`571-272-7822
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`Paper 17
`Entered: June 12, 2015
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`SKIMLINKS, INC. and SKIMBIT, LTD.,
`Petitioner,
`
`v.
`
`LINKGINE, INC.,
`Patent Owner.
`____________
`
`Case CBM2015-00086
`Patent 7,818,214 B2
`____________
`
`
`
`Before KEVIN F. TURNER, PHILLIP J. KAUFFMAN, and
`KRISTINA M. KALAN, Administrative Patent Judges.
`
`KALAN, Administrative Patent Judge.
`
`
`
`DECISION
`Institution of Covered Business Method Review and
`Grant of Motion for Joinder
`37 C.F.R. § 42.208
`37 C.F R § 42.222(b)
`
`
`
`CBM2015-00086
`Patent 7,818,214 B2
`
`
`I. INTRODUCTION
`
`Skimlinks, Inc. and Skimbit, Ltd. (“Petitioner”) filed a Petition to
`
`institute a covered business method (“CBM”) review of claims 1–7 of U.S.
`
`Patent No. 7,818,214 B2 (Ex. 1001, “the ’214 patent”). Paper 1 (“Pet.”).
`
`On April 17, 2015, Petitioner filed a Motion for Joinder (“Mot.,” Paper 13)
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`seeking to join this proceeding with VigLink, Inc. v. Linkgine, Inc., Case
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`CBM2014-00184 (the “VigLink CBM”). Mot. 1. Linkgine, Inc. (“Patent
`
`Owner”) did not file an opposition to Petitioner’s Motion. Patent Owner
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`filed a Waiver of Preliminary Response. Paper 16. We have jurisdiction
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`under 35 U.S.C. § 324, which provides that a post-grant review may not be
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`instituted “unless . . . it is more likely than not that at least 1 of the claims
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`challenged in the petition is unpatentable.”
`
`For the reasons that follow, we determine that the ʼ214 patent
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`qualifies as a covered business method patent under § 18(d)(1) of the Leahy-
`
`Smith America Invents Act (“AIA”). Leahy-Smith America Invents Act,
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`Pub. L. No. 112–29, 125 Stat. 284, 331 (Sept. 16, 2011). We further
`
`determine that it is more likely than not that at least one claim of the ʼ214
`
`patent is unpatentable. We, therefore, (1) institute a covered business
`
`method patent review of claims 1–7, see 35 U.S.C. § 324(a), and (2) grant
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`Petitioner’s Motion for Joinder.
`
`A. Related Cases
`
`
`
`The ʼ214 patent is at issue in Linkgine, Inc. v. Skimlinks, Inc. and
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`Skimbit, Ltd., No. 1:14-cv-00571 (E.D. Va.) (“the district court
`
`proceeding”). Paper 12, 2; Pet. 5. We instituted trial in the VigLink CBM
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`on March 18, 2015. VigLink CBM, Paper 13. In addition, Petitioner has
`
`
`
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`2
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`
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`CBM2015-00086
`Patent 7,818,214 B2
`
`filed a petition for covered business method patent review of U.S. Patent
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`8,027,883 B2 (CBM2015-00087).
`
`B. The ’214 Patent
`
`
`
`The ʼ214 patent relates to an affiliate manipulation system that
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`permits consumers, Internet Service Providers (ISPs), search engines, and
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`intermediaries to maximize affiliate program participation in transactions by
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`or through them. Ex. 1001, Abstract. The operation of the affiliate
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`manipulation system is illustrated in Figure 4 from the patent reproduced
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`below:
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`3
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`CBM2015-00086
`Patent 7,818,214 B2
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`Figure 4 is a process flowchart for an embodiment of the affiliate
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`manipulation system. Id. at 2:26–27. In the flowchart reproduced above,
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`the user requests data through the Internet at step 400. Id. at 8:8–10. At step
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`402, the system checks the data for a possible affiliate link. Id. at 8:13–14.
