Wednesday, August 8, 2012

Recent Cases: Federal Holding Helps Protect Software Developers

Recent Cases: Federal Holding Helps Protect Software Developers


Author: Eric Everson, MBA, MSIT-SE (Juris Doctorate Candidate, May 2013)

As a software engineer turned law student, I know first-hand how difficult it can be to protect your software in the marketplace.  By its nature, software is difficult to protect, but a recent Federal Court Ruling provides new teeth to the patentability of software.

The case is Ultramercial, LLC v. Hulu, LLC, 657 F.3d 1323 and the new teeth come in the form of a new two prong test aimed at helping developers protect their software.  This case hinged on the principle of the patentable subject matter test, which is essentially serves a screening function in patent law.  Traditionally, software has been analyzed under a “machine-or-transformation” Under that test, a computer program was patentable if and only if “(1) it [was] tied to a particular machine or apparatus, or (2) it transform[ed] a particular article into a different state or thing.”  The leading case on this subject has been The Supreme Court case, Bilski v. Kappos

Ultramercial, put took Bilski’s to a new level improving greater patentability of computer programs by identifying and applying two new factors: (1) the programs’ requiring complex computer programming and (2) the programs’ use of the internet and of a cybermarket environment.  This development stands to help software developers secure patentability while giving them greater leverage against patent infringement. 

What we haven’t seen in the case law to date is how this new test will be applied to the mobile applications software environment.  Nonetheless, there are several apps that I can think of that fall perfectly under this new umbrella of software patentability.  This comes as great news as the software industry has recently taken aim on improving intellectual property positions. 

Ref:

Harvard Law Review, Vol. 125:2167, PATENT LAW — PATENTABLE SUBJECT MATTER — FEDERAL CIRCUIT APPLIES NEW FACTORS IN DECIDING PATENTABILITY OF A COMPUTER PROGRAM. — Ultramercial, LLC v. Hulu, LLC, 657 F.3d 1323   

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About the Author:  Eric Everson is a 3L law student at Florida A&M University – College of Law.  Prior to law school he earned an MBA and Masters in Software Engineering while working nearly ten years in executive leadership positions within the U.S. telecommunications industry.  The views and opinions presented in this blog are his own and are not to be construed as legal advice.  Eric Everson currently serves on the Board of Governors for The Florida Bar Young Lawyers Division Law Student Division and is the President of the Electronic Discovery Law Student Association at Florida A&M University – College of Law.  Follow @IntleDiscovery