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

"Bad Shim Signature"; So 'Secure' That It Overrides Users' Preferences and Turns Itself Back on (Coercive Measure)
This was a few hours ago
We Covered UEFI 'Secure Boot' Scandals. The World Listened.
To hell with UEFI 'secure boot'
Fake News With Fake Numbers About Microsoft
"This is what happens when the world's economy is governed by sick old men"
Slopwatch: "Google News" is Fast Becoming a Mashup of Slopfarms, Linux Journal ("LJ") is a Dump of LLM Slop
Well done, Google News. Google itself can flourish as a slopfarm mashup.
Torturing Users Who Just Want to Run GNU/Linux on Their Own PC
"Linux does not want to install"
European Authorities, Already Bribed and Infiltrated by Microsoft, Won't Help You Find BigBlueButton, Jami, Ring, and Jitsi
Because they're paid by Microsoft and are Microsoft 'addicts' themselves
 
Links 14/09/2025: Disasters for CEOs Obsessed With Slop and Slop Companies School Like Fish
Links for the day
"Bad Shim Signature" (Microsoft 'Secure' Boot)
"Fresh install not booting"
What Microsoft Garrett and Microsoft Lunduke Have in Common
Similar tactics, different "wings"
Links 14/09/2025: US "Economy Sagging", "Michigan Economy Wobbles From Tariffs"
Links for the day
Gemini Links 14/09/2025: Minimalist Snippet Manager and Omarchy Linux
Links for the day
The Face of the Digital Far Right: Microsoft Lunduke
Microsoft Lunduke is an online extremist that belongs to and panders to the far right
20 Years Later and Academia Isn't the Same
"I never dreamed of being a professor"
'Cancel Culture' by the Right: Microsoft Lunduke Contacts People's Employers Trying to Get Them Fired
Microsoft Lunduke panders to extremists online
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, September 13, 2025
IRC logs for Saturday, September 13, 2025
Microsoft is Rapidly Dropped From Web Servers, Shows Survey
Microsoft lost about 8% "market share" in just 3 months
Many GNU/Linux Users Report MOK (Machine Owner Key) Issues in Recent Days
many people don't report this online and never post in Reddit
Links 13/09/2025: Escalations in East Europe and POTUS’ Health Cover-Up
Links for the day
Gemini Links 13/09/2025: Lagrange Turns 5 and Lagrange 1.19.2 Released
Links for the day
Microsoft Inside Your Linux: "Security vulnerability that allowed an attacker to bypass UEFI Secure Boot."
2 hours ago
A New Low for "Linux Journal": Promoting MICROSOFT WINDOWS Using LLM Slop
They've just jumped the shark entirely
The Register MS Still Takes Money to Hype Up "AI" in Articles by Microsoft Resellers With the Term "AI" 30+ Times in Them
Notice how many times they mention "AI"
The Apache Logo News is VERY Old, Racists and 'Anti-Woke' Bigots Look for Something to Incite Other Bigots With
Nothing to see here, move along
Linux Mint 9/11: "4th One Today..." (in Reddit)
Remember that not everyone having an issue reports it to social control media like Reddit
Nepal Will Fall Without a Single Shot Fired, Thanks to Social Control Media
Or very few shots (by the authorities)
European Corruption in the European Patent Office (EPO) Targets Culture
"In reality, the project includes a new “legal instrument” shifting administrative burden and liability on EPO staff while creating new uncertainty and externalising Amicale activities."
UEFI Secure Boot Failing, as Expected for Nearly 15 Years Already (Techrights Said This Since 2012)
in the media
Debian 9/11
people report this issue
Gemini and Web Links 13/09/2025: MElon's Slop Grift and "Autonomous Trains"
Links for the day
Moving From Content Management Systems (CMSs) to Static Site Generators (SSGs) Saves You Time, Makes You a Lot More Productive
try to reduce the cost (financial and computational) of running your site
Pursuing Peace Through Violence
You cannot "see" a person's mind, until the mouth opens
Leak: European Patent Office (EPO) is Now Attacking Amicale Clubs
corruption has become the norm and scientists are robbed of any dignity
Can We Please Stop Celebrating Shooters?
"An important point to hammer on is that CoCs were never intended for uniform or symmetric application"
Oracle Fraud (or Defrauding Shareholders)
"the obvious [lie] is that watts are (wasted) electricity [and] and FLOPS are computing capacity"
Geminispace is Growing Faster in 2025 Than It Did in 2024
What matters is that corporations haven't ruined it and LLM slop is extremely rare
Links 13/09/2025: China Punishes for 'Negative' Posts, US Police Unable to Find Shooter
Links for the day
Who's the Mystery Financier of SLAPP Against Techrights and Is That a Millionaire/Billionaire?
Whose idea was it to fund meritless lawsuits against my wife and I?
Slopwatch: Slow Slop Day
This distracts from or may take traffic away from the original articles, actually written by actual people
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, September 12, 2025
IRC logs for Friday, September 12, 2025
CoC Gone Wrong: Celebrating Murder OK, Complaining About the Celebration Gets You Banned
Hopefully the NixOS Foundation will have a word with (maybe replace) the moderator/s
Gemini Links 12/09/2025: Familiarity and Secondary Dominants
Links for the day
Explaining (in Length and Depth) the Damage Matthew Garrett Did to Linux and to GNU/Linux Users
no matter how many threats we receive
Links 12/09/2025: "Bad Reviews" as Extortion Weapon, "Free Speech At Risk in America’s Schools" According to ACLU
Links for the day
Only One Speaker Does Not Do Sharecropping for MElon (in X.com)
The man who puts principles before PR/optics
The Mind of the 'Hulk Hogan of UEFI'
in a nutshell
A Day After "UEFI 9/11": UEFI Secure Boot Bypass
In the news today (right now), as published in the past few hours
Links 12/09/2025: Slop Code as Liability, Microsoft Outlook Down for Many
Links for the day
It's Still Not to Late to Turn Off "Secure Boot"
If people reboot their PC or server today, and it relies on "Secure Boot" on Sept. 12 or later, then depending on the firmware there may be trouble ahead
Links 12/09/2025: Shira Perlmutter is Back, “Software Per Se” Patent Rejections in In re McFadden
Links for the day
Slopwatch: Linux Plagiarism, Slopfarms Still Infesting Google News, Many Images Are Fake
Google is promoting plagiarism
"This Morning Might Turn Out to be an Interesting One for System Admins Who Haven't Updated Their Devices' Secure Boot Certificate" (If They Reboot)
Who asked for this anyway?
Gemini Links 12/09/2025: Metric System, Dumping Windows, and Software Architecture is Dead
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, September 11, 2025
IRC logs for Thursday, September 11, 2025