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Wednesday, June 03, 2015

Are Business Method Patents still valid?

Business method claims have had less luck than software claims after the Supreme Court’s Alice decision. Most business method claims reviewed by the Federal Circuit are found invalid under Section 101 for merely reciting an abstract idea. As an example of business method claims found valid under Section 101 post-Alice, we have to turn to the Patent Trial and Appeal Board (“PTAB”), which recently found valid business method claims directed towards a method for processing paper checks in U.S. Bancrop v. Solutran, Inc. During the review, the PTAB examined each claim as a whole finding that the method for processing paper checks “is more akin to a physical process than an abstract idea.” The PTAB reasoned that limitations, such as “receiving said paper checks and scanning said checks with a digital scanner,” and “comparing by a computer said digital images,” cause the claim as a whole to recite patent-eligible subject matter rather than merely an attempt to claim “fundamental economic practices, mathematical algorithms, or basic tools of scientific and technological work.” Reasoning that the claims were not directed towards an abstract idea, the PTAB did not analyze the claims under the second prong of the Alice/Mayo test.

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