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 2026

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

The move marks the latest step in Temu’s push to protect brands’ intellectual property by collaborating with industry groups and enforcement agencies. Managing IP learns about a rapidly scaling strategy and two success stories
A counterfeiting crackdown targeting fake FIFA World Cup merchandise and new partner hires by CMS, HGF and Winston Strawn were also among the top talking points
Law firms need to accept the hard truth: talent migration isn't personal; it's business as usual
Judge Alan Albright is to leave his role at the Western District of Texas, and could return to private practice
Stobbs has successfully seen off a contempt of court application filed against the firm and two of its lawyers
After almost a quarter of a century, Marshall Gerstein has a new managing partner
Abbott winning another round against Sinocare and Menarini, and 'long arm' clarification on the UK's position within the UPC, were also among major developments
Maria Peyman, head of IP at Birketts, explains why the firm is adopting a ‘seamless approach’ for clients by integrating two of its practice areas
Matthew Swinn, who leads the firm’s IP practice, discusses why Mallesons is well-placed to remain a major IP force
Lawyers at A&O Shearman analyse developments regarding UPC’s long-arm jurisdiction, including its scope and jurisdictional limits
Gift this article