Prosecution Insights
Last updated: April 19, 2026
Application No. 19/098,831

DEPLOYING PHYSICAL DIAMOND TOKENS ON A BLOCKCHAIN

Non-Final OA §103§DP
Filed
Apr 02, 2025
Examiner
KHATRI, NILESH B
Art Unit
3699
Tech Center
3600 — Transportation & Electronic Commerce
Assignee
Diamond Standard Inc.
OA Round
1 (Non-Final)
58%
Grant Probability
Moderate
1-2
OA Rounds
3y 2m
To Grant
86%
With Interview

Examiner Intelligence

Grants 58% of resolved cases
58%
Career Allow Rate
99 granted / 170 resolved
+6.2% vs TC avg
Strong +28% interview lift
Without
With
+28.3%
Interview Lift
resolved cases with interview
Typical timeline
3y 2m
Avg Prosecution
28 currently pending
Career history
198
Total Applications
across all art units

Statute-Specific Performance

§101
30.4%
-9.6% vs TC avg
§103
39.7%
-0.3% vs TC avg
§102
6.1%
-33.9% vs TC avg
§112
15.9%
-24.1% vs TC avg
Black line = Tech Center average estimate • Based on career data from 170 resolved cases

Office Action

§103 §DP
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 . Status of Claims This communication is responsive to the submission filed April 8, 2025. Claim 1 is canceled. Claims 2-17 and 21 are new. Claims 2-17 and 21 are pending. Priority Applicant’s claim for the benefit of a prior-filed application under 35 U.S.C. 119(e) or under 35 U.S.C. 120, 121, 365(c), or 386(c) is acknowledged. Information Disclosure Statement The information disclosure statement filed April 2, 2025, fails to comply with 37 CFR 1.98(a)(2), which requires a legible copy of each cited foreign patent document; each non-patent literature publication or that portion which caused it to be listed; and all other information or that portion which caused it to be listed. Specifically, the cited foreign patent document as well as the non-patent literature publications have not been provided. It has been placed in the application file, but the information referred to therein has not been considered. Claim Objections The numbering of claims is not in accordance with 37 CFR 1.126 which requires the original numbering of the claims to be preserved throughout the prosecution. When claims are canceled, the remaining claims must not be renumbered. When new claims are presented, they must be numbered consecutively beginning with the number next following the highest numbered claims previously presented (whether entered or not). Misnumbered claim 21 been renumbered 18. Double Patenting The nonstatutory double patenting rejection is based on a judicially created doctrine grounded in public policy (a policy reflected in the statute) so as to prevent the unjustified or improper timewise extension of the “right to exclude” granted by a patent and to prevent possible harassment by multiple assignees. A nonstatutory double patenting rejection is appropriate where the conflicting claims are not identical, but at least one examined application claim is not patentably distinct from the reference claim(s) because the examined application claim is either anticipated by, or would have been obvious over, the reference claim(s). See, e.g., In re Berg, 140 F.3d 1428, 46 USPQ2d 1226 (Fed. Cir. 1998); In re Goodman, 11 F.3d 1046, 29 USPQ2d 2010 (Fed. Cir. 1993); In re Longi, 759 F.2d 887, 225 USPQ 645 (Fed. Cir. 1985); In re Van Ornum, 686 F.2d 937, 214 USPQ 761 (CCPA 1982); In re Vogel, 422 F.2d 438, 164 USPQ 619 (CCPA 1970); In re Thorington, 418 F.2d 528, 163 USPQ 644 (CCPA 1969). A timely filed terminal disclaimer in compliance with 37 CFR 1.321(c) or 1.321(d) may be used to overcome an actual or provisional rejection based on nonstatutory double patenting provided the reference application or patent either is shown to be commonly owned with the examined application, or claims an invention made as a result of activities undertaken within the scope of a joint research agreement. See MPEP § 717.02 for applications subject to examination under the first inventor to file provisions of the AIA as explained in MPEP § 2159. See MPEP § 2146 et seq. for applications not subject to examination under the first inventor to file provisions of the AIA . A terminal disclaimer must be signed in compliance with 37 CFR 1.321(b). The filing of a terminal disclaimer by itself is not a complete reply to a nonstatutory double patenting (NSDP) rejection. A complete reply requires that the terminal disclaimer be accompanied by a reply requesting reconsideration of the prior Office action. Even where the NSDP rejection is provisional the reply must be complete. See MPEP § 804, subsection I.B.1. For a reply to a non-final Office action, see 37 CFR 1.111(a). For a reply to final Office action, see 37 CFR 1.113(c). A request for reconsideration while not provided for in 37 CFR 1.113(c) may be filed after final for consideration. See MPEP §§ 706.07(e) and 714.13. The USPTO Internet website contains terminal disclaimer forms which may be used. Please visit www.uspto.gov/patent/patents-forms. The actual filing date of the application in which the form is filed determines what form (e.g., PTO/SB/25, PTO/SB/26, PTO/AIA /25, or PTO/AIA /26) should be used. A web-based eTerminal Disclaimer may be filled out completely online using web-screens. An eTerminal Disclaimer that meets all requirements is auto-processed and approved immediately upon submission. For more information about eTerminal Disclaimers, refer to www.uspto.gov/patents/apply/applying-online/eterminal-disclaimer. Claims 2-18 are rejected on the ground of nonstatutory double patenting as being unpatentable over claims 1-17 of U.S. Patent No. 12,293,357. Although the claims at issue are not identical, they are not patentably distinct from each other because: Claims 2, 10, and 18 ‘357 Patent A method comprising: Claim 1: A method comprising: interrelating tokens of two separate blockchain data structures and a physical diamond commodity, the physical diamond commodity including a secured container that houses one or more diamonds, a plurality of visual taggants, an encryption chip, the two separate blockchain data structures including an issuance blockchain and a cryptocurrency blockchain, the issuance