Prosecution Insights
Last updated: April 19, 2026
Application No. 18/336,988

Smart Payroll System, Method, and Computer Program Product

Final Rejection §101
Filed
Jun 17, 2023
Examiner
MASUD, ROKIB
Art Unit
3627
Tech Center
3600 — Transportation & Electronic Commerce
Assignee
Vicoland GmbH
OA Round
2 (Final)
68%
Grant Probability
Favorable
3-4
OA Rounds
3y 5m
To Grant
69%
With Interview

Examiner Intelligence

Grants 68% — above average
68%
Career Allow Rate
503 granted / 735 resolved
+16.4% vs TC avg
Minimal +0% lift
Without
With
+0.2%
Interview Lift
resolved cases with interview
Typical timeline
3y 5m
Avg Prosecution
34 currently pending
Career history
769
Total Applications
across all art units

Statute-Specific Performance

§101
30.5%
-9.5% vs TC avg
§103
46.8%
+6.8% vs TC avg
§102
14.3%
-25.7% vs TC avg
§112
4.8%
-35.2% vs TC avg
Black line = Tech Center average estimate • Based on career data from 735 resolved cases

Office Action

§101
DETAILED ACTION 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 . This Office Action response to the amendment filed on September 05, 2025, in response to the Office Action mailed on June 05, 2025. Claim Rejections - 35 USC § 101 3. 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- 20 are rejected under 35 U.S.C. 101 because the claimed invention is directed to non-statutory subject matter, specifically an abstract idea without a practical application or significantly more than the abstract idea. Under the 35 U.S.C. §101 subject matter eligibility two-part analysis, Step 1 addresses whether the claim is directed to one of the four statutory categories of invention, i.e., process, machine, manufacture, or composition of matter. See MPEP §2106.03. If the claim does fall within one of the statutory categories, it must then be determined in Step 2A [prong 1] whether the claim is directed to a judicial exception (i.e., law of nature, natural phenomenon, and abstract idea). See MPEP §2106.04. If the claim is directed toward a judicial exception, it must then be determined in Step 2A [prong 2] whether the judicial exception is integrated into a practical application. See MPEP §2106.04(d). Finally, if the judicial exception is not integrated into a practical application, it must additionally be determined in Step 2B whether the claim recites "significantly more" than the abstract idea. See MPEP §2106.05. Examiner note: The Office's 2019 Revised Patent Subject Matter Eligibility Guidance (2019 PEG) is currently found in the Ninth Edition, Revision 10.2019 (revised June 2020) of the Manual of Patent Examination Procedure (MPEP), specifically incorporated in MPEP §2106.03 through MPEP §2106.07(c). Regarding Step 1 Claims 1-10 are directed toward method (process) and claims 11-15 are directed towards system (apparatus) and 16-20 are directed towards product. Thus, all claims fall within one of the four statutory categories as required by Step 1. Regarding Step 2A [prong 1] Claims 1- 20 are recite the judicial exception of an abstract idea. Regarding independent claims 1, 11 and 16, the bolded limitations emphasized below correspond to the abstract ideas of the claimed invention: A networked computer method for concurrently paying, via an independent trusted financial services third-party computerized system, contractor and freelancers fees, and associated fees on a project in an online work platform, comprising: a) receiving input by a remote system server from a client computer over a network, to hire a contractor via an online work platform for a project, and the receiving input from a contractor computer to divide the project into one or more milestones, and hiring one or more freelancers to complete each milestone; b) receiving input by the remote system server from one or more freelancer computers, to submit work, via the online work platform, to the contractor computer for one milestone of the project, and a freelancer invoice for each of the one or more freelancers; c) receiving input by the remote system server from the contractor computer, for reviewing and accepting each of the one or more freelancer work, or returning via the network for correction; d) receiving input by the remote system server on the client computer, for one contractor invoice for the milestone once the contractor accepts substantially all of the one or more freelancer work; e) receiving input by the remote system server for payment from a client computer over the network, once a client approves all of the one or more freelancer work, and submits payment to a financial service third-party payment system; and f) communicating electronically by the remote system server to the financial services the third-party payment computer system, wherein the financial services third party payment computer system automatedly, directly, and concurrently paying the contractor invoice, and the one or more freelancer invoices, and a system fee. The Application emphasizes the business need to