DETAILED ACTION
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 .
Continued Examination Under 37 CFR 1.114
A request for continued examination under 37 CFR 1.114, including the fee set forth in 37 CFR 1.17(e), was filed in this application after final rejection. Since this application is eligible for continued examination under 37 CFR 1.114, and the fee set forth in 37 CFR 1.17(e) has been timely paid, the finality of the previous Office action has been withdrawn pursuant to 37 CFR 1.114. Applicant's submission filed on 07/13/2026 has been entered.
Status of Claims
Claims 1-20 are canceled.
Claims 21-40 are new.
Claims 21-40 are pending.
Response to Remarks
Claim Objections
Applicant’s amendments to the claims have overcome the previous objections. Accordingly, the previous objections are withdrawn.
Double Patenting
As previously mentioned in the final office action mailed 04/13/2026, Applicant filed a terminal disclaimer on 03/23/2026, and thus the previous rejections are withdrawn.
35 U.S.C. § 112(b)
Applicant’s amendments to the claims have overcome the previous rejections. Accordingly, the previous rejections are withdrawn.
35 U.S.C. § 101
Applicant’s amendments to the claims have overcome the previous rejections based on the claimed invention being directed to an abstract idea without significantly more. Accordingly, the previous rejections are withdrawn.
Claim Objections
Claim 39 is objected to because of the following informalities. The claim recites the limitation “A non-transitory computer-readable storage device storing instructions that, when executed by one or more processors of a distributed blockchain ledger synchronization and settlement system comprising a governance blockchain node and first and second custodian blockchain nodes, cause the distributed blockchain ledger synchronization and settlement system to be configured to: …”. The claim then recites functions attributed to the multiple mentioned processors. The specification does not disclose multiple processors executing instructions on a single computer-readable storage device, and does not provide an algorithm for how this would occur. Examiner suggests cancelling the claim. Appropriate correction is required.
Claim 40 is also objected to per dependency upon an objected claim.
Claim Rejections - 35 USC § 112
The following is a quotation of 35 U.S.C. 112(b):
(b) CONCLUSION.—The specification shall conclude with one or more claims particularly pointing out and distinctly claiming the subject matter which the inventor or a joint inventor regards as the invention.
The following is a quotation of 35 U.S.C. 112 (pre-AIA ), second paragraph:
The specification shall conclude with one or more claims particularly pointing out and distinctly claiming the subject matter which the applicant regards as his invention.
Claims 21-31 are rejected under 35 U.S.C. 112(b) or 35 U.S.C. 112 (pre-AIA ), second paragraph, as being indefinite for failing to particularly point out and distinctly claim the subject matter which the inventor or a joint inventor, or for pre-AIA the applicant regards as the invention.
Unclear Scope
Claim 21 is directed to a product (e.g., "A distributed blockchain ledger synchronization and settlement system comprising: …”). For products, the claim limitations will define discrete physical structures or materials (See MPEP 2103(I)(C)). Here, claim 21 recites that the "system" comprises structural recitations of a governance blockchain node, a first custodian blockchain node, a second custodian blockchain node, and a matching compute device. Many of the functions recited in the claim are associated with the claimed structure of the system (e.g., “create, at the governance blockchain node …”, etc.). However, the claim also comprises functions (e.g., “obtain, from first and second trader devices, first and second digital signatures authorizing the exchange” and “generate an allocation report identifying, for the cross-custodian net settlement amounts due, transaction details, public key addresses, UTXO proofs, netted quantities, and residual quantities”) where it is unclear what claimed structural recitations of the "system" these functions are attributed to. Therefore, the claim is indefinite and rejected under 35 U.S.C. 112(b) or pre-AIA 35 U.S.C. 112, second paragraph.
Claim 31 is rejected for similar reasoning as claim 21, as claim 31 recites “load the residual quantities into a blockchain smart contract or convert the residual quantities into movement instructions over non-blockchain settlement rails”. It is unclear what claimed structural recitations of the "system" these functions are attributed to. Therefore, the claims are indefinite and rejected under 35 U.S.C. 112(b) or pre-AIA 35 U.S.C. 112, second paragraph.
See In re Zletz, 893 F.2d 319, 13USPQ2d 1320 (Fed. Cir. 1989) and MPEP 2173.02 (III)(B) which states “Examiners should bear in mind that "[a]n essential purpose of patent examination is to fashion claims that are precise, clear, correct, and unambiguous. Only in this way can uncertainties of claim scope be removed, as much as possible, during the administrative process.”
Claims 22-31 are also rejected per dependency upon a rejected claim.
