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Guest column by Bart Eppenauer.  Mr. Eppenauer is the Managing Partner of the Seattle appointment of Shook Hardy & Bacon and above Chief Apparent Counsel at Microsoft. In the interests of disclosure, Shook represents three of the abounding defendants/appellees in the McRo (Planet Blue) case discussed below. Mr. Eppenauer is not circuitous in that case.

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We accept accomplished a cardinal moment for the courts to accommodate added allusive advice on the contours of what absolutely is apparent acceptable accountable amount (rather than what is not) and a applicable framework for applying such guidance. A cardinal of important cases are afore the U.S. Supreme Cloister and the Federal Circuit involving apparent accountable amount accommodation in the deathwatch of Alice v. CLS Bank Int’l and Mayo Collaborative Services v. Prometheus Labs. Accustomed the aerial aishment amount of patents on Section 101 area at the Supreme Court, Federal Circuit, U.S. Commune Courts, and the Apparent Trial and Appeal Board (PTAB), absorbed stakeholders accept acceptable apropos on the approaching amount of patents involving software and activity sciences, and the fallout this could accept on American advance in these acute industries.

On March 21, 2016, Sequenom, Inc. filed a Petition for Writ of Certiorari gluttonous to annul the Federal Circuit’s accommodation abandoning its pre-natal abiogenetic testing apparent as a apparent disqualified accustomed law or phenomenon, in Sequenom, Inc. v. Ariosa Diagnostics, Inc. Ten canicule earlier, Versata Development Group additionally filed a Petition for Writ of Certiorari arduous assorted allegation by the Federal Circuit involving a Covered Business Adjustment (CBM) Apparent Review by the USPTO abandoning its software based hierarchical appraisement agent patent. See Versata Development Group, Inc. v. SAP America, Inc. Petitions for Writ of Certiorari on accountable amount accommodation were additionally filed in March in Cloud Satchel v. Barnes & Noble and Vehicle Intelligence Safety v. Mercedes-Benz USA. At the Federal Circuit, several important “abstract idea” cases are anon to be decided, including McRO (Planet Blue) v. Bandai Namco Games America on patents for automatic lip synchronization of 3D activated characters, Intellectual Ventures v. Symantec involving malware and spam apprehension and email description patents, and Thales Visionix v. USA apropos to a helmet army affectation arrangement patent. Several of these cases could accommodate an accomplished befalling for the courts to accommodate added accuracy on appliance of the Mayo/Alice analysis beneath Section 101.

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The Sequenom case in accurate may be the appropriate case for the Supreme Cloister to reexamine the boundaries of Section 101, abnormally accustomed the dramatic, if not unintended, appulse that Mayo and Alice accept had on accountable amount accommodation decisions. At the affection of Sequenom, the Cloister has addition befalling to actuate whether a atypical adjustment is apparent acceptable back it involves the analysis and analysis of artlessly occurring phenomenon. Petitioner Sequenom asserts that the Court’s Mayo accommodation set out ambiguous and indiscernible banned on Section 101 article that has breakable assurance in the apparent system, such that the affair is “particularly life-threatening to life-science innovators.” (Petition p. 12). Several Federal Circuit board assume to accede with this proposition. In his accedence in acknowledging the commune court’s accommodation beneath Section 101, Adjudicator Linn remarked:

I accompany the court’s assessment abandoning the claims of the ’540 apparent abandoned because I am apprenticed by the across-the-board accent of the analysis set out in Mayo…. In my view, the across of the additional allotment of the analysis was accidental to the accommodation accomplished in Mayo. This case represents the consequence—perhaps unintended—of that ample accent in excluding a admirable apparatus from the apparent aegis it deserves and should accept been advantaged to retain.

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In their accedence on abnegation of rehearing en banc, Board Lourie and Moore additionally acerb asserted that the Sequenom claims at affair were neither abandoned directed to a accustomed phenomenon, nor abstract, and “it is ailing to accept a aphorism that takes inventions of this attributes out of the branch of patent-eligibility on area that they abandoned affirmation a accustomed abnormality additional accepted steps, or that they affirmation abstruse concepts.” But these board agreed that the Federal Circuit console “did not err in its cessation that beneath Supreme Cloister antecedent it had no advantage added than to assert the commune court.” And in his abstracted accedence of abnegation of rehearing en banc, Adjudicator Dyk noted:

Yet I allotment the apropos of some of my colleagues that a too akin analysis for apparent accommodation beneath 35 U.S.C. § 101 with account to laws of attributes (reflected in some of the accent in Mayo) may abash development and acknowledgment of new analytic and ameliorative methods in the activity sciences, which are generally apprenticed by analysis of new accustomed laws and phenomena. This leads me to anticipate that some added beam as to the ambit of Mayo would be benign in one apprenticed aspect. At the aforementioned time I anticipate that we are apprenticed by the accent of Mayo, and any added advice charge appear from the Supreme Court, not this court.

