Bilski : Business methods and software still patentable in the US

2010-01-01

BILSKI:BUSINESSMETHODSANDSOFTWARESTILLPATENTA
BLEINTHE
US
ADAMMIZERA*
ROBIC,
LLP
L
AWYERS,PATENTANDTRADE-MARKSAGENTS

ThelongawaiteddecisionintheBilskimatterintheUSwasissuedonJune28,
2010.TheUSSupremeCourtrejectedapatentapplicationbasedonamethodof
riskmanagementinfinancialmarkets.However,initsjudgment,theCourtprovided
acertainnumberofcommentsthatappeartoindicatethatbusinessmethodsarestill
patentableintheUSandthatsoftwarecancontinuetobepatentableinthat
jurisdiction.
TheBilskicase
1resultsfromanappealofajudgmentoftheCourtofAppealsofthe
FederalCircuitintheUnitedStateswhichhadre-examinedthevalidityofpatentson
businessmethods.Moreparticularly,amajorityoftheCourtofAppealshadrejected
apatentapplicationbasedonamethodofriskmanagementinfinancialmarkets.
TheCourtofAppealshaddeterminedthatsuchapatentapplicationcouldnotbe
validiftheobjectoftheapplicationwasnotattachedtoaphysicalmachineorifitdid
notproduceachangeofstateortransformationofaproduct(referredtoasthe
“machine-or-transformation”test).
TheUSSupremeCourtrejectedtheideathatthistest,establishedbytheCourtof
AppealsoftheFederalCircuit,bethesoletesttoestablishpatentabilityofan
invention.TheCourtdeterminedthatinthecaseathand,themethodofrisk
managementwasnotaninnovationthatcouldbeprotectedthroughapatent.The
SupremeCourtavoidedusingthe”machine-or-transformation”testandpreferred
referringtopreviousSupremeCourtdecisionstoestablishthattheclaimedmethod
wastooabstracttobepatentable.
Inrenderingitsdecision,theUSSupremeCourthoweverdidnotestablishanynew
teststoevaluatepatentablesubjectmatterforpatentapplicationsintheUS.
Consequently,theuncertaintysurroundingwhatconstitutespatentablesubject
matterintheUSremains.
TheSupremeCourtdeclaredinitsdecisionhoweverthatbusinessmethodsassuch
couldneverthelessincertaincasesbeprotectedthroughpatents.Moreover,

©CIPS,2010.*WithROBIC,LLPamultidisciplinaryfirmofLawyers,andPatentandTrade-markAgents.Published
intheSummer2010Newsletterofthefirm(Vol.14,No.2).Publication068.121E.
1http://www.supremecourt.gov/opinions/09pdf/08-964.pdf.

2
althoughtheCourtdidnotexplicitlycommentonthepatentabilityofsoftware,the
Courtdidnotmakeanystatementthatwouldappeartogoagainsttheconceptofthe
patentabilityofsoftwareintheUnitedStates.
Consequently,patentapplicantswhowanttoprotectsoftwareinnovationsdonotyet
haveacleartesttodeterminewhetherornottheirsoftwareinventionrepresentsa
patentableinventionintheUS.WhileoneawaitssubsequentCourtdecisionsto
applytheprinciplesestablishedintheBilskidecision,Canadianpatentapplicants
caninthemeantimerefertoanewchapterintheManualofPatentOfficePracticein
Canadarelatedtocomputerimplementedinventions.Thisnewchapterisavailable
forconsultation
2.Thechaptergivesseveralexamplesofinventionswithsoftware
components,aswellastheopinionoftheCanadianPatentOfficeonwhat
constitutespatentablesubjectmatterintheseinventions.Thepublicisinvitedto
providecommentsonthischapteruntilAugust19,2010.Observationsand
suggestionscanbeprovidedtotheCanadianPatentOffice
3.

OnemustnotehoweverthatthisCanadianchapteronthequestionofpatentability
ofsoftwaremayalsorequiremodificationsoncetheAmazom.comcase
4,relatedto
therejectionofAmazon.com’spatentapplicationonone-clickshopping,isheardand
thedecisionisrenderedbytheFederalCourtofCanada.Caselawonthe
patentabilityofsoftwareappearsthereforetobeasactiveasrecenttechnological
andinnovativedevelopmentsinthisfield.

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2http://www.cipo.ic.gc.ca/eic/site/cipointernet-internetopic.nsf/vwapj/consultation_chapitre16-chapter16-
eng.pdf/$FILE/consultation_chapitre16-chapter16-eng.pdf.
3http://www.cipo.ic.gc.ca/eic/site/cipointernet-internetopic.nsf/eng/wr02486.html.4http://newsletter.www.robic.ca/nouvelle.aspx?lg=EN&id=114.

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