UNITED STATES PATENT AND TRADEMARK OFFICE
`_______________
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_____________
`
`
`APPLE INC.,
`Petitioner
`v.
`CARBYNE BIOMETRICS, LLC,
`Patent Owner
`
`_______________
`
`IPR2024-00329
`U.S. Patent No. 9,972,010
`_______________
`
`PETITION FOR INTER PARTES REVIEW
`UNDER 35 U.S.C. § 312 AND 37 C.F.R. § 42.104
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`IPR2024-00329 Petition
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`U.S. Patent No. 9,972,010
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`TABLE OF CONTENTS
`
`I.
`INTRODUCTION .................................................................................... 1
`II. MANDATORY NOTICES ........................................................................ 1
`A.
`Real Party-in-Interest ............................................................................ 1
`B.
`Related Matters ...................................................................................... 1
`C.
`Lead and Back-up Counsel and Service Information ........................... 1
`III. GROUNDS FOR STANDING .................................................................. 2
`IV. THE ’010 PATENT ................................................................................... 2
`A.
`Summary of the ’010 patent .................................................................. 2
`B.
`Prosecution History ............................................................................... 3
`LEVEL OF ORDINARY SKILL IN THE ART ......................................... 4
`V.
`VI. CLAIM CONSTRUCTION ...................................................................... 5
`VII. REQUESTED RELIEF ............................................................................. 5
`VIII. OVERVIEW OF CHALLENGES ............................................................. 6
`A.
`Challenged Claims ................................................................................ 6
`B.
`Statutory Grounds for Challenges ......................................................... 6
`IDENTIFICATION OF HOW THE CLAIMS ARE UNPATENTABLE .... 7
`A. Overview of Prior Art............................................................................ 7
`1.
`Stone ............................................................................................ 7
`2.
`Hoyos .......................................................................................... 8
`3.
`Varghese ....................................................................................10
`4.
`FFIEC Guidance .......................................................................12
`5.
`Analogous Art ...........................................................................13
`Ground 1: Claims 1-2, 4-6, 9-10, 12-14, 17, 20-21, and 23 are
`Rendered Obvious under §103(a) over Stone in view of Hoyos. .......14
`1.
`Combination of Disclosures/Embodiments of Stone ................14
`2.
`Combination of Stone and Hoyos (“Stone-Hoyos”) .................17
`3.
`Claim 1 ......................................................................................22
`
`IX.
`
`B.
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`IPR2024-00329 Petition
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`U.S. Patent No. 9,972,010
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`4.
`Claim 2 ......................................................................................47
`Claim 4 ......................................................................................49
`5.
`Claim 5 ......................................................................................51
`6.
`Claim 6 ......................................................................................52
`7.
`Claim 9 ......................................................................................53
`8.
`Claims 10, 12, 13, 14 ................................................................55
`9.
`10. Claim 17 ....................................................................................55
`11. Claim 20 ....................................................................................56
`12. Claim 21 ....................................................................................57
`13. Claim 23 ....................................................................................57
`Ground 2: Claims 7, 15, and 22 are Rendered Obvious under
`§103(a) over Stone-Hoyos-Varghese. .................................................60
`1.
`Combination of Stone, Hoyos, and Varghese (“Stone-
`Hoyos-Varghese”) .....................................................................60
`Claims 7 and 15.........................................................................64
`2.
`Claim 22 ....................................................................................67
`3.
`D. Ground 3: Claims 1-2, 4-7, 9-10, 12-15, 17, 20-23 are Rendered
`Obvious under §103(a) over Stone in view of FFIEC Guidance. .......68
`1.
`Combination of Stone and FFIEC Guidance (“Stone-
`Guidance”) ................................................................................68
`Claim 1 ......................................................................................70
`2.
`Claims 2, 4, 5, 6 ........................................................................78
`3.
`Claim 7 ......................................................................................79
`4.
`Claim 9 ......................................................................................81
`5.
`Claims 10, 12, 13, 14 ................................................................81
`6.
`Claim 15 ....................................................................................81
`7.
