throbber

`EXHIBIT 2019
`
`
`EXHIBIT 2019
`
`

`

`CONGRESSIONAL RECORD — SENATE
`S1379
`˝(cid:239)(cid:237)Ø(cid:231)
`(cid:211)¿fi‰‚ Ł(cid:244) (cid:238)(cid:240)(cid:239)(cid:239)
`ÝÑÒÙÎÛÍÍ×ÑÒßÔ ÎÛÝÑÎÜ ‰ ÍÛÒßÌÛ
`March 8, 2011
`jurisdiction. A compulsory counter-
`This section grew out of concerns
`present bill modifies section 301 of title
`¶«fi•›…•‰‹•–†(cid:242) (cid:223) ‰–‡(cid:176)«·›–fi§ ‰–«†‹»fi(cid:243)
`(cid:204)‚•› ›»‰‹•–† „fi»' –«‹ –” ‰–†‰»fi†›
`(cid:176)fi»›»†‹ (cid:190)•·· ‡–…•”•»› ›»‰‹•–† (cid:237)(cid:240)(cid:239) –” ‹•‹·»
`claim must be raised as a counterclaim
`originally raised in the 110th Congress
`35 to allow any person to submit to the
`‰·¿•‡ ‡«›‹ (cid:190)» fi¿•›»… ¿› ¿ ‰–«†‹»fi‰·¿•‡
`–fi•„•†¿··§ fi¿•›»… •† ‹‚» (cid:239)(cid:239)(cid:240)‹‚ (cid:221)–†„fi»››
`(cid:237)º ‹– ¿··–' ¿†§ (cid:176)»fi›–† ‹– ›«(cid:190)‡•‹ ‹– ‹‚»
`in the case in question, and cannot be
`about financial institutions’ inability
`Office the patent owner’s statements in
`•† ‹‚» ‰¿›» •† fl«»›‹•–†(cid:244) ¿†… ‰¿††–‹ (cid:190)»
`¿¾±«¬ º·²¿²½·¿´ ·²­¬·¬«¬·±²­Ž ·²¿¾·´·¬§
`Ѻº·½» ¬¸» °¿¬»²¬ ±©²»®Ž­ ­¬¿¬»³»²¬­ ·²
`asserted in a later case. Without this
`to take advantage of the authority to
`federal court or
`in any Office pro-
`¿››»fi‹»… •† ¿ ·¿‹»fi ‰¿›»(cid:242) (cid:201)•‹‚–«‹ ‹‚•›
`‹– ‹¿(cid:181)» ¿…“¿†‹¿„» –” ‹‚» ¿«‹‚–fi•‹§ ‹–
`”»…»fi¿· ‰–«fi‹ –fi •† ¿†§ (cid:209)””•‰» (cid:176)fi–(cid:243)
`modification, it is possible that a de-
`clear checks electronically pursuant
`ceeding about the scope of the patent’s
`‡–…•”•‰¿‹•–†(cid:244) •‹ •› (cid:176)–››•(cid:190)·» ‹‚¿‹ ¿ …»(cid:243)
`‰·»¿fi ‰‚»‰(cid:181)› »·»‰‹fi–†•‰¿··§ (cid:176)«fi›«¿†‹
`½»»¼·²¹ ¿¾±«¬ ¬¸» ­½±°» ±º ¬¸» °¿¬»²¬Ž­
`fendant could raise unrelated and un-
`claims. With this and other informa-
`the Check Clearing for the 21st Century
`”»†…¿†‹ ‰–«·… fi¿•›» «†fi»·¿‹»… ¿†… «†(cid:243)
`‹‚» (cid:221)‚»‰(cid:181) (cid:221)·»¿fi•†„ ”–fi ‹‚» (cid:238)(cid:239)›‹ (cid:221)»†‹«fi§
`‰·¿•‡›(cid:242) (cid:201)•‹‚ ‹‚•› ¿†… –‹‚»fi •†”–fi‡¿(cid:243)
`necessary patent counterclaims simply
`Act, at chapter 50 of title 12 of the US.
`tion, the Office should be able to deter-
`†»‰»››¿fi§ (cid:176)¿‹»†‹ ‰–«†‹»fi‰·¿•‡› ›•‡(cid:176)·§
`(cid:223)‰‹(cid:244) ¿‹ ‰‚¿(cid:176)‹»fi º(cid:240) –” ‹•‹·» (cid:239)(cid:238) –” ‹‚» ¸(cid:242)˝(cid:242)
`‹•–†(cid:244) ‹‚» (cid:209)””•‰» ›‚–«·… (cid:190)» ¿(cid:190)·» ‹– …»‹»fi(cid:243)
`in order to manipulate appellate juris-
`Code, without infringing the so-called
`mine whether the patent reads on prod-
`•† –fi…»fi ‹– ‡¿†•(cid:176)«·¿‹» ¿(cid:176)(cid:176)»··¿‹» ¶«fi•›(cid:243)
`(cid:221)–…»(cid:244) '•‹‚–«‹ •†”fi•†„•†„ ‹‚» ›–(cid:243)‰¿··»…
`‡•†» '‚»‹‚»fi ‹‚» (cid:176)¿‹»†‹ fi»¿…› –† (cid:176)fi–…(cid:243)
`diction. With the modification, a de-
`Ballard
`patents,
`patents
`number
`ucts or services that are particular to
`…•‰‹•–†(cid:242) (cid:201)•‹‚ ‹‚» ‡–…•”•‰¿‹•–†(cid:244) ¿ …»(cid:243)
`(cid:222)¿··¿fi…
`(cid:176)¿‹»†‹›(cid:244)
`(cid:176)¿‹»†‹›
`†«‡(cid:190)»fi
`«‰‹› –fi ›»fi“•‰»› ‹‚¿‹ ¿fi» (cid:176)¿fi‹•‰«·¿fi ‹–
`or characteristic of financial institu-
`fendant with a permissive patent coun-
`5,910,988 and 6,032,137. See generally
`”»†…¿†‹ '•‹‚ ¿ (cid:176)»fi‡•››•“» (cid:176)¿‹»†‹ ‰–«†(cid:243)
`º(cid:244)(cid:231)(cid:239)(cid:240)(cid:244)(cid:231)ŁŁ ¿†… Œ(cid:244)(cid:240)(cid:237)(cid:238)(cid:244)(cid:239)(cid:237)Ø(cid:242) ˝»» „»†»fi¿··§
`–fi ‰‚¿fi¿‰‹»fi•›‹•‰ –” ”•†¿†‰•¿· •†›‹•‹«(cid:243)
`terclaim who wanted to preserve Fed-
`tions.
