DETAILED ACTION
Notice of Pre-AIA or AIA Status
The present application is being examined under the pre-AIA first to invent provisions.
Status of Claims
This action is in reply to the amended claims filed on 6/26/2025, wherein:
Claims 1, 4, 31-93, 95, 104, 110-132, 135, 140-184, 193-194, and 197-205 were previously cancelled;
Claims 2, 3, 5-30, 94, 96-103, 105-109, 133, 134, 136-139, 185-192, 195, 196, and 206-262 are original or previously presented;
Claim 263 is amended; and
Claims 2-3, 5-30, 94, 96-103, 105-109, 133-134, 136-139, 185-192, 195, 196, and 206-263 are currently pending and have been examined.
Claim Rejections - 35 USC § 101
35 U.S.C. 101 reads as follows:
Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.
Claims 2-3, 5-30, 94, 96-103, 105-109, 133-134, 136-139, 185-192, 195, 196, and 206-263 are rejected under 35 U.S.C. 101 because the claimed invention is directed to an abstract idea without significantly more. The claims recite a computer for lease financing of tenant improvements which is considered a judicial exception because it falls under Certain Methods of Organizing Human Activity (fundamental economic practices; commercial or legal interactions: including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations). This judicial exception is not integrated into a practical application as discussed below and the claims do not include additional elements that are sufficient to amount to significantly more than the judicial exception as discussed below.
This rejection follows the 2019 Revised Patent Subject Matter Eligibility Guidance, 84 Fed Reg 4, January 7, 2019, pp. 50-57 (“2019 PEG”).
Analysis
Step 1 (Statutory Categories) – 2019 PEG pg. 53
Claims 2-3, 5-30, 94, 96-103, 105-109, 133-134, 136-139, 185-192, 195, 196, and 206-263 are directed to the statutory category of a machine.
Step 2A, Prong 1 (Do the claims recite an abstract idea?) – 2019 PEG pg. 54
For claims 2, 3, and 5-27, the claims recite an abstract idea of: lease financing of tenant improvements. The steps of independent claim 2 for: computing data…, the computation representing at least one of origination or managing an improvements lease: the data recording the space, a landlord of the space, a tenant, a space lease of the space from the landlord to the tenant, improvements to the space, and the improvements lease being a lease of the improvements from the landlord to the tenant, the improvements lease being distinct from the space lease, data describing the improvements lease being structured together with the space lease to support an accounting conclusion that the space lease and improvements lease are to be considered together as a single lease and classified as an operating lease, when considered collectively as an ordered combination, recites the abstract idea of lease financing of tenant improvements, and under the broadest reasonable interpretation, covers Certain Methods of Organizing Human Activity (fundamental economic practices; commercial or legal interactions: including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations).
Dependent claims 3, and 5-27 recite similar limitations as independent claim 2; and when analyzed as a whole are held to be patent ineligible under 35 U.S.C 101 because the additional recited limitations only refine the abstract further. For instance in claims 3, and 5-27, the additional steps of: wherein: the improvements are leased from a special purpose entity, the landlord of the space being the owner of, or lessor of the improvements to, the special purpose entity, financial statements of the special purpose entity being consolidated with financial statements of the landlord; wherein: the improvements being financed by debt issued by the special purpose entity, the debt being non-recourse against the special purpose entity, the landlord and the improvements; wherein the debt is secured by a rent obligation of the tenant under a lease of the improvements; wherein: the special purpose entity is capitalized by participations comprising: (a) an equity investment by the landlord of at least three percent of the value of the improvements and (b) debt issued by the special purpose entity for at least about eighty percent of the value of the improvements; wherein: at least about 80% of the capitalization of the special purpose entity is a loan to the special purpose entity secured by a triple-net absolute obligation of the tenant; wherein at least 3% of capitalization for the special purpose entity is a loan participation by the landlord; wherein at least 10% of capitalization for the special purpose entity is contributed by the landlord; wherein: a majority of the loan to the special purpose entity is supplied by a party other than the landlord, and the landlord owns a participation in the loan made to the special purpose entity; wherein a building in which the space is located is encumbered by a mortgage; reflect entry by the lender to the special purpose entity and a mortgagee of the mortgage into an inter-creditor agreement, each waiving any interest in the other's collateral; wherein the improvements have been constructed and are owned by the landlord, the tenant or jointly by landlord and tenant; reflect conveyance or leasing of the improvements to the special purpose entity before or concurrently with entry into the improvements lease; wherein: equity and/or debt investments by the landlord in a plurality of special purpose entities owned by the landlord, the respective special purpose entities owning respective improvements for lease to a corresponding tenant, are cross-collateralized; wherein: equity and/or debt investments by the landlord in a plurality of special purpose entities owned by the landlord, the respective special purpose entities owning respective improvements for lease to a corresponding tenant, are not cross-collateralized; wherein: the improvements being financed by debt issued by the special purpose entity, the debt being secured at least in part by a lien on the improvements; wherein: the improvements being financed by debt issued by the special purpose entity, the debt not being secured by a lien on the improvements; wherein the special purpose entity is a limited liability company, grantor trust, business trust, corporation, limited partnership, or other business association; wherein the special purpose entity has no ownership interest in any real property that includes the space; wherein: rent payments under the improvements lease have a present value at least equal to a value of the improvements at a time of commencement of the improvements lease; the improvements being off-balance-sheet for the