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

Doing My Share to Tackle Online Slop and SPAM
Trying my best to 'fix' the Web
Slopwatch: Fakes, FUD, Duplicates, and Charlatans Galore
The Web as we once know it is collapsing. Some opportunists try to replace it with low-quality slop.
The Register UK Seems to Have Become American and Management is Changing (Microsofter as Editor in Chief)
The Register 'UK' is now controlled by the Directions on Microsoft guy
Microsoft Windows Lost 400 Million Users in a Few Years, Why Does The Register Double Down on Windows With New US Editor?
days ago they hired a new US editor
 
Links 26/07/2025: Amazon Shutdown in China, Russian Economy Slows
Links for the day
Gemini Links 26/07/2025: History of Time (1988) and Gemini Games
Links for the day
Links 26/07/2025: 50 Percent Tariffs in Amazon, Dying Intel Offloads Network and Edge Group (NEX)
Links for the day
Blaming Programming Languages for Users' and Developers' Bad Practices
That's like blaming cars for drivers who crash into things
Many People Still Read Techrights Because It Says the Truth, Produces Evidence, and Does Not Self-Censor
Unlike so many other sites
The Register is Desperate for Money, According to The Register
I decided to check how they're doing as a business
Microsoft Finally Finds a Use Case for Slop?
Create low-quality chaff to shift the media's attention?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, July 25, 2025
IRC logs for Friday, July 25, 2025
For Libel Reform One Must First Bring (or Raise) Awareness to the Issues and Their Magnitude
I myself know, from personal experience
Links 26/07/2025: Rationed Meals in the US and TikTok Repels Investments (Too Toxic)
Links for the day
Gemini Links 26/07/2025: "Bloody Google" and New People in Geminispace
Links for the day
Response to Solderpunk (Father of Gemini Protocol) About the Gemini Community
Solderpunk responds to non-sequitur
HTML and the Web Used to be Something a Child Could Learn, "Modern" Web is a Puzzle of Frameworks, Bloat, and Worse
When the Web was more like Gemini Protocol
New US Editor in The Register is 84% Microsoft/Windows Booster
It'll be worrying if it carries on like this
Links 25/07/2025: Slop Blunders and China Has Code of Conduct for Lawmakers in HK
Links for the day
Gemini Links 25/07/2025: Some Books and Babies and Capital
Links for the day
Links 25/07/2025: NOAA Cuts Endanger Lives, "Europe's Self Inflicted Cloud Crisis"
Links for the day
They Try to Lecture Us on Ethics
They even removed "master" from Microsoft GitHub
The Future of the Web is One Rendering Engine or 'Flavours' of Chrome
The future of the Web does not look bright at all
Best Sites Are Not Optimised for Any Browser, They Work Equally Well With All of Them
Red Hat (IBM) is making rubbish sites
YouTube is a Spamfarm, Slopfarm, and Clickfarm (a Lot of Numbers There Are Fake)
Those who don't fake look unpopular and unimportant
We Don't Do JavaScript and Pages Are Small
Thankfully Gemini Protocol has nothing like JavaScript
'Tech' is Not Technology
Some people use terms like 'Old Tech'
IBM's Debt Rose by Almost 10 Billion Dollars in the Past 6 Months Alone
The "hey hi" circus is coming to an end
Yes, Master
Gaslighting by actual racists
Microsoft Bribes and Buys Politicians to Tell Europe What to Do About Free Software (Which It's Attacking)
Microsoft: we speak for the thing that we are attacking! Follow the money...
