Supreme Court Finally Gets Serious About Patents

“The U.S. Supreme Court grappled with the issue of software patents Monday in the keenly watched case of Alice Corp v. CLS Bank.” The question at issue concerns eligibility for software patents. As IAM reported, “In deciding the case, the court is confronted with the issue of how to chart a course between, on the one hand, the possibility of creating a patent system so strong that it puts all the power in the hands of the patent holder and, on the other, a more relaxed, less patent friendly system which could undermine the incentive to innovate. To some present in the packed courtroom this morning, the way the oral arguments went indicated that for the first time the nine justices appear to appreciate the broad impact of what is at stake when they decide patent disputes.”

“The problem is that if you tighten the Section 101 [patent eligibility] hurdle too much then some valid inventions won’t even get examined,” observed Finnegan partner Linda J. Thayer. “I think all of Alice’s patent claims will remain invalid, the question is—how do you get there?” A decision is expected in late June 2014.