`Claim 17 ....................................................................................81
`8.
`Claim 20 ....................................................................................82
`9.
`10. Claim 21 ....................................................................................83
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`11. Claim 22 ....................................................................................84
`12. Claim 23 ....................................................................................84
`X. DISCRETIONARY DENIAL IS NOT WARRANTED ........................... 85
`A.
`The Fintiv factors favor institution. ....................................................86
`B.
`Advanced Bionics Test Favors Institution. ..........................................88
`XI. CONCLUSION ....................................................................................... 89
`XII. CERTIFICATE OF WORD COUNT ...................................................... 90
`CERTIFICATE OF SERVICE ...................................................................... 91
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`IPR2024-00329 Petition
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`U.S. Patent No. 9,972,010
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`PETITIONER’S EXHIBIT LIST
`January 30, 2024
`
` APPL-1001 U.S. Patent No. 9,972,010 to Jakobsson (“’010 patent”)
` APPL-1002 Prosecution File History of U.S. App. No. 13/875,245 (“’245
`App”)
` APPL-1003 Declaration of Dr. Creed Jones (“Jones Decl.”)
` APPL-1004 CV of Dr. Creed Jones
` APPL-1005 Prosecution File History of U.S. Prov. App. 61/332,140 (“’140
`App”)
` APPL-1006 Prosecution File History of U.S. App. No. 13/099,981 (“’981
`App”)
` APPL-1007 RESERVED
` APPL-1008 U.S. Pub. No. 2010/0042535 to Stone (“Stone”)
` APPL-1009 U.S. Patent No. 8,386,620 to Chatterjee (“Chatterjee”)
` APPL-1010 U.S. Pub. No. 2006/0282660 to Varghese et al. (“Varghese”)
` APPL-1011 U.S. Pub. No. 2009/0135188 to Ding et al. (“Ding”)
` APPL-1012 U.S. Patent No. 8,355,530 to Park et al. (“Park”)
` APPL-1013 U.S. Pub. No. 2010/0014720 to Hoyos et al. (“Hoyos”)
` APPL-1014 U.S. Pub. No. 2006/0158307 to Lee et al. (“Lee”)
` APPL-1015 U.S. Patent No. 8,150,772 to Mardikar et al. (“Mardikar”)
` APPL-1016 U.S. Pub. No. 2009/0157560 to Carter et al. (“Carter”)
` APPL-1017 U.S. Patent No. 5,164,992 to Turk et al. (“Turk”)
` APPL-1018 U.S. Patent No. 7,814,332 to Beenau et al. (“Beenau”)
` APPL-1019 U.S. Patent No. 10,373,173 to Winner et al. (“Winner”)
` APPL-1020 U.S. Patent No. 7,856,472 to Arav (“Arav”)
` APPL-1021 Heusch, et al., “Local Binary Patterns as an Image Preprocessing
`for Face Authentication,” IDIAP Research Institute Report,
`November 2005 (“Heusch”)
` APPL-1022 Oracle-Bharosa Acquisition Announcement, 2007,
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`IPR2024-00329 Petition
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`U.S. Patent No. 9,972,010
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`https://www.oracle.com/us/corporate/acquisitions/bharosa/oracle-
`bharosa-faq-072369.pdf (retrieved January 17, 2024) (“Oracle-
`Bharosa Acquisition Announcement”)
` APPL-1023 U.S. Patent No. 7,779,268 to Draper et al. (“Draper”)
` APPL-1024 U.S. Patent No. 5,930,804 to Yu et al. (“Yu”)
` APPL-1025 Interim Procedure for Discretionary Denials in AIA Post-Grant
`Proceedings with Parallel District Court Litigation (June 21,
`2022) (“Director Memo”)
` APPL-1026 Preliminary Constructions, Carbyne Biometrics, LLC v. Apple
`Inc., WDTX-1:23-cv-00324 (December 11, 2023)
` APPL-1027 United States District Courts—National Judicial Caseload Profile
`(September 30, 2023),
`https://www.uscourts.gov/statistics/table/na/federal-court-
`management-statistics/2023/09/30 (retrieved Dec. 14, 2023)
` APPL-1028 Scheduling Order, Carbyne Biometrics, LLC v. Apple Inc.,
`WDTX-1:23-cv-00324 (July 14, 2023)
`APPL-1029 Carbyne Preliminary Infringement Contentions, Carbyne
`Biometrics, LLC v. Apple Inc., WDTX-1:23-cv-00324 (June 21,
`2023)
`RESERVED
`
`APPL-1030
`-
`APPL-1032
`APPL-1033 J. P. Campbell, “Speaker Recognition: a Tutorial,” in
`Proceedings of the IEEE, vol. 85, no. 9, pp. 1437-1462, Sept.
