On the Feasibility of Improving Patent Quality One Technology at a Time: The Case of Business Methods

In its 1998 State Street Bank decision, the US Court of Appeals for the Federal Circuit held that business methods are eligible for patent protection. The decision was quickly followed by a dramatic increase in the number of applications for and grants of business method patents. Although patents in...

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Bibliographic Details
Published in:Berkeley technology law journal 2006-04, Vol.21 (2), p.729-794
Main Authors: Allison, John R., Hunter, Starling D.
Format: Article
Language:English
Subjects:
Business models
Computer software
Customers
Data processing
Inventions
Methods
Patent law
Prior art
Quality
Reforms
Studies
Trade publications
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Summary:In its 1998 State Street Bank decision, the US Court of Appeals for the Federal Circuit held that business methods are eligible for patent protection. The decision was quickly followed by a dramatic increase in the number of applications for and grants of business method patents. Although patents in other areas of technology have brought forth complaints from various quarters, the magnitude of adverse commentary and reportage on business method patents was unprecedented. Responding to the chorus of quality-related criticisms, the PTO began a patent quality improvement initiative for business method patent applications, referred to as the Second Pair of Eyes Review (SPER). The present study empirically analyzes the quality of business method patents before and after the SPER initiative. Although the SPER initiative positively influenced patent quality within the domain in which it operates, the authors do not believe that attempting patent reform one technology at a time is the best approach.
ISSN:1086-3818
2380-4742