Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`
`DOCKET NO.: 1033300-00318US1
`Filed on behalf of Apple Inc.
`By: Monica Grewal, Reg. No. 40,056 (Lead Counsel)
`Ben Fernandez, Reg. No. 55,172 (Backup Counsel)
`Scott Bertulli, Reg. No. 75,886 (Backup Counsel)
`Wilmer Cutler Pickering Hale and Dorr LLP
`60 State Street
`Boston, MA 02109
`Email: monica.grewal@wilmerhale.com
`
` ben.fernandez@wilmerhale.com
`
` scott.bertulli@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 IPR2020-01222
`
`U.S. Patent No. 9,928,495
`_________________________________________
`
`PETITION FOR INTER PARTES REVIEW
`OF CLAIMS 1-21
`
`
`
`
`

`

` Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`TABLE OF CONTENTS
`
`Page
`
`Table of Contents ............................................................................................ ii 
`I. 
`Introduction ........................................................................................... 1 
`II.  Mandatory Notices (37 C.F.R. §42.8(a)(1)) .......................................... 2 
`A. 
`Real Party-in-Interest ................................................................. 2 
`B. 
`Related Matters .......................................................................... 2 
`C. 
`Counsel ...................................................................................... 6 
`D. 
`Service Information ................................................................... 7 
`III.  Grounds for Standing ............................................................................ 7 
`IV.  Level of Ordinary Skill ......................................................................... 8 
`V.  Overview of Challenge and Relief Requested ...................................... 9 
`VI.  Background of the ’495 Patent .............................................................. 9 
`A. 
`Priority ....................................................................................... 9 
`B. 
`Brief Description ....................................................................... 9 
`C. 
`Prosecution History ................................................................. 10 
`VII.  Proposed Claim Constructions ............................................................ 10 
`VIII.  Prior Art References ............................................................................ 11 
`A. 
`Schutzer ................................................................................... 11 
`B.  Walker ...................................................................................... 12 
`C. 
`Franklin .................................................................................... 13 
`D. 
`Slater ........................................................................................ 14 
`
`
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`

`

` Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`IX.  Claims 1-21 of the ’495 Patent Are Unpatentable under 35 U.S.C.
`§103 ..................................................................................................... 15 
`A. 
`Ground 1: Claims 1-5, 7-12, 14-19, and 21 Are Obvious over
`Schutzer Alone or in View of Walker. .................................... 15 
`1. 
`Independent Claim 1 ...................................................... 15 
`2. 
`Dependent Claim 2 ......................................................... 29 
`3. 
`Dependent Claim 3 ......................................................... 29 
`4. 
`Dependent Claim 4 ......................................................... 29 
`5. 
`Dependent Claim 5 ......................................................... 30 
`6. 
`Dependent Claim 7 ......................................................... 34 
`7. 
`Independent Claim 8 ...................................................... 35 
`8. 
`Dependent Claim 9 ......................................................... 36 
`9. 
`Dependent Claim 10 ....................................................... 36 
`10.  Dependent Claim 11 ....................................................... 37 
`11.  Dependent Claim 12 ....................................................... 37 
`12.  Dependent Claim 14 ....................................................... 37 
`13. 
`Independent Claim 15 .................................................... 38 
`14.  Dependent Claim 16 ....................................................... 40 
`15.  Dependent Claim 17 ....................................................... 40 
`16.  Dependent Claim 18 ....................................................... 40 
`17.  Dependent Claim 19 ....................................................... 41 
`18.  Dependent Claim 21 ....................................................... 41 
`Ground 2: Claims 6, 13, and 20 Are Obvious over Schutzer
`Alone or in View of Walker and/or Slater. .............................. 42 
`
`B. 
`
`
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`

