IPR2022-01239
` PATENT NO. 10,600,046
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`__________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`__________________________________________________________________
`
`
`
`APPLE INC.,
`
`Petitioner,
`
`v.
`
`RFCYBER CORP.,
`Patent Owner.
`
`
`Patent No. 10,600,046
`Filing Date: June 2, 2015
`Issue Date: March 24, 2020
`
`Inventors: Xiangzhen Xie, Liang Seng Koh, and Hsin Pan
`Title: METHOD AND APPARATUS FOR MOBILE PAYMENTS
`
`
`__________________________________________________________________
`
`DECLARATION OF ALFRED C. WEAVER, Ph.D.
`
`Case No. IPR2022-01239
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`__________________________________________________________________
`
`
`
`
`
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`RFCyber's Exhibit No. 2001, IPR2022-01239
`Page 001
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` PATENT NO. 10,600,046
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`__________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`__________________________________________________________________
`
`
`
`APPLE INC.,
`
`Petitioner,
`
`v.
`
`RFCYBER CORP.,
`Patent Owner.
`
`
`Patent No. 10,600,046
`Filing Date: June 2, 2015
`Issue Date: March 24, 2020
`
`Inventors: Xiangzhen Xie, Liang Seng Koh, and Hsin Pan
`Title: METHOD AND APPARATUS FOR MOBILE PAYMENTS
`
`
`__________________________________________________________________
`
`DECLARATION OF ALFRED C. WEAVER, Ph.D.
`
`Case No. IPR2022-01239
`
`__________________________________________________________________
`
`
`
`
`
`
`RFCyber's Exhibit No. 2001, IPR2022-01239
`Page 001
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` IPR2022-01239
` PATENT NO. 10,600,046
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`TABLE OF CONTENTS
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`Page(s)
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`
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` I.
`
`INTRODUCTION 1
`A.
`Background and Qualifications ............................................................. 1
`1.
`Research and Professional Experience ....................................... 2
`2.
`Research and Professional Experience ....................................... 2
`3.
`Education .................................................................................... 9
`4.
`Patents ......................................................................................... 9
`COMPENSATION
`9
`II.
`III. MATERIALS CONSIDERED 10
`IV. LEGAL PRINCIPLES 10
`A.
`Level of Skill In the Art ......................................................................12
`THE ‘046 PATENT
`13
`V.
`VI. THE ALLEGED PRIOR ART 18
`A.
`Laracey (U.S. Pat. App. Pub. No. 2011/0251892) ..............................18
`B.
`Jogu (Japanese Patent No. 4901053) ..................................................21
`C.
`Tang (PCT No. 2009/116954) .............................................................23
`D. Dorsey (U.S. Patent No. 9,916,581) ....................................................24
`VII. CLAIM CONSTRUCTION
`24
`VIII. GROUND 1: LARACEY WITH JOGU DOES NOT DISCLOSE
`OR RENDER OBVIOUS CLAIMS 1-5, 12-14
`25
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`i
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`RFCyber's Exhibit No. 2001, IPR2022-01239
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`A.
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`The Combination Does Not Disclose or Render Obvious “an
`electronic purse (e-purse) maintained locally in the mobile
`device,” as Recited by Independent Claims 1 and 12 .........................25
`1.
`“e-purse” ...................................................................................25
`2.
`“maintained locally in the mobile device” ................................35
`The Combination Does Not Render Obvious “verifying the
`total amount with a balance in the e-purse, wherein said
`verifying the total amount with a balance in the e-purse is
`performed within the mobile device without sending the
`payment request to a payment gateway” Because a POSA
`Would Not Combine Laracey with Jogu .............................................41
`IX. GROUND 2: LARACEY WITH JOGU AND TANG DOES NOT
`RENDER CLAIM 17 OBVIOUS
`46
`X. GROUND 3: LARACEY WITH JOGU AND DORSEY DOES
`NOT RENDER OBVIOUS CLAIM 18
`46
`A.
`“electronic purse (e-purse) maintained locally in the mobile
`device” .................................................................................................47
`“wherein the payment request is denied within the mobile
`device without sending the payment request to the payment
`gateway” ..............................................................................................47
`XI. CONCLUSION
`48
`
`
`B.
`
`B.
