UNITED STATES PATENT AND TRADEMARK OFFICE
`
`______________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`______________
`
`ALLIANCE LAUNDRY SYSTEMS, LLC,
`Petitioner,
`
`
`v.
`
`
`PAYRANGE LLC,
`Patent Owner.
`
`______________
`
`IPR2025-00573
`U.S. Patent No. 11,481,772
`
`
`______________
`
`
`
`PETITION FOR INTER PARTES REVIEW
`UNDER 35 U.S.C. § 311-319 AND 37 C.F.R. § 42.100 et seq.
`
`
`
`
`
`
`
`Mail Stop Patent Board
`Patent Trial and Appeal Board
`P.O. Box 1450
`Alexandria, VA 22313-1450
`
`

`

`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`
`
`TABLE OF CONTENTS
`INTRODUCTION ........................................................................................... 1
`I.
`II. MANDATORY NOTICE OF RELATED MATTERS (37 C.F.R. §
`42.8(B)(2)) ....................................................................................................... 1
`A.
`Prior Proceedings: Patent Owner & Kiosoft ......................................... 1
`B.
`Prior Proceedings: Patent Owner & CSC ServiceWorks ...................... 3
`C.
`Related Proceedings: Petitioner and Patent Owner ............................... 5
`IDENTIFICATION OF CHALLENGES: 37 C.F.R. § 42.104(b)) ................. 6
`III.
`IV. BACKGROUND OF THE ’772 PATENT AND THE PRIOR ART ............. 7
`A.
`The State of the Art Prior to December 2013 ....................................... 7
`B. Overview of the Alleged Invention of the ’772 Patent ....................... 10
`C.
`Summary of the ’772 Patent Prosecution History ............................... 13
`D.
`Priority Date of the Challenged Claims .............................................. 14
`E.
`The Challenged Claims ....................................................................... 14
`SUMMARY OF THE ASSERTED PRIOR ART ........................................ 17
`A.
`Low: U.S. Patent No. 10,210,501 (Ex. 1005) ...................................... 17
`B.
`Arora: U.S. Patent No. 9,898,884 (Ex. 1006) ..................................... 17
`C.
`Freeny: U.S. Patent No. 8,958,846 (Ex. 1007) ................................... 18
`D.
`Casey: U.S. Patent No. 8,255,323 (Ex. 1008) ..................................... 19
`VI. CLAIM CONSTRUCTION: 37 C.F.R. § 42.104(B)(3)................................ 19
`A. Applicable Law ................................................................................... 19
`B. A Person Having Ordinary Skill in the Art ......................................... 19
`
`V.
`
`
`
`
`i
`
`

`

`b.
`
`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`Claim Term(s) ..................................................................................... 20
`C.
`VII. DETAILED EXPLANATION OF GROUNDS ............................................ 20
`A. Ground 1: Claim 7 is Rendered Obvious Under 35 U.S.C. § 103
`Over Low in View of Arora ................................................................ 20
`1.
`Low Discloses All Elements of Claim 1, From Which
`Claim 7 Depends ....................................................................... 21
`a.
`[1.P] A method of presenting representations of
`payment accepting unit events ........................................ 21
`[1.1] at a mobile device with one or more
`processors, memory, one or more output devices
`including a display, and one or more radio
`transceivers: .................................................................... 21
`[1.2] identifying one or more payment accepting
`units in proximity to the mobile device that are
`available to accept payment from a mobile
`payment application executing on the mobile
`device .............................................................................. 23
`[1.3] the identifying based at least in part on an
`identifier corresponding to the one or more
`payment accepting units ................................................. 25
`[1.4] wherein the one or more payment accepting
`units are payment operated machines that accept
`payment for dispensing of products and/or services ...... 26
`[1.5] displaying a user interface of the mobile
`payment application on the display of the mobile
`device .............................................................................. 26
`[1.6] the user interface being configured to display
`a visual indication of the one or more payment
`accepting units ................................................................ 27
`[1.7] the user interface being configured
`to…accept user input to (i) receive selection by a
`ii
`
`g.
`
`h.
`
`
`
`
`c.
`
`d.
`
`e.
`
`f.
`
`

