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 .
DETAILED ACTION
2. This Final Office action is in response to the application filed on August 14th, 2024 and in response to Applicant’s Arguments/Remarks filed on September 4th, 2026. Claims 1-20 are pending.
Priority
3. Application 18/804,795 was filed on August 14th, 2024 which has a provisional application 63/532,580 filed on August 14th, 2023.
Examiner Request
4. The Applicant is requested to indicate where in the specification there is support for amendments to claims should Applicant amend. The purpose of this is to reduce potential 35 U.S.C. §112(a) or §112 1st paragraph issues that can arise when claims are amended without support in the specification. The Examiner thanks the Applicant in advance.
Claim Objections
5. Claims 14 and 17 are objected to because of the following informalities:
Claim 14 recites, “A system for tracking inventory and material costs and providing repair estimates, the repair estimates being for construction repair jobs, the method comprising:” Examiner notes that it appears the recitation of the method is a typographical error and it should read “A system for tracking inventory and material costs and providing repair estimates, the repair estimates being for construction repair jobs, the system comprising:”
Claim 14 further recites “configured to weight inventory” where Examiner notes it should read “configured to weigh inventory.”
6. Claim 17 recites, “wherein the third party estimate system includes a repair cost estimate based on an Xactimate repair cost estimate.” Examiner notes that it should recite “wherein the third party estimate system includes the repair cost estimate based on an Xactimate repair cost estimate” to clarify the antecedent relationship.
Appropriate correction is required.
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.
7. Claims 17-20 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 applications subject to pre-AIA 35 U.S.C. 112, the applicant), regards as the invention.
Claim 17 contains the trademark/trade name Xactimate. Where a trademark or trade name is used in a claim as a limitation to identify or describe a particular material or product, the claim does not comply with the requirements of 35 U.S.C. 112(b) or 35 U.S.C. 112 (pre-AIA ), second paragraph. See Ex parte Simpson, 218 USPQ 1020 (Bd. App. 1982). The claim scope is uncertain since the trademark or trade name cannot be used properly to identify any particular material or product. A trademark or trade name is used to identify a source of goods, and not the goods themselves. Thus, a trademark or trade name does not identify or describe the goods associated with the trademark or trade name. In the present case, the trademark/trade name is used to identify/describe advanced software platform and, accordingly, the identification/ description is indefinite.
Response to Arguments
8. Applicant requests reconsideration of the rejection under 35 U.S.C. §101 in view of the amendments to the claims. The amendments have been considered but do not overcome the rejection. In particular, amended claim1 recites that the status of one or more inventory items is determined based on a remote weight sensor in communication with the inventory tracking system and further recites setting aside the one or more items. The remote weight sensor is used to obtain information regarding inventory status for use in the clamed inventory-management and repair-cost-estimation process. The claim does not recite an improvement to the operation of the sensor, the inventory tracking system, or another computer or technological process. Rather, the sensor supplies information used in carrying out the claimed process. The claims use this inventory-related information as inputs to the claimed cost-estimation process. Consequently, the claims do not integrate the judicial exception into a practical application.
9. Applicant states that the prior art doesn’t disclose the amended claim limitations. Examiner disagrees with the applicant’s conclusion that the pending claims as amended are in condition for allowance, as the amended claims have been considered but applicant’s arguments are moot in view of the new ground(s) of rejection below.
Claim Rejections - 35 USC § 101
35 U.S.C. 101 reads as follows:
Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.
10. Claims 1-20 are rejected under 35 U.S.C. 101 because the claimed invention is directed to judicial exception (i.e., a law of nature, a natural phenomenon, or an abstract idea) without significantly more. Claims 1-20 are directed to a system and method which are one of the statutory categories of invention. (Step 1: YES).
Claims 1, 14, and 17 are rejected under 35 U.S.C. 101 because the claimed invention is directed to an abstract idea without significantly more. The claims recite calculating a more precise cost estimate/quote for a proposed repair job, including for insurance purposes. (See, Spec. ¶¶ 003-004).
Claims 1 and 14 (Claim 1 being representative) recites the following limitations:
A method performed […] for deriving repair costs for a proposed repair job, wherein the proposed repair job is a construction job, the method comprising:
tracking inventory cost and status for one or more items used in repairs;
tracking equipment cost and status for one or more items used in repairs, wherein the status of the one or more items used in repairs is determined based on weight;
receiving a repair job;
determining materials costs for the repair job;
determining equipment costs for the repair job;
determining a number of worker hours needed for the repair job;
determining a retail labor rate related to the repair job, wherein the retail labor rate comprises worker wages, labor burden and labor overhead;
adjusting the labor overhead portion of the retail labor rate, wherein the labor overhead portion is adjusted based on one or more data sources containing individualized company data tracked […];
calculating a repair estimate for the repair job based at least in part on the material costs, the equipment costs, the worker hours, and the retail labor rate, wherein the retail labor rate is based on the adjusted labor overhead; and
setting aside the one or more items.
Claim 17 recites the following limitations:
A method performed by an inventory tracking system for deriving repair costs for a proposed repair job, the method comprising:
receiving a repair cost estimate […] related to a repair job, wherein […] the […] repair cost estimate [is] based on an Xactimate repair cost estimate;
adjusting the received repair cost estimate by adjusting a labor overhead portion of a retail labor rate, wherein the labor overhead portion is adjusted based on one or more data sources containing individualized company data […]; and
setting aside items needed to perform the proposed repair job.
