Interesting Read...... Fed. Circ. Finds Another Alice

New Post Public Reply Private Reply Replies (2) Message Board
CyberC
485
Interesting Read......


Fed. Circ. Finds Another Alice Ruling Came Too Soon
Share us on: By Ryan Davis

Law360 (February 14, 2018, 7:22 PM EST) -- The Federal Circuit faulted a lower court Wednesday for invalidating data manipulation patents as abstract ideas on a motion to dismiss, the second time in days the court has held that a judge too quickly found that patents failed the U.S. Supreme Court’s Alice test.

As it did in a different case on Feb. 8, the Federal Circuit ruled that there were factual disputes about whether two Aatrix Software Inc. patents claim patent-ineligible subject matter, so Judge Harvey E. Schlesinger of the Middle District of Florida was wrong to dismiss the company’s suit against Green Shades Software Inc.

The appeals court held 2-1 that in addition to incorrectly finding that every claim of the two patents covered only the abstract idea of collecting and organizing data, the judge also should not have denied Aatrix’s motion to file an amended complaint the company said would show that the patents contained something more than conventional activities and were thus not abstract.

"These allegations, if accepted as true, contradict the district court’s conclusion that the claimed combination was conventional or routine," the Federal Circuit said. "Therefore, it was an abuse of discretion for the district court to deny leave to amend."

The ruling follows the same reasoning in last week’s Berkheimer v. HP Inc. decision, in which the appeals court said a judge wrongly granted summary judgment finding a patent ran afoul of the high court’s Alice holding that abstract ideas implemented on a computer are not patent-eligible under Section 101 of the Patent Act.

The Berkheimer ruling was the first time the appeals court expressly held that evaluating the validity of patents under Alice involves factual questions about whether a patent contains inventive components that make it patent-eligible. According to experts, that could make it much tougher for an accused infringer to invalidate patents under Alice early in a case.

The high court held that patents are invalid if they cover abstract ideas and do not transform them into something more than "well understood, routine and conventional activities previously known to the industry." The Federal Circuit has now twice emphasized that what is routine and conventional is a factual issue that often cannot be decided on summary judgment or motions to dismiss.

The court said Wednesday that the allegations in Aatrix’s 55-page amended complaint, which is 50 pages longer than its initial complaint, “suggest that the claimed invention is directed to an improvement in the computer technology itself and not directed to generic components performing conventional activities.”

The case began in February 2015, when Aatrix, a North Dakota-based company that makes accounting software, filed suit alleging that Florida-based Green Shades' Tax Filing Center software infringed its patents. The case was dismissed just over a year later.

Both the Berkheimer and Aatrix decisions were written by Judge Kimberly Moore and joined by Judge Richard Taranto. While the Berkhimer decision was unanimous, with Judge Kara Farnandez Stoll also on the panel, Judge Jimmie Reyna wrote a strong dissent in the Aatrix case saying he disagreed with "the majority's broad statements on the role of factual evidence" in the patent-eligibility analysis.

"Our precedent is clear that the Section 101 inquiry is a legal question," he said. "In a manner contrary to that standard, the majority opinion attempts to shoehorn a significant factual component into the Alice Section 101 analysis."

Making patent-eligibility a factual inquiry opens the door to "the introduction of an inexhaustible array of extrinsic evidence, such as prior art, publications, other patents and expert opinion," which "would turn the utility of the [motion to dismiss] procedure on its head," he said.

"This contradicts our case law that patent ineligibility under Section 101 is a question of law, and that it can be appropriately decided on a motion to dismiss," he said.

John Lunseth of Briggs & Morgan PA, an attorney for Aatrix, said the majority's holding "is a breath of fresh air in the law as applied following the U.S. Supreme Court's decision in Alice."

"The courts were, in too many cases, simply picking up and reading the patent, and with no or very limited factual information, deciding a particular software patent was patent-ineligible," he said. "We are gratified to see that there is a trend to return to the very long-standing law that ... dismissal is not appropriate where there are material issues of fact."

