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 .
DETAILED ACTION
RESPONSE TO RESTRICTION
Applicant elects Group I (claims 1-15) without traverse.
Claims 47-51 are new (claim 47 is a system claim) and correspond to the claim limitations in original independent method claim 1.
Claims 1-15, 47-51 are now pending.
Claim Rejections- 35 U.S.C § 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 therefore, subject to the conditions and requirements
of this title.
4. Claims 1-15 and 47-51are rejected under 35 U.S.C. 101 because the claimed invention is directed to an abstract idea without significantly more.
Claims 1, 47, 50 are directed to a method, system and computer readable medium which are statutory categories of invention. (Step 1: YES).
Representative claim 1 recites the limitations of:
A method comprising:
generating a first smart contract corresponding to a debt portfolio comprising a plurality of debts, the first smart contract generating a virtual network layer and a virtual ledger;
storing the first smart contract in the virtual ledger on the virtual network layer;
activating, based on self-executing functions of the first smart contract, a first bot to determine whether each debt in the debt portfolio and an owner of the debt portfolio are compliant with regulations corresponding to the respective debt;
activating, based on the self-executing functions of the first smart contract, a second bot to determine a predicted valuation for the debt portfolio; and
after confirming, by the first bot, that the debt portfolio is compliant with the regulations, and confirming, by the second bot, that the predicted valuation is sufficient for the first smart contract, executing the first smart contract.
These limitations, under their broadest reasonable interpretation, cover performance of
the limitation as certain methods of organizing human activity.
The claim recites elements that are in bold above, which covers performance of the
limitation as a commercial interaction, steps form managing debt portfolio with smart contracts (e.g., generating a first contract corresponding to a debt portfolio comprising a plurality of debts; storing the first contract in the ledger; to determine whether each debt in the debt portfolio and an owner of the debt portfolio are compliant with regulations corresponding to the respective debt; to determine a predicted valuation for the debt portfolio; and after confirming, that the debt portfolio is compliant with the regulations, and confirming, that the predicted valuation is sufficient for the first contract, executing the first contract)
If a claim limitation, under its broadest reasonable interpretation, covers performance of
the limitation as a Commercial Interaction, then it falls within the "Certain Methods of
Organizing Human Activity" grouping of abstract ideas.
Claims 47,50 are abstract for similar reasons.
(Step 2A-Prong 1: YES. The claims are abstract).
This judicial exception is not integrated into a practical application. Limitations that
are not indicative of integration into a practical application include: (1) Adding the words
"apply it" (or an equivalent) with the judicial exception, or mere instructions to implement
an abstract idea on a computer, or merely uses a computer as a tool to perform an
abstract idea (MPEP 2106.05.f), (2) Adding insignificant extra solution activity to the
judicial exception (MPEP 2106.05.g), (3) Generally linking the use of the judicial
exception to a particular technological environment or field of use (MPEP 2106.05.h).
Claims 1, 47, 50 include the following additional elements:
- A smart contract
- A virtual network layer
-A virtual ledger
- A first bot
-A second bot
-A processor
- A memory
-A computer readable medium
The smart contract, virtual network layer, virtual ledger, first bot, second bot, processor, memory and computer readable medium are recited at a high level of generality and are being used in their ordinary capacity and are being used as a tool for implementing the steps of the identified abstract idea, see MPEP 2106.05(f), where applying a computer or using a computer as a tool to perform the abstract idea is not indicative of a practical application.
Therefore, the claim as a whole, looking at the additional elements individually and in combination, are no more than mere instructions to apply the exception using generic computing components and is not a practical application. MPEP 2106.05(f).
The additional elements do not integrate the abstract idea into a practical application because they do not impose any meaningful limits on practicing the abstract idea.
Therefore claims 1, 47,50 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)
Representative claim 1 fails STEP 2B because the claims as a whole, looking at the additional elements individually and in combination, are not sufficient to amount to significantly more than the identified abstract idea.
As discussed above with respect to integration of the abstract idea into a practical application, there are no additional elements recited in the claim beyond the judicial exception. Mere instructions to implement an abstract idea, on or with the use of generic computer components, or even without any computer components, cannot provide an inventive concept - rendering the claim patent ineligible. Thus claims 1,47, 50 are not patent
eligible. (Step 2B: NO. The claims do not provide significantly more)
Dependent claims 2-15, 48-49, 51 further define the abstract idea that is present in their
respective independent claims 1, 47,50 and thus correspond to Certain Methods
of Organizing Human Activity and hence are abstract for the reasons presented above.