`

`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`
`i.
`
`j.
`
`k.
`
`l.
`
`m.
`
`user of the mobile device of an available payment
`accepting unit of the one or more payment
`accepting units ................................................................ 27
`[1.8] the user interface being configured
`to…accept user input to…(ii) trigger payment by
`the mobile payment application for a transaction
`initiated by the user of the mobile device with the
`available payment accepting unit of the one or
`more payment accepting units ........................................ 28
`[1.9] establishing via the one or more radio
`transceivers a wireless communication path
`including the mobile device and the available
`payment accepting unit of the one or more
`payment accepting units ................................................. 29
`[1.10] after establishing the wireless
`communication path, enabling user interaction
`with the user interface of the mobile payment
`application to complete the transaction .......................... 30
`[1.11] exchanging information with the available
`payment accepting unit via the one or more radio
`transceivers, in conjunction with the transaction ........... 33
`[1.12] after exchanging the information,
`displaying, on the display, an updated user
`interface of the mobile payment application to the
`user of the mobile device ................................................ 34
`Obviousness Standards and Analysis ....................................... 35
`a.
`Differences Between the Claimed Subject Matter
`and Low ........................................................................... 35
`Obviousness Rationale for Why a POSA Would
`Have Modified Low with Arora to Arrive at the
`Claimed Subject Matter .................................................. 36
`
`2.
`
`b.
`
`
`
`
`iii
`
`

`

`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`
`c.
`
`3.
`
`Obviousness Rationale for How a POSA Would
`Have Modified Low with Arora to Arrive at the
`Claimed Subject Matter .................................................. 37
`Claim 7 ...................................................................................... 38
`a.
`[7.1] wherein the mobile device includes an
`accelerometer .................................................................. 38
`[7.2] and the method further comprises: based on
`data from the accelerometer, determining whether
`the user is walking away from the available
`payment accepting unit ................................................... 38
`[7.3] and the method further comprises: …in
`accordance with a determination that the user is
`walking away from the available payment
`accepting unit, canceling the wireless
`communication path ....................................................... 40
`B. Ground 2: Claim 11 is Rendered Obvious Under 35 U.S.C. §
`103 Over Low in View of Arora in Further View of Freeny and
`Casey ................................................................................................... 41
`1.
`Low Discloses All Elements of Claim 1, From Which
`Claim 11 Depends ..................................................................... 41
`Obviousness Standards and Analysis ....................................... 41
`a.
`Differences Between the Claimed Subject Matter
`and Low ........................................................................... 41
`Obviousness Rationale for Why a POSA Would
`Have Modified Low with Arora, Freeny, and
`Casey to Arrive at the Claimed Subject Matter .............. 43
`(1) Modifying Low with Arora .................................. 43
`(2) Modifying Low/Arora with Freeny ...................... 45
`(3) Modifying Low/Arora/Freeny with Casey ........... 48
`
`b.
`
`c.
`
`b.
`
`2.
`
`
`
`
`iv
`
`

`

`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`
`c.
`
`3.
`
`b.
`c.
`
`Obviousness Rationale for How a POSA Would
`Have Modified Low with Arora, Freeny, and
`Casey to Arrive at the Claimed Subject Matter .............. 48
`Claim 11 .................................................................................... 49
`a.
`[11.1] wherein the user interface of the mobile
`payment application, after establishing the wireless
`communication path, includes a visual
`representation of the available payment accepting
`unit .................................................................................. 49
`[11.2] an indication of a prepared balance ..................... 53
`[11.3] an affordance that when slid, indicates the
`initiation of the transaction ............................................. 55
`[11.4] wherein the affordance is slid in response to
`receiving a user input of swipe on the affordance
`displayed on the display of the mobile device ............... 56
`VIII. DISCRETIONARY DENIAL SHOULD NOT PRECLUDE
`INSTITUTION .............................................................................................. 58
`A. Discretionary Denial Under the Fintiv Factors is Not Warranted ...... 58
`B. Discretionary Denial Under General Plastic is Not Warranted ......... 61
`1.
`General Plastic Factor 1 ........................................................... 62
`2.
`General Plastic Factor 2 ........................................................... 64
`3.
`General Plastic Factor 3 ........................................................... 65
`4.
`General Plastic Factors 4 and 5 ................................................ 66
`5.
`General Plastic Factors 6 and 7 ................................................ 67
`C. Discretionary Denial Under 35 U.S.C. § 325(d) is Not
`Warranted ............................................................................................ 68
`1.
`The Prosecution History Does Not Warrant Discretionary
`Denial ........................................................................................ 68
`v
`
`d.
`
`
`
`
`

