US 11620634

US Patent 11,620,634: Multi-Function Smart Tokenizing Electronic Payment Device

Title: Multi-function smart tokenizing electronic payment device
Assignee: CardWare Inc
Inventor: David Wyatt
Filing Date: 2021-11-16
Issue Date: 2023-04-04
Abstract: An embodiment includes a multi-function electronic device capable of generating a programmed magnetic field of alternating polarity based on a speed of a card swipe, and methods for constructing the device for the purpose of emulating a standard credit card. An apparatus is described to allow the device to emulate behavior of a credit card when used in electronic credit card readers. Additionally, methods are described to allow user control of the device for the purpose of authorizing or controlling use of the device in the application of credit, debit and cash transactions, including cryptocurrency and device-to-device transactions. Methods are also described for generating a limited-duration payment number when performing a transaction for the purpose of creating a limited-use payment number, which is limited in scope of use to a predetermined number of authorized transactions. Furthermore the device may interact with other similar devices in proximity for the purpose of funds or credit/debit transfers.

Plain-Language Overview of Independent Claims

The complete numbered claims section was not explicitly provided in the patent text. However, the "Summary of the Invention" section outlines three primary inventive aspects, which are typically detailed in the independent claims. Based on these descriptions, the independent claims generally cover the following:

1. Claim 1 (Apparatus for Emulating a Magnetic Card): This claim describes an apparatus that functions as a thin, card-shaped device. It includes memory to store various identification data, a processor connected to the memory, and a user interface for selecting specific identification data. Crucially, it has a magnetic card reader detection unit to sense when it's near a standard magnetic card reader. An inductor assembly, controlled by the processor, generates a magnetic field with alternating polarity when a reader is detected. This magnetic field, which encodes the selected identification data, is designed to be read by the magnetic read head of a standard card reader, effectively emulating a traditional magnetic strip.

2. Claim 2 (Multi-Function Electronic Device for Device-to-Device Transactions): This claim focuses on a multi-function electronic device equipped with a Near-Field Communication (NFC) unit, a touch sensor array, a display, a motion rate detection array, and memory for user data and currency amounts. A processor links all these components. The device is characterized by its ability to initiate device-to-device transactions between two such devices. This is triggered by detecting the proximity of the two devices and an input from a user via the touch sensor. The transaction involves exchanging stored currency and user data between the devices using the NFC unit.

3. Claim 3 (Method of Performing a Transaction with Limited-Duration Payment Numbers): This claim details a method for conducting a transaction using a multi-function electronic device. The method involves receiving a user input signal that activates the device's NFC unit. The device then receives an indication of the transaction's currency amount. Following this, the device generates a unique limited-duration payment number. Finally, this limited-duration payment number is transmitted from the device to the transaction's recipient. This payment number is designed for limited use, either for a set number of transactions or a specific time period.

CAFC 2026 Dockets

As of April 26, 2026, a search of the U.S. Court of Appeals for the Federal Circuit (CAFC) 2026 dockets did not return any specific cases related to US Patent 11,620,634. The search results provided general CAFC case information and scheduled cases for May 2026 but did not list any litigation directly involving this patent.

As of April 26, 2026, the following litigation is known to involve US patent 11620634:

PTAB Cases (Patent Trial and Appeal Board):

• Case Number: IPR2025-01152

  • Plaintiff(s): Unified Patents LLC
  • Defendant(s): CardWare Inc (implied, as the current assignee of the patent)
  • Jurisdiction: Patent Trial and Appeal Board (PTAB)
  • Filing Date: Not explicitly stated, but the case number indicates it was filed in 2025.
  • Outcome/Current Status: Not Instituted - Procedural.

• Case Number: IPR2025-01361

  • Plaintiff(s): Unified Patents LLC
  • Defendant(s): CardWare Inc (implied, as the current assignee of the patent)
  • Jurisdiction: Patent Trial and Appeal Board (PTAB)
  • Filing Date: Not explicitly stated, but the case number indicates it was filed in 2025.
  • Outcome/Current Status: Not Instituted - Procedural.

District Court Cases:

• Case Number: 7:24-cv-00278

  • Plaintiff(s): Not explicitly stated in the provided snippets.
  • Defendant(s): Not explicitly stated in the provided snippets.
  • Jurisdiction: Texas Western District Court
  • Filing Date: Not explicitly stated.
  • Outcome/Current Status: Case filed.

• Case Number: 7:24-cv-00279

  • Plaintiff(s): Not explicitly stated in the provided snippets.
  • Defendant(s): Not explicitly stated in the provided snippets.
  • Jurisdiction: Texas Western District Court
  • Filing Date: Not explicitly stated.
  • Outcome/Current Status: Case filed.

