`Tel: 571-272-7822
`
`Paper 45
`Entered: May 26, 2016
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`
`APPLE INC., SAMSUNG ELECTRONICS LTD, SAMSUNG
`ELECTRONICS AMERICA, INC., and GOOGLE INC.,
`Petitioner, 1
`
`v.
`
`SMARTFLASH LLC,
`Patent Owner.
`
`Case CBM2015-000312
`Patent 8,336,772 B2
`
`Before JENNIFER S. BISK, RAMA G. ELLURU, GREGG I. ANDERSON,
`MATTHEW R. CLEMENTS, Administrative Patent Judges.
`
`ANDERSON, Administrative Patent Judge.
`
`
`FINAL WRITTEN DECISION
`35 U.S.C. § 328(a) and 37 C.F.R. § 42.73
`
`
`
`
`1 “Petitioner” refers collectively to Petitioner Inc,, Samsung Electronics
`LTD, Samsung Electronics America, Inc., and Google Inc.
`
`2 Samsung’s challenge to claims 5 and 10 of US Patent No. 8,336,772 B2
`(“the ’772 patent”) in CBM2015-00059 was consolidated with this
`proceeding. Paper 24, 9. Google’s challenge to claims 1, 5, and 10 of the
`’772 patent in CBM2015-00132 was consolidated with this proceeding.
`Paper 31, 11; Paper 37, 2–3.
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`A. Background
`
`INTRODUCTION
`
`Petitioner Apple Inc. filed a Corrected Petition to institute covered
`
`business method patent review of claims 1, 5, 8, and 10 of U.S. Patent No.
`
`8,336,772 B2 (Ex. 1201, “the ’772 patent”) pursuant to § 18 of the Leahy-
`
`Smith America Invents Act (“AIA”). Paper 5 (“Pet.”). Patent Owner,
`
`Smartflash LLC (“Smartflash”), filed a Preliminary Response. Paper 8
`
`(“Prelim. Resp.”). On May 28, 2015, we instituted a covered business
`
`method patent review (Paper 11, “Institution Decision” or “Inst. Dec.”)
`
`based upon Apple’s assertion that claims 1, 5, 8, and 10 are directed to
`
`patent ineligible subject matter under 35 U.S.C. § 101. Inst. Dec. 19.
`
`Subsequent to institution, Smartflash filed a Patent Owner Response
`
`(Paper 23, “PO Resp.”) and Apple filed a Reply (Paper 26, “Reply”) to
`
`Patent Owner’s Response.
`
`On January 15, 2015, Petitioner Samsung Electronics America, Inc.
`
`and Samsung Electronics, Co., Ltd. filed a Petition to institute covered
`
`business method patent review of claims 5, 10, 14, 26, and 32 of the ’772
`
`patent on the ground that they are directed to patent ineligible subject matter
`
`under 35 U.S.C. § 101. Samsung Electronics America, Inc. and Samsung
`
`Electronics, Co., Ltd. v. Smartflash LLC, Case CBM2015-00059 (Paper 2,
`
`“Samsung Petition”). On June 29, 2015, Samsung filed a Motion for Joinder
`
`(CBM2015-00059, Paper 11) seeking to consolidate its challenge to claims 5
`
`and 10 with the covered business method patent review in CBM2015-
`
`2
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`00031.3 On August 5, 2015, we granted Samsung’s Petition and
`
`consolidated Samsung’s challenge to claims 5 and 10 with this proceeding.
`
`Paper 24; Samsung Electronics America, Inc. and Samsung Electronics, Co.,
`
`Ltd. v. Smartflash LLC, Case CBM2015-00059, slip. op. at 9 (PTAB Aug. 5,
`
`2015) (Paper 13).