manage payroll . Thus, managing payroll according to the Specification is a business concept and/or organizing human activities, being addressed by the claimed invention. Dependent claims further limits the abstract ideas, which are nonetheless directed towards fundamentally the same abstract ideas as indicated for independent claim 1. Regarding Step 2A [prong 2] Claims 1-20 fail to integrate the abstract idea into a practical application. Independent claims 1, 11 and 16 include the following additional elements which do not amount to a practical application: computer, medium, server, processor, network, remote server, computer system. The elements recited above in independent claims pertain to additional elements which merely provide an abstract-idea-based-solution implemented with computer hardware and software components, including the above identified additional elements which fail to integrate the abstract idea into a practical application because there are (1) no actual improvements to the functioning of a computer, (2) nor to any other technology or technical field, (3) nor do the claims apply the judicial exception with, or by use of, a particular machine, (4) nor do the claims provide a transformation or reduction of a particular article to a different state or thing, (5) nor provide other meaningful limitations beyond generally linking the use of the judicial exception to a particular technological environment, in view of MPEP §2106.05 (a-c & e), (6) nor do the claims apply the judicial exception to effect a particular treatment or prophylaxis for a disease or medical condition, in view of MPEP §2106.04(d)(2). The Specification provides a high level of generality regarding the additional elements claimed without sufficient detail or specific implementation structure so as to limit the abstract idea. Nothing in the Specification describes the specific operations recited in claims 1, 11 and 16 as particularly invoking any inventive programming, or requiring any specialized computer hardware or other inventive computer components, i.e., a particular machine, or that the claimed invention is somehow implemented using any specialized element other than all-purpose computer components to perform recited computer functions. See DDR Holdings, LLC v. Hotels.com, L.P., 773 F.3d 1245, 1256 (Fed. Cir. 2014) ("[A]fter Alice, there can remain no doubt: recitation of generic computer limitations does not make an otherwise ineligible claim patent-eligible."). Simply put, the claimed invention is merely directed to utilizing computer technology as a tool for solving payroll management. Nowhere in the Specification does the Applicant emphasize additional hardware and/or software elements which provide an actual improvement in computer functionality, or to a technology or technical field, other than using these elements as a computational tool to automate and perform the abstract idea. See MPEP §2106.04. The relevant question under Step 2A [prong 2] is not whether the claimed invention itself is a practical application, instead, the question is whether the claimed invention includes additional elements beyond the judicial exception that integrate the judicial exception into a practical application by imposing a meaningful limit on the judicial exception. This is not the case with Applicant's claimed invention which merely pertains to managing payroll to perform the abstract idea, and merely linking the use of the abstract idea to a particular technological environment. See MPEP §2106.04. Thus, the additional elements recited above fail to provide an actual improvement in computer functionality, or to a technology or technical field. See MPEP §2106.04. Dependent claims merely incorporate the additional elements recited above, and further limits the abstract idea of independent claims. Furthermore, they do not pertain to a technological problem being solved in a meaningful way beyond generally linking the use of the judicial exception to a particular technological environment, and/or the limitations fail to achieve an actual improvement in computer functionality or improvement in specific technology other than using the computer as a tool to perform the abstract idea. Regarding Step 2B Claims 1, 11 and 16 do not amount to significantly more than the abstract idea. The additional limitations recited above in independent claims pertain to additional elements which merely provide an abstract-idea-based-solution implemented with computer hardware and software components, including the additional elements of a data processing system, processor, memory, display. These additional elements do not amount to "significantly more" than the abstract idea because they fail to (1) recite any improvements to another technology or technical field; (2) recite any improvements to the functioning of the computer itself; (3) apply the judicial exception with, or by use of, a particular machine; (4) effect a transformation or