DETAILED ACTION
Claims 1, 7 and 12 have been amended.
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 .
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 1-16 are rejected under 35 U.S.C. 101 because the claimed invention is directed to a judicial exception without significantly more.
Step 1 (The Statutory Categories): Is the claim to a process, machine, manufacture, or composition of matter? MPEP 2106.03.
Step 1: Claims 1-16 are directed to a system, method, and non-transitory computer-readable media. Thus, each of the claims falls within one of the four statutory categories (step 1). However, the claims also fall within the judicial exception of an abstract idea (step 2). While claims 1, 7, and 12, are directed to different categories, the language and scope are substantially the same and have been addressed together below.
The analysis proceeds to Step 2A Prong One.
Step 2A Prong One: Does the claim recite an abstract idea, law of nature, or natural phenomenon? MPEP 2106.04.
The abstract idea of claim 1, 7 and 12 are (claim 1 being representative):
A computer-implemented method, the method comprising: receiving, at a computing device, a request from a first buyer for a guaranteed mortgage preapproval terms by a lender; in response to receiving the request, transmitting, by the computing device, a user interface to a computing device of the first buyer over at least one network to allow the first buyer to enter into the user interface data relevant to obtaining a guaranteed mortgage preapproval; receiving the data, at the computing device over the at least one network from the computer of the first buyer via the user interface, in response to the first buyer entering in the data into the user interface, wherein the received data comprises borrower information including a home value, a down payment, and a mortgage term; issuing, by the lender and via the computing device, the guaranteed mortgage preapproval to the first buyer, the guaranteed mortgage preapproval being represented by a cryptographic digital asset governed by a smart contract on a blockchain, wherein the cryptographic digital asset comprises a non-fungible token (NFT) having on-chain metadata that encodes (i) a token identifier, (ii) first buyer information, (iii) a property identifier, and (iv) preapproval constraints comprising at least a maximum loan amount, a minimum down-payment percentage, and an expiration timestamp; receiving, at the computing device, a request from the first buyer to prepare a contract record comprising terms of a buy-sell agreement for storing contract data in a blockchain or a database; and linking the guaranteed mortgage preapproval NFT with the contract record by submitting a blockchain transaction that (i) records, in association with the token identifier, a cryptographic hash of the contract record and (ii) invokes a smart-contract verification that the contract record satisfies the preapproval constraints, and upon successful verification, causes recordation in a new block in the blockchain distributed ledger and updates an on-chain NFT state to prevent the NFT from being linked to a different contract record, and wherein, if the smart-contract verification is not satisfied, the transaction does not record the cryptographic hash to the blockchain and does not update the non-fungible token state.
Here the claims are directed to a commercial or legal interactions which is directed to a certain method of organizing human activity groupings of abstract idea. Because the limitations above closely follow the steps of generating, receiving and disbursement of guaranteed preapprovals for transaction, the request is analyzed by the system to update the stored profile information as smart contracts. This further supported by [0014 and 0017] of applicant’s specification as filed.
The claim recites an abstract idea consistent with commercial or legal interaction of methods of organizing human activity grouping set forth in the see MPEP 2106.04.
Step 2A Prong Two: Does the claim recite additional elements that integrate the judicial exception into a practical application? MPEP 2106.04.
This judicial exception is not integrated into a practical application because the additional elements are merely instructions to apply the abstract idea to a computer, as described in MPEP 2106.05(f).
Claim 1, 7 and 12 recites the following additional elements: computer, device, user interface, data, network, cryptographic digital asset, smart contract, blockchain, non-fungible token (NFT), metadata, token identifier, property identifier, A non-transitory computer-readable medium, and processor.
These elements are merely instructions to apply the abstract idea to a computer, per MPEP 2106.05(f). Applicant has only described generic computing elements in their specification, as seen in [00144] of applicant’s specification as filed, for example.
Further, the combination of these elements is nothing more than a generic computing system applied to the tasks of the abstract idea. Because the additional elements are merely instructions to apply the abstract idea to a generic computing system, they do not integrate the abstract idea into a practical application, when viewed in combination. See MPEP 2106.05(f).
Therefore, per Step 2A Prong Two, the additional elements, alone and in combination, do not integrate the judicial exception into a practical application. The claim is directed to an abstract idea.
Step 2B (The Inventive Concept): Does the claim recite additional elements that amount to significantly more than the judicial exception? MPEP 2106.05.
Step 2B involves evaluating the additional elements to determine whether they amount to significantly more than the judicial exception itself.
The examination process involves carrying over identification of the additional element(s) in the claim from Step 2A Prong Two and carrying over conclusions from Step 2A Prong Two pertaining to MPEP 2106.05(f).
The additional elements and their analysis are therefore carried over: applicant has merely recited elements that facilitate the tasks of the abstract idea, as described in MPEP 2106.05(f).
