 6 does not specifically recite how the aggregated training data sets are
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`integrated into the predictive model. Patent Owner argues that in contrast to
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`aggregation, i.e., assembling data based on larger geographic area, CAMA models
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`(and Jensen-1 in particular) disclose “disaggregation,” i.e., moving from a larger
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`geographic area to a smaller one. PO Resp. 24-25, 57. According to Patent
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`Owner, Jensen-1 describes disaggregation because it discloses a “global” model
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`estimated from a common database that is tailored down to small towns and rural
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`areas. PO Resp. 57.
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`Jensen-1 recommends that for small sample environments, e.g., small towns,
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`rural residential areas, farms, and certain types of commercial and non-residential
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`properties, that individual models be generated from countywide or statewide
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`models tailored to each town or village via a model update technique, such as
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`weighted Bayesian regression. Ex. 1014, p. 236. Using this approach, all of the
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`essential property descriptors will be included in the model with an adequate
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`number of sales to support them. Id. Thus, instead of disaggregating a “global”
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`model as Patent Owner suggests, PO Resp. 24-25, 57, Jensen-1 discloses
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`aggregating information from larger geographic models, such as a statewide model
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`or a countywide model, to create a model that can be used to predict the value of
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`one or more properties in a geographic environment where the number of samples
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`is insufficient for accurate modeling. Tailoring the models to each town or village
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`using a statewide or countywide model to obtain a sufficient number of samples,
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`inherently discloses using successively larger geographic areas until a
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`predetermined number of sales in a predetermined time exceeds a predetermined
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`number, as recited in claim 6. Even if Jensen-1 is not considered to disclose
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`explicitly or inherently using successively larger geographic areas, its disclosure of
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`using statewide or countywide data to model areas lacking an adequate number of
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`samples suggests aggregating training data into sets based on larger geographic
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`areas until one obtains a meaningful or predetermined number of sales over a time
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`frame. Thus we conclude that the features of claim 6 would have been obvious
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`under 35 U.S.C. § 103 over Jensen-1. Therefore, we conclude that claim 6 is
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`anticipated by or at least