tenant, financing for the improvements being related to the cost of funds of the tenant; wherein financing for the improvements is provided by an entity other than the tenant; reflect entry by the tenant into an obligation to construct the improvements and to assume costs associated with the construction; wherein: rent payments under the improvements lease are secured, in full or in part, by a personal or corporate guaranty or by a letter of credit of the tenant; wherein: the tenant is the only tenant in a building in which the space is located; wherein the space is one of a plurality of spaces of a building divided for lease to a plurality of tenants, and the tenant is one of the plurality of tenants; wherein: upon an event of default under the improvements lease, the tenant is obligated to purchase the improvements from the special purpose entity for a stipulated amount, under the broadest reasonable interpretation, are further refinements of Certain Methods of Organizing Human Activity because these further describe the improvements, the landlord, financial statements, financing, equity and debt investments, the capitalization of the special entity, the loan, mortgage, the special purpose entity, rent, tenant obligations, and the space.
For claims 28-30, 94, 96-103, and 105-109, the claims recite an abstract idea of: lease financing of tenant improvements. The steps of independent claim 28 for: solicit proposals over the….for financing for tenant improvements, data in the memory representing spaces, tenant improvements, landlords, tenants, space leases represented as leases of respective spaces leased respective landlords to respective tenants under respective space leases, and respective improvements leases of respective improvements to the corresponding space under an improvements lease that is a lease distinct from the corresponding space lease, the data and solicitation providing that respective improvements leases are to be structured together with the respective corresponding space leases to support an accounting conclusion that the corresponding space leases and improvements leases are to be considered together as respective single leases and classified as an operating lease; and solicit offer over the internet for financing from lenders to the tenants' proposals, and notify the respective tenant and lender when an offer matches a proposal, when considered collectively as an ordered combination, recites the abstract idea of lease financing of tenant improvements, and under the broadest reasonable interpretation, covers Certain Methods of Organizing Human Activity (fundamental economic practices; commercial or legal interactions: including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations).
Dependent claims 29, 30, 94, 96-103, and 105-109 recite similar limitations as independent claim 28; and when analyzed as a whole are held to be patent ineligible under 35 U.S.C 101 because the additional recited limitations only refine the abstract further. For instance in claims 29, 30, 94, 96-103, and 105-109, the additional steps of: solicit offers of financing using an auction protocol; store information on a plurality of tenant improvement loans closed between tenants and landlords, and to analyze the information; wherein: for at least one of the tenant improvement leases, rent payments under the improvements lease having a present value at least equal to a cost of the improvements at a time of commencement of the improvements lease; wherein: for at least one of the tenant improvements leases, at least 3% of capitalization for the special purpose entity is a loan participation by a landlord of the respective space; wherein: for at least one of the tenant improvements leases, at least 10% of capitalization for the special purpose entity is contributed by the landlord; wherein: for at least one of the tenant improvements leases, a majority of the loan to the special purpose entity is supplied by a party other than the landlord, and the landlord owns a participation in the loan made to the special purpose entity; wherein: for at least one of the tenant improvements leases, the improvements are financed by debt issued by the special purpose entity, the debt not being secured by a lien on the improvements; wherein: for at least one of the tenant improvements leases, the special purpose entity is a limited liability company, grantor trust, business trust, corporation, limited partnership, or other business association; wherein: for at least one of the tenant improvements leases, financing for the tenant improvements is provided by an entity other than the tenant; wherein: improvements to the space being financed by an entity other than a tenant of the space, financing for the improvements being obtained at the tenant's cost of funds; compute data…for at least one of originating, managing, or analyzing an improvements lease, the improvements lease being a lease of the improvements to the tenant under an improvements lease that is distinct from the space lease; wherein: for at least one of the improvements leases, the respective improvements are leased from a special purpose entity, the landlord of the space being the owner of, or lessor of the improvements to, the special purpose entity, financial statements of the special purpose entity being consolidated with financial statements of the landlord; wherein: the respective improvements being financed by debt issued by the special purpose entity, the debt being non-recourse against the respective special purpose entity, the respective landlord, and the respective improvements; wherein the debt is secured by a rent obligation of the respective tenant under a lease of the improvements; wherein: the special purpose entity is capitalized by participations comprising: (a) an equity investment by the landlord of at least three percent of the value of the improvements and (b) debt issued by the special purpose entity for at least about eighty percent of the value of the improvements; wherein: at least about 80% of the capitalization of the special purpose entity is a loan to the special purpose entity secured by a triple-net absolute obligation of the tenant; wherein: a majority of the loan to the special purpose entity is supplied by a party other than the landlord, and the landlord owns a participation in the loan made to the special purpose entity, under the broadest reasonable interpretation, are further refinements of Certain Methods of Organizing Human Activity because these further describe the financing, the loan, the rent, the capitalization of the special entity, the debt, and the improvements lease.
