Detailed Action
Claims 1-13, and 21-27 are pending and are examined.
Notice of Pre-AIA or AIA Status
The present application, filed on or after March 16, 2013, is being examined under the first inventor to file provisions of the AIA .
Status of Claims
Claim 1 is currently amended.
Claims 14-20 are cancelled.
Claims 21-27 are newly added.
Response to Remarks
35 U.S.C. § 101
Applicant argued “Advantageously, this specific and ordered technique can provide for enhanced security while preventing fraud by ensuring that both the item of sale and the money are readily available and accessible prior to simultaneously releasing the same from the escrow account. Indeed, even if the item for sale is authentic, available, and accessible, the item for sale will not be released from the escrow account without confirmation that the money is also available and accessible. Similarly, even if the money is available and accessible, the money will not be released from the escrow account without confirmation that the item for sale is also available and accessible. In view of the above, the claims use any judicial exception in a meaningful way to provision items and money in escrow with simultaneous delivery thereof, thereby preventing fraud on both the buyer side and the seller side in online transactions.” (Applicant Arguments, 2025-10-17). However, the added limitations merely specify that this business logic is implemented on generic computer and network components using routine functions (e.g. receiving data, decrypting, authenticating, debiting/crediting accounts, and updated records) that are well-understood, conventional, and widely used in the art. Indeed, the claim does not recite a specific improvement to the functioning of a computer, network, or cryptographic technology itself, but itself uses conventional computer elements as tools to automate an escrow-style payment flow. Accordingly, this contention is unpersuasive.
35 U.S.C. § 102 and § 103
Remark 1: Applicant argues “Applicant respectfully traverses these rejections and requests reconsideration and withdrawal thereof. For example, Matsuda teaches holding funds debited from a buyer's account in an escrow account until a transaction server receives a notification that the buyer received a purchased product in good shape and as advertised. Matsuda, col. 14, 11. 23-45. However, Matsuda fails to disclose holding the purchased product in the escrow account. The claims are different. Furthermore, Matsuda fails to disclose simultaneously releasing access to the purchased product to the buyer and the funds to a seller. Again, the claims are different.”. (Applicant Arguments, 2025-10-17).
Response to Remark 1: Examiner respectfully disagrees, as the cited references (e.g. Matsuda, Kurani, and Rule) still teach the amended and new independent claims, as shown at least in paragraphs 11-12, 28, 40, and 33 of Kurani, and as further outlined in paragraphs 35-37, and 70-73 of this action. Indeed, Kurani teaches ‘placing the item for sale in an escrow account’ as it describes transactions ‘involving a purchase of a titled item with MBC held in escrow’ where a financial institution computing system receives funds from the buyer and holds them in escrow while managing transfer of title for a physical or digital asset. Accordingly, this contention is unpersuasive.
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 1-13, and 21-27 are rejected under 35 U.S.C. 101 because the claimed invention is directed to an abstract idea without significantly more.
Claims 1-20
Step 1
Claims 1-13 is directed to a computer-implemented method (i.e., process). Therefore, these claims fall within the four statutory categories of invention, and thus must be further analyzed at Step 2A to determine if the claims are directed to a judicial exception (See MPEP 2106.03, subsection II).
Step 2A Prong One
In Prong One examiners evaluate whether the claim recites a judicial exception, i.e., whether a law of nature, natural phenomenon, or abstract idea is set forth or described in the claim. Claim 1 recites (i.e., sets forth or describes) an abstract idea of authorizing a conditional exchange of value between parties based on verified intent. Specifically, but for the additional elements, the claim under its broadest reasonable interpretation recites limitations grouped within the “certain methods of organizing human activity” grouping of abstract ideas. The certain method of organizing human activity grouping is used to describe fundamental economic principles or practices, commercial or legal interactions, and managing personal behavior or relationships or interactions between people. Fundamental economic principles or practices are relating to the economy and commerce, or recite hedging, insurance, and mitigating risks. Commercial or legal interactions recite agreements in the form of contracts, legal obligations, advertising, marketing or sales activities or behaviors, and business relations. Managing personal behavior or relationships or interactions between people recite social activities, teaching, and following rules or instructions. See MPEP § 2106.04(a)(2), subsection II. Also, but for the additional elements, the claim under its broadest reasonable interpretation recites limitations grouped within the “mental processes” grouping of abstract ideas. The mental processes abstract idea grouping is defined as concepts performed in the human mind, and examples of mental processes recite observations, evaluations, judgments, and opinions. Claims recite a mental process when they recite limitations that can practically be performed in the human mind, with or without the use of a physical aid. The use of a physical aid to help perform a mental step does not negate the mental nature of the limitation, but simply accounts for variations in memory capacity from one person to another. Further, claims can recite a mental process even if they are claimed as being performed on a computer. See MPEP § 2106.04(a)(2), subsection III. The claim limitations reciting the abstract ideas are grouped within the “certain methods of organizing human activity” and “mental processes” grouping of abstract ideas because the limitations recite fundamental economic principles or practices, as they recite mitigating risk, commercial or legal interactions, as they recite sales activities or behaviors, and concepts that can practically be performed in the human mind, with or without the use of a physical aid. More specifically, the following underlined claim elements recite abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a).
A method comprising:
receiving, by a processor and via a short-range communication antenna of a first mobile device, first encrypted data from a first contactless card of a seller of an item for sale via a website or a mobile application;
successfully decrypting by the processor, the first encrypted data to authenticate the first contactless card;
when the first contactless card has been authenticated, identifying, by the processor, personally identifiable information of the seller and a bank or credit account number for the seller and, responsive thereto, offering, by the processor, the item for sale at a purchase price via the website or the mobile application and placing, by the processor, the item for sale in an escrow account;
receiving, by the processor and via a short-range communication antenna of a second mobile device, second encrypted data from a second contactless card of a buyer of the item for sale;
successfully decrypting by the processor, the second encrypted data to authenticate the second contactless card;
when the second contactless card has been authenticated, identifying by the processor, personally identifiable information of the buyer and a bank or credit account number for the buyer and responsive thereto, retrieving by the processor, an amount of money equal to the purchase price from a bank or credit account matching the bank or credit account number for the buyer and placing by the processor, the money in an escrow account;
receiving, by the processor and via the short-range communication antenna of the first mobile device or the short-range communication antenna of the second mobile device, the second encrypted data from the second contactless card a second time;
successfully decrypting by the processor, the second encrypted data to authenticate the second contactless card a second time;
when the second contactless card has been authenticated the second time, simultaneously releasing, by the processor, access to the item for sale in the escrow account to the buyer and the money in the escrow account to a bank or credit account matching the bank or credit account number for the seller.
Step 2A Prong Two
In Prong Two, examiners evaluate whether the claim as a whole integrates the exception into a practical application of that exception. A claim that integrates a judicial exception into a practical application will apply, rely on, or use the judicial exception in a manner that imposes a meaningful limit on the judicial exception, such that the claim is more than a drafting effort designed to monopolize the judicial exception. Here, claim 1 as a whole, looking at the identified additional elements individually and in combination, does not integrate the judicial exception into a practical application. First, the non-underlined additional elements merely serve as a tool to perform the abstract idea (MPEP § 2106.05(f)). Further, the additional element “smart contracts” generally links the use of the judicial exception to a particular technological environment, that being of cryptocurrency transactions (MPEP § 2106.05(h)). Additionally, regarding the specification and claims, there is no improvement in the functioning of a computer or an improvement to other technology or technical field present (MPEP §§ 2106.04(d)(1) and 2106.05(a)), there is no applying or using the judicial exception to effect a particular treatment or prophylaxis for a disease or medical condition present (MPEP § 2106.04(d)(2)), there is no implementing the judicial exception with or using the judicial exception in conjunction with a particular machine or manufacture that is integral to the claim present (MPEP § 2106.05(b)), there is no effecting a transformation or reduction of a particular article to a different state or thing present (MPEP § 2106.05(c)), and there is no applying or using the judicial exception in some other meaningful way beyond generally linking the use of the judicial exception to a particular technological environment present, such that the claim as a whole is more than a drafting effort designed to monopolize the exception (MPEP § 2106.05(e)). Thus, the claim as a whole is directed to a judicial exception and thus requires further analysis at Step 2B to determine if the claim as a whole, amounts to significantly more than the exception itself (See MPEP 2106.04, subsection II).
Step 2B
Step 2B determines whether the claim as a whole amount to significantly more than the exception itself. Evaluating additional elements to determine whether they amount to an inventive concept requires considering them both individually and in combination to ensure that they amount to significantly more than the judicial exception itself. Here, the additional elements, taken individually and in combination, do not result in claim 16, as a whole, amounting to significantly more than the judicial exception. As discussed previously with respect to Step 2A, the additional elements merely serve as a tool to perform an abstract idea, and generally links the use of the judicial exception to a particular technological environment. Thus, there is no inventive concept in the claim and thus the claim is not eligible, warranting a rejection for lack of subject matter eligibility and concluding the eligibility analysis.
Dependent Claims:
Claims 2-13 have also been analyzed. However, the subject matter of these claims also fails to recite patent eligible subject matter for the following reasons:
Claim 2 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
further comprising: identifying a location of the seller and identifying a location of the buyer.
