Summary On The Court Decision Decides A Software Patent Complaint Between Alice Corporation Ltd.

1316 WordsDec 7, 20146 Pages
Summary This Supreme Court decision decides a software patent complaint between Alice Corporation Pty. Ltd. (Alice) and CLS Bank International et al (CLS Bank). The question in this case asks whether a patent claiming the use of a fundamental economic principle is eligible for patent because it applies the use of a computer. Procedural History The petitioner of the case, CLS Bank, has several patents (Nos. 5,970,479, 6,912,510, 7,149,720, 7,725,375) pertaining to the “exchange of financial obligations between two parties by using a computer system as a third-party intermediary” i.e. escrow. (Alice Corp v. CLS Bank, 13-298 S. Ct. 2 (2013)) The respondent in this case, CLS Bank, is a cash settlement service dealing in the foreign exchange market. CLS Bank has filed suit against Alice in District Court, claiming the patents are invalid, unenforceable, or not infringed. After the Supreme Court decided on Bilski v. Kappos, No. 08- 964 (2010) both parties filed cross motions in District Court seeking summary judgment as to whether the asserted claims are eligible for patent. The District Court held that the claims are patent ineligible because they are directed to an abstract idea. The U.S. Court of Appeals for the Federal Circuit reversed the decision with a divided panel. Their assertion stated that there was no obvious use of an abstract concept. The Federal Circuit then agreed to hear the claim en banc and vacated the panel 's 1 opinion

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