Claim Involving “Transfer of Money” Qualifies as “Financial Service” Required for CBM Review

The Board denied the petition for CBM review, but determined that the challenged patent satisfied the “financial product or service” requirement for CBM review. "Claim 1 of the [challenged patent] is directed to . . . the electronic sale of digital audio. Claim 1 recites 'transferring money electronically via a telecommunication line to the first party . . . from the second party.' The electronic transfer of money is a financial activity, and allowing such a transfer amounts to providing a financial service. . . . [C]ontrary to Patent Owner’s view . . . the legislative history indicates that the phrase 'financial product or service' is not limited to the products or services of the 'financial services industry' and is to be interpreted broadly. . . . Although claim 1 . . . does not relate to a financial services business, it does recite the electronic movement of money between financially distinct entities, which is an activity that is financial in nature."

Petition for Covered Business Method Patent Review by Apple Inc., CBM2013-00019 (PTAB October 8, 2013, Order) (Arbes, APJ)