Claim 3 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
further comprising:
using an address for the seller to identify the location of the seller; and
using an address for the buyer to identify the location of the buyer,
wherein the personally identifiable information of the seller includes the address for the seller, and wherein the personally identifiable information of the buyer includes the address for the buyer.
Claim 4 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
further comprising:
using a cellular or GPS location of the first mobile device to identify the location of the seller; and
using a cellular or GPS location of the second mobile device to identify the location of the buyer.
Claim 5 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
further comprising:
identifying a distance between the location of the buyer and the location of the seller; and
rejecting the sale from the seller to the buyer when the distance is greater than a predetermined threshold.
Claim 6 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
further comprising:
identifying a recommended exchange location in between the location of the buyer and the location of the seller.
Claim 7 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
further comprising:
identifying an exchange time for the buyer and seller to meet; and
rejecting the sale from the seller to the buyer when the location of the seller or the location of the buyer are more than a predetermined distance away from the recommended exchange location at the exchange time or within a predetermined period of time thereafter.
Claim 8 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
further comprising:
rejecting the sale from the seller to the buyer when the location of the seller or the location of the buyer is within a predetermined high crime area.
Claim 9 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
further comprising:
rejecting the sale from the seller to the buyer when the bank or credit account matching the bank or credit account number for the seller or the bank or credit account matching the bank or credit account number for the buyer has been a party to prior fraudulent activity.
Claim 10 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
further comprising:
causing a notification message to be sent to the first mobile device when the money in the escrow account is sent to the bank or credit account matching the bank or credit account number for the seller.
Claim 11 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
further comprising:
receiving the personally identifiable information of the seller or the bank or credit account number for the seller from the first contactless card; and
receiving the personally identifiable information of the buyer and the bank or credit account number for the buyer from the second contactless card.
Claim 12 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
further comprising:
using the first encrypted data to retrieve the personally identifiable information of the seller or the bank or credit account number for the seller from a banking or credit authorization system; and
using the second encrypted data to retrieve the personally identifiable information of the buyer or the bank or credit account number for the buyer from the banking or credit authorization system.
Claim 13 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
further comprising:
identifying a first customer account associated with the first contactless card to authenticate the first contactless card;
decrypting first protected data in the first encrypted data;
comparing the first protected data to first stored record data associated with the first customer account;
authenticating the first contactless card based on a match between the first protected data and the first stored record data;
identifying a second customer account associated with the second contactless card to authenticate the second contactless card;
decrypting second protected data in the second encrypted data;
comparing the second protected data to second stored record data associated with the second customer account; and
authenticating the second contactless card based on a match between the second protected data and the second stored record data.
Claims 22-26:
Step 1
Claims 22-26 are directed to a computer-implemented system (i.e., machine, and manufacture). Therefore, these claims fall within the four statutory categories of invention, and thus must be further analyzed at Step 2A to determine if the claims are directed to a judicial exception (See MPEP 2106.03, subsection II).
Step 2A Prong One
In Prong One examiners evaluate whether the claim recites a judicial exception, i.e., whether a law of nature, natural phenomenon, or abstract idea is set forth or described in the claim. Claim 22 recites (i.e., sets forth or describes) an abstract idea of authorizing a conditional exchange of value between parties based on verified intent. Specifically, but for the additional elements, the claim under its broadest reasonable interpretation recites limitations grouped within the “certain methods of organizing human activity” grouping of abstract ideas. The certain method of organizing human activity grouping is used to describe fundamental economic principles or practices, commercial or legal interactions, and managing personal behavior or relationships or interactions between people. Fundamental economic principles or practices are relating to the economy and commerce, or recite hedging, insurance, and mitigating risks. Commercial or legal interactions recite agreements in the form of contracts, legal obligations, advertising, marketing or sales activities or behaviors, and business relations. Managing personal behavior or relationships or interactions between people recite social activities, teaching, and following rules or instructions. See MPEP § 2106.04(a)(2), subsection II. Also, but for the additional elements, the claim under its broadest reasonable interpretation recites limitations grouped within the “mental processes” grouping of abstract ideas. The mental processes abstract idea grouping is defined as concepts performed in the human mind, and examples of mental processes recite observations, evaluations, judgments, and opinions. Claims recite a mental process when they recite limitations that can practically be performed in the human mind, with or without the use of a physical aid. The use of a physical aid to help perform a mental step does not negate the mental nature of the limitation, but simply accounts for variations in memory capacity from one person to another. Further, claims can recite a mental process even if they are claimed as being performed on a computer. See MPEP § 2106.04(a)(2), subsection III. The claim limitations reciting the abstract ideas are grouped within the “certain methods of organizing human activity” and “mental processes” grouping of abstract ideas because the limitations recite fundamental economic principles or practices, as they recite mitigating risk, commercial or legal interactions, as they recite sales activities or behaviors, and concepts that can practically be performed in the human mind, with or without the use of a physical aid. More specifically, the following underlined claim elements recite abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a).
A non-transitory computer-readable medium comprising instructions that, when executed by a processor, cause the processor to:
receive, via a short-range communication antenna of a first mobile device, first encrypted data from a first contactless card of a seller of an item for sale via a website or a mobile application;
successfully decrypt the first encrypted data to authenticate the first contactless card;
when the first contactless card has been authenticated, identify personally identifiable information of the seller and a bank or credit account number for the seller and, responsive thereto, offer the item for sale at a purchase price via the website or the mobile application and place the item for sale in an escrow account;
receive, via a short-range communication antenna of a second mobile device, second encrypted data from a second contactless card of a buyer of the item for sale;
successfully decrypt the second encrypted data to authenticate the second contactless card;
when the second contactless card has been authenticated, identify personally identifiable information of the buyer and a bank or credit account number for the buyer and responsive thereto, retrieve an amount of money equal to the purchase price from a bank or credit account matching the bank or credit account number for the buyer and place the money in the escrow account;
receive, via the short-range communication antenna of the first mobile device or the short-range communication antenna of the second mobile device, the second encrypted data from the second contactless card a second time;
successfully decrypt the second encrypted data to authenticate the second contactless card a second time;
when the second contactless card has been authenticated the second time,
simultaneously release access to the item for sale in the escrow account to the buyer and the money in the escrow account to a bank or credit account matching the bank or credit account number for the seller.
Step 2A Prong Two
In Prong Two, examiners evaluate whether the claim as a whole integrates the exception into a practical application of that exception. A claim that integrates a judicial exception into a practical application will apply, rely on, or use the judicial exception in a manner that imposes a meaningful limit on the judicial exception, such that the claim is more than a drafting effort designed to monopolize the judicial exception. Here, claim 22 as a whole, looking at the identified additional elements individually and in combination, does not integrate the judicial exception into a practical application. First, the non-underlined additional elements merely serve as a tool to perform the abstract idea (MPEP § 2106.05(f)). Additionally, regarding the specification and claims, there is no improvement in the functioning of a computer or an improvement to other technology or technical field present (MPEP §§ 2106.04(d)(1) and 2106.05(a)), there is no applying or using the judicial exception to effect a particular treatment or prophylaxis for a disease or medical condition present (MPEP § 2106.04(d)(2)), there is no implementing the judicial exception with or using the judicial exception in conjunction with a particular machine or manufacture that is integral to the claim present (MPEP § 2106.05(b)), there is no effecting a transformation or reduction of a particular article to a different state or thing present (MPEP § 2106.05(c)), and there is no applying or using the judicial exception in some other meaningful way beyond generally linking the use of the judicial exception to a particular technological environment present, such that the claim as a whole is more than a drafting effort designed to monopolize the exception (MPEP § 2106.05(e)). Thus, the claim as a whole is directed to a judicial exception and thus requires further analysis at Step 2B to determine if the claim as a whole, amounts to significantly more than the exception itself (See MPEP 2106.04, subsection II).
Step 2B
Step 2B determines whether the claim as a whole amount to significantly more than the exception itself. Evaluating additional elements to determine whether they amount to an inventive concept requires considering them both individually and in combination to ensure that they amount to significantly more than the judicial exception itself. Here, the additional elements, taken individually and in combination, do not result in claim 22, as a whole, amounting to significantly more than the judicial exception. As discussed previously with respect to Step 2A, the additional elements merely serve as a tool to perform an abstract idea, and generally links the use of the judicial exception to a particular technological environment. Thus, there is no inventive concept in the claim and thus the claim is not eligible, warranting a rejection for lack of subject matter eligibility and concluding the eligibility analysis.
Dependent Claims:
Claims 23-26 have also been analyzed. However, the subject matter of these claims also fails to recite patent eligible subject matter for the following reasons:
Claim 23 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
wherein the instructions further cause the processor to reject the sale from the seller to the buyer when the bank or credit account matching the bank or credit account number for the seller or the bank or credit account matching the bank or credit account number for the buyer has been a party to prior fraudulent activity.
Claim 24 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
wherein the instructions further cause the processor to:
receive the personally identifiable information of the seller or the bank or credit account number for the seller from the first contactless card; and receive the personally identifiable information of the buyer and the bank or credit account number for the buyer from the second contactless card.
Claim 25 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
wherein the instructions further cause the processor to:
use the first encrypted data to retrieve the personally identifiable information of the seller or the bank or credit account number for the seller from a banking or credit authorization system; and use the second encrypted data to retrieve the personally identifiable information of the buyer or the bank or credit account number for the buyer from the banking or credit authorization system.
