DETAILED ACTION
Notice of Pre-AIA or AIA Status
1. 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
2. This action is in reply to the responsive to communication(s) filed on 07/01/2024.
3. Claims 1-25 are currently pending and are rejected for the reasons set forth below.
Claim Rejections - 35 USC § 101
4. 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.
5. Claims 1-2 are rejected under 35 U.S.C. 101 because the claimed invention is directed to non-statutory subject matter. The claims do not fall within at least one of the four categories of patent eligible subject matter.
Claim [1] is rejected under 35 U.S.C. 101 because the claim is directed to non-statutory subject matter. The claim is drawn to “a security” defined by payment terms (“a pass-through security that pays a portion of a revenue stream … to the holder … as the revenue is received by the issuer”). A “security,” as claimed, is an intangible legal/financial instrument and a set of economic relationships. It is not a process, machine, manufacture, or composition of matter. See MPEP 2106, 2106.03; In re Ferguson, 558 F.3d 1359 (Fed. Cir. 2009); In re Nuijten, 500 F.3d 1346 (Fed. Cir. 2007). Accordingly, the claim fails to recite one of the four statutory categories and is ineligible under § 101.
Claim [2] is rejected under 35 U.S.C. 101 because the claim is directed to non-statutory subject matter. The claim is drawn to “a revenue-based investment security (RBIS)” defined by payment terms (“investment shares backed by a revenue stream based on an assigned good, service or asset providing a defined payout to an investor based on a portion of the revenue stream”). A “revenue-based investment security (RBIS),” as claimed, is an intangible legal/financial instrument and a set of economic relationships. It is not a process, machine, manufacture, or composition of matter. See MPEP 2106, 2106.03; In re Ferguson, 558 F.3d 1359 (Fed. Cir. 2009); In re Nuijten, 500 F.3d 1346 (Fed. Cir. 2007). Accordingly, the claim fails to recite one of the four statutory categories and is ineligible under § 101.
Claim Rejections - 35 USC § 101
6. 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.
7. Claims 1-25 are rejected under 35 U.S.C. 101 because the claimed invention is directed to a judicial exception (i.e., an abstract idea) without significantly more.
8. Analysis:
Step 1: Statutory Category?: (is the claim(s) directed to a process, machine, manufacture or composition of matter?) - NO: In the instant case, claim 1 is directed to a security and claim 2 is directed to a revenue-based investment security (RBIS) (i.e., the claims fail to recite a process, machine, manufacture or composition of matter).
Step 1: Statutory Category?: (is the claim(s) directed to a process, machine, manufacture or composition of matter?) - YES: In the instant case, claims 19-25 are directed to a method (i.e., process), claims 3-10 are directed to a distributed network computer system (i.e., machine), and claims 11-18 are directed to a non-transitory computer readable medium (i.e., machine).
Regarding independent claim 3:
Step 2A - Prong 1: Judicial Exception Recited?: (is the claim(s) recited a judicial exception (an abstract idea enumerated in the 2019 PEG, a law of nature, or a natural phenomenon) – YES: Independent claim 3 recites the at least following limitations of “… receive, …, a first bid for one or more shares of a revenue-based investment security ("RBIS") from a first investor; determine, …, a fractional share of the RBIS to allocate to the first investor based on the first bid; allocate, …, the fractional share of the RBIS to the first investor; a distributed ledger for recording bids for the RBIS and respective allocated shares determined …, wherein the distributed ledger is accessible …; and a smart contract accessible to the first networked node…, wherein the smart contract comprises: a revenue stream payout triggering event; and a plurality of predetermined electronic actions for generating a smart contract output when the revenue stream payout triggering event is met, wherein the smart contract generates a revenue stream payout to the first investor automatically when the payout event is triggered, and further wherein the execution of the smart contract is recorded to the distributed ledger.” These recited limitations of the claim, as drafted, under its broadest reasonable interpretation, fall within the “Certain Methods of Organizing Human Activity” grouping of abstract ideas as they cover performance of the limitations in commercial interactions (including sales activities of executing transactions for securities using a smart contract to generate a revenue stream payout). Accordingly, the claim recites an abstract idea.
