The U.S. Patent and Trademark Office ruled in favor of SAP America by invalidating a Versata Software patent. Those monitoring the decision say the decision proves that new PTO proceedings created by the America Invents Act are an effective way to challenge patents.

According to Patrick Doody, an IP partner in Pillsbury’s Northern Virginia office, the U.S. PTO’s Patent Trial and Appeal Board concluded that Versata’s patent covered an abstract idea that was ineligible for a patent under Section 101 of the Patent Act.

Before the AIA, challenges on that ground could not be reexamined, but the SAP ruling shows that this is now an option. “Because it was found invalid under 101, that will embolden people to challenge patents on that ground and make them say, ‘This is a pretty good avenue,’” Doody said.

In its decision, the board defended its choice to use the “broadest-reasonable-interpretation” standard when assessing the patent claims. Doody noted that the standard “is more favorable to challengers, because it opens up claims to other areas of attack.”

To read more about the case, visit: U.S. PTO Hears Its First America Invents Act Case