`Senate Report
`110—259 at pages
`33
`‹»fi‰·¿•‡ '‚– '¿†‹»… ‹– (cid:176)fi»›»fi“» (cid:218)»…(cid:243)
`Í»²¿¬» λ°±®¬ ïïðŠîëç ¿¬ °¿¹»­ íí
`‹•–†›(cid:242)
`eral Circuit appellate review of that
`through 34. Once the committee began
`As the proviso at the end of the defi-
`»fi¿· (cid:221)•fi‰«•‹ ¿(cid:176)(cid:176)»··¿‹» fi»“•»' –” ‹‚¿‹
`‹‚fi–«„‚ (cid:237)(cid:236)(cid:242) (cid:209)†‰» ‹‚» ‰–‡‡•‹‹»» (cid:190)»„¿†
`(cid:223)› ‹‚» (cid:176)fi–“•›– ¿‹ ‹‚» »†… –” ‹‚» …»”•(cid:243)
`counterclaim could simply wait to as-
`to examine this issue in greater depth,
`nition makes clear, business methods
`‰–«†‹»fi‰·¿•‡ ‰–«·… ›•‡(cid:176)·§ '¿•‹ ‹– ¿›(cid:243)
`‹– »¤¿‡•†» ‹‚•› •››«» •† „fi»¿‹»fi …»(cid:176)‹‚(cid:244)
`†•‹•–† ‡¿(cid:181)»› ‰·»¿fi(cid:244) (cid:190)«›•†»›› ‡»‹‚–…›
`sert it in a separate action.
`however, the question quickly turned
`do not
`include “technological
`inven-
`›»fi‹ •‹ •† ¿ ›»(cid:176)¿fi¿‹» ¿‰‹•–†(cid:242)
`‚–'»“»fi(cid:244) ‹‚» fl«»›‹•–† fl«•‰(cid:181)·§ ‹«fi†»…
`…– †–‹ •†‰·«…» (cid:143)(cid:143)‹»‰‚†–·–„•‰¿· •†“»†(cid:243)
`in sub-
`The second modification,
`from whether
`the Ballard patents
`tions.” In other words, the definition
`•† ›«(cid:190)(cid:243)
`(cid:204)‚» ›»‰–†… ‡–…•”•‰¿‹•–†(cid:244)
`”fi–‡ '‚»‹‚»fi
`‹‚» (cid:222)¿··¿fi… (cid:176)¿‹»†‹›
`¬·±²­òŽŽ ײ ±¬¸»® ©±®¼­ô ¬¸» ¼»º·²·¬·±²
`section (d), corrects an error in H.R.
`should be allowed to disrupt compli-
`applies only to abstract business con-
`›»‰‹•–† ł…(cid:247)(cid:244) ‰–fifi»‰‹› ¿† »fifi–fi •† (cid:216)(cid:242)˛(cid:242)
`›‚–«·… (cid:190)» ¿··–'»… ‹– …•›fi«(cid:176)‹ ‰–‡(cid:176)·•(cid:243)
`¿(cid:176)(cid:176)·•»› –†·§ ‹– ¿(cid:190)›‹fi¿‰‹ (cid:190)«›•†»›› ‰–†(cid:243)
`2955 that would have required remand
`ance with the Check 21 Act, to how it
`cepts
`and
`their
`implementation,
`(cid:238)(cid:231)ºº ‹‚¿‹ '–«·… ‚¿“» fi»fl«•fi»… fi»‡¿†…
`¿†‰» '•‹‚ ‹‚» (cid:221)‚»‰(cid:181) (cid:238)(cid:239) (cid:223)‰‹(cid:244) ‹– ‚–' •‹
`‰»(cid:176)‹›
`¿†…
`‹‚»•fi
`•‡(cid:176)·»‡»†‹¿‹•–†(cid:244)
`of patent and other intellectual-prop-
`is that the Ballard patents were issued
`whether in computers or otherwise, but
`–” (cid:176)¿‹»†‹ ¿†… –‹‚»fi •†‹»··»‰‹«¿·(cid:243)(cid:176)fi–(cid:176)(cid:243)
`•› ‹‚¿‹ ‹‚» (cid:222)¿··¿fi… (cid:176)¿‹»†‹› '»fi» •››«»…
`'‚»‹‚»fi •† ‰–‡(cid:176)«‹»fi› –fi –‹‚»fi'•›»(cid:244) (cid:190)«‹
`erty counterclaims after their removal.