Step 2A - Prong 2: Integrated into a Practical Application?: (is the claim(s) recited additional elements that integrate the exception into a practical application of the exception) - NO: This judicial exception is not integrated into a practical application. In particular, independent claim 3 further to the abstract idea includes additional elements of “a non-transitory computer readable storage medium”, “one or more processors”, “a first networked node”, and “a central processor”. However, the additional elements recite generic computer components such as a computer, computing devices, a server, and/or software programing that are recited a high-level of generality that merely perform, conduct, carry out, implement, and/or narrow the abstract idea itself. Accordingly, the additional elements evaluated individually and in combination do not integrate the abstract idea into a practical application because they comprise or include limitations that are not indicative of integration into a practical application such as adding the words "apply it" (or an equivalent) with the judicial exception, or mere instructions to implement an abstract idea on a computer, or merely uses a computer as a tool to perform an abstract idea -- See MPEP 2106.05(f). The claim is directed to an abstract idea.
2B: Claim provides an Inventive Concept?: (is the claim(s) recited additional elements that amount to an inventive concept (aka “significantly more”) than the recited judicial exception) - NO: The claim does 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 elements of “a non-transitory computer readable storage medium”, “one or more processors”, “a first networked node”, and “a central processor” evaluated individually and in combination do not amount to more than a recitation of the words "apply it" (or an equivalent) or are not more than mere instructions to implement an abstract idea or other exception on a computer, or are not more than merely using a computer as a tool to perform an abstract idea. Use of a computer or other machinery in its ordinary capacity for economic or other tasks (e.g., to receive, store, or transmit data) or simply adding a general-purpose computer or computer components after the fact to an abstract idea (e.g., a fundamental economic practice or mathematical equation) does not integrate a judicial exception into a practical application or provide significantly more - See MPEP 2106.05(f)(2). None of the additional elements taken individually or when taken as an ordered combination amount to significantly more than the abstract idea. Accordingly, the claim is patent-ineligible.
Regarding independent claim 11:
Step 2A - Prong 1: Judicial Exception Recited?: (is the claim(s) recited a judicial exception (an abstract idea enumerated in the 2019 PEG, a law of nature, or a natural phenomenon) – YES: Independent claim 11 recites the at least following limitations of “… receive, …, a first bid for one or more shares of a revenue-based investment security ("RBIS") from a first investor; determine, …, a fractional share of the RBIS to allocate to the first investor based on the first bid; allocate, …, the fractional share of the RBIS to the first investor; record in a distributed ledger, wherein the distributed ledger …, bids for the RBIS; respective allocated shares …; and execution of a smart contract accessible …, wherein the smart contract comprises: a revenue stream payout triggering event; and a plurality of predetermined electronic actions for generating a smart contract output when the revenue stream payout triggering event is met, wherein the smart contract generates a revenue stream payout to the first investor automatically when the payout event is triggered.” These recited limitations of the claim, as drafted, under its broadest reasonable interpretation, fall within the “Certain Methods of Organizing Human Activity” grouping of abstract ideas as they cover performance of the limitations in commercial interactions (including sales activities of executing transactions for securities using a smart contract to generate a revenue stream payout). Accordingly, the claim recites an abstract idea.
Step 2A - Prong 2: Integrated into a Practical Application?: (is the claim(s) recited additional elements that integrate the exception into a practical application of the exception) - NO: This judicial exception is not integrated into a practical application. In particular, independent claim 11 further to the abstract idea includes additional elements of “a plurality of computer readable instructions”, “a distributed networked computer system”, “a first networked node”, “a central processor”, and “one or more processors”. However, the additional elements recite generic computer components such as a computer, computing devices, a server, and/or software programing that are recited a high-level of generality that merely perform, conduct, carry out, implement, and/or narrow the abstract idea itself. Accordingly, the additional elements evaluated individually and in combination do not integrate the abstract idea into a practical application because they comprise or include limitations that are not indicative of integration into a practical application such as adding the words "apply it" (or an equivalent) with the judicial exception, or mere instructions to implement an abstract idea on a computer, or merely uses a computer as a tool to perform an abstract idea -- See MPEP 2106.05(f). The claim is directed to an abstract idea.
2B: Claim provides an Inventive Concept?: (is the claim(s) recited additional elements that amount to an inventive concept (aka “significantly more”) than the recited judicial exception) - NO: The claim does 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 elements of “a plurality of computer readable instructions”, “a distributed networked computer system”, “a first networked node”, “a central processor”, and “one or more processors” evaluated individually and in combination do not amount to more than a recitation of the words "apply it" (or an equivalent) or are not more than mere instructions to implement an abstract idea or other exception on a computer, or are not more than merely using a computer as a tool to perform an abstract idea. Use of a computer or other machinery in its ordinary capacity for economic or other tasks (e.g., to receive, store, or transmit data) or simply adding a general-purpose computer or computer components after the fact to an abstract idea (e.g., a fundamental economic practice or mathematical equation) does not integrate a judicial exception into a practical application or provide significantly more - See MPEP 2106.05(f)(2). None of the additional elements taken individually or when taken as an ordered combination amount to significantly more than the abstract idea. Accordingly, the claim is patent-ineligible.
