DETAILED ACTION
1. 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 .
2. Status of Application and Claims
Claims 1-9 are pending.
Claims 1 was amended or newly added in the Applicant’s filing on 1/21/2026.
This office action is being issued in response to the Applicant's filing(s) on 1/21/2026.
3. Continued Examination Under 37 CFR 1.114
A request for continued examination under 37 CFR 1.114, including the fee set forth in 37 CFR 1.17(e), was filed in this application after final rejection. Since this application is eligible for continued examination under 37 CFR 1.114, and the fee set forth in 37 CFR 1.17(e) has been timely paid, the finality of the previous Office action has been withdrawn pursuant to 37 CFR 1.114. Applicant's submission filed on 1/21/2026 has been entered.
4. 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 1-9 are rejected under 35 U.S.C. § 101 because the claimed invention is directed to an abstract idea without significantly more.
STEP 1
The claimed invention falls within one of the four statutory categories of invention (i.e., process, machine, manufacture and composition of matter). See MPEP §2106.03.
STEP 2A – PRONG ONE
The claim(s) recite(s) a method comprising:
in a clearinghouse …
receiving, … , risk factor input data and additional data associated with linear products and non-linear products of one or more portfolios from the one or more data sources;
storing the input data and the additional data … ;
determining a valuation of a portfolio of the one or more portfolios using a single model to simultaneously process the linear products and the non-linear products of the portfolio, the single model configured to scale with a total number of the linear products and the non-linear products of the portfolio and perform the steps of:
determining that the input data includes one or more gaps,
generating synthetic data to fill the one or more gaps, the synthetic data comprising simulated pricing information,
grouping the synthetic data, the input data, and the additional data into one or more buckets based on one or more criteria, such that a number of the one or more buckets is less than a number of the synthetic data, the input data and the additional data,
generating at least one bucket-level metric for the one or more buckets, the at least one bucket-level metric representative of the synthetic data, the input data, and the additional data in the respective one or more buckets;
storing the at least one bucket-level metric … ,
determining a valuation of a portfolio of the one or more portfolios by extrapolating the at least one bucket-level metric for the one or more buckets to portfolio-level metrics,
creating a summary risk report in a standardized format, the summary risk report comprising the risk valuation;
storing the summary report in the standardized format … ;
formatting, based on preferences of a data recipient …, the summary report into a non-standardized format to allow for presentation … [to] … the data recipient, the non-standardized format particular to the data recipient; and
distributing, … , the formatted summary report to the data recipient according to one or more of a predefined time interval and a predetermined condition.
These limitations, as drafted, under its broadest reasonable interpretation, covers a series of steps instructing how to determine the risk of a financial portfolio which is a fundamental economic practice, a sub-category of certain method(s) of organizing human activity, an enumerated grouping of abstract ideas. See MPEP §2106.04(a)(2)(II)(A).
Examiner notes that determining the financial risk of a financial portfolio is mitigation of financial risk and that the mitigation of financial risk is a court-provided example of a fundamental economic practice. See MPEP §2106.04(a)(2)(II)(A), citing Alice Corp. v. CLS Bank, 573 U.S. 208, 218, 110 USPQ2d 1976, 1982 (2014).
Additionally, these limitations, as drafted, under its broadest interpretation, covers a series of steps that can be practically performed in the human mind (e.g., observations, evaluations, judgments and opinions) which are mental process, a second enumerated grouping of abstract ideas. See MPEP §2106.04(a)(2)(III).
Examiner notes that “’collecting information, analyzing it, and displaying certain results of the collection and analysis,’ where the data analysis steps are recited at a high level of generality such that they could practically be performed in the human mind” is a mental process. See MPEP §2106.04(a)(2)(III)(A) citing Electric Power Group v. Alstom, SA. (Fed. Cir. 2016).
Accordingly, the claimed invention recites an abstract idea.
STEP 2A – PRONG TWO
The claimed invention recites additional elements (i.e., computer elements) of a processor (Claim(s) 1, preamble), data interface (Claim(s) 1), random-access memory (RAM) (Claim(s) 1), database(s) (Claim(s) 1), data recipient interface (Claim(s) 1) and a GUI (Claim(s) 1).
