- Fidelity National Information Services, Inc. v. Checkfree CorporationAll claims unpatentablePTAB · Dec 22, 2014 · CBM2013-00030 · APJ Brian J Mcnamara · CBM · Final written decision
Claims 1–21 are unpatentable under § 101 because they claim an abstract payment-intermediation concept implemented with generic computer functions.
RulingsFinal written decision- PTAB / AIA Trials › Institution threshold (reasonable likelihood / more likely than not)InstitutedInstituted
“BACKGROUND On December 23, 2013, we entered a Decision to Institute a covered business method patent review, Paper 16 (“Dec. to Inst.”), of U.S. Patent No. 7,853,524 B2 (“the ’524 Patent”) on the grounds that claims 1–21 do not recite patent-eligible subject matter under 35 U.S.C. § 101.” slip op. at 2
- Claim Construction › Threshold & procedure › Whether a term needs construction (O2 Micro)No construction neededOther
“terms “electronic bill” and “EBP” do not even appear in the specification, Petitioner argues that Patent Owner is attempting to recast abstract ideas recited in the ’524 Patent claims in a manner that requires machines or transformations. Pet. Reply 2, 6. We agree with Petitioner that Patent Owner’s construction arguments attempt to read into the claims features that are not recited in them. For example, although there is no EBP system mentioned in the claims, citing the testimony of its expert, Dr. John Kelly, Patent Owner argues that a payment request is captured through an automated interaction with a user over a telephone or is conveyed by transferring data to the EBP system over a data network from a computer. PO Resp. 21–22. As discussed below, we decline to alter any of the constructions we applied in our Decision to Institute.” slip op. at 4
- Claim Construction › Intrinsic evidence (Phillips canons) › Plain and ordinary meaning to a POSITATerm construed board ownDecided for petitioner
“Merchant credit limit associated with a payee Patent Owner contends that our construction of the “merchant credit limit associated with a payee” as the maximum amount of credit a merchant extends to a payer is contrary to the plain language of the claims because the limit is associated with the payee. PO Resp. 51. Our construction is consistent with the limit being associated with the payee, i.e., the party to whom the payment is made. Patent Owner’s proposed construction, “a value reflecting the credit limit used by the EBP system which is associated with a particular payee,” PO Resp. 52, reads into the claim an extrinsic EBP system not discussed in the specification. In addition, the value reflecting the credit limit is the amount of credit a payee, i.e., a merchant, extends to a payer. Claims 1, 11, and 21 each recite comparing a payment amount associated with the received request, i.e., the request received on behalf of the payer, to a merchant credit limit associated with the payee. The only credit limits described in the specification are limits on the amount of credit extended to a payer. Although the specification describes a merchant credit limit, it does not describe specifically such a limit associated with the payee. The specification describes comparing the payment amount to a merchant credit limit, and making the payment as an electronic payment or a service provider check, if the payment amount is under a specified amount. Ex. 1001, col. 5, l. 65–col. 6, l. 5. Any amount within the merchant’s (i.e., the payee’s) credit limit is added to the consumer’s (i.e., payer’s) monthly ACH balance, and any transaction can be compared to the consumer’s credit limit parameters stored in a database. Id. at col. 6, ll. 5–10. The specification also describes releasing the payment as a draft written on the consumer’s account, rather than the service provider’s account, if the payment amount exceeds the consumer’s, i.e., the payer’s, credit limit. Id. at col. 6, ll. 10– 16. Because the consumer’s credit limit described in the specification protects the service provider, id. at col. 5, ll. 35–37, 65–66, it is a limit associated with the service provider rather than the payee. Claims 1, 11, and 21, however, recite the merchant credit limit associated with the payee. Because each merchant may extend a different amount of credit to each customer, the merchant credit limit associated with the payee limitation appears to require the service provider computer to select a payment means based on comparing the requested payment amount to the amount of credit the merchant, i.e., the payee, extends to the payer. That is, the amount of the payment is compared to the payer’s credit limit with the payee. In any case, as discussed below, this limitation is not material to our determination of the issues under 35 U.S.C. § 101.” slip op. at 8
