DETAILED ACTION
Response to Amendment
This Final office action is in response to Applicant’s amendment filed 9/30/2025. Claims 2-4, 10-12, 15 and 17-20 have been amended. Claims 2-20 are pending.
The present application, filed on or after March 16, 2013, is being examined under the first inventor to file provisions of the AIA .
Applicant's arguments filed 9/30/2025 have been fully considered but they are not persuasive. Additionally, Applicant's amendment necessitated the new ground(s) of rejection presented in this Office action.
The previously pending objections to claims 1 and 10 have been withdrawn.
Specification
The disclosure is objected to because of the following informalities: The CROSS-REFERENCE TO RELATED APPLICATION section must be updated, specifically the status of Application 17/867,336. Appropriate correction is required.
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 2-20 are rejected under 35 U.S.C. 101 because the claimed invention is directed to non-statutory subject matter. The claims are directed to an abstract idea without significantly more.
Here, under step 1 of the Alice analysis, method claims 2-16 are directed to a series of steps, system claims 17-19 are directed to a first and second database and a processor, and computer-readable storage medium claim 20 is directed to a program executable by a processor. Thus the claims are directed to a process, machine, and manufacture, respectively.
Under step 2A Prong One of the analysis, the claimed invention is directed to an abstract idea without significantly more. The claims recite merging different user structures, including storing, receiving, merging, and transmitting steps.
The limitations of storing, receiving, merging, and transmitting, are a process that, under its broadest reasonable interpretation, covers organizing human activity concepts, but for the recitation of generic computer components.
Specifically, the claim elements recite storing member data regarding a first set of lines corresponding to a first set of existing relationships, and storing member data regarding a second set of lines corresponding to a second set of existing relationships; receiving data for at least one member of the first data structure or the second data structure, the data regarding at least a position of the at least one member within the respective data structure and corresponding to a set of relationships of the at least one member; merging the first data structure and the second data structure to create a new merged multiline data structure that includes member data regarding the at least one member, wherein the set of relationships of the at least one member is integrated into and maintained within the merged multiline data structure, and wherein a maximum number of the relationships is raised when the at least one member has met one or more threshold criteria; and transmitting data regarding the merged multiline data structure, and updates the merged multiline data structure to add one or more additional lines corresponding to new relationships with the at least one member based on the data.
That is, other than reciting memory data structures, an administrative network computer, and a communication network the claim limitations merely cover commercial interactions, including marketing or sales activities or behaviors, thus falling within the “Certain Methods of Organizing Human Activity” grouping of abstract ideas. Accordingly, the claims recite an abstract idea.
Under Step 2A Prong Two, the eligibility analysis evaluates whether the claim as a whole integrates the recited judicial exception into a practical application of the exception. This judicial exception is not integrated into a practical application. The claims include a database, an administrative network computer, and a communication network. The database, administrative network computer, and communication network in the steps is recited at a high-level of generality, such that it amounts no more than mere instructions to apply the exception using a generic computer component. Accordingly, this additional element does not integrate the abstract idea into a practical application because it does not impose any meaningful limits on practicing the abstract idea. As a result, 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. As discussed above with respect to integration of the abstract idea into a practical application, the additional element of a database, an administrative network computer, and a communication network amounts to no more than mere instructions to apply the exception using a generic computer component. Mere instructions to apply an exception using a generic computer component cannot provide an inventive concept.
None of the dependent claims recite additional limitations that are sufficient to amount to significantly more than the abstract idea. Claims 2-10 recite additional adding, identifying, determining, and distributing steps. Claims 11-14 recite additional entering and replacing steps, while further describing the unique code. Claims 15 and 16 further describes the transmitted data, and further reciting an additional providing step. Similarly, dependent claims 18 and 19 recite additional details that further restrict/define the abstract idea. A more detailed abstract idea remains an abstract idea.
Under step 2B of the analysis, the claims include, inter alia, a database, an administrative network computer, and a communication network.
As discussed with respect to Step 2A Prong Two, the additional elements in the claim amount to no more than mere instructions to apply the exception using a generic computer component. The same analysis applies here in 2B, i.e., mere instructions to apply an exception on a generic computer cannot integrate a judicial exception into a practical application at Step 2A or provide an inventive concept in Step 2B.
There isn’t any improvement to another technology or technical field, or the functioning of the computer itself. Moreover, individually, there are not any meaningful limitations beyond generally linking the abstract idea to a particular technological environment, i.e., implementation via a computer system. Further, taken as a combination, the limitations add nothing more than what is present when the limitations are considered individually. There is no indication that the combination provides any effect regarding the functioning of the computer or any improvement to another technology.