Claim 26 recites the following underlined claim elements as abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a). The non-underlined additional elements fail to recite a practical application or significantly more than the abstract idea because it merely serves as a tool to perform the abstract idea (MPEP § 2106.05(f)).
wherein the instructions further cause the processor to:
identify a first customer account associated with the first contactless card to authenticate the first contactless card;
decrypt first protected data in the first encrypted data;
compare the first protected data to first stored record data associated with the first customer account;
authenticate the first contactless card based on a match between the first protected data and the first stored record data;
identify a second customer account associated with the second contactless card to authenticate the second contactless card;
decrypt second protected data in the second encrypted data;
compare the second protected data to second stored record data associated with the second customer account; and
authenticate the second contactless card based on a match between the second protected data and the second stored record data.
Claims 27:
Step 1
Claims 27 are directed to a computer-implemented system (i.e., machine, and manufacture). Therefore, these claims fall within the four statutory categories of invention, and thus must be further analyzed at Step 2A to determine if the claims are directed to a judicial exception (See MPEP 2106.03, subsection II).
Step 2A Prong One
In Prong One examiners evaluate whether the claim recites a judicial exception, i.e., whether a law of nature, natural phenomenon, or abstract idea is set forth or described in the claim. Claim 27 recites (i.e., sets forth or describes) an abstract idea of authorizing a conditional exchange of value between parties based on verified intent. Specifically, but for the additional elements, the claim under its broadest reasonable interpretation recites limitations grouped within the “certain methods of organizing human activity” grouping of abstract ideas. The certain method of organizing human activity grouping is used to describe fundamental economic principles or practices, commercial or legal interactions, and managing personal behavior or relationships or interactions between people. Fundamental economic principles or practices are relating to the economy and commerce, or recite hedging, insurance, and mitigating risks. Commercial or legal interactions recite agreements in the form of contracts, legal obligations, advertising, marketing or sales activities or behaviors, and business relations. Managing personal behavior or relationships or interactions between people recite social activities, teaching, and following rules or instructions. See MPEP § 2106.04(a)(2), subsection II. Also, but for the additional elements, the claim under its broadest reasonable interpretation recites limitations grouped within the “mental processes” grouping of abstract ideas. The mental processes abstract idea grouping is defined as concepts performed in the human mind, and examples of mental processes recite observations, evaluations, judgments, and opinions. The claims recite a mental process when they recite limitations that can practically be performed in the human mind, with or without the use of a physical aid. The use of a physical aid to help perform a mental step does not negate the mental nature of the limitation, but simply accounts for variations in memory capacity from one person to another. Further, claims can recite a mental process even if they are claimed as being performed on a computer. See MPEP § 2106.04(a)(2), subsection III. The claim limitations reciting the abstract ideas are grouped within the “certain methods of organizing human activity” and “mental processes” grouping of abstract ideas because the limitations recite fundamental economic principles or practices, as they recite mitigating risk, commercial or legal interactions, as they recite sales activities or behaviors, and concepts that can practically be performed in the human mind, with or without the use of a physical aid. More specifically, the following underlined claim elements recite abstract ideas while the non-underlined claim elements recite additional elements according to MPEP 2106.04(a).
A server device comprising:
a processor; and
a memory storing instructions that, when executed by the processor, cause the processor to:
receive, via a short-range communication antenna of a first mobile device,
first encrypted data from a first contactless card of a seller of an item for sale via a website or a mobile application;
successfully decrypt the first encrypted data to authenticate the first contactless card;
when the first contactless card has been authenticated, identify personally identifiable information of the seller and a bank or credit account number for the seller and, responsive thereto, offer the item for sale at a purchase price via the website or the mobile application and place the item for sale in an escrow account;
receive, via a short-range communication antenna of a second mobile device, second encrypted data from a second contactless card of a buyer of the item for sale;
successfully decrypt the second encrypted data to authenticate the second contactless card;
when the second contactless card has been authenticated, identify personally identifiable information of the buyer and a bank or credit account number for the buyer and responsive thereto, retrieve an amount of money equal to the purchase price from a bank or credit account matching the bank or credit account number for the buyer and place the money in the escrow account;
receive, via the short-range communication antenna of the first mobile device or the short-range communication antenna of the second mobile device, the second encrypted data from the second contactless card a second time;
successfully decrypt the second encrypted data to authenticate the second contactless card a second time;
when the second contactless card has been authenticated the second time,
simultaneously release access to the item for sale in the escrow account to the
buyer and the money in the escrow account to a bank or credit account matching the bank or credit account number for the seller.
Step 2A Prong Two
In Prong Two, examiners evaluate whether the claim as a whole integrates the exception into a practical application of that exception. A claim that integrates a judicial exception into a practical application will apply, rely on, or use the judicial exception in a manner that imposes a meaningful limit on the judicial exception, such that the claim is more than a drafting effort designed to monopolize the judicial exception. Here, claim 27 as a whole, looking at the identified additional elements individually and in combination, does not integrate the judicial exception into a practical application. First, the non-underlined additional elements merely serve as a tool to perform the abstract idea (MPEP § 2106.05(f)). Additionally, regarding the specification and claims, there is no improvement in the functioning of a computer or an improvement to other technology or technical field present (MPEP §§ 2106.04(d)(1) and 2106.05(a)), there is no applying or using the judicial exception to effect a particular treatment or prophylaxis for a disease or medical condition present (MPEP § 2106.04(d)(2)), there is no implementing the judicial exception with or using the judicial exception in conjunction with a particular machine or manufacture that is integral to the claim present (MPEP § 2106.05(b)), there is no effecting a transformation or reduction of a particular article to a different state or thing present (MPEP § 2106.05(c)), and there is no applying or using the judicial exception in some other meaningful way beyond generally linking the use of the judicial exception to a particular technological environment present, such that the claim as a whole is more than a drafting effort designed to monopolize the exception (MPEP § 2106.05(e)). Thus, the claim as a whole is directed to a judicial exception and thus requires further analysis at Step 2B to determine if the claim as a whole, amounts to significantly more than the exception itself (See MPEP 2106.04, subsection II).
Step 2B
Step 2B determines whether the claim as a whole amount to significantly more than the exception itself. Evaluating additional elements to determine whether they amount to an inventive concept requires considering them both individually and in combination to ensure that they amount to significantly more than the judicial exception itself. Here, the additional elements, taken individually and in combination, do not result in claim 27, as a whole, amounting to significantly more than the judicial exception. As discussed previously with respect to Step 2A, the additional elements merely serve as a tool to perform an abstract idea, and generally links the use of the judicial exception to a particular technological environment. Thus, there is no inventive concept in the claim and thus the claim is not eligible, warranting a rejection for lack of subject matter eligibility and concluding the eligibility analysis.
Claim Rejections - 35 USC § 103
The following is a quotation of 35 U.S.C. 103 which forms the basis for all obviousness rejections set forth in this Office action:
A patent for a claimed invention may not be obtained, notwithstanding that the claimed invention is not identically disclosed as set forth in section 102, if the differences between the claimed invention and the prior art are such that the claimed invention as a whole would have been obvious before the effective filing date of the claimed invention to a person having ordinary skill in the art to which the claimed invention pertains. Patentability shall not be negated by the manner in which the invention was made.
Claims 1-27 are rejected under 35 U.S.C. 103 as being unpatentable over Matsuda et al. (US7451114) (hereinafter “Matsuda”) in view of Kurani (US20230034907A1) (hereinafter “Kurani”) in further view of Rule et al. (US10510074) (hereinafter “Rule”).
As per Claim 1, 22, and 27, Matsuda teaches:
A method comprising: receiving, by a processor and via a short-range communication antenna of a first mobile device, first . . . from a first . . . of a seller of . . .; (“the opportunity to review all details regarding the transaction, including the information entered by the seller regarding the condition and description of the goods to be sold. The buyer can choose to modify the information, cancel the purchase.” (Col. 12, ln. 55-60); “Terminals 108a-n and servers 104a-n may be implemented using any of a number of computing platforms, such as desktop personal computers, laptops, personal digital assistants, screen phones, workstations, etc., running an operating system such as Windows, DOS, UNIX, OS/2, NT, or the like.” (Col. 5, ln. 25-29); “After transaction server 210 receives all required cardholder information, an account check may be performed ( step 262). An account check is any check or verification process performed to verify the authenticity and validity of the account information provided in step 260 and may comprise the generation of a balance inquiry message or other authorization check of the account information through financial network 220.” (Col. 8, ln. 8-15)).
successfully decrypting, by the processor, . . . the first . . . to authenticate the first . . .; (“Transaction server 210 may then prompt the participant to select a password for use in making or accepting payments using the service (step 270). The use of this password, in conjunction with the unique account ID, will allow the participant to act as a buyer or seller of goods using the payment techniques of the present invention without needing to reenter personal information and payment card information for each transaction. Instead, as will be discussed, the participant will only need to enter a limited amount of identifying information, such as his or her password and account ID to make or receive payment using the system. Alternatively, or in addition, other authentication techniques may be used to further prevent fraudulent or unauthorized access to account information. For example, virtual or physical authentication tokens containing certificates may be used to authenticate the identity of the participant when the participant attempts to present an account ID.” (Col. 9, ln. 27-43); “Alternatively, or in addition, other authentication techniques may be used to further prevent fraudulent or unauthorized access to account information. For example, virtual or physical authentication tokens containing certificates may be used to authenticate the identity of the participant when the participant attempts to present an account ID..” (Col. 9, ln. 37-43); “Preferably, the confirmation message will include the unique account ID and/or some other information that will allow the participant to uniquely and securely identify the cardholder account record.” (Col. 9, ln. 53-55)).