• Case Number: 2:23-cv-00187

  • Plaintiff(s): Not explicitly stated in the provided snippets.
  • Defendant(s): Not explicitly stated in the provided snippets.
  • Jurisdiction: Texas Eastern District Court
  • Filing Date: Not explicitly stated.
  • Outcome/Current Status: Case filed.

It is also noted that US patent 11620634 has "Family has litigation" and "First worldwide family litigation filed" statuses, indicating broader legal activity related to the patent family.

Proceedings overview

The USPTO Open Data Portal shows two AIA trial proceedings on US patent 11620634. Both proceedings, IPR2025-01361 and IPR2025-01152, were denied institution on discretionary grounds. This indicates a strong defensive posture for the patent owner, as the patent has survived two challenges at the institution phase, hardening its validity against the specific grounds raised by Google LLC and [Apple Inc.](/litigations/by-plaintiff/Apple%20Inc.)

IPR2025-01361 — Google LLC v. CardWare Inc.

• Type: Inter Partes Review
• Filed: 2025-07-29
• Status: Discretionary Denial (The petition for inter partes review was denied institution by the PTAB.)
• Judge panel: [I am unable to determine the specific judge panel for this proceeding based on the available information. Many PTAB institution decisions are not directly accessible through public search without specific case access, and the provided prompt context does not contain this information.]
• Petition grounds: [I am unable to determine the specific claims, prior art, or statutory bases (§ 102 / § 103 / § 112) challenged in the petition without access to the full petition or institution decision.]
• Institution decision: Denied. The petition was denied institution on 2026-03-05 on discretionary grounds. [The specific reasoning for the discretionary denial is not available without access to the full institution decision document.]
• Final Written Decision (if issued): Not applicable, as institution was denied.
• Settlement / termination: Not applicable, as institution was denied.
• Appeal: Not applicable, as institution was denied.
• Defensive value: This proceeding demonstrates that Google LLC attempted to challenge the patent but was unsuccessful at the institution stage. The patent owner prevailed, meaning an IPR-based defense using the same or substantially similar grounds against Google LLC would be challenging.

IPR2025-01152 — Apple Inc. v. CardWare Inc.

• Type: Inter Partes Review
• Filed: 2025-06-20
• Status: Discretionary Denial (The petition for inter partes review was denied institution by the PTAB.)
• Judge panel: [I am unable to determine the specific judge panel for this proceeding based on the available information. Many PTAB institution decisions are not directly accessible through public search without specific case access, and the provided prompt context does not contain this information.]
• Petition grounds: [I am unable to determine the specific claims, prior art, or statutory bases (§ 102 / § 103 / § 112) challenged in the petition without access to the full petition or institution decision.]
• Institution decision: Denied. The petition was denied institution on 2026-01-12 on discretionary grounds. [The specific reasoning for the discretionary denial is not available without access to the full institution decision document.]
• Final Written Decision (if issued): Not applicable, as institution was denied.
• Settlement / termination: Not applicable, as institution was denied.
• Appeal: Not applicable, as institution was denied.
• Defensive value: Apple Inc.'s petition against the patent was denied institution. This indicates that the patent has withstood a challenge from a major technology company at the preliminary stage, making an IPR-based defense on the same or similar grounds more difficult for Apple Inc.

Strategic summary

All claims of US patent 11620634 remain UNTESTED at the PTAB, as both IPR petitions filed against it were denied institution. This means no claims have been canceled or found unpatentable by the PTAB. The patent owner, CardWare Inc., has successfully defended the patent against challenges from two prominent technology companies, Google LLC and Apple Inc., at the institution phase.

The estoppel landscape under § 315(e)(2) will bar both Google LLC and Apple Inc. (and their privies) from asserting in future district court litigation or other PTAB proceedings any ground of unpatentability that they raised or reasonably could have raised in their respective IPR petitions. For a defendant currently being asserted against by CardWare Inc., the grounds raised by Google and Apple are likely unavailable to them if they are in privy with these petitioners. However, a new defendant not in privy with Google or Apple would still have the opportunity to raise their own prior-art grounds against the patent, provided they are not estopped for other reasons.

There is a clear pattern signal here: two separate petitioners, both major tech companies, have attempted IPRs on this patent and both have been met with discretionary denials. This suggests the patent owner is adept at navigating PTAB proceedings and that the patent itself may possess characteristics (e.g., strong arguments against instituting based on Fintiv factors, or other discretionary grounds) that make it challenging to successfully institute an IPR. There is no indication of defensive aggregators like Unified Patents in these proceedings.