In addition, as discussed in paragraph 0028 of the specification, “A 150 Admin Network is a software service which may be hosted locally, remotely, or on the 109 Cloud or Internet and which provides for the 140 Merged MLM a system of modules and databases which are essential or beneficial to the running of an MLM. In some embodiments the 150 Admin Network may be applicable to any MLM structure, including but not limited to, Unilevel, matrix, binary, or Multiline.”
As such, this disclosure supports the finding that no more than a general purpose computer, performing generic computer functions, is required by the claims.
Viewed as a whole, these additional claim element(s) do not provide meaningful limitation(s) to transform the abstract idea into a patent eligible application of the abstract idea such that the claim(s) amounts to significantly more than the abstract idea itself. Therefore, the claim(s) are rejected under 35 U.S.C. 101 as being directed to non-statutory subject matter. See Alice Corporation Pty. Ltd. v. CLS Bank Int’l et al., No. 13-298 (U.S. June 19, 2014).
Claim Rejections - 35 USC § 103
In the event the determination of the status of the application as subject to AIA 35 U.S.C. 102 and 103 (or as subject to pre-AIA 35 U.S.C. 102 and 103) is incorrect, any correction of the statutory basis (i.e., changing from AIA to pre-AIA ) for the rejection will not be considered a new ground of rejection if the prior art relied upon, and the rationale supporting the rejection, would be the same under either status.
The following is a quotation of 35 U.S.C. 103 which forms the basis for all obviousness rejections set forth in this Office action:
A patent for a claimed invention may not be obtained, notwithstanding that the claimed invention is not identically disclosed as set forth in section 102, if the differences between the claimed invention and the prior art are such that the claimed invention as a whole would have been obvious before the effective filing date of the claimed invention to a person having ordinary skill in the art to which the claimed invention pertains. Patentability shall not be negated by the manner in which the invention was made.
Claims 2-20 are rejected under 35 U.S.C. 103 as being unpatentable over Huhem (US 20120095942 A1), in view of Rolf et al (US 20070219871 A1).
As per claim 2, Huhem discloses a method for merging different data structures into a multiline data structure (i.e., an entity-relationship diagram illustrating the relationship 100 between entities in an MLM structure working together to solicit selected commonly acquainted prospects into a multi-level marketing structure, ¶ 0035), the method comprising:
storing in memory data structures that include at least a first data structure storing member data regarding a first set of lines corresponding to a first set of existing relationships, and a second data structure storing member data regarding a second set of lines corresponding to a second set of existing relationships (i.e., Referring now to FIG. 2, an entity-relationship diagram of entities involved in soliciting selected commonly acquainted prospects into a multi-level marketing structure in accordance with the present invention. The entity-relationship 100 comprises a master distributor 102, a member 104a, a member 104b, a member 104c, a friend 106a, prospective members 106a-f shown in a personal contact pool, a level one 202, and a level two 204. The master distributor 102, members 104a-c, and MLM structure a substantially described above in relation to FIG. 1., ¶ 0051-0052);
receiving data for at least one member of the first data structure or the second data structure, the data regarding at least a position of the at least one member within the respective data structure and corresponding to a set of relationships of the at least one member (i.e., FIG. 2, an entity-relationship diagram of entities involved in soliciting selected commonly acquainted prospects into a multi-level marketing structure in accordance with the present invention. The entity-relationship 100 comprises a master distributor 102, a member 104a, a member 104b, a member 104c, a friend 106a, prospective members 106a-f shown in a personal contact pool, a level one 202, and a level two 204, ¶ 0051);
merging the first data structure and the second data structure to create a new merged multiline data structure that includes member data regarding the at least one member, wherein the set of relationships of the at least one member is integrated into and maintained within the merged multiline data structure (i.e., The prospective members 106a-f, in the shown embodiment, comprise the personal contacts of the member 104a. In various embodiments of the present invention, the solicitor 108 interacts electronically with DPDs under the control of the member 104a via the Internet, and copies personal contact information stored in database files under the exclusive control of the member 104a, ¶ 0053); and
transmitting data regarding the merged multiline data structure to an administrative network computer over a communication network, wherein the administrative network computer updates the merged multiline data structure to add one or more additional lines corresponding to new relationships with the at least one member based on the data (i.e., FIG. 4 is an entity-relationship diagram illustrating the relationship 400 between entities operating in conjunction with an MLM structure to solicit selected commonly acquainted prospects into a multi-level marketing structure in accordance with the present invention. The relationship 400 comprises a member 104, a solicitor 108, a personal contact pool 110, persistent storage 402a-b, contact information 404a-b, a MLM structure, 406, and remuneration 408, ¶ 0056. The member 104, solicitor 108, personal contact pool 110, contact information 404a-b, and MLM structure 406 are all substantially described above in relation to FIGS. 1-3, ¶ 0057).
