Patentability Of Business Model And Software Patents Comes Under Court Scrutiny

from the about-time dept

Nearly ten years ago, the US Court of Appeals for the Federal Circuit (CAFC) made its ruling in the State Street Bank case, effectively allowing patents on business models and greatly expanding the scope of software patents in one single move. While there are many problems with the patent system, this one decision made for a lot more bad patents very quickly -- and many of the ridiculous lawsuits you see today wouldn't even exist if this decision had gone the other way. While we've seen the Supreme Court suddenly get religion on fixing the patent system in the past few years, it hasn't really touched on the question of software or business model patents.

On one case that could have addressed the issue, the court dismissed the case on a technicality, rather than digging into the actual issue, though in the dissent, some Justices made it clear they weren't comfortable with the State Street ruling. Last year, some folks tried to sneak the issue of software patents into another Supreme Court patent case, but that seemed like a stretch, since the case really had little to do with software patents directly. The decision in that case did set things up, though, so that the Supreme Court later could reject software patents.

Now we have another important case to watch. As pointed out by the Troll Tracker, CAFC has agreed to a full court hearing to examine the scope of what can be patented. It may sound like a technicality, but it could be a very big deal. Going back on the earlier State Street ruling could effectively knock out many business model patents and software patents, restoring at least some (though, certainly not all) sanity to the patent system, especially in the technology world.

21 Comments | Leave a Comment..

 

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  1. I would like to patent the business model

    by Ajax 4Hire - Feb 16th, 2008 @ 7:49am

    of buying patents and suing for un-realized damages.
    The title of the Patent is "Patent Trolling as a Business Model", oh yeah, as a Software and Business Model.

    Soon I will be singin:
    And they moved to Beverly, Hills that is Swimmin pools and Patent Stars!

    (reply to this comment) (link to this comment)

  2. by Anonymous Coward - Feb 16th, 2008 @ 9:40am

    Who's the toll tracker? Maybe you mean the troll tracker

    (reply to this comment) (link to this comment)

  3. Patents

    by Prof_IT - Feb 16th, 2008 @ 9:56am

    As an academic scholar in Information Technology, I can say with a certainity that I can dig up prior ACADEMIC research for almost 90% of software or business patents that have been issued. The most ridiculous is the one-click by Amazon where cookies have been known and used in academic research prior to that for exactly similar purposes (retrieving browser stored information from servers). The patents that are difficult to crack the those that rely on prior research that was done within the company e.g., the telecommunication patents. The system is broken and needs to be fixed.

    (reply to this comment) (link to this comment)

  4. If they dismiss this one...

    by Exiled From The Mainstream - Feb 16th, 2008 @ 5:21pm

    I'm gonna be pissed. I just can't understand how they let crap get this far gone. Its amazing that an entire business can be made on patent trolling and has for years now.

    Not like I expect much though... America has one of the loopiest legal systems I've seen. Seems like long as you got the cash you'll get out scotfree even if it was capital murder.

    (reply to this comment) (link to this comment)

  5. Re: If they dismiss this one...

    by A. L. Flanagan - Feb 17th, 2008 @ 5:48am

    The guy with the most money wins. What's loopy about that? It's simple and easy to understand. ;)

    (reply to this comment) (link to this comment)

  6. The people who made the original ruling

    by BS - Feb 18th, 2008 @ 7:02am

    [b]Were obviously in the pocket of big business and should be removed from office for being the the allower of this travesty in the first place[/b]

    (reply to this comment) (link to this comment)

  7. Re: The people who made the original ruling

    by Anonymous Coward - Feb 18th, 2008 @ 7:17am

    Don't accuse without evidence.

    Don't assume malice where incompetence can easily be substituted.

