CTFR 18/676,054 CTFR 93844 DETAILED ACTION Acknowledgements The amendment filed on 04/10/2026 is acknowledged. Claims 1-7 and 9-17 are pending. Claims 1-7 and 9-17 have been examined. Notice of Pre-AIA or AIA Status 07-03-aia AIA 15-10-aia The present application, filed on or after March 16, 2013, is being examined under the first inventor to file provisions of the AIA. Response to Amendment/Arguments Claims 1-2, 5, 9 and 11-12 are amended. Regarding applicant’s arguments on Claim Rejections - 35 U.S.C. §101 , the arguments have been fully considered but they are not persuasive. It is the applicant’s position that “claim 1 does not recite a method of organizing human activity and is not directed to an abstract idea” because “the claimed invention is directed to a blockchain-based system for implementing loyalty points as digital currency, where loyalty point transfers and deductions are recorded as blockchain transactions and stored within a distributed ledger.” The examiner respectfully disagrees. The claim(s) recite(s) processing loyalty points. Specifically, the claims recite “ storing , in a [blockchain node] of a [blockchain network], a [blockchain] comprised of a plurality of blocks, where each block includes one or more blockchain data entries; receiving , by a receiver of the [blockchain node], first transaction data for a first transaction between a first [user] and a [merchant system], the first transaction data including at least a first recipient address associated with a first [blockchain wallet], a first transaction amount, and a positive loyalty point amount that, if unused, will expire after a predetermined period of time has elapsed since receiving the transaction data for the first transaction; processing , by a processor of the [blockchain node], the received first transaction data for the first transaction to add a first new block to the [blockchain] that includes at least a first blockchain data entry corresponding to the first transaction that includes at least the first recipient address and the positive loyalty point amount; after the predetermined period of time has elapsed and the positive loyalty point amount has expired receiving , by the receiver of the [blockchain node] after a predetermined period of time, second transaction data for a second transaction, the second transaction data including at least a second recipient address associated with the [blockchain wallet], a second transaction amount and a negative number of loyalty points; and processing , by the processor of the blockchain node, the received second transaction data for the second transaction to add a second new block to the [blockchain] that includes at least a second blockchain data entry corresponding to the second transaction that includes at least the second recipient address and the negative number of loyalty points, said processing results in a transfer of the negative number of loyalty points to the [blockchain wallet] associated with the second recipient address.”, which is “commercial or legal interactions” within the “certain methods of organizing human activity” grouping of abstract ideas in prong one of step 2A of the Alice/Mayo test (See MPEP 2106) because the claims involve a series of steps for processing loyalty points. Accordingly, the claims recite an abstract idea. This judicial exception is not integrated into a practical application because, when analyzed under prong two of step 2A of the Alice/Mayo test (See MPEP 2106), the additional element(s) of the claim(s) such as the use of blockchain node, blockchain network, blockchain wallet, merchant system, memory and processor merely use(s) a computer as a tool to perform an abstract idea. The processors and memories are recited at a high-level of generality (i.e., as a generic processor performing a generic computer function of processing loyalty points based on transaction data) such that it amounts no more than mere instructions to apply the exception using a generic computer components. Accordingly, the additional elements do not impose any meaningful limits on practicing the abstract idea, and the claims are directed to an abstract idea. The claim is directed to processing and managing loyalty points. Processing and managing loyalty points is a “commercial or legal interactions” within the “certain methods of organizing human activity” grouping of abstract ideas in prong one of step 2A of the Alice/Mayo test (See MPEP 2106). Accordingly, the claims recite an abstract idea. It is also the Applicant’s position that “The Office's conclusion that the claims are directed to "commercial or legal interactions" improperly focuses on the context of use (i.e., user and merchant transactions) while ignoring the claimed invention's focus on how transaction data is structured, processed, and recorded within a blockchain ledger.” The examiner respectfully disagrees. Every element of the claim is considered and analyzed. “blockchain node, blockchain network, blockchain wallet, merchant system, memory and processor” are considered additional elements. See the analysis above for detail. Applicant argues that “independent claim 1 integrates any alleged