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Full Opinion
Opinion for the court filed by Circuit Judge CHEN. Opinion dissenting-in-part filed by Circuit Judge SCHALL.
These related appeals arise from five Covered Business Method (CBM) reviews of five patents owned by Blue Calypso, LLC (Blue Calypso): U.S. Patent No. 7,664,516 (the '516 patent), U.S. Patent No. 8,155,679 (the '679 patent), U.S. Patent No. 8,457,670 (the '670 patent), U.S. Patent No. 8,438,055 (the '055 patent), and U.S. Patent No. 8,452,646 (the '646 patent) (collectively, the Blue Calypso Patents). The United States Patent and Trademark Office, Patent Trial and Appeal Board (Board) granted the petitions, filed by Groupon, Inc. (Groupon), for review under the transitional program for covered business method patents. In its final written decisions, the Board found various claims of the Blue Calypso Patents unpatentable under 35 U.S.C. § 102. The Board further found certain claims of the '516 patent unpatentable under § 112. In addition, the Board rejected Grouponâs remaining argument that additional claims were un-patentable under 35 U.S.C. § 103.
Blue Calypso now appeals the Boardâs decisions to review its patents, asserting that they are not âcovered business methodâ patents. Blue Calypso also appeals the Boardâs unpatentability determinations. In its cross-appeal, Groupon contends that the Board erred in rejecting its obviousness arguments. For the reasons
Background
I
The Blue Calypso Patents are all related and generally describe a peer-to-peer advertising system that uses mobile communication devices. The '516 patent
Neither party argues the challenged claims separately. We therefore use claim 2 of the '516 patent as representative:
2. A method for providing access to an advertisement from an advertiser to a source communication device possessed by a subscriber and distributing the access to the advertisement from the source communication device to a destination communication device possessed by a recipient, wherein the destination communication device is compatible with the source communication device, and the recipient having a relationship to the subscriber, the method comprising the steps of:
comparing a desired demographic profile to a subscriber demographic profile to derive a match;
establishing a bi-lateral endorsement between the subscriber and the advertiser; providing a subsidy program to the subscriber based on the match;
sending a token related to the advertisement to the source communication device;
activating an endorsement manager in the source communication device; initi*1337 ating a communication session between the source communication device and the destination communication device; transmitting a message, including the token, from the source communication device to the destination communication device contemporaneously with the communication session; and recognizing a subsidy, according to the subsidy program, for the subscriber after a termination of the communication session.
Id. at 7:45-8:3 (claim 2) (emphases added).
II
Groupon petitioned the Board for CBM review of the Blue Calypso Patents under § 18(a) of the Leahy-Smith America Invents Act (AIA). Groupon asserted that the claims were unpatentable under either 35 U.S.C. § 102 or § 103. In addition, Groupon asserted that a number of claims of the '516 patent were unpatentable for failing to satisfy the written description requirement of 35 U.S.C. § 112. After examining the claims, the Board concluded that they met the statutory definition of a âcovered business method patent,â granted the petition, and instituted review.
In its final written decisions, the Board found that claims 2-15, 20-23, and 29 of the '516 patent; claims 7-16 and 23-27 of the '679 patent; claims 1-5 of the '670 patent; and claims 1, 4-6, 10, and 14 of the '055 patent were all anticipated by United States Patent Application Publication No.2002/0169835 (Paul). In addition, the Board found that claims 1-19, 23-25, and 29 of the '516 patent were unpatentable under 35 U.S.C. § 112 as lacking adequate written description. The Board then rejected Grouponâs assertions that claims 4-9 of the '646 patent, as well as additional claims from the remaining four patents, were unpatentable as anticipated or obvious in light of a report published on a webpage by a graduate student at the University of Maryland Baltimore County Department of Computer Science and Electrical Engineering (Ratsimor). The Board found that Groupon failed to prove that Ratsimor was sufficiently publicly available to qualify as prior art.
Blue Calypso filed a timely appeal from the Boardâs decision, Groupon filed a cross-appeal, and the Director intervened for the limited purpose of defending the Boardâs determination that the challenged patent claims are âcovered business methods.â We have jurisdiction under 28 U.S.C. § 1295(a)(4)(A).