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` PATENT NO. 10,600,046
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`ii
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`RFCyber's Exhibit No. 2001, IPR2022-01239
`Page 003
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`I, Alfred C. Weaver, Ph.D, declare as follows:
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`IPR2022-01239
`PATENT NO. 10,600,046
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`1. I have been asked by counsel for Patent Owner RFCyber Corp.
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`(“RFCyber” or “Patent Owner”) to review U.S. Patent No. 10,600,046
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`(the “’046 Patent”) entitled METHOD AND APPARATUS FOR
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`MOBILE PAYMENTS, and to provide my technical review, analysis,
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`insights, and opinions regarding the ’046 Patent in view of the prior art
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`cited by Petitioner Apple Inc. (“Apple” or “Petitioner”). I submit this
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`declaration in support of Patent Owner’s Response in this IPR
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`proceeding. I have personal knowledge of the matters stated herein and
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`would be competent to testify to them if required.
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`2. I have been retained on behalf of RFCyber Corp. for the above-captioned
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`inter partes review proceeding. I understand that the ’046 Patent is
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`currently assigned to RFCyber Corp.
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`3. I am over 18 years of age. I have personal knowledge of the facts stated
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`in this Declaration and could testify competently if asked to do so.
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`INTRODUCTION
`A. Background and Qualifications
`4. I have reviewed and am familiar with the specification of the ’046Patent.
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`I understand that the ’046 Patent has been provided as Exhibit 1001. I
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`I.
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`RFCyber's Exhibit No. 2001, IPR2022-01239
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`IPR2022-01239
`PATENT NO. 10,600,046
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`will cite to the specification using the following format: ’046Patent at
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`column:line.
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`Research and Professional Experience
`1.
`5. My CV is being submitted simultaneously herewith as Exhibit 2002.
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`Research and Professional Experience
`2.
`6. My qualifications for rendering the opinions set forth in this Declaration
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`are summarized here and further detailed in my curriculum vitae, which
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`is attached hereto as Exhibit 2002. Also included in that Exhibit is a list
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`of my 276 scientific publications.
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`7. I earned a Bachelor of Science in Engineering Science in 1971 from the
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`University of Tennessee. I then earned a Master of Science in Computer
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`Science from the University of Illinois at Urbana-Champaign in 1973.
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`Thereafter, I earned a Ph.D. in Computer Science from the University of
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`Illinois at Urbana-Champaign in 1976.
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`8. I accepted employment in the Department of Applied Mathematics and
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`Computer Science within the School of Engineering and Applied Science
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`(SEAS) at the University of Virginia (UVA) in 1977. I created UVA’s
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`first ever microcomputer class and laboratory to provide hands-on
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`experience to our students in what was then a very new and exciting field
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`of Computer Science (CS). I created UVA’s first class on computer
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`networks in 1980 during the early days of the internet’s use by
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`universities.
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`9. Computer Science at UVA became an independent department within
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`SEAS in 1984, and I served as the first Chair of the newly formed CS
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`department.
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`10. I created UVA’s first class on electronic commerce in 1995 soon after
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`America’s first internet browser (Netscape) was introduced as a
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`commercial product. I taught that e-commerce course yearly until the
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`ubiquity of e-commerce created sufficient student demand that the course
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`was thereafter offered every term to 50-70 students per semester. My
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`course covered the architecture of the internet and World Wide Web, web
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`programming languages, strategies and technologies for building
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`electronic commerce websites, computer and network security, e-
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`commerce security measures, electronic payments, protection of
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`intellectual property, and entrepreneurship.
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`11. I was employed continuously at UVA from 1977 until my retirement in
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`2020. Over my 43 years of employment at UVA I taught more than 25
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`different courses, including microcomputers, computer networks,
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`operating systems, computer architecture, electronic commerce, and
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`various seminar courses. Moreover, I was the proud graduate advisor for
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`69 master’s and PhD students, all in Computer Science.
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`12. In addition to my teaching duties, I was also the Founding Director of
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`UVa’s Applied Research Institute, a faculty group engaged in research
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`areas related to national security and funded by both government and
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`industry. To date, I have published 276 scientific publications, including
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`16 books and book chapters, 32 refereed journal articles, 148 refereed
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`conference publications, and 80 technical reports. I have given 87 invited
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`lectures worldwide plus 25 National Lectures sponsored by ACM
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`(Association for Computing Machinery), the preeminent professional
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`organization for computer scientists. For another prominent professional
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`society, The Institute of Electrical and Electronics Engineers (“IEEE”), I
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`have served in numerous capacities within its Computer Society and its
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`Industrial Electronics Society. I am currently a member of the Editorial
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`Board for the IEEE Computer Society’s flagship publication, Computer.
