DETAILED ACTION
Acknowledgements
The amendment filed 3/17/2026 is acknowledged.
Claims 1-5 and 8-14 are pending.
Claims 1-5 and 8-14 have been examined.
Notice of Pre-AIA or AIA Status
The present application, filed on or after March 16, 2013, is being examined under the first inventor to file provisions of the AIA .
Continued Examination Under 37 CFR 1.114
A request for continued examination under 37 CFR 1.114, including the fee set forth in 37 CFR 1.17(e), was filed in this application after final rejection. Since this application is eligible for continued examination under 37 CFR 1.114, and the fee set forth in 37 CFR 1.17(e) has been timely paid, the finality of the previous Office action has been withdrawn pursuant to 37 CFR 1.114. Applicant's submission filed on 3/17/2026 has been entered.
Response to Amendment/Arguments
Regarding the rejection of the claims under 35 USC 101, applicant states that the claims are not directed to an abstract idea because they are directed to a technical solution to managing token distribution within a blockchain, rather than “certain methods of organizing human activity” or “mathematical concepts.” Applicant further states that the claims do not relate to the types of activity included in the “certain methods of organizing human activity” grouping of abstract ideas.
Examiner notes, however, that the features recited in the claims detail a method of issuing shares demonstrating a user’s investment, distributing dividends or rewards to the user based on their stake, and allowing the user to withdraw their dividends or rewards by calculating an amount of the user’s dividends or rewards and sending the amount to the user. The functions carried out in the steps of the claims describe a commercial interaction or a fundamental economic activity, because they describe a process of providing a user with shares representing an amount they have invested, distributing dividends or rewards to the user, and allowing a user to withdraw their dividends or rewards by calculating an amount of the user’s dividends or rewards using a formula and distributing the amount to the user. Therefore, because commercial interactions and fundamental economic activity are subgroups that fall within the “certain methods of organizing human activity” grouping of abstract ideas, the claimed steps fall within the “certain methods of organizing human activity” grouping of abstract ideas. Additionally, the calculations performed in the distribution target token withdrawal step further recite a mathematical formula and mathematical calculations, and thus fall within the “mathematical concepts” grouping of abstract ideas.
Applicant additionally states that the claims integrate the abstract idea into a practical application because they reflect an improvement in a technology or technical field. Specifically, applicant states that the present embodiments enable the management of tokens on a blockchain based on equity interests so that the smart contract can handle all transactions to support this functionality on the blockchain system, which improves the functionality of the blockchain system and computers constituting the blockchain. Applicant states that blockchains are known to improve computer functioning. Applicant lists some benefits of blockchain systems.
Examiner notes, however, that the claims are not directed to any features related to the technical implementation of a blockchain or to the technology for implementing a blockchain. Rather, a blockchain is used to maintain a record of transactions to manage and distribute funds. Managing and distributing funds in the manner claimed is an economic, rather than technical activity. The fact that a blockchain is used to perform the steps only involves using a blockchain as a tool to automate and or implement the accounting for an otherwise economic activity. Therefore, the claims do not provide an improvement to blockchain technology.
Applicant also states that the present embodiments provide a specific solution which is to work around the problem of variables stored in a smart contract only being able to be changed when an interaction occurs by the operation of calculating an amount of distribution by multiplying the stake by the amount of distribution target tokens obtained by excluding the cumulative amount of distribution target tokens deposited when the corresponding user withdrew distribution target tokens last, i.e., immediately before, from the cumulative amount of distribution target tokens deposited up to that point in time.
Examiner notes, however, that this only involves performing a calculation to determine an amount of funds to distribute. This is a mathematical calculation, used to determine a distribution of funds, which is itself an economic activity. Thus, this feature is abstract, as it is both a mathematical concept and a “certain method of organizing human activity.” This does not improve the technology of blockchain or smart contracts. Therefore, this feature does not provide a practical application or significantly more than the abstract idea.
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 1-5 and 8-14 are rejected under 35 U.S.C. 101 because the claimed invention is directed to an abstract idea without significantly more.
