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Federal Circuit Applies Alice to Invalidate Online Transaction Patent
On Sept. 3, 2014, a Federal Circuit panel consisting of Judges Taranto and Hughes, issued a decision, authored by Judge Taranto, in buySAFE, Inc. v. Google Inc., Case No. 2013-1575. Judge Rader was a member of the panel, but retired, and did not participate in the decision. The panel upheld the district court's decision, finding that buySAFE's asserted claims were invalid under 35 U.S.C. '101.
buySAFE owned a patent claiming methods and computer programs for guaranteeing a party's performance of its online transactions. The broadest claim recited a method in which: 1) a request for a performance guarantee for an online commercial transaction is sent to a provider's computer; 2) the computer processes the request by underwriting the requesting party, guaranteeing the transaction; and 3) the computer offers, via a computer network, a transaction guarantee that binds the transaction upon its closing. See, Slip op. at 3. Other claims were drawn to specific methods of guaranteeing the transaction; still others were drawn to computer programs that carried out the methods.
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