Current Topics in Business – Business Law
Prof. Ira Selkowitz
Term 2 / Class of 2016
Intellectual Property Infringement - Patent
Alice Corporation Pty. Ltd. v. CLS Bank International, et al.
No. 13-298, (U.S. June 19, 2014)
On Writ of Certiorari to the United States Court of Appeals for the Federal Circuit
Daniel R. Herlihy
Alice Corporation Pty. Ltd. v. CLS Bank International, et al.
An abstract idea is not patentable simply because it is tied to a computer system. That was the primary finding in the recent United States Supreme Court decision in Alice Corporation Pty. Ltd v. CLS Bank International, No. 13-298, (U.S. …show more content…
CLS Bank decision is frequently referred to as the Supreme Court case deciding whether software is patentable. Even though the Court did not tackle that broader question in its decision, it did address whether Alice should be allowed to patent the concept of mitigating settlement risk implemented through software. Unfortunately, the Court provided little additional guidance as how to determine what qualifies as an “abstract idea,” and went so far as to say that it “need not labor to delimit the precise contours of the ‘abstract ideas’ category in this case.”
The Court said to ignore computer implementation unless it does more than “apply the abstract idea…using some unspecified, generic computer.” However the Court did indicate that the case’s method claims did not "purport to improve the functioning of the computer itself," perhaps suggesting software that accomplishes such improvements could be patentable.5 It would have been beneficial to provide a more detailed explanation of how to determine when a patent is too abstract, but the Supreme Court declined, in this case and prior ones, to offer a comprehensive explanation. Thus the potential impact of this case on other software patents could be significant, although further litigation will be required before specifics of what is considered “abstract” are better …show more content…
CLS Bank.
Bibliography (cont.)
Steven S. Rubin, Patented Software, the Supreme Court & Abstract Idea Hearings, EE Times (July 10, 2014)
Steven S. Rubin, U.S. Supreme Court Invalidates Alice Corp’s Software Patent Claims, EE Times (June 20, 2014)
Douglas Sharrott, The Federal Circuit’s Decision in CLS Bank v. Alice Corporation: Abstraction Must Be “Manifestly Evident” to Hold a Patent Ineligible and Invalid Under 35 U.S.C. § 101, Lexology (July 10, 2012)
Robb Tiller, The Supreme Court Invalidates a Software Patent in Alice Corp. v. CLS Bank, Open Source.com (June 19, 2014)
U.S. Patent and Trademark Office, 2160 Patent Subject Matter Eligibility [R-11.2013], Manual of Parent Examining Procedures
U.S. Patent and Trademark Office, Memorandum to Patent Examining Corps re: Preliminary Examination Instructions in view of the Supreme Court Decision in Alice Corporation Ply. Ltd. v. CLS Bank International, et al
Steven J. Vaughan-Nichols, Software Patents Take a Hit, But They’re Far From Dead, ZDNet.com (June 19, 2014)
Vinson & Elkins LLP IP Insights E-communication, Supreme Court Holds Computer-Implemented Abstract Ideas Patent Ineligible (June 19,