`of U.S. Patent No. 8,577,813
`
`
`DOCKET NO.: 1033300-00306US1
`Filed on behalf of Apple Inc.
`By: Monica Grewal, Reg. No. 40,056 (Lead Counsel)
`Ben Fernandez Reg. No. 55,172 (Backup Counsel)
`Wilmer Cutler Pickering Hale and Dorr LLP
`60 State Street
`Boston, MA 02109
`Email: monica.grewal@wilmerhale.com
`
` ben.fernandez@wilmerhale.com
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`APPLE INC.,
`Petitioner,
`v.
`UNIVERSAL SECURE REGISTRY, LLC,
`Patent Owner.
`_________________________________________
`Case CBM2018-00024
`
`U.S. Patent No. 8,577,813
`_________________________________________
`
`PETITION FOR COVERED BUSINESS METHOD REVIEW
`OF CLAIMS 1-2, 4-11, 13-20, AND 22-26
`
`
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`Petition for Covered Business Method Review
`of U.S. Patent No. 8,577,813
`TABLE OF CONTENTS
`
`Page
`
`TABLE OF CONTENTS ................................................................................ i
`I.
`MANDATORY NOTICES (37 C.F.R. § 42.8(A)(1)) ..................... 2
`Real Party-In-Interest ................................................................. 2
`Related Matters .......................................................................... 2
`Counsel ...................................................................................... 4
`Service Information ................................................................... 4
`BACKGROUND OF THE ’813 PATENT ...................................... 4
`Priority ....................................................................................... 4
`Brief Description of the ’813 Patent Disclosure ........................ 5
`Prosecution History ................................................................... 8
`LEVEL OF ORDINARY SKILL .................................................... 8
`GROUNDS FOR STANDING (37 C.F.R. § 42.304(A)) ................ 9
`Petitioner Has Standing And Is Not Estopped (37 C.F.R. §
`42.302) ....................................................................................... 9
`The ’813 Patent Qualifies As A CBM Patent (37 C.F.R. §
`42.301) ....................................................................................... 9
`1. At least one claim of the ’813 patent is a method or
`corresponding system used in the practice, administration,
`or management of a financial product or service .............. 10
`2. The ’813 patent is not directed to a “technological
`invention” .......................................................................... 12
`STATEMENT OF PRECISE RELIEF REQUESTED FOR EACH
`CHALLENGED CLAIM (37 C.F.R. § 42.304(b)) ........................ 18
`
`II.
`
`III.
`IV.
`
`V.
`
`A.
`B.
`C.
`D.
`
`A.
`B.
`C.
`
`A.
`
`B.
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`
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`VI.
`
`VII.
`
`A.
`
`B.
`C.
`
`A.
`B.
`C.
`D.
`E.
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`A.
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`B.
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`Petition for Covered Business Method Review
`of U.S. Patent No. 8,577,813
`Claims For Which Review Is Requested (37 C.F.R. §
`42.304(b)(1)) ............................................................................ 18
`Statutory Grounds Of Challenge (37 C.F.R. § 42.304(b)(2)) 18
`Standard For Granting A Petition For CBM Review .............. 19
`PROPOSED CLAIM CONSTRUCTIONS FOR CBM REVIEW
`(37 C.F.R. § 42.304(b)(3)) ............................................................. 19
`Biometric Input ........................................................................ 20
`Secret Information ................................................................... 21
`Authentication Information ..................................................... 22
`Point-of-Sale Device ................................................................ 23
`Secure Registry ........................................................................ 24
`CLAIMS 1-2, 4-11, 13-20, AND 22-26 OF THE ’813 PATENT
`ARE UNPATENTABLE UNDER 35 U.S.C. § 103 (37 C.F.R. §
`42.304(b)(4)) .................................................................................. 25
`Prior Art Patents and Printed Publications .............................. 25
`1. Ex-1213 – Maes ................................................................ 25
`2. Ex-1214 - Jakobsson ......................................................... 26
`3. Ex-1215 - Maritzen ........................................................... 26
`4. Ex-1216 - Labrou .............................................................. 27
`Ground 1: Claims 1-2, 4-5, 11, 13, 16-20, and 24 Are Obvious
`in View of Maes and Jakobsson .............................................. 27
`1.
