AdvanceMe Inc v. RapidPay LLC

Filing 86

NOTICE by Reach Financial, LLC, AdvanceMe Inc, Merchant Money Tree, Inc., AdvanceMe Inc, First Funds, LLC, AdvanceMe Inc, First Funds, LLC, AdvanceMe Inc, Merchant Money Tree, Inc., AdvanceMe Inc, Reach Financial, LLC, AdvanceMe Inc, AdvanceMe Inc, First Funds, LLC, Merchant Money Tree, Inc., Reach Financial, LLC Joint Claim Construction andPrehearing Statement Pursuant to Local Patent Rule 4-3 (Lemieux, Ronald)

AdvanceMe Inc v. RapidPay LLC

Doc. 86

Case 6:05-cv-00424-LED

Document 86

Filed 08/02/2006

Page 1 of 22

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF TEXAS TYLER DIVISION § § § § § § § § § § § § § § § § § § § § §

ADVANCEME, INC., Plaintiff, v. RAPIDPAY LLC, FIRST FUNDS LLC, MERCHANT MONEY TREE, INC., REACH FINANCIAL LLC, and FAST TRANSACT, INC. d/b/a SIMPLE CASH, Defendants.

CIVIL CASE NO. 6:05-cv-424 (LED)

ADVANCEME, INC., Plaintiff, v. AMERIMERCHANT LLC, Defendants.

CIVIL CASE NO. 6:06-cv-82 (LED) JURY TRIAL DEMANDED

JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3

Pursuant to Patent Rule (P.R.) 4-3 of the Rules of Practice for Patent Cases before the Eastern District of Texas and this Court's Docket Control Orders for the above captioned actions, Plaintiff AdvanceMe, Inc. ("AdvanceMe") and Defendants Merchant Money Tree, Inc. ("Merchant Money Tree"), Reach Financial LLC ("Reach Financial"), First Funds LLC ("First Funds") and AmeriMerchant LLC ("AmeriMerchant") hereby submit the following Joint Claim Construction and Prehearing Statement for U.S. Patent No. 6,941,281 ("`281 Patent").

Dockets.Justia.com

Case 6:05-cv-00424-LED

Document 86

Filed 08/02/2006

Page 2 of 22

I.

Anticipated Length of Time for the Claim Construction Hearing Pursuant P.R. 4-3(c) Plaintiff AdvanceMe and Defendants Merchant Money Tree, Reach Financial, First

Funds and AmeriMerchant anticipate that the hearing can be completed in approximately four hours.

II.

Identification of Witnesses Pursuant P.R. 4-3(d) Plaintiff AdvanceMe and Defendants Merchant Money Tree, Reach Financial, First

Funds and AmeriMerchant do not intend to call any witnesses, including experts. The parties reserve the right to call expert witnesses.

III.

Agreed Constructions Pursuant P.R. 4-3(a) Attachment 1 sets forth the constructions of claim terms, phrases and clauses that have

been agreed upon by Plaintiff AdvanceMe and Defendants Merchant Money Tree, Reach Financial, First Funds and AmeriMerchant.

IV.

Disputed Terms Pursuant P.R. 4-3(b) Attachment 2 sets forth the proposed constructions of each claim term, phrase and clause

in dispute by Plaintiff AdvanceMe and Defendants Merchant Money Tree, Reach Financial, First Funds and AmeriMerchant. Attachment 3 identifies the claim elements that Plaintiff AdvanceMe and Defendants Merchant Money Tree, Reach Financial, First Funds and AmeriMerchant agree should be construed under 35 U.S.C. §112 ¶6. Plaintiff AdvanceMe and Defendants Merchant Money Tree, Reach Financial, First Funds and AmeriMerchant agree on the recited functions for each means plus function element except for the instances of the disputed terms set forth in Attachment 2 that are contained in the recited functions. However, Plaintiff AdvanceMe and Defendants Merchant Money Tree, Reach Financial, First Funds and AmeriMerchant presently
ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

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JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3

Case 6:05-cv-00424-LED

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dispute the corresponding structures disclosed in the `281 for carrying out the identified functions.

