High Court: Implementation of Abstract Idea With Computer Not Patent-Eligible

A method, a computer system, and a computer-readable medium to carry out a method for ensuring that a party to a contract has funds in its account to fulfill the contract are drawn to a patent-ineligible abstract idea, the U.S. Supreme Court held June 19 in a unanimous decision (Alice Corp. Pty Ltd. v. CLS Bank Int’l, U.S., 13-298, 6/19/14).

Affirming a ruling by the U.S. Court of Appeals for the Federal Circuit, the high court June 19 echoed a 2010 ruling that killed a patent on a computer algorithm for hedging investment risks.

The court’s opinion was ...