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• W259415138 abstract "The scope of patentable subject matter has continued to generate fierce debate even after Congress created Federal Circuit in 1982 to promote uniformity and predictability in nation's patent laws. (1) Section 101 of Patent Act of 1952 (Section 101) defines patentable subject matter as any new and useful process, machine, manufacture, or composition of (2) In 1972, Supreme Court explained in Gottschalk v. Benson that [the t]ransformation and reduction of an article 'to a different state or thing' is clue to patentability of a process claim that does not include particular machines. (3) In 2008, Federal Circuit held that Benson's was the sole governing [section] 101 analyses. (4) Last Term, in Bilski v. Kappos, (5) Supreme Court rejected both Federal Circuit's holding and suggestion of an alternative categorical ban on business method patents. (6) Instead, Court denied Bilski's application on finding that it was an unpatentable abstract (7) Although Court purported to decide case narrowly to avoid impos[ing] limitations on Patent Act that are inconsistent with Act's text, (8) Court's interpretation of Section 101 all but guarantees increased uncertainty in an already convoluted area of patent law because it denies Federal Circuit ability to create a clear and predictable patentable subject matter standard and encourages Federal Circuit to experiment with doctrine through case-by-case analysis. In initial patent application Bernard Bilski and Rand Warsaw filed on April 10, 1997 they described how buyers and sellers of commodities in energy market can protect, or hedge, against risk of price changes. (9) Bilski's invention required only three steps: first, selling commodities to consumers at a fixed rate based on historical averages and corresponding to risk position of consumers; second, identifying market participants for that commodity having a counter-risk position to consumers; and third, initiating a series of transactions between commodity seller and market participants at a second fixed rate that balances risk position of series of consumer transactions. (10) Bilski's application focused on using this process in energy markets. (11) The patent examiner rejected Bilski's application, stating that because it was not limited to a practical application of abstract idea of hedging risk, it was not directed to technological arts. (12) In 2006, Board of Patent Appeals and Interferences affirmed rejection, concluding that Bilski's application involved only mental steps that do not transform physical matter and was directed to an abstract idea. (13) In 2008, United States Court of Appeals for Federal Circuit heard case en banc and affirmed. (14) The majority opinion rejected useful, concrete and tangible result that had governed patentable subject matter since Slate Street Bank (15) in 1998. (16) The court held that, [a] claimed process is surely patent eligible under Section 101 if: (1) it is tied to a particular machine or apparatus, or (2) it transforms a particular article into a different state or thing. (17) According to court, this test was the sole governing [section] 101 analyses of patentable processes. (18) Applying machine-or-transformation test, court held that Bilski's method claimed nonpatentable subject matter. (19) The Federal Circuit hearing also produced four other opinions, (20) but only one judge concluded that application claimed only patentable subject matter. (21) The Supreme Court affirmed judgment (22) in an opinion by Justice Kennedy. (23) Justice Kennedy's opinion purported to defend plain meaning of Section 101 from efforts to restrict reach of patent laws by reading new limitations into statute. …" @default.
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• W259415138 date "2011-01-01" @default.
• W259415138 modified "2023-09-26" @default.
• W259415138 title "Patentable Subject Matter in Bilski V. Kappos" @default.
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