Invalidity dossier

US 4674041

Method and apparatus for controlling the distribution of coupons

Current assignee: Catalina Marketing Int'l, Inc.

Added 10/1/2026, 3:04:03 PM

At a glanceNo PTAB challenges2 lawsuits on fileasserted by Catalina Marketing Int'l, Inc.Financial Technology (FT)

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Patent summary

Title, assignee, inventors, filing/issue dates, abstract, and a plain-language overview of the claims.

✓ Generated

I'll verify the patent number and check for any litigation/docket activity before summarizing.

Verification note

I searched and confirmed the identifier US 4,674,041 / US4674041A (Appl. No. 06/533,060) and did not substitute any similar number. All bibliographic items below were cross-checked against the patent's own printed front page (as reproduced in the authoritative full text and in the published copy of the patent), Google Patents, and uspto.report.


US 4,674,041 — Bibliographic summary

Field Value
Patent number US 4,674,041 (US4674041A)
Title "Method and apparatus for controlling the distribution of coupons"
Inventors Chester L. Lemon (Dallas, TX); Bill A. Kelly (Ft. Worth, TX)
Appl. No. 06/533,060
Filed September 15, 1983
Issued / published June 16, 1987
Original assignee Electronic Advertising Network, Inc. (assignment recorded 1983-09-15)
Assignee of record as printed on the patent James K. Appleton, Dallas, TX (assignment of 1987-02-27, from the bankruptcy estate of Electronic Advertising Network, Inc.)
Later assignee Catalina Marketing International, Inc. (assignment of 1997-12-05)
Status Expired – Lifetime; anticipated expiration June 16, 2004
Family PCT/US1984/001450 → WO 85/01373 A1; EP 0156856 B1; DE 3477702 D1; AT E42157 T1; AU 33979/84 A; family ID 24124303
Exemplary classification G06Q 30/02; G06Q 30/0235; G06Q 30/0236; G06Q 30/0241; G06Q 20/387; G07G 1/145

Assignee caveat: Google Patents lists current assignees as "Electronic Advertising Network Inc" and "Catalina Marketing International Inc," while uspto.report states the patent "is currently assigned to James K. Appleton" — that uspto.report statement appears to be stale front-page data. Google itself disclaims accuracy of its assignee list. I would treat Catalina Marketing International, Inc. as the last recorded assignee (1997), with the chain Electronic Advertising Network → Appleton (bankruptcy) → Catalina.


Abstract (as issued)

"A system for monitoring and controlling the distribution of product coupons from a plurality of remote terminals located at the point of sale is provided. The system includes video display terminals for displaying an array of coupons available for selection and means for monitoring and controlling the number of coupons distributed."


Plain-language overview of the independent claims

The patent contains 31 claims, with two independent claims: claim 1 and claim 25. (Claim text reproduced at uspto.report/patent/grant/4674041.)

Claim 1 — "System for controlling the selection and dispensing of product coupons at a plurality of remote terminals located at predesignated sites such as consumer stores"

Each terminal must have five cooperating elements:

  1. Activation means — activates the terminal for consumer transactions.
  2. Display means — linked to the activation means, shows a set of coupons available for selection.
  3. Selection means — linked to the display, lets the consumer pick a displayed coupon.
  4. Print means — linked to the selection means, prints and dispenses the selected coupon.
  5. Control means — linked to the display, monitors each consumer transaction and controls the display to prevent display of coupons whose prescribed coupon limits have been exceeded.

Plain English: it is the in-store kiosk system that shows coupons, lets a shopper touch-select them, prints them on the spot, and — critically — self-limits by hiding coupons once a preset issuance cap is reached. Note that claim 1's "located at predesignated sites such as consumer stores" language appears only in the preamble ("such as" is exemplary only).

Claim 25 — "System … comprising:"

This is the host/terminal-architecture claim, and it is broader in system scope but tighter in siting language:

  • A plurality of free-standing coupon display terminals at predesignated sites such as consumer stores, each capable of bidirectional data communication with a host central processing unit (CPU).
  • Each terminal comprises: activation means using a credit card or other card with customer account information on a magnetic strip; display means; selection means; print means; terminal control means that continuously monitors each customer transaction and controls display and print in response to prescribed coupon limits; and means for storing consumer transactions and periodically communicating them to the host CPU.
  • The host CPU transmits, to each terminal, particular information for each coupon, and periodically transmits coupon limits such as expiration date and total number of coupons to be dispensed.

Plain English: the same kiosk concept, but structured as a host-plus-remote-terminals network where the host pushes per-coupon information and issuance caps down to the stores, and the terminals report transaction data back up. This is the claim whose "located at predesignated sites such as consumer stores" phrase appears both in the preamble and the body, making it a limitation.

Representative dependent claims (illustrating scope)

  • Cl. 2–5: magnetic-strip card activation; per-card suppression of coupons; per-terminal/time-period coupon caps plus display masking; touch-screen selection with disabling of masked touch pads.
  • Cl. 6–11: storing a transaction record (customer account number + type/number of coupons dispensed); per-account limits with account-number comparison/masking; transmission to a central data processing unit, triggered periodically, on storage-capacity exhaustion, and counting overflow transactions.
  • Cl. 12–18: page-formatted video menu, sequential pages, altered/rotated page order, non-coupon advertising graphics, timed pages, "hold page," and "next page."
  • Cl. 20–23: printing the coupon with product name/manufacturer/value; encoded store ID, Julian date and time of day; an expiration date; and a machine-readable UPC.
  • Cl. 24: printer-failure signal places the terminal in a standby mode where selection is inoperable.
  • Cl. 26–31 (depend on 25): transaction recording; suppression at the per-customer, per-terminal, and system-wide limit levels; reporting account numbers and coupon accounting to the host; and host compilation/reporting of transaction data per terminal and per coupon.

Litigation / docket findings (and what search did not show)

Found (historical, not 2026):

  • Catalina Marketing Int'l, Inc. v. CoolSavings.com, Inc., No. 01-1324, Fed. Cir., decided May 8, 2002, reported at 289 F.3d 801. Holding relevant to this patent: the preamble phrase "located at predesignated sites such as consumer stores" does not limit claim 1 (mere intended-use preamble) but does limit claim 25 (because it also appears in the body), requiring designation of the terminal's physical site before placement at a point-of-sale location; the no-literal-infringement judgment on claim 1 was vacated and remanded.
  • Google Patents' litigation links for this family show: a district court case labeled "Illinois Southern District Court," case 1:00-cv-02447; and two Federal Circuit appeals, 03-1627 and 03-1548 (2003).
  • A Darts-IP "first worldwide family litigation" link for family 24124303.

Not found:

  • No 2026 Court of Appeals for the Federal Circuit docket activity for US 4,674,041 appeared in any search result. The only CAFC activity I can substantiate is 2002–2003. This is consistent with the patent having expired June 16, 2004, which would leave nothing to enforce.

Caveat on the docket search: my searches returned public web/patent-portal sources (Google Patents, Unified Patents' litigation portal, Justia, FindLaw, uspto.report); I did not directly query PACER or the CAFC's own docket system. I therefore cannot rule out a 2026 filing with certainty, but I have no evidence of one and would regard it as implausible given the 2004 expiry. I also note Google Patents' label says "Illinois Southern District Court" while the cited case number 1:00-cv-02447 is in the format used for the Northern District of Illinois — I am reporting the label literally rather than correcting it.


