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 . This office action is in response to Applicant’s response filed March 13, 2026
in which claims 1, 7, 9 and 15 are amended. Claims 17-20 are added. Thus, claims 1-20 are pending in the application.
Claim Rejections - 35 USC § 101
35 U.S.C. 101 reads as follows:
2. Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.
Claims 1-20 are rejected under 35 U.S.C. 101 because the claimed invention is directed to an abstract idea without significantly more.
The Examiner has identified independent system Claim 9 as the claim that represents the claimed invention for analysis and is similar to independent Claim 1.
The claims 1-8 and claims 17-18 are directed to a method and claims 9-16 and claims 19-20 are directed to a system which are one of the statutory categories of invention (Step 1: YES).
The claim 9 recites : a memory storing instructions and a predictive machine-learning model trained to identify patterns within a plurality of item level features for a client account and generate a prediction that a transaction is fraudulent for the client account based on a comparison of the identified patterns from the client account with current information from the client account; and a processor operatively connected to the memory and configured to execute the instructions to perform operations including: capturing, by the processor, a plurality of historical transaction data of the client account; extracting, by the processor, the plurality of item level features from the plurality of historical transaction data; providing, by the processor, the plurality of item level features to the predictive machine-learning model; transmitting the prediction to a user interface by the processor; and executing, by the processor and on the client account, transaction decline actions based on the prediction. These limitations (with the exception of italicized portions), under their broadest reasonable interpretation, are a process that covers Certain methods of organizing human activity such as fundamental economic principles or practices (including insurance, mitigating risk, and hedging). Fraud detection using rules-based modeling is a way of mitigating a risk and mitigating a risk is a Fundamental Economic Practice. The claim also recites “a memory storing instructions and a predictive machine-learning model trained to identify patterns”, “a processor operatively connected to the memory” and a user interface which do not necessarily restrict the claim from reciting an abstract idea. That is, other than, the additional elements recited above (in italics), nothing in the claim precludes the steps from being performed as a method of organizing human activity. If the claim limitations, under the broadest reasonable interpretation, covers methods of organizing human activity but for the recitation of generic computer components, then it falls within the “Certain methods of organizing human activity” grouping of abstract ideas. Accordingly, the claim 9 recites an abstract idea (Step 2A: Prong 1: YES).
This judicial exception is not integrated into a practical application. The additional elements of “a memory storing instructions and a predictive machine-learning model trained to identify patterns”, “a processor operatively connected to the memory” and a user interface result in no more than simply applying the abstract idea using generic computer elements. The specification describes the additional elements of “a memory storing instructions and a predictive machine-learning model trained to identify patterns”, “a processor operatively connected to the memory” and a user interface to be generic computer elements (see Fig. 5, [0040]). Hence, the additional elements in the claim are generic components suitably programmed to perform their respective functions. The additional elements of are recited at a high level of generality and under their broadest reasonable interpretation comprises a generic computer arrangement. The presence of a generic computer arrangement is nothing more than mere instructions to implement the abstract idea on a computer (MPEP 2106.05(f)). 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. Hence, the claims as a whole are not integrated into a practical application. Therefore, the claim 9 is directed to an abstract idea (Step 2A - Prong 2: NO).
The claim 9 does not include additional elements that are sufficient to amount to significantly more than the judicial exception because the additional elements of “a memory storing instructions and a predictive machine-learning model trained to identify patterns”, “a processor operatively connected to the memory” and a user interface are recited at a high level of generality in that it results in no more than simply applying the abstract idea using generic computer elements. As discussed above with respect to integration of the abstract idea into a practical application, the additional elements amount to no more than mere instructions to apply the exception using a generic computer component (MPEP 2106.05(f)). The additional elements, when considered separately and as an ordered combination, does not add significantly more (also known as an “inventive concept”) to the exception. The additional elements of the instant underlying process, when taken in combination, together do not amount to significantly more than the sum of the functions of the elements when each is taken alone. Thus, claim 9 is not patent eligible (Step 2B: NO).
Similar analysis can he extended to other independent claim 1 and hence the claims 1 is rejected on similar grounds as claim 9.
Dependent claims 2-8 and 10-20 are held to be patent ineligible under 35 U.S.C. 101 because the additional recited limitations narrow the abstract idea further and thus correspond to Certain Methods of Organizing Human Activity and hence are abstract for the reasons presented above. Dependent claims 3, 6, 8, 11, 14 and 16 do not recite any new additional elements that are not present in independent claims 1 or 9.
Claims 3 and 11 recite the additional elements of an artificial intelligence model. An artificial intelligence model, recited in the claims, is recited at a high level of generality and amounts to generic computer implementation. Hence, it does not integrate the abstract idea into a practical application or provide significantly more than the abstract idea when considered individually and as an ordered combination.
Claims 6 and 14 recite the additional elements of a generative machine-learning model trained to identify patterns. A generative machine-learning model trained to identify patterns, recited in the claims, is recited at a high level of generality and amounts to generic computer implementation. Hence, it does not integrate the abstract idea into a practical application or provide significantly more than the abstract idea when considered individually and as an ordered combination.