These limitations as drafted are processes that, under the broadest reasonable interpretation, cover certain methods of organizing human activity but for recitation of a computer for real time data tracking/processing (claims 1, 14, and 17), a remote weight sensor in communication with the inventory tracking system (claim 1), processing circuitry, memory, and an inventory weight system configured to weigh inventory (claim 14), and a third-party estimate system (claim 17), the claimed invention amounts to commercial interactions that involve sales activities or behaviors for purchasing goods or services, namely calculating a price/cost for repair services for a proposed repair job based on a determination of various cost factors associated with inventory items, equipment, materials, associated labor hours/retail labor rate, etc. needed for the job, and based on an adjusted labor overhead rate used to determine the retail labor rate for the proposed repair job and administratively reserving the inventory. If a claim limitation, under its broadest reasonable interpretation, cover commercial interactions but for the recitation of generic computer components (see MPEP 2106.04(a)(2)(II)), then it falls within the “certain methods of organizing human activity” grouping of abstract ideas. Accordingly, claims 1, 14, and 17 recite an abstract idea. (Step 2A- Prong 1: YES. The claims recite an abstract idea).
This judicial exception is not integrated into a practical application. The additional elements that are recited are a computer for real time data tracking/processing (claims 1, 14, and 17), processing circuitry, memory, and a third-party estimate system (claim 17). These additional elements are recited at a high-level of generality (i.e., generic computer components performing generic computer functions) such that they amount no more than mere instructions to apply the exception using generic computer components. The recited computer for real time data tracking merely identifies the source and timing of information used in the economic calculation. The claim does not recite any improvement in the operation of the computer, sensor, inventory weight system, or associated data-processing technology. Although claims 1 and 14 specify obtaining inventory information using weight sensing, they do not recite an improvement to weight-sensing technology or to the manner in which the computer processes the sensed information. Rather, the resulting inventory information is used as input to the claimed inventory-management and repair-cost-estimation process. The remote weight sensor in communication with the inventory tracking system (claim 1) and inventory weight system configured to weigh inventory (claim 14) do not change how the claimed repair estimate is calculated or improve the operation of the sensor or computer system. Rather the sensor or inventory weight system obtains physical inventory information from which inventory status is determined, and that information is subsequently used in carrying out the claimed inventory management and repair cost estimation process. Thus, these additional elements amount to mere data gathering used to supply information to the claimed process, specifically insignificant extra-solution activity (MPEP 2106.05(g)). Accordingly, these additional elements, when considered separately and as an ordered combination, do not integrate the abstract idea into a practical application because they do not impose any meaningful limits on practicing the abstract idea. Claims 1, 14, and 17 are directed to an abstract idea without a practical application. (Step 2A-Prong 2: NO: the additional claimed elements are not integrated into a practical application).
With respect to Step 2B, the additional elements, considered individually and as an ordered combination, do not amount to significantly more than the judicial exception. The computer, processing circuitry, memory, and third-party estimate system are recited at a high level of generality and perform their ordinary functions of receiving, storing, processing, and communicating information. The Specification likewise describes the computing components in generic terms and does not indicate that a specialized or unconventional computer architecture is required to perform the claimed functions. Mere instructions to apply an exception using a generic computer component cannot provide an inventive concept (“significantly more”). Claims 1 and 14 additionally recite a remote weight sensor and an inventory weight system, respectively. As discussed above, these elements obtain inventory information from which inventory status is determined for subsequent use in the claimed inventory management and repair cost estimation process and constitute insignificant extra-solution activity. The use of weight sensors to determine or monitor inventory quantity/status was well-understood, routine, and conventional activity known in the industry, as evidenced by US 2018/0144288 and US2011/0153466, which demonstrate that the use of weight-based sensing for monitoring inventory was widely prevalent or in common use before the effective filing date. Well-understood, routine, conventional activity cannot provide an inventive concept (“significantly more”). Accordingly, the additional elements, individually and as an ordered combination, do not amount to significantly more (i.e. an inventive concept) than the judicial exception. Thus claims 1, 14, and 17 are not patent eligible. (Step 2B: NO. The claims do not provide significantly more).
The dependent claims simply further refine and limit the abstract idea recited by the independent claims, from which these claims respectively directly or indirectly depend, where the abstract idea is described above.
Claims 2-6, 8-13 and 15 simply further refine the abstract idea by requiring that various inventory and proposed repair service job cost factors such as labor hours, labor rate, material cost, equipment cost and other factors for determining the cost of the repair job. Claim 7 simply further refines the abstract idea by requiring that data for the various cost factors for the repair job estimate/quote is stored. Claims 16 and 18-20 simply further refine the abstract idea by requiring that a repair cost estimate amount is received from a third party, and that the labor overhead for the proposed repair job is then determined based at least on an adjustment to a received labor overhead amount.
The dependent claims recite the additional elements of: at least one “remote server” for storing data, a “mobile phone” which may be executing a “mobile application”, a “local device” used for calculating various costs, a “third party estimate system” that provides cost estimate information, a “local area network”, a “specialized portable device” (See, Spec. ¶ 037, where there is no description of anything that makes the device “specialized.” It simply communicates data queries to/from one or more “remote server” and makes cost calculations using its computing ability based on the data received).These additional elements are again recited at a high-level of generality (i.e., generic computers performing generic computer functions) such that they amount no more than mere instructions to apply the exception using a generic computer components. Even in combination, these additional elements do not integrate the abstract idea into a practical application and do not amount to significantly more than the abstract idea itself.
Thus, neither the independent claims nor the dependent claims, viewed individually and as a whole, including consideration of all the limitations of each claim viewed both individually and in combination, add any additional element or provide any 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, nor do the claims provide something significantly more than the recited abstract idea to which the claims are directed.
Claim Rejections - 35 USC § 103
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 (i.e., changing from AIA to pre-AIA ) 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.
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.
11. Claims 1-16 are rejected under 35 U.S.C. 103 as being unpatentable over Zalta et al. (US 2007/0276743) in view of Ekman (US 2014/0278809) further in view of Prater et al. (US Patent 10,679,181).