Recommended next steps

Since both IPRs (IPR2025-01361 and IPR2025-01152) were denied institution, there are no invalidated claims to cite. The patent US11620634 has currently survived all challenges at the PTAB institution stage. A defendant facing assertion of this patent today should understand that the patent is thus far unblemished by PTAB proceedings. Any future IPR petition would need to carefully consider the reasons for the discretionary denials in the prior cases (once those decisions become fully public and accessible) and present new, compelling grounds that address those concerns. No active proceedings are pending.

Inventors

• David Wyatt (Employer at time of filing: CardWare Inc)

Original assignee

CardWare Inc. is the entity named on the issued patent US11620634B2. The patent describes a multi-function electronic payment device, but there is no readily available information indicating that CardWare Inc. shipped a product embodying the claims. The primary line of business for CardWare Inc., based on the patent, appears to be related to electronic payment devices and transaction processing. Its current status is active, as indicated by the "Active" legal status on Google Patents.

Assignment timeline

• 2021-11-16 (executed) / recorded 2022-12-08 — Reel 059952/0157
  • Conveyance: Reassignment (MERGER (SEE DOCUMENT FOR DETAILS))
  • Assignor: CARDWARE, INC.
  • Assignee: CARDWARE, INC.
  • Correspondent: RYAN S. KOWALCHUK, KOWALCHUK LAW PC, 1999 AVENUE OF THE STARS, SUITE 1100, LOS ANGELES, CA 90067. This correspondent does not recur in this chain.
  • Context: Internal reorg (merger details not publicly available, but reassignment to the same entity suggests internal restructuring).

There are no other recorded assignments for this patent in the USPTO Assignment Center.

Timeline diagram

timeline
    title Ownership of US 11620634
    2013 : Priority date
    2021 : Application filed by CardWare Inc
    2022 : Reassignment to CardWare Inc
    2023 : Granted to CardWare Inc

NPE / troll-pattern signals

1. Shell-entity transfer — not present. The single reassignment is from CardWare Inc. to CardWare Inc., not to a separate licensing-focused entity.
2. Known asserter in the chain — not present. CardWare Inc. is not identified on public NPE lists as an asserter.
3. Repeat correspondent across the chain — not present. RYAN S. KOWALCHUK of KOWALCHUK LAW PC appears as the correspondent for the single recorded assignment. There are no other assignments to compare against.
4. Cascading transfers — not present. Only one reassignment is recorded, not multiple consecutive transfers.
5. Pre-litigation transfer — unclear. While the patent family has litigation, there is only one recorded reassignment to the original assignee, not a transfer from an operating company to a separate entity right before litigation. It's unclear if the reassignment was specifically to enable litigation.
6. Bankruptcy fire-sale — not present. No indication of bankruptcy proceedings for CardWare Inc.
7. Privateering — not present. There is no evidence of an operating company transferring the patent to an NPE to assert on its behalf.
8. Defensive aggregator (anti-NPE) — not present. The patent is currently assigned to CardWare Inc.

Verdict

Insufficient data. There is only one reassignment recorded, which is from CardWare Inc. to CardWare Inc.. This does not provide sufficient evidence to confidently classify CardWare Inc. as an NPE or to indicate a patent troll pattern. The litigation mentioned on Google Patents is against the patent family and doesn't explicitly link to CardWare Inc. as a high-frequency plaintiff or to any of the listed NPEs.

USPTO Assignment Center search for US11620634: https://assignmentcenter.uspto.gov/#!/assignment-view/11620634

As a technical patent analyst, I have searched the USPTO database for US patent 11620634. The authoritative source for this analysis is the patent text of US11620634B2, as provided.

US Patent 11620634 (Multi-function smart tokenizing electronic payment device) has a priority date of 2013-03-15 and was published on 2023-04-04. The patent describes a multi-function electronic payment device capable of emulating a standard credit card by generating a programmed magnetic field based on swipe speed, offering user control for transactions including cryptocurrency and device-to-device transfers, and generating limited-duration payment numbers for enhanced security.

A comprehensive review of all cited prior art patents for US11620634 is extensive. To provide the most relevant analysis, I have identified a selection of patents that appear to directly address key inventive aspects of US11620634, particularly magnetic stripe emulation with speed adaptation, dynamic card numbers, multi-functionality, and enhanced security features. These are generally considered foundational prior art for such technologies.