Regarding independent claim 19:
Step 2A - Prong 1: Judicial Exception Recited?: (is the claim(s) recited a judicial exception (an abstract idea enumerated in the 2019 PEG, a law of nature, or a natural phenomenon) – YES: Independent claim 19 recites the at least following limitations of “… receiving, …, a first bid for one or more shares of a revenue- based investment security ("RBIS") from a first investor; determining, …, a fractional share of the RBIS to allocate to the first investor based on the first bid; allocating, …, the fractional share of the RBIS to the first user; recording in a distributed ledger, wherein the distributed ledger …, bids for the RBIS; respective allocated shares determined …; and execution of a smart contract …, wherein the smart contract comprises: a revenue stream payout triggering event; and … generating a smart contract output when the revenue stream payout triggering event is met, wherein the smart contract generates a revenue stream payout to the first investor automatically when the payout event is triggered.” These recited limitations of the claim, as drafted, under its broadest reasonable interpretation, fall within the “Certain Methods of Organizing Human Activity” grouping of abstract ideas as they cover performance of the limitations in commercial interactions (including sales activities of executing transactions for securities using a smart contract to generate a revenue stream payout). Accordingly, the claim recites an abstract idea.
Step 2A - Prong 2: Integrated into a Practical Application?: (is the claim(s) recited additional elements that integrate the exception into a practical application of the exception) - NO: This judicial exception is not integrated into a practical application. In particular, independent claim 19 further to the abstract idea includes additional elements of “a distributed networked computer system”, “a first networked node”, “a central processor”, and “a plurality of predetermined electronic actions”. However, the additional elements recite generic computer components such as a computer, computing devices, a server, and/or software programing that are recited a high-level of generality that merely perform, conduct, carry out, implement, and/or narrow the abstract idea itself. Accordingly, the additional elements evaluated individually and in combination do not integrate the abstract idea into a practical application because they comprise or include limitations that are not indicative of integration into a practical application such as adding the words "apply it" (or an equivalent) with the judicial exception, or mere instructions to implement an abstract idea on a computer, or merely uses a computer as a tool to perform an abstract idea -- See MPEP 2106.05(f). The claim is directed to an abstract idea.
2B: Claim provides an Inventive Concept?: (is the claim(s) recited additional elements that amount to an inventive concept (aka “significantly more”) than the recited judicial exception) - NO: The claim does 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 elements of “a distributed networked computer system”, “a first networked node”, “a central processor”, and “a plurality of predetermined electronic actions” evaluated individually and in combination do not amount to more than a recitation of the words "apply it" (or an equivalent) or are not more than mere instructions to implement an abstract idea or other exception on a computer, or are not more than merely using a computer as a tool to perform an abstract idea. Use of a computer or other machinery in its ordinary capacity for economic or other tasks (e.g., to receive, store, or transmit data) or simply adding a general-purpose computer or computer components after the fact to an abstract idea (e.g., a fundamental economic practice or mathematical equation) does not integrate a judicial exception into a practical application or provide significantly more - See MPEP 2106.05(f)(2). None of the additional elements taken individually or when taken as an ordered combination amount to significantly more than the abstract idea. Accordingly, the claim is patent-ineligible.
Dependent claims 4-10, 12-18, and 20-25 have been given the full two-part analysis, analyzing the additional limitations both individually and in combination. The dependent claims, when analyzed individually and in combination, are also held to be patent-ineligible under 35 U.S.C. 101.
Dependent claims 4, 12, and 20: simply provide further definition to “the smart contract” recited in independent claims 3, 11, and 19. Simply stating that wherein the smart contract is between the first investor and an issuer of the revenue-based investment security do not add any additional element or subject matter that provides a technological improvement (i.e., an interactive element associated with each of the deviation elements, an explanation box) that results in the claims being directed to patent eligible subject matter or include an element or feature that is significantly more than the recited abstract idea (i.e., a technological inventive concept under Step 2B).
Dependent claims 5, 13, and 21: simply provide further definition to “the smart the payout triggering event” recited in independent claims 3, 11, and 19. Simply stating that wherein the payout triggering event is based on revenue associated with sale of a good or service do not add any additional element or subject matter that provides a technological improvement (i.e., an interactive element associated with each of the deviation elements, an explanation box) that results in the claims being directed to patent eligible subject matter or include an element or feature that is significantly more than the recited abstract idea (i.e., a technological inventive concept under Step 2B).