when the first . . . card has been authenticated, identifying by the processor, personally identifiable information of the seller and a bank or credit account number for the seller and, responsive thereto, . . .; (“The amount debited from the buyer's account may then be placed in an optional escrow account (step 334), or may be directly credited to any accounts as established in the transaction record generated at step 328. . . . The amount of the purchase is directly credited to seller's designated payment card account (i.e., the payment card account that the seller registered with transaction server210 in the registration process of FIG. 3). To credit the seller's payment card account, transaction server 210 will generate a credit message which includes information including the credit amount, a source of funds, and the seller's payment card account number to be credited. This credit message will be forwarded from transaction server 210 to financial networks 220 for processing. The source of funds for the credit message will be either the buyer's payment card account number or the escrow account (if the optional escrow account is used).” (Col. 14, ln. 4-24); “Referring now to FIG. 6, example database structures for account database 242 and transaction database 244 are shown (in FIGS. 6A and 6B respectively). The entries of these example databases illustrate various pieces of information that may be entered into and tracked by each database. For example, in FIG. 6A, account database 242 may include a number of entries, each keyed by an account ID 402. Account ID 402 identifies a particular participant, by including data describing the participants card number 404, it's expiration data 406, cardholder information 408, an e-mail address 410, and a registration date 412. This information will be obtained when a participant registers ( either through the process of FIG. 3 or the process of FIG. 4). Only the account ID need be communicated to other participants, ensuring that cardholder information is protected by transaction server 210.” (Col. 14, ln. 46-60)).
offering, by the processor, the item for sale at a purchase price via the website or the mobile application and . . .“Other information which may be provided to establish a transaction record at step 314 includes details regarding an optional escrow period which may be set by transaction server 210 or agreed-upon by the parties. This optional escrow period may be used to ensure that goods are shipped and received in good order before the seller is paid for the goods.” (Col. 11, ln. 21-26); “Transaction database 244 may include a number of entries, including, for example: a transaction ID 414; a buyer account ID 416; a seller account ID 418; a price term 420; a description of goods or services to be sold 422; a shipping field 424; a transaction date 426; and an escrow close 428.” (Col. 14, ln. 63-66)).
receiving, by the processor and via a short-range communication antenna of a second mobile device, second . . . from a second . . . card of a buyer of the item for sale; (“An example payment process 300 will now be described by referring to FIG. 4. Payment process 300 occurs when two participants, for example, a buyer operating terminal 208a and a seller operating terminal 208n wish to conduct a purchase transaction. The two participants first negotiate terms of the transaction (step 302). This negotiation process may occur over network 203 or may be accomplished in the physical world.” (Col. 10, ln. 5-11); “The negotiation process will also result in the participants agreeing on a payment method. If the two parties agree (step 304) to use the payment method according to the present invention, processing continues to step 308 where one of the two participants to the transaction contacts transaction server 210 via the Internet or using some other form of communication (e.g., telephone, mail, etc.).” (Col. 10, ln. 29-35)
successfully decrypting, by the processor. . . the second . . . to authenticate the second . . . card; (“Transaction server 210 may then prompt the participant to select a password for use in making or accepting payments using the service (step 270). The use of this password, in conjunction with the unique account ID, will allow the participant to act as a buyer or seller of goods using the payment techniques of the present invention without needing to reenter personal information and payment card information for each transaction. Instead, as will be discussed, the participant will only need to enter a limited amount of identifying information, such as his or her password and account ID to make or receive payment using the system. Alternatively, or in addition, other authentication techniques may be used to further prevent fraudulent or unauthorized access to account information. For example, virtual or physical authentication tokens containing certificates may be used to authenticate the identity of the participant when the participant attempts to present an account ID.” (Col. 9, ln. 27-43); “Alternatively, or in addition, other authentication techniques may be used to further prevent fraudulent or unauthorized access to account information. For example, virtual or physical authentication tokens containing certificates may be used to authenticate the identity of the participant when the participant attempts to present an account ID..” (Col. 9, ln. 37-43); “Preferably, the confirmation message will include the unique account ID and/or some other information that will allow the participant to uniquely and securely identify the cardholder account record.” (Col. 9, ln. 53-55)).
when the second . . . card has been authenticated, identifying, by the processor, personally identifiable information of the buyer and a bank or credit account number for the buyer and responsive thereto, retrieving, by the processor, an amount of money equal to the purchase price from a bank or credit account matching the bank or credit account number for the buyer and placing, by the processor, the money in the escrow account; (“The amount debited from the buyer's account may then be placed in an optional escrow account (step 334), or may be directly credited to any accounts as established in the transaction record generated at step 328. . . . The amount of the purchase is directly credited to seller's designated payment card account (i.e., the payment card account that the seller registered with transaction server210 in the registration process of FIG. 3). To credit the seller's payment card account, transaction server 210 will generate a credit message which includes information including the credit amount, a source of funds, and the seller's payment card account number to be credited. This credit message will be forwarded from transaction server 210 to financial networks 220 for processing. The source of funds for the credit message will be either the buyer's payment card account number or the escrow account (if the optional escrow account is used).” (Col. 14, ln. 4-24); “Referring now to FIG. 6, example database structures for account database 242 and transaction database 244 are shown (in FIGS. 6A and 6B respectively). The entries of these example databases illustrate various pieces of information that may be entered into and tracked by each database. For example, in FIG. 6A, account database 242 may include a number of entries, each keyed by an account ID 402. Account ID 402 identifies a particular participant, by including data describing the participants card number 404, it's expiration data 406, cardholder information 408, an e-mail address 410, and a registration date 412. This information will be obtained when a participant registers ( either through the process of FIG. 3 or the process of FIG. 4). Only the account ID need be communicated to other participants, ensuring that cardholder information is protected by transaction server 210.” (Col. 14, ln. 46-60)).
receiving, by the processor and via the short-range communication antenna of the first mobile device or the short-range communication antenna of the second mobile device, the second . . . from the second . . . card a second time; (“An example payment process 300 will now be described by referring to FIG. 4. Payment process 300 occurs when two participants, for example, a buyer operating terminal 208a and a seller operating terminal 208n wish to conduct a purchase transaction. The two participants first negotiate terms of the transaction (step 302). This negotiation process may occur over network 203 or may be accomplished in the physical world.” (Col. 10, ln. 5-11); “The negotiation process will also result in the participants agreeing on a payment method. If the two parties agree (step 304) to use the payment method according to the present invention, processing continues to step 308 where one of the two participants to the transaction contacts transaction server 210 via the Internet or using some other form of communication (e.g., telephone, mail, etc.).” (Col. 10, ln. 29-35)
successfully decrypting, by the processor, . . . the second . . . to authenticate the second . . . card a second time; (“Transaction server 210 may then prompt the participant to select a password for use in making or accepting payments using the service (step 270). The use of this password, in conjunction with the unique account ID, will allow the participant to act as a buyer or seller of goods using the payment techniques of the present invention without needing to reenter personal information and payment card information for each transaction. Instead, as will be discussed, the participant will only need to enter a limited amount of identifying information, such as his or her password and account ID to make or receive payment using the system. Alternatively, or in addition, other authentication techniques may be used to further prevent fraudulent or unauthorized access to account information. For example, virtual or physical authentication tokens containing certificates may be used to authenticate the identity of the participant when the participant attempts to present an account ID.” (Col. 9, ln. 27-43); “Alternatively, or in addition, other authentication techniques may be used to further prevent fraudulent or unauthorized access to account information. For example, virtual or physical authentication tokens containing certificates may be used to authenticate the identity of the participant when the participant attempts to present an account ID..” (Col. 9, ln. 37-43); “Preferably, the confirmation message will include the unique account ID and/or some other information that will allow the participant to uniquely and securely identify the cardholder account record.” (Col. 9, ln. 53-55)).
when the second . . . card has been authenticated the second time, simultaneously releasing, by the processor, access to the item for sale in the escrow account to the buyer and the money in the escrow account to a bank or credit account matching the bank or credit account number for the seller. (“shipping server 214 . . .may establish a unique tracking number for the package. This unique shipping tracking number is associated with the transaction ID generated above. Shipping server 214 may notify transaction server 210 when the goods have been picked up from seller and when they have been delivered to buyer. This notification is preferably done by referring to the unique shipping tracking number. Once the goods have been confirmed as having been either picked up or delivered, transaction server 210 may take the necessary steps to ensure the buyer's account is debited for the transaction price.” (Col. 13, ln. 48-58); “If the optional escrow account (of step 334) is used, the funds debited from the buyer's account may be held in the escrow account until transaction server 210 receives some notification that the buyer properly received the purchased product in good shape and as advertised.” (Col. 14, ln. 23-27); “If the escrow period lapses without dispute by the buyer, the seller's account is credited with the purchase price (step 336) and the payment process is completed (step 338).” (Col. 14, ln. 34-37); “Once the seller has been successfully registered with transaction server 210 and this has been confirmed (step 310), a transaction record is generated for the current purchase transaction (step 314). Generation of the transaction record involves receiving certain details about the transaction from the parties. Where the seller is the party to first contact transaction server, the transaction record generated at step 314 will include all details regarding the transaction as supplied by the seller, including: the account ID of the seller; the date and time of the transaction; the agreed-upon purchase amount; the agreed-upon shipping terms; escrow terms; and buyer contact information.” (Col. 10, ln. 56-67); “Other information which may be provided to establish a transaction record at step 314 includes details regarding an optional escrow period which may be set by transaction server 210 or agreed-upon by the parties. This optional escrow period may be used to ensure that goods are shipped and received in good order before the seller is paid for the goods.” (Col. 11, ln. 21-26); “If the optional escrow account ( of step 334) is used, the funds debited from the buyer's account may be held in the escrow account until transaction server 210 receives some notification that the buyer properly received the purchased product in good shape and as advertised.” (Col. 14, ln. 23-27)).
