Bracing for Change in Patentability for Methods: Strategies for Companies and Venture Capitalists to Manage the Bilski Risk

Fenwick & West LLP
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Four Fenwick attorneys recently attended an oral argument at the U.S. Supreme Court at which justices surprised the patent community by signaling that they likely will cut back on the types of methods that are eligible for patent protection. In the spring of 2010, the U.S. Supreme Court is expected to rule on the Bilski case, a decision that could profoundly affect technology companies. At issue in Bilski is whether inventions that are methods are patentable even if they do not involve a physical transformation or are not implemented on specialized machines. The Supreme Court appears prepared to accept a new standard that could invalidate many existing patents and stop applications already in process from being granted. This decision could impact not only thousands of dot com era business methods, but many software-implemented and medical diagnostic inventions as well. Because it is unclear how the Court will rule, some contingency planning is called for. Thankfully, companies can take a number of simple measures now to mitigate the impact of an adverse ruling. Even if the Court’s ruling is supportive of such patents, these measures will help companies ensure an IP portfolio that is robust and able to withstand future changes to IP law.

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