`
`On May 8, 2015, Petitioner Google Inc. filed a Petition to institute
`
`covered business method patent review of claims 1, 5, 9, 10, 14, 21, and 22
`
`of the ’772 patent on the ground that they are directed to patent ineligible
`
`subject matter under 35 U.S.C. § 101. Google Inc. v. Smartflash LLC, Case
`
`CBM2015-00132 (Paper 64, “Google Petition”). On June 29, 2015, Google
`
`filed a “Motion for Joinder” of its newly filed case with previously instituted
`
`Apple cases CBM2015-00031 and CBM2015-00032. CBM2015-00132
`
`(Paper 10, “Google Mot.”). On December 1, 2015, we granted Google’s
`
`Petition and consolidated Google’s challenge to claims 1, 5, 9, and 10 of the
`
`’772 patent with this proceeding.5 Paper 31; Google Inc. v. Smartflash LLC,
`
`Case CBM2015-00132, slip. op. at 11 (PTAB Dec. 1, 2015) (Paper 14).
`
`Google’s challenge to claims 14, 21, and 22 of the ’772 patent were
`
`consolidated with CBM2015-00032. Id. On December 16, 2015, we revised
`
`
`3 Samsung’s Motion requested that: its challenge to claims 5 and 10 be
`consolidated with this case; its challenge to claim 14 be consolidated with
`CBM2015-00032; and its challenge to claims 26 and 32 be consolidated
`with CBM2015-00033. CBM2015-00032 and CBM2015-00033 were both
`filed by Apple and involve claims 14, 19, and 21, and claims 25, 26, 30, and
`32, respectively, of the ’772 patent. Final Written Decisions in CBM2015-
`00032 and CBM2015-00033 are issued concurrently with this Decision.
`
`4 We refer to the redacted version of the Petition.
`5 For purposes of this Decision, we will cite only to Apple’s Petition and the
`record in CBM2015-00031.
`
`3
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`our institution order to consolidate Google’s challenge to claims 9 and 21
`
`with CBM2015-00133, instead of with this proceeding and CBM2015-
`
`00032, respectively. Paper 37, 3.
`
`An oral hearing was held on January 6, 2016, and a transcript of the
`
`hearing is included in the record (Paper 43, “Tr.”).
`
`We have jurisdiction under 35 U.S.C. § 6(c). This Final Written
`
`Decision is issued pursuant to 35 U.S.C. § 328(a) and 37 C.F.R. § 42.73.
`
`For the reasons that follow, we determine that Petitioner has shown by
`
`a preponderance of the evidence that claims 1, 5, 8, and 10 of the ’772 patent
`
`are directed to patent ineligible subject matter under 35 U.S.C. § 101.
`
`B. The ’772 Patent
`
`The ’772 patent relates to “a portable data carrier for storing and
`
`paying for data and to computer systems for providing access to data to be
`
`stored” and the “corresponding methods and computer programs.”
`
`Ex. 1201, 1:24–28. Owners of proprietary data, especially audio recordings,
`
`have an urgent need to address the prevalence of “data pirates,” who make
`
`proprietary data available over the internet without authorization.
`
`Id. at 1:32–58. The ’772 patent describes providing portable data storage
`
`together with a means for conditioning access to that data upon validated
`
`payment. Id. at 1:62–2:3. According to the ’772 patent, this combination of
`
`the payment validation means with the data storage means allows data
`
`owners to make their data available over the internet without fear of data
`
`pirates. Id. at 2:10–18.
`
`As described, the portable data storage device is connected to a
`
`terminal for internet access. Id. at 1:62–2:3. The terminal reads payment
`
`information, validates that information, and downloads data into the portable
`
`4
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`storage device from a data supplier. Id. The data on the portable storage
`
`device can be retrieved and output from a mobile device. Id. at 2:4–7. The
`
`’772 patent makes clear that the actual implementation of these components
`
`is not critical and the alleged invention may be implemented in many ways.
`
`See, e.g., id. at 25:59–62 (“The skilled person will understand that many
`
`variants to the system are possible and the invention is not limited to the
`
`described embodiments . . . .”).