For claims 133-134, 136-139, 185-192, 195, and 196, the claims recite an abstract idea of: lease financing of tenant improvements. The steps of independent claim 133 for: compute data…, the computation to compute the amount of a lease payment under two distinct leases: a space least, being a lease of space from a landlord to a tenant; an improvements lease, being a lease of improvements to the space to the tenant, the improvements lease being distinct from the space lease, data describing the improvements and space lease reflecting that they are structured together to support an accounting conclusion that the space lease and improvements lease are to be considered together as a single lease and classified as an operating lease, when considered collectively as an ordered combination, recites the abstract idea of lease financing of tenant improvements, and under the broadest reasonable interpretation, covers Certain Methods of Organizing Human Activity (fundamental economic practices; commercial or legal interactions: including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations).
Dependent claims 134, 136-139, 185-192, 195, and 196 recite similar limitations as independent claim 133; and when analyzed as a whole are held to be patent ineligible under 35 U.S.C 101 because the additional recited limitations only refine the abstract further. For instance in claims 134, 136-139, 185-192, 195, and 196, the additional steps of: wherein: the improvements are leased from a special purpose entity, the landlord of the space being the owner of, or lessor of the improvements to, the special purpose entity, financial statements of the special purpose entity being consolidated with financial statements of the landlord; wherein: the improvements being financed by debt issued by the special purpose entity, the debt being non-recourse against the special purpose entity, the landlord and the improvements; wherein: the special purpose entity is capitalized by participations comprising: (a) an equity investment by the landlord of at least three percent of the value of the improvements and (b) debt issued by the special purpose entity for at least about eighty percent of the value of the improvements; wherein: at least about 80% of the capitalization of the special purpose entity is a loan to the special purpose entity secured by a triple-net absolute obligation of the tenant; wherein: rent payments under the improvements lease have a present value at least equal to a value of the improvements at a time of commencement of the improvements lease; wherein: the tenant improvements were financed by debt issued by a special purpose entity, the debt being non-recourse against the special purpose entity, the landlord and the improvements; wherein: the debt is secured by a lien on the segregable payments for lease of the tenant improvements; wherein: at least about 80% of the capitalization of the special purpose entity is a loan to the special purpose entity secured by a triple-net absolute obligation of the tenant; wherein: the present value of segregable amounts paid for lease of the tenant improvements are at least equal to a value of the tenant improvements at a time of commencement of the lease of the tenant improvements; wherein: financing for the tenant improvements was provided by an entity other than the tenant of the space, the tenant improvements financing being obtained at the tenant's cost of funds; wherein the lease of the tenant improvements and the lease of the space arise in a lease document with distinct lease covenants covering the space lease and the tenant improvements lease; wherein the lease of the tenant improvements and the lease of the space arise in an amendment or restructuring of a preexisting lease agreement; the segregable amount of the payment payable to a tenant improvements payee being paid into a payment distribution agent for distribution of segregable amounts to appropriate payees; wherein: the improvements were financed by debt issued by a special purpose entity, the debt being non-recourse against the special purpose entity, the lessor and the shorter-lived asset; wherein: at least about 80% of the capitalization of the special purpose entity is a loan to the special purpose entity secured by a triple-net absolute obligation of the lessee, under the broadest reasonable interpretation, are further refinements of Certain Methods of Organizing Human Activity because these further describe the improvements, the financing, the lease, the capitalization of the special entity, the debt, and the rent.
