Judge Marilyn Hall Patel isn't stodgy — she's hip to the hottest patent infringement defense that all the kids are using these days. From the bench on Monday afternoon, Patel invalidated CyberSource's patent claims under new case law from the Federal Circuit's In Re Bilski. Patent litigators are starting to use the Bilski case, which held that pure business methods aren't patentable unless they are tied to a machine or transform an article into another state.
And on Monday we told you how lawyers from Greenberg Traurig were going to try the Bilski argument out in patent fight between client Retail Decisions and CyberSource before Patel. CyberSource had originally sued Retail Decisions — a rival in the credit card fraud prevention business — for infringing its patent on a method for detecting online credit card fraud. Greenberg lawyers Scott Bornstein and local Jim Soong argued that CyberSource's patent didn't pass the Bilski test because it wasn't tied to a machine or transform anything. And Patel agreed, invalidating all of CyberSource's claims, according to a press release from Retail Decisions.
Local lawyers from MoFo — Karl Kramer and Marc Pernick — were on the losing end. The ruling snuffs out CyberSource's five-year patent infringement quest against Retail Decisions.
— Zusha Elinson