As part of our Patents practice, we provide covered business method (CBM) review proceedings services.

Covered Business Method Patent Review

A covered business method (CBM) review provides a means to challenge the validity of an issued patent. However, the patent must meet the definition according to the United States Patent and Trademark Office (USPTO). CBM Review can be a more cost-effective option to challenge a patent than federal litigation may provide.

What Is A Covered Business Method Patent?

A CBM patent is defined as a patent directed to a method or corresponding apparatus for performing data processing or other operations used in the practice, administration, or management of a financial product or service. Therefore, it may include activities incidental to, or complementary to a financial activity. Additionally, it is not strictly limited to products or services of the financial services industry.

CBM Review is intended to be similar to a validity challenge that would ordinarily take place in federal district courts. However, CBM Review is adjudicated by a panel of Administrative Patent Law Judges in the Patent and Trial Appeal Board (PTAB) at the USPTO. To file a petition for CBM Review, the challenger must show it has been sued or charged with infringement. And, the infringement must be directed to a covered business method patent. However, CBM Review is not automatically instituted.

Covered Business Method Patent Challenge

Patent challengers may find CBM Review to be an effective, efficient, lower-cost option than federal court litigation to challenge the validity of a CBM patent. However, institution of a CBM Review proceeding is not a matter of right. Therefore, a patent holder faced with a CBM Review petition should consider providing arguments at the outset. Well drafted arguments could convince the PTAB that there is not a reasonable likelihood the challenger will prevail. Thus, avoiding a CBM Review.

Combining our experience in patent prosecution as well as patent litigation, we serve both patent holders and patent challengers with CBM Review and other post-issuance patent review proceedings.

Additional Insights Regarding Covered Business Method Patent Proceedings

For more information on CBM patent proceedings, see our Legal Insights and Industry Solutions pages.