`

`2.
`
`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`Factors (a) and (c) ........................................................... 68
`a.
`Factors (b) and (d) .......................................................... 70
`b.
`Factors (e) and (f) ........................................................... 70
`c.
`The Prior Petitions Against the ’772 Patent Do Not
`Warrant Discretionary Denial ................................................... 71
`IX. MANDATORY NOTICES, STANDING, AND FEES ................................ 72
`A.
`Real Parties-in-Interest (37 C.F.R. § 42.8(b)(1)) ................................ 72
`B.
`Time for Filing (37 C.F.R. § 42.102) .................................................. 73
`C.
`Petitioner’s Lead and Backup Counsel and Service Information:
`37 C.F.R. § 42.8(b)(3) and (4)............................................................. 73
`D. Notice of Service Information (37 C.F.R. § 42.8(b)(4)) ..................... 74
`E.
`Grounds for Standing (37 C.F.R. § 42.204(a); 35 U.S.C. § 315) ....... 74
`F.
`Payment of Fees (37 C.F.R. § 42.103); Procedural Statements .......... 75
`CONCLUSION .............................................................................................. 75
`
`
`X.
`
`
`
`
`
`vi
`
`

`

`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`
`PETITIONER’S EXHIBIT LIST
`
`
`Description
`
`USPN 11,481,772 (the ’772
`Patent) (Patent submitted for Inter
`Partes Review)
`
`Publication Date
`(unless otherwise
`noted)
`December 18, 2013
`(earliest possible
`priority date based
`on filing of
`provisional
`application)
`File History for USPN 11,481,772 N/A
`Declaration of Dr. B. Clifford
`Neuman Under 37 C.F.R. § 1.68 in
`Support of Petition for Inter Partes
`Review of the ’772 Patent
`Curriculum Vitae of Dr. B.
`Clifford Neuman
`USPN 10,210,501 (“Low”)
`
`Type of
`Prior Art
`
`N/A
`
`N/A
`
`N/A
`
`N/A
`§ 102(a),
`(d)
`§ 102(a),
`(d)
`§ 102(a),
`(d)
`§ 102(a)(1)
`
`N/A
`
`§ 102(a)(1)
`
`§ 102(a)(1)
`
`§ 102(a)(1)
`§ 102(a),
`(d)
`
`N/A
`
`N/A
`
`July 25, 2013
`
`USPN 9,898,884 (“Arora”)
`
`April 4, 2013
`
`USPN 8,958,846 (“Freeny”)
`
`USPN 8,255,323 (“Casey”)
`PayRange’s Statutory Disclaimer
`of USPN 11,481,772 claims 1-6, 8-
`10, and 12-20
`USPN 3,457,391 (“Yamamoto”)
`
`USPN 3,931,497 (“Gentile”)
`
`USPN 6,810,234 (“Räsänen”)
`US Patent Pub. No. 2003/0172028
`(“Abell”)
`
`Aug. 23, 2006
`Aug. 28, 2012
`(issuance date)
`Filed on November
`22, 2023
`July 22, 1969
`(issuance date)
`Jan. 6, 1976
`(issuance date)
`Oct. 26, 2004
`(issuance date)
`Mar. 7, 2002
`
`vii
`
`Exhibit
`No.
`
`1001
`
`1002
`
`1003
`
`1004
`
`1005
`
`1006
`
`1007
`
`1008
`
`1009
`
`1010
`
`1011
`
`1012
`
`1013
`
`
`
`
`

