UNITED STATES PATENT AND TRADEMARK OFFICE
`____________________
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________________
`APPLE INC.,
`Petitioner,
`
`v.
`PROXENSE, LLC,
`Patent Owner.
`____________________
`Case No. IPR2024-01333
`U.S. Patent No. 8,352,730
`____________________
`PETITION FOR INTER PARTES REVIEW
`
`

`

`IPR2024-01333
`U.S. Patent 8,352,730
`
`I. 
`II. 
`
`TABLE OF CONTENTS
`Relief Requested .............................................................................................. 1 
`The ’730 Patent ................................................................................................ 1 
`A.  Overview ............................................................................................... 1 
`III.  Claim Construction .......................................................................................... 4 
`IV.  Level of Ordinary Skill .................................................................................... 5 
`V.  Ground 1: Claims 1, 2, 4-6, 8, 9, 11, 12, and 14-17 Are Obvious Over
`Ludtke. ............................................................................................................. 5 
`A.  Overview of Prior Art Ludtke ............................................................... 5 
`B. 
`Claims .................................................................................................... 9 
`1. 
`Independent claim 1 .................................................................... 9 
`a. 
`[1preamble]: “A method for verifying a user during
`authentication of an integrated device, comprising
`the steps of:” ..................................................................... 9 
`[1ai]: “persistently storing biometric data of the user
`[in a tamper proof format written to a storage
`element on the integrated device that is unable to be
`subsequently altered]” .................................................... 11 
`[1aii]: “[persistently storing] a plurality of codes and
`other data values comprising a device ID code
`uniquely identifying the integrated device [in a
`tamper proof format written to a storage element on
`the integrated device that is unable to be
`subsequently altered]” .................................................... 14 
`[1aiii]: “[persistently storing] a secret decryption
`value in a tamper proof format written to a storage
`element on the integrated device that is unable to be
`subsequently altered;” ..................................................... 16 
`
`b. 
`
`c. 
`
`d. 
`
`i
`
`

`

`e. 
`
`f. 
`
`g. 
`
`h. 
`
`IPR2024-01333
`U.S. Patent 8,352,730
`[1b]: “wherein the biometric data is selected from a
`group consisting of a palm print, a retinal scan, an
`iris scan, a hand geometry, a facial recognition, a
`signature recognition and a voice recognition;” ............. 23 
`[1c]: “responsive to receiving a request for a
`biometric verification of the user, receiving scan
`data from a biometric scan;” ........................................... 23 
`[1d]: “comparing the scan data to the biometric data
`to determine whether the scan data matches the
`biometric data;” .............................................................. 25 
`[1e]: “responsive to a determination that the scan
`data matches the biometric data, wirelessly sending
`one or more codes from the plurality of codes and
`the other data values for authentication by an agent
`that is a third-party trusted authority possessing a
`list of device ID codes uniquely identifying
`legitimate integrated devices, wherein the one or
`more codes and other data values includes the
`device ID code; and” ...................................................... 25 
`[1f]: “responsive to authentication of the one or
`more codes and the other data values by the agent,
`receiving an access message from the agent
`allowing the user access to an application, wherein
`the application is selected from a group consisting
`of a casino machine, a keyless lock, a garage door
`opener, an ATM machine, a hard drive, computer
`software, a web site and a file.” ...................................... 32 
`Claim 2: “The method of claim 1, wherein the one or more
`codes and the other data values are transmitted to the agent
`over a network.” ........................................................................ 36 
`Claim 4: “The method of claim 1, wherein the one or more
`codes and the other data values indicate that the biometric
`verification was successful.” ..................................................... 36 
`
`i. 
`
`2. 
`
`3. 
`
`ii
`
`