Joseph Bain of Shutts & Bowen LLP, an attorney for Green Shades, said the ruling is only procedural and did not address the merits, adding that the company believes it will prevail when the case returns to district court.

"Now that we know crystal-clear what Aatrix thinks the inventive concepts are, we will be able to show that they are routine and conventional on remand," he said.

Matthew Rizzolo of Ropes & Gray LLP, who is not involved in the case but follows the Federal Circuit's eligibility rulings, said Judge Reyna’s dissent and the potential of the rulings to impact a large number of cases make it likely the court will be asked to review this issue en banc.

“This decision combined with Berkheimer, if they hold, constitute a pretty high bar for 101 challenges at the outset of cases,” he said.

He noted that the new difficulties accused infringers will face in quickly getting patents invalidated under Alice in court could prompt more of them to make Section 101 challenges using the America Invents Act’s covered business method review program if their motions to dismiss are denied.

The patents-in-suit are U.S. Patent Numbers 7,171,615 and 8,984,393.

Judges Kimberly Moore, Richard Taranto and Jimmie Reyna sat on the panel for the Federal Circuit.

Aatrix is represented John Lunseth II of Briggs & Morgan PA.

Green Shades is represented by Joseph Bain and Harold Gillis of Shutts & Bowen LLP.

The case is Aatrix Software Inc. v. Green Shades Software Inc., case number 2017-1452, in the U.S. Court of Appeals for the Federal Circuit.

--Editing by Aaron Pelc.
0 Comments

Zerify Inc (ZRFY) Stock Research Links

ZRFY Board Company Profile Buy Rating Time & Sales News Filings Financials
Scroll down for more posts ▼

Top 10 Most Recent News Articles

Ornellaia's 2026 Harvest: Adapting to Nature's Whims

Updated Category News Views 7

A Year Marked by Weather's Unpredictable Dance Nobody said making wine was a walk in the park, and the folks at Ornellaia know better than most how to roll with whatever nature throws their way. The 2026 harvest story is as much about unlocking the secrets of the soil as it is about navigating the quirks of the weather. Situated in Bolgheri, Italy, this year's vintage...

Continue Reading
EMCO's New Automated Facility Could Shake Industry

Updated Category News Views 7

A Novel Leap in Production Capacity EMCO Industries just put a solid foot on the accelerator with their brand-new, shiny, fully automated plant over in Claremore, Oklahoma. If you're glancing at heavy-duty trailer springs, you can't ignore the fact that this is a multimillion-dollar investment. Heck, this monstrous 30,000-square-foot facility more than doubles what EMCO...

Continue Reading
HelloNation Brings 'Edvertising' to NC REALTORS® Event

Updated Category News Views 6

HelloNation's Bold Step into Real Estate Networking October 8th to the 11th is shaping up to be a pivotal few days in Wilmington, North Carolina. Here’s the scoop: HelloNation, known for its innovative 'edvertising' model, is joining the bustling crowd at the 2026 NC REALTORS® Convention. This isn’t just any get-together—it's the grandest annual jamboree for real...

Continue Reading
Duke Energy's Cost-Protection Plan Shields Ratepayers

Updated Category News Views 4

Shielding Customers From Data Center Costs Let's get right into the thick of it: Duke Energy's latest move is a strategic one, shrouded in industry terms but with a real impact on regular folks' wallets. The company's agreement with heavyweights like Amazon, Google, and Meta aims to protect existing customers in North Carolina from getting hit with the costs of powering...

Continue Reading
U. of Phoenix and LACCD Launch 3+1 Degree Pathway

Updated Category News Views 5

Opening the Floodgates for Ambitious Community College Students When it comes to climbing the educational ladder, not everyone starts at the same rung. That's a fact we've all come to terms with in one way or another. Enter the University of Phoenix and the Los Angeles Community College District with a solution to expand educational access. The 3+1 Program: A Cost-Saving...

Continue Reading
Vitamin Angels Drives Global Nutrition Advancements

Updated Category News Views 6

Navigating the Waters of Global Nutrition Bet you never thought a vitamin program could spearhead the front lines of healthcare, huh? Vitamin Angels are grinding away under the radar, shifting the landscape for maternal and child nutrition. At the heart of it all is their vision to make UNIMMAP multiple micronutrient supplementation (MMS) a staple in the global playbook....