`

`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`
`Publication Date
`(unless otherwise
`noted)
`Nov. 4, 2002
`
`Type of
`Prior Art
`§ 102(a),
`(d)
`
`Exhibit
`No.
`
`Description
`
`US Patent Pub. No. 2003/0130902
`(“Athwal”)
`Transcript, Chemours Co. FC, LLC
`v. Daikin Indus., Ltd., 1:17-cv-
`01612, Dkt. 77, PageID.1319-1351
`(D. Del. Jan. 3, 2019).
`Excerpted Copy of U.S. District
`Courts—Combined Civil
`and
`Criminal
`Federal
`Court
`Management Statistics-Profiles for
`the Reporting Period ending June
`30,
`2024,
`available
`at
`https://www.uscourts.gov/data-
`news/reports/statistical-
`reports/federal-court-management-
`statistics/federal-court-
`management-statistics-june-2024.
`PayRange Claim Chart for the
`USPN 11,481,772, attached as
`Exhibit L to PayRange’s Amended
`Counterclaims in Alliance Laundry
`Systems, LLC v. PayRange, Inc.,
`24-cv-733-MN, Dkt. 18,
`PageID.1404-1416 (D. Del., filed
`Oct. 4, 2024)
`US Patent Pub. No. 2018/0374076
`(“Wheeler”)
`US Patent Pub. No. 2018/0197167
`(“Ganesan”)
`US Patent Pub. No. 2019/0236586
`(“Mei”)
`US Patent Pub. No. 2016/0132870
`(“Xu”)
`USPN 309,219 (“Fruen”)
`
`viii
`
`1014
`
`1015
`
`1016
`
`1017
`
`1018
`
`1019
`
`1020
`
`1021
`
`1022
`
`
`
`
`N/A
`
`N/A
`
`N/A
`
`N/A
`
`N/A
`
`Dec. 27, 2018
`
`July 12, 2018
`
`Aug. 1, 2019
`
`May 12, 2016
`Dec. 16, 1884
`(issuance date)
`
`N/A
`
`N/A
`
`N/A
`
`N/A
`
`N/A
`
`N/A
`
`

`

`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`
`Publication Date
`(unless otherwise
`noted)
`
`Type of
`Prior Art
`
`N/A
`
`N/A
`
`Exhibit
`No.
`
`Description
`
`Exhibit A to PayRange’s Amended
`Counterclaims in Alliance Laundry
`Systems, LLC v. PayRange, Inc.,
`24-cv-733-MN, Dkt. 18,
`PageID.972-985 (D. Del., filed
`Oct. 4, 2024)
`
`
`
`
`
`ix
`
`1023
`
`
`
`
`
`
`

`

`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`
`INTRODUCTION
`Alliance Laundry Systems LLC (“Petitioner”) respectfully petitions for Inter
`
`I.
`
`Partes Review (“IPR”) of Claims 7 and 11 of U.S. Patent No. 11,481,772 (“the ’772
`
`Patent,” Ex. 1001). The ’772 Patent issued with twenty claims, but Patent Owner
`
`previously disclaimed all but Claims 7 and 11. Ex. 1009; Ex. 1003, ¶ 44. Petitioner
`
`respectfully requests that the Board institute trial for IPR of, and find unpatentable,
`
`remaining Claims 7 and 11 (“the Challenged Claims”) of the ’772 Patent.
`
`II. MANDATORY NOTICE OF RELATED MATTERS (37 C.F.R. §
`42.8(B)(2))
`A.
`Prior Proceedings: Patent Owner & Kiosoft
`The ’772 Patent was previously the subject of a petition for Post-Grant Review
`
`filed by Kiosoft Technologies, LLC (“Kiosoft”). See PGR2023-00042. Shortly
`
`before the Board’s institution decision was due, the proceedings were terminated
`
`due to settlement. See id., Paper 9.
`
`
`
`
`1
`
`