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`Affiliate links that contain Uniform Resource Locators (“URLs”) that
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`participate in affiliate programs are affiliate targets. Id. at 8:17–18. If there
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`are no possible affiliate targets 404, the system serves the data to the user in
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`step 406 and ends the process in step 408. Id. at 8:18–20. If there are
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`possible affiliate targets, the system checks the URLs for existing affiliate
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`codes in step 410; if no affiliate codes exist, the system adds the affiliate
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`program code to the affiliate target information in step 414. Id. at 8:21–25.
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`If affiliate codes exist, the system determines if the affiliate codes need to be
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`replaced at step 424. Id. at 8:40–42. If the existing affiliate code is not for a
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`preferred commercial agent, then the existing affiliate code is removed in
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`step 426, and the system continues to step 414. Id. at 8:42–45. At step 416,
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`the system queries the database or array for affiliate information based on
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`the affiliate target information; retrieves the affiliate information in step 418,
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`and merges the data and affiliate code in step 420. Id. at 8:28–33. The
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`system may then serve the data to the user and end the process if this is the
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`last possible affiliate, or go back to step 402 to analyze the data for
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`additional possible affiliate links. Id. at 8:33–37.
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`C. Illustrative Claim
`
`
`
`Claims 1 and 7 are independent method claims. Claims 2–6 depend
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`directly from claim 1. Claim 1 is illustrative:
`
`1. A method for operating an automated affiliate manipulation
`system comprising:
`
`
`
`
`4
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`
`
`CBM2015-00086
`Patent 7,818,214 B2
`
`
`receiving a request for preexisting data from a first
`computer,
`identifying the requested preexisting data at an
`intermediary computer, the intermediary computer being
`separate from the first computer, analyzing the requested
`preexisting data at the intermediary computer to automatically
`identify at least one data element corresponding to an affiliate-
`capable merchant,
`determining that the at least one data element comprises
`an existing affiliate code
`determining that the existing affiliate code does not
`comprise the preferred affiliate code,
`creating modified data at the intermediary computer by
`automatically associating the preferred affiliate code with the
`data element, and removing any existing affiliate code
`associated with the data element, the modified data comprising
`at least one affiliate link, wherein the affiliate link comprises a
`URL associated with the affiliate-capable merchant, delivering
`the modified data to the first computer, and communicating the
`affiliate code to the affiliate-capable merchant upon selection of
`the affiliate link.
`
`
`Ex. 1001, 8:56–9:12.
`
`
`D. The Asserted References
`
`Petitioner relies on the following references:
`
`1. U.S. Patent No. 6,804,660 B2, issued October 12,
`2004 (“Landau”) (Ex. 1010);
`
`2. Int’l Pub. No. WO 00/58861 A1, published October 5,
`2000 (“Priest”) (Ex. 1012); and
`
`3. Robert McRackan, “Overture Partnering with Gator,”
`The LED Digest, 1576, 1 (May 8, 2003), available at
`http://www.abestweb.com/ forums/suspicious-activity-161/led-
`digest-articleoverture-gator-partnership-29873.html.
`(“McRackan”) (Ex. 1013).
`
`
`
`
`
`
`5
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`CBM2015-00086
`Patent 7,818,214 B2
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`E. The Asserted Grounds
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`Petitioner challenges claims 1–7 of the ’214 patent on the following
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`grounds:
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`Reference(s)
`
`
`
`Landau
`
`Priest
`
`Basis
`
`§ 101
`
`§ 102(a)
`
`§ 102(a)
`
`Priest and McRackan
`
`§ 103
`
`
`
`A. Claim Construction
`
`II. ANALYSIS
`
`Claims Challenged
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`1–7
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`1–7
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`1–7
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`1–7
`
`Consistent with the statute and the legislative history of the AIA, the
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`Board will interpret claims in an unexpired patent using the broadest
`
`reasonable construction. See 37 C.F.R. § 42.300(b); Office Patent Trial
`
`Practice Guide, 77 Fed. Reg. 48,756, 48,766 (Aug. 14, 2012); see also In re
`
`Cuozzo Speed Techs., LLC, No. 778 F.3d 1271, 1281 (Fed. Cir. 2015) (“We
`
`conclude that Congress implicitly adopted the broadest reasonable
`
`interpretation standard in enacting the AIA.”). There is a “‘heavy
`
`presumption’ that a claim term carries its ordinary and customary meaning.”
