PTAB

CBM2018-00022

Apple Inc v. Universal Secure Registry LLC

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Key Events
Petition
petition

1. Case Identification

2. Patent Overview

  • Title: Method and Apparatus for Secure Access Payment and Identification
  • Brief Description: The ’137 patent discloses a “Universal Secure Registry” (USR) system for authenticating a user's identity to enable a secure transaction and reduce fraud. The system uses a first device with a biometric sensor to authenticate a user, generate signals containing authentication information and a time-varying value, and transmit them wirelessly to a second device, which then returns an enablement signal to approve or deny the transaction.

3. Grounds for Unpatentability

Ground 1: Unpatentability Under 35 U.S.C. § 101 - Claims 1-12 are Directed to Patent-Ineligible Subject Matter.

  • Prior Art Relied Upon: Not applicable. This ground is based on the claims being directed to an abstract idea under 35 U.S.C. § 101, as interpreted by the Supreme Court in Alice Corp. v. CLS Bank Int’l.
  • Core Argument: Petitioner’s argument followed the two-step framework established in Alice.
    • Alice Step 1 (Abstract Idea): Petitioner argued that all challenged claims are directed to the abstract idea of "verifying an account holder's identity based on codes and/or information related to the account holder before enabling a transaction." Petitioner contended this is a fundamental economic practice as old as commerce itself and is not rooted in computer technology. Furthermore, Petitioner asserted that the claimed verification process is equivalent to a mental process, as a human could perform the same steps of comparing received information (e.g., a passcode) against stored information (e.g., a list) to grant or deny access.
    • Alice Step 2 (Inventive Concept): Petitioner argued that the claim limitations, viewed individually and as an ordered combination, fail to provide an inventive concept sufficient to transform the abstract idea into a patent-eligible application. The claims merely recite automating the abstract verification process using a collection of generic and conventional computer components, including processors, biometric sensors, wireless transceivers, and databases, all performing their well-understood and routine functions. Petitioner emphasized that the ’137 patent specification itself describes the invention as implementable on a "general-purpose computer system" with "any kind of database," thereby confirming the lack of a specific, inventive technological improvement. The addition of routine steps like generating signals, storing data in memory, or using generic encryption does not add "significantly more" to the abstract idea.

4. Key Claim Construction Positions

  • "Biometric Information": Petitioner proposed this term means "information about a user's physical characteristics, such as fingerprint, voice print, signature, iris or facial scan, DNA analysis, or personal photograph." This construction was used to anchor the claimed technology in well-known, conventional identification methods rather than any novel form of data or analysis, supporting the argument that the claims merely apply an abstract idea using generic tools.
  • "Secret Information": Petitioner proposed the construction "information known and input by an authorized user, such as a PIN, a phrase, a password, or a passcode of the user." This construction aimed to reinforce the position that the claims rely on fundamental, long-standing security concepts that are not technologically inventive.
  • "Authentication Information": Petitioner proposed this term means "information used by the system to verify the identity of an individual." This broad construction was intended to show that the term covers any generic verification data, further supporting the argument that the claims are directed to an abstract concept rather than a specific, concrete technical solution.

5. Relief Requested

  • Petitioner requests institution of a Covered Business Method review and cancellation of claims 1-12 of Patent 9,530,137 as unpatentable under 35 U.S.C. § 101.