The claimed invention does not include additional elements that integrate the judicial exception into a practical application of the exception because the claims do not provide improvements to another technology or technical field; improvements to the functioning of the computer itself; are not applying or using a judicial exception to effect a particular treatment or prophylaxis for a disease or medical condition; are not applying the judicial exception with or by use of a particular machine; are not effecting a transformation or reduction of a particular article to a different state or thing; and are not applying the judicial exception in some other meaningful way beyond generally linking the use of the judicial exception to a particular technological environment. See MPEP §2106.04(d).
The additional elements are recited at a high-level of generality such that it amounts no more than mere instructions to apply the exception using a generic computer component. See MPEP §2106.05(f). Alternately, the additional elements amount to no more than generally linking the exception to a particular technological environment or field of use. See MPEP §2106.05(h). Accordingly, these additional element(s), when considered separately and as an ordered combination, do not integrate the abstract idea into a practical application because it does not impose any meaningful limits on practicing the abstract idea.
Accordingly, the claimed invention is directed to an abstract idea without a practical application.
STEP 2B
Upon reconsideration of the indicia noted under Step 2A in concert with the Step 2B considerations, the additional claim element(s) amounts to (i) adding the words “apply it” (or an equivalent) with the judicial exception, or mere instructions to implement an abstract idea on a computer, (ii) adding insignificant extra-solution activity to the judicial exception, and/or (iii) generally linking the use of judicial exception to a particular technological environment or field of use. See MPEP §2106.07(a)(II). The same analysis applies in Step 2B, i.e., mere instructions to apply an exception using a generic computer component cannot integrate a judicial exception into a practical application at Step 2A or provide an inventive concept in Step 2B. The claim does not provide an inventive concept significantly more than the abstract idea.
Accordingly, these additional elements, when considered separately and as an ordered combination, do not integrate the abstract idea into a practical application because they do not impose any meaningful limits on practicing the abstract idea.
DEPENDENT CLAIMS
Dependent Claim(s) 2-9 recite claim limitations that further define the abstract idea recited in respective independent Claim(s) 1. As such, the dependent claims are also grouped an abstract idea utilizing the same rationale as previously asserted against the independent claims.
No additional computer components other than those found in the respective independent claims is recited, thus it is presumed that the claim is further utilizing the same generically recited computer.
As such, the dependent claims do not include any additional elements that integrate the abstract idea into a practical application of the judicial exception or are sufficient to amount to significantly more than the judicial exception when considered both individually and as an ordered combination.
Accordingly, the dependent claim(s) are also not patent eligible.
Appropriate correction is requested.
5. No Prior Art Rejection
Applicant’s argument regarding the prior art of record is persuasive, and therefore the current art rejection is withdrawn.
6. Response to Arguments
Applicant's arguments filed 1/21/2026 have been fully considered but they are not persuasive.
§101 Rejection
Step 2A Prong One
Applicant argues that the claims are not directed to a judicial exception. See Arguments, pp.6-7.
“[D]irected to” is not the proper standard for analysis under Step 2A Prong One of the §101 Guidelines.
MPEP §2106.04(a) recites:
Examiners should determine whether a claim recites an abstract idea by (1) identifying the specific limitation(s) in the claim under examination that the examiner believes recites an abstract idea, and (2) determining whether the identified limitations(s) fall within at least one of the groupings of abstract ideas listed above. The groupings of abstract ideas, and their relationship to the body of judicial precedent, are further discussed in MPEP § 2106.04(a)(2).
The proper standard under Step 2A Prong One of the §101 Guidelines is whether the claims recite an abstract idea. The claims recite an abstract idea, specifically the claims recite a fundamental economic practice, a sub-category of certain method(s) of organizing human activity, and a mental process. As such, the claimed invention does recite an abstract idea under Step 2A Prong One of the §101 Guidelines.
Applicant argues that the claimed invention does not recite a mental process and, as such, satisfies Step 2A Prong One of the §101 Guidelines. See Arguments, p. 8.