- Patent Eligibility (§101) › Alice/Mayo step one — 'directed to'Step1 directed to exceptionUnpatentable
“and 21 of the ’524 Patent recites a method or apparatus in which a service provider receives a request to pay a payee, selects a form of crediting the payee based on comparing the payer’s account number to the payee’s merchant account scheme and the payment amount to a merchant credit limit associated with the payee, and directs the payment to the payee in the selected form. Thus, each of the independent claims is drawn to a computer-implemented process or apparatus in which a third party intermediary, i.e., the payment service provider, receives a request to make payment, applies certain criteria to determine what form of payment to use, and then directs the payment to the payee in that form. In Alice, the Supreme Court considered claims that, on their face, were drawn to the fundamental economic concept of exchanging financial obligations between two parties using a third-party intermediary to mitigate settlement risk. The Court, concluded that, like the hedging in Bilski, the claims were drawn to an “abstract idea” beyond the scope of § 101. Alice Corp., 134 S. Ct. at 2355–57.1 In the ’524 Patent, the service provider intermediates payment between the payer and the payee, acting much like the third party intermediary in Alice. The payment service provider mitigates settlement risk by crediting the payee or issuing a check to the payee drawn on the service provider’s funds, or in other circumstances, issuing a draft drawn on the payer’s funds, i.e., determining the form of payments based on the comparisons recited in the claims. Ex. 1001, col. 5, l. 25–col. 6, l. 15. The computer implementation associated with comparing the account number and 1 In Bilski v. Kappos, 561 U.S. 593 (2010) the Court found upatentable, as abstract ideas, claims drawn to hedging against the financial risk of commodity price fluctuations where the claims recited the steps of initiating a series of financial transactions between commodity providers and consumers, identifying market participants with a counterrisk for the same commodity and initiating a series of risk balancing transactions between those market participants and the commodity provider. the credit limit are incidental to the fundamental economic concept of having a third party intermediate a settlement either by crediting the payee from the third party’s funds (as in a credit transaction) or from the payer’s funds (as when the amounts exceed the payer’s credit limit with the service provider). Thus, we conclude that each of independent claims 1, 11, and 21 is directed to an abstract concept.” slip op. at 12
Patent outcomesUS 7,853,524 unpatentableClaim construction§ 101 eligibilitycites Alice · Mayo · BilskiPatents in suitUS 7,853,524 - Fidelity National Information Services, Inc. v. Checkfree CorporationAll claims unpatentablePTAB · Dec 22, 2014 · CBM2013-00031 · APJ Brian J Mcnamara · CBM · Final written decision
Claims 1–20 are unpatentable under § 101 because they claim the abstract concept of modifying account numbers to match a payee’s format using generic computer implementation.
RulingsFinal written decision- Patent Eligibility (§101) › Alice/Mayo step one — 'directed to'Step1 directed to exceptionDecided for petitioner
“Claims 1 and 15 of the ’311 Patent are drawn to executing instructions on a computer. In response to receiving an account number in a format not expected by a payee, the instructions act to retrieve from a database a rule that causes the received account number to be altered into the expected format before transmitting the account number to the payee. Thus, claims 1 and 15 are directed to the abstract concept of comparing a received account number to a payee’s format, applying a rule, and modifying the account number in accordance with that rule to the expected format before transmitting it to the payee. As evidence that the computer is not a meaningful limitation and that the claims are drawn to an abstract concept, Petitioner cites testimony of inventor David Garrison demonstrating that the steps of the claimed invention could be performed manually. Pet. 12–16. (citing Ex. 1008, 175:25–180:14, 185:11– 189:25; Ex. 1009; Ex. 1010. Patent Owner’s argument that the claimed automatically