Explicit uncertainties / conflicts I did not resolve

  1. Claim count discrepancy between the US patent and its PCT counterpart. The granted US patent shows 31 claims with independent claims 1 and 25. Search results also surfaced a claim set numbering 26–32, in which claim 26 is an independent "system … comprising a plurality of free standing coupon display terminals …" claim. That text appears in the PCT/WO 85/01373 documents and an accompanying international search report (which cites claims 1, 2, 12, 14, 26, 27, 31, 32). I therefore treat the 26–32 numbering as the PCT application's claim set, not the granted US claim set, and flag it as a known mismatch rather than auto-correcting either.
  2. Priority date micro-conflict. Google Patents lists priority date 1983-09-15; one Unified Patents page snippet shows 1983-09-14. I have followed the patent face and the application filing date, 1983-09-15.
  3. Assignee of record — see the caveat above; the three-way conflict (Google's dual listing vs. uspto.report's "Appleton" vs. the 1997 Catalina assignment record) is unresolved on the sources available to me.
  4. The authoritative full text supplied to me contains the description and abstract but not the claims; the claim language above is taken from a third-party reproduction of the granted claims (uspto.report), which is consistent with the claim language quoted in the Federal Circuit opinion and PCT materials but should be verified against the USPTO patent copy for any legal use.
  5. The specification names its host as a "Digital Equipment Corporation 11T23 System" and the terminal CPU as a "Digital Equipment P.D.P. 11/2" with a QSB-11 Bubbl-Tec bubble memory and a Model TK120S touch screen (Interaction Systems, Inc.). These are quoted literally from the text; I have not independently verified the product designations.

Generated 10/1/2026, 3:11:45 PM

Cases on file (2)

Group view →

Specific litigation cases in our database that name US patent 4674041. The free-form analysis below may also discuss cases beyond this list.

Litigation summary

Past and pending lawsuits — plaintiffs, defendants, jurisdictions, outcomes, and notable rulings.

✓ Generated

I'll research litigation involving US patent 4674041 using the sources you specified. Let me run several searches.

I found substantial litigation. Let me dig deeper into specific cases and check the Unified Patents portal.

Based on my searches, here is what I found. Note that I am reporting only results traceable to US Patent 4,674,041 ("Method and apparatus for controlling the distribution of coupons," Lemon et al., issued June 16, 1987; assignee ultimately Catalina Marketing International, Inc.). I did not find any litigation results that clearly involved the similar-looking numbers you warned about, and I flag one jurisdiction discrepancy below.

Known litigation involving US 4,674,041

1. Catalina Marketing International, Inc. v. coolsavings.com, Inc.

This is the principal and best-documented litigation over the '041 patent.

  • Plaintiff: Catalina Marketing International, Inc. (owner of the '041 patent; marketed as the "Lemon-Kelly patent")
  • Defendants: coolsavings.com, Inc. and coolsavings, Inc. (collectively "Coolsavings"); later an amended complaint added Landmark Communications, Inc. and Landmark Ventures VII, Inc. (collectively "Landmark")
  • Jurisdiction: Originally filed in Florida in November 1999; transferred to the U.S. District Court for the Northern District of Illinois in April 2000. (See Casetext/CourtListener summary of the N.D. Ill. fee opinion.)
  • Case number: No. 00 C 2447 (N.D. Ill.). Note a discrepancy: the Google Patents page for US 4,674,041 lists a case "US case filed in Illinois Southern District Court … case 1:00-cv-02447." The district court opinion, however, identifies the case as N.D. Ill. No. 00 C 2447. I am reporting both as given rather than reconciling them.
  • Filing date: November 1999 (original Florida complaint); transferred April 2000.
  • Procedural history and outcomes:
    • March 2001: N.D. Ill. granted Coolsavings' motion for summary judgment of non-infringement.
    • May 8, 2002: Federal Circuit (Appeal No. 01-1324), reported at Catalina Marketing Int'l, Inc. v. coolsavings.com, Inc., 289 F.3d 801 (Fed. Cir. 2002), affirmed in part, reversed in part, vacated in part, and remanded. The court held the preamble phrase "located at predesignated sites such as consumer stores" was not limiting as to Claim 1, but was limiting as to Claim 25, and remanded the infringement question. This decision is now widely cited for the law on when a claim preamble is limiting.
    • April 2003: Markman hearing; June 2003: claim construction issued.
    • August 8, 2003: Agreed Final Judgment and Dismissal Order entered; Catalina appealed the claim construction on September 4, 2003. Landmark was dismissed for lack of personal jurisdiction in July 2003.
    • Feb. 4, 2004: N.D. Ill. opinion denying defendants' motions for attorney's fees under 35 U.S.C. § 285.
    • 2004: Federal Circuit consolidated appeals Nos. 03-1548 and 03-1627, reported as Catalina Marketing Int'l, Inc. v. coolsavings.com, Inc., 115 F. App'x 84 (Fed. Cir. 2004) (nonprecedential). The court sustained the district court's construction (including the "activation means" and "selection means" means-plus-function terms), and Catalina lost — Coolsavings won.
  • Current status: Concluded. Final judgment of non-infringement (as affirmed on the second appeal). The '041 patent expired June 16, 2004 (per the Google Patents legal-status record).

2. Earlier, less-documented litigation

The Feb. 4, 2004 N.D. Ill. opinion refers in passing to "documents related to a previous case involving Catalina and the Lemon-Kelly Patent." This indicates at least one earlier suit asserting the '041 patent existed, but I could not retrieve the plaintiff/defendant names, jurisdiction, case number, or outcome from the sources searched. I flag this as unconfirmed rather than asserting specifics.

What I could not confirm

  • I was not able to load the Unified Patents litigation portal page for US 4,674,041 directly (the portal's per-patent litigation tab did not surface in my searches). The litigation entries I could reach are the Illinois district court case and the two Federal Circuit appeals (03-1627 and 03-1548) noted on the Google Patents record, plus the Darts-ip "first worldwide family litigation" link (family 24124303).
  • A search result for Southwest eFuel Network, LLC v. Catalina Marketing Corporation, N.D. Tex. No. 3:12-cv-00675, involves Catalina as a defendant, but that case concerns a different plaintiff's patents, not the '041 patent, so I have excluded it.

Caveat

Patent litigation dockets are not exhaustively indexed in free sources, and my search results were limited. The cases above are the ones I could positively tie to US 4,674,041. It is possible additional, older or low-profile suits exist that did not surface. If you need a definitive docket-level listing (e.g., via PACER/Unified Patents and Darts-ip family 24124303), I would recommend pulling the portal case list directly, which I was unable to do here.

Generated 10/1/2026, 3:11:41 PM

Proceedings on file (0)

All PTAB activity →

AIA trial proceedings (IPR / PGR / CBM) filed at the USPTO Patent Trial and Appeal Board against this patent. Sourced from the USPTO Open Data Portal and refreshed every six hours; each proceeding number deep-links to the PTAB E2E docket.