Specifically, Applicant argues:
As noted by Deputy Commissioner Kim, "[t]he mental process grouping is not without limits" and "Examiners are reminded not to expand this grouping in a manner that encompasses claim limitations that cannot practically be performed in the human mind." 2025 Memorandum, p. 2. A person of ordinary skill in the art (POSITA) would readily understand that "input data and additional data associated with linear products and non-linear products of one or more portfolios [received] from the one or more data sources" constitutes a massive amount of data. In this art, systems receive and process tens of millions of transactions and updates per day, and each involves or implicates a plurality of instruments. It is simply not practical for a human mind to process this amount of data -and specifically perform the claimed steps done by the single model in any reasonable amount of time to be able to generate a summary risk report and distribute it to data recipients in any sort of meaningful way. It would be useless for a human to attempt to perform this process with a pen and paper. See Arguments, p. 8.
The Examiner respectfully disagrees.
First, the claimed invention, as written, does not require a claim interpretation that the claimed invention is receiving a “massive amount” of input, and “process[ing] tens of millions of transactions and updates per day”. A human being can perform the claims, as written. A human being can receive input data and additional data (i.e., two data inputs) and process a portfolio.
Second, a mental process can utilize a computer. See MPEP §2106.04(a)(2)(III)(C).
Admittedly, claims that recite limitations “that cannot practically be performed in the human mind” are not mental processes. See MPEP §2106.04(a)(2)(III)(A). For example, a limitation that cannot be practically performed in the human mind is “detecting suspicious activity by using network monitors and analyzing network packets” and “rendering a halftone image of a digital image by comparing, pixel by pixel, the digital image against a blue noise mask, where the method required the manipulation of computer data structures (e.g., the pixels of a digital image and a two-dimensional array known as a mask) and the output of a modified computer data structure.” See MPEP §2106.04(a)(2)(III)(A). The examples provided require a computer. A computer is inherent to the underlying process (e.g., there is no network traffic, data packets or pixels without a computer). This is not the case with the claimed invention.
Claim 1 recites a computer system receiving data, determining the valuation of a portfolio utilizing said data and a model, and generating a report based upon said valuation. Examiner notes that these are processes that have been performed before the advent of computers.
As such, claimed invention recites processes that can practically be performed in the human mind.
Examiner notes that the claimed invention was also identified as reciting a fundamental economic practice, a sub-category of certain method(s) of organizing human activity, but no rebuttal was indicated.
Step 2A Prong Two
Applicant argues that the claimed invention recites a practical application, specifically “an improvement in the functioning of a computer, or an improvement to other technology or technical field,” and, as such, satisfies Step 2A Prong Two of the §101 Guidelines. See Arguments, pp. 7-13.
Specifically, Applicant argues:
Here, when read as whole, the claims are directed to a specific means or method that improves the relevant technology rather than a result or effect that is an abstract idea. More specifically, the claims provide an improvement to how a clearinghouse system functions (i.e., processes data) and an improvement to the technology and technical field of high-volume data processing and analysis. More specifically, the claimed method and arrangement of hardware components that perform the processing steps provide an increased efficiency in processing data over conventional clearinghouse systems. See Arguments, p. 9 – emphasis added.
A person of ordinary skill in the art (POSITA) would readily understand that clearinghouse systems receive and process tens of millions of transactions and updates per day, and each involves or implicates a plurality of instruments. Bottlenecks and delays in processing or transmitting such data (e.g., by having to continually update and maintain models) prevent conventional systems from operating with optimal efficiency, processing speeds and accuracy. Indeed, with the high volume of data and the speed at which this data is susceptible to change, any latency in their processing and/or transmission can negatively impact the operation of the system, as well as cause the data to be out-of-date and/or unusable. Thus, any mechanism that can reduce latency, (i.e., by increasing processing efficiency of the clearinghouse system by performing calculations at a portfolio level rather than on each individual product), certainly constitutes a technical improvement. See Arguments, p. 10 – emphasis added.
