Practice Note:
Recent Supreme Court decisions have made patenting software related innovations more and more challenging. It is becoming increasingly more important to describe in the application how the invention improves the functionality of the computer, rather than just an addition of conventional computer components to well-known business practices. To do so, the application may describe the problems associated with the prior art and the advantages of the invention over the prior art. For example, in this case, the application specifically described that the innovative data storage scheme enables i) faster data searching in the “self-relational” model; ii) more effective storage of data, other than structured text (images, and unstructured text); and iii) flexible way of configuring the database “on the fly.”
Enfish v. Microsoft Corporation
Case Summary:
The Federal Circuit reversed the district court’s grant of summary judgment based on 35 U.S.C. § 101 and concluded that all five claims on appeal are directed toward a patent-eligible subject matter and not an abstract idea because the claims improve the functionality of the computer.
Enfish sued Microsoft for infringement of several patents related to a “self-referential” database. Enfish received patents 6,151,604 and 6,163,775, which discussed an innovative logical model (model of data for a computer database explaining how the different elements of information are related to each other, which results in the creation of particular tables of data) for a computer database. “The patented logical model has all data entities in a single table with column definitions provided by rows in that same table”—this is described as the “self-referential” property of the database. However, the standard relational model captures information about each entity in separate tables with the relationships between the tables explaining what the relationships are between the rows of different tables.
The self-referential table has two contrasting features from the relational model:
The benefits disclosed in the patent application:
Enfish filed a suit against Microsoft claiming that Microsoft’s ADO.NET infringed on patents ‘604 and ‘775. The claims at issue included:
The district court held that all claims are invalid under 35 U.S.C §101 as directed to a patent ineligible subject matter. Patent ineligible subject matters include laws of nature, natural phenomena, and abstract ideas. Under the Supreme Court’s Alice decision, to determine whether the patent claims are directed toward a patent ineligible subject matter, it must first be determined whether the claims at issue are directed to a patent-ineligible concept; if this first step has been met, then move on to the second step of inquiry and consider the elements of each claim both individually and as an ordered combination to determine whether the additional elements transform the nature of the claim into a patent-eligible application.
The Supreme Court has suggested that claims declaring to improve the functioning of the computer itself or to improve an existing technological process are not directed toward an abstract idea. Therefore, the first step in this case is to ask whether the claims are directed toward an abstract idea. If so, the analysis needs to proceed to the second step, which asks if there is some inventive concept in the application of the abstract idea. However, in this specific case, the Federal Circuit Court found that the claims at issue in this appeal are not directed to an abstract idea based on the Alice precedent, but instead they are directed to a specific improvement to the way computers operate via the self-referential table.
The district court found that the claims were directed to the abstract idea of “storing organizing, and retrieving memory in a logical table” or the concept of organizing information through the use of tabular formats. However, the district court oversimplified the self-referential component of the claims and downplayed the invention’s benefits. Unlike the Alice and Versata cases, the claims at issue are directed to the actual improvement in the functioning of a computer, not just the addition of conventional computer components to well-known business practices.
In conclusion, the self-referential table described “in the claims on appeal is a specific type of data structure designed to improve the way a computer stores and retrieves data in memory” (Enfish LLC v. Microsoft Corporation). The claims involve a specific implementation of a solution to a problem found in the software arts. Therefore, the Federal Circuit Court found that the claims at issue were not directed to an abstract idea. As a result, the Federal Circuit held that it does not need to advance to the second step of the Alice analysis because the claims are not directed to an abstract idea under step one; the court concludes that the claims are patent-eligible.