Bonum Certa Men Certa

How Patent Lawyers Analyze Alice v. CLS Bank

Summary: Breaking down a patent lawyer's analysis of a Supreme Court's decision that seemingly invalidated hundreds of thousands of software patents

SHORTLY after the Alice v. CLS Bank ruling we gave several dozens of examples where patent lawyers either denied the impact of this ruling/decision on software patents or simply downplayed it. We now know that they were wrong -- not necessarily lying -- as software patents are being squashed by the patent office and the courts. Lawsuits have almost halved in number. The same thing happened after In Re Bilski; in sheer numbers (number of articles), patent lawyers tried to impose/project their will onto the law, overriding what's true and what shall become legal practice. It's rather appalling. They capture the system. Since many journalists quote these people (especially in the corporate media), it matters a lot.



"These "legal" publications tend to be more like cults of subcultures where the reality can be vastly different from that which everyone else observes."Despite all this evidence, some patent lawyers would rather continue to ignore the facts or simply lie (at the very least distort). The other day Kelley Drye & Warren LLP published a so-called 'analysis' in a legal publication. These "legal" publications tend to be more like cults of subcultures where the reality can be vastly different from that which everyone else observes. David W. Long, from the Washington (DC) office of this firm, wrote this:

Patent System Benefits From Supreme Court Guidance In Alice v. CLS Bank



Benefit, right? Tell us more.

This case primarily impacts software- or computer-implemented inventions. Alice dealt with a patent on a generic computer implementing a conventional business practice of using a third-party intermediary (clearing house or escrow agent) to mitigate the “settlement risk” that a party cannot fulfill its obligation in a transaction. Each side’s consideration is exchanged once the intermediary receives the required consideration from both sides. The issue presented was whether someone could patent using generic computer components to implement “the abstract idea of intermediate settlement” that is a long-standing “fundamental practice” and “building block of the modern economy.” The Court said no.


Right. No means no. Go on then.

The short answer is: incrementally. There’s nothing earth shattering about Alice.


Except the invalidation of many software patents? Right, let's just ignore that.

The Court applied prior decisions to a new set of facts, resulting in incremental guidance on this nuance issue. The bigger impact of Alice is that it resolved a stalemate in the Federal Circuit appeals court that is tasked with developing patent law.


CAFC has been thoroughly discredited in this area and it was found to be corrupt. It's quite a miracle that it continues to exist, albeit some corrupt people got ousted.

Here, the Federal Circuit judges agreed that the patent claims were invalid, but they disagreed as to why and, thus, gave no guidance to practitioners. Stalemates and attendant uncertainty often happen in these gray mushy areas, so it’s significant that the Supreme Court decision breaks the stalemate to keep progress flowing.


The problem is, none of the judges (or justices) actually understands computers properly; none can write a computer program. Why are people with a fancy gown, a wooden hammer (gavel, but probably no longer a wig) deemed more competent to rule on matters such as software patents and APIs than technical folks who most likely don a T-shirt and a portable music player? Legal threatre is doing a great deal of damage to the technical community and this hurts customers (that's everyone) too.

There has been incremental development on what is an unpatentable abstract idea, and that development should continue. So far, the Court has addressed patent eligibility in cases that involved well-known, or old, abstract ideas: Bilski was about financial hedging, and Alice was about third-party intermediaries to settle a financial contract. The really interesting question is: what do the courts do when someone develops a wholly new abstract idea?


If it's abstract, then it does not matter if it's new.

When someone first intuited, for example, that 2+2=4 and 2*2=4 and 22=4, this was a completely new insight. While it may have contributed greatly to society to know, it is still a fundamental building block that could not be patented from day one. If it were patented, you couldn’t build a car or anything else without paying a license fee every time that fundamental mathematical relationship was used. So we may see interesting developments in the way courts handle generic computer implementation of new abstract ideas, though such case law development will be a marathon, not a sprint.


Mathematics was not much of a new insight. It was only formalised at some later stage, using some particular notation, e.g. decimal numbers (base 10). At no stage was a patent suitable and just because we encode mathematics in binary form now (or let machines do so) does not mean we are entitled to patents.

