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

With the US privacy landscape more fragmented and active than ever and federal legislation stalled, lawyers at Sheppard Mullin explain how states are taking bold steps to define their own regimes
Viji Krishnan of Corsearch unpicks the results of a survey that reveals almost 80% of trademark practitioners believe in a hybrid AI model for trademark clearance and searches
News of Via Licensing Alliance selling its HEVC/VCC pools and a $1.5 million win for Davis Polk were also among the top talking points
The winner of a high-profile bidding war for Warner Bros Discovery may gain a strategic advantage far greater than mere subscriber growth - IP licensing leverage
A vote to be held in 2026 could create Hogan Lovells Cadwalader, a $3.6bn giant with 3,100 lawyers across the Americas, EMEA and Asia Pacific
Varuni Paranavitane of Finnegan and IP counsel Lisa Ribes compare and contrast two recent AI copyright decisions from Germany and the UK
Exclusive in-house data uncovered by Managing IP reveals French firms underperform on providing value equivalent to billing costs and technology use
The new court has drastically changed the German legal market, and the Munich-based firm, with two recent partner hires, is among those responding
Consultation feedback on mediation and arbitration rules and hires for Marks & Clerk and Heuking were also among the major talking points
Nick Groombridge shares how an accidental turn into patent law informed his approach to building a practice based on flexibility and balancing client and practitioner needs
Gift this article