Huhem does not explicitly disclose wherein a maximum number of the relationships is raised when the at least one member has met one or more threshold criteria.
Rolf et al disclose commissions are allocated to an affiliate member, such as affiliate member P1, based upon purchases made by persons in the affiliate member's downstream multi-level organization. Such commissions are based upon a commission structure of the marketing program and could include commissions payable through a certain number of levels of an affiliate member's network (or only on one level, such as level 7, for example), and could include qualifying criteria such as the necessity that an affiliate member directly sponsor and/or retain a selected number of new affiliate members before a commission is paid. It will be understood that the affiliate membership program could provide a structure that enables promotions to progressively more senior levels, with resulting higher commissions, based upon criteria being met (¶ 0063).
Huhem and Rolf et al are concerned with commission structure management. It would have been obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to include wherein a maximum number of the relationships is raised when the at least one member has met one or more threshold criteria in Huhem, as seen in Rolf et al, since the claimed invention is merely a combination of old elements, and in the combination each element merely would have performed the same function as it did separately, and one of ordinary skill in the art would have recognized that the results of the combination were predictable.
As per claim 3, Huhem discloses adding the additional lines to the merged multiline user structure based on threshold criteria by the administrative network computer (i.e., the predetermined MLM criteria is dynamic, and optimized automatically through analysis of historical MLM sales data to maximize profits to the MLM structure and/or MLM members, ¶ 0047).
As per claim 4, Huhem discloses identifying that the threshold criteria are met based on weighting one or more of the relationships between the at least one member and one or more members that are downline from the at least one member within the merged multiline user structure (i.e., the member 104 first contacts his personal contacts before relaying their contact information to the solicitor 108. In various embodiments of the present invention, the member 104 may send a sample product and personalized message to one or more of his personal contacts before those contacts are solicited by the solicitor 108, ¶ 0055).
As per claim 5, Huhem discloses determining a total distribution received by the at least one member, wherein the threshold criteria include the total distribution (i.e., Commission payments to members may be made in accordance with a predetermined MLM criteria. In some embodiments, the predetermined MLM criteria is dynamic, and optimized automatically through analysis of historical MLM sales data to maximize profits to the MLM structure and/or MLM members, ¶ 0047).
As per claim 6, Huhem discloses the administrative network computer determines the total distribution of the at least one member based on stored rules in a database of the administrative network computer (i.e., Commission payments to members may be made in accordance with a predetermined MLM criteria. In some embodiments, the predetermined MLM criteria is dynamic, and optimized automatically through analysis of historical MLM sales data to maximize profits to the MLM structure and/or MLM members, ¶ 0047).
As per claim 7, Huhem discloses the administrative network computer distributes the total distribution to the at least one member via the communication network (i.e., Commission payments to members may be made in accordance with a predetermined MLM criteria. In some embodiments, the predetermined MLM criteria is dynamic, and optimized automatically through analysis of historical MLM sales data to maximize profits to the MLM structure and/or MLM members, ¶ 0047).
As per claim 8, Huhem discloses identifying one or more distributions received by the at least one member from each set of relationships of the at least one member, wherein the threshold criteria include the one or more distributions (i.e., The remuneration 408 comprises payment made by the MLM structure 406 to the member 104 in the form of commission realized on product sales by the solicitor 108 to the personal contacts, or downlines of the member 104, ¶ 0059).
As per claims 9 and 10, Huhem does not disclose identifying total online interactions associated with the at least one member, wherein the threshold criteria include the total online interactions, and receiving online data associated with a code of the at least one member from a third-party vendor system.
Rolf et al disclose Person P1 may become an affiliate member by accessing source 12 (or gateway 26) after seeing or hearing information about the offering. In particular, for example, person P1 may direct a browser program in a communications device 14 to a website of source 12 or gateway 26 by typing or pasting a URL into a browser field or by selecting a link provided in an advertisement or in a search result. In such a case, person P1 may be placed at the top of a new branch of the affiliate marketing network. Person P1 may be placed at the top of a new branch of the affiliate marketing network, may be randomly assigned to a position with the affiliate marketing network by a random position generator, or may be placed directly beneath another affiliate member based upon some identifying criteria (such as the person P1 accessing affiliate member profiles and selecting a position within the network, or person P1 selecting an affiliate member who communicated the opportunity to person P1, or person P1 being automatically matched with another affiliate member based upon criteria such as closet physical address, etc.) (¶ 0041).