`
`C. Illustrative Claims
`
`Petitioner challenges claims 1, 5, 8, and 10 of the ’772 patent. Claims
`
`1 and 8 are independent and claims 5 and 10 depend from claims 1 and 8,
`
`respectively. Claims 1 and 8 are reproduced below:
`
`1. A handheld multimedia terminal, comprising:
`
`a wireless interface configured to interface with a wireless
`network for accessing a remote computer system;
`
`non-volatile memory configured to store multimedia content,
`wherein said multimedia content comprises one or more of music
`data, video data and computer game data;
`
`a program store storing processor control code;
`
`a processor coupled to said non-volatile memory, said program
`store, said wireless interface and
`
`a user interface to allow a user to select and play said multimedia
`content;
`
`a display for displaying one or both of said played multimedia
`content and data relating to said played multimedia content;
`
`wherein the processor control code comprises:
`
`code to request identifier data identifying one or more
`items of multimedia content stored in the non-volatile memory;
`
`code to receive said identifier data;
`
`5
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`code to present to a user on said display said identified one
`or more items of multimedia content available from the non-
`volatile memory;
`
`code to receive a user selection to select at least one of said
`one or more of said stored items of multimedia content;
`
`code responsive to said user selection of said at least one
`selected item of multimedia content to transmit payment data
`relating to payment for said at least one selected item of
`multimedia content via said wireless interface for validation by a
`payment validation system;
`
`code to receive payment validation data via said wireless
`interface defining if said payment validation system has
`validated payment for said at least one selected item of
`multimedia content; and
`
`code to control access to said at least one selected item of
`multimedia content on said terminal responsive to said payment
`validation data,
`
`wherein said user interface is operable to enable a user to
`select said at least one item of multimedia content available from
`said non-volatile memory; and
`
`wherein said user interface is operable to enable a user to
`access said at least one selected item of multimedia content
`responsive to said code to control access permitting access to said
`at least one selected item of multimedia content.
`
`Ex. 1201, 25:65–26:43.
`
`8. A data access terminal for controlling access to one or more
`content data items stored on a data carrier, the data access
`terminal comprising:
`
`a user interface;
`
`a data carrier interface;
`
`a program store storing code implementable by a processor; and
`
`a processor coupled to the user interface, to the data carrier
`interface and to the program store for implementing the stored
`code, the code comprising:
`
`6
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`code to request identifier data identifying one or more
`content data items stored on the data carrier;
`
`code to receive said identifier data;
`
`code to present to a user via said user interface said
`identified one or more content data items available from the data
`carrier;
`
`code to receive a user selection selecting at least one of
`said one or more of said stored content data items;
`
`code responsive to said user selection of said selected
`content data item to transmit payment data relating to payment
`for said selected content item for validation by a payment
`validation system;
`
`code to receive payment validation data defining if said
`payment validation system has validated payment for said
`content data item; and
`
`code to control access to said selected content data item
`responsive to the payment validation data.
`
`Ex. 1201, 27:15–41.
`
`A. Claim Construction
`
`ANALYSIS
`
`Consistent with the statute and the legislative history of the AIA,6 the
`
`Board interprets claim terms in an unexpired patent according to the
`
`broadest reasonable construction in light of the specification of the patent in
`
`which they appear. See In re Cuozzo Speed Techs., LLC, 793 F.3d 1268,
`
`1278–79 (Fed. Cir. 2015), cert. granted sub nom. Cuozzo Speed Techs., LLC
`
`v. Lee, 136 S. Ct. 890 (mem.) (2016); 37 C.F.R. § 42.100(b). Under that
`
`standard, and absent any special definitions, we give claim terms their
`
`ordinary and customary meaning, as would be understood by one of ordinary
`
`
`6 Leahy-Smith America Invents Act, Pub. L. No. 11229, 125 Stat. 284
`(2011) (“AIA”).
`
`7
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`skill in the art at the time of the invention. See In re Translogic Tech., Inc.,
`
`504 F.3d 1249, 1257 (Fed. Cir. 2007). Any special definitions for claim
`
`terms must be set forth with reasonable clarity, deliberateness, and precision.
`
`See In re Paulsen, 30 F.3d 1475, 1480 (Fed. Cir. 1994).
