Portable Data Storage Device Patent Unpatentable Under 35 U.S.C. § 101

In a final written decision, the Board found claims of a patent directed to a portable data storage device unpatentable under 35 U.S.C. § 101. "Petitioner argues that claims 13 and 14 are directed to the abstract idea of 'licensing/regulating access to copyrighted content.' Although [patent owner] does not concede, in its brief, that claims 13 and 14 are directed to an abstract idea, it does not persuasively explain how the challenged claims escape being classified as abstract. We are persuaded that claims 13 and 14 are drawn to an abstract idea. Specifically, claims 13 and 14 are directed to performing the fundamental economic practice of conditioning and controlling access to content based on payment. . . . Although the specification refers to data piracy on the Internet, claims 13 and 14 are not limited to the Internet. . . .The underlying concept of claims 13 and 14, particularly when viewed in light of the ’720 patent specification, is conditioning and controlling access to content based upon payment. This is a fundamental economic practice long in existence in commerce. We are, thus, persuaded, based on the ’720 patent specification and the claim language, that each of claims 13 and 14 is directed to an abstract idea."

Petition for Covered Business Method Patent Review by Samsung Electronics America, Inc., CBM2014-00190 (PTAB May 26, 2016, Order) (Elluru, APJ)