`

`C. 
`
` Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`1. 
`Dependent Claim 6 ......................................................... 42 
`Dependent Claim 13 ....................................................... 47 
`2. 
`Dependent Claim 20 ....................................................... 48 
`3. 
`Ground 3: Claims 1-5, 7-12, 14-19, and 21 Are Obvious Over
`Franklin Alone or in View of Schutzer. .................................. 48 
`1. 
`Independent Claim 1 ...................................................... 48 
`2. 
`Dependent Claim 2 ......................................................... 58 
`3. 
`Dependent Claim 3 ......................................................... 59 
`4. 
`Dependent Claim 4 ......................................................... 60 
`5. 
`Dependent Claim 5 ......................................................... 61 
`6. 
`Dependent Claim 7 ......................................................... 64 
`7. 
`Independent Claim 8 ...................................................... 65 
`8. 
`Dependent Claim 9 ......................................................... 67 
`9. 
`Dependent Claim 10 ....................................................... 67 
`10.  Dependent Claim 11 ....................................................... 67 
`11.  Dependent Claim 12 ....................................................... 68 
`12.  Dependent Claim 14 ....................................................... 68 
`13. 
`Independent Claim 15 .................................................... 69 
`14.  Dependent Claim 16 ....................................................... 70 
`15.  Dependent Claim 17 ....................................................... 71 
`16.  Dependent Claim 18 ....................................................... 71 
`17.  Dependent Claim 19 ....................................................... 71 
`18.  Dependent Claim 21 ....................................................... 72 
`
`
`
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`

`

`D. 
`
` Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`Ground 4: Claims 6, 13, and 20 Are Obvious over Franklin
`Alone or in View of Schutzer and/or Slater. ........................... 73 
`1. 
`Dependent Claim 6 ......................................................... 73 
`2. 
`Dependent Claim 13 ....................................................... 77 
`3. 
`Dependent Claim 20 ....................................................... 77 
`Conclusion ........................................................................................... 78 
`X. 
`Table of Exhibits ............................................................................................ 79 
`
`
`
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`

`

` Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`TABLE OF AUTHORITIES
`
` Page(s)
`
`Cases
`Apple Inc. v. Universal Secure Registry, LLP,
`IPR2018-00809, Paper No. 51 (P.T.A.B. Oct. 8, 2019) ..................... 8, 42, 74, 77
`Apple Inc. v. Universal Secure Registry, LLP,
`IPR2018-00812, Paper No. 45 (P.T.A.B. Nov. 5, 2019) ...................................... 8
`eBay Inc. v. Lockwood,
`CBM2014-00026, Paper No. 25 (P.T.A.B. May 15, 2014) .................................. 7
`Phillips v. AWH Corp.,
`415 F.3d 1303 (Fed. Cir. 2005) .......................................................................... 10
`Statutes, Rules and Regulations
`37 C.F.R. § 42.8 ..................................................................................................... 2, 6
`37 C.F.R. § 42.22 ....................................................................................................... 8
`37 C.F.R. § 42.100 ............................................................................................... 1, 10
`37 C.F.R. § 42.101 ..................................................................................................... 7
`37 C.F.R. § 42.104 ............................................................................................... 8, 15
`77 Fed. Reg. 48764 (Aug. 14, 2012) ....................................................................... 10
`35 U.S.C. § 102 .................................................................................................. 12-15
`35 U.S.C. § 103 .................................................................................................... 8, 15
`35 U.S.C. § 314 .......................................................................................................... 8
`35 U.S.C. § 321 .......................................................................................................... 1
`
`
`
`- vi -
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`

`

`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`
`I.
`
`INTRODUCTION
`The ’495 patent is directed to systems and methods for authenticating users
`
`involved in a transaction using one-time codes received by a computer system that
`
`uses the code to access account-identifying information associated with the user.
`
`The computer system then authorizes the transaction with a merchant or a credit
`
`card company.
`
`When the ’495 patent was filed, however, authentication of a user’s identity
`
`based on one-time codes was well known in the art. See generally Ex-1002 ¶¶27-
`
`47. The prior art is replete with systems and methods that perform user
`
`authentication using one-time codes. For example, European Patent Application
`
`Publication No. 1028401A2 (“Schutzer”) (Ex-1006), U.S. Patent No. 6,163,771
`
`(“Walker”) (Ex-1007), and U.S. Patent No. 6,000,832 (“Franklin”) (Ex-1008) each
`
`disclose systems and methods for conducting financial transactions using one-
`
`time/single-use codes that allow the transaction to take place without providing the
`
`merchant any sensitive account-identifying information. See, e.g., Ex-1006, [0019]
`
`(“[T]he anonymous or alternate card number is used in a transaction by the
`
`transaction card user in place of the transaction card user’s transaction card
`
`number.”), [0038]; Ex-1007, 6:61-7:9 (single-use credit card number), 8:37-9:3;
`
`Ex-1008, 2:21-38 (“The customer computer then generates a code number as a
`
`function of … specific data ….”), 3:7-23, 5:24-40.
`
`
`
`- 1 -
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`

