DETAILED ACTION
Acknowledgements
This Office Action is in response to Applicant’s correspondence filed on 6/13/24.
The Examiner notes that citations to United States Patent Application Publication paragraphs are formatted as [####], #### representing the paragraph number.
In the event the determination of the status of the application as subject to AIA 35 U.S.C. 102 and 103 (or as subject to pre-AIA 35 U.S.C. 102 and 103) is incorrect, any correction of the statutory basis for the rejection will not be considered a new ground of rejection if the prior art relied upon, and the rationale supporting the rejection, would be the same under either status.
Status of Claims
Claims 1-20 are currently pending.
Claims 19-20 are objected to.
Claims 1-20 are rejected as set forth below.
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 .
Claim Objections
Claims 19-20 are objected to because of the following informalities: they depend on claim 15, which is a different statutory class, i.e. a distributed platform and not a medium. Appropriate correction is required.
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 1-3, 5-10, 12-20 is/are rejected under 35 U.S.C. 103 as being unpatentable over United States Patent Application Publication No. 20230073883 to Tierney in view of United States Patent Application Publication No. 20210243272 to Diesch.
As per claims 1, 9, 17, Tierney teaches:
A method for simulating performance of external real assets with digital token assets, the method comprising: receiving, by a simulation protocol implemented on a decentralized cryptographic ledger that defines a set of token functions for the digital token assets, an exchange request for either one of: (i) transmitting an amount of a particular digital token from a token pool to a ledger participant according to the simulation protocol, or (ii) receiving the amount of the particular digital token from the ledger participant into the token pool according to the simulation protocol; ([0026]-[0030], “FIG. 1 depicts a system 100 for a multi-blockchain token rebalancer, according to certain embodiments. System 100 includes a rebalancer 102 for maintaining a distributed balance of a token, such as a cryptocurrency token, across multiple selected cryptocurrency networks, such as network.sub.1 104 through networker 106 according to a target ratio 108. Target ratio 108 in this context is the desired quantitative relationship between the amount of the token on each selected network (e.g., network selected for inclusion in system 100), relative to a defined reserve amount of the token (e.g., based on an asset value peg). For example, a token may be pegged to the value of one US dollar, and thus the total number of tokens may not exceed the reserve amount of US Dollars held to back the token; cryptocurrency tokens such as USDC, TETHER (USDT), TRUEUSD (TUSD), BINANCE USD (BUSD), and GEMINIUSD (GUSD) are examples. In a further example, the token may be pegged to the value of a defined amount of a commodity; cryptocurrency tokens such as PAX GOLD (PAXG) is pegged to the US Dollar value of an ounce of gold, and DIGITAL OIL (OIL) is pegged to the price of 1 barrel of oil.”; [0051], “If the token amount for the network.sub.1 104 is out of balance, the rebalancer issues a rebalancing transaction to network.sub.1 104 TIF.sub.1 120, to execute the rebalance transaction—a mint function.sub.1 124 or burn function.sub.1 126 depending on how the token amount for network.sub.1 104 is out of balance, at arrow 312.”)
measuring, by the simulation protocol, a representative unit value of the external real assets that is associated with the particular digital token; ([0020], “According to certain embodiments, the token may be a stablecoin that is pegged to the value of one or more assets, such as legacy currencies, commodities, or whose value is algorithmically determined.”)
determining a ledger value for the particular digital token that simulates the representative unit value by a variable approximation factor; ([0036], “Rebalancer 102 further includes a float variable.sub.1 110 through float variable.sub.N 112, that each corresponds with a network.sub.1 104 through network.sub.N 106. The float variable serves to modify the target ratio 108 for each respective network within a range of the target ratio value for a given network. By providing a float variable, the total amount of the token in a given network may fluctuate about the target ratio by the float variable value for that network before triggering a rebalancing action. According to certain embodiments, the float variable may be represented as a percentage (e.g., 0.03 or 3%) similar to the target ratio 108 values, in absolute token amounts (e.g., 300,000 tokens), or a combination of these or other expressions that provides a value for the token amount on a network to fluctuate about the target ratio value for the network.”)
