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

Backlash and Negative Press After Microsoft Tells Diversity, Equity, and Inclusion (DEI) People to DIE
Follow-up stories
Censorship as Signal of Opportunity for Reform
It remains sad and ironic that Wikileaks outsourced so much of its official communications to Twitter (now X)
The World Wide Web Has Been Rotting for Years (Quality, Accuracy, and Depth Consistently Decreasing)
In the past people said that the Web had both "good" and "bad" and that the good outweighed the bad
Comoros: Windows Plunges to Record Low of About 6% in Country of a Million People (in 2010 Windows Was 100%)
Many of these people earn a few dollars a day; they don't care for Microsoft's "Hey Hi PC" hype
The Mail (MX) Server Survey for July 2024 Shows Microsoft Collapsing to Only 689 Servers or 0.17% of the Whole (It Used to be About 25%)
Microsoft became so insignificant and the most astounding thing is how the media deliberate ignores it or refuses to cover it
Windows Down From 98.5% to 22.9% in Hungary
Android is up because more people buy smaller mobile devices than laptops
Microsoft Windows in Algeria: From 100% to Less Than 15%
Notice that not too long ago Windows was measured at 100%. Now? Not even 15%.
Microsoft Windows "Market Share" in New Zealand Plunges to 25%
Android rising
SUSE Goes Aryan: You May Not Use the Germanic Brand Anymore (It's Monopolised by the Corporation)
Worse than grammar Nazis
Gratis But Not Free as in Freedom: How Let's Encrypt is Dying in Geminispace
Let's Encrypt is somewhat of a dying breed where the misguided CA model is shunned
 
UEFI 'Secure Boot' Once Again Bricking PCs and Fake Security Models Are Perishing in Geminispace
Let's Encrypt has just fallen again
Links 17/07/2024: New Attacks on the Press, European Patents Squashed Even at Kangaroo Court (UPC)
Links for the day
Gemini Links 17/07/2024: Proponents of Censorship and New Arrivals at Gemini
Links for the day
Links 17/07/2024: School Budget Meltdown and Modern Cars as Tracking Nightmares
Links for the day
This Should Certainly be Illegal, But the Person Who Helped Microsoft Do This is Still Attacking the Critics of It
perhaps time for an "I told you so post"
[Meme] A Computer With an Extra Key on the Keyboard Isn't Everyone's Priority
(so your telling me meme)
Africa as an Important Reminder That Eradicating Microsoft Doesn't Go Far Enough
Ideally, if our top goal is bigger than "get rid of Microsoft", we need to teach people to choose and use devices that obey them, not GAFAM
Billions of Computers Run Linux and Many Use Debian (or a Derivative of It)
many devices never get updated or even communicate with the Net, so exhaustive tallies are infeasible
[Meme] Microsoft is Firing
Don't worry, Microsoft will have some new vapourware coming soon
More DEI (or Similar) Layoffs on the Way, According to Microsoft Team Leader
What happened shortly before Independence Day wasn't the end of it, apparently
[Meme] Many Volunteers Now Realise the "Open" in "OpenSUSE" or "openSUSE" Was Labour-Mining
Back to coding, packaging and testing, slaves
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, July 16, 2024
IRC logs for Tuesday, July 16, 2024
[Meme] Ein Factory
A choice between "masters" (or "master race") is a false choice that results in mass exploitation and ultimately eradication (when there's little left to exploit)
Links 17/07/2024: Open Source Initiative Lies and Dark Net Thoughts
Links for the day
Media Distorting Truth to Promote Ignorance
online media is rapidly collapsing
Android Rises to New Highs of Almost 80% in Cameroon
How many dozens of nations will see Windows at under 10% this coming winter?
