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Value Behind the Business Process Patent Controversy

BY Nir Kossovsky
September 29, 2008

A decision in the controversial patent case In re Bernard L. Bilski and Rand A. Warsaw v. U.S. Patent and Trademark Office is currently pending in the U.S. Court of Appeals for the Federal Circuit. Nominally, at stake is the future patentability of business methods. In fact, the patent question is but the most visible element. The scope of the underlying topic is far greater. The case highlights the importance of the business processes that link global business networks and create value in the intangible assets that comprise approximately 70%
of the average company's market capitalization.

Business Networks Link the World

Flat and lean enterprises that outsource non-core functions and collaborate with others are the new-economy model. With only limited physical assets, they are rich in intangible asset value and knowledge capital, and demonstrate superior returns on assets. In today's global markets for both goods and services, these enterprises depend on supply chains and robust business networks enabled by high-speed communication technologies. Such networks are the muscles and sinews of enterprise value and reputation.

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