Supreme Court Unlikely to Clarify the Law for Computer-Based Software Patents

The U.S. Supreme Court heard oral arguments on Monday in Alice Corp. Pty. Ltd. v. CLS Bank Int’l regarding the patent eligibility of Alice Corp.’s patents. The patents relate to a computer system that facilitates financial transactions. The case has been closely followed and has divided the country's largest corporations, with companies like IBM, Microsoft, Hewlett-Packard, Verizon and Dell filing amicus briefs warning that new restrictions could render worthless thousands of existing patents and the billions spent in research and development. On the other hand, companies such as Google, Facebook, LinkedIn, Netflix and filed amicus briefs with the Court seeking a tighter definition of patent eligibility, asserting that the free flow of software patents plagues the industry and blocks innovation. Many had hoped the Court would provide clarification as to which computer implemented inventions are patent eligible. However, based on the questions from the Justices, while it is almost certain that the Justices will find Alice Corp.’s patents not patent eligible, it is likely that the Court will issue a narrow ruling in June that is unlikely to provide any real change to the existing law.

Sources: http://www.supremecourt.gov/oral_arguments/argument_transcripts/13-298_869d.pdf http://www.reuters.com/article/2014/03/31/us-usa-court-ip-idUSBREA2U05X20140331

Klemchuk LLP is an Intellectual Property (IP), Technology, Internet, and Business law firm located in Dallas, TX.  The firm offers comprehensive legal services including litigation and enforcement of all forms of IP as well as registration and licensing of patents, trademarks, trade dress, and copyrights.  The firm also provides a wide range of technology, Internet, e-commerce, and business services including business planning, formation, and financing, mergers and acquisitions, business litigation, data privacy, and domain name dispute resolution.  Additional information about the IP law firm and its IP law attorneys may be found at www.klemchuk.com.

Klemchuk LLP hosts Culture Counts, a blog devoted to the discussion of law firm culture and corporate core values with frequent topics about positive work environment, conscious capitalism, entrepreneurial management, positive workplace culture, workplace productivity, and corporate core values.