reduction of a particular article to a different state or thing; (5) add a specific limitation other than what is well-understood, routine and conventional in the fie Id; (6) add unconventional steps that confine the claim to a particular useful application; nor (7) provide other meaningful limitations beyond generally linking the use of the judicial exception to a particular technological environment, in view of the MPEP 2106.05(a-h). Instead, the additional elements are being used as a tool to perform the abstract idea and merely providing computational instructions to implement the abstract idea, and generally linking the use of the abstract idea to a particular technological environment, yet fail to impose any meaningful limits on practicing the abstract idea. See MPEP 2106.05(f-h). Specifically, for a processor, memory, data processing system, computer device, see MPEP §2106.05(d) (II) (ii) discussing the performance of repetitive calculations by a computer; for memory see MPEP §2106.05(d) (II) (iv) discussing storing and retrieving of information in memory; and processor, memory, data processing system, computer device, see MPEP §2106.05(d) (II) (iv) discussing presenting offers and gathering statistics. Therefore, the additional elements in separately or in combination do not add significantly more. Dependent claims 2-14 and 16-28 do not include additional elements that are sufficient to amount to significantly more than the judicial exception because POS terminal device, processor, memory, and printer are considered well-understood, routine, and conventional activity, see MPEP §2106.05(d). Specifically, for a POS terminal device and processor see MPEP §2106.05(d) (II) (ii) discussing the performance of repetitive calculations by a computer; Therefore, the additional elements in separately or in combination do not add significantly more. Thus, after considering all claim elements, both individually and in combination and in ordered combination, it has been determined that the claims are not enough to transform the abstract idea into a patent-eligible invention since the claim limitations do not amount to a practical application or significantly more than an abstract idea. Accordingly, claims 1-20 are directed to non-statutory subject matter under 35 U.S.C. § 101. Allowable Subject Matter Claims 1-20 are allowable over prior art. As allowable subject matter has been indicated, applicant's reply must either comply with all formal requirements or specifically traverse each requirement not complied with. See 37 CFR 1.111(b) and MPEP § 707.07(a). Response to Arguments Applicant’s arguments with respect to amended claim(s) have been considered but are moot in view of new grounds of rejections. Conclusion THIS ACTION IS MADE FINAL. 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 ROKIB MASUD whose telephone number is (571)270-5390. The examiner can normally be reached Mon-Fri 8:00-5:00. Examiner interviews are available via telephone, in-person, and video conferencing using a USPTO supplied web-based collaboration tool. To schedule an interview, applicant is encouraged to use the USPTO Automated Interview Request (AIR) at http://www.uspto.gov/interviewpractice. If attempts to reach the examiner by telephone are unsuccessful, the examiner’s supervisor, Fahd Obeid can be reached at 571-270-3324. The fax phone number for the organization where this application or proceeding is assigned is 571-273-8300. Information regarding the status of published or unpublished applications may be obtained from Patent Center. Unpublished application information in Patent Center is available to registered users. To file and manage patent submissions in Patent Center, visit: https://patentcenter.uspto.gov. Visit https://www.uspto.gov/patents/apply/patent-center for more information about Patent Center and https://www.uspto.gov/patents/docx for information about filing in DOCX format. For additional questions, contact the Electronic Business Center (EBC) at 866-217-9197 (toll-free). If you would like assistance from a USPTO Customer Service Representative, call 800-786-9199 (IN USA OR CANADA) or 571-272-1000. /ROKIB MASUD/Primary Examiner, Art Unit 3627
Read full office action

Prosecution Timeline

Jun 17, 2023
Application Filed
Jun 04, 2025
Non-Final Rejection — §101
Sep 03, 2025
Examiner Interview Summary
Sep 03, 2025
Applicant Interview (Telephonic)
Sep 05, 2025
Response Filed
Dec 13, 2025
Final Rejection — §101 (current)

Precedent Cases

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Study what changed to get past this examiner. Based on 5 most recent grants.

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Prosecution Projections

3-4
Expected OA Rounds
68%
Grant Probability
69%
With Interview (+0.2%)
3y 5m
Median Time to Grant
Moderate
PTA Risk
Based on 735 resolved cases by this examiner. Grant probability derived from career allow rate.

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