DETAILED ACTION
This office action is in response to Applicant’s communication of 8/27/2025. Claims 1-20 are pending and have been examined. The rejection is stated below.
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 .
Information Disclosure Statement
The information disclosure statements (IDS)s submitted 10/8/2025 and 8/19/2026 are in compliance with the provisions of 37 CFR 1.97. Accordingly, the information disclosure statements are being considered by the examiner.
Claim Rejections - 35 USC § 102
The following is a quotation of the appropriate paragraphs of 35 U.S.C. 102 that form the basis for the rejections under this section made in this Office action:
A person shall be entitled to a patent unless –
(a)(1) the claimed invention was patented, described in a printed publication, or in public use, on sale or otherwise available to the public before the effective filing date of the claimed invention.
This application currently names joint inventors. In considering patentability of the claims the examiner presumes that the subject matter of the various claims was commonly owned as of the effective filing date of the claimed invention(s) absent any evidence to the contrary. Applicant is advised of the obligation under 37 CFR 1.56 to point out the inventor and effective filing dates of each claim that was not commonly owned as of the effective filing date of the later invention in order for the examiner to consider the applicability of 35 U.S.C. 102(b)(2)(C) for any potential 35 U.S.C. 102(a)(2) prior art against the later invention.
Claims 1, 3-5, 7-9, 11, 13-15 and 17-19 are rejected under 35 U.S.C. 102(a)(1) as being anticipated by Kim et al.(US 10,803,452 B2)(Kim hereinafter)
Regarding claims 1 and 11: Kim discloses a method of using a payment device and a payment device (at least Abstract, “An electronic device and a method of payment are provided.”. comprising a microchip and at least one circuit, the method comprising:
generating, with the microchip, a verification code and a cryptogram configured to be decrypted based on the verification code by a point-of-sale (POS) device; (at least col.23, lines 59-67, “…may be a token issued from the electronic device 910, where the token varies according to the transmission modes for payment (e.g., MST and NFC).”, at least col.25, lines 52-67, “…the electronic device 910 transmits payment information (e.g., a token, a token cryptogram) to the POS 1101 via NFC. …when the payment transaction starts, the electronic device 910 may wait detecting an external NFC signal. When receiving an active signal from the POS 1101, the electronic device 910 generates an NFC signal and transmits first payment information via the NFC signal.”).
generating, with the at least one circuit and using power from a power source, a plurality of magnetic signals to produce a pattern in a magnetic field, the pattern representing the verification code; (at least col.9, lines 15-21, “MST is capable of creating pulses corresponding to transmission data, using electromagnetic signals, and converting the pluses into magnetic field signals. The electronic device 101 transmits the magnetic field signals to a point of sales (POS) terminal. The POS terminal detects the magnetic field signals via the MST reader and converts the detected magnetic field signals into electrical signals, thereby restoring the data.”). and
providing payment data to the POS device, the payment data comprising the cryptogram, at least FIG. 40, at least col.22, lines 47-51, “… the payment applet is capable of creating payment information ( e.g., a token, a token cryptogram, a time verification code, the 50 number of payments) to be emitted via MST, in the format of track data of a magnetic card.”, at least col.25, lines 52-59, “…the electronic device 910 transmits payment information (e.g., a token, a token cryptogram) to the POS 1101 via NFC.”).
Regarding claims 3 and 13: Kim further discloses wherein:
the at least one circuit is configured for near-field communication (NFC) interaction, and wherein the power source comprises power from an NFC antenna associated with the POS device, (at least col.25, lines 3-10, “The NFC RF module 1005 is capable of demodulating a signal, received via an antenna (e.g., NFC antenna 1009), based on a corresponding demodulation scheme, and providing the demodulated signal to the NFC controller 1003. The NFC RF module 1005 is also capable of or modulating data from the NFC controller 1003, based on a corresponding modulation scheme, and transmitting the modulated data via the antenna.”).
Regarding claims 4 and 14: Kim further discloses wherein:
the payment device further comprises a battery, and wherein the power source comprises the battery, (at least FIG.3, element 296).
Regarding claims 5 and 15: Kim further discloses wherein:
providing the payment data comprises providing the payment data to a transceiver of the POS device using a contactless communication transmission separate from the pattern in the magnetic field, (at least col.23, lines 66-67 and col.24, lines 1-2, “For example, the first payment information may be used for payment in MST mode and the second payment information may be used for payment in NFC mode.”, at least col.25, lines 52-59, “…when the payment transaction starts, the electronic device 910 may wait detecting an external NFC signal. When receiving an active signal from the POS 1101, the electronic device 910 generates an NFC signal and transmits first payment information via the NFC signal.”).