`in the first place. These patents consist
`does not apply to inventions relating
`»fi‹§ ‰–«†‹»fi‰·¿•‡› ¿”‹»fi ‹‚»•fi fi»‡–“¿·(cid:242)
`•† ‹‚» ”•fi›‹ (cid:176)·¿‰»(cid:242) (cid:204)‚»›» (cid:176)¿‹»†‹› ‰–†›•›‹
`…–»› †–‹ ¿(cid:176)(cid:176)·§ ‹– •†“»†‹•–†› fi»·¿‹•†„
`H.R. 2955’s proposed removal statute,
`of long recitations of technology cre-
`to computer operations for other uses
`ØòÎò îçë뎭 °®±°±­»¼ ®»³±ª¿´ ­¬¿¬«¬»ô
`–” ·–†„ fi»‰•‹¿‹•–†› –” ‹»‰‚†–·–„§ ‰fi»(cid:243)
`‹– ‰–‡(cid:176)«‹»fi –(cid:176)»fi¿‹•–†› ”–fi –‹‚»fi «›»›
`at section 1454(c)(1) of title 28, required
`ated by others to implement the sup-
`or
`the application of
`the natural
`¿‹ ›»‰‹•–† (cid:239)(cid:236)º(cid:236)ł‰(cid:247)ł(cid:239)(cid:247) –” ‹•‹·» (cid:238)Ł(cid:244) fi»fl«•fi»…
`a remand to the state court of all
`¿‹»… (cid:190)§ –‹‚»fi› ‹– •‡(cid:176)·»‡»†‹ ‹‚» ›«(cid:176)(cid:243)
`–fi
`‹‚» ¿(cid:176)(cid:176)·•‰¿‹•–† –”
`‹‚» †¿‹«fi¿·
`posed “invention” of transmitting and
`sciences or engineering.
`¿ fi»‡¿†… ‹– ‹‚» ›‹¿‹» ‰–«fi‹ –” ¿··
`°±­»¼ ·²ª»²¬·±²ŽŽ ±º ¬®¿²­³·¬¬·²¹ ¿²¼
`›‰•»†‰»› –fi »†„•†»»fi•†„(cid:242)
`claims that are not within the original
`One feature of section 18 that has
`processing checks and other business
`‰·¿•‡› ‹‚¿‹ ¿fi» †–‹ '•‹‚•† ‹‚» –fi•„•†¿·
`(cid:176)fi–‰»››•†„ ‰‚»‰(cid:181)› ¿†… –‹‚»fi (cid:190)«›•†»››
`(cid:209)†» ”»¿‹«fi» –” ›»‰‹•–† (cid:239)Ł ‹‚¿‹ ‚¿›
`or supplemental jurisdiction of the dis-
`records electronically. The first of
`been the subject of prolonged discus-
`–fi ›«(cid:176)(cid:176)·»‡»†‹¿· ¶«fi•›…•‰‹•–† –” ‹‚» …•›(cid:243)
`fi»‰–fi…› »·»‰‹fi–†•‰¿··§(cid:242) (cid:204)‚» ”•fi›‹ –”
`(cid:190)»»† ‹‚» ›«(cid:190)¶»‰‹ –” (cid:176)fi–·–†„»… …•›‰«›(cid:243)
`trict court. Since the bill no longer
`these patents was assigned to the class
`sion and negotiation between various
`‹fi•‰‹ ‰–«fi‹(cid:242) ˝•†‰» ‹‚» (cid:190)•·· †– ·–†„»fi
`‹‚»›» (cid:176)¿‹»†‹› '¿› ¿››•„†»… ‹– ‹‚» ‰·¿››
`›•–† ¿†… †»„–‹•¿‹•–† (cid:190)»‹'»»† “¿fi•–«›
`amends section 1338 to give district
`of cryptography inventions, but
`its
`groups during the last few weeks is its
`¿‡»†…› ›»‰‹•–† (cid:239)(cid:237)(cid:237)Ł ‹– „•“» …•›‹fi•‰‹
`–” ‰fi§(cid:176)‹–„fi¿(cid:176)‚§ •†“»†‹•–†›(cid:244) (cid:190)«‹ •‹›
`„fi–«(cid:176)› …«fi•†„ ‹‚» ·¿›‹ ”»' '»»(cid:181)› •› •‹›
`courts original jurisdiction over patent
`specification itself concedes that the
`subsection (c), which concerns stays of
`‰–«fi‹› –fi•„•†¿· ¶«fi•›…•‰‹•–† –“»fi (cid:176)¿‹»†‹
`›(cid:176)»‰•”•‰¿‹•–† •‹›»·” ‰–†‰»…»› ‹‚¿‹ ‹‚»
`›«(cid:190)›»‰‹•–† ł‰(cid:247)(cid:244) '‚•‰‚ ‰–†‰»fi†› ›‹¿§› –”
`counterclaims,
`however—and
`since,
`invention’s
`“controller”
`will
`½±«²¬»®½´¿·³­ô ¸±©»ª»®‰¿²¼
`­·²½»ô
`litigation. The current subsection (c)
`·²ª»²¬·±²Ž­
`½±²¬®±´´»®ŽŽ
`©·´´
`pursuant to Holmes Group itself, pat-
`·•‹•„¿‹•–†(cid:242) (cid:204)‚» ‰«fifi»†‹ ›«(cid:190)›»‰‹•–† ł‰(cid:247)
`“execute[]
`an encryption algorithm
`(cid:176)«fi›«¿†‹ ‹– (cid:216)–·‡»› (cid:217)fi–«(cid:176) •‹›»·”(cid:244) (cid:176)¿‹(cid:243)
`reflects a compromise that requires a
`ent counterclaims are not within the
`(cid:143)(cid:143)»¤»‰«‹»¯ˆ ¿† »†‰fi§(cid:176)‹•–† ¿·„–fi•‹‚‡
`fi»”·»‰‹› ¿ ‰–‡(cid:176)fi–‡•›» ‹‚¿‹ fi»fl«•fi»› ¿
`which is well known to an artisan of
`»†‹ ‰–«†‹»fi‰·¿•‡› ¿fi» †–‹ '•‹‚•† ‹‚»
`district judge to consider fixed criteria