`

`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`As further explained in this Petition, the systems and methods claimed in the
`
`’495 patent were known in the art and obvious at the time the ’495 patent was
`
`filed.
`
`II. 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 ’495 patent is assigned to Universal Secure Registry, LLC (“Patent
`
`Owner”). On May 21, 2017, Patent Owner sued Apple as well as Visa Inc. and
`
`Visa U.S.A. Inc. (“Visa”) in the District of Delaware, asserting four U.S. patents --
`
`including a parent to the ’495 patent, Patent No. 8,856,539 (“’539 patent”), as well
`
`as Patent Nos. 9,530,137, 9,100,826, and 8,577,813 (“’813 patent”)—directed to
`
`verifying an account holder’s identity based on codes and/or information related to
`
`the account holder before enabling a transaction. See Ex-1003 ¶2.
`
`On June 30, 2020, the Court issued a Memorandum and Order ruling these
`
`patents invalid under 35 U.S.C. §101, finding that they “are directed to an abstract
`
`idea—the secure verification of a person’s identity—and therefore fail step one of
`
`the Alice inquiry.” Ex-1014, 9; see also Ex-1015. Further, the patents were found
`
`to “not disclose an inventive concept such as an improvement in computer
`
`
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`

`

`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`functionality that transforms that abstract idea into a patent-eligible application of
`
`the idea.” Ex-1014, 9.
`
`On July 2, 2020, Petitioner filed a lawsuit in the U.S. District of Delaware
`
`seeking a declaratory judgment of noninfringement regarding the ’495 patent, as
`
`well as related U.S. Patent No. 9,947,000 (the “’000 patent”) and U.S. Patent
`
`No. 10,163,103. Ex-1013.
`
`In 2018, Apple and/or Visa filed the petitions identified in the table below
`
`relating to the asserted patents. Also listed is a petition filed by Unified Patents for
`
`the ’813 patent.
`
`Asserted U.S.
`Patent No.
`9,530,137
`
`
`
`CBM/IPR
`
`CBM2018-00022
`
`
`
`IPR2018-00808
`
`IPR2018-00809
`
`Statutory
`Grounds
`35 U.S.C. §101
`
`35 U.S.C. §103
`
`Outcome
`
`Institution denied
`because Patent Owner
`disclaimed all claims
`with financial terms
`
`Institution denied
`
`35 U.S.C. §103 Final Written Decision
`finding all challenged
`claims unpatentable
`
`Patent Owner filed
`appeal to the Federal
`Circuit, which Patent
`Owner subsequently
`dismissed.
`
`
`
`
`- 3 -
`
`

`

`Asserted U.S.
`Patent No.
`9,100,826
`
`
`
`CBM/IPR
`
`IPR2018-00810
`
`
`IPR2018-00813
`
`8,856,539
`
`
`
`CBM2018-00023
`
`
`IPR2018-00811
`
`IPR2018-01350
`
`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`Outcome
`
`35 U.S.C.
`§§102, 103
`
`Statutory
`Grounds
`35 U.S.C. §103 Final Written Decision
`finding all challenged
`claims were not shown
`to be unpatentable
`
`Appeal pending with
`the Federal Circuit
`
`Final Written Decision
`finding claims 1, 2, 10,
`11, 21, 22, 24, 27, 30,
`and 31 to be
`unpatentable
`
`Claims 7, 14, 15, 26,
`and 34 were not shown
`to be unpatentable
`
`Appeal pending with
`the Federal Circuit
`
`Institution denied
`because Patent Owner
`disclaimed all claims
`with financial terms
`
`Institution denied
`
`35 U.S.C. §101
`
`35 U.S.C. §103
`
`35 U.S.C. §103 Final Written Decision
`finding all challenged
`claims were not shown
`to be unpatentable
`
`Appeal pending with
`the Federal Circuit
`
`
`
`
`- 4 -
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`

