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Published on : Aug 05, 2014

Patent system in the U.S. is famous the world over for its unfaltering protections of innovations and the concepts behind it. However, recent decisions taken by the Supreme Court in U.S. might have negative influence on how the system functions. The U.S. Senate has not addressed the issue regarding patent trolls, and experts from the legal department have begun to wonder if the courts will take over.

However, neither the legislators nor courts in the U.S. have directly addressed the growing issue related to patent trolls which are government sponsored nor the effect they will have on trade worldwide.

A recent ruling in the Supreme Court has reaffirmed the definition of ‘when a patent is valid and when it is not’. This ruling stated that patents can be associated with an idea and specific concerns of how the idea will be implemented or both.

This ruling has invalidated the patents which were held by Alice Corporation, since they were based on an idea and did not include any guidance on implementing the idea into an innovation or invention.

This has also influenced the idea that financial transfer from one party to another party via computer as a third party. The court has stated that simply requiring a generic computer implementation is not successful to change an abstract idea into an invention which is patent-eligible.

The parties which felt the consequences of this ruling are banking institutions. Also, the effects will be experienced most by the software industry. This ruling will now limit the way patents are distributed and also influence the way patents are applied within the software industry.