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

A co-partner in charge says the UK prosecution teams are a ‘vital’ part of the firm’s offering, while praising a key injunction win
A team from White & Case has checked in on behalf of Premier Inn Hotels in a UK trademark and passing off case against a cookie brand
Litigation team says pre-trial work and a Section 101 defence helped significantly limit damages payable by ride-sharing firm Lyft in patent case
News of Avanci hiring a senior vice president and the EPO teaming up with a French AI startup were also among the top talking points
Explosm, the independent Texas studio behind the hit webcomic Cyanide & Happiness, partnered with Temu’s IP protection team to combat counterfeiters infringing on its brand
The latest in a dispute over juicing machines, and a shakeup in judicial compositions were also among the top developments
Patent partner Robert Hollingshead explains why the firm remains committed to Japan despite several US firms exiting the Japanese and greater Asia market
Emma Green, partner at Bird & Bird, shares why the Iceland v Iceland dispute could prompt businesses and lawyers to think differently about brand enforcement
Attain IP, developed by two UK patent lawyers, will meet ‘forensic’ needs of patent attorneys by showing a verifiable reasoning chain, according to its co-founders
The High Court of Australia has allowed a fashion designer to retain her registered ‘Katie Perry’ trademark for clothing
Gift this article