`571-272-7822
`
`
`
`
` Filed: March 17, 2016
`
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`_____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`ASKELADDEN LLC,
`Petitioner,
`
`v.
`
`SEAN I. McGHIE and BRIAN K. BUCHHEIT,
`Patent Owner.
`____________
`
`Case IPR2015-00123
`Patent 8,523,063 B1
`____________
`
`
`Before SALLY C. MEDLEY, JONI Y. CHANG, and
`GEORGIANNA W. BRADEN, Administrative Patent Judges.
`
`MEDLEY, Administrative Patent Judge.
`
`
`
`FINAL WRITTEN DECISION
`Inter Partes Review
`35 U.S.C. § 318(a) and 37 C.F.R. § 42.73
`
`
`I. INTRODUCTION
`
`We have jurisdiction to hear this inter partes review under 35 U.S.C.
`
`§ 6(c). This Final Written Decision is issued pursuant to 35 U.S.C. § 318(a)
`
`and 37 C.F.R. § 42.73. For the reasons discussed herein, Petitioner has
`
`shown by a preponderance of the evidence that claims 1–20 of U.S. Patent
`
`No. 8,523,063 B1 are unpatentable.
`
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`
`A. Procedural History
`
`
`
`Petitioner, Askeladden LLC, filed a Petition requesting an inter partes
`
`review of claims 1–20 of U.S. Patent No. 8,523,063 B1 (Ex. 1001, “the ’063
`
`patent”). Paper 1 (“Pet.”). Patent Owner, Sean I. McGhie and Brian K.
`
`Buchheit,1 filed a Preliminary Response. Paper 15 (“Prelim. Resp.”). Upon
`
`consideration of the Petition and Preliminary Response, on April 23, 2015,
`
`we instituted an inter partes review of claims 1–20 pursuant to 35 U.S.C.
`
`§ 314. Paper 36 (“Dec.”).
`
`In the Scheduling Order, which sets times for taking action in this
`
`proceeding, we notified the parties that “any arguments for patentability not
`
`raised in the [Patent Owner] response will be deemed waived.”2 Patent
`
`Owner, however, did not file a Patent Owner Response. To ensure clarity in
`
`our record, we required Patent Owner to file a paper, indicating whether it
`
`
`1 Patent Owner is represented by inventor Brian Buchheit, who is an attorney
`and registered to practice before the Office. At times during the proceeding,
`Mr. Buchheit indicated that he was representing “Patent Owner” (Mr.
`Buchheit and Mr. McGhie), while at other times Mr. Buchheit indicated that
`he was not representing Mr. McGhie, but rather acting pro se. Papers 4, 39,
`53; Ex. 2055. Over the course of the proceeding, we have provided
`instructions to Patent Owner on filing papers, authorized Patent Owner leave
`to refile papers and file papers beyond due dates, and expunged other Patent
`Owner papers that were not authorized, not in compliance with Board rules,
`and/or contained arguments beyond what was authorized. See, e.g., Papers
`8, 9, 11, 14, 39 (and Exhibit 3001), 40, and 56.
`
`2 See Paper 37, 3; see also Office Patent Trial Practice Guide, 77 Fed. Reg.
`48,756, 48,766 (Aug. 14, 2012) (a patent owner’s “response should identify
`all the involved claims that are believed to be patentable and state the basis
`for that belief”).
`
`2
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`had abandoned the contest.3 Paper 54. Patent Owner indicated that it had
`
`
`
`not abandoned the contest. Paper 56. Patent Owner, however, did not seek
`
`authorization to belatedly file a Patent Owner Response, nor indicate that it
`
`wished to file such a document. We have before us, therefore, the Petition
`
`with no Patent Owner Response. Nonetheless, Petitioner bears the burden to
`
`show, by a preponderance of the evidence, that the challenged claims are
`
`unpatentable.
`
`For the reasons that follow, we determine that Petitioner has shown by
`
`a preponderance of the evidence that claims 1–20 of the ’063 patent are
`
`unpatentable.
`
`B. The ’063 Patent
`
`The ’063 patent relates to the automatic conversion of non-negotiable
`
`credits to funds. Ex. 1001, 1:29–31. In particular, an entity and a commerce
`
`partner agree to permit transfers or conversions of non-negotiable credits to
`
`entity independent funds in accordance with a fixed credits-to-funds ratio.
`
`Id. at Abstract. The conversion allows the user to make a purchase from the
`
`commerce partner who accepts as payment the converted loyalty points. Id.