Current assignee: Catalina Marketing Int'l, Inc.

No PTAB proceedings on file. This patent has not been challenged via IPR, PGR, or CBM. The absence is itself a signal — well-asserted patents eventually attract IPRs. The LLM analysis below may surface filings the ODP feed hasn’t indexed yet.

PTAB challenges

AIA trial proceedings at the USPTO Patent Trial and Appeal Board — IPR, PGR, and CBM. Petitioners, judge panels, claim-level invalidation outcomes from Final Written Decisions, and Federal Circuit appeals. The single most important defensive datapoint after litigation history.

✓ Generated

I'll verify the structured ODP data against public sources before drafting.

Let me confirm the absence of AIA trials and pin down the related litigation that does exist.

Let me pin down the appellate case identity behind the two CAFC dockets listed in the ODP record.

Proceedings overview

Total AIA trial proceedings on US 4,674,041: 0 (0 IPR, 0 PGR, 0 CBM) — active 0 / claims invalidated 0 / claims sustained 0 / settled 0 / institution denied 0, so there is no PTAB outcome to argue from at all: the patent was never tested at the Board, because it expired on 2004-06-16 (see Google Patents legal-status entry, "Anticipated expiration"), roughly eight years before the first IPR was even available on 2012-09-16 — meaning the defensive value here comes from the patent's expiry and its adverse claim-construction record in the district court and Federal Circuit, not from any cancellation of claims.

I verified the structured ODP result against public sources (PTAB E2E / PTAB proceeding search coverage; searches for "4,674,041" + IPR/PTAB return no petition, no proceeding number). I did not find any AIA trial proceeding on this patent, and I am reporting none. I will not invent proceeding numbers to fill the template.

Because the per-proceeding template cannot be populated, I've substituted the closest thing to a PTAB record that actually exists for this patent — the Article III claim-construction litigation — clearly labeled as not a PTAB proceeding.

(No PTAB proceeding on file)

  • Type: n/a — no Inter Partes Review, Post-Grant Review, or Covered Business Method review was ever petitioned against US 4,674,041.
  • Filed / Status / Judge panel / Grounds / Institution / FWD / Settlement / Appeal: n/a. Patent Owner claims were never canceled at the Board; no estoppel under 35 U.S.C. § 315(e)(2) attaches to anyone.
  • Defensive value: Do not assume "no IPRs" means "hardened patent." It means the patent is expired and was never worth a petition. Any demand letter asserting ongoing infringement of a patent that expired 2004-06-16 is a damages-period problem for the sender, not a validity problem for you.

Non-PTAB record a defendant actually needs (Article III, not the Board)

CAFC Nos. 03-1548, -1627 — Catalina Marketing International, Inc. v. Coolsavings.com, Inc. (appeal; Landmark also on review)

  • Type: Federal Circuit appeal from N.D. Ill. summary judgment of non-infringement (superseding/remand appeal; opinion text refers back to "Catalina I, 289 F.3d at 808").
  • Filed: appeal docketed 2003 (per ODP litigation record). Decision date not verified in this session — the opinion is on the Federal Circuit's opinions-orders server at http://cafc.uscourts.gov/sites/default/files/opinions-orders/03-1548.pdf and mirrored on CourtListener (op. 3066478).
  • Judge panel: not verified in this session.
  • Issues / grounds: claim construction and infringement of the '041 patent (a/k/a "the Lemon patent," inventors Chester L. Lemon and Bill A. Kelly). No § 102/§ 103/§ 112 challenge; validity was not the question.
  • Disposition (claim-level):
    • "activation means" (claim 1): affirmed the district court — corresponding structure is a magnetic card reader; Catalina's argument for the UART was rejected.
    • "selection means" (claim 1): affirmed — corresponding structure is a touch screen.
    • "prescribed coupon limits": affirmed — "predetermined limits on the number of coupons collectively and per store," based on the applicants' own prosecution amendment from "prescribed coupon criteria."
    • Infringement: affirmed no infringement. The court noted Catalina stipulated to dismissal and "itself conceded that if the district court's claim construction were upheld, Coolsavings' accused device could not be infringing the '041 patent." Landmark's liability, being derivative of Coolsavings', was rejected; Landmark's Rule 38 sanctions motion was denied.
  • Defensive value: This is the single most useful piece of paper for anyone facing this patent — the patentee lost on claim construction and lost on infringement, and every means-plus-function term was tied to 1980s hardware.

Catalina Marketing Int'l, Inc. v. Coolsavings.com, Inc., 289 F.3d 801 (Fed. Cir. 2002) ("Catalina I")

ODP-listed district court case — 1:00-cv-02447 (reported as Illinois Southern District Court)


Strategic summary

Claim status of US 4,674,041. Nothing is canceled and nothing was sustained at the PTAB — no claim was ever adjudicated there. On the Article III side, the independent claims 1 and 25 (from which the remaining claims depend) both survived validity but were narrowed by construction: claim 1's "activation means" is limited to a magnetic card reader and its "selection means" to a touch screen (Nos. 03-1548, -1627), and claim 25 additionally requires the terminal's physical site to be designated before the terminal is placed (289 F.3d 801). So the accurate framing is zero canceled / all claims technically intact / heavily narrowed / expired. "Untested" claims for PTAB purposes = all of them.

Estoppel landscape. § 315(e)(2) IPR estoppel does not exist for this patent — there is no IPR, so no petitioner and no privy is barred from raising any § 102/§ 103 ground in district court. Conversely, a defendant today has no FWD to point to. What does constrain the patent owner is prosecution-history and claim-construction estoppel: Catalina I/II hold Catalina to the store-location limitation in claim 25 and to the means-plus-function structures in claim 1, and foreclose its earlier attempt to treat the preamble as non-limiting for claim 25.

Pattern signals. There is no serial-petitioner pattern, no defensive aggregator (Unified Patents or similar) in this chain, and no PTAB appeal — the "Family has litigation" flags in the ODP record are all Article III plus a Darts-IP family flag. Ownership history is worth noting for standing/real-party questions on any demand letter: the original assignee Electronic Advertising Network, Inc. assigned in 1983; the bankruptcy estate of Electronic Advertising Network transferred rights to James K. Appleton in 1987-02-27; Appleton assigned to Catalina Marketing International, Inc. on 1997-12-05. Also relevant to any current assertion: the patent expired 2004-06-16, and the 2004 "Anticipated expiration" entry confirms it was not extended (no PTA restoration).


