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

Two partners have departed DLA Piper to join Squire Patton Boggs and Blank Rome in San Francisco and Chicago, respectively
Practitioners say a 32% rise in court fees is somewhat expected to maintain the UPC’s strong start, but some warn that SME clients could be squeezed out
Swati Sharma and Revanta Mathur at Cyril Amarchand Mangaldas explain how they overcame IP office objections to secure victory for a tyre manufacturer
Claudiu Feraru, founder of Feraru IP, discusses the benefits of a varied IP practice and why junior practitioners should learn from every case
In the ninth episode of a podcast series celebrating the tenth anniversary of IP Inclusive, we discuss IP & ME, a community focused on ethnic minority IP professionals
Firms that made strategic PTAB hires say that insider expertise is becoming more valuable in the wake of USPTO changes
Aled Richards-Jones, a litigator and qualified barrister, is the fourth partner to join the firm’s growing patent litigation team this year
An IP lawyer tasked with helping to develop Brownstein’s newly unveiled New York office is eyeing a measured approach to talent hunting
Amanda Griffiths, who will be tasked with expanding the firm’s trademark offering in New Zealand, says she hopes to offer greater flexibility to clients at her new home
News of EasyGroup failing in its trademark infringement claim against ‘Easihire’ and Amgen winning a key appeal at the UPC were also among the top talking points
Gift this article