performed method precludes the need for human intervention, PO Resp. 68, essentially concedes that the process could be performed manually. We conclude that the recitation of a computer in the method or system claims is not a meaningful limitation and does not change the abstract nature of the claimed subject matter. The limitations recited in claims 2–14, which depend from claim 1, and claims 16–20, which depend from claim 15, relate to the abstract concept recited in claims 1 and 15 and are not meaningful limitations that provide patent-eligible subject matter. See, e.g., claims 2 and 16, which recite receiving the consumer account number in association with the payment request. Thus, the method and system claims of the ’311 Patent are drawn to the abstract concept of establishing compatibility between account numbers by applying appropriate rules to modify an account number.” slip op. at 7
- Patent Eligibility (§101) › Alice/Mayo step two — inventive conceptStep2 no inventive conceptDecided for petitioner
“We also agree with Petitioner that, by transforming a consumer account number into a modified account number, the claims of the ’311 Patent do not cause a physical transformation of a data structure, as argued by Patent Owner. PO Resp. 48–49. As previously discussed, the claims of the ’311 Patent do not recite data structures that are physically transformed. In addition, Petitioner points out that Patent Owner’s expert, Mr. McEntee, testified that the claims of the ’311 Patent do not require any physical transformation. Pet. Reply 11 (citing Ex. 2028, 472:19– 428:2). We further note that satisfying the machine-or-transformation test, by itself, is not sufficient to render a claim patent-eligible, as not all transformations or machine implementations infuse an otherwise ineligible claim with an inventive concept. DDR Holdings, LLC, 2014 WL 6845152, at *9. We conclude that altering an account number to be compatible with the requirements of a payee’s system, as recited in the claims of the ’311 Patent, is not the type of transformation that rises to the level of patent-eligible subject matter. Patent Owner contends that in our Decision to Institute we did not evaluate the claims as a whole to determine whether they contain additional substantive limitations that narrow, confine, or otherwise tie down the claims so that, in practical terms, they do not cover the full abstract idea itself. PO Resp. 61. According to Patent Owner, the claims include several concrete and tangible limitations that limit the use of the “putative abstract idea” to a specific application within an electronic bill payment system. Id. As discussed above, relying on intrinsic and extrinsic evidence, Patent Owner attempts to read into the claims structures that they do not recite. Independent claims 1 and 15 recite only executing instructions to receive an account number, applying a rule to alter the account number to an expected form, and transmitting the altered account number. The specification notes that the claimed steps can be implemented using a general purpose computer, or other processing device capable of executing programmed instructions. Ex. 1001, col. 3. ll. 58–65. Thus, the limitations recited in claims concerning the payment processor and the payment processor computer are generic computer limitations. Generic computer limitations do not make an otherwise ineligible claim patent-eligible. DDR Holdings, 2014 WL 6845152, at *9.” slip op. at 12
- ExcludeMotion to exclude, deniedOther
“of the rebuttal testimony of Petitioner’s expert Michael Shamos, Ex. 1021 (“Shamos Decl.”), as beyond the scope of the testimony of Patent Owner’s experts. Paper 40 (“Mot. to Exclude”). Petitioner identifies subject matter the challenged paragraphs of the Shamos Declaration rebut. Paper 41 (“Opp. to Mot. to Exclude”). In reaching our decisions in this proceeding, we do not cite or rely on the portions of the testimony in the Shamos Declaration that Patent Owner moves to exclude. Therefore, Patent Owner’s Motion to Exclude is dismissed.” slip op. at 16
Patent outcomesUS 7,996,311 unpatentable§ 101 eligibilitycites Alice · Mayo · BilskiPatents in suitUS 7,996,311 - Metavante Corporation / Fidelity National Information Services, Inc. v. Checkfree CorporationAll claims unpatentablePTAB · Dec 22, 2014 · CBM2013-00032 · APJ Brian J Mcnamara · CBM · Final written decision
Claims 1–60 are unpatentable under § 101 because they claim an abstract intermediary function implemented with routine computer activity.