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`CCS Fitness, Inc. v. Brunswick Corp., 288 F.3d 1359, 1366 (Fed. Cir. 2002).
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`Petitioner proposes constructions for four claim terms: “first
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`computer,” “intermediary computer,” “server,” and “serving.” Pet. 20–23.
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`For the purposes of this decision, and on this record, we determine
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`that no claim term needs express interpretation apart from the following.
`
`See Vivid Techs., Inc. v. Am. Sci. & Eng’g, Inc., 200 F.3d 795, 803 (Fed. Cir.
`
`
`
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`6
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`CBM2015-00086
`Patent 7,818,214 B2
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`1999) (holding that only those terms that are in controversy need to be
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`construed, and only to the extent necessary to resolve the controversy).
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`“automatic/automatically”
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`The term “automatically” appears in claims 1 and 7. In the VigLink
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`CBM, Patent Owner proposed that we interpret the term
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`“automatic/automatically” as “without human intervention.” VigLink CBM,
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`Paper 11, 6. The Specification provides that “the process may appear to be
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`seamless and instantaneous to a user or buyer.” Ex. 1001, 4:25–26.
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`Based on the disclosure in the Specification and on our comparable
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`analysis in the VigLink CBM, and applying the broadest reasonable
`
`interpretation, we construe “automatic/automatically” to mean “without
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`human intervention.”
`
`B. Whether Petitioner Has Standing to Seek Covered Business Method
`Patent Review of the ʼ214 Patent
`
`Under § 18(a)(1)(E) of the AIA, the Board may institute a transitional
`
`proceeding only for a patent that is a covered business method patent.
`
`Section 18(d)(1) of the AIA defines the term “covered business method
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`patent” to mean:
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`a patent that claims a method or corresponding apparatus for
`performing data processing or other operations used in the
`practice, administration, or management of a financial product
`or service, except that the term does not include patents for
`technological inventions.
`
`AIA, 125 Stat. at 331; see also 37 C.F.R. § 42.301(a) (restating this
`
`definition).
`
`The determination of whether a patent is eligible for covered business
`
`method patent review is based on what the patent claims. See Liberty
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`Mutual Ins. Co. v. Progressive Casualty Ins. Co., Case No. CBM2012-
`
`
`
`
`7
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`CBM2015-00086
`Patent 7,818,214 B2
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`00004, slip op. at 5 (PTAB Jan. 25, 2013) (Paper 10). A patent having even
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`one claim directed to a covered business method is eligible for review, even
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`if the patent includes additional claims. See Transitional Program for
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`Covered Business Method Patents Definitions of Covered Business
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`Method Patent and Technological Invention; Final Rule, 77 Fed. Reg.
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`48,734, 48,736 (Aug. 14, 2012) (Response to Comment 8).
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`1. Petitioner Has Been Sued for Infringement of the ’214 Patent
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`Section 18 of the AIA limits reviews to persons or their privies that
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`have been sued or charged with infringement of a covered business method
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`patent. AIA §§ 18(a)(1)(B), 18(d)(1).
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`
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`Petitioner represents that it has been sued for infringement of the ’214
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`patent in the district court proceeding. Pet. 5. Patent Owner acknowledges
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`that the ’214 patent is at issue in that case. Paper 12, 2. Therefore,
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`Petitioner has met this requirement. See 37 C.F.R. § 42.302(a).
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`2. Claims 1–7 are Directed to Financial Products and Services
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`The AIA legislative history explains that the definition of a covered
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`business method patent was drafted to encompass patents “claiming
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`activities that are financial in nature, incidental to a financial activity or
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`complementary to a financial activity” and that “financial product or
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`service” should be interpreted broadly. 157 Cong. Rec. S5432
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`(daily ed. Sept. 8, 2011) (statement of Sen. Schumer).