Recommended next steps

  1. Lead with expiration, not invalidity. The patent expired 2004-06-16 (Google Patents legal status). Any infringement claim can only reach conduct within the 35 U.S.C. § 286 six-year lookback from the filing of a complaint, and cannot reach post-2004 conduct at all. If a demand cites this patent for current products, the demand is defective on its face.
  2. If you need an invalidity/scope position, quote the appellate disposition rather than a PTAB FWD — there is no FWD to quote. Use the CAFC opinion: an accused device lacking a magnetic card reader (claim 1 "activation means"), a touch screen (claim 1 "selection means"), or pre-designation of the terminal's physical site (claim 25) cannot infringe — https://law.justia.com/cases/federal/appellate-courts/F3/289/801/483659/ and http://cafc.uscourts.gov/sites/default/files/opinions-orders/03-1548.pdf.
  3. Do not file an IPR. It is possible in principle to petition against an expired patent, but here it buys nothing (no live infringement exposure) and forfeits § 102/§ 103 arguments in any parallel court case under the estoppel provisions. Note also the current USPTO posture discouraging petitions against long-settled patents (Director Squires' 2025-10-16 institution memorandum and the 2025-10-15 proposed rules requiring a "super-Sotera"-style stipulation; see https://www.willkie.com/publications/2025/10/ptab-announces-new-institution-policy) — flagging this as recent policy reported in secondary sources, not a statutory bar.
  4. Verify the assertor's chain of title before responding. Check the 1987 bankruptcy-estate assignment to Appleton and the 1997 assignment to Catalina Marketing International, Inc.; a demand from any entity not in that chain has a real-party-in-interest/standing problem.
  5. Confirm the negative PTAB result independently before relying on it: run a saved search in PTAB E2E (https://ptab.uspto.gov) for patent number 4,674,041 across IPR/PGR/CBM/DER. My conclusion of zero AIA proceedings is based on the ODP structured block plus the absence of any public petition, FWD, or institution decision in web sources — and on the practical unavailability of AIA trials during this patent's assertable life (AIA trials began 2012-09-16; the patent expired 2004-06-16).

Generated 10/1/2026, 3:12:17 PM

Ownership chain (3)

Asserters network →

Structured records extracted from the assignment-history narrative below. Each entity links to its full ownership-network profile.

  1. 1983-09-15 · Assignment

    Chester L. Lemon and Bill A. KellyElectronic Advertising Network, Inc.

  2. 1987-02-27 · Assignment

    Bankruptcy Estate of Electronic Advertising Network, Inc., by Carey Dalton, TrusteeJames K. Appleton

    fire-sale

  3. 1997-12-05 · Assignment

    James K. AppletonCatalina Marketing Corporation

    acquisition

Assignment history

Inventors, original assignee, and the chain of ownership recorded with the USPTO — including the correspondent attorney who recorded each assignment, since shell-LLC chains often share one repeat-player attorney even when the entity names look unrelated. Surfaces NPE / patent-troll patterns: shell-entity transfers, known asserters in the chain, repeat correspondent fingerprints, pre-litigation assignments, and bankruptcy fire-sales.

✓ Generated

I'll research this patent's assignment chain using the sources available to me. Let me run several searches.

Let me dig deeper into specific assignment records and entity histories.

Inventors

Inventor Role Employer at filing
Chester L. Lemon Named inventor Electronic Advertising Network, Inc. (inferred)
Bill A. Kelly Named inventor Electronic Advertising Network, Inc. (inferred)

Both inventors appear as the assignors on the initial "ASSIGNMENT OF ASSIGNORS' INTEREST" to Electronic Advertising Network, Inc. recorded on the filing date (1983-09-15), which shows both were obligated/employed assignors of the original assignee at filing.

Unusual pattern: I found no evidence that either inventor departed the original assignee within 12 months of filing. What I did find is a stronger distress signal at the corporate level: the original assignee passed into bankruptcy within roughly three years of filing (the 1987-02-27 transfer was executed by a trustee of the "Bankruptcy Estate of Electronic Advertising Network, Inc."). That is a fire-sale trigger, not an inventor-departure trigger. I could not determine either inventor's subsequent whereabouts or any later inventor-side assignments — flag this as unconfirmed.


Original assignee

Electronic Advertising Network, Inc. ("EAN") — named as assignee on the issued patent (US 4,674,041, issued 1987-06-16).

  • Line of business: Point-of-sale electronic coupon advertising/distribution. Contemporaneous EAN materials surfaced in other patents' IDS records, e.g. an "EAN Presentation Agenda" and a 1983 publication titled "Couponing Comes of Age," Electronic Advertising Network, Inc. This is consistent with the patent, which describes a network of in-store coupon-dispensing terminals tied to a host computer.
  • Did it ship a product embodying the claims? The patent specification describes a fully built system (CRT/touch-screen terminal, thermal coupon printer, modem-to-host, interrupt-driven microcomputer), including commercial off-the-shelf parts (Interaction Systems TK120S touch screen; DEC PDP-11/2; Bubbl-Tec bubble memory). This reads as a described commercial implementation rather than a paper design — but I could not independently confirm unit shipments or deployed networks. Treat "shipped" as probable but unverified.
  • Current status: Dissolved / bankrupt. The 1987-02-27 recorded assignment lists the assignor as the "Bankruptcy Estate of Electronic Advertising Network, Inc." acting through Carey Dalton, Trustee. The company did not survive as an operating entity.

Assignment timeline

⚠️ Important source limitation. I could not load the USPTO Patent Assignment Center (https://assignmentcenter.uspto.gov/ or https://assignment.uspto.gov/patent/index.html) or its per-patent record during this session, so I cannot confirm reel/frame numbers or the correspondent of record for any link. The events below are taken from the USPTO-derived legal-events/reassignment block reproduced in the authoritative Google Patents record for US 4,674,041. I am not fabricating reel/frame or correspondent data — where it is missing, I say so.

The Assignment Center does have records for this patent (the Google Patents reassignment entries are drawn from that database), so this is not a "no-records" patent.

1. 1983-09-15 (executed) / recorded 1983-09-15 — Reel/Frame: NOT RETRIEVED
   Conveyance: Assignment (ASSIGNMENT OF ASSIGNORS' INTEREST)
   Assignor:   Chester L. Lemon and Bill A. Kelly (individuals)
   Assignee:   Electronic Advertising Network, Inc.
   Correspondent: NOT RETRIEVED — could not access Assignment Center
   Context: Initial inventor-to-employer assignment, executed on the filing date.

2. 1987-02-27 (executed) / recorded 1987-02-27 — Reel/Frame: NOT RETRIEVED
   Conveyance: Assignment (ASSIGNMENT OF ASSIGNORS' INTEREST)
   Assignor:   Bankruptcy Estate of Electronic Advertising Network, Inc.,
               by Carey Dalton, Trustee
   Assignee:   James K. Appleton (individual)
   Correspondent: NOT RETRIEVED — could not access Assignment Center
   Context: Bankruptcy fire-sale — trustee sale of the patent out of the estate.

3. 1997-12-05 (executed) / recorded 1997-12-05 — Reel/Frame: NOT RETRIEVED
   Conveyance: Assignment (ASSIGNMENT OF ASSIGNORS' INTEREST — see document for details)
   Assignor:   James K. Appleton (individual)
   Assignee:   Catalina Marketing International, Inc.
   Correspondent: NOT RETRIEVED — could not access Assignment Center
   Context: Acquisition — Catalina buys the patent from the individual holder
            roughly a decade after the bankruptcy sale. Catalina then asserted
            the patent (see litigation section).

Note on the data (and a flagged discrepancy): The reassignment block lists the current assignee as both "ELECTRONIC ADVERTISING NETWORK Inc" and "Catalina Marketing International Inc." The "Electronic Advertising Network" entry appears to be a Google Patents artifact reflecting the original assignee field; the operative current owner is Catalina Marketing International, Inc. I am not reconciling that automatically — reporting both as given.

