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b. Diamond v. Chakrabarty, 447 U.S. 303

U.S. Supreme Court

Diamond v. Chakrabarty, 447 U.S. 303 (1980

Diamond v. Chakrabarty

!o. 79"13#

$r%ued &ar'h 17, 1980

De'ided une 1#, 1980

447 U.S. 303

CERTIORARI TO THE UNITED STATES COURT OF CUSTOMS

AND PATENT APPEALS

Syllabus

Title 35 U.S.C. § 101 provides for the issuance of a patent to a person who

invents or discovers "any" new and useful "manufacture" or "composition of

matter." espondent !led a patent application relatin to his invention of a

human#made$ enetically enineered %acterium capa%le of %rea&in downcrude oil$ a property which is possessed %y no naturally occurrin %acteria. '

patent e(aminer)s re*ection of the patent application)s claims for the new

%acteria was a+rmed %y the ,atent -+ce oard of 'ppeals on the round

that livin thins are not patenta%le su%*ect matter under § 101. The Court of

Customs and ,atent 'ppeals reversed$ concludin that the fact that micro#

oranisms are alive is without leal sini!cance for purposes of the patent

law.

Held: ' live$ human#made micro#oranism is patenta%le su%*ect matter under

§ 101. espondent)s micro#oranism constitutes a "manufacture" or

"composition of matter" within that statute. ,p. // U. S. 30#31.

2a 4n choosin such e(pansive terms as "manufacture" and "composition of

matter$" modi!ed %y the comprehensive "any$" Conress contemplated that

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the patent laws should %e iven wide scope$ and the relevant leislative

history also supports a %road construction. hile laws of nature$ physical

phenomena$ and a%stract ideas are not patenta%le$ respondent)s claim is not

to a hitherto un&nown natural phenomenon$ %ut to a nonnaturally occurrin

manufacture or composition of matter ## a product of human inenuity"havin a distinctive name$ character 6and7 use." Hartranft v !"e#$ann% 181

U. S. 90:$ 181 U. S. 915. Fun& 'r(t)ers Seed C( v *al( In(+ulant C(% 333 U.

S. 18$ distinuished. ,p. // U. S. 30#310.

2% The passae of the 1:30 ,lant ,atent 'ct$ which a;orded patent

protection to certain ase(ually reproduced plants$ and the 1:0 ,lant $ @G>HU4ST$ and ST@S$ AA.$ *oined. @>>'>$ A.$ !led a

dissentin opinion$ in which G4T@$ F'SG'DD$ and ,-@DD$ AA.$

*oined$ ,(st% p.// U. S. 31.

,ae // U. S. 305

F. CG4@B AUST4C@ U@ delivered the opinion of the Court.

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e ranted certiorari to determine whether a live$ human#made micro#

oranism is patenta%le su%*ect matter under 35 U.S.C. § 101.

)

4n 1:8$ respondent Cha&ra%arty$ a micro%ioloist$ !led a patent application$

assined to the eneral @lectric Co. The application asserted 39 claims

related to Cha&ra%arty)s invention of

"a %acterium from the enus ,seudomons containin therein at least two

sta%le enery#eneratin plasmids$ each of said plasmids providin a

separate hydrocar%on deradative pathway. 6Bootnote 17"

This human#made$ enetically enineered %acterium is capa%le of %rea&in

down multiple components of crude oil. ecause of this property$ which is

possessed %y no naturally occurrin %acteria$ Cha&ra%arty)s invention is

%elieved to have sini!cant value for the treatment of oil spills. 6Bootnote 87

Cha&ra%arty)s patent claims were of three typesI !rst$ process claims for the

method of producin the %acteriaJ

,ae // U. S. 309

second$ claims for an inoculum comprised of a carrier material Koatin onwater$ such as straw$ and the new %acteriaJ and third$ claims to the %acteria

themselves. The patent e(aminer allowed the claims fallin into the !rst two

cateories$ %ut re*ected claims for the %acteria. Gis decision rested on two

roundsI 21 that micro#oranisms are "products of nature$" and 28 that$ as

livin thins$ they are not patenta%le su%*ect matter under 35 U.S.C. § 101.

Cha&ra%arty appealed the re*ection of these claims to the ,atent -+ce oard

of 'ppeals$ and the oard a+rmed the e(aminer on the second round.

6Bootnote 37 elyin on the leislative history of the 1:30 ,lant ,atent 'ct$ inwhich Conress e(tended patent protection to certain ase(ually reproduced

plants$ the oard concluded that § 101 was not intended to cover livin

thins such as these la%oratory created micro#oranisms.

