By Michael D. Bednarek and Amy E. Simpson and Ryan B. Hawkins of Paul, Hastings, Janofsky & WalkerMichael Bednarek is a partner in the Intellectual Property
and Litigation practices in the Washington, D.C. office of Paul, Hastings, Janofsky & Walker.
Amy Simpson is a senior associate focusing on patent litigation in Paul Hastings' San
Diego office. Ryan Hawkins is a litigation associate also in Paul Hastings’ San
Diego office.
Like Clint Eastwood as the law-abiding sheriff trying to bring order to a town in the
wild wild west, the United States Court of Appeals for the Federal Circuit (“Federal
Circuit”) has established a framework for resolving the long simmering “software
and business method patent” fray. The Federal Circuit in In re
Bilski1 struggled
to align fifty year old Supreme Court precedent with information age innovations. Future
decisions will flesh out the final outcome under the “machine-or-transformation”
framework introduced in Bilski, but several things are already clear. To begin with,
software and financial service sector patents have survived. The patent system is not a relic of
the 20th century after all. On the other hand, the days of patents being issued for
abstract processes and common sense “methods” are over. Thosee who might be
in...