`

`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`The dispute between Patent Owner1 and Kiosoft included district court
`
`actions (which did not include the ’772 Patent), and several PTAB proceedings, as
`
`shown below:
`
`Proceeding Number
`20-cv-20970
`
`20-cv-24342
`
`CBM2020-00026
`IPR2021-00086
`PGR2021-00077
`PGR2021-00084
`PGR2021-00093
`PGR2022-00035
`PGR2023-00042
`PGR2023-00045
`PGR2023-00050
`
`S.D. Florida
`
`Patent Owner & Kiosoft Disputes
`Venue
`Patent(s) at Issue
`S.D. Florida
`9,134,994
`9,659,296
`10,719,833
`10,891,608
`10,891,614
`9,659,296
`9,659,296
`10,719,833
`10,891,608
`10,891,614
`11,074,580
`11,481,772
`11,488,174
`11,501,296
`
`PTAB
`PTAB
`PTAB
`PTAB
`PTAB
`PTAB
`PTAB
`PTAB
`PTAB
`
`
`
` Patent Owner changed its name from PayRange Inc. to PayRange LLC on October
`
` 1
`
`28, 2024. See Alliance Laundry Systems LLC v. PayRange Inc., No. 1:24-cv-00733-
`
`MN, Dkt. 31, PageID.1649 (D. Del. Dec. 5, 2024).
`
`
`
`
`2
`
`

`

`23-2378
`
`23-2425
`
`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`
`9,134,994
`9,659,296
`9,134,994
`9,659,296
`
`Fed. Cir.
`
`Fed. Cir.
`
`
`
`
`PayRange asserted USPN 10,891,614 (“the ’614 Patent”), the grandparent of
`
`the ’772 Patent via two continuation applications, in litigation captioned PayRange
`
`Inc. v. KioSoft Technologies, LLC et al., 1:20-cv-24342 (S.D. Fla.). KioSoft
`
`thereafter filed a Petition for Post-Grant Review for the ’614 Patent. PGR2021-
`
`00093. On December 14, 2022, a Final Written Decision (“FWD”) was issued
`
`finding Claims 1-6, 8-10, 14-15, and 18-25 of the ’614 Patent unpatentable under
`
`Section 101. PGR2021-00093, FWD, Paper 38.
`
`B.
`Prior Proceedings: Patent Owner & CSC ServiceWorks
`Patent Owner previously sued CSC ServiceWorks, Inc. (“CSC”) for
`
`infringement of the ’772 Patent (and others) in Delaware District Court: PayRange,
`
`Inc. v. CSC ServiceWorks, Inc., 22-cv-502-MN (D. Del.); see also 23-cv-278-MN
`
`(D. Del.); 24-cv-279-MN (D. Del.). CSC thereafter filed a petition for IPR against
`
`Claims 1-6 and 8-20 of the ’772 Patent. See IPR2023-01449. The next month,
`
`Patent Owner disclaimed Claims 1-6, 8-10, and 12-20 of the ’772 Patent. See Ex.
`
`1009; see also IPR2023-01449, Ex. 2017.
`
`
`
`
`3
`
`

`

`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`This Board instituted IPR against remaining Claim 11 of the ’772 Patent after
`
`finding that CSC’s petition showed a reasonable likelihood of success in establishing
`
`unpatentability and declining to discretionarily deny institution. See id., Paper 14 at
`
`2, 10–11. Shortly thereafter, the IPR and District Court actions were terminated due
`
`to settlement. See id., Paper 18.
`
`The dispute between Patent Owner and CSC included district court actions
`
`and several other PTAB proceedings, as shown below:
`
`Proceeding Number
`22-cv-00502
`
`23-cv-00278
`
`24-cv-000279
`
`IPR2023-01188
`IPR2023-01187
`IPR2023-01186
`IPR2023-01449
`
`
`
`
`
`D. Delaware
`
`D. Delaware
`
`Patent Owner & CSC Disputes
`Venue
`Patent(s) at Issue
`D. Delaware
`8,856,045
`10,438,208
`10,891,608
`8,856,045
`10,438,208
`10,891,608
`11,481,772
`10,719,833
`10,891,614
`11,488,174
`10,891,608
`10,438,208
`8,856,045
`11,481,772
`
`PTAB
`PTAB
`PTAB
`PTAB
`
`4
`
`