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`13. Within the IEEE, I was awarded the rank of Fellow (an honor awarded to
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`a maximum of 0.1% of the IEEE membership in any given year) for
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`contributions to the development of computer communications protocols.
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`14. I am a prolific researcher, having received over $22M in research
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`funding, and I have served as Principal Investigator or co-Principal
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`Investigator of 137 research projects funded by the federal government,
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`state governments, and private industry. Recent research projects include
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`3D printing, automated analysis of published scientific literature, secure
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`mobile computing, crowdsourcing, data integrity, and trustworthy
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`computing.
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`15. One of my most successful research projects (in terms of funding,
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`student employment, and social impact) was my participation in a group
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`of researchers (funded primarily by the U.S. Navy) who developed the
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`Xpress Transport Protocol. XTP introduced new concepts into the realm
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`of network communications, primarily reliable multicast data
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`transmission capabilities. XTP is used by military ships and aircraft for
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`simultaneous and reliable delivery of sensitive information to multiple
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`on-board systems, and XTP was subsequently adopted into Military
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`Standard 2204 (SAFENET, the Survivable Adaptable Fiber Optic
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`Embedded Network).
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`16. I have founded five companies. One of these, Network Xpress, Inc., was
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`a spin-off from my XTP work at UVA. At its peak, another of my
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`companies, Reliacast, Inc., employed 90 people and developed software
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`for secure streaming of multimedia transmissions. Reliacast was
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`ultimately sold to Comcast to power its streaming video products.
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`17. I have presented papers at numerous conferences and have served as
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`Program Chair or Technical Program Chair of numerous conferences
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`around the world. In addition, I was the Keynote Speaker at the
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`International Workshop on Privacy, Security, and Trust for Mobile
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`Devices (MobiPST’11), in Maui, Hawaii, in July 2011 on the topic of
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`“Providing Privacy and Security for Mobile Devices.” I was the Keynote
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`Speaker at the IEEE International Conference on Industrial Technology
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`(ICIT’05), in Hong Kong, in December 2005 on the topic of “Achieving
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`Data Privacy and Security Using Web Services.” I was the Keynote
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`Speaker at the IEEE International Conference on Emerging Technologies
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`and Factory Automation (ETFA’05), in Catania, Sicily, Italy, in
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`September 2005 on the topic of “A Security Architecture for Distributed
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`Data Security.”
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`18. I have authored or co-authored numerous refereed papers that have been
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`published in a variety of different technical journals. For example, with
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`my Ph.D. students I wrote the papers “Applications of Social Networks
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`and Crowdsourcing for Disaster Management Improvement,” published
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`in IEEE Computer, May 2016, and additionally “Crowdsourcing for
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`Emergency Response” (2016), “Social Networks to the Rescue! The
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`Power of Crowdsourced Data in Emergency Response” (2015), “m-
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`Health Applications for Emergency Response Improvement through
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`Crowdsourced Information” (2014), and “Mobile Electronic Triaging for
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`Emergency Response Improvement through Crowdsourced and Sensor-
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`Detected Information” (2013).
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`19. I have received funding for some of my research from various
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`Government agencies. For example, I received funding from the
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`Department of Defense in connection with my project “Crowdsourcing
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`the Crisis.” This work dealt with the use of computers, computer
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`networks, and social media to assist the Government and first responders
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`during emergency situations.
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`20. I have been an invited guest lecturer at numerous meetings sponsored by
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`various corporations around the world. For example, I spoke on “Reliable
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`Multicast and Reliable Group Management” for a meeting held at Sun
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`Microsystems in Palo Alto, California in July 1999. I gave a presentation
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`entitled “Xpress Transport Protocol” at a meeting sponsored by General
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`Electric Research and Development Laboratory, held in Schenectady,
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`New York, in December 1996. I was an invited speaker on the topic of
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`“Medical Data Privacy and Security” at the Microsoft Healthcare Users’
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`Group meeting in Redmond, Washington in 2006.
