Rewards Method Patents Invalidated Under Alice, Bilski

Law360, New York (September 3, 2014, 6:07 PM EDT) -- A Federal Circuit judge sitting by designation in Texas district court ruled Tuesday that two patents on a computer-based method for converting airline customers' loyalty award credits are invalid in light of the U.S. Supreme Court's Alice Corp. and Bilski rulings because they claim only an abstract idea.

In awarding judgment on the pleadings to seven airlines, Circuit Judge William Bryson said two patents held by Loyalty Conversion Systems Corp., U.S. Patent Numbers 8,313,023 and 8,511,550, are invalid in light of the Supreme Court’s recent decisions in Bilski v. Kappos and Alice Corp. Pty. Ltd. v. CLS Bank International. In both...

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