`

`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`Outcome
`
`Asserted U.S.
`Patent No.
`
`CBM/IPR
`
`IPR2018-01351
`
`IPR2018-00812
`
`Statutory
`Grounds
`35 U.S.C. §103
`
`35 U.S.C. §103
`
`
`Institution denied
`
`Final Written Decision
`finding all challenged
`claims were not shown
`to be unpatentable
`
`Appeal pending with
`the Federal Circuit
`
`Institution denied
`
`8,577,813
`
`CBM2018-00026 35 U.S.C. §101
`
`
`
`CBM2018-00024 35 U.S.C. §103 Trial terminated and
`decision to institute
`vacated
`
`Notice of Appeal filed
`with the Federal Circuit;
`following dismissal of
`appeal, Apple has
`requested en banc
`review.
`
`CBM2018-00025 35 U.S.C. §103 Trial terminated and
`decision to institute
`vacated
`
`Notice of Appeal filed
`with the Federal Circuit;
`following dismissal of
`appeal, Apple has
`requested en banc
`review.
`
`
`
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`

`

`Asserted U.S.
`Patent No.
`
`CBM/IPR
`
`IPR2018-00067
`
`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`Outcome
`
`Statutory
`Grounds
`35 U.S.C. §103 Final Written Decision
`finding claims 1-3, 5-9,
`11, 13-18, 20, and 22-
`26 to be unpatentable
`
`Claims 10, 12, 19, and
`21 were not shown to be
`unpatentable
`
`Patent Owner filed
`appeal to the Federal
`Circuit, which Patent
`Owner subsequently
`dismissed.
`
`
`
`Petitioner is concurrently filing two petitions regarding a related patent (the
`
`’000 patent) and another petition regarding the ’495 patent, along with Petitioner’s
`
`Statement Regarding Multiple Petitions, as follows:
`
`Asserted Patent IPR
`
`Grounds
`
`U.S. 9,947,000
`
`IPR2020-01220
`
`35 U.S.C. §103, claims 1-21
`
`IPR2020-01221
`
`35 U.S.C. §103, claims 22-28
`
`U.S. 9,928,495
`
`IPR2020-01223
`
`35 U.S.C. §103, claims 22-28
`
`
`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.
`
`
`
`- 6 -
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`

`

`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`Lead Counsel: Monica Grewal (Reg. No. 40,056)
`
`Backup Counsel: Ben Fernandez (Reg. No. 55,172)
`
`
`
`
`
`
`
`Scott Bertulli (Reg. No. 75,886)
`
`Service Information
`
`D.
`Email:
`
`monica.grewal@wilmerhale.com
`
`ben.fernandez@wilmerhale.com
`
`scott.bertulli@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.
`
`III. GROUNDS FOR STANDING
`Pursuant to Rule 42.104(a), Petitioner certifies that it (1) has not filed a civil
`
`action challenging the validity of a claim of the patent, 37 C.F.R. §42.101(a), (2)
`
`has complied with the timing requirements of 37 C.F.R. §42.101(b), and (3) is not
`
`estopped from challenging the claims on the grounds identified in this Petition, 37
`
`C.F.R. §42.101(c).
`
`
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`

`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`Moreover, there exists a real and substantial controversy regarding
`
`infringement of the ’495 patent. In a June 29, 2018 letter, Patent Owner expressed
`
`its intent to move to add the ’495 patent to its then-pending lawsuit against Apple
`
`and Visa. See Ex-1004.
`
`IV. LEVEL OF ORDINARY SKILL
`A person of ordinary skill in the 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. In IPR proceedings on
`
`a parent of the ’495 patent (the ’539 patent), Patent Owner argued a POSITA
`
`would have had “a Bachelor of Science degree in electrical engineering and/or
`
`computer science, and three years of work or research experience in the fields of
`
`secure transactions and encryption, or a Master’s degree in electrical engineering
`
`and/or computer science, and two years of work or research experience in related
`
`fields.” Apple Inc. v. Universal Secure Registry, LLP, IPR2018-00812, Paper
`
`No. 45, 6 (P.T.A.B. Nov. 5, 2019); see also Apple Inc. v. Universal Secure
`
`Registry, LLP, IPR2018-00809, Paper No. 51, 6-7 (P.T.A.B. Oct. 8, 2019)
`
`(“IPR2018-00809 FWD”) (adopting Patent Owner’s definition). Because the ’495
`
`patent claims similar subject matter as its parent ’539 patent (including by sharing
`
`figures and specification language), Petitioner submits that the same level of skill
`
`in the art should apply here. Ex-1002 ¶¶48-49.
`
`
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`