Second flagged discrepancy (carried from the prior litigation section): Unified Patents lists the '041 priority date as 1983-09-14, while the Google Patents record and the filing date are 1983-09-15. I cannot reconcile the one-day difference and am not auto-correcting either.

Gap worth noting: There is a ~10-year dormant period (1987 → 1997) during which the patent sat with an individual (Appleton) rather than an operating company — a classic "patent held off the operating balance sheet" interval, though that is descriptive, not itself an NPE finding.


Timeline diagram

timeline
    title Ownership of US 4674041
    1983 : Filed by Lemon and Kelly
         : Assigned to Electronic Ad Network
    1987 : Bankruptcy trustee sells to Appleton
    1997 : Appleton sells to Catalina Marketing
    1999 : Catalina sues coolsavings.com
    2004 : Patent expires

NPE / troll-pattern signals

1. Shell-entity transfer — NOT PRESENT.
The chain does not route through a licensing-only "IP/Holdings/Ventures/Licensing" LLC. Every link is (a) inventor → operating company, (b) bankruptcy trustee → natural person, or (c) natural person → operating company (Catalina). No anonymous registered-agent-address entity appears in the record I could retrieve. No reel/frame support for shell transfer.

2. Known asserter in the chain — NOT PRESENT.
The terminal assignee, Catalina Marketing International, Inc., is not on the referenced NPE lists (Acacia, Marathon, IV, IPNav, Wi-LAN, Mosaid/Conversant, Vringo, Pendrell, Innovatio, MPHJ, Lumen View, Round Rock, DGC, Spangenberg entities). Catalina is a real point-of-sale marketing operator (founded late 1983 per a 1988 Mainframe Journal profile; 95 employees; 156 manufacturing clients; 16 chains by 1988). Aggressive litigant ≠ NPE. No match to any Unified Patents / RPX high-frequency-plaintiff directory.

3. Repeat correspondent across the chain — UNCLEAR / UNVERIFIABLE.
I could not retrieve the correspondent of record for any link because the Assignment Center was not reachable this session. I therefore cannot test recurrence. This is a genuine gap, not a negative finding — I recommend pulling the three records fresh and checking the correspondent field, since a decade-spanning individual holder (Appleton, 1987–1997) is exactly the fact pattern where a single prosecution/recording attorney sometimes appears twice.

4. Cascading transfers — NOT PRESENT.
Transfers are spaced ~3.4 years (1983→1987) and ~10.8 years (1987→1997) apart — the opposite of the "<24 months through chained LLCs" pattern. No shared correspondent address can be shown (see #3).

5. Pre-litigation transfer — NOT PRESENT.
Catalina acquired the patent 1997-12-05; the first suit naming the '041 patent was filed November 1999 — roughly 24 months, well outside the 6-month window that suggests the chain was arranged to enable assertion. No last-minute assignment to an asserting shell appears.

6. Bankruptcy fire-sale — PRESENT.
Supported by the 1987-02-27 recorded assignment transferring title from the "Bankruptcy Estate of Electronic Advertising Network, Inc., by Carey Dalton, Trustee" to James K. Appleton. This is distress-sale evidence, not troll evidence — but it is a concrete, dated, documented event (reel/frame unretrieved).

7. Privateering — NOT PRESENT.
Privateering is operating-company → NPE so the NPE sues the opco's rivals. Here the chain ends at the operating company (Catalina), which asserted its own patent itself in Catalina Marketing Int'l, Inc. v. coolsavings.com, Inc. No NPE front-man was interposed.

8. Defensive aggregator — NOT PRESENT.
No RPX / AST / LOT / Unified / OIN entity appears anywhere in the chain. The patent was asserted, not neutralized.


Verdict

Operating-company assertion.

The ownership chain terminates at Catalina Marketing International, Inc., a genuine point-of-sale marketing operating company, which acquired the patent from individual holder James K. Appleton on 1997-12-05 and then asserted it in its own name against coolsavings.com (N.D. Ill. No. 00 C 2447; Fed. Cir. 289 F.3d 801 (2002), and 115 F. App'x 84 (Fed. Cir. 2004), where Catalina lost on claim construction). There is one genuine distress signal — the 1987-02-27 bankruptcy-estate sale to Appleton — but that is a corporate-failure fire-sale, not an NPE formation, and no shell LLC, known asserter, cascading transfer, or defensive aggregator appears. Caveat: because the Assignment Center was unreachable this session, I could not verify reel/frame numbers or correspondents (signal #3 is unresolved), so this verdict rests on the Google-Patents-derived legal-events record plus the documented litigation, not on raw assignment filings.

Verify at: https://assignmentcenter.uspto.gov/ (search patent number 4674041) and https://assignment.uspto.gov/patent/index.html — pull the three records and capture the reel/frame + correspondent fields, which are the only material gaps in this reconstruction.

Generated 10/1/2026, 3:12:10 PM

Prior art

Earlier patents, publications, and products that may anticipate or render the claims unpatentable.

✓ Generated

I'll research the prior-art references cited for US 4,674,041. Let me run targeted searches.

Let me try to retrieve the actual "References Cited" (prior-art citations on the face of the patent) from the patent record.

Prior-art analysis for US 4,674,041

Important procedural caveat — please read first

I must be straightforward about a limitation that materially affects this answer.

What I was asked to do: retrieve the "References Cited" (backward prior-art citations) listed on the face of US 4,674,041 and analyze each for §102 anticipation.

What my searches actually returned: almost entirely forward citations — i.e., later patents that cite US 4,674,041 as their prior art (US 5,185,695; US 5,502,636; US 4,825,045; US 5,806,044; US 6,017,038; US 7,337,128; WO 97/30410; EP 1,041,526; EP 845,126; EP 354,260; US 8,096,468, etc.). These post-date the '041 patent (filed 1983‑09‑15, issued 1987‑06‑16) and therefore cannot be §102 prior art against it — the arrow of time runs the wrong way.

I was unable to surface a verified "References Cited" block for US 4,674,041 itself within the search budget (I hit the tool-step limit before reaching the Google Patents / USPTO references table for the patent). I will therefore not fabricate a reference list. Below I (1) confirm the identifier, (2) distinguish clearly between forward and backward citations, (3) report the closest thing to admitted prior art that the record does expose, and (4) give a §102 framework plus the exact sources to pull the definitive cited-reference list.


1. Identifier confirmation (no auto-correction)

  • US 4,674,041 (US4674041A) — "Method and apparatus for controlling the distribution of coupons"; inventors Chester L. Lemon and Bill A. Kelly; Appl. No. 06/533,060; filed 1983‑09‑15; issued 1987‑06‑16. Source: https://patents.google.com/patent/US4674041A
  • This is the Lemon–Kelly patent, later assigned to Catalina Marketing International. Its EP/PCT counterparts are EP 0 156 856 B1 and WO 85/01373 A1 (family 24124303).
  • Because it was filed in 1983, pre‑AIA 35 U.S.C. §§ 101–103 apply. Relevant prior-art windows: §102(a) art before the date of invention (~1983); §102(b) art more than one year before filing, i.e. before 1982‑09‑15; §102(e) US patents/ published applications with earlier effective filing dates.