In the instant case, claims 1-5, 8-12, and 14 are directed to a method, and claim 13 is directed to a device comprising at least one computer. Therefore, these claims fall within the four statutory categories of invention.
The claims recite issuing shares demonstrating a user’s investment, distributing dividends or rewards to the user based on their stake, and allowing the user to withdraw their dividends or rewards by calculating an amount of the user’s dividends or rewards and sending the amount to the user, which is an abstract idea. Specifically, the claims recite “a proof-of-stake token acquisition step in which . . . issues a proof-of-stake token to a user . . . based on a stake acquisition request signal for acquisition of a proof-of-stake token received from the user . . .,” “a distribution target token deposit step in which . . . receives a distribution target token transmission signal for deposit of distribution target tokens from a token distributor . . . and updates a cumulative amount of distribution target tokens deposited based on the distribution target token transmission signal,” and “a distribution target token withdrawal step in which . . . receives a distribution target token withdrawal request signal from the user . . . and transmits distribution target tokens to the user . . . based on the distribution target token withdrawal request signal,” “wherein the distribution target token withdrawal step comprises: step 1 in which . . . receives the distribution target token withdrawal request signal from the user . . ., and calculates an amount of distribution of distribution target tokens for the user . . . based on the distribution target token withdrawal request signal; and step 2 in which . . . transmits an amount of distribution target tokens corresponding to the calculated amount of distribution to the user . . .; and wherein step 1 is performed such that . . . calculates the amount of distribution by the formula "(a cumulative amount of distribution target tokens deposited so far - a cumulative amount of distribution target tokens deposited when the user withdrew distribution target tokens last) x a stake," where the stake is "an amount of the proof-of-stake token owned by the user/a total amount of proof-of-stake tokens issued,”” which is grouped within the “certain methods of organizing human activity” grouping of abstract ideas in prong one of step 2A of the Alice/Mayo test (MPEP 2106.04 & 2106.04(a)) because the steps describe a process of providing a user with shares representing an amount they have invested, distributing dividends or rewards to the user, and allowing a user to withdraw their dividends or rewards by calculating an amount of the user’s dividends or rewards using a formula and distributing the amount to the user, which is a commercial or legal interaction, and also a fundamental economic practice. Additionally, the claims are also grouped within the “mathematical concepts” grouping of abstract ideas because they recite a mathematical formula for calculating an amount of a distribution of distribution target tokens, and also recite a mathematical calculation as they recite steps for calculating an amount of distribution of distribution target tokens. Accordingly, the claims recite an abstract idea (See MPEP 2106.04(a)).
This judicial exception is not integrated into a practical application because, when analyzed under prong two of step 2A of the Alice/Mayo test (See MPEP 2106.04(d)), the additional elements of the claims such as a blockchain system, a user system, a token distributor system, and a token management contract of the blockchain system, as well as a device comprising at least one computer configured to implement a proof-of-stake token acquisition management unit, a distribution target token deposit management unit, and a distribution target token withdrawal management unit, merely use a computer as a tool to perform an abstract idea. Specifically, these additional elements perform the steps or functions of “a proof-of-stake token acquisition step in which . . . issues a proof-of-stake token to a user . . . based on a stake acquisition request signal for acquisition of a proof-of-stake token received from the user . . .,” “a distribution target token deposit step in which . . . receives a distribution target token transmission signal for deposit of distribution target tokens from a token distributor . . . and updates a cumulative amount of distribution target tokens deposited based on the distribution target token transmission signal,” and “a distribution target token withdrawal step in which . . . receives a distribution target token withdrawal request signal from the user . . . and transmits distribution target tokens to the user . . . based on the distribution target token withdrawal request signal,” “wherein the distribution target token withdrawal step comprises: step 1 in which . . . receives the distribution target token withdrawal request signal from the user . . ., and calculates an amount of distribution of distribution target tokens for the user . . . based on the distribution target token withdrawal request signal; and step 2 in which . . . transmits an amount of distribution target tokens corresponding to the calculated amount of distribution to the user . . .; and wherein step 1 is performed such that . . . calculates the amount of distribution by the formula "(a cumulative amount of distribution target tokens deposited so far - a cumulative amount of distribution target tokens deposited when the user withdrew distribution target tokens last) x a stake," where the stake is "an amount of the proof-of-stake token owned by the user/a total amount of proof-of-stake tokens issued.” Viewed as a whole, the use of a processor/computer as a tool to implement the abstract idea does not integrate the abstract idea into a practical application because it requires no more than a computer performing functions that correspond to acts required to carry out the abstract idea. The additional elements do not involve improvements to the functioning of a computer, or to any other technology or technical field (MPEP 2106.05(a)), and the claims do not apply or use the abstract idea in some other meaningful way beyond generally linking the use of the abstract idea to a particular technological environment, such that the claim as a whole is more than a drafting effort designed to monopolize the exception (MPEP 2106.05(e) and Vanda Memo). Therefore, the claims do not, for example, purport to improve the functioning of a computer. Nor do they effect an improvement in any other technology or technical field. Accordingly, the additional elements do not impose any meaningful limits on practicing the abstract idea, and the claims are directed to an abstract idea.