The Court of Customs and ,atent 'ppeals$ %y a divided vote$ reversed on the

authority of its prior decision in In re 'er#y% 593 B.8d 1031$ 103 21:$

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which held that "the fact that micro#oranisms . . . are alive . . . 6is7 without

leal sini!cance" for purposes of the patent law. 6Bootnote /7 Su%se?uently$

we ranted the 'ctin Commissioner of ,atents and Trademar&s) petition for

certiorari in 'er#y%vacated the *udment$ and remanded the case "for further

consideration in liht of Par&er v Fl((&% /3 U. S. 5/ 21:." /3 U.S. :0821:. The Court of Customs and ,atent 'ppeals then vacated its *udment

in C)a&rabarty and consolidated the case with'er#y for reconsideration.

'fter ree(aminin %oth cases in the liht of our holdin in Fl((&% that court$

with one dissent$ rea+rmed its earlier *udments. 5:9 B.8d :58 21::.

,ae // U. S. 30

The Commissioner of ,atents and Trademar&s aain souht certiorari$ and we

ranted the writ as to %oth ery and Cha&ra%arty. /// U.S. :8/ 21::.Since then$ 'er#y has %een dismissed as moot$ /// U.S. 108 21:0$

leavin only C)a&rabarty for decision.

))

The Constitution rants Conress %road power to leislate to

"promote the ,roress of Science and useful 'rts$ %y securin for limited

Times to 'uthors and 4nventors the e(clusive iht to their respective

ritins and Liscoveries."

'rt. 4$ § $ cl. . The patent laws promote this proress %y o;erin inventors

e(clusive rihts for a limited period as an incentive for their inventiveness

and research e;orts. *e-anee O"l C( v '"+r(n C(r,% /19 U. S. /0$ /19 U.

S. /0#/1 21:/J Un"versal O"l C( v .l(be C(% 388 U. S. /1$ 388 U. S.

// 21://. The authority of Conress is e(ercised in the hope that

"6t7he productive e;ort there%y fostered will have a positive e;ect on society

throuh the introduction of new products and processes of manufacture into

the economy$ and the emanations %y way of increased employment and

%etter lives for our citi=ens."

*e-anee% su,ra% at/19 U. S. /0.

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The ?uestion %efore us in this case is a narrow one of statutory interpretation

re?uirin us to construe 35 U.S.C. § 101$ which providesI

"hoever invents or discovers any new and useful process$ machine$

manufacture$ or composition of matter$ or any new and useful improvementthereof$ may o%tain a patent therefor$ su%*ect to the conditions and

re?uirements of this title."

Speci!cally$ we must determine whether respondent)s micro#oranism

constitutes a "manufacture" or "composition of matter" within the meanin

of the statute. 6Bootnote 57

,ae // U. S. 30

)))

4n cases of statutory construction we %ein$ of course$ with the lanuae of

the statute. S(ut)eastern C($$un"ty C(lle#e v Dav"s% //8 U. S. 3:$ //8 U.

S. /05 21::. 'nd "unless otherwise de!ned$ words will %e interpreted as

ta&in their ordinary$ contemporary$ common meanin." Perr"n v Un"ted

States% /// U. S. 3$ /// U. S. /8 21::. e have also cautioned that courts

"should not read into the patent laws limitations and conditions which the

leislature has not e(pressed." Un"ted States v Dub"l"er C(ndenser

C(r,% 8: U. S. 1$ 8: U. S. 1:: 21:33 .

uided %y these canons of construction$ this Court has read the term

"manufacture" in § 101 in accordance with its dictionary de!nition to mean

"the production of articles for use from raw or prepared materials %y ivin

to these materials new forms$ ?ualities$ properties$ or com%inations$ whether

%y hand la%or or %y machinery."

A$er"+an Fru"t .r(-ers% In+ v 'r(#de/ C(% 83 U. S. 1$ 83 U. S. 11 21:31.Similarly$ "composition of matter" has %een construed consistent with its

common usae to include

"all compositions of two or more su%stances and . . . all composite articles$

whether they %e the results of chemical union$ or of mechanical mi(ture$ or

whether they %e ases$ Kuids$ powders or solids."

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S)ell Devel(,$ent C( v !ats(n% 1/: B.Supp. 8:$ 80 2LC 1:5 2citin 1 '.

Leller$ al&er on ,atents § 1/$ p. 55 21st ed.1:3. 4n choosin such

e(pansive terms as "manufacture" and "composition of matter$" modi!ed %y

the comprehensive "any$" Conress plainly contemplated that the patent

laws would %e iven wide scope.

The relevant leislative history also supports a %road construction. The

,atent 'ct of 1:3$ authored %y Thomas Ae;erson$ de!ned statutory su%*ect

matter as "any new and useful art$ machine$ manufacture$ or composition of

matter$ or any new or useful improvement 6thereof7." 'ct of Be%. 81$ 1:3$ §

1$ 1 Stat. 31:. The 'ct em%odied Ae;erson)s philosophy that "inenuity

should receive a li%eral encouraement."