`'‚•‰‚ •› '»·· (cid:181)†–'† ‹– ¿† ¿fi‹•›¿† –”
`district courts’ original jurisdiction—
`…•›‹fi•‰‹ ¶«…„» ‹– ‰–†›•…»fi ”•¤»… ‰fi•‹»fi•¿
`ordinary skill in the field.” The second
`¼·­¬®·½¬ ½±«®¬­Ž ±®·¹·²¿´ ¶«®·­¼·½¬·±²‰
`when deciding whether to grant a stay,
`±®¼·²¿®§ ­µ·´´ ·² ¬¸» º·»´¼òŽŽ ̸» ­»½±²¼
`then under paragraph (1), district
`'‚»† …»‰•…•†„ '‚»‹‚»fi ‹– „fi¿†‹ ¿ ›‹¿§(cid:244)
`patent is assigned to Class 705, home to
`‹‚»† «†…»fi (cid:176)¿fi¿„fi¿(cid:176)‚ ł(cid:239)(cid:247)(cid:244) …•›‹fi•‰‹
`and provides either side with a right to
`(cid:176)¿‹»†‹ •› ¿››•„†»… ‹– (cid:221)·¿›› Ø(cid:240)º(cid:244) ‚–‡» ‹–
`courts would be required to remand the
`¿†… (cid:176)fi–“•…»› »•‹‚»fi ›•…» '•‹‚ ¿ fi•„‚‹ ‹–
`‰–«fi‹› '–«·… (cid:190)» fi»fl«•fi»… ‹– fi»‡¿†… ‹‚»
`many of the most notorious business-
`an interlocutory appeal of the district
`patent counterclaims. Courts would
`‡¿†§ –” ‹‚» ‡–›‹ †–‹–fi•–«› (cid:190)«›•†»››(cid:243)
`¿† •†‹»fi·–‰«‹–fi§ ¿(cid:176)(cid:176)»¿· –” ‹‚» …•›‹fi•‰‹
`(cid:176)¿‹»†‹ ‰–«†‹»fi‰·¿•‡›(cid:242) (cid:221)–«fi‹› '–«·…
`method patents. Both of these patents
`judge’s decision. The appeal right has
`probably strain to avoid reading the
`‡»‹‚–… (cid:176)¿‹»†‹›(cid:242) (cid:222)–‹‚ –” ‹‚»›» (cid:176)¿‹»†‹›
`¶«¼¹»Ž­ ¼»½·­·±²ò ̸» ¿°°»¿´ ®·¹¸¬ ¸¿­
`(cid:176)fi–(cid:190)¿(cid:190)·§ ›‹fi¿•† ‹– ¿“–•… fi»¿…•†„ ‹‚»
`are obviously business-method patents,
`been modified to provide that such re-
`paragraph this way, since doing so de-
`¿fi» –(cid:190)“•–«›·§ (cid:190)«›•†»››(cid:243)‡»‹‚–… (cid:176)¿‹»†‹›(cid:244)
`(cid:190)»»† ‡–…•”•»… ‹– (cid:176)fi–“•…» ‹‚¿‹ ›«‰‚ fi»(cid:243)
`(cid:176)¿fi¿„fi¿(cid:176)‚ ‹‚•› '¿§(cid:244) ›•†‰» …–•†„ ›– …»(cid:243)
`and it is difficult to see how they were
`view “may be de novo,” and in every
`feats the only apparent purpose of the
`¿†… •‹ •› …•””•‰«·‹ ‹– ›»» ‚–' ‹‚»§ '»fi»
`ª·»© ³¿§ ¾» ¼» ²±ª±ôŽŽ ¿²¼ ·² »ª»®§
`even novel and nonobvious and other-
`”»¿‹› ‹‚» –†·§ ¿(cid:176)(cid:176)¿fi»†‹ (cid:176)«fi(cid:176)–›» –” ‹‚»
`case requires the Federal Circuit to en-
`section, and the amendments to sec-
`»“»† †–“»· ¿†… †–†–(cid:190)“•–«› ¿†… –‹‚»fi(cid:243)
`‰¿›» fi»fl«•fi»› ‹‚» (cid:218)»…»fi¿· (cid:221)•fi‰«•‹ ‹– »†(cid:243)
`wise valid under the more liberal State
`›»‰‹•–†(cid:244) ¿†… ‹‚» ¿‡»†…‡»†‹› ‹– ›»‰(cid:243)
`sure consistent application of estab-
`tion 1338 strip the state courts of juris-
`'•›» “¿·•… «†…»fi ‹‚» ‡–fi» ·•(cid:190)»fi¿· ˝‹¿‹»
`›«fi» ‰–†›•›‹»†‹ ¿(cid:176)(cid:176)·•‰¿‹•–† –” »›‹¿(cid:190)(cid:243)
`‹•–† (cid:239)(cid:237)(cid:237)Ł ›‹fi•(cid:176) ‹‚» ›‹¿‹» ‰–«fi‹› –” ¶«fi•›(cid:243)
`Street standard, much less how they
`lished precedent. Thus whether or not
`diction over patent counterclaims. But
`˝‹fi»»‹ ›‹¿†…¿fi…(cid:244) ‡«‰‚ ·»›› ‚–' ‹‚»§
`·•›‚»… (cid:176)fi»‰»…»†‹(cid:242) (cid:204)‚«› '‚»‹‚»fi –fi †–‹
`could survive the strictures of Bilski.
`…•‰‹•–† –“»fi (cid:176)¿‹»†‹ ‰–«†‹»fi‰·¿•‡›(cid:242) (cid:222)«‹
`every case is reviewed de novo,
`the
`that is exactly what H.R. 2955’s pro-
`‰–«·… ›«fi“•“» ‹‚» ›‹fi•‰‹«fi»› –” (cid:222)•·›(cid:181)•(cid:242)
`»“»fi§ ‰¿›» •› fi»“•»'»… …» †–“–(cid:244) ‹‚»
`Section 18’s definition of business-
`¬¸¿¬ ·­ »¨¿½¬´§ ©¸¿¬ ØòÎò îçë뎭 °®±ó
`court of appeals cannot simply leave
`posed 1454(c)(1) ordered the court to do.
