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

Microsoft Staff Explains How Microsoft Swindled Employees and Avoided Paying Out Severance Pay (Microsoft Hasn't Much Money Left in the Bank)
This is a classic way to avoid paying workers
Techrights Should be Even Faster Now
We're now better off
Richard Stallman (RMS) Gave 3 Talks in India in Less Than a Week
In India this month we've not seen a single negative comment about RMS
Microsoft Mass Layoffs Without Severance Pay Reported Hours After Microsoft Reported Weak Numbers and Microsoft Stock Fell
Microsoft has a bloodbath this month
Another Slew of Fake Articles About 'Linux' and 'Security' From Brittany Day at linuxsecurity.com (Spamfarm/Slopfarm)
linuxsecurity.com is basically a pariah and parasite. It lessens the incentive to write real articles about "Linux" by generating fake ones to outrank the originals.
 
Links 31/01/2025: Mass Layoffs at Amazon and Microsoft, Sweden Again Fails to Protect Critics of Violence
Links for the day
Slopwatch: Fake Articles About "Linux" and More (Latest Roundup Featuring BetaNews, Janus Atienza, and Brittany Day From Guardian Digital, Inc)
LLM slop season
"Not one of us" by Dr. Andy Farnell
Elon Musk has brought embarrassment to nerds and technologists
Gemini Links 31/01/2025: "Bulletin Buble" and "Why Blog?"
Links for the day
Static Site Generators (SSGs) Pay Off: Vastly Faster Sites, Much Smaller Hosting Bills
success story for SSGs
Of Note: Linux Foundation Has Already Let Linux.com Rot for About 4 Months (No Activity)
there's no campaign aside from marketing spam there
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, January 30, 2025
IRC logs for Thursday, January 30, 2025
Indian Data Biases statCounter For or Against "Linux"
In statCounter, the GNU/Linux increases and decreases are deeply tied to what it does with data collected in India
The Corporate Media Pretends That Facebook ("Meta") Has Performed Well, But Its Debt Doubles Every 2 Years Despite Mass Layoffs
That same media also helps parrot misleading financial claims
Microsoft's Debt Surged by More Than 6,000,000,000 Dollars in Just 3 Months
numbers released hours ago
The Sheer Irony of Microsoft Proxy Accusing Others of 'Stealing'
Wherever DeepSick's data came from, Microsoft (or its proxy) is in no position to issue criticism.
The Difference a Decade (and GAFAM Money) Makes
Credibility cannot be purchased
[Meme] The Free Software Foundation (FSF) Has Critics Because Its Message is Effective
Applying to others the same standards one is willing to violate?
The Free Software Foundation (FSF) Raised $422,000 (Another $22k in the Two Weeks After Campaign Ended), Proving That Truth and Justice Tend to Find a Way
10,000+ dollars a week even without campaigning for more funds
Faking Revenue Increase by Buying Your Own Products and Services (Through Scams and Scammers Like Scam Altman)
Is this what society deserves? Media that instead of exposing corruption has chosen to participate in it and profit from it?
Links 30/01/2025: Fentanylware (TikTok) Causes Deaths, FBI Seizes Domains
Links for the day
Gemini Links 30/01/2025: Action vs Inaction, Gopherholes, and More
Links for the day
Links 30/01/2025: Microsoft Wants Convicted Felon to Give Fentanylware (TikTok) to It (After Making a Phonecall Asking for That in 2019), "Moving Away From Google's Ecosystem"
Links for the day
Jack M. Germain (LinuxInsider) Seems to Have Turned to LLM Slop, Graphics Slop, and B2B SPAM
LinuxInsider is barely active anymore
Links 30/01/2025: Amazon Layoffs and DeepSeek Panic
Links for the day
Gemini Links 30/01/2025: Chaos Reigns, E-mail, Searching
Links for the day
IBM: Many Thousands of Layoffs in 2025
If 2025 is expected to be the same, then perhaps about 20,000 IBM workers will no longer be there
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, January 29, 2025
IRC logs for Wednesday, January 29, 2025
Google: Your Only Option is Google YouTube (Coming Soon: Mandatory DRM and Attestation?)
