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 .
Information Disclosure Statement
The information disclosure statement (IDS) submitted on June 17, 2024 is in compliance with the provisions of 37 CFR 1.97. Accordingly, the information disclosure statement is being considered by the examiner.
Drawings
The drawings submitted on June 17, 2024 are acceptable.
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 1-20 are rejected under 35 U.S.C. 101 because the claimed invention recites and is directed to a judicial exception to patentability (i.e., an abstract idea) and does not provide an integration of the recited abstract idea into a practical application nor include an inventive concept that is “significantly more” than the recited abstract idea to which the claim is directed. MPEP §2106.
In determining subject matter eligibility in an Alice rejection under 35 U.S.C. §101, it is first determined as Step 1 whether the claims are directed to one of the four statutory categories of an invention (i.e., a process, a machine, a manufacture, or a composition of matter). MPEP §2106.03.
Here, the claims are directed to the statutory category of a process (Claims 1-8) a system (claims 9-16) and a manufacture (claims 17-20). Therefore, we proceed to Step 2A, Prong 1. MPEP §2106.
Under a Step 2A, Prong 1 analysis, it must be determined whether the claims recite an abstract idea that falls within one or more enumerated categories of patent ineligible subject matter that amounts to a judicial exception to patentability. MPEP §2106.04. Independent Claim 1 is selected as being representative of the independent claims in the instant application. Claim 1 recites:
A computer-implemented method comprising:
receiving, via a user interface, a selection of a smart project to join, wherein the smart project is controlled via a smart contract deployed on a blockchain;
receiving an amount of cryptocurrency to pledge to the smart project for a set period of time based on the smart contract;
transmitting, from a first digital wallet, the amount of cryptocurrency to an address associated with the smart project at a first block on the blockchain;
receiving, based on the amount of cryptocurrency, an annual percentage yield;
transmitting, based on the smart contract, the annual percentage yield to a second block associated with a smart collateral digital wallet on the blockchain;
determining when a trigger condition occurs; and
responsive to the trigger condition occurring, returning the cryptocurrency to the first digital wallet.
Here, the claims recite an abstract idea, or combination of abstract ideas of receive and manage a selection of a project to join and manage currency within a contract of the project. This concept/abstract idea, which is identified in the bolded sections seen above, falls within the Certain Methods of Organizing Human Activity grouping because it describes a commercial or legal interactions (e.g., managing distribution of a project funds).
Accordingly, it is determined that the claims recite an abstract idea since they fall within one or more of the three enumerated categories of patent ineligible subject matter. MPEP §2106.04.
Since it is determined that the claim(s) contain a judicial exception, it must then be determined, under Step 2A, Prong 2, whether the judicial exception is integrated into a practical application of the exception. MPEP §2106.04. In order to make this determination, the additional element(s) are analyzed to determine if the claim as a whole integrates the recited judicial exception into a practical application of that exception. Here claim 1 recite the additional elements of a user interface, smart contracts, blockchain, digital wallets, and cryptocurrency. Independent claim 9 recite the additional elements of a system, a memory device, a user interface, smart contracts, blockchain, digital wallets, and cryptocurrency. Independent claim 17 recite the additional elements of a tangible, non-transitory computer-readable medium storing instructions, a user interface, smart contracts, blockchain, digital wallets, and cryptocurrency. These additional elements are all recited at a high-level of generality such that they amount to no more than mere instructions to apply the exception, or a portion thereof, using a generic computer component. See MPEP 2106.05(f). Additionally, Examiner finds no indication in the Specification, that the operations recited in the independent claims require any specialized computer hardware or other inventive computer components, i.e., a particular machine, invoke any allegedly inventive programming, or that the claimed invention is implemented using other than generic computer components to perform generic computer functions. Furthermore, there is no indication in the claim(s) that the use of a system, a memory device, computer readable medium, a user interface, smart contracts, blockchain, digital wallets, and cryptocurrency in combination with the abstract idea leads to an improvement of the processor, memory, another technology, or to a technical field. Accordingly, the additional elements do not integrate the abstract idea into a practical application because they do not impose any meaningful limits on practicing the abstract idea. Looking at the elements as a combination does not add anything more than the elements analyzed individually. Examiner further notes that even though the claims may not preempt all forms of the abstraction, this alone, does not make them any less abstract.