abstract idea into a practical application by reciting a specific blockchain-based mechanism for managing digital loyalty currency, including time-dependent transaction processing and negative-value blockchain updates.” The examiner respectfully disagrees. The claim applies the additional elements such as blockchain in performing a business process of managing loyalty points. However, it does not improve the functioning of a computer. Nor does it effect an improvement in any other technology or technical field such as blockchain. Accordingly, the additional elements do not impose any meaningful limits on practicing the abstract idea. This judicial exception is not integrated into a practical application Regarding applicant’s arguments on Claim Rejections - 35 U.S.C. §102 , the amendment overcomes the rejection. The rejection has been withdrawn. Search has identified new prior art that teaches the amendment. Therefore, a 103 rejection has been issued in place of the 102 rejection. Regarding applicant’s arguments on Claim Rejections - 35 U.S.C. §103 , the arguments are moot in light of the new ground rejection. Claim Rejections - 35 USC §101 07-04-01 AIA 07-04 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 1-7 and 9-17 are rejected under 35 U.S.C. 101 because the claimed invention is directed to an abstract idea without significantly more. Analysis In the instant case, claims 1-7 and 9-10 are directed to a method, claims 11-17 are directed to a system. Therefore, these claims fall within the four statutory categories of invention. The claim(s) recite(s) processing loyalty points. Specifically, the claims recite “ storing , in a [blockchain node] of a [blockchain network], a [blockchain] comprised of a plurality of blocks, where each block includes one or more blockchain data entries; receiving , by a receiver of the [blockchain node], first transaction data for a first transaction between a first [user] and a [merchant system], the first transaction data including at least a first recipient address associated with a first [blockchain wallet], a first transaction amount, and a positive loyalty point amount that, if unused, will expire after a predetermined period of time has elapsed since receiving the transaction data for the first transaction; processing , by a processor of the [blockchain node], the received first transaction data for the first transaction to add a first new block to the [blockchain] that includes at least a first blockchain data entry corresponding to the first transaction that includes at least the first recipient address and the positive loyalty point amount; after the predetermined period of time has elapsed and the positive loyalty point amount has expired receiving , by the receiver of the [blockchain node] after a predetermined period of time, second transaction data for a second transaction, the second transaction data including at least a second recipient address associated with the [blockchain wallet], a second transaction amount and a negative number of loyalty points; and processing , by the processor of the blockchain node, the received second transaction data for the second transaction to add a second new block to the [blockchain] that includes at least a second blockchain data entry corresponding to the second transaction that includes at least the second recipient address and the negative number of loyalty points, said processing results in a transfer of the negative number of loyalty points to the [blockchain wallet] associated with the second recipient address.”, which is “commercial or legal interactions” within the “certain methods of organizing human activity” grouping of abstract ideas in prong one of step 2A of the Alice/Mayo test (See MPEP 2106) because the claims involve a series of steps for processing loyalty points. Accordingly, the claims recite an abstract idea. This judicial exception is not integrated into a practical application because, when analyzed under prong two of step 2A of the Alice/Mayo test (See MPEP 2106), the additional element(s) of the claim(s) such as the use of blockchain node, blockchain network, blockchain wallet, merchant system, memory and processor merely use(s) a computer as a tool to perform an abstract idea. The processors and memories are recited at a high-level of generality (i.e., as a generic processor performing a generic computer function of processing loyalty points based on transaction data) such that it amounts no more than mere instructions to apply the exception using a generic computer components. Accordingly, the additional elements do not impose any meaningful limits on practicing the abstract idea, and the claims are directed to an abstract idea. The claims do not include additional elements that are sufficient to amount to significantly more than the judicial exception. As discussed above with respect to integration of the abstract idea into a practical application, the additional element of using blockchain node, blockchain network, blockchain wallet, merchant system, memory and processor to process loyalty points steps amounts to no more than mere instructions to apply the exception using a generic