Further, the combination of these elements is nothing more than a generic computing system. When the claim elements above are considered, alone and in combination, they do not amount to significantly more.
Therefore, per Step 2B, the additional elements, alone and in combination, are not significantly more. The claims are not patent eligible.
The analysis takes into consideration all dependent claims as well:
Dependent claims 3-6, 8-11 and 13-16 defines the abstract idea as identified.
Claim 3 recites the following additional elements: smart contract, computer-readable instructions, NFT, property identifier. Applicant has only described generic computing elements in their specification, as seen in {[0020 and 0034]} of applicant’s specification as filed. This does not integrate the abstract idea into practical application and/or add significantly more. The claim is ineligible. Refer to MPEP 2106.05(F).
Claim 4 recites the following additional elements: computing device, contract data, blockchain, database and NFT. Applicant has only described generic computing elements in their specification, as seen in {[0020]} of applicant’s specification as filed. This does not integrate the abstract idea into practical application and/or add significantly more. The claim is ineligible. Refer to MPEP 2106.05(F).
Claim 6 recites the following additional elements: smart contract, blockchain. Applicant has only described generic computing elements in their specification, as seen in {[0020]} of applicant’s specification as filed. This does not integrate the abstract idea into practical application and/or add significantly more. The claim is ineligible. Refer to MPEP 2106.05(F).
Dependent claim 5, 10 further describes the abstract idea. Claim 5, 10 is based on the claims describing an abstract idea of commercial or legal interactions which includes agreements in the form of contracts, legal obligations, transaction from loan application to finalized purchase or behaviors, and business relations. See Specification [0024] for further details. The cryptographic hash is merely generic technology that produces a token or unique identification code for the agreement. The cryptographic hash is not a technical improvement and merely implementing the abstract idea using generic technology. As such additional elements are not significantly more or transformative into a practical application. MPEP 2106.05(F). Therefore, the claims are covered under certain methods of mental process groupings of abstract ideas.
In conclusion the claims do not provide an inventive concept, because the claims do not recite additional elements or a combination of elements that amount to significantly more than the judicial exception of the claims. Therefore, whether taken individually or as an order combination, the claims are nonetheless rejected under 35 U.S.C. 101 as being directed to non-statutory subject matter.
Accordingly, claims 1-16 are rejected under 35 USC § 101 as being directed to non-statutory subject matter.
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.
The factual inquiries for establishing a background for determining obviousness under 35 U.S.C. 103 are summarized as follows:
1. Determining the scope and contents of the prior art.
2. Ascertaining the differences between the prior art and the claims at issue.
3. Resolving the level of ordinary skill in the pertinent art.
4. Considering objective evidence present in the application indicating obviousness or nonobviousness.
Claim(s) 1, 2, 7, 8, 12, and 13 are rejected under 35 U.S.C. 103 as being unpatentable over Tarmann et al [US2022,011,4663], hereafter Tarmann, in view of Jaeger et al [US2022,039,1868] hereafter Jaeger, in further view of So et al [US11139955] hereafter So.
As per claim 1, 7, and 12 (Similar scope and language);
Tarmann discloses a method system and a non-transitory computer readable medium comprising:
A computer-implemented method, the method comprising:
receiving, at a computing device, a request from a first buyer for a guaranteed mortgage preapproval terms by a lender; in response to receiving the request, (Claim 1)
And
A non-transitory computer-readable medium storing instructions that, when executed by a processor, performs a method, the method comprising: receiving, at a computing device, a request from a first buyer for a guaranteed mortgage preapproval terms by a lender; (Claim 7);
And
A system comprising: a processor configured for: receiving, at a computing device, a request from a first buyer for a guaranteed mortgage preapproval terms by a lender; (Claim 12);
Tarmann discloses;
{[0013] The method may include receiving, at one or more processors, information from a customer approved for a mortgage about preferences for a real estate property, and accessing, at a memory coupled to the one or more processors, a memory storage location to retrieve a plurality of mortgage ready real estate properties meeting one or more of the customer preferences information.