`

`4. 
`
`5. 
`
`6. 
`
`b. 
`
`c. 
`
`IPR2024-01333
`U.S. Patent 8,352,730
`Claim 5: “The method of claim 1, wherein the biometric
`data and the scan data are both based on a fingerprint scan
`by the user.” .............................................................................. 38 
`Claim 6: “The method of claim 1, further comprising:
`establishing a secure communication channel prior to
`sending the one or more codes and the other data values for
`authentication” .......................................................................... 38 
`Independent Claim 8 ................................................................. 39 
`a. 
`[8preamble]: “An integrated device for verifying a
`user during authentication of the integrated device,
`comprising:” ................................................................... 39 
`[8ai]: “a memory stores biometric data of a user,
`and” ................................................................................. 39 
`[8aii]: “a plurality of codes and other data values
`comprising a device ID code uniquely identifying
`the integrated device, and” ............................................. 39 
`[8aiii]: “a secret decryption value in a tamper proof
`format written to the memory that is unable to be
`subsequently altered;” ..................................................... 39 
`[8b]: “wherein the biometric data is selected from a
`group consisting of a palm print, a retinal scan, an
`iris scan, a hand geometry, a facial recognition, a
`signature recognition and a voice recognition;” ............. 39 
`[8c]: “a verification unit, in communication with the
`memory, receives scan data from a biometric scan
`for comparison against the biometric data, and if the
`scan data matches the biometric data, wirelessly
`sends one or more codes from the plurality of codes
`and the other data values for authentication by an
`agent that is a third-party trusted authority
`possessing a list of device ID codes uniquely
`identifying legitimate integrated devices, wherein
`
`d. 
`
`e. 
`
`f. 
`
`iii
`
`

`

`7. 
`
`8. 
`
`9. 
`
`g. 
`
`IPR2024-01333
`U.S. Patent 8,352,730
`the one or more codes and the other data values
`includes the device ID code; and” .................................. 40 
`[8d]: “responsive to the agent authenticating the one
`or more codes and the other data values, a radio
`frequency communicator, receives an access
`message from the agent allowing the user access to
`an application, wherein the application is selected
`from a group consisting of a casino machine, a
`keyless lock, a garage door opener, an ATM
`machine, a hard drive, computer software, a web
`site and a file.” ................................................................ 41 
`Claim 9: “The integrated device of claim 8, wherein the one
`or more codes and the other data values are transmitted to
`the agent over a network.” ........................................................ 42 
`Claim 11: “The integrated device of claim 8, wherein the
`verifier comprises: an LED to be activated for requesting
`the biometric scan.”................................................................... 42 
`Independent Claim 12 ............................................................... 45 
`a. 
`[12preamble]: “A method for authenticating a
`verified user using a computer processor configured
`to execute method steps, comprising:” ........................... 45 
`[12a]: “receiving one or more codes from a plurality
`of codes and other data values including a device ID
`code, wherein the plurality of codes and the other
`data values comprises the device ID code uniquely
`identifying the integrated device and a secret
`decryption value associated with a biometrically
`verified user, the device ID code being registered
`with an agent that is a third-party trusted authority
`possessing a list of device ID codes uniquely
`identifying legitimate integrated devices” ...................... 47 
`[12b]: “requesting authentication of the one or more
`codes and the other data values by the agent,
`wherein the authentication determines whether the
`
`b. 
`
`c. 
`
`iv
`
`

`

`d. 
`
`e. 
`
`c. 
`
`d. 
`
`IPR2024-01333
`U.S. Patent 8,352,730
`one or more codes and the other data values are
`legitimate;” ..................................................................... 50 
`[12c]: “receiving an access message from the agent;
`and;” ................................................................................ 50 
`[12d]: “in response to a positive access message,
`allowing the biometrically verified user access to an
`application, wherein the application is selected from
`a group consisting of a casino machine, a keyless
`lock, a garage door opener, an ATM machine, a
`hard drive, computer software, a web site and a
`file.” ................................................................................ 51 
`10.  Claim 14: “The method of claim 12, further comprising:
`establishing a secure communications channel with a
`biometric key, wherein the one or more codes and the other
`data values associated with the biometrically verified user is
`received from the biometric key. .............................................. 51 
`Independent claim 15 ................................................................ 51 
`a. 
`[15preamble]: “A system, comprising:” ......................... 51 
`b. 
`[15ai]: “a biometric key stores biometric data of a
`user” ................................................................................ 52 
`[15aii]: “and a plurality of codes and other data
`values comprising a device ID code uniquely
`identifying the biometric key” ........................................ 53 
`[15aiii]: “and a secret decryption value in a tamper
`proof format written to a storage element on the
`biometric key that is unable to be subsequently
`altered,” ........................................................................... 53 
`[15aiv]: “and if scan data can be verified as being
`from the user by comparing the scan data to the
`biometric data, wirelessly sending, one or more
`codes from the plurality of codes and other data
`
`11. 
`
`e. 
`
`v
`
`