blockchain including a cryptographic token that corresponds to the physical diamond commodity and the cryptocurrency blockchain including currency backed by the physical diamond commodity; Claim 1: interrelating tokens of two separate blockchain data structures and a physical diamond commodity, the physical diamond commodity including a secured container that houses one or more diamonds, a plurality of visual taggants, an encryption chip, the two separate blockchain data structures including an issuance blockchain and a cryptocurrency blockchain, the issuance blockchain including a cryptographic token that corresponds to the physical diamond commodity and the cryptocurrency blockchain including currency backed by the physical diamond commodity; wherein the cryptographic token is indicative of a single physical diamond commodity of multiple physical diamond commodities such that a one-to-one correspondence exists between the cryptographic token and the physical diamond commodity, and Claim 1: wherein the cryptographic token is indicative of a single physical diamond commodity of multiple physical diamond commodities such that a one-to-one correspondence exists between the cryptographic token and the physical diamond commodity, and wherein the currency of the cryptocurrency blockchain has a variable exchange rate with the cryptographic token; Claim 1: wherein the currency of the cryptocurrency blockchain has a variable exchange rate with the cryptographic token; generating a smart contract on the issuance blockchain configured to enable a cryptographic event in response to: a verification of the physical diamond commodity and availability of a private cryptographic key currently associated with the secured container; and Claim 1: generating a smart contract on the issuance blockchain configured to enable a cryptographic event in response to: a verification of the physical diamond commodity based on an initial visual layout received of the secured container and availability of a private cryptographic key currently associated with the secured container; and writing the smart contract to the issuance blockchain. Claim 1: writing the smart contract to the issuance blockchain. Claims 3 and 11 ‘357 Patent wherein the cryptographic event includes an exchange of the cryptographic token and the currency of the cryptocurrency blockchain. Claim 2: wherein the cryptographic event includes an exchange of the cryptographic token and the currency of the cryptocurrency blockchain. Claims 4 and 12 ‘357 Patent wherein the exchange comprises transferring the cryptographic token from the issuance blockchain to the cryptocurrency blockchain. Claim 3: wherein the exchange comprises transferring the cryptographic token from the issuance blockchain to the cryptocurrency blockchain. Claims 5 and 13 ‘357 Patent wherein the cryptographic event comprises attaching a lien to the cryptographic token. Claim 4: wherein the cryptographic event comprises attaching a lien to the cryptographic token. Claims 6 and 14 ‘357 Patent wherein the cryptographic event includes transferring the cryptographic token from a first cryptographic wallet to a second cryptographic wallet. Claim 5: wherein the cryptographic event includes transferring the cryptographic token from a first cryptographic wallet to a second cryptographic wallet. Claims 7 and 15 ‘357 Patent wherein the verification of the physical diamond commodity is performed by an optical capture system of a mobile device. Claim 6: wherein the verification of the physical diamond commodity is performed by an optical capture system of a mobile device. Claims 8 and 16 ‘357 Patent receiving, from the mobile device, an initial visual layout of the secured container; Claim 7: receiving, from the mobile device, an initial visual layout of the secured container; receiving, from the mobile device, a current visual layout of the secured container captured using the optical capture system; and Claim 7: receiving, from the mobile device, a current visual layout of the secured container captured using the optical capture system; and performing a validation of the current visual layout by comparing the initial visual layout to the current visual layout. Claim 7: performing a validation of the current visual layout by comparing the initial visual layout to the current visual layout. Claims 9 and 17 ‘357 Patent capturing the initial visual layout using the optical capture system of the mobile device at the time the cryptographic token is issued. Claim 8: capturing the initial visual layout using the optical capture system of the mobile device at the time the cryptographic token is issued. Claims 1-18 are rejected on the ground of nonstatutory double patenting as being unpatentable over claims 1-26 of U.S. Patent No. 11,928,674 in view of U.S. Patent Pub. No. 2021/0248594 to Yantis et al. Claims 2, 10, and 18 ‘674 Patent A method comprising: Claim 1: A method comprising: interrelating tokens of two separate blockchain data structures and a physical diamond commodity, the physical diamond commodity including a secured container that houses one or more diamonds, a plurality of visual taggants, an encryption chip, the two separate blockchain data structures including an issuance blockchain and a cryptocurrency blockchain, the issuance blockchain including a cryptographic token that corresponds to the physical diamond commodity and the cryptocurrency blockchain including currency backed by the physical diamond commodity; Claim 1: interrelating tokens of two separate blockchain data structures and a physical diamond commodity, the physical diamond commodity including a secured container that houses one or more diamonds, a plurality of visual taggants, an encryption chip, the two separate blockchain data structures include an issuance blockchain and a cryptocurrency blockchain, the issuance blockchain including a cryptographic token that corresponds to the physical diamond commodity and the cryptocurrency blockchain including currency backed by the physical diamond commodity; generating a smart contract on the issuance blockchain configured to enable