computer components. Mere instructions to apply an exception using a generic computer components cannot provide an inventive concept. The claim is not patent eligible. Dependent claims 2 and 12 describe negative loyalty point. Dependent claims 5 and 15 describe processing server. These claims further recite the abstract idea of certain methods of organizing human activity. This judicial exception is not integrated into a practical application because the additional element(s) of the claim(s) such as the use of blockchain node, blockchain network, blockchain wallet, merchant system, memory and processor merely use(s) a computer as a tool to perform an abstract idea. The claims do not include additional elements that are sufficient to amount to significantly more than the judicial exception. The claims are not patent eligible. Dependent claims 3 and 14 describe block of blockchain. Dependent claims 4, 9 and 13 describe loyalty point calculation. Dependent claims 6 and 16 describe transaction data. Dependent claims 7 and 17 describe smart contract. Dependent claim 9 describe negative loyalty point. These claims further recite the abstract idea of certain methods of organizing human activity. This judicial exception is not integrated into a practical application because the additional element(s) of the claim(s) such as the use of blockchain node, blockchain network, blockchain wallet, smart contract, merchant system, memory and processor merely use(s) a computer as a tool to perform an abstract idea. The claims do not include additional elements that are sufficient to amount to significantly more than the judicial exception. The claims are not patent eligible. Dependent claim 10 describe a coin exchange platform. These claims further recite the abstract idea of certain methods of organizing human activity. This judicial exception is not integrated into a practical application because the additional element(s) of the claim(s) such as the use of blockchain node, blockchain network, blockchain wallet, coin exchange platform, merchant system, memory and processor merely use(s) a computer as a tool to perform an abstract idea. The claims do not include additional elements that are sufficient to amount to significantly more than the judicial exception. The claims are not patent eligible. Viewed as a whole, the combination of elements recited in the claims simply recite the concept of processing loyalty points. The claims do not, for example, purport to improve the functioning of the computer itself. Nor do they effect an improvement in any other technology or technical field. The use of a blockchain node, blockchain network, blockchain wallet, smart contract, coin exchange platform, merchant system, memory and processor as tools to implement the abstract idea does not render the claim patent eligible because it does not provide meaningful limitations beyond generally linking the use of an abstract idea to a particular technological environment and requires no more than a computer performing functions that correspond to acts required to carry out the abstract idea. Claim Rejections - 35 USC § 103 07-20-aia AIA 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. 07-21-aia AIA Claim s 1-7, 9 and 11-17 are rejected under 35 U.S.C. 103 as being unpatentable over US Application Publication US20240037593A1 (“Navon et al.”) in view of US Application Publication US20040249710A1 (“Smith et al.”) . Regarding claims 1 and 11, Navon et al. discloses: storing, in a blockchain node of a blockchain network, a blockchain comprised of a plurality of blocks, where each block includes one or more blockchain data entries; (Fig. 3; ¶0002, ¶0042) receiving, by a receiver of the blockchain node, first transaction data for a first transaction between a first user and a merchant system, (¶0053) the first transaction data including at least a first recipient address associated with a first blockchain wallet, a first transaction amount, and a positive loyalty point amount (Fig.4 items 460, 470 and 475; ¶0022, ¶0032, ¶0048, ¶0109 and ¶0151) processing, by a processor of the blockchain node, the received first transaction data for the first transaction to add a first new block to the blockchain that includes at least a first blockchain data entry corresponding to the first transaction that includes at least the first recipient address and the positive loyalty point amount; (Fig.4 items 460, 470 and 475; ¶0032, ¶¶0053-55, ¶0109 and ¶0151) Navon et al. does not explicitly disclose: if unused, will expire after a predetermined period of time has elapsed since receiving the transaction data for the first transaction; after the predetermined period of time has elapsed and the positive loyalty point amount has expired receiving, by the receiver of the blockchain node after a predetermined period of time, second transaction data for a second transaction, the second transaction data including at least a second recipient address associated with the blockchain wallet, a second transaction amount and a negative number of loyalty points; and processing, by the processor of the blockchain node, the received second transaction data for the second