District Court Applies Bilski to Deny Validity of Business Method Patent Claims
By Evan Kubota – Edited by Caitlyn Ross
Cybersource Corp. v. Retail Decisions, Inc.
N.D. Cal., March 26, 2009, No. C. 04-03268 MHP
On March 26, 2009, the United States District Court for the Northern District of California granted defendant Retail Decisions’ motion for summary judgment on the invalidity of two business method patent claims. The ruling invalidated the claims asserted in CyberSource Corp. U.S. Patent No. 6,029,154, titled “Method and system for detecting fraud in a credit card transaction over the Internet.”
California-based CyberSource sued U.K.-based Retail Decisions in 2004, claiming that Retail Decisions’ fraud prevention software products infringed the patent owned by CyberSource. Retail Decision moved for summary judgment, arguing that CyberSource’s patent failed the Bilski test.
In last year’s In re Bilski decision (covered here by Digest), the Federal Circuit articulated a patentability test requiring that a process either be tied to a machine or apparatus or involve a transformation. Applying the Bilski test, Judge Marilyn Hall Patel held that plaintiff CyberSource’s claims, both describing processes for detecting credit card fraud in Internet transactions, failed to meet either prong of the “machine-or-transformation” test.