Discussion
We review the Boardâs conclusions of law de novo and its findings of fact for substantial evidence. 5 U.S.C. § 706(2)(E); In re Sullivan, 498 F.3d 1345, 1350 (Fed.Cir.2007). âSubstantial evidence is more than a mere scintilla. It means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.â Consol. Edison Co. of N.Y. v. NLRB, 305 U.S. 197, 217, 59 S.Ct. 206, 83 L.Ed. 126 (1938).
In this appeal, Blue Calypso raises three primary arguments. First, Blue Calypso argues that the Board should not have conducted CBM review of the patents at issue because, in Blue Calypsoâs view, they do not claim âcovered business methods.â Second, Blue Calypso âą asserts that the Board incorrectly found that Paul anticipated many of Blue Calypsoâs patent claims. Finally, Blue Calypso objects to the Boardâs finding that the contested claims of the '055 were unpatentable for lacking written description support. In its cross-appeal, Groupon contends that the Board erred in concluding that Ratsimor was not prior art.
Blue Calypso begins by arguing that the PTO and the Board exceeded their statutory authority by interpreting the statutory CBM definition in an overly broad way that improperly sweeps in Blue Calypsoâs patents. In Blue Calypsoâs view, the Board never should have instituted the CBM review of its patents. Although the Boardâs decision to institute a CBM review is, per the AIA, âfinal and nonappealable,â see AIA § 18(a)(1); 35 U.S.C. § 324(e), we have held that the question of whether a challenged patent claim is a CBM relates to the Boardâs authority to issue a final decision in a CBM review. Versata Dev. Grp., Inc. v. SAP Am., Inc. ('Versata II), 793 F.3d 1306, 1318-23 (Fed.Cir.2015). Thus, because we have jurisdiction to review the Boardâs final decisions in CBM reviews, see AIA § 18(a)(1); '35 U.S.C. § 329, the AIA does not preclude us from reviewing the Boardâs conclusion that the challenged patent claims are âcovered business methodsâ that lack any âtechnological invention,â Versata II, 793 F.3d at 1323.
A
CBM review is limited to patents âthat claim[] a method or corresponding apparatus for performing data processing or other operations used in the practice, administration, or management of a financial product or service, except that the term does not include patents for technological inventions.â AIA § 18(d)(1). Blue Calypso asserts that its patents are not CBM patents because they relate to a method for managing and distributing advertising content, which is not âa financial product or serviceâ that traditionally originated in the financial sector, e.g., banks, brokerages, holding companies and insurance firms. These arguments are foreclosed by our recent decisions in Versata II and in SightSound Techs., LLC v. Apple Inc., 809 F.3d 1307 (Fed.Cir.2015).
In Versata II, we examined the statutory definition of CBM patents, the relevant legislative history, and the PTOâs statements in its Notice of Final Rulemaking and concluded that the statute âon its face covers a wide range of finance-related activitiesâ and â[t]he statutory definition makes no reference to financial institutions as such, and does not limit itself only to those institutions.â 793 F.3d at 1325. In reaching this conclusion we referred to the PTOâs Notice of Final Rulemaking, which observed that âthe legislative history supported the proposition that the definition, [of CBM] be broadly interpreted to âencompass patents claiming activities that are financial in nature, incidental to a financial activity or complementary to a financial activity.ââ Id. at 1324 (quoting Transitional Program for Covered Business Method Patents â Definitions of Covered Business Method Patent and Technological Invention, 77 Fed. Reg. 48734, 48735 (Aug. 14, 2012)). More recently, in SightSound, we agreed with the Board that âa âfinancial activityâ not directed to money management or banking can constitute a âfinancial product or serviceâ within the meaning of the statute.â 809 F.3d at 1315. Here, the Board declined to limit the application of CBM review to patent claims tied to the financial sector. This determination is consistent with our recent case law.
Blue Calypso alternatively contends that the challenged claims fall within the technological invention exception for CBM review because the claims are computer-based and contemplate hardware, software, a network, and communication devices. Versata II also addressed the technological inventions exception. Congress created the technological inventions exception in § 18(d)(1), but expressly dele
B
This leaves the question of whether the Board correctly applied the definitions of âcovered business methodâ and âtechnological inventionâ to the Blue Calypso Patents. We review the Boardâs reasoning under the arbitrary and capricious standard and its factual determinations under the substantial evidence standard. Sight-Sound, 809 F.3d at 1315.