Some patents will have this issue, but that’s par for the course since any patent might be challenged on any number of grounds, such as prior art or definiteness. The news is that Alice gave us helpful tools that practitioners can use in evaluating patents, and we will see development in this area near term. Already, we’re seeing that more district courts are invalidating patents on this ground at the motion-to-dismiss stage, which is very early in the litigation process compared to the practice before Alice.


So here he is admitting that Alice v. CLS Bank did in fact change things. Why not take this further and state that software patents are now in trouble or perpetual demise? Well, granted, as even Mr. WatchTroll himself (IP Watchdog) admitted a couple of months ago, if you tell the "legal community" that software patents (or any patent type for that matter) are going away, you're likely to be ridiculed or chastised. The problem is, the press likes to quote people who are patent lawyers for insight on patent law.

The bottom line is, whenever reading some so-called 'analysis' from patent lawyers about software patents, be careful. They are not writing like journalists but more like marketing people trying to attract potential clients. In the corporate press, so-called 'journalists' treat these 'marketing people' as credible authority on these subjects.

Recent Techrights' Posts

Links 16/02/2026: Barack Obama Responds to Racist Cheeto and Benjamin Mako Hill Studies Online Communities
Links for the day
IBM Reduces the Thresholds for Acceptance (and the Salaries)
Are chatbots good enough as IBM staff?
When It Comes to Rust, Keep All the Eyes on the Ball (Technical and Legal Perils, Sustainability Questions)
It's not about security or politics
Social Control Media is Just a Digital Weapon
Social control media is not social and not media
 
