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PTAB Denies CBM Institution Based on Technological Invention Exception, PTAB Litigation Blog

December 2017

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On December 1, 2017, the PTAB denied institution of a covered business method ("CBM") petition because the challenged patent is directed to a "technological invention" and therefore is ineligible for CBM review under section 18 of the AIA. HTC Corp. v. Ancora Techs., Inc., CBM2017-00054, Paper 7 (PTAB Dec. 1, 2017). A CBM patent is one that "claims a method or corresponding apparatus for performing data processing or other operations used in the practice, administration, or management of a financial product or service, except that the term does not include patents for technological inventions." AIA §18(d)(1); see 37 C.F.R. §42.301(a). To determine whether the "technological invention" exception applies, the PTAB considers "whether the claimed subject matter as a whole recites a technological feature that is novel and unobvious over the prior art; and solves a technical problem using a technical solution." 37 C.F.R. §42.301(b). Here, the PTAB was persuaded that the exception applies to the patent at issue, US 6,411,941 ("the ‘941 Patent").

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