The real standard articulated in Bilski and Alice
Managing IP is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

The real standard articulated in Bilski and Alice

In a session at the AIPLA Annual Meeting yesterday morning, David Wille of Baker Botts examined the Bilski and Alice rulings and suggested that despite the criticisms, the Supreme Court is laying out an alternative approach to the question of patentability

Wille pointed out that one of the major criticisms of the Alice decision was the ruling that abstract idea and performing it on a computer was “not ‘enough’ [sic]” to transform it into a patentable invention but, the decision did not give guidance as to what is considered enough.

Under this test, there is now a spectrum of potentially patentable business method-related subject matter, with technological inventions being mostly patentable. The tough questions, Wille noted, instead lay with computer implemented business methods.

While some observers suggest that the Supreme Court was essentially advocating a “technological arts” test, Wille argued that the Supreme Court had another concerns in mind.

“They importantly emphasized that just because an invention involves an abstract concept, it does not mean that it’s not statutory subject matter, he said. “In fact they went further: they stated that what they were concerned about is tying up the building blocks of human ingenuity.”

Wille noted that the Court in Alice reiterated this idea in several ways, such as references to fundamental business practices.

In light of this, he argued, the lesson may be that the Supreme Court is worried, not so much about how to properly define what constitutes an abstract idea or whether something goes beyond that abstract idea enough to constitute an invention, but rather which abstract ideas are patentable and which ones are not. Namely, those that cover the building blocks of human ingenuity or fundamental business practices.

This test appears to explain the Supreme Court’s rulings in Alice and Bilski, and the PTAB may also be taking this approach. Wille pointed to the PNC Bank case involving a patent for a system that analyzes data and places seals of authenticity on websites. While the PTAB instituted covered business review on other grounds, it rejected a request to do so on Section 101 grounds, finding that the claim was not directed to an abstract concept and that putting the authenticity seal on a website or document was not a fundamental business activity or a building block of the modern economy.

“There’s a suggestion, then, that maybe the line should be drawn looking at whether or not the abstract concept is a fundamental building block,” Wille explained.

more from across site and ros bottom lb

More from across our site

We provide a rundown of Managing IP’s news and analysis from the week, and review what’s been happening elsewhere in IP
Law firms that pay close attention to their client relationships are more likely to win repeat work, according to a survey of nearly 29,000 in-house counsel
EMEA research now open
Practitioners analyse a survey on how law firms prove value to their clients and reflect on why the concept can be hard to pin down
The winner of Managing IP’s Life Achievement Award discusses 50 years in IP law and how even he can’t avoid imposter syndrome
Saya Choudhary of Singh & Singh explains how her team navigated nine years of litigation to secure record damages of $29 million and the lessons learned along the way
The full list of finalists has been revealed and the winners will be presented on June 20 at the Metropolitan Club in New York
A team of IP and media law specialists has joined from SKW Schwarz alongside a former counsel at Sky
The Irish government has delayed a planned referendum on whether Ireland should join the Unified Patent Court, prompting concern about when a vote may take place
With more than 250 winners recognised during the ceremony, there are many reasons to be positive about the health of the IP industry in EMEA
Gift this article