Bonum Certa Men Certa

Alice v CLS Bank (SCOTUS, 2014) Has Had a Profound Effect on 2017 as Nearly No Software Patents Upheld at a High Level

The Court of Appeals for the Federal Circuit (CAFC), which birthed software patents, no longer wants them

The year 2014



Summary: As 2017 nears its end (less than two weeks left), a look back reveals a terrible year for proponents of software patents and a milestone for opponents of software patents

THE latest battle is won, but not yet the war. Following Alice the USPTO rejects many software patents and CAFC, the highest court below the US Supreme Court (SCOTUS), is no longer interested in software patents. It rejects these virtually all the time. Lawyers are still shaken by this de facto end/ban of software patents (in the US at least) because it harms their income. They only care about their cash register. 6 days ago a leading publication of patent lawyers wrote about it as follows:

I’m gonna weasel out and say they’re both good points. Some software patent owners do continue to press claims that might arguably have been eligible five or 10 years ago, but clearly are not any more. As of August, the Federal Circuit had summarily affirmed more than 50 ineligibility opinions, according to research by Boston University’s Paul Gugliuzza and Stanford’s Mark Lemley. By the time those cases reached appeal (and probably far sooner), those patent owners were forging ahead with slim to no chance.

On the other hand, U.S. District Judge Gregory Sleet of Delaware socked Inventor Holdings with fees for all of the litigation dating back to when the Supreme Court decided Alice v. CLS Bank in 2014.

To affirm, the Federal Circuit indulged a fictional world where the law of patent eligibility became crystal clear the day Alice was decided, at least for patent claims involving “implementations of economic arrangements using generic technology,” such as the Inventor Holdings patent.


Alice v CLS Bank was one among several relatively recent (in SCOTUS terms) decisions in which SCOTUS overturned a CAFC decision. Where CAFC had promoted/emboldened patent maximalists the Justices at SCOTUS put an end to that. Faruki Ireland Cox Rhinehart & Dusing PLL wrote about Impression v Lexmark a few days ago. It's one among the very latest SCOTUS decisions to overturn CAFC decisions. SCOTUS is pretty clear about patents; these monopolies have gone way too far in terms of scope, venue-shifting and so on. Justices at SCOTUS recognise this. They are gradually putting an end to that.

So what has the patent microcosm got left to do? Usually finding loopholes. They try to patent software in spite of the restrictions. Here's a new example that says: "Securing intellectual property (IP) can be a major hurdle for startups at the best of times. But software – and in particular AI — brings its own unique challenges."

"AI" is just another buzzword and law firms try to exploit it to patent software even though software patents are pretty much banned (not officially).

How about blockchain patents? We wrote quite a lot about these earlier this year and it seems pretty clear that it's a bubble. Well, here's a new press release that shows the ongoing gold rush [1, 2]. Never mind if such patents are most likely void. Maybe these sneak past examiners. Maybe past PTAB, too. Maybe district courts. But CAFC is not likely to tolerate these anymore.

The times are changing. Tough time for patent maximalists, no doubt...

See what happened in Amgen v Sandoz (CAFC) some days ago:

The Federal Circuit has ruled that Sandoz did not forfeit its preemption defence and the BPCIA preempts state law remedies in its biosimilars dispute with Amgen. The decision makes clear that brand biologic companies have no remedies available against a biosimilar applicant who is refusing to engage in the patent dance


Here's another patent maximalist weighing in:

On remand, the Supreme Court directed the Federal Circuit to determine whether the failure to provide the information and data [under €§ 262(l)(2)(A)] is a violation of California law of unfair competition and conversion.

In its decision here, the Federal Circuit holds that the BPCIA preempts any state laws that would create liability for failure to comply with the requirement for providing information and data.


This isn't about €§ 101, but it's still interesting as it shows a change in views. CAFC is no longer what it used to be. Not even close... Rader is out and the tune has changed.

Alice at SCOTUS (the software patents eliminator) causes trouble not only for classic patent trolls but for a variety of entities which exist solely for litigation purposes. Even Kluwer Patent Blog, which typically focuses on Europe, wrote about it four days ago:

Affirming the district court’s decision, the Federal Circuit agreed with the district court’s reasoning that, once the Supreme Court issued its decision in Alice Corp. v. CLS Bank International in June 2014. 134 S. Ct. 2347 (2014), the patent infringement claims were objectively without merit and should have been voluntarily withdrawn.


This is the effect of Alice. The patent microcosm tries to 'scandalise' Alice, but it was a rational and long-overdue decision. The CCIA's Josh Landau, writing in Patent Progress 3 days ago, tackled the use of the term “Alice Storm” -- a term which is being spread by proponents of software patent (who still try to 'scandalise' SCOTUS).

