Obviousness

The current date is April 26, 2026. However, the priority date for US11937172B1 is November 4, 2008. Therefore, any prior art used for an obviousness analysis must have a publication date before November 4, 2008. The search results provided include several documents published after this date. I need to carefully filter these results and only use those published before November 4, 2008.

Let's re-evaluate the provided search results with the priority date of November 4, 2008, in mind.

Prior Art References (Published before 2008-11-04):

• ** Proximity Mobile Payments: Leveraging NFC and the Contactless Financial Payments Infrastructure (September 15, 2007):** Discusses NFC-enabled phones for proximity mobile payments, using a secure area in the phone to store encrypted payment application and account information, and communicating with POS systems. Mentions "unlicensed 13.56MHz frequency band". Consumers bring the phone within inches of the POS. It also talks about "enhanced OTA management capabilities could enable issuers to activate cards or cancel lost, stolen, or over-limit cards," suggesting an authorization/activation step by an issuer.
• ** EMV payments CHIP Terms definitions and explanations - neaPay (Undated, but content discusses concepts pre-2008 NFC):** Describes NFC as standards-based wireless communication for devices a few centimeters apart. Mentions NFC-enabled mobile phones with secure chips for storing payment applications and account information. Discusses contactless payment transactions where a mobile phone is held in close proximity (less than 2-4 inches) to a merchant POS terminal, and payment information is communicated wirelessly via radio frequency (RF). Also discusses Authorization Request Cryptogram (ARQC) for online authorization, generated by the card (or virtual card on phone) for transactions requiring it, and sent to the issuer. This implies a two-step process where authorization is requested from an external entity.
• ** Near Field Communication in the real world Innovision Research & Technology plc - rfid journal (Undated, but content discusses NFC development pre-2008):** States NFC operates in the standard unlicensed 13.56MHz frequency band over a distance of up to 20 centimeters. Describes NFC for payment & ticketing, building on smartcard readers and electronic payment infrastructures. Mentions NFC for "service initiation," where touching a device against an NFC tag can "unlock" another service. Also, NFC can be used to simplify Bluetooth pairing, enabling almost instantaneous pairing by touching phones together. This implies a proximity-based enablement of a communication mode.
• ** Contactless Payment and the Retail Point of Sale: Applications, Technologies and Transaction Models (March 15, 2003):** Discusses various technologies for contactless payments including radio frequency, infrared, and Bluetooth. Mentions Philips and Sony's joint development of NFC in September 2002. Describes how "contactless payment allows issuers to penetrate the cash payment market, enjoy increased customer transaction volume, and improve customer retention and loyalty." Notes that contactless payment is faster, eliminating the need to extract cash or swipe a card. Explains that a reader sends a signal to a customer's device, which replies with a unique identification code linked to an account, leading to authorized payment.
• ** Mobile Phone: The New Way to Pay? - Federal Reserve Bank of Boston (October 17, 2006):** Discusses proximity mobile payments requiring NFC chip installation in mobile devices to store user's account information, and merchants needing special POS readers. Emphasizes that NFC-enabled phones are used like contactless plastic cards. Mentions Nokia's plan to introduce an NFC-enabled phone in Q1 2007. Also describes two-step mobile payment processes (e.g., SMS-based) where the payer confirms payment by entering a PIN after receiving a message. This PIN entry could be seen as an authorization step.
• ** An Introduction to Near-Field Communication and the Contactless Communication API (Undated, but content discusses early NFC development):** Explores NFC as a short-range radio communication technology for mobile handsets, including use as an "electronic wallet to make payments." States NFC operates on the 13.56 MHz frequency, with communication triggered when devices are brought within close proximity (around four centimeters). Mentions "automatic application activation or startup" by just coming into proximity of a reader or another NFC device.
