no longer business as usual patent-eligibility of “business methods” nicholas milne senior...
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No longer business as usualPatent-eligibility of “business methods”
Nicholas MilneSenior AssociateBaxter IP
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2. Patentable?Patentable or not? Example 1 of 3
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3. Patentable?Patentable or not? Example 2 of 3
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4. Patentable?Patentable or not? Example 3 of 3
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5. Patentable?Patentable or not? Score sheet
Patent Application Patentable?
Mortgage Reward Programme
Loan processing system and method
Valuation Indifferent Non-Capitalization Weighted Index and Portfolio
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5. Patentable?Patentable or not? Score sheet
Patent Application Date
2003204280 Mortgage Reward Programme Accepted2008-03-18
2001097126 Loan processing system and method Accepted2006-06-15
2005213293 Valuation Indifferent Non-Capitalization Weighted Index and Portfolio
Refused2010-December-2010
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6.7. Decisions
1959 20122006
1 432 3 4 5 6 7 8 109 1121
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Positions
Patent Attorneys Delegates
Examiners
•Computer implementation is patentable
•No more “tech washing”•Computers “merely incidental”•“Substance over form”
•“Business methods” not patentable
?
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8. LegislationPatents Act:
“manner of new manufacture”
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9. Court decisions
NRDC
“offers some advantage which is material, in the sense that the process belongs to a useful art as distinct from a fine art”
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10. Court decisions
CCOM
“a mode or manner of achieving an end result which is an artificially created state of affairs of utility in the field of economic endeavour”
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11. Court decisions
Grant
“Business methods“ not unpatentable
Test
“Manner of manufacture”
Irrespective of field
Not patentable
“intellectual information”
mathematical algorithm
Mere working directions
scheme without effect
“useful product” result
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Distinguish between embodiment and result
Embodiment Result
•Practical application?•Commercial or industrial applicability
Manner of manufacture?
Not relevant
Summary
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12. Application
artificially created state of affairs
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13. Application
Not artificially created state of affairs
A method of protecting an asset using trusts
Hedging losses in the energy industry by investing in other segments of that industry
Computer Application
calculating the Arrhenius equationA process for curing synthetic rubber by
Computer
Not patentable
Patentable
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Positions
Patent Attorneys Delegates
Examiners
•Computer implementation is patentable
•No more “tech washing”•“Substance over form”•Computers “merely incidental”
•“Business methods” not patentable
?
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Patentable if execution in a computer environment
For
Change in state or information in a part of a machine Grant
Welcome Real-Time
Writing of new information to the Behaviour file and the printing of the coupon
Final share price momentarily fixed for recording
State Street Against
GrantSchemes without effect are not patentable
Bilski
A particular technological environment ≠ patent eligible
DiehrInsignificant post-solution activity
Amazon 1-click
practical embodiment not patentable
14, 15 .Patent Attorneys
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Positions
Patent Attorneys Delegates
Examiners
•Computer implementation is patentable
•No more “tech washing”•“Substance over form”•Computers “merely incidental”
•“Business methods” not patentable
?
Invention Pathways [2010]
• 1. An invention specific commercialization system to facilitate success of inventions, the system including the steps of:– a) applying for patent protection,– b) conducting a review,– c) preparing a research and development plan,– d) conducting prototype testing,– e) determining product positioning,– f) conducting a manufacturing checklist,– g) entry of the information above into an electronically fillable
checklist – h) policing compliance
16-19. Delegates
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Delegate’s Position
Peripheral or subordinate physical effect not enough
Computer “Merely incidental”
Substance over form
16-19. Delegates
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Positions
Patent Attorneys Delegates
Examiners
•Computer implementation is patentable
•No more “tech washing”•“Substance over form”•Computers “merely incidental”
•“Business methods” not patentable
?
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• Examiner approach– Step 1: Exclude computer as “merely incidental”– Step 2: What’s been “added” or “discovered”– Step 3: Is what’s been “added” or “discovered” patentable (i.e.
technical) or is it a “business method”.
20-21. Examiners
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Federal Court of Canada
• The Commissioner’s Approach– “Form and substance approach” / “Computer incidental”– What was “added” or “discovered” was streamlining ordering method
= ∴ “business method”– “Technology” requirement
22,23. Amazon 1 Click
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Federal Court of Canada
• No “tradition” for the exclusion of “business methods”• Reject “form and substance approach”• “Technological” requirement too restrictive• Practical application rather physicality of the invention.
24. Amazon 1 Click
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Federal Court of Canada
[78] The absolute lack of authority in Canada for a “business method exclusion” and the questionable interpretation of legal authorities in support of the Commissioner’s approach to assessing subject matters underline the policy driven nature of her decision. It appears as if this was a “test case” by which to assess this policy, rather than an application of the law to the patent at issue.
25. Amazon 1 Click
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Federal Court of Appeal
• Agreed• Qualified
– Abstract idea not patentable subject matter merely because it has a practical embodiment
– Inappropriate for non-expert to pursue purposive construction
26. Amazon 1 Click
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Expected outcome in Australia
• No exclusion to “Business methods”• “Substance over form” wrong• Mere practical embodiment insufficient• Test remains as per NRDC
27. Expected Outcome
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Avoid rejection
• Prosecution– Defer & Delay– Innovation System
• Drafting– Claims must result in “artificially created state of affairs”– Computer involvement not enough
28. Tips to Avoid Refusal
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A computing device for generating invention specific noncompliance notification data, the computing device comprising:
a processor for processing digital data;a memory device for storing digital data including computer program code and being
coupled to the processor;a data interface for sending and receiving digital data and being coupled to the
processor, wherein the processor is controlled by the computer program code to:receive, via the data interface, filing date data representing the filing date of a patent
application;calculate requirement data representing at least one requirement and associated
completion date at least in accordance with the filing date data;receive, via the data interface, compliance data representing compliance with the at
least one requirement;…send, via the data interface, noncompliance notification data representing
noncompliance with the at least one requirement.
28. Tips to Avoid Refusal
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