Litigating the Business Method Patent: Pitfalls for Unwary Defendants

The lion's share of business method and e-commerce patents is grouped in the now infamous Class 705 at the U.S. Patent and Trademark Office ('USPTO'). This specialized class that encompasses data processing involving financial, business practice, management, and cost/price determination has experienced a surge in popularity rivaled only by the likes of nanotechnology. From 2001 to 2005, more than 5000 U.S. patents were issued in Class 705. Growth in 705 patenting has been so pronounced that this 5-year period has produced about the same number of new patents as the previous 15-year period.

25 minute readAugust 31, 2006 at 04:36 PM

William G. Pecau

Seth A. Watkins, Ph.D.

Litigating the Business Method Patent: Pitfalls for Unwary Defendants

The lion's share of business method and e-commerce patents is grouped in the now infamous Class 705 at the U.S. Patent and Trademark Office ('USPTO').

This premium content is locked for The Intellectual Property Strategist subscribers only

ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN The Intellectual Property Strategist

Stay current on the latest information, rulings, regulations, and trends
Includes practical, must-have information on copyrights, royalties, AI, and more
Tap into expert guidance from top entertainment lawyers and experts

Subscribe Now

Already have an account? Sign In Now

For enterprise-wide or corporate access, please contact Customer Service at [email protected] or call 1-877-256-2473.

NOT FOR REPRINT

Continue Reading

When AI Gets It Wrong: Managing the Legal Risk of Hallucinations in Business Decision-Making

The use of AI does not alter fundamental obligations of accuracy, reasonableness and accountability. The legal risk lies not in the existence of hallucinations but in the failure to govern and verify them.

March 31, 2026

Supreme Court Unanimously Rejects Effort to Hold ISPs Liable for Customers’ Copyright Infringement

The Court held that intent is required and that mere awareness of infringement does not establish secondary liability.

March 31, 2026

Supreme Court Unanimously Rejects Effort to Hold ISPs Liable for Customers’ Copyright Infringement Based Solely on Failure to Terminate Users

The Court held that intent is required and that mere awareness of infringement does not establish secondary liability.

March 31, 2026

Stop Hoping Your Law Firm Partners Become Rainmakers: Why Firms Need BD Infrastructure, Not Encouragement

If you want sustainable revenue growth, you cannot treat rainmaking as a personality trait. You must treat it as a professional discipline — one that is intentionally developed through structured partner development based on a proven framework.

March 31, 2026

The Hidden Cost of a Bad Executive Hire In Law Firms

Law firms often approach executive staff hiring with a fraction of that rigor they spend on recruiting partners and laterals. The result is a category of mistake that is expensive, slow to surface, and entirely preventable.

March 31, 2026