Regarding claims 7 and 17: Kim further discloses wherein:
the at least one circuit comprises a first circuit configured for NFC interaction and a second circuit configured to produce the pattern, the method further comprising: communicating with the POS device using the first circuit; and producing the pattern using the second circuit, (at least col.72, lines 4-12,
Regarding claims 8 and 18: Kim further discloses wherein:
generating the plurality of magnetic signals comprises generating, in a sequence, the plurality of magnetic signals, each magnetic signal of the plurality of magnetic signals having one of a first polarity or a second polarity, (at least col.21, lines 28-36).
Regarding claims 9 and 19: Kim further discloses wherein:
the sequence of the plurality of magnetic signals comprises a plurality of polarity changes between the first polarity and the second polarity, and wherein each magnetic signal of the plurality of magnetic signals represents at least one bit of encoded data based on a direction and a duration of the first polarity or the second polarity, (at least col.21, lines 28-36, at least col.9, lines 15-22).
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.
Claims 2, 6, 10, 12, 16 and 20 are rejected under 35 U.S.C. 103 as being unpatentable over Kim et al. (US 10,803,452 B2)(Kim hereinafter) in view of Pickering (US 2025/0045757 Al)
Regarding claims 2 and 12: Although Kim substantially discloses claims 1 and 11 above, it appears that Kim does not disclose, however, Pickering discloses further comprising
producing, in proximity of a magnetometer of the POS device, a magnetic signature based on a structural composition of the payment device and the at least one circuit, the magnetic signature used for verification of the payment device by the POS device, (at least [0029], “Face-to- face or in-person transactions may refer to local transactions taking place between a merchant 130 and a consumer present in a same venue or location, or in close physical proximity to each other (e.g., during a meeting between the merchant 130 and the consumer, at a brick-and-mortar store of the merchant 130, etc.). In one embodiment, local POS terminal 135 may be a mobile device of the merchant 130…”, at least claim 10).
It would have been obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to include in the method and apparatus for performing payment method of Kim the ability to interact a payment device with a POS magnetometer for verification as disclosed by Pickering since the claimed invention is merely a combination of old elements and, in combination, each element would merely have performed the same function as it did separately. One of ordinary skill in the art would have recognized that applying the features disclosed by Pickering, to the known invention of Kim, would have yielded predictable results and resulted in an improved invention. The motivation to combine is that by verifying a device via a magnetometer at a POS provides a secure interaction involving sensitive data.
Regarding claims 6 and 16: Kim in view of Pickering further discloses wherein:
providing the payment data comprises providing the payment data to a magnetometer of the POS device as encoded data in the pattern in the magnetic field, (Pickering: at least Abstract, “receiving contextual data from one or more sensors of a user device and determining a device movement pattern based on the received contextual data. The determined device movement pattern is compared with a device movement-based signature associated with a user of the user device.”, at least FIG. 5, element 520).
Regarding claims 10 and 20: Kim in view of Pickering further discloses wherein:
the verification code is encoded in the pattern based on at least one of the following of the sequence of the plurality of magnetic signals: timing, strength, polarity, or any combination thereof, (Pickering: at least [0043], “The consumer device 150 may comprise one or more sensors 225 that enable device movement detection component 210 to track the position, acceleration, and/or orientation of the consumer device 150 during a signature move or an initial device movement-based signature setup stage.” and “…rotation measurements from a gyroscope and a magnetometer (i.e., the rotation of the consumer device 150 in three dimensions, in relation to the X, Y, and Z axis)…” and [0044]).
Conclusion
The prior art made of record and not relied upon is considered pertinent to applicant's disclosure are listed on the enclosed PTO-892.
Any inquiry concerning this communication or earlier communications from the examiner should be directed to CHRISTOPHER J BRIDGES whose telephone number is (571)270-5451. The examiner can normally be reached 7:00am-3:30pm M-F EDT.
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If attempts to reach the examiner by telephone are unsuccessful, the examiner’s supervisor, Mike Anderson can be reached at 571-270-0508. The fax phone number for the organization where this application or proceeding is assigned is 571-273-8300.
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/CHRISTOPHER BRIDGES/Primary Examiner, Art Unit 3693
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