For claims 206-211, the claims recite an abstract idea of: lease financing of tenant improvements. The steps of independent claim 206 for: computing data…, the computation representing at least one of origination or managing a lease, the computation reflecting the lease being a lease of an interest in real estate from a special purpose entity to a tenant, the special purpose entity being a legal entity distinct from a landlord of the real estate that includes the leased interest, the landlord having sufficient ownership in the special purpose entity to establish the landlord's genuine economic risk in the lease, the special purpose entity owning the lease of the leased interest, development of an asset underlying the leased interest being financed by debt issued by the special purpose entity, and the debt being non-recourse against the special purpose entity, the landlord and the asset; the data processed…representing at least one of a group consisting of (a) the landlord, (b) the tenant, and (c) an investor or lender who contributed capital to the asset or to an entity owning the asset, when considered collectively as an ordered combination, recites the abstract idea of lease financing of tenant improvements, and under the broadest reasonable interpretation, covers Certain Methods of Organizing Human Activity (fundamental economic practices; commercial or legal interactions: including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations).
Dependent claims 207-211 recite similar limitations as independent claim 206; and when analyzed as a whole are held to be patent ineligible under 35 U.S.C 101 because the additional recited limitations only refine the abstract further. For instance in claims 207-211, the additional steps of: reflect lease of a space from the landlord to the tenant under a space lease; lease of improvements to the space from the special purpose entity to the tenant under the lease, being an improvements lease that is distinct from the space lease, the improvements lease being structured together with the space lease to support an accounting conclusion that the space lease and improvements lease are to be considered together as a single lease and classified as an operating lease; wherein the interest leased is an interest in a shorter-lived asset, reflect lease of a longer-lived asset to the tenant, rent payments under the lease of the shorter-lived asset having a present value at least equal to a cost of the shorter-lived asset at a time of commencement of the lease of the shorter-lived asset; the lease to the shorter-lived asset being structured together with the lease to the longer-lived asset to support an accounting conclusion that the two leases are to be considered together as a single lease and classified as an operating lease; reflect lease of tenant improvements within a space from a special purpose entity to a tenant under the lease, the special purpose entity being a legal entity owned, or leased the tenant improvements, by a landlord of the space, the special purpose entity being capitalized by participations comprising: (a) an equity investment by the landlord of at least three percent of the value of the tenant improvements and (b) debt issued by the special purpose entity for at least about eighty percent of the value of the tenant improvements; wherein: the special purpose entity is a legal entity owned by a landlord of a building, the building being divided for lease to multiple tenants, at least about 80% of the capitalization of the special purpose entity being a loan to the special purpose entity secured by an absolute obligation of the tenant; reflect improvement to a space, financing for the improvements being provided by an entity other than a tenant of the space, financing for the improvements being obtained at the tenant's cost of funds, lease of the space from the landlord to the tenant under a space lease; and lease of the improvements to the tenant under the lease, being an improvements lease that is distinct from the space lease, under the broadest reasonable interpretation, are further refinements of Certain Methods of Organizing Human Activity because these further describe the leases, the special purpose entity, capitalization of the special purpose entity, the financing, improvements, the financing, the lease, the capitalization of the special entity, the debt, and the rent.
For claims 212-217, the claims recite an abstract idea of: lease financing of tenant improvements. The steps of independent claim 212 for: compute data…, the computation performing accounting to reflect receipt of a rent payment under a lease of an interest in real estate from a special purpose entity to a tenant, the computation reflecting: the special purpose entity being a legal entity distinct from a landlord of the real estate that includes the leased interest, the landlord having sufficient ownership in the special purpose entity to establish the landlord's genuine economic risk in the lease, the special purpose entity owning the lease of the leased interest, development of an asset underlying the leased interest being financed by debt issued by the special purpose entity, and the debt being non-recourse against the special purpose entity, the landlord and the asset; data processed….representing at least one of a group consisting of the landlord, the tenant, the special purpose entity, a dollar amount of a transaction, and an investor or lender, when considered collectively as an ordered combination, recites the abstract idea of lease financing of tenant improvements, and under the broadest reasonable interpretation, covers Certain Methods of Organizing Human Activity (fundamental economic practices; commercial or legal interactions: including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations).
