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

Cookies Settings

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

Six hires across the IP spectrum reflect Orrick’s efforts to better serve tech clients across the IP lifecycle
David Stone, partner at White & Case, argues that the government’s planned reforms will modernise and futureproof UK design law, but leave two of the thorniest problems unresolved
Max Scott will join the firm’s IP transactions group in California, becoming the latest Weil IP partner to secure their future
Yonatan Drori, attorney at Drori-Stav IP in Israel, explains why foreign counsel must treat Israel’s patent disclosure requirements as an ongoing obligation, rather than a one-off formality
From Japan to Southeast Asia, domestic and regional firms picked up some of the biggest prizes, while key foreign players maintained momentum
Earlier this month, Managing IP had exclusively reported that the French arm of Taylor Wessing was minded to pull out of the deal
Our latest podcast examines how Weil’s IP practice evolved, where its practitioners could (and will) go next, and which firms and markets stand to benefit from the redistribution of talent
Former Latham partner Chris Henry and transactions lawyer Liza Cotter are heading to the firm as Weil’s IP practice starts to disperse
Rival IP teams return to court for a closely watched appeal over AI and copyright, but observers hoping for answers to some of the technology’s biggest legal questions may be left disappointed
Eight years after its launch, members of the Australian patent firm’s Singapore office explain its growth strategy over the past year
Gift this article