`1997 (“Campbell”)
` APPL-1034 U.S. App. Pub. No. 2009/0288012A1 to Hertel et al. (“Hertel”)
` APPL-1035 U.S. Patent No. 8,533,485 to Bansal et al. (“Bansal”)
`APPL-1036 U.S. App. Pub. No. 2006/0271460A1 to Hanif (“Hanif”)
`APPL-1037 Federal Financial Institutions Examination Council, FFIEC Press
`Release and FFIEC Guidance - Authentication in an Internet
`Banking Environment, Oct 12, 2005,
`https://www.ffiec.gov/pdf/authentication_guidance.pdf (retrieved
`January 17, 2024), accessible through hyperlinks in
`https://www.ffiec.gov/press/pr101205.htm (APPL-1040) and
`https://www.fdic.gov/news/inactive-financial-institution-
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`letters/2005/fil10305.html (APPL-1039) (“Guidance”)
`APPL-1038 Bhargav-Spantzel et al., “Privacy Preserving Multifactor
`Authentication with Biometrics,” DIM’06, November 3, 2006
`(“Bhargav-Spantzel”)
`APPL-1039 FDIC Financial Institution Letter, FFIEC Guidance
`Authentication in an Internet Banking Environment, FIL-103-
`2005, October 12, 2005, https://www.fdic.gov/news/inactive-
`financial-institution-letters/2005/fil10305.html (retrieved January
`17, 2024), including hyperlink for APPL-1037 (“FIL-103-2005”)
`APPL-1040 Federal Financial Institutions Examination Council, FFIEC
`Guidance Press Release, Oct 12, 2005,
`https://www.ffiec.gov/press/pr101205.htm (retrieved January 17,
`2024), including hyperlink for APPL-1037 (“FFIEC Guidance
`Press Release”)
`APPL-1041 U.S. App. Pub. No. 2010/0317335A1 to Borovsky (“Borovsky”)
`APPL-1042 Ekler et al., “Similarity Management in Phonebook-Centric
`Social Networks,” 2009 Fourth International Conference on
`Internet and Web Applications and Services, Venice/Mestre,
`Italy, 2009, pp. 273-279, doi: 10.1109/ICIW.2009.46 (“Ekler”)
`APPL-1043 U.S. Patent No. 8,954,500 to Marlow et al. (“Marlow”)
`APPL-1044 Kollreider et al., “Verifying Liveness by Multiple Experts in
`Face Biometrics,” 2008 IEEE Computer Society Conference on
`Computer Vision and Pattern Recognition Workshops,
`Anchorage, AK, USA, 2008, pp. 1-6, doi:
`10.1109/CVPRW.2008.4563115 (“Kollreider”)
`APPL-1045 Narayanan et al., “De-anonymizing Social Networks,” 2009 30th
`IEEE Symposium on Security and Privacy, 2009 (“Narayanan”)
`APPL-1046 U.S. App. Pub. No. US2008/0270038A1 to Partovi et al.