,ae // U. S. 30:

5 ritins of Thomas Ae;erson 5#9 2ashinton ed. 11. See .ra)a$ v

0()n Deere C(% 33 U. S. 1$ 33 U. S. #10 21:99. Su%se?uent patent

statutes in 139$ 10$ and 1/ employed this same %road lanuae. 4n

1058$ when the patent laws were recodi!ed$ Conress replaced the word

"art" with "process$" %ut otherwise left Ae;erson)s lanuae intact. The

Committee eports accompanyin the 1:58 'ct inform us that Conress

intended statutory su%*ect matter to "include anythin under the sun that is

made %y man." S ep. >o 1::$ 8d Con.$ 8d Sess.$ 5 21:58J G..ep. >o.1::$ 8d Con.$ 8d Sess.$ 9 21:58. 6Bootnote 97

This is not to suest that § 101 has no limits$ or that it em%races every

discovery. The laws of nature$ physical phenomena$ and a%stract ideas have

%een held not patenta%le. See Par&er v Fl((&% /3 U. S.

5/ 21:J.(tts+)al& v 'ens(n% /0: U. S. 93$ /0: U. S. 9 21:8JFun&

'r(t)ers Seed C( v *al( In(+ulant C(% 333 U. S. 18$ 333 U. S.

130 21:/JO1Re"lly v M(rse% 15 Gow. 98$59 U. S. 118#181 215/J Le R(y v

Tat)a$% 1/ Gow. 159$55 U. S. 15 2153. Thus$ a new mineral discovered in

the earth or a new plant found in the wild is not patenta%le su%*ect matter.

Di&ewise$ @instein could not patent his cele%rated law that @Mmc8J nor could

>ewton have patented the law of ravity. Such discoveries are

"manifestations of . . . nature$ free to all men and reserved e(clusively to

none."Fun&% su,ra at333 U. S. 130.

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Auded in this liht$ respondent)s micro#oranism plainly ?uali!es as

patenta%le su%*ect matter. Gis claim is not to a hitherto un&nown natural

phenomenon$ %ut to a nonnaturally occurrin manufacture or composition of

matter ## a product of human inenuity "havin a distinctive name$ character

6and7

,ae // U. S. 310

use." Hartranft v !"e#$ann% 181 U. S. 90:$ 181 U. S. 915 21. The point

is underscored dramatically %y comparison of the invention here with that

in Fun& There$ the patentee had discovered that there e(isted in nature

certain species of root nodule %acteria which did not e(ert a mutually

inhi%itive e;ect on each other. Ge used that discovery to produce a mi(ed

culture capa%le of inoculatin the seeds of leuminous plants. Concludinthat the patentee had discovered "only some of the handiwor& of nature$"

the Court ruled the product nonpatenta%leI

"@ach of the species of root#nodule %acteria contained in the pac&ae infects

the same roup of leuminous plants which it always infected. >o species

ac?uires a di;erent use. The com%ination of species produces no new

%acteria$ no chane in the si( species of %acteria$ and no enlarement of the

rane of their utility. @ach species has the same e;ect it always had. The

%acteria perform in their natural way. Their use in com%ination does notimprove in any way their natural functionin. They serve the ends nature

oriinally provided$ and act ?uite independently of any e;ort of the

patentee."

333 U.S. at 333 U. S. 131. Gere$ %y contrast$ the patentee has produced a

new %acterium with mar&edly di;erent characteristics from any found in

nature$ and one havin the potential for sini!cant utility. Gis discovery is not

nature)s handiwor&$ %ut his ownJ accordinly it is patenta%le su%*ect matter

under § 101.

)*

Two contrary aruments are advanced$ neither of which we !nd persuasive.

2A3

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>or does the passae of the 1:0 ,lant


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considerations involved$ and to determine whether livin oranisms

produced %y enetic enineerin should receive patent protection. 4n support

of this position$ the petitioner relies on our recent holdin in Par&er v

Fl((&% /3 U. S. 5/ 21:$ and the statement that the *udiciary "must

proceed cautiously when . . . as&ed to e(tend

,ae // U. S. 315

patent rihts into areas wholly unforeseen %y Conress." Id at/3 U. S. 5:9.

4t is$ of course$ correct that Conress$ not the courts$ must de!ne the limits

of patenta%ilityJ %ut it is e?ually true that$ once Conress has spo&en$ it is

"the province and duty of the *udicial department to say what the law

is." Marbury v Mad"s(n% 1 Cranch 13$5 U. S. 1 2103. Conress hasperformed its constitutional role in de!nin patenta%le su%*ect matter in §

101J we perform ours in construin the lanuae Conress has employed. 4n

so doin$ our o%liation is to ta&e statutes as we !nd them$ uided$ if

am%iuity appears$ %y the leislative history and statutory purpose. Gere$ we

perceive no am%iuity. The su%*ect matter provisions of the patent law have

%een cast in %road terms to ful!ll the constitutional and statutory oal of

promotin "the ,roress of Science and the useful 'rts" with all that means

for the social and economic %ene!ts envisioned %y Ae;erson. road eneral

lanuae is not necessarily am%iuous when conressional o%*ectivesre?uire %road terms.