`

`f. 
`
`g. 
`
`IPR2024-01333
`U.S. Patent 8,352,730
`values wherein the one or more codes and the other
`data values include the device ID code,” ........................ 53 
`[15av]: “and the biometric data is selected from a
`group consisting of a palm print, a retinal scan, an
`iris scan, a hand geometry, a facial recognition, a
`signature recognition and a voice recognition; and” ...... 53 
`[15b]: “an authentication unit receives the plurality
`of codes and the other data values and send the
`plurality of codes and the other data values to agent
`for authentication to determine whether the one or
`more codes and the other data values are legitimate,
`wherein the agent is a third-party trusted authority
`possessing a list of device ID codes uniquely
`identifying legitimate integrated devices,” ..................... 54 
`[15c]: “and responsive to the device ID code being
`authenticated, the authentication unit receiving an
`access message from the agent allowing the user to
`access an application, wherein the application is
`selected from a group consisting of a casino
`machine, a keyless lock, a garage door opener, an
`ATM machine, a hard drive, computer software, a
`web site and a file.” ........................................................ 56 
`12.  Claim 16: “The system of claim 15, wherein the biometric
`key receives an authentication request from the
`authentication unit, and in response, requests a biometric
`scan from the user to generate the scan data.” .......................... 56 
`13.  Claim 17: “The system of claim 15, wherein if the
`biometric key cannot verify the scan data as being from the
`user, it does not send the one or more codes and the other
`data values.” .............................................................................. 58 
`VI.  Ground 2: Claims 3, 10, and 13 are Obvious Over Ludtke and Kon. ........... 60 
`A.  Kon ...................................................................................................... 60 
`B. 
`Claims .................................................................................................. 64 
`
`h. 
`
`vi
`
`

`

`2. 
`
`3. 
`
`1. 
`
`IPR2024-01333
`U.S. Patent 8,352,730
`Claim 3: “The method of claim 1, further comprising:
`registering an age verification for the user in association
`with the device ID code.” .......................................................... 64 
`Claim 10: “The integrated device of claim 9, wherein an
`age verification is registered in association with the device
`ID code.” ................................................................................... 69 
`Claim 13: “The method of claim 12, further comprising:
`registering a date of birth or age with the agent.” ..................... 69 
`VII.  Discretionary Denial Is Not Warranted ......................................................... 69 
`A.  Discretionary Denial Is Not Warranted Under Fintiv ......................... 69 
`B. 
`Discretionary Denial Is Not Warranted Under General Plastics ........ 70 
`C. 
`Discretionary Denial is Not Warranted under § 325(d). ..................... 72 
`VIII.  Mandatory Notices ......................................................................................... 75 
`A. 
`Real Parties-in-Interest Under 37 C.F.R. § 42.8(b)(1) ........................ 75 
`B. 
`Related Matters Under 37 C.F.R. § 42.8(b)(2) ................................... 75 
`C. 
`Lead and Back-Up Counsel Under 37 C.F.R. § 42.8(b)(3) ................ 76 
`D. 
`Service Information Under 37 C.F.R. § 42.8(b)(4) ............................. 77 
`IX.  Standing ......................................................................................................... 77 
`X. 
`Conclusion ..................................................................................................... 77 
`
`
`
`
`
`
`vii
`
`

