Posts Tagged: "patent eligible"

Patents on Transactions Using Cryptocurrency: Square versus PayPal

Cryptocurrencies are virtual currencies based on blockchain technology that uses a network of computers to keep a public ledger of past transactions. The most popular cryptocurrency is Bitcoin, which some believe could replace bonds and serve as a reserve currency in the future. The value of Bitcoin has skyrocketed over recent years, as major companies are buying into it. In February 2021, Tesla Inc. bought $1.5 billion worth of Bitcoin and announced plans to start accepting the currency as payment for its electric vehicles. Since Bitcoin has the potential to be used directly in commercial transactions, fintech companies are developing and patenting related technologies.

CAFC Again Affirms PTAB Rejection of Stanford Patent Application Claims Under Alice

Two weeks after affirming the Patent Trial and Appeal Board’s (PTAB’s) decision to reject Leland Stanford Junior University’s (Stanford) claims drawn to abstract mathematical calculations and statistical modeling, the U.S. Court of Appeals for the Federal Circuit (CAFC) last week also affirmed the PTAB’s decision to hold other Stanford patent application claims patent ineligible because they are drawn to abstract mathematical calculations and statistical modeling, and similar nonpatentable subject matter. The examiner rejected claims 1 and 22–43 of U.S. Application No. 13/486,982 (‘982 application), “computerized statistical methods for determining haplotype phase,” on grounds that the claims attempt to cover patent ineligible subject matter, abstract mathematical processes and mental processes. The CAFC applied the two-step framework under Alice v. CLS Bank to determine whether the claims were patent eligible.

Tillis and Cotton Urge Hirshfeld to Adopt Pilot Program to Address ‘Inherently Vague and Subjective’ Eligibility Analyses

Senators Thom Tillis (R-NC) and Tom Cotton (R-AR) sent a letter on Monday to the acting Director of the United States Patent and Trademark Office (USPTO), Drew Hirshfeld, asking him to “initiate a pilot program directing examiners to apply a sequenced approach to patent examination,” rather than the traditional “compact approach.” This proposed pilot program would require a select group of examiners and applicants who elected to participate in the program “to engage in a full examination of the grounds of patentability and then, once that process is complete, a full examination of the grounds of eligibility.”

Good News for Patentees: Bipartisan NSCAI Invokes National Security in Calling for Legislation to Clarify Patent Eligibility

The judicial undermining of patent eligibility, in defiance of the clear language in Section 101 of the Patent Act, poses a clear and present danger to the pace of American innovation…. Fortunately, a recently released report by a bipartisan congressionally-established  commission lends powerful support to Section 101 reform initiatives. The National Defense Authorization Act of 2019 created a 15-member National Security Commission on Artificial Intelligence (NSCAI)…. On March 1, 2021 the NSCAI released its final Report to the President and Congress (NSCAI Final Report) (see the press release). Of particular note, the NSCAI’s Final Report includes a chapter underscoring the importance of a strong intellectual property law system to U.S. national security interests tied to technological advancement.

Patenting Simulations at the EPO: Decision G1/19 and Its Consequences for Computer-Implemented Inventions

The Enlarged Board of Appeal of the European Patent Office (EPO) recently published its decision No. G1/19 on patentability of simulations. There was great anticipation for such a decision, after landmark decisions 641/00 (COMVIK) and G3/08, mainly due to the ambiguous formulations of the questions of law to the Enlarged Board of Appeal. The result is “business as usual”, but several clarifications might be useful in the future. In the following, we first summarize the questions of law, the clarifications of the Enlarged Board of Appeal and then infer possible consequences for applicants and practitioners.

CAFC Affirms PTAB Rejection of Stanford Haplotype Phasing Patent Claims Under Alice

On March 11, the U.S. Court of Appeals for the Federal Circuit (CAFC) affirmed the decision of the Patent Trial and Appeal Board (PTAB) to hold the rejected claims from Leland Stanford Junior University (Stanford) were not patent eligible because the claims are drawn to abstract mathematical calculations and statistical modeling. The examiner rejected claims 1, 4 to 11, 14 to 25, and 27 to 30 of U.S. Application Nos. 13/445,925 (‘925 application), “methods and computing systems for determining haplotype phase,” for involving patent ineligible subject matter. The CAFC applied the two-step framework under Alice v. CLS Bank to determine whether the claims were patent eligible.  

Bipartisan Group of Senators Asks Hirshfeld to Gather Info on Eligibility Law by Next Year

Senators Thom Tillis (R-NC), Mazie Hirono (D-HI), Tom Cotton (R-AR) and Chris Coons (D-DE) sent a letter on Friday to the Acting Director of the United States Patent and Trademark Office (USPTO), Drew Hirshfeld, asking him to “publish a request for information on the current state of patent eligibility jurisprudence in the United States, evaluate the responses,” and provide the senators with a detailed summary of the findings in order to assist them as they consider appropriate legislative action.