`
`at Fig. 1.
`
`
`3 An abandonment of the contest is construed as a request for adverse
`judgment. 37 C.F.R. § 42.73(b)(4). A request for adverse judgment, on
`behalf of a Patent Owner, would result in the cancellation of the involved
`claims of a challenged patent, e.g., without consideration of the Petition, etc.
`On the other hand, when a Patent Owner does not abandon the contest, but
`chooses not to file a Patent Owner Response, the Board generally will render
`a final written decision, e.g., based on consideration of the Petition, etc. See
`37 C.F.R. § 42.71(a).
`
`
`3
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`
`C. Illustrative Claim
`
`
`
`Claims 1, 8, and 13 are independent claims. Claims 2–7 directly
`
`depend from claim 1; claims 9–12 directly depend from independent claim
`
`8; and claims 14–20 directly depend from claim 13. Claim 1 is reproduced
`
`below.
`
`1. A method comprising:
`an entity agreeing to permit transfers or conversions of
`non-negotiable credits to entity independent funds in
`accordance with a fixed credits-to-fund ratio, wherein the entity
`agrees to compensate a commerce partner by paying an amount
`in cash or credit for each non-negotiable credit redeemed by the
`commerce partner, wherein the non-negotiable credits are
`loyalty points of a loyalty program of the entity, wherein the
`entity independent funds are loyalty points of a different loyalty
`program of the commerce partner, wherein the entity
`independent funds are redeemable under terms-of-use of the
`different loyalty program for consumer partner goods or for
`consumer partner services, wherein terms-of-use of the different
`loyalty program does not permit commerce partner goods or
`commerce partner services to be exchanged for the non-
`negotiable credits in absence of the non-negotiable credits being
`transferred or converted into the entity independent funds of the
`different loyalty program;
`a computer for the loyalty program of the entity
`establishing an account for non-negotiable credits of a loyalty
`program member;
`the computer detecting a set of two or more interactions
`earning additional non-negotiable credits for the loyalty
`program member in accordance with terms-of-use of the loyalty
`program, wherein the computer adds the additional non-
`negotiable credits to the account; and
`responsive to an indication of a conversion operation
`occurrence, the computer subtracting a quantity of the non-
`negotiable credits from the account, said subtracted quantity of
`non-negotiable credits comprising at least a quantity of non-
`negotiable credits that were converted or transferred to a new
`
`4
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`
`quantity of entity independent funds using the fixed credits-to-
`funds ratio.
`
`
`
`Ex. 1001, 16:5–39.
`
`D. Grounds of Unpatentability
`
`We instituted an inter partes review on the grounds that claims 1–5,
`
`8–10, and 12 are unpatentable under 35 U.S.C. § 103(a) based on Postrel4
`
`and Sakakibara5 and claims 6, 7, 11, and 13–20 are unpatentable under
`
`35 U.S.C. § 103(a) based on Postrel, Sakakibara, and MacLean.6 Dec. 18.
`
`II. ANALYSIS
`
`A. Claim Interpretation
`
`In an inter partes review, claim terms in an unexpired patent are given
`
`their broadest reasonable construction in light of the specification of the
`
`patent in which they appear. 37 C.F.R. § 42.100(b); see also In re Cuozzo
`
`Speed Techs., LLC, 793 F.3d 1268, 1279 (Fed. Cir. 2015) (“Congress
`
`implicitly approved the broadest reasonable interpretation standard in
`
`enacting the AIA,” and “the standard was properly adopted by PTO
`
`regulation.”), cert. granted sub nom., Cuozzo Speed Techs. LLC v. Lee, 136
`
`S. Ct. 890 (mem.) (2016). Under the broadest reasonable construction
`
`standard, claim terms are given their ordinary and customary meaning, as
`
`would be understood by one of ordinary skill in the art in the context of the
`
`
`4 U.S. Patent Application Publication 2005/0021399 A1, published Jan. 27,
`2005 (Ex. 1503) (“Postrel”).
`5 U.S. Patent No. 6,721,743 B1, issued Apr. 13, 2004 (Ex. 1505)
`(“Sakakibara”).
`6 U.S. Patent Application Publication 2002/0143614 A1, published Oct. 3,
`2002 (Ex. 1504) (“MacLean”).
`
`5
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`entire disclosure. In re Translogic Tech., Inc., 504 F.3d 1249, 1257 (Fed.
`
`
`
`Cir. 2007).