processing the exchange request on the decentralized cryptographic ledger using the ledger value for the particular digital token; and in response to a new ledger value resulting from the token pool including a new proportion of the particular digital token subsequent to the exchange request being processed, modifying the set of token functions defined by the simulation protocol such that performance of the modified set of token functions results in a difference between the new ledger value and the representative unit value being minimized. ([0044], “FIG. 2 depicts a flow diagram 200 for a multi-blockchain token rebalancer, according to certain embodiments. At block 204, the rebalancer 102 receives a signal at a check interval to check a token balance for a network such as network.sub.1 104, or more than one network. The check interval may be a periodic interval, such as every two minutes, 30 minutes, hour, day, multiple days, etc., as appropriate, that may be determined a configuration parameter (or setting) of rebalancer 102. According to certain embodiments, the check interval may be algorithmic and determined by transaction volume per unit of time on the network, or other networks coupled to the rebalancer 102, wherein a particular transaction volume per unit of time (e.g., M transactions per second/minute/hour) on a network may trigger a check interval. In some embodiments, the check interval may be set by a user. In some embodiments, the check interval may occur when a user of the network deposits or withdraws one or more tokens from the network.”; [0051])
Tierney does not explicitly teach, but Diesch teaches:
wherein each of the digital token assets, including the particular digital token, is associated with a location-wise group of external real assets; ([0179], “HPI tokens can be a fungible token issued by (a bankruptcy (BK) remote SPE which can exist for the purpose of holding the HPI equity pool assets and issuing the HPI tokens OR by the SPE which has contracts with the BK remote SPE such that each SPE can issue the HPI tokens independently). HPI tokens can be backed by a pool of equity generated by appreciation of every home (or a subset of homes) on the platform. The ownership of this equity can be transferred to the HPI equity pool by the asset token holders in exchange for HPI tokens.”)
measuring, by the simulation protocol, a representative unit value of the location-wise group of external real assets that is associated with the particular digital token based on generating a representative asset for the location-wise group, the representative asset having multiple dimensions of attributes each derived from corresponding attributes of the location-wise group; ([0341]-[0342], “An updated valuation can be done for each home in a group of homes on the platform in order to calculate the change in value of each home during a current period. This can enable the calculation of the value of the underlying appreciation assets transferred to the HPI pool. This can also enable the immediate pricing and transfer of TIC interests between the occupant and the investors. This can also enable creation of a secondary market for asset tokens where frequent valuations may assist with price discovery. At the time of each updated valuation, the home price appreciation (HPA) or home price depreciation (HPD) can be calculated for the current period, wherein the HPA or HPD can be the difference between the valuation determined at the end of a previous period and the valuation determined at the end of the current period. This can provides a basis on which to calculate the number of HPI tokens to be unlocked for each asset token. This can enable the HPI token to act as a true home price index using the homes on the platform."; [0074], [0148], “Capital Improvement: An improvement which may substantially add to the value of the real property, and/or appreciably prolong the useful life of the real property and/or become part of the real property and/or is permanently affixed to the real property such that removal would cause material damage to the property and is therefore intended to become a permanent installation. A current enhanced valuation can be ordered by the platform to determine the pre and post improvement valuation of the home in order to calculate the capital improvement value. The post improvement valuation can require an onsite inspection to confirm the work has been completed.”)
One of ordinary skill in the art would have recognized that applying the known technique of Diesch to the known invention of Tierney would have yielded predictable results and resulted in an improved invention. It would have been recognized that the application of the technique would have yielded predictable results because the level of ordinary skill in the art demonstrated by the references applied shows the ability to incorporate such asset tracking features into a similar invention. Further, it would have been recognized by those of ordinary skill in the art that modifying the digital token assets to track a location-wise group of external real assets such as real estate and modifying the invention to include the step of measuring, by the simulation protocol, a representative unit value of the location-wise group of external real assets that is associated with the particular digital token based on generating a representative asset for the location-wise group, the representative asset having multiple dimensions of attributes each derived from corresponding attributes of the location-wise group, results in an improved invention because applying said technique ensures that the value of location-wise group of external real assets such as real estate can be accurately tracked and reflected in the digital token assets, thus improving the overall functionality of the invention.
As per claims 2, Tierney teaches:
wherein the simulation protocol defines the variable approximation factor, and wherein modifying the set of token functions defined by the simulation protocol comprises modifying the variable approximation factor. ([0036], [0047], “According to some embodiments, the float variable value for a given network may be algorithmically set based on transaction volume per unit of time, average token in transactions, and the like, with algorithmic limitations that take into account the total asset reserve value for the token and token transaction volumes and amount of the token on the other networks.”)