Applicant submits that a mechanism that can reduce processing latency of a clearinghouse system (i.e., by eliminating the need for operators to continually update computer models to accommodate differently configured products) constitutes the specific means or method that improves the relevant technology that the Federal Circuit identified in Contour IP Holding rather than simply being directed to a result or effect that itself is the abstract idea. Any conclusion that the claims are "directed to a result or effect that itself is the abstract idea" disregards the disclosed technological means for obtaining a technological result. Contour IP Holding, 113 F.4th at 1380 (internal citations omitted). See Arguments, pp. 10-11 – emphasis added.
The Examiner respectfully disagrees.
As to the indirect improvements to the technology (e.g., increased efficiency in processing data and less ongoing maintenance of multiple models) based upon performance of the claimed invention, any software can be argued to improve a computer. It can always be argued that the software runs the process more efficiently thereby reducing the demands placed upon the computer system.
In the claimed invention, the computer has not been improved. The non-technological process that the software is performing may have been improved but, according to Alice, improving the process without any technological innovation is not statutory. The computer still operates according to its known and standard capabilities. A reduction of load on the computer does not bring about an improvement to the computer, it merely offers resources to other processes that are running on the computer.
Applicant further argues:
At the time of invention, conventional clearinghouses were "designed for financial products, such as equities and futures, that are themselves linear in nature (i.e., the products have a linear profit/loss scale of 1:1)." Specification, [0003]. Because of this, conventional clearinghouse systems were "not well suited for more complex financial products, such as options, volatile commodities (e.g., power), spread contracts, non-linear exotic products or any other financial products having non-linear profit/loss scales." Id. The Specification goes on to explicitly state that "there is a need for a system and method that efficiently and accurately calculates IM for both linear and non-linear products, and that considers diversification and product correlations when determining IM for a portfolio of products." Id. at [0005]. See Arguments, p. 9 – emphasis added.
The Examiner respectfully disagrees.
An improvement to another technology or technical field requires an improvement to another technology (i.e., machinery or equipment developed from the application of scientific knowledge) or a technical field (i.e., a field concerned with applied and industrial sciences).
While conventional clearinghouses may not be “not well-suited” (i.e., not appropriate for the particular purpose of) for processing more complex financial products that does not mean that the lack of suitability is a technological problem (i.e., the lack of suitability is a problem rooted in the underlying computer technology of conventional clearinghouses). Additionally, while the computer technology of a conventional clearinghouse may not be “not well-suited” for processing more complex financial products that does not mean that the computer technology of a conventional clearinghouse is incapable of processing more complex financial products.
While the claimed invention may be more efficient and accurate in calculating the initial margin for both linear and non-linear products that does not mean that there was a technological problem (i.e., a problem rooted in the underlying computer technology of conventional clearinghouses) preventing the performance of said calculations.
Applicant further argues:
Applicant acknowledges that the mere automation of manual processes may not be sufficient to show an improvement in computer-functionality. See MPEP § 2106.05(a)(I).
However, the processes at issue here were not done manually in conventional clearinghouse systems. Rather, they were performed by multiple computer models (i.e., for linear products and for non-linear products) that required "ongoing maintenance" from human operators to accommodate the different product types. The pending claims improve the technology of clearinghouses by using a single model (rather than multiple models) to process both linear products and non-linear products without the need for continual intervention and maintenance, both of which take up time and slow down the clearinghouse system's processing. See Arguments, p. 10 – emphasis added.
The Examiner respectfully disagrees.
MPEP §2106.05(a) recites:
If it is asserted that the invention improves upon conventional functioning of a computer, or upon conventional technology or technological processes, a technical explanation as to how to implement the invention should be present in the specification. That is, the disclosure must provide sufficient details such that one of ordinary skill in the art would recognize the claimed invention as providing an improvement. The specification need not explicitly set forth the improvement, but it must describe the invention such that the improvement would be apparent to one of ordinary skill in the art. Conversely, if the specification explicitly sets forth an improvement but in a conclusory manner (i.e., a bare assertion of an improvement without the detail necessary to be apparent to a person of ordinary skill in the art), the examiner should not determine the claim improves technology. – emphasis added.
However, the specification does not provide any evidence that the claimed invention results in an improvement to the functioning of a computer, an improvement to conventional technology or technological processes, or is addressing a technology-based problem.