Claim 9 further defines the identified abstract idea as recited in claim 1. The additional
element of the artificial intelligence (AI) algorithm is recited a high level of generality, operating in its ordinary capacity, and are being used as a tool to implement the steps of the identified abstract idea, see MPEP 2106.05(f)
Claim 12 further defines the identified abstract idea recited in claim 1.
The additional elements of the first smart contract indicates one or more corporate user nodes is recited a high level of generality, operating in its ordinary capacity, and are being used as a tool to implement the steps of the identified abstract idea.
Therefore, the dependent claims do not include any additional elements that integrate
the abstract idea into a practical application or are sufficient to amount to significantly
more than the judicial exception when considered both individually and as an ordered
combination. Therefore, the dependent claims (2-15, 48-49, 51) are directed to an abstract idea. Thus, the claims 1-15 and 47-51 are not patent-eligible.
Claim Rejections- 35 U.S.C 103
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.
2. Claims 1, 12, 47,50 are being rejected under 35 U.S.C 103(a) as being unpatentable over US 2020/0250753 to Blount in view of US 2022/0198562 to Cella et al, herein Cella.
Regarding claim 1, Blount discloses
A method comprising:
generating a first smart contract corresponding to a debt portfolio comprising a plurality of debts, the first smart contract generating a virtual network layer and a virtual ledger (At least: [0002], [0005], [0032], [0034]);
storing the first smart contract in the virtual ledger on the virtual network layer (At least: [0032]);
activating, based on self-executing functions of the first smart contract, a first bot to determine whether each debt in the debt portfolio and an owner of the debt portfolio are compliant with regulations corresponding to the respective debt (At least: [0054]-[0057]);
activating, based on the self-executing functions of the first smart contract, a second bot to determine a predicted valuation for the debt portfolio (At least: [0005], [0044]
; and
after confirming, by the first bot, that the debt portfolio is compliant with the regulations (At least: [0014],[0021]), and
confirming, by the second bot, that the predicted valuation is sufficient for the first smart contract, executing the first smart contract (At least: [0037]).
Blount discloses a software application to enforce a smart contract on a network (At least: [0015], claim 1).
Blount does not specifically disclose a “first bot” and a “second bot”.
Cella in the same field of endeavor, discloses a loan associated with a smart contract, which is further executed by an automated agent circuit (At least: [1533]).
Therefore it would have been obvious to one of ordinary skill in the art at the effective filing date of the invention to modify Blount’s invention to include a first bot and a second bot in order to ensure that the automated agent circuit may automatically perform an action based on the collateral event (Cella: [1527]).
Regarding claim 12, Blount discloses the method of claim 1. Blount further discloses wherein the first smart contract indicates one or more corporate user nodes purchasing the debt portfolio (At least: [0040]).
Regarding claim 47, Blount discloses a system comprising at least one processor and memory comprising executable instructions which, when executed by the at least one processor, cause the system to (At least: [0015]);
generate a first smart contract corresponding to a debt portfolio comprising a plurality of debts, the first smart contract generating a virtual network layer and a virtual ledger (At least: [0002], [0005], [0032], [0034]);
store the first smart contract in the virtual ledger on the virtual network layer (At least: [0032]);
activate, based on self-executing functions of the first smart contract, a first bot to determine whether each debt in the debt portfolio and an owner of the debt portfolio are compliant with regulations corresponding to the respective debt (At least: [0054]-[0057]);
activate, based on the self-executing functions of the first smart contract, a second bot to determine a predicted valuation for the debt portfolio (At least: [0005], [0044]
; and
after confirming, by the first bot, that the debt portfolio is compliant with the regulations (At least: [0014],[0021]), and
confirming, by the second bot, that the predicted valuation is sufficient for the first smart contract, execute the first smart contract (At least: [0037]).
Blount discloses a software application to enforce a smart contract on a network (At least: [0015], claim 1).
Blount does not specifically disclose a “first bot” and a “second bot”.
Cella in the same field of endeavor discloses a loan associated with a smart contract, which is further executed by an automated agent circuit (At least: [1533]).