`
`For purposes of this Decision, we do not need to expressly construe
`
`any claim term.
`
`B. Statutory Subject Matter
`
`Petitioner challenges claims 1, 5, 8, and 10 as directed to patent-
`
`ineligible subject matter under 35 U.S.C. § 101. Pet. 22–35. Petitioner
`
`submits a declaration from Anthony J. Wechselberger (“Wechselberger
`
`Declaration”)7 in support of its petition. Ex. 1219.
`
`According to Petitioner, claims 1, 5, 8, and 10 are directed to an
`
`abstract idea and do not disclose an “inventive concept” that is “significantly
`
`more” than the abstract idea. Pet. 22–35. Smartflash argues that claims 1, 5,
`
`8, and 10 are directed to statutory subject matter because they are “‘rooted in
`
`computer technology in order to overcome a problem specifically arising in
`
`the realm of computer networks’ – that of digital data piracy.” PO Resp. 18
`
`(citation omitted). Specifically, Smartflash asserts that “the claims are
`
`directed to particular devices that can download and store digital content into
`
`non-volatile memory / a data carrier.” Id. at 17.
`
`
`7 In its Response, Patent Owner argues that the Wechselberger Declaration
`should be given little or no weight. PO Resp. 4–11. Because Patent Owner
`has filed a Motion to Exclude that includes a request to exclude the
`Wechselberger Declaration in its entirety, or in the alternative, portions of the
`declaration based on essentially the same argument, we address Patent
`Owner’s argument as part of our analysis of the motion, discussed below.
`
`8
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`1. Abstract Idea
`
`Under 35 U.S.C. § 101, we must first identify whether an invention
`
`fits within one of the four statutorily provided categories of patent-
`
`eligibility: “processes, machines, manufactures, and compositions of
`
`matter.” Ultramercial, Inc. v. Hulu, LLC, 772 F.3d 709, 713–714 (Fed. Cir.
`
`2014). Here, claims 1 and 5 recite a “handheld multimedia terminal” and
`
`claims 8 and 10 recite a “data access terminal,” which fall into the
`
`“machine” category under § 101. Section 101, however, “contains an
`
`important implicit exception [to subject matter eligibility]: Laws of nature,
`
`natural phenomena, and abstract ideas are not patentable.” Alice Corp. Pty.
`
`Ltd. v. CLS Bank Int’l., 134 S. Ct. 2347, 2354 (2014) (citing Assoc. for
`
`Molecular Pathology v. Myriad Genetics, Inc., 133 S. Ct. 2107, 2116 (2013)
`
`(internal quotation marks and brackets omitted)). In Alice, the Supreme
`
`Court reiterated the framework set forth previously in Mayo Collaborative
`
`Services v. Prometheus Laboratories, Inc., 132 S. Ct. 1289, 1293 (2012) “for
`
`distinguishing patents that claim laws of nature, natural phenomena, and
`
`abstract ideas from those that claim patent-eligible applications of those
`
`concepts.” Alice, 134 S. Ct. at 2355. The first step in the analysis is to
`
`“determine whether the claims at issue are directed to one of those patent-
`
`ineligible concepts.” Id.
`
`According to the Federal Circuit, “determining whether the section
`
`101 exception for abstract ideas applies involves distinguishing between
`
`patents that claim the building blocks of human ingenuity—and therefore
`
`risk broad pre-emption of basic ideas—and patents that integrate those
`
`building blocks into something more, enough to transform them into specific
`
`patent-eligible inventions.” Versata Dev. Grp., Inc. v. SAP Am., Inc., 793
`
`9
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`F.3d 1306, 1332 (Fed. Cir. 2015) (emphasis added); accord id. at 1333–1334
`
`(“It is a building block, a basic conceptual framework for organizing
`
`information . . . .” (emphasis added)). This is similar to the Supreme Court’s
`
`formulation in Bilski v. Kappos, 561 U.S. 593, 611 (2010) (emphasis added),
`
`noting that the concept of risk hedging is “a fundamental economic practice
`
`long prevalent in our system of commerce.” See also buySAFE, Inc. v.