`(“Partovi”)
`APPL-1047 Vasalou et al., “Avatars in Social Media: Balancing Accuracy,
`Playfulness and Embodied Messages,” International Journal of
`Human-Computer Studies Volume 66, Issue 11, November 2008,
`Pages 801-811 (“Vasalou”)
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`Claim 1
`
`[1.0]
`
`[1.1]
`
`[1.2]
`
`[1.3]
`
`[1.4]
`
`[1.5]
`
`[1.6]
`
`[1.7]
`
`[1.8]
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`IPR2024-00329 Petition
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`U.S. Patent No. 9,972,010
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`Listing of Challenged Claims
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`A system, comprising:
`
`one or more processors configured to:
`
`receive a virtual likeness of a face of an account holder;
`
`associate, in a data store, the virtual likeness of the face of the
`account holder with an account of the account holder;
`
`render, in an interface, the virtual likeness of the face of the
`account holder;
`
`render a transaction icon associated with an electronic transaction,
`wherein the transaction icon is rendered in the interface with the
`virtual likeness of the face of the account holder;
`
`receive an indication of an action taken by a user, the action
`comprising a user interaction with the transaction icon rendered in
`the interface with the virtual likeness of the face of the account
`holder;
`
`capture contextual information associated with the electronic
`transaction,
`the captured contextual
`information comprising
`captured biometric information associated with a user;
`
`perform a fraud detection analysis of the captured contextual
`information associated with the electronic transaction, wherein
`performing the fraud detection analysis comprises determining,
`based at least in part on the captured biometric information, that
`the user is alive; and
`
`based at least in part on both the user interaction with the
`transaction icon rendered in the interface with the virtual likeness
`of the face of the account holder and performing the fraud
`detection analysis comprising determining that the user is alive
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`[1.9]
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`Claim 2
`
`[2.0]
`
`Claim 4
`
`[4.0]
`
`Claim 5
`
`[5.0]
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`Claim 6
`
`[6.0]
`
`Claim 7
`
`[7.0]
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`Claim 9
`
`[9.0]
`
`[9.1]
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`based at least in part on the captured biometric information,
`complete the electronic transaction; and
`
`a memory coupled to the one or more processors and configured to
`provide the one or more processors with instructions.
`
`The system of claim 1 wherein the transaction icon includes a
`graphical representation of an amount of money.
`
`The system of claim 1 wherein the transaction icon includes a
`graphical representation of a payment form.
`
`The system of claim 1 wherein the virtual likeness comprises a
`photograph of the account holder.
`
`The system of claim 1 wherein the virtual likeness comprises an
`avatar selected by the account holder.
`
`The system of claim 1 wherein the captured contextual information
`further comprises at least one of physical location information and
`information spoken by the user.
`
`A method, comprising:
`
`receiving a virtual likeness of a face of an account holder;
`
`associating, in a data store, the virtual likeness of the face of the
`account holder with an account of the account holder;
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`
`[9.2]
`
`[9.3]
`
`[9.4]
`
`[9.5]
`
`[9.6]
`
`[9.7]
`
`Claim 10
`
`[10.0]
`
`Claim 12
`
`[12.0]
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`U.S. Patent No. 9,972,010
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`rendering, in an interface, the virtual likeness of the face of the
`account holder;
`
`icon associated with an electronic
`transaction
`rendering a
`transaction, wherein the transaction icon is rendered in the
`interface with the virtual likeness of the face of the account holder;
`
`receiving an indication of an action taken by a user, the action
`comprising a user interaction with the transaction icon rendered in
`the interface with the virtual likeness of the face of the account
`holder;
`
`capturing contextual information associated with the electronic
`transaction,
`the captured contextual
`information comprising
`captured biometric information associated with a user;
`
`performing a fraud detection analysis of the captured contextual
`information associated with the electronic transaction, wherein
`performing the fraud detection analysis comprises determining,
`based at least in part on the captured biometric information, that
`the user is alive; and
`
`based at least in part on both the user interaction with the
`transaction icon rendered in the interface with the virtual likeness
`of the face of the account holder and performing the fraud
`detection analysis comprising determining that the user is alive
`based at least in part on the captured biometric information,
`completing the electronic transaction.
`
`The method of claim 9 wherein the transaction icon includes a
`graphical representation of an amount of money.
`
`The method of claim 9 wherein the transaction icon includes a
`graphical representation of a payment form.