Digital Restrictions (DRM) to follow? Only for "approved" (attestation) browsers?
Mastodon Was Always Biased (Just Like Twitter After Abandoning Chronological and Neutral Timelines in Order to Become More Like Facebook)
So bury-brigading and click-farming control what people see
Certificate Authority Let's Encrypt Falls to Only 0.4% of the Total in Geminispace
Geminispace does not need to outsource trust
The Munich-Based EPO is Still Using a Platform That Promotes the Far Right and Rehabilitates Nazism
Active Twitter account
Links 29/01/2025: Dismantling Public Health in the US, Air Busan Plane Up in Flames (South Korea's Air Disasters Streak)
Links for the day
Announcements and Administrivia
This week we're going out for two days in a row to celebrate an achievement that's very respectable
Gemini Links 29/01/2025: Japan, GTD, and More
Links for the day
Sir, Yes, Sir. The Life of EPO Patent Examiners.
If working for the EPO makes it harder to sleep at night, take action
How the EPO Pressures Staff Into Minting More Monopolies (Patents), Even Illegal Ones That Harm Europe and Ultimately Dismantle the Rule of Law
insights into the pressure examiners are under
LLM Slop Machines Are Not a Win for "Open Source" and If They Get Cheaper, It's Even Worse
If some program that claims to be "Open Source" pollutes the Web with fake articles (Microsoft SPAM and fake "Linux" articles), whose win is it?
Links 29/01/2025: Data Privacy Day and Growing Tensions in Europe
Links for the day
Nazi Twitter (aka "X") Became a Troll Site That Lets People Buy a Blue Tick While Its Boss Actively Promotes Neonazi Politicians
the intellectual level of people who infest the Web through "Twitter" or "X"
This is Why They're So Afraid of Richard Stallman (He Tells People the Correct History)
Then they post about it to Microsoft's LinkedIn
Richard Stallman Speech in Bengaluru, "Silicon Valley of India"
62 years have passed since his "young nerd" days and he's still at it
Claim: Facebook Deletes Posts of IBM Red Hat Critics
As always, follow the money (advertisers)
Links 29/01/2025: Climate Crisis and "It’s time for the Xbox to fade away" (Microsoft Lose)
Links for the day
Links 29/01/2025: Buying Groceries During a Trade War, Political 'Retro'
Links for the day
More Illegal Patents at the EPO, Legality of Granted European Patents No Longer Matters to the Office
breaking the law for profit
Network Improvements Tomorrow
"Network maintenance" down in London
Sharing is Caring (But Advocating Copyleft Makes You a "Target")
GPLv3 does not close all the loopholes which the "Affero" helps close
Articles About Free Speech at Facebook
'Facebook vs Linux' story is now receiving a lot more media coverage
We Were Right About stallmansupport.org Making an Error by Joining Social Control Media. mastodon.social Suspends stallmansupport.org.
From what we can guess, accounts can be banned by some oversensitive admin or a mob of users ("bury brigades")
"Latest Technology News" in BetaNews Still LLM Slop and SPAM Composed by LLMs (It's Basically a Spamfarm Disguised as a News Site)
Only a fool would visit BetaNews in search of actual news
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, January 28, 2025
IRC logs for Tuesday, January 28, 2025
The EPO's Corruption, If It Remains Untackled, Helps the Far Right and Enemies of European Unity/Solidarity
Do not negotiate with evil
The Web, Including Wikipedia, Gets Filled With Lies About Bill Gates, Added by Bill Gates and His PR Team
Of course Wikipedia is funded by Gates
Facebook Banning Linux Sites (or People Who Link to Linux Sites) is Another Symptom of the Web's Demise
The state of media on the Web is really bad; Social Control Media amplifies the badness, as Facebook serves to show
Gemini Links 29/01/2025: Neovim Telescope and Writing Less
Links for the day