Matsuda does not disclose:
• “placing, by the processor, the item for sale in an escrow account” (claim 1).
However, as per Claim 1, Kurani in the analogous art of math-based escrow transactions, teaches: “placing, by the processor, the item for sale in an escrow account”. (See “systems and methods for performing transactions involving a purchase of a titled item with MBC held in escrow are described” (Para. 0011), “The item is a physical or digital item having a digital title maintained by a digital title company 106.” (Para. 0012), “The agreement is for an escrow transaction in which the financial institution 108 agrees to hold and verify the MBC from the buyer 102 until (1) the asset's ownership and digital title are verified, and (2) any other terms of the escrow agreement are satisfied.” (Para. 0028))
It would have been obvious to one of ordinary skill in the art before the effective filing date to combine the transaction and escrow method of Matsuda with the technique of Kurani to include the processor treating the item for sale itself as being placed in an escrow account. Therefore, the incentives of providing improved transactional integrity provided a reason to make an adaptation, and the invention resulted from application of the prior knowledge in a predictable manner.
Matsuda does not disclose:
• “contactless” (claim 1).
However, as per Claim 1, Rule in the analogous art of secured digital transactions, teaches: “contactless”. (See “an application may output an indication specifying to tap a contactless card to complete a transaction initiated in the application. The application may receive encrypted data generated by the contactless card based on a private key stored in the contactless card. The application may transmit a merchant identifier, a transaction identifier, and the encrypted data to an authentication server. The authentication server may verify the encrypted data based on the private key for the contactless card stored by the authentication server. A virtual account number server may generate a virtual account number. A merchant server may receive the merchant identifier, the transaction identifier, the virtual account number, an expiration date, and a card verification value (CVV). The merchant server may process the transaction using the transaction identifier, the virtual account number, the expiration date, and the CVV” (Col. 1, ln. 25-40).
It would have been obvious to one of ordinary skill in the art before the effective filing date to combine the method of Matsuda with the technique of Rule to include a feature for contactless authorization in an authentication process. Therefore, the incentives of providing increased user convenience, transaction speed, and authentication security provided a reason to make an adaptation, and the invention resulted from application of the prior knowledge in a predictable manner.
Matsuda does not disclose:
• “encrypted data” and “decrypting” (claim 1).
However, as per Claim 1, Rule in the analogous art of secured digital transactions, teaches: “encrypted data” and “decrypting”. (See “Doing so causes the contactless card to generate encrypted data which is transmitted to the computing device. The merchant application may receive the encrypted data generated by the contactless card and transmit the encrypted data to an authentication server for validation. The merchant application may further transmit an indication of a merchant identifier and/or a transaction identifier with the encrypted data. Once validated, the authentication server may instruct a virtual account number server to generate card data for the account associated with the contactless card.” (Col. 1, ln. 63-67 – col. 2, ln. 1-6); “Once received, the authentication application 123 may then authenticate the encrypted data 106. For example, the
authentication application 123 may attempt to decrypt the encrypted data 106 using a copy of the private key 104 stored in the memory 122 of the authentication server 120.
The private key 104 may be identical to the private key 104 stored in the memory 102 of the contactless card 101, where each contactless card 101 is manufactured to include a
unique private key 104 (and the authentication server 120 stores a corresponding copy of each unique private key 104). Therefore, the authentication application 123 may successfully decrypt the encrypted data 106, thereby verifying the encrypted data 106.” (Col. 5, ln. 27-37).
It would have been obvious to one of ordinary skill in the art before the effective filing date to combine the method of Matsuda with the technique of Rule to include the steps of encrypting and decrypting user or transaction data in an authentication process. Therefore, the incentives of providing increased transaction security provided a reason to make an adaptation, and the invention resulted from application of the prior knowledge in a predictable manner.
Matsuda does not disclose:
• “offering the item for sale at a purchase price via the website or the mobile application” (claim 1).
However, as per Claim 1, Rule in the analogous art of secured digital transactions, teaches: “offering the item for sale at a purchase price via the website or the mobile application”. (See “As shown, the OS 112 includes one or more merchant applications 113. The merchant applications 113 are representative of any type of application where a user may provide payment information to complete a transaction. For example, the merchant applications 113 may allow the users to select and purchase goods, products, and/or services. In one embodiment, the merchant applications 113 may be web based applications that are accessed using a web browser (not pictured). For example, in web-based applications, the web browser may access a website of the merchant and/or progressive web applications provided by the merchant.” (Col. 3, ln. 56-67); “the merchant server 150 may generate a
confirmation 153 indicating that payment for the transaction was received and the transaction has been processed. The merchant server 150 may transmit the confirmation 153 to the merchant application 113, which may output the confirmation 153 on a display of the mobile device 110. In other embodiments, the confirmation 153 may be an email confirmation, text message confirmation, push notification, etc. Doing so informs the user that the transaction has been completed and may include additional information. . .” (Col. 7, ln 25-34)
It would have been obvious to one of ordinary skill in the art before the effective filing date to combine the method of Matsuda with the technique of Rule to include a feature offering users the option to select items for purchase via a website or mobile application. Therefore, the incentives of providing increased user convenience and transaction speed provided a reason to make an adaptation, and the invention resulted from application of the prior knowledge in a predictable manner.
As per Claim 2, Matsuda teaches:
The method of claim 1 further comprising: identifying a location of the seller and identifying a location of the buyer. (“the buyer's account and details regarding the present transaction may be subjected to further analysis in addition to the authorization request. For example, transaction server 210 and/or financial network 220 may perform a risk analysis for each transaction taking into account data elements for each transaction such as: the past history of the buyer and seller as participants; the amount of the transaction; the type of item being purchased; frequency of purchases; time of the transaction; other activity on the payment card accounts. . . Internet dial-in location; etc.” (Col. 13, ln. 20-32); “At this step, the participant is asked to provide detailed account information such as: cardholder name; address· e-mail address telephone number; payment card account dumber; the expiration date of the payment card to be registered; etc. Preferably, this information is entered in a secure session between terminal 208 and transaction server 210. For example, a secure session may be established using secure HTTP (SHTTP) or secure socket layer (SSL) techniques.” (Col. 7, ln. 55-65).
As per Claim 3, Matsuda teaches:
The method of claim 2 further comprising: using an address for the seller to identify the location of the seller; and using an address for the buyer to identify the location of the buyer, wherein the personally identifiable information of the seller includes the address for the seller, and wherein the personally identifiable information of the buyer includes the address for the buyer. (“the buyer's account and details regarding the present transaction may be subjected to further analysis in addition to the authorization request. For example, transaction server 210 and/or financial network 220 may perform a risk analysis for each transaction taking into account data elements for each transaction such as: the past history of the buyer and seller as participants; the amount of the transaction; the type of item being purchased; frequency of purchases; time of the transaction; other activity on the payment card accounts. . . Internet dial-in location; etc.” (Col. 13, ln. 20-32); “At this step, the participant is asked to provide detailed account information such as: cardholder name; address· e-mail address telephone number; payment card account dumber; the expiration date of the payment card to be registered; etc. Preferably, this information is entered in a secure session between terminal 208 and transaction server 210. For example, a secure session may be established using secure HTTP (SHTTP) or secure socket layer (SSL) techniques.” (Col. 7, ln. 55-65).
As per Claim 4, Matsuda teaches:
The method of claim 2 further comprising: using a cellular or . . . of the first mobile device to identify the location of the seller; and using a cellular or . . . of the second mobile device to identify the location of the buyer. (“the buyer's account and details regarding the present transaction may be subjected to further analysis in addition to the authorization request. For example, transaction server 210 and/or financial network 220 may perform a risk analysis for each transaction taking into account data elements for each transaction such as: the past history of the buyer and seller as participants; the amount of the transaction; the type of item being purchased; frequency of purchases; time of the transaction; other activity on the payment card accounts. . . Internet dial-in location; etc.” (Col. 13, ln. 20-32); “At this step, the participant is asked to provide detailed account information such as: cardholder name; address· e-mail address telephone number; payment card account dumber; the expiration date of the payment card to be registered; etc. Preferably, this information is entered in a secure session between terminal 208 and transaction server 210. For example, a secure session may be established using secure HTTP (SHTTP) or secure socket layer (SSL) techniques.” (Col. 7, ln. 55-65).
Matsuda does not disclose:
• “GPS location” (claim 4).