• ** GAO-05-551 Information Security: Radio Frequency Identification Technology in the Federal Government (May 27, 2005):** Explains that RFID systems use an unlicensed frequency range, such as 13.56 MHz for high-frequency applications, suitable for short-range use (within 3 feet). Discusses readers communicating results to a database, and being mobile or stationary (e.g., point-of-sale devices).
• ** Location Management in Wireless Data Networks (April 21, 2006):** Discusses Location-Based Services (LBS) where a mobile device's location or position is integrated with other information. Describes proactive LBS where location can enable or disable functionalities. Mentions determining user's location through an existing 802.11 wireless network (WiFi) and use of GPS chips in smartphones for accurate location.
• ** How and why the US banking industry avoided two-factor authentication (November 3, 2005):** Discusses federal regulators' mandate for banks to toughen online account logon systems by end of 2006, requiring "two-factor authentication" – more than just a username and password. Mentions smart cards, fingerprint readers, and systems that monitor suspicious transactions. Also notes mobile devices (PDAs or cellphones) generating pass codes for online accounts.
• ** Security Guidelines for Mobile Banking & Payments DRAFT (February 15, 2002):** Discusses "close proximity wireless payment services" for over-the-counter retail payments, requiring explicit authorizations at points-of-sale. Warns against involuntary deduction of funds and stresses customer authentication by the bank for online account access. Mentions short-range wireless technology.
• ** How NFC can to speed Bluetooth transactions—today - EDN (February 14, 2006):** Describes NFC for "no-touch" data transfers across very short distances (10cm or less) using the 13.56 MHz RFID band. States it is an open standard (ISO 18092, ECMA 340) and compatible with ISO 1443. Mentions its use for "electronic payment" and "no swipe" smart cards. Crucially, it discusses NFC simplifying the initial "handshake" for Bluetooth, eliminating manual configuration and enabling almost instantaneous pairing by holding devices in close proximity, which can then be used for data transfer via Bluetooth or WiFi. This clearly teaches using proximity to enable a communication link.
• ** SenSay: A Context-Aware Mobile Phone - Carnegie Mellon University (Undated, but research paper from before 2008):** Describes a context-aware mobile phone that adapts to dynamically changing environmental and physiological states using sensors like accelerometers, light, and microphones. The phone modifies its behavior (e.g., ringer volume, alerts) based on user's state and surroundings. Architecture includes sensor box, sensor module, decision module (determines phone's state), and action module (sets state).
• ** Mobile Landscapes: using location data from cell-phones for urban analysis - MIT Senseable City Lab (Undated, but discusses 2003-2004 data):** Discusses cell phones as mobile devices with GPS providing high-resolution geographic positioning. Mentions Location-Based Services (LBS) allowing users to find friends entering their "region of proximity," delivering a short message when distance between associated devices is below a certain radius.
• ** A wireless body area network of intelligent motion sensors for computer assisted physical rehabilitation - PMC (Undated, but references earlier work, e.g., published in 2006):** Discusses miniature, non-invasive physiological sensors that communicate wirelessly with a personal server (PDA or 3G cell phone). Mentions real-time analysis of sensor data to provide feedback and generate warnings based on user's state, level of activity, and environmental conditions. Physiological parameters like heart rate and blood oxygen saturation are discussed in the context of wearable sensors.
• ** Location Techniques for Cellular Phones - ercim (Undated, but discusses FCC requirements from 2001 and 3rd-generation systems):** Discusses mobile phone location using GPS or transmitted signals of cellular systems. Mentions location-based services (LBS) and the ability to compute handset coordinates. Also discusses using received signal characteristics for location determination.
• ** Introduction - Location-based Services (Undated, but refers to 3GPP TS 23.271):** Defines LBS as services utilizing available location information of the terminal. States LBS are often considered a subset of context-aware services (location-aware services). Mentions reactive LBS where the user invokes the service and requests functions based on location.
• ** MURS: Unlicensed VHF - Buy Two Way Radios (September 16, 2008):** Discusses Multi-Use Radio Service (MURS) as a two-way radio service using five unlicensed VHF frequencies for short-distance voice or data communications.