`Independent Claim 1 ......................................................... 28
`2. Dependent Claim 2 ............................................................ 52
`3. Dependent Claim 4 ............................................................ 54
`4. Dependent Claim 5 ............................................................ 56
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`Petition for Covered Business Method Review
`of U.S. Patent No. 8,577,813
`5. Dependent Claim 11 .......................................................... 57
`6. Dependent Claim 13 .......................................................... 58
`7.
`Independent Claim 16 ....................................................... 59
`8. Dependent Claim 17 .......................................................... 62
`9. Dependent Claim 18 .......................................................... 62
`10. Dependent Claim 19 .......................................................... 63
`11. Dependent Claim 20 .......................................................... 65
`12. Independent Claim 24 ....................................................... 66
`Ground 2: Claims 6-10 Are Obvious in View of Maes,
`Jakobsson, and Maritzen .......................................................... 69
`1. Dependent Claim 6 ............................................................ 69
`2. Reasons to Combine Maes, Jakobsson, and Maritzen ...... 71
`3. Dependent Claim 7 ............................................................ 75
`4. Dependent Claim 8 ............................................................ 77
`5. Dependent Claim 9 ............................................................ 78
`6. Dependent Claim 10 .......................................................... 79
`Ground 3: Claims 14, 15, 22, 23, 25, and 26 Are Obvious in
`View of Maes, Jakobsson, and Labrou .................................... 83
`1. Dependent Claims 14, 15, 22, 23, 25, and 26 ................... 84
`2. Reasons to Combine Maes, Jakobsson, and Labrou ......... 86
`CONCLUSION .............................................................................. 91
`VIII.
`TABLE OF EXHIBITS ................................................................................. 92
`
`
`D.
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`TABLE OF AUTHORITIES
`
`Page(s)
`
`
`CASES
`Apple Inc. v. Ameranth, Inc.,
`842 F.3d 1229 (Fed. Cir. 2016) ..................................................................... 18
`Blue Calypso, LLC v. Groupon, Inc.,
`815 F.3d 1331 (Fed. Cir. 2016) ..................................................................... 19
`Dealersocket, Inc. v. Autoalert, LLC,
`CBM2014-00132, Paper No. 11 (P.T.A.B. Oct. 29, 2014) ........................... 13
`Essociate, Inc. v. 4355768 Canada Inc.,
`No. 14-CV-0679-JVS, 2015 WL 4470139 (C.D. Cal. Feb. 11,
`2015) ........................................................................................................ 18-19
`Interthinx, Inc. v. Corelogic Solutions, LLC,
`CBM2012-00007, Paper No. 15 (P.T.A.B. Jan. 31, 2013)............................ 18
`Liberty Mut.,
`CBM2012-00004, Paper No. 10 (P.T.A.B. Jan. 25, 2013)............................ 18
`Liberty Mut. Ins. Co. v. Progressive Cas. Ins. Co.,
`CBM2012-00003, Paper No. 15 (P.T.A.B. Feb. 12, 2013) ..................... 14, 17
`Liberty Mut. Ins. Co. v. Progressive Cas. Ins. Co.,
`CBM2012-00004, Paper No. 60 (P.T.A.B. Jan. 23, 2014)............................ 12
`Salesforce.com, Inc. v. Virtual Agility, Inc.,
`CBM2013-00024, Paper No. 16 (P.T.A.B. Nov. 19, 2013) .......................... 12
`SAS Institute Inc. v. Iancu, __ U.S. ___, No. 16-969 (Apr. 24, 2018) .................... 19
`Versata Development Group, Inc. v. SAP America, Inc.,
`793 F.3d 1306 (Fed. Cir. 2015) ...................................... 11, 12, 14, 15, 19, 21
`STATUTES
`35 U.S.C. § 101 ...................................................................................................... 3, 4
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`35 U.S.C. § 102 .................................................................................... 3, 8, 26, 27, 28
`35 U.S.C. § 103 ................................................................................3, 4, 8, 20, 26, 95