Huhem and Rolf et al are concerned with commission structure management. It would have been obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to include identifying total online interactions associated with the at least one member, wherein the threshold criteria include the total online interactions, and receiving online data associated with a code of the at least one member from a third-party vendor system in Huhem, as seen in Rolf et al, since the claimed invention is merely a combination of old elements, and in the combination each element merely would have performed the same function as it did separately, and one of ordinary skill in the art would have recognized that the results of the combination were predictable.
As per claims 11 and 12, Huhem does not disclose entering a placeholder value by the administrative network computer to add the additional lines to the merged multiline user structure, and replacing the placeholder value with user data based on online usage of a unique code associated with the at least one member.
Rolf et al disclose FIG. 3 is representative of a database table having records, represented by rows in the table, associated with each affiliate member, P1, P2, P3…Pn. The database table also has columns, or database fields (or dimensions), representative of information corresponding to the affiliate members (¶ 0058).
Additionally, in accordance with another aspect of the invention, the web-based forwarding tool of the present invention can be used to further add identifying information into forwarded emails. Thus, as described above, an email sent to Person P1 includes a link that uniquely identifies person P1. In one embodiment, when person P1 selects the Forward link in the email for accessing the web-based email tool of the present invention, source 12 or gateway 26 populates the link to be presented in the forwarded email with an additional identifying code (¶ 0056).
Huhem and Rolf et al are concerned with commission structure management. It would have been obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to include entering a placeholder value by the administrative network computer to add the additional lines to the merged multiline user structure, and replacing the placeholder value with user data based on online usage of a unique code associated with the at least one member in Huhem, as seen in Rolf et al, since the claimed invention is merely a combination of old elements, and in the combination each element merely would have performed the same function as it did separately, and one of ordinary skill in the art would have recognized that the results of the combination were predictable.
As per claims 13 and 14, Huhem does not disclose the unique code is an embedded uniform resource location (URL) of a webpage, the online usage of the unique code is at the webpage, and further comprising generating a new unique code based on the online usage of the unique code at the webpage by a device of a new member.
Rolf et al disclose FIGS. 5a and 5b illustrate examples of techniques that the present invention may employ in using an affiliate member's unique identifier to create a unique link or HTML tag. In FIG. 5a, assuming that the unique identifier for person P1 is "P1" and that the URL for the source 12 is www.gofiniti.com, the link http://www.p1.gofiniti.com is used. As shown, the unique identifier is used in a subdomain, thereby creating a unique electronic address for the affiliate member P1 (¶ 0046).
Huhem and Rolf et al are concerned with commission structure management. It would have been obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to include the unique code is an embedded uniform resource location (URL) of a webpage, the online usage of the unique code is at the webpage, and further comprising generating a new unique code based on the online usage of the unique code at the webpage by a device of a new member in Huhem, as seen in Rolf et al, since the claimed invention is merely a combination of old elements, and in the combination each element merely would have performed the same function as it did separately, and one of ordinary skill in the art would have recognized that the results of the combination were predictable.
As per claim 15, Huhem discloses the transmitted data regarding the merged multiline user structure to the administrative network computer is stored in a database of the administrative network computer (i.e., The relationship 400 comprises a member 104, a solicitor 108, a personal contact pool 110, persistent storage 402a-b, contact information 404a-b, a MLM structure, 406, and remuneration 408, ¶ 0056).
As per claim 16, Huhem discloses providing a network portal, wherein the network portal provides access to the database of the administrative network computer upon verifying credentials of the at least one member (i.e., FIG. 4 is an entity-relationship diagram illustrating the relationship 400 between entities operating in conjunction with an MLM structure to solicit selected commonly acquainted prospects into a multi-level marketing structure in accordance with the present invention. The relationship 400 comprises a member 104, a solicitor 108, a personal contact pool 110, persistent storage 402a-b, contact information 404a-b, a MLM structure, 406, and remuneration 408, ¶ 0056) .
Claims 17-19 are rejected based upon the same rationale as the rejection of claims 2, 3, and 16, respectively, since they are the system claims corresponding to the method claims.
Claim 20 is rejected based upon the same rationale as the rejection of claim 2, since it is the computer-readable storage medium claim corresponding to the method claim.
