"America’s Supreme Court is about to issue a ruling which, by all accounts, will make it difficult, if not impossible, to get a patent for a business process. And because most business processes are, at bottom, computer algorithms, the Supreme Court’s judgment could also bar all sorts of software patents in the process. As a result, a lot of patents for online shopping, medical-diagnostic tests and procedures for executing trades on Wall Street could be invalidated.
The roots of the dispute go back more than a decade to two inventors, Bernard Bilski and Rand Warsaw, who sought to patent a method of hedging weather-related risks in energy prices. The USPTO concluded that the process was too abstract and denied the application. On appeal, the Federal Circuit actually upheld the patent office’s decision—and said, crucially, that the process would be eligible for a patent only if it was “tied to a particular machine or apparatus” or if it “transformed a particular article into a different state or thing”. Failing on both counts, the inventors took their case to the Supreme Court, which has been pondering for the past few months whether the “machine-or-transformation” test is an appropriate standard. It is hard to conclude it is not. "