CAFC Upholds PTAB’s Finding that Samsung Failed to Prove Magnetic Stripe Emulator Claims Obvious
The U.S. Court of Appeals for the Federal Circuit (CAFC) on Tuesday affirmed a Patent Trial and Appeal Board (PTAB) ruling that Samsung Electronics had failed to prove certain claims of Dynamics, Inc.’s patent for a magnetic stripe emulator that communicates with credit card readers unpatentable as obvious. Samsung petitioned the PTAB for inter partes review (IPR) of claims 1 and 5-8 of U.S. Patent No. 8,827,153. The patent is directed to “magnetic stripe emulators” for “generat[ing] electromagnetic fields that directly communicate data to a read-head of a magnetic stripe reader,” such as the magnetic stripes on credit cards. Samsung argued that the claims would have been obvious over U.S. Patent No. 4,868,376 (Lessin) and U.S. Patent No. 7,690,580 (Shoemaker), or alternatively, would have been obvious over U.S. Patent No. 6,206,293 (Gutman) in view of Shoemaker.