`35 U.S.C. § 321 .................................................................................................... 1, 20
`35 U.S.C. § 324 .................................................................................................. 20, 95
`Leahy-Smith America Invents Act
`Pub. L. No. 112-29, 125 Stat. 284 (2011) ..................................... 1, 10, 11, 20
`REGULATIONS
`37 C.F.R. § 42.8 ..................................................................................................... 2, 4
`37 C.F.R. § 42.300 ............................................................................................... 1, 21
`37 C.F.R. § 42.301 ....................................................................................... 11, 12, 14
`37 C.F.R. § 42.302 ............................................................................................. 10, 11
`37 C.F.R. § 42.303 ................................................................................................... 11
`37 C.F.R. § 42.304 ................................................................................. 10, 20, 21, 26
`77 Fed. Reg. 48,735 (Aug. 14, 2012) ...................................................................... 11
`77 Fed. Reg. 48,764 (Aug. 14, 2012) ...................................................................... 21
`OTHER AUTHORITIES
`157 Cong. Rec. S1360 (daily ed. Mar. 8, 2011) (Statement of Sen.
`Schumer) ........................................................................................................ 14
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`Pursuant to 35 U.S.C. § 321, Section 18 of the Leahy-Smith America
`
`Invents Act (“AIA”), and 37 C.F.R. § 42.300 et seq., the undersigned hereby
`
`requests covered business method (“CBM”) review of claims 1-2, 4-11, 13-20, and
`
`22-26 (“challenged claims”) of U.S. Patent No. 8,577,813 (“’813 patent”).
`
`The ’813 patent is generally directed to system and methods for verifying an
`
`account holder’s identity before allowing access to his or her account to enable a
`
`transaction using a Point-of-Sale (“POS”) device. Indeed, the patent holder,
`
`Universal Secure Registry LLC, has described its patent in similar terms,
`
`purporting that the claimed system “can both securely identify the user, and
`
`separately authenticate and approve the user’s financial transaction requests made
`
`through a POS device.” Ex-1217, Plaintiff’s Answering Brief in Opposition to
`
`Defendants’ Motion to Dismiss (“Opp.”), 3-4 (“To prevent unauthorized use of the
`
`Electronic ID Device, a user must first authenticate herself to the device to activate
`
`it for a financial transaction. The ’813 patent describes multiple ways to do this,
`
`including using a biometric input (e.g., fingerprint) and/or secret information (e.g.,
`
`a PIN).”).
`
`When the ’813 patent was filed, however, systems and methods that could
`
`both securely identify the user, and separately authenticate and approve the user’s
`
`financial transaction requests made through a POS device were well-known in the
`
`art. In fact, the prior art is replete with disclosures of systems that perform user
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`authentication and approve financial transactions in this manner. For example,
`
`Maes discloses a user device (PDA device 10) that can authenticate a user based on
`
`a PIN or biometric input and communicates with a POS device to authenticate and
`
`approve the user’s financial transaction. Ex-1213, Maes, Abstract (“The PDA
`
`includes a modem, a serial port … so as to provide direct communication
`
`capability with peripheral devices (such as POS and ATM terminals)…the local
`
`mode of operation is performed by providing the PDA with biometric data and
`
`selecting one of the pre-enrolled credit cards that are stored in the PDA. Upon
`
`biometric verification, the Universal Card is written with the selected card
`
`information, which is then used to initiate a consumer transaction.”).
`
`As further explained in this Petition, the device and methods claimed in the
`
`’813 patent were known in the art or obvious at the time the ’813 patent was filed.
