Posts Tagged: "financial patents"

InvestPic filed a combined petition for panel rehearing and rehearing en banc on June 19, 2018, making two arguments. First, that the original decision must be vacated and remanded because the claims considered by the district court and the panel were surrendered as the result of two reexaminations that ultimately resulted in the original claims being lost, with new claims awarded in their place. Second, that the panel’s decision is alleged to be inconsistent with decisions of prior panels, which found claims lacking improvements in the physical-realm could still be patent eligible improvements. This second argument goes on to assert that the ruling of the panel would effectively preclude groundbreaking innovations in the field of data science to be considered patent eligible moving forward.

The SEC has landed on a definition which includes both permissioned distributed ledgers and permissionless distributed ledgers in the term “blockchain.” This is not surprising, nor is it necessarily the result of a misinformed view. There are lots of market opportunities and reasons for enterprise permissioned distributed ledgers, as there was always market appetite for permissioned systems in general. These ventures use the term “permissioned blockchain” intentionally and purposefully. After all, the transactions are batched in blocks that are linked to each other. So, there is a chain of blocks, and some kind of consensus protocol. But is that sufficient for a blockchain, really? And what ‘blockchain’ is the SEC referring to when it references “the blockchain”?

Margaret Weichert, Trump’s selection for deputy director of management at the OMB, is an inventor who has received “14 successful U.S. patents,” an indication that someone knowledgeable about patents and the U.S. patent system will have a role in shaping U.S. policy on the budget for the executive branch, including the U.S. Patent and Trademark Office. As an inventor and entrepreneur, Weichert’s focus was squarely on financial networking and online transactions.

The U.S. Court of Appeals for the Federal Circuit issued a decision in Return Mail, Inc. v. United States Postal Services (USPS), which affirmed a finding of patent invalidity stemming from a December 2015 decision by the Patent Trial and Appeal Board (PTAB). Although not an issue discussed in the Federal Circuit decision, there is some question as to whether this particular covered business method (CBM) review was properly limited to financial service business method patents in light of at least one previous decision by a different Federal Circuit judicial panel, which overturned an invalidity finding for improper institution of a CBM.

The concept of the central clearing house in financial systems could be completely obviated with the use of blockchain. Blockchain is a distributed database system that decentralizes the financial ledger; instead of the ledger being held and checked by the clearing house, each member of the blockchain network receives an updated ledger every time a transaction is made on the system. It’s a peer-to-peer system which reduces financial transaction risk through massive redundancy. With every member of the blockchain system holding a copy of the ledger for every transaction that has been completed, going back to the beginning of the blockchain, it becomes easier to identify malicious activity on the financial network or prevent transactions if users don’t have enough cryptocurrency. New transactions are recorded on blocks, which are added to the blockchain. Blockchain systems like bitcoin often reward those in the blockchain system who offer their computing resources to record new blocks; this incentivized process is known as mining.

U.S. Patent No. 9378491, entitled Payment Transfer by Sending E-mail. This discloses a computer-implemented method which enables the seamless initiation of a payment transfer through e-mail from one mobile device to another without creating an account or logging into a service. The innovative system is designed for both simplicity of use as well as security and authentication in online financial transactions. A final rejection issued by a patent examiner on the ‘491 patent dated December 8th, 2014, doesn’t specifically mention Alice v. CLS, but the case’s effect on the examiner’s decision seemed evident. In arguments made in response to the final rejection, Square’s prosecution team on the ‘491 patent noted that it had amended the claims to make the patentable features of those claims more explicit.

The availability of PTAB patent review proceedings to address low quality patents is especially important in the financial services sector where, prior to Federal Circuit’s decision in State Street Bank v. Signature Financial Group, there was a lack of emphasis on patenting financial services innovation. As a result, patent examiners, who regularly search issued patents and published patent applications for prior art, often may not have access to prior art they need to avoid issuing patents on previously known technologies.

It looks like Apple is looking to edge into the mobile virtual reality market dominated by Samsung’s Gear VR with the technology outlined by U.S. Patent Application No. 20160085076, entitled Head-Mounted Display Apparatus for Retaining a Portable Electronic Device with Display. This innovation is designed to eliminate wired connections in head-mounted displays which may be cumbersome to users. Fitness tracker technologies are another area of focus for Apple’s R&D, as is evidenced by the filing of U.S. Patent Application No. 20160058372, titled Terrain Type Inference from Wearable with Motion Sensing. This invention is designed to provide more accurate reports of calorie expenditures during aerobic exercise, which can vary based on the type of terrain being traversed.

Innovation in the automotive sector was a huge story, both for the types of technologies being developed and the companies pursuing the R&D in that field. Drones and robotics also played a role in other top patent applications which we’re profiling today. Rounding out our list of top 2015 innovations includes an emotion analysis system for financial security, wireless charging schemes, low-power communications for wearable devices and a greenhouse window that can generate electricity while improving crop yield.

Many of the patents we noticed in our recent survey of BofA technologies are related to enhanced security methods for financial transactions, such as the innovation protected by U.S. Patent No. 9218596, entitled Method and Apparatus for Providing Real Time Mutable Credit Card Information. It discloses a smartcard apparatus having a microprocessor chip, a button, a dynamic transaction authorization number and a Bluetooth low energy device (BLE) that works to transmit an instruction to a smartphone for a request for a dynamic transaction authorization number when the button is depressed and receive the number from the smartphone; the smartcard further has a battery and a dynamic magnetic strip comprising a digital representation of the dynamic authorization number. This technology is designed to enhance security measures in smartcards having magnetic strips without requiring a banking institution to issue new cards. Enhanced security for banking transactions taking place on cloud infrastructures is featured within U.S. Patent No. 9184918, entitled Trusted Hardware for Attesting to Authenticity in a Cloud Environment. I

We’ve been seeing a great influx of high tech companies entering the automotive industry this year, especially in the field of autonomous self-driving vehicles, so we’re not too surprised to see the issue of U.S. Patent No. 9134731, entitled Locality Adapted Computerized Assisted or Autonomous Driving of Vehicles. This Intel patent protects an apparatus for computerized assisted or autonomous driving of vehicles which has at least one processor, a policy generator operated by a processor to receive data associated with a plurality of vehicles within a locality and to generate locality specific policies for computerized assisted or autonomous driving of vehicles within the locality so that vehicles are driven in a manner that is adapted for the locality. This innovation is intended to improve the deployment of autonomous vehicles in developed economy markets, like America and Japan, where there are large populations of experienced drivers as well as strictly enforced codified traffic laws.

Mobile devices were the subject of a pair of recently issued Bank of America patents recently. It was at least a little intriguing, however, that the invention relates more to personal security than the protection of financial accounts. U.S. Patent No. 8922657, entitled Real-Time Video Image Analysis for Providing Security, claims a method for providing security to a user by receiving an image of an area frequented by a user, building a directory of non-human object and individual data within that area, recognizing variations between the data directory and a real-time video stream of the area and presenting selectable indicators of recommended security actions associated with the variations to a user via a mobile device. The innovation is intended to provide smartphone owners and other mobile device users with an augmented reality service for identifying unwanted home intrusions and offer them options for contacting authorities.

Interestingly, we noted a great number of innovations filed by IBM that extend into the field of financial services. The company has already been working to develop Bitcoin-style systems, especially the “blockchain” digital currency transaction list supporting Bitcoin, that are capable of serving as digital cash and payment mechanisms for major currencies.