US appeals court denies patent to 'abstract' risk management system

By Jacqueline Emigh | Published October 31, 2008, 4:10 PM

In yet another sign that it's getting harder to gain -- and keep -- "business method" patents, a pair of inventors lost an appeals court bid this week to patent an energy-related risk management system.

Can an inventor patent an "abstract process," something involving nothing more than thoughts? A US appeals court this week said "no" in a case concerning a patent request around a system for managing energy costs.

On Thursday, the U.S. Court of Appeals for the Federal Circuit ruled that the system did not qualify for a patent as a "business method," since it was not tied to a machine and did not bring about a "transformation," two patentability standards previously set by the US Supreme Court.

Inventors Bernard Bilski and Rand Warsaw lost in their attempt to challenge the U.S. Patent and Trade Office's rejection of of their patent application for a method of managing risk in the abrupt movements of energy costs.

Although business methods weren't even widely seen as patentable until a 1998 decision by the same appeals court, the U.S. Patent and Trade Office granted 1,330 patents of this kind in 2007 alone.

However, it seems as though "business methods" patents are now growing less likely to be granted -- or to endure, if they are indeed granted.

Last year, for example, US patent officials struck down one of the best known examples of a business method patent: Amazon's one-click purchase procedure.

As previously reported by BetaNews, Auckland, New Zealand resident Peter Calveley petitioned the US Patent and Trademark Office in 2005 to re-examine the 26 patent claims made by Amazon around its so-called "Method and System for Placing a Purchase Order Via a Communications Network."

To make his case, Calveley cited an existing 1999 patent for a system for ordering goods or services using "interactive TV." Yet Amazon maintained that the differences between the older concept and its own included Amazon's use of a shopping cart metaphor and a unique button for instigating purchasing.

At one time, the US Patent and Trade Office was convinced these claims were significant enough to distinguish Amazon's method from earlier approaches. However, the office ultimately struck down Amazon's claims, in a re-examination decision reached in October of 2007.

Comments

View comments by with a score of at least

Darn, I guess my plan to patent a 3D display that
uses light to be seen is out.

Score: 0

|

Now if software patents could be eliminated, all would be right in the world.

Score: 0

|

Amen to that. Because soon we might as well see people try to patent use of colors together, combinations of mouse clicks, etc.

Score: 0

|

Good to see some common sense is finally being used by the USPTO and the courts. It was getting out of hand for a decade or so.

Score: 0

|

Google rolls out real-time search, Near Me Now, extended personalization

Over time, searches from PCs and mobile phones will grow even "more personalized." But what about user privacy and search results that give you "the truth"?

Intel's marriage of CPU and GPU not ready for prime time

Although there will be an Intel component this month that can compute and plot in parallel, Betanews was told today, it won't be based on Project "Larrabee."

An alternative to Research in Motion's enterprise e-mail? There's an app for that

Good Technology today released an iPhone app compatible with its enterprise e-mail solution.

Playing catch-up in 2010: Windows Mobile, BlackBerry, and Symbian

Microsoft, RIM, and Nokia are each working on improved mobile operating systems. But could these efforts add up to too little, too late?

Windows fix for TLS security bug still forthcoming, won't be Tuesday

Anyone looking for a fix for last month's discovery of a potentially serious security hole in TLS and SSL may have to wait until everyone is ready to act together.

Not the first, not the last, technology predictions for 2010

Carmi Levy | Wide Angle Zoom: The real truth is probably that what went around in 2009, will come around to haunt us next year.

Google Goggles: Hands on with the Shazam of the Real World

Google today unveiled Goggles, its visual search lab for Android devices that identifies objects by sight.

Microsoft: Windows 7 Family Pack wasn't 'pulled,' it just sold out

If you hurry, you may still be able to find the last Family Pack upgrade editions hanging around retail store shelves, but probably not so much online.

Clever iPhone game returns after being bumped over a name dispute

The game's simple concept and multitude of platforms and puzzles manage to pull off a retro, 8-bit style that's reminiscent of an old Atari game given a modern makeover.

Report: Microsoft to randomize Europe's browser screen choices

The fact that "A" is for "Apple" was apparently at the heart of browser vendor objections to Microsoft's alternative to listing IE first.

Will Nokia's plans further alienate American consumers?

A look at Nokia's plans for the coming years does little to shine up the company's increasingly dull image.