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`21. I served as the Lucian Carr III Professor of Engineering and Applied
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`Science at UVA from 2002-2004. I was a member of the Provost’s
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`Promotion and Tenure Committee at UVA during 2003-2006. In addition
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`to serving as the first Chair of CS at UVA, I also served as Associate
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`Chair of the CS department from 2015-2020. In 1996-1999 and again in
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`2012-2015, I served as a member of the Promotion and Tenure
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`Committee for the School of Engineering and Applied Science at UVA
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`and chaired that committee during 1998-1999 and 2014-2015.
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`22. I have also had the opportunity to consult with and/or work in the
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`commercial sector. For example, I received a $200,000 research grant
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`from Microsoft for my work in connection with the development of a
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`solution to the problems associated with the privacy and security of
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`medical data. In the past, I have consulted for General Electric, Lockheed
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`Martin, Honeywell, Raytheon, E-Systems and others. As mentioned
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`above, I founded five companies and have been involved in all aspects of
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`the life cycles of these companies from raising start-up capital funding, to
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`designing and developing products, to attempting to commercialize these
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`products in the marketplace.
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`23. I have served as an expert witness in 40 intellectual property cases, 38 of
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`which involved patent infringement allegations. Seven of those cases
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`PATENT NO. 10,600,046
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`have gone to trial. In the past four years, I have testified in court on one
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`occasion (Personalized Media Communications Inc. v. Apple Inc. in the
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`Eastern District of Texas (Marshall) in March 2021.
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`Education
`3.
`Ph.D., Computer Science, University of Illinois at Urbana-Champaign, 1976.
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`M.S., Computer Science, University of Illinois at Urbana-Champaign, 1973.
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`B.S., Engineering Science, University of Tennessee, 1971.
`
`
`Patents
`4.
`24. I am a named inventor on the following patent:
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`Process Control System That Controls Its Outputs According to the Results
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`of Successive Analysis of the Vertical Columns of a Hypothetical Ladder
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`Diagram, filed July 25, 1977, U. S. Patent Office, granted October 1980,
`
`number 4,217,658.
`
`
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`II. COMPENSATION
`25. My compensation for time worked on this proceeding is not dependent
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`on any issues related to the ’046 Patent, the outcome of this proceeding,
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`or the substance of my opinions. My compensation for time worked on
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`this proceeding is at my customary rate of $650/hour. I have no financial
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`interest in, or affiliation with, the Patent Owner or any of the real parties
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`in interest.
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`III. MATERIALS CONSIDERED
`26. In providing my technical review, analysis, insights, and opinions, I have
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`considered the ’046 Patent and its prosecution history.
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`27. I have also considered the Petition filed by the Petitioner in this
`
`proceeding and the relevant exhibits relied on by Petitioner, including the
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`expert declaration submitted by Gerald Smith.
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`28. I have also considered my own experience and knowledge, as discussed
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`above and described more fully in my CV.
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`IV. LEGAL PRINCIPLES
`29. I understand that a patent claim is unpatentable as “obvious” if the
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`subject matter of the claim as a whole would have been obvious to a
`
`person of ordinary skill in the art (POSA) as of the time of the invention
`
`at issue.
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`30. I understand that the use of “the person of ordinary skill” rubric is to
`
`prevent one from improperly, in the present day, using hindsight to
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`decide whether a claim is obvious.
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`31. I understand that the following factors must be evaluated to determine
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`whether the claimed subject matter is obvious: (1) the scope and content
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`PATENT NO. 10,600,046
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`of the prior art; (2) the difference or differences, if any, between the
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`scope of the patent claim and the scope of the prior art; and (3) the level
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`of ordinary skill in the art at the time of the invention.
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`32. I understand that certain secondary considerations, such as commercial
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`success, skepticism of experts, surprise, and copying, may provide
`
`evidence of non-obviousness. I further understand that such
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`considerations are often the most probative and determinative of
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`obviousness or non-obviousness.
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`33. I understand that, unlike anticipation, which allows consideration of only
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`one item of prior art, obviousness may be shown by considering more
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`than one item of prior art. I understand that, when considering a
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`combination of prior art references as part of an obviousness analysis, it
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`can be important to ascertain if the references are from the same field of
`
`endeavor and also to ascertain whether there is any reason that would
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`have prompted a person of ordinary skill in the relevant art to combine
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`the elements in the way the claim does. In other words, a claim generally
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`cannot be rendered obvious by combining (i) art from across different
`
`fields, including outside the field of the claimed invention, or (ii) art that
`
`itself teaches away from combination with other art that would otherwise
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`provide its missing limitations, or (iii) art for which there is not at least
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`an articulable, common sense reason to bridge the gap between its
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`disclosure and the claim at issue.