2. Backward vs. forward citations — a distinction that must not be blurred

Direction Meaning Relation to §102
Backward ("References Cited") Art the examiner/applicant cited against '041 Potentially anticipatory — this is what was requested
Forward ("Cited By") Later patents citing '041 Not prior art to '041; only useful as evidence of the '041's own disclosure/scope

Every reference I positively retrieved belongs to the forward category. Examples (verbatim from search results):

None of these can anticipate '041. I flag this so the record isn't mistaken for a prior-art list.


3. The closest thing to admitted/acknowledged prior art in the record

The '041 specification's "Description of the Prior Art" admits only methods, not apparatus:

  • Newspaper/mass-print coupon distribution with ~3% redemption, whose actual redemption "could not be controlled."
  • Fraudulent redemption at stores and by store employees, and the national clearing-house billing cycle by which "the manufacturer was held responsible for the value of the coupon without having made a sale."

The EP counterpart (EP 0 156 856 B1) goes further and expressly discusses two categories of prior art that were considered, using the classic "problem-and-solution" framing (source: https://patentimages.storage.googleapis.com/.../EP0156856B1.pdf). It describes:

  1. A coupon card bearing a magnetic strip "having magnetic data stored thereon representing the last time the coupon card was [used]" — i.e., a card-based coupon control scheme.
  2. A host computer connected to distributed terminal sub-systems, each with a local database that is "dynamically maintained so that the most frequently used pages are retained in local storage." The EP text states this "teaches information of general relevance to systems employing a host central processing unit and remote terminals but does not suggest a solution to the particular problem of distributing coupons."

That second description — a host CPU plus remote terminals with locally-cached pages — is the single most on-point admitted prior-art system, because it maps onto the '041 architecture (host H + terminals T‑1…T‑N of FIGS. 2 and 4). However, I could not extract its patent/publication number from the retrieved snippet, and I will not guess one. It is the reference most worth locating for a true §102 analysis, because it is the only pre-1983 system-type art the applicant expressly acknowledged.


4. §102 framework applied to the '041 claims (for when the cited list is obtained)

Recall the two independents (from the earlier summary): claim 1 (kiosk system with activation / display / selection / print / control means that hides coupons once "prescribed coupon limits have been exceeded") and claim 25 (host-CPU + free-standing terminals, magnetic-strip activation, per-coupon information pushed from host, transaction data reported back).

A reference can anticipate under §102 only if a single reference discloses every element as arranged in the claim. The elements that make '041 hard to anticipate are the combination of:

  • remote, in-store, free-standing terminal(s) sited at predesignated consumer-store locations (limitation in claim 25's body per Catalina v. coolsavings.com, 289 F.3d 801 (Fed. Cir. 2002));
  • on-screen menu of selectable coupons with touch selection;
  • on-site printing/dispensing of the selected coupon; and
  • control means that suppresses display/issuance once prescribed per-coupon limits are reached.

Likely §102 mapping if a given reference had been cited:

  • A pure card-based coupon-control reference (item 1 above) might anticipate only the activation/account-identity aspect (§ claims 2–5) — not claims 1 or 25.
  • A host/terminal point-of-sale distribution reference (item 2) might anticipate the network architecture of claim 25 but, per the EP text itself, does not disclose the coupon-issuance-limiting control means — so it would at most support a §103 obviousness rejection, not §102 anticipation.
  • Newspaper/clearing-house prior art (admitted) plainly cannot anticipate anything — no terminals, no display, no print-and-dispense.

Net: on the record available, I see no basis to assert that any single reference anticipated claims 1 or 25; the likely citable art is §103-combination art, not §102 art. This is consistent with the patent issuing over the examiner's search and with its surviving an early re-examination of scope in litigation (it was ultimately held not infringed, not invalid, by coolsavings).


5. What I could not verify (explicit uncertainties)

  1. The actual front-page "References Cited" list for US 4,674,041 is missing from my retrieved evidence. I did not obtain it and have not invented one.
  2. I could not confirm whether the '041 patent contains zero U.S. patent references or a small set — some 1983-era patents list few or none. Do not treat the absence in my results as proof of absence on the patent.
  3. The EP 0 156 856 B1 prior-art discussion (magnetic coupon card; host + distributed terminals with local page cache) is paraphrased from a snippet; I could not extract the underlying reference numbers.

6. Recommended definitive sources

  • USPTO Patent Public Search (https://ppubs.uspto.gov) — open US 4,674,041 and read the printed "References Cited → U.S. Patent Documents / Foreign Patent Documents / Other Publications".
  • USPTO PatentCenter / IFW for Appl. 06/533,060 — the examiner's PTO‑892 Notice of References Cited and any PTO‑1449 IDS give the backward citations authoritatively.
  • Espacenet for EP 0 156 856 B1 — the "Cited documents" tab and the EPO search report give the European backward citations, which frequently include pre-1983 art the US examiner also relied on.
  • Google Patents (https://patents.google.com/patent/US4674041A) — its "Patent Citations (n)" table is the backward list.

Bottom line

The identifier US 4,674,041 is confirmed (Lemon & Kelly, filed 1983‑09‑15, issued 1987‑06‑16). My searches surfaced only forward citations, which cannot anticipate it. The only genuine backward prior art evidenced on the record is (a) the admitted newspaper/clearing-house method and (b) the EP counterpart's acknowledged pre-1983 art (a magnetic-strip coupon card and a host-CPU-plus-remote-terminal system with locally cached pages). I could not retrieve the patent's own verified "References Cited" list within the search budget, so I am deliberately not furnishing per-reference §102 claim mappings — doing so without the actual cited numbers would mean fabricating them. To complete the requested §102 analysis rigorously, the PTO‑892/IFW for Appl. 06/533,060 (or the Google Patents "Patent Citations" table) must be pulled directly.

Generated 10/1/2026, 3:12:16 PM

Obviousness

Combinations of prior art that suggest the claimed invention would have been obvious under 35 U.S.C. § 103.

✓ Generated

I'll research the actual prior-art references cited on the '041 patent's face and the analogous-art field, since the provided page text only shows the "prior art keywords/date" fields and not the reference list.

Obviousness analysis — US 4,674,041 ("Method and apparatus for controlling the distribution of coupons") under 35 U.S.C. § 103

0. Sources, scope, and a gap I must flag up front

What the "Prior Art" section of the fetched page actually contains. The authoritative page text supplied for US4674041A gives only these prior-art fields:

  • Prior art keywords: coupon, coupons, terminal, display, microcomputer
  • Prior art date: 1983-09-15

It does not reproduce the patent's face-page "References Cited" list, and I was unable to retrieve that list from any source reached in my searches (the searches returned the patent's Definitions/claim material, family members, and third-party search reports that cite the '041, but never the '041's own U.S. reference list). This is a genuine evidentiary gap, and I flag it rather than filling it in with invented citations. Where I use a reference below I say exactly which document surfaced it and in what category.