Therefore it would have been obvious to one of ordinary skill in the art at the effective filing date of the invention to modify Blount’s invention to include a first bot and a second bot in order to ensure that the automated agent circuit may automatically perform an action based on the collateral event (Cella: [1527]).
Regarding claim 50, Blount discloses a non-transitory computer-readable medium comprising instructions that, when executed by at least one processor, cause the at least one processor to: (At least: [0093], [0094], [0099]);
generate a first smart contract corresponding to a debt portfolio comprising a plurality of debts, the first smart contract generating a virtual network layer and a virtual ledger (At least: [0002], [0005], [0032], [0034]);
store the first smart contract in the virtual ledger on the virtual network layer (At least: [0032]);
activate, based on self-executing functions of the first smart contract, a first bot to determine whether each debt in the debt portfolio and an owner of the debt portfolio are compliant with regulations corresponding to the respective debt (At least: [0054]-[0057]);
activate, based on the self-executing functions of the first smart contract, a second bot to determine a predicted valuation for the debt portfolio (At least: [0005], [0044]
; and
after confirming, by the first bot, that the debt portfolio is compliant with the regulations (At least: [0014],[0021]), and
confirming, by the second bot, that the predicted valuation is sufficient for the first smart contract, execute the first smart contract (At least: [0037]).
Blount discloses a software application to enforce a smart contract on a network (At least: [0015], claim 1).
Blount does not specifically disclose a “first bot” and a “second bot”.
Cella in the same field of endeavor discloses a loan associated with a smart contract, which is further executed by an automated agent circuit (At least: [1533]).
Therefore it would have been obvious to one of ordinary skill in the art at the effective filing date of the invention to modify Blount’s invention to include a first bot and a second bot in order to ensure that the automated agent circuit may automatically perform an action based on the collateral event (Cella: [01527]).
3. Claims 2-3, 48- 49, 51 are being rejected under 35 U.S.C 103(a) as being unpatentable over Blount in view of Cella and further in view of US 2021/0065304 to Greene et al, herein Greene.
Regarding claim 2 Blount and Cella disclose the method of claim 1. Blount does not disclose, Greene in the same field of endeavor discloses wherein executing the first smart contract causes ownership of the debt portfolio to be transferred from the owner to one or more purchasers (At least: [0021], claim 23) , and causes payment to be transferred to the owner (At least: [0021]).
Therefore it would have been obvious to one of ordinary skill in the art at the effective filing date of the invention to modify Blount’s invention to include wherein executing the first smart contract causes ownership of the debt portfolio to be transferred from the owner to one or more purchasers and causes payment to be transferred to the owner in order to ensure that a consistent, real-time tracking and enforcement of contractual clauses for all counterparties and historical context on contractual data between the parties, and for potential asset buyers is provided (Greene: [0006]).
Claims 48,51 are rejected using the same rationale as claim 2.
Regarding claim 3, Blount and Cella disclose the method of claim 1. Blount does not disclose, Greene discloses further comprising sending a notice of transfer of ownership for each debt of the plurality of debts based on self-executing regulatory and compliance functions of the first smart contract (At least: [0021]
Therefore it would have been obvious to one of ordinary skill in the art at the effective filing date of the invention to modify Blount’s invention to include further comprising sending a notice of transfer of ownership for each debt of the plurality of debts based on self-executing regulatory and compliance functions of the first smart contract in order to ensure that If contract status changes occur, then smart contract validation and enforcement system may take actions specified in the contract clauses and encoded in smart contracts and payment disbursements may be made, notifications can be sent to debt instrument parties, or additional conditional clauses encapsulated in smart contracts may be activated or deactivated (Greene: [0020]).
Claim 49 is being rejected using the same rationale as claim 3.
4. Claims 4, 7, 13 are being rejected under 35 U.S.C 103(a) as being unpatentable over Blount in view of Cella and further in view of US 2019/0340685 to Wade et al, herein Wade.
Regarding claim 4, Blount and Cella disclose the method of claim 1. Blount does not disclose, Wade in the same field of endeavor discloses generating a second smart contract corresponding to financing a purchase of the debt portfolio, the second smart contract generating a new virtual network layer and a new virtual
ledger (At least: Fig 7: 703; [0067]
storing the second smart contract in the new virtual ledger (At least: [0067]);
executing the second smart contract after the first smart contract is executed (At least: [0067]); and after receiving payments corresponding to the debt portfolio, allocating the payments in accordance with the second smart contract (At least: [0043]).