Dependent claims 213-217 recite similar limitations as independent claim 212; and when analyzed as a whole are held to be patent ineligible under 35 U.S.C 101 because the additional recited limitations only refine the abstract further. For instance in claims 213-217, the additional steps of: reflect receipt of a rent payment under a lease of a space from the landlord to the tenant under a space lease; reflect receipt of a rent payment under a lease of improvements to the space from the special purpose entity to the tenant under the lease of claim 212, being an improvements lease that is distinct from the space lease, the improvements lease being structured together with the space lease to support an accounting conclusion that the space lease and improvements lease are to be considered together as a single lease and classified as an operating lease; wherein the interest leased is an interest in a shorter-lived asset, and reflect receipt of a rent payment under a lease of a longer-lived asset to the tenant, rent payments under the lease of the shorter-lived asset having a present value at least equal to a cost of the shorter-lived asset at a time of commencement of the lease of the shorter-lived asset; the lease to the shorter-lived asset being structured together with the lease to the longer-lived asset to support an accounting conclusion that the two leases are to be considered together as a single lease and classified as an operating lease; reflect receipt of a rent payment under a lease of tenant improvements within a space from a special purpose entity to a tenant under the lease of claim 212, the special purpose entity being a legal entity owned, or leased the tenant improvements, by a landlord of the space, the special purpose entity being capitalized by participations comprising: (a) an equity investment by the landlord of at least three percent of the value of the tenant improvements and (b) debt issued by the special purpose entity for at least about eighty percent of the value of the tenant improvements; wherein: the special purpose entity is a legal entity owned by a landlord of a building, the building being divided for lease to multiple tenants, at least about 80% of the capitalization of the special purpose entity being a loan to the special purpose entity secured by an absolute obligation of the tenant; reflect improvement to a space, financing for the improvements being provided by an entity other than a tenant of the space, financing for the improvements being obtained at the tenant's cost of funds; receipt of a rent payment under a lease of the space from the landlord to the tenant under a space lease; and receipt of a rent payment under a lease of the improvements to the tenant under the lease of claim 212, being an improvements lease that is distinct from the space lease, under the broadest reasonable interpretation, are further refinements of Certain Methods of Organizing Human Activity because these further describe the leases, the rent, capitalization of the special purpose entity, the special purpose entity, and the improvements.
For claims 218-230, the claims recite an abstract idea of: lease financing of tenant improvements. The steps of independent claim 218 for: compute data…, the computation representing at least one of origination or managing of two leases, the computation reflecting that the leases are a lease of a longer-lived asset and a lease of a shorter-lived asset to a lessee under two separate leases, rent payments under the lease of the shorter-lived asset have a present value at least equal to a cost of the shorter-lived asset at a time of commencement of the lease of the shorter-lived asset; and at least some portion of the lease to the shorter-lived asset is structured together with the lease to the longer-lived asset to support an accounting conclusion that the two leases are to be considered together as a single lease, classified as an operating lease, when considered collectively as an ordered combination, recites the abstract idea of lease financing of tenant improvements, and under the broadest reasonable interpretation, covers Certain Methods of Organizing Human Activity (fundamental economic practices; commercial or legal interactions: including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations).
Dependent claims 219-230 recite similar limitations as independent claim 218; and when analyzed as a whole are held to be patent ineligible under 35 U.S.C 101 because the additional recited limitations only refine the abstract further. For instance in claims 219-230, the additional steps of: wherein: the longer-lived asset is a space in a building; and the shorter-lived asset is tenant improvements to the space; wherein: the tenant improvements are owned by a special purpose entity, being a legal entity owned by a landlord of the space; reflect capitalization of the special purpose entity by participations comprising: (a) an equity investment by the landlord of at least three percent of the value of the tenant improvements and (b) debt issued by the special purpose entity for at least about eighty percent of the value of the tenant improvements; wherein: the special purpose entity is capitalized by participations comprising: (a) an equity investment by the landlord of at least three percent of the value of the tenant improvements and (b) debt issued by the special purpose entity for at least about eighty percent of the value of the tenant improvements; wherein: the building is divided for lease to multiple lessees; wherein: at least about 80% of the capitalization of the special purpose entity is a loan to the special purpose entity secured by a triple-net absolute obligation of the lessee; wherein the tenant improvements have been constructed and are owned by the landlord, the lessee, or jointly by landlord and lessee; and reflect conveyance of or lease of the tenant improvements to the special purpose entity before or concurrently with entry into the improvements lease; wherein: the landlord owns a plurality of special purpose entities, each owning tenant improvements for lease to a lessee; wherein the special purpose entity has no ownership interest in any real property that includes the space; the tenant improvements being off-balance-sheet for the lessee, financing for the improvements being related to the cost of funds of the lessee; reflect entry by the lessee into an obligation to construct the tenant improvements and to assume costs associated with the construction; wherein: upon an event of default under the improvements lease, the lessee is obligated to purchase the improvements from the special purpose entity for a stipulated amount, under the broadest reasonable interpretation, are further refinements of Certain Methods of Organizing Human Activity because these further describe the longer lived asset, the shorter lived asset, the improvements, capitalization of the special purpose entity, the building, the landlord, and the lessee.