`
`Petitioner proposes constructions for the following claim terms:
`
`“entity,” “non-negotiable credits,” and “entity independent funds,” which are
`
`recited at least in independent claims 1, 8, and 13. Pet. 6–9. In our Decision
`
`to Institute, we determined that Petitioner’s proposed constructions are
`
`consistent with the broadest reasonable construction, and adopted them.
`
`Dec. 5–6. Neither party has indicated that our constructions are improper
`
`and we do not perceive any reason or evidence that now compels any
`
`deviation from our initial constructions. Accordingly, the following claim
`
`constructions apply to this Decision:
`
`Claim Term
`
`Construction
`
`
`
`entity
`
`non-negotiable credits
`
`entity independent funds
`
`an organization that has a rewards
`program for a consumer
`credits which are accepted only by
`the granting entity of the credits
`funds acceptable as payment by at
`least one entity different from the
`original granting entity of the non-
`negotiable credits
`
`
`
`B. Principles of Law
`
`A patent claim is unpatentable under 35 U.S.C. § 103(a) if the
`
`differences between the claimed subject matter and the prior art are such that
`
`the subject matter, as a whole, would have been obvious at the time the
`
`invention was made to a person having ordinary skill in the art to which said
`
`subject matter pertains. KSR Int’l Co. v. Teleflex Inc., 550 U.S. 398, 406
`
`6
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`(2007). The question of obviousness is resolved on the basis of underlying
`
`
`
`factual determinations including: (1) the scope and content of the prior art;
`
`(2) any differences between the claimed subject matter and the prior art;
`
`(3) the level of ordinary skill in the art; and (4) objective evidence of
`
`nonobviousness. Graham v. John Deere Co., 383 U.S. 1, 17–18 (1966).
`
`In that regard, an obviousness analysis “need not seek out precise
`
`teachings directed to the specific subject matter of the challenged claim, for
`
`a court can take account of the inferences and creative steps that a person of
`
`ordinary skill in the art would employ.” KSR, 550 U.S. at 418; see
`
`Translogic, 504 F.3d at 1259. A prima facie case of obviousness is
`
`established when the prior art itself would appear to have suggested the
`
`claimed subject matter to a person of ordinary skill in the art. In re Rinehart,
`
`531 F.2d 1048, 1051 (CCPA 1976).
`
`The level of ordinary skill in the art is reflected by the prior art of
`
`record. See Okajima v. Bourdeau, 261 F.3d 1350, 1355 (Fed. Cir. 2001);
`
`In re GPAC Inc., 57 F.3d 1573, 1579 (Fed. Cir. 1995); In re Oelrich, 579
`
`F.2d 86, 91 (CCPA 1978).
`
`C. Obviousness of Claims over Postrel and Sakakibara
`
`Petitioner contends that claims 1–5, 8–10, and 12 are unpatentable
`
`under 35 U.S.C. § 103(a) as obvious over Postrel and Sakakibara. Pet. 15–
`
`40. To support its contentions, Petitioner provides detailed explanations as
`
`to how the combination of prior art meets each claim limitation. Id.
`
`Petitioner also relies upon the Declaration of Matthew Calman (Ex. 1002) to
`
`support its position.
`
`Postrel describes a system in which a user may redeem reward or
`
`loyalty points earned with a merchant, or may redeem the points with
`
`7
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`another merchant through an exchange network. Ex. 1003, Abstract. The
`
`
`
`user additionally may aggregate reward points with those of other merchants
`
`into a central exchange account and then redeem the points for goods or
`
`services from any approved merchant on the network. Id. ¶¶ 10, 45–50. As
`
`an example, Postrel describes loyalty programs that issue or award loyalty or
`
`reward points such as Smith Pizzeria, Blockbuster, and GAP. Id. ¶ 30. A
`
`customer may redeem, for example, Smith Pizzeria reward points by
`
`“indicat[ing] this to the merchant at the point of sale (which may be over a
`
`web site or physically at the restaurant).” Id. ¶ 41. A customer may also
`
`exchange individual merchant loyalty points, for example, Smith Pizzeria
`
`reward points and Blockbuster points, into exchange points (e.g., VISA
`
`points), to use aggregated exchange points “for the purpose of purchasing an
`
`item that he may otherwise be unable to obtain with the points aggregation.”
`
`Id. ¶¶ 30, 46.
