A covered business method (CBM) patent is defined in section 18 of the America Invents Act (AIA) as a patent that "claims a method or corresponding apparatus for performing data processing or other operations used in the practice, administration, or management of a financial product or service," but is not for a "technological" invention.
Congress created CBM review because of a concern with "litigation abuse over business method patents.
Under these regulations, a CBM patent is one relating to monetary matters,[3] and a technological invention is one in which “the claimed subject matter as a whole recites a technological feature that is novel and unobvious over the prior art; and solves a technical problem using a technical solution.”[4] The USPTO has published a Trial Practice Guide explaining CBM procedures and amplifying its regulations on what is not a technological invention: a) Mere recitation of known technologies, such as computer hardware, communication or computer networks, software, memory, computer-readable storage medium, scanners, display devices or databases, or specialized machines, such as an ATM or point of sale device.
[5] CBM proceedings are tried before the Patent Trial and Appeal Board (PTAB), a newly created adjudicatory arm of the PTO.
[7] Although the issue was hotly contested for a time, it is now established that any statutory ground of invalidity may be considered, including patent ineligibility under 35 U.S.C.