Nexuscard, Inc. v. The Kroger Co.

Nexuscard, Inc. v. The Kroger Co., C.A. 15-968-JRG-RSP (E.D. Tex. March 24, 2016)

Patent(s):    

5,924,080 | Entitled "Computerized discount redemption system”

Disposition:               

Rule 12(b)(6) Motion to Dismiss is granted. 

Abstract Idea:

Yes

Something More:

No

Technology:              

Electronic System for tracking membership discount points.  

Summary:                 

The Court found that the invention was directed at the abstract idea of a “membership discount program.” It was not persuaded by the plaintiff’s arguments that the types of membership programs covered by the patents were not widely used because the prevalence of an abstract idea does not factor into patent eligibility analysis.  Additional, the patent did not add an inventive step because many of the claims recite “functional results” or the abstract idea limited to a technological environment. In short, the claims were directed at implementing an abstract idea on systems such as a “cash register connected to the internet.” None of this made the claims patent-eligible.