Patent Challengers Succeed With New Covered Business Method Program

Authored by Brian S. Mudge

As part of the America Invents Act, Congress created the Covered Business Method (“CBM”) transitional review program to provide a quick and cost effective way to challenge business method patents. The CBM review program was launched about 18 months ago. Since then, the Patent Trial and Appeal Board (“PTAB”) has issued eleven final decisions in CBM proceedings after conducting trial. In all eleven cases, the patent challengers prevailed, winning complete (or nearly complete) victories over patent owners. As a result of these decisions, the Board has ordered cancellation (subject to any appeal) of over 200 patent claims in nine challenged patents. By any metric, patent challengers have achieved overwhelming success in the trials conducted under the CBM patent review program.

The chart below summarizes the final CBM decisions issued by the PTAB to date.

Final Decisions by PTAB in CMB Proceedings