The Alice Test is Losing Clout in Patent Cases
RPX data shows a substantial drop in the success rate of Section 101 motions since the Federal Circuit tweaked patent eligibility law 18 months ago.
July 11, 2019 at 10:46 AM
3 minute read
The original version of this story was published on The Recorder
While Congress and the Federal Circuit debate reforming patent eligibility law, RPX Corp. has crunched some numbers that show Section 101 doesn't have nearly the bite in court that it used to.
The defensive patent aggregator's data shows that since the U.S. Court of Appeals for the Federal Circuit issued two decisions in 2018 that tweaked the law of patent eligibility, so-called Alice motions have gone from a 68% likelihood of success to a 56% percent likelihood of failure.
“It's not a small change,” said Brian Howard, RPX's vice president for analytics. “It's the first inflection point we've seen in Section 101” since the Supreme Court's Alice decision five years ago.
Alice v. CLS Bank was the culmination of four Supreme Court decisions that expanded the Supreme Court's exclusion of abstract ideas, laws of nature and natural phenomena from patent protection. Many accused patent infringers began responding to complaints with Alice motions, before discovery and claim construction began running up the legal bills.
But the Federal Circuit ruled in 2018's Berkheimer v. HP and Aatrix v. Green Shades Software that a key step in the Alice analysis—whether patent claims could have been implemented using well-understood, routine and conventional tools—often presents issues of fact that can't be resolved on the pleadings or summary judgment.
There's been much debate since about how much impact Berkheimer and Aatrix are having. RPX says the debate is over. The answer is a big impact.
Before Berkheimer, 70% of Alice motions brought at the Rule 12 stage were being granted. Afterward, that number has dropped to 45%. Pre-Berkheimer, 59% of Alice motions were being granted on summary judgment. Post-Berkheimer, that number has dropped to 40%.
Any time you have a shift in outcomes that substantial, “it really changes the settlement dynamics significantly,” Howard said.
The lower success rates also mean that patent cases are getting more expensive. Cases that aren't decided on the pleadings proceed to discovery, which in patent cases can come with a price tag in the millions.
Has the lower success rate discouraged accused infringers from trying? “I don't really see a big difference” in the number of Alice motions being filed, Howard said. “There's not a depressing effect as far as I'm aware.”
HP asked the Supreme Court last fall to review Berkheimer. The Supreme Court requested the views of the solicitor general in January. That request remains pending.
In the meantime, a handful of Senate and House judiciary committee members have proposed legislation that would rewrite Section 101 of the Patent Act while abrogating the Supreme Court's case law. Last week the Federal Circuit issued eight separate opinions asking the Supreme Court or Congress to rethink patent eligibility as it applies to the medical diagnostics industry.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllElon Musk Has a Lot More Than a 'Tornetta' Appeal to Resolve in Delaware
5 minute readCompanies' Dirty Little Secret: Those Privacy Opt-Out Requests Usually Aren't Honored
Kramer Levin's Patent Trial Team Discusses Teaching Tech to Juries
Kirkland Fends Off Antitrust Claims for Thomson Reuters Against AI-Backed Start-Up
Trending Stories
- 1'Largest Retail Data Breach in History'? Hot Topic and Affiliated Brands Sued for Alleged Failure to Prevent Data Breach Linked to Snowflake Software
- 2Former President of New York State Bar, and the New York Bar Foundation, Dies As He Entered 70th Year as Attorney
- 3Legal Advocates in Uproar Upon Release of Footage Showing CO's Beat Black Inmate Before His Death
- 4Longtime Baker & Hostetler Partner, Former White House Counsel David Rivkin Dies at 68
- 5Court System Seeks Public Comment on E-Filing for Annual Report
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250