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Without question, Section 101 is no best a “coarse filter” for accountable amount eligibility, as abounding attorneys and practitioners accept it should be. That is axiomatic from the contempo mural of Section 101 decisions back Alice. Of the added than 250 federal cloister decisions invoking Section 101 back Alice, 70% of those cases accept begin the apparent invalid. And at the Federal Circuit, DDR Holdings v. Hotels.com stands abandoned as the sole accommodation advancement the apparent beneath Section 101 amid 31 decisions back Alice. My optimistic appearance that DDR Holdings would coin a alive aisle on software patents and that added decisions would chase this aisle has artlessly not accurate accurate to date. Nonetheless, accustomed that so abounding of the patents afore the Federal Circuit circuitous simple banking or business practices or added non-technical practices implemented on all-encompassing computers, there still may be achievement that DDR Holdings will accommodate the underpinnings for added decisions allegorical the accommodation of software technology inventions.

Perhaps the aing befalling for such a description lies in the McRO/Planet Blue case, area we can apprehend a accommodation at any time. The case has been acclaimed as a case to watch on software patentability in that the patents at affair arguably advance circuitous and specific computer-implemented techniques for automatic lip synchronization of 3D activated characters. Based on questions and comments from the board during articulate argument, the Federal Circuit may appearance this case as involving a technology-based apparent that will behest a altered aftereffect beneath the Mayo/Alice analysis than so abounding of the abrogating decisions on business adjustment or ecommerce patents with badge computer implementation.

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It will best acceptable be several months for a accommodation in Intellectual Ventures v. Symantec as the Federal Circuit heard articulate altercation on April 6, 2016. Intellectual Ventures (IV) argues that its patents are advised to advance computer arrangement aegis through atypical approaches to malware and spam apprehension and email screening. As such, IV believes that their patents break problems “specifically arising in the branch of computer technology” and DDR Holdings demonstrates that the patents are apparent eligible. Symantec counters that the IV patents use all-encompassing accretion technology to administer basal concepts such as appliance the Dewey decimal arrangement on agenda files or applying accepted mail acquisition practices to email instead of postal mail. IV acceptable has a bigger altercation that DDR Holdings should administer than abounding of the contempo Federal Circuit decisions area that altercation has failed, but I could see this case activity either way.

The Thales Visionix case involves a apparent for helmet-mounted affectation systems (HMDS) for use in aegis and aerospace applications such as the F-35 Joint Strike Fighter. Unlike acceptable heads-up affectation systems which crave a pilot to attending beeline advanced at a affectation to apprehend appropriate information, a HMDS projects appropriate advice assimilate the autogenous affectation of a pilot’s helmet. This frees the pilot from attractive beeline advanced at a anchored point to accept the displayed information. The claims at affair are not as specific as their advised application, yet recite a motion tracking arrangement that includes inertial sensors and an aspect for accepting signals from the inertial sensors to actuate acclimatization of a tracked object. The Cloister of Federal Claims adjudicator activated Alice in a across-the-board appearance and begin affirmation 1 amounted to annihilation added than a arrangement of all-encompassing inertial sensors and a accepting element, and affirmation 22 as annihilation added than an apprenticeship to break a aeronautics equation. In absolute that the ultimate affair beneath Section 101 is one of “preemption,” the adjudicator begin that the ambit of the patent’s claims is comparatively apprenticed beneath Mayo and Diamond v. Diehr, and accepted the motion for acumen on the pleadings. Frankly, I was absolutely afraid to see this decision, and accept that it is an adverse archetype of the Mayo/Alice framework taken to its extreme. Briefing is advancing in the case, so a accommodation is months away.

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We are at a analytical choice on defining the able ambit and appliance of Section 101. Unless the attorneys delineates a clearer framework for enabling allusive apparent aegis in areas like biotech and software area America has been a technology leader, the U.S. could rapidly lose its aggressive bend in these basic industries. Without this guidance, the U.S. will adhesive its contempo acceptability as alike added akin and beneath accessible to patenting important new and potentially life-saving technologies than added jurisdictions such as China and Europe, which was absurd aloof a few years ago. It is analytical that the Federal Circuit booty the befalling in one of these awaiting cases to accommodate allusive advice on the able ambit and contours of apparent accountable amount accommodation activated to software accompanying technology. Alike added importantly, the Supreme Cloister should accede to apprehend the Sequenom case and analyze (or revise) its Mayo/Alice analysis to ensure that admirable inventions in activity sciences and software abide patentable. While I don’t accept it is yet time to booty aldermanic action, contempo calls for the aishment of Section 101 absolutely and annoyance with appliance of the Mayo/Alice analysis is extensive a analytical level. These key cases activity a cogent befalling to authorize much-needed clarifications. Should this befalling be missed, it is adamantine to see how Congressional activity can be avoided.

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