Contradictions / discrepancies to flag (per the instruction):

  • The task header states the current date as April 26, 2026, while the governing system date is October 1, 2026 and the page was fetched 2026-10-01T15:04:03.546Z. I have not reconciled these.
  • This is consistent with the earlier generated section's finding of no 2026 CAFC activity; nothing in this task's research contradicts that.
  • The earlier section's noted claim-numbering mismatch (US grant: 31 claims, independents 1 & 25; PCT/WO 85/01373 numbering 26–32, with claim 26 independent) is carried forward — I do not auto-correct either numbering and analyze the granted US claims (1 and 25).

Critical date. Application 06/533,060 was filed 1983-09-15 with no earlier priority. Because the application predates the AIA, § 103(a) pre-AIA governs. Art must therefore be a § 102(a)/(b) publication or public use before 1983-09-15, or a § 102(e) U.S. application/patent filed before that date.


1. Person having ordinary skill in the art (POSITA)

As of September 1983, a POSITA would be a systems engineer or programmer with (a) 2–4 years' experience in retail point-of-sale/terminal data systems, (b) familiarity with CRT/kiosk user interfaces, magnetic-stripe card readers, and serial (RS-232/UART) device integration, and (c) working knowledge of coupon clearing-house accounting and grocery checkout (UPC scanning had been deployed in U.S. groceries since the mid-1970s). The patent's own hardware recitations — a "Digital Equipment Corporation 11T23 System" host, a "Digital Equipment P.D.P. 11/2" terminal CPU, a QSB-11 Bubbl-Tec bubble memory, and a Model TK120S (Interaction Systems, Inc.) touch screen — were, on their face, off-the-shelf 1983 components, which is itself evidence that the invention lay in the arrangement, not in any new hardware.


2. The claims as construed — the target of the § 103 analysis

Obviousness must be measured against the claims as construed. Here the constructions are unusually important because the Federal Circuit's 2004 disposition (Appeal Nos. 03-1548, -1627, Catalina Mktg. Int'l, Inc. v. coolsavings.com, Inc., 115 F. App'x 84) upheld the district court's narrow constructions of every disputed claim-1 term:

Term Construction upheld
"activation means" means-plus-function; corresponding structure = a magnetic card reader ('041 col. 5, ll. 38-58; col. 7, ll. 42-49)
"selection means" means-plus-function; corresponding structure = a touch screen ('041 col. 5, ll. 8-21)
"prescribed coupon limits" "predetermined limits on the number of coupons collectively and per store" (prosecution-history estoppel from the "criteria"→"limits" amendment)
"operatively connected" "joined or linked together to produce the designed effect within the terminal"
Claim 1 preamble not limiting
Claim 25 "located at predesignated sites such as consumer stores" is limiting (appears in the body)

Consequence for § 103: the § 103 case must show the specific structures (magnetic card reader; touch screen), within a single stand-alone terminal, plus limit logic that enforces both a per-store cap and a system-wide cap. A generic "computer displays offers, user picks one" teaching will not suffice for these claims.


3. Prior-art reference landscape

3a. References documented in retrieved search reports (same field / same family)

Reference (literal ID) Date evidence Status vs. 1983-09-15 What the retrieved record shows
GB-A-1 525 928 (RUDD) GB numbering ⇒ 1970s publication; exact date not retrieved Presumptively pre-critical-date (verify) Cited category "X," "Whole document," against claims 1, 2, 6-15, 19-21 of EP 0173835 A3's search report — i.e., the EPO treated it as individually material to a coupon-dispensing apparatus claim set
US-A-3 292 759 (MEIXNER et al.) 1966-era Pre-critical-date Cited category "A," relevant to claims 1, 2, 8-12, 14, 15 of EP 0173835 A3
GB-A-2 117 709 (DLISON et al.) Number indicates ~1983; exact date not retrieved Date must be checked — if published after 1983-09-15 it is not § 102(a)/(b) art Cited category "A," relevant to claims 1 and 12 (the display/page-format claim pair) of EP 0173835 A3
US-A-4 554 446 (MURPHY et al.) Issued 1985-11-19 Post-dates the '041 filing. Usable against the '041 only under § 102(e) if its underlying U.S. application was filed before 1983-09-15 — filing date not retrieved Cited category "E" in EP 0173835 A3 and category "X" in EP 0354260 A1
WO-A-85/01373 (ELECTRONIC ADVERTISING NETWORK) Published 1985-03-28 Not art — the '041's own PCT sibling Cited "P,X" in EP 0173835 A3 (a "whole-document" X against claims 1-21); also cited "X" against claims 1-44 in the 2006 AU search report for WO 2006/042367

Note on the two post-dating Catalina-family patents that surfaced repeatedly — US 4,910,672 and US 4,723,212 (Catalina Marketing Corp., priority 1984-07-18) — these are not prior art to the '041 and cannot be used in a § 103 combination against it. I mention them only as evidence of where the field was moving within a year of the '041's filing.

3b. General knowledge a POSITA would bring (properly usable, and self-authenticating from the specification itself)

The patent expressly calls its own building blocks "conventional": "conventional cathode ray tube," "a conventional magnetic card reading apparatus," "a conventional card reader interface," "a conventional universal asynchronous receiver/transmitter (UART)," and refers to "Any of the common bank, gasoline or retail credit cards" as activators. Routine engineering knowledge in 1983 therefore includes: magnetic-stripe credit-card reading (ABA tracks), touch-screen switches (the patent's own TK120S), CRT menu kiosks, modem telemetry with block/LRC error checking, UPC checkout scanning, and printer time-out/low-paper error handling.


4. Combination theories rendering the claims obvious

Combination A — Claim 1 (kiosk that self-limits coupon display)

Rudd (GB 1 525 928) supplies coupon-dispensing apparatus (the EPO rated it a whole-document X against coupon-dispensing claims) + Meixner (US 3 292 759) supplies controlled, machine-recorded dispensing of printed/encoded media + POSITA general knowledge of CRT menu kiosks and touch screens.

  • "terminal," "display means for displaying a plurality of coupons available for selection," "selection means," "print means" → Rudd/likely-Meixner dispensing hardware + conventional CRT + conventional touch screen.
  • "control means … for controlling said display means to prevent the display of coupons having exceeded prescribed coupon limits" → Meixner's controlled-dispensing accounting, re-expressed as a display-masking step.

Why claim 1 as a whole would have been obvious: all elements are old; the only asserted novelty is where the limiting decision is enforced (at the display, rather than at the dispenser). Substituting "mask the menu item" for "inhibit the dispense" is a predictable variation of a known function achieving the same result (KSR, 550 U.S. at 417, 421), and the motivation (prevent a shopper from selecting an unavailable coupon, reduce wasted print stock and shopper frustration) flows directly from the '041's own stated problems.

Combination B — Claim 1 + dependent 2–5 (card activation; per-customer and per-store limits; touch selection)

Add to Combination A the 1983 ubiquity of magnetic-stripe credit cards (the specification concedes "any of the common bank, gasoline or retail credit cards" activate the terminal) and the patent's own "conventional" touch screen. Motivation: identify the customer to enforce a per-customer cap (dep. 3, 4, 9) and to prevent repeat activation — a well-known fraud-control objective that the '041's Background itself frames as the problem to be solved. Note the timing caveat on Murphy '446 (supra) — if § 102(e)-qualified, it independently teaches POS coupon dispensing with a per-transaction maximum number of coupons.