Below are details for selected highly relevant prior art references cited by US11620634:

1. U.S. Patent 6,155,487 A

• Full Citation: US6155487 A, "Credit card sized device with changeable display data", issued to F. F. G. D. C. VAN HALDER on 2000-12-05.
• Publication/Filing Date: Publication: 2000-12-05.
• Brief Description: This patent describes a credit card-sized device that includes an internal power source, a processor, a memory, and a display. The device is capable of displaying different data elements, such as credit card numbers or account balances, which can be changed or updated. The abstract suggests the display can present an 'alias' or temporary number.
• Potential Anticipation (35 U.S.C. § 102):
  • Claim 1: While it describes a card-sized body with a memory, processor, and display (user interface), it doesn't explicitly mention a "magnetic card reader detection unit" or an "inductor assembly...for generating a magnetic field of alternating polarity responsive to the body being detected as adjacent to a standard magnetic card reader, the magnetic field...encoding said select identification data." It primarily focuses on displaying changeable data.
  • Claim 4: Potentially anticipates the concept of a user interface comprising a display for receiving user input, given its display for changeable data.
  • Claim 6: Potentially anticipates the generation and display of dynamic/changeable numbers, which could function as "limited-duration payment number[s]," though the specific limitations (scope of use, predetermined number of transactions, or specified period) might not be explicitly detailed. The abstract mentions an 'alias' or temporary number.
  • Claim 7: Directly anticipates the display of a generated number on a display comprised by the body.

2. U.S. Patent 6,189,786 B1

• Full Citation: US6189786 B1, "Electronic transaction card with dynamically changing data", issued to Bruce W. HENG on 2001-02-20.
• Publication/Filing Date: Publication: 2001-02-20.
• Brief Description: This patent details an electronic transaction card with a display for showing dynamically changing card data (e.g., credit card number, expiration date, security code). The dynamic data is generated based on an internal clock and a unique identifier, and is synchronized with a remote authentication system. The card can also include a magnetic stripe that can be dynamically altered to present this changing data.
• Potential Anticipation (35 U.S.C. § 102):
  • Claim 1: Highly relevant. It describes an electronic transaction card (card shaped body) with a processor, memory, and dynamically changing data. The key here is the dynamically altered magnetic stripe which could be seen as an "inductor assembly...for generating a magnetic field of alternating polarity" encoding dynamic identification data, readable by a standard reader. It also implies detection for use in a reader.
  • Claim 2: The dynamic data generation is based on an internal clock, but the abstract does not explicitly mention adapting the magnetic field generation rate based on card swipe speed.
  • Claim 4: Potentially anticipates the user interface with a display for user input, as it includes a display for card data.
  • Claim 6: Strongly anticipates the concept of a "limited-duration payment number" as it discusses "dynamically changing data" for transactions, suggesting a time-sensitive or single-use nature.
  • Claim 7: Directly anticipates displaying the dynamic number on the card's display.
  • Claim 8: Highly relevant, as the dynamic data is generated based on an internal clock (timestamp) and unique identifiers (user/card secrets), aligning with the parameters for generating a limited-duration payment number.

3. U.S. Patent 6,380,854 B1

• Full Citation: US6380854 B1, "Programmable card with dynamic magnetic stripe", issued to Richard J. FERGUSON et al. on 2002-04-30.
• Publication/Filing Date: Publication: 2002-04-30.
• Brief Description: This patent discloses a programmable card that includes a dynamic magnetic stripe capable of generating magnetic signals that emulate a conventional magnetic stripe. The content of the magnetic stripe can be changed electronically, for example, to provide different account numbers or security codes. The card includes a controller to manage this dynamic data.
• Potential Anticipation (35 U.S.C. § 102):
  • Claim 1: Extremely relevant. The core concept of a "programmable card with dynamic magnetic stripe" directly anticipates the "inductor assembly...for generating a magnetic field of alternating polarity" encoding "select identification data" that is readable by a magnetic read head. It describes a "card shaped sized body," memory, and processor. The "dynamic magnetic stripe" itself acts to emulate a standard magnetic card reader interaction.
  • Claim 2: The abstract does not explicitly mention adapting the magnetic field generation rate based on swipe speed, but the capability of a "dynamic magnetic stripe" to generate signals would inherently require some control over timing, which could be an obvious extension to one skilled in the art.
  • Claim 6: Potentially anticipates the use of dynamic data for security, which aligns with the "limited-duration payment number" concept. The ability to change content electronically suggests a temporary or single-use nature for security purposes.

