Case details
Summary
The Aerotel four-stage approach remains the governing framework for computer-program and business-method exclusions, although it should not be applied mechanically. The inquiry must identify a relevant technical contribution, while disregarding a technical effect arising solely from excluded matter. Relevant signposts include an effect outside the computer, an architectural improvement operating independently of the data or application, a new way of operating the computer, increased speed or reliability, and solving rather than circumventing a technical problem. A computerised business method remains excluded where the claimed contribution merely selects or implements a business choice, even if it delivers useful content, reduces delay or improves the business process.
Factual background
AT&T Knowledge Ventures LP and CVON Innovations Ltd appealed under the Patents Act 1977 from separate UKIPO decisions. Each application concerned a computer-implemented system: AT&T’s system selected digital content compatible with a user’s device, while CVON’s messaging system authenticated group membership through subscriber-initiated interaction with a third-party database.
The Comptroller’s representatives maintained that the claimed contributions remained business methods or computer programs as such. The central issue was whether either claimed contribution made a relevant technical contribution sufficient to avoid the exclusions in section 1(2).
Held
- Both appeals dismissed. The claimed inventions were excluded from patentability under section 1(2) of the Patents Act 1977.
- The four-stage test in Aerotel v Telco; Macrossan’s Application [2007] RPC 7 remained the law, but should not be followed blindly. The question whether the contribution is technical must be addressed within the inquiry, whether at the third or fourth stage.
- The relevant technical-effect signposts were: an effect on a process outside the computer; operation at computer-architecture level irrespective of the data or application; a new way of operating the computer; increased speed or reliability; and solving, rather than circumventing, a technical problem.
- For AT&T, the device-profile table was no more than a computerised list of device characteristics. It did not alter computer operation, operate independently of the data processed, solve format incompatibility, increase speed or reliability, or produce a new technical effect. Supplying useful rather than unusable content was a business result.
- For CVON, subscriber-initiated updating and authentication changed the direction of information flow but did not alter the operation of the computer or messaging system. The choice of authentication method was a business choice, and the reduction in time lag was not a relevant technical effect. The invention therefore amounted to an improved business method implemented using conventional hardware and internet techniques.
The court’s approach to earlier authorities
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Appellate history
- UKIPO: Separate decisions dated 2 July 2008 and 15 August 2008 found the AT&T and CVON inventions unpatentable.
- High Court (Patents Court): The appeals were dismissed.
Key cases cited
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Cases citing this case
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