Response to Arguments
In the Remarks, Applicant argues that under prong 1 of step 2A, "certain methods of organizing human activity" are limited to fundamental economic principles, financial or commercial transactions, or interpersonal behaviors. The Office Action argues that because the present "claims recite merging different user structures," that the claims "cover commercial interactions including marketing or sales activities or behaviors. Id. at 3-4. Applicant notes that the 'user structures" are actually data structures that include data regarding members, and as such, the merging of the two data structures result in a merged data structure, which is highlighted in the present claims.
The step clearly refers to stored data such as can be stored in a data structure in memory. As such, the relationships are likewise represented by stored data in the respective data structure. The merging therefore refers to the merging of two separate data structures and the respective information regarding related data stored therein. Based on the foregoing, the present claims do not recite any commercial transactions, but rather the function of merging disparate data structures; and thus cannot recite "certain methods of organizing human activity." Based on the foregoing, the claims do not recite abstract ideas of "certain methods of organizing human activity." Thus, the present claims qualify as patent-eligible under prong one of step 2A without requiring further analysis. The Examiner respectfully disagrees.
As recited in paragraph 0003 of the specification “Multi-Level Marketing (MLM) companies are defined by a commission structure that is multi-level, such that a commission is paid to at least one member above the member who made a sale or purchase.” Additionally, paragraph 0021 recites “The Multi-Level Marketing Merger System may instantaneously reorganize connections and positions of the users from the Unilevel, Binary, or Matrix MLM into the Multiline MLM to reconcile different commission rules from two or more organizations with different structures to find the optimal commission structures for users and maximize commission rates.”
In addition, paragraph 0028 of the specification recites “A 143 Merged MLM GUI allows members, employees, executives or anyone otherwise involved with the 140 Merged MLM to interact with the 150 Admin Network through graphical icons and audio indicator such as primary notation, instead of text-based user interfaces, typed command labels or text navigation.” Moreover, paragraph 0029 recites “The 152 Admin network AN User Database contains initial data from the 108 Multiline MLM Merger Module, then is continuously updated by the 140 Merged MLM, members of the 140 Merged MLM, third parties, or any other entity which may enroll new members or edit the data of existing members in the 140 Merged MLM.”
Additionally, the claim language recites “storing member data regarding a first set of lines corresponding to a first set of existing relationships… receiving data for at least one member of the first data structure or the second data structure, the data regarding at least a position of the at least one member within the respective data structure and corresponding to a set of relationships of the at least one member…and merging the first data structure and the second data structure to create a new merged multiline data structure that includes member data regarding the at least one member, wherein the set of relationships of the at least one member is integrated into and maintained within the merged multiline data structure”
As such, and contrary to Applicant’s assertion, other than reciting memory data structures, an administrative network computer, and a communication network the claim limitations merely cover commercial interactions, including marketing or sales activities or behaviors, thus falling within the “Certain Methods of Organizing Human Activity” grouping of abstract ideas. Accordingly, the claims recite an abstract idea.
Applicant also argues none of the cited prior art references teach that a maximum number of the relationships is raised when the at least one member has met one or more threshold criteria' as recited in the independent claims. The Examiner respectfully disagrees.
As discussed in the updated rejection, and contrary to Applicant’s assertion, Huhem, in view of Rolf et al indeed disclose Applicant’s amended claim language.
Conclusion
Applicant's amendment necessitated the new ground(s) of rejection presented in this Office action. Accordingly, THIS ACTION IS MADE FINAL. See MPEP § 706.07(a). Applicant is reminded of the extension of time policy as set forth in 37 CFR 1.136(a).
A shortened statutory period for reply to this final action is set to expire THREE MONTHS from the mailing date of this action. In the event a first reply is filed within TWO MONTHS of the mailing date of this final action and the advisory action is not mailed until after the end of the THREE-MONTH shortened statutory period, then the shortened statutory period will expire on the date the advisory action is mailed, and any nonprovisional extension fee (37 CFR 1.17(a)) pursuant to 37 CFR 1.136(a) will be calculated from the mailing date of the advisory action. In no event, however, will the statutory period for reply expire later than SIX MONTHS from the mailing date of this final action.
Any inquiry concerning this communication or earlier communications from the examiner should be directed to ANDRE D BOYCE whose telephone number is (571)272-6726. The examiner can normally be reached M-F 10a-6:30p.
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If attempts to reach the examiner by telephone are unsuccessful, the examiner’s supervisor, Rutao (Rob) Wu can be reached at (571) 272-6045. The fax phone number for the organization where this application or proceeding is assigned is 571-273-8300.
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/ANDRE D BOYCE/Primary Examiner, Art Unit 3623 December 8, 2025