CBM Sunsets At The PTAB….For Now

Transitional CBM Challenge Program Sunsets Today

The America Invents Act (AIA) placed an expiration date on Covered Business Method (CBM) challenges. That is, CBM review proceedings were designed as a "transitional program" that would sunset 8 years from enactment of the AIA - today is that day.

The legislative rationale behind setting an expiration for CBM was to target specific patents, namely, those business method patents that issued between the State Street Bank, and Bilski decisions. These patents were considered to be largely invalid under 35 U.S.C. § 101 having been issued under the more liberal 101 standard of State Street, and, providing a USPTO option for such 101 challenges was argued by the financial industry as the most efficient and cost effective path to resolution (as compared to the litigation of such issues by non-traditional patent defendants).