Respectfully Submitted, Date: August 2, 2006 By: /s/ PAUL, HASTINGS, JANOFSKY & WALKER LLP Ronald S. Lemieux (Admitted Pro Hac Vice) California Bar No. 120822 Vidya R. Bhakar (Admitted Pro Hac Vice) California Bar No. 220210 Robert C. Matz (Admitted Pro Hac Vice) California Bar No. 217822 Five Palo Alto Square, Sixth Floor Palo Alto, CA 94306-2155 Telephone: [phone] Telecopier: [phone] Email: [e-mail] IRELAND, CARROLL & KELLEY, P.C. Otis W. Carroll, Attorney-in-Charge Texas State Bar No. 03895700 Deborah Race Texas State Bar No. 16448700 6101 South Broadway, Suite 500 Tyler, TX 75703 Telephone: [phone] Facsimile: 903-581-1071 Email: [e-mail] Date: August 2, 2006 By: /s/ (by permission Vid Bhakar) Willem G. Schuurman Texas State Bar No. 17855200 Joseph D. Gray Texas State Bar No. 24045970 VINSON & ELKINS L.L.P. 2801 Via Fortuna, Suite 100 Austin, Texas 78746 Phone: [phone] ­ Fax: [phone] - and ­ Hilary Preston Admitted Pro Hac Vice VINSON & ELKINS L.L.P. 666 Fifth Avenue 26th Floor New York, New York 10103 Phone: [phone] Fax: [phone] - and ­ Douglas McSwane Texas State Bar No. 13861300 POTTER MINTON, P.C. 110 North College 500 Plaza Tower Tyler, Texas 75702 Phone: [phone] Fax: [phone] ATTORNEYS FOR DEFENDANTS MERCHANT MONEY TREE, INC., REACH FINANCIAL LLC, FIRST FUNDS LLC AND AMERIMERCHANT LLC 3
JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3

ATTORNEYS FOR PLAINTIFF ADVANCEME, INC.

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-cv-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT CIVIL CASE NO. 6:06-cv-82 (LED) JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 1 P.R. 4-3(a) - Agreed Constructions Claim Term, Phrase or Clause electronically forwarding (Recited in Claims 1 and 10) computerized merchant processor (Recited in Claims 1 and 10) acquiring the information related to the payment (Recited in Claim 1) authorizing [the payment] (Recited 1 and 10) Obtaining permission for using the customer identifier for the transaction between the customer and the merchant Receiving the information related to the payment A computer-equipped entity or combination of entities that acquires or processes merchant transactions. Agreed Construction Sending through the use of electronics, including, for example, a telephone system or other electronic network

Claim Term, Phrase or Clause computerized payment receiver (Recited 1, 8 and 9) applying that portion to the outstanding obligation made by the merchant to reduce such obligation (Recited in Claim 1) credit card (Recited in Claims 2 and 11) charge card (Recited in Claims 5 and 14) electronically accepting the customer identifier (Recited in Claims 7 and 16) a percentage of the obligation (Recited in Claim 19)

Agreed Construction Account or entity capable of receiving payments or credits electronically

Using the portion that was received from the merchant processor to reduce the obligation owed by the merchant

A card that entitles a person or entity to make purchases on credit

A card that requires full payment every billing cycle

Accepting the customer identifier using an electronic device

Any percentage of the obligation

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

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JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 1

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-cv-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT CIVIL CASE NO. 6:06-cv-82 (LED) JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 2 P.R. 4-3(b) - Disputed Terms Claim Term, Phrase or Clause AdvanceMe's Proposed Construction and Evidence Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Construction and Evidence Proposed Construction: Any unique identifying card account number of a type that was available in July 1997 Intrinsic Evidence: See, e.g., Abstract; 1:17-19; 1:29-33; 1:54-61; 2:2-7; 2:29-37; 2:44-48; 3:10-17; 3:27-30; 6:2529; 6:29-31

customer identifier (Recited in Claims 1, 2, 3, 4, 5, 6, 7, 10, 11, 12, 13, 14, 15 and 16)