>othin in Fl((& is to the contrary. That case applied our prior precedents to

determine that a "claim for an improved method of calculation$ even when

tied to a speci!c end use$ is unpatenta%le su%*ect matter under § 101." /3

U.S. at /3 U. S. 5:5$ n. 1. The Court carefully scrutini=ed the claim at issue

to determine whether it was precluded from patent protection under "the

principles underlyin the prohi%ition aainst patents for "deas1 (r ,)en($ena

(f nature6 Id at 789 U S ;8 !e )ave d(ne t)at )ere Fl((& d"d n(t

ann(un+e a ne- ,r"n+",le t)at "nvent"(ns "n areas n(t +(nte$,lated by

C(n#ress -)en t)e ,atent la-s -ere ena+ted are un,atentable ,er se

To read that concept into Fl((& would frustrate the purposes of the patent

law. This Court fre?uently has o%served that a statute is not to %e con!ned to

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the "particular application6s7 . . . contemplated %y the leislators." 'arr v

Un"ted States% 38/ U. S. 3$ 38/ U. S. :021:/5. A++(rd% 'r(-der v Un"ted

States% 318 U. S. 335$ 318 U. S. 33: 21:/1JPuert( R"+( v S)ell C(%

,ae // U. S. 319

308 U. S. 853$ 308 U. S. 85 21:3. This is especially true in the !eld of

patent law. ' rule that unanticipated inventions are without protection would

conKict with the core concept of the patent law that anticipation undermines

patenta%ility. See .ra)a$ v 0()n Deere C(% 33 U.S. at33 U. S. 18#1. Fr.

Austice Loulas reminded that the inventions most %ene!tin man&ind are

those that "push %ac& the frontiers of chemistry. physics$ and the li&e." .reat

A < P Tea C( v Su,er$ar&et C(r,% 3/0 U. S. 1/$ 3/0 U. S. 15/ 21:50

2concurrin opinion. Conress employed %road eneral lanuae in draftin§ 101 precisely %ecause such inventions are often unforeseea%le. 6Bootnote

107

To %uttress his arument$ the petitioner$ with the support of a$"+us% points to

rave ris&s that may %e enerated %y research endeavors such as

respondent)s. The %riefs present a ruesome parade of horri%les. Scientists$

amon them >o%el laureates$ are ?uoted suestin that enetic research

may pose a serious threat to the human race$ or$ at the very least$ that the

daners are far too su%stantial to permit such research to proceed apace atthis time. e are told that enetic research and related technoloical

developments may spread pollution and disease$ that it may result in a loss

of enetic diversity$ and that its practice may tend to depreciate the value of

human life. These aruments are forcefully$ even passionately$ presentedJ

they remind us that$ at times$ human inenuity seems una%le to control fully

the forces it creates ## that$ with Gamlet$ it is sometimes %etter "to %ear

those ills we have than Ky to others that we &now not of."

4t is arued that this Court should weih these potential ha=ards in

considerin whether respondent)s invention is

,ae // U. S. 31

patenta%le su%*ect matter under § 101. e disaree. The rant or denial of

patents on micro#oranisms is not li&ely to put an end to enetic research or

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13/106

to its attendant ris&s. The lare amount of research that has already

occurred when no researcher had sure &nowlede that patent protection

would %e availa%le suests that leislative or *udicial !at as to patenta%ility

will not deter the scienti!c mind from pro%in into the un&nown any more

than Canute could command the tides. hether respondent)s claims arepatenta%le may determine whether research e;orts are accelerated %y the

hope of reward or slowed %y want of incentives$ %ut that is all.

hat is more important is that we are without competence to entertain these

aruments ## either to %rush them aside as fantasies enerated %y fear of the

un&nown or to act on them. The choice we are ured to ma&e is a matter of

hih policy for resolution within the leislative process after the &ind of

investiation$ e(amination$ and study that leislative %odies can provide and

courts cannot. That process involves the %alancin of competin values and

interests$ which$ in our democratic system$ is the %usiness of elected

representatives. hatever their validity$ the contentions now pressed on us

should %e addressed to the political %ranches of the overnment$ the

Conress and the @(ecutive$ and not to the courts. 6Bootnote 117

,ae // U. S. 31

e have emphasi=ed in the recent past that

"6o7ur individual appraisal of the wisdom or unwisdom of a particular

6leislative7 course . . . is to