U.S. appeals court reviews patent decision

Published: July 23, 2008 at 3:48 PM

WASHINGTON, July 23 (UPI) -- A U.S. appellate court in Washington is reviewing a patent case, in part, to see if a business method can be patented, experts say.

Although the precedent allowing patent rights for business methods was established 10 years ago in State Street Bank & Trust vs. Signature Financial Group Inc., a new case could restrict or refine that decision, said Steven Henry of Wolf, Greenfield & Sacks P.C.

Henry, one of the lead attorneys for Signature, said the Bernie Bilski case being reviewed could have far-reaching consequences.

In the information age "denying protection in software, financial services and other service areas might put the brakes on the growth we've experienced in the last decade at precisely the wrong time," he said.

The Bilski case involves a rejected patent application concerning a method of managing risk in commodity hedges related to weather. In part, some say, the court is charged with figuring out if an idea without a physical presence -- a free floating idea -- can be patented.

Either way it turns out, the U.S. Supreme Court will likely review the decision, Henry said.

"Ultimately, someone has to resolve the constitutional limits of the patent system," Henry said.

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