Dependent claims 6, 14, and 22: simply refine the abstract idea because they recite limitations (e.g., further comprising one or more processors configured to execute the program instructions to cause the computing system to: receive, from a plurality of networked nodes, a plurality of bids for one or more shares of a revenue-based investment security ("RBIS") from a plurality of investors, determine, by the central processor, a fractional share of the RBIS to allocate to each of the plurality of investors based on the respective bids associated with each investor; and allocate, by one or more processors, the fractional shares of the RBIS to each of the plurality of investors), that fall under the category of organizing human activity as described above in independent claims 3, 11, and 19. Additionally, merely stating that these process steps are performed by one or more processors and the central processor amounts to no more than merely applying generic computer components (i.e., one or more processors, the central processor) to implement the abstract idea on a computer. Thus, the dependent claims do not add any additional element or subject matter that provides a technological improvement (i.e., an integration into a practical application) that results in the claims being directed to patent eligible subject matter or include an element or feature that is significantly more than the recited abstract idea (i.e., a technological inventive concept under Step 2B).
Dependent claims 7, 15, and 23: simply provide further definition to “a plurality of smart contracts” recited in dependent claims 3, 14, and 22. Simply stating that wherein a plurality of smart contracts are accessible to the plurality of networked nodes, wherein each of the plurality of smart contracts comprises: a revenue stream payout triggering event; and a plurality of predetermined electronic actions for generating a smart contract output when the revenue stream payout triggering event is met, wherein the smart contract generates a revenue stream payout to at least some of the plurality of investors automatically when the revenue stream payout event is triggered, and further wherein each execution of each of the smart contracts is recorded to the distributed ledger amounts to no more than merely applying generic computer components and/or software programing to implement the abstract idea on a computer (i.e., an interactive element associated with each of the deviation elements, an explanation box).Thus, the dependent claims do not add any additional element or subject matter that provides a technological improvement (i.e., an interactive element associated with each of the deviation elements, an explanation box) that results in the claims being directed to patent eligible subject matter or include an element or feature that is significantly more than the recited abstract idea (i.e., a technological inventive concept under Step 2B).
Dependent claims 8 and 16: simply provide further definition to “the payout” recited in dependent claim 7 independent claim 16. Simply stating that wherein the payout is a portion of a revenue associated with sale of a good or service do not add any additional element or subject matter that provides a technological improvement (i.e., an interactive element associated with each of the deviation elements, an explanation box) that results in the claims being directed to patent eligible subject matter or include an element or feature that is significantly more than the recited abstract idea (i.e., a technological inventive concept under Step 2B).
Dependent claims 9, 17, and 24: simply provide further definition to “the payout” recited in dependent claims 7, 15, and 23. Simply stating that wherein the payout triggering event comprises a first threshold that occurs when monetization of the good exceeds total expenses associated with producing the good do not add any additional element or subject matter that provides a technological improvement (i.e., an interactive element associated with each of the deviation elements, an explanation box) that results in the claims being directed to patent eligible subject matter or include an element or feature that is significantly more than the recited abstract idea (i.e., a technological inventive concept under Step 2B).
Dependent claims 10, 18, and 25: simply provide further definition to “only some of the smart contracts” recited in dependent claims 7, 15, and 23. Simply stating that wherein only some of the smart contracts are executed to distribute a payout when the first threshold is met do not add any additional element or subject matter that provides a technological improvement (i.e., an interactive element associated with each of the deviation elements, an explanation box) that results in the claims being directed to patent eligible subject matter or include an element or feature that is significantly more than the recited abstract idea (i.e., a technological inventive concept under Step 2B).
Claim Rejections - 35 USC § 102
9. 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.
10. The following is a quotation of the appropriate paragraphs of 35 U.S.C. 102 that form the basis for the rejections under this section made in this Office action:
A person shall be entitled to a patent unless –
(a)(1) the claimed invention was patented, described in a printed publication, or in public use, on sale or otherwise available to the public before the effective filing date of the claimed invention.
11. Claims 1-25 are rejected under 35 U.S.C. 102(a)(1) as being anticipated by Coleman et al. (U.S. Pub. No. 2012/0185409), hereinafter, “Coleman”.
Claim 1 –
Coleman disclose:
a security for monetizing or securitizing revenue, wherein the security comprises a pass-through security that pays a portion of a revenue stream, such as a payment based on sales of goods or services, to the holder of the security as the revenue is received by the issuer of the security (Coleman, [0045], “AppShares are different from other existing revenue based derivative contracts in that they are not finite lived, provide a security that does not have limited revenue participation, provide a security that produces a dividend stream derived from the sales of a product, and provide a security that does not allow for short positions or leverage”, see also Figure 1).
