Court Case: 057 Contract Law Case

PRICELINE V. MICROSOFT CASE STUDY

Julie Ciarlante

Briefly describe the specifics of patent ‘056 described in Exhibit 1 and the various court decisions around the State Street Bank & Trust Co. vs. Signature Financial Group Inc.

The Issue of this case was to determine whether or not Signature 's claimed invention the “056 Patent”, a data processing system, is drawn to statutory subject topic under 35 U.S.C 101. The Court ruling holds that the '056 Patent is directed to non-statutory subject matter under 35 U.S.C 101 and is therefore invalid. A unanimous Federal Circuit panel of Judges named Rich, Plager and Bryson overturned The Massachusetts District Courts
Federal Court of the District of Massachusetts to nullify Signature Financial Group’s patent on the grounds that the invention was an unpatentable mathematical algorithm and business method. The action was brought against Signature Financial Group, Inc., in efforts of seeking a declaratory ruling that Signature 's patent for a computerized accounting system for managing a mutual fund investment structure is unfounded and unenforceable.
State Street and Signature are both companies that act as administrators and accounting agents of mutual fund financial accounts. Signature is the founding owner of U.S. Patent No. 056 Patent, titled "Data Processing System for Hub and Spoke Financial Services Configuration". The invention provides a data processing system and method for monitoring and recording the flow of information and data.
The invention relates to a newly-developed financial investment vehicle, which State Street expressed as a "multi-tiered fund complex" and Signature calls by its patent name, a "Hub and Spoke"
The famous ‘207 ecommerce patent license resulted in the settlement between Priceline and Microsoft regarding the name your own price business model. The ‘207 patent is owned by Priceline and appears to be limited to the use of a credit card as a payment identifier or the need for a request for authorization from a buyer. However, in the patent the only practical invention covered by the patent is one in which credit cards are used. But even then, such transactions are only covered under claims in a broad manner. The ‘207 patent also seems to point out how to avoid using a financial account to avoid infringement. The ‘207 patent also discusses an anonymous form of payment – that is electronic or digital cash. The Priceline business model uses a reverse-auction where many sellers compete for one bidder 's business. Priceline 's '207 patent is a business-method patent about a reverse auction with many