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Business method patents are a class of patents which disclose and claim new methods of doing business.This includes new types of e-commerce, insurance, banking and tax compliance etc.Accordingly, 'pure' business methods, being those that do not have a physical aspect, are not patentable in Australia.It has been suggested that Grant v Commissioner of Patents was wrongly decided because the court failed to properly apply the existing law as set out in the decision of the High Court of Australia in National Research Development Corporation v Commissioner of Patents (1959) 102 CLR 252 and that the court should not have imposed a physical aspect requirement.In general, inventions are eligible for patent protection if they pass the tests of patentability: patentable subject matter, novelty, inventive step or non-obviousness, and industrial applicability (or utility). For many years, the USPTO took the position that "methods of doing business" were not patentable.A business method may be defined as "a method of operating any aspect of an economic enterprise". With the emergence in the 1980s and 1990s of patent applications on internet or computer enabled methods of doing commerce, however, USPTO found that it was no longer practical to determine if a particular computer implemented invention was a technological invention or a business invention.However, a business method that is an abstract idea does not become patentable merely because it has a practical application.For example, a particular business method that is an abstract idea does not become patentable merely because it is programmed into a computer as an algorithm.

The court further confirmed this principle with AT&T Corp. It does not matter if the process is within the traditional technological arts or not. Metabolite Labs., Inc., arguing that State Street enunciated an erroneous legal test under which processes that the Supreme Court had held patent-ineligible would be held patent-eligible. With respect to the facts of the case before it, the Supreme Court affirmed the Federal Circuit's en banc rejection of an application for a patent on a method of stabilizing cost inputs in the energy industry by hedging price rises against decreases.In 2006, Justice Kennedy of the US Supreme Court cast aspersions on business method patents when he commented that some of them were of "potential vagueness and suspect validity". Although the Supreme Court rejected its exclusive use, the test is still important as a "useful and important clue" for determining patent eligibility of claimed process inventions. first, processes that transform an article from one state or thing to another are patent eligible regardless of whether their use requires a machine.This was expressed in a concurring opinion to the case of e Bay Inc. Processes involving transformation of abstract financial data, such as that claimed in machine format in State Street, are probably patent ineligible.Judge Mayer's dissent, however, seconded by Judges Dyk's and Linn's concurring opinion, insisted that the US patent system is limited to technology and therefore it excludes trade and business expedients.Judge Mayer equated the US Constitution's limitation of patent grants to the "useful arts" Several years later, in Alice v. This test first determines whether the claimed invention is directed to an abstract idea, law of nature, mathematical formula, or similar abstraction, If it is, the court is to proceed to the second step—determining whether the way the claimed invention implements the abstraction contains an inventive concept, as contrasted with being routine and conventional.

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