`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`V. OVERVIEW OF CHALLENGE AND RELIEF REQUESTED
`Pursuant to Rules 42.22(a)(1) and 42.104(b)(1)-(2), Petitioner challenges
`
`claims 1-21 of the ’495 patent and requests that they be canceled as unpatentable
`
`under 35 U.S.C. §103. This Petition, supported by the declaration of Dr. Patrick
`
`McDaniel (Ex-1002) filed herewith, demonstrates that there is a reasonable
`
`likelihood that Petitioner will prevail with respect to cancellation of at least one of
`
`the challenged claims. See 35 U.S.C. §314(a).
`
`VI. BACKGROUND OF THE ’495 PATENT
`A.
`Priority
`Entitled “Universal Secure Registry” (“USR”), the ’495 patent issued on
`
`March 27, 2018 from an application filed on August 30, 2017. The ’495 patent
`
`claims priority to a series of continuation applications, the earliest of which was
`
`filed on March 16, 2001. Ex-1002 ¶50.
`
`B.
`Brief Description
`The ’495 patent describes a secure database called a “universal secure
`
`registry,” which is “a universal identification system … used to selectively provide
`
`… information about a person to authorized users.” Ex-1001, 3:24-27. Ex-1002
`
`¶¶51-52.
`
`By way of example, independent claim 8 recites “[a] method for enabling a
`
`transaction involving a first party and a user” comprising the steps of (1)
`
`“receiving authentication information” (either a PIN, code, or biometric
`- 9 -
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`

`

`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`information) “of the user”; (2) “authenticating [the] identity of the user based on
`
`the received authentication information”; (3) “generating a one-time code in
`
`response to authenticating the user”; (4) using the one-time code “to access
`
`account identifying information or user identifying information”; and
`
`(5) “communicating a signal comprising the one-time code to the first party in
`
`order to enable a transaction.” Ex-1001, 19:41-54. Ex-1002 ¶53.
`
`C.
`Prosecution History
`Patent Owner filed Patent Application Number 15/691,378 on August 30,
`
`2017 and requested prioritized examination. Ex-1005, 274-362. The application
`
`contained 28 claims. Id. 334-39. On October 6, 2017, the examiner rejected all
`
`pending claims for nonstatutory double patenting over claims in the ’539 patent.
`
`Id. 228-33. On October 25, 2017, an Amendment and a Terminal Disclaimer were
`
`filed to overcome the rejection for double patenting. Id. 44-55. On January 26,
`
`2018, the examiner issued a Notice of Allowance of all claims. Id. 24-31. The
`
`patent issued on March 27, 2018. Id. 1. Ex-1002 ¶54-57.
`
`VII. PROPOSED CLAIM CONSTRUCTIONS
`Petitioner submits that all claim terms should be construed using the plain
`
`and ordinary meaning. See 37 C.F.R. §42.100(b); Phillips v. AWH Corp., 415 F.3d
`
`1303, 1313 (Fed. Cir. 2005). If Patent Owner contends that the claim terms have a
`
`different construction, Patent Owner should seek to amend the claim to expressly
`
`
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`

`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`correspond to its contentions in this proceeding. See 77 Fed. Reg. 48764 (Aug. 14,
`
`2012).
`
`VIII. PRIOR ART REFERENCES
`A.
`Schutzer
`European Patent Application Publication No. 1028401A2 (Ex-1006)
`
`(“Schutzer”) was filed on February 10, 2000, and claims priority to two U.S.
`
`provisional applications: No. 60/119,818 filed on February 2, 1999, and
`
`No. 60/144,927 filed on July 21, 1999, both of which predate the ’495 patent’s
`
`earliest claimed priority date. Schutzer was published on August 16, 2000 and is
`
`therefore prior art under at least 35 U.S.C. §102(a). Schutzer was not considered
`
`during prosecution of the ’495 patent. Ex-1002 ¶58.
`
`Schutzer discloses that when a user engages in a financial transaction, the
`
`user’s system generates a single-use “anonymous or alternate card number,” which
`
`substitutes for the user’s actual card number in a transaction. Ex-1006, [0019]
`
`(“[T]he anonymous or alternate card number is used in a transaction by the
`
`transaction card user in place of the transaction card user’s transaction card
`
`number.”), [0025] (indicating that “anonymous card number” and “alternate card
`
`
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`