Proposed Construction: Any information submitted to a merchant or its designee for payment of goods or services Intrinsic Evidence: See, e.g., Abstract; 1:54-61; 2:4-6; 2:34-37; 2:4647; 3:10-17; `281 Patent File History, 1/24/02 Office Action, pp. 3-6, 8/22/02 Office Action, pp. 3-6, 1/12/04 Office Action, pp. 3-6; U.S. Patent No. 4,750,119 (Cohen patent relied upon by Examiner); `544 Patent File History, 11/10/98 Office Action, pp. 3-5, 2/16/99 Office Action, pp. 2-4; 6/7/99 Response After Final Under Rule 1.116, pp. 2-5; 8/6/99 Office Action, pp. 2-5; Appellant's Brief on Appeal, pp. 2-4; 8/10/00 Examiner's Answer, pp. 3-4; 10/30/02 Decision

Claim Term, Phrase or Clause

AdvanceMe's Proposed Construction and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Construction and Evidence

on Appeal, pp. 1, 8. Extrinsic Evidence: See, e.g., American Heritage College Dictionary, Third Edition 1997 at pp. 341, 674; The New Webster's Encyclopedic Dictionary of the English Language, 1997 Edition at pp. 169, 339 payment card No construction is required because this term is not explicitly recited in any claim Indefinite Intrinsic Evidence: See, e.g., Abstract; 1:17-19; 1:28-33; 1:54-61; 2:31-34; 3:10-17 Proposed Construction: The part of a transaction when an amount is transferred or credited by the card issuer Intrinsic Evidence: See, e.g., FIG. 1B; 1:35-42; 2:65-67; 3:51-58; 4:16-56; 7:6-11; 7:24-29; 8:15-18

settling the payment (Recited in Claims 1 and 10)

Proposed Construction: The part of a transaction when an amount is transferred or credited to the merchant processor Intrinsic Evidence: See, e.g., FIG. 1B; 2:65-67; 4:15-56; '281 Patent File History, 07/16/99 Preliminary Amendment, p. 4 Extrinsic Evidence: See, e.g., American Heritage College Dictionary, Third Edition 1997 at p. 1248; The New Webster's Encyclopedic Dictionary of the English Language, 1997 Edition at pp. 604, 605

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

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JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 2

Claim Term, Phrase or Clause

AdvanceMe's Proposed Construction and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Construction and Evidence Proposed Construction: Ordinary meaning

obligation (Recited in Claims 1, 10 and 19)

Proposed Construction: An amount owed by a merchant that is independent of any costs or fees arising out of the use of customer identifiers as payment. Intrinsic Evidence: See, e.g., Abstract; FIGS. 2, 3A, 3B; 1:62 - 2:2; 2:11-16; 5:16-37; '281 Patent File History, 7/14/04 Request for Extension of Time and Amendment, pp. 5-6, 3/17/05 Notice of Allowability, pp. 3-4; U.S. Patent No. 4,750,119 (Cohen patent relied upon by Examiner); `544 Patent File History, 11/10/98 Office Action, pp. 3-5, 1/22/99 Amendment and Response, pp. 2-4; 2/16/99 Office Action, pp. 2-6, 6/7/99 Response After Final Under Rule 1.116, pp. 2-5, 7/16/99 Preliminary Amendment, pp. 2-5; 8/6/99 Office Action, pp. 2-6, Appellant's Brief on Appeal, pp. 2-5, 7-12, and 15-18, 8/10/00 Examiner's Answer, pp. 3-8, 10/30/02 Decision on Appeal, pp. 4-7.