For claims 231-235, the claims recite an abstract idea of: lease financing of tenant improvements. The steps of independent claim 231 for: compute data…, the computation performing accounting to reflect receipt of a rent payment under leases of a longer-lived asset and a shorter-lived asset to a lessee under two separate leases, the computation reflecting that rent payments under the lease of the shorter-lived asset have a present value at least equal to a cost of the shorter-lived asset at a time of commencement of the lease of the shorter-lived asset; the lease to the shorter-lived asset being structured together with the lease to the longer-lived asset to support an accounting conclusion that the two leases are to be considered together as a single lease, classified as an operating lease; data processed…representing at least one of a group consisting of a lessor, the lessee, a dollar amount of a transaction, and an investor or lender, when considered collectively as an ordered combination, recites the abstract idea of lease financing of tenant improvements, and under the broadest reasonable interpretation, covers Certain Methods of Organizing Human Activity (fundamental economic practices; commercial or legal interactions: including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations).
Dependent claims 232-235 recite similar limitations as independent claim 231; and when analyzed as a whole are held to be patent ineligible under 35 U.S.C 101 because the additional recited limitations only refine the abstract further. For instance in claims 232-235, the additional steps of: wherein: the longer-lived asset is a space in a building; and the shorter-lived asset is tenant improvements to the space; reflect capitalization of a special purpose entity, being a legal entity owned by a landlord of the space, by participations comprising: (a) an equity investment by the landlord of at least three percent of the value of the tenant improvements and (b) debt issued by the special purpose entity for at least about eighty percent of the value of the tenant improvements; wherein: at least about 80% of the capitalization of the special purpose entity is a loan to the special purpose entity secured by a triple-net absolute obligation of the lessee; wherein: the longer-lived asset is space in a building divided for lease to multiple lessees, under the broadest reasonable interpretation, are further refinements of Certain Methods of Organizing Human Activity because these further describe the longer lived asset, the shorter lived asset, and capitalization of a special purpose entity.
For claims 236-250, the claims recite an abstract idea of: lease financing of tenant improvements. The steps of independent claim 231 for: compute data…, the computation representing at least one of origination or managing an improvements lease, the computation reflecting the improvements lease being a lease of tenant improvements within a space from a special purpose entity to a tenant, the special purpose entity being a legal entity owned by a landlord of the space, the special purpose entity being capitalized by participations comprising: (a) an equity investment by the landlord of at least three percent of the value of the tenant improvements and (b) debt issued by the special purpose entity for at least about eighty percent of the value of the tenant improvements, when considered collectively as an ordered combination, recites the abstract idea of lease financing of tenant improvements, and under the broadest reasonable interpretation, covers Certain Methods of Organizing Human Activity (fundamental economic practices; commercial or legal interactions: including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations).
Dependent claims 237-250 recite similar limitations as independent claim 236; and when analyzed as a whole are held to be patent ineligible under 35 U.S.C 101 because the additional recited limitations only refine the abstract further. For instance in claims 237-250, the additional steps of: wherein: the building is divided for lease to multiple tenants, at least about 80% of the capitalization of the special purpose entity being a loan to the special purpose entity secured by a triple-net absolute obligation of the tenant; wherein at least 3% of capitalization for the special purpose entity is a loan participation by the landlord; wherein a building in which the space is located is encumbered by a mortgage; and reflect entry by the lender to the special purpose entity and a mortgagee of the mortgage into an inter-creditor agreement, each waiving any interest in the other's collateral; financial statements of the special purpose entity are consolidated with financial statements of the landlord; wherein: the tenant improvements being financed by debt issued by the special purpose entity, the debt being non-recourse against the special purpose entity, the landlord and the tenant improvements; wherein the debt is secured by a triple-net absolute rent obligation of the tenant under a lease of the tenant improvements; wherein: the tenant improvements have been constructed and are owned by the landlord, the tenant or jointly by landlord and tenant; and reflect conveyance of or lease of the tenant improvements to the special purpose entity before or concurrently with entry into the improvements lease; wherein: the tenant improvements being financed by debt issued by the special purpose entity, the debt not being secured by a lien on the tenant improvements; wherein the special purpose entity has no ownership interest in any real property that includes the space; the tenant improvements being off-balance-sheet for the tenant, financing for the tenant improvements being related to the cost of funds of the tenant; wherein financing for the tenant improvements is provided by an entity other than the tenant; wherein: the tenant is the only tenant in a building in which the space is located; wherein the space is one of a plurality of spaces of a building divided for lease to a plurality of tenants, and the tenant is one of the plurality of tenants; wherein: upon an event of default under the improvements lease, the tenant is obligated to purchase the tenant improvements from the special purpose entity for a stipulated amount, under the broadest reasonable interpretation, are further refinements of Certain Methods of Organizing Human Activity because these further describe the building, the capitalization of the special purpose entity, financing, the debt, the improvements, and the special purpose entity.