`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`number” are used synonymously).1 The anonymous card number can “pass any
`
`validity checks made by a merchant or the merchant’s bank” and, when passed to
`
`the issuing institution (e.g., the bank or other institution that issued the credit or
`
`debit card), can be “associated … with the proper cardholder and the cardholder’s
`
`account can be authorized.” Id. [0011], [0019], Fig. 4. The anonymous card
`
`number can be a one-time code for a single transaction. For example, in at least
`
`one embodiment, the anonymous card number is “associated with … the time that
`
`it was generated” or generated at fixed time intervals. Id. [0041], [0052]. Schutzer
`
`also discloses the use of a biometric input to authenticate a user. Id. [0013]-[0014].
`
`Ex-1002 ¶59.
`
`B. Walker
`U.S. Patent No. 6,163,771 (Ex-1007) (“Walker”) was filed on August 28,
`
`1997 and issued on December 19, 2000. Walker is therefore prior art under at least
`
`35 U.S.C. §102(b). Patent Owner cited Walker in one of several Information
`
`Disclosure Statements (together with 144 other references), but Walker did not
`
`form the basis of a rejection and was not analyzed or discussed by the Patent
`
`Owner or the examiner. Ex-1002 ¶60.
`
`
`
`1 While these terms are used synonymously in Schutzer, this Petition will
`
`use “anonymous card number.”
`
`
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`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`Walker discloses a system configured to authenticate a cardholder based on
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`a single-use credit card number.2 The single-use credit card number is sent by the
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`cardholder to a merchant and via the merchant to a credit card issuer. Ex-
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`1007,6:4-14. The credit card issuer retrieves the cardholder’s true account number
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`using the single-use credit card number and provides an authorization for the
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`transaction to the merchant. Id. 7:3-9, Figs. 3A-3B. Ex-1002 ¶¶61-62.
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`The single-use credit card number is a one-time code sent in lieu of the
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`cardholder’s actual account number. Ex-1007, 6:64-7:1. Walker also discloses the
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`use of biometric input to authenticate a user prior to generating the one-time code.
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`Id. 5:58-61. Ex-1002 ¶63.
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`C.
`Franklin
`U.S. Patent No. 6,000,832 (Ex-1008) (“Franklin”) was filed on September
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`24, 1997 and issued on December 14, 1999, which is more than one year before the
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`’495 patent’s priority date. Therefore, Franklin is prior art under at least 35 U.S.C.
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`§102(b). Franklin was not considered during prosecution of the ’495 patent. Ex-
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`
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`2 Walker uses “single-use financial account identifier” and “single-use credit
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`card number” synonymously. The detailed description and drawings refer to a
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`“single-use credit card number,” but the background and summary of the invention
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`refer to a “single-use financial account identifier.”
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`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
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`1002 ¶64.
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`Franklin is directed to a system for authenticating a party to a financial
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`transaction using a randomly-generated “transaction number” in place of a user’s
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`personal account information. Ex-1008, Abstract. When a user initiates a
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`transaction, the user’s device generates a one-time transaction number as a
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`function of “the private key, customer-specific data, … and transaction-specific
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`data.” Id. 2:27-32. The transaction number is then submitted to the merchant “as a
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`proxy for a regular card number.” Id. 2:35-39. The merchant subsequently passes
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`the transaction number along to its own bank and then ultimately to the issuing
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`institution for approval. Id. 2:35-38. The issuing institution, utilizing a database of
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`customer account records, looks up the user’s information and compares stored
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`information to a portion of the received transaction number. Id. 2:51-64. Based on
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`that comparison, the issuing institution either accepts or denies the transaction. Id.
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`2:65-3:6. Ex-1002 ¶65.
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`D.
`Slater
`U.S. Patent No. 6,098,053 (Ex-1009) (“Slater”) was filed on January 26,
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`1999 and issued on August 1, 2000. Slater is therefore prior art under at least 35
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`U.S.C. §102(a). Slater was not considered during prosecution of the ’495 patent.
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`Ex-1002 ¶66.
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`Similar to the ’495 patent, Slater discloses a user device configured to
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`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`forward a tokenized “electronic financial transaction instruction” containing
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`sensitive information to a financial institution via a merchant. Ex-1009, Abstract,
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`Fig. 1. Like the other prior art, the electronic financial transaction instruction
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`contains information for identifying an account for the user and for performing a
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`financial transaction. Id. 4:66-5:2, 7:8-25. Ex-1002 ¶67.
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`IX. CLAIMS 1-21 OF THE ’495 PATENT ARE UNPATENTABLE
`UNDER 35 U.S.C. §103