As per claim 1
Zalta discloses a method performed by an inventory tracking system for deriving repair costs for a proposed repair job, the method comprising (paragraphs [0015-0018, 0072, and 0120]):
tracking inventory cost and status for one or more items used in repairs (paragraph [0016]: respective electronic inventory information from the database and paragraphs [0088-0090]: For each inventory supply, the present invention preferably enables a user to submit information related to the name, purchase price, number of units, unit type and preferred percentage price markup for a piece of inventory. As described above with regard to equipment, a user can select subinventory item control 608 in order to define sub-inventory items. In a preferred embodiment, when control 608 is selected, any previously submitted inventory items are displayed and selectable, for example, in a list, and the user selects one more items. This effectively assigns a bundle of inventory that can be assigned to any service. The price for a piece of inventory that is submitted by a user preferably represents the actual cost of the inventory. The mark-up value represents a percentage increase over the purchase price of the inventory as desired by the user for profit. In accordance with a preferred embodiment, any good or service provided for resale is considered inventory… In inventory details section 606, the user submits a name for the new inventory item and selects an appropriate unit type (e.g., a pill, fluid or an item). Moreover, the user submits values representing the purchase price of the inventory, the number of units and a preferred markup percentage. Thereafter, the present invention preferably calculates a total cost automatically. When the user is satisfied with the entries, he selects Save/New button control in section 308.);
tracking equipment cost and status for one or more items used in repairs (paragraph [0076]: For each piece of equipment, the present invention preferably enables a user to submit information related to the equipment's purchase price, life and usage such that replacement costs and costs associated with the equipment's operation can be determined. In the example shown in FIG. 5B, equipment usage represents an estimate that is based upon a 2-3 doctor practice generating an annual revenue of approximately $750,000. Of course, one skilled in the art will recognize that this amount can be adjusted to represent equipment usage in other contexts, paragraph [0077] Continuing with reference to FIGS. 5A and 5B, values entered by a user in equipment details section 506, such as purchase price, life of equipment, or the like, are used to determine a value automatically that represents a total service cost as derived per unit of operation. The total service cost variable is preferably referenced as a component of the fee for each procedure in which a respective piece of equipment is used. Moreover, a user can select control 508 to enter a return on equipment profit percent/dollar value on equipment and/or supplies/maintenance, also to be used in the calculation of the total service cost in connection with the respective equipment. Therefore, the total service cost variable represents the replacement cost per use of the equipment plus the cost of operating the equipment per use, plus any profit percent/dollar value identified by the user to make a return on the equipment and/or supplies/maintenance, and paragraphs [0078-0086]);
receiving a repair job (paragraph [0016]: Further, a service module operable to receive from the user and to store in the database electronic service information representing the service, wherein the user selects respective electronic employee information, respective electronic equipment information, and respective electronic inventory information from the database in order to define labor, equipment and inventory used for the service);
determining materials costs for the repair job (paragraph [0089] The price for a piece of inventory that is submitted by a user preferably represents the actual cost of the inventory. The mark-up value represents a percentage increase over the purchase price of the inventory as desired by the user for profit. In accordance with a preferred embodiment, any good or service provided for resale is considered inventory.);
determining equipment costs for the repair job (paragraph [0083] After the user has finished entering information for a new piece of equipment, the user can modify the data, such as illustrated in FIG. 5B. In the example shown in FIG. 5B, the user has selected a microscope for the equipment, with a purchase price of $1,783 and a six year life span. The microscope is estimated to be used 1,065 times per year and, further, includes an annual cost of $100 in maintenance due to cleaning, and an annual cost of $56 in operating supplies (resulting from lens paper and oil and stains). Accordingly, the cost of operation per use has been calculated by the present invention to be 15 and the replacement cost per use is calculated to be 28 . Thus, by factoring in a combined fee of 43 (15 +28 ) per use, the present invention ensures a return on investment related to a cost for operation, and factoring in a cost for replacement.);
determining a number of worker hours needed for the repair job; determining a retail labor rate related to the repair job, wherein the retail labor rate comprises worker wages, labor burden and labor overhead; adjusting the labor overhead portion of the retail labor rate, wherein the labor overhead portion is adjusted (paragraphs [0010] In addition to equipment, costs associated with employees and staff are also, typically, not factored adequately into a calculation of fees for services in the prior art. For example, variables such as wages paid, benefits (e.g., health insurance costs, license costs, dues, profit sharing, or the like), taxes paid by an employer and paid time off (e.g., holidays, vacation and sick leave) are not adequately assessed to calculate fees associated with providing professional services. A calculation should be made for each paid person that represents the sum of the person's gross wages, benefits and taxes paid. That sum should be divided by the number of minutes paid annually to the paid person in order to calculate a value referred to herein, generally, as a salary-per-minute value, [0013] In an effort to determine fees for services that are fair and also accurately represent costs associated with labor to provide professional services, an equation is used to calculate a value, referred to herein, generally, as a "labor rate." For a given service, the labor rate is calculated by multiplying the salary-per-minute value by the soft cost factor, and dividing that product by a percentage (referred to herein, generally, as a "labor percent"), for example, 20%, which sets the labor rate and achieves a desired profit margin. That quotient is preferably multiplied by the estimated or averaged task time (calculated in minutes) to calculate a fair and equitable labor fee for a given service. The labor rate enables the service provider to estimate accurately the costs associated with providing labor for services, and to charge a fair and reasonable fee therefor. Expressed mathematically, a service fee=((salary per minute*soft cost factor)/labor percentage)*task time (in minutes), and [0093] In accordance with a preferred embodiment, the user can select a control, for example, "global overhead" button 715, that enables the user to assign a value that is calculated to add to the total fee for any given service. For example, the value entered, once global overhead button 715 is selected, may be a percentage that is multiplied by total fee for a service, and then added to the total fee to calculate a new total fee. Alternatively, the value entered, once global overhead button 715 is selected, may be a dollar amount that is preferably added to the total service fee. In any case, via the graphical screen controls provided by the present invention, a user can increase (or alternatively, decrease) the total fee for a service by assigning a global overhead value.).