[0008] In another aspect, a computer-implemented method of approving a dynamic mortgage application may be provided. The method may include: (1) determining, via one or more processors, a customer is approved for a mortgage, including calculating, via the one or more processors, an amount in which the customer is approved for a mortgage loan based upon the information about the customer retrieved from the blockchain; (2) determining, via one or more processors, a real estate property is mortgage ready, including calculating, via the one or more processors, an appraisal value for the real estate property based upon the information about the real property retrieved from the blockchain; (3) comparing, via the one or more processors, the calculated amount the customer is approved for a mortgage loan with the calculated appraisal value of the real estate property; and/or (4) approving the mortgage application of the customer for the real estate property when the calculated amount the customer is approved for the mortgage loan meets, or exceeds, the calculated appraisal value of the real estate property, reducing a processing time and closing time of the mortgage. The method may include additional, less, or alternate actions, including those discussed elsewhere herein.}
Tarmann discloses;
transmitting, by the computing device, a user interface to a computing device of the first buyer over at least one network to allow the first buyer to enter into the user interface data relevant to obtaining a guaranteed mortgage preapproval;
{[0020] The method may include transmitting, via the one or more processors (and/or associated transceivers), the plurality of real estate properties meeting one or more of the customer preferences information to the customer. The method may include additional, less, or alternate actions, including those discussed elsewhere herein.}
Tarmann discloses;
receiving the data, at the computing device over the at least one network from the computer of the first buyer via the user interface, in response to the first buyer entering in the data into the user interface, wherein the received data comprises borrower information including a home value, a down payment, and a mortgage term;
{[0021] The one or more processors are configured to interface with the memory. In addition, the one or more processors are configured to execute the non-transitory computer executable instructions to cause the system to: receive information from a customer approved for a mortgage about preferences for a real estate property; access a memory associated with a memory storage location to retrieve a plurality of real estate properties meeting one or more of the customer preferences information, each real estate property of the plurality of real estate properties being mortgage ready; and/or transmit the identified plurality of real estate properties meeting the customer preferences information to the customer.}
Tarmann discloses;
including a home value, a down payment, and a mortgage term;
{[0130] In some examples, the method 1100 may further include calculating, via the one or more processors, a required down payment amount based upon the appraisal value of the requested real estate property, for example. In addition, the method may include comparing, via the one or more processors, the required down payment amount with a deposit account value of the customer accessed from one or more of the memory storage location or the blockchain.}
Tarmann discloses;
issuing, by the lender and via the computing device, the guaranteed mortgage preapproval to the first buyer, the guaranteed mortgage preapproval being represented by a cryptographic digital asset governed by a smart contract on a blockchain, wherein the cryptographic digital asset comprises a non-fungible token (NFT) having on-chain metadata that encodes (i) a token identifier, (ii) first buyer information, (iii) a property identifier, and (iv) preapproval constraints comprising at least a maximum loan amount, a minimum down-payment percentage, and an expiration timestamp;
{[0053] Generally, in one embodiment, customer unit 22 collects information regarding the customers operating computing devices 12-1 through 12-N (with customer permission, affirmative consent, or via the customer), stores the collected information in a customer profile database that includes a separate profile for each customer, and updates the blockchain system 200 with the customer information, creating a digital identity for each customer on the blockchain system 200, for example.
[0106] The method 800 may include determining, via one or more processors, such as one or more processors of the insurance entity 14, for example, a customer is approved for a mortgage (block 802). Determining a customer is approved for a mortgage or mortgage ready may include at least part of the method 600 depicted in FIG. 6 and described above. More generally, determining the customer is approved for a mortgage or mortgage ready may include identifying and accessing one or more of a blockchain or a memory storage location using a customer identification number to retrieve information about the customer and relative to an approval of a mortgage (see, e.g., blocks 606 and 608 of FIG. 6).
[0107] The method 800 may further include determining, again via the one or more processors, a real estate property is mortgage ready (block 804). Determining a real estate property is mortgage ready may include at least part of the method 700 depicted in FIG. 7 and described above. More generally, determining the real estate property is mortgage ready may include identifying one or more of a blockchain or memory storage location using a real estate property identification number, and accessing one or more of the blockchain or the memory storage location to retrieve information about the real estate property (e.g., blocks 704, 706 of FIG. 7).}
Tarmann discloses;
receiving, at the computing device, a request from the first buyer to prepare a contract record comprising terms of a buy-sell agreement for storing contract data in a blockchain or a database; and
{[0088] More specifically, and in one example, the method 600 may include receiving, at one or more processors, such as the one or more processors of the insurance entity 14, a request for a mortgage associated with a customer identification number (block 602). Said another way, the one or more processors may receive a request from a customer for a mortgage, and the customer may be associated with a customer identification number. The method may further include identifying, via the one or more processors of the insurance entity, one or more of a blockchain or a memory storage location associated with the customer. The customer's blockchain or the customer's mortgage storage location may be identified using the customer identification number (block 604), for example.}
Tarmann discloses;
with the contract record by submitting a blockchain transaction that (i) records, in association with the token identifier, a cryptographic hash of the contract record and
{[0097] Referring now to FIG. 7, an exemplary computer-implemented method 700 for using one or more of a blockchain or a memory storage location to determine a real estate property is mortgage ready is depicted. Each real estate property may correspond to one or more of a respective real estate property identification number (PIN) (such as a tax identification number), a multiple listing service (MLS) number or record, or street address or other record or identifier tracked by a blockchain that is maintained by one or more participants. In some examples, the one or more participants may be one or more of the nodes 212, 214, 216 described above and depicted in FIG. 3A, for example. In addition, the blockchain may be the blockchain 222 of the blockchain system 200 of FIG. 1 and/or the blockchain 500 of FIG. 5. The steps of the flow diagram may be performed by the nodes, such as the nodes depicted in FIG. 3A. The method 700 may include additional, fewer, or alternative actions, including those described elsewhere herein.}
Tarmann does not disclose the NFT, however, Jaeger discloses;
linking the guaranteed mortgage preapproval NFT
{[0010] The present invention accommodates NFT transactions in real time, with access available continuously. Transactions and owner ship information can be available and logged in a blockchain for security and verification purposes.}
Motivation: It would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to combined/modify/adjust the Tarmann et al’ssmart contract preapproval to include Jaeger et al’s non-fungible token (NFT), since Tarmann teaches receiving request from a first buyer for a guaranteed mortgage preapproval, transmitting the plurality of real estate properties, receiving information about preferences for a real estate from a customer approved for a mortgage, which can be identified ( See Tarmann [0008, 0053, 0106- 0107 and 0130]). The combination would have been obvious because a person of ordinary skill in the art since the system and method provides disbursement, management and issuance of guaranteed preapprovals in real property transactions and recording by a smart contract, the inclusion of a non-fungible token (NFT) by Jaeger enables a secure transaction. See Jaeger [0010].