When analyzed under step 2B, the claim(s) does/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 using a generic computing component (e.g., a system, a memory device, computer readable medium, a user interface, smart contracts, blockchain, digital wallets, and cryptocurrency) to implement the abstract idea 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 or significantly more than the judicial exception. Considered as an ordered combination, the additional elements recited in the claim(s) add nothing that is not already present when the steps are considered separately.
Therefore, claim 1, 9 and 17 are rejected under 35 U.S.C. §101 and are not patent eligible. Dependent claims 2-8, 10-16 and 18-20 when analyzed are held to be patent ineligible under 35 U.S.C. §101 because the additional recited limitation(s) fail to establish that the claim(s) is/are not directed to an abstract idea.
Dependent claims 2, 10 and 18 further refine the abstract idea by indicate that a reward is received after the trigger conditions occurs. These claims fail to include any new additional elements that integrate the abstract idea into a practical application or provide significantly more than the abstract idea.
Dependent claims 3, 11 and 19 further refine the abstract idea by determining annual percentage yield and based on this perform one or more actions. These claims fail to include any new additional elements that integrate the abstract idea into a practical application or provide significantly more than the abstract idea.
Dependent claims 4, 12 and 20 further refine the abstract idea by transmitting currency a coin and annual percentage yield. These claims fail to include any new additional elements that integrate the abstract idea into a practical application or provide significantly more than the abstract idea.
Dependent claims 5 and 13 further refine the abstract idea by determining when a condition of a market changes; and responsive to the condition of the market changing, modifying a property of the contract. These claims fail to include any new additional elements that integrate the abstract idea into a practical application or provide significantly more than the abstract idea.
Dependent claims 6 and 14 further refine the abstract idea by describing the condition (e.g., comprises an increase or a decrease in value). These claims fail to include any new additional elements that integrate the abstract idea into a practical application or provide significantly more than the abstract idea.
Dependent claims 7 and 15 further refine the abstract idea by converting a coin. These claims fail to include any new additional elements that integrate the abstract idea into a practical application or provide significantly more than the abstract idea.
Dependent claims 8 and 16 further refine the abstract idea by describing the trigger conditions. These claims fail to include any new additional elements that integrate the abstract idea into a practical application or provide significantly more than the abstract idea.
In summary, the dependent claims considered both individually and as an ordered combination do not provide meaningful limitations to transform the abstract idea into a patent eligible application of the abstract idea such that the claims amount to significantly more than the abstract ideas itself. The claims do not recite an improvement to another technology or technical field, an improvement to the functioning of the computer itself, or provide meaningful limitations beyond generally linking an abstract idea to a particular technological environment. Therefore, the dependent claims are also not patent eligible.
Accordingly, it is determined that all claims are directed to non-statutory subject matter under 35 U.S.C. 101 and are ineligible.
Claim Rejections - 35 USC § 102
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 the appropriate paragraphs of 35 U.S.C. 102 that form the basis for the rejections under this section made in this Office action:
A person shall be entitled to a patent unless –
(a)(1) the claimed invention was patented, described in a printed publication, or in public use, on sale, or otherwise available to the public before the effective filing date of the claimed invention.
(a)(2) the claimed invention was described in a patent issued under section 151, or in an application for patent published or deemed published under section 122(b), in which the patent or application, as the case may be, names another inventor and was effectively filed before the effective filing date of the claimed invention.
Claim(s) 1-4, 7-12, 15-20 is/are rejected under 35 U.S.C. 102(a)(1)/(a)(2) as being anticipated by “Bassilli” (US 2023/0011617 A1).