`
`Google, Inc., 765 F.3d 1350, 1353–54 (Fed. Cir. 2014) (stating that patent
`
`claims related to “long-familiar commercial transactions” and relationships
`
`(i.e., business methods), no matter how “narrow” or “particular,” are
`
`directed to abstract ideas as a matter of law). As a further example, the
`
`“concept of ‘offer based pricing’ is similar to other ‘fundamental economic
`
`concepts’ found to be abstract ideas by the Supreme Court and [the Federal
`
`Circuit].” OIP Tech., Inc. v. Amazon.com, Inc., 788 F.3d 1359, 1362 (Fed.
`
`Cir. 2015) (citations omitted).
`
`Petitioner argues that claims 1, 5, 8, and 10 are directed to the abstract
`
`idea of “paying for and/or controlling access to content.” Pet. 23; see id. at
`
`24–27. Although Smartflash does not concede, in its Patent Owner
`
`Response, that claims 1, 5, 8, and 10 are directed to an abstract idea, it does
`
`not persuasively explain how the challenged claims escape being classified
`
`as abstract. PO Resp. 15–25 (Patent Owner Response arguing that claims
`
`are statutory under only the second step of Mayo and Alice); see also Tr.
`
`7:19–22 (Petitioner stating that “Patent Owner has made no argument that its
`
`claims are not directed to abstract ideas under the first prong of Mayo and
`
`Alice.”) (emphasis added), id. at 7:22–23 (Petitioner also stating “[Patent
`
`Owner] has never disputed the articulation of those abstract ideas”).
`
`10
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`We are persuaded that claims 1, 5, 8, and 10 are drawn to the abstract
`
`idea of conditioning and controlling access to content based on, for example,
`
`payment. Specifically, independent claim 1 recites “code to receive
`
`payment validation data . . . for said at least one selected item of multimedia
`
`content.” Independent claim 8 recites “code to control access to said
`
`selected content data item responsive to the payment validation data.”
`
`Claim 5 depends from claim 1 and recites “code to retrieve supplementary
`
`data via said wireless interface and output said supplementary data to said
`
`user using said display.” Claim 10 depends from claim 8 and recites “said
`
`data access terminal is integrated with a mobile communications device and
`
`audio/video player.”
`
`Furthermore, as discussed above, the ’772 patent discusses addressing
`
`recording industry concerns of data pirates offering unauthorized access to
`
`widely available compressed audio recordings. Ex. 1201, 1:23–57. The
`
`patent specification explains that these pirates obtain data either by
`
`unauthorized or legitimate means and then make the data available over the
`
`Internet without authorization. Id. The specification further explains that
`
`once data has been published on the Internet, it is difficult to police access to
`
`and use of it by Internet users who may not even realize that it is pirated. Id.
`
`The ’772 patent proposes to solve this problem by restricting access to data
`
`on a portable data carrier based upon payment validation. Id. at 1:61–2:3.
`
`The ’772 patent makes clear that the crux of the claimed subject matter is
`
`restricting access to stored content based on validation of payment. Id.
`
`Although the specification refers to data piracy on the Internet, claims
`
`1, 5, 8, and 10 are not limited to the Internet. Claim 1, from which claim 5
`
`depends, recites “code to” perform various functions related to the abstract
`
`11
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`idea. Independent claim 1 recites, among other things, code to: “request
`
`identifier data,” “receive said identifier data,” “present to a user . . .
`
`multimedia content,” “receive a user selection . . . of multimedia content,”
`
`“responsive to said user selection . . . to transmit payment data relating to
`
`payment for . . . multimedia content,” “receive payment validation data . . .
`
`for said at least one selected item of multimedia content,” and “control
`
`access to said at least one selected item of multimedia content.”