`
`I. MANDATORY NOTICES (37 C.F.R. § 42.8(A)(1))
`A. Real Party-In-Interest
`Pursuant to 37 C.F.R. § 42.8(b)(1), Petitioner certifies that Apple Inc.
`
`(“Apple” or “Petitioner”) is the real party-in-interest.
`
`B. Related Matters
`The ’813 patent is owned by Universal Secure Registry, LLC (“USR” or
`
`“Patent Owner”). On May 21, 2017, USR sued Apple and Visa in the District of
`
`Delaware, asserting four patents, including the ’813 patent, against Apple’s Apple
`
`Pay functionality. See Ex-1203, Universal Secure Registry LLC v. Apple Inc. et
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`of U.S. Patent No. 8,577,813
`al., No. 17-585-VAC-MPT (D. Del.), ECF No. 1, Compl. ¶2. The complaint was
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`served on Petitioner on July 5, 2017.
`
`On August 25, 2017, Apple filed a Motion to Dismiss for Failure to State a
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`Claim, asserting that the claims of the ’813 patent are unpatentable under 35
`
`U.S.C. § 101 because they are directed to the abstract idea of verifying an account
`
`holder’s identity based on codes and/or information related to the account holder
`
`before enabling a transaction. That motion remains pending.
`
`In addition to the Motion to Dismiss, Apple is filing the following petitions
`
`for CBM/IPR:
`
`Asserted Patent
`
`CBM/IPR
`
`Statutory Grounds
`
`U.S. 9,530,137
`
`
`
`U.S. 9,100,826
`
`
`
`U.S. 8,856,539
`
`
`
`U.S. 8,577,813
`
`CBM
`
`IPR
`
`IPR
`
`IPR
`
`IPR
`
`CBM
`
`IPR
`
`IPR
`
`CBM
`
`35 U.S.C. § 101
`
`35 U.S.C. § 103
`
`35 U.S.C. § 103
`
`35 U.S.C. § 103
`
`35 U.S.C. §§ 102, 103
`
`35 U.S.C. § 101
`
`35 U.S.C. §§ 102, 103
`
`35 U.S.C. § 103
`
`35 U.S.C. § 101
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`CBM
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`CBM
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`Petition for Covered Business Method Review
`of U.S. Patent No. 8,577,813
`35 U.S.C. § 103
`
`35 U.S.C. § 103
`
`C. Counsel
`Pursuant to 37 C.F.R. § 42.8(b)(3)-(4), Petitioner identifies the following
`
`lead and backup counsel, to whom all correspondence should be directed.
`
`Lead Counsel: Monica Grewal (Reg. No. 40,056)
`
`Backup Counsel: Ben Fernandez (Reg. No. 55,172)
`
`D.
`Service Information
`Email: monica.grewal@wilmerhale.com; ben.fernandez@wilmerhale.com
`
`Post and hand delivery address: Wilmer Cutler Pickering Hale and Dorr LLP, 60
`
`State Street, Boston, MA 02109.
`
`Telephone: (617) 526-6223; Facsimile: (617) 526-5000.
`
`Petitioner consents to electronic service.
`
`II. BACKGROUND OF THE ’813 PATENT
`A.
`Priority
`Entitled “Universal Secure Registry,” the ’813 patent issued on November 5,
`
`2013 from an application filed on September 20, 2011. The ’813 patent is a
`
`continuation and a continuation-in-part of numerous U.S. applications, the earliest
`
`of which, App. No. 11/677,490 (now U.S. Patent No. 8,001,055 (Ex-1204)), was
`
`filed on February 21, 2007. The patent also claims priority to four provisional
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`applications: Application Nos. 60/775,046 (Ex-1220), 60/812,279 (Ex-1221),
`
`60/859,235 (Ex-1222) and 61/031,529, (Ex-1123), the earliest of which was filed
`
`on February 21, 2006. The latest provisional was filed on February 26, 2008, and
`
`is the first application to disclose Fig. 31.
`
`B.
