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 2026

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

Christine Chiramel, who joins a full-service law firm after 17 years of working at specialist firms, says she’s excited to explore how corporate commercial issues are blurring into IP
Practitioners say increasing the pecuniary jurisdiction of India’s most popular litigation forum to around $2 million would spark unpredictability and make it difficult for SMEs to benefit
The Spain-based firm has appointed an industry veteran to lead the group, which it hopes will strengthen its ability to support clients in ‘disruptive technologies’
Shaina Haria, a final-seat trainee at an international law firm’s UK office, shares how she fell in love with IP and why the area of law has changed the way she views the world
Now in its sixth edition, the IP Case Law Conference was focussed on the notion of ‘growing through change’
Nick Redfearn and Khanh Nguyen of Rouse discuss Vietnam’s latest identification in the 2026 Special 301 Report and how the country is taking genuine steps to meet US expectations
Tatiana Campello reflects on 30 years of practising at the firm, and urges women IP attorneys to think beyond the day-to-day
A David v Goliath battle involving TikTok, and Via Licensing Alliance adding new members to its Voice Codec patent pool, were also among the top talking points
Latham & Watkins bolstered its IP litigation bench in California with the addition of Kieran Kieckhefer, as partner demand for trial-ready expertise shows no sign of slowing
With the launch of a new patent eligibility AI tool, Sterne Kessler is leading a growing movement of law firms taking AI development into their own hands
Gift this article