Supreme Court sends computer-implemented business method claims down the rabbit hole
The US Supreme Court has maintained its solidarity with yet another 9-0 patent decision in Alice Corporation v CLS Bank, holding that Alice’s patent claims directed towards mitigation of settlement risk were patent-ineligible subject matter. The court criticised the claims, finding that they merely required generic computer implementation of an abstract idea.
The representative claim was directed towards a method of mitigating risk and required four discrete steps: (1) creation of shadow credit and debit records; (2) obtaining a balance for the shadow records; (3) adjustment of shadow records when transactions requiring an exchange obligation occurred; and (4) instructing exchanges of credits or debits based on the adjustments. Additional claims were directed toward computer systems to carry out the described method and a computer-readable medium containing program code to perform the described method. All claims were deemed patent-ineligible subject matter.
The court made clear that ‘an invention is not rendered ineligible for patent simply because it involves an abstract concept’. Rather, it is the failure to transform an abstract idea that renders an invention patent ineligible. The court likened abstract ideas to building blocks; claims directed towards the building blocks are not patentable, but inventions that integrate the building blocks into something more are patent eligible…
Click on the link below to read the rest of the Dentons briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Analysis from The Lawyer
Life in Canada is getting harder for firms as commodities prices fall and work volumes slow
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all