Claim 2 –
Coleman disclose:
a revenue-based investment security (RBIS) comprising investment shares backed by a revenue stream based on an assigned good, service or asset providing a defined payout to an investor based on a portion of the revenue stream (Coleman, [0045], “AppShares are different from other existing revenue based derivative contracts in that they are not finite lived, provide a security that does not have limited revenue participation, provide a security that produces a dividend stream derived from the sales of a product, and provide a security that does not allow for short positions or leverage”, see also Figure 1).
Claim 3 –
Coleman disclose:
a distributed networked computer system for managing securitization of revenue streams, the distributed network computer system comprising: a non-transitory computer readable storage medium having program instructions embodied therewith; and one or more processors configured to execute the program instructions to cause the computing system to (Coleman, [0036], [0037], “The systems and methods described below with reference to block diagrams and operational illustrations of methods and devices to raising financial capital by securitizing the revenue stream of a product … one or more computer programs that are executable and/or interpretable on a programmable system including at least one programmable processor,”, see also Figure 1):
receive, from a first networked node, a first bid for one or more shares of a revenue-based investment security ("RBIS") from a first investor (Coleman, [0166], “the primary market includes an auction for issuing new AppShares. FIG. 20 illustrates the process 2000 by which developers submit Apps and investors submit bids to the Auction BEAN”, see also Figure 20);
determine, by a central processor, a fractional share of the RBIS to allocate to the first investor based on the first bid (Coleman, [0167], “the investor first selects an AppShare listing in an AppShare auction 2000 the investor has an interest in. The investor then inputs key metadata 306 to take part in the applicable AppShare auction, which can include the number of AppShares to be purchased 2006 and a limit price to purchase AppShares 2008. The electronic roadshow tool 2014 can be used by investors to review an offering prior to placing an order”, see also Figure 20);
allocate, by one or more processors, the fractional share of the RBIS to the first investor (Coleman, [0099], “The Auction BEAN will allow investors to allocate AppShares and capital depending upon their desired allotment. Once the auction occurs the AppShares will be available for secondary trade on the secondary market. In an embodiment, the secondary market is an electronic market for trading the auctioned AppShares known as the Trading BEAN”, see also Figure 4);
a distributed ledger for recording bids for the RBIS and respective allocated shares determined by the central processor, wherein the distributed ledger is accessible by the first networked node (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 1); and
a smart contract accessible to the first networked node, wherein the smart contract comprises: a revenue stream payout triggering event; and a plurality of predetermined electronic actions for generating a smart contract output when the revenue stream payout triggering event is met, wherein the smart contract generates a revenue stream payout to the first investor automatically when the payout event is triggered, and further wherein the execution of the smart contract is recorded to the distributed ledger (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 4).
Claim 4 –
Coleman disclose the distributed network of claim 3, as shown above.
Coleman further disclose:
wherein the smart contract is between the first investor and an issuer of the revenue-based investment security (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 4).
Claim 5 –
Coleman disclose the distributed network of claim 3, as shown above.
Coleman further disclose:
wherein the payout triggering event is based on revenue associated with sale of a good or service (Coleman, [0207], “logic executed by the processor for providing a primary market that allows a company to sell a percentage of the revenue of a product of the company to an investor, wherein the percentage of revenue stake in the product comprises issued shares; issuing shares entitling the investor holding the issued shares to a percentage of revenues generated by sales of the product underlying the issued shares”, see also Figure 4).
Claim 6 –
Coleman disclose the distributed network of claim 3, as shown above.
Coleman further disclose:
further comprising one or more processors configured to execute the program instructions to cause the computing system to: receive, from a plurality of networked nodes, a plurality of bids for one or more shares of a revenue-based investment security ("RBIS") from a plurality of investors, determine, by the central processor, a fractional share of the RBIS to allocate to each of the plurality of investors based on the respective bids associated with each investor; and allocate, by one or more processors, the fractional shares of the RBIS to each of the plurality of investors (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 4).
Claim 7 –
Coleman disclose the distributed network of claim 6, as shown above.
Coleman further disclose:
wherein a plurality of smart contracts are accessible to the plurality of networked nodes, wherein each of the plurality of smart contracts comprises :a revenue stream payout triggering event; and a plurality of predetermined electronic actions for generating a smart contract output when the revenue stream payout triggering event is met, wherein the smart contract generates a revenue stream payout to at least some of the plurality of investors automatically when the revenue stream payout event is triggered, and further wherein each execution of each of the smart contracts is recorded to the distributed ledger (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 4).