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`Claim 13
`
`[13.0]
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`Claim 14
`
`[14.0]
`
`Claim 15
`
`[15.0]
`
`Claim 17
`
`[17.0]
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`U.S. Patent No. 9,972,010
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`The method of claim 9 wherein the virtual likeness comprises a
`photograph of the account holder.
`
`The method of claim 9 wherein the virtual likeness comprises an
`avatar selected by the account holder.
`
`the captured contextual
`The method of claim 9 wherein
`information further comprises at least one of physical location
`information and information spoken by the user.
`
`A computer program product embodied in a non-transitory
`computer readable storage medium and comprising computer
`instructions for:
`
`[17.1]
`
`receiving a virtual likeness of a face of an account holder;
`
`[17.2]
`
`[17.3]
`
`[17.4]
`
`associating, in a data store, the virtual likeness of the face of the
`account holder with an account of the account holder;
`
`rendering, in an interface, the virtual likeness of the face of the
`account holder;
`
`icon associated with an electronic
`transaction
`rendering a
`transaction, wherein the transaction icon is rendered in the
`interface with the virtual likeness of the face of the account holder;
`
`receiving an indication of an action taken by a user, the action
`comprising a user interaction with the transaction icon rendered in
`the interface with the virtual likeness of the face of the account
`holder;
`
`[17.5]
`
`capturing contextual information associated with the electronic
`
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`[17.6]
`
`[17.7]
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`Claim 20
`
`[5.0]
`
`Claim 21
`
`[5.0]
`
`Claim 22
`
`[22.0]
`
`Claim 23
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`IPR2024-00329 Petition
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`U.S. Patent No. 9,972,010
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`information comprising
`the captured contextual
`transaction,
`captured biometric information associated with a user;
`
`performing a fraud detection analysis of the captured contextual
`information associated with the electronic transaction, wherein
`performing the fraud detection analysis comprises determining,
`based at least in part on the captured biometric information, that
`the user is alive; and
`
`based at least in part on both the user interaction with the
`transaction icon rendered in the interface with the virtual likeness
`of the face of the account holder and performing the fraud
`detection analysis comprising determining that the user is alive
`based at least in part on the captured biometric information,
`completing the electronic transaction.
`
`20. The system of claim 1 wherein the captured biometric
`information associated with the user includes a fingerprint.
`
`21. The system of claim 1 wherein the captured biometric
`information comprises a plurality of photographs, and wherein the
`fraud detection analysis comprises an analysis of the plurality of
`photographs to determine that the user is alive.
`
`The system of claim 1 wherein the captured contextual information
`further comprises captured physical
`location
`information
`associated with the user, and wherein performing the fraud
`detection analysis further comprises determining a physical
`location of the user based at least in part on the captured physical
`location information.
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`
`[23.0]
`
`[23.1]
`
`[23.2]
`
`[23.3]
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`IPR2024-00329 Petition
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`U.S. Patent No. 9,972,010
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`The system of claim 1 wherein the account holder comprises a first
`account holder, wherein the account comprises a first account, and
`wherein the one or more processors are further configured to:
`
`receive a virtual likeness of a face of a second account holder;
`associate, in the data store, the virtual likeness of the face of the
`second account holder with a second account of the second
`account holder; and
`
`render a destination image comprising the virtual likeness of the
`face of the second account holder; and
`
`wherein completing the electronic transaction based at least in part
`on both the user interaction with the transaction icon rendered in
`the interface with the virtual likeness of the face of the first
`account holder and performing the fraud detection analysis
`comprising determining that the user is alive based at least in part
`on the captured biometric information comprises transferring funds
`between the first account of the first account holder and the second
`account of the second account holder for which the destination
`image comprising the virtual likeness of the face of the second
`account holder was rendered.
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`I.
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`
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`IPR2024-00329 Petition
`U.S. Patent No. 9,972,010
`
`INTRODUCTION
`U.S. Patent No. 9,972,010 (the “’010 patent”) relates to “Method, Medium,
`
`and System for Reducing Fraud.” APPL-1001, Title, Abstract. Apple Inc.
