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

Koen Bijvank of Brinkhof and Johannes Heselberger of Bardehle Pagenberg discuss the Amgen v Sanofi case and why it will be cited frequently
View the official winners of the 2025 Social Impact EMEA Awards
King & Wood Mallesons will break into two entities, 14 years after a merger between a Chinese and an Australian firm created the combined outfit
Teams from Shakespeare Martineau and DWF will take centre stage in a dispute concerning the registrability of dairy terminology in plant-based products
Senem Kayahan, attorney and founder at PatentSe, discusses how she divides prosecution tasks, and reveals the importance of empathetic client advice
The association’s Australian group has filed a formal complaint against the choice of venue, citing Dubai as an unsafe environment for the LGBTQIA+ community
Firm says appointment of Nick McDonald will boost its expertise in cross-border disputes, including at the Unified Patent Court
In the final episode of a podcast series celebrating the tenth anniversary of IP Inclusive, we discuss the IP Inclusive Charter and the senior leaders’ pledge
Law firms are integrating AI to remain competitive, and some are noticing an impact on traditional training and billing models
IP partners are among those advising on Netflix's planned $82.7bn acquisition of Warner, which has been rivalled by a $108.4bn bid by Paramount
Gift this article