Opinion

OIP Technologies, Inc. v. Amazon.com, Inc.

  • 788 F.3d 1359
  • 115 U.S.P.Q. 2d (BNA) 1090
  • 2015 U.S. App. LEXIS 9721
  • 2015 WL 3622181
Court
Court of Appeals for the Federal Circuit
Filed
Jun 11, 2015
Status
Published
Author
Mayer
On the bench
Hughes, Mayer, Taranto
Cited by
206 cases
Authority
More cited than 9.8%

finding a method comprising (1) testing prices, (2) gathering statistics about how customers reacted to the prices, (3) using that data to estimate outcomes, and (4) acting on estimated outcomes (ie., automatically selecting and offering new prices based on estimated outcome) to be directed to the abstract idea of price optimization

How later courts described this case

  • finding a method comprising (1) testing prices, (2) gathering statistics about how customers reacted to the prices, (3) using that data to estimate outcomes, and (4) acting on estimated outcomes (ie., automatically selecting and offering new prices based on estimated outcome) to be directed to the abstract idea of price optimization
  • holding patent-ineligible claims which included “storing test results in a ‘machine-readable medium,’ ” because that and other limitations only “require[ed] conventional computer activities or routine data-gathering steps” which did not transform the abstract idea of “offer-based price optimization” into an inventive concept
  • concluding that “relying on a computer to perform routine tasks more quickly or more accurately is insufficient to render a claim patent eligible,” where the “key distinguishing feature of the claims is the ability to automate or otherwise make more efficient traditional price- optimization methods.”
  • concluding at step two that just because a computerized method might be able perform a task “more quickly or more accurately” than a human, this does not mean that the method is patent eligible

Written by the judges who cited it.

The opinion

MAYER, Circuit Judge,

concurring.

I write separately to address the argument advanced by OIP Technologies, Inc. that the district court erred in resolving the patent eligibility issue on the pleadings. Failure to recite statutory subject matter is the sort of “basic deficiency,” that can, and should, “be exposed at the point of minimum expenditure of time and money by the parties and the court,” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 558 , 127 S.Ct. 1955 , 167 L.Ed.2d 929 (2007) (citations and internal quotation marks omitted). Addressing 35 U.S.C. § 101 at the outset not only conserves scarce judicial resources and spares litigants the staggering costs associated with discovery and protracted claim construction litigation, it also works to stem the tide of vexatious suits brought by the owners of vague and overbroad business method patents. Accordingly, where, as here, assert *1365 ed claims are plainly directed to a patent ineligible abstract idea, we have repeatedly sanctioned a district court’s decision to dispose of them on the pleadings. See, e.g., Content Extraction & Transmission LLC v. Wells Fargo Bank, 776 F.3d 1343, 1349 (Fed.Cir.2014); Ultramereial, Inc. v. Hulu, LLC, 772 F.3d 709, 717 (Fed.Cir.2014); buy SAFE, Inc. v. Google, Inc., 765 F.3d 1350, 1352 (Fed.Cir.2014). I commend the district court’s adherence to the Supreme Court’s instruction that patent eligibility is a “threshold” issue, Bilski v. Kappos, 561 U.S. 593, 602 , 130 S.Ct. 3218 , 177 L.Ed.2d 792 (2010), by resolving it at the first opportunity.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.