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1、LAWOFCOMPUTERTECHNOLOGYFALL2013©2013MICHAELI.SHAMOSBusinessMethodPatentsMichaelI.Shamos,Ph.D.,J.D.InstituteforSoftwareResearchSchoolofComputerScienceCarnegieMellonUniversityLAWOFCOMPUTERTECHNOLOGYFALL2013©2013MICHAELI.SHAMOSMethodsofDoingBusinessHistorically,
2、“methodsofdoingbusiness”werenotpatentablebecausetheydidnotfallintoanyofthefourcategoriesofinvention:process,machine,manufactureorcompositionofmatterExample:“Amethodconductingretailsaleofitemscomprising: chargingeither5centsor10centsforeachitem”(InventedbyFran
3、kWoolworthin1879,butnopatentsincenotpatentable)A“process”involvedONLYphysicaltransformationoftangiblematerials,asinachemicalprocessCochranev.Deener,94U.S.780(1876)Cochranepatentedamethodofmakingflour.HesuedDeenerforinfringement.Patentswerethenallowedfor“anyne
4、wandusefulart,machine,manufactureorcompositionofmatter[andimprovements].”Deenerargued:Cochrane’smethodwasnottiedtoanyparticularmachine.SupremeCourt:“Neithercourtsnorordinaryjuriesareperfectlyadaptedtotheinvestigationofmechanicalandscientificquestions.”“Aproce
5、ssisamodeoftreatmentofcertainmaterialstoproduceagivenresult.Itisanact,oraseriesofacts,performeduponthesubject-mattertobetransformedandreducedtoadifferentstateorthing.…Inthelanguageofthepatentlaw,itisanart.”LAWOFCOMPUTERTECHNOLOGYFALL2013©2013MICHAELI.SHAMOSMe
6、thodsofDoingBusinessBusinessmethodswerenotpatentable(no“transformation”)untilStateStreetBank&TrustCo.v.SignatureFinancialGroup,Inc.,149F.3d1368(Fed.Cir.1998)(repatentno.5,193,056)SignatureFinancialobtainedapatentonacomputerizedmethodofallocatinginvestmentfund
7、sStateStreetBankinfringedandSignaturesuedTheDistrictCourtfoundthepatentinvalidasmerelyabusinessmethodSignatureappealedSignature’sInventionInvestmentPortfolioMutualFund4MutualFund5MutualFund1MutualFund2MutualFund311%14%20%25%30%APortfolioofMutualFundsEachday,c
8、omputethegainorlossofeachfundRedistributetheassets(changethepercentages)basedonwhichfundshavegainedthemostvalueStateStreetBankClaim1StateStreetAppeal“Asanalternativegroundforinvalidatingt
