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Alternative Market Briefing

U.S. Supreme Court says business methods can be patented, but it doesn't set standards

Friday, July 02, 2010

Komfie Manalo, Opalesque Asia:

A fiercely divided U.S. Supreme Court on Monday issued its long-awaited decision in Bilski v. Kappos, affirming the Court of Appeals' decision that a patentable business method must undergo a process or method related to a particular machine or itself transform an object. The order also reverses the Federal Circuit's ruling that "machine or transformation" was the only test to be used for patent eligibility.

In a letter to its clients this week, received by Opalesque, international law firm Tannenbaum Helpern Syracuse & Hirschtritt LLP, which is based in New York, said that the SC decision had not set any standards or guidance on how to establish which business method is patentable.

"The Court held that, although the particular business method at issue in the case was un-patentable, business methods as a class are not un-patentable. However, the Court gave very little useful guidance on what the standards are. It held that the most recent attempt by the Federal Circuit Court of Appeals (which hears all appeals in patent cases) to set a standard for patentability of business methods was incorrect, and basically told that court to continue struggling with the problem," the law firm laments.

The letter added that the general category of business method patents includes subject matters such as investment trading strategies, medical diagnostic tests and computer software......................

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