Showing posts with label online shopping. Show all posts
Showing posts with label online shopping. Show all posts

Wednesday, March 10, 2010

Think The Way They Search - Installment 2


More on classifications and why they can help you learn to Think the Way USPTO Searches and how they think about what's in a patent.

In our first installment we talked about the Original or Primary classification on a patent or application respectively. This is the classification that appears in BOLD on in the US CL section of the patent or application. This classification determines which Group Art Unit at USPTO is going to examine your patent.

But what do the other classifications tell you? They are supposed to give you insight into rest of the inventive art that is disclosed in a patent or application. The classifications tell you what USPTO believes is in your patent or application is all about.

When the patents are classified, the person looking at the patent looks at every claim. Every single claim. They classify each claim independently and then pick the controlling claim which in turn determines which class/subclass pair will be the primary or Original classification.

Once that's done, they assemble the rest of the class/subclass data they created by classifying each claim and then create the mandatory classifications - the rest of the classes that appear to the right of the classification in BOLD on the front page of a patent or application. These classes describe the rest of the inventive art in the patent.

If you look at patent 5,960,411, Method and System for Placing a Purchase Order Via a Communications Network - the Amazon One Click Patent, it has three classifications.

705/26 - Electronic Shopping (e.g., remote ordering): ...enabling a user to inspect or select from a plurality of different items, or effect a purchase of one or more items at location geographically separated from the system user. This is the Original Classification that appears in BOLD.

This subclass is indented under Automated Electrical Financial or Business Practice or Management Arrangement (705/1). So it requires that the invention use an electrical apparatus and its methods which perform data processing operations.

705/27 - This class is indented under 705/26. This invention also includes presentation of image or description of sales items (e.g., electronic catelog browsing.) The invention includes the ability to inspect a listing or other visual or audiable representations of plural items available for purchase.

345/962 - The final classification is in Class 345 - Computer Graphics Processing ad Selective Visual Display Systems. This class appears on the image of the patent. It also appears on the Google Patents version of the patent above. And here is the rub. This class was abolished and replaced somewhere along the line. So, if you are looking at the image or the data on Google Patents you are not getting the correct information.

The USPTO full text database shows the final classification on the One Click patent as 715/962. This is an operator interface with visual structure or function dictated by the intended use. In particular it calls for a system with an operator interface for marketing and sales. To be in this class the invention will include features "wherein the given task is a commercial function involving user response."

So based on the claims, that's what USPTO says this patent is all about. Claim 6 is provided as an example. For anyone who has been following it or is licensing it this patent covers: (Comments in RED)

6. A client system for ordering an item comprising:

an identifier that identifies a customer; (this is the part where the system knows who you are and has stored info about you.)

a display component for displaying information identifying the item; (this is the part where you can see the items for sale.)

a single-action ordering component that in response to performance of only a single action, sends a request to a server system to order the identified item, the request including the identifier so that the server system can locate additional information needed to complete the order and so that the server system can fulfill the generated order to complete purchase of the item; and (Single-action - the one click part)

a shopping cart ordering component that in response to performance of an add-to-shopping-cart action, sends a request to the server system to add the item to a shopping cart. (the electronic shopping cart)

As anyone who's used Amazon's One Click feature, bought a song on iTunes, or ordered a pay per view movie with their remote control, what this is really about is being able to order an item using a single action where only a single action is required to complete the sale because the system already knows who you are.

I'm sure our business methods guys will be able to shine some light on how the reclassification of the Business Methods section of the classification schedule, Class 705. But in the meantime this gives you a feel for how to use the classifications to see what USPTO thinks a patent is about. When you load your invention disclosure into Cognition IP we return the patents that are the closest as well as the class they are in. It helps you figure out where your work might wind up.

So the classifications got you close but you are going to have to look at the patents in that space, the ones assigned those classifications, to figure out what has already been invented and the boundaries of what would be novel invention in light of what is already classified.




Monday, March 1, 2010

Bargains, Bargains, Where Are My Bargains?


