Supreme Court Grants Cert. in Bilski Case


On Monday, the U.S. Supreme Court granted a writ of certiorari in the case of Bilski v. Doll, Sup. Ct. Dkt. No. 08-964. The Court has agreed to review the Federal Circuit’s earlier decision in the case and address the question of when business methods are eligible for patent protection.

 

Bilski involves commodities trading, but the Supreme Court’s holding in the case could have an impact on the area of tax strategy patents, since those patents are a type of business methods patent.

 

In October, the Federal Circuit ruled that to be patentable a business process must meet a “machine or transformation” test (In re Bilski, 545 F.3d 943 (Fed. Cir. 2008)). The Federal Circuit held that only a business method that is tied to a particular machine or apparatus or that “transforms a particular article into a different state of things” is eligible for patent protection. In so holding, the Federal Circuit expressly rejected its earlier State Street Bank decision, which was the first case to establish that business methods are patentable (State St. Bank & Trust Co. v. Signature Fin. Group, Inc., 149 F.3d 1368 (Fed. Cir. 1998)).

 

For more on the patenting of tax strategies in general, see Ransome and Sherr, “ Patenting Tax Ideas ,” 38 The Tax Adviser 456 (Aug. 2007).

 

SPONSORED REPORT

How to make the most of a negotiation

Negotiators are made, not born. In this sponsored report, we cover strategies and tactics to help you head into 2017 ready to take on business deals, salary discussions and more.

VIDEO

Will the Affordable Care Act be repealed?

The results of the 2016 presidential election are likely to have a big impact on federal tax policy in the coming years. Eddie Adkins, CPA, a partner in the Washington National Tax Office at Grant Thornton, discusses what parts of the ACA might survive the repeal of most of the law.

QUIZ

News quiz: Scam email plagues tax professionals—again

Even as the IRS reported on success in reducing tax return identity theft in the 2016 season, the Service also warned tax professionals about yet another email phishing scam. See how much you know about recent news with this short quiz.