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Over the past decade, thousands of patents have been granted
for what are called business methods. Amazon.com received one for its "one-click"
online payment system. Merrill Lynch got legal protection for an asset
allocation strategy. One inventor patented a technique for lifting a box.
Now the nation's top patent court appears completely ready to
scale back on business-method patents, which have been controversial ever since
they were first authorized 10 years ago. In a move that has intellectual-property
lawyers abuzz the U.S. court of Appeals for the federal circuit said it would
use a particular case to conduct a broad review of business-method patents. In re Bilski, as the case is known , is
"a very big deal", says Dennis D. Crouch of the University of
Missouri School of law. It "has the potential to eliminate an entire class
of patents."
Curbs on business-method claims would be a dramatic about-face,
because it was the federal circuit itself that introduced such patents with is
1998 decision in the so-called state Street Bank case, approving a patent on a
way of pooling mutual-fund assets. That ruling produced an explosion in
business-method patent filings, initially by emerging internet companies trying
to stake out exclusive rights to specific types of online transactions. Later,
move established companies raced to add such patents to their files, if only as
a defensive move against rivals that might beat them to the punch. In 2005, IBM
noted in a court filing that it had been issued more than 300 business-method
patents despite the fact that it questioned the legal basis for granting them.
Similarly, some Wall Street investment films armed themselves with patents for
financial products, even as they took positions in court cases opposing the
practice.
The Bilski case involves a claimed patent on a method for
hedging risk in the energy market. The Federal circuit issued an unusual order
stating that the case would be heard by all 12 of the court's judges, rather
than a typical panel of three, and that one issue it wants to evaluate is
whether it should "reconsider" its state street Bank ruling.
The Federal Circuit's action comes in the wake of a series of
recent decisions by the supreme Court that has narrowed the scope of
protections for patent holders. Last April, for example the justices signaled
that too many patents were being upheld for "inventions" that are
obvious. The judges on the Federal circuit are "reacting to the
anti-patent trend at the Supreme Court", says Harold C. Wegner, a patent
attorney and professor at George Washington University Law School.
26. Business-method
patents have recently aroused concern because of
[A] their limited value to business
[B] their connection with asset allocation
[C] the possible restriction on their granting
[D] the controversy over authorization
27. Which of the following
is true of the Bilski case?
[A] Its ruling complies with the court decisions
[B] It involves a very big business transaction
[C] It has been dismissed by the Federal Circuit
[D] It may change the legal practices in the U.S.
28. The word "about-face"
(Line 1, Para 3) most probably means
[A] loss of good will
[B] increase of hostility
[C] change of attitude
[D] enhancement of dignity
29. We learn from the last
two paragraphs that business-method patents
[A] are immune to legal challenges
[B] are often unnecessarily issued
[C] lower the esteem for patent holders
[D] increase the incidence of risks
30. Which of the following
would be the subject of the text?
[A] A looming threat to business-method patents
[B] Protection for business-method patent holders
[C] A legal case regarding business-method patents
[D] A prevailing trend against business-method patents
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