Making Backups Quickly and Reliably
Backups are imperative, more so in an age of uncertainty, unpredictable weather, and worsening standards (quality of products going down while prices go up)
Techrights Investigation: Estimating the Point in Time LinuxIac Turned Into LLM Slop (Part of the Time)
Bobby Borisov got lazy
10th Month, Ten Weeks From Now, at Ten AM
In Wentworth Institute of Technology in Boston
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, July 24, 2025
IRC logs for Thursday, July 24, 2025
A Nadella Memo Distracts From Microsoft's Cheapening Of the Workforce
Right now the "MSM" (mainstream media) is flooded/overwhelmed by garbage pieces that relay lies for Nadella
Vanishing Faces of GNU/Linux
Free software projects do not depend on any one person or company to still exist
Microsoft Says It Lost 400 Million Windows Users, Now It's Waiting for GNU/Linux to Stop Booting on 'Old' PCs
When it comes to Windows, Microsoft is fully aware of the issue and statements it made earlier this summer suggest it lost 400 million Windows users
Slopwatch: LinuxTechLab, linuxsecurity.com, LinuxIac, and More
Also: The Register's Microsoft agenda (new editor)
Gemini Links 25/07/2025: Gemtext Aware Titan Editor and Gemini Protocol Comeback
Links for the day
Links 24/07/2025: Convicted Felon Quits UNESCO, "Vibe Coding Goes Wrong", and Signalgate Gets Worse
Links for the day
Gemini Links 24/07/2025: Forgejo Woes and Smolnet Directory Week
Links for the day
Misinformation is Not Intelligence
It's low-grade plagiarism and it fails to show any signs of intelligence
Links 24/07/2025: Storage Tapes Still Kicking, Windows TCO 'on Steroids' (Microsoft-Induced Catastrophes)
Links for the day
Bobby Borisov (LinuxIac) Has Apparently Begun Experimenting With LLM Slop, So We Cannot Trust LinuxIac Anymore
So did LinuxIac become a slopfarm? Maybe not yet, but it's getting there
Informa TechTarget's ITProToday is Becoming a Slopfarm Generated by Microsoft Chatbots
Busted.
'Tech' Gimmicks Are for Advertising, Not for Usability
In the case of Microsoft, they latched onto slop
BetaNews Sacked Brian Fagioli and Deleted His Comments, But He Still Tries to Use the "BetaNews" Brand for Self-Affirmation
Fagioli takes the work of other people
[Meme] Hard to Be a Better Person?
Sooner or later they'll realise that for each pound I spend they need to spend about 1,000 times more
The LLM Con Artists Are Highly Destructive
Who will ever be held accountable for this scam?
Too Bribed by Microsoft to Move to Free Software?
Microsoft lies and Microsoft bribery (in politics)
New US Editor for The Register is a Microsoft Booster
"Avram Piltch has served as US editor for The Register since July 2025."
Microsoft Hiring European Politicians is Another Form of Bribery; There Should be a European Investigation
When Microsoft bribed people in Europe for OOXML (there's no denying this!) a European government delegate said that Microsoft operated like a cult
Reda Demanded That FSF Removes Its Founder, Now Reda Works Directly for Microsoft
A sellout and a traitor, first working for GAFAM, now Microsoft
PCLinuxOS is Raising Money to Support Development After Fire Incident at the Host
PCLinuxOS has not had announcements lately
Speed of the Site Should be Better Now
The "bot attacks" impact the speed of the sister site too
Getting More From AnalogNowhere
Recently we used many images from AnalogNowhere
Microsoft, Microsofters and 'Secure' Boot Shills Already Storming the LWN Report About Expiring Certificate, Shooting the Messenger
LWN has clearly stuck a nerve
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, July 23, 2025
IRC logs for Wednesday, July 23, 2025
Disable "Secure" Boot Today (the Only Better Time to Do So Was Yesterday)
Don't trust anything Red Hat tells you about security
Links 23/07/2025: Windows Killed Company After 150+ Years, US Government Mimics Russia's Attacks on the Media
Links for the day
Freedom Generally Wins at the End, History Shows (But It's Constantly Attacked, Too)
At the moment people realise "Linux" (e.g. Android) isn't enough to guarantee any freedoms
Over 3 Months Later Brett Wilson LLP Still Unable to Recruit a Media Lawyer?
"Immediate start", but not found... still unfilled