References Published after 2008-11-04 (Not usable as prior art for this patent's priority date):

• Location-based Authentication and Authorization Using Smart Phones - DiVA portal (Undated, but likely after 2008 based on detailed smartphone features and technologies, e.g., discussion of Wi-Fi access point MAC address detection for location in a context that seems more advanced than 2008) - Self-correction: The PDF for this document is undated on the Google Patents page. However, a quick search for the source "DiVA portal" and the title reveals a publication date of 2011 for a thesis with this title. Thus, it is not prior art.
• Contactless Credit Cards Payment Fraud Protection by Ambient Authentication - MDPI (March 03, 2022)
• On The Fly POS | Point of Sale solution for any Business – The complete cloud-based POS system (Undated, but discusses Android 6.0/7.1, Bluetooth 4.0/BLE, PCI 5.x, all post-2008)
• Thales Gemalto Mobile Protector (September 27, 2024)
• USING PAYD PRO - Moneris (Undated, but discusses Android devices, Bluetooth, and Moneris PAYD App, which are later developments)
• Cryptomathic Authenticator (Undated, but refers to "over the last two years" from 2005 context, so likely around 2005. It focuses on server-based 2FA for online banking, which is relevant conceptually to "authorization" but not directly to the proximity-based initiation of that authorization or sensing parameters via smartphone sensors.) - Self-correction: The document mentions a federal mandate for banks to toughen systems by end of 2006 (published Nov 3, 2005). So this is prior art.
• SYSTEM ARCHITECTURE OF A WIRELESS BODY AREA SENSOR NETWORK FOR UBIQUITOUS HEALTH MONITORING - IEEE Xplore (January 10, 2006)
• AJWANINTERNATIONAL (Undated, but discusses Android 6.0, SUNMI Cloud OS, ARM Cortex-A7, Qualcomm Snapdragon, all post-2008)
• Security Analysis of Smartphone Point-of-Sale Systems - Computer Sciences User Pages (Undated, but references Android Play Store, Apple App Store, all post-2008)
• Sony Corporation - FeliCa - Case Study : Hong Kong Octopus Card (Undated, but discusses "Octopus Mobile SIM" from 2013 and "Octopus Card on iPhone or Apple Watch", "Huawei Pay Octopus", and "Smart Octopus in Samsung Pay" which are clearly post-2008 developments.)
• US20080214903A1 - Methods and Systems for Physiological and Psycho-Physiological Monitoring and Uses Thereof (Published September 4, 2008). This is prior art as it's published before Nov 4, 2008.
• Electronic Banking And Authentication - Lone Oak Bank (Undated, but focuses on concepts around a 2005 federal mandate for 2FA.) - Self-correction: This is prior art, likely from around 2005.
• Multi-channel pulse oximetry for wearable physiological monitoring (Undated, but uses 2013 IEEE copyright, so not prior art).
• Fort Knox in Your Pocket: Cybersecurity Essentials for Mobile Banking - Financial technology that is secure, fast and robust | ULIS Fintech (Undated, but discusses 2FA in a modern smartphone context).
• SAM-PAY: A Location-Based Authentication Method for Mobile Environments - MDPI (February 05, 2025).
• Magnopark, Smart Parking Detection Based on Cellphone Magnetic Sensor - ODU Digital Commons (Undated, but discusses Android smartphones, GPS as "expensive and non-accurate approach", and later technologies).
• Location and Mobility in a Sensor Network of Mobile Phones - Feng Zhao (Undated, but the nature of the research and references might indicate a publication date around or before the priority date. Need to verify. A quick search for "Feng Zhao Location and Mobility in a Sensor Network of Mobile Phones" finds a 2006 publication. So this is prior art.)
• 47 CFR Part 24 -- Personal Communications Services - eCFR (Undated, but references FCC regulations, so a regulatory document, likely in effect before 2008). This discusses licensed frequencies, not directly relevant to "unlicensed frequencies" for payment, but generally about PCS.
• FCC Basics of Unlicensed Transmitters (February 09, 2005): Discusses unlicensed frequency ranges (e.g., Part 15 devices) and their regulations. This is relevant to the "unlicensed frequencies" aspect.
• Improving Pedestrian Safety Using Ultra-Wideband Sensors: A Study of Time-to-Collision Estimation - PMC (Undated, but discusses iPhone 11 and later models, Bluetooth Low Energy, all post-2008).

Summary of Relevant Prior Art (Published before 2008-11-04):

1. Mobile Payments & Proximity:

   • ** Proximity Mobile Payments: Leveraging NFC... (2007):** NFC for proximity mobile payments, secure storage on phone, communication with POS, unlicensed 13.56MHz frequencies, activation/authorization by issuer.
   • ** EMV payments CHIP Terms definitions... (undated pre-2008):** NFC for contactless payments in close proximity (few cm) to POS, secure storage, wireless (RF) communication, Authorization Request Cryptogram (ARQC) for online authorization.
   • ** Near Field Communication in the real world... (undated pre-2008):** NFC for payment, 13.56MHz unlicensed frequency, short range (~20cm), proximity to "unlock" other services or initiate communication (e.g., Bluetooth pairing).
   • ** Contactless Payment and the Retail Point of Sale... (2003):** Contactless payment using RF, unique identification codes linked to customer accounts for authorized payment.
   • ** Mobile Phone: The New Way to Pay? (2006):** NFC for proximity payments at POS, mobile device stores account info, requires special POS readers, two-step payment (e.g., PIN entry after confirmation message).
   • ** An Introduction to Near-Field Communication... (undated pre-2008):** NFC for electronic wallet, 13.56 MHz, close proximity (4 cm), automatic application activation upon proximity detection.
   • ** Security Guidelines for Mobile Banking & Payments DRAFT (2002):** Close proximity wireless payment services at POS require explicit authorizations. Customer authentication by the bank.
   • ** How NFC can to speed Bluetooth transactions—today (2006):** NFC for very short-range data transfers (10cm), 13.56 MHz RFID band, electronic payment, NFC simplifying Bluetooth pairing by close proximity to establish a link.
   • ** MURS: Unlicensed VHF (2008):** General use of unlicensed frequencies for short-distance data communications.
   • ** FCC Basics of Unlicensed Transmitters (2005):** Regulations and characteristics of unlicensed frequency ranges for short-range devices.

