Mortgage Grader, Inc. v. First Choice Loan Servs., Inc., No. 15-1415 (Fed. Cir. 2016)
Annotate this CaseMG’s patents relate to “financial transactions including a method for a borrower to evaluate and/or obtain financing.” MG sued for infringement. Defendants claimed that the patents failed to claim patent-eligible subject matter. The judge’s Standing Patent Rules (SPRs), developed “based largely on information obtained from over 100 patent practitioners and professors, a review of all the other local patent rules, and a review of related literature,” required that a party opposing an infringement claim serve invalidity contentions after a scheduling conference. Defendants served invalidity contentions, including the statement: “Defendants do not present any grounds of invalidity based on 35 U.S.C. 101 . . . at this time. The final claim construction may require such an assertion of invalidity.” The SPRs required final infringement contentions and expert reports following the issuance of an order construing claim terms. After the claim construction order, final invalidity contentions were served, citing 35 U.S.C. 101. The court agreed that an intervening Supreme Court decision constituted good cause for reviving the invalidity claim and later concluded that all of the claims were directed to the abstract idea of “anonymous loan shopping” and included no “inventive concept.” The Federal Circuit affirmed, upholding denial of MG’s motion to strike the section 101 defense and the finding that the asserted claims are directed to patent-ineligible subject matter.
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