`Í»½¬·±² ï莭 ¼»º·²·¬·±² ±º ¾«­·²»­­ó
`‰–«fi‹ –” ¿(cid:176)(cid:176)»¿·› ‰¿††–‹ ›•‡(cid:176)·§ ·»¿“»
`(cid:176)–›»… (cid:239)(cid:236)º(cid:236)ł‰(cid:247)ł(cid:239)(cid:247) –fi…»fi»… ‹‚» ‰–«fi‹ ‹– …–(cid:242)
`method patent, and its authorization
`the stay decision to the discretion of
`In the modified text of section 17(d) of
`‡»‹‚–… (cid:176)¿‹»†‹(cid:244) ¿†… •‹› ¿«‹‚–fi•ƒ¿‹•–†
`‹‚» ›‹¿§ …»‰•›•–† ‹– ‹‚» …•›‰fi»‹•–† –”
`(cid:215)† ‹‚» ‡–…•”•»… ‹»¤‹ –” ›»‰‹•–† (cid:239)Øł…(cid:247) –”
`the district court and allow different
`to raise prior-art challenges in the pe-
`this bill, the court is instructed to not
`‹– fi¿•›» (cid:176)fi•–fi(cid:243)¿fi‹ ‰‚¿··»†„»› •† ‹‚» (cid:176)»(cid:243)
`‹‚» …•›‹fi•‰‹ ‰–«fi‹ ¿†… ¿··–' …•””»fi»†‹
`‹‚•› (cid:190)•··(cid:244) ‹‚» ‰–«fi‹ •› •†›‹fi«‰‹»… ‹– †–‹
`tition for review, are designed to allow
`remand those claims that were a basis
`outcomes based on the predilections of
`‹•‹•–† ”–fi fi»“•»'(cid:244) ¿fi» …»›•„†»… ‹– ¿··–'
`–«‹‰–‡»› (cid:190)¿›»… –† ‹‚» (cid:176)fi»…•·»‰‹•–†› –”
`fi»‡¿†… ‹‚–›» ‰·¿•‡› ‹‚¿‹ '»fi» ¿ (cid:190)¿›•›
`the Office to recognize a business-
`different trial judges.
`for removal in the first place—that is,
`‹‚» (cid:209)””•‰» ‹– fi»‰–„†•ƒ» ¿ (cid:190)«›•†»››(cid:243)
`…•””»fi»†‹ ‹fi•¿· ¶«…„»›(cid:242)
`º±® ®»³±ª¿´ ·² ¬¸» º·®­¬ °´¿½»‰¬¸¿¬ ·­ô
`method patent as such despite its reci-
`It
`is expected that district
`judges
`the
`intellectual-property
`counter-
`‡»‹‚–… (cid:176)¿‹»†‹ ¿› ›«‰‚ …»›(cid:176)•‹» •‹› fi»‰•(cid:243)
`(cid:215)‹ •› »¤(cid:176)»‰‹»… ‹‚¿‹ …•›‹fi•‰‹ ¶«…„»›
`‹‚»
`•†‹»··»‰‹«¿·(cid:243)(cid:176)fi–(cid:176)»fi‹§
`‰–«†‹»fi(cid:243)
`tation of technological elements that
`will liberally grant stays of litigation
`claims.
`‹¿‹•–† –” ‹»‰‚†–·–„•‰¿· »·»‡»†‹› ‹‚¿‹
`'•·· ·•(cid:190)»fi¿··§ „fi¿†‹ ›‹¿§› –” ·•‹•„¿‹•–†
`‰·¿•‡›(cid:242)
`are not
`colorably novel
`and non-
`Section 18 of the bill creates an ad-
`once a proceeding is instituted. Peti-
`¿fi» †–‹ ‰–·–fi¿(cid:190)·§ †–“»· ¿†… †–†(cid:243)
`–†‰» ¿ (cid:176)fi–‰»»…•†„ •› •†›‹•‹«‹»…(cid:242) —»‹•(cid:243)
`˝»‰‹•–† (cid:239)Ł –” ‹‚» (cid:190)•·· ‰fi»¿‹»› ¿† ¿…(cid:243)
`obvious. This definition does not re-
`tioners are required to make a high
`ministrative mechanism for reviewing
`–(cid:190)“•–«›(cid:242) (cid:204)‚•› …»”•†•‹•–† …–»› †–‹ fi»(cid:243)
`‹•–†»fi› ¿fi» fi»fl«•fi»… ‹– ‡¿(cid:181)» ¿ ‚•„‚
`‡•†•›‹fi¿‹•“» ‡»‰‚¿†•›‡ ”–fi fi»“•»'•†„
`quire the Office to conduct a merits in-
`threshold showing in order to institute
`the validity of business-method pat-
`fl«•fi» ‹‚» (cid:209)””•‰» ‹– ‰–†…«‰‹ ¿ ‡»fi•‹› •†(cid:243)
`‹‚fi»›‚–·… ›‚–'•†„ •† –fi…»fi ‹– •†›‹•‹«‹»
`‹‚» “¿·•…•‹§ –” (cid:190)«›•†»››(cid:243)‡»‹‚–… (cid:176)¿‹(cid:243)
`quiry into the nonobviousness of a
`a proceeding, and proceedings are re-
`ents. In 1998, the US. Court of Appeals
`fl«•fi§ •†‹– ‹‚» †–†–(cid:190)“•–«›†»›› –” ¿
`¿ (cid:176)fi–‰»»…•†„(cid:244) ¿†… (cid:176)fi–‰»»…•†„› ¿fi» fi»(cid:243)
`»†‹›(cid:242) (cid:215)† (cid:239)(cid:231)(cid:231)Ł(cid:244) ‹‚» ¸(cid:242)˝(cid:242) (cid:221)–«fi‹ –” (cid:223)(cid:176)(cid:176)»¿·›
`technological
`invention,
`and should
`quired to be completed within one year
`for the Federal Circuit, in its decision
`‹»‰‚†–·–„•‰¿·
`•†“»†‹•–†(cid:244) ¿†… ›‚–«·…
`fl«•fi»… ‹– (cid:190)» ‰–‡(cid:176)·»‹»… '•‹‚•† –†» §»¿fi
`”–fi ‹‚» (cid:218)»…»fi¿· (cid:221)•fi‰«•‹(cid:244) •† •‹› …»‰•›•–†
`not be construed in a way that makes
`to 18 months after they are instituted.