`

`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`
`C. Related Proceedings: Petitioner and Patent Owner
`On June 20, 2024, Petitioner filed suit against Patent Owner for declaratory
`
`judgment of noninfringement of the ’772 Patent, and related USPNs 11,966,920
`
`(“’920 Patent”), and 11,972,423 (“’423 Patent”): Alliance Laundry Systems, LLC v.
`
`PayRange Inc., 24-cv-733-MN (D. Del., filed June 20, 2024) (“the Delaware
`
`Litigation”). Patent Owner counterclaimed for infringement of the ’772 Patent, the
`
`’920 Patent, the ’423 Patent, and USPN 10,891,608 (“the ’608 Patent”). Petitioner
`
`subsequently filed a partial motion to dismiss Patent Owner’s counterclaims, which
`
`remains pending.
`
`On January 17, 2025, Petitioner filed a Petition for Post-Grant Review of
`
`Claims 1-20 of the ’920 and ’423 Patents. See PGR2025-00027; PGR2025-00028.
`
`Petitioner will soon be filing a Petition for Inter Partes Review against the ’608
`
`Patent.
`
`Shortly after Petitioner filed its complaint for declaratory judgment of
`
`noninfringement in the District of Delaware, Patent Owner filed complaints for
`
`infringement of the ’772 Patent (and the ’920 and ’423 Patents) in the Western
`
`District of Texas against Card Concepts, Inc. (“CCI”) and Nayax Ltd. (“Nayax”).
`
`See PayRange Inc. v. Card Concepts Inc., 6:24-cv-00339 (W.D. Tex., filed June 24,
`
`2024); PayRange Inc. v. Nayax Ltd., 24-cv-00340 (W.D. Tex., filed June 24, 2024).
`
`From the public docket, it appears that Nayax has not yet been served. On December
`
`
`
`
`5
`
`

