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ARTICLE · 14 MARCH 2013

Nothing Non-Obvious About Applying Pre-Existing Technology To The Internet

McDermott Will & Emery
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Addressing the issue of obviousness of patents directed to Internet-based software, the U.S. Court of Appeals for the Federal Circuit reversed a district court's finding of non-obviousness, reasoning that performing previously known methods through an internet web browser is obvious.

United StatesIntellectual Property
D. Jeremy Harrison
D. Jeremy Harrison
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Addressing the issue of obviousness of patents directed to Internet-based software, the U.S. Court of Appeals for the Federal Circuit reversed a district court's finding of non-obviousness, reasoning that performing previously known methods through an internet web browser is obvious. Soverain Software LLC v. Newegg Inc., Case No. 11-1009 (Fed. Cir., Jan. 22, 2013) (Newman, J.).

The dispute arose from three patents directed to software system entitled "Transact" which facilitates electronic commerce or "e-Commerce." Individuals who purchase products online are familiar with this technology wherein a merchant's products are offered and purchased online through computers interconnected by a network. Upon acquiring the Transact software and patents, plaintiff Soverain sued Newegg and several other online retailers for patent infringement. While the other online retailers took paid-up licenses to the patents, Newegg refused to pay a license.

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