Vacation Exchange, LLC v. Wyndham Exchange and Rentals, Inc., et. al., 2-12-cv-04229 (CACD September 18, 2012, Order) (Klausner, J.).
Friday, September 21, 2012
Timeshare Trading Patent Invalid for Failure to Claim Patentable Subject Matter Under Bilski
The court granted defendant's motion to dismiss plaintiff's infringement action for failure to state a claim where the patent-in-suit for trading timeshare properties over a network did not cover patentable subject matter. "[T]he computer components in independent claim 1 do not play a significant part in permitting the method to be performed. A computer is required only for performing basic, high-level tasks like crediting and debiting accounts, and notifying property management. . . . [These steps] are indistinguishable from the tasks that a human would perform manually, which was how the vacation timeshare industry functioned for nearly 30 years before the [patent-in-suit] was filed. . . . Adding the words 'apply it to a computer' cannot transform an abstract idea into a patentable claim, yet Plaintiff’s bare recitations of a computer and a database attempt to do just that."