The combination of Tarmann and Jaeger does not explicitly disclose the verification, however, So, discloses;
(ii) invokes a smart-contract verification that the contract record satisfies the preapproval constraints, and upon successful verification, causes recordation in a new block in the blockchain distributed ledger and updates an on-chain NFT state to prevent the NFT from being linked to a different contract record, and wherein, if the smart-contract verification is not satisfied, the transaction does not record the cryptographic hash to the blockchain and does not update the non-fungible token state.
{[Col 24, Line 22-31] The proof of stake protocol is another optional protocol that may be implemented by blockchains. In this type of protocol, the validator's stake is represented by the amount of digital assets held. Validators accept, reject or otherwise validate a block to be added to the blockchain based on the amount of digital assets held by the Validator on the blockchain. If the Validators are successful in validating and adding the block, such a protocol, in embodiments, will award successful Validators are a fee in proportion to their stake.}
[Col. 5, line 15-32] verifying, by the digital asset computer system, the order characteristics of the respective loan order are valid auction order characteristics; (2) in the case where the side of the transaction is lend, verifying, by the digital asset computer system, the respective user has sufficient amounts of the first digital asset to cover the first auction loan order if filled in full; (iii) upon successful verification of each respective auction loan order in step (a)(ii), the steps of: (1) updating, by the digital asset computer system, each respective lender user account associated with each respective lender to set aside sufficient reserves in the first digital asset, sufficient to cover each respective auction loan order which has been successfully verified if filled in full; and (2) storing in first electronic auction loan order book, by the digital asset computer system on one or more computer readable mediums, each respective auction loan order which has been successfully verified;}
Motivation: It would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to combined/modify/adjust the combination Tarmann and Jaeger et al’s smart contract preapproval to include So et al’s smart-contract successful verification of contract record since Tarmann and Jaeger teaches receiving request from a first buyer for a guaranteed mortgage preapproval, transmitting, via the one or more processors (and/or associated transceivers), the plurality of real estate properties, receiving information from a customer approved for a mortgage about preferences for a real estate property, which can be identified, and linking the preapproval to the NFT. (See Tarmann [0008, 0053, 0106- 0107 and 0130] and Jaeger [0010]). The combination would have been obvious because a person of ordinary skill in the art since the system and method provides disbursement, management and issuance of guaranteed preapprovals in real property transactions and recording by a smart contract, the inclusion of a smart-contract verification to verify the validity of the transaction enables successful verification of each loan and updating the digital asset. See So, [Col 24, Line 22-31 and Col. 5, line 15-32].
As per claim 2, 8 and 13 (Similar scope and language);
Tarmann discloses;
The method of claim 1, wherein the request to prepare the contract record is associated with an offer to buy real property backed by the guaranteed mortgage preapproval, and wherein the linking is performed in response to detection of a seller acceptance event associated with the offer.
{[0108] After it is determined the customer is approved for a mortgage and the real estate property is mortgage ready, the method 800 may further include comparing, via the one or more processors, such as the one or more processors of the insurance entity 14, a calculated amount the customer is approved for a mortgage with the calculated appraisal value of the real estate property (block 806). More specifically, the one or more processors may determine if the amount the customer is approved for a mortgage is equal to, or exceeds, the calculated appraisal value of the real estate property (block 808). If yes, the one or more processors may approve a mortgage application of the customer for the requested real estate property that is mortgage ready (block 810). The method may then further include updating, at the memory, one or more of a block for the blockchain or the memory storage location to indicate the customer mortgage application for the requested real estate property is approved (block 812).}
Claim(s) 3- 6, 9- 11, 14, 15 and 16 are rejected under 35 U.S.C. 103 as being unpatentable over Tarmann et al, in view of Jaeger et al, in view of So et al, as for claim 1, 7 and 12 and further in view of Madisetti et al [US10243743] hereafter Madisetti.