calculating a repair estimate for the proposed repair job based at least in part on the material costs, the equipment costs, the worker hours, and the retail labor rate, wherein the retail labor rate is based on the adjusted labor overhead (paragraphs [0016]Further, a service module operable to receive from the user and to store in the database electronic service information representing the service, wherein the user selects respective electronic employee information, respective electronic equipment information, and respective electronic inventory information from the database in order to define labor, equipment and inventory used for the service. The service module further calculates the fee for the service as a function of the defined labor, equipment, inventory and soft cost factor, [0017] Another feature of the invention includes a labor percent module that is operable to receive from the user a labor percentage value representing a total amount charged for a given service. The labor percentage is attributed to labor, and the service module further calculates the fee as a function of the labor percentage value and [0018] Yet another feature of the invention is an overhead module that is operable to receive from the user an overhead percentage representing a percentage to increase the fee. The service module further calculates the fee as a function of the overhead percentage, and paragraphs [0117-0120]).
Zalta does not specifically teach wherein the proposed repair job is a construction job and labor overhead based on one or more data sources containing individualized company data tracked by a computer in real time.
However in analogous art, Ekman teaches the proposed repair job is a construction job (paragraph [0020]: The data is sorted as ZIP code of the construction location rather than the material seller's ZIP code or the contractor's ZIP code. The goal of the insurance adjustor is to understand the accurate cost to replace or repair the damaged building) and adjusting repair estimate values based on one or more data sources containing individualized company data tracked by a computer in real time (paragraphs [0004]: In one or more embodiments, this data is based on data collected from repair estimates that have been done by actual roofing contractors who have actually performed repairs; data from third-party data sets such; data from material suppliers from companies like Home Depot, Lowes, and others; data from specialty providers of selected products; and materials description information from manufacturers. Some of this data is regularly published, and some is collected in real time. The data might also be associated with a unique geographic area to provide accurate costing information for repairs in that area, [0022] The integrated costing database 120 tracks the current and historical materials pricing data for each product in each geographic area, and [0028] There is a significant advantage of using actual material and price cost data from contractors who have actually purchased materials and labor, and have actually completed repairs on a property within a geographic area. This cost data represents the closest approximation to a "spot" price for materials and labor in that geographic area, and also provides additional related data such as contractor markup, permit fee amounts, and other expenses actually incurred by the contractor. An advantage of incorporating purchasers' data 130 as user data into the integrated costing database 120 is that the more frequently contractors enter their material and labor cost into this data feed, the more accurate contractor repair estimates will become for a geographic area. In addition, the greater the numbers that other contractors enter data into this data feed, the more reliable it will be.).
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 Zalta’s fee/repair-estimate calculation system to use Ekman’s real-time construction contractor/company cost data because Zalta already calculates service fees from labor, equipment, inventory, and overhead, and Ekman teaches that using current real-time material, labor, overhead, marker, and contractor-entered data improves repair estimate accuracy (paragraph [0015]).
Zalta and Ekman do not specifically teach wherein the status of the one or more items is determined based on a remote weight sensor in communication with the inventory tracking system and setting aside the one or more items.
Prater teaches an inventory management system wherein the status of the one or more items is determined based on a remote weight sensor in communication with the inventory tracking system (col. 10, lines 31-39: By using the weight sensor data 220 obtained from the various weight sensors 114(6) in the lanes 108 of the shelf 104, and in some implementations, in conjunction with the non-weight sensor data 222, the inventory management system 216 is able to maintain item data 226 such as inventory levels of a particular item 112 at a particular inventory location 212, generate billing information without manual intervention by a user 116, or provide other functions) and setting aside the one or more items (col. 8, lines 8-23: When a customer order specifying one or more items 112 is received, or as a user 116 progresses through the facility 202, the corresponding items 112 may be selected or “picked” from the inventory locations 212 containing those items 112. In various implementations, item picking may range from manual to completely automated picking. For example, in one implementation, a user 116 may have a list of items 112 they desire and may progress through the facility 202 picking items 112 from inventory locations 212 within the storage area 206 and placing those items 112 into a tote 214. In other implementations, employees of the facility 202 may pick items 112 using written or electronic pick lists derived from customer orders. These picked items 112 may be placed into the tote 214 as the employee progresses through the facility 202).
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 inventory tracking system of Zalta, as modified by Ekman, to utilize Prater’s weight-based inventory monitoring and order-specific picking in order to more quickly and accurately determine current inventory levels and maintain up-to-date inventory information, thereby facilitating the identification and setting aside of available inventory items for a particular service/job (Prater, col. 4, lines 8-17).