`
`Independent claim 8, from which claim 10 depends, recites code to “request
`
`identifier data,” “receive said identifier data,” “present to a user . . . one or
`
`more content items,” “receive a user selection . . . of said stored content data
`
`items,” “response to said user selection . . . to transmit payment data relating
`
`to payment for said selected content item for validation by a payment
`
`validation system,” “to receive payment validation data,” and “control
`
`access to said selected content data item responsive to the payment
`
`validation data.” The underlying concept of claims 1, 5, 8, and 10
`
`particularly when viewed in light of the ’772 patent specification, is
`
`conditioning and controlling access to content based on, for example,
`
`payment. As discussed further below, this is a fundamental economic
`
`practice long in existence in commerce. See Bilski, 561 U.S. at 611.
`
`We are, thus, persuaded, based on the ’772 patent specification and
`
`the claim language, that each of claims 1, 5, 8, and 10 is directed to an
`
`abstract idea. See Alice, 134 S. Ct. at 2356 (holding that the concept of
`
`intermediated settlement at issue in Alice was an abstract idea); Accenture
`
`Global Servs., GmbH v. Guidewire Software, Inc., 728 F.3d 1336, 1344
`
`(Fed. Cir. 2013) (holding the abstract idea at the heart of a system claim to
`
`12
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`be “generating tasks [based on] rules . . . to be completed upon the
`
`occurrence of an event”).
`
`2. Inventive Concept
`
`“A claim that recites an abstract idea must include ‘additional
`
`features’ to ensure ‘that the [claim] is more than a drafting effort designed to
`
`monopolize the [abstract idea].’” Alice, 134 S. Ct. at 2357 (quoting Mayo,
`
`132 S. Ct. at 1297). “This requires more than simply stating an abstract idea
`
`while adding the words ‘apply it’ or ‘apply it with a computer.’ Similarly,
`
`the prohibition on patenting an ineligible concept cannot be circumvented by
`
`limiting the use of an ineligible concept to a particular technological
`
`environment.” Versata, 793 F.3d at 1332 (citations omitted). Moreover, the
`
`mere recitation of generic computer components performing conventional
`
`functions is not enough. See Alice, 134 S. Ct. at 2360 (“Nearly every
`
`computer will include a ‘communications controller’ and ‘data storage unit’
`
`capable of performing the basic calculation, storage, and transmission
`
`functions required by the method claims.”).
`
`Petitioner argues that the challenged claims do not disclose an
`
`“inventive concept” because any additional features recited in the challenged
`
`claims are either field of use limitations—limiting the ideas of payment and
`
`controlling access to content to payment for retrieving “data” and controlling
`
`access to content based on “payment data”—or generic computer
`
`implementations, which Petitioner argues is insufficient to bring the claims
`
`within § 101 patent eligibility. Pet. 27–32. Specifically, Petitioner contends
`
`that the challenged claims “recite no more than generic computer elements
`
`and functions that were well-known, routine, and conventional to a POSITA
`
`at the time of filing.” Reply 6 (citations omitted); see id. at 13–14.
`
`13
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`Petitioner persuades us that claims 1, 5, 8, and 10 of the ’772 patent do not
`
`add an inventive concept sufficient to ensure that the claims in practice
`
`amount to significantly more than claims on the abstract idea itself. Alice,
`
`134 S. Ct. at 2355; see also Accenture Global Servs., 728 F.3d at 1344
`
`(holding claims directed to the abstract idea of “generating tasks [based on]
`
`rules . . . to be completed upon the occurrence of an event” to be
`
`unpatentable even when applied in a computer environment and within the
`
`insurance industry). Specifically, we agree with and adopt Petitioner’s
`
`rationale that the additional elements of claims 1, 5, 8, and 10 are field of
`
`use limitations and/or generic features of a computer that do not bring these
`
`claims within § 101 patent eligibility. Pet. 27–32; Reply 4–6.
`
`a. Every claimed hardware component and function was
`known
`
`Petitioner argues that the challenged claims are unpatentable because
`
`they are “directed only to an abstract idea with nothing more than ‘well-
`
`understood, routine, conventional, activity.’” Pet. 27 (citations omitted).
