Articles By Topic
By Topic: Patents
-
From Vol. 3 No.27 (Jul. 8, 2010)
Supreme Court Invalidates Patent on Hedging Risk But Leaves Door Open for Less “Abstract” Business Methods
On June 28, 2010, the U.S. Supreme Court, in Bilski v. Kappos, held a patent directed to a series of steps for hedging risk in commodities trading invalid as not being drawn to statutory subject matter. While the Supreme Court affirmed the Federal Circuit Court of Appeals’ decision that the patent was invalid, the Supreme Court did instruct the Federal Circuit to fashion additional tests for patentable subject matter based on the Supreme Court’s broad and somewhat antiquated principles. In a guest article, Mark Scarsi and Blake Reese, Partner and Associate, respectively, in the Intellectual Property Litigation & Technology Department of Milbank, Tweed, Hadley & McCloy LLP, explain the facts, holding and legal analysis in Bilski. The Bilski opinion is complex, but Scarsi and Reese convey the key legal and business points in a manner that is comprehensible to hedge fund industry participants who may not be intellectual property experts. The case is particularly relevant to hedge fund managers that develop and use proprietary technology, such as managers with high-frequency or algorithm-driven strategies.
Read Full Article …