Jay Walker knows patents. The Connecticut entrepreneur, best known for creating priceline.com, is listed as an inventor on over 350 issued patents, and a few hundred more published applications. A sizable portion of these are squarely within Class 705; if you actively prosecute e-commerce business method patents, there's a good chance one of his applications or patents has been cited as prior art against you. Walker created an invention think-tank company, Walker Digital, to "incubate" these ideas and businesses based on them. Apparently those businesses, and a couple hundred million dollars in licensing deals, have done well enough for Walker to amass a small fortune, including a pretty amazing library in his home.
Walker has been in the business method game from the start, and for that he's been the subject of controversy. He was outspoken with excitement a decade ago after the State Street and AT&T decisions, and he has written the USPTO with his opinions on ways to improve the patent process. Some have speculated as to how much value the Walker Digital portfolio may have lost in light of the Bilski decision last fall. The extent to which this may be true is not clear, though priceline.com apparently felt it necessary to mention the case in the "Risks" section of its recently-filed 10-K.
What we do know, however, is that Walker Digital today was issued a patent that has a story worth telling.
Key terms are in bold.
U.S. Patent No. 7,523,045 Method and apparatus for a cryptographically assisted commercial network system designed to facilitate and support expert-based commerce Assignee: Walker Digital, LLC 1. A computer implemented expert matching method for managing communications between an expert and an end user, comprising: receiving a first expert qualification corresponding to a first expert; selecting a second expert that has a second expert qualification, the second expert qualification being higher than the first expert qualification; transmitting the first expert qualification to the second expert; and receiving a signal from the second expert that indicates approval of the first expert qualification. |
Commentary: Take out the words "computer implemented" and the only possible Bilski machine is that "signal", which won't cut it (it's not even statutory subject matter itself, per Nuijten). And there's no transformation, either. The Notice of Allowance came in February 2009, well after Bilski had been soaked up by the examining corps, particularly in the 3600 TC and class 705. Moreover, this claim actually made it through the BPAI in October 2008, two days before the Bilski decision. [Does anyone know why the decision is not available on the BPAI FOIA site? It's in the patent's IFW...]
So what happened here? For starters, know that this patent has the longest prosecution of any patent to issue today, filed in July 1998. First office action (of seven total) came nearly 10 years ago, in August 1999. By about OA #3, the Examiner -- the same one throughout the entire prosecution, amazingly -- decided to get kind of cute. Instead of finding a reference that taught the disclosed steps, he pointed to internal patent examination procedure. For example, a prosecution may include a primary examiner who is a first expert, and who in turn consults his SPE (a more highly experienced expert), etc. In later office actions, the Examiner actually cited the MPEP directly as codifying this "procedure."
And that's what went up to the BPAI in October 2008: an application with an examiner's cutesy rejection where the MPEP itself was the only cited prior art against the claims. The Board wasted little time in calling the Examiner's scenario "no more than a speculative hypothetical situation, rather than evidence of anticipation." It continued, "More critically, the Examiner's rejection is over the MPEP, not the business practices within which the MPEP is used." Because the MPEP itself did not describe the claimed steps, there was no prima facie case of anticipation. Reversed. (There is a 103 reversal, as well, with respect to other claims.)
That still doesn't explain why there was no sua sponte 101 rejection, as we've seen many times in the last few months (101 was never raised during prosecution). My guess is that the Board felt it was important to do some public smacking here (fresh in my mind is the Passover seder's story of the 'wicked son,' who asks a smart alec question for which we are instructed to "hit him in his teeth"). They didn't want to soften the blow with another rejection, turning the previous rejection into "harmless error". Thus the rebuked Examiner, with tail between his legs, allowed the claims to issue in February. [Question: could he have raised Bilski at that point, even if he wanted to? Or were his hands tied with the current record?]
So Walker appears to be the recipient of a gift from the BPAI, who chose to remain silent on 101 in order to teach a lesson. Had their decision come a week later, post-Bilski, this may not have been so easy for the Board to do.
The practitioner's takeaway practice tip: if faced with an examiner too smart for his own good, (and we've all faced them...), it's worth pushing up the ladder.
[4/23/09 Postscript: The parent of this patent, U.S. Patent No. 5,862,223, was one of several patents singled out by Judge Mayer in his Bilski dissent as examples that "Patents granted in the wake of State Street have ranged from the somewhat ridiculous to the truly absurd." (Slip op. at 12). Another Walker patent, 6,119,099, also appears in that list.]
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