As per claim 3, 9 and 14 (Similar scope and language);
Tarmann does not disclose the use of a smart contract. However, Madisetti does disclose the following limitations:
The method of claim 2, wherein the contract is a smart contract that includes computer-readable instructions for verifying, authenticating and approving a property transfer-related event according to the terms and conditions of the buy-sell agreement, including verification that the property identifier in the contract record matches the property identifier encoded in the guaranteed mortgage preapproval NFT.
{[Col 12, line 61 – Col 13, Line 12], Platform 650 may charge a percentage of the interest rate on every transaction. Borrower Identity Smart Contracts 658 comprised by the platform 650 maintain the identity information of the borrowers 652. Lender Identity Smart Contracts 670 comprised by the platform 650 maintain the identity information of the lenders 656. Borrower Reputation and Credit Rating Smart Contracts 660 comprised by the platform 650 maintain the reputation information of the borrowers 652 and their credit ratings. Collateral Smart Contracts 664 comprised by the platform 650 maintain collateral information for the loans. A reputation system and collaterals for loans makes the lending process more reliable. The lending platform 650 uses smart contracts to create a credit rating and reputation system for borrowers. Each repayment and successful loan adds points to the borrower's credit rating and if a loan is not repaid then points are deducted from the borrower's credit rating. Such payments may be transferred to a cryptocurrency wallet 672 for the lender 656.}
Motivation: It would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to combined/modify/adjust the combination Tarmann et al’s smart contract preapproval to include Madisetti et al’s a smart contract that includes computer-readable instructions for verifying, authenticating and approving a property transfer-related event according to the terms and conditions of the buy-sell agreement, including verification that the property identifier in the contract record matches the property identifier encoded in the guaranteed mortgage preapproval NFT, since Tarmann teaches receiving request from a first buyer for a guaranteed mortgage preapproval, transmitting, via the one or more processors (and/or associated transceivers), the plurality of real estate properties, receiving information from a customer approved for a mortgage about preferences for a real estate property, which can be identified. See Tarmann [0008, 0053, 0106, 0107 and 0130]. The combination would have been obvious because a person of ordinary skill in the art since the system and method provides disbursement, management and issuance of guaranteed preapprovals in real property transactions and recording by a smart contract, the inclusion of collateral Smart Contracts that comprises a platform that maintains information for loans enables a reputable and reliable system for loan collaterals and also to guarantee that the transaction is securely executed according to the terms and conditions. See Madisetti, [Col 12, line 61 – Col 13].
As per claim 4;
Madisetti discloses;
The method of claim 3, further comprising: receiving, at the computing device, a request to prepare a second contract record for storing contract data regarding terms of a second contract in the blockchain or the database, wherein the second contract record is associated with an offer to buy the real property backed by a guaranteed mortgage preapproval NFT of a second buyer.
{[Col 3, Line 39 – 63]; Additionally, embodiments of the present invention are directed to a method of exchanging value across a blockchain network comprising receiving a first transaction smart contract, that may be a transaction, comprising a transaction amount global variable name request and a transaction amount, recording the first transaction to a second transaction smart contract on a first blockchain network, and registering the first transaction amount global variable name to a global variable name system, defining a transaction amount global variable.
The method further comprises defining a value of the transaction amount global variable responsive to the transaction amount, receiving a second transaction smart contract, which may also be a financial transaction, comprising a second transaction global variable name request and a second transaction amount, and registering the second transaction global variable name request to the global variable name system, defining a second transaction global variable. The method further comprises defining a value of the second transaction global variable responsive to the second transaction amount, receiving a transaction notification comprising the second transaction global variable name and a transaction value, recording the transaction notification to the second smart contract, and updating the value of the second transaction global variable responsive to the transaction value.}
Motivation: It would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to combined/modify/adjust the combination Tarmann et al’s smart contract preapproval to include Madisetti et al’s receiving a request to prepare a second contract record for storing contract data regarding terms of a second contract in the blockchain or the database, wherein the second contract record is associated with an offer to buy the real property backed by a guaranteed mortgage preapproval NFT of a second buyer, since Tarmann teaches receiving request from a first buyer for a guaranteed mortgage preapproval, transmitting, via the one or more processors (and/or associated transceivers), the plurality of real estate properties, receiving information from a customer approved for a mortgage about preferences for a real estate property, which can be identified, See Tarmann [0008, 0053, 0106, 0107 and 0130]. The combination would have been obvious because a person of ordinary skill in the art since the system and method provides disbursement, management and issuance of guaranteed preapprovals in real property transactions and recording by a smart contract, the inclusion of receiving a second transaction smart contract or a financial transaction, comprising a second transaction global variable name request and a second transaction amount, and registering the second transaction global variable name request to the global variable name system, defining a second transaction global variable enables a first buyer transacts with another buyer reliably. See Madisetti, [Col 3, Line 39 – 63].
