On Monday, the scales of justice will tip one way or the other in the Bilski business-method patent case. The Supreme Court is scheduled to wrap up its current term June 28th with only four outstanding decisions remaining. Barring an order for re-arguments in the case next term, the technology patent landscape may significantly shift with this decision. At stake are whether mental-process patents such as those currently held by technology companies, researchers, and other innovators are actually patentable. Since the State Street Bank case in 1998 removed the physical change or machine test in patents, a flood of patents have been issued for software, biomedical, and technology ideas. As discussed in my earlier blog post, upholding the lower court's decision to reinstate the physical change or machine test throws all existing and future technology patents into turmoil.
Keep your eyes on the Court's website for the latest decisions.
UPDATE: Apologies for the delay, here is the decision.
** I am an attorney with a firm in Atlanta, GA., contributing as a guest blogger on behalf of Errata Security. These are just my personal views and thoughts, not intended to reflect the views of anyone else nor intended to provide advice, legal or otherwise.
Showing posts with label patents. Show all posts
Showing posts with label patents. Show all posts
Thursday, June 24, 2010
Monday, November 09, 2009
Law & Tech Geek Alert: Future of Software and Technology Patents in Supreme Court's Hands
by Elizabeth Wharton **
The future of thousands of technology patents is playing out in front of the Supreme Court today. At stake are patent protections, possible infringement lawsuits, and millions of dollars of profits to inventors. The Bilski case asks the Supreme Court to determine whether business-methods (those that are more of a mental-process as opposed to those tied to manufacturing or a tangible product) may be patented. Starting with the State Street Bank decision in 1998, the Federal Circuit recognized that software programs that transform data, but do not physically transform an article or create a machine, are patentable. Thousands of patents were issued to technology companies, researchers and innovators based on this decision.
When Bernard Bilski’s and Rand Warsaw’s patent application for a unique set of mathematical formulas to crunch numbers and manage risks associated with weather patterns and utilities was rejected 13 years ago, a landmark patent case was born. The patent office determined that their process dealt with solving a purely mathematical problem and rejected their application. Mr. Bilski and Mr. Warsaw fought for their patent all the way through the court system. In October 2008, the Federal Circuit upheld the patent office decision, reigning in their earlier State Street Bank decision, and determined that an application must meet a machine or transformation test in order to be patentable.
The Federal Circuit's Bilski decision marked a dramatic shift from the past ten plus years and sparked a controversy in the current technology innovation era - not only for software companies but also biomedical and technology companies. Over 67 amicus briefs were filed in connection with the Bilski case. Among those filing briefs in support of one side or the other in Bilski are the likes of computer and technology giants IBM, Novartis, Microsoft, Google, Symantec Corp., and others such as Bank of America and clothier L.L. Bean. At risk are software, technology, and biomedical patents held by such companies as IBM, Nortel, Medtronics, and many others. As pointed out by Judge Newman in her dissent, many technology innovations and inventions today are novel ways to approach data and information.
Narrowing technology patents to exclude processes that produce a “useful, concrete, and tangible result”, per the State Street Bank decision, will stifle technology innovation and product development. More and more users will listen to a presentation, take out the original and unique content, and ultimately circumvent the inventor. The inventor of this content will not have the patent protections for their unique solutions and ideas. Part of the inventor’s incentive in working to develop the solution has been stripped away.
The amicus briefs and legal arguments today are just the start of the Supreme Court’s review of the case. Legal geeks and technology geeks, along with thousands of patent holders, will be anxiously watching and waiting for the Supreme Court’s final decision in the months to come.
(For more in-depth discussions about this case and intellectual property law, I recommend the following websites - Law.com and IPwatchdog.com.)
** Reminder, these are just my thoughts and are not intended to provide advice, legal or otherwise. While I am a lawyer, I am not your lawyer.
The future of thousands of technology patents is playing out in front of the Supreme Court today. At stake are patent protections, possible infringement lawsuits, and millions of dollars of profits to inventors. The Bilski case asks the Supreme Court to determine whether business-methods (those that are more of a mental-process as opposed to those tied to manufacturing or a tangible product) may be patented. Starting with the State Street Bank decision in 1998, the Federal Circuit recognized that software programs that transform data, but do not physically transform an article or create a machine, are patentable. Thousands of patents were issued to technology companies, researchers and innovators based on this decision.
When Bernard Bilski’s and Rand Warsaw’s patent application for a unique set of mathematical formulas to crunch numbers and manage risks associated with weather patterns and utilities was rejected 13 years ago, a landmark patent case was born. The patent office determined that their process dealt with solving a purely mathematical problem and rejected their application. Mr. Bilski and Mr. Warsaw fought for their patent all the way through the court system. In October 2008, the Federal Circuit upheld the patent office decision, reigning in their earlier State Street Bank decision, and determined that an application must meet a machine or transformation test in order to be patentable.
The Federal Circuit's Bilski decision marked a dramatic shift from the past ten plus years and sparked a controversy in the current technology innovation era - not only for software companies but also biomedical and technology companies. Over 67 amicus briefs were filed in connection with the Bilski case. Among those filing briefs in support of one side or the other in Bilski are the likes of computer and technology giants IBM, Novartis, Microsoft, Google, Symantec Corp., and others such as Bank of America and clothier L.L. Bean. At risk are software, technology, and biomedical patents held by such companies as IBM, Nortel, Medtronics, and many others. As pointed out by Judge Newman in her dissent, many technology innovations and inventions today are novel ways to approach data and information.
Narrowing technology patents to exclude processes that produce a “useful, concrete, and tangible result”, per the State Street Bank decision, will stifle technology innovation and product development. More and more users will listen to a presentation, take out the original and unique content, and ultimately circumvent the inventor. The inventor of this content will not have the patent protections for their unique solutions and ideas. Part of the inventor’s incentive in working to develop the solution has been stripped away.
The amicus briefs and legal arguments today are just the start of the Supreme Court’s review of the case. Legal geeks and technology geeks, along with thousands of patent holders, will be anxiously watching and waiting for the Supreme Court’s final decision in the months to come.
(For more in-depth discussions about this case and intellectual property law, I recommend the following websites - Law.com and IPwatchdog.com.)
** Reminder, these are just my thoughts and are not intended to provide advice, legal or otherwise. While I am a lawyer, I am not your lawyer.
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