transaction to add a second new block to the blockchain that includes at least a second blockchain data entry corresponding to the second transaction that includes at least the second recipient address and the negative number of loyalty points, said processing results in a transfer of the negative number of loyalty points to the blockchain wallet associated with the second recipient address. However, Smith et al. discloses: if unused, will expire after a predetermined period of time has elapsed since receiving the transaction data for the first transaction; (¶0073 and ¶¶102-103) after the predetermined period of time has elapsed and the positive loyalty point amount has expired receiving, by the receiver of the blockchain node after a predetermined period of time, second transaction data for a second transaction, the second transaction data including at least a second recipient address associated with the blockchain wallet, a second transaction amount and a negative number of loyalty points; and (Fig. 7 steps 728, 730 and 734; ¶0106) processing, by the processor of the blockchain node, the received second transaction data for the second transaction to add a second new block to the blockchain that includes at least a second blockchain data entry corresponding to the second transaction that includes at least the second recipient address and the negative number of loyalty points, said processing results in a transfer of the negative number of loyalty points to the blockchain wallet associated with the second recipient address. (Fig. 7 steps 728, 730, 734 and 736; ¶0106) Therefore, it would have been obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to modify the On-Chain Loyalty Program Management of Navon et al. by including deducting expired points from user account in accordance with the teaching of Smith et al.. This modification provides better bookkeeping. It’s easier for users to track their points accurately. Regarding claims 2 and 12, Navon et al. in view of Smith et al. discloses all limitations as described above. Navon et al. further discloses: wherein the negative number of loyalty points is equivalent to the positive loyalty point amount subtracted by a spending point amount for any subsequent transactions involving the blockchain wallet. (¶0131 and ¶0151) Regarding claims 3 and 14, Navon et al. in view of Smith et al. discloses all limitations as described above. Navon et al. further discloses: wherein a block of the plurality of blocks comprising the blockchain includes a smart contract. (Fig. 6B step 676; ¶0091, ¶0095, ¶0118 and ¶0125) Regarding claims 4 and 13, Navon et al. in view of Smith et al. discloses all limitations as described above. Navon et al. further discloses: calculating, by a processing device of a processing server, via execution of a smart contract, the positive loyalty point amount based on the first transaction amount, a merchant identifier associated with the first merchant system and a transaction history associated with the first user. (Fig. 11, ¶0023, ¶0108, ¶0118, ¶0133 and ¶¶0155-156) Regarding claims 5 and 15, Navon et al. in view of Smith et al. discloses all limitations as described above. Navon et al. further discloses: wherein the processing server is a blockchain node in the blockchain network. (¶0033 and ¶0037) Regarding claims 6 and 16, Navon et al. in view of Smith et al. discloses all limitations as described above. Navon et al. further discloses: wherein the first transaction data for the first transaction and the second transaction data for the second transaction are received from the smart contract. (Fig. 11 steps 1106, 1108 and 1110; ¶0023 and ¶¶0092-93) Regarding claims 7 and 17, Navon et al. in view of Smith et al. discloses all limitations as described above. Navon et al. further discloses: wherein the smart contract is configured to automatically self-execute after the predetermined period of time. (¶0092) Regarding claim 9, Navon et al. in view of Smith et al. discloses all limitations as described above. Smith et al. further discloses: calculating, by a processing device of a processing server, via execution of a smart contract, the negative number of loyalty points based on at least the second transaction amount and the merchant identifier included in the second transaction data. (Fig. 7 steps 728, 730 and 734; ¶0106) Therefore, it would have been obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to modify the On-Chain Loyalty Program Management of Navon et al. by including calculation of negative number of loyalty points in accordance with the teaching of Smith et al.. This modification provides better bookkeeping. It’s easier for users to track their points accurately . 