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Over the past decade, thousands of patents have been granted for what are called business methods. Amazon.com received one for its "one-click" online payment system. Merrill Lynch got legal protection for an asset allocation strategy. One inventor patented a technique for lifting a box.
Now the nation's top patent court appears completely ready to scale back on business-method patents, which have been controversial ever since they were first authorized 10 years ago. In a move that has intellectual-property lawyers abuzz the U.S. court of Appeals for the federal circuit said it would use a particular case to conduct a broad review of business-method patents. In re Bilski, as the case is known , is "a very big deal", says Dennis D. Crouch of the University of Missouri School of law. It "has the potential to eliminate an entire class of patents."
Curbs on business-method claims would be a dramatic about-face, because it was the federal circuit itself that introduced such patents with is 1998 decision in the so-called state Street Bank case, approving a patent on a way of pooling mutual-fund assets. That ruling produced an explosion in business-method patent filings, initially by emerging internet companies trying to stake out exclusive rights to specific types of online transactions. Later, move established companies raced to add such patents to their files, if only as a defensive move against rivals that might beat them to the punch. In 2005, IBM noted in a court filing that it had been issued more than 300 business-method
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