Business methods and software still patentable in the U.S.

2010-01-01

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BUSINESSMETHODSANDSOFTWARESTILLPATENTABLEINTHEUS

ADAMMIZERA*
ROBIC,
LLP
L
AWYERS,PATENTANDTRADE-MARKAGENTS

Inarulingthathasbeeneagerlyanticipatedbytheworldwideintellectualproperty
community,theUSSupremeCourtissuedadecisiononJune28,2010,onthe
validityofbusinessmethodpatents.TheUSSupremeCourtrejectedapatent
applicationbasedonamethodofriskmanagementinfinancialmarkets.However,in
itsjudgment,theCourtprovidedacertainnumberofcommentsthatappearto
indicatethatbusinessmethodsarestillpatentableintheUSandthatsoftwarecan
continuetobepatentableinthatjurisdiction.
TheBilskicase(
linktothedecision)resultsfromanappealofajudgmentoftheCourt
ofAppealsoftheFederalCircuitintheUnitedStateswhichhadre-examinedthe
validityofpatentsonbusinessmethods.Moreparticularly,amajorityoftheCourtof
Appealshadrejectedapatentapplicationbasedonamethodofriskmanagementin
financialmarkets.TheCourtofAppealshaddeterminedthatsuchapatentapplication
couldnotbevalidiftheobjectoftheapplicationwasnotattachedtoaphysical
machineorifitdidnotproduceachangeofstateortransformationofaproduct
(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,theuncertaintysurroundingwhatconstitutespatentablesubjectmatter
intheUSremains.

©CIPS,2010.
*
AdamMizeraisalawyerandengineerwithROBIC,LLP,amultidisciplinaryfirmoflawyers,and
patentandtrade-marksagents.Publishedinthe[2010-07-09]issueofTheGazette.Publication
062.048.

TheSupremeCourtdeclaredinitsdecisionhoweverthatbusinessmethodsassuch
couldneverthelessincertaincasesbeprotectedthroughpatents.Moreover,although
theCourtdidnotexplicitlycommentonthepatentabilityofsoftware,theCourtdidnot
makeanystatementthatwouldappeartogoagainsttheconceptofthepatentability
ofsoftwareintheUnitedStates.
Consequently,patentapplicantswhowanttoprotectsoftwareinnovationsdonotyet
haveacleartesttodeterminewhetherornottheirsoftwareinventionrepresentsa
patentableinventionintheUS.WhileoneawaitssubsequentCourtdecisionstoapply
theprinciplesestablishedintheBilskidecision,Canadianpatentapplicantscaninthe
meantimerefertoanewchapterintheManualofPatentOfficePracticeinCanada
relatedtocomputerimplementedinventions.Thisnewchapterisavailablefor
consultationon
thefollowingsite.Thechaptergivesseveralexamplesofinventions
withsoftwarecomponents,aswellastheopinionoftheCanadianPatentOfficeon
whatconstitutespatentablesubjectmatterintheseinventions.Thepublicisinvitedto
providecommentsonthischapteruntilAugust19,2010.
Clickonthefollowinglinkto
accessthepageindicatinghowobservationsandsuggestionscanbeprovidedtothe
CanadianPatentOffice.
OnemustnotehoweverthatthisCanadianchapteronthequestionofpatentabilityof
softwaremayalsorequiremodificationsoncetheAmazon.comcase,relatedtothe
rejectionofAmazon.com’spatentapplicationonone-clickshopping,isheardandthe
decisionisrenderedbytheFederalCourtofCanada.Caselawonthepatentabilityof
softwareappearsthereforetobeasactiveasrecenttechnologicalandinnovative
developmentsinthisfield.

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