`
`Sakakibara describes a point managing system that provides a
`
`web-based user interface, allowing a customer to convert the loyalty points
`
`of a first business entity into those of a second business entity in accordance
`
`with an exchange rate. Ex. 1005, 1:57–2:5, 7:7–10, Fig. 9. Sakakibara
`
`discloses that, prior to conversion, the first entity’s loyalty points only are
`
`redeemable at the first entity and the second entity does not accept the points
`
`issued from the first entity, as payment for the second entity’s goods or
`
`services. Id. at 12:64–13:30. In short, the first entity’s loyalty points, prior
`
`to conversion, are non-negotiable.
`
`Petitioner relies on Postrel to meet all of the independent claim 1 and
`
`independent claim 8 limitations with the exception of “non-negotiable
`
`credits.” Pet. 20–27, 30–38. We agree with Petitioner’s showing, and adopt
`
`8
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`
`it as our own, that Postrel discloses all of the claim 1 and claim 8 limitations,
`
`with the exception of the “non-negotiable credits.” For example, each of
`
`claim 1 and independent claim 8, recite “wherein the non-negotiable credits
`
`are loyalty points of a loyalty program of the entity” and “wherein the entity
`
`independent funds are loyalty points of a different loyalty program of the
`
`commerce partner.” Claim 1, further recites a computer for the loyalty
`
`program of the entity. In the Petition, Petitioner directs attention to
`
`paragraph 30 of Postrel and explains that the description therein of the
`
`Pizzeria “Smith Pizza Points” meets the limitation of credits being points of
`
`a loyalty program of the Pizzeria (an entity). Pet. 21–25, 32. Petitioner
`
`further accounts for the entity independent funds (loyalty points) of a
`
`different loyalty program of the commerce partner (e.g., VISA merchant).
`
`Id. at 22–23, 32–33; see, e.g., Ex. 1002 ¶¶ 60, 61, 105, 106. Moreover,
`
`Petitioner directs attention to Postrel’s description of an acquiring bank
`
`(central server or computer) acting on behalf of the loyalty program of the
`
`entity (e.g., the Pizzeria) that establishes an account for non-negotiable
`
`credits of a user. Pet. 24. We agree with Petitioner that Postrel describes an
`
`entity loyalty program, a commerce partner loyalty program, and the
`
`computer for the loyalty program of the entity as recited in claims 1 and 8.
`
`Petitioner also relies on Postrel for its description with respect to
`
`funds that are “redeemable under terms-of-use” as recited in claims 1 and 8.
`
`See, e.g., Pet. 23, 35. For example, Petitioner relies on at least the
`
`description found at paragraph 32 of Postrel that “Fig. 12 illustrates a simple
`
`database format wherein each merchant and user under that merchant has a
`
`record which indicates how many points are in the account, as well as other
`
`optional information (such as par value of points, restrictions on use, etc.).”
`
`9
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`(Emphasis added). We agree with Petitioner that Postrel describes the
`
`
`
`“redeemable under terms-of-use” limitation of claims 1 and 8.
`
`Claims 1 and 8 each recite non-negotiable credits. Postrel recognizes
`
`that, absent an exchange system, redeeming loyalty points is restricted to
`
`goods or services of the entity that issued the points. Ex. 1003 ¶¶ 5, 41.
`
`Moreover, we agree with Petitioner that it was well known in the art that
`
`loyalty points, prior to conversion, are non-negotiable credits, as explicitly
`
`described by Sakakibara (Ex. 1005, 12:64–13:30). Pet. 17. This is
`
`consistent with the description in the ’063 patent regarding the state of the
`
`art at the time of the invention, which indicates that “[e]ntities often reward
`
`consumers for utilizing their services with . . . non-negotiable credits.” Ex.
`
`1001, 1:32–35 (emphases added). Therefore, we are satisfied that one of
`
`ordinary skill in the art would have recognized that, in light of Sakakibara,
`
`Postrel’s loyalty points, prior to conversion, are non-negotiable credits.
`
`For claims 2–5, each of which depend directly from claim 1, and
`
`claims 9, 10, and 12, each of which depend directly from claim 8, Petitioner
`
`relies on Postrel, along with the supporting testimony of Mr. Calman (Ex.
`
`1002) to meet the additional limitations of those claims. Pet. 27–30, 38–40.
`
`We agree with Petitioner’s showing, and adopt it as our own, that Postrel in
`
`combination with Sakakibara discloses the additional limitations of claims
`
`2–5, 9, 10, and 12.