a cryptographic event in response to: a verification of the physical diamond commodity and availability of a private cryptographic key currently associated with the secured container; and Claim 1: generating a smart contract on the issuance blockchain that incorporates the initial visual layout of the secured container, the generated smart contract configured to enable a transaction associated with the cryptographic token of the issuance blockchain in response to an authorization including: a first validation of a current visual layout of the secured container received from an optical capture system of a mobile device and the initial visual layout of the secured container, a second validation of the encryption chip of the physical diamond commodity, and availability of a private cryptographic key currently associated with the secured container; and writing the smart contract to the issuance blockchain. Claim 1: writing the smart contract to the issuance blockchain. Yantis wherein the cryptographic token is indicative of a single physical diamond commodity of multiple physical diamond commodities such that a one-to-one correspondence exists between the cryptographic token and the physical diamond commodity, and ¶ 842: In some embodiments, a token represents a single unit to be transacted (e.g., sold, traded, leased, gifted, or the like). For example, if a merchant is selling ten widgets, the platform 100 may generate ten tokens, where each token corresponds to a different widget. In this scenario, all ten widgets may correspond to the same virtual representation of the widget, and the ten tokens may represent instances of the virtual representation (also referred to as a “virtual asset”). wherein the currency of the cryptocurrency blockchain has a variable exchange rate with the cryptographic token; ¶ 869: For example, the seller may provide additional media contents, may alter the price, and/or may update the number of items that are available. Claims 3 and 11 Yantis wherein the cryptographic event includes an exchange of the cryptographic token and the currency of the cryptocurrency blockchain. ¶ 910: In embodiments, the transaction system 106 includes a payment integration system 412. The payment integration system 412 allows a user to purchase a token corresponding to an item. The payment integration system 412 may accept credit cards, different forms of currency, and/or cryptocurrency. Claims 4 and 12 ‘674 Patent wherein the exchange comprises transferring the cryptographic token from the issuance blockchain to the cryptocurrency blockchain. Claim 6: wherein the transaction comprises transferring the cryptographic token from the issuance blockchain to the cryptocurrency blockchain. Claims 5 and 13 ‘674 Patent wherein the cryptographic event comprises attaching a lien to the cryptographic token. Claim 7: wherein the transaction comprises attaching a lien to the cryptographic token. Claims 6 and 14 ‘674 Patent wherein the cryptographic event includes transferring the cryptographic token from a first cryptographic wallet to a second cryptographic wallet. Claim 5: wherein the transaction comprises transferring the cryptographic token from a first cryptographic wallet to a second cryptographic wallet. Claims 7 and 15 ‘674 Patent wherein the verification of the physical diamond commodity is performed by an optical capture system of a mobile device. Claim 1: a first validation of a current visual layout of the secured container received from an optical capture system of a mobile device and the initial visual layout of the secured container, Claims 8 and 16 ‘674 Patent receiving, from the mobile device, an initial visual layout of the secured container; Claim 1: receiving an initial visual layout of the secured container; receiving, from the mobile device, a current visual layout of the secured container captured using the optical capture system; and Claim 1: a first validation of a current visual layout of the secured container received from an optical capture system of a mobile device performing a validation of the current visual layout by comparing the initial visual layout to the current visual layout. Claim 1: a first validation of a current visual layout of the secured container received from an optical capture system of a mobile device and the initial visual layout of the secured container, Claims 9 and 17 ‘674 Patent capturing the initial visual layout using the optical capture system of the mobile device at the time the cryptographic token is issued. Claim 4: capturing the initial visual layout using the optical capture system of the mobile device. Claims 1-18 are rejected on the ground of nonstatutory double patenting as being unpatentable over claims 1-19 of U.S. Patent No. 11,580,536 in view of U.S. Patent Pub. No. 2021/0248594 to Yantis et al. Claims 2, 10, and 18 ‘536 Patent A method comprising: Claim 1: A method comprising: the physical diamond commodity including a secured container that houses one or more diamonds, a plurality of visual taggants, an encryption chip, Claim 1: the physical diamond commodity including a secured container that houses one or more diamonds, a plurality of visual taggants, and an encryption chip, generating a smart contract on the issuance blockchain configured to enable a cryptographic event in response to: a verification of the physical diamond commodity and availability of a private cryptographic key currently associated with the secured container; and Claim 1: generating a smart contract using the first public key, the second public key, and the initial visual layout of the secured container, the generated smart contract configured to enable a transaction associated with the cryptographic token in response to an authorization including: a validation of a current visual layout of the secured container received from the optical system of the cabinet against the initial visual layout of the secured container, the first private key received from the encryption chip of the physical diamond commodity, and the second private key associated with the owner of the physical diamond commodity; and