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

Via Licensing Alliance continues its China push as another smartphone manufacturer joins patent pool as licensee
Law firm mergers have the potential to reshape IP teams, and partners who were at the coalface of previous tie-ups say early coordination and flexibility can make the difference
Women are entering the IP profession, but still too few are being trusted with the clients, cases, and credit that may open the path to leadership
In other news, Australia’s IP office has announced expanded search options, and an EPO report shed light on slow progress relating to women inventors in Europe
Managing IP speaks with up-and-coming women lawyers at five law firms about fighting imposter syndrome, maintaining work-life balance and why real representation matters
Kilpatrick’s managing partner for San Francisco discusses taking the longer route to partnership, the importance of female mentors, and strengthening office culture
Home-working and grace periods at IP offices have been announced, while Managing IP understands Iran’s IP office is out of service
With INTA 2026 just two months away, London-based IP practitioners offer tips on making the most out of the city
New platform, which covers SEPs for the Wi-Fi 6 and Wi-Fi 7 standards, includes 10 patent owners
The Texas-based IP litigation hires take King & Spalding’s partner appointments from pre-merger Winston & Strawn up to 12 this year
Gift this article