Claims 8 and 16 recite the additional elements of a natural language machine-learning model. A natural language machine-learning model, recited in the claims, is recited at a high level of generality and amounts to generic computer implementation. Hence, it does not integrate the abstract idea into a practical application or provide significantly more than the abstract idea when considered individually and as an ordered combination.
Viewing the claim limitations as an ordered combination does not add anything further than looking at the claim limitations individually. When viewed either individually, or as a combination, the additional limitations do not amount to a claim as a whole that is significantly more than the abstract idea. Accordingly, claim(s) 1-20 are ineligible.
Prior art
3. Applicants’ amended claims have overcome the prior art of record and Applicants’ arguments regarding the prior art of record is persuasive; therefore the current art rejection is withdrawn.
Response to Arguments
4. Applicant's arguments filed March 13, 2026 have been fully considered but they are not persuasive due to the following reasons:
5. With respect to the rejection of all claims under 35 U.S.C. 101 (pages 8-10), Applicant argues that, “independent claim 1 recites an improvement in a technology or technical field.”
The Examiner respectfully disagrees. The Examiner would like to point out that according to 2019 Patent Eligibility Guidelines (2019 PEG), limitations that are indicative of integration into a practical application include:
• Improvements to the functioning of a computer, or to any other technology or technical field - see MPEP 2106.05(a)
• Applying or using a judicial exception to effect a particular treatment or prophylaxis for a disease or medical condition - see Vanda Memo
• Applying the judicial exception with, or by use of, a particular machine - see MPEP 2106.05(b)
• Effecting a transformation or reduction of a particular article to a different state or thing -see MPEP 2106.05(c)
• Applying or using the judicial exception in some other meaningful way beyond generally linking the use of the judicial exception to a particular technological environment, such that the claim as a whole is more than a drafting effort designed to monopolize the exception - see MPEP 2106.05(e) and Vanda Memo
In the instant case, the judicial exception is not integrated into a practical application, because none of the above criteria is met. The amendments to the claims only further define the data being used however a specific abstract idea is still an abstract idea. The trained predictive machine-learning model is simply used as a tool to determine the fraud detection. All the features in the Applicant’s claims can at best be considered an improvement in the abstract idea. The advantages over conventional systems are directed towards improving the abstract idea. An improvement in abstract idea is still abstract (SAP America v. Investpic *2-3 (“We may assume that the techniques claimed are “groundbreaking, innovative, or even brilliant,” but that is not enough for eligibility. Association for Molecular Pathology v. Myriad Genetics, Inc., 569 U.S. 576, 591 (2013); accord buySAFE, Inc. v. Google, Inc., 765 F.3d 1350, 1352 (Fed. Cir. 2014). The specification describes the additional elements of “a memory storing instructions and a predictive machine-learning model trained to identify patterns”, “a processor operatively connected to the memory” and a user interface to be generic computer elements (see Fig. 5, [0040]). Hence, the additional elements in the claim are generic components suitably programmed to perform their respective functions. The additional elements are recited at a high level of generality and under their broadest reasonable interpretation comprises a generic computer arrangement. The presence of a generic computer arrangement is nothing more than mere instructions to implement the abstract idea on a computer (MPEP 2106.05(f)). 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. The additional elements of the instant underlying process, when taken in combination, together do not offer substantially more than the sum of the functions of the elements when each is taken alone. Hence, the claims as a whole are not integrated into a practical application.
For these reasons and those discussed in the rejection, the rejections under 35 USC § 101 are maintained.
Examiner Request
6. The Applicant is request 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.
Conclusion
7. Applicant's amendment necessitated the new ground(s) of rejection presented in this Office action. Accordingly, THIS ACTION IS MADE FINAL. See MPEP § 706.07(a). Applicant is reminded of the extension of time policy as set forth in 37 CFR 1.136(a).
A shortened statutory period for reply to this final action is set to expire THREE MONTHS from the mailing date of this action. In the event a first reply is filed within TWO MONTHS of the mailing date of this final action and the advisory action is not mailed until after the end of the THREE-MONTH shortened statutory period, then the shortened statutory period will expire on the date the advisory action is mailed, and any extension fee pursuant to 37 CFR 1.136(a) will be calculated from the mailing date of the advisory action. In no event, however, will the statutory period for reply expire later than SIX MONTHS from the date of this final action.
Any inquiry concerning this communication or earlier communications from the examiner should be directed to BHAVIN SHAH whose telephone number is (571)272-2981. The examiner can normally be reached on M-F 9AM-6PM.
If attempts to reach the examiner by telephone are unsuccessful, the examiner's supervisor, Bennett Sigmond can be reached on 303-297-4411. The fax phone number for the organization where this application or proceeding is assigned is 571-273-8300.
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/B.D.S./Examiner, Art Unit 3694
/BENNETT M SIGMOND/Supervisory Patent Examiner, Art Unit 3694
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