Obviousness

US patent 10674432, claiming a system and method for mobile device mode enablement responsive to a proximity criterion, particularly for financial transactions, can be rendered obvious under 35 U.S.C. § 103 by combining existing prior art references. A person having ordinary skill in the art (PHOSITA) would have been motivated to combine these references to enhance the security, convenience, and context-awareness of mobile payment systems, addressing a known need for adaptive device functionality.

The primary combination that renders independent claims 1 and 10 obvious is US20040143550A1 (International Business Machines Corporation, "Cellular electronic wallet device and method") in view of US6595929B2 (Bodymedia, Inc., "System for monitoring health, wellness and fitness having a method and apparatus for improved measurement of heat flow").

Obviousness Analysis of Independent Claim 1 (Method)

Claim 1 Preamble: "A method of operating a smartphone in performing a plurality of financial transactions..."

• US20040143550A1 ("US '550") describes a "cellular electronic wallet device and method" for performing secure electronic transactions at a point-of-sale. By the priority date of US10674432 (November 4, 2008), such a "cellular electronic wallet device" would encompass or readily be implemented by a smartphone, which is a common platform for financial transactions. An electronic wallet inherently implies the capability of performing a "plurality of financial transactions."

Claim 1, Step 1 (Physiological Parameter Trigger): "...responsive to at least one physiological parameter having been sensed by at least one sensor of the smartphone, enabling a mode to communicate by the smartphone information requesting an authorization;"

• US6595929B2 ("US '929") discloses systems and methods for monitoring health, wellness, and fitness, including the use of sensors to measure physiological parameters such as heat flow. A PHOSITA would recognize that such physiological sensors could be integrated into a smartphone (a known computing device for personal use). The motivation to combine US '550 with US '929 would be to enhance the security or user convenience of mobile financial transactions. Requiring a physiological input (e.g., detection of skin contact, a specific heart rate, or other biometric indicators to confirm user presence and state) to "enable a mode to communicate... requesting an authorization" for financial transactions would provide a more robust authentication mechanism or an adaptive, context-aware user experience. This directly addresses the problem highlighted in the background of US10674432, which states the desirability of a mobile device acting as a "wallet" only when needed, avoiding "rigidity."

Claim 1, Step 2 & 3 (First Data Transmit & Second Data Receive): "...while the mode is enabled, transmitting by the smartphone first data to a first device, the first data relating to a plurality of financial transactions to be conducted; receiving by the smartphone second data from the first device responsive to said transmitting by the smartphone the first data, the second data relating to the plurality of financial transactions to be conducted and differing from the first data;"

• US '550 describes secure transactions where authentication information and transaction data are exchanged. The "cellular electronic wallet device" would communicate with a "financial institution" or server (the "first device") to, for example, request payment tokens or authorize transactions (transmitting "first data") and receive acknowledgements or authorizations back (receiving "second data"). This data would relate to the financial transactions and would naturally differ (e.g., request vs. authorization).

Claim 1, Step 4a-4d (First Transaction Performance via Proximity): "performing a first transaction... by: detecting by the smartphone that a proximity condition is satisfied between the smartphone and a first entity, wherein the first entity is distinct from the first device; establishing, using a first air interface, a wireless short-range communications link between the smartphone and the first entity... receiving, using the first air interface, a short-range signal from the first entity; and responsive to receiving the short-range signal from the first entity, sending by the smartphone to the first entity over the first air interface, information associated with the second data received from the first device;"

• US '550 explicitly describes performing "contactless transactions" involving "short-range radio frequency communications" with a "point-of-sale terminal" (the "first entity"). This inherently involves detecting proximity, establishing a short-range wireless link (the "first air interface"), receiving signals from the terminal (e.g., indicating the amount due), and transmitting payment or authentication information to the terminal. The point-of-sale terminal is distinct from the financial institution server (the "first device"). The information sent to the entity would be "associated with the second data" (e.g., an authorized token received from the financial institution).

Claim 1, Step 5 (Independent Network Service): "...independent of performing said first transaction, receiving by the smartphone a communications service from a wireless network, using a second air interface that differs from the first air interface,"

• US '550 describes a "cellular electronic wallet device." By definition, such a device receives communication services from a cellular wireless network using a cellular air interface (the "second air interface"), which operates independently and uses different protocols/frequencies than the short-range radio frequency communications (the "first air interface") used for the contactless transaction at the point-of-sale.

Claim 1, Step 6 (Air Interface for Data Exchange): "...wherein said transmitting by the smartphone first data and said receiving by the smartphone second data are performed over an air interface that differs from the first air interface."

• As discussed, the communication between the "cellular electronic wallet device" of US '550 and the "financial institution" (first device) would typically occur over the cellular network (the "second air interface"), which is distinct from the short-range communication with the "point-of-sale terminal" (first entity) that uses the "first air interface" (e.g., NFC, RFID).

Obviousness Analysis of Independent Claim 10 (Smartphone System)

Independent claim 10 describes a smartphone configured to perform the operations detailed in claim 1. Since the method steps of claim 1 are rendered obvious by the combination of US '550 and US '929, it would also be obvious for a PHOSITA to configure a smartphone to perform these combined functions. Integrating physiological sensors (from US '929) into a smartphone (the platform for US '550's electronic wallet) and programming it to execute the described sequence for financial transactions would be a straightforward engineering task for a PHOSITA in 2008. The motivation remains the same: to improve the security and user experience of mobile payment systems through adaptive, context-aware functionality.

Motivation for Combination

The motivation for a PHOSITA to combine the "cellular electronic wallet" of US '550 with the physiological sensing capabilities of US '929 is clear:

1. Enhanced Security: Physiological parameters can serve as an additional, robust layer of authentication or authorization, ensuring that the legitimate user is actively and consciously initiating a financial transaction. This adds security beyond traditional PINs or fingerprint scans.
2. Improved User Convenience and Adaptive Enablement: By enabling the payment mode only when certain physiological conditions are met (e.g., the user is holding the device, or their biometric state is normal), the system becomes more context-aware and user-friendly. This directly addresses the stated problem of "rigidity" in existing mobile devices and the desire for functions to be enabled "only when it is time to pay for an item."
3. Technological Feasibility: Both mobile electronic wallets and physiological sensing technologies were known and developing by the priority date. Integrating sensors into mobile devices and using their data for application control was a foreseeable advancement.

Conclusion

The combination of US20040143550A1 and US6595929B2 would have made the claimed inventions of US10674432 obvious to a PHOSITA at the time of invention. The prior art discloses all the elements of the independent claims, and there would have been a clear motivation to combine these teachings to create a more secure, convenient, and adaptively functional mobile payment system.