and specification of the patent application as
well as the file history of the application. Extrin-
sic evidence refers to all evidence other than
intrinsic evidence, including expert testimony.
The Vitronics Court held that intrinsic evidence
will be of foremost importance in claim inter-
pretation during enforcement, stating that
One scholarly critic of the patent system has
observed that the problem is not so much the
issuance of business method patents per se, but
rather the issuance of bad business method
patents [11]. Specifically, the problem is the
issuance of patents that never should have been
issued in the first place because they are obvi-
ous in view of the prior art. Moreover, our sys-
tem of enforcement in the courts is so slow,
expensive, and unpredictable that even an
improvidently issued patent can be a significant
impediment to progress. One proposed solution
is to overhaul the patent system to encourage
the Patent Office to more closely scrutinize the
more important patent applications and to
encourage participation by third parties in pre-
grant patent office proceedings so as to point
out prior art that the Patent Office otherwise
might have missed.
Thus, although changes in patent claim inter-
pretation by the courts somewhat balances the
increased scope of patentable subject matter, the
burden imposed by questionable patents is great.
The solution may be to roll back patent protec-
tion to exclude certain types of business meth-
ods, or to implement procedures to improve the
examination of patents by the Patent Office, or
some hybrid combination of these solutions. In
any case, the debate is far from over. Stay tuned!
The present
concern over
e-commerce
patents is well
placed.
“
intrinsic evidence is the most significant source
of the legally operative meaning of disputed
claim language … In most situations, an analy-
sis of the intrinsic evidence alone will resolve
any ambiguity in a disputed claim term. In such
circumstances, it is improper to rely on extrinsic
evidence.” The Court particularly emphasized
the importance of the specification (the portion
of the patent application containing a written
description of the invention) [10]: “[T]he speci-
fication is always highly relevant to the claim
construction analysis. Usually it is dispositive; it
is the single best guide to the meaning of a dis-
puted term.” The Court also made it clear that
prosecution history (all application papers and
communications pertaining to a patent between
an applicant and the Patent Office, which may
contain statements made by an applicant limit-
ing the scope of his/her invention) should also
be looked to whenever it is in evidence, and
noted that such history “is often of critical sig-
nificance.”
The effect of the Markman and Vitronics
decisions has been more rigorous, and, in many
cases, more restricted claim interpretation dur-
ing patent enforcement. In light of these deci-
sions, e-commerce companies attempting to
obtain patent protection should ensure that their
patent applications are well drafted and skillfully
prosecuted to issuance. Vitronics makes clear
that skillful drafting and prosecution are the best
methods to obtain the widest possible breadth of
interpretation from courts. Patent holders
attempting to rely on subsequent extrinsic evi-
dence such as expert testimony may find them-
selves unpleasantly surprised that their
e-commerce business method patent is not as
broad as they believed.
E-commerce is an
engine of
economic
growth. However,
the solution
proposed
by many
commentators,
curtailing patent
protection for
business method
patents, might
just miss the
point.
REFERENCES
1] L. Lesig, “Online Patents: Leave Them Pending,” Wall St.
[
J., Mar. 23.
[
2] J. Gleick, “Patently Absurd,” New York Times Mag.,
Mar. 12, 2000.
[3] In Re Schrader, 22 F. 3d 290, 292 (emphasis added).
4] Patentable Subject Matter: Mathematical Algorithms
and Computer Programs, 1106 Off. Gaz. Pat. & Trade-
mark Office 5, Sept. 5, 1989.
[
[5] In Re Sterling, 70 F.2d 910, CCPA, 1934.
[6] In Re Beauregard, 53 F.3d 1583, Fed. Cir., 1995.
[
[
7] “U.S. PTO Examination Guidelines for Computer-Related
Inventions,” 61 Federal Register 7478, 1996.
8] Article I, Section 8 of the Constitution of the United
States provides “The Congress shall have power … To
promote the progress of science and useful arts, by
securing for limited times to authors and inventors the
exclusive right to their respective writings and discover-
ies.”
[
[
[
9] S. Reiss, “St. Tim of the Web,” Forbes, Nov. 15, 1999,
p. 314.
10] See 35 U.S.C. Sec. 112, “Complete Description of the
Requirements for the Specification.”
11] R. P. Merges, “As Many as Six Impossible Patents Before
Breakfast: Property Rights for Business Concepts and
Patent System Reform,” 14 Berkeley Tech. L. J. 577, 1999.
A QUESTION OF
BALANCE OR PROCEDURE?
The present concern over e-commerce patents
is well placed. E-commerce is an engine of eco-
nomic growth. However, the solution proposed
by many commentators, curtailing patent pro-
tection for business method patents, might just
miss the point. Innovations in business meth-
ods are innovations just the same, and they
deserve protection pursuant to Article I, Sec-
tion 8, of the Constitution. The expansion in
the scope of patentable subject matter in the
software and business method domains is bal-
anced somewhat by a corresponding restriction
of the scope of claim interpretation during
patent enforcement in the courts. Nevertheless,
the e-commerce patents are perceived by many
as problematic. Perhaps the problem has to do
more with administrative process than with
patentable subject matter. The patent system is
ponderous and slow, and the Internet economy
is lightning fast.
BIOGRAPHIES
STEPHEN C. DURANT (sdurant@mofo.com) is a partner at Mor-
rison & Foerster and head of the Electronics, Software, and
Telecommunications Patent Group. He earned a B.S. degree
in electrical engineering from the University of Notre Dame
and a J.D. from Cornell Law School. He is registered to prac-
tice before the U.S. Patent and Trademark Office. He prac-
tices in the fields of electronics, software, and
telecommunications, developing patent portfolio and patent
licensing and patent enforcement strategies for technology
companies in all phases of development, from emerging-
growth enterprises to large corporations.
THOMAS C. CHUANG is an associate at Morrison & Foerster
and a member of the Electronics, Software, and Telecom-
munications Patent Group. He earned a B.S. in electrical
engineering from the University of Illinois in 1992, and a
J.D., cum laude, from the University of Minnesota in 1997.
He is registered to practice before the U.S. Patent and
Trademark Office.
110
IEEE Communications Magazine • July 2000