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New Patent Points Way for Tech Industry Post SCOTUS Alice Decision

Post-Alice Decision Innovators Need New Strategies to Gain USPTO Approval;

CardinalCommerce Patent Shows the Way Forward

Patents have long been a key component of the innovation engine driving the most dynamic sectors of our economy.

The U.S. Supreme Court’s decision in a landmark patent case (Alice Corp. v. CLS Bank International) threw a wrench into that innovation engine. The decision prompted many legal experts to predict chaos at the U.S. patent office and to conclude that inventions in some tech sectors, including ecommerce and fin-tech, might be largely excluded from patent protection. Post-Alice, the rejection rate for new payment technologies, for example, went above 90%, more than four times the pre-Alice rate. Without the ability to protect intellectual property, innovators are less likely to obtain the investment capital needed to fund the development of new products and services. And, without such innovation we risk stalling the engine driving much of our economy.

But a patent issued August 30 to CardinalCommerce looks to be a critical turning point -- one that shows the way forward for securing software patents in a post-Alice world.

As a result of its lack of specificity around key terms, the Alice decision created ambiguity for both patent applicants and patent examiners. Most impacted were innovations in the areas of software and business methods. Now there is hope.  The recent patent grant to Cardinal clearly demonstrates patent applications for new software inventions can be successful. But applicants must be prepared to invest more time in pursuing their inventions at the patent office and preparing their patent applications.  For example, be prepared to spend more time with your patent attorneys working on deeper and challenging arguments for allowance. Cardinal’s long-term commitment to innovation and to protecting its intellectual property has enabled them to prevail even in the post-Alice environment.

Five actions tech companies can take now to improve their odds of successfully patenting their software innovations can be found HERE!

We expect that over the next year we will see a significant increase in the number of software and business method patents issued, not to the same levels as in the past, but a significant increase nonetheless. With proper tuning we can get our innovation engine running a bit more smoothly, in spite of the wrench that is Alice.

Cardinals many patents demonstrates our ongoing commitment to innovation and leadership of the global eCommerce platform.

With Your One Connection to Cardinal, we can FutureProof™ your Business. Connect with us today to learn more!


Five actions tech companies can take now to improve their odds of successfully patenting their software innovations can be found HERE!


Posted by Kent Richardson

Kent is the managing partner of the Richardson Oliver Law Group. Kent counsels clients on a variety of patent and business matters including patent strategy, licensing, valuation, and prosecution. His broad background in IP management (including five patents of his own) provides clients with a strong resource to build, manage, license and defend their patents. He specializes in patent development, patent portfolio management, patent marketing, and patent buying and selling. Kent has been a general counsel at both private and public companies. Practice/technical competence: patent development and management, patent business operations consulting, patent buying programs, patent monetization, patent assertion defense, patent prosecution, patent diligence, IP licensing, including contracts, royalty rate benchmarking, strategy development, and open source diligence. Registrations: registered to practice before the U.S Patent and Trademark Office Education: University of Alberta, Canada (B.Sc, Computer Engineering, 1989 and J.D., 1993) Memberships: American Bar Association, California Bar Association

Topics: CardinalCommerce, Alice

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