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 2025

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

Licensing chief Patrik Hammarén also reveals that the company will rename its IPR business to better reflect its role in defining standards
The acquisition of Pecher & Partners follows the firm’s earlier expansion into litigation to create a ‘one-stop shop’
News of Via Licensing Alliance launching its first semiconductor patent pool and INTA electing a new president were also among the top talking points
Submit your nominations to this year's WIBL Americas Awards by January 23
The 2026 Life Sciences EMEA Awards is now open for entries. We are looking forward to reviewing and celebrating the industry's most impressive achievements and landmarks from the past year.
The tie-up between Perkins Coie and Ashurst may generate some striking numbers, but independent IP firms need not worry yet, according to practitioners
Perkins Coie’s US patent prosecution strength could provide Ashurst with an opportunity to enter an untapped market in Australia, but it may not be easy
Mitesh Patel at Reed Smith outlines why the US Copyright Office and courts have so far dismissed AI authorship and how inventors can protect AI-generated works
Xia Zheng, founder of AFD China, discusses balancing legal work with BD, new approaches to complex challenges, and the dangers of ‘over-optimism’
A dispute involving semiconductor technology and a partner's move from Hoffman Eitle to Hoyng Rokh Monegier were also among the top talking points
Gift this article