The claims do not include additional elements that are sufficient to amount to significantly more than the judicial exception because, when analyzed under step 2B of the Alice/Mayo test (See MPEP 2106.05), the additional elements of using a blockchain system, a user system, a token distributor system, and a token management contract of the blockchain system, as well as a device comprising at least one computer configured to implement a proof-of-stake token acquisition management unit, a distribution target token deposit management unit, and a distribution target token withdrawal management unit to perform the steps amounts to no more than using a computer or processor to automate and/or implement the abstract idea of issuing shares demonstrating a user’s investment, distributing dividends or rewards to the user based on their stake, and allowing the user to withdraw their dividends or rewards by calculating an amount of the user’s dividends or rewards and sending the amount to the user. As discussed above, taking the claim elements separately, these additional elements perform the steps or functions of “a proof-of-stake token acquisition step in which . . . issues a proof-of-stake token to a user . . . based on a stake acquisition request signal for acquisition of a proof-of-stake token received from the user . . .,” “a distribution target token deposit step in which . . . receives a distribution target token transmission signal for deposit of distribution target tokens from a token distributor . . . and updates a cumulative amount of distribution target tokens deposited based on the distribution target token transmission signal,” and “a distribution target token withdrawal step in which . . . receives a distribution target token withdrawal request signal from the user . . . and transmits distribution target tokens to the user . . . based on the distribution target token withdrawal request signal,” “wherein the distribution target token withdrawal step comprises: step 1 in which . . . receives the distribution target token withdrawal request signal from the user . . ., and calculates an amount of distribution of distribution target tokens for the user . . . based on the distribution target token withdrawal request signal; and step 2 in which . . . transmits an amount of distribution target tokens corresponding to the calculated amount of distribution to the user . . .; and wherein step 1 is performed such that . . . calculates the amount of distribution by the formula "(a cumulative amount of distribution target tokens deposited so far - a cumulative amount of distribution target tokens deposited when the user withdrew distribution target tokens last) x a stake," where the stake is "an amount of the proof-of-stake token owned by the user/a total amount of proof-of-stake tokens issued.”” These functions correspond to the actions required to perform the abstract idea. Viewed as a whole, the combination of elements recited in the claims merely recite the concept of issuing shares demonstrating a user’s investment, distributing dividends or rewards to the user based on their stake, and allowing the user to withdraw their dividends or rewards by calculating an amount of the user’s dividends or rewards and sending the amount to the user. Therefore, the use of these additional elements does no more than employ the computer as a tool to automate and/or implement the abstract idea. The use of a computer or processor to merely automate and/or implement the abstract idea cannot provide significantly more than the abstract idea itself (MPEP 2106.05 (f) & (h)). Therefore, the claim is not patent eligible.
