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Posted: November 19th, 2022
Facts
Alice Corporation that owns several patents and uses computer to calculate the intermediate settlement risk that a party to an agreed upon financial exchange will satisfy its obligation. CLS bank international which operates a network that facilitates financial transactions filed a lawsuit against Alice Corporation seeking a declaratory judgment that Alice corporation patents are invalid. The US district court held that claim where patents ineligible because they merely uses computers directed to the abstracts idea of minimizing risk. Alice Corporation appealed to the US court of appeal.
Issue
Are the claims patents eligible or are they patents in-eligible abstract ideas.
Law
The abstract ideas category embodies the long standing rule that an idea itself is not patent able. The concept of intermediate settlement is a fundamental economic practice long present in our system of commerce. Viewed as a whole, petitioner’s method claim simply recites the concept of intermediated settlement as performed by a generic computer. Under our Analysis
Based on the law and its stipulation, Alice Corporation of using generic computers implementation adds nothing of substance to the underlying abstract of idea of intermediate settlement and hence the patent is declared as ineligible.
Conclusion
Alice Corporation did not act ethically and since it did not fulfill the terms of the corporation. Through the ruling given by the Supreme Court, CLS banking international will be compensated for the damages.
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