Regarding claims 1, 9 and 17: Bassilli disclose:
Claim 1: A computer-implemented method comprising:
Claim 9: A system (See Bassilli, Fig. 1 Server system 110)comprising:
a memory (See Bassilli, Fig 1, [0070] Memory) device storing instructions; and
a processing device (See Bassilli, Fig. 1, [0070] CPU) communicatively coupled to the memory device, wherein the processing device executes the instructions to:
Claim 17: A tangible, non-transitory computer-readable medium (See Bassilli, [0070] Storage medium) storing instructions that, when executed, cause a processing device to:
receiving, via a user interface, a selection of a smart project to join, wherein the smart project is controlled via a smart contract deployed on a blockchain; (See at least Bassilli, [0090-0093]; [0146] In step 220, the admin computer 100 or server 110 will receive input via network 160 from one or more (a plurality of) screenwriters' computers 130 to register an account with the system, buy an equity stake in the contest, and execute a digital contract that transfers ownership of their writing submissions to the host; Each screenwriter's equity payment and the identity of the payer is timestamped and recorded on the blockchain platform 150).
receiving an amount of cryptocurrency to pledge to the smart project for a set period of time based on the smart contract; (See at least Bassilli, [0052] A user's tokens are deposited to their system wallet; and can be cashed-out when the pool matures; (e.g. passage of time deadline), and cash-out conditions are met.).
transmitting, from a first digital wallet, the amount of cryptocurrency to an address associated with the smart project at a first block on the blockchain; (See at least Bassilli, [0091]; [0121]; Each screenwriter's equity payment and the identity of the payer is timestamped and recorded on the blockchain platform 150 under the record for a specific contest 152; while the registration information, writing submissions, and earnings are timestamped and stored on the database contest file 114 on the central server 110; the API will transmit data from the database 112 to the blockchain account 152 via the network 160.
receiving, based on the amount of cryptocurrency, an annual percentage yield; (See at least Bassilli, [0139]; Exemplary percentages of payments due by user type are displayed in FIG. 7, in which the terms: Each user earns a predetermined annual percentage yield on the cryptocurrency that is staked in the project. For example, the participant may earn 5% on 1,000 SPX tokens, which would give them an annual percentage yield of 50 SPX tokens per year.)
transmitting, based on the smart contract, the annual percentage yield to a second block associated with a smart collateral digital wallet on the blockchain; (See at least Basilli, [0136]; [0069] This revenue is added to the "Contest Pool" along with revenue from the movie release, and then distributed to the users at either: 1) a set time (e.g. 2 years); or, 2) when a set percentage of investment in the Contest Pool is reached (e.g. 200%), whichever comes first in accordance with the terms of the Smart Contract.) Note that the “Contest Pool” is the “Genesis Wallet”.
determining when a trigger condition occurs; and (See at least Bassilli, [0140] when conditions that needs to be met are determined.)
responsive to the trigger condition occurring, returning the cryptocurrency to the first digital wallet. (See at least Bassilli, [0140]; When either of these conditions is meet, then tokens will automatically transfer to a user's wallet on their blockchain account, and they will be able to cash-out ( e.g. convert SPX tokens to fiat currency that can be converted to cash or deposit in the bank).
The phrase which recite “to pledge to the smart project for a set period of time based on the smart contract” is intended/use result language. The phrase is indicating the intended use of “receiving an amount of cryptocurrency”. However, since there is not a positively recited step that pledges to the smart contract, this phrase does not affect how the positively recited steps are performed nor does it provide an operational connection to the rest of the claim.
The applicant is reminded that these portions, i.e., intended use/result, do not further limit the scope of the claim as the limitations, or portions thereof, do not claim the functions as being positively recited actions or functions, and/or they do not add any meaning or purpose to the associated manipulative step(s). See MPEP 2103 C and 2111.04. Simply because the limitation recites something as being "for ... [performing a specific functionality]", etc. does not mean that the functions are required to be performed, or are actually performed.