For claims 251-253, the claims recite an abstract idea of: lease financing of tenant improvements. The steps of independent claim 251 for: compute data…, the computation performing accounting to reflect receipt of a rent payment under a lease of tenant improvements within a space from a special purpose entity to a tenant, the computation reflecting the landlord having sufficient ownership in the special purpose entity to establish the landlord's genuine economic risk in the tenant improvements lease, the special purpose entity being capitalized by participations comprising: (a) an equity investment by the landlord of at least three percent of the value of the tenant improvements and (b) debt issued by the special purpose entity for at least about eighty percent of the value of the tenant improvements; data processed…representing at least one of a group consisting of (a) the landlord, (b) the tenant, (c) a dollar amount of a transaction, and (d) an investor or lender, when considered collectively as an ordered combination, recites the abstract idea of lease financing of tenant improvements, and under the broadest reasonable interpretation, covers Certain Methods of Organizing Human Activity (fundamental economic practices; commercial or legal interactions: including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations).
Dependent claims 252 and 253 recite similar limitations as independent claim 251; and when analyzed as a whole are held to be patent ineligible under 35 U.S.C 101 because the additional recited limitations only refine the abstract further. For instance in claims 252 and 253, the additional steps of: wherein: the building is divided for lease to multiple tenants, at least about 80% of the capitalization of the special purpose entity being a loan to the special purpose entity secured by a triple-net absolute obligation of the tenant; wherein: the tenant improvements being financed by debt issued by the special purpose entity, the debt being non-recourse against the special purpose entity, the landlord and the tenant improvements, under the broadest reasonable interpretation, are further refinements of Certain Methods of Organizing Human Activity because these further describe the building, the capitalization of the special purpose entity, financing, the debt, the improvements, and the special purpose entity.
Independent claim 254 recites an abstract idea of: lease financing of tenant improvements. The steps of independent claim 254 for: solicit proposals over the internet for leasing of tenant improvements, data in the memory representing leases of respective spaces leased from respective special purpose entities to respective tenants under respective space leases, the solicited proposals requesting respective improvements leases, the improvements leases being leases of improvements to real estate space from special purpose entities to tenants, the special purpose entities being legal entities distinct from landlords of the leased spaces, the landlords having sufficient ownership in the respective special purpose entities to establish the landlords' genuine economic risk in the improvements leases, the special purpose entities owning the leases of the improvements, the improvements leases being separate from the space leases; the special purpose entity being capitalized by participations comprising (a) an equity investment by the landlord of at least three percent of the value of the tenant improvements and (b) debt issued by the special purpose entity for at least about eighty percent of the value of the tenant improvements; development of assets underlying the improvements leases being financed by debt issued by the respective special purpose entities, and the debt being non-recourse against the respective special purpose entities, landlords, and improvement assets; the data and solicitation providing that respective improvements leases are to be structured together with respective corresponding space leases to support an accounting conclusion that the corresponding space leases and improvements leases are to be considered together as respective single leases and classified as an operating lease; and notify the respective tenant and lender when an offer matches a proposal; compute accounting data to reflect receipt of a rent payment under leases formed as a result of the solicitation, when considered collectively as an ordered combination, recites the abstract idea of lease financing of tenant improvements, and under the broadest reasonable interpretation, covers Certain Methods of Organizing Human Activity (fundamental economic practices; commercial or legal interactions: including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations).