However, as per Claim 4, Rule in the analogous art of secured digital transactions, teaches: “GPS location”. (See “In some embodiments, the one-tap module 114 may transmit additional data describing the mobile device 110, such as a software fingerprint of the mobile device 110, location (e.g., global positioning system (GPS)) data of the mobile device 110, a unique identifier of the mobile device 110, etc.” (Col. 5, ln. 21-26). It would have been obvious to one of ordinary skill in the art before the effective filing date to combine the method of Matsuda with the technique of Rule to include a feature for confirming the GPS position of user device in an authentication process. Therefore, the incentives of providing increased transaction security provided a reason to make an adaptation, and the invention resulted from application of the prior knowledge in a predictable manner.
As per Claim 5, Matsuda teaches:
The method of claim 2 further comprising: identifying a distance between the location of the buyer and the location of the seller; and rejecting the sale from the seller to the buyer when the distance is greater than a predetermined threshold. (“Before completing the transaction, the buyer may be given the opportunity to review all details regarding the transaction, including the information entered by the seller regarding the condition and description of the goods to be sold. The buyer can choose to modify the information, cancel the purchase, or approve the purchase.” (Col. 12, ln. 55-59); “Additional checks may also be performed at this step 262. For example, an address verification check may be performed to verify that the cardholder address provided at step 260 is accurate and matches cardholder address records maintained by the payment card issuer.” (Col. 8, ln. 36-41).
As per Claim 6, Matsuda teaches:
The method of claim 2 further comprising: identifying a recommended exchange location in between the location of the buyer and the location of the seller. (“An example payment process 300 will now be described by referring to FIG. 4. Payment process 300 occurs when two participants, for example, a buyer operating terminal 208a and a seller operating terminal 208n wish to conduct a purchase transaction. The two participants first negotiate terms of the transaction (step 302). This negotiation process may occur over network 203 or may be accomplished in the physical world. For example, the negotiation process may involve one participant answering a newspaper classified ad of the other participant and the two participants agreeing on a sale price and delivery terms. The negotiation between a service provider (e.g., a gardener) and a customer (e.g. homeowner) may involve the oral establishment of a price for the services with the agreement that the service provider will be paid once services are performed. In an example negotiation process over network 203, the selling participant may have advertised goods for sale on an Internet classified ad or auction site, and the buying participant may have seen the advertised goods on
the Internet, made an electronic offer via e-mail or other form of communication, and had the offer accepted by the seller. The negotiation process, whether conducted in the physical world or over the Internet, will generally involve the participants reaching agreement as to price, delivery, and nature of the goods or services being purchased.” (Col. 10, ln. 5-26); “Before completing the transaction, the buyer may be given the opportunity to review all details regarding the transaction, including the information entered by the seller regarding the condition and description of the goods to be sold. The buyer can choose to modify the information, cancel the purchase, or approve the purchase.” (Col. 12, ln. 55-59); “Additional checks may also be performed at this step 262. For example, an address verification check may be performed to verify that the cardholder address provided at step 260 is accurate and matches cardholder address records maintained by the payment card issuer.” (Col. 8, ln. 36-41).
As per Claim 7, Matsuda teaches:
The method of claim 6 further comprising: identifying an exchange time for the buyer and seller to meet; and rejecting the sale from the seller to the buyer when the location of the seller or the location of the buyer are more than a predetermined distance away from the recommended exchange location at the exchange time or within a predetermined period of time thereafter. (“An example payment process 300 will now be described by referring to FIG. 4. Payment process 300 occurs when two participants, for example, a buyer operating terminal 208a and a seller operating terminal 208n wish to conduct a purchase transaction. The two participants first negotiate terms of the transaction (step 302). This negotiation process may occur over network 203 or may be accomplished in the physical world. For example, the negotiation process may involve one participant answering a newspaper classified ad of the other participant and the two participants agreeing on a sale price and delivery terms. The negotiation between a service provider (e.g., a gardener) and a customer (e.g. homeowner) may involve the oral establishment of a price for the services with the agreement that the service provider will be paid once services are performed. In an example negotiation process over network 203, the selling participant may have advertised goods for sale on an Internet classified ad or auction site, and the buying participant may have seen the advertised goods on
the Internet, made an electronic offer via e-mail or other form of communication, and had the offer accepted by the seller. The negotiation process, whether conducted in the physical world or over the Internet, will generally involve the participants reaching agreement as to price, delivery, and nature of the goods or services being purchased.” (Col. 10, ln. 5-26); “Before completing the transaction, the buyer may be given the opportunity to review all details regarding the transaction, including the information entered by the seller regarding the condition and description of the goods to be sold. The buyer can choose to modify the information, cancel the purchase, or approve the purchase.” (Col. 12, ln. 55-59); “Additional checks may also be performed at this step 262. For example, an address verification check may be performed to verify that the cardholder address provided at step 260 is accurate and matches cardholder address records maintained by the payment card issuer.” (Col. 8, ln. 36-41).
As per Claim 8, Matsuda teaches:
The method of claim 2 further comprising: rejecting the sale from the seller to the buyer when the location of the seller or the location of the buyer is within a predetermined high crime area. (“An example payment process 300 will now be described by referring to FIG. 4. Payment process 300 occurs when two participants, for example, a buyer operating terminal 208a and a seller operating terminal 208n wish to conduct a purchase transaction. The two participants first negotiate terms of the transaction (step 302). This negotiation process may occur over network 203 or may be accomplished in the physical world. For example, the negotiation process may involve one participant answering a newspaper classified ad of the other participant and the two participants agreeing on a sale price and delivery terms. The negotiation between a service provider (e.g., a gardener) and a customer (e.g. homeowner) may involve the oral establishment of a price for the services with the agreement that the service provider will be paid once services are performed. In an example negotiation process over network 203, the selling participant may have advertised goods for sale on an Internet classified ad or auction site, and the buying participant may have seen the advertised goods on
the Internet, made an electronic offer via e-mail or other form of communication, and had the offer accepted by the seller. The negotiation process, whether conducted in the physical world or over the Internet, will generally involve the participants reaching agreement as to price, delivery, and nature of the goods or services being purchased.” (Col. 10, ln. 5-26); “Before completing the transaction, the buyer may be given the opportunity to review all details regarding the transaction, including the information entered by the seller regarding the condition and description of the goods to be sold. The buyer can choose to modify the information, cancel the purchase, or approve the purchase.” (Col. 12, ln. 55-59); “Additional checks may also be performed at this step 262. For example, an address verification check may be performed to verify that the cardholder address provided at step 260 is accurate and matches cardholder address records maintained by the payment card issuer.” (Col. 8, ln. 36-41); “In the event that a particular transaction appears to carry a high probability of fraud or an unreasonably high risk of loss, the transaction should be aborted without generating an authorization at step 330.” (Col. 13, ln. 34-37).
As per Claim 9, Matsuda teaches:
The method of claim 1 further comprising: rejecting the sale from the seller to the buyer when the bank or credit account matching the bank or credit account number for the seller or the bank or credit account matching the bank or credit account number for the buyer has been a party to prior fraudulent activity. (“To further reduce the risk of fraudulent transactions ( e.g., use of stolen buyer account numbers or buyer/seller collusion) the seller's account, the buyer's account and details regarding the present transaction may be subjected to further analysis in addition to the authorization request. For example, transaction server 210 and/or financial network 220 may perform a risk analysis for each transaction taking into account data elements for each transaction such as: the past history of the buyer and seller as participants; the amount of the transaction; the type of item being purchased; frequency of purchases; time of the transaction; other activity on the payment card accounts; nature of the participant's e-mail addresses (are they anonymous e-mail addresses which do not verify the identity of the participant?); Internet dial-in location; etc. Risk techniques known in the art may be used to assess a risk variable to each transaction based on an analysis of these variables. In the event that a particular transaction appears to carry a high probability of fraud or an unreasonably high risk of loss, the transaction should be aborted without generating an authorization at step 330.” (Col. 13, ln. 17-37).
As per Claim 10, Matsuda teaches:
The method of claim 1 further comprising: causing a notification message to be sent to the first mobile device when the money in the escrow account is sent to the bank or credit account matching the bank or credit account number for the seller. (“This unique shipping tracking number is associated with the transaction ID generated above. Shipping server 214 may notify transaction server 210 when the goods have been picked up from seller and when they have been delivered to buyer. This notification is preferably done by referring to the unique shipping tracking number. Once the goods have been confirmed as having been either picked up or delivered, transaction server 210 may take the necessary steps to ensure the buyer's account is debited for the transaction price.” (Col. 13, ln. 50-57); “The amount debited from the buyer's account may then be placed in an optional escrow account (step 334), or may be directly credited to any accounts as established in the transaction record generated at step 328.” (Col. 14, ln. 4-7)
As per Claim 11, Matsuda teaches:
The method of claim 1 further comprising: receiving the personally identifiable information of the seller or the bank or credit account number for the seller from the first . . . card; and receiving the personally identifiable information of the buyer and the bank or credit account number for the buyer from the second . . . card. (“The amount debited from the buyer's account may then be placed in an optional escrow account (step 334), or may be directly credited to any accounts as established in the transaction record generated at step 328. . . . The amount of the purchase is directly credited to seller's designated payment card account (i.e., the payment card account that the seller registered with transaction server210 in the registration process of FIG. 3). To credit the seller's payment card account, transaction server 210 will generate a credit message which includes information including the credit amount, a source of funds, and the seller's payment card account number to be credited. This credit message will be forwarded from transaction server 210 to financial networks 220 for processing. The source of funds for the credit message will be either the buyer's payment card account number or the escrow account (if the optional escrow account is used).” (Col. 14, ln. 4-24); “Referring now to FIG. 6, example database structures for account database 242 and transaction database 244 are shown (in FIGS. 6A and 6B respectively). The entries of these example databases illustrate various pieces of information that may be entered into and tracked by each database. For example, in FIG. 6A, account database 242 may include a number of entries, each keyed by an account ID 402. Account ID 402 identifies a particular participant, by including data describing the participants card number 404, it's expiration data 406, cardholder information 408, an e-mail address 410, and a registration date 412. This information will be obtained when a participant registers ( either through the process of FIG. 3 or the process of FIG. 4). Only the account ID need be communicated to other participants, ensuring that cardholder information is protected by transaction server 210.” (Col. 14, ln. 46-60)).