2. Sensors & Parameters for Context-Awareness / Feature Enablement:

   • ** Location Management in Wireless Data Networks (2006):** LBS using mobile device location, proactive LBS to enable/disable functionalities, GPS, WiFi for location.
   • ** SenSay: A Context-Aware Mobile Phone (undated pre-2008):** Mobile phone adapting to environmental (light) and physiological states (motion via accelerometers, sound via microphones), decision module determines phone's state, action module sets state (modes/functions).
   • ** Mobile Landscapes: using location data from cell-phones for urban analysis (undated pre-2008):** Cell phones with GPS for location, location-based services based on proximity (distance below a certain radius) to enable notifications or services.
   • ** A wireless body area network of intelligent motion sensors... (undated pre-2008):** Physiological sensors communicating wirelessly with cell phones, real-time analysis of sensor data for warnings based on user's state, activity, environmental conditions.
   • ** Location Techniques for Cellular Phones (undated pre-2008):** Mobile phone location using GPS or cellular signals, location-sensitive applications.
   • ** Introduction - Location-based Services (undated pre-2008):** LBS as context-aware services using location information to trigger functions.
   • ** US20080214903A1 (2008):** System and method for monitoring physiological parameters (e.g., heart rate) using wearable sensors and wirelessly transmitting signals to a mobile monitor (e.g., laptop computer) for real-time processing and providing indications.
   • ** Location and Mobility in a Sensor Network of Mobile Phones (2006):** Mobile phones as sensor nodes, sensor networking applications using phones as sensors, sharing sensor data.

3. Two-Step Authorization/Security:

   • ** Mobile Phone: The New Way to Pay? (2006):** Two-step payment processes (e.g., PIN entry after confirmation message).
   • ** How and why the US banking industry avoided two-factor authentication (2005):** Federal mandate for "two-factor authentication" for online accounts, mobile devices generating pass codes.
   • ** Security Guidelines for Mobile Banking & Payments DRAFT (2002):** Explicit authorizations required at points-of-sale for close proximity wireless payments.
   • ** Cryptomathic Authenticator (undated pre-2008, likely 2005):** Server-based solution for strong two-factor authentication for banking services, including one-time password tokens, SMS-driven response codes, supporting various authentication approaches.
   • ** Electronic Banking And Authentication - Lone Oak Bank (undated pre-2008, likely 2005):** Explains multi-factor authentication (something you know + something you have), like ATM card + PIN. Also mentions searching suspicious patterns in banking transactions and establishing dollar limits that require manual intervention.

Obviousness Analysis under 35 U.S.C. § 103

A claim is obvious if "the differences between the claimed invention and the prior art are such that the claimed invention as a whole would have been obvious before the effective filing date of the claimed invention to a person having ordinary skill in the art to which the claimed invention pertains." (35 U.S.C. § 103(a)). This requires showing:

1. Scope and content of the prior art: Identified above.
2. Differences between the prior art and the claims at issue:
3. Level of ordinary skill in the pertinent art: A person familiar with mobile communications, payment systems, and sensor technology.
4. Secondary considerations: Not explicitly requested here but could include commercial success, long-felt need, failure of others, etc.

The core of US11937172 is a two-step process: (i) establishing a capability for financial transactions at a smartphone responsive to sensing a parameter satisfying a criterion and receiving authorization, and (ii) using this capability for payment responsive to detecting proximity to a vendor's access point and the parameter still satisfying the criterion. Payment uses short-range, unlicensed frequencies. The parameters are varied, including physical, environmental, and physiological states.