`in State Street Bank & Trust Co. v. Sig-
`†–‹ (cid:190)» ‰–†›‹fi«»… •† ¿ '¿§ ‹‚¿‹ ‡¿(cid:181)»›
`‹– (cid:239)Ł ‡–†‹‚› ¿”‹»fi ‹‚»§ ¿fi» •†›‹•‹«‹»…(cid:242)
`•† ˝‹¿‹» ˝‹fi»»‹ (cid:222)¿†(cid:181) œ (cid:204)fi«›‹ (cid:221)–(cid:242) “(cid:242) ˝•„(cid:243)
`it difficult for the Office to administer.
`The case for a stay is particularly pro-
`nature Financial Group,
`Inc., 149 F.3d
`•‹ …•””•‰«·‹ ”–fi ‹‚» (cid:209)””•‰» ‹– ¿…‡•†•›‹»fi(cid:242)
`(cid:204)‚» ‰¿›» ”–fi ¿ ›‹¿§ •› (cid:176)¿fi‹•‰«·¿fi·§ (cid:176)fi–(cid:243)
`†¿‹«fi» (cid:218)•†¿†‰•¿· (cid:217)fi–«(cid:176)(cid:244) (cid:215)†‰(cid:242)(cid:244) (cid:239)(cid:236)(cid:231) (cid:218)(cid:242)(cid:237)…
`But if a technological element in a pat-
`nounced in a section 18 proceeding,
`1368 (Fed. Cir. 1998), substantially ex-
`(cid:222)«‹ •” ¿ ‹»‰‚†–·–„•‰¿· »·»‡»†‹ •† ¿ (cid:176)¿‹(cid:243)
`†–«†‰»… •† ¿ ›»‰‹•–† (cid:239)Ł (cid:176)fi–‰»»…•†„(cid:244)
`(cid:239)(cid:237)ŒŁ ł(cid:218)»…(cid:242) (cid:221)•fi(cid:242) (cid:239)(cid:231)(cid:231)Ł(cid:247)(cid:244) ›«(cid:190)›‹¿†‹•¿··§ »¤(cid:243)
`ent is not even assertedly or plausibly
`given the expectation that most if not
`panded the patentability of business-
`»†‹ •› †–‹ »“»† ¿››»fi‹»…·§ –fi (cid:176)·¿«›•(cid:190)·§
`„•“»† ‹‚» »¤(cid:176)»‰‹¿‹•–† ‹‚¿‹ ‡–›‹ •” †–‹
`(cid:176)¿†…»… ‹‚» (cid:176)¿‹»†‹¿(cid:190)•·•‹§ –” (cid:190)«›•†»››(cid:243)
`method inventions
`in
`the United
`outside of
`the prior art,
`the Office
`all
`true business-method patents are
`–«‹›•…» –” ‹‚» (cid:176)fi•–fi ¿fi‹(cid:244) ‹‚» (cid:209)””•‰»
`¿·· ‹fi«» (cid:190)«›•†»››(cid:243)‡»‹‚–… (cid:176)¿‹»†‹› ¿fi»
`‡»‹‚–…
`•†“»†‹•–†›
`•† ‹‚» ¸†•‹»…
`should not rely on that element
`to
`abstract and therefore invalid in light
`States, holding that any invention can
`›‚–«·… †–‹ fi»·§ –† ‹‚¿‹ »·»‡»†‹ ‹–
`¿(cid:190)›‹fi¿‰‹ ¿†… ‹‚»fi»”–fi» •†“¿·•… •† ·•„‚‹
`˝‹¿‹»›(cid:244) ‚–·…•†„ ‹‚¿‹ ¿†§ •†“»†‹•–† ‰¿†
`of the Bilski decision.
