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

IP attorneys share how the Cox v Sony ruling impacts their counselling strategies, and if the case could influence how courts may assess liability for AI platforms
Natasha Daughtrey shares how firms can help their women litigators take the lead on trials, and why she is seeing a convergence of tech and life sciences disputes
The LMG Life Sciences Awards is thrilled to present the shortlist for the 2024 EMEA Awards
Having agreed to a cost cap in the landmark Emotional Perception AI case, the government should do the right thing and pay at least the bare minimum
Ruth Hoy will join the firm's IP practice alongside Huw Cookson, who will also become a partner
IP boutique firm says its platform will help navigate ‘scattered’ decisions by bringing case law, commentary and research under one umbrella
The latest round of promotions has contributed to a 21% rise in partner headcount in the past two years, with business leaders eyeing litigation and the UPC
João Negrão, EUIPO executive director, is joined by a seasoned official to reflect on three decades of stories
Sim & San, which secured the $16m victory for their client, previously led Communications Components Antenna to a $26m damages win in 2024
IP litigator Ruth Hoy has led the London office since 2022
Gift this article