`Brief Description of the ’813 Patent Disclosure
`The ’813 patent describes a secure database called a “Universal Secure
`
`Registry” (“secure registry”), which is “a universal identification system . . . used
`
`to selectively provide information about a person to authorized users.” Ex-1201,
`
`’813 patent, 3:66-4:1. The patent states that the secure registry database is
`
`designed to “take the place of multiple conventional forms of identification” when
`
`conducting financial transactions to minimize the incidence of fraud. E.g., id.,
`
`4:12-15. The patent states that various forms of information can be stored in the
`
`database to verify a user’s identity and prevent fraud: (1) algorithmically generated
`
`codes, such as a time-varying multicharacter code or an “uncounterfeitable token,”
`
`(2) “secret information” like a PIN or password, and/or (3) a user’s “biometric
`
`information,” such as fingerprints, voice prints, an iris or facial scan, DNA
`
`analysis, or a photograph. See id., 42:29-36, 12:19-31, Fig. 3. The patent does not,
`
`however, describe any new technology for generating, capturing, or combining
`
`such information. Ex-1202, Shoup-Decl. ¶24.
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`Instead, the patent repeatedly emphasizes the generic nature of the secure
`
`registry database and its manner of implementation. The patent states that the
`
`secure registry database can be implemented in “a general-purpose computer
`
`system” using “a commercially available microprocessor” running “any …
`
`commercially available operating system.” Ex-1201, ’813 patent, 10:9-15. The
`
`alleged invention is also “not limited to a particular computer platform, particular
`
`processor, or particular high-level programming language.” Id., 10:58-60. The
`
`secure registry database itself “may be any kind of database” and communication
`
`with the database may take place over “any [network] protocol.” Id., 10:24-26,
`
`11:24-28, Fig. 1. This generic database is encrypted using known methods, and
`
`may be accessed by providing information sufficient to verify the user’s identity.
`
`Id., 4:1-11; Ex-1202, Shoup-Decl. ¶25.
`
`In its complaint against Apple, USR identified ’813 patent claim 1 as
`
`“exemplary.” Claim 1, elements of which are included in, for example, Fig. 31
`
`(shown below), claims “[a]n electronic ID device configured to allow a user to
`
`select any one of a plurality of accounts associated with the user to employ in a
`
`financial transaction.” Ex-1201, ’813 patent, 51:65-67. The claimed electronic ID
`
`device contains several generic components: (1) a biometric sensor that receives a
`
`biometric input from the user (367); (2) a user interface whereby a user can input
`
`secret information (such as a PIN code) and select the account he or she wants to
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`Petition for Covered Business Method Review
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`access (364); (3) a communication interface that can communicate with the secure
`
`registry (366) and with a point of sale device (354) capable of communicating with
`
`the secure registry; and (4) a processor (not shown) that can grant access to the
`
`electronic ID device via authentication by biometric and/or secret information and
`
`generate encrypted authentication information from some combination of a
`
`nonpredictable value and the biometric and/or secret information to send to the
`
`secure registry. Id., 12:19-54; Ex-1202, Shoup-Decl. ¶26.
`
`Ex-1201, ’813 patent, Fig. 31.
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`of U.S. Patent No. 8,577,813
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`C.
`Prosecution History
`The ‘813 patent was filed as U.S. Application No. 13/237,184 (“‘813
`
`application”) on September 20, 2011.
`
` After several rejections over prior art, the examiner issued a Notice of
`
`Allowance on March 19, 2013. See Ex-1212, Notice of Allowance. The ’813
`
`patent subsequently issued on November 5, 2013. See Ex-1202, Shoup-Decl. ¶¶27-
`
`36.
`
`III. LEVEL OF ORDINARY SKILL
`A person of ordinary skill in the relevant field or art (“POSITA”) is a
`
`hypothetical person to whom an expert in the relevant field could assign a routine
`
`task with reasonable confidence that the task would be successfully carried out.