`

`IPR2024-01333
`U.S. Patent 8,352,730
`
`TABLE OF AUTHORITIES
`
`Cases
`Alcon Inc. v. AMO Dev., LLC, IPR2021-00843, Paper 15 (PTAB Nov.
`12, 2021) ............................................................................................................. 10
`Code200, UAB v. Bright Data, Ltd., IPR2022-00861, Paper 18 (PTAB
`Aug. 23, 2022) .................................................................................................... 72
`Gen. Plastic Indus. Co. v. Canon Kabushiki Kaisha, IPR2016-01357,
`Paper 19 (PTAB Sept. 6, 2017) .......................................................................... 70
`Intel Corp. v. Qualcomm Inc., 21 F.4th 801 (Fed. Cir. 2021) ................................. 10
`Realtime Data, LLC v. Iancu, 912 F.3d 1368 (Fed. Cir. 2019) ................................. 5
`Target Corp. v. Proxicom Wireless, LLC, IPR2020-00931, Paper 10
`(PTAB Nov. 10, 2020) ........................................................................................ 10
`Zillow Grp., Inc. v. Int’l Bus. Machs. Corp., IPR2020-01656, Paper 8
`(PTAB Mar. 15, 2021) ........................................................................................ 10
`Federal Statutes
`35 U.S.C. § 102(b) ............................................................................................. 57-58
`35 U.S.C. § 102(e) ................................................................................................. 5-7
`35 U.S.C. § 103 .......................................................................................................... 1
`35 U.S.C. § 325(d) ............................................................................................. 70-72
`Regulations
`37 C.F.R. § 42.8(b)(1) .............................................................................................. 73
`37 C.F.R. § 42.8(b)(2) .............................................................................................. 73
`37 C.F.R. § 42.8(b)(3) .............................................................................................. 74
`37 C.F.R. § 42.8(b)(4) .............................................................................................. 75
`
`
`
`viii
`
`

`

`IPR2024-01333
`U.S. Patent 8,352,730
`
`
`LIST OF EXHIBITS
`
`Ex. 1007
`
`Description
`Exhibit
`Ex. 1001 U.S. Patent No. 8,352,730 (“the ’730 patent”)
`Ex. 1002 File History of U.S. Patent No. 8,352,730
`Ex. 1003 Declaration of Stephen Gray (Decl.)
`Ex. 1004 Curriculum Vitae of Stephen Gray
`Ex. 1005 U.S. Patent No. 7,188,110 to Ludtke et al. (“Ludtke”)
`Ex. 1006 U.S. Patent Application Publication No. 2002/0046336 to Kon et al.
`(“Kon”)
`Samsung Electronics America, Inc. v. Proxense, LLC, IPR2021-
`01444, Paper 11 (PTAB Feb. 28, 2022).
`Ex. 1008 Proxense, LLC v. Google LLC, Case No. 6:23-cv-00320, Dkt. No.
`31, Scheduling Order (W.D. Tex Aug. 18, 2023)
`Ex. 1009 Proxense, LLC v. Samsung Electronics Co., Ltd., Case No. 6:21-cv-
`00210, Dkt. No. 43, Claim Construction Order (W.D. Tex. Jan. 18,
`2022).
`Ex. 1010 Proxense, LLC v. Samsung Electronics Co., Ltd., Case No. 6:21-cv-
`00210, Dkt. No. 149, Memorandum in Support of Claim
`Construction Order (W.D. Tex. Dec. 28, 2022).
`Ex. 1011 Request for Reexamination, No. 90/015,052 (June 8, 2022).
`Ex. 1012 Proxense, LLC v. Google LLC, Case No. 6:23-cv-00320, Dkt. No. 1,
`Complaint (W.D. Tex. May 2, 2023)
`Ex. 1013 Proxense, LLC v. Google LLC, Case No. 6:23-cv-00320, Preliminary
`Infringement Contentions (W.D. Tex. July 24, 2023).
`
`Ex. 1014 CERTIFICATION REPORT No. P165: Sony FeliCa Contactless
`Smart Card RC-S860, UK IT Security Evaluation and Certification
`Scheme (Mar. 2002).
`
`ix
`
`