As per claim 14
Zalta discloses a system for tracking inventory and material costs and providing repair estimates comprising (paragraphs [0015-0018, 0072, and 0120]):
processing circuitry; and a memory, the memory containing instructions executable by the processing circuitry whereby the system is operative to (paragraph [0060]:
track inventory cost and status for one or more items used in repairs (paragraph [0016]: respective electronic inventory information from the database and paragraphs [0088-0090]: For each inventory supply, the present invention preferably enables a user to submit information related to the name, purchase price, number of units, unit type and preferred percentage price markup for a piece of inventory. As described above with regard to equipment, a user can select subinventory item control 608 in order to define sub-inventory items. In a preferred embodiment, when control 608 is selected, any previously submitted inventory items are displayed and selectable, for example, in a list, and the user selects one more items. This effectively assigns a bundle of inventory that can be assigned to any service. The price for a piece of inventory that is submitted by a user preferably represents the actual cost of the inventory. The mark-up value represents a percentage increase over the purchase price of the inventory as desired by the user for profit. In accordance with a preferred embodiment, any good or service provided for resale is considered inventory… In inventory details section 606, the user submits a name for the new inventory item and selects an appropriate unit type (e.g., a pill, fluid or an item). Moreover, the user submits values representing the purchase price of the inventory, the number of units and a preferred markup percentage. Thereafter, the present invention preferably calculates a total cost automatically. When the user is satisfied with the entries, he selects Save/New button control in section 308.);
track equipment cost and status for one or more items used in repairs (paragraph [0076]: For each piece of equipment, the present invention preferably enables a user to submit information related to the equipment's purchase price, life and usage such that replacement costs and costs associated with the equipment's operation can be determined. In the example shown in FIG. 5B, equipment usage represents an estimate that is based upon a 2-3 doctor practice generating an annual revenue of approximately $750,000. Of course, one skilled in the art will recognize that this amount can be adjusted to represent equipment usage in other contexts, paragraph [0077] Continuing with reference to FIGS. 5A and 5B, values entered by a user in equipment details section 506, such as purchase price, life of equipment, or the like, are used to determine a value automatically that represents a total service cost as derived per unit of operation. The total service cost variable is preferably referenced as a component of the fee for each procedure in which a respective piece of equipment is used. Moreover, a user can select control 508 to enter a return on equipment profit percent/dollar value on equipment and/or supplies/maintenance, also to be used in the calculation of the total service cost in connection with the respective equipment. Therefore, the total service cost variable represents the replacement cost per use of the equipment plus the cost of operating the equipment per use, plus any profit percent/dollar value identified by the user to make a return on the equipment and/or supplies/maintenance, and paragraphs [0078-0086]);
receive a repair job (paragraph [0016]: Further, a service module operable to receive from the user and to store in the database electronic service information representing the service, wherein the user selects respective electronic employee information, respective electronic equipment information, and respective electronic inventory information from the database in order to define labor, equipment and inventory used for the service);
determine materials costs for the repair job (paragraph [0089] The price for a piece of inventory that is submitted by a user preferably represents the actual cost of the inventory. The mark-up value represents a percentage increase over the purchase price of the inventory as desired by the user for profit. In accordance with a preferred embodiment, any good or service provided for resale is considered inventory.);
determine equipment costs for the repair job (paragraph [0083] After the user has finished entering information for a new piece of equipment, the user can modify the data, such as illustrated in FIG. 5B. In the example shown in FIG. 5B, the user has selected a microscope for the equipment, with a purchase price of $1,783 and a six year life span. The microscope is estimated to be used 1,065 times per year and, further, includes an annual cost of $100 in maintenance due to cleaning, and an annual cost of $56 in operating supplies (resulting from lens paper and oil and stains). Accordingly, the cost of operation per use has been calculated by the present invention to be 15 and the replacement cost per use is calculated to be 28 . Thus, by factoring in a combined fee of 43 (15 +28 ) per use, the present invention ensures a return on investment related to a cost for operation, and factoring in a cost for replacement.);
determine a number of worker hours needed for the repair job; determining a retail labor rate related to the repair job, wherein the retail labor rate comprises worker wages, labor burden and labor overhead; adjusting the labor overhead portion of the retail labor rate, wherein the labor overhead portion is adjusted (paragraphs [0010] In addition to equipment, costs associated with employees and staff are also, typically, not factored adequately into a calculation of fees for services in the prior art. For example, variables such as wages paid, benefits (e.g., health insurance costs, license costs, dues, profit sharing, or the like), taxes paid by an employer and paid time off (e.g., holidays, vacation and sick leave) are not adequately assessed to calculate fees associated with providing professional services. A calculation should be made for each paid person that represents the sum of the person's gross wages, benefits and taxes paid. That sum should be divided by the number of minutes paid annually to the paid person in order to calculate a value referred to herein, generally, as a salary-per-minute value, [0013] In an effort to determine fees for services that are fair and also accurately represent costs associated with labor to provide professional services, an equation is used to calculate a value, referred to herein, generally, as a "labor rate." For a given service, the labor rate is calculated by multiplying the salary-per-minute value by the soft cost factor, and dividing that product by a percentage (referred to herein, generally, as a "labor percent"), for example, 20%, which sets the labor rate and achieves a desired profit margin. That quotient is preferably multiplied by the estimated or averaged task time (calculated in minutes) to calculate a fair and equitable labor fee for a given service. The labor rate enables the service provider to estimate accurately the costs associated with providing labor for services, and to charge a fair and reasonable fee therefor. Expressed mathematically, a service fee=((salary per minute*soft cost factor)/labor percentage)*task time (in minutes), and [0093] In accordance with a preferred embodiment, the user can select a control, for example, "global overhead" button 715, that enables the user to assign a value that is calculated to add to the total fee for any given service. For example, the value entered, once global overhead button 715 is selected, may be a percentage that is multiplied by total fee for a service, and then added to the total fee to calculate a new total fee. Alternatively, the value entered, once global overhead button 715 is selected, may be a dollar amount that is preferably added to the total service fee. In any case, via the graphical screen controls provided by the present invention, a user can increase (or alternatively, decrease) the total fee for a service by assigning a global overhead value.).
calculate a repair estimate for the proposed repair job based at least in part on the material costs, the equipment costs, the worker hours, and the retail labor rate, wherein the retail labor rate is based on the adjusted labor overhead (paragraphs [0016]Further, a service module operable to receive from the user and to store in the database electronic service information representing the service, wherein the user selects respective electronic employee information, respective electronic equipment information, and respective electronic inventory information from the database in order to define labor, equipment and inventory used for the service. The service module further calculates the fee for the service as a function of the defined labor, equipment, inventory and soft cost factor, [0017] Another feature of the invention includes a labor percent module that is operable to receive from the user a labor percentage value representing a total amount charged for a given service. The labor percentage is attributed to labor, and the service module further calculates the fee as a function of the labor percentage value and [0018] Yet another feature of the invention is an overhead module that is operable to receive from the user an overhead percentage representing a percentage to increase the fee. The service module further calculates the fee as a function of the overhead percentage, and paragraphs [0117-0120]).