Examiner has provided prior art, where available, for these intended use and/or non-functional phrases/limitations, however, these phrases/limitations will not distinguish the invention from the prior art in terms of patentability. Accordingly, the prior art is only provided in the interest of compact prosecution.
Regarding claims 2, 10 and 18: Bassilli disclose the computer-implemented method of claim 1, the system of claim 9 and the computer readable medium of claim 17; Bassilli further disclose comprising receiving a reward after the trigger condition occurs, wherein the reward comprises a certain coin associated with the smart project, a perk associated with the smart project, a convertible note, an executive producer credit associated with the smart project, or some combination thereof. (See at least Bassilli, [0060] a guarantee a winning and/or contributing screenplay writer will receive movie screen credits.)
Regarding claims 3, 11 and 19: Bassilli disclose the computer-implemented method of claim 1, the system of claim 9 and the computer readable medium of claim 17. Bassilli further disclose determining when the annual percentage yield in the smart collateral digital wallet satisfies a target value amount; and responsive to determining the annual percentage yield in the smart collateral digital wallet satisfies the target value amount, performing one or more actions. (See at least Basilli, [0139-0140] For example, the participant may earn 5% on 1,000 SPX tokens, which would give them an annual percentage yield of 50 SPX tokens per year.; the Contest Pool or "Genesis Wallet" is maintained for a set period of years ( e.g. 2 years) or until a set amount of increase over the original pool is reached (i.e. the Capped Revenue, such as 200%- 500% return on original contest pool).)
Regarding claims 4, 12 and 20: Bassilli disclose the computer-implemented method of claim 3, the system of claim 11 and the computer readable medium of claim 19. Bassilli further disclose wherein the one or more actions comprise: releasing the cryptocurrency by transmitting at least some of the cryptocurrency to the digital wallet, transmitting, to a third digital wallet or a bank account, at least some of the annual percentage yield, or transmitting, to the digital wallet, a specialized coin associated with the smart project, transmitting, to a retirement savings account, at least some of the annual percentage yield, some combination thereof. (See at least Basilli, [0140] When either of these conditions is meet, then tokens will automatically transfer to a user's wallet on their blockchain account, and they will be able to cash-out ( e.g. convert SPX tokens to fiat currency that can be converted to cash or deposit in the bank.)
Regarding claims 7 and 15: Bassilli disclose the computer-implemented method of claim 1, the system of claim 9 and the computer readable medium of claim 17. Bassilli further disclose further comprising converting the cryptocurrency from a first type of coin to a staked type of coin. (See at least Basilli, [0053]; [0137] In an embodiment, the system creates a unique token with name of"SPX" on Binance™. In step 740, the system converts the cash buy-ins to cryptocurrency: e.g. 2,000 SPX's per user (rate of 5 cents per 1 SPX) for a total buy-in of 1 million SPX deposited in the Contest Pool.)
Regarding claims 8 and 16: Bassilli disclose the computer-implemented method of claim 1 and the computer readable medium of claim 17. Bassilli further discloses; further comprising using an oracle to check for one or more trigger conditions, wherein: the trigger condition comprises the set amount of time expiring, the trigger condition comprises a condition associated with a market occurring, the trigger condition comprises a certain amount of value accumulating, wherein the value is associated with the cryptocurrency, the annual percentage yield, or some combination thereof, or some combination thereof. (See at least Basilli, [0069]; [0140]; Cashing-Out: in step 760, the Contest Pool or "Genesis Wallet" is maintained for a set period of years ( e.g. 2 years) or until a set amount of increase over the original pool is reached (i.e. the Capped Revenue, such as 200%- 500% return on original contest pool). When either of these conditions is meet, then tokens will automatically transfer to a user's wallet on their blockchain account, and they will be able to cash-out ( e.g. convert SPX tokens to fiat currency that can be converted to cash or deposit in the bank).)