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`Petitioner argues that claims 1–7 are directed to financial products or
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`services because the claims are directed to “methods for crediting an agent
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`for a commission from a sale using ‘affiliate programs for commercial
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`websites.’” Pet. 12 (citing Ex. 1001, 1:12–15; 2:38–45). Petitioner adds that
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`the file history of the ’214 patent states that the claimed system is analogous
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`
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`8
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`CBM2015-00086
`Patent 7,818,214 B2
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`to the financial arrangement between a retail store and a salesperson in
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`which the salesperson is awarded a commission. Id. at 12–13 (citing Ex.
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`1004, 356–57). Based on the record before us, we are persuaded that claims
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`1–7 are directed to financial products or services.
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`3. Claims 1–7 Are Not Directed to a Technological Invention
`
`The definition of “covered business method patent” in § 18(d)(1) of
`
`the AIA excludes patents for “technological inventions.” AIA, 125 Stat. at
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`331. For guidance, we look to 37 C.F.R. § 42.301(b), which defines the
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`term “technological invention” and requires a case-by-case consideration of
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`“whether the claimed subject matter as a whole recites a technological
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`feature that is novel and unobvious over the prior art; and solves a technical
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`problem using a technical solution.” The following claim drafting
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`techniques, for example, typically do not render a patent a “technological
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`invention”:
`
`(a) Mere recitation of known technologies, such as
`computer hardware, communication or computer networks,
`software, memory, computer-readable
`storage medium,
`scanners, display devices or databases, or specialized machines,
`such as an ATM or point of sale device.
`
`(b) Reciting the use of known prior art technology to
`accomplish a process or method, even if that process or method
`is novel and non-obvious.
`
`(c) Combining prior art structures to achieve the normal,
`expected, or predictable result of that combination.
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`Office Patent Trial Practice Guide, 77 Fed. Reg. at 48,764. Therefore, to
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`qualify under the “technological invention” exception to covered business
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`method patent review, it is not necessarily enough that the claimed invention
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`makes use of technological systems, features, or components.
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`9
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`CBM2015-00086
`Patent 7,818,214 B2
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`Petitioner contends that the ʼ214 patent is not directed to a
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`technological invention. Pet. 14–17. Specifically, Petitioner argues that the
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`claims include only generic technology that was well-known in the art. Id.
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`at 14. Petitioner contends, with supporting evidence, that the hardware
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`elements and claimed steps were known at the time of the invention. Id. at
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`14–17 (citing the Declaration of Dr. Michael Shamos, Ex. 1007). Petitioner
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`contends that the ʼ214 patent claims do not solve a technical problem with a
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`technical solution, but rather that the patent “merely recites using well-
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`known technology (computers and a communication network) to perform the
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`well-known functions of identifying a character string associated with an
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`existing affiliate code and replacing the character string with a second
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`character string associated with a preferred affiliate code to attribute sales to
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`the preferred affiliate.” Id. at 18 (citation omitted).
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`“Mere recitation of known technologies, such as computer hardware,
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`communication or computer networks, software, memory, computer-
`
`readable storage medium, scanners, display devices or databases, or
`
`specialized machines,” typically is not enough to show a technological
`
`invention. Office Patent Trial Practice Guide, 77 Fed. Reg. at 48,764. Nor
`
`is “[r]eciting the use of known prior art technology to accomplish a process
`
`or method, even if that process or method is novel and non-obvious.” Id.
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`The recitations of generic computer elements to accomplish the process or
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`method of the ʼ214 patent claims are insufficient to show that the claimed
`
`invention is technological.
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`
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`In sum, we are persuaded, on this record, that the invention of the
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`ʼ214 patent, as claimed, does not recite a novel or non-obvious technological
`
`feature, nor does it solve a technical problem using a technical solution and,
`
`
`
`
`10
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`CBM2015-00086
`Patent 7,818,214 B2
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`thus, is not a technological invention. Accordingly, the ’214 patent is
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`eligible for covered business method patent review.
`
`C. Whether Claims 1–7 Are More Likely Than Not Unpatentable Under
`35 U.S.C. § 101
`
`1. Overview
`
`Section 101 of the Patent Statute (35 U.S.C. § 101) defines the subject
`
`matter eligible for patenting. The Supreme Court has “long held that this
`
`provision contains an important implicit exception: Laws of nature, natural
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`phenomena, and abstract ideas are not patentable.” Alice Corp. Pty. Ltd. v.