`

`IPR2025-00573 Petition
`Inter Partes Review of U.S. Patent No. 11,481,772
`
`19, 2024, PayRange voluntarily dismissed its claims against CCI without prejudice.
`
`See PayRange Inc. v. Card Concepts Inc., 6:24-cv-00339, Dkt. 16 (W.D. Tex., Dec.
`
`19, 2024).
`
`III.
`
`IDENTIFICATION OF CHALLENGES: 37 C.F.R. § 42.104(b))
`Petitioner respectfully requests IPR and a determination that the Challenged
`
`Claims of the ’772 Patent are unpatentable based on the grounds listed below. Per
`
`37 C.F.R. § 42.6(c), copies of the references are filed herewith. In support of the
`
`proposed grounds of unpatentability, this Petition is accompanied by the Declaration
`
`of Dr. B. Clifford Neuman (Ex. 1003).
`
`Ground
`1
`
`35 U.S.C. Basis
`§ 103
`
`2
`
`§ 103
`
`Challenged Claims
`
`7
`
`11
`
`References
`Low in view of Arora
`
`Low in view of Arora
`in further view of
`Freeny and Casey
`
`See also Ex. 1003, ¶¶ 59-61.
`
`For at least the reasons set forth in this Petition, Petitioner respectfully
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`requests that the Board institute trial on the grounds set forth herein and determine
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`that the Challenged Claims are unpatentable.
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`Inter Partes Review of U.S. Patent No. 11,481,772
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`IV. BACKGROUND OF THE ’772 PATENT AND THE PRIOR ART
`A. The State of the Art Prior to December 2013
`The ’772 Patent states that “[v]ending machines…have been around for
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`thousands of years.” Ex. 1001, 1:45–46. The “first simple mechanical coin operated
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`vending machines were introduced in the 1880s.” Id., 1:46–47. Since at least the
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`1960’s, alternative payment methods for vending machine transactions—such as
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`credit cards—were in use. See Ex. 1003, ¶¶ 32–33; Ex. 1010. Vending machine
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`payment over communication lines also existed before the invention of the Internet.
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`Ex. 1003, ¶ 34; Ex. 1011.
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`Using a personal mobile device to conduct a vending machine transaction was
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`also well-known. For example, Räsänen discloses conveying information between
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`a vending machine and a mobile phone to conduct a transaction. See Ex. 1012; Ex.
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`1003, ¶¶ 35–37. Räsänen teaches that “a mobile telephone 8” comprises “a display
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`9,” “a keyboard 10,” and a “central processing unit [] 11.” See id.; Ex. 1012, 3:50–
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`65, Fig. 1, reproduced below:
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`Ex. 1012, Figure 1.
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`Using a mobile device to identify available vending machines based on
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`proximity was also well-known. For instance, Räsänen teaches that communications
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`over the local radio air interface protocol (RI1) are carried out over a small range.
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`Id., 3:46–49; see also Ex. 1003, ¶ 37. Mobile devices can then receive an alert when
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`it is within range of the vending machine. See id.; Ex. 1012, 4:1–10; see also Ex.
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`1013; Ex. 1003, ¶ 38.
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`Enabling mobile payment to an offline vending machine was also introduced
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`long before the ’772 Patent. Athwal describes a method for transacting a payment
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`using short-range communication that does not require the vending machine to be
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`connected to a wireless network. Ex. 1003, ¶ 39; Ex. 1014, ¶¶ 19–22; see also Figure
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`1:
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`Ex. 1016, Figure 1 (annotated).
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`
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`Using a mobile phone to provide the user interface for a vending machine
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`transaction was also well-known. Ex. 1003, ¶ 40. Räsänen teaches downloading
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`interface software instructions to the mobile phone, and that these downloadable
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`instructions may provide the user with a list of available goods, the prices of the
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`goods, and an affordance that, when pressed, indicates conclusion of the transaction.
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`See id.; Ex. 1012, 4:47–58.
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`B. Overview of the Alleged Invention of the ’772 Patent
`The ’772 Patent
`is entitled “Method and System for Presenting
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`Representations of Payment Accepting Unit Events.” Ex. 1001. The specification
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`explains that, historically, vending machines or “payment accepting units” required
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`“coins, bills, or payment cards,” but “[a]s the number of people with Internet-
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`connected mobile devices proliferates…[m]obile payment is a logical extension.”
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`Id., 2:2–12; Ex. 1003, ¶ 41.
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`The ’772 Patent discloses using a mobile device to “present[] representations
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`of payment accepting unit events on a display[.]” Id.; ¶ 42; Ex. 1001, Abstract.
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`Figure 27A is a flowchart for presenting representations of payment accepting unit
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`events. Id., 5:42–44; Ex. 1003, ¶ 42. Figures 27A and 27B are shown below:
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`Inter Partes Review of U.S. Patent No. 11,481,772
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`Ex. 1001, Figures 27A, 27B.
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` The ’772 Patent specification explains that “in some implementations, the
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`method 1400 is performed by the mobile device 150…or a component thereof (e.g.,
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`the application 140).” Id., 37:33–35. The mobile device sends a request to a
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`payment module to initiate a transaction with a payment accepting unit. Id, 37:42–
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`51. “After sending [the] request…the mobile device obtains (1402) a notification
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`from the payment module via the first communication capability, where the
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`notification indicates an event at the payment accepting unit associated with the
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`payment module.” Id. Then, “the mobile device provides (1406) a representation
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`of the notification to a user of the mobile device via the one or more output devices