Matsuda does not disclose:
• “contactless” (claim 11).
However, as per Claim 11, Rule in the analogous art of secured digital transactions, teaches: “contactless”. (See “an application may output an indication specifying to tap a contactless card to complete a transaction initiated in the application. The application may receive encrypted data generated by the contactless card based on a private key stored in the contactless card. The application may transmit a merchant identifier, a transaction identifier, and the encrypted data to an authentication server. The authentication server may verify the encrypted data based on the private key for the contactless card stored by the authentication server. A virtual account number server may generate a virtual account number. A merchant server may receive the merchant identifier, the transaction identifier, the virtual account number, an expiration date, and a card verification value (CVV). The merchant server may process the transaction using the transaction identifier, the virtual account number, the expiration date, and the CVV” (Col. 1, ln. 25-40).
It would have been obvious to one of ordinary skill in the art before the effective filing date to combine the method of Matsuda with the technique of Rule to include a feature for contactless authorization in an authentication process. Therefore, the incentives of providing increased user convenience, transaction speed, and authentication security provided a reason to make an adaptation, and the invention resulted from application of the prior knowledge in a predictable manner.
As per Claim 12, Matsuda teaches:
The method of claim 1 further comprising: using the first . . . to retrieve the personally identifiable information of the seller or the bank or credit account number for the seller from a banking or credit authorization system; and using the second . . . to retrieve the personally identifiable information of the buyer or the bank or credit account number for the buyer from the banking or credit authorization system. (“The amount debited from the buyer's account may then be placed in an optional escrow account (step 334), or may be directly credited to any accounts as established in the transaction record generated at step 328. . . . The amount of the purchase is directly credited to seller's designated payment card account (i.e., the payment card account that the seller registered with transaction server210 in the registration process of FIG. 3). To credit the seller's payment card account, transaction server 210 will generate a credit message which includes information including the credit amount, a source of funds, and the seller's payment card account number to be credited. This credit message will be forwarded from transaction server 210 to financial networks 220 for processing. The source of funds for the credit message will be either the buyer's payment card account number or the escrow account (if the optional escrow account is used).” (Col. 14, ln. 4-24); “Referring now to FIG. 6, example database structures for account database 242 and transaction database 244 are shown (in FIGS. 6A and 6B respectively). The entries of these example databases illustrate various pieces of information that may be entered into and tracked by each database. For example, in FIG. 6A, account database 242 may include a number of entries, each keyed by an account ID 402. Account ID 402 identifies a particular participant, by including data describing the participants card number 404, it's expiration data 406, cardholder information 408, an e-mail address 410, and a registration date 412. This information will be obtained when a participant registers ( either through the process of FIG. 3 or the process of FIG. 4). Only the account ID need be communicated to other participants, ensuring that cardholder information is protected by transaction server 210.” (Col. 14, ln. 46-60)).
Matsuda does not disclose:
• “encrypted data” (claim 12).
However, as per Claim 12, Rule in the analogous art of secured digital transactions, teaches: “encrypted data”. (See “Doing so causes the contactless card to generate encrypted data which is transmitted to the computing device. The merchant application may receive the encrypted data generated by the contactless card and transmit the encrypted data to an authentication server for validation. The merchant application may further transmit an indication of a merchant identifier and/or a transaction identifier with the encrypted data. Once validated, the authentication server may instruct a virtual account number server to generate card data for the account associated with the contactless card.” (Col. 1, ln. 63-67 – col. 2, ln. 1-6); “Once received, the authentication application 123 may then authenticate the encrypted data 106. For example, the authentication application 123 may attempt to decrypt the encrypted data 106 using a copy of the private key 104 stored in the memory 122 of the authentication server 120. The private key 104 may be identical to the private key 104 stored in the memory 102 of the contactless card 101, where each contactless card 101 is manufactured to include a unique private key 104 (and the authentication server 120 stores a corresponding copy of each unique private key 104). Therefore, the authentication application 123 may successfully decrypt the encrypted data 106, thereby verifying the encrypted data 106.” (Col. 5, ln. 27-37).
It would have been obvious to one of ordinary skill in the art before the effective filing date to combine the method of Matsuda with the technique of Rule to include the steps of encrypting and decrypting user or transaction data in an authentication process. Therefore, the incentives of providing increased transaction security provided a reason to make an adaptation, and the invention resulted from application of the prior knowledge in a predictable manner.
As per Claim 13, Matsuda teaches:
The method of claim 1 further comprising: identifying a first customer account associated with the first . . . card to authenticate the first . . . card; decrypting first protected data in the first . . .; comparing the first protected data to first stored record data associated with the first customer account; authenticating the first . . . card based on a match between the first protected data and the first stored record data; identifying a second customer account associated with the second . . . card to authenticate the second . . . card; decrypting second protected data in the second . . .; comparing the second protected data to second stored record data associated with the second customer account; and authenticating the second . . . card based on a match between the second protected data and the second stored record data. (“The amount debited from the buyer's account may then be placed in an optional escrow account (step 334), or may be directly credited to any accounts as established in the transaction record generated at step 328. . . . The amount of the purchase is directly credited to seller's designated payment card account (i.e., the payment card account that the seller registered with transaction server210 in the registration process of FIG. 3). To credit the seller's payment card account, transaction server 210 will generate a credit message which includes information including the credit amount, a source of funds, and the seller's payment card account number to be credited. This credit message will be forwarded from transaction server 210 to financial networks 220 for processing. The source of funds for the credit message will be either the buyer's payment card account number or the escrow account (if the optional escrow account is used).” (Col. 14, ln. 4-24); “Referring now to FIG. 6, example database structures for account database 242 and transaction database 244 are shown (in FIGS. 6A and 6B respectively). The entries of these example databases illustrate various pieces of information that may be entered into and tracked by each database. For example, in FIG. 6A, account database 242 may include a number of entries, each keyed by an account ID 402. Account ID 402 identifies a particular participant, by including data describing the participants card number 404, it's expiration data 406, cardholder information 408, an e-mail address 410, and a registration date 412. This information will be obtained when a participant registers ( either through the process of FIG. 3 or the process of FIG. 4). Only the account ID need be communicated to other participants, ensuring that cardholder information is protected by transaction server 210.” (Col. 14, ln. 46-60)).
Matsuda does not disclose:
• “encrypted data” (claim 13).
However, as per Claim 13, Rule in the analogous art of secured digital transactions, teaches: “encrypted data”. (See “Doing so causes the contactless card to generate encrypted data which is transmitted to the computing device. The merchant application may receive the encrypted data generated by the contactless card and transmit the encrypted data to an authentication server for validation. The merchant application may further transmit an indication of a merchant identifier and/or a transaction identifier with the encrypted data. Once validated, the authentication server may instruct a virtual account number server to generate card data for the account associated with the contactless card.” (Col. 1, ln. 63-67 – col. 2, ln. 1-6); “Once received, the authentication application 123 may then authenticate the encrypted data 106. For example, the authentication application 123 may attempt to decrypt the encrypted data 106 using a copy of the private key 104 stored in the memory 122 of the authentication server 120. The private key 104 may be identical to the private key 104 stored in the memory 102 of the contactless card 101, where each contactless card 101 is manufactured to include a unique private key 104 (and the authentication server 120 stores a corresponding copy of each unique private key 104). Therefore, the authentication application 123 may successfully decrypt the encrypted data 106, thereby verifying the encrypted data 106.” (Col. 5, ln. 27-37).
It would have been obvious to one of ordinary skill in the art before the effective filing date to combine the method of Matsuda with the technique of Rule to include the steps of encrypting and decrypting user or transaction data in an authentication process. Therefore, the incentives of providing increased transaction security provided a reason to make an adaptation, and the invention resulted from application of the prior knowledge in a predictable manner.