1
In determining that the Blue Calypso Patents are CBM patents, the Board reviewed the claims, noting, for example, claim lâs recitation of âsubsidizing the qualified subscriber according to the chosen subsidy program,â see '516 patent, 7:39-40 (claim 1). The Board construed the claim term âsubsidyâ as âfinancial assistance given by one to another.â Groupon, Inc. v. Blue Calypso, LLC, No. CBM2013-00035, 2013 WL 8538881, at *5 (PTAB Dec. 19, 2013) (Institution Decision).
We agree. Significantly, Blue Calypso has not challenged the Boardâs interpretation of subsidy as âfinancial assistance given by one to another.â Thus, under this unchallenged interpretation, the claims of the Blue Calypso Patents are directed to methods in which advertisers financially induce âsubscribersâ to assist their advertising efforts.
In its Reply Brief, Blue Calypso asserts that we should reverse because the claims of the Blue Calypso Patents are not as âblatantly money-relatedâ as the patent at issue in Versata II. To support this argument, Blue Calypso points to the titles of the Blue Calypso Patents and the title of the patent in Versata II. This argument fails, however, because § 18(d)(1) directs us to - examine the claims when deciding whether a patent is a CBM patent. Blue Calypso also argues that, based on the Blue Calypso Patentsâ specifications, the âsubsidyâ recited in the claims need not be financial in nature. This argument is also unsuccessful. To the extent that Blue Calypso is objecting to the Boardâs interpretation of the âsubsidyâ claim term, Blue Calypso has waived that argument by failing to challenge the Boardâs claim construction in its opening brief.
We are also unpersuaded by Blue Calypsoâs argument that the Board has acted in aii arbitrary or capricious manner through an âunpredictable applicationâ of the CBM definition. Appellant Reply Br. 3. For this argument, Blue Calypso relies on a handful of Board decisions declining to institute CBM review on patents unrelated to the Blue Calypso Patents. See FedEx Corp. v. Katz Tech. Licensing, L.P., CBM2015-00053 (PTAB June 29, 2015); Sega of Am., Inc. v. Uniloc USA, Inc., CBM2014-00183, 2015 WL 1090176 (PTAB Mar. 10, 2015); Salesforce.com, Inc. v. Applications in Internet Time LLC, CBM2014-00168 (PTAB Feb. 2, 2015); J.P. Morgan Chase & Co. v. Intellectual Ventures II LLC, CBM 2014-00160 (Jan. 29, 2015). Contrary to Blue Calypsoâs argument, each of these cases properly focuses on the claim language at issue and, finding nothing explicitly or inherently financial in the construed claim language, declines to institute CBM review. In contrast, the claims at issue in the instant case have an express financial component in the form of a subsidy, or financial inducement, that encourages consumers to participate in the distribution of advertisements. As the Board noted, the subsidy is central to the operation of the claimed invention.
Accordingly, none of Blue Calypsoâs arguments persuades us that the Boardâs reasoning is arbitrary or capricious or that its findings are not supported by substan
2
Blue Calypso next contends that the claims represent technological inventions because they are directed to a solution that remedies technological limitations of traditional broadcast advertising. We disagree. Claim 1 of the '516 patent, for example, recites âa system comprising a network, a source communication device, a destination communication device and an intermediary connected to the network.â '516 patent, 7:8-10. These elements are nothing more than general computer system components used to carry out the claimed process of incentivizing consumers to forward advertisement campaigns to their peersâ âdestination communication device[s].â Blue Calypso has not pointed to any technological aspect in the claims that rises above the general and conventional. Thus, just as in Versata II, conventional computer components cannot change the fundamental character of Blue Calypsoâs claims.
* # % ?â ?
Because the Boardâs decisions that the patents are CBM patents that do not claim a technological invention are not arbitrary or capricious and are supported by substantial evidence, we conclude that the Board acted within its authority in conducting CBM review of the challenged claims of the Blue Calypso Patents.
