For the first time in over 30 years, the US Supreme Court has ruled on what types of patent claims that rely on the use of computer software are eligible for patenting. The Court stopped short of throwing out software patents altogether, but limited the scope of patent protection for such inventions and, importantly, afforded guidance that might prove useful for those seeking to protect life-science inventions such as diagnostics.
The case at issue — Alice Corporation versus CLS Bank International — was a lawsuit over the eligibility of several patents that describe a method for mitigating risk during financial transactions, and the use of a computer to carry out this method. The Court held that the scheme for mitigating financial risk, a well-known economic practice referred to as an 'intermediated settlement', is classed as an abstract idea. Together with laws of nature, abstract ideas are not eligible for patenting; whether or not a computer is used in the patent makes no difference to patent eligibility. “According to the Court, it is not sufficient to combine an abstract idea with a computer and simply implement that idea,” says Kirsten Grüneberg, an Attorney at Law at Oblon and Spivak, Alexandria, Virginia, USA.