Claim 8 –
Coleman disclose the distributed network of claim 7, as shown above.
Coleman further disclose:
wherein the payout is a portion of a revenue associated with sale of a good or service (Coleman, [0207], “logic executed by the processor for providing a primary market that allows a company to sell a percentage of the revenue of a product of the company to an investor, wherein the percentage of revenue stake in the product comprises issued shares; issuing shares entitling the investor holding the issued shares to a percentage of revenues generated by sales of the product underlying the issued shares”, see also Figure 4).
Claim 9 –
Coleman disclose the distributed network of claim 7, as shown above.
Coleman further disclose:
wherein the payout triggering event comprises a first threshold that occurs when monetization of the good exceeds total expenses associated with producing the good (Coleman, [0207], “logic executed by the processor for providing a primary market that allows a company to sell a percentage of the revenue of a product of the company to an investor, wherein the percentage of revenue stake in the product comprises issued shares; issuing shares entitling the investor holding the issued shares to a percentage of revenues generated by sales of the product underlying the issued shares”, see also Figure 4).
Claim 10 –
Coleman disclose the distributed network of claim 9, as shown above.
Coleman further disclose:
wherein only some of the smart contracts are executed to distribute a payout when the first threshold is met (Coleman, [0207], “logic executed by the processor for providing a primary market that allows a company to sell a percentage of the revenue of a product of the company to an investor, wherein the percentage of revenue stake in the product comprises issued shares; issuing shares entitling the investor holding the issued shares to a percentage of revenues generated by sales of the product underlying the issued shares”, see also Figure 4).
Claim 11 –
Coleman disclose:
a non-transitory computer readable storage medium comprising a plurality of computer readable instructions embodied thereon wherein the instructions, when executed by a distributed networked computer system for managing securitization of revenue, cause the distributed networked computer system to (Coleman, [0036], [0037], “The systems and methods described below with reference to block diagrams and operational illustrations of methods and devices to raising financial capital by securitizing the revenue stream of a product … one or more computer programs that are executable and/or interpretable on a programmable system including at least one programmable processor”, see also Figure 1):
receive, from a first networked node, a first bid for one or more shares of a revenue-based investment security ("RBIS") from a first investor (Coleman, [0166], “the primary market includes an auction for issuing new AppShares. FIG. 20 illustrates the process 2000 by which developers submit Apps and investors submit bids to the Auction BEAN”, see also Figure 20);
determine, by a central processor, a fractional share of the RBIS to allocate to the first investor based on the first bid (Coleman, [0167], “the investor first selects an AppShare listing in an AppShare auction 2000 the investor has an interest in. The investor then inputs key metadata 306 to take part in the applicable AppShare auction, which can include the number of AppShares to be purchased 2006 and a limit price to purchase AppShares 2008. The electronic roadshow tool 2014 can be used by investors to review an offering prior to placing an order”, see also Figure 20);
allocate, by one or more processors, the fractional share of the RBIS to the first investor (Coleman, [0099], “The Auction BEAN will allow investors to allocate AppShares and capital depending upon their desired allotment. Once the auction occurs the AppShares will be available for secondary trade on the secondary market. In an embodiment, the secondary market is an electronic market for trading the auctioned AppShares known as the Trading BEAN”, see also Figure 4);
record in a distributed ledger, wherein the distributed ledger is accessible by the first networked node, bids for the RBIS (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 1);
respective allocated shares determined by the central processor; and execution of a smart contract accessible to the first networked node, wherein the smart contract comprises: a revenue stream payout triggering event; and a plurality of predetermined electronic actions for generating a smart contract output when the revenue stream payout triggering event is met, wherein the smart contract generates a revenue stream payout to the first investor automatically when the payout event is triggered (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 4).
Claim 12 –
Coleman disclose the non-transitory computer readable storage medium of claim 11, as shown above.
Coleman further disclose:
wherein the smart contract is between the first investor and an issuer of the revenue-based investment security (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 4).
Claim 13 –
Coleman disclose the non-transitory computer readable storage medium of claim 11, as shown above.
Coleman further disclose:
wherein the payout triggering event is based on revenue associated with monetization of the revenue stream (Coleman, [0207], “logic executed by the processor for providing a primary market that allows a company to sell a percentage of the revenue of a product of the company to an investor, wherein the percentage of revenue stake in the product comprises issued shares; issuing shares entitling the investor holding the issued shares to a percentage of revenues generated by sales of the product underlying the issued shares”, see also Figure 4).