II. Anticipation
Blue Calypso next argues that the Board erred in finding that Paul anticipates many of Blue Calypsoâs claims. Anticipation is a question of fact that we review for substantial evidence. Kennametal, Inc. v. Ingersoll Cutting Tool Co., 780 F.3d 1376, 1381 (Fed.Cir.2015). Under 35 U.S.C. § 102(b),
In finding that Paul anticipates several of Blue Calypsoâs patent claims, the Board made numerous factual determinations. First, the Board found that Paul discloses âan Internet-based e-mail communications system that broadcasts communications to members.â Growpon, Inc. v. Blue Calypso, LLC, CBM 2013-00035, 2014 WL 7273563, at *16 (PTAB Dec. 17, 2014) (Final Written Decision). The Board further explained that this communications system consisted of numerous âtools,â including one that âallows the users to develop and manage an eiriail direct marketing campaign that sends personalized e-mail messages to members whose member records match parameters identified for the campaign,â and another tool that âprovides a ârefer a friendâ advertising campaign that provides a coupon to a member who is successful in referring a friend to the web site of the business.â Id. Both of these
Blue Calypso does not dispute that Paul discloses both of these tools or that Paul teaches the other elements in the claims of the Blue Calypso Patents.
[[Image here]]
Paul Reference, Figure 5 (annotations added).
The Board read Paul differently. The Board first disagreed with Blue Calypsoâs characterization of Paul as disclosing multiple, separately isolated methods. The Board noted Paulâs disclosure that a user âis enabled to conduct direct marketing campaigns using a computer program generally identified as a âcampaign managerâ herein.â Paul, ¶ 51. In addition, the Board pointed to Paulâs explanation that its sys-tern empowers users to âhave the ability to create numerous types of e-mail campaigns, such as ârefer a friendâ campaign, through the campaign manager program.â Id. ¶ 50. Based on these disclosures, the Board concluded that âthe campaign manager computer program is a single computer program that provides tools options for the user to develop the campaigns.â Final Written Decision, at *17.
The Board then recognized that although Paul did not explicitly disclose an
as different tool options of the campaign manager in the e-mail communications system, one of ordinary skill in the art would understand that the direct e-mail campaign tool option was to be used in conjunction with the ârefer-a-friendâ campaign tool option to send ârefer-a-friendâ email message incentives to a subset of the members based on member demographic characteristics. To determine otherwise would require a finding that one of ordinary skill in the art, when reading Paul, would come to the conclusion that the only option would be to send a ârefer-a-friendâ email to all members. We do not find that one of ordinary skill in the art would have understood Paul to be so restrictive.
Final Written Decision, at *18. The Board also observed that the declaration of Grou-ponâs expert, Dr. Joshi, also supported this conclusion. See Joint Appendix (J.A.) 1643, ¶ 93 (opining that these disclosures in Paul established âthat one of ordinary skill in the art would understand this to mean that a [user] can use the campaign manager ... in order to send targeted referral emailsâ).
On appeal, Blue Calypso asserts that the Boardâs analysis runs contrary to our case law requiring that the purportedly anticipatory reference must not only disclose all elements of the claim, but must also disclose those elements âarranged as in the claim.â See, e.g., Net MoneyIN, Inc. v. VeriSign, Inc., 545 F.3d 1359, 1369 (Fed.Cir.2008) (reversing a district courtâs summary judgment of invalidity for anticipation because the defendant did not present any argument or evidence demonstrating that the reference contained any disclosure of the limitations arranged as in the claim). This case is distinguishable from Net Mon-eyIN because, in contrast to the reference in that case, Paul explicitly contemplates the combination of the disclosed functional-ities. In addition, the Board reviewed expert testimony that supported its factual determination that one of skill in the art would read the reference as disclosing the ability to combine the tools to arrive at the invention recited in the Blue Calypso Patents. Both of these key factors were absent from Net MoneyIN.