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`CLS Bank Int’l, 134 S.Ct. 2347, 2354 (2014) (citing Assoc. for Molecular
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`Pathology v. Myriad Genetics, Inc., 133 S.Ct. 2107, 2116 (2013) (internal
`
`quotation marks and brackets omitted)). “The ‘abstract ideas’ category
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`embodies the longstanding rule that ‘[a]n idea of itself is not patentable.’”
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`Id. at 2355 (citing Gottschalk v. Benson, 409 U.S. 63, 67 (1972) (quotations
`
`omitted)).
`
`In Alice Corp., the Supreme Court emphasized the importance of the
`
`so-called “Mayo framework,” which provides “a framework for
`
`distinguishing patents that claim laws of nature, natural phenomena, and
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`abstract ideas from those that claim patent-eligible applications of those
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`concepts.” Id. (citing Mayo Collaborative Servs. v. Prometheus Labs., Inc.,
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`132 S.Ct. 1289 (2012)). Under the Mayo framework, “[w]e must first
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`determine whether the claims at issue are directed to a patent-ineligible
`
`concept.” Id. Next, “we consider the elements of each claim both
`
`individually and ‘as an ordered combination’ to determine whether the
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`additional elements ‘transform the nature of the claim’ into a patent-eligible
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`application.” Id. (citing Mayo, 132 S.Ct. at 1297–1298).
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`11
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`CBM2015-00086
`Patent 7,818,214 B2
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`Under Mayo, to be patentable, a claim must do more than simply state
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`the law of nature or abstract idea and add the words “apply it.” Mayo, 132
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`S.Ct. at 1294; see Benson, 409 U.S. at 67. Furthermore, “the mere recitation
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`of a generic computer cannot transform a patent-ineligible abstract idea into
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`a patent-eligible invention.” Alice Corp., 134 S.Ct. at 2358. “Thus, if a
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`patent’s recitation of a computer amounts to a mere instruction to
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`‘implemen[t]’ an abstract idea ‘on . . . a computer,’ that addition cannot
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`impart patent eligibility.” Id. (internal citation omitted).
`
`A challenged patent claim, properly construed, must incorporate
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`enough meaningful limitations to ensure that it claims more than just an
`
`abstract idea and not just a mere “‘drafting effort designed to monopolize the
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`[abstract idea].’” Id. (quoting Mayo, 132 S.Ct. at 1297). “Simply appending
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`conventional steps, specified at a high level of generality,” is not “enough”
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`for patent eligibility. Id. at 2357 (quoting Mayo, 132 S.Ct. at 1300, 1297,
`
`1294). Thus, we analyze the claims of the ʼ214 patent to determine whether
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`the claims embody a patent-eligible application of an abstract idea or merely
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`nothing more than the abstract idea itself.
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`2. Whether Claims 1–7 Are Directed To an Abstract Idea
`
`In accordance with the Supreme Court’s “framework for
`
`distinguishing patents that claim . . . abstract ideas from those that claim
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`patent-eligible applications of those concepts,” we must first “determine
`
`whether the claims at issue are directed to one of those patent-ineligible
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`concepts.” Alice Corp., 134 S.Ct. at 2355. In Alice Corp., the Supreme
`
`Court determined that the claims at issue were “drawn to the concept of
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`intermediated settlement,” i.e., the use of a third party to mitigate settlement
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`risk. Id. at 2356. Furthermore, the Supreme Court determined that “[l]ike
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`12
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`CBM2015-00086
`Patent 7,818,214 B2
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`the risk hedging in [Bilski v. Kappos, 561 U.S. 593 (2010)], the concept of
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`intermediated settlement is ‘a fundamental economic practice long prevalent
`
`in our system of commerce.’” Id. (citations omitted). With respect to the
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`first step of the “Mayo framework,” the Supreme Court concluded in Alice
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`Corp. that “there is no meaningful distinction between the concept of risk
`
`hedging in Bilski and the concept of intermediated settlement” in Alice
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`Corp., and that “[b]oth are squarely within the realm of ‘abstract ideas’ as
`
`we have used that term.” Id. at 2357.