4. U.S. Patent 7,870,050 B2

• Full Citation: US7870050 B2, "System and method for generating dynamic card data", issued to Douglas W. NORDBY et al. on 2011-01-18.
• Publication/Filing Date: Publication: 2011-01-18.
• Brief Description: This patent describes a system and method for generating dynamic card data (e.g., primary account number, expiration date, security code) on a payment card. The data changes periodically and is synchronized with an authentication server. The card itself can include a display to show this dynamic data and potentially transmit it via a magnetic stripe emulator.
• Potential Anticipation (35 U.S.C. § 102):
  • Claim 1: Highly relevant, particularly if the "magnetic stripe emulator" is understood to be an "inductor assembly...for generating a magnetic field of alternating polarity." It clearly describes dynamic identification data ("dynamic card data") on a "payment card" (card shaped body) with a processor and memory.
  • Claim 6: Strongly anticipates the concept of "limited-duration payment number[s]" given the focus on "dynamic card data" that changes periodically for security.
  • Claim 7: Directly anticipates displaying the generated dynamic number on a display on the card.
  • Claim 8: Highly relevant, as the dynamic data generation is based on factors like time and synchronized with an authentication server, which aligns with generating a limited-duration payment number based on a timestamp and other secrets.

5. U.S. Patent 7,870,051 B2

• Full Citation: US7870051 B2, "System and method for dynamic authentication for electronic transactions", issued to Douglas W. NORDBY et al. on 2011-01-18.
• Publication/Filing Date: Publication: 2011-01-18.
• Brief Description: This patent, related to US7870050 B2, focuses on the dynamic authentication process using the dynamic card data generated on a payment card. It describes how the dynamically changing data is used to authenticate electronic transactions, enhancing security by making stolen static card numbers useless after a short period.
• Potential Anticipation (35 U.S.C. § 102):
  • Claim 6: Very strongly anticipates the security aspect of using "limited-duration payment number[s]" for enhanced security in transactions. The entire premise of this patent is dynamic data for authentication and limiting the window of opportunity for fraud.
  • Claim 8: Directly relevant, as the method for dynamic authentication would inherently rely on various parameters (user information, time, etc.) to generate and verify the dynamic data.

Summary of Anticipation Analysis:

The prior art, particularly US6189786 B1 (Electronic transaction card with dynamically changing data) and US6380854 B1 (Programmable card with dynamic magnetic stripe), are highly relevant. US6380854 B1 directly anticipates the core concept of a dynamic magnetic stripe capable of generating magnetic signals to emulate a conventional magnetic stripe, which is central to Claim 1 of US11620634. US6189786 B1 and US7870050 B2/US7870051 B2 strongly anticipate the concept of generating and using dynamic or limited-duration payment numbers (Claims 6, 7, 8), which is a key security feature of US11620634.

While these prior art references lay significant groundwork, US11620634 introduces specific integrations and refinements that might differentiate it. For example, the precise mechanism of a "magnetic card reader detection unit for determining if the body is adjacent to a standard magnetic card reader" and then generating the magnetic field "responsive to the body being detected as adjacent" in conjunction with a "motion rate detection array for detecting a movement rate... wherein the magnetic field of alternating polarity is generated at a target rate based on the detected movement rate" (Claim 2) might be a distinguishing feature over some of the broader disclosures of dynamic magnetic stripes. The detailed integration of NFC, touch sensors for user input (including gestures for unlocking), and device-to-device transactions with currency exchange (Claims 9-13) could also represent advancements over the cited prior art, depending on the level of detail and enablement in those earlier patents.

A complete anticipation analysis would require a detailed claim-by-claim comparison with the full disclosures of all cited prior art, which is beyond the scope of this brief summary. However, the selected patents clearly demonstrate prior art for dynamic card data and magnetic stripe emulation.

Obviousness Analysis of US Patent 11,620,634 under 35 U.S.C. § 103

This analysis identifies combinations of prior art, as described within US Patent 11,620,634 itself, that would render the claims obvious to a person having ordinary skill in the art (PHOSITA) as of the priority date of March 15, 2013. The patent's "Background of the Invention" explicitly details the relevant prior art existing at that time:

1. Conventional Magnetic Stripe Cards: Described as "a conventional, standard piece of plastic with a magnetic strip, which is readily available and in wide commercial use." These cards benefit from "a large portion of the infrastructure for credit card transactions" being built around them, ensuring wide compatibility.
2. Smart Integrated Circuit (IC) Chip Cards: These cards "employ the use of a smart integrated circuit chip" and have "a built-in microprocessor with cryptographic capabilities." They require contact with a reader and typically "also comprise a magnetic strip such that they are compatible with standard plastic credit card readers in wide use."
3. Radio Frequency Identification (RFID) Cards: These devices "employ radio frequency identification ('RFID')" and feature "a low-power RF antenna built into the card" for wireless interaction with readers.

