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

New partners, from biotech company Leyden Labs and Novartis, take the total number of partner hires to 12 since the firm took on external investment in late 2024
Labelled the ‘largest law firm merger in history’, the new outfit could also spell an opportunity for US clients to capitalise on Hogan Lovells' UPC expertise
Andy Lee and Amy Brooks of Brandsmiths explain how the firm secured a win for Peppa Pig over rival children’s character Wolfoo, in a case that centred on copied audio clips
Pedro Moreira outlines proposals by INPI that look set to open a discussion regarding biological materials, extracts, sequences, genetically edited plants, and computer programs
The combined firm, which has a newly appointed IP partner in London, brings together more than 3,500 practitioners across 52 offices, with flagship hubs in Seattle, London, Sydney and New York
A host of SEP-rich law firms, both leading arguments and as intervenors, are set to feature in the UK Supreme Court’s third FRAND episode, though one ground of appeal has been settled
Law firms are investing in generative engine optimisation and boosting their online presence in the hope of gaining a new client base
A decision on a licensing rate payable by Warner Bros and Paramount, and a survey outlining UK businesses’ lack of IP preparation ahead of launching abroad, were among other major talking points
A fresh wave of deals highlights why investors favour IP firms and why independent outfits may soon have to rethink their strategy
King & Spalding has now hired 15 partners from Winston Taylor and legacy firm Winston & Strawn in offices spanning Texas, San Francisco, and Chicago
Gift this article