`

`IPR2024-01333
`U.S. Patent 8,352,730
`
`Description
`Exhibit
`Ex. 1015 U.S. Patent Application Publication No. 2002/0049806 to Gatz et al.
`(“Gatz”)
`Ex. 1016 U.S. Patent Application Publication No. 2006/0034492 to Siegel et
`al. (“Siegel”)
`Ex. 1017 U.S. Patent Application Publication No. 2001/0036297 to Ikegami et
`al. (“Ikegami”)
`Ex. 1018 Proxense, LLC v. Google LLC, Case No. 6:23-cv-00320, Dkt. No.
`45, Proxense’s Responsive Claim Construction Brief (W.D. Tex.
`Dec. 1, 2023).
`Ex. 1019 Proxense, LLC v. Google LLC, Case No. 6:23-cv-00320, Dkt. No.
`45, Proxense’s Expert Transcript (W.D. Tex. Dec. 18, 2023).
`Ex. 1020 Decision on Petition, Ex Parte Reexamination No. 90/015,052 (Jan.
`3, 2024).
`Ex. 1021 Order Granting Request for Ex Parte Reexamination, Ex Parte
`Reexamination No. 90/015,052 (Aug. 2, 2022).
`Ex. 1022 Proxense, LLC v. Google LLC, Case No. 6:23-cv-00320, Dkt. No.
`50, Proxense’s Sur-Reply Claim Construction Brief (W.D. Tex. Jan.
`5, 2024).
`Ex. 1023 U.S. District Courts—National Judicial Caseload Profile, available
`at
`https://www.uscourts.gov/sites/default/files/data_tables/fcms_na_dis
`tcomparison0930.2023.pdf (retrieved Jan. 15, 2024).
`Ex. 1024 Final Rejection, Ex Parte Reexamination No. 90/015,053 (Mar. 4,
`2024).
`Ex. 1025 Correspondence to Proxense, dated May 20, 2024
`Ex. 1026 Applications and Ex Parte Reexamination related to the ’730 Patent
`
`EX. 1027
`
`Proxense, LLC v. Apple, Inc., Case No. 6-24-cv-00143, Dkt. 29,
`Scheduling Order (W.D. Tex)
`
`EX. 1028 U.S. District Courts—National Judicial Caseload Profile, available
`
`x
`
`

`

`IPR2024-01333
`U.S. Patent 8,352,730
`
`Exhibit
`
`Description
`
`at:
`https://www.uscourts.gov/sites/default/files/data_tables/fcms_na_d
`istprofile0630.2024.pdf (retrieved Aug. 20, 2024).
`
`EX. 1029 Docket Sheet for Proxense, LLC v. Apple, Inc., Case No. 6-24-cv-
`00143 (W.D. Tex) (pulled Aug. 20, 2024)
`
`EX. 1030 Proxense, LLC v. Google LLC, Case No. 6:23-cv-00320, Dkt. No.
`59, Claim Construction Order (W.D. Tex. Jan. 23, 2024)
`
`EX. 1031
`
`Proxense, LLC v. Microsoft Corp., Case No. 6:23-cv-00319, Dkt.
`No. 66, Claim Construction Order (W.D. Tex. May 24, 2024)
`
`
`
`xi
`
`

`

`IPR2024-01333
`U.S. Patent No. 8,352,730
`
`I.
`
`Relief Requested
`Apple Inc. (Petitioner) requests inter partes review of claims 1-6 and 8-17 of
`
`U.S. Patent No. 8,352,730 (“the ’730 patent”) based on the following grounds
`
`(Decl., 70-71):
`
`Ground
`1
`
`Claim(s) Challenged
`1, 2, 4-6, 8, 9, 11, 12, and
`14-17
`
`35 U.S.C. §
`103
`
`Reference(s)
`Ludtke
`
`2
`
`3, 10, 13
`
`103
`
`Ludtke and Kon
`
`II. The ’730 Patent
`A. Overview
`The ’730 patent was filed on December 20, 2005 and claims priority to
`
`provisional applications filed on December 20, 2004 and February 14, 2005. Ex.
`
`1001, cover page. The ’730 patent generally relates to “authentication responsive
`
`to biometric verification.” Ex. 1001, 1:16-19.
`
`Figure 6 illustrates a process for “verifying a subject” using a biometric key.
`
`Ex. 1001, 6:65-67, FIG. 6. As shown in Figure 6, the device receives biometric
`
`scan data, such as a fingerprint scan, from the user (step 620). Ex. 1001, FIG. 6. If
`
`the scan data matches “previously-stored biometric data,” (step 630), the user is
`
`“verified” (step 640), at which point a “code” is sent to a trusted key authority
`
`(step 650). Ex. 1001, 7:3-14, FIG. 6.
`
`
`
`1
`
`