Professors Tell SCOTUS to Correct the CAFC’s ‘Profound Misunderstanding’ in American Axle Case

In one of six amicus briefs filed this week in American Axle & Manufacturing v. Neapco Holdings, LLC—the closely-watched Section 101 patent eligibility case involving driveshaft automotive technology—Professors Jeffrey Lefstin and Peter Menell told the U.S. Supreme Court that the Federal Circuit’s 6-6 split decision to deny en banc rehearing in the case “mischaracterized fundamental patent principles and case law on which the modern patent system is built.” The professors added that “current § 101 jurisprudence conflates patent eligibility with the substantive requirements set forth in § 103 and § 112 and is getting more confusing by the day” and that “there is no patent law doctrine more in need of clarification.”

Tillis, Michel, and Kappos File Amici Curiae in American Axle at Supreme Court

On Monday,, March 2, an Amici Curiae Brief in Support of the Petition by American Axle was filed by Senator Thom Tillis, Honorable Paul Michel and Honorable David Kappos. The three amici conclude that they are “all convinced that section 101 is gravely damaging our country’s ability to succeed in the race for global innovation leadership, and all convinced that the solution to the dilemma lies with the Court taking up the American Axle case.”

How to Safeguard AI Technology: Patents versus Trade Secrets

A common refrain is that an invention is only as valuable as the patent that protects it. But what happens when you cannot secure the patent? This is a frequent hurdle for inventors seeking to patent products utilizing artificial intelligence (AI). While still in its infancy, at least compared to the lofty expectations of technology enthusiasts, AI has proven integral to driving innovation, but it has also proven equally vexing to fit into the intellectual property legal regime.

CAFC Affirms Section 112 Invalidation/ Non-Infringement in Synchronoss v. Dropbox Dispute

On February 12, the U.S. Court of Appeals for the Federal Circuit (CAFC) affirmed a district court’s conclusion of invalidity under Section 112 and/or non-infringement in Synchronoss v. Dropbox. Synchronoss had appealed the district court’s decision that the asserted claims, which were “drawn to technology for synchronizing data across multiple devices” are either invalid under 35 U.S.C. Section 112 for indefiniteness, or not infringed.” Meanwhile, Dropbox cross-appealed, arguing that the claims are patent ineligible subject matter under Section 101. The patents at issue are U.S. Patent Nos. 6,671,757; 6,757,696; and 7,587,446.

USIJ to Supremes: Set Boundaries on 101 Jurisprudence to Save U.S. Innovation

The Alliance of U.S. Startups & Inventors for Jobs has filed an amicus brief supporting American Axle & Manufacturing, Inc.’s petition for certiorari with the U.S. Supreme Court, claiming that many feel that “the U.S. patent system appears to be on life support”. The brief generally argues: The panel majority decision fails to comply with eligibility precedents established by the Court and Federal Rule of Civil Procedure Rule 56 (Rule 56); and Investments in technology startups in American has been declining for more than a decade.

Federal Circuit Reiterates It Will Not Be Bound by USPTO Eligibility Guidance

Earlier today, in cxLoyalty, Inc. v. Maritz Holdings, Inc., the U.S. Court of Appeals for the Federal Circuit (CAFC) affirmed-in-part, reversed-in-part and dismissed-in-part a decision of the U.S. Patent and Trademark Office’s (USPTO’s) Patent Trial and Appeal Board (PTAB) in which the CAFC doubled down on its past contention that the USPTO’s Subject Matter Eligibility Guidance is not binding on the court’s analysis. The panel included Chief Judge Prost and Judges Lourie and Hughes. The opinion was authored by Prost.  

The Day One Project Examined: USPTO Transition Proposals Advocate Questionable PTAB, Section 101 Policies

Recently, the Day One Project, an initiative of the Federation of American Scientists, released a transition document drafted by a collection of veteran policymakers discussing a range of policy ideas to be implemented at the U.S. Patent and Trademark Office (USPTO) starting from the earliest days of the Biden Administration. The ideas advocated by the Day One Project focus on a mix of policies related to diversity, international IP systems, patent quality, agency budgeting and governance and ways that the USPTO can contribute to broader administrative policy initiatives. While there are many sound policy positions advocated by the Day One Project, patent owners may want to be aware of the document’s stance on the “public benefit of PTAB review of a patent” as well as the agency’s role in developing policy on patentable subject matter reform. Interestingly, the policy document indicates that there is broad consensus for continuing policies from the Trump Administration relating to China’s influence on the world of intellectual property.

Iancu Says Goodbye, Urges Commitment to ‘American Innovation Renaissance’

One day before Joe Biden was to be inaugurated as the 46th U.S. President, U.S. Patent and Trademark Office (USPTO) Director Andrei Iancu confirmed he would be leaving his position as USPTO Director, reminiscing on his tenure with the Office in his latest Director’s Forum blog post and in remarks made at a United States Chamber of Commerce Global Innovation Policy Center event yesterday. Iancu recalled his successful efforts to clarify examination guidelines on patent eligibility and to balance post-grant proceedings, noting that, “In light of our many carefully-calibrated reforms, Senator Tillis recently said that the PTAB is no longer a death squad for patents. It is indeed a new day at the PTAB.” While many would not agree, it is generally accepted that Iancu’s administration has been a boon for patents, and the IP community will no doubt be sad to see him go.