Landau said this:

You might be familiar with Bob Sachs’ term “Alice Storm.” Sachs and his co-authors over at Bilski Blog argue that “Alice Corp. v. CLS Bank has had a dramatic impact on the allowability of computer implemented inventions.”

I disagree, and some newly released data from the Patent Office seems to back me up. Alice has had a limited impact overall, and much of that impact is centered on patent applications that were drafted before Alice (and her Federal Circuit children, like DDR Holdings and McRO) was decided. For the “Alice Storm”, you don’t even need an umbrella.


And on it goes...

Alice was a case of justice, not politics. It was not a "storm" but a ruling at the highest level. Don't let the patent extremists distract from that...

CAFC was also mentioned in relation to Arendi and €§ 103 a few days ago. IP Watch explained that "[s]ince the U.S. Court of Appeals for the Federal Circuit issued its opinion in Arendi S.A.R.L. v. Apple Inc. last August,[1] many patent commentators have asserted that the decision marked a significant change in the analysis of obviousness under 35 U.S.C. €§ 103, especially as a weakening of single-reference obviousness grounds. Notwithstanding this decision, petitioners and the Patent Trial and Appeal Board have continued to rely on single-reference obviousness to assert and find that claims are obvious."

Well, the the Patent Trial and Appeal Board (PTAB), which we covered in the previous post, has become an Alice-enforcing mechanism and more generally a SCOTUS-enforcing mechanism. SCOTUS will likely cement PTAB's role in the new year. That's the consensus even among PTAB foes.

And speaking of PTAB foes, the most anti-PTAB site, Watchtroll, has just promoted this long new article from Gene Quinn, who is speaking to the choir (comments are pro-software patents). "Software Patent Eligibility at the Federal Circuit 2017" is his headline and it's a long list of software patents rejections, including for example RecogniCorp, LLC v Nintendo Co. Quinn fails to reveal his bias; he starts by whining about SCOTUS and only then lists the cases:

The judicial exception at play when computer implemented inventions are claimed is the abstract idea exception. Unfortunately, the Supreme Court has never defined the phrase abstract idea, and neither has the United States Court of Appeals for the Federal Circuit. Similarly, there is no definition for significantly more. Therefore, in practice, deciding whether a claimed invention is directed to an abstract idea and/or adds significantly more than the abstract idea has proved to be rather subjective. Notwithstanding, the United States Patent and Trademark Office has created a Quick Reference Guide based on current case law.

[...]

[On RecogniCorp, LLC v Nintendo Co.:] The patent in question, U.S. Patent No. 8,005,303, sought to encode images in a way that required less memory and bandwidth.


There's no conclusion in this article, maybe as the conclusion would have to be that software patents are very dead at CAFC and Watchtroll does not wish to spell it out.

RecogniCorp, LLC v Nintendo Co. (Supreme Court) was also recalled by Patently-O a few days ago. There are no patents on algorithms anymore, so no 'joy' for RecogniCorp. That's just the new reality. Whether patent extremists accept it or not should not matter; they're not, after all, arbiters of law.

Recent Techrights' Posts

Defending Women Isn't a Crime, Everybody Can Agree on That
Their culture is unlike ours
EPO "Cocaine Communication Manager" - Part VI - Influx of Spaniards and Portuguese Workers (+77%) at Europe's Second-Largest Institution, Led by the 'Alicante Mafia'
There is now data supporting this assertion, new and complete data in fact
Nobody is Safe at IBM (or Red Hat)
There is no job security at IBM
Bad faith: Hugo Roy knew FSFE impersonating FSF before French tribunal, colleagues deceived
Reprinted with permission from Daniel Pocock
 