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.
Claims 5-6 and 13-14 are rejected under 35 U.S.C. 103 as being unpatentable over Bassilli as applied above in claim 1 and further in view of “Cella”, (US 20210358032 A1).
Regarding claims 5 and 13: Bassilli disclose the computer-implemented method of claim 1 and the system of claim 9. Bassilli further disclose the smart contract comprising terms as: percentage, and other conditions for a user. (Bassilli, [0053-0061]). However, Basilli does not specifically disclose determining when a condition of a market changes; and responsive to the condition of the market changing, modifying a property of the smart contract.
Cella, on the other hand teaches determining when a condition of a market changes; and responsive to the condition of the market changing, modifying a property of the smart contract. (See at least Cella, [0287]; [0844] where responsive to the condition of the market changing (i.e., real-time market data) modifying (i.e., adjusts) a property of the smart contract (i.e., terms and conditions).)
Therefore, it would have been obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to modify Bassilli to incorporate the teachings of Cella so that the flexibility in Bassilli’s system would be enhanced and improve efficiency in the smart contract.
Regarding claims 6 and 14: The combination of Bassilli and Cella disclose the computer-implemented method of claim 5 and the system of claim 13. The combination further disclose wherein the condition comprises an increase or a decrease in value, (See at least Basilli, [0140] until a set amount of increase over the original pool is reached (i.e. the Capped Revenue, such as 200%- 500% return on original contest pool).
Cella further disclose and wherein the property comprises modifying a period of time associated with the smart contract. (See at least Cella, [0176-0177]; [0287] e.g., loan terms could include amount of time and expiration of a loan term).)
Therefore, it would have been obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to modify Bassilli to incorporate the teachings of Cella so that the flexibility in Bassilli’s system would be enhanced and improve efficiency in the smart contract.
Conclusion
The prior art made of record and not relied upon is considered pertinent to applicant's disclosure.
Gradek (US 2022/0138855 A1): b) Rate submissions upon reviewing pre-production material[0094] c) Set their account for bounties and equity based dividends [0095] d) Make micro-investment in the content of their choice[0096] e) Receive fees for checking projects and marketing cooperation [0097] f) Receive ROI upon content on-demand streaming [0098] 3. Investor Interface letting investors: [0099] a) Learn about the production budgeting and profit-sharing rules: [0100] b) Set investor's operations account [0101] c) Join in project budgeting at a particular stage [0102] d) Receive ROI upon streaming according to equity held in a title.
Liu (TWI682347B): This crowdfunding smart contract will be preset according to the crowdfunding project (for example: A company fundraising) The amount of funds raised (for example: NT$10 million) generates multiple security tokens (for example: one million), and each security token is calculated based on the number of generated security tokens and the amount of funds raised The corresponding issue price (for example: Ten New Taiwan Dollars). Then, the related content of this crowdfunding project can be displayed through the display window 310 as shown in "Figure 3". Assuming that the subscriber at the client terminal 110 wants to subscribe, he can click the create account component 311 to send the account creation Request to the exchange host 120 for the account creation process, such as: input personal information and KYC/AML authentication. After passing the KYC/AML authentication, the exchange host 120 will create a wallet account corresponding to the client 110 and allow settings Corresponds to the currency account of the client 110. At this time, it means that the subscriber at the client terminal 110 can already subscribe for the security token. Next, the subscriber at the client terminal 110 can enter the subscription quantity in the input block 312 in the display window 310, and then click the subscription component 313 to transmit the subscription quantity to the exchange host 120, and the exchange host 120 The subscription quantity and issuance price calculate the subscription amount that the subscriber needs to pay. Liu, p. 5 lines 19-43
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/K.G.M/Examiner, Art Unit 3698
/EDUARDO CASTILHO/Primary Examiner, Art Unit 3698