`
`(“Petitioner” or “Apple”) respectfully requests that the Board review and cancel as
`
`unpatentable under (pre-AIA) 35 U.S.C. §103(a) claims 1-2, 4-7, 9-10, 12-15, 17,
`
`20-23 (“Challenged Claims”) of the ’010 patent.
`
`II. MANDATORY NOTICES
`A. Real Party-in-Interest
`Pursuant to 37 C.F.R. § 42.8(b)(1), Petitioner certifies that the real party-in-
`
`interest is Apple Inc.
`
`B. Related Matters
`Pursuant to 37 C.F.R. § 42.8(b)(2), the ’010 patent is or was involved in the
`
`following cases, which may affect, or be affected by, this proceeding:
`
`• Carbyne Biometrics, LLC v. Apple Inc., 1:23-cv-00324 (WDTX), filed
`
`March 24, 2023 (Pending) (“Parallel District Court Proceeding”)
`
`Apple is not aware of any disclaimers, reexamination certificates, or IPR
`
`petitions addressing the ’010 patent.
`
`C. Lead and Back-up Counsel and Service Information
`Lead Counsel
`
`David W. O’Brien
`Phone: (512) 867-8457
`HAYNES AND BOONE, LLP
`Fax: (214) 200-0853
`2801 N. Harwood St., Suite 2300
`david.obrien.ipr@haynesboone.com
`Dallas, TX 75201
`USPTO Reg. No. 40,107
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`IPR2024-00329 Petition
`U.S. Patent No. 9,972,010
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`
`Back-up Counsel
`Hong Shi
`HAYNES AND BOONE, LLP
`2801 N. Harwood St., Suite 2300
`Dallas, TX 75201
`
`Kelly Lyle
`HAYNES AND BOONE, LLP
`2801 N. Harwood St., Suite 2300
`Dallas, TX 75201
`
`
`
`Phone: (512) 867-8440
`Fax: (214) 200-0853
`hong.shi.ipr@haynesboone.com
`USPTO Reg. No. 69,009
`
`Phone: (512) 867-8528
`Fax: (214) 200-0853
`kelly.lyle.ipr@haynesboone.com
`USPTO Reg. No. 62,332
`
`Please address all correspondence to lead and back-up counsel. Petitioner
`
`consents to electronic service and asks Patent Owner to do the same.
`
`III. GROUNDS FOR STANDING
`Petitioner certifies that the ’010 patent is eligible for IPR and that Petitioner
`
`is not barred or estopped from requesting IPR challenging the patent claims. 37
`
`C.F.R. §42.104(a).
`
`IV. THE ’010 PATENT
`Summary of the ’010 patent
`A.
`The ’010 patent is directed at electronic transactions, and specifically
`
`financial transaction systems. APPL-1001, Abstract. As shown in FIG. 7 below,
`
`the ’010 patent describes that its improved techniques to prevent fraud include
`
`using an audio sample (by selecting box 704) or one or more photographs (by
`
`selecting box 702) for authentication. APPL-1003, ¶¶28-31.
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`U.S. Patent No. 9,972,010
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`APPL-1001, FIG. 7
`
`
`
`Specifically, ’010 patent describes techniques “for confirming that the object
`
`being photographed is alive (e.g., by taking multiple photographs in rapid
`
`succession) can be employed to help make sure that the fraudster isn’t using
`
`camera 112 to photograph a printed picture of the legitimate user.” APPL-1001,
`
`8:54-60.
`
`However, as discussed below, these supposedly improved techniques for
`
`fraud detection in electronic transactions were well-known at the time of the
`
`claimed invention.
`
`Prosecution History
`B.
`The prosecution history includes double patenting rejection and multiple
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`IPR2024-00329 Petition
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`U.S. Patent No. 9,972,010
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`rejections under 101 and 103, RCES, and responses by Applicant with
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`amendments amending the claims. APPL-1003, ¶¶32-35. Applicant filed terminal
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`disclaimer over U.S. Patent No. 8,458,041 to overcome the double patenting
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`rejection. APPL-1002, ’245 App, 126.