The combination of Tarmann and Madisetti does not disclose the mortgage preapproval NFT, However, Jaeger does disclose the following limitations:
mortgage preapproval NFT
{[0010] The present invention accommodates NFT transactions in real time, with access available continuously. Transactions and owner ship information can be available and logged in a blockchain for security and verification purposes.
Motivation: It would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to combined/modify/adjust the Tarmann et al’ssmart contract preapproval to include Jaeger et al’s non-fungible token (NFT), since Tarmann teaches receiving request from a first buyer for a guaranteed mortgage preapproval, transmitting, via the one or more processors (and/or associated transceivers), the plurality of real estate properties, receiving information from a customer approved for a mortgage about preferences for a real estate property, which can be identified. See Tarmann [0008, 0053, 0106, 0107 and 0130]. The combination would have been obvious because a person of ordinary skill in the art since the system and method provides disbursement, management and issuance of guaranteed preapprovals in real property transactions and recording by a smart contract, the inclusion of a non-fungible token (NFT), enables a secure transaction. See Jaeger [0010]).
As per claim 5, 10, 15 (Similar scope and language);
So, discloses;
The method of claim 4, further comprising, in response to the second buyer's NFT being linked to the second contract record, recording a cryptographic hash of the second contract record in association with a token identifier of the second buyer's NFT and preventing linkage of the second buyer's NFT to any other contract record.
{[Col. 91, Line 10 – 22] As step S6301, the digital asset computer system provides to a first user device associated with a first user and a second user device associated with a second user, swap transaction information that includes details regarding the swap. In embodiments, the swap transaction information includes swap information, a swap duration, at least one fixing date, and at least one benchmark rate. In embodiments, the swap information identifies the assets involved in the swap and preferably includes at least one digital asset and may include another digital asset, fiat, or any other asset, to name a few. In embodiments, the at least one fixing date is a date on which an agreed to interest rate, discussed below, is applied to determine the payment owed on both sides of the swap.
[Col. 62, Line 34 – 44]; In embodiments, such verification can comprise reading a digital asset electronic ledger and/or determining a customer digital asset balance, e.g., based on summing transactions recorded on a digital asset electronic ledger. In a step S4912, the exchange computer system may update an exchange digital asset electronic ledger to reflect the pending withdrawal. In embodiments, recording an entry in the electronic ledger prior to the withdrawal may be performed to prevent double spending. In other embodiments, such a step may be skipped.}
Motivation: It would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to combined/modify/adjust Tarmann et al’s smart contract preapproval to include So et al’s second buyer's NFT being linked to the second contract record, recording a cryptographic hash of the second contract record in association with a token identifier of the second buyer's NFT and preventing linkage of the second buyer's NFT to any other contract record since Tarmann teaches receiving request from a first buyer for a guaranteed mortgage preapproval, transmitting, via the one or more processors (and/or associated transceivers), the plurality of real estate properties, receiving information from a customer approved for a mortgage about preferences for a real estate property, which can be identified, and linking the preapproval to the NFT. See Tarmann [0008, 0053, 0106, 0107 and 0130]. The combination would have been obvious because a person of ordinary skill in the art since the system and method provides disbursement, management and issuance of guaranteed preapprovals in real property transactions and recording by a smart contract, the inclusion of swapping transaction information between a first and second user, identifying the assets involved in the swap and recording of the process enables proper verification, update, and protection of transaction, See So, [Col. 91, Line 10 – 22 and Col. 62, Line 34 – 44].
The combination of Tarmann and So, does not disclose the addition of an NFT. However, Jaeger does disclose the following limitations:
linking the second buy’s guaranteed mortgage preapproval NFT
{[0010] The present invention accommodates NFT transactions in real time, with access available continuously. Transactions and owner ship information can be available and logged in a blockchain for security and verification purposes.
Motivation: It would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to combined/modify/adjust the Tarmann et al’ssmart contract preapproval to include Jaeger et al’s non-fungible token (NFT), since Tarmann teaches receiving request from a first buyer for a guaranteed mortgage preapproval, transmitting, via the one or more processors (and/or associated transceivers), the plurality of real estate properties, receiving information from a customer approved for a mortgage about preferences for a real estate property, which can be identified. See Tarmann [0008, 0053, 0106, 0107 and 0130]). The combination would have been obvious because a person of ordinary skill in the art since the system and method provides disbursement, management and issuance of guaranteed preapprovals in real property transactions and recording by a smart contract, the inclusion of a non-fungible token (NFT) enables a secure transaction. See Jaeger [0010]).