`
`The level of skill in the art is evidenced by prior art references. The prior art
`
`demonstrates that a POSITA, at the time the ’813 patent was effectively filed,
`
`would have a Bachelor’s Degree in electrical engineering, computer science, or a
`
`related scientific field, and approximately two years of work experience in the
`
`computer science field, including, for example, operating systems, database
`
`management, encryption, security algorithms, and secure transaction systems,
`
`though additional education can substitute for less work experience and vice versa.
`
`See Ex-1202, Shoup-Decl. ¶¶37-38.
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`IV. GROUNDS FOR STANDING (37 C.F.R. § 42.304(A))
`A.
`Petitioner Has Standing And Is Not Estopped
`(37 C.F.R. § 42.302)
`A party has standing to bring a CBM review proceeding against a patent if
`
`the party has been sued for infringement of the patent. AIA § 18(a)(1)(B); 37
`
`C.F.R. § 42.302(a). Apple satisfies the standing requirement because USR sued
`
`Apple for infringement of the ’813 patent on May 21, 2017. See Ex-1203,
`
`Universal Secure Registry, LLC v. Apple Inc. et al., No. 17-585-VAC-MPT (D.
`
`Del.), ECF No. 1, Complaint.
`
`Further, Apple is not estopped from challenging the claims on the grounds
`
`identified in this petition and has not been party to any other post-grant review of
`
`the challenged claims. See 37 C.F.R. § 42.302(b). Additionally, Apple certifies
`
`that it complies with the timing requirements set forth in 37 C.F.R. § 42.303.
`
`B.
`
`The ’813 Patent Qualifies As A CBM Patent
`(37 C.F.R. § 42.301)
`Section 18(d)(1) of the AIA “on its face covers a wide range of finance-
`
`related activities,” Versata Development Group, Inc. v. SAP America, Inc., 793
`
`F.3d 1306, 1325 (Fed. Cir. 2015), including “activities that are financial in nature,
`
`incidental to a financial activity or complementary to a financial activity,”
`
`Transitional Program for Covered Business Method Patents—Definitions of
`
`Covered Business Method Patent and Technological Invention, 77 Fed. Reg.
`
`48,734, 48,735 (Aug. 14, 2012). Under Section 18 of the AIA, the Board may
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`institute a CBM review proceeding for any patent that qualifies as a CBM patent.
`
`See AIA § 18(a)(1)(E). Section 18 of the AIA defines a “covered business
`
`method” as a claim that both (1) claims a method or corresponding apparatus for
`
`performing data processing or other operations used in the practice, administration,
`
`or management of a financial product or service, and (2) is not directed to a
`
`technological invention. See id. § 18(d)(1); see also 37 C.F.R. § 42.301(a). The
`
`’813 patent satisfies both requirements for at least the reasons set forth below.
`
`1.
`
`At least one claim of the ’813 patent is a method or
`corresponding system used in the practice, administration,
`or management of a financial product or service
`A patent qualifies for CBM review as long as “the subject matter of at least
`
`one claim is directed to a covered business method.” Liberty Mut. Ins. Co. v.
`
`Progressive Cas. Ins. Co., CBM2012-00004, Paper No. 60, 6 (P.T.A.B. Jan. 23,
`
`2014). As the Federal Circuit explained in Versata, “the definition of ‘covered
`
`business method patent’ is not limited to products and services of only the financial
`
`industry, or to patents owned by or directly affecting the activities of financial
`
`institutions such as banks and brokerage houses. The plain text of the statutory
`
`definition contained in § 18(d)(1) . . . on its face covers a wide range of finance-
`
`related activities.” Versata, 793 F.3d, 1325. As such, the correct inquiry “is not
`
`whether the claimed invention only has application in business contexts, but
`
`whether the claimed invention is a method or apparatus for performing data
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`processing or other operations used in the practice, administration, or management
`
`of a financial product or service.” Salesforce.com, Inc. v. Virtual Agility, Inc.,
`
`CBM2013-00024, Paper No. 16, 14-15 (P.T.A.B. Nov. 19, 2013) (emphasis
`
`added). The claims should be read in light of the specification when making this
`
`determination. See Dealersocket, Inc. v. Autoalert, LLC, CBM2014-00132, Paper
`
`No. 11, 11-12 (P.T.A.B. Oct. 29, 2014).