Additionally, the specification does not provide any evidence that there is even a technical (i.e., technology-based) problem to be solved. For example, the specification does not provide any evidence that existing technology was incapable of performing the claimed functions (e.g., utilizing a single model) but for the claimed technical solution (e.g., inability of computers to utilize a single model).
Additionally, MPEP §2106.05(f)(1) recites:
Whether the claim recites only the idea of a solution or outcome i.e., the claim fails to recite details of how a solution to a problem is accomplished. The recitation of claim limitations that attempt to cover any solution to an identified problem with no restriction on how the result is accomplished and no description of the mechanism for accomplishing the result, does not integrate a judicial exception into a practical application or provide significantly more because this type of recitation is equivalent to the words “apply it”. See Electric Power Group, LLC v. Alstom, S.A., 830 F.3d 1350, 1356, 119 USPQ2d 1739, 1743-44 (Fed. Cir. 2016); Intellectual Ventures I v. Symantec, 838 F.3d 1307, 1327, 120 USPQ2d 1353, 1366 (Fed. Cir. 2016); Internet Patents Corp. v. Active Network, Inc., 790 F.3d 1343, 1348, 115 USPQ2d 1414, 1417 (Fed. Cir. 2015). In contrast, claiming a particular solution to a problem or a particular way to achieve a desired outcome may integrate the judicial exception into a practical application or provide significantly more. See Electric Power, 830 F.3d at 1356, 119 USPQ2d at 1743. – emphasis added.
Even assuming there was a technical problem, the claims, as written, fail to recite the details of how a technical solution to the technical problem was accomplished.
If there was a technical problem (e.g., existing technology was incapable of performing the claimed functions) then the claims should recite the details of the technical solution (e.g., how existing technology was improved to overcome this inability). For example, if computers were incapable of utilizing a single model, the claims, as written, should recite the details of how computers overcame this technological limitation. However, the claims, as written, provide no such details and merely recite that the claimed functions (i.e., the outcome) are being performed.
The Examiner asserts that the claimed invention is more analogous to Electric Power Group LLC v. Alstom SA (Fed. Cir. 2016) wherein the court stated:
The claims here are unlike the claims in Enfish. There, we relied on the distinction made in Alice between, on one hand, computer-functionality improvements and, on the other, uses of existing computers as tools in aid of processes focused on “abstract ideas” (in Alice, as in so many other § 101 cases, the abstract ideas being the creation and manipulation of legal obligations such as contracts involved in fundamental economic practices). Enfish, 822 F.3d at 1335-36; see Alice, 134 S. Ct. at 2358-59. That distinction, the Supreme Court recognized, has common-sense force even if it may present line-drawing challenges because of the programmable nature of ordinary existing computers. In Enfish, we applied the distinction to reject the § 101 challenge at stage one because the claims at issue focused not on asserted advances in uses to which existing computer capabilities could be put, but on a specific improvement—a particular database technique—in how computers could carry out one of their basic functions of storage and retrieval of data. Enfish, 822 F.3d at 1335-36; see Bascom, 2016 U.S. App. LEXIS 11687, 2016 WL 3514158, at *5; cf. Alice, 134 S. Ct. at 2360 (noting basic storage function of generic computer). The present case is different: the focus of the claims is not on such an improvement in computers as tools, but on certain independently abstract ideas that use computers as tools. see Electric Power Group LLC v. Alstom SA, 119 USPQ2d 1739, 1742 (Fed. Cir. 2016) – emphasis added.
The claimed invention is not an improvement to computer technology or computer functionality. Rather, the claimed invention is applying a computer’s existing capabilities to implement a particular abstract idea. As in Electric Power Group, the focus of the claimed invention is not on an improvement in computers as tools but on improving an abstract idea (i.e., determine the risk of a financial portfolio) that use computers as tools.
Applicant continually asserts that utilization of a singular model that handles both linear financial products and non-linear financial products is an improvement over utilizing multiple models wherein each model handles either linear financial products or non-linear financial products. The Examiner is not disputing the improvement. Examiner is just noting that an improved model, while an improvement to financial analysis and financial modeling, is not necessarily “an improvement in the functioning of a computer, or an improvement to other technology or technical field” under Step 2A Prong Two.
