October 30, 2008
Biksi gets Bilked by the Federal Circuit
In a key patent decision released today, the Court of Appeals for the Federal Circuit, sitting en banc, has stated that the proper test for patentability of a process patent is the "machine or transformation" test previously set forth by the U.S. Supreme Court in Gottschalk v. Benson, 409 U.S. 63 (1972). According to the Electronic Frontier Foundation, the case, In re Bilski, No. 2007-1130 involved a patent on a "method of managing the risk of bad weather through commodities trading." A classic so-called business method patent.
The Federal Circuit held that the primary claim under the patent was not patentable under the machine or transformation test, effectively putting a stake in the heart of so-called business method patents. The Court took the time to explain how the machine or transformation test does allow patents for transformations of electronic information, thus allowing patentability of electronic processes. The Court referenced as an example of a patentable process a system that takes electronic representations of body parts and displays them on a computer screen - leaving open software patentability. And, the Court explicitly stated that business methods were not per-se unpatentable. But, the decision will certainly call into question the ability of companies to patent business methods and software.
For more information see:
The Federal Circuit held that the primary claim under the patent was not patentable under the machine or transformation test, effectively putting a stake in the heart of so-called business method patents. The Court took the time to explain how the machine or transformation test does allow patents for transformations of electronic information, thus allowing patentability of electronic processes. The Court referenced as an example of a patentable process a system that takes electronic representations of body parts and displays them on a computer screen - leaving open software patentability. And, the Court explicitly stated that business methods were not per-se unpatentable. But, the decision will certainly call into question the ability of companies to patent business methods and software.
For more information see:
Labels: patents
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