These distinctions demonstrate that the present case is more akin to our decision in Kennametal, where we recognized that âa reference can anticipate a claim even if it âd[oes] not expressly spell outâ all the limitations arranged or combined as in the claim, if a person of skill in the art, reading the reference, would âat once envisageâ the claimed arrangement or combination.â 780 F.3d at 1381 (quoting In re Petering, 301 F.2d at 681). The prior art reference in Kennametal disclosed a cutting tool assembled by combining different classes of materials with multiple options for each class. Id. at 1379-80. The disputed claims were directed to a specific combination of these materials disclosed in the reference. Id. at 1379. The specific combination recited in the claims of the disputed patent was not explicitly disclosed in the prior art reference. Id. The party challenging the claimâs patentability argued, and the Board accepted, that the reference anticipated each of the numerous possibilities that resulted from the permutations of the options disclosed in the ref
.Here, the Board found that Figure 5 of Paul, and the corresponding passages of the written description, disclose a limited number of tools. In addition, the Board found that, given Paulâs discussion of combining features disclosed therein, a skilled artisan would âat once envisageâ the combination of two of the disclosed tools â -refer-a-friend and campaigns â to arrive at the system claimed in the Blue Calypso Patents. We agree. Just as in Kennametal, there is no suggestion here that one of skill in the art would not have the ability to use the direct e-mail campaign tool option .in conjunction with the refer-a-friend campaign tool to send refer-a-friend e-mail message incentives to a subset of the members based on member demographic characteristics.
For these reasons, we conclude that the Boardâs findings are supported by substantial evidence. Accordingly, we affirm the Boardâs determination that the disputed claims are anticipated by Paul.
III. Written Description
Blue Calypso also argues that the Board erred in finding claims 1-19, 23-25, and 29 of the '516 patent unpatentable for failing to satisfy the written description requirement of 35 U.S.C. § 112.
Groupon argued that the term âendorsement tagâ in independent claim 1 and the term âtokenâ in independent claim 2 lack written description support. For example, claim 1 recites in relevant part
providing an endorsement tag related to the at least one advertiser of the group of advertisers and linked with the 'advertising content; ...
receiving a signal from the recipient through execution of the endorsement tag to transmit the advertising content; and,
transmitting the advertising content to the recipient.*1345 sending a token related to the advertisement to the source communication device; ...
*1345 transmitting a message, including the token, from the source communication device to the destination communication device contemporaneously with the communication session....
Id. at 7:58-67 (emphases added). As noted by the Board, the parties agreed both terms should be construed as âexecutable link, such as a hyperlink.â
Before the Board, Groupon argued that these claim terms â âendorsement tagâ and âtokenâ â lacked written description support because the terms are absent from the written description of the '516 patent. Blue Calypso, on the other hand, asserted that a skilled artisan would understand that these claim terms refer to an executable link and the written description specifically describes usage of an executable link in the same way that the claims recite using an âendorsement tagâ or âtoken.â The Board responded to these arguments by first acknowledging that the specification need not explicitly âuse the term[s] or otherwise describe exactly the subject matter claimed.â Final Written Description, at *21. Nevertheless, the Board ultimately rejected Blue Calypsoâs argument and stated that
Patent Owner asserts further that the burden is on Petitioner to show lack of written description, and because Petitioner has only provided attorney argument, and no evidence, they cannot meet that burden. We are not persuaded, however, because Petitioner provided the most persuasive evidence of all; that the 'lllp application[, the application that issued as the '516 patent,] does not recite âendorsement tagâ [or âtokenâ].
Id. at *23 (emphasis added).
Blue Calypso now argues that the Board impermissibly elevated the fact that these terms are absent from the '516 patentâs written description. We agree.
The written description requirement is an important component of maintaining the integrity of our patent system. To accomplish this goal, § 112 mandates that the specification must contain a description of the claimed subject matter. Even so, when examining the written description for support for the claimed invention, we have held that the exact terms appearing in the claim âneed not be used in haec verba.â Lockwood v.- Am. Airlines, Inc., 107 F.3d 1565, 1572 (Fed.Cir.1997). We are therefore troubled by the fact that the Board did not cite any evidence other than the fact that the terms were not present in the specification to support its finding. In fact, the only evidence that Groupon placed in the record to support unpatenta-bility was Dr. Joshiâs declaration that â[o]ne of ordinary skill in the art would not define the terms âendorsement tag,â âtoken,â and âlinkâ to necessarily have the same meaningâ and that these terms have other meanings in the art. J.A. 1658, ¶¶ 129-30. The Board did not cite this evidence in its final written decision. Moreover, even if the Board had relied on Dr. Joshiâs declaration, it would not pro
Our conclusion that Groupon failed to carry its burden of demonstrating unpatentability under § 112 is further supported by the figures of the patent, the specification, and the claim language.
