24 August 2017
Find out more

CLS wins legal battle in settlement 'patent' dispute

19 June 2014  |  5573 views  |  0 zeroes

The US Supreme Court has found in favour of CLS Bank in a long-running patent dispute with Alice Corporation over the abstract notion of intermediated settlement.

Alice owns four patents on electronic methods and computer programs for financial-trading systems on which trades between two parties are settled by a third party in ways that reduce counterparty or settlement risk.

Alice approached CLS - which was set up as a neutral counterparty to the international FX industry in 2002 - citing patent infringement and demanding a licensing deal.

The Supreme Court ruling caps extended litigation in which all three levels of the federal court system - the district court, the court of appeals, and now the Supreme Court - have come down in favour of CLS.

In its opinion satement, the Supre Court said: "We hold that the claims at issue are drawn to the abstract idea of intermediated settlement, and that merely requiring generic computer implementation fails to transform that abstract idea into a patent-eligible invention."

Alan Marquard, chief legal officer, CLS Bank, welcomed the decision: "Alice's attempt to patent the abstract idea of financial intermediation was rightfully rejected by the Supreme Court. Financial intermediation is critical to the safe and effective operation of all global markets, and we are proud to have led the fight against a very real risk to the economy and the financial ecosystem."

The case was seen as a critical test of patent-eligibility as regards generic business methods.

Mark Perry, lead counsel for CLS Bank, says: "The Supreme Court correctly rejected the attempt of Alice Corporation, a non-practicing entity or "troll," to foreclose productive companies like banks from practicing the ancient economic method of intermediated settlement. As the Court explained, patent law does not allow someone to monopolise a fundamental abstract idea, and implementing the idea on any generic computer does not change this result. We are delighted with the result."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Apple files patent application for 'ad-hoc cash dispensing network'

Apple files patent application for 'ad-hoc cash dispensing network'

31 January 2013  |  14780 views  |  13 comments | 34 tweets | 14 linkedin
US Bank settles cheque imaging patent case

US Bank settles cheque imaging patent case

03 January 2012  |  9027 views  |  0 comments
American Express files virtual currency patent

American Express files virtual currency patent

01 November 2011  |  15898 views  |  1 comments
BOX sues CBOE, ISE and Nasdaq OMX for patent infringement

BOX sues CBOE, ISE and Nasdaq OMX for patent infringement

11 May 2011  |  4699 views  |  0 comments
Standard Bank faces patent claim over mobile money venture

Standard Bank faces patent claim over mobile money venture

09 April 2010  |  8922 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.worldpaymentsreport.comvisit www.dorsum.eu

Top topics

Most viewed Most shared
Rabobank constructs physical model to understand IT architectureRabobank constructs physical model to unde...
22263 views comments | 47 tweets | 90 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
12166 views comments | 22 tweets | 35 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
11647 views comments | 21 tweets | 35 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
11376 views comments | 10 tweets | 8 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
10961 views 0 | 7 tweets | 1 linkedin

Featured job

Find your next job