Intrinsic Evidence: See, e.g., 1:29-35; 1:62-67; 2:1-3; 2:11-19; 2:2534; 2:41-53; 5:4-17; 5:21-29; 7:2-4; `281 Patent File History, 7/14/04 Request for Extension of Time and Amendment, pp. 5-6; `544 Patent File History, 6/9/99 Response, pp. 2-4

debit card (Recited in Claims 3 and 12)

Proposed Construction: A card linked to a deposit account

Proposed Construction: A card linked to a deposit account that can be used to make purchases.

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

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JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 2

Claim Term, Phrase or Clause

AdvanceMe's Proposed Construction and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Construction and Evidence Intrinsic Evidence: See, e.g., 1:17-22; 1:54-61; 3:10-20; 3:46-49; 6:31-34

Intrinsic Evidence: See, e.g., 1:17-22; 1:54-61; 3:10-20; 3:46-49; 6:31-34 Extrinsic Evidence: See, e.g., http://www.investordictionary.com/ definition/debit+card.aspx; and http://en.wikipedia.org/wiki/Debit_card smart card (Claims 4 and 13) Proposed Construction: A card that contains an integrated circuit such as a microprocessor or a memory Intrinsic Evidence: See, e.g., 1:17-22; 1:54-61; 3:10-20 Extrinsic Evidence: See, e.g., Microsoft Press Computer Dictionary, Third Edition 1997 at p. 439

Proposed Construction: A card containing an integrated circuit, such as a microprocessor or a memory, that can be used to make purchases Intrinsic Evidence: See, e.g., 1:17-22; 1:54-61; 3:10-20

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

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JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 2

Claim Term, Phrase or Clause

AdvanceMe's Proposed Construction and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Construction and Evidence Proposed Construction: Accumulating the payments until a predetermined monetary amount is reached Intrinsic Evidence: See, e.g., 2:16-20; 2:23-25; 5:40-45

accumulating the payments until a predetermined amount is reached (Recited in Claims 8 and 17)

Proposed Construction: Holding a payment or payments until a predetermined monetary amount is reached Intrinsic Evidence: See, e.g., 2:16-20; 5:38-45 Extrinsic Evidence: See, e.g., American Heritage College Dictionary, Third Edition 1997 at pp. 9, 1077; The New Webster's Encyclopedic Dictionary of the English Language, 1997 Edition at pp. 6, 524.

periodically forwarding (Recited in Claims 9 and 18)

Proposed Construction: Forwarding at intervals defined by time or predetermined amount Intrinsic Evidence: See, e.g., 2:20-30; 5:45-48 Extrinsic Evidence: See, e.g., American Heritage College Dictionary, Third Edition 1997 at p.1016; The New Webster's Encyclopedic Dictionary of the English Language, 1997 Edition at p. 496.

Proposed Construction: Forwarding at an interval other than upon every payment Intrinsic Evidence: See, e.g., 1:23-25; 2:16-25; 5:12-14; 5:45-48

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

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JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 2

Claim Term, Phrase or Clause

AdvanceMe's Proposed Construction and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Construction and Evidence Proposed Construction: Any entity other than the customer or the merchant Intrinsic Evidence: See, e.g., 1:23-25; 1:35-42; 1:62-63; 2:2-7; 2:1134; 2:41-43; 2:48-53; 5:9-29; 5:38-48; 5:53-58; 6:3-7; 6:12-14; 6:64-67; 7:1-6; `281 Patent File History, 7/14/04 Request for Extension of Time and Amendment, pp. 5-6

third party (Recited in Claims 10, 17, 18 and 19)

Proposed Construction: Payment receiver Intrinsic Evidence: See, e.g., 1:35 ­ 42; 2:11-20; 5:14-17; '281 Patent File History, 7/14/04 Request for Extension of Time and Amendment, pp. 5-6; '281 Patent File History, 3/17/05 Notice of Allowability, pp. 3-4 Extrinsic Evidence: See, e.g., American Heritage College Dictionary, Third Edition 1997 at p. 1409

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

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JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 2