Claim 14 –
Coleman disclose the non-transitory computer readable storage medium of claim 11, as shown above.
Coleman further disclose:
wherein the instructions further cause the distributed networked computer system to: receive, from a plurality of networked nodes, a plurality of bids for one or more shares of a revenue-based investment security ("RBIS") from a plurality of investors, determine, by the central processor, a fractional share of the RBIS to allocate to each of the plurality of investors based on the respective bids associated with each investor; and allocate, by one or more processors, the fractional shares of the RBIS to each of the plurality of investors (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 4).
Claim 15 –
Coleman disclose the non-transitory computer readable storage medium of claim 14, as shown above.
Coleman further disclose:
wherein the instructions further cause the distributed networked computer system to record to the distributed ledger a plurality of smart contracts accessible to the plurality of networked nodes, wherein each of the plurality of smart contracts comprises: a revenue stream payout triggering event; and a plurality of predetermined electronic actions for generating a smart contract output when the revenue stream payout triggering event is met, wherein the smart contract generates a revenue stream payout to at least some of the plurality of investors automatically when the revenue stream payout event is triggered and further wherein each execution of each of the smart contracts is recorded to the distributed ledger (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 4).
Claim 16 –
Coleman disclose the non-transitory computer readable storage medium of claim 11, as shown above.
Coleman further disclose:
wherein the payout is a portion of a revenue associated with sale of a good or service (Coleman, [0207], “logic executed by the processor for providing a primary market that allows a company to sell a percentage of the revenue of a product of the company to an investor, wherein the percentage of revenue stake in the product comprises issued shares; issuing shares entitling the investor holding the issued shares to a percentage of revenues generated by sales of the product underlying the issued shares”, see also Figure 4).
Claim 17 –
Coleman disclose the non-transitory computer readable storage medium of claim 15, as shown above.
Coleman further disclose:
wherein the payout triggering event comprises a first threshold that occurs when monetization of the good exceeds total expenses associated with producing the good (Coleman, [0207], “logic executed by the processor for providing a primary market that allows a company to sell a percentage of the revenue of a product of the company to an investor, wherein the percentage of revenue stake in the product comprises issued shares; issuing shares entitling the investor holding the issued shares to a percentage of revenues generated by sales of the product underlying the issued shares”, see also Figure 4).
Claim 18 –
Coleman disclose the non-transitory computer readable storage medium of claim 17, as shown above.
Coleman further disclose:
wherein only some of the smart contracts are executed to distribute a payout when the first threshold triggering event is met (Coleman, [0207], “logic executed by the processor for providing a primary market that allows a company to sell a percentage of the revenue of a product of the company to an investor, wherein the percentage of revenue stake in the product comprises issued shares; issuing shares entitling the investor holding the issued shares to a percentage of revenues generated by sales of the product underlying the issued shares”, see also Figure 4).
Claim 19 –
Coleman disclose:
a method for managing securitization of revenue by a distributed networked computer system, the method comprising (Coleman, [0036], [0037], “The systems and methods described below with reference to block diagrams and operational illustrations of methods and devices to raising financial capital by securitizing the revenue stream of a product … one or more computer programs that are executable and/or interpretable on a programmable system including at least one programmable processor”, see also Figure 1):
receiving, from a first networked node, a first bid for one or more shares of a revenue- based investment security ("RBIS") from a first investor (Coleman, [0166], “the primary market includes an auction for issuing new AppShares. FIG. 20 illustrates the process 2000 by which developers submit Apps and investors submit bids to the Auction BEAN”, see also Figure 20);
determining, by a central processor, a fractional share of the RBIS to allocate to the first investor based on the first bid (Coleman, [0167], “the investor first selects an AppShare listing in an AppShare auction 2000 the investor has an interest in. The investor then inputs key metadata 306 to take part in the applicable AppShare auction, which can include the number of AppShares to be purchased 2006 and a limit price to purchase AppShares 2008. The electronic roadshow tool 2014 can be used by investors to review an offering prior to placing an order”, see also Figure 20);
allocating, by one or more processors, the fractional share of the RBIS to the first user (Coleman, [0099], “The Auction BEAN will allow investors to allocate AppShares and capital depending upon their desired allotment. Once the auction occurs the AppShares will be available for secondary trade on the secondary market. In an embodiment, the secondary market is an electronic market for trading the auctioned AppShares known as the Trading BEAN”, see also Figure 4);
recording in a distributed ledger, wherein the distributed ledger is accessible by the first networked node, bids for the RBIS (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 1);
respective allocated shares determined by the central processor; and execution of a smart contract accessible to the first networked node, wherein the smart contract comprises: a revenue stream payout triggering event; and a plurality of predetermined electronic actions for generating a smart contract output when the revenue stream payout triggering event is met, wherein the smart contract generates a revenue stream payout to the first investor automatically when the payout event is triggered (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 4).