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`34. I understand that, to show that a claim would have been obvious over a
`
`combination, the patent challenger must show that a person of ordinary
`
`skill (POSA) would have had a reasonable expectation of successfully
`
`achieving the claimed invention from combination. I understand that a
`
`claim is not obvious just because all of the claimed limitations are present
`
`in the prior art. I understand that there must be some reason, suggestion,
`
`or motivation that would lead one of ordinary skill in the art to combine
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`the references.
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`35. Unless the inventor has either defined a term or disclaimed some
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`interpretation of it, I understand that I must construe a claim term in
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`accordance with the ordinary and customary meaning of the language of
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`such claim as understood by one of ordinary skill in the art in view of the
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`written description and the prosecution history pertaining to the patent.
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`A. Level of Skill In the Art
`36. I understand that I should perform my analysis from the viewpoint of a
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`person of ordinary skill in the art. I understand that this hypothetical
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`person of ordinary skill in the art is considered to have the normal skills
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`of a person in a certain technical field. I understand that factors that may
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`be considered in determining the level of ordinary skill in the art include:
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`(1) the education level of the inventor; (2) the types of problems
`
`encountered in the art; (3) the prior art solutions to those problems; (4)
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`rapidity with which innovations are made; (5) the sophistication of the
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`technology; and (6) the education level of active workers in the field.
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`37. In my opinion, a person of ordinary skill in the art as to the ’046 Patent
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`would have a Bachelor’s degree in computer engineering, computer
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`science, electrical engineering, or a related field, with one year of
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`experience in the field of mobile payment. Additional education may
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`substitute for the experience or vice versa.
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`V. THE ‘046 PATENT
`
`
`38. The ’046 Patent describes methods and apparatuses for secure contactless
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`payment using mobile devices. The inventors, Xiangzhen Xie, Liang
`
`Seng Koh, and Hsin Pan, recognized that existing payment methods were
`
`inefficient and time-consuming:
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`For many credit or debit card transactions, the payment process is
`started by a customer asking for a bill when checking out a purchase.
`A cashier or service member brings a bill to the customer for
`verification. The customer then hands out a credit/debit card to the
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`service member. The service member brings the card to a Point of
`Sales (POS) counter to initiate a transaction payment. The service
`member then brings back a receipt to the customer for signature to
`authorize the transaction. It is a lengthy process that typically takes a
`couple of minutes or much longer when the service member has to
`take care of multiple payment transactions at a time. In addition, in the
`case for the debit card transactions, the process may be even more
`troublesome when a PIN is needed to authorize the transaction at the
`POS.
`Ex. 1001 (the “’046 Patent”) at 1:25-39.
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`39. The inventors realized that the growing ubiquity of personal mobile
`
`devices allowed for the use of those devices in sales transactions:
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`With the advancement in mobile devices, it is anticipated that many
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`consumers will carry one with them. Thus there is an opportunity of
`
`using a mobile device to quickly settle the payment at a point of sale
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`(POS).
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`Id. at 1:40-44.
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`40. To solve these problems and address these needs, the inventors of the
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`’046 Patent developed an apparatus and method for using mobile devices
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`to quickly and efficiently settle payments:
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`The present invention is related to techniques for mobile devices
`configured to support settlement of charges in electronic invoices or
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`bills. According to one aspect of the present invention, a mobile
`device embedded with a secure element generates or is loaded with an
`electronic invoice. When the mobile device is brought to a consumer
`with an NFC mobile device, the data including the electronic invoice
`and other information regarding the mobile device or an owner thereof
`is read off wirelessly into the NFC mobile device. After the user
`verifies the amount being charged and authorizes the payment, the
`NFC mobile device communicates with a payment gateway or
`network for payment that is configured to proceed with the payment
`in accordance with a chosen payment method.
`
`Id. at 1:54-67.
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`41. The system of the ‘046 Patent makes use of a mobile device with a
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`locally maintained e-purse and an installed application to capture data
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`from a tag associated with a POS device, thereby facilitating mobile
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`payments:
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`‘046 Patent, Fig. 1A; see also id. at 5:29-7:3.
