By Abigail Rubenstein

Law360, New York (January 20, 2012, 7:02 PM ET) -- The Federal Circuit on Friday held that Dealertrack Inc.'s patent for a computer-aided system that facilitates financing transactions between car dealers and lenders is invalid under the U.S. Supreme Court's Bilski decision because the process covered is too abstract.

In July 2009, a California federal judge found U.S. Patent Number 7,181,427 was invalid after it applied what was then the definitive, so-called machine-or-transformation test, granting summary judgment to accused infringers Finance Express LLC and RouteOne LLC.

The Federal Circuit majority affirmed the lower court's judgment on...