Supreme Court agrees to decide on Alice v CLS

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

Supreme Court agrees to decide on Alice v CLS

The Supreme Court has confirmed it will hear oral arguments in Alice’s dispute with CLS Bank, in a case that will rule on the extent to which software and business methods are patentable.

The US Supreme Court today agreed to hear Alice v CLS. Next year’s verdict in the landmark case will provide clarity over when, if ever, an otherwise abstract idea is patent-eligible under Section 101.

Alice Corporation in September asked the Court to review the Federal Circuit’s decision in its dispute with CLS Bank. In an en banc decision in May this year, the 10 Federal Circuit judges split 5-5 on Alice’s claims to computer system inventions. This split meant the district court summary judgment that the claims were unpatentable was upheld.

Alice is an electronic financial marketplace that is 50% owned by National Australia Bank. The Supreme Court decision will have big ramifications for the software industry.

Legal arguments are likely to start in March with a verdict to follow by the end of June.

Alice is represented by Supreme Court specialist Carter Phillips with other lawyers from Sidley Austin’s Washington, DC and Chicago office. Phillips has argued 76 cases before the Supreme Court including patent trials LA v Quanta and eBay v MercEchange.

May’s Federal Court decision followed a 2-1 panel decision to uphold Alice’s patents in July 2012, which created inconsistencies in the way that judges have interpreted Section 101. Chief Judge Rader recently admitted the 2012 ruling was “the greatest failure in my judicial career”. He added: “I think we have a responsibility to deal with what we are given and try to provide guidance in the right direction and we did not do that.”

more from across site and SHARED ros bottom lb

More from across our site

News of InterDigital suing Amazon in the US and CMS IndusLaw challenging Indian rules on foreign firms were also among the top talking points
IP lawyers at three firms reflect on how courts across Australia have reacted to AI use in litigation, and explain why they support measured use of the technology
AJ Park’s owner, IPH, announced earlier this week that Steve Mitchell will take the reins of the New Zealand-based firm in January
Chris Adamson and Milli Bouri of Adamson & Partners join us to discuss IP market trends and what law firm and in-house clients are looking for
Noemi Parrotta, chair of the European subcommittee within INTA's International Amicus Committee, explains why the General Court’s decision in the Iceland case could make it impossible to protect country names as trademarks
Inès Garlantezec, who became principal of the firm’s Luxembourg office earlier this year, discusses what's been keeping her busy, including settling a long-running case
In the sixth episode of a podcast series celebrating the tenth anniversary of IP Inclusive, we discuss IP Futures, a network for early-career stage IP professionals
Rachel Cohen has reunited with her former colleagues to strengthen Weil’s IP litigation and strategy work
McKool Smith’s Jennifer Truelove explains how a joint effort between her firm and Irell & Manella secured a win for their client against Samsung
Tilleke & Gibbins topped the leaderboard with four awards across the region, while Anand & Anand and Kim & Chang emerged as outstanding domestic firms
Gift this article