Zalta does not specifically teach wherein the proposed repair job is a construction job and labor overhead based on one or more data sources containing individualized company data tracked by a computer in real time.
However in analogous art, Ekman teaches the proposed repair job is a construction job (paragraph [0020]: The data is sorted as ZIP code of the construction location rather than the material seller's ZIP code or the contractor's ZIP code. The goal of the insurance adjustor is to understand the accurate cost to replace or repair the damaged building) and adjusting repair estimate values based on one or more data sources containing individualized company data tracked by a computer in real time (paragraphs [0004]: In one or more embodiments, this data is based on data collected from repair estimates that have been done by actual roofing contractors who have actually performed repairs; data from third-party data sets such; data from material suppliers from companies like Home Depot, Lowes, and others; data from specialty providers of selected products; and materials description information from manufacturers. Some of this data is regularly published, and some is collected in real time. The data might also be associated with a unique geographic area to provide accurate costing information for repairs in that area, [0022] The integrated costing database 120 tracks the current and historical materials pricing data for each product in each geographic area, and [0028] There is a significant advantage of using actual material and price cost data from contractors who have actually purchased materials and labor, and have actually completed repairs on a property within a geographic area. This cost data represents the closest approximation to a "spot" price for materials and labor in that geographic area, and also provides additional related data such as contractor markup, permit fee amounts, and other expenses actually incurred by the contractor. An advantage of incorporating purchasers' data 130 as user data into the integrated costing database 120 is that the more frequently contractors enter their material and labor cost into this data feed, the more accurate contractor repair estimates will become for a geographic area. In addition, the greater the numbers that other contractors enter data into this data feed, the more reliable it will be.).
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 Zalta’s fee/repair-estimate calculation system to use Ekman’s real-time contractor/company cost data because Zalta already calculates service fees from labor, equipment, inventory, and overhead, and Ekman teaches that using current real-time material, labor, overhead, marker, and contractor-entered data improves repair estimate accuracy (paragraph [0015]).
Zalta and Ekman do not specifically teach an inventory weight system configured to weight inventory, wherein the status of the one or more items used in repairs is based on a determined weight of the inventory using the inventory weight system and set aside the one or more items.
Prater teaches an inventory weight system configured to weight inventory, wherein the status of the one or more items used in repairs is based on a determined weight of the inventory using the inventory weight system (col. 10, lines 31-39: By using the weight sensor data 220 obtained from the various weight sensors 114(6) in the lanes 108 of the shelf 104, and in some implementations, in conjunction with the non-weight sensor data 222, the inventory management system 216 is able to maintain item data 226 such as inventory levels of a particular item 112 at a particular inventory location 212, generate billing information without manual intervention by a user 116, or provide other functions) and setting aside the one or more items (col. 8, lines 8-23: When a customer order specifying one or more items 112 is received, or as a user 116 progresses through the facility 202, the corresponding items 112 may be selected or “picked” from the inventory locations 212 containing those items 112. In various implementations, item picking may range from manual to completely automated picking. For example, in one implementation, a user 116 may have a list of items 112 they desire and may progress through the facility 202 picking items 112 from inventory locations 212 within the storage area 206 and placing those items 112 into a tote 214. In other implementations, employees of the facility 202 may pick items 112 using written or electronic pick lists derived from customer orders. These picked items 112 may be placed into the tote 214 as the employee progresses through the facility 202).
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 Zalta’s system, as modified by Ekman, to utilize Prater’s weight-based inventory monitoring and order-specific picking in order to more quickly and accurately determine current inventory levels and maintain up-to-date inventory information, thereby facilitating the identification and setting aside of available inventory items for a particular service/job (Prater, col. 4, lines 8-17).
As per claim 2
Zalta teaches wherein the material costs, equipment costs, the worker hours, and the retail labor rate for the repair job are determined from data stored remotely on storage servers (Claim 1 and paragraph [0053]: In an alternative embodiment, workstation 104 operates standard web browsing software and communicates with information processor 102. In this alternative embodiment, the features described herein are provided to a user operating workstation 104 via information processor 102 during an active communication session over the internet or other communication network.).
As per claim 3
Zalta teaches wherein the calculation of the repair estimate occurs locally on a device employed by a user to determine the repair costs (paragraph [0053] In a preferred embodiment, a workstation 104 is configured with a software application, which operates as stand-alone executable software, as known in the art. In this way, workstation 104 implements many of the features described herein without a need to maintain a communication session on network 106. Thus, workstation 104 can be "off-line" when the application software is installed thereon.).
As per claim 4
Zalta teaches wherein a remote server calculates the repair estimate using values for the material costs, the equipment costs, the worker hours, and the retail labor rate stored on the remote server (Claim 1 and paragraphs [0053 and 0061]: In an alternative embodiment, workstation 104 operates standard web browsing software and communicates with information processor 102. In this alternative embodiment, the features described herein are provided to a user operating workstation 104 via information processor 102 during an active communication session over the internet or other communication network... Information processor 102 preferably includes a memory equipped with sufficient storage to provide the necessary databases, forums, and other community services as well as acting as a web server).