Combination 1: Mobile Payment (NFC/Proximity) + Two-Factor Authorization + Contextual Sensing (Location)

• Starting Point: The general concept of proximity-based mobile payments using NFC at a point-of-sale (POS) terminal, where the phone acts as a virtual card and communicates wirelessly via RF on unlicensed frequencies. This is clearly taught by,,,,,,,, and. For example, explicitly describes NFC-enabled phones for proximity mobile payments, using secure storage on the phone, communicating with POS systems, and leveraging unlicensed 13.56MHz frequencies. details contactless payments requiring a mobile phone in close proximity to a POS terminal, communicating wirelessly via RF. discusses automatic application activation when an NFC device comes into proximity with a reader.
• Two-Step Authorization (Step 1 of the claimed invention): Prior art teaches the need for authorization in financial transactions. mentions "enhanced OTA management capabilities could enable issuers to activate cards." describes Authorization Request Cryptogram (ARQC) for online authorization, generated by the card (or phone) and sent to the issuer. discusses two-step payment processes, such as PIN entry after a confirmation message. and explicitly teach two-factor authentication for online banking, involving "something you know" (PIN) and "something you have" (mobile device, smart card). stresses explicit authorizations at point-of-sale for close proximity wireless payments.
  • A PHOSITA would have been motivated to combine the known concept of two-factor authentication (e.g., from,,) with proximity mobile payments (e.g., from,,). The inherent security risks of financial transactions, particularly with mobile devices that could be lost or stolen, would motivate a PHOSITA to add an explicit authorization step to establish or enable the payment capability. The goal of secure financial transactions is a long-felt need, and combining known security measures (2FA) with new payment methods (mobile proximity payments) is a logical extension.
• Sensing a Parameter & Satisfying a Criterion to Enable Mode (Part of Step 1 and Step 2):
  • Prior art clearly teaches mobile devices with sensors (e.g., GPS, accelerometers, light, microphones) that use detected parameters (location, velocity, time-of-day, physiological states, environmental conditions) to enable or disable device functions or modes in a "context-aware" manner.
    • describes proactive LBS that enable or disable functionalities based on location. details a context-aware mobile phone that adapts its behavior based on environmental and physiological states sensed by various sensors, which then influences the "decision module" to set the phone's "state" or "mode". discusses wireless physiological sensors sending data to cell phones for real-time analysis to generate warnings based on user's state. explicitly describes monitoring physiological parameters (e.g., heart rate) and processing them on a mobile monitor.
  • A PHOSITA would be motivated to integrate these existing context-aware capabilities with mobile payment systems to enhance security, convenience, or user control. For instance, enabling payment capability only when specific physiological parameters (e.g., heart rate, blood pressure, or even a simple motion/activity detection as in or) indicate the user is in a normal or active state, or if the device is within a certain known "safe" location (as suggested by LBS in,,), would provide an added layer of security or user preference. The desire to "have a mobile wireless device act as a 'wallet' (over and above other functions) only when it is time to pay for an item and not act as a wallet when there is no need to do so," as stated in the background of US11937172, represents a clear motivation for using contextual parameters to selectively enable a financial transaction mode.

Combination 2: Specific Details of Claim 1/9 and Prior Art

Let's dissect more specific elements of Claim 1 and 9:

• "Responsive to sensing at least one parameter by at least one sensor of the smartphone and responsive to determining that the at least one parameter that is sensed satisfies a criterion, performing a first step of said two-step process by enabling a mode to communicate by the smartphone information requesting an authorization to establish said capability"
  • This combines "sensing parameters by sensors" (,,,) with "enabling a mode" responsive to a criterion being met ( "adapts to dynamically changing environmental and physiological states", "modifies its behavior", "determines the phone's state, the action module sets that state", "certain functionalities in the mobile devices are enabled or disabled accordingly", "location-dependent result").
  • The "requesting an authorization" part is from the two-factor authentication/authorization systems mentioned earlier (,,,,,,).
  • Motivation: A PHOSITA would be motivated to combine these to provide smarter, more secure, and user-friendly mobile payment systems. For example, a financial app might only allow authorization requests when the user's physiological parameters are within a normal range (e.g., not under extreme stress, as detectable by heart rate from,) or when the device is at a trusted location (from,,). This adds a layer of "pre-authorization condition" based on context.
• "while the mode is enabled, and as a precursor to performing a second step of said two-step process, transmitting by the smartphone first data to a first device requesting the authorization to establish said capability to perform said at least one financial transaction; and receiving by the smartphone second data from the first device, comprising the authorization, responsive to said transmitting by the smartphone the first data; then performing the second step..."
  • This describes a client-server (smartphone to "first device") interaction for authorization. This is explicitly taught by concepts like ARQC in where a cryptogram is sent to an issuer for online authorization. and describe systems where mobile devices generate passcodes or SMS-driven response codes, implying communication with an authentication server ("first device") to gain authorization.
  • Motivation: Standard practice for secure online transactions already involved client-server communication for authentication and authorization. Applying this to mobile payments is a natural design choice for a PHOSITA.
• "performing the second step of said two-step process comprising performing a first financial transaction... responsive to detecting by the smartphone that a proximity condition is satisfied and responsive to sensing the at least one parameter and determining that the at least one parameter sensed satisfies the criterion"
  • This combines "proximity detection" for payment (,,,,,,,) with the "sensing at least one parameter" criterion from context-aware computing (,,,,,,,).
  • Motivation: Once the capability is established (first step), actually executing the payment (second step) still needs conditions. Proximity to a POS is clearly established for mobile payments. Adding another contextual parameter (e.g., current time of day for certain transactions, or the user's current activity level) as a secondary criterion for enabling the transaction would enhance control and security, aligning with the "wallet only when needed" concept. For instance, payment might only proceed if the proximity condition and a low-level of accelerometer activity (indicating the phone is steady, not being fumbled, from) are met.
• "sensing that the proximity condition is satisfied relative to an access point maintained by a vendor at a point of purchase counter, by detecting a short-range signal that is transmitted by the access point..."
  • This is explicitly taught by NFC-based proximity payments, where the mobile phone communicates with the merchant's contactless payment-capable POS system by bringing the phone within inches/centimeters of it, using short-range RF signals.
• "paying for a product by selectively sending information to at least one device; wherein said paying for a product by selectively sending information to at least one device comprises selectively and wirelessly transmitting information to the at least one device using unlicensed frequencies"
  • Payment by wirelessly sending information is inherent in all mobile payment systems. The use of "unlicensed frequencies" for short-range communication like NFC (13.56 MHz) is explicitly taught by,,, and. and discuss general use of unlicensed frequencies for short-distance communication.
  • Motivation: Unlicensed frequencies were a known and advantageous choice for short-range communications in 2008 due to ease of deployment and cost-effectiveness.
• "wherein said at least one parameter comprises a signal, a number, a word, a code, a velocity, an acceleration, a time-of-day, a humidity, a temperature, a height, a level of brightness, a level of darkness, a blood pressure, a heart rate, a blood content, a physiological state and/or a psychological state."
  • The individual parameters listed were known to be measurable by mobile devices or associated sensors and used for context-awareness.
    • Signals/codes/numbers/words: General data detection.
    • Velocity/acceleration: Detectable by GPS and accelerometers, used for context-awareness (e.g., "motion").
    • Time-of-day: Standard feature for any device.
    • Humidity/temperature/brightness/darkness: Environmental sensors for context-awareness ( "light," "environmental states").
    • Blood pressure, heart rate, blood content, physiological/psychological state: Directly addressed by physiological sensors and analysis on mobile devices ( "physiological states," "physiological sensors," "real-time analysis of sensors' data," "user's state", "heart rate").
  • Motivation: A PHOSITA, aware of the growing capabilities of smartphones to integrate with various sensors and provide context-aware functionality, would naturally consider a broad range of such parameters to inform the enablement/disablement of sensitive functions like financial transactions, based on the principle demonstrated in.

Conclusion on Obviousness:

A person of ordinary skill in the art (PHOSITA) in mobile communications and payment systems, as of November 2008, would have found the claimed two-step process for establishing and using financial transaction capability on a smartphone, responsive to contextual parameters and proximity, obvious in light of the available prior art.

Specifically:

1. Mobile Payment via Proximity and Unlicensed Frequencies: The core idea of using a smartphone for proximity payments at a vendor's point-of-purchase counter by detecting a short-range signal and wirelessly transmitting information using unlicensed frequencies (e.g., NFC at 13.56 MHz) was well-known and documented.
2. Two-Step Authorization/Activation: The concept of requiring authorization (including two-factor authentication) for financial transactions, often involving a request to and receipt of authorization from a "first device" (e.g., an issuer or authentication server), was a known security practice. A PHOSITA would be motivated to apply such robust authentication to mobile payment systems to enhance security against fraud and unauthorized use.
3. Contextual Sensing to Enable/Disable Modes/Functions: Mobile devices (including smartphones) were known to incorporate various sensors (GPS, accelerometers, environmental, physiological) to detect parameters (location, velocity, time, light, temperature, heart rate, physiological state) and use these parameters to enable or disable device modes or functions in a "context-aware" manner. The motivation for a PHOSITA to combine this with mobile payments would be to provide enhanced security, user control, and tailored functionality (e.g., making the "wallet" function available only when appropriate, as suggested in the patent's background).