`
`We also determine that Petitioner has identified sufficient reasoning
`
`for the proposed combination of Postrel and Sakakibara with respect to
`
`claims 1–5, 8–10, and 12. Pet. 15–19; Ex. 1502 ¶¶ 52–54, 99. For example,
`
`Petitioner argues that because both Postrel and Sakakibara relate to
`
`conversion of loyalty program points, one of ordinary skill in the art would
`
`10
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`have recognized that Sakakibara’s teachings are applicable towards the
`
`
`
`system of Postrel. Pet. 17. We agree with, and adopt as our own,
`
`Petitioner’s rationale. “[I]f a technique has been used to improve one
`
`device, and a person of ordinary skill in the art would recognize that it would
`
`improve similar devices in the same way, using the technique is obvious
`
`unless its actual application is beyond his or her skill.” KSR, 550 U.S. at
`
`417.
`
`In summary, we have reviewed the Petition and the supporting
`
`evidence, and adopt as our own Petitioner’s findings, as well as its rationale
`
`for combining MacLean and Sakakibara, and conclude that Petitioner has
`
`shown by a preponderance of the evidence that claims 1–5, 8–10, and 12 are
`
`unpatentable over the combination of Postrel and Sakakibara.
`
`D. Obviousness of Claims over Postrel, Sakakibara, and MacLean
`
`Petitioner contends that claims 6, 7, 11, and 13–20 are unpatentable
`
`under 35 U.S.C. § 103(a) as obvious over Postrel, Sakakibara, and MacLean.
`
`Pet. 40–59. Independent claim 13 is similar to independent claims 1 and 8.
`
`Petitioner accounts for the differences and limitations found in independent
`
`claim 13 that are not in independent claims 1 and 8. Id. at 43–44.
`
`Moreover, to support its contention that claims 6, 7, 11, and 13–20 would
`
`have been obvious over Postrel, Sakakibara, and MacLean, Petitioner
`
`provides detailed explanations as to how the combination of prior art meets
`
`each claim limitation. Id. at 40–59. Petitioner also relies on the Declaration
`
`of Matthew Calman (Ex. 1002) for to support its position.
`
`MacLean describes a system and method for managing and
`
`exchanging reward or loyalty points (credits) from one Loyalty Program
`
`(LP) to another. Ex. 1004 ¶ 40, Abstract. Figure 1 of MacLean is
`
`11
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`reproduced below and shows a functional diagram of a points exchange
`
`
`
`system.
`
`
`
`
`
`Figure 1 of MacLean shows a functional diagram of a points exchange
`
`
`
`system.
`
`Point management system 100 facilitates interaction between
`
`customer 110, transaction center 120, and issuers 130a-c. Id. ¶ 40. Points
`
`managed by system 100 may take the form of a variety of Loyalty Program
`
`(LP) points such as those issued by airlines, hotels, financial entities, e.g.,
`
`credit cards, and networks, e.g., portal web sites in the Internet. Id. Each
`
`kind of point is issued and redeemed by a different LP and may have a
`
`different value or liability to its LP. Point management system 100 permits
`
`a customer to exchange points from one LP to another. Id. ¶ 41. As
`
`examples, a customer may exchange points issued by American Airlines for
`
`those issued by American Express Card, or a customer may transfer points
`
`issued by any number of LPs to a single LP, so that the customer may
`
`redeem its collected points for the rewards offered by the single LP. Id.
`
`
`
`MacLean describes the transfer or conversion of points using an
`
`exchange rate. Id. ¶¶ 21, 27. In particular, and with reference to Figures
`
`5A, 5B, and 6D, a customer may select a depositing LP (step 510) and click
`
`12
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`
`on “calculate advanced xchange” button 634, which results in the calculation
`
`of the exchange rates for the points transaction (step 511). Id. ¶ 52.
`
`For independent claim 13, Petitioner relies on MacLean for its
`
`description of entity independent funds, in the form of points, having been
`
`earned through activities related to a different loyalty program (that of a
`
`commerce partner). See, e.g., Pet. 43–44, 50. In particular, Petitioner relies
`
`on the description found at paragraph 57 of MacLean that “points are added
`
`to the customer’s account typically when the customer purchases some
`
`goods or services.” Id. at 50, Ex. 1004 ¶ 57. We agree that MacLean meets
`
`the claim 13 entity independent funds limitation.
`
`Petitioner also relies on MacLean with respect to dependent claims 6,
`
`7, and 20 which recite a single human-to-machine interaction session, by
`
`directing attention to MacLean’s description of the various functions of
`
`those claims occurring in a web session. Pet. 41–42, 44–46, 58–59.
