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

Amongst a sea of mergers, Lathrop GPM and HG Law have set out plans to combine, positioning themselves to compete with both IP boutiques and full-service firms
Patrícia Paias explains why she loves the science and business behind an idea and why potential rights owners must avoid the ‘file and forget’ philosophy
Lawyers eagerly await news of what IP specialist Sir Colin Birss will bring to one of the England and Wales judiciary’s most important roles
María Aurora García of Berken IP explains how intellectual property rights holders can use customs monitoring and online enforcement tools to identify parallel imports and support compliance with consumer protection rules
The Jakarta-based firm says personal networks and a distinctive strategy can help it guide foreign clients through what can be a tricky IP landscape
Munich litigation boutique formed by former Taylor Wessing partners continues expansion as it seeks to cement its position in the UPC market
Yvonne Tang and Siau Wen Lim, the second and third IP specialists to sit on the firm’s management committee, say IP is ‘uniquely positioned’ to support cross-practice work
As competing firms come under common ownership, clients may care less about formal conflicts and more about how openly firms discuss them
Facing increased lateral movement and in-house competition, firms are investing in flexible billing hours and tailored career progression to improve associate retention
As the US reflects on 250 years of independence, patent lawyers say innovation is reshaping old hiring priorities, with firms seeking broader IP expertise over specialisation
Gift this article