As per Claim 15, Matsuda teaches:
The method of claim 14 further comprising: responsive to authenticating second . . . from a second . . . card of a buyer of the item for sale, releasing money in an escrow account to a bank or credit account matching the bank or credit account number for the seller. (“The amount debited from the buyer's account may then be placed in an optional escrow account (step 334), or may be directly credited to any accounts as established in the transaction record generated at step 328. . . . The amount of the purchase is directly credited to seller's designated payment card account (i.e., the payment card account that the seller registered with transaction server210 in the registration process of FIG. 3). To credit the seller's payment card account, transaction server 210 will generate a credit message which includes information including the credit amount, a source of funds, and the seller's payment card account number to be credited. This credit message will be forwarded from transaction server 210 to financial networks 220 for processing. The source of funds for the credit message will be either the buyer's payment card account number or the escrow account (if the optional escrow account is used).” (Col. 14, ln. 4-24); “Referring now to FIG. 6, example database structures for account database 242 and transaction database 244 are shown (in FIGS. 6A and 6B respectively). The entries of these example databases illustrate various pieces of information that may be entered into and tracked by each database. For example, in FIG. 6A, account database 242 may include a number of entries, each keyed by an account ID 402. Account ID 402 identifies a particular participant, by including data describing the participants card number 404, it's expiration data 406, cardholder information 408, an e-mail address 410, and a registration date 412. This information will be obtained when a participant registers ( either through the process of FIG. 3 or the process of FIG. 4). Only the account ID need be communicated to other participants, ensuring that cardholder information is protected by transaction server 210.” (Col. 14, ln. 46-60)).
As per Claim 16, Matsuda teaches:
The method of claim 15 further comprising: responsive to authenticating the second . . . a first time to provision an amount of money equal to the purchase price in the escrow account and a second time to secure the item for sale, releasing the money in the escrow account to the bank or credit account matching the bank or credit account number for the seller. (“The amount debited from the buyer's account may then be placed in an optional escrow account (step 334), or may be directly credited to any accounts as established in the transaction record generated at step 328. . . . The amount of the purchase is directly credited to seller's designated payment card account (i.e., the payment card account that the seller registered with transaction server210 in the registration process of FIG. 3). To credit the seller's payment card account, transaction server 210 will generate a credit message which includes information including the credit amount, a source of funds, and the seller's payment card account number to be credited. This credit message will be forwarded from transaction server 210 to financial networks 220 for processing. The source of funds for the credit message will be either the buyer's payment card account number or the escrow account (if the optional escrow account is used).” (Col. 14, ln. 4-24); “Referring now to FIG. 6, example database structures for account database 242 and transaction database 244 are shown (in FIGS. 6A and 6B respectively). The entries of these example databases illustrate various pieces of information that may be entered into and tracked by each database. For example, in FIG. 6A, account database 242 may include a number of entries, each keyed by an account ID 402. Account ID 402 identifies a particular participant, by including data describing the participants card number 404, it's expiration data 406, cardholder information 408, an e-mail address 410, and a registration date 412. This information will be obtained when a participant registers ( either through the process of FIG. 3 or the process of FIG. 4). Only the account ID need be communicated to other participants, ensuring that cardholder information is protected by transaction server 210.” (Col. 14, ln. 46-60)).
As per Claim 21, Matsuda teaches:
The method of claim 1 further comprising: . . . prior to receiving the second encrypted data from the second contactless card the second time. (“step 314 includes details regarding an optional escrow period which may be set by transaction server 210 or agreed-upon by the parties. This optional escrow period may be used to ensure that goods are shipped and received in good order before the seller is paid for the goods”, Col. 11, ln. 21-27; “the funds debited from the buyer's account may be held in the escrow account until transaction server 210 receives some notification that the buyer properly received the purchased product in good shape and as advertised”, Col. 14, ln. 23-27; “After the seller has shipped the goods to the buyer and the buyer has had a reasonable chance to inspect the item(s), the escrow company pays the seller” Col. 2, ln. 54-56).
Matsuda does not disclose:
• “providing the buyer with access to the escrow account to confirm authenticity of the item for sale” (claim 1).
However, as per Claim 1, Kurani in the analogous art of math-based escrow transactions, teaches: “providing the buyer with access to the escrow account to confirm authenticity of the item for sale”. (See “The agreement is for an escrow transaction in which the financial institution 108 agrees to hold and verify the MBC from the buyer 102 until (1) the asset's ownership and digital title are verified, and (2) any other terms of the escrow agreement are satisfied” (Para. 0028 ), “The financial institution computing system 110 sends a first notification to the buyer computing device associated with the buyer 102 indicating that it has received the amount of MBC” (Para. 0030), “The ownership confirmation message includes an identification of the asset, a confirmation that the seller 104 owns the asset, and a transaction identifier” (Para. 0033))
It would have been obvious to one of ordinary skill in the art before the effective filing date to combine the escrow inspection period of Matsuda with the technique of Kurani, to allow for the buyers to confirm the authenticity or acceptability of the item for sale before the escrowed funds are released. Therefore, the incentives of increasing transparency and reducing disputes provided a reason to make an adaptation, and the invention resulted from application of the prior knowledge in a predictable manner.
As per Claim 23, Matsuda teaches:
The non-transitory computer-readable medium of claim 22 wherein the instructions further cause the processor to reject the sale from the seller to the buyer when the bank or credit account matching the bank or credit account number for the seller or the bank or credit account matching the bank or credit account number for the buyer has been a party to prior fraudulent activity. (“Risk techniques known in the art may be used to assess a risk variable to each transaction based on an analysis of these variables”, Col. 13, 33-34; “In the event that a particular registration appears to carry a high probability of fraud, the registration should be aborted”, Col. 13, ln. 35-37; “or example, neural network or rule based fraud analysis and detection techniques may be used to analyze the account and to predict or detect fraudulent or risky activity.”, Col. 8, ln. 59-62).
As per Claim 24, Matsuda teaches:
The non-transitory computer-readable medium of claim 22 wherein the instructions further cause the processor to: receive the personally identifiable information of the seller or the bank or credit account number for the seller from the first contactless card; and receive the personally identifiable information of the buyer and the bank or credit account number for the buyer from the second contactless card. (“At this step, the participant is asked to provide detailed account information such as: cardholder name; address; e-mail address; telephone number; payment card account number”, Col. 7, ln. 55-58; “Account ID 402 identifies a particular participant, by including data describing the participants card number 404, it's expiration data 406, cardholder information 408”, Col. 14, ln. 53-55; “This information will be obtained when a participant registers (either through the process of FIG. 3 or the process of FIG. 4).”, Col. 14, ln. 56-57).
As per Claim 25, Matsuda teaches:
The non-transitory computer-readable medium of claim 22 wherein the instructions further cause the processor to: use the first encrypted data to retrieve the personally identifiable information of the seller or the bank or credit account number for the seller from a banking or credit authorization system; and use the second encrypted data to retrieve the personally identifiable information of the buyer or the bank or credit account number for the buyer from the banking or credit authorization system. (“An account check is any check or verification process performed to verify the authenticity and validity of the account information provided in step 260”, Col. 8, ln. 9-12; “the generation of a balance inquiry message or other authorization check of the account information through financial network 220.”, Col. 8, ln. 13-14; “For checking, savings, or accounts other than credit card accounts, the financial institution either returns the account ledger balance or the account available balance.”, Col. 8, ln. 19-22),
As per Claim 26, Matsuda teaches:
The non-transitory computer-readable medium of claim 22 wherein the instructions further cause the processor to: identify a first customer account associated with the first contactless card to authenticate the first contactless card; decrypt first protected data in the first encrypted data; compare the first protected data to first stored record data associated with the first customer account; authenticate the first contactless card based on a match between the first protected data and the first stored record data; identify a second customer account associated with the second contactless card to authenticate the second contactless card; decrypt second protected data in the second encrypted data; compare the second protected data to second stored record data associated with the second customer account; and authenticate the second contactless card based on a match between the second protected data and the second stored record data. (“Account ID 402 identifies a particular participant, by including data describing the participants card number 404, it's expiration data 406, cardholder information 408”, Col. 14, ln. 53-55; “techniques may be used to authenticate the identity of the participant”, Col. 7, ln 66; “the participant may be identified using a public key certificate or other techniques known in the art.”, Col. 7, ln. 67- Col. 8. Ln. 1).
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.
The following prior art made of record and not relied upon is considered pertinent to applicant's disclosure: US20090112767A1 (Hammad), discussing “Escrow module 134 is a module that may be present in a payment processing network 130. One purpose of the escrow module is to hold a consumer's 110 funds received from an issuer 150 in escrow until a supplier 140 completes their obligations of payment transaction. In one embodiment, a consumer 110 can notify a payment processing network 130 that the consumer 110 has received delivery of the items purchased from the supplier 140. After a payment processing network 130 receives this notification, the payment processing organization can use the escrow module 134 to release the stored funds to the supplier 140. In one embodiment, the payment processing organization releases the funds to the supplier 140 by crediting the funds to an account of the supplier 140. The escrow module 134 may be run on a computer or a server computer. The escrow module 134 may have access to a database to store information. The escrow module 134 may be able to communicate with a VASE 131.” (Para. 0034)
Any inquiry concerning this communication or earlier communications from the examiner should be directed to Justin A. Jimenez whose telephone number is (571) 270-3080. The examiner can normally be reached on 8:30 AM - 5:00 PM.
If attempts to reach the examiner by telephone are unsuccessful, the examiner’s supervisor, John W. Hayes can be reached on 571-272-6708. The fax phone number for the organization where this application or proceeding is assigned is 571-273-8300.
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/Justin Jimenez/
Patent Examiner, Art Unit 3697
/JOHN W HAYES/Supervisory Patent Examiner, Art Unit 3697