Dependent claims 2-5 and 8-12 further describe the abstract idea of issuing shares demonstrating a user’s investment, distributing dividends or rewards to the user based on their stake, and allowing them to withdraw the dividends or rewards. Specifically, claim 2 further describes the steps involved in performing the proof-of-stake token acquisition, which is part of the abstract idea. Claim 3 describes checking an amount of stake acquisition tokens compared to proof-of-stake tokens based on an exchange ratio, which only involves performing a comparison or calculation as part of the abstract idea. Claim 4 describes the transfers of tokens that take place when issuing a proof-of-stake token to a user, which further describes the commercial interaction as it only involves transferring value and accounting for it. Claim 5 describes steps involved in transferring distribution target tokens. This also describes a transfer of value which is a business transaction, and thus further describe the abstract idea. Claims 8-9 and 12 describe calculating an amount of distribution target tokens to distribute to the user, distributing those tokens to the user, and updating records, which is directed to the abstract idea as it further describes the commercial interaction. Claims 10 and 14 describe a process for allowing a user to liquidate their stake in the investment, which is also a commercial interaction and thus further describes the abstract idea. Claim 11 describes a process for transferring a user’s shares to another user, which is also directed to an abstract idea because it describes a business process for transferring a user’s assets. The use of smart contract in a blockchain to perform the steps does not provide a practical application or significantly more because it only involves using computers as tool to automate and/or implement the abstract idea. The dependent claims do not include additional elements that integrate the abstract idea into a practical application or that provide significantly more than the abstract idea. Therefore, the dependent claims are also not patent eligible.
Statement Regarding Prior Art
The closest prior art of David Rugendyke, “Rocket Pool 2.5 — Tokenised Staking,” available at: https://medium.com/rocket-pool/rocket-pool-2-5-tokenised-staking-48601d52d924 (published 5/29/2020) (“Rugendyke”) discloses providing a user with rETH tokens after they deposit ETH tokens into the Rocket Pool network, where the rETH tokens represent the user’s tokenized staking deposit, which reads on a proof-of-stake token acquisition step in which a blockchain system issues a proof-of-stake token to a user of a user system based on a stake acquisition request signal for acquisition of a proof-of-stake token received from the user system (Rugendyke “When a user deposits into the Rocket Pool network, they will instantly receive the rETH token which represents a tokenised staking deposit and the rewards it gains over time in the Rocket Pool network”). Rugendyke further discloses that this token also includes the rewards the user’s staked tokens earn over time (Rugendyke “When a user deposits into the Rocket Pool network, they will instantly receive the rETH token which represents a tokenised staking deposit and the rewards it gains over time in the Rocket Pool network” and “What’s different from 2.0? rETH did exist in Rocket Pool 2.0, but it was a 1:1 token that could be traded for BETH when the user’s staking duration was completed (min 3 months). It is now much more flexible, and has a dynamic trade-in ratio for BETH — its value increases as the Rocket Pool network earns rewards.”).
Austin, et al. (US 2020/0184469) (“Austin”) additionally discloses allowing a client to lock a certain number of tokens, and receiving interest tokens in exchange (Austin Fig. 6, Steps 605-610; ¶¶ 41 97), and earning rewards based on the locked tokens (Austin ¶¶ 41). Bogdan Batog, et al., “Scalable Reward Distribution on the Ethereum Blockchain” (2018, DappCon Berlin) (“Batog”) further discloses functions used to stake Ethereum, which include a deposit(stake) functions by which a participant can add a new stake, a distribute() function which provides rewards to participants, and a withdraw() function which returns the participant’s stake (Batog Section II; Section (III)(D)).
However, the prior art does not disclose, neither singly nor in combination, the specific claimed combination of steps, which involve a blockchain system issuing a proof-of-stake token to a user of a user system based on a stake acquisition request signal for acquisition of a proof-of-stake token received from the user system, the blockchain system receiving a distribution target token transmission signal for deposit of distribution target tokens from a token distributor system and updating a cumulative amount of distribution target tokens deposited based on the distribution target token transmission signal, and the blockchain system receiving a distribution target token withdrawal request signal from the user system and transmitting distribution target tokens to the user of the user system based on the distribution target token withdrawal request signal.
Conclusion
Any inquiry concerning this communication or earlier communications from the examiner should be directed to Mohammad A. Nilforoush whose telephone number is (571)270-5298. The examiner can normally be reached Monday-Friday 12pm-7pm.
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/Mohammad A. Nilforoush/Primary Examiner, Art Unit 3697