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-cv-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT CIVIL CASE NO. 6:06-cv-82 (LED) JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 3 P.R. 4-3(b) Disputed Terms - Claim Terms Which AdvanceMe, Merchant Money Tree, Reach Financial and AmeriMerchant Agree Should Be Construed Under 35 U.S.C. § 112 ¶6 Claim Terms That Should Be Construed Under 35 U.S.C. § 112, ¶6 means for accepting a customer identifier from the customer (Recited in Claim 10) AdvanceMe's Proposed Structure and Evidence Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Structure and Evidence

Agreed Function: "accepting a customer identifier from the customer" The parties dispute the construction of the following term(s) contained in the agreed function (See Attachment 2): "customer identifier" AdvanceMe's Proposed Structure: consumer data input device 316 or telephone or computer or World Wide Web Evidence: See, e.g., FIGS. 1A, 3B; 2:4-11; 2:34-43; 3:20-31; 6:18-59. Defendants' Proposed Structure: magnetic card reader or keyboard or telephone Evidence: See, e.g., 2:7-11; 2:38-41; 6:23-29

Claim Terms That Should Be Construed Under 35 U.S.C. § 112, ¶6 means for electronically forwarding information related to the payment to a computerized merchant processor (Recited in Claim 10)

AdvanceMe's Proposed Structure and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Structure and Evidence

Agreed Function: "electronically forwarding information related to the payment to a computerized merchant processor" The parties agree on the construction of the following term(s) contained in the agreed function (See Attachment 1): "electronically forwarding" "computerized merchant processor" The parties dispute the construction of the following term(s) contained in the agreed function (See Attachment 2): "customer identifier" AdvanceMe's Proposed Structure: input/output device 322 Evidence: See, e.g., FIG. 3B; 6:18-23; 6:52-63 Defendants' Proposed Structure: Modem and public and/or private network Evidence: See, e.g., 3:33-36; 6:60-63

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

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JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 3

Claim Terms That Should Be Construed Under 35 U.S.C. § 112, ¶6 means for receiving the information related to the payment from the merchant (Recited in Claim 10)

AdvanceMe's Proposed Structure and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Structure and Evidence

Agreed Function: "receiving the information related to the payment from the merchant" AdvanceMe's Proposed Structure: input/output device 306 or telephone or computer or World Wide Web Evidence: See, e.g., FIGS. 1A, 3A; 3:31-40; 5:49-6:17; 6:6063. Defendants' Proposed Structure: Modem Evidence: See, e.g., 6:60-63

means for authorizing the payment (Recited in Claim 10)

Agreed Function: "authorizing the payment" The parties agree on the construction of the following term(s) contained in the agreed function (See Attachment 1): "authorizing the payment" AdvanceMe's Proposed Structure: one or more computers and/or dedicated electronics programmed or configured to route an authorization request to a card issuer and receive approval of the authorization from the card issuer Evidence: See, e.g., FIGS. 1A, 3A; 3:30-4:4; 5:58-66; 6:7-11. 14 Defendants' Proposed Structure: No structure disclosed

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 3

Claim Terms That Should Be Construed Under 35 U.S.C. § 112, ¶6 means for settling the payment (Recited in Claim 10)

AdvanceMe's Proposed Structure and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Structure and Evidence

Agreed Function: "settling the payment" The parties dispute the construction of the following terms contained in the agreed function (See Attachment 2): "settling the payment" AdvanceMe's Proposed Structure: one or more computers and/or dedicated electronics programmed or configured to submit the amount of the customer's purchase to the card issuer and receive or be credited some amount by the card issuer Evidence: See, e.g., FIGS. 1B, 3A; 4:27-37; 5:58-66; 6:7-11. Defendants' Proposed Structure: No structure disclosed

means for forwarding a portion of the payment to the third party (Recited in Claim 10)

Agreed Function: "forwarding a portion of the payment to the third party" The parties dispute the construction of the following terms contained in the agreed function (See Attachment 2): "third party" AdvanceMe's Proposed Structure: input/output device 306 15 Defendants' Proposed Structure: No structure disclosed