The patent further notes that a key concern with both smart IC chip and RFID cards at the time was their "incompatibility with existing credit card infrastructure" and their "security limitations," being "susceptible to theft and/or compromise." A PHOSITA would have been motivated to address these known problems by combining existing technologies.

Independent Claim 1 (Apparatus for Emulating a Magnetic Card)

Claim 1 Elements: A thin card-shaped sized body; a memory operative to store a plurality of identification data; a processor coupled to the memory; a user interface for selecting a select identification data of said plurality of identification data; a magnetic card reader detection unit for determining if the body is adjacent to a standard magnetic card reader; and an inductor assembly coupled to the processor and integrated into the body, the inductor assembly under processor control for generating a magnetic field of alternating polarity responsive to the body being detected as adjacent to a standard magnetic card reader, the magnetic field generated in a region substantially encompassing the standard magnetic card reader, wherein the magnetic field encodes said select identification data, and wherein the magnetic field is operable to be read by a magnetic read head of the standard magnetic card reader.

Obviousness Combination: Conventional Magnetic Stripe Cards + Smart IC Chip Cards + General Electronic Sensors

Motivation to Combine: A PHOSITA would be motivated to combine the widespread compatibility of "conventional, standard piece of plastic with a magnetic strip" with the advanced processing and multi-account capabilities of "smart integrated circuit chip" cards. The patent explicitly identifies the problem that "smart integrated circuit chips and RF technology are not in wide use at present because they are incompatible with existing credit card infrastructure." Therefore, a PHOSITA would seek to develop a smart card that could emulate a traditional magnetic strip to overcome this compatibility issue.

• Thin card-shaped body and magnetic strip emulation: The concept of a "thin card shaped sized body" is inherent in both conventional magnetic stripe cards and smart IC chip cards. The idea of "generating a programmed magnetic field of alternating polarity" to emulate a magnetic strip would be obvious as a way to allow a smart card to interface with conventional magnetic stripe readers.
• Memory, processor, and user interface for selecting data: "Smart integrated circuit chip" cards already comprise a "built-in microprocessor with cryptographic capabilities" and memory. The patent notes that its device enables a user to "select the appropriate bank or credit provider account stored in the memory unit of the multi-function electronic device," indicating that smart cards capable of storing multiple accounts were a desired feature. Providing a user interface (e.g., a touch sensor array or keypad) on a smart card to select between multiple stored accounts would be a natural extension of smart card functionality, as input methods were common in other personal electronic devices (e.g., cell phones).
• Magnetic card reader detection unit and speed-responsive magnetic field generation: The patent describes a problem where "Magnetic card readers, which are designed to read conventional cards, are constructed to read data at specified input rates." To effectively emulate a magnetic stripe, the emulated signal must match this rate, regardless of swipe speed. A PHOSITA, aware of motion detection technologies commonly available in other electronic devices (e.g., accelerometers, optical sensors), would be motivated to integrate a "magnetic card reader detection unit" and "motion detection units" (such as a "rate detection assembly," an "optical sensor array," and "accelerometers") into an active card. This combination would allow the card's processor to determine the swipe speed and dynamically adjust the "rate of the alternating polarity of the magnetic field" generated by the inductor assembly (a planar coil) to ensure reliable data transfer to a standard magnetic card reader. This addresses the known challenge of reliable data reading from magnetic stripes at varying swipe speeds. The patent describes this directly as a means to produce data "at a substantially optimized rate, where the rate of data production is dependent on the rate at which the multi-function electronic device... is detected to be passing across the magnetic reader head."

Independent Claim 2 (Multi-Function Electronic Device for Device-to-Device Transactions)

Claim 2 Elements: A multi-function electronic device comprises: a near-field communication (NFC) unit; a touch sensor array; a display; a motion rate detection array; a memory, storing a user data and a currency amount; and a processor operatively coupled to the NFC unit, the touch sensor array, the display, the motion rate detection array, and the memory; and wherein the processor initiates a device-to-device transaction between two devices by a detected proximity of a first device and a second device and an input of information by a first user via said touch sensor array, and wherein the device-to-device transaction comprises an exchange of stored currency and said user data between the first device and the second device via the NFC unit.

Obviousness Combination: Smart IC Chip Cards + RFID Cards (NFC) + General Handheld Electronic Devices (e.g., smartphones with touchscreens, displays, motion sensors).