Claim 20 –
Coleman disclose the method of claim 19, as shown above.
Coleman further disclose:
wherein the smart contract is between the first investor and an issuer of the revenue-based investment security (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 4).
Claim 21 –
Coleman disclose the method of claim 19, as shown above.
Coleman further disclose:
wherein the payout triggering event is based on revenue associated with monetization of a good or service (Coleman, [0207], “logic executed by the processor for providing a primary market that allows a company to sell a percentage of the revenue of a product of the company to an investor, wherein the percentage of revenue stake in the product comprises issued shares; issuing shares entitling the investor holding the issued shares to a percentage of revenues generated by sales of the product underlying the issued shares”, see also Figure 4).
Claim 22 –
Coleman disclose the method of claim 19, as shown above.
Coleman further disclose:
further comprising: receiving, from a plurality of networked nodes, a plurality of bids for one or more shares of a revenue-based investment security ("RBIS") from a plurality of investors, determining, by the central processor, a fractional share of the RBIS to allocate to each of the plurality of investors based on the respective bids associated with each investor; and allocating, by one or more processors, the fractional shares of the RBIS to each of the plurality of investors (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 4).
Claim 23 –
Coleman disclose the method of claim 22, as shown above.
Coleman further disclose:
further comprising: recording to the distributed ledger a plurality of smart contracts accessible to the plurality of networked nodes, wherein each of the plurality of smart contracts comprises: a revenue stream payout triggering event; and a plurality of predetermined electronic actions for generating a smart contract output when the revenue stream payout triggering event is met, wherein the smart contract generates a revenue stream payout to at least some of the plurality of investors automatically when the revenue stream payout event is triggered and further wherein each execution of each of the smart contracts is recorded to the distributed ledger (Coleman, [0207], “logic executed by the processor for establishing a custodian for maintaining ownership of records identifying the investor holding the issued shares purchased at the first price or the second price; logic executed by the processor for distributing the percentage of revenues generated by sales of the product to the custodian for safe keeping until a dividend is distributed”, see also Figure 4).
Claim 24 –
Coleman disclose the method of claim 23, as shown above.
Coleman further disclose:
wherein the payout triggering event comprises a first threshold that occurs when the monetization of a good exceeds total expenses associated with producing the good (Coleman, [0207], “logic executed by the processor for providing a primary market that allows a company to sell a percentage of the revenue of a product of the company to an investor, wherein the percentage of revenue stake in the product comprises issued shares; issuing shares entitling the investor holding the issued shares to a percentage of revenues generated by sales of the product underlying the issued shares”, see also Figure 4).
Claim 25 –
Coleman disclose the method of claim 24, as shown above.
Coleman further disclose:
wherein only some of the smart contracts are executed to distribute a payout when the first threshold is met (Coleman, [0207], “logic executed by the processor for providing a primary market that allows a company to sell a percentage of the revenue of a product of the company to an investor, wherein the percentage of revenue stake in the product comprises issued shares; issuing shares entitling the investor holding the issued shares to a percentage of revenues generated by sales of the product underlying the issued shares”, see also Figure 4).
Relevant Prior Art
12. The prior art made of record and not relied upon are considered pertinent to applicant's disclosure:
Wolfberg (U.S. Pub. No. 2023/0091805) teach securitization of assets utilizing distributed-ledgers and smart meters and a user permission framework for information flow.
Conclusion
13. Any inquiry concerning this communication or earlier communications from the examiner should be directed to Liz Nguyen whose telephone number is (571) 272-5414. The examiner can normally be reached on Monday to Friday 8:00 A.M to 5:00 P.M.
If attempts to reach the examiner by telephone are unsuccessful, the examiner’s supervisor, Matthew Gart, can be reached on (571) 272-3955. The fax phone number for the organization where this application or proceeding is assigned is 571-273-8300.
Information regarding the status of an application may be obtained from the Patent Center system (visit: https://patentcenter.uspto.gov). If you would like assistance from a USPTO Customer Service Representative or access to the automated information system, call (800) 786-9199 (USA or CANADA) or (571) 272-1000.
/LIZ P NGUYEN/
Examiner, Art Unit 3696
/MATTHEW S GART/Supervisory Patent Examiner, Art Unit 3696