`
`Smartflash argues that the challenged claims are patentable because they
`
`“are directed to particular devices that can download and store digital
`
`content into non-volatile memory / a data carrier.” PO Resp. 17. We agree
`
`with Petitioner for the following reasons.
`
`The ’772 patent specification treats as well-known all potentially
`
`technical aspects of claims 1, 5, 8, and 10, including “a wireless interface,”
`
`“non-volatile memory,” “a processor,” “a program store,” “a user interface,”
`
`“code” and “a display.” See Reply 11. For example, the specification states
`
`the recited “non-volatile memory” may be an EEPROM, the recited
`
`“program store” may be a ROM, and the recited “non-volatile memory” may
`
`14
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`be Flash memory (Ex. 1201, 17:31–36), as found in a standard “smart Flash
`
`card” (id. at 17:15–24). See also id. at 4:7–8, 6:23–25 (stating that “[t]he
`
`data memory for storing content data may be optic, magnetic or
`
`semiconductor memory, but preferably comprises Flash memory.”), 11:28–
`
`37, 14:33–38, 16:55–58, 18:16–20 (describing components as
`
`“conventional”), Figs. 6, 9. Furthermore, the claimed “code” in claims 1 and
`
`8 performs generic computer functions, such as requesting, receiving, ,
`
`selecting, accessing, transmitting, displaying, identifying, storing,
`
`presenting, and controlling. Pet. 2–4; see id. at 29. The recitation of these
`
`generic computer functions is insufficient to confer specificity. See Content
`
`Extraction and Transmission LLC v. Wells Fargo Bank, Nat. Ass’n., 776
`
`F.3d 1343, 1347 (Fed. Cir. 2014) (“The concept of data collection,
`
`recognition, and storage is undisputedly well-known. Indeed, humans have
`
`always performed these functions.”).
`
`Moreover, we are not persuaded that claims 1, 5, 8, and 10 “‘recite
`
`specific ways of using distinct memories, data types, and use rules that
`
`amount to significantly more than’” conditioning and controlling access to
`
`content based on, for example, payment. See PO Resp. 25 (citation omitted).
`
`None of the challenged claims recite any particular or “distinct memories.”
`
`As noted above, the ’772 patent specification indicates that the required
`
`memories may be conventional types of memory. As noted above, the ’772
`
`patent specification indicates that the required memories may be
`
`conventional types of memory. Ex. 1201, 4:7–8, 6:23–25 (stating that “[t]he
`
`data memory for storing content data may be optic, magnetic or
`
`semiconductor memory, but preferably comprises Flash memory.”), 11:28–
`
`37, 14:33–38, 16:55–58, 17:15–24, 17:31–36, 18:16–20 (describing
`
`15
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`components as “conventional”), Figs. 6, 9. The recitation of generic
`
`memory, being used to store data in the conventional manner, is insufficient
`
`to confer the specificity required to elevate the nature of the claim into a
`
`patent-eligible application. See Content Extraction, 776 F.3d at 1347 (“The
`
`concept of data collection, recognition, and storage is undisputedly well-
`
`known. Indeed, humans have always performed these functions.”).
`
`Claims 1, 5, 8, and 10 also recite several conventional computer
`
`components, including a “data carrier,” “memory,” “program store,”
`
`“processor,” “code,” “interface,” and “display.” See Pet. 31. We are not
`
`persuaded that the recitation of these computer components alone amounts
`
`to significantly more than the underlying abstract idea. Alice, 134 S. Ct. at
`
`2355 (quoting Mayo, 132 S. Ct. at 1294) (“We have described step two of
`
`this analysis as a search for an ‘inventive concept’—i.e., an element or
`
`combination of elements that is ‘sufficient to ensure that the patent in
`
`practice amounts to significantly more than a patent upon the [ineligible
`
`concept] itself.’”) (brackets in original). Smartflash does not point to any
`
`inventive concept in the ’772 patent related to the way the recited
`
`components are constructed or used. As discussed above, the ’772 patent
`
`states many claimed components are “conventional,” including the “data
`
`access terminal” recited in the preambles of claims 8 and 10. Ex. 1201, 4:7–
`
`8. Other components specifically described as “conventional” include “a
`
`processor,” “permanent program memory,” and “timing and control logic,”
`
`“all coupled by a data and communications bus.” Id. at 18:16–20.
