Cybersource Corporation v. Retail Decisions, Inc.

On August 16, 2011, the Federal Circuit issued a precedential opinion in Cybersource Corporation v. Retail Decisions, Inc., clarifying the standard for what is patentable subject matter under 35 U.S.C. § 101.  While this decision provides guidance to all business method inventors, the decision has particular relevance to software companies and inventors – particularly those involved with financial transactions and products. 

This Stroock Special Bulletin provides an overview of the decision, which (1) indicates that claims emphasizing algorithms and computer manipulation are more likely to be found patentable; and (2) reinterprets the standard for traditional Beauregard claims, which typically recite a computer readable medium with instructions that cause a computer to implement the method.