Links 16/07/2024: TikTok Ban in Europe and Yandex Split
Links for the day
Gemini Links 16/07/2024: On Packrafting and on Trump Shot
Links for the day
[Meme] Firefox Users Who Think They Know Better Than Mozilla
Enjoy Firebook
Firefox Used to Have About Half the Market in Switzerland, But It Doesn't Stand a Chance Anymore (Chrome Surging This Summer)
Mozilla has managed to alienate some of the biggest fans of Firefox
Microsoft's Biggest Losses Are in Europe This Summer
Microsoft's ability to milk a relatively rich Europe is fast diminishing
How to Make Software Suck and Discriminate Against People at the Same Time
ageism glorified
Bing Was at 2.6% in Russia When LLM Hype Started. Now It's Down to 0.8% (for 3 Months in a Row Already)
The sharp fall of Bing may mean that exiting the Russian market won't matter to anybody
[Meme] Microsoft Seems to be Failing to Comply With WARN Act (by Refusing to Announce Mass Layoffs as They Happen)
since when does Microsoft obey the law anyway?
Microsoft Layoffs Are Still Too Frequent to Keep Abreast of and Properly (or Exhaustively) Classify
The "HR" department knows what's happening, but whistleblowers from there are rare
Bahamas Joined the "5% Windows" Club
statCounter only traces back about 1 in 20 Web requests to Windows
Links 16/07/2024: Salesforce Layoffs and Microsoft's DMARC Fail
Links for the day
Antenna Abuse and Gemini Abuse (Self-hosting Perils)
Perhaps all this junk is a sign of Gemini growing up
Possibly Worse Than Bribes: US Politicians and Lawmakers Who Are Microsoft Shareholders
They will keep bailing out Microsoft to bail themselves out
The Software Freedom Conservancy Folks Don't Even Believe in Free Speech and They Act As Imposters (Also in the Trademark Arena/Sense)
Software Freedom Conservancy was already establishing a reputation for itself as a G(I)AFAM censor/gatekeeper
Djibouti Enters the Windows "10% Club" (Windows Was 99% in 2010)
In Africa in general Microsoft lost control
GNU/Linux Share Doubled in the United States of America (USA) in the Past 12 Months
Or so says statCounter
Even in North Korea (Democratic People's Republic Of Korea) Google Said to Dominate, Microsoft Around 1%
Google at 93.26%
[Meme] The Red Bait (Embrace... Extinguish)
They set centos on fire, then offer a (de facto) proprietary substitute for a fee
Shooting the Messenger to Spite the Message
segment of a Noam Chomsky talk
[Video] Boston Area Assange Defense (Yesterday)
It was published only hours ago
Guinea: Windows Down From 99.3% to 2.7% 'Market Share'
Guinea is not a small country
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, July 15, 2024
IRC logs for Monday, July 15, 2024
What's Meant by "Antenna Abuse" (Gemini)
syndication is not a monopoly in Gemini and if one doesn't condone political censorship, then one can create one's own syndication service/capsule
Microsoft Layoffs and Entire Unit Termination: Diversity, Equity, and Inclusion
What an announcement to make just before Independence Day
Links 16/07/2024: Old Computer Challenge and One Page Dungeon Contest
Links for the day
Microsoft Falls Further and Closer Towards 10% (Windows "Market Share") in Kuwait
more countries entering the "single-digit Windows" (under 10%) club
Gemini Links 15/07/2024: Antenna's Pro-Hamas Bias Revisited and Old Computer Challenge
Links for the day
[Video] Julian Assange, Over One Decade Ago, Cautioning About What the Internet Had Truly Become
video is not new
Homage to Malta
Malta is probably easy for Microsoft to bribe
IRC at 16
Logging has been used for us and against us
In Malta, Android/Linux Has Overtaken Microsoft Windows (According to statCounter)
statCounter milestone?
Links 15/07/2024: China’s Economic Problems, Boeing Under Fire
Links for the day
500 Days' Uptime Very Soon
Good luck doing that with Windows...
Windows Falls Below 20% in Tunisia
A month ago we wrote about GNU/Linux in Tunisia
Links 15/07/2024: Google Wants Wiz and Why "Sports Ruin Everything"
Links for the day
Gemini Links 15/07/2024: Old Computer Challenge and Sending Files via NNCP
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, July 14, 2024
IRC logs for Sunday, July 14, 2024