As per claims 3, 10, 18, Tierney teaches:
wherein the set of token functions includes (i) a mint function according to which the exchange request configures the transmitting of the amount of the particular digital token from the token pool to the ledger participant, and (ii) a burn function according to which the exchange request configures the receiving of the amount of the particular digital token from the ledger participant into the token pool. ([0044], [0051])
As per claims 5, 12, Tierney teaches:
wherein modifying the set of token functions defined by the simulation protocol comprises: determining that the new ledger value is less than the representative unit value; and returning one or more borrowed amounts of the particular digital token to the token pool to cause the new ledger value to increase towards the representative unit value. ([0044], [0051])
Diesch teaches:
determining that the new ledger value is less than the representative unit value as a result of the representative unit value being higher than prior representative unit values; ([0341]-[0342])
As per claims 6, 13, Tierney teaches:
wherein modifying the set of token functions defined by the simulation protocol comprises: determining that the new ledger value is greater than the representative unit value; and reducing the variable approximation factor for at least a mint function included in the set of token functions to cause the new ledger value to decrease towards the representative unit value. ([0044], [0051])
As per claims 7, 14, 19, Diesch teaches:
wherein the representative unit value is predicted for the representative asset according to real-world transactions executed for the location-wise group of external real assets within a preceding time period. ([0342])
As per claims 8, 15, Tierney teaches:
wherein the simulation protocol is distributed across a blockchain network on which the decentralized cryptographic ledger is provided, wherein each of a plurality of distributed instances of the simulation protocol is configured to estimate the representative unit value. ([0018], “Aspects of the present disclosure provide apparatuses, methods, processing systems, and computer-readable mediums for multi-blockchain token rebalancing.”; [0020])
As per claims 16, 20:
Applicant attempts to further limit the platform/medium by describing characteristics of the multiple dimensions of attributes for the representative asset. However, this is representative of non-functional descriptive material as characteristics of the multiple dimensions of attributes for the representative asset does not result in a functional relationship with the platform/medium and therefore cannot be used to differentiate Applicant's invention from the prior art invention. See MPEP 2111.05; In re Gulack, 217 USPQ 401 (Fed. Cir. 1983) (“When descriptive material is not functionally related to the substrate, the descriptive material will not distinguish the invention from the prior art in terms of patentability.”). Specifically, the step of measuring a representative unit value is carried out the same way regardless of the type of statistical calculation described in the multiple dimensions of attributes for the representative asset: there is no evidence the characteristics of the multiple dimensions of attributes for the representative asset changes the efficiency or the accuracy or any other characteristic of the measuring. See Ex Parte Nehls, 88 USPQ2d 1883 (BPAI 2008) (“Here, the descriptive material (SEQ ID NOs) recited in the claims is not functional material like the data structures in Lowry. There is no evidence that SEQ ID NOs 9-1008 functionally affect the process of comparing a target sequence to a database by changing the efficiency or accuracy or any other characteristic of the comparison. Rather, the SEQ ID NOs are merely information being manipulated by a computer; the SEQ ID NOs are inputs used by a computer program that calculates the degree of similarity between a target sequence and each of the sequences in a database. The specific SEQ ID NOs recited in the claims do not affect how the method of the prior art is performed – the method is carried out the same way regardless of which specific sequences are included in the database (emphasis added).”)
Claims 4, 11 is/are rejected under 35 U.S.C. 103 as being unpatentable over United States Patent Application Publication No. 20230073883 to Tierney in view of United States Patent Application Publication No. 20210243272 to Diesch, and further in view of United States Patent Application Publication No. 20200265515 to Runnels.
As per claims 4, 11, Tierney teaches:
wherein modifying the set of token functions defined by the simulation protocol comprises: determining that the new ledger value is less than the representative unit value as a result of the new proportion of the particular digital token in the token pool being higher than previous proportions; ([0044], [0051])
Tierney as modified does not explicitly teach, but Runnels teaches:
enabling borrowing requests for amounts of the particular digital token to cause the new ledger value for the particular digital token to increase towards the representative unit value. ([0003], “While trading in stocks and securities, a short sale is a transaction in which a borrowing individual or an institutional investor borrows digital and/or traditional assets such as, stocks or securities from a lender in order to sell the borrowed assets in anticipation that the price of the assets can fall in future, as compared to a current market price. The borrowing individual can then initiate a short covering by buying back the digital assets at a lower price to earn a profit that can then be calculated as a difference between the short sale price and the buy-back price.”, The Examiner notes that short covering causes upward pressure on the asset’s value.)
One of ordinary skill in the art would have recognized that applying the known technique of Runnels to the known invention of Tierney as modified would have yielded predictable results and resulted in an improved invention. It would have been recognized that the application of the technique would have yielded predictable results because the level of ordinary skill in the art demonstrated by the references applied shows the ability to incorporate such investment options features into a similar invention. Further, it would have been recognized by those of ordinary skill in the art that modifying the invention to include the step of enabling borrowing requests for amounts of the particular digital token to cause the new ledger value for the particular digital token to increase towards the representative unit value results in an improved invention because applying said technique provides another way to cause upward pressure on the digital token asset’s value in order to accurately track the value of the group of external real assets, thus improving the overall accuracy of the invention.
Conclusion
The prior art made of record and not relied upon is considered pertinent to applicant's disclosure:
United States Patent Application Publication No. 20210103997 to High discloses a real estate platform for transferring fractional ownership interests of real property over a network includes a plurality of interface devices and a platform provider environment comprising at least one computer system, at least one database, at least one distributed ledger environment. The platform generating interfaces to facilitate an initial purchase of real property from an original seller to the platform provider, along with the generation of asset-based tokens for the transferred property. The platform providing options for allowing system users to buy and sell fractional ownership of the transferred property via the tokens. Each token holder is granted a legal interest in the property, each transaction is recorded by a distributed ledger, and the original seller's ownership percentage diminishes as tokens are purchased. Fractional owners are provided with landlord options for managing and profiting from the subject property.
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/JAY HUANG/Primary Examiner, Art Unit 3619