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Please explain why hedging is not abstract! | 456 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Please explain why hedging is not abstract!
Authored by: Ian Al on Sunday, December 02 2012 @ 05:40 AM EST
Don't ask me, ask the Supremes!

Boy, did you miss the point! In Bilski, the Supreme Court said that the law is written such that it does not make business method patents un-statutory. To make such a judgement would be to render some of the patent law meaningless and the courts are prohibited from interpreting any part of the law in a way that makes any other part of the law meaningless even if the statues were made decades apart.

This Court has “more than once cautioned that courts ‘should not read into the patent laws limitations and conditions which the legislature has not expressed.(iamond v. Diehr, quoting Chakrabarty). In patent law, as in all statutory construction, “[u]nless otherwise defined, ‘words will be interpreted as taking their ordinary, contemporary, common meaning.’ (Diehr, quoting Perrin v. United States). The Court has read the §101 term “manufacture” in accordance with dictionary definitions, (Chakrabarty, citing American Fruit Growers, Inc. v. Brogdex Co), and approved a construction of the term “composition of matter” consistent with common usage, (Chakrabarty, citing Shell Development Co. v. Watson).

Any suggestion in this Court’s case law that the Patent Act’s terms deviate from their ordinary meaning has only been an explanation for the exceptions for laws of nature, physical phenomena, and abstract ideas (Parker v. Flook) . This Court has not indicated that the existence of these well-established exceptions gives the Judiciary carte blanche to impose other limitations that are inconsistent with the text and the statute’s purpose and design. Concerns about attempts to call any form of human activity a “process” can be met by making sure the claim meets the requirements of §101...

Section 101 similarly precludes the broad contention that the term “process” categorically excludes business methods. The term “method,” which is within §100(b)’s definition of “process,” at least as a textual matter and before consulting other limitations in the Patent Act and this Court’s precedents, may include at least some methods of doing business. See, e.g., Webster’s New International Dictionary (defining “method” as “[a]n orderly procedure or process … regular way or manner of doing anything; hence, a set form of procedure adopted in investigation or instruction”). The Court is unaware of any argument that the “ ‘ordinary, contemporary, common meaning,’ (Diehr) of “method” excludes business methods. Nor is it clear how far a prohibition on business method patents would reach, and whether it would exclude technologies for conducting a business more efficiently. See, e.g., Hall, Business and Financial Method Patents, Innovation, and Policy, 56 Scottish J. Pol. Econ. (“There is no precise definition of . . . business method patents”).

The argument that business methods are categorically outside of §101’s scope is further undermined by the fact that federal law explicitly contemplates the existence of at least some business method patents. Under 35 U. S. C. §273(b)(1), if a patent-holder claims infringement based on “a method in [a] patent,” the alleged infringer can assert a defense of prior use. For purposes of this defense alone, “method” is defined as “a method of doing or conducting business.” §273(a)(3). In other words, by allowing this defense the statute itself acknowledges that there may be business method patents. Section 273’s definition of “method,” to be sure, cannot change the meaning of a prior-enacted statute. But what §273 does is clarify the understanding that a business method is simply one kind of “method” that is, at least in some circumstances, eligible for patenting under §101.

A conclusion that business methods are not patentable in any circumstances would render §273 meaningless. This would violate the canon against interpreting any statutory provision in a manner that would render another provision superfluous. This principle, of course, applies to interpreting any two provisions in the U. S. Code, even when Congress enacted the provisions at different times. This established rule of statutory interpretation cannot be overcome by judicial speculation as to the subjective intent of various legislators in enacting the subsequent provision. Finally, while §273 appears to leave open the possibility of some business method patents, it does not suggest broad patentability of such claimed inventions.
Therefore, The Supreme Court must consider each business method patent on its merits to see if it is non-statutory subject matter. They said that the Bilski patent was abstract ideas. What was their explanation for this?

As I said about the words of the judgement: 'There seems to be nothing in that explanation that indicated what sort of hedging method invention would not be an abstract idea'.

Since you ask, every business method exists in the minds of (almost) human beings and the post solution activity of the businessman is not driven by the thought process, but is discretionary.

Whereas the Diehr process makes precision, rubber ducks, the Bilski process might or might not make a businessman take an energy option. Especially if the math had given him a headache!

You heard it from me, first: business methods are non-statutory subject matter because they are all abstract thought. The Supreme Court cannot opine that because it would make parts of the word of the law meaningless.

However, if they are assessing business method patents on their individual merits, they should explain why one business method is abstract ideas whilst another is not.

---
Regards
Ian Al
Software Patents: It's the disclosed functions in the patent, stupid!

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