`
`The ’214 Patent describes “an affiliate manipulation system and
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`method that permits computers users, ISPs, search engines and other
`
`intermediaries to maximize affiliate program participation in transaction[s]
`
`by or through them.” Ex. 1001, 1:61–64. Petitioner contends that “the ’214
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`Patent claims are directed to the abstract idea of redirecting affiliate
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`commissions.” Pet. 26.
`
`Petitioner asserts that the “solution proposed here to the problem of
`
`manipulating sales commissions has a direct preexisting analog in the physical
`
`world,” namely, “replacing one affiliate’s name with another, allowing the
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`second named affiliate to receive credit for the sale.” Id. at 29. Petitioner
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`supports this assertion by referring to the file history, in which “the then-
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`Applicant analogized the claimed invention to the interaction between a
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`bookstore and its salesperson.” Id.
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`We are persuaded on the present record that the ʼ214 patent claims an
`
`abstract idea. Under Alice Corp., the concept of intermediated settlement
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`was determined to be “a fundamental economic practice long prevalent in
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`our system of commerce.” 134 S.Ct. at 2356 (quoting Bilski, 561 U.S. at
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`611). This led the Court to conclude that intermediated settlement, like the
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`13
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`CBM2015-00086
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`concept of “hedging” in Bilski, is an abstract idea under § 101. Id. We see
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`little difference between replacing one character set with another character
`
`set to denote the recipient of a commission, and the type of fundamental
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`economic practices considered to be abstract ideas in Alice Corp. and Bilski.
`
`We conclude on the present record, therefore, that the ʼ214 patent claims are
`
`directed to an abstract idea.
`
`3. Whether Claims 1–7 are Meaningfully Limited Under 35 U.S.C.
`
`§ 101
`
`The second step of the Supreme Court’s “Mayo framework” requires
`
`that we consider the elements of the claim and determine whether there is an
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`“element or combination of elements that is ‘sufficient to ensure that the
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`patent in practice amounts to significantly more than a patent upon the
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`[ineligible concept] itself.’” Alice Corp., 134 S.Ct. at 2355 (quoting Mayo,
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`132 S.Ct. at 1294).
`
`Petitioner focuses its § 101 arguments on independent claims 1 and 7.
`
`Pet. 33–37. The main argument is that the claims are not meaningfully
`
`limited because they are directed to mental processes, as steps 1–4 of claim
`
`1 can be reduced to “the mental process of identifying a web address that
`
`includes an affiliate code”; “[s]tep 5 involves the mental process of
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`determining that the detected data element is not associated with a preferred
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`affiliate code”; and “[s]teps 6 and 7 merely consist of replacing or otherwise
`
`associating the detected affiliate code with the preferred affiliate code, and
`
`delivering the modified data.” Pet. 33.
`
`We are not persuaded on the present record that these are meaningful
`
`limitations on the abstract idea. As the Supreme Court held in Benson,
`
`409 U.S. 63, claims do not become patent-eligible under § 101 simply for
`
`reciting a known, general purpose computer. See id. at 67 (invalidating as
`
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`14
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`CBM2015-00086
`Patent 7,818,214 B2
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`patent-ineligible claimed processes that “can be carried out in existing
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`computers long in use, no new machinery being necessary,” or “can also be
`
`performed without a computer.”). And in Alice Corp., the Supreme Court
`
`rejected a similar argument, determining that “the claims at issue amount to
`
`‘nothing significantly more’ than an instruction to apply the abstract idea of
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`intermediated settlement using some unspecified, generic computer.” Alice
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`Corp., 134 S.Ct. at 2360 (quoting Mayo, 132 S.Ct. at 1298).
`
`Petitioner contends that independent claim 7 (also directed to a
`
`method) is only nominally different than claim 1 and, therefore, both are
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`ineligible under § 101 for the same reasons. Pet. 36. Petitioner also argues
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`that the dependent claims recite actions that can be performed as mental
`
`processes. Id. at 35–36. We agree, on the present record, that these claims
`
`do not provide meaningful limitations to the abstract idea.