`classify the patent as not being a busi-
`be patented so long as it produces a
`‰·¿››•”§ ‹‚» (cid:176)¿‹»†‹ ¿› †–‹ (cid:190)»•†„ ¿ (cid:190)«›•(cid:243)
`–” ‹‚» (cid:222)•·›(cid:181)• …»‰•›•–†(cid:242)
`(cid:190)» (cid:176)¿‹»†‹»… ›– ·–†„ ¿› •‹ (cid:176)fi–…«‰»› ¿
`ness-method patent. Thus when pat-
`In pursuit of this congressional pol-
`“useful, concrete, and tangible result”
`†»››(cid:243)‡»‹‚–… (cid:176)¿‹»†‹(cid:242) (cid:204)‚«› '‚»† (cid:176)¿‹(cid:243)
`(cid:215)† (cid:176)«fi›«•‹ –” ‹‚•› ‰–†„fi»››•–†¿· (cid:176)–·(cid:243)
`«­»º«´ô ½±²½®»¬»ô ¿²¼ ¬¿²¹·¾´» ®»­«´¬ŽŽ
`ents such as the Ballard patents recite
`icy strongly favoring stays when pro-
`and meets other requirements of title
`»†‹› ›«‰‚ ¿› ‹‚» (cid:222)¿··¿fi… (cid:176)¿‹»†‹› fi»‰•‹»
`•‰§ ›‹fi–†„·§ ”¿“–fi•†„ ›‹¿§› '‚»† (cid:176)fi–(cid:243)
`¿†… ‡»»‹› –‹‚»fi fi»fl«•fi»‡»†‹› –” ‹•‹·»
`elements
`incorporating
`off-the-shelf
`ceedings are instituted under this sec-
`35. In recent years, federal judicial de-
`»·»‡»†‹›
`•†‰–fi(cid:176)–fi¿‹•†„
`–””(cid:243)‹‚»(cid:243)›‚»·”
`‰»»…•†„› ¿fi» •†›‹•‹«‹»… «†…»fi ‹‚•› ›»‰(cid:243)
`(cid:237)º(cid:242) (cid:215)† fi»‰»†‹ §»¿fi›(cid:244) ”»…»fi¿· ¶«…•‰•¿· …»(cid:243)
`technology or other technology “know
`tion, subsection (c)
`incorporates the
`cisions, culminating in the US. Su-
`‹»‰‚†–·–„§ –fi –‹‚»fi ‹»‰‚†–·–„§ (cid:143)(cid:143)(cid:181)†–'
`‹•–†(cid:244) ›«(cid:190)›»‰‹•–† ł‰(cid:247)
`•†‰–fi(cid:176)–fi¿‹»› ‹‚»
`‰•›•–†›(cid:244) ‰«·‡•†¿‹•†„ •† ‹‚» ¸(cid:242)˝(cid:242) ˝«(cid:243)
`to those skilled in the art,” that
`four-factor test for stays of litigation
`preme Court’s decision in Bilski v.
`¬± ¬¸±­» ­µ·´´»¼ ·² ¬¸» ¿®¬ôŽŽ ¬¸¿¬
`”–«fi(cid:243)”¿‰‹–fi ‹»›‹ ”–fi ›‹¿§› –” ·•‹•„¿‹•–†
`°®»³» ݱ«®¬Ž­ ¼»½·­·±² ·² (cid:222)•·›(cid:181)• “(cid:242)
`that was first announced in Broadcast
`should not preclude those patents’ eli-
`Kappos, 561 US. 7, 130 S.Ct. 3218
`­¸±«´¼ ²±¬ °®»½´«¼» ¬¸±­» °¿¬»²¬­Ž »´·ó
`‹‚¿‹ '¿› ”•fi›‹ ¿††–«†‰»… •† (cid:222)fi–¿…‰¿›‹
`(cid:213)¿(cid:176)(cid:176)–›(cid:244) ºŒ(cid:239) ¸(cid:242)˝(cid:242) ··(cid:244) (cid:239)(cid:237)(cid:240) ˝(cid:242)(cid:221)‹(cid:242) (cid:237)(cid:238)(cid:239)Ł
`gibility for review under this program.
`Innovation, L.L.C. v. Charter Commu-
`(2010), have overruled State Street and
`„•(cid:190)•·•‹§ ”–fi fi»“•»' «†…»fi ‹‚•› (cid:176)fi–„fi¿‡(cid:242)
`(cid:215)††–“¿‹•–†(cid:244) (cid:212)(cid:242)(cid:212)(cid:242)(cid:221)(cid:242) “(cid:242) (cid:221)‚¿fi‹»fi (cid:221)–‡‡«(cid:243)
`ł(cid:238)(cid:240)(cid:239)(cid:240)(cid:247)(cid:244) ‚¿“» –“»fifi«·»… ˝‹¿‹» ˝‹fi»»‹ ¿†…
`At
`the request of other
`industry
`nications, 2006 WL 1897165, D. Colo. 2006.
`retracted the patentability of business
`(cid:223)‹ ‹‚» fi»fl«»›‹ –” –‹‚»fi •†…«›‹fi§
`†•‰¿‹•–†›(cid:244) (cid:238)(cid:240)(cid:240)Œ (cid:201)(cid:212) (cid:239)Ł(cid:231)Ø(cid:239)Œº(cid:244) (cid:220)(cid:242) (cid:221)–·–(cid:242) (cid:238)(cid:240)(cid:240)Œ(cid:242)
`fi»‹fi¿‰‹»… ‹‚» (cid:176)¿‹»†‹¿(cid:190)•·•‹§ –” (cid:190)«›•†»››
`methods and other abstract inventions.
`groups, section 18’s definition of “cov-
`Broadcast
`Innovation includes,
`and
`¹®±«°­ô ­»½¬·±² ï莭 ¼»º·²·¬·±² ±º ½±ªó
`(cid:222)fi–¿…‰¿›‹
`(cid:215)††–“¿‹•–† •†‰·«…»›(cid:244) ¿†…
`‡»‹‚–…› ¿†… –‹‚»fi ¿(cid:190)›‹fi¿‰‹ •†“»†‹•–†›(cid:242)
`ered business-method patent” has been
`gives separate weight to, a fourth fac-
`This judicial expansion and subsequent
`»®»¼ ¾«­·²»­­ó³»¬¸±¼ °¿¬»²¬ŽŽ ¸¿­ ¾»»²
`„•“»› ›»(cid:176)¿fi¿‹» '»•„‚‹ ‹–(cid:244) ¿ ”–«fi‹‚ ”¿‰(cid:243)
`(cid:204)‚•› ¶«…•‰•¿· »¤(cid:176)¿†›•–† ¿†… ›«(cid:190)›»fl«»†‹
`limited to those patents that relate to
`judicial
`retraction of US. patent-
`tor that has often been ignored by
`·•‡•‹»… ‹– ‹‚–›» (cid:176)¿‹»†‹› ‹‚¿‹ fi»·¿‹» ‹–
`¶«…•‰•¿·
`fi»‹fi¿‰‹•–† –” ¸(cid:242)˝(cid:242) (cid:176)¿‹»†‹(cid:243)
`‹–fi ‹‚¿‹ ‚¿› –”‹»† (cid:190)»»† •„†–fi»… (cid:190)§
`a financial product or service. Given
`ability standards
`resulted in
`the
`other courts: “whether a stay will re-
`¿ ”•†¿†‰•¿· (cid:176)fi–…«‰‹ –fi ›»fi“•‰»(cid:242) (cid:217)•“»†
`¿(cid:190)•·•‹§ ›‹¿†…¿fi…›
`fi»›«·‹»…
`•† ‹‚»
`–‹‚»fi ‰–«fi‹›(cid:230) (cid:143)(cid:143)'‚»‹‚»fi ¿ ›‹¿§ '•·· fi»(cid:243)
`the protean nature of many business-
`issuance,
`in the interim, of a large
`duce the burden of litigation on the
`‹‚» (cid:176)fi–‹»¿† †¿‹«fi» –” ‡¿†§ (cid:190)«›•†»››(cid:243)
`•››«¿†‰»(cid:244) •† ‹‚» •†‹»fi•‡(cid:244) –” ¿ ·¿fi„»
`…«‰» ‹‚» (cid:190)«fi…»† –” ·•‹•„¿‹•–† –† ‹‚»
`method patents,
`it often will be un-
`number of business-method patents
`parties and on the court.”