As per claim 5
Zalta teaches wherein the material costs, equipment costs, the worker hours, and the retail labor rate for the repair job are determined by manual input by a user (paragraphs [0068-0074, 0076-0094]).
As per claim 6
Zalta teaches wherein a computer calculates the repair estimate as part of a process of a computer application (Claim 1 and paragraph [0092]: The present invention preferably uses the respective entries provided in sections 706-714 to calculate a proposed and fair fee value for the service.).
As per claim 7
Zalta teaches wherein the material costs, the equipment costs, the worker hours, and the retail labor rate are stored in memory of servers located on the same local area network as the computer calculating the repair estimate (paragraphs [0052-0053]).
As per claim 8
Zalta teaches wherein the computer calculating the repair estimate queries the servers for values of material costs, the equipment costs, the worker hours, and the retail labor rate when a user requests a repair cost estimate (paragraphs [0052-0061]).
As per claim 9
Zalta teaches wherein a mobile phone calculates the repair estimate by running a mobile application (paragraphs [0053-0054]).
As per claim 10
Zalta teaches wherein the mobile phone determines values of the material costs, the equipment costs, the worker hours, and the retail labor rate by querying remote servers containing that information (paragraphs [0052-0061]).
As per claim 11
Zalta teaches wherein the material costs, the equipment costs, the worker hours, and the retail labor rate are determined by values input by a user (paragraphs [0068-0074, 0076-0094]).
As per claim 12
Zalta teaches wherein a specialized portable device calculates the repair estimate (paragraphs [0053-0054]). (See, Spec. ¶ 037, where there is no description of anything that makes the device “specialized.” It simply communicates data queries to/from one or more “remote server” and makes cost calculations using its computing ability based on the data received).
As per claim 13
Zalta teaches wherein the specialized portable device determines values of the material costs, the equipment costs, the worker hours, and the retail labor rate by querying remote servers containing that information (paragraphs [0052-0061]). (See, Spec. ¶ 037, where there is no description of anything that makes the device “specialized.” It simply communicates data queries to/from one or more “remote server” and makes cost calculations using its computing ability based on the data received).
As per claim 15
Zalta teaches wherein the material costs, the equipment costs, the worker hours, and the retail labor rate are determined by querying a remote server which stores and maintains those values (paragraphs [0052-0061]).
As per claim 16
Zalta teaches adjusting the […] repair cost estimate by adjusting the labor overhead portion of the retail labor rate (paragraph [0093] In accordance with a preferred embodiment, the user can select a control, for example, "global overhead" button 715, that enables the user to assign a value that is calculated to add to the total fee for any given service. For example, the value entered, once global overhead button 715 is selected, may be a percentage that is multiplied by total fee for a service, and then added to the total fee to calculate a new total fee. Alternatively, the value entered, once global overhead button 715 is selected, may be a dollar amount that is preferably added to the total service fee. In any case, via the graphical screen controls provided by the present invention, a user can increase (or alternatively, decrease) the total fee for a service by assigning a global overhead value.).
Zalta does not specifically teach adjusting the received repair cost estimate and receiving a repair cost estimate from a third party estimate system related to a repair job
However in analogous art, Ekman teaches producing and adjusting a repair cost estimate using a third party construction and material cost data(paragraphs [0024: One source of data of construction and material costs comes from third party data sets 126. These are industry-wide data providers that publish material and labor costs on a regular schedule, such as 4 times year, that covers certain for geographic areas. This published data represents cost figures that were as accurate as possible at time they were published, however may be anywhere from a few days to several weeks out of date. Although this data may provide a useful baseline for producing a cost estimate and [0035]: In a preferred embodiment, a weighting 124 is applied to one or more of the data sources to determine an expected final cost estimate amount for a material item cost stored in the integrated costing database 120. The purpose of the weighting is to create a more accurate material and labor estimates for a geographic area by making adjustments of the data sources depending on data characteristics, for example how current the data from the data feed is and recent changes and trends in that same type or related types of data.).
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 Zalta’s fee/repair-estimate calculation system to use Ekman’s real-time contractor/company cost data because Zalta already calculates service fees from labor, equipment, inventory, and overhead, and Ekman teaches that using current real-time material, labor, overhead, marker, and contractor-entered data improves repair estimate accuracy (paragraph [0015]).
12. Claims 17-20 are rejected under 35 U.S.C. 103 as being unpatentable over Zalta et al. (US 2007/0276743) in view of Ekman (US 2014/0278809) in view of Prater et al. (US Patent 10,679,181) further in view of Erickson (US2010/0042556).
As per claim 17
Zalta teaches a method performed by an inventory tracking system for deriving repair costs for a proposed repair job, the method comprising (paragraphs [0015-0018, 0072, and 0120]):
adjusting the […] repair cost estimate by adjusting a labor overhead portion of a retail labor rate, (paragraph [0093] In accordance with a preferred embodiment, the user can select a control, for example, "global overhead" button 715, that enables the user to assign a value that is calculated to add to the total fee for any given service. For example, the value entered, once global overhead button 715 is selected, may be a percentage that is multiplied by total fee for a service, and then added to the total fee to calculate a new total fee. Alternatively, the value entered, once global overhead button 715 is selected, may be a dollar amount that is preferably added to the total service fee. In any case, via the graphical screen controls provided by the present invention, a user can increase (or alternatively, decrease) the total fee for a service by assigning a global overhead value.).
Zalta does not specifically teach adjusting a received repair cost estimate, receiving a repair cost estimate from a third party estimate system related to a repair job and determining the labor overhead based on one or more data sources containing individualized company data tracked by a computer in real time.