`
`All claims of the ’813 patent meet these requirements. For example,
`
`independent claims 1 and 24 (and those that depend from them) disclose a device
`
`and method for providing or denying access to information related to a user stored
`
`in a secure database in the context of a “financial transaction.” Ex-1201, ’813
`
`patent at claims 1 and 24. The specification defines a financial transaction as
`
`including “transactions conducted on-line or at a point of sale using credit or debit
`
`accounts, banking transactions, purchases or sales of investments and financial
`
`instruments or generally the transfer of funds from a first account to a second
`
`account.” Id., 43:6-12. Similarly, dependent claims 7, 13-14, 17, 20, 22-23, and
`
`25-26 all explicitly recite financial transactions, user account numbers, purchases,
`
`and/or selection of products or services. See id., claims 7, 13-14, 17, 20, 22-23,
`
`and 25-26. And all independent claims recite a “point of sale” device. See id.,
`
`claims 1-2, 4-11, 13-20, 22-26. Ex-1202, Shoup-Decl. ¶42.
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`
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`Petition for Covered Business Method Review
`of U.S. Patent No. 8,577,813
`Moreover, the patent specification makes clear that the “accounts” recited in
`
`all patent claims can be financial in nature. See, e.g., id., 6:66-7:1 (“In still another
`
`aspect, a user device is configured to allow a user to select any one of a plurality of
`
`accounts associated with the user to employ in a financial transaction.”); 7:47-50
`
`(“authorizing the POS device to initiate a financial transaction involving a transfer
`
`of funds to or from the account selected by the user when the encrypted
`
`authentication information is successfully authenticated”). Ex-1202, Shoup-Decl.
`
`¶43.
`
`2.
`
`The ’813 patent is not directed to a “technological
`invention”
`A patent that otherwise qualifies as a CBM patent is nevertheless excluded
`
`from CBM review if it is directed to a “technological invention”—i.e., if “the
`
`claimed subject matter as a whole” (1) “recites a technological feature that is novel
`
`and unobvious over the prior art” and (2) “solves a technical problem using a
`
`technical solution.” 37 C.F.R. § 42.301(b); Versata, 793 F.3d, 1326. Only “those
`
`patents whose novelty turns on a technological innovation over the prior art and are
`
`concerned with a technical problem which is solved with a technical solution and
`
`which requires the claims to state the technical features which the inventor desires
`
`to protect” should be excluded from CBM review. 157 Cong. Rec. S1360, S1364
`
`(daily ed. Mar. 8, 2011) (Statement of Sen. Schumer). The claims of the ’813
`
`patent do not meet either prong of the technological invention exclusion. Ex-1202,
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`
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`Petition for Covered Business Method Review
`of U.S. Patent No. 8,577,813
`
`Shoup-Decl. ¶44.
`
`i. The ’813 patent claims include only conventional
`technology components that were well known in the
`art.
`The first prong of the test analyzes whether the differences between the
`
`claimed invention and the prior art are technological features. See Liberty Mut.
`
`Ins. Co. v. Progressive Cas. Ins. Co., CBM2012-00003, Paper No. 15, 12-13
`
`(P.T.A.B. Feb. 12, 2013). The Federal Circuit has affirmed the USPTO’s listed
`
`characteristics that, if found, would preclude a finding of a “technological
`
`invention”: (1) mere “recitation of known technologies”; (2) “reciting the use of
`
`known prior art technology”; and (3) “combining prior art structures to achieve the
`
`normal, expected, or predictable result of that combination.” Versata, 793 F.3d,
`
`1326.