`
`We do not need to reach, and, therefore, do not address for the
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`purposes of this Decision, Petitioner’s secondary arguments based on the
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`“machine or transformation” test. Pet. 37–38.
`
`D. Asserted Grounds of Unpatentability Under 35 U.S.C. § 102
`
`1. Landau
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`Petitioner argues that claims 1–7 are anticipated by Landau. Pet. 38–
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`49. Landau discloses a method, system, and computer program for affording
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`“Virtual Affiliates” access to an existing affiliate system. Ex. 1010,
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`Abstract. Virtual affiliates are affiliates that are not registered with a
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`particular Merchant’s affiliate system. Id. at 7:49–50. In Landau, a
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`Webmaster operates a web site, through which a request for a target
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`Merchant web site triggers a correlation function, such that “the source
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`Webmaster unique identifier [source Webmaster ID] is correlated to a target
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`Webmaster unique identifier [target Webmaster ID] functional within the
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`unique identification system of the requested Merchant system.” Id. at
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`Abstract. The request may contain the “source Webmaster ID” and the
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`“target system identifier,” and may also contain information identifying the
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`source affiliate system of the Webmaster (a “source system identifier”),
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`either within the URL or based on other information in the URL (such as the
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`source Webmaster ID). Id. at 10:20–29. Then, “a properly formatted entry
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`mechanism URL is returned, enabling a hand off to the target Merchant
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`affiliate system and including the correlated target Webmaster unique
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`identifier.” Id. at Abstract.
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`Petitioner presents claim charts that it argues show how Landau
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`discloses “each and every element of the limitations of claims 1–7, which
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`are therefore anticipated by Landau.” Pet. 49–55.
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`Petitioner alleges that the “preferred affiliate code” claim element is
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`disclosed by Landau’s “lookup operation to determine a target Webmaster
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`ID (i.e., the preferred affiliate code).” Pet. 41. Specifically, Petitioner
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`argues that Landau’s lookup function finds the database assigned to the
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`target Merchant affiliate system, within which are three fields of
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`information: the source system information, the source Webmaster ID, and
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`the target Webmaster ID. Id. at 41–42 (citing Ex. 1010, 14:46–66). Based
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`on Petitioner’s argument and the record before us, we are persuaded that
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`Landau’s lookup operation would determine whether the existing affiliate
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`code does or does not comprise a preferred affiliate code.
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`To disclose modified data as required by claim 1, which requires
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`“creating modified data at the intermediary computer by automatically
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`associating the preferred affiliate code with the data element, and removing
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`any existing affiliate code associated with the data element,” Petitioner relies
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`on Landau’s creation of a new, transformed URL in “new URL (i.e.,
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`creating modified data) determination operation 612,” in which the “new
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`URL is determined based on the target Merchant and the target Webmaster
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`ID (i.e., the preferred affiliate code).” Pet. 42, 52 (citing Ex. 1010, 15:29–
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`34; 15:42–45). Petitioner’s citations and argument support its assertion that
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`Landau appears to remove any existing affiliate code (i.e., the source
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`Webmaster ID) and automatically associate the preferred affiliate code (i.e.,
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`the target Webmaster ID) with the data element to create modified data (i.e.,
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`the new URL).
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`To disclose “identifying the requested preexisting data at an
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`intermediary computer” and “analyzing the requested preexisting data at the
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`intermediary computer to automatically identify at least one data element
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`corresponding to an affiliate-capable merchant,” as required by claim 1,
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`Petitioner relies on Landau’s receiving operation 604, which discloses that
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`the URL received includes information including a source Webmaster ID
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`and a target system identifier, and lookup operation 606, which finds the
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`database assigned to the target Merchant affiliate system and its three fields
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`of information, namely, source system information, source Webmaster ID,
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`and target Webmaster ID. Pet. 50–51 (citing Ex. 1010, 10:4–10, 46–49,
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`14:45–51, 58–66). We are persuaded that Petitioner has demonstrated
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`Landau’s disclosure of analyzing and identifying at least one data element
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`corresponding to an affiliate-capable merchant.