Combination C — Claims 6–11 (transaction records; PAN comparison/masking; host transmission; overflow counting)

Routine data-processing: storing a transaction record keyed by the customer account number, comparing a new account number against a stored file, and transmitting accumulated records to a central processor on a schedule or on memory exhaustion are "predictable use of prior art elements according to their established functions" (KSR). The patent itself characterizes the 4,096-entry PAN file, the 8-increment sector scheme, and the overflow counter as mundane memory-management choices.

Combination D — Claim 25 (host + remote free-standing terminals, bidirectional, credit-card activation, host pushes coupon limits)

This is the strongest § 103 target, because it recites a textbook distributed-POS architecture: host CPU ⇄ modem ⇄ stand-alone terminals, store-and-forward telemetry, and host-initiated updates. The '041 concedes the host is "any programmable central processing unit" and that programming it is "a matter of ordinary skill." Motivation to network the Rudd/Meixner dispenser is supplied by the '041's own commercial narrative: the manufacturer must (i) set collective and per-store limits, (ii) receive weekly distribution reports, and (iii) reconcile dispensed vs. redeemed quantities at step 18 of FIG. 1. Central limit-setting and roll-up reporting are the reason the network exists; per-store hardware alone cannot deliver them.

Combination E — Claims 20–23 (coupon encoded with store ID, Julian date/time, expiration, UPC)

Encoding an expiration date, a store identifier, and a machine-readable UPC on the coupon itself was a direct design choice from (a) the existing coupon-redemption/clearing-house accounting pipeline the patent describes as prior art, and (b) the deployed grocery UPC scanner. Motivation: allow the checkout register to validate that the identical product was purchased — the exact anti-fraud objective recited in the Background. Same-day expiry is a mere magnitude/parameter choice of a known expiration-date field, and the patent concedes the rationale ("to encourage immediate use").

Combination F — Claim 24 (printer failure ⇒ standby)

Printer time-out and low-paper error handling with graceful degradation is conventional peripheral-fault management (the patent labels the printer "conventional" and its error codes "XON"/"XOF"/"LOP"). Motivation: avoid dispensing a coupon that was never printed — an evident reliability requirement.


5. The overarching motivation to combine (KSR / TSM rationale)

A petition-style rationale can be built without speculation because the '041's own Background supplies the design incentives:

  1. Uncontrolled liability. "Actual redemption could not be controlled. It was possible that a particular manufacturer's coupon could have an unexpectedly high redemption and cost much more than anticipated." → motivates per-store and collective caps and host roll-up reporting.
  2. Systemic fraud. Over-redemption at peak hours, store-employee cash-outs, and clearing-house billing for coupons never tied to a sale. → motivates card activation, per-customer limits, encoded store ID/date/UPC, and dispensed-vs-redeemed reconciliation.
  3. Poor redemption economics. The ~3% newspaper redemption rate. → motivates point-of-sale dispensing and same-day expiration.
  4. Field was crowded and the solution set finite. The page's own prior-art keywords (coupon, coupons, terminal, display, microcomputer) show the examiner treated these five concepts as the pertinent art. Under KSR, where a field presents "a finite number of identified, predictable solutions," a POSITA has good reason to pursue the known options with a reasonable expectation of success.
  5. Off-the-shelf components. Every hardware element is admitted to be conventional, so the combination raises no unproven technical risk (no "teaching away," no unexpected result).

This satisfies the TSM line as well, because the motivation is found in the references and in the knowledge generally available to one of ordinary skill — the standard the examiner recited in the USPTO petition document retrieved ("certainly, obviousness can only be established by combining or modifying the teachings of the prior art to produce the claimed invention where there is some teaching, suggestion, or motivation to do so found either in the references themselves or in the knowledge generally available to one of ordinary skill" — citing In re Fine, 837 F.2d 1071).


6. Where the § 103 case is weak — and why that matters

An honest analysis must concede the following, several of which are why Catalina's suit failed on infringement rather than invalidity:

  1. The means-plus-function shackles. Claim 1 requires a magnetic card reader as the activation structure and a touch screen as the selection structure, and "operatively connected" means connected within the terminal. A prior-art combination teaching, e.g., a keyboard-activated or a networked server-side "selection" will not meet the construed claim. Any § 103 combination must therefore be built on a card-activated, touch-screen, stand-alone terminal.
  2. "Collectively and per store" limits are narrower than "some cap." The prior-art combination must show a limit architecture resolving both an individual-store maximum and a system-wide maximum into a display-suppression decision.
  3. Secondary considerations were never litigated. The '041 was asserted but the case ended in a stipulated non-infringement dismissal; there is no judicial validity holding. Whether commercial success, long-felt need, or industry skepticism would rebut a prima facie case is an open question on the record I retrieved.
  4. Reference-date risk. The two most substantive-looking candidates — US 4,554,446 (Murphy) and GB 2 117 709 (Dlison) — are the ones whose dates I could not verify, and Murphy's 1985-11-19 issue date makes it unusable absent a pre-1983-09-15 § 102(e) filing. If neither qualifies, the remaining documented art (Rudd, Meixner) must carry the whole case, which is a materially thinner record.

7. Bottom line

  • Claims 1 and 25, and most dependent claims, are, on the record reached here, vulnerable under § 103 as combinations of (i) known coupon/voucher dispensing apparatus (GB 1 525 928 (Rudd); US 3 292 759 (Meixner)), (ii) admitted-conventional CRT/touch-screen/kiosk hardware, (iii) 1983-ubiquitous magnetic-stripe card activation, and (iv) routine host–terminal data networking — with the motivation supplied by the patent's own articulated problems (uncontrolled redemption liability, coupon fraud, the ~3% redemption rate).
  • The strongest non-obviousness positions are the specific structural limitations enforced by the Federal Circuit's constructions: the magnetic-card-reader activation means, the touch-screen selection means, "operatively connected within the terminal," and coupled per-store + collective limit logic with display masking. A § 103 combination must be built to those, not around them.
  • I could not retrieve the '041 patent's own face-page "References Cited" list, which is the single most important thing a proper § 103 analysis should use. The references above are drawn from third-party search reports that cite the '041 and from the patent's own admissions; they are not a verified substitute for the '041's Rule 56 citations. Any invalidity contention should begin by pulling the printed front page and the prosecution file history (including the "prescribed coupon criteria"→"limits" amendment relied on in the 2003–2004 litigation).

Sources relied on (all reached in this task's searches)

Caveat: reference dates for GB-A-1 525 928, GB-A-2 117 709, and US-A-4 554 446 were not established from the retrieved material and must be confirmed against the printed documents before any of the above is used for a real validity determination.

Generated 10/1/2026, 3:12:58 PM

Extensions

Patent term adjustments, term extensions, continuations, divisionals, family members, and expiration dates.

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Derivative works

Defensive disclosure: derivative variations of each claim designed to render future incremental improvements obvious or non-novel.

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This patent in court (2)

2 tracked lawsuits name US 4674041.