Use of terms “payment” and “transactions” does not automatically classify an invention as a business method

The case involves an appeal by COMVIVA TECHNOLOGIES LIMITED (C.A.(COMM.IPD-PAT)492/2022) against the decision of the Assistant Controller of Patents and Designs. The Controller refused the patent application titled “Methods and Devices for Authentication of an Electronic Payment Card using Electronic Token” on the grounds that the claims were in the nature of a business method and a computer program per se and thus not patentable under Section 3(k) of the Patents Act.

In this case, the court set aside the impugned order and directed the Patent Office to proceed with granting the patent, subject to any other objections in accordance with the provisions of the Patents Act.

Court’s observation

1. Patentability of computer-related inventions: The court emphasized that computer-related inventions demonstrating a technical effect or technical contribution are patentable, even if they are based on a computer program. The invention in question was found to provide a technical solution to a technical problem, specifically enhancing the security of electronic payment transactions.
2. Business method exception: The court clarified that the mere use of terms like “payment” and “transactions” does not automatically classify an invention as a business method. The invention must be examined as a whole to determine if it addresses a business problem or provides a technical solution.
3. Technical process vs. business concept: The court found that the inventive step in the subject application lay in the technical process of securing authentication, not in the business concept. The authentication process was completed before the actual financial transaction began, distinguishing it from a business method.
4. Guidelines for examination: The court referred to the Guidelines for Examination of Computer-Related Inventions, 2017, which state that claims should be examined as a whole to determine if they specify an apparatus and/or a technical process for carrying out the invention.

The case highlights the importance of distinguishing between technical and business aspects in patent applications, especially for computer-related inventions.

← Back to News