Claims Free of Art
Claims 21-40 are free of art. The closest prior art of record is US 2020/0273048 A1 (“Andon”). Andon teaches:
receiving, from a custodian interface associated with the first custodian blockchain node, a create-ledger API call (paras 80, 115) identifying a first asset (paras 43, 48-49, 65-66, 78, 83) for a first asset ledger (paras 72, 74, 76, 88);
creating, at the governance blockchain node, a first genesis block for the first asset ledger (para 8);
transmitting the first genesis block from the governance blockchain node to the first custodian blockchain node (paras 74, 76, 88);
validating, at the first custodian blockchain node, the first genesis block and creating the first asset ledger in response to validating the first genesis block (paras 74, 76, 88);
receiving, at the matching compute device, first and second orders for an exchange involving the first asset ledger and a second asset ledger maintained by the second custodian blockchain node (paras 54, 63, 79, 84, 90-91, 107);
determining, by matching instructions executed by the matching compute device, that the first and second orders match (paras 54, 63, 79, 84, 90-91, 107);
checking balances for the first and second orders against a first UTXO table maintained by the first custodian blockchain node and a second UTXO table maintained by the second custodian blockchain node (paras 46, 48);
obtaining, from first and second trader devices, first and second digital signatures authorizing the exchange (paras 54, 63, 79, 84, 90-91, 107);
initializing an atomic trade transaction for the exchange by causing the governance blockchain node to acquire a database lock across the first asset ledger and the second asset ledger, validate paired transaction records for the exchange, and write first mempool entries for the paired transaction records to a mempool table with an initial status (paras 63, 74, 79, 85, 88, 124);
causing the first custodian blockchain node and the second custodian blockchain node to validate the paired transaction records and write second mempool entries for the paired transaction records to respective custodian mempool tables with the initial status (paras 63, 74, 79, 85, 88, 124);
committing the atomic trade transaction by updating the first UTXO table and the second UTXO table and changing the first mempool entries and the second mempool entries from the initial status to a committed status (paras 63, 74, 79, 85, 88, 124);
executing, at the governance blockchain node, a block-creation process that checks the mempool table for entries having the committed status, creates a new block including committed transaction records corresponding to the entries having the committed status, validates the new block, writes the new block and the committed transaction records to a block table and a transaction table, and removes the entries having the committed status from the mempool table (paras 63, 74, 79, 85, 88, 124);
transmitting the new block from the governance blockchain node to the first custodian blockchain node and the second custodian blockchain node (paras 63, 74, 79, 85, 88, 124);
validating and accepting the new block at each of the first custodian blockchain node and the second custodian blockchain node to reach consensus for the exchange (paras 63, 74, 79, 85, 88, 124);
Therefore, the prior art does not teach, neither singly nor in combination the following:
calculating cross-custodian net settlement amounts due, for each of a plurality of users and each of a plurality of assets represented in the committed transaction records, between the first custodian blockchain node and the second custodian blockchain node based on committed transactions recorded in the transaction table and corresponding records in the first UTXO table and the second UTXO table; and
generating an allocation report identifying, for the cross-custodian net settlement amounts due, transaction details, public key addresses, UTXO proofs, netted quantities, and residual quantities.
Allowable Subject Matter
Claims 32-38 are allowable. Claims 21-31 would be allowable if rewritten or amended to overcome the rejection(s) under 35 U.S.C. 112(b) set forth in this Office action. Examiner suggests cancelling claims 39-40.
Conclusion
The following prior art made of record and not relied upon is considered pertinent to applicant's disclosure.
US 2020/0273048 A1 (“Andon”) discloses: Presented are cryptographic digital assets for retail products, methods for making/using such cryptographic digital assets, and computing systems for generating, intermingling, and exchanging blockchain-protected products. A method for provisioning cryptographic digital assets associated with retail product transfers includes broadcasting notifications of a future transaction of a retail product, and receiving, over a distributed computing network from the computing devices of multiple users, requests to participate in the transaction. A select number of users is added to a virtual line associated with the retail product transaction; from the virtual line, a first user is selected to receive the retail product and a second user is selected to receive a cryptographic digital asset containing a digital retail product and a unique digital asset code. The cryptographic digital asset is transferred to the second user's digital wallet, and the unique digital asset code is recorded on a record block of a blockchain ledger.
US 2021/0248594 A1 (“Yantis”) discloses: Systems, methods, platforms, and devices that generate, store, transact, transfer, exchange, and/or otherwise process digital tokens are described. In embodiments, systems, methods, platforms, and devices obtain an identifier for an item that includes a set of item attributes, generate a digital token including a set of digital attributes that correspond to the set of item attributes, and cryptographically link the digital token to one or more units of the item. The digital token may be transferred, exchanged, redeemed, or otherwise transacted, which provides both the flexibility and convenience of virtual item transactions and the reliability and value of physical item transactions.
Any inquiry concerning this communication or earlier communications from the examiner should be directed to Ari Shahabi whose telephone number is (571)272-2565. The examiner can normally be reached M-F: 8:00-5:00.
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/ARI SHAHABI/Primary Examiner, Art Unit 3697
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