Supreme Court Bilski Decision Confirms Patentability of Some Software and Business Methods
In a decision today affirming the Federal Circuit and the United States Patent & Trademark Office, the Supreme Court held that a patent application on a method of hedging risk in commodities trading is not patentable subject matter. All nine justices concurred in the result, though the “majority” opinion, authored by Justice Kennedy, only included five justices (and two parts of the opinion only included four).
The Court refused to adopt the “bright line” rule applied by the Federal Circuit, and instead held that Bilski’s claimed method was merely an abstract idea ineligible for patenting. The Court’s decision confirms that typical software — running on hardware and accomplishing non-abstract results — continues to be patentable subject matter as it has for several decades, and also suggests that some business methods are patentable as long as they are not abstract ideas like Bilski’s claim.
Scott Bain, SIIA Litigation Counsel, commented: “Today’s decision preserves a delicate but important balance. It keeps the door closed to patenting mere abstract ideas, which many ‘business method’ patent applications have been. But just as importantly, it affirms the continued viability of patenting useful software applications, which will allow software companies to continue in their role as a driver of economic growth.”
“However, much work remains to be done in improving patent quality,” said Bain, referring to ongoing patent reform discussions in the U.S. Congress.
Bain had authored the amicus brief submitted by the SIIA, urging rejection of Bilski’s application but continued viability of software patenting.