As per claim 6, 11 and 16 (Similar scope and language);
Madisetti discloses;
The method of claim 4, wherein the second buyer's guaranteed mortgage preapproval NFT is issued by the lender upon receiving, at the computing device, a request from the second buyer for the guaranteed mortgage preapproval terms, and is governed by the smart contract on the blockchain.
{[Col 5, Line 3 – 19]; The method may further comprise receiving a plurality of lending offers from a plurality of lenders, each lending offer comprising an amount to lend, a loan duration, and expected returns, collectively defining lending pool conditions, recording the plurality of lending offers, defining a lending pool, to a second transaction smart contract on the first blockchain network, the values of the lending offers of the plurality of lending offers defining lending pool conditions, determining if the borrower conditions match the lending pool conditions, matching a lending offer from the second transaction smart contract to the first transaction, recording a borrower smart contract between the borrower and the second transaction smart contract, and recording a lender smart contract between the lender associated with the matched lending offer and the second transaction smart contract.
Motivation: It would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to combined/modify/adjust the combination Tarmann et al’s smart contract preapproval to include Madisetti et al’s second buyer's guaranteed mortgage preapproval NFT is issued by the lender upon receiving, at the computing device, a request from the second buyer for the guaranteed mortgage preapproval terms, and is governed by the smart contract on the blockchain, since Tarmann teaches receiving request from a first buyer for a guaranteed mortgage preapproval, transmitting, via the one or more processors (and/or associated transceivers), the plurality of real estate properties, receiving information from a customer approved for a mortgage about preferences for a real estate property, which can be identified, See Tarmann [0008, 0053, 0106, 0107 and 0130]. The combination would have been obvious because a person of ordinary skill in the art since the system and method provides disbursement, management and issuance of guaranteed preapprovals in real property transactions and recording by a smart contract, the inclusion matching a lender offer from the second transaction smart contract to the first transaction, recording by a smart contract between the borrower and the second transaction smart contract, and recording a lender smart contract between the lender associated with the matched lending offer and the second transaction smart contract enables a secure transaction. See Madisetti, [Col 5, Line 3 – 19].
The combination of Tarmann and Madisetti does not disclose the mortgage preapproval NFT, However, Jaeger does disclose the following limitations:
mortgage preapproval NFT
{[0010] The present invention accommodates NFT transactions in real time, with access available continuously. Transactions and owner ship information can be available and logged in a blockchain for security and verification purposes.
Motivation: It would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to combined/modify/adjust the Tarmann et al’ssmart contract preapproval to include Jaeger et al’s non-fungible token (NFT), since Tarmann teaches receiving request from a first buyer for a guaranteed mortgage preapproval, transmitting, via the one or more processors (and/or associated transceivers), the plurality of real estate properties, receiving information from a customer approved for a mortgage about preferences for a real estate property, which can be identified ( See Tarmann [0008, 0053, 0106, 0107 and 0130]). The combination would have been obvious because a person of ordinary skill in the art since the system and method provides disbursement, management and issuance of guaranteed preapprovals in real property transactions and recording by a smart contract, the inclusion of a non-fungible token (NFT) enables a secure transaction. See Jaeger [0010]).
Response to Arguments
In response to the argument filled January 01, 2026 on pages 11 – 13 regarding the 101 rejections, the Examiner Respectfully disagree.
Applicant argues that the claims do not recite a certain method of organizing human activity, mental processes and an abstract idea instead a machine-enforced ledger operations that cannot be performed in the human mind. The Applicant argues that the claims recite “a concrete, computer-specific mechanisms, including; issuing a lender-backed preapproval as a smart-contract-governed NFT having explicit on-chain metadata fields for the token identifier, property identifier, and constraint set; submitting a blockchain transaction that both records a cryptographic hash of a contract record in association with the token identifier and invokes on-chain smart-contract verification that the contract record satisfies the encoded constraints; and updating on-chain NFT state to lock the token from being linked to any other contract”.
The Examiner respectfully disagrees.
Examiner notes that the system is directed to a commercial or legal interaction and a mental process which is directed to a certain method of organizing human activity groupings of abstract idea.