Continue Reading
Gong, Agentforce, Avoma Crowned 2026 CI Champions

Updated Category News Views 5

Diving Deep into Conversation Intelligence There's a lot to unpack when three software titans hog the spotlight, and that's exactly what's happening in the world of conversation intelligence this year. It's like we've hit the jackpot with Gong, Agentforce Sales, and Avoma carving out their turf as the 2026 Champions, according to the venerable Info-Tech Research Group....

Continue Reading
C3EL Expands Federal Footprint with Strategic Contracts

Updated Category News Views 3

Pushing Boundaries in Federal Contracts What a ride C3EL's had in Government Fiscal Year 2026! Let me tell you, they’ve bagged a bunch of contracts that’d make any company’s mouth water. Kicking things off, they snagged a prime cybersecurity contract from the U.S. Air Force. Considering our current cybersecurity landscape, that's like striking gold. But they...

Continue Reading
Wally Disrupts Dental Industry with $25M Funding

Updated Category News Views 5

A New Breath of Fresh Air for Dental Care Dental visits—a tedious, costly affair we've all dreaded. So, when Wally rolls out an overhaul in this stale landscape, it's worth taking notice. With $25 million in their pockets from Series A funding led by Maveron, Wally's swaggering in with a plan to flip the script on dental care across the nation. Redefining the Dental...

Continue Reading
OCI N.V. Secures a Win in Court; EGM Proceeds as Planned

Updated Category News Views 10

OCI Dodges a Bullet in Amsterdam Court Stepping into the courtroom drama, OCI N.V. just took home a win as the Amsterdam Court of Appeal's Enterprise Chamber gave them a clean bill of health, kicking out the inquiry request from VEB and a bunch of other shareholders. The judges weren't convinced there was anything fishy going on, so they tossed the inquiry petition and...

Continue Reading

Top 5 Most Recently Viewed Articles

Orano Faces Increased Challenges in Niger Amid Control Issues

Updated Category News Views 273

Orano's Current Situation in Niger In recent months, Orano has raised concerns regarding its operations in Niger, particularly with respect to the governance of SOMAÏR, where it holds the majority share. This situation has been complex, as the decisions made during board meetings are no longer being enacted, leading Orano to confirm that the Nigerien authorities have...

Continue Reading
Central New Energy Showcases Innovations at Global Event

Updated Category News Views 133

Central New Energy Takes Center Stage Recently, a significant event took place at the Istanbul Expo Center when the World Energy Congress & Exhibition unfolded. This prestigious gathering, known for being one of the longest-running new energy industry events, attracted over 300 exhibitors who showcased innovative technologies and solutions in the energy sector....

Continue Reading
Challenges for Short Sellers in the Energy Sector Ahead

Updated Category News Views 124

Challenges Faced by Short Sellers in the Energy Sector As the new year begins, short sellers in the energy sector have encountered difficulties, reflected in approximately $21.9 billion in year-to-date mark-to-market losses. This statistic highlights a decrease of 1.59%. Ihor Dusaniwsky, the Managing Director of Predictive Analytics at S3 Partners, noted that both the...

Continue Reading
Innovative Projects by NIIMBL to Transform Biopharmaceuticals

Updated Category News Views 248

NIIMBL Launches New Projects to Revolutionize Biopharmaceutical Manufacturing The National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL) has recently unveiled 11 transformative projects aimed at addressing various challenges in the biopharmaceutical sector. These initiatives are part of Project Call 8.1, with an impressive total funding of...

Continue Reading
Salarius and Decoy Merge: Pioneering Next-Gen Therapeutics

Updated Category News Views 168

Exciting Merger Completion Between Salarius Pharmaceuticals and Decoy Therapeutics This merger marks a strategic alliance designed to propel the development of advanced peptide conjugate therapeutics through Decoy’s innovative IMP3ACT platform. Together, this unified company begins its journey with a solid pro forma cash position of $14 million, following the merger and...

Continue Reading