`

`IPR2024-01333
`U.S. Patent No. 8,352,730
`
`
`
`Ex. 1001, FIG. 6.
`
`Once the code is received, as illustrated in Figure 7, the trusted key authority
`
`determines whether the code is “authentic” (step 730). Ex. 1001, 7:15-18, FIG. 7.
`
`“If authentication is successful, the trusted key authority sends an access message
`
`to [an] application to allow user access and/or provide additional information from
`
`the profile” (step 740). Ex. 1001, 7:18-21, FIG. 7. If authentication is not
`
`
`
`2
`
`

`

`IPR2024-01333
`U.S. Patent No. 8,352,730
`
`successful, authentication fails (step 750) and “the message to the application
`
`indicates that the user should be denied access.” Ex. 1001, 7:21-23, FIG. 7; Decl.,
`
`46-48.
`
`Ex. 1001, FIG. 7.
`
`
`
`
`
`3
`
`

`

`IPR2024-01333
`U.S. Patent No. 8,352,730
`
`III. Claim Construction
`In a previous institution decision, the Board “interpreted” the term “third-
`
`party trusted authority” as recited in the ’730 patent to mean “a trusted authority
`
`that is an entity separate from the parties to a transaction.” Ex. 1007 at 15.
`
`In the previous district court litigation, Proxense, LLC v. Samsung
`
`Electronics Co., Ltd., Case No. 6-21-cv-00210, two terms from the ’730 patent
`
`were construed by the court (Exs. 1009-1010):
`
` Device ID Code – “[a] unique code identifying a device”
`
` Access Message – “[a] signal or notification enabling or announcing
`
`access.”
`
`Ex. 1009, 3; Ex. 1010, 15, 20; Decl., 49-53.
`
`Because the prior art in this Petition discloses each of these prior
`
`constructions, and the plain and ordinary meaning of all terms, Petitioner submits
`
`that no claim terms need to be construed to resolve unpatentability in this Petition1
`
`
`
`1 Additional claim terms were construed in other proceedings relating the ’730
`
`patent, but the Board need not resolve those terms because the Grounds relied on
`
`in this petition render the challenged claims obvious under either the plain and
`
`
`
`4
`
`

`

`IPR2024-01333
`U.S. Patent No. 8,352,730
`
`(Realtime Data, LLC v. Iancu, 912 F.3d 1368, 1375 (Fed. Cir. 2019)).
`
`IV. Level of Ordinary Skill
`A person of ordinary skill in the art (“POSITA”) at the time of the purported
`
`invention would have had at least a bachelor’s degree in Computer or Electrical
`
`Engineering or an equivalent engineering discipline, and at least three years of
`
`experience in the field of encryption and security, or the equivalent. Decl., 31-32,
`
`54-56. Additional education could substitute for professional experience, and
`
`significant work experience could substitute for formal education. Decl., 55.
`
`V. Ground 1: Claims 1, 2, 4-6, 8, 9, 11, 12, and 14-17 Are Obvious Over
`Ludtke.
`A. Overview of Prior Art Ludtke
`Ludtke, filed December 11, 2000, is prior art under at least 35 U.S.C.
`
`§ 102(e). Ludtke, cover page. Ludtke discloses systems and methods of authorizing
`
`a user to conduct a transaction using a “biometric device” (also called a
`
`“transaction device”) such as a privacy card and/or digital wallet. Ludtke, Abstract,
`
`3:32-36, 6:36-44. The transaction device includes a processor, memory, and
`
`fingerprint recognition technology. Ludtke, 5:60-64, FIG. 7A. Ludtke stores
`
`
`
`ordinary meaning or the alternate constructions adopted in the other proceedings.
`
`See EX. 1030, EX. 1031.
`
`
`
`5
`
`

