2 Hurdles Faced By Business Method Patents

Law360, New York (August 26, 2009, 11:09 AM EDT) -- In In re Bilski, the Federal Circuit held that claims directed to a method of managing consumption risk costs of a commodity were not directed to patent-eligible subject matter.[1]

The Federal Circuit concluded that, under Supreme Court precedent, the “governing test for determining patent eligibility of a process under § 101” is whether the process is “tied to a particular apparatus” or transforms an article to “a different state or thing,” i.e., the machine-or-transformation test.[2]

Applicants have frequently claimed business method inventions as machines in an...
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