`
`42. The e-purse of the ‘046 Patent facilitates mobile payments, for example,
`
`using an installed application in the form of an applet that is provisioned,
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`personalized, and installed on the mobile device.
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`
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`RFCyber's Exhibit No. 2001, IPR2022-01239
`Page 019
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`
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`IPR2022-01239
`PATENT NO. 10,600,046
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`
`
`Id. at Fig. 3C; see also id. at 6:58-7:3, 8:43-53. The e-purse of the ‘046
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`Patent locally maintains financial information, for example an e-purse
`
`with a personalized applet uses a secure element (“SE”) to maintain
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`“personalized data for the application … [including] various personalized
`
`transaction keys generated based on the device information (e.g., CPLC
`
`info) of the SE … [and] Mifare access keys derived from an identifier
`
`(ID) of the Mifare card.” Id. at 11:17-28.
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`
`
`
`
`
`
`
`RFCyber's Exhibit No. 2001, IPR2022-01239
`Page 020
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`
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`IPR2022-01239
`PATENT NO. 10,600,046
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`
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`VI. THE ALLEGED PRIOR ART
`A. Laracey (U.S. Pat. App. Pub. No. 2011/0251892)
`43. U.S. Patent App. Pub. No. 2011/0251892 (Ex. 1004, “Laracey”) is
`
`directed to “means for using mobile devices to conduct payment
`
`transactions at merchant locations.” Laracey, Abstract. Laracey identified
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`difficulties in utilizing payment cards “associated with a single payment
`
`account” and in using “RFID chips or tags installed on mobile phones as
`
`a way to allow payment card information to be presented” in conjunction
`
`with “RFID readers installed” at a point of sale. Id. at [0004-5]. Laracey
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`further identifies an objective of allowing “users to choose among a
`
`variety of payment accounts” for a given transaction irrespective of the
`
`mobile device that they use. Id. at [0024-5] (“Sam has a mobile phone
`
`that has a web browser, and Jane has an Apple iPhone®. Sam will access
`
`and use the payment system of the present invention using his phone’s
`
`browser, while Jane will access and use the payment system of the
`
`present invention by downloading and configuring an iPhone®
`
`application… Using features of the present invention, customers such as
`
`Jane and Sam may use their mobile devices to pay for products or
`
`services at [POS] locations… Embodiments allow users to choose among
`
`
`
`RFCyber's Exhibit No. 2001, IPR2022-01239
`Page 021
`
`
`
`IPR2022-01239
`PATENT NO. 10,600,046
`
`a variety of payment accounts to use the most appropriate or most
`
`desirable payment account for a given transaction.”) To overcome these
`
`difficulties and address these objectives, Laracey adopts an approach in
`
`which a customer’s financial information is maintained on a server (e.g.,
`
`a Transaction Management System, Customer Management System, or
`
`Payment Account Management System) rather than on a mobile device.
`
`Id. at [0018], [0041], [0116-119], [0133-134].
`
`44. Instead of utilizing locally maintained financial information, Laracey
`
`utilizes a system of authentication based on “checkout tokens” based on
`
`which remotely-stored account or proxy information is accessed during a
`
`transaction. Laracey contemplates “a checkout token printed or otherwise
`
`displayed at a point of sale” which may be obtained by a user’s mobile
`
`device. Id., [0017], [0032]. Obtaining Laracey’s checkout token begins
`
`an authentication process which, if successful, results in a transaction
`
`management system (TMS) sending a “transaction detail message” to the
`
`mobile device. In addition, the TMS may send a “list of payment
`
`accounts the customer has registered with the system, including credit,
`
`debit, checking, prepaid and other types of accounts.” The customer can
`
`then see “a list of their payment accounts they can use to pay the
`
`merchant.” Id. at [0036].
`
`
`
`
`
`RFCyber's Exhibit No. 2001, IPR2022-01239
`Page 022
`
`
`
`IPR2022-01239
`PATENT NO. 10,600,046
`
`45. Laracey’s mobile device “never stores, sends or receives actual payment
`
`credentials. Instead the mobile device 102 stores or has access to a proxy
`
`associated with actual payment credentials, and the proxy is used to
`
`identify a desired payment account for use in a given transaction.” Id. at
`
`[0041]. The proxy is transmitted to the TMS, and the TMS does a lookup
`
`to identify the actual payment credentials to be submitted to a payment
`
`gateway. Id. at Fig. 6, [0134], [0142-3]. Laracey’s system ultimately
`
`completes a transaction once a payment processing network confirms the
`
`availability of funds, and the transaction management system sends
`
`authorization response messages (i.e., a “merchant payment authorization
`
`response message” and “customer payment authorization response
`
`message”) to the merchant and mobile device respectively. Id. at [0040],
`
`[0062], [0084].