`
`Petitioner relies on Postrel and Sakakibara for the remaining limitations
`
`found in claims 6, 7, 11, and 13–20, similar to how the references were
`
`applied to claims 1–5, 8–10, and 12 discussed above. Id. at 40–59. Lastly,
`
`Petitioner relies on Postrel for the claim 13 limitation “wherein the
`
`commerce partners goods or commerce partner servicers are not in the
`
`restricted list of goods or services” that is not in either of independent claims
`
`1 or 8. Id. at 51.
`
`We are persuaded by Petitioner’s showing, and adopt it as our own,
`
`that Postrel, Sakakibara, and MacLean disclose all of the limitations of
`
`claims 6, 7, 11, and 13–20. For example, claim 13 recites “wherein the
`
`commerce partners goods or commerce partner servicers are not in the
`
`restricted list of goods or services.” This identical language is not found in
`
`13
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`either of claim 1 or independent claim 8. We are satisfied that Petitioner
`
`
`
`sufficiently accounts for this limitation by directing attention to the passage
`
`in Postrel that describes a user making purchases from a VISA catalog
`
`which includes goods that are not in the restricted list of goods or services
`
`provided by the entity, e.g., pizza. Id.
`
`We also are satisfied that Petitioner has identified sufficient reasoning
`
`for the proposed combination of Postrel, Sakakibara, and MacLean with
`
`respect to claims 6, 7, 11, and 13–20. See, e.g., Pet. 42–44 (citing various
`
`paragraphs from Ex. 1002). For example, independent claim 13 requires
`
`entity independent funds, in the form of points, having been earned through
`
`activities related to a different loyalty program (that of a commerce partner).
`
`As explained above, Petitioner relies on MacLean for its description found at
`
`paragraph 57 of MacLean that “points are added to the customer’s account
`
`typically when the customer purchases some goods or services.” Id. at 50,
`
`Ex. 1004 ¶ 57. Petitioner argues that combining MacLean with Postrel
`
`allows a user of Postrel’s system to accumulate all of his aggregated or
`
`exchange points into the same account as points earned with the commerce
`
`partner. Pet. 44. Petitioner further contends that because Postrel and
`
`MacLean both involve the processing of loyalty program points, a person of
`
`ordinary skill in the art would have appreciated that the conventional
`
`approaches to earning loyalty points, such as taught by MacLean, are
`
`applicable to the loyalty programs handled by Postrel’s system. Id. (citing
`
`Ex. 1002 ¶¶ 147–149). We agree with, and adopt as our own, this as well as
`
`all of the rationales Petitioner provides for combining Postrel, Sakakibara,
`
`and MacLean.
`
`14
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`
`In summary, we have reviewed the Petition and the supporting
`
`
`
`evidence, and adopt as our own Petitioner’s findings, as well as its rationale
`
`for combining Postrel, Sakakibara, and MacLean, and conclude that
`
`Petitioner has shown by a preponderance of the evidence that claims 6, 7,
`
`11, and 13–20 are unpatentable over the combination of Postrel, Sakakibara,
`
`and MacLean.
`
`III. CONCLUSION
`
`For the foregoing reasons, we conclude that Petitioner has
`
`demonstrated, by a preponderance of the evidence, that claims 1–5, 8–10,
`
`and 12 are unpatentable under 35 U.S.C. § 103(a) as obvious over Postrel
`
`and Sakakibara, and claims 6, 7, 11, and 13–20 are unpatentable under
`
`35 U.S.C. § 103(a) as obvious over Postrel, Sakakibara, and MacLean.
`
`In consideration of the foregoing, it is
`
`IV. ORDER
`
`ORDERED that claims 1–20 of the ’063 patent are held unpatentable;
`
`and
`
`FURTHER ORDERED that, because this is a Final Written Decision,
`
`parties to the proceeding seeking judicial review of the decision must
`
`comply with the notice and service requirements of 37 C.F.R. § 90.2.
`
`15
`
`
`
`
`
`
`
`
`
`
`IPR2015-00123
`Patent 8,523,063 B1
`
`
`
`
`PETITIONER:
`
`Robert Fischer
`Frank DeLucia
`Stephen Yam
`Justin Oliver
`AskeladdenIPR@fchs.com
`joliver@fchs.com
`
`
`
`PATENT OWNER:
`
`Brian Buchheit
`bbuchheit@gmail.com
`
`
`Sean McGhie
`Sean.mcghie@me.com
`
`
`
`16