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`On March 27, 2018, Notice of Allowance issued, with Examiner
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`Amendment including “wherein performing the fraud detection analysis comprises
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`determining, based at least in part on the captured biometric information, that the
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`user is alive.” APPL-1002, 441-442.
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`V. LEVEL OF ORDINARY SKILL IN THE ART
`The level of ordinary skill in the art may be reflected by the prior art of
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`record. See Okajima v. Bourdeau, 261 F.3d 1350, 1355 (Fed. Cir. 2001). Here, a
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`Person of Ordinary Skill in the Art (“POSITA”) at the time of the claimed
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`invention would have had a bachelor’s degree in electrical engineering, computer
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`engineering, computer science, or a related field, and at least two years of
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`experience in the research, design, development, and/or testing of biometric
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`authentication techniques, and related firmware and software, or the equivalent,
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`with additional education substituting for experience and vice versa. APPL-1003,
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`¶20. Furthermore, a person with less formal education but more experience, or
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`more formal education but less experience, could have also met the relevant
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`IPR2024-00329 Petition
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`U.S. Patent No. 9,972,010
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`standard for POSITA. Id. However, Petitioner does not imply that a person having
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`an extraordinary level of skill should be regarded as POSITA.
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`VI. CLAIM CONSTRUCTION
`During IPR, claims are construed according to the standard as set forth in
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`Phillips v. AWH Corp., 415 F.3d 1303 (Fed. Cir. 2005) (en banc). 37 C.F.R.
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`§42.100(b) (Nov. 13, 2018). Petitioner believes that, for the purposes of this
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`proceeding and the analysis presented herein, no claim term requires express
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`construction. Vivid Techs., Inc. v. Am. Sci. & Eng’g, Inc., 200 F.3d 795, 803 (Fed.
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`Cir. 1999) (“only those terms need be construed that are in controversy, and only
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`to the extent necessary to resolve the controversy”). Accordingly, this Petition
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`analyzes the claims consistent with ordinary and customary meaning as would be
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`understood by POSITA in light of the specification.1 Phillips, 415 F.3d at 1314-17;
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`APPL-1003, ¶¶36-37.
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`VII. REQUESTED RELIEF
`Petitioner asks the Board to institute trial and cancel the Challenged Claims.
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`1 The District Court, at Markman hearing on December 11, 2023, indicated its
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`intention to adopt its preliminary constructions (APPL-1026), which apply plain
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`and ordinary meaning for terms in dispute.
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`VIII. OVERVIEW OF CHALLENGES
`A. Challenged Claims
`Claims 1-2, 4-7, 9-10, 12-15, 17, and 20-23 (“Challenged Claims”) of the
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`IPR2024-00329 Petition
`U.S. Patent No. 9,972,010
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`’010 patent are challenged.
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`B.
`Ground
`#1
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`#2
`#3
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`Statutory Grounds2 for Challenges
`Claims
`1-2, 4-6, 9-10, 12-14,
`17, 20-21, and 23
`7, 15, and 22
`1-2, 4-7, 9-10, 12-15,
`17, and 20-23
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`Basis
`§103(a) over Stone in view of Hoyos
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`§103(a) over Stone-Hoyos-Varghese
`§103(a) over Stone in view of FFIEC
`Guidance
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`Stone was filed Aug. 15, 2008 and published Feb. 18, 2010. Hoyos was filed
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`Oct. 2, 2007 and published Jan. 21, 2010. Stone and Hoyos each are prior art under
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`at least §§102(a) and 102(e).
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`Varghese was filed Apr. 28, 2006 and published Dec. 14, 2006. Varghese is
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`prior art under at least § 102(b).
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`FFIEC Guidance (also referred to as “Guidance”) was published October 12,
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`2005, and was prior art under at least §102(b). Dr. Jones testifies that the Guidance
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`was publicly accessible to a POSITA, and was widely referenced by numerous
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`articles and patent disclosures before 2010 as an important driver for implementing
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`2 Pre-AIA §§102 and 103(a) apply.