`
`
`
`
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`RFCyber's Exhibit No. 2001, IPR2022-01239
`Page 023
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`
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`IPR2022-01239
`PATENT NO. 10,600,046
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`
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`Laracey, Fig. 6.
`
`
`
`B.
`
`Jogu (Japanese Patent No. 4901053)
`
`46. Japanese Patent No. 4901053 (Ex. 1005 or “Jogu”) is directed to “a
`
`service that mediates payments at virtual stores and brick-and-mortar
`
`stores on the internet.” Jogu at 3, Technical Field. Jogu identifies
`
`
`
`
`
`
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`RFCyber's Exhibit No. 2001, IPR2022-01239
`Page 024
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`
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`IPR2022-01239
`PATENT NO. 10,600,046
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`difficulties in conducting mobile payments where a “credit inquiry is
`
`required at the time of payment, and payment data need to be sent,” “in
`
`that it is necessary to emit radio waves at the time of payment, it cannot
`
`be used outside the radio wave range, and it takes time to complete the
`
`payment.” To address these difficulties, Jogu adopts the approach of
`
`“mediating payment between a seller and a buyer” where “[t]he mobile
`
`phone receives and stores the balance of the account sent from the mobile
`
`phone office” “wherein an account for accumulating the user’s money is
`
`set up on the server computer for each user.” Id. at 3, Disclosure of
`
`Invention.
`
`47. Jogu’s system requires that a customer preestablish one or more payment
`
`vehicles with the telephone company, and then prior to any use of the
`
`mobile phone to effect a mobile payment, the customer instructs the
`
`telephone company to transfer some amount of money from one or more
`
`preestablished financial accounts to a virtual account associated with a
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`customer’s telephone number. Id., Fig. 1; id. at 4, 2. Advance Payment
`
`Method ("As shown in FIG. 1, the mobile phone company (mobile phone
`
`office) 10 is provided with a personal information database 11. The
`
`personal information of each user 12 is registered in the personal
`
`information database 11. Specifically, a virtual account 110 is set up to
`
`
`
`
`
`RFCyber's Exhibit No. 2001, IPR2022-01239
`Page 025
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`
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`
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`IPR2022-01239
`PATENT NO. 10,600,046
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`accumulate advance payments (advance payments for mobile phone
`
`companies)… the user 12 uses the mobile phone 13 to transmit the
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`desired prepaid amount and the payment method (here, “added to the call
`
`charge”) to the mobile phone company 10.”). That transferred amount is
`
`a prepayment against future purchases.
`
`Jogu, Fig. 1.
`
`
`
`C. Tang (PCT No. 2009/116954)
`48. PCT Application No. WO No. 2009/116954 (Ex. 1006 or “Tang”) bears
`
`
`
`an international filing date of March 18, 2009, and is directed to
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`“distributing information in a barcode to perform a transaction via a
`
`network.” Tang, Abstract.
`
`
`
`RFCyber's Exhibit No. 2001, IPR2022-01239
`Page 026
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`
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`
`
`IPR2022-01239
`PATENT NO. 10,600,046
`
`D. Dorsey (U.S. Patent No. 9,916,581)
`49. U.S. Patent No. 9,916,581 (Ex. 1007 or “Dorsey”) was filed on
`
`November 17, 2011 and issued March 13, 2018. Dorsey is directed to
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`“[a] method of reconstructing a packet that includes financial card
`
`information from a mobile device [that] uses a card reader.” Dorsey,
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`Abstract.
`
`
`VII. CLAIM CONSTRUCTION
`50. I understand that the Petitioner has argued that the term e-purse should be
`
`construed as “software that stores electronic financial information,
`
`including electronic value, in a local portable device.” I understand that
`
`Patent Owner has submitted that “e-purse” should be construed as
`
`“software that stores electronic financial information in a local device.” I
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`further understand that two district courts have adopted Patent Owner’s
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`construction.
`
`51. While I agree that Patent O
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