Independent claim 255 recites an abstract idea of: lease financing of tenant improvements. The steps of independent claim 255 for: soliciting proposals over the internet for leasing of tenant improvements, the soliciting to collected data into a memory, collecting data representing leases of respective spaces leased from respective landlords to respective tenants under respective space leases, including property type and location; collecting data into the memory describing respective improvements leases, the improvements leases being leases of improvements to respective spaces from special purpose entities to tenants, the special purpose entities being legal entities distinct from landlords of the leased spaces, the special purposes entities being legal entities distinct from landlords of the leased spaces, the special purpose entities owning the leases of the improvements, the improvements leases being separate from the space leases, the improvements leases structured together with respective corresponding space leases to support an accounting conclusion that the corresponding space leases and improvements leases are to be considered together as respective single leases and classified as an operating lease; collecting data into the memory describing respective special purpose entities as lessors of respective improvements leases, the special purpose entity being capitalized by participations comprising (a) an equity investment by the respective landlord of at least three percent of the value of the tenant improvements and (b) debt issued by the respective special purpose entity for at least about eighty percent of the value of the tenant improvements; collecting data into the memory describing assets underlying the respective improvements leases, development of respective assets having been financed by debt issued by the respective special purpose entities, and the debt being non-recourse against the respective special purpose entities, landlords, and improvement assets; computing modeling studies evaluating alternative structures for improvements leases structured together with respective corresponding space leases to support an accounting conclusion that the corresponding space leases and improvements leases are to be considered together as respective single leases against other financing alternatives, collecting data into the memory describing applications by tenants for improvements leases, including loan type, attributes of the building in which a space to be improved is located and attributes of tenancy; processing data into the memory under programming providing that respective improvements leases are to be structured together with respective corresponding space leases to support an accounting conclusion that the corresponding space leases and improvements leases are to be considered together as respective single leases and classified as an operating lease; and computing accounting data to reflect receipt of a rent payment under leases formed as a result of the solicitation, and displaying the accounting data to users as the users request, when considered collectively as an ordered combination, recites the abstract idea of lease financing of tenant improvements, and under the broadest reasonable interpretation, covers Certain Methods of Organizing Human Activity (fundamental economic practices; commercial or legal interactions: including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations).
For claims 256-262, the claims recite an abstract idea of: lease financing of tenant improvements. The steps of independent claim 256 for: programmed: to solicit proposals from tenants for financing for tenant improvements to spaces leased by the respective tenants under respective space leases, each proposal offering terms for lease of tenant improvements to the corresponding space under an improvements lease distinct from the corresponding space lease, each improvements lease to be structured together with the corresponding space lease to support an accounting conclusion that the space lease and improvements lease are to be considered together as a single lease and classified as an operating lease; and to solicit offers of financing from lenders to the tenants' proposals, and notify the respective tenant and lender when an offer matches a proposal, when considered collectively as an ordered combination, recites the abstract idea of lease financing of tenant improvements, and under the broadest reasonable interpretation, covers Certain Methods of Organizing Human Activity (fundamental economic practices; commercial or legal interactions: including agreements in the form of contracts; legal obligations; advertising, marketing or sales activities or behaviors; business relations).
Dependent claims 257-261 recite similar limitations as independent claim 255; and when analyzed as a whole are held to be patent ineligible under 35 U.S.C 101 because the additional recited limitations only refine the abstract further. For instance in claims 257, 261 and 262, the additional steps of: a landlord of the space being the owner of, or lessor of the tenant improvements to, the special purpose entity under tax accounting rules, financial statements of the special purpose entity being consolidated with financial statements of the landlord; wherein: the special purpose entity is capitalized by participations comprising: (a) an equity investment by the landlord of at least three percent of the value of the improvements and (b) debt issued by the special purpose entity for at least about eighty percent of the value of the improvements; wherein: at least about 80% of the capitalization of the special purpose entity is a loan to the special purpose entity secured by a triple-net absolute obligation of the tenant, under the broadest reasonable interpretation, are further refinements of Certain Methods of Organizing Human Activity because these further describe the landlord and the special purpose entity.
In dependent claims 258-260, the additional steps of: wherein: the improvements being financed by debt issued by the special purpose entity, the debt being non-recourse against the special purpose entity, the landlord and the improvements; wherein the debt is secured by a rent obligation of the tenant under a lease of the improvements; and wherein: rent payments under the improvements lease have a present value at least equal to a value of the improvements at a time of commencement of the improvements lease, under the broadest reasonable interpretation, are further refinements of Certain Methods of Organizing Human Activity because these further describe the finance debt and