Business methods and software still patentable in U.S. following closely-watched Bilski

BUSINESSMETHODSANDSOFTWARESTILLPATENTABLEINU
.S.
FOLLOWINGCLOSELY-WATCHEDBILSKI

ADAMMIZERA*
ROBIC,
LLP
L
AWYERS,PATENTANDTRADE-MARKAGENTS

Inarulingthathasbeeneagerlyanticipatedbytheworldwideintellectualproperty
community,theSupremeCourtoftheUnitedStatesissuedadecisiononJune28on
thevalidityofbusinessmethodpatents.
TheSupremeCourtrejectedapatentapplicationforabusinessmethodofrisk
managementinfinancialmarkets.However,initsjudgment,thecourtprovideda
numberofcommentsthatappeartoindicatethatbusinessmethodsarestill
patentableintheU.S.andthatsoftwarecancontinuetobepatentableinthat
jurisdiction.
TheBilskiv.Kappuscase[http://www.supremecourt.gov/opinions/09pdf/08-964.pdf]
resultedfromanappealofajudgmentoftheU.S.CourtofAppealsfortheFederal
Circuit,whichhadre-examinedthevalidityofpatentsonbusinessmethods.Ina
majoritydecision,theappealscourtrejectedapatentclaimforabusinessmethodfor
hedgingrisksinenergymarkets.
TheCourtofAppealshaddeterminedthatsuchapatentapplicationcouldnotbe
validiftheobjectoftheapplicationwasnotattachedtoaphysicalmachine,orifitdid
notproduceachangeofstateortransformationofaproductinwhatisknownasthe
machine-or-transformationtest.
AlthoughthecaseinvolvedaU.S.patentapplicationmoreofinteresttofinancial
institutions,theBilskidecisionhasanimpactonthepatentfilingstrategiesof
Canadianandotherforeignapplicantsinseveraldifferentfields,including
biotechnologyandsoftware.
AsubstantialamountofCanadianandforeignpatentportfoliosusuallyincludeaU.S.
patentsincethecountryoftenrepresentsanimportantmarketforproductsand
services.

©CIPS,2010.*OfROBIC,LLP.,amultidisciplinaryfirmoflawyers,patentandtrademarkagents.Publishedinthe
2010-07-089issueofTheGazette.Publication62.44

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ThedecisionoftheSupremeCourtinthiscasewasexpectedtohelpdefinethelimits
ofwhatcanbeprotectedthroughapatentandthelevelofallowableabstractionin
patentclaims.
Indeed,severalimportanttechnologiesintheneweconomy,includingdiagnostic
methodsinlifesciencesandsoftwareapplications,suchasAmazon.com’sone-click
Internetshoppingfeatures,involveveryabstractorintangibleconcepts,asopposed
tomoretraditionalmechanicalinventions.
Somepeoplehavearguedthatpatentsshouldnotbegrantedonsuchabstract
concepts.
TheU.S.SupremeCourtrejectedtheideathatthemachine-or-transformationtest,
establishedbytheCourtofAppealsfortheFederalCircuit,bethesoletestto
establishpatentabilityofaninvention.
ItdeterminedthatintheBilskicasethemethodofriskmanagementwasnotan
innovationthatcouldbeprotectedthroughapatent.Thecourtavoidedusingthe
machine-or-transformationtest,preferringinsteadtorefertopreviousSupremeCourt
decisionstoestablishthattheclaimedmethodwastooabstracttobepatentable.

Butinrenderingitsdecision,theSupremeCourtdidnotestablishanynewteststo
evaluatepatentablesubjectmatterforpatentapplicationsintheU.S.Consequently,
theuncertaintysurroundingwhatconstitutespatentablesubjectmatterinthat
jurisdictionremains.
TheSupremeCourtdiddeclareinitsdecisionthatbusinessmethodscould
neverthelessincertaincasesbeprotectedthroughpatents.Moreover,althoughthe
courtdidnotexplicitlycommentonthepatentabilityofsoftware,thecourtdidnot
makeanystatementthatwouldappeartogoagainsttheconceptofthepatentability
ofsoftwareintheU.S.
Asaresult,patentapplicantswhowanttoprotectsoftwareinnovationsdonotyet
haveacleartesttodeterminewhetherornottheirsoftwareinventionrepresentsa
patentableinventionintheU.S.
Whileoneawaitssubsequentcourtdecisionstoapplytheprinciplesestablishedin
theBilskidecision,Canadianpatentapplicantscaninthemeantimerefertoanew
chapterintheManualofPatentOfficePractice(MOPOP)inCanadarelatedto
computerimplementedinventions.
ThisnewMOPOPchapterisavailableforconsultationhere
[[http://www.cipo.ic.gc.ca/eic/site/cipointernet-
internetopic.nsf/vwapj/consultation_chapitre16-chapter16-
eng.pdf/$FILE/consultation_chapitre16-chapter16-eng.pdf]..Thechaptergives

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severalexamplesofinventionswithsoftwarecomponents,aswellastheopinionof
theCanadianPatentOfficeonwhatconstitutespatentablesubjectmatterinthese
inventions.ThepublicisinvitedtoprovidecommentsonthischapteruntilAugust19,
2010.Accesstothepageindicatinghowobservationsandsuggestionscanbe
providedtotheCanadianPatentOfficeisavailablehere
[[http://www.cipo.ic.gc.ca/eic/site/cipointernet-internetopic.nsf/eng/wr02486.html]].

Onemustnote,however,thatthisCanadianchapteronthequestionofpatentability
ofsoftwaremayalsorequiremodificationsoncetheAmazon.comcase,relatedtothe
rejectionofAmazon.com’spatentapplicationonone-clickshopping,isheardanda
decisionisrenderedbytheFederalCourtofCanada.

Fornow,caselawonthepatentabilityofsoftwareappearstobeasactiveasrecent
technologicalandinnovativedevelopmentsinthisfield.

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since1892totheprotectionandthevalorizationofallfieldsofintellectualproperty:
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