    (reply to this comment) (link to this comment)

  8. by Anonymous Coward - Feb 18th, 2008 @ 8:05am

    The courts only make big decisions by accident. It's rare that they knowingly overturn a decisions that business are built upon -- they don't have that kinda backbone

    (reply to this comment) (link to this comment)

  9. Software patents bad for the US

    by Software Guy - Feb 18th, 2008 @ 8:17am

    I hope the courts will stop the software and business patents before all of us who know how it all works leave and go low tech. I've been in the software business for 20 years with fear of getting sued over my creations for the last 5 or so years. I am already prepairing to exit the industry in the next two years if things don't change. If we all leave who will run the machines?

    (reply to this comment) (link to this comment)

  10. by ravenshrike - Feb 18th, 2008 @ 8:19am

    The Supreme Court tends to like their cases to be as glitch free as possible, mainly so that people can't go back later and invalidate their ruling on the basis of a technicality.

    (reply to this comment) (link to this comment)

  11. Re:

    by Anonymous Coward - Feb 18th, 2008 @ 9:08am

    it's SCOTUS. They are the final decision; there's not another court over them to overturn their rulings. The only way to overturn the Supreme Court is for Congress to pass a new law or for the Constitution to be amended.

    (reply to this comment) (link to this comment)

  12. Re: I would like to patent the business model

    by Anonymous Coward - Feb 18th, 2008 @ 9:40am

    IBM already tried that patent.

    (reply to this comment) (link to this comment)

  13. Re: Patents

    by Tony P - Feb 18th, 2008 @ 12:50pm

    I wonder how the Verizon v. Vonage case worked out. Supposedly Vonage was violating a bunch of patents that Verizon supposedly owned.

    In essence Verizon took RFP's and made them into patents and then using those tried to kill the competition.

    (reply to this comment) (link to this comment)

  14. Re: I would like to patent the business model

    by Anonymous Coward - Feb 18th, 2008 @ 12:53pm

    Why stop there. Patent the business and software model of exchanging goods and services for goods and services.

    (reply to this comment) (link to this comment)

  15. Abstraction Physics

    by Timothy Rue - Feb 18th, 2008 @ 4:17pm

    Software simply doesn't fall into the realm of being of qualities supporting patent-ability, nor do business methods.

    Abstraction Physics No Kidding.

    (reply to this comment) (link to this comment)

  16. Re: Re: The people who made the original ruling

    by Anonymous Coward - Feb 19th, 2008 @ 1:39am

    I actually prefer to think of it as malice. Incompetence gets a bad rap too often. How many times have you heard someone say "I didn't know..." and know it was a lie?

    (reply to this comment) (link to this comment)

  17. not everything can be owned

    by n/a - Feb 19th, 2008 @ 6:45am

    I believe one of the reasons software patents and similar ideas live in the US is because there is a firm belief in US that everything can be _owned_.

    IMNSHO shared resources can not always be owned.

    (reply to this comment) (link to this comment)

  18. Patenteability

    by vishal - Feb 20th, 2008 @ 9:06pm

    I would like to patent the business model by Anonymous Coward

    (reply to this comment) (link to this comment)

  19. Patents and Corporate Welfare

    by Jay Chawla - Mar 7th, 2008 @ 4:37pm

    Genetic and pharmaceutical patents are good for large corporations, so no one criticizes them. Software and Business Model patents are good for innovative thinkers, so big corporations hate them.

    So follow the herd, you mindless lemmings, and criticize tech patents while you pay top dollar for patented, over-hyped drugs that don't do anything but kill you slowly and make the pharmaceutical companies rich quickly.

    The mega-technology corporations and all of their copycat rip-off artist friends thank you.

    (reply to this comment) (link to this comment)

  20. Re: Patents and Corporate Welfare

    by angry dude - Mar 19th, 2008 @ 7:51pm

    And don't forget China - they are very thankful too...

    (reply to this comment) (link to this comment)

  21. Patents

    by ViSalus - Oct 13th, 2008 @ 11:23pm

    The most ridiculous is the one-click by Amazon where cookies have been known and used in academic research prior to that for exactly similar purposes.

    (reply to this comment) (link to this comment)

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