Section 18 of the America Invents Act enacts the "transitional post grant review proceeding," which offers broader measures for reviewing the validity of "covered business method patents." Section 18 offers a definition of patents qualifying as "covered business method patents," but explicitly excludes "technological inventions" from the scope of coverage.
The USPTO's recently proposed rules offer further guidance by defining a technological invention:
- In determining whether a patent is for a technological invention solely for purposes of the Transitional Program for Covered Business Methods (section 42.301(a)), the following will be considered on a case-by-case basis: whether the claimed subject matter as a whole (1) recites a technological feature that is novel and unobvious over the prior art; and (2) solves a technical problem using a technical solution.
We anticipate the USPTO and courts will have difficulties interpreting this definition. Thus, we expect many patentees to challenge a Section 18 petition as directed to a patent for a "technological invention."
