Confusion over business methods debated in CLS v Alice today

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Confusion over business methods debated in CLS v Alice today

The Federal Circuit will consider questions which may redefine the law on US business method patents as it begins its en banc rehearing of CLS Bank v Alice today

The Court ordered the en banc rehearing after overturning its controversial 2-1 decision in July 2012 to affirm Alice’s patent claims for a computerised trading system which minimises risk.

The case, which dates back to CLS's 2007 suit seeking to invalidate Alice's patents, hinges on what constitutes a patent-ineligible abstract idea.

The judges have agreed to consider questions central to the confusion surrounding what constitutes patent eligibility under section 101. These include what test the court should adopt to determine whether a computer-implemented invention is an abstract idea and in what circumstances, if any, computer implementation makes an otherwise abstract idea patent-eligible.

The court will also attempt to decide whether it matters if the invention is claimed as a method, system, or storage medium, and whether such claims should at times be considered equivalent for section 101 purposes.

Mark Perry of Gibson Dunn & Crutcher is representing CLS Bank and CLS Services and Adam Perlman of Williams & Connolly is representing Alice in the case.

The recording of the en banc hearing will be available on the Federal Circuit’s website later today.

more from across site and SHARED ros bottom lb

More from across our site

Monetisation is standing at the forefront of patent development, and one firm says AI is increasingly being deployed
Data centres are being built across the US, prompting patent disputes, but Texas’s thriving tech industry and patent-ready courts make the state particularly ‘ripe’ for litigation
Carpmaels & Ransford is set to bolster its UK attorney team with the appointment of Simmons & Simmons’s head of IP in the UK
Updates on Nokia’s licensing strides and a surge in patent activity around battery recycling in Australia were also among the top talking points
To mark International Day Against Child Labour, Matteo Amerio at Corsearch says the people inside businesses who can identify counterfeiting risks must be given the tools and authority to act
With genuine equity at IP firms becoming rarer, securing partnership is harder than ever, but increased transparency is also making climbing the ladder more predictable
Yossi Sivan explains how Israeli judgment is a pro-brand owner departure from the norm and why it sends a strong message that corporate structures are not always a shield
Halim Shehadeh, group CEO of IP firm CWB, says that in the rush to discuss what AI can do, IP firms are overlooking the more important question of whether they are ready
Caitlin Heard, who formally joined the firm from CMS last month, says she is excited by the ‘energy’ of the London office
Ranjna Mehta-Dutt, who moved to Chadha & Chadha after 25 years at Remfry & Sagar, says the firm plans to expand its life sciences practice through targeted recruitment and dedicated teams for bigger clients
Gift this article