writing the smart contract to the issuance blockchain. Claim 1: writing the smart contract to a blockchain. Yantis interrelating tokens of two separate blockchain data structures and a physical diamond commodity, ¶ 899: Referring now to FIG. 7A, an illustration of a wallet 700 display is shown. The display of the wallet 700 includes a plurality of tokens, such as tokenized tokens 702 a-702 n (generally 702), non-fungible tokens 704 a-704 n (generally 704), and fungible tokens 706 a-706 n (generally 706). As can be seen, in embodiments, the tokens are grouped by token type. The tokenized tokens 702 may include displayed indicia 703 communicating the type and, in embodiments, the amount of particular contents 705 contained within the respective tokenized token 702. For example, the user's Bitcoin within the platform 100 may split among a fungible token 706 a balance and one or more tokenized tokens 702 a. Moreover, the fungible Bitcoin 706 a may be a consolidated balance of the user's fungible bitcoin 706 a, or may be separate balances (e.g., balance equal to amount of bitcoin transferred into the platform 100 in a single transaction). See also ¶ 831: The ecommerce platform may be configured to support additional or alternative ecosystems. In embodiments, the tokenization platform is configured to support a token-based lending system, whereby lenders may create virtual items corresponding to collateral (e.g., jewelry, collectible items, artwork, and the like). The ecommerce platform may tokenize the virtual item and may store the token on a distributed ledger. In this way, the loan may be sold and only the token needs to be transferred between lenders. In some embodiments, a smart contract may be used to manage the loan, possession of the token, and other transactions corresponding to the loan. the two separate blockchain data structures including an issuance blockchain and a cryptocurrency blockchain, the issuance blockchain including a cryptographic token that corresponds to the physical diamond commodity and the cryptocurrency blockchain including currency backed by the physical diamond commodity; ¶ 899: Referring now to FIG. 7A, an illustration of a wallet 700 display is shown. The display of the wallet 700 includes a plurality of tokens, such as tokenized tokens 702 a-702 n (generally 702), non-fungible tokens 704 a-704 n (generally 704), and fungible tokens 706 a-706 n (generally 706). As can be seen, in embodiments, the tokens are grouped by token type. The tokenized tokens 702 may include displayed indicia 703 communicating the type and, in embodiments, the amount of particular contents 705 contained within the respective tokenized token 702. For example, the user's Bitcoin within the platform 100 may split among a fungible token 706 a balance and one or more tokenized tokens 702 a. Moreover, the fungible Bitcoin 706 a may be a consolidated balance of the user's fungible bitcoin 706 a, or may be separate balances (e.g., balance equal to amount of bitcoin transferred into the platform 100 in a single transaction). See also ¶ 831: The ecommerce platform may be configured to support additional or alternative ecosystems. In embodiments, the tokenization platform is configured to support a token-based lending system, whereby lenders may create virtual items corresponding to collateral (e.g., jewelry, collectible items, artwork, and the like). The ecommerce platform may tokenize the virtual item and may store the token on a distributed ledger. In this way, the loan may be sold and only the token needs to be transferred between lenders. In some embodiments, a smart contract may be used to manage the loan, possession of the token, and other transactions corresponding to the loan. wherein the cryptographic token is indicative of a single physical diamond commodity of multiple physical diamond commodities such that a one-to-one correspondence exists between the cryptographic token and the physical diamond commodity, and ¶ 842: In some embodiments, a token represents a single unit to be transacted (e.g., sold, traded, leased, gifted, or the like). For example, if a merchant is selling ten widgets, the platform 100 may generate ten tokens, where each token corresponds to a different widget. In this scenario, all ten widgets may correspond to the same virtual representation of the widget, and the ten tokens may represent instances of the virtual representation (also referred to as a “virtual asset”). wherein the currency of the cryptocurrency blockchain has a variable exchange rate with the cryptographic token; ¶ 869: For example, the seller may provide additional media contents, may alter the price, and/or may update the number of items that are available. Claims 3 and 11 Yantis wherein the cryptographic event includes an exchange of the cryptographic token and the currency of the cryptocurrency blockchain. ¶ 910: In embodiments, the transaction system 106 includes a payment integration system 412. The payment integration system 412 allows a user to purchase a token corresponding to an item. The payment integration system 412 may accept credit cards, different forms of currency, and/or cryptocurrency. Claims 4 and 12 ‘536 Patent wherein the exchange comprises transferring the cryptographic token from the issuance blockchain to the cryptocurrency blockchain. Claim 6: wherein the blockchain is a first blockchain, and wherein the transaction comprises transferring the cryptographic token from the first blockchain to a second blockchain. Claims 5 and 13 ‘536 Patent wherein the cryptographic event comprises attaching a lien to the cryptographic token. Claim 7: wherein the transaction comprises attaching a lien to the cryptographic token. Claims 6 and 14 ‘536 Patent wherein the cryptographic event includes transferring the cryptographic token from a first cryptographic wallet to a second cryptographic wallet. Claim 5: wherein the transaction comprises transferring the cryptographic token from the first cryptographic wallet to a second cryptographic wallet. Claims 7 and 15 ‘536 Patent wherein the verification of the physical diamond commodity is