The Supreme Court issued a massive ruling last week in the case of CLS v. Alice regarding software patents. In a previous post, I discussed the importance of this case because it would determine whether software patents should be allowed at all. This has been an extremely controversial issue, with many opposers claiming that a software-implemented solution of an already existing invention should not be given patent protection since it is not novel or original.
In the case, Alice Corp held a patent for a financial solution which had been implemented in a software mechanism. The financial solution, however, was a commonly known one which had no unique novelty except for the fact that it was being done on a computer, whereas before it had been done on paper. So, they sued over this patent and CLS claimed that the patent should be invalidated on the basis that it has no uniqueness and that any person holding ordinary skill in the art would be able to come up with a similar solution.
The Supreme Court's ruling had two major pillars, which will have a major impact on the way that software patents are granted in the future. First, they determined that abstract ideas cannot be patented. This was relevant because the ideas patented by Alice Corp were abstract theories about how to implement a financial solution. Second, they ruled that the mere implementation of an idea in a software-based mechanism is insufficient.
This was a hugely important ruling because it will redefine the way in which software solutions are patented and protected. In the future, I expect that it will be much more difficult to get a software patent but I believe this is a good thing for a few main reasons. First, it will increase the competitiveness of the market and allow many more people to implement software solutions. This is a really great thing because more people will be able to innovate in the field of software without the worry of infringing on patents. Second, it will remove the ability of people to make patents based on pre-existing solutions, which should drive people towards new inventing.
Sources:
http://www.vox.com/2014/6/26/5841192/why-last-weeks-ruling-was-bad-news-for-software-patents
http://www.scotusblog.com/case-files/cases/alice-corporation-pty-ltd-v-cls-bank-international/
In the case, Alice Corp held a patent for a financial solution which had been implemented in a software mechanism. The financial solution, however, was a commonly known one which had no unique novelty except for the fact that it was being done on a computer, whereas before it had been done on paper. So, they sued over this patent and CLS claimed that the patent should be invalidated on the basis that it has no uniqueness and that any person holding ordinary skill in the art would be able to come up with a similar solution.
The Supreme Court's ruling had two major pillars, which will have a major impact on the way that software patents are granted in the future. First, they determined that abstract ideas cannot be patented. This was relevant because the ideas patented by Alice Corp were abstract theories about how to implement a financial solution. Second, they ruled that the mere implementation of an idea in a software-based mechanism is insufficient.
This was a hugely important ruling because it will redefine the way in which software solutions are patented and protected. In the future, I expect that it will be much more difficult to get a software patent but I believe this is a good thing for a few main reasons. First, it will increase the competitiveness of the market and allow many more people to implement software solutions. This is a really great thing because more people will be able to innovate in the field of software without the worry of infringing on patents. Second, it will remove the ability of people to make patents based on pre-existing solutions, which should drive people towards new inventing.
Sources:
http://www.vox.com/2014/6/26/5841192/why-last-weeks-ruling-was-bad-news-for-software-patents
http://www.scotusblog.com/case-files/cases/alice-corporation-pty-ltd-v-cls-bank-international/
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