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 3

Claim Terms That Should Be Construed Under 35 U.S.C. § 112, ¶6

AdvanceMe's Proposed Structure and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Structure and Evidence

Evidence: See, e.g., FIGS. 1A, 3A; 3:31-40; 5:49-6:17; 6:6063. means for accepting a credit card number as the customer identifier (Recited in Claim 11) Agreed Function: "accepting a credit card number as the customer identifier" The parties agree on the construction of the following terms contained in the agreed function (See Attachment 1): "credit card" The parties dispute the construction of the following terms contained in the agreed function (See Attachment 2): "customer identifier" AdvanceMe's Proposed Structure: consumer data input device 316 or telephone or computer or World Wide Web Evidence: See, e.g., FIGS. 1A, 3B; 2:4-11; 2:34-43; 3:20-31; 6:18-59. Defendants' Proposed Structure: magnetic card reader or keyboard or telephone Evidence: See, e.g., 2:7-11; 2:38-41; 6:23-29

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

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JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 3

Claim Terms That Should Be Construed Under 35 U.S.C. § 112, ¶6 means for accepting a debit card number as the customer identifier (Recited in Claim 12)

AdvanceMe's Proposed Structure and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Structure and Evidence

Agreed Function: "accepting a debit card number as the customer identifier" The parties dispute the construction of the following terms contained in the agreed function (See Attachment 2): "debit card" "customer identifier" AdvanceMe's Proposed Structure: consumer data input device 316 or telephone or computer or World Wide Web Evidence: See, e.g., FIGS. 1A, 3B; 2:4-11; 2:34-43; 3:20-31; 6:18-59. Defendants' Proposed Structure: magnetic card reader or keyboard or telephone Evidence: See, e.g., 2:7-11; 2:38-41; 6:23-29

means for accepting a smart card number as the customer identifier (Recited in Claim 13)

Agreed Function: "accepting a smart card number as the customer identifier" The parties dispute the construction of the following terms contained in the agreed function (See Attachment 2): "smart card" "customer identifier" AdvanceMe's Proposed Structure: consumer data input device 316 or telephone or computer or World Wide Web Defendants' Proposed Structure: magnetic card reader or keyboard or telephone
JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 3

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

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Claim Terms That Should Be Construed Under 35 U.S.C. § 112, ¶6

AdvanceMe's Proposed Structure and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Structure and Evidence Evidence: See, e.g., 2:7-11; 2:38-41; 6:23-29

Evidence: See, e.g., FIGS. 1A, 3B; 2:4-11; 2:34-43; 3:20-31; 6:18-59. means for accepting a charge card number as the customer identifier (Recited in Claim 14)

Agreed Function: "accepting a charge card number as the customer identifier" The parties agree on the construction of the following terms contained in the agreed function (See Attachment 1): "charge card" The parties dispute the construction of the following terms contained in the agreed function (See Attachment 2): "customer identifier" AdvanceMe's Proposed Structure: consumer data input device 316 or telephone or computer or World Wide Web Evidence: See, e.g., FIGS. 1A, 3B; 2:4-11; 2:34-43; 3:20-31; 6:18-59. Defendants' Proposed Structure: magnetic card reader or keyboard or telephone Evidence: See, e.g., 2:7-11; 2:38-41; 6:23-29

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

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JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 3

Claim Terms That Should Be Construed Under 35 U.S.C. § 112, ¶6 means for accepting the customer identifier at a merchant location (Recited in Claim 15)

AdvanceMe's Proposed Structure and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Structure and Evidence

Agreed Function: "accepting the customer identifier at a merchant location" The parties dispute the construction of the following terms contained in the agreed function (See Attachment 2): "customer identifier" AdvanceMe's Proposed Structure: consumer data input device 316 or telephone or computer or World Wide Web Evidence: See, e.g., FIGS. 1A, 3B; 2:4-11; 2:34-43; 3:20-31; 6:18-59. Defendants' Proposed Structure: magnetic card reader or keyboard or telephone Evidence: See, e.g., 2:7-11; 2:38-41; 6:23-29

means for electronically accepting the customer identifier (Recited in Claim 16)

