McAfee & Taft attorney Chad McLawhorn was interviewed for a front-page story in The Oklahoman's Sunday Business Section about an important patent case pending in the United States Court of Appeals for the Federal Circuit that could have significant ramifications on the business community. The case specifically relates to the patentability of business methods.
In the 1998 State Street Bank & Trust Co. v. Signature Financial Group, Inc. decision, the Federal Circuit held that business methods are proper subject matter for patent protection if they produce a useful, concrete, and tangible result, according to McLawhorn.
As an example, he cited Amazon’s 1-Click process. In 1997, Amazon applied for a patent for "A Method and System for Placing a Purchase Order Via a Communications Network.” It was granted in 1999, the article stated.
"Taking that and applying it to the Internet is what made it novel in Amazon’s mind,” McLawhorn told The Oklahoman.
Critics argue that offering broad protection to such patents stifles innovation and economic efficiency, while proponents say it does the opposite, the article said.
The pending case allows the Federal Circuit to address the broader question of the scope of business method patents, McLawhorn said.
Among issues the court will decide is what standard should be used to determine whether a process is patent-eligible and whether an idea or mental process is not eligible, the article said. A decision should be rendered before the end of the year.