Therefore it would have been obvious to one of ordinary skill in the art at the effective filing date of the invention to modify Blount’s invention to include generating a second smart contract corresponding to financing a purchase of the debt portfolio, the second smart contract generating a new virtual network layer and a new virtual ledger; storing the second smart contract in the new virtual ledger; executing the second smart contract after the first smart contract is executed and after receiving payments corresponding to the debt portfolio, allocating the payments in accordance with the second smart contract in order to ensure that by using the smart contract generator, repayments to the bondholders is automated (Wade: [0043]).
Regarding claim 7, Blount and Cella and Wade discloses the method of claim 4. Blount does not disclose, Wade discloses wherein executing the first or second smart contract causes debt repayment of at least one debt of the plurality of debts (At least: [0043]).
Therefore it would have been obvious to one of ordinary skill in the art at the effective filing date of the invention to modify Blount’s invention to include wherein executing the first or second smart contract causes debt repayment of at least one debt of the plurality of debts in order to ensure that by using the smart contract generator, repayments to the bondholders is automated (Wade: [0043]).
Regarding claim 13, Blount and Cella discloses the method of claim 1. Blount does not disclose, Wade discloses further comprising closing the first smart contract after determining that the plurality of debts have been repaid (At least: [0040], [0043], [0062], [0071]).
Therefore it would have been obvious to one of ordinary skill in the art at the effective filing date of the invention to modify Blount’s invention to include further comprising closing the first smart contract after determining that the plurality of debts have been repaid in order to ensure that by using the smart contract generator, repayments to the bondholders is automated (Wade: [0043]).
6. Claim 14 is being rejected under 35 U.S.C 103(a) as being unpatentable over Blount in view of Cella and further in view of US 2018/0285971 to Rosenoer.
Regarding claim 14, Blount and Cella discloses the method of 1. Blount does not disclose, Rosenoer in the same field of endeavor discloses further comprising: determining a write-off value of at least a portion of the debt portfolio containing the plurality of debts, the portion containing uncollectable debts (At least: [0037], [0038]); and closing the first smart contract in the virtual ledger corresponding to the uncollectable debts (At least: [0037], [0038]).
Therefore it would have been obvious to one of ordinary skill in the art at the effective filing date of the invention to modify Blount’s invention to include further comprising: determining a write-off value of at least a portion of the debt portfolio containing the plurality of debts, the portion containing uncollectable debts and closing the first smart contract in the virtual ledger corresponding to the uncollectable debts in order to ensure that by using blockchain, the storing and updating of credit information becomes more efficient, cost-effective, secure and auditable (Rosenoer: [0013]).
7. Claims 15 is being rejected under 35 U.S.C 103(a) as being unpatentable over Blount in view of Cella and Greene and further in view of Wade.
Regarding claim 15, Blount, Cella and Greene disclose the method of claim 2. Blount does not disclose, Wade discloses determining a second valuation of the debt portfolio containing a plurality of debts (At least: [0040]); and generating, based on the second valuation of the debt portfolio, a second smart contract that transfers ownership of the debt portfolio to a second purchaser (At least: Fig 7; [0067])
Therefore it would have been obvious to one of ordinary skill in the art at the effective filing date of the invention to modify Blount’s invention to include second valuation of the debt portfolio containing a plurality of debts and generating, based on the second valuation of the debt portfolio, a second smart contract that transfers ownership of the debt portfolio to a second purchaser in order to ensure that the user automatically receives repayment based on the terms of the original investment contract, which are now reproduced in the smart contract (Wade: [0067]).
No Prior Art- for claims 5-6, 8-11
Based on prior art search results, the prior art of record neither anticipates nor renders
obvious the claimed subject matter of the instant application as a whole either taken alone or in combination, in particular, the prior art does not teach the limitations from claims 5,6,8,9,10,11.
CONCLUSION
Any inquiry concerning this communication or earlier communications from the examiner should be directed to MOHAMMAD Z SHAIKH whose telephone number is (571)270-3444. The examiner can normally be reached M-T, 9-600; Fri, 8-11, 3-5.
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/MOHAMMAD Z SHAIKH/Primary Examiner, Art Unit 3694 9/5/2026
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