Agree Function: "electronically accepting the customer identifier" The parties agree on the construction of the following terms contained in the agreed function (See Attachment 1): "electronically accepting" The parties dispute the construction of the following terms contained in the agreed function (See Attachment 2): "customer identifier"

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

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JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 3

Claim Terms That Should Be Construed Under 35 U.S.C. § 112, ¶6

AdvanceMe's Proposed Structure and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Structure and Evidence Defendants' Proposed Structure: magnetic card reader or keyboard or telephone Evidence: See, e.g., 2:7-11; 2:38-41; 6:23-29

AdvanceMe's Proposed Structure: consumer data input device 316 or telephone or computer or World Wide Web Evidence: See, e.g., FIGS. 1A, 3B; 2:4-11; 2:34-43; 3:20-31; 6:18-59. means for accumulating the payments until a predetermined amount is reached (Recited in Claim 17)

Agreed Function: "accumulating the payments until a predetermined amount is reached" The parties dispute the construction of the following terms contained in the agreed function (See Attachment 2): "accumulating the payments until a predetermined amount is reached" AdvanceMe's Proposed Structure: one or more computers and/or dedicated electronics programmed or configured to accumulate payments it receives until a predetermined amount is reached Evidence: See, e.g., FIGS. 2, 3A; 5:40-43; 5:58-66; 6:7-11. Defendants' Proposed Structure: No structure disclosed

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

20

JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 3

Claim Terms That Should Be Construed Under 35 U.S.C. § 112, ¶6

AdvanceMe's Proposed Structure and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Structure and Evidence

means for forwarding at least a Agreed Function: portion of the accumulated "forwarding at least a portion of the accumulated payments to the third party" payments to the third party The parties dispute the construction of the following terms contained in the agreed function (Recited in Claim 17) (See Attachment 2): "third party" AdvanceMe's Proposed Structure: input/output device 306 Evidence: See, e.g., FIGS. 1A, 3A; 3:31-40; 5:49-6:17; 6:6063. means for periodically Agreed Function: forwarding at least a portion of "periodically forwarding at least a portion of the payment to the third party" the payment to the third party The parties dispute the construction of the following terms contained in the agreed function (Recited in Claim 18) (See Attachment 2): "periodically forwarding" "third party" AdvanceMe's Proposed Structure: Defendants' Proposed Structure: input/output device 306 No structure disclosed Evidence: See, e.g., FIGS. 1A, 3A; 3:31-40; 5:49-6:17; 6:6063.
ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

Defendants' Proposed Structure: No structure disclosed

21

JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 3

Claim Terms That Should Be Construed Under 35 U.S.C. § 112, ¶6 means for forwarding to the third party an amount that is a percentage of the obligation (Recited in Claim 19)

AdvanceMe's Proposed Structure and Evidence

Merchant Money Tree's, Reach Financial's, First Funds' and AmeriMerchant's Proposed Structure and Evidence

Agreed Function: "forwarding to the third party an amount that is a percentage of the obligation" The parties agree on the construction of the following terms contained in the agreed function (See Attachment 1): "a percentage of the obligation" The parties dispute the construction of the following terms contained in the agreed function (See Attachment 2): "third party" AdvanceMe's Proposed Structure: input/output device 306 Evidence: See, e.g., FIGS. 1A, 3A; 3:31-40; 5:49-6:17; 6:6063. Defendants' Proposed Structure: No structure disclosed

LEGAL_US_W # 54153638.1

ADVANCEME, INC. V. RAPIDPAY LLC ET AL. CIVIL CASE NO. 6:05-CV-424 (LED) ADVANCEME, INC. V. AMERIMERCHANT LLC CIVIL CASE NO. 6:06-CV-82 (LED)

22

JOINT CLAIM CONSTRUCTION AND PREHEARING STATEMENT PURSUANT LOCAL PATENT RULE 4-3 ATTACHMENT 3