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ARTICLE · 03 NOVEMBER 2011

IP Update, Vol. 14, No. 10, October 2011

McDermott Will & Emery
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The U.S. Court of Appeals for the Federal Circuit held that a method for distributing online media to consumers by having the consumer first watch a paid advertisement constitutes patent-eligible subject matter under 35 U.S.C. § 101. Ultramercial, LLC v. Hulu, LLC, Case No. 10-1544 (Fed. Cir., Sept. 15, 2011) (Rader, C.J.).

United StatesIntellectual Property
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Edited by Paul Devinsky and Rita Weeks

Patents / § 101

Internet Advertising Method Found to Be Patent-Eligible

By Gregory D. Yoder

The U.S. Court of Appeals for the Federal Circuit held that a method for distributing online media to consumers by having the consumer first watch a paid advertisement constitutes patent-eligible subject matter under 35 U.S.C. § 101. Ultramercial, LLC v. Hulu, LLC, Case No. 10-1544 (Fed. Cir., Sept. 15, 2011) (Rader, C.J.).

Ultramercial obtained a patent claiming a method of distributing copyrighted products (e.g., songs, movies and books) over the internet. Under the patented method, the consumer receives a copyrighted product for free in exchange for viewing an advertisement, and the advertiser pays for the copyrighted content. After Ultramercial sued Hulu, YouTube and WildTangent for infringement of its patent, the district court, citing Bilski (see IP Update, Vol. 11, No. 11) granted WildTangent's motion to dismiss on the

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