Covered business method (CBM) Review provides a means to challenge the validity of an issued patent meeting the definition of a “covered business method patent” at the United States Patent and Trademark Office (USPTO). If instituted, CBM Review can be a quicker, more cost-effective option to challenge a covered business method patent than federal court litigation may provide.
Covered Business Method Review
A covered business method (CBM) patent is defined as being 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. This may include activities incidental to, or even complementary to a financial activity, and 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 the federal district courts, and CBM Review is adjudicated by a panel of Administrative Patent Law Judges in the Patent and Trial Appeal Board (PTAB) at the USPTO. To be eligible to file a petition for CBM Review, the challenger must show it has been sued or at least charged with infringement of a covered business method patent. Even so, CBM Review is not automatically instituted.
Business Method Patent Challenge
Patent challengers may find CBM Review, if it is instituted, to be effective, efficient, lower-cost option than federal court litigation alone to challenge the validity of a CBM patent. However, because institution of a CBM Review proceeding is not a matter of right, a patent holder faced with a CBM Review petition should consider providing arguments at the outset to attempt to convince the PTAB that there is not a reasonable likelihood that the challenger will prevail and avoid institution of 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.
As a patent law firm, our patent attorneys can assist with advising on covered business method (CBM) review legal issues. See our Patents service line page for additional information about covered business method (CBM) review legal services.