However in analogous art, Ekman teaches adjusting the received repair cost estimate and receiving a repair cost estimate from a third party estimate system related to a repair job (paragraphs [0024]: One source of data of construction and material costs comes from third party data sets 126. These are industry-wide data providers that publish material and labor costs on a regular schedule, such as 4 times year, that covers certain for geographic areas. This published data represents cost figures that were as accurate as possible at time they were published, however may be anywhere from a few days to several weeks out of date. Although this data may provide a useful baseline for producing a cost estimate and [0035]: In a preferred embodiment, a weighting 124 is applied to one or more of the data sources to determine an expected final cost estimate amount for a material item cost stored in the integrated costing database 120. The purpose of the weighting is to create a more accurate material and labor estimates for a geographic area by making adjustments of the data sources depending on data characteristics, for example how current the data from the data feed is and recent changes and trends in that same type or related types of data.).
Ekman further teaches adjusting repair estimate values based on one or more data sources containing individualized company data tracked by a computer in real time (paragraphs [0004]: In one or more embodiments, this data is based on data collected from repair estimates that have been done by actual roofing contractors who have actually performed repairs; data from third-party data sets such; data from material suppliers from companies like Home Depot, Lowes, and others; data from specialty providers of selected products; and materials description information from manufacturers. Some of this data is regularly published, and some is collected in real time. The data might also be associated with a unique geographic area to provide accurate costing information for repairs in that area, [0022]: The integrated costing database 120 tracks the current and historical materials pricing data for each product in each geographic area, and [0028]: There is a significant advantage of using actual material and price cost data from contractors who have actually purchased materials and labor, and have actually completed repairs on a property within a geographic area. This cost data represents the closest approximation to a "spot" price for materials and labor in that geographic area, and also provides additional related data such as contractor markup, permit fee amounts, and other expenses actually incurred by the contractor. An advantage of incorporating purchasers' data 130 as user data into the integrated costing database 120 is that the more frequently contractors enter their material and labor cost into this data feed, the more accurate contractor repair estimates will become for a geographic area. In addition, the greater the numbers that other contractors enter data into this data feed, the more reliable it will be.).
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 Zalta’s fee/repair-estimate calculation system to use Ekman’s real-time contractor/company cost data because Zalta already calculates service fees from labor, equipment, inventory, and overhead, and Ekman teaches that using current real-time material, labor, overhead, marker, and contractor-entered data improves repair estimate accuracy (paragraph [0015]).
Zalta and Ekman do not specifically teach wherein the third party estimate system includes a repair cost estimate based on an Xactimate repair cost estimate and setting aside items needed to perform the proposed repair job.
Prater teaches setting aside the one or more items (col. 8, lines 8-23: When a customer order specifying one or more items 112 is received, or as a user 116 progresses through the facility 202, the corresponding items 112 may be selected or “picked” from the inventory locations 212 containing those items 112. In various implementations, item picking may range from manual to completely automated picking. For example, in one implementation, a user 116 may have a list of items 112 they desire and may progress through the facility 202 picking items 112 from inventory locations 212 within the storage area 206 and placing those items 112 into a tote 214. In other implementations, employees of the facility 202 may pick items 112 using written or electronic pick lists derived from customer orders. These picked items 112 may be placed into the tote 214 as the employee progresses through the facility 202).
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 inventory tracking system of Zalta, as modified by Ekman, to utilize Prater’s order-specific picking in order to facilitate the identification and setting aside of available inventory items for a particular service/job (Prater, col. 4, lines 8-17).
Erickson further teaches the use of Xactimate-generated estimate information in connection with a third-party estimating process (paragraph [0018]: Project information can be generated using a computer-based estimating application, such as Xactimate.RTM. available from Xactware Solutions, Inc., paragraph [0021]: 3rd party estimator 112 creates a "baseline estimate" for the project. The "baseline estimate" is a complete detailed line item estimate for completing a particular project. The baseline estimate typically includes diagrams, photographs, dimensions and other measurements, and any other information needed to explain the scope of the project. The baseline estimate may also include notes from 3rd party estimator 112 regarding the project. This baseline estimate becomes part of the project description and can be reviewed by bidders prior to placing their bid on a particular project and paragraph [0031] and Figure 3A: 3rd party estimator generates a baseline estimate for the project and enters that baseline estimate into the bid processing system (block 306)).
Therefore, it would have been obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to further modify the third-party estimating system of Zalta, as modified by Ekman and Prater, to utilize Xactimate generated estimate information in providing the repair cost estimate because Erickson teaches the use of Xactimate to generate estimate information and the use of a third-party estimator to provide a detailed baseline estimate for a construction project. The modification would have amounted to using a known computer-based construction-estimating application to provide estimate information for the third-party estimating process, with the predictable result of providing the repair cost estimate using Xactimate-generated estimate information.
As per claim 18
Zalta teaches wherein values for adjusting the labor overhead portion of the retail labor rate are stored on a remote server (paragraphs [0052-0061] and [0068-0074, 0076-0094]).
As per claim 19
Zalta teaches wherein the labor overhead adjustment occurs on the remote server (paragraphs [0052-0061] and [0068-0074, 0076-0094]).
As per claim 20
Zalta teaches wherein the labor overhead adjustment occurs on a device employed by a user, with the values used in calculating the labor overhead adjustment supplied by a remote server (paragraphs [0052-0061] and [0068-0074, 0076-0094]).
Conclusion
13. The prior art made of record and not relied upon is considered pertinent to applicant's disclosure.
Jerome et al. (US Patent Publication 2012/0265648 A1) discloses a system and various methods for determining and calculating various amounts for various factors associated with inventory items for estimated repairs.
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 nonprovisional extension fee (37 CFR 1.17(a)) 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.
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/JESSICA LEMIEUX/ Supervisory Patent Examiner, Art Unit 3626