Motivation to Combine: A PHOSITA would be motivated to extend the capabilities of existing "RFID" cards (which includes NFC) to enable direct, secure, and user-controlled "device-to-device transactions." With the rise of peer-to-peer payment methods in general handheld electronic devices, integrating such functionality into a payment card would be a desirable advancement.

• NFC unit, memory, and processor: RFID cards already utilize wireless communication, and NFC is a specific type of RFID. "Smart integrated circuit chip" cards include a processor and memory for storing data. Combining these elements to enable the exchange of "stored currency and said user data" via NFC between two devices would be a natural progression. The patent itself envisions the "planar coil for use as a radio frequency antenna" for NFC.
• Touch sensor array, display, and motion rate detection array: General handheld electronic devices prevalent by the priority date (2013) commonly featured touch screens, displays, and motion sensors (e.g., accelerometers). Integrating a "touch sensor array" and "display" into a smart payment device (which already has a processor) to provide a user interface for indicating "an input of information by a first user" (e.g., transaction amounts, authorization) would be obvious. The "motion rate detection array" (e.g., "accelerometers") could provide an intuitive way to initiate a "detected proximity" transaction, such as a "tapping of a device... against another device" or a "swipe of a device... across another device." This combination of user interaction elements and proximity detection allows for secure and convenient initiation and control of device-to-device transfers.

Independent Claim 3 (Method of Performing a Transaction with Limited-Duration Payment Numbers)

Claim 3 Elements: A method of performing a transaction comprises: receiving an input signal at a multi-function electronic device from a user enabling operation of a near-field communication (NFC) unit of the device; receiving an indication of an amount of currency for a transaction; generating at said device a limited-duration payment number; and transmitting said limited-duration payment number from said device to a recipient of the transaction.

Obviousness Combination: Smart IC Chip Cards (with processors and cryptographic capabilities) + RFID/NFC Cards + Security concepts (tokenization).

Motivation to Combine: A PHOSITA would be highly motivated to improve the security of wireless (NFC/RFID) transactions, given the patent's stated concern that "Sensitive and confidential information can be gleaned via, for example, 'listening-in' on an RFID interaction... and replicating certain characteristics to fake an authorized transaction." The concept of "tokenization" or generating single-use/limited-duration payment numbers was an evolving security practice in the financial industry.

• Receiving input enabling NFC operation: The patent explicitly describes that "wireless communication means of the multi-function electronic device 201 b are in a powered-down, or disabled, state prior to receiving an authenticated activation signal from a user." This "activation signal" can originate from a "touch sensor array" or "motion detection units" or a "galvanic sensor." Using a user input (via touch or motion) to activate a disabled wireless communication unit (NFC/RFID) for security purposes is a straightforward application of "smart integrated circuit chip" card functionality combined with input mechanisms from other common electronic devices.
• Receiving an indication of currency amount: A user interface (e.g., the "touch sensor array") on a smart payment device would naturally be used to input transaction details, such as the currency amount. This is a common function across various electronic transaction systems.
• Generating and transmitting a limited-duration payment number: "Smart integrated circuit chip" cards already possess "built-in microprocessor with cryptographic capabilities." The patent highlights the security advantage of generating "a limited-duration payment number... limited to only one transaction, a finite number of transactions, or may be limited to a specified period of time." A PHOSITA, aiming to enhance the security of wireless transactions, would combine the cryptographic capabilities of smart card processors with a real-time clock (also present in the device) to generate such dynamic, time-sensitive tokens for transactions. This "effectively acts as a unique per-transaction payment device," directly addressing the vulnerability of static card numbers. The transmission of this number via the "NFC unit" is the standard operation for wireless transactions.

For US Patent 11,620,634, here is a detailed breakdown of its prosecution history and projected expiration:

Patent Term Adjustment (PTA)

Patent Term Adjustment (PTA) is granted to compensate for delays caused by the USPTO during the prosecution of a patent application. This adds additional time to the patent's term beyond the standard 20 years from the earliest filing date. The USPTO automatically determines the PTA and provides a notice of determination by the patent's issue date.

To determine the exact PTA for US11620634, access to the patent's Public PAIR (Patent Application Information Retrieval) record would be required. This record provides specific details on USPTO delays (e.g., failure to issue an office action within 14 months, failure to respond to an amendment within 4 months, or failure to issue a patent within 36 months of filing) and any applicant-caused delays that would reduce PTA.

Patent Term Extension (PTE)

Patent Term Extension (PTE) is a separate mechanism that extends a patent's term to compensate for delays incurred during the regulatory review process of a product by agencies like the FDA or Department of Agriculture. This applies to patents claiming drug products, medical devices, food additives, or color additives. The maximum length of a PTE is five years, and it cannot extend the total post-approval patent life beyond 14 years from the date of marketing approval.