Over 1,500 EPO Workers Went on Strike Last Week
a new publication which celebrates some accomplishments of industrial actions and calls for further actions
Madame Streisand Wanted to Censor The Web, Instead She 'Created' a New Term, "Streisand Effect"
It is basically an own goal
Solicitors Regulation Authority (SRA) Failed to Detect Fraud in Law Firms... Until It Was Too Late
Earlier today we contacted some more politicians about this and received mail from them as well
Our EPO and IBM Coverage Bears Fruit
In case insiders want to get in touch with us, please ensure or at least try doing so securely
Links 03/03/2026: "Scam Altman in Damage Control" and Oil Traffic Disrupted
Links for the day
Gemini Links 03/03/2026: Phones, LLMs, and Changes on the Web
Links for the day
Richard Stallman Confirms Talk in Bern Next Week
Dr. Stallman has just formally confirmed his third talk this month in Switzerland
GNU/Linux at All-Time High in Guam
there are many computers in that island
Microsofters' SLAPP Censorship - Part 1 Out of 200: Claim No. KB-2024-001270 in a Nutshell
abuse of process by a law firm working for an American who was arrested for strangling women and another American whose own spouse calls a "rapist"
When EPO Team Managers (TMs) Are Harassing People Who Strictly Apply the European Patent Convention (EPC) in Patent Examination
There are two strikes planned for this month
Confirmed: Using Slop Gets You Fired
Let the story of Benj Edwards be a cautionary tale
Links 03/03/2026: "No one wants to read your AI slop" and "chatbots in the kill chain"
Links for the day
EPO and "Equivalent to More Than 100 Days of Strike"
The industrial actions continue and already have a positive effect
Streisand Effect, the Microsoft Way
Microsoft has once again proven the Streisand Effect
Keeping Track of IBM Layoffs in March 2026
IBM depends on bribery
GNU/Linux Measured at 7% in Yemen
Windows is too hostile and dangerous
Links 03/03/2026: Security Breaches, Iceland Wants EU Membership, and "Wall Street–Backed Lawmakers Want to Help Banks Gouge You"
Links for the day
Queensland Health Payroll System: IBM billion-dollar-blowout inquiry
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, March 02, 2026
IRC logs for Monday, March 02, 2026
Gemini Links 03/03/2026: GrapheneOS and Keyboard Shortcuts
Links for the day
Tomorrow should be sunny (at long last!) and a generally productive dayProductive Week Ahead
Tomorrow should be sunny (at long last!) and a generally productive day
Only One Slopfarm Seems to Have Targeted "Linux" Today
It certainly does feel like the slop hype is reaching the "late life crisis" and companies that benefited from this bubble are overdue for a day of reckoning
Microsoft Mass Layoffs: Being Sacked at 1AM in the Morning
Watch what happens to Microsoft employees who get pregnant
Links 02/03/2026: More Social Control Media Bans, Climate Change Woes, and "Journalist With Germany's Deutsche Welle Arrested in Turkey"
Links for the day
Gemini Links 02/03/2026: Small Phones, "I 3D Printed My Brain", and "Managing 5 Servers at Once with tmux"
Links for the day
IBM is Trying to Hide Mass Layoffs, Not Only With NDAs and 'Scripted' LinkedIn Posts
From what we can gather (screenshot above), today many people leave IBM and Red Hat
Richard Stallman is Giving a Public Talk This Week (Friday in Lucerne School of Computer Science and Information Technology)
His birthday is just around the corner.
Windows Falls to New Low in World's Largest Population (India)
Windows is now down to 7%
Never Miss a Good Opportunity to Shut Up and Drink Coffee
Threats come at a cost; each time you issue a threat you stigmatise yourself as a bully
Last Month Matthew Garrett Said Ridiculous Things After His Spouse Had Called Him a "Rapist", Now He's Trying to Take the Site Offline and Put My Family in Prison
The real issue of concern to him (and his alleged reputation) is the spouse and the matter is to be dealt with in America, not the UK
Machine-Generated Legal Documents, Over 2,000 Pages Sent to Us Today Alone
We now know that the papers we receive are produced using bots (algorithms)
Reporting to Our Politicians/MPs the Failure of the SRA to Stop Hired Guns Who Help Americans (Men Who Attack Women and Nowadays Also Attack British Reporters)
About a month ago my wife wrote to politicians to get the ball rolling
The Topic Many People Don't Want to Talk or Write About
"DEI" is inherently about making racial and gender patterns better reflect society's
XBox is Virtually Dead Already, What Next Will Die at Microsoft?
Now that there are mass layoffs at Microsoft datacentres it is not premature to speculate about what dies after XBox
For the First Time, statCounter Measures Internet Explorer at 0.01% "Market Share"
What Microsoft replaced it with is just a Chrome clone with extra spyware
Was a Lot of "Windows" and "Unknown" in Iran Just GNU/Linux in Disguise?
more than 1 in 10 desktop/laptop requests is estimated to be GNU/Linux