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`With respect to claim 7, Petitioner argues that the “difference[s] in
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`claim language between claim 7 and claim 1 are non-substantive and are not
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`sufficient to alter the above analysis of Claim 1 with respect to Landau.”
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`Pet. 45–46. Petitioner’s Landau claim chart refers back to its claim 1
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`analysis to disclose the claim 7 elements. Id. at 54–55. For the purposes of
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`institution, we adopt substantially the same analysis for claim 7 as for
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`claim 1, supra. With respect to claims 2–6, each depend directly from claim
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`1. Petitioner contends these claims are also anticipated by Landau. Pet. 43–
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`45. Concerning these claims, we determine that the supporting evidence
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`demonstrates a reasonable likelihood that Petitioner would prevail in its
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`showing.
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`Based on the record before us, we are persuaded that Petitioner has
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`demonstrated that it is more likely than not that claims 1–7 would be
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`anticipated by Landau.
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`2. Priest
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`Petitioner argues that claims 1–7 are anticipated by Priest. Pet. 56–68.
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`We note that, in its Motion for Joiner, Petitioner requests withdrawal of its
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`Section 102 ground of unpatentability based on Priest. Mot. 2. For the
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`purposes of this decision, therefore, we do not evaluate Petitioner’s
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`arguments based on anticipation on the basis of Priest.
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`E. Asserted Ground of Unpatentability Under 35 U.S.C. § 103
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`Petitioner challenges claims 1–7 as obvious over Priest and
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`McRackan (Ex. 1013). Pet. 75–78. Petitioner argues that the combination
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`of Priest with non-patent literature prior art references that discuss the
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`concept of affiliate hijacking disclose “modifying an affiliate code to make it
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`appear that a referral is coming from a particular affiliate, regardless of its true
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`source.” Id. at 75.
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`Priest provides “a method and apparatus for use in e-commerce for
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`returning to a consumer all or a portion of commissions earned by a third
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`party when the consumer purchases goods or services from a vendor that is
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`affiliated with the third party.” Ex. 1012, 2:16–19. Priest summarizes its
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`invention:
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`The vendor and the third party first enter into an affiliate
`relationship in which they agree to a commission payable by
`the vendor to the third party for sales made to customers who
`have reached the vendor by or through the third party.
`Thereafter, the consumer forms a relationship with the third
`party whereby the consumer makes purchases from the vendor
`through the third party’s affiliation with the vendor so that
`commissions are generated for the third party. Moreover, the
`consumer allows the third party to monitor the consumer’s
`behavior so that the third party may ascertain the commissions
`generated by the consumer without relying on information
`supplied by the vendor or the consumer. Finally, the third party
`returns to each individual consumer all or a portion of the
`commission generated by his purchases.
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`Id. at 2:19–29.
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`In its now-withdrawn Section 102 arguments relating to Priest,
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`Petitioner argues that Priest discloses “each and every element of the
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`limitations of claims 1–7,” and presents a claim chart in support of its
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`arguments. Pet. 56–75. Petitioner supports its allegation that Priest
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`discloses “automatically associating the preferred affiliate code with the data
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`element” of claim 1 by stating: “For example, Priest discloses: ‘[I]f the
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`affiliate ID is not a Whypaythem.com affiliate ID, […] the URL is replaced
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`with the Whypaythem.com affiliate URL in step 416.’” Pet. 61 (citing Ex.
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`1012, 17:5–20, Fig. 9 at step 416). However, the omitted portion of the
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`Priest quote explains in detail that the user is prompted to determine whether
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`or not to replace the affiliate code, and that the code is replaced only if the
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`user decides to replace the code. Ex. 1012, 17:5–20 (“if the user does wish
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`to receive a portion or all of the affiliate commission associated with the
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`purchase, then the user replaces the current URL with a Whypaythem.com
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`affiliate URL”). Thus, Priest does not disclose that this step is performed
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`automatically (without human int