Business Methods Monday

In last Monday's post I talked about how the USPTO significantly increased the resolution and complexity of the Discounts and Advertising portions of Class 705. Discount or incentive art are encompassed within subclasses 705/14.1 (Discount or Incentive) through 705/14/39 (Online Discount or Incentive). Advertisements are covered in subclasses 705.14.4 (Advertisement) through 705/14/73.

How much detail has been added? The discount portion of the schedule no includes 30 subclasses. All of that inventive art had previously been classified within a single class - 705/14.

Today we'll explore the broad outline of the Discount and Incentive subclass array.

To help you understand the new complexity in this Business Method Area you might want to open the Class 705 Schedule Page in another window and scroll down to subclass 14.1 as we walk through how discount and incentive patents are classified. You can also CLICK HERE.

Most of the new granularity in this area of the Class 705 schedule is indented one level further than that of the discount or incentive subclass (705/14.1) that introduces it. To be classified in this array, the claimed art must include a "price reduction of, or premium credit resulting from, the purchase of a good or service, or a commercial offer to incite, stimulate, or provoke an increase in business, through a commercial transaction" It is important to note that the mere mention of discount or incentive in name only, a nominal recitation in USPTO parlance, like just mentioning a "coupon" or "rebate" in the claims, is insufficient to classify are in this subclass.

The upper portion of the discount section of the Business Methods Schedule incorporates aspects such as specific activities required to receive an incentive (705/14.11 - trade or exchange of a good or service, 705/14.12 - playing a video game, 705/14.16 - referral reward, and 705/14.19 - giving input on a product or service, to name a few); analysis (705/14.13 - determining discount or incentive effectiveness); and finance or budgets (705/14.17 - financial account, 705/14.21 - based on funds or budget.)

Inventions dealing with re-usable coupons (705/14.22), incentives provided or redeemed during online transactions (705/14.23), incentives based on inventory (14.24), on user history (705.14.25), or on avoiding fraud (705/14.26) are found in the central portion of the schedule.

The most complex area of the Discount or Incentive art is related to frequent usage incentive systems (705/14.27). These systems include frequent flyer miles programs, point reward systems, and other incentives that require an individual to meet predetermined criteria for showing loyalty to a product, merchant, or service. The array of subclasses indented below frequent usage systems incorporate:
  • Frequent usage incentive value reconciliation between diverse systems
  • On-line clearinghouse
  • Multi-merchant loyalty card system
  • Awarding of a frequent usage incentive independent of monetary value of a good or service purchased, or distance traveled
  • Frequent usage reward other than merchandise, case, or travel
  • Method of redeemng a frequent usage reward
The bottom of the schedule includes subclasses addressing rebates after a completed purchase (705/14.34; timing of the incentive award or usage (705/14/35); requiring user registration or identification (705/14.36; at a kiosk (705/14.37) or point of sale (705/14.38;) or online discounts or incentives (705/14.39).

As of February 24, 2010, as I am writing this post, USPTO has placed 1,639 patents with an original classification within the discount or incentive area of Class 705. The majority of these patents (75%) are contained within eight of the 30 total subclasses into which USPTO has placed 99 or more patents. The subclasses are:
  • 705/14.1 -- Discount or incentive (e.g. coupon, rebate, offer, upsale, etc.)
  • 705/14.14 -- Chance discount or incentive
  • 705/14.26 -- Avoiding fraud
  • 705/14/27 -- Frequent usage incentive system (e.g. frequent flyer miles program, point system, etc.)
  • 705/14.35 -- Including timing (i.e limited awarding or usage time constraint)
  • 705/14.36 -- Incentive or reward received by requiring registration or ID from user
  • 705/14.38 -- At Point of Sale (POS)
  • 705/14.39 -- Online discount or incentive
Online discount or incentive (705/14.39) the last subclass in this list, contains 266 patents by far the largest number of any subclasses in the discount or incentive array. If inventors claim art that they believe falls within one of these eight subclasses, they will need to be diligent in searching for prior art to insure that they are applying for a unique invention.

Let us know your thoughts on these business methods patents by sending a comment.

Until next Monday - Mike