"Here in the UK, GNU/Linux rose to all-time high at Windows' expense"
Will this entail Software Freedom as well? This depends on all of us
Links 02/03/2026: Claude Code Causes a Mexican Government Cyberattack, "London Repair Week" Noted
Links for the day
2026 Microsoft Mass Layoffs in So-called 'AI' Datacentres, Why Doesn't the Mainstream Media Cover The News?
What does this tell us about the state of the media?
Don't Fall for "Top X Law Firms" in "Discipline Y", They Pay $Z to Get False Endorsement/s
It's a scheme, a scam, an elaborate fraud
More Publishers Have Turned From Slop Boosters Into Slop Sceptics and Critics
There's a "hidden cost" when one participates (for profit) in "pump and dump" schemes
TeX Live Has New Release, But Planet Debian Won't Tell You That
It 'unpersoned' the developer
LLM Slop Does Not Know People (It Knows Nothing) and Cannot Distinguish Between People. It's a Recipe for Disaster.
no way of knowing who's who
"Over 1,100 Law Firms Gone in Five Years" in the United Kingdom (UK) Alone
There are basically way too many lawyers (looking for "business", e.g. threats and lawfare) and not enough positions to fill
Microsoft FUD From Microsoft Site Helps Distract From Actual Microsoft Back Doors
Published on a Sunday
Free Software Foundation Needs to Become More Active in Europe to Avoid Impersonation by Microsoft-Sponsored Groups
So far we've hardly seen the FSF saying anything at all about the US president
Links 02/03/2026: "Not Envious of Billionaires" and Palantir SLAPPs "Swiss Magazine For Accurately Reporting That The Swiss Government Didn't Want Palantir"
Links for the day
There Has Never Been a Better Time to Quit Social Control Media
Those networks are selling something. And that something is not peace because peace does not sell "attention".
Microsoft Users Drowning in Slop, If They Complain Microsoft Censors Them
Like an authoritarian regime
IBM is Killing Red Hat's Portfolio - Including Linux - to Prop Up Ponzi Scheme ("AI")
IBM is killing Red Hat
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, March 01, 2026
IRC logs for Sunday, March 01, 2026
Speed of Sites Matters
Being easily accessible all the time matters to us
Gemini Links 02/03/2026: Weird Phone Calls, Small Phones, and Exploring Racket
Links for the day
Dr. Andy Farnell on "Good Tech"
in the age of "rent everything" and "own nothing"
Gemini Links 01/03/2026: Simpler Software and Announcing OFFLFIRSOCH (OFFLine-FIRst SOftware CHallenge) 2026
Links for the day
EPO "Cocaine Communication Manager" - Part V - Jobs at the EPO for Those Connected to Cocaine Addicts (Skills Not Required)
EPO management is trying to shoot the messenger
Booz Allen Hamilton, the Former Employer of Edward Snowden (NSA Contractor), is Drowning in Debt
Can Supreme Leader Cheeto bail it out like he does slop companies?
On the Concept of "Protected Class" (or Race) at IBM
It's self-harming as in practice it imperils the company and harms the reputation/brand
The Mass Layoffs at Microsoft That Nobody in the "News Industry" Wants to Talk About (and TheLayoff.com Censored, Then It Censored the Evidence of the Censorship)
They basically cover up how they censored the news about Microsoft layoffs
Richard Stallman to Give at Least Three Talks in Switzerland, Starting This Week
No mention (yet) of the Bern talk
On Who 'Speaks for' Techrights
typically a case of misrepresenting the site
'FSFE' an Imposter in Europe, Paid by GAFAM to Represent GAFAM Interests
The Microsoft-sponsored 'FSFE', which violates the terms of use of its name, is causing confusion [...] formally-recognised institutions got tricked into thinking that the Microsoft-sponsored 'FSFE' is the FSF
Lots of Lies From the Slop Industry
The slop industry relies on fake news to give a notion or fake demand
Links 01/03/2026: American Plutocrats Buy American Media While American Constitution Shredded
Links for the day
Teaser: The Next Series About the SRA, Which Would be Just as Effective as It Is Right Now If It Had Zero Employees
the lapdog (of the "litigation industry") that is meant to be perceived as a watchdog
Solicitors Regulation Authority (SRA) Inaction and Incompetence - Part I - Introduction
The SRA is a sham. Many people know this already, but we want to document our own experiences with it.
Live Simply, Live Better
Life isn't about "collecting" possessions; it's about doing things that matter and accumulating knowledge so as to make better choices
Now That XBox is Pretty Much Dead and There Are Mass Layoffs at Microsoft
This means our predictions about Microsoft (and XBox) are "falling into place"
Gemini Links 01/03/2026: "In the Spirit of OFFLFIRSOCH" and "Delete Patreon"
Links for the day
ACM Lowers Its Standards for Age of Autocracy
IBM is more than happy to work with autocracies
The term FUD (fear, uncertainty, doubt) was created to describe IBM's tactics and IBM is doing it again
Rob Thomas or "RT"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, February 28, 2026
IRC logs for Saturday, February 28, 2026