The Southern California Linux Expo (“SCALE”) or SCALE 23x Becomes Microsoft
It's not supporting the event, it is buying it.
Where Microsoft's Bing Cannot Even Reach 1% "Market Share"
Looking at "I" countries
Microsoft to Focus on Name-Dropping Buzzwords to Distract From Declining Business, IBM RAs (Layoffs) With Staff Stack-Ranked
Calling everything cloud or reclassifying as "AI"
Another EPO Strike One Week From Now, Local Staff Committee Munich to Discuss It This Week
Campinos MIA while Office staff goes on strike at least 4 times
Gemini Links 16/02/2026: Task Completed by Avoidance and "Playing Again With Akkoma"
Links for the day
Happy Birthday (or Anniversary) to SoylentNews
"Happy Birthday SoylentNews"
Techrights' Architecture
Stability is the main goal
Linux Foundation Continues Falling Off a Cliff in Geminispace
Gemini Protocol will turn 7 this summer
Links 16/02/2026: cURL’s Daniel Stenberg Asserts That Slop is DDoSing Free Software, But Still Uses a Plagiarism and GPL-Violating Blender (Microsoft GitHub)
Links for the day
The Techrights Community Never Needed Money, Only Goodwill
We accomplish things by a track record of suppressed facts
"AboutCode" is a Microsoft Proxy and Microsoft's Acquisition of the OSI Advances Via OSI Moles
presenting direct evidence anybody can verify
They Will Call Smart People "Luddites"
Is society "seeing the light"?
Microsoft Amutable Already Reveals That Its Focus Is Not Linux, It'll Promote "Remote Attestation"
This is basically an attack on Software Freedom, even if they toss around the brand "Linux"
More People in Chad Move to GNU/Linux
Last year we began to see GNU/Linux rising there - a trend which continues this year
Dr. Andy Farnell on How Universities and Culture of Education Got Crushed by "Technofascist Nightmare"
Farnell says he "already soft-quit in [his] mind"
Debt of Broadcom Grew by More Than 50%, Broadcom is Deeper in Debt Than Google
Expect many more cuts
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, February 15, 2026
IRC logs for Sunday, February 15, 2026
Links 15/02/2026: Slop, Politics, and Gemini
Links for the day
Small is Beautiful (in Cascading Style Sheets/Inheritance Rules)
If done correctly, pages can take a tenth of a second to fully load
Microsoft Has Fallen to New Lows in Hong Kong This Year
That Windows "market share" falls there is perhaps expected
Free Software Foundation (FSF) Raised About 1.5 Million Dollars This Winter, Almost 50% More Than in All of 2024 Combined
Verbal advocacy goes a long way
Spread the Word About EPO Strikes and Patent Injustices in Europe
Corruption in Europe is a real thing
The Register MS is Promoting Slop, Promotion Connected to Microsoft (Trying to Replace Judges With Microsoft)
marketing spun as "science"
He Did Not Have Enough Souls
A lot of the subjects we cover here no other site dares touch
"Mix Vale" is a Slopfarm
3 "articles" about "ubuntu"
Links 15/02/2026: Roy Medvedev Dead at 100, Rise of "YouTube Politicians"
Links for the day
Links 15/02/2026: How Alexey Navalny Was Executed by Putin, Erdogan Helping Iran
Links for the day
IBM Fedora Keeps Promoting Slop, Red Hat Has Been Turned Into Chaff and Trash to Help IBM's Stock (With "AI" Storytelling)
Red Hat's Fedora is an old brand (20+ years). It no longer stands for what it meant to people in the Fedora Core days (I was a Fedora user back then).
What IBM Said About 2026 Layoffs and What's Happening in Practice
t'll leave IBM at the very bottom, in due course (customers will notice something profound has changed)
Gemini Links 15/02/2026: "Already Midway February" and Loadbars Remembered
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, February 14, 2026
IRC logs for Saturday, February 14, 2026
Microsoft's Bing Down to 0.5% in Armenia
Microsoft does not want shareholders to see this
Libel by Bots: Unexplored Legal Area?
Liability can be traced back to the operator
Maybe Obvious, But Merits Repeating: A Lot of "Demand" for Slop is Faked, Manufactured, Fabricated by Dark Patterns, Bundling, Media PR (Deception/Hype) Campaigns
Over the past few years many products and services got rebranded as "AI"
xAI and X (Twitter) Live on Borrowed Time, It'll Get a Lot Worse Fast
Being associated with a child porn site formerly known as "Twitter" is odorous to say the least
Microsoft is Lobbying Brussels via Opensource.org and OSI
The new (GAFAM) management at OSI is not serving the OSI's original mission
Will Lockett's Newsletter: Microsoft became Microslop and Windows users are "flocking" to GNU/Linux "to escape the mess"
"Users are fed up and jumping ship from Windows to Mac or Linux. In fact, it appears that Windows has lost 400 million users since 2022!"
Photographic Collections
There are going to be over 100,000 JPEG, PNG, and GIF files by the time we turn 20
Norway Curbs Social Control Media as It Harms Norway's Society
A decrease from 11% to just 1.87% is possible to reason about
Accomplishments of Our Community
Why I enjoy writing in Techrights
Microsoft Invented a Slop CEO ("AI CEO") Because Real Interest in Slop is Waning, So It's Just Faking Its Prominence
It's noise
Google Promoting Slop, Not Journalism
The truth of the matter is, Google is part of this problem and it doesn't seem to care
Another IBM Company (Spawned by IBM) is Hiding the Scale of Layoffs, Just Like Red Hat and Kyndryl
Why is the scale of the layoffs there shrouded in secrecy?
Links 14/02/2026: Financial Woes in Hong Kong and "Hong Kong Journalists Face ‘Precarious’ Future After Jimmy Lai Jailed"
Links for the day
Gemini Links 14/02/2026: Fish Shell and Meta Slash-commands
Links for the day
Links 14/02/2026: "Bias and Toxicity in" Slop, Microsoft's Vista 11 System Update Breaks Systems Again
Links for the day
Links 14/02/2026: "Suppression of Free Speech" and "Climate Change Puts Winter Games on Thin Ice"
Links for the day
EPO "Cocaine Communication Manager" - Part I - Getting the Word Out About What the 'Alicante Mafia' Did to Europe's Second-Largest Institution
Can't everyone in the European media agree that letting cokeheads run Europe's second-largest institution is a terrible idea?
Richard Stallman in the United States - Part I - Huge Audience (Offline and Online), 'Cancel Culture' Attempted and Failed
the comeback of Richard Stallman (RMS) in the United States
GitHub Cannot Survive for Much Longer
Microsoft is trying to just hide the debt
Ed Zitron: Microsoft Is A Decaying Empire That Bet The Future On Making In Excess Of $500 Billion In New Revenue Within The Next 4 To 6 Years From AI — And It Hasn’t Made A Dime In Profit Yet
Microsoft bets its future on a bunch of nothing
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, February 13, 2026
IRC logs for Friday, February 13, 2026
Gemini Links 14/02/2026: "Throwback VR Headset" and OFFLFIRSOCH 2026
Links for the day