Patent Law
Sec. 22 Non-Patentable Inventions
The following shall be excluded from patent protection:
x x x x
22.1. Discoveries, scientific theories and mathematical methods;
22.2. Schemes, rules and methods of performing mental acts, playing games or doing business, and programs for computers;
Jurisprudence on the matter (U.S. Case)
Bilski v. Kappos, 561 U.S. ____, June 29, 2010 (Link to Case)
An application for patent that seeks protection for a claimed invention that explains how commodities buyers and sellers in the energy market can protect, or hedge, against the risk of price changes denied by the Patent Office. The US Supreme Court affirmed the Patent Office to deny the patent. The latter initially denied the application on the basis of the machine-or-transformation test which determines a process as (1) tied to a particular machine or apparatus; (2) it transforms a particular article into a different state or thing. Since patent was considered a business method, application was denied. On final appeal to the US Supreme Court, the application was still denied but held that the machine-or-transformation test not exclusive to determine patentability. The test is only a useful and investigative tool.
The Supreme Court said that the law was not written to remain stagnant. Rather than disapprove that “business methods” are patentable, the Court decided to affirm the denial of the patent application because the “process” involved abstract ideas. The Court also categorically stated that this particular decision is not meant to define what a patentable process is, but rather to adapt a new construction of the law in the light of the current age. Hence, the Court did not make an absolute prohibition on the patentability of business methods.
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Rod Vera is an attorney practicing intellectual property law. You may contact him at Phone: +63.2.829.3102; FAX: +63.2.820.1193; E-Mail: rpv@vera-iplaw.com
