Confusion over business methods debated in CLS v Alice today

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

Confusion over business methods debated in CLS v Alice today

The Federal Circuit will consider questions which may redefine the law on US business method patents as it begins its en banc rehearing of CLS Bank v Alice today

The Court ordered the en banc rehearing after overturning its controversial 2-1 decision in July 2012 to affirm Alice’s patent claims for a computerised trading system which minimises risk.

The case, which dates back to CLS's 2007 suit seeking to invalidate Alice's patents, hinges on what constitutes a patent-ineligible abstract idea.

The judges have agreed to consider questions central to the confusion surrounding what constitutes patent eligibility under section 101. These include what test the court should adopt to determine whether a computer-implemented invention is an abstract idea and in what circumstances, if any, computer implementation makes an otherwise abstract idea patent-eligible.

The court will also attempt to decide whether it matters if the invention is claimed as a method, system, or storage medium, and whether such claims should at times be considered equivalent for section 101 purposes.

Mark Perry of Gibson Dunn & Crutcher is representing CLS Bank and CLS Services and Adam Perlman of Williams & Connolly is representing Alice in the case.

The recording of the en banc hearing will be available on the Federal Circuit’s website later today.

more from across site and SHARED ros bottom lb

More from across our site

IP firm leaders share why they remain positive in the face of falling patent applications from US filers, and how they are meeting a rising demand from China
The power of DEI to swing IP pitches is welcome, but why does it have to be left so late?
Mathew Lucas has joined Pearce IP after spending more than 25 years at Qantm IP-owned firm Davies Collison Cave
Exclusive survey data reveals a generally lax in-house attitude towards DEI, but pitches have been known to turn on a final diversity question
Managing IP will host a ceremony in London on May 1 to reveal the winners
Abigail Wise shares her unusual pathway into the profession, from failing A-levels to becoming Lewis Silkin’s first female IP partner
There are some impressive AI tools available for trademark lawyers, but law firm leaders say humans can still outthink the bots
Lawyers at Simmons & Simmons look ahead to a UK Supreme Court hearing in which the court will consider whether English courts can determine FRAND terms when the licence is offered by an intermediary rather than an SEP owner
Firm says appointment of Jeremy Drew from RPC will help create ‘unrivalled IP powerhouse’, as it looks to shore up IP offering ahead of merger
Law firms are expanding their ITC practices to account for the venue’s growing popularity, and some are seeing an opportunity to collaborate with M&A teams
Gift this article