RulingsFinal written decision- ExcludeMotion to exclude, deniedDenied
“Petitioner’s expert Michael Shamos. Paper 41 (“Mot. to Exclude”). Petitioner opposes Patent Owner's Motion to Exclude on the basis that these statements Patent Owner moves to exclude are proper rebuttal to Patent Owner's experts. Paper 42 (“Opp. to Mot. to Exclude”). Our Final Written Decision does not cite or rely on any of the subject matter Patent Owner seeks to exclude. Therefore, we dismiss Patent Owner’s Motion to Exclude.” slip op. at 23
- Claim Construction › Threshold & procedure › Whether a term needs construction (O2 Micro)Term construed board ownDecided for petitioner
“We agree with Petitioner. Claim 1 recites the single step of executing computer implemented instructions with one or more processors. Claim 1 recites that those instructions include ones in which the clearinghouse receives a payment request (or a request to add a payee to a payer’s pick list), accesses billing information stored in a database, identifies payee bill presentment information from the accessed information, and generates and transmits to the payer a notification of the bill presentment information.1 Although the one or more processors may also execute instructions to perform routine ancillary functions for the central clearinghouse to receive the request, access the database and transmit the information, there are no such instructions or structures recited in claim 1. Claim 1 of the ’749 Patent does not recite any structure for the bill presentment and payment central clearinghouse—nor does claim 1 recite any particular software instructions, any particular processors, any particular configuration or interconnection of the recited “one or more processors,” or any other structure to execute the claimed functions called for in the instructions. Thus, the bill presentment and payment central clearinghouse in claim 1 must be construed without structural limitations, other than being programmed to carry out the recited functions.” slip op. at 5
- Claim Construction › Intrinsic evidence (Phillips canons) › Plain and ordinary meaning to a POSITATerm construed board ownDecided for petitioner
“The ’749 Patent describes the payee-pick-list as a list of payees the user may plan to pay electronically and states that each user’s individual list is stored in the form of a database in a memory associated with the central clearinghouse station. Ex. 1001, col. 16, ll. 49–54. We disagree with Patent Owner’s characterization of the payee-pick-list as a data structure merely because it is used directly by the programmed central clearinghouse computer system. PO Resp. 40. Claim 1 recites receiving a request to add a payee to a pick-list associated with the payer, but does not recite any limitations concerning the pick-list. The specification refers to a database known as a payee-pick-list that includes certain information such as payee identifiers, street addresses, cities, states, zip codes, phone numbers and consumer account numbers. Ex. 1001, col. 16, 61–65. Nothing in this list of common information associated with the payee requires any particular data structure. Thus, we do not import a data structure limitation into the construction of "payee-pick-list” or "pick-list."” slip op. at 7
- Patent Eligibility (§101) › Alice/Mayo step one — 'directed to'Step1 directed to exceptionUnpatentable
“patentable subject matter. First, we determine whether the claims at issue are directed to one or more patent-ineligible concepts, i.e., laws of nature, natural phenomenon and abstract ideas. Id. at 2355 (citing Mayo Collaborative Servs. v. Prometheus Labs., Inc., 132 S. Ct. 1289, 1296–96 (2012)). If so, we then consider whether the elements of each claim, both individually and as an ordered combination, transform the nature of the claim into a patent-eligible application to ensure that the patent in practice amounts to significantly more than a patent upon the ineligible concept itself. Id. Thus, the first step in our analysis is to consider whether the claims of the ’749 Patent recite a patent-ineligible concept. Patent Owner describes the central clearinghouse as a necessary intermediary between payers and payees interacting with each user station and handling EBPP interactions between thousands, if not millions, of such stations, which themselves are computers. Id. at 22. In Alice, the Supreme Court considered claims drawn to a method of exchanging financial obligations between two parties using a third-party intermediary to mitigate settlement risk and concluded that on their face, claims drawn to the concept of an intermediated settlement, like the hedging in Bilski, is an “abstract idea” beyond the scope of § 101. Id. at 2355–57.2 We conclude that the claims of the ’749 Patent, which are directed to a clearinghouse that acts as an intermediary between a payer and the payee by notifying the payer about payee bill presentment information, are not directed to patent-eligible subject matter. The steps recited in claim 1, and in each 2 In Bilski v. Kappos, 561 U.S. 593 (2010), the Supreme Court found unpatentable, as abstract ideas, claims drawn to hedging against the financial risk of commodity price fluctuations where the claims recited the steps of initiating a series of financial transactions between commodity providers and consumers, identifying market participants with a counter-risk for the same commodity and initiating a series of risk balancing transactions between those market participants and the commodity provider. of independent claims 20, 40, 59, and 60, are carried out by a clearinghouse that receives a request from a payer to provide payee information or add a payee to the payer’s pick-list. The claims recite receiving a request and are not limited to any particular number of such requests. The clearinghouse retrieves the payee information from a database and generates and transmits a responsive notification message to the payer. Thus, independent claims 1, 20, 40, 59, and 60 are drawn to the patent-ineligible concept of executing instructions in which an intermediary receives a request, retrieves information from a database, and transmits the information to the requester.” slip op. at 9
Patent outcomesUS 7,792,749 unpatentableClaim construction§ 101 eligibilitycites Alice · Mayo · BilskiPatents in suitUS 7,792,749
Holdings, summaries, rulings, issues, outcomes, winners and claim constructions shown for a decision were generated by a large language model reading the opinion. They are a guide to the decision, not the decision. Confirm every one against the court's own text before relying on it. Outcomes read from the patent owner’s side. Party names are extracted from the decision and are missing on about 900 short Director denials and scans, which carry the trial number instead.