In DDR Holdings, LLC v. Hotels.com, the U.S. Court of Appeals stated:
As an initial matter, it is true that the claims here are similar to the claims in the cases discussed above in the sense that the claims involve both a computer and the Internet. But these claims stand apart because they do not merely recite the performance of some business practice known from the pre-Internet world along with the requirement to perform it on the Internet. Instead, the claimed solution is necessarily rooted in computer technology in order to overcome a problem specifically arising in the realm of computer networks. See DDR Holdings, LLC v. Hotels.com, 113 USPQ2d 1097, 1106 (Fed. Cir. 2014) – emphasis added.
In the instant case, the problem that the claimed invention is designed to overcome, combining multiple models pertaining to multiple financial products into a singular model pertaining to multiple financial products, is not a problem specifically arising from the realm of computers. This problem is a standard business problem that exists outside the realm of computers and existed before the age of computers.
MPEP §2106.04(d) recites:
The courts have also identified limitations that did not integrate a judicial exception into a practical application:
Merely reciting the words “apply it” (or an equivalent) with the judicial exception, or merely including instructions to implement an abstract idea on a computer, or merely using a computer as a tool to perform an abstract idea, as discussed in MPEP § 2106.05(f); [and]
Generally linking the use of a judicial exception to a particular technological environment or field of use, as discussed in MPEP § 2106.05(h).
Examiner asserts that the additional elements amount to merely (1) including instructions to implement an abstract idea on a computer, or merely using a computer as a tool to perform an abstract idea, or alternatively, (2) merely links the use of a judicial exception to a particular technological environment or field of use.
Step 2B
Applicant argues that the additional elements amount to “significantly more” than the abstract idea as the additional elements are not “well-understood, routine, conventional activity previously known to the industry” and, as such, satisfies Step 2B of the §101 Guidelines. See Arguments, pp. 13-15.
The Examiner respectfully disagrees.
To qualify as “significantly more” than the abstract idea, computer implementation must involve more than performance of “well-understood, routine, [and] conventional activities” previously known in the computer industry. However, the functions performed by the computer system in the claimed invention are well-understood, routine and conventional computer functions.
As an illustrative example, Claim 1 recites:
receiving, by a data interface comprising circuitry specifically configured to communicate with one or more data sources, input data and additional data associated with linear products and non-linear products of one or more portfolios from the one or more data sources;
Receiving data (i.e., input data) over a network is a court-established well-understood, routine and conventional computerized activity. See MPEP §2106.05(d)(II). Additionally, mere data gathering is insignificant extra-solution activity. See MPEP §2106.05(g).
storing the input data and the additional data in a temporary random-access memory (RAM);
Storing information (i.e., input data) in memory (i.e., RAM) is a court-established well-understood, routine and conventional computerized activity. See MPEP §2106.05(d)(II). Additionally, selecting a particular data source or type of data (i.e., input data) to be manipulated is insignificant extra-solution activity. See MPEP §2106.05(g).
determining a valuation of a portfolio of the one or more portfolios using a single model to simultaneously process the linear products and the non-linear products of the portfolio, the single model configured to scale with a total number of the linear products and the non-linear products of the portfolio and perform the steps of
determining that the input data includes one or more gaps;
generating synthetic data to fill the one or more gaps, the synthetic data comprising simulated pricing information;
Performing repetitive calculations (i.e., determining a valuation, determining gaps and generating synthetic data) is a court-established well-understood, routine and conventional computerized activity. See MPEP §2106.05(d)(II).
grouping the synthetic data, input data, and the additional data into one or more buckets based on one or more criteria, such that a number of the one or more buckets is less than a number of the synthetic data, the input data, and the additional data;
Electronic recordkeeping (i.e., grouping data) is a court-established well-understood, routine and conventional computerized activity. See MPEP §2106.05(d)(II).
generating at least one bucket-level metric for the one or more buckets, the at least one bucket-level metric representative of the synthetic data, the input data, and the additional data in the respective one or more buckets;
Performing repetitive calculations (i.e., generating a bucket-level metric) is a court-established well-understood, routine and conventional computerized activity. See MPEP §2106.05(d)(II).
