Business Methods Patents in Jeopardy
Information Today, Vol. 26, No 1, p. 15, January 2009
3 Pages Posted: 11 Oct 2013
Date Written: January 1, 2009
Abstract
One other contributor to the rise in patents has been the increasing use of “business method” patents. U.S. patent law allows patents to be issued for “any new and useful process”, generally identified as a particular series of steps required to complete a specific task. The use of computers to achieve those tasks with the end result being a method of engaging in a particular business, such as e-commerce, was recognized in the late 1990's by the USPTO as a patentable business method. This was confirmed by a federal court in 1998. As result, the number of patents issued under the USPTO classification that included “business practices” tripled.
One such business method patent application sought to patent a method of hedging risk in commodities trading. The proposal outlined a series of steps that mainly involved the buying and selling of commodities through a third party which would isolate the buyers and sellers from risk. The USPTO rejected this application and the applicant appealed. The October 30 decision of the Court of Appeals for the Federal Circuit rejecting the patent, In Re Bilski, is being identified as a landmark decision that raises questions about the continuing viability of both new and existing business methods patents.
Keywords: patents, business methods, Bilski, transformation
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