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`multifactor authentication
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`for electronic
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`IPR2024-00329 Petition
`U.S. Patent No. 9,972,010
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`including
`financial
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`transactions. APPL-1003, ¶¶47-50 (citing APPL-1039, APPL-1040, archive.org
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`links, Google Scholar cites, patent disclosures).
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`IX.
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`IDENTIFICATION OF HOW THE CLAIMS ARE UNPATENTABLE
`A. Overview of Prior Art
`Stone
`1.
`Stone is titled “Currency Display,” and assigned to eBay on its face. Stone is
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`analogous art to the ’010 patent, because it is directed to financial transaction
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`applications. APPL-1008, [0001]-[0005]; APPL-1003, ¶¶38-39.
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`As shown in FIG. 2 of Stone below, Stone describes a system for electronic
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`payment with improved electronic visual displays to provide the user with “a more
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`visually rich interface,” e.g., by providing visual representations of financial
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`instruments and the amount, and a visual representation when the monetary
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`amount is transferred. APPL-1008, [0016], FIGS. 1 and 3. Stone describes that its
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`system implementing user devices of different types (“mobile phone, laptop
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`computer, PDA, or personal computer,” or “other suitable device”) and various
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`communication connections (“the Internet and/or one or more intranets, landline
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`networks, wireless networks, and/or other appropriate types of communication
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`networks”). APPL-1008, [0022], [0024], [0041], [0044], [0046].
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`IPR2024-00329 Petition
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` APPL-1008, FIG. 2
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`2. Hoyos
`Hoyos is directed at fraud detection with “authentication for financial
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`transactions using biometrics.” APPL-1013, Abstract, [0002]; APPL-1003, ¶¶40-
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`44.
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`Hoyos identifies that “high levels of accuracy and speed are critical” for
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`authentication of financial transactions, identifies that one problem faced by
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`biometric recognition systems is “the possibility of spoofing,” e.g., “a life-sized,
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`high-resolution photograph of a person may be presented to an iris recognition
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`system.” APPL-1013, [0009], [0011]. To address these issues, as illustrated in FIG.
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`U.S. Patent No. 9,972,010
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`1 of Hoyos below, Hoyos describes an authentication method that has high levels
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`of accuracy and speed and protection against spoofing, which is based on a
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`combination of biometric match and liveness analysis. APPL-1013, [0017], [0012],
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`[0011], [0018]-[0021], claims 5-8 (describing various liveness determination
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`techniques based on “live, human eye,” “finger or palm temperature” etc.).
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`APPL-1013, FIG. 1
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`Hoyos provides that “by combining in one algorithm the live-person result
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`with the match result” in its biometric authentication, various advantages are
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`achieved, including addressing spoofing; “making it much more difficult for an
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`attempted fraudster to refine fraudulent methods” by eliminating clear feedback;
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`greatly reducing “the reject rate of true authentics” by using the liveness
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`IPR2024-00329 Petition
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`U.S. Patent No. 9,972,010
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`probability less sensitive to conditions like illumination changes; providing “an
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`enormous deterrent to criminals;” and by ensuring that some live-person data is
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`captured, providing “a means to perform customer redress.” APPL-1013, [0024],
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`[0026], [0027], [0029].
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`Hoyos describes various techniques to perform liveness detection in
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`biometric authentication system to improve fraud detection, where “the term
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`liveness being used herein for any step or steps taken to determine whether the
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`biometric data is being acquired from a live human rather than a fake due to a
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`spoof attempt.” APPL-1013, [0012], [0011], [0018]-[0021], claims 5-8 (describing
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`various liveness determination techniques based on “live, human eye [that] will
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`respond by dilating the pupil,” “whether the first reflection and the second
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`reflection were formed by a curved surface consistent with a human eye,”
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`“detecting a human eye when the first portion of the first image differs from the
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`second portion of the second image,” “measuring finger or palm temperature and
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`comparing the resultant measured temperature to expected temperature for a
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`human.”).
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`Varghese
`3.
`Varghese titled “System and Method for Fraud Monitoring, Detection, and
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`Tiered User Authentication” was filed by Bharosa Inc., “a leading provider of
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`fraud prevention and strong