`
`In addition, because the recited elements can be implemented on a
`
`general purpose computer, claims 1, 5, 8, and 10 do not cover a “particular
`
`machine.” Pet. 35; see Bilski, 561 U.S. at 604–05 (stating that machine-or-
`
`16
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`transformation test remains “a useful and important clue” for determining
`
`whether an invention is patent eligible). And claims 1, 5, 8, and 10 do not
`
`transform an article into a different state or thing. Id.
`
`Thus, we determine the potentially technical elements of claims 1, 5,
`
`8, and 10 are nothing more than “generic computer implementations” and
`
`perform functions that are “purely conventional.” Alice, 134 S. Ct. at 2358–
`
`59; Mayo, 132 S. Ct. at 1294.
`
`b. Challenged claims are not comparable to DDR
`Holdings claims
`
`Relying on the Federal Circuit’s decision in DDR Holdings,
`
`Smartflash asserts that claims 1, 5, 8, and 10 are directed to statutory subject
`
`matter because the claims are “‘rooted in computer technology in order to
`
`overcome a problem specifically arising in the realm of computer
`
`networks.’” PO Resp. 1, 18 (quoting DDR Holdings, LLC v. Hotels.com,
`
`L.P., 773 F.3d 1245, 1257 (Fed. Cir. 2014)). Specifically, Smartflash
`
`contends that
`
`[T]he claims are directed to particular devices that can download
`and store digital content into non-volatile memory / a data
`carrier. By using a system that combines on the data carrier both
`the digital content and code to control access to the digital
`content that is responsive to payment validation data when
`obtaining digital content, the claimed multimedia terminals / data
`access terminals enable digital content to be obtained effectively
`and legitimately, including, for example, by allowing access to
`stored content only after payment validation data has been
`received to reduce risk of piracy or non-payment to content rights
`owners.
`
`Id. at 17.
`
`Petitioner responds that claims 1, 5, 8, and 10 are distinguishable from
`
`the claims in DDR Holdings. Reply 7–14. The DDR Holdings patent is
`
`17
`
`
`
`
`CBM2015-00031
`Patent 8,336,772 B2
`
`directed at retaining website visitors when clicking on an advertisement
`
`hyperlink within a host website. DDR Holdings, 773 F.3d at 1257.
`
`Conventionally, clicking on an advertisement hyperlink would transport a
`
`visitor from the host’s website to a third party website. Id. The Federal
`
`Circuit distinguished this Internet-centric problem over “the ‘brick and
`
`mortar’ context” because “[t]here is . . . no possibility that by walking up to
`
`[a kiosk in a warehouse store], the customer will be suddenly and completely
`
`transported outside the warehouse store and relocated to a separate physical
`
`venue associated with the third party.” Id. at 1258. The Federal Circuit
`
`further determined that the DDR Holdings claims specify “how interactions
`
`with the Internet are manipulated to yield a desired result—a result that
`
`overrides the routine and conventional sequence of events ordinarily
`
`triggered by the click of a hyperlink.” Id. The unconventional result in
`
`DDR Holdings is that the website visitor is retained on the host website, but
`
`is still able to purchase a product from a third-party merchant. Id. at 1257–
`
`58. The limitation referred to by the Federal Circuit in DDR Holdings
`
`recites “using the data retrieved, automatically generate and transmit to the
`
`web browser a second web page that displays: (A) information associated
`
`with the commerce object associated with the link that has been activated,
`
`and (B) the plurality of visually perceptible elements visually corresponding
`
`to the source page.” Id. at 1250. Importantly, the Federal Circuit identified
`
`this limitation as differentiating the DDR Holdings claims from those held to
`
`be unpatentable in Ultramercial, which “broadly and generically claim ‘use
`
`of the Internet’ to perform an abstract business practice (with insignificant
`
`