`

`IPR2024-01333
`U.S. Patent No. 8,352,730
`
`“authorized fingerprint recognition samples,” a device ID corresponding to the
`
`privacy card, and a public key infrastructure (“PKI”) on the transaction device.
`
`Ludtke, 11:66-12:7, 14:19-21, 38:26-29. Ludtke also indicates that the biometric
`
`device can use other techniques, such as a “retinal scan, voice, DNA, hand profile,
`
`face recognition, etc.,” instead of or in addition to fingerprints. Ludtke, 35:61-64.
`
`When an authorized user attempts to use the transaction device, e.g., at a
`
`point of sale (“POS”) terminal, or other “service,” the user is “prompted to supply
`
`a fingerprint recognition sample,” as an initial security measure. Ludtke, 1:22-31,
`
`1:37-38, 14:33-42, 18:45-50, 18:52-55. The sample is compared to stored
`
`fingerprints and if the sample is recognized, the user is authorized. Ludtke, 14:40-
`
`46.
`
`In one embodiment, “the transaction device is used to trigger shopping
`
`activity” such as a “web-based transaction using a transaction device such as a
`
`privacy card and/or digital wallet and a personal POS terminal” by “clicking on a
`
`‘Buy!’ or similar button in the web browser.” Ludtke, 28:15-18, 28:26-40, 28:34-
`
`35. The POS asks the transaction device to “validate the user” and the user is
`
`“prompted to supply a fingerprint recognition sample,” as an initial security
`
`measure. Ludtke, 1:22-31, 1:37-38, 14:33-42, 18:45-50, 18:52-55, 28:57-62. The
`
`sample is compared to stored fingerprints and if the sample is recognized, the user
`
`is authorized. Ludtke, 14:41-46. Once the transaction device authorizes the user
`6
`
`
`
`

`

`IPR2024-01333
`U.S. Patent No. 8,352,730
`
`based on the matching biometric information, the personal POS terminal “opens a
`
`secure communications session to the TPCH, requesting a transaction,” and
`
`“provides the transaction record that it received from the web browser and the
`
`unique ID of the transaction device.” Ludtke, 29:5-12 (emphasis added); see also
`
`Ludtke, 27:12-13 (“Privacy card information is provided to TPCH, step 1510.”),
`
`34:25-27 (explaining that “necessary secure transaction communication with the
`
`TPCH” includes “providing the transaction data and its device ID” (emphasis
`
`added)). The TPCH is a trusted third-party agent, separate from the transaction
`
`device, personal POS terminal and the back-end transacting entity (e.g., vendor).
`
`Ludtke, 7:42-48, 9:26-34, FIG. 6.
`
`Ludtke also discloses an alternate embodiment in which the POS
`
`“functionality of providing secure communication and transactions with the
`
`Transaction Privacy Clearing House (TPCH)” described above “can be integrated
`
`into the digital wallet directly.” Ludtke, 28:41-45. Thus, Ludtke also discloses
`
`communicating the device ID directly from the transaction device to the TPCH
`
`responsive to a “match” between the scanned biometric data (e.g., fingerprint or
`
`other biometric data) and stored data.
`
`Next, “[t]he TPCH uses the unique ID of the transaction device to process
`
`the transaction. After validating that the transaction device is in good standing and
`
`that the selected account has sufficient funds for the transaction, the TPCH issues a
`7
`
`
`
`

`

`IPR2024-01333
`U.S. Patent No. 8,352,730
`
`transaction confirmation back to the personal POS terminal” that “reflects the
`
`transaction confirmation back to . . . the transaction device. The transaction device
`
`may display a transaction confirmation to the user and may additionally record the
`
`transaction in its local storage.” Ludtke, 29: 12-23, FIG. 15.
`
`Ludtke, FIG. 15.
`
`
`
`
`
`8
`
`

