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ARTICLE · 30 DECEMBER 2014

Federal Circuit Rejects Section 101 Challenge To Software Patent

Since the Supreme Court’s decision earlier this year in Alice Corp. v. CLS Bank Int’l., 134 S.Ct. 2347 (2014), the Federal Circuit has decided a series of cases in which it invalidated software patents for failing to claim eligible subject matter under 35 U.S.C. § 101.

United StatesIntellectual Property

Since the Supreme Court's decision earlier this year in Alice Corp. v. CLS Bank Int'l., 134 S.Ct. 2347 (2014), the Federal Circuit has decided a series of cases in which it invalidated software patents for failing to claim eligible subject matter under 35 U.S.C. § 101. As recently as mid-November, the Federal Circuit invalidated a patent that claimed a detailed method for providing internet content in exchange for watching an advertisement, reversing its pre-Alice ruling that the patent claimed patent-eligible subject matter. Ultramercial, Inc. v. Hulu, LLC, 2014 U.S. App. LEXIS 21633 (Fed. Cir. Nov. 14, 2014). On December 5, however, a Federal Circuit panel held in a 2-1 decision written by Judge Chen that the claims of a software patent relating to Internet e-commerce "clear the § 101 hurdle." DDR Holdings, LLC v. Hotels.com, L.P., 2014 U.S. App. LEXIS 22902 (Fed. Cir. Dec. 5, 2014), found here.

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