[[Image here]]
'516 patent, Figure 4 (annotation added). Specifically, Figure 4, with its corresponding disclosure, explains that in step 66, âthe recipient may click on the advertisement to link, via the Internet, to the advertiserâs or another designated website for additional information or further action.â Id. at 5:17-44. This disclosure corresponds to the steps in claim 1 where the system âprovide[s] an endorsement tag re
Despite this explanation in the written description, as well as the context provided in the claim itself (âlinksâ âexecut[es]â), Groupon argues that we can nevertheless affirm the Boardâs finding. First, Groupon points to the term âlinkâ in different claims (claims 25 and 27) and contends that the doctrine of claim differentiation requires that âtokenâ and âtagâ must have a different definition. Claim 25 recites â[t]he method of claim 24 where the step of sending a text message to the destination communication device includes the additional step of sending an advertising link in the text message.â Id. at 10:47-50 (emphasis added). Claim 27 recites â[t]he system of claim 26 where the text message includes an active link.â Id. at 10:53-54 (emphasis added). We recognize that, under our decision, the use of âlinkâ in these claims would express the same concept as the use of âtagâ and âtokenâ in the challenged claims. But, as discussed above, the context in which âtagâ and âtokenâ are used demonstrates that the inventor intended these terms to refer to the same concept as âlinkâ in claims 25 and 27: an executable link. As in Innova/Pure Water, Inc. v. Safari Water Filtration Systems, Inc., âthis is simply a case where the pat-entee used different words to express similar concepts even though it may be confusing drafting practice.â 381 F.3d 1111, 1120 (Fed.Cir.2004).
Next, Groupon relies on the prosecution history of the '516 patent and notes that the terms âendorsement tagâ and âtokenâ were added after the examiner rejected the claims. The amendments to which Groupon points, however, consisted of much more than inserting the words âendorsement tagâ and âtokenâ; these words were inserted as part of an extensive re-write of all the claims in the application. As such, this observation has little bearing on our analysis. Finally, Groupon notes that shortly after these terms were added to the claims, the inventor filed a continuation-in-part application that included additional explanations related to tags and tokens. This too has little significance because it provides no insight into the relevant inquiry of whether the four corners of the '516 patent provide written description support for the claim terms at issue. We recognize that these arguments could be relevant if they were argued in the context of a claim construction dispute. However, Groupon agreed to a construction of these terms, and the Board effectively acknowledged that the written description is met under that construction. Groupon cannot now dispute a claim construction to which it previously agreed. See Abbott Labs. v. Syntron Bioresearch, Inc., 334 F.3d 1343, 1352 (Fed.Cir.2003). When considered solely in the context of whether the claim terms are adequately supported by the written description, these arguments fail.
For these reasons, we conclude that the Board erred by giving improper weight to the mere fact that âtagâ and âtokenâ are absent from the text of the written description. In addition, none of Grouponâs arguments persuades us that the Boardâs conclusion that the challenged claims are unpatentable under § 112 is nevertheless supported by substantial evidence. We therefore reverse the Boardâs conclusion that these claims are unpatentable as lacking adequate written description support.
IV. Public Availability of Ratsimor
In its cross-appeal, Groupon requests that we reverse the Boardâs decision that Ratsimor was not a printed publication and
Before the Board, Groupon argued that additional claims of the Blue Calypso Patents were unpatentable as anticipated or obvious in light of Ratsimor. Groupon asserted that Ratsimor was available via a hyperlink located on a personal webpage created by a graduate student before the critical date of the Blue Calypso Patents. According to Groupon, this reference was therefore a printed publication under § 102(b). The Board disagreed, concluding that even if Ratsimor was available on the internet, the evidence Groupon presented was insufficient to find that the report was publicly accessible. Therefore the Board concluded that Ratsimor was not a printed publication and could not be used to prove unpatentability under either § 102 or § 103.
A
Section 102 provides that âA person shall be entitled to a patent unless ... (b) the invention was ... described in a printed publication ... more than one year prior to the date of the application for patent....â This rule is âgrounded on the principle that once an invention is in the public domain, it is no longer patentable by anyone.â