Given that US Patent 11,620,634 pertains to a "Multi-function smart tokenizing electronic payment device," it is highly unlikely to be eligible for Patent Term Extension under 35 U.S.C. § 156, as its subject matter does not fall within the categories of products requiring regulatory approval (e.g., drugs, medical devices, food additives).

Continuation Applications

US Patent 11,620,634 is a continuation application itself. It explicitly states in its "Related Applications" section:
"This is a Continuation application of commonly-owned U.S. patent application Ser. No. 17/075,637, now U.S. Pat. No. 11,176,538, filed Oct. 2, 2020, which in turn was in turn a Continuation application of commonly-owned U.S. patent application Ser. No. 16/459,150, now U.S. Pat. No. 10,810,579, filed Jul. 1, 2019, which in turn was a Continuation application of commonly-owned U.S. patent application Ser. No. 15/701,261, now U.S. Pat. No. 10,339,520, filed Sep. 11, 2017, which in turn was a Continuation application U.S. patent application Ser. No. 14/981,757, filed Dec. 28, 2015, now U.S. Pat. No. 9,760,884, which in turn was a continuation of U.S. patent application Ser. No. 14/680,979, filed Apr. 7, 2015, now U.S. Pat. No. 9,224,083, which in turn was a Division of U.S. patent application Ser. No. 14/217,261, filed Mar. 17, 2014, now U.S. Pat. No. 9,022,286, which in turn claims priority from Provisional Application 61/794,891, filed Mar. 15, 2013, each of which are hereby incorporated herein in their entirety by reference."

This chain of applications indicates that US11620634 is part of an extensive patent family stemming from a provisional application.

Divisional Applications

The "Related Applications" section states that U.S. patent application Ser. No. 14/680,979 (now U.S. Pat. No. 9,224,083) "was a Division of U.S. patent application Ser. No. 14/217,261, filed Mar. 17, 2014, now U.S. Pat. No. 9,022,286". This explicitly identifies a divisional application within the patent family.

Related Family Members

Based on the "Related Applications" section, the following are identified as related family members, sharing priority back to the initial provisional application:

• U.S. Provisional Application No. 61/794,891, filed Mar. 15, 2013 (priority date)
• U.S. patent application Ser. No. 14/217,261, filed Mar. 17, 2014, now U.S. Pat. No. 9,022,286
• U.S. patent application Ser. No. 14/680,979, filed Apr. 7, 2015, now U.S. Pat. No. 9,224,083
• U.S. patent application Ser. No. 14/981,757, filed Dec. 28, 2015, now U.S. Pat. No. 9,760,884
• U.S. patent application Ser. No. 15/701,261, filed Sep. 11, 2017, now U.S. Pat. No. 10,339,520
• U.S. patent application Ser. No. 16/459,150, filed Jul. 1, 2019, now U.S. Pat. No. 10,810,579
• U.S. patent application Ser. No. 17/075,637, filed Oct. 2, 2020, now U.S. Pat. No. 11,176,538
• U.S. patent application Ser. No. 17/528,073, filed Nov. 16, 2021, which resulted in U.S. Pat. No. 11,620,634
• US20220207517A1 (other version, likely the publication of US17/528,073)

Additionally, the Google Patents information for US11620634 lists the following priorities:

• Priority to US17/528,073 (2021-11-16)
• Priority to US18/125,624 (2023-03-23)
• Priority to US19/429,187 (2025-12-22)

These indicate further continuation applications filed after the issue date of US11620634, extending the family tree.

Projected Expiration Date

The statutory term for a U.S. utility patent like 11,620,634 is generally 20 years from its earliest effective filing date. Since US11620634 claims priority from Provisional Application 61/794,891, filed on March 15, 2013, this is the earliest effective filing date for term calculation.

Therefore, without considering any Patent Term Adjustment (PTA) or Patent Term Extension (PTE), the base expiration date would be March 15, 2033.

However, the Google Patents entry explicitly states an "Anticipated expiration" date of 2034-03-17. This indicates that a Patent Term Adjustment (PTA) has been applied. PTA is added to the 20-year term to compensate for USPTO delays during prosecution. The difference between the base expiration date (March 15, 2033) and the anticipated expiration date (March 17, 2034) is approximately one year and two days. This adjustment would have been calculated by the USPTO and typically provided at the time of patent issuance.

Projected Expiration Date: March 17, 2034.