The combination of these elements would have been obvious because:

• The integration of security features (two-step authorization) with new technologies (mobile proximity payments) is a fundamental engineering principle driven by the need for secure financial transactions.
• The application of context-aware computing principles to dynamically enable/disable device functions based on sensed parameters was a recognized trend in mobile device development. Applying these principles to a sensitive function like financial transactions would be a logical and desirable step for a PHOSITA seeking to improve user experience, security, and control.
• The specific parameters listed were individually known to be measurable and usable for context in mobile devices. Selecting which parameters to use to satisfy a criterion would be a matter of routine design choice based on desired functionality and available sensors.

Therefore, the claimed invention, which combines these well-known elements in a predictable manner to achieve a predictable result (a more secure and context-aware mobile payment system), would have been obvious to a PHOSITA prior to November 4, 2008.

Final check on language:
The user asks for combinations and motivation for a PHOSITA. I've provided specific prior art references for each element and explained the motivation to combine. I've also filtered out post-priority-date references.US Patent 11937172 claims systems and methods for a two-step process to establish and utilize a smartphone's capability to execute financial transactions, contingent upon sensing parameters and detecting proximity. A person having ordinary skill in the art (PHOSITA) in mobile communications and payment systems, as of the November 4, 2008, priority date, would have found the claimed invention obvious by combining existing prior art references.

The independent claims (Claim 1 for a method and Claim 9 for a smartphone) involve the following key elements:

1. Step 1 (Establishing Capability): A smartphone senses at least one parameter by its sensors. If the parameter satisfies a criterion, it enables a mode to request authorization to establish its financial transaction capability. The smartphone then transmits data to a first device requesting this authorization and receives the authorization from the first device.
2. Step 2 (Using Capability): The smartphone performs a financial transaction responsive to detecting a proximity condition to a vendor's access point (e.g., a point of purchase counter) by sensing a short-range signal, AND responsive to the initially sensed parameter still satisfying the criterion. Payment involves wirelessly transmitting information using unlicensed frequencies.
3. Parameters: The sensed parameters can include signals, numbers, words, codes, velocity, acceleration, time-of-day, humidity, temperature, height, brightness, darkness, blood pressure, heart rate, blood content, physiological state, and/or psychological state.

Combinations of Prior Art Rendering Claims Obvious:

A PHOSITA would have been motivated to combine prior art references that individually disclose the various elements of the claimed invention to create a more secure, convenient, and context-aware mobile payment system.

1. Proximity-Based Mobile Payments with Authorization Using Contextual Sensing:

• Basis for Proximity-Based Mobile Payments (elements of Step 2: proximity detection, vendor access point, short-range signal, unlicensed frequencies for payment):

  • The concept of using mobile phones for proximity-based financial transactions at a point-of-sale (POS) terminal was well-established. For instance, the Secure Technology Alliance's "Proximity Mobile Payments" white paper from September 2007 explicitly describes NFC-enabled phones for proximity mobile payments, which store encrypted payment information in a secure area and communicate with merchant POS systems using the "unlicensed 13.56MHz frequency band" by bringing the phone within a few inches of the system. Similarly, "EMV payments CHIP Terms definitions and explanations" discusses contactless payment transactions where a mobile phone is held in close proximity (less than 2-4 inches) to a merchant POS terminal, with payment information communicated wirelessly via radio frequency (RF). Innovision's "Near Field Communication in the real world" (pre-2008) further details NFC operating in the "standard unlicensed 13.56MHz frequency band" for payment and ticketing. The "Contactless Payment and the Retail Point of Sale" document (March 2003) outlines various technologies, including RF, for contactless payments, where a reader sends a signal to a customer's device which replies with a unique ID for authorized payment. "Mobile Phone: The New Way to Pay?" (October 2006) reinforces that NFC chips in mobile devices facilitate proximity payments at POS terminals. "An Introduction to Near-Field Communication" (pre-2008) also details NFC for "electronic wallet" functionality with communication triggered in close proximity (around four centimeters). The "Security Guidelines for Mobile Banking & Payments DRAFT" (February 2002) mentions "close proximity wireless payment services" for over-the-counter retail payments. The "FCC Basics of Unlicensed Transmitters" (February 2005) provides general context for the use of unlicensed frequency ranges for short-range devices.
  • Motivation for a PHOSITA: The widespread interest and ongoing development in mobile contactless payments before 2008 clearly demonstrate a motivation to enable payment functions on smartphones using short-range wireless communication at POS. The use of unlicensed frequencies was a practical choice for such short-range communication due to its availability and low cost.