`Pursuant to 37 C.F.R. §42.104(b)(4)-(5), this Petition demonstrates how the
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`prior art renders obvious claims 1-21 of the ’495 patent.
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`A. Ground 1: Claims 1-5, 7-12, 14-19, and 21 Are Obvious over
`Schutzer Alone or in View of Walker.
`1.
`Independent Claim 1
`a.
`1[p]: “An authentication system to enable a
`transaction involving a first party and a user, the
`system comprising:”
`A claim preamble is not limiting unless the preamble “gives ‘life and
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`meaning’ to the claims,” or unless terms in the preamble “provide an antecedent
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`basis for terms in the body.” In re Wertheim, 541 F.2d 257, 269 (CCPA 1976).
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`This preamble is superfluous. Nowhere besides the preamble does the claim
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`mention “authentication system” or “enabl[ing] a transaction involving a first party
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`and a user.” The term “the first party” and “the user” do rely on the preamble for
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`their antecedent basis, but not to enable the transaction between the two. In fact,
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`the body of the claim refers to “enabl[ing] a transaction,” explicitly not referring to
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`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`“the transaction” referenced in the preamble. Thus, the preamble does not give life
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`or meaning to the claim, and the preamble is not limiting. But even if the preamble
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`is limiting, which Petitioner does not concede, Schutzer alone or in view of Walker
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`discloses the preamble of claim 1. As illustrated in Figure 1 below, Schutzer
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`discloses a “system for securely performing a bankcard transaction”
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`[authentication system] involving an issuing bank and/or a merchant [first
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`party]3 and a cardholder [user]. Ex-1006, [0008], [0019], [0040], [0036], [0020],
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`[0037], Fig. 3. Ex-1002 ¶69.
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`
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`3 These two alternative mappings of the first party limitation are provided in
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`view of claim 2’s requirement that the first party is either the merchant or the credit
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`card company. Either mapping, standing alone, is sufficient to meet the claim.
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`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`
`
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`Ex-1006 (Schutzer), Fig. 1.
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`Schutzer further discloses that the cardholder transmits an anonymous card
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`number for one-time use to the merchant to authenticate him or herself and enable
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`a transaction. Ex-1006, [0027], [0018] [0020]. That is, Schutzer discloses that the
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`merchant’s server “receives the request for authorization [from the user 2] and
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`sends the request with the alternate card number … to the card issuer’s server 14.”
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`Id. In Walker, “[t]he merchant 302 transmits the single-use credit card number 300
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`to a credit card issuer 303. The credit card issuer 303 returns an authorization 310
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`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`to the merchant, based on which the merchant delivers the desired goods or
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`services 320 to the cardholder.” Ex-1007, 6:9-14. Ex-1002 ¶70.
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`The merchant described in both Schutzer and Walker is a first party in a
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`transaction. Alternatively, the issuing bank [credit card company], which receives
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`and validates the one-time code in both references, is a first party. Ex-1002 ¶¶71-
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`72.
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`b.
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`1[a]: “an electronic device comprising a
`communications interface and one or more
`processors;”
`Schutzer discloses this limitation. Schutzer discloses a user computing
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`device [electronic device] that contains computer hardware, such as a processor
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`[one or more processors]. Ex-1006, [0024], [0030], [0034], [0026], [0023], Figs.
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`3, 5. Ex-1002 ¶73.
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`Schutzer further discloses that the user’s computing device is “coupled” to
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`other devices (such as the card issuer’s server) over a “network, such as the
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`Internet” [communications interface]. Ex-1006, [0012]; see also id. [0018],
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`[0019], [0030]-[0032], [0037], [0040], [0041], Abstract. A POSITA would have
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`understood that a computing device such as a personal computer or a personal
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`digital assistant that could connect to the Internet would have comprised a
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`processor coupled to a communications interface, at least since both components
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`are required to connect to the Internet. Ex-1002 ¶¶74-75.
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`c.
`
`Petition for Inter Partes Review
`of U.S. Patent No. 9,928,495
`1[b]: “wherein the one or more processors are
`configured to: receive biometric information of the
`user; and”
`Schutzer discloses this limitation. In particular, Schutzer explains that “the
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`transaction card user authenticates himself or herself with the transaction card user
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`information at a local computing device, … by e