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Federal Circuit Finds Internet Method Unpatentable Under Alice
On Nov. 14, 2014, a unanimous Federal Circuit panel of Judges Lourie, Mayer, and O'Malley, issued an opinion, authored by Judge Lourie, in Ultramercial, Inc. v. Hulu, LLC, Case No. 2010-1544. The panel upheld the lower court's dismissal of Ultramerical's infringement action and finding that the patent-in-suit does not claim patent-eligible subject matter. Judge O'Malley wrote a separate concurrence.
Ultramercial owns a patent directed to a method for distributing copyrighted media products over the internet, where the customer receives a copyrighted media product at no cost in exchange for viewing an advertisement, and the advertiser pays for the copyrighted content. Specifically, representative claim one includes 11 steps: 1) receiving copyrighted media from a content provider; 2) selecting an ad after consulting an activity log to determine whether the ad has been played less than a certain number of times; 3) offering the media for sale on the Internet; 4) restricting public access to the media; 5) offering the media to the consumer in exchange for watching the selected ad; 6) receiving a request to view the ad from the consumer; 7) facilitating display of the ad; 8) allowing the consumer access to the media; 9) allowing the consumer access to the media if the ad is interactive; 10) updating the activity log; and 11) receiving payment from the sponsor of the ad. See, Slip op at 9.
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