`
`The only arguably technological elements of the challenged claims are as
`
`follows:
`
`1
`
`’813 Patent Claim Well-Known Technological Features
`Electronic ID device, biometric sensor,
`user interface, communication
`interface, processor, POS terminal,
`secure registry.
`
`No additional technological features
`Memory
`No additional technological features
`
`2, 4
`5
`6-11, 13-15
`
`- 13 -
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`
`
`16
`
`17
`18-20, 22-23
`24
`
`25
`26
`
`Petition for Covered Business Method Review
`of U.S. Patent No. 8,577,813
`User interface, communication
`interface, interface with POS terminal,
`processor (implied), secure registry
`Memory
`No additional technological features
`Electronic ID device, POS terminal,
`processor (implied), secure registry
`User interface
`No additional technological features
`
`
`Ex-1202, Shoup-Decl. ¶45.
`
`Under these guidelines, the ’813 patent fails to disclose a “technological
`
`feature” because the claimed features—an electronic ID device (comprising a user
`
`interface, communication interface, and processor), database implementing an
`
`identity verification system and a POS device/terminal—were well known as of the
`
`patent’s February 26, 2008 priority date (as the patent admits) and are implemented
`
`in a conventional manner (as the patent admits). Ex-1201 ’813 patent, 43:54-44:7.
`
`That is, the processor performs standard data operations such as comparing data,
`
`performing calculations, and executing commands, the user interface accepts user
`
`input, the communication interface communicates, and the secure registry database
`
`stores and controls access to conventional information such as a user’s financial or
`
`medical records. See, e.g., Ex-1201, ’813 patent, claim 16 (limitations reciting
`
`standard computer and networking functions “authenticating,” “activating,”
`
`“generating,” “receiving,” and “communicating”). Ex-1202, Shoup-Decl. ¶46
`
`- 14 -
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`
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`Petition for Covered Business Method Review
`of U.S. Patent No. 8,577,813
`The named inventor did not claim to have invented a new computer,
`
`processor, database, or Internet system. Instead, he leveraged known technology to
`
`claim methods for verifying an account holder’s identity based on codes and/or
`
`information related to the account holder before enabling a transaction. Indeed, the
`
`’813 patent concedes that the claimed invention is not tied to any particular
`
`technology, and can be implemented in “a general-purpose computer system”
`
`using “a commercially available microprocessor” running “any other commercially
`
`available operating system” and that the secure registry database itself “may be any
`
`kind of database,” which can communicate using “any [network] protocol.” Ex-
`
`1201, ’813 patent, 10:1-11:28. Ex-1202, Shoup-Decl. ¶47.
`
`The ’813 prosecution history provides further evidence that the ’813 claims
`
`are not technically distinguishable from the prior art. For example, the
`
`amendments made to overcome prior art during prosecution were all non-technical
`
`in nature, and the claims were ultimately allowed based on a non-technical
`
`distinction over the prior art. See Ex-1208, Response After Non-Final Rejection,
`
`3-8 (amending claim to add conventional access restriction (i.e., biometric or secret
`
`information authorization) to use of processor); Ex-1211, Response After Final
`
`Action, 2-7 (rolling limitation of claim 2 requiring communication with generic
`
`POS device into claim 1). Ex-1202, Shoup-Decl. ¶48.
`
`- 15 -
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`
`
`Petition for Covered Business Method Review
`of U.S. Patent No. 8,577,813
`ii. The ’813 patent does not solve a technical problem with
`a technical solution.
`The ’813 patent also fails the second prong of the technological invention
`
`test because it does not solve a technical problem with a technical solution. This
`
`prong requires a review of the patent’s specification to determine what problem the
`
`claimed invention purportedly solves. See Liberty Mut. Ins. Co. v. Progressive
`
`Cas. Ins. Co., CBM2012-00003, Paper No. 15, 14-15 (P.T.A.B. Feb. 12, 2013). If
`
`the problem is non-technical, the patent does not meet the technological inventio