The courts consider a mental process (thinking) that "can be performed in the human mind, or by a human using a pen and paper" to be an abstract idea. CyberSource Corp. v. Retail Decisions, Inc., 654 F.3d 1366, 1372, 99 USPQ2d 1690, 1695 (Fed. Cir. 2011). As the Federal Circuit explained, "methods which can be performed mentally, or which are the equivalent of human mental work, are unpatentable abstract ideas the ‘basic tools of scientific and technological work’ that are open to all.’" 654 F.3d at 1371, 99 USPQ2d at 1694 (citing Gottschalk v. Benson, 409 U.S. 63, 175 USPQ 673 (1972)). See also Mayo Collaborative Servs. v. Prometheus Labs. Inc., 566 U.S. 66, 71, 101 USPQ2d 1961, 1965 (2012) ("*[M]ental processes [] and abstract intellectual concepts are not patentable, as they are the basic tools of scientific and technological work’" (quoting Benson, 409 U.S. at 67, 175 USPQ at 675)); Parker v. Flook, 437 U.S. 584, 589, 198 USPQ 193, 197 (1978) (same).
Applicant also argues that the claims provides an Improvement to technology or a technical field such as “defining a ledger-anchored execution flow, on-chain, hash-anchored, constraint-verified, single-use linkage, a blockchain smart contract, updates to the NFT state, on-chain state changes, recording a contract hash associated with the token identifier, invoking smart-contract verification, and locking the NFT on success, hash becoming a part of the on- chain anchor that drives verification and the state transition”.
The Examiner respectfully disagrees. The NFT, blockchain network, smart contract, and other italicized above are all merely generic technology with no technical improvement rather an improvement to the abstract idea using technology. See Applicants Specification {[0019 and 0024]}.
The examiner maintains these claims recite an abstract idea.
Therefore, for the foregoing reasons the Examiner has maintained the 35 USC 101 rejection.
Regarding the prior art rejection, on page 13-17, the Examiner respectfully disagrees.
Applicant argues that the prior art of record fails to teach the amended claims specifically the “(i) on-chain metadata fields including property identifier and preapproval constraints; (ii) smart-contract verification that the contract record satisfies those constraints; (iii) recording a cryptographic hash of the contract record in association with the NFT token identifier; and (iv) locking the NFT from subsequent linkage”.
The Examiner respectfully disagrees.
Applicant argues that the prior art of Tarmann fails to disclose, “a lender-issued preapproval represented as a smart-contract-governed NFT that encodes a property identifier and preapproval constraints; recording a cryptographic hash of a contract record in association with the token identifier; on-chain smart-contract verification that the contract record satisfies the preapproval constraints; and an on-chain state update that locks the NFT from further linkage”.
The Examiner respectfully disagrees. In response to the amended Response to the continued Examination (RCE) claims;
The Examiner included, So et al. to the amended RCE.
So et al, discloses a smart-contract verification to verify the validity of the transaction, update and record of the digital asset and asserting the asset is completely sufficient. See So, [Col 24, Line 22-31 and Col. 5, line 15-32]. Tarmann also discloses the recording of contracts. See {[0088 and 0097]}.
The Examiner is citing Jaeger for its teaching in providing non-fungible token (NFT) transactions and ownership information in a blockchain for security and verification purposes.
Furthermore, the Examiner is citing Madisetti for its teaching in providing a Peer-to-Peer matching, maintaining identity and information of the borrowers and lenders as taught by Tarmann for modifying and making the lending process more reliable.
In terms of the arguments Tarmann, Jaeger, So and Madisetti does teach specific limitations as amended in the RCE because the art teaches verifying, disbursing, managing and issuing of guaranteed preapprovals in real property transactions, recorded as smart contracts in a distributed digital ledger system.
Based on the considered amendments cited, 35 USC 103 references have been utilized to
teach the claimed invention (claim 1-16).
Lacking any further argument, claims 1-16 are maintaining the 35 USC 103 rejection, as
considered above in light of the amended claim limitation above.
Conclusion
The prior art made of record and not relied upon is considered pertinent to applicant's disclosure:
Guar et al; [CN111344706A]; identifying a newly proposed transaction of a blockchain, initiating a consensus operation to determine whether the newly proposed transaction is authorized, retrieving a key-value pair identified from a previous transaction, comparing an index value associated with the key-value pair of the previous transaction with an index value associated with the key-value pair of the newly proposed transaction, and providing a positive consensus to accept the newly proposed transaction in the blockchain when the index value associated with the key-value pair of the previous transaction and the index value associated with the key-value pair of the newly proposed transaction are consecutive.
S. Dos Santos, J. Singh, R. K. Thulasiram, S. Kamali, L. Sirico and L. Loud, "A New Era of Blockchain-Powered Decentralized Finance (DeFi) - A Review," 2022 IEEE 46th Annual Computers, Software, and Applications Conference (COMPSAC), Los Alamitos, CA, USA, 2022, pp. 1286-1292,
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/VICTOR CHIGOZIRIM ESONU/
Examiner, Art Unit 3629
/SARAH M MONFELDT/Supervisory Patent Examiner, Art Unit 3629