On July 9, 2015, the Federal Circuit decided its first appeal of a covered business method (“CBM”) patent review. In Versata Development Group Inc. v. SAP America, Inc. et al., Case No. 14-1194 (Fed. Cir. July 9, 2015) (“Versata I”), the court addressed four issues relating to CBM proceedings generally: (1) the scope of judicial review; (2) the definition of a “CBM patent”; (3) the applicable claim construction standard; and (4) whether 35 U.S.C. § 101 arguments are available. The court ultimately affirmed the decision of the Patent Trial and Appeal Board (“PTAB”) that a product-pricing patent was invalid as claiming only abstract ideas.
In a separate decision issued on July 13, 2015, the Federal Circuit further held that a patentee may not file a lawsuit in federal district court to challenge the PTAB’s initial decision to institute CBM review. Versata Development Group Inc. v. Lee, Case No. 2014-1145 (Fed. Cir. July 13, 2015) (“Versata II”).
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