`‡»‹‚–… (cid:176)¿‹»†‹›(cid:244) •‹ –”‹»† '•·· (cid:190)» «†(cid:243)
`†«‡(cid:190)»fi –” (cid:190)«›•†»››(cid:243)‡»‹‚–… (cid:176)¿‹»†‹›
`°¿®¬·»­ ¿²¼ ±² ¬¸» ½±«®¬òŽŽ
`clear on the face of the patent whether
`In order to ensure consistency in de-
`that are no longer valid. Section 18 cre-
`‰·»¿fi –† ‹‚» ”¿‰» –” ‹‚» (cid:176)¿‹»†‹ '‚»‹‚»fi
`(cid:215)† –fi…»fi ‹– »†›«fi» ‰–†›•›‹»†‰§ •† …»(cid:243)
`‹‚¿‹ ¿fi» †– ·–†„»fi “¿·•…(cid:242) ˝»‰‹•–† (cid:239)Ł ‰fi»(cid:243)
`it relates to a financial product or
`cisions whether to stay, regardless of
`ates a relatively inexpensive adminis-
`•‹ fi»·¿‹»› ‹– ¿ ”•†¿†‰•¿· (cid:176)fi–…«‰‹ –fi
`‰•›•–†› '‚»‹‚»fi ‹– ›‹¿§(cid:244) fi»„¿fi…·»›› –”
`¿‹»› ¿ fi»·¿‹•“»·§ •†»¤(cid:176)»†›•“» ¿…‡•†•›(cid:243)
`the court in which a section 281 action
`trative alternative to litigation for ad-
`service. To make such a determination,
`›»fi“•‰»(cid:242) (cid:204)– ‡¿(cid:181)» ›«‰‚ ¿ …»‹»fi‡•†¿‹•–†(cid:244)
`‹‚» ‰–«fi‹ •† '‚•‰‚ ¿ ›»‰‹•–† (cid:238)Ł(cid:239) ¿‰‹•–†
`‹fi¿‹•“» ¿·‹»fi†¿‹•“» ‹– ·•‹•„¿‹•–† ”–fi ¿…(cid:243)
`dressing disputes concerning the valid-
`the Office may look to how the patent
`is pending, paragraph (2) of subsection
`…fi»››•†„ …•›(cid:176)«‹»› ‰–†‰»fi†•†„ ‹‚» “¿·•…(cid:243)
`‹‚» (cid:209)””•‰» ‡¿§ ·––(cid:181) ‹– ‚–' ‹‚» (cid:176)¿‹»†‹
`•› (cid:176)»†…•†„(cid:244) (cid:176)¿fi¿„fi¿(cid:176)‚ ł(cid:238)(cid:247) –” ›«(cid:190)›»‰‹•–†
`ity of these patents.
`has been asserted. Section 5(g) of the
`(c) requires consistent application of
`•‹§ –” ‹‚»›» (cid:176)¿‹»†‹›(cid:242)
`‚¿› (cid:190)»»† ¿››»fi‹»…(cid:242) ˝»‰‹•–† ºł„(cid:247) –” ‹‚»
`ł‰(cid:247) fi»fl«•fi»› ‰–†›•›‹»†‹ ¿(cid:176)(cid:176)·•‰¿‹•–† –”
`
`˚»fi(cid:220)¿‹» (cid:211)¿fi (cid:239)º (cid:238)(cid:240)(cid:239)(cid:240)
`
`(cid:240)(cid:238)(cid:230)(cid:236)º (cid:211)¿fi (cid:240)(cid:231)(cid:244) (cid:238)(cid:240)(cid:239)(cid:239) (cid:214)(cid:181)‹ (cid:240)(cid:231)(cid:231)(cid:240)Œ(cid:240) —(cid:209) (cid:240)(cid:240)(cid:240)(cid:240)(cid:240) (cid:218)fi‡ (cid:240)(cid:240)(cid:240)(cid:236)º (cid:218)‡‹ (cid:240)Œ(cid:238)(cid:236) ˝”‡‹ (cid:240)Œ(cid:237)(cid:236) (cid:219)(cid:230)˜(cid:221)˛˜(cid:218)(cid:211)˜(cid:223)(cid:240)Ł(cid:211)˛Œ(cid:242)(cid:240)(cid:236)(cid:236) ˝(cid:240)Ł(cid:211)˛—(cid:204)(cid:239)
`
`›fi–(cid:190)»fi‹›–†(cid:220)˝(cid:213)(cid:217)Ł˝(cid:209)˙(cid:222)(cid:239)—˛(cid:209)(cid:220)'•‹‚˝(cid:219)(cid:210)(cid:223)(cid:204)(cid:219)
`
`

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