storing the at least one bucket-level metric in one or more databases;
Storing information (i.e., bucket-level metric) in memory (i.e., database) is a court-established well-understood, routine and conventional computerized activity. See MPEP §2106.05(d)(II). Additionally, selecting a particular data source or type of data (i.e., bucket-level metrics) to be manipulated is insignificant extra-solution activity. See MPEP §2106.05(g).
determining a valuation of a portfolio of the one or more portfolios by extrapolating the at least one bucket-level metric for the one or more buckets to a one or more portfolio-level metrics;
Performing repetitive calculations (i.e., determining a valuation) is a court-established well-understood, routine and conventional computerized activity. See MPEP §2106.05(d)(II).
creating a summary risk report in a standardized format, the summary report comprising the valuation;
Electronic recordkeeping (i.e., creating a summary report) is a court-established well-understood, routine and conventional computerized activity. See MPEP §2106.05(d)(II).
storing the summary report in the standardized format in the one or more databases;
Storing information (i.e., summary report) in memory (database) is a court-established well-understood, routine and conventional computerized activity. See MPEP §2106.05(d)(II). Additionally, selecting a particular data source or type of data (i.e., summary report) to be manipulated is insignificant extra-solution activity. See MPEP §2106.05(g).
formatting, based on preferences of a data recipient stored in the one or more databases, the summary report into a non-standardized format to allow for presentation on a graphical user interface (GUI) of the data recipient, the non-standardized format particular to the data recipient; and
Examiner also notes that formatting a report based upon user preferences is also a well-understood, routine and conventional computer function.
As illustrative examples of said function, Examiner cites to:
Towers (US Patent 4,334,270) – col. 57, lines 29-35;
Long (US Patent 5,117,354) – col. 10, lines 38-63;
Baird (US Patent 5,220,500) – col. 18, lines 34-37;
Kennedy (US Patent 5,832,532) – col. 1, lines 47-58; and
Erwin (US Patent 6,249,770) - col. 13, lines 21-47.
distributing, via a data recipient interface, the formatted summary risk report to the data recipient according to one or more of a predefined time interval and a predetermined condition.
Transmitting data (i.e., summary report) over a network is a court-established well-understood, routine and conventional computerized activity. See MPEP §2106.05(d)(II).
The claimed invention may be applying those computer functions in a novel and/or non-obvious way to enable the abstract idea but the computer functions, the underlying computer functions, are well-understood, routine and conventional computer functions. Therefore, the additional claim limitations do not amount to “significantly more” than the abstract idea.
Applicant further argues:
As discussed above and in the Specification, typical clearinghouse systems in this art do not perform calculations of linear products and non-liner products using a single model. As such, Applicant's claims indeed include unconventional steps. The claimed method is an alternative (unconventional) and more efficient way of determining an initial margin of a portfolio including both linear products and non-linear products that reduces the hardware and processing burdens on computer systems of the art. See Arguments, p. 14 – emphasis original.
The Examiner respectfully disagrees.
Examiner notes that the disputed functions are well-understood, routine and conventional in the art of computers. Perhaps Applicant is arguing that the functions are not well-understood, routine and conventional in a narrower subset of computers, such as clearinghouse computer systems.
However, that would mean that claimed invention is merely applying the standard and conventional capabilities of existing computer technology to a particular field of use (i.e., clearinghouses) which undercuts the Applicant’s previous argument (under Step 2A Prong Two) that the claimed invention is improving a computer, computer functionality or other technology.
7. Conclusion
Any inquiry concerning this communication or earlier communications from the examiner should be directed to JASON M. BORLINGHAUS whose telephone number is (571)272-6924. The examiner can normally be reached M-F 9-5.
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If attempts to reach the examiner by telephone are unsuccessful, the examiner’s supervisor, RYAN D. DONLON can be reached on (571)270-3602. The fax phone number for the organization where this application or proceeding is assigned is 571-273-8300.
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/Jason M. Borlinghaus/Primary Examiner, Art Unit 3692 February 21, 2026