07-21-aia AIA Claim 10 are rejected under 35 U.S.C. 103 as being unpatentable over US Application Publication US20240037593a1 (“Navon et al.”) in view of US Application Publication US20040249710A1 (“Smith et al.”), and in further view of US20190325473A1 (“Swamidurai”) . Regarding claim 10, Navon et al. in view of Smith et al. discloses all limitations as described above. Navon et al. and Smith et al. do not explicitly disclose: providing a coin exchange platform enabling transfer, trade, purchase and/or sell of loyalty coins based on supply and demand. However, Swamidurai discloses: providing a coin exchange platform enabling transfer, trade, purchase and/or sell of loyalty coins based on supply and demand. (Fig. 1 item 130; abs) Therefore, it would have been obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to modify the combined system of Navon et al. and Smith et al. by including a coin exchange platform in accordance with the teaching of Swamidurai. This modification enables the combined system to provide coin exchange service. This exchange service allows users to trade and exchange loyalty reward token. Hence, it allows users to maximize the benefit of the loyalty program . Conclusion 07-96 The following prior art made of record and not relied upon is considered pertinent to applicant's disclosure. US201/0140408A1 (“Wuehler”) discloses a system and method that enables a transparent self-managing rewards program using a smart contract block chain distributed network by receiving a transaction record associated with a smart contract, wherein the transaction record comprises input data indicating one or more actions taken by a user; accessing a distributed ledger stored in the memory device, wherein the distributed ledger is updated based on communications from a block chain distributed network; using smart contract logic associated with the smart contract, determining whether the indicated one or more actions meets a condition of the smart contract, thereby validating the transaction record, and in some embodiments, in response to determining the one or more actions meets the condition of the smart contract, thereby validating the transaction record, initiating rewarding the user with rewards corresponding to the condition. US20190108542A1 (“Durvasula et al.”) discloses A blockchain-based loyalty point system may include a blockchain API host that receives a request to transfer an amount of loyalty points from a first customer account to a second customer account. The system may validate the request by performing a cryptographic operation on the request using a public key associated with the first customer account. The system may also propagate a proposal to consensus participants for writing to a blockchain, wherein the proposal comprises the first customer account, the second customer account, and the amount of loyalty points. The system may also receive an exchange request from a loyalty wallet associated with the second customer account, validate the exchange request by performing the cryptographic operation on the exchange request using a public key, and propagate an exchange proposal to the consensus participants for writing to the blockchain. 07-39 AIA 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 extension fee pursuant to 37 CFR 1.136(a) will be calculated from the mailing date of the advisory action. In no event, however, will the statutory period for reply expire later than SIX MONTHS from the mailing date of this final action. Any inquiry concerning this communication or earlier communications from the examiner should be directed to YINGYING ZHOU whose telephone number is (571)272-5308. The examiner can normally be reached Mon - Fri 9:00am - 5:00pm ET. Examiner interviews are available via telephone, in-person, and video conferencing using a USPTO supplied web-based collaboration tool. To schedule an interview, applicant is encouraged to use the USPTO Automated Interview Request (AIR) at http://www.uspto.gov/interviewpractice. If attempts to reach the examiner by telephone are unsuccessful, the examiner’s supervisor, 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. Information regarding the status of published or unpublished applications may be obtained from Patent Center. Unpublished application information in Patent Center is available to registered users. To file and manage patent submissions in Patent Center, visit: https://patentcenter.uspto.gov. Visit https://www.uspto.gov/patents/apply/patent-center for more information about Patent Center and https://www.uspto.gov/patents/docx for information about filing in DOCX format. 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If you would like assistance from a USPTO Customer Service Representative, call 800-786-9199 (IN USA OR CANADA) or 571-272-1000. /YINGYING ZHOU/Primary Examiner, Art Unit 3697 Application/Control Number: 18/676,054 Page 2 Art Unit: 3697 Application/Control Number: 18/676,054 Page 3 Art Unit: 3697 Application/Control Number: 18/676,054 Page 4 Art Unit: 3697 Application/Control Number: 18/676,054 Page 5 Art Unit: 3697 Application/Control Number: 18/676,054 Page 6 Art Unit: 3697 Application/Control Number: 18/676,054 Page 7 Art Unit: 3697 Application/Control Number: 18/676,054 Page 8 Art Unit: 3697 Application/Control Number: 18/676,054 Page 9 Art Unit: 3697 Application/Control Number: 18/676,054 Page 10 Art Unit: 3697 Application/Control Number: 18/676,054 Page 11 Art Unit: 3697 Application/Control Number: 18/676,054 Page 12 Art Unit: 3697 Application/Control Number: 18/676,054 Page 13 Art Unit: 3697
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