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

The firm has hired former in-house counsel Quintin Cassady to lead the launch of the new office
The combined firm has strong IP credentials across the US, Middle East, UK and Europe, despite Taylor Wessing’s German and French practices not joining
Priya Nagpal, who this month became the firm’s eighth IP partner, says its cross-practice expertise in areas closely linked to IP was a key draw
Harm van der Heijden is to join Ankar AI as head of patent innovation after 17 years in private practice
Alabama attorney Miya Aladebumoye has launched a new firm built on ‘big law’ experience and a personal touch approach
A UKIPO campaign aimed at combating fakes in the pre-loved fashion market and registration of the first Portuguese craft and industrial geographical indication were also among the top talking points
Chris Adams, Managing IP’s research lead, joins us to explain what practitioners need to know ahead of our first rankings release of 2026
Another IP litigator joins Winston & Strawn in Dallas as firm seeks to keep pace with ‘rapid’ growth of Texas market
Anthony O'Malley will replace Andrew Blattman at IPH, which owns several large IP firms across Australia, Asia and Canada
Barry Greenbaum, partner at Olshan Frome Wolosky, explains how in-house teams can update their approach to brand development, and where AI can add value
Gift this article