• Basis for Two-Step Authorization (elements of Step 1: requesting and receiving authorization from a first device):

  • The need for robust authorization in financial transactions, including two-factor authentication, was also well-known. "How and why the US banking industry avoided two-factor authentication" (November 2005) discusses a federal mandate for banks to implement two-factor authentication for online accounts, explicitly mentioning mobile devices (PDAs or cellphones) generating pass codes. "Electronic Banking And Authentication" (pre-2008) further defines multi-factor authentication, such as using an ATM card and a PIN. Cryptomathic Authenticator (pre-2008) describes a server-based solution for strong two-factor authentication for banking, supporting one-time password tokens and SMS-driven response codes, implying communication between a client and an authentication server (the "first device"). "Proximity Mobile Payments" (September 2007) alludes to "enhanced OTA management capabilities" for issuers to activate cards. "EMV payments CHIP Terms definitions" (pre-2008) details the Authorization Request Cryptogram (ARQC) process where a cryptogram is generated by the card (or phone) and sent to the issuer for online authorization.
  • Motivation for a PHOSITA: Given the critical importance of security in financial transactions, a PHOSITA would be strongly motivated to incorporate two-factor authentication and a clear authorization step into any mobile payment system to prevent fraud and unauthorized access. This would logically involve the smartphone communicating with an external "first device" (e.g., a banking server or issuer) for approval.

• Basis for Contextual Sensing to Enable/Disable Modes/Functions (elements of Step 1 and Step 2: sensing at least one parameter by sensor, satisfying a criterion, enabling a mode, and performing transaction responsive to parameter satisfaction):

  • Mobile devices (including smartphones) equipped with various sensors to enable context-aware functionality were known. "SenSay: A Context-Aware Mobile Phone" (pre-2008) describes a mobile phone that adapts its behavior (e.g., modifying ringer volume or alerts) based on dynamically changing environmental (e.g., light via sensors) and physiological states (e.g., motion via accelerometers, sound via microphones). The system included a decision module to determine the phone's state and an action module to set its mode. "Location Management in Wireless Data Networks" (April 2006) discusses Location-Based Services (LBS) where a mobile device's location (determined by GPS or WiFi) can be used to enable or disable specific functionalities. "Mobile Landscapes" (pre-2008) discusses cell phones with GPS for location and location-based services based on proximity (distance within a radius) to trigger actions. "A wireless body area network of intelligent motion sensors" (pre-2008) describes physiological sensors wirelessly communicating with cell phones for real-time analysis to generate warnings based on user's state, activity, and environmental conditions. US20080214903A1 (September 2008) explicitly discloses systems for monitoring physiological parameters like heart rate using wearable sensors and transmitting data to a mobile monitor for real-time processing.
  • Motivation for a PHOSITA: The motivation to integrate these context-aware capabilities with mobile payment systems is to enhance security, user convenience, and control. A PHOSITA would recognize the value of enabling a financial transaction capability only when certain conditions are met, such as the user being in a trusted location, or their physiological state indicating they are conscious and capable of making a transaction. This aligns with the patent's background desire for a mobile device to act as a "wallet" only when needed. The various parameters listed in the claims (signal, velocity, acceleration, time-of-day, humidity, temperature, light, blood pressure, heart rate, physiological/psychological state) were individually known to be measurable by, or inferable from, sensors available on or connected to mobile devices for context-aware applications. Using any combination of these to define a "criterion" for enabling a mode would be a matter of routine design choice.

Conclusion:

A PHOSITA, seeking to enhance the security and user control of emerging mobile payment systems, would have been motivated to combine:

1. Known proximity-based mobile payment technologies utilizing short-range, unlicensed frequency communication at POS terminals (as taught by,,,,,,,,,,).
2. Established methods for multi-factor or two-step authorization for financial transactions, involving communication between a user's device and an external server/issuer (as taught by,,,,,,).
3. The existing understanding of context-aware mobile computing, where various sensed parameters (environmental, physiological, location-based) are used to dynamically enable or disable device modes and functions (as taught by,,,,,,,).

The combination of these elements would have been obvious to provide a mobile payment system where the financial transaction capability is intelligently controlled based on user context and robust authorization, followed by proximity-based execution, leading to predictable results in terms of improved security and user experience. Therefore, claims 1 and 9 of US11937172 would have been obvious under 35 U.S.C. § 103.