NexusCard, Inc. v. The Kroger Co.

NexusCard, Inc. v. The Kroger Co., Case No. 2:15-cv-968-JRG-RSP (Gilstrap, J.) (Order signed March 24, 2016; entered April 6, 2016) 


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


Claims found to be unpatentable as directed to non-statutory subject matter.  

Abstract Idea:


Something More:



Real-time system for providing in-store purchase discounts for predetermined products, without the use of coupons. 


Relying on a representative claim, Judge Gilstrap found the claims of the ’080 patent directed to the abstract idea of a “membership discount program” on a network. The multi-step claims merely recited creating and implementing a membership discount program using conventional computers to perform generic functions.  

The Plaintiff argued that the claims nonetheless included an inventive concept because they recited tangible limitations such as computing discounts, storing identifying information, printing discount information on receipts, and involving the use of cash registers. Judge Gilstrap rejected these arguments, finding that the limitations recite no more than functional results, insignificant post-solution activity, or limit the claims to a particular technological environment.