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`of the mobile device.” Id., 38:4–7; see also Ex. 1003, ¶ 43.
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`C.
`Summary of the ’772 Patent Prosecution History
`The earliest patent application to which the ’772 Patent claims priority is U.S.
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`Provisional Application No. 61/917,936, filed December 18, 2013 (“the ’936
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`Provisional”). Ex. 1001, p. 2. The application that issued as the ’772 Patent was
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`filed on March 14, 2022. Id., p.1.
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`The only Office Action on the merits for the ’772 Patent application rejected
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`all pending claims under the obviousness-type double patenting over claims of
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`USPN 9,659,296 (“the ’296 Patent”), the ’614 Patent, and provisionally over
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`Application No. 17/147,305 (“the ’305 Application”). Ex. 1002, pp. 148–49. The
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`Examiner remarked that “[t]he only difference between the instant application and
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`the ’614 Patent is merely a labeling difference…. [A]ll the features of claims 1-20
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`are contained in claims 1-25 of the ’614 Patent.” Id., p. 149. The same remark was
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`made for the ’296 Patent, and the ’305 Application. Id., pp. 148–49. The Applicant
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`filed a terminal disclaimer in response. Id., pp. 164–65; see also Ex. 1003, ¶¶ 45–
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`48.
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`D.
`Priority Date of the Challenged Claims
`For purposes of this Petition, Petitioner takes no position on the proper priority
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`date for the Challenged Claims. Petitioner uses the earliest possible priority date
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`claimed, December 18, 2013, for the invalidity grounds presented in this Petition.
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`See also Ex. 1003, ¶ 21.
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`E.
`The Challenged Claims
`Claims 7 and 11 are challenged herein. Claims 7 and 11 depend from Claim
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`1, which was disclaimed by Patent Owner. See Ex. 1009. Claim 1 recites:
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`[1.P] A method of presenting representations of payment accepting unit
`events, comprising:
`[1.1] at a mobile device with one or more processors, memory,
`one or more output devices including a display, and one or more radio
`transceivers:
`[1.2] identifying one or more payment accepting units in
`proximity to the mobile device that are available to accept
`payment from a mobile payment application executing on the
`mobile device, [1.3] the identifying based at least in part on an
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`identifier corresponding to the one or more payment accepting
`units, [1.4] wherein the one or more payment accepting units are
`payment operated machines that accept payment for dispensing
`of products and/or services;
`[1.5] displaying a user interface of the mobile payment
`application on the display of the mobile device, [1.6] the user
`interface being configured to display a visual indication of the
`one or more payment accepting units and [1.7] accept user input
`to (i) receive selection by a user of the mobile device of an
`available payment accepting unit of the one or more payment
`accepting units and [1.8] (ii) trigger payment by the mobile
`payment application for a transaction initiated by the user of the
`mobile device with the available payment accepting unit of the
`one or more payment accepting units;
`[1.9] establishing via the one or more radio transceivers
`a wireless communication path including the mobile device and
`the available payment accepting unit of the one or more payment
`accepting units;
`[1.10] after establishing the wireless communication path,
`enabling user interaction with the user interface of the mobile
`payment application to complete the transaction;
`[1.11] exchanging information with the available payment
`accepting unit via the one or more radio transceivers, in
`conjunction with the transaction; and
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`[1.12] after exchanging the information, displaying, on the
`display, an updated user interface of the mobile payment
`application to the user of the mobile device.
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`Dependent Claim 7 recites:
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`[7.P] The method of claim 1, [7.1] wherein the mobile device includes
`an accelerometer and the method further comprises:
`[7.2] based on data from the accelerometer, determining
`whether the user is walking away from the available payment
`accepting unit; and
`[7.3] in accordance with a determination that the user is
`walking away from the available payment accepting unit,
`cancelling the wireless communication path.
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`Dependent Claim 11 recites:
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`[11.P] The method of claim 1, wherein the user interface of the mobile
`payment application, after establishing the wireless communication
`path, includes:
`[11.1] a visual representation of the available payment
`accepting unit;
`[11.2] an indication of a prepared balance;
`[11.3] an affordance that when slid, indicates initiation of
`the transaction;
`[11.4] wherein the affordance is slid in response to
`receiving a user input of swipe on the affordance displayed on
`the display of the mobile device.
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`SUMMARY OF THE ASSERTED PRIOR ART
`A.
`Low: U.S. Patent No. 10,210,501 (Ex. 1005)
`U.S. Patent No. 10,210,501 to Low et al. (“Low”) is titled “Electronic
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`V.
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`Payments to Non-Internet Connected Devices Systems and Methods.” Low issued
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`on February 19, 2019 from an application filed on July 25, 2013 and is therefore
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`prior art to the ’772 Patent under 35 U.S.C. §§ 102(a) and/or 102(d). See Ex. 1003,
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`¶¶ 28, 49.
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`Low teaches using a consumer’s wireless device to conduct transactions with
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`unmanned devices such as vending machines. Ex. 1005, 1:16–20. The wireless
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`device communicates with unmanned devices, which transmit a machine identifier
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`to the wireless device. Id., 2:11–28. “[I]n some embodiments, multiple machines
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`may send their unique identifiers, such that the user is able to select one or more
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`machines to purchase from.” Id., 2:11-28. The user then selects their desired items,
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`makes a purchase, and the vending machine dispenses the purchased item(s). Id.,
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`5:19–30. See also Ex. 1003, ¶ 50.
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`B.
`Arora: U.S. Patent No. 9,898,884 (Ex. 1006)
`U.S. Patent No. 9,898,884 to Arora et al. (“Arora”) is titled “Method and
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`System of Personal Vending.” Ar