Default Proof Credit Card System, Inc. v. Home Depot U.S.A., Inc.

412 F.3d 1291, 75 U.S.P.Q. 2d (BNA) 1116, 2005 U.S. App. LEXIS 11414, 2005 WL 1404564
CourtCourt of Appeals for the Federal Circuit
DecidedJune 16, 2005
Docket2005-1069
StatusPublished
Cited by87 cases

This text of 412 F.3d 1291 (Default Proof Credit Card System, Inc. v. Home Depot U.S.A., Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Default Proof Credit Card System, Inc. v. Home Depot U.S.A., Inc., 412 F.3d 1291, 75 U.S.P.Q. 2d (BNA) 1116, 2005 U.S. App. LEXIS 11414, 2005 WL 1404564 (Fed. Cir. 2005).

Opinion

MICHEL, Chief Judge.

Default Proof Credit Card System, Inc. (“Default Proof’) appeals the United States District Court for the Southern District of Florida’s grant of summary judgment that claim 1 of U.S. Patent No. 6,405,182 (“the T82 patent”) is invalid for failure to meet the definiteness requirement of 35 U.S.C. § 112, ¶ 2. Default Proof Credit Card Sys., Inc. v. Home Depot U.S.A., Inc. d/b/a The Home Depot, et al., No. 03-20094-CIV (S.D.Fla. Sept. 30, 2004). The appeal was submitted for decision following oral argument on May 4, 2005. Because we agree with the district court that the ’182 patent discloses no structure corresponding to the “means for *1293 dispensing at least one debit card” limitation in claim 1, we affirm.

BACKGROUND

I.

The ’182 patent, entitled “System for Dispensing Prepaid Debit Cards Through Point-of-Sale Terminals,” issued on June 11, 2002, to Vincent Cuervo. The Abstract describes the invention of the ’182 patent as pertaining to “PoinNof-Sale machines that allow individuals to obtain from participating merchants, ‘over-the-counter’, prepaid debit cards.” T82 patent, Abstract.

A. Claim 1

The sole independent claim of the T82 patent recites:

A system for dispensing and validating prepaid debit and credit cards, comprising:
A)a point-of-sale assembly including first computer means with associated first storage means that further include first input and output means for entering information from a user pertaining to his or her particulars and the particulars of the transaction in said first storage means, said first input means includes a keypad assembly, a bill acceptance port and a credit/debit card charge assembly and further including means for validating the funds made available through said input means so that a line of credit is computed by said first computer means and stored in said first storage means with a validation signal and a block of information is assembled and ready for transmission;
B) means for dispensing at least one debit card for each transaction, and each of said debit cards including means for storing a unique identification number, and said debit cards being dispensed only after a first predetermined number of conditions have been met and said validation signal is received from said point of sale assembly; and
C) a remotely located computerized clearing house assembly, including second computer means with associated second storage means, second input and output means for receiving and sending said block of information from and to said point of sale assembly and said second storage means further including data and instructions to process said block of information so that a line of credit is entered for each of said identification numbers.

Id. at col. 3, 1. 34 — col. 4, 1. 20 (emphases added).

B. The Specification

The specification of the ’182 patent consists of two figures and three columns of text. As the “Background of the Invention” section explains, the patented invention relates to “a system for dispensing prepaid debit cards through computerized point-of-sale (POS) terminals.” Id. at col. I,11. 13-15. The invention aims to provide “a system that permits a user to acquire such debit or credit cards from widely available Point-of-Sale terminals using cash, debit and/or credit cards, check cards or ATM’s [sic] cards.” Id. at 11. 45-49.

Figure 1 of the ’182 patent, reproduced below, represents the “hardware used in the present invention.” Id. at col. 2,11.10-II.

*1294 [[Image here]]

As shown in Figure 1, the card purchaser (30) tenders cash or a credit card to the Point-of-Sale or POS terminal (54). The specification describes the structure of the POS terminal as including “basically a keypad with numbers, letters, names, signs, graphics, with a sliding open side” as well as “necessary input and output hardware such as card charges and card debits 58, computer assembly 60 and associated storage assembly 50.” Id. at 11. 22-24, 11. 36-38.

The card purchaser must enter certain information required by the card issuer (41). Id. at 11. 54-57. At a minimum, such information includes a personal identification number (PIN) and the maiden name of the purchaser’s mother. Id. at 11. 47-54. “The information entered by the debit card purchaser is stored in storage assembly number 50 through computer assembly 60 for consequent transmission to clearinghouse 56, as shown in FIG. 1.” Id. at 11. 61-64. Figure 1 also shows a dispenser (40) that distributes the debit card (48). Important to this appeal, the specification teaches that the “[d]ispenser will [sic] the merchant or the entity or place selling the card, and an issuer will be the entity or financial institution issuing the card. Dispenser 40 is loaded with three or more stacks of debit cards with a digital storage number 46 wherein a unique identifying serial number has been recorded, and identifies [sic] 48.” Id. at 11. 29-34.

Figure 2 illustrates the process steps in a typical transaction. Id. at 11.13-14.

*1295 [[Image here]]

Figure 2 shows the “Validating Data Received And [Debit Card] Dispensed” step of the transaction as occurring within the area designated by a dotted line as 54, the POS terminal.

The specification names U.S. Patent No. 5,696,908 to Muehlberger (“Muehlberger patent”) as its “closest reference,” and distinguishes it:

[Muehlberger] does not disclose the use of point-of-sale terminals (POS) to provide an injection on stacked “virgin” debit cards of any selected prepaid amount of funds (line of credit), security information (PINs, passwords, mother’s maiden name, etc.). And to include [sic] conditions for the validation and availability of those funds or line of credit.

’182 patent at col. 1,11. 27-32.

C. The Prosecution History

The 182 patent issued from Application No. 09/524,496 (“the ’496 application”), a continuation-in-part of Application No. 09/128,088 (“the ’088 application”), which issued as U.S. Patent No. 6,105,009 (“the ’009 patent”). The ’009 patent relates to a system for dispensing prepaid debit cards through automatic teller machines or ATMs.

The original ’496 application, drafted and filed by Cuervo pro se, included claims *1296 1-7 from the then-pending ’088 application. After claims 8-14 were rejected for double patenting, applicant filed a Preliminary Amendment canceling claims 1-7. Applicant, now represented by an attorney, explained:

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412 F.3d 1291, 75 U.S.P.Q. 2d (BNA) 1116, 2005 U.S. App. LEXIS 11414, 2005 WL 1404564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/default-proof-credit-card-system-inc-v-home-depot-usa-inc-cafc-2005.