`

`IPR2024-01333
`U.S. Patent No. 8,352,730
`
`Ludtke is analogous art to the ’730 patent because it is directed to the same
`
`technical field: user authentication methods and systems. Compare Ex. 1001, 1:16-
`
`19, with Ludtke, 1:59-61; Decl., 33, 57-64.
`
`B. Claims
`1.
`Independent claim 1
`a.
`[1preamble]: “A method for verifying a user during
`authentication of an integrated device, comprising the
`steps of:”
`To the extent limiting, Ludtke discloses [1preamble] because Ludtke
`
`discloses “identifying an authorized user” (verifying a user) “with a biometric
`
`device and enabling the authorized user to access private information” using a
`
`“transaction device” such as a privacy card and/or digital wallet (integrated
`
`device). Ludtke, Abstract, 3:32-36; Decl., 72-74. Ludtke explains that “[t]he user
`
`connects to and performs transactions with [an] eCommerce system through a
`
`transaction device which has a unique identifier (ID)” such as “a privacy card is
`
`used” or “a digital wallet” (integrated devices). Ludtke, 3:32-36.
`
`The ’730 patent describes a “biometric key” including the elements recited
`
`in [1ai]-[1aii]. Ex. 1001, 1:57-67. Patent Owner indicated in its Responsive Claim
`
`Construction Brief (Ex. 1018) that “an ‘integrated device’ is a ‘device’ that is
`
`integrated with a biometric key.” Ex. 1018, 4. Patent Owner’s Sur-Reply Claim
`
`Construction Brief also states that “‘integrated device’ integrates or includes a
`
`
`
`9
`
`

`

`IPR2024-01333
`U.S. Patent No. 8,352,730
`
`biometric key component … .” Ex. 1022, 2. Ludtke’s transaction devices (such as
`
`a digital wallet and/or privacy card) likewise include a biometric key and constitute
`
`an integrated device under Patent Owner’s construction, as explained below. Decl.,
`
`73-74.
`
`Petitioner’s indefiniteness challenge in the district court proceeding does not
`
`preclude institution of an IPR. Intel Corp. v. Qualcomm Inc., 21 F.4th 801, 813
`
`(Fed. Cir. 2021) (“The indefiniteness of a limitation … precludes a patentability
`
`determination only when the indefiniteness renders it logically impossible for the
`
`Board to reach such a decision.”); Zillow Grp., Inc. v. Int’l Bus. Machs. Corp.,
`
`IPR2020-01656, Paper 8 at 11 (PTAB Mar. 15, 2021) (“Patent Owner cites no
`
`authority nor are we aware of any authority for the proposition that we may not
`
`assess the patentability of claims in an inter partes review because the Petitioner
`
`also challenges those claims as indefinite in District Court.”); Target Corp. v.
`
`Proxicom Wireless, LLC, IPR2020-00931, Paper 10 at 9 (PTAB Nov. 10, 2020)
`
`(noting that “[a]lternative pleading before a court is common practice”); Alcon Inc.
`
`v. AMO Dev., LLC, IPR2021-00843, Paper 15 at 16 (PTAB Nov. 12, 2021)
`
`(instituting review despite petitioner’s allegation before the district court that the
`
`claim is indefinite when the Board was “able to construe the disputed claim term
`
`with sufficient precision to address the obviousness arguments”).
`
`
`
`10
`
`

`

`b.
`
`IPR2024-01333
`U.S. Patent No. 8,352,730
`[1ai]: “persistently storing biometric data of the user
`[in a tamper proof format written to a storage
`element on the integrated device that is unable to be
`subsequently altered]”
`Ludtke discloses [1ai] because its transaction device, like a privacy card
`
`and/or digital wallet, (integrated device) stores “authorized fingerprint recognition
`
`samples” or other “biometric identification” e.g., “retinal scan, voice, DNA, hand
`
`profile, face recognition, etc.” (biometric data of the user) in a “user
`
`identity/account information block 760” or “write-once memory” (persistent
`
`storage). Ludtke, 13:27-29, 14:19-21, 19:9-14, 19:29-40, 35:61-64, FIGS. 7B-7C,
`
`Decl., 75-78.
`
`Ludtke’s privacy card (integrated device) has a “user identity/account
`
`information block 760 [that] stores data about the user and accounts that are
`
`accessed by the card” including “the authorized fingerprint recognition samples.”
`
`Ludtke, 13:27-29, 14:19-21, 14:13-18 (emphasis added) (explaining that the
`
`privacy card embodied in Figure 7C “may include those functions set forth in FIG.
`
`7b, referred to herein as first generation privacy card technology block 775 and
`
`FeliCa2 Technology block 774”); Decl., 76.
`
`