performed by an optical capture system of a mobile device. Claim 1: a validation of a current visual layout of the secured container received from the optical system of the cabinet against the initial visual layout of the secured container, Claims 8 and 16 ‘536 Patent receiving, from the mobile device, an initial visual layout of the secured container; Claim 1: receiving an initial visual layout of the secured container; receiving, from the mobile device, a current visual layout of the secured container captured using the optical capture system; and Claim 1: a validation of a current visual layout of the secured container received from the optical system of the cabinet against the initial visual layout of the secured container, performing a validation of the current visual layout by comparing the initial visual layout to the current visual layout. Claim 1: a validation of a current visual layout of the secured container received from the optical system of the cabinet against the initial visual layout of the secured container, Claims 9 and 17 ‘536 Patent capturing the initial visual layout using the optical capture system of the mobile device at the time the cryptographic token is issued. Claim 3: querying the cabinet for the initial visual layout, wherein the cabinet uses the optical system to determine the initial visual layout in response to the query. 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. The factual inquiries for establishing a background for determining obviousness under 35 U.S.C. 103 are summarized as follows: 1. Determining the scope and contents of the prior art. 2. Ascertaining the differences between the prior art and the claims at issue. 3. Resolving the level of ordinary skill in the pertinent art. 4. Considering objective evidence present in the application indicating obviousness or nonobviousness. Claim(s) 2-3, 5-7, 10-11, 13-15, and 18 is/are rejected under 35 U.S.C. 103 as being unpatentable over U.S. Patent Pub. No. 2021/0248594 to Yantis et al. in view of U.S. Patent No. 11,074,650 to Madisetti et al. Per Claim 2: Yantis discloses: A method comprising: (see Yantis at Abstract: Systems, methods, platforms, and devices that generate, store, transact, transfer, exchange, and/or otherwise process digital tokens are described.) interrelating tokens of two separate blockchain data structures and a physical [[diamond]] commodity, [[the physical diamond commodity including a secured container that houses one or more diamonds, a plurality of visual taggants,]] an encryption chip, the two separate blockchain data structures including an issuance blockchain and a cryptocurrency blockchain, the issuance blockchain including a cryptographic token that corresponds to the physical diamond commodity and the cryptocurrency blockchain including currency backed by the physical diamond commodity; (Examiner’s Note: the claim language “the physical diamond commodity including a secured container that houses one or more diamonds, a plurality of visual taggants, an encryption chip” has been considered and determined to recite subject matter outside the scope of the claim. Therefore, it fails to receive patentable weight. It is outside the scope of the claim as the details of the physical diamond commodity fail to affect the step of interrelating tokens or any other positively recited step. See Yantis at ¶ 899: Referring now to FIG. 7A, an illustration of a wallet 700 display is shown. The display of the wallet 700 includes a plurality of tokens, such as tokenized tokens 702 a-702 n (generally 702), non-fungible tokens 704 a-704 n (generally 704), and fungible tokens 706 a-706 n (generally 706). As can be seen, in embodiments, the tokens are grouped by token type. The tokenized tokens 702 may include displayed indicia 703 communicating the type and, in embodiments, the amount of particular contents 705 contained within the respective tokenized token 702. For example, the user's Bitcoin within the platform 100 may split among a fungible token 706 a balance and one or more tokenized tokens 702 a. Moreover, the fungible Bitcoin 706 a may be a consolidated balance of the user's fungible bitcoin 706 a, or may be separate balances (e.g., balance equal to amount of bitcoin transferred into the platform 100 in a single transaction). See also ¶ 831: The ecommerce platform may be configured to support additional or alternative ecosystems. In embodiments, the tokenization platform is configured to support a token-based lending system, whereby lenders may create virtual items corresponding to collateral (e.g., jewelry, collectible items, artwork, and the like). The ecommerce platform may tokenize the virtual item and may store the token on a distributed ledger. In this way, the loan may be sold and only the token needs to be transferred between lenders. In some embodiments, a smart contract may be used to manage the loan, possession of the token, and other transactions corresponding to the loan.) wherein the cryptographic token is indicative of a single physical [[diamond]] commodity of multiple physical [[diamond]] commodities such that a one-to- one correspondence exists between the cryptographic token and the physical [[diamond]] commodity, and (see Yantis at ¶ 842: In some embodiments, a token represents a single unit to be transacted (e.g., sold, traded, leased, gifted, or the like). For example, if a merchant is selling ten widgets, the platform 100 may generate ten tokens, where each token corresponds to a different widget. In this scenario, all ten widgets may correspond to the same virtual representation of the widget, and the ten tokens may represent instances of the virtual representation (also referred to as a “virtual asset”).) wherein the currency of the cryptocurrency blockchain has a variable exchange rate with the cryptographic token; (see Yantis at ¶ 869: For example, the seller may provide additional media contents, may alter the price, and/or may update the number of items that are available.) generating a smart contract on the issuance blockchain configured to enable a cryptographic event in response to: a verification of the physical [[diamond]] commodity and availability of a private cryptographic key currently associated with the secured container; and (see Yantis at ¶ 843: In embodiments, each virtual representation of an item may include or be associated with a smart contract that, for example, provides a set of verifiable conditions that must be satisfied in order to self-execute a transaction (e.g., transfer of ownership or expiration) relating to an item represented by the virtual representation. In embodiments, each token corresponding to a virtual representation may be associated with the smart contract that corresponds to the virtual representation. In embodiments, a smart contract corresponding to a virtual representation may define the conditions that must be verified to generate new tokens, conditions that must be verified in order to transfer ownership of tokens, conditions that must be verified to redeem a token, and/or conditions that must be met to destroy a token. A smart contract may also contain code that defines actions to be taken when certain conditions are met. When implicated, the smart contract may determine whether the conditions defined therein are satisfied, and if so, to self-execute the actions corresponding to the conditions. In embodiments, each smart contract may be stored on and accessed on the distributed ledger. See also ¶ 893: In some of these embodiments, the verification system 306 use the received public key and the private key used to encode the digital signature to determine whether the received public key is the public key used to sign the token. For example, in embodiments, the verification system 306 may attempt to decrypt the digital signature using the private key and the received public key. If the private key and the received public key enable decryption of the digital signature to obtain the value used to generate the token, then the verification system 306 may deem the token valid and may notify the requesting system of the verification.) writing the smart contract to the issuance blockchain. (see Yantis at ¶ 843: In embodiments, each virtual representation of an item may include or be associated with a smart contract that, for example, provides a set of verifiable conditions that must be satisfied in order to self-execute a transaction (e.g., transfer of ownership or expiration) relating to an item represented by the virtual representation. In embodiments, each token corresponding to a virtual representation may be associated with the smart contract that corresponds to the virtual representation. In embodiments, a smart contract corresponding to a virtual representation may define the conditions that must be verified to generate new tokens, conditions that must be verified in order to transfer ownership of tokens, conditions that must be verified to redeem a token, and/or conditions that must be met to destroy a token. A smart contract may also contain code that defines actions to be taken when certain conditions are met. When implicated, the smart contract may determine whether the conditions defined therein are satisfied, and if so, to self-execute the actions corresponding to the conditions. In embodiments, each smart contract may be stored on and accessed on the distributed ledger.) However, Yantis fails to disclose but Madisetti, an analogous art of blockchains and diamonds, discloses that the item may be a diamond in a container (see Madisetti at 26:30-39: At a diamond auction, a diamond seller 1750 showcases a parcel 1758 containing rough diamonds to the buyer 1752. The diamonds in the parcel 1758 are fingerprinted and recorded in a blockchain network 1770 as illustrated in FIG. 28. The blockchain network 1770 then issues 1802 a blockchain certificate 1800 for the parcel 1758. The certificate 1880 is attached 1804 to the parcel 1758 and the parcel is then sealed in the presence of the buyer 1752 and seller 1750. The sealed and certified parcel 1850 is then prepared for shipment.) It would have been obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to modify Yantis so that the real-world good is a diamond as disclosed in Madisetti. One of ordinary skill in the art would have been motivated to do so as Yantis suggests using the disclosed system with jewels (see ¶ 936: In some of these embodiments, a user wishing to borrow money can take a collateral item (e.g., a collectible item, jewelry, a firearm, a precious metal, or the like) to a facility affiliated or otherwise supported by the platform 100.) Per Claim 10: Claim 10 recites subject matter similar to that discussed above in connection with claim 2 and does so in the context of a non-transitory computer-readable medium, which Yantis discloses (see ¶ 992: The processor, or any machine utilizing one, may include non-transitory memory that stores methods, codes, instructions and programs as described herein and elsewhere.) Per Claim 18: Claim 18 recites subject matter similar to that discussed above in connection with claim 1 and does so in the context of a system. Claim 18 further recites and Yantis further discloses: A system comprising: a processor; and a memory including instructions that when executed cause the processor to: (see Yantis at ¶ 992: The processor, or any machine utilizing one, may include non-transitory memory that stores methods, codes, instructions and programs as described herein and elsewhere.) Per Claims 3 and 11: The combination of Yantis and Madisetti discloses the subject matter of claims 2 and 10, from which claims 3 and 11 depend, respectively. Yantis further discloses: wherein the cryptographic event includes an exchange of the cryptographic token and the currency of the cryptocurrency blockchain. (see Yantis at ¶ 910: In embodiments, the transaction system 106 includes a payment integration system 412. The payment integration system 412 allows a user to purchase a token corresponding to an item. The payment integration system 412 may accept credit cards, different forms of currency, and/or cryptocurrency.) Per Claims 5 and 13: The combination of Yantis and Madisetti discloses the subject matter of claims 2 and 10, from which claims 5 and 13 depend, respectively. Yantis further discloses: wherein the cryptographic event comprises attaching a lien to the cryptographic token. (see Yantis at ¶ 938: Once the borrower accepts an offer, the collateral management system 802 may instantiate an instance of a smart contract that memorializes the term of the loan and may escrow the collateral token (e.g., no one can redeem the collateral token or transfer the collateral token without complying with the smart contract). The smart contract may indicate the lender, the borrower, the collateral token, the loan amount, a payment schedule, whether the loan is transferrable, when the loan is considered to be in default, ownership rights of the collateral token upon default, and the like. The ledger management system 104 may update the distributed ledger to reflect the smart contract. See also ¶ 966: In some embodiments, the funds remain publicly attributed to the user and the ledger is updated with a hold or lien recorded against the funds to prevent user transaction of the tokenized funds without approval by the platform 100.) Per Claims 6 and 14: The combination of Yantis and Madisetti discloses the subject matter of claims 2 and 10, from which claims 6 and 14 depend, respectively. Yantis further discloses: wherein the cryptographic event includes transferring the cryptographic token from a first cryptographic wallet to a second cryptographic wallet. (see Yantis at ¶ 896: In embodiments, the token transfer system 402 facilitates the transfer of tokens from an account of an owner of the token an account of a different user. In embodiments, token transfer system 402 may include smart contracts that define the conditions under which a token may be transferred. In some of these embodiments, smart contracts may reside in tokens, such that the smart contract may execute at a node computing device and/or from a digital wallet. In some of these embodiments, a smart contract may interface with the token transfer system 402 via a smart contract API that is exposed by the API system 108.) Per Claims 7 and 15: The combination of Yantis and Madisetti discloses the subject matter of claims 2 and 10, from which claims 7 and 15 depend, respectively. Yantis further discloses: wherein the verification of the physical diamond commodity is performed by an optical capture system of a mobile device. (see Yantis at ¶ 936: In some of these embodiments, a user wishing to borrow money can take a collateral item (e.g., a collectible item, jewelry, a firearm, a precious metal, or the like) to a facility affiliated or otherwise supported by the platform 100. At the facility, an employee at the facility may inventory the collateral item using an interface provided by the collateral management system 802. Inventorying the collateral item may include requesting an item identifier for the collateral item, associating the item identifier collateral item with an account of the user (i.e., the owner of the collateral item), taking high resolution photographs of the collateral item, weighting the collateral item using a scale, entering a description of the collateral item, an appraisal of the collateral item, and the like.) Claim(s) 4 and 12 is/are rejected under 35 U.S.C. 103 as being unpatentable over Yantis and Madisetti as applied to claims 2 and 10 above, and further in view of U.S. Patent Pub. No. 2016/0330034 to Back et al. Per Claims 4 and 12: The combination of Yantis and Madisetti discloses the subject matter of claims 2 and 10, from which claims 4 and 12 depend, respectively. However, the combination of Yantis and Madisetti fails to disclose but Back, an analogous art of blockchain transactions, discloses: wherein the exchange comprises transferring the cryptographic token from the issuance blockchain to the cryptocurrency blockchain. (see Back at ¶ 30: The pegged sidechains allow assets that are moved between sidechains to be moved back by whomever the assets' current holder is, and nobody else (including previous holders). A sidechain is a blockchain that validates data from other blockchains. A pegged sidechain is a sidechain whose assets can be imported from and returned to other chains. An exemplary mechanism for moving assets to and from a pegged sidechain is a two-way peg, which allows assets to be transferred to and from sidechains at a fixed or otherwise deterministic exchange rate.) It would have been obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to modify Yantis so that the token representing an object is transferred to a blockchain that is used to fund the purchase of the token as disclosed in Back. One of ordinary skill in the art would have been motivated to do so to enable various cryptocurrencies to be used for the purchase. Claim(s) 8-9 and 16-17 is/are rejected under 35 U.S.C. 103 as being unpatentable over Yantis and Madisetti as applied to claims 7 and 15 above, and further in view of U.S. Patent Pub. No. 2012/0268603 to Sarna, II. Per Claims 8 and 16: The combination of Yantis and Madisetti discloses the subject matter of claims 7 and 15, from which claims 8 and 16 depend, respectively. Yantis further discloses: receiving, from the mobile device, an initial visual layout of the secured container; (see Yantis at ¶ 936: At the facility, an employee at the facility may inventory the collateral item using an interface provided by the collateral management system 802. Inventorying the collateral item may include requesting an item identifier for the collateral item, associating the item identifier collateral item with an account of the user (i.e., the owner of the collateral item), taking high resolution photographs of the collateral item, weighting the collateral item using a scale, entering a description of the collateral item, an appraisal of the collateral item, and the like.) However, the combination of Yantis and Madisetti fails to disclose but Sarna, an analogous art of remote monitoring, discloses: receiving, from the mobile device, a current visual layout of the secured container captured using the optical capture system; and (see Sarna at ¶ 46: As illustrated, security display window 300 includes live video feed 320, video camera location name field 303, parameter name field 301, evaluation test parameters 301 a and 301 b, user selection prompts 305, 306, shift field 302, and date and time fields 307, 308.) performing a validation of the current visual layout by comparing the initial visual layout to the current visual layout. (see Sarna at ¶ 49: For example, although live video feed 320 shows that gate 315 is fully closed and area 304 is clear of vehicles and persons, the security personnel should also take notice that an obstruction 313 is in front of gate 315. Upon inspection of obstruction 313, the security personnel should utilize their judgment, knowledge, and discretion to select user selection prompt 305 to indicate that action is needed despite the fact that the area 304 around gate 315 is technically in compliance with evaluation parameters 301 a and 301 b.) It would have been obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to modify Yantis so that the item is under surveillance using the techniques disclosed in Sarna. One of ordinary skill in the art would have been motivated to do so to ensure that the object is not tampered with. Per Claims 9 and 17: The combination of Yantis, Madisetti, and Sarna discloses the subject matter of claims 8 and 16, from which claims 9 and 17 depend, respectively. Yantis further discloses: capturing the initial visual layout using the optical capture system of the mobile device at the time the cryptographic token is issued. (see Yantis at ¶ 936: At the facility, an employee at the facility may inventory the collateral item using an interface provided by the collateral management system 802. Inventorying the collateral item may include requesting an item identifier for the collateral item, associating the item identifier collateral item with an account of the user (i.e., the owner of the collateral item), taking high resolution photographs of the collateral item, weighting the collateral item using a scale, entering a description of the collateral item, an appraisal of the collateral item, and the like.) Conclusion The prior art made of record and not relied upon is considered pertinent to applicant's disclosure. U.S. Patent No. 10,523,443 discloses authentication and provenance of physical assets may be achieved by attaching a cryptographically strong RFID tag including a physically unclonable function and public-key cryptography logic which implements a digital signature algorithm. The cryptographically strong RFID tag directly participates in a novel implementation of blockchain technology, constructing an indelible and cryptographically provable record of authenticity and provenance with a new level of trustworthiness to protect physical assets. U.S. Patent Pub. No. 2019/0366475 discloses a method of tokenization and use of assets, comprising: a) registering at least one asset on a distributed ledger; b) assigning the at least one asset a fungible or non-fungible token with a public key; c) reading information about the at least one asset using a reading device; d) verifying ownership of the at least one asset using a private key which matches the public key; and, e) performing a transaction with the at least one asset. U.S. Patent Pub. No. 2020/0410509 discloses a supply chain data collection method compatible with standard article coding is disclosed. A general barcode of a commodity and an identification code presented in a plain code manner are arranged in the same identification area on a commodity package, and the identification code is arranged at a non-general barcode dead zone (S1). The identification area is scanned by a code scanning identification system arranged in a supply chain circulation link, and the general barcode and the identification code of the commodity are read and identified to collect the identification information of the commodity (S2). User information and the identification information are associatively stored in a database to realize collection of commodity supply chain data corresponding to the identification information (S3). A foundation is laid for the realization of “one article, one code” anti-counterfeiting traceability. Any inquiry concerning this communication or earlier communications from the examiner should be directed to NILESH B KHATRI whose telephone number is (571)270-7083. The examiner can normally be reached 8:30 AM - 5:30 PM Monday-Friday, alternating Fridays off. Examiner interviews are available via telephone, in-person, and video conferencing using a USPTO supplied web-based collaboration tool. To schedule an interview, applicant is encouraged to use the USPTO Automated Interview Request (AIR) at http://www.uspto.gov/interviewpractice. If attempts to reach the examiner by telephone are unsuccessful, the examiner’s supervisor, Neha Patel can be reached at (571) 270-1492. The fax phone number for the organization where this application or proceeding is assigned is 571-273-8300. Information regarding the status of published or unpublished applications may be obtained from Patent Center. Unpublished application information in Patent Center is available to registered users. To file and manage patent submissions in Patent Center, visit: https://patentcenter.uspto.gov. Visit https://www.uspto.gov/patents/apply/patent-center for more information about Patent Center and https://www.uspto.gov/patents/docx for information about filing in DOCX format. For additional questions, contact the Electronic Business Center (EBC) at 866-217-9197 (toll-free). If you would like assistance from a USPTO Customer Service Representative, call 800-786-9199 (IN USA OR CANADA) or 571-272-1000. /NILESH B KHATRI/Primary Examiner, Art Unit 3699
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Prosecution Timeline

Apr 02, 2025
Application Filed
Mar 07, 2026
Non-Final Rejection — §103, §DP (current)

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Expected OA Rounds
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3y 2m
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