CLS Bank, Int'l v Alice Corp. Pty. Ltd., No. 11-1301 (Fed. Cir. 2013)Annotate this Case
Alice Corporation owns three patents covering a computerized trading platform for exchanging obligations in which a trusted third party settles obligations between a first and second party so as to eliminate “settlement risk.” Settlement risk is the risk that only one party’s obligation will be paid, leaving the other party without its principal. The trusted third party eliminates this risk by either exchanging both parties’ obligations or exchanging neither obligation. CLS sought a declaration of invalidity; Alice counterclaimed infringement. The district court ruled in favor of CLS, holding that each asserted claim of the four patents is invalid for failure to claim patent eligible subject matter. In 2012, the Federal Circuit reversed, finding that the system, method, and media claims were directed to practical applications of invention falling within the categories of patent eligible subject matter defined by 35 U.S.C. 101. Upon consideration en banc, a majority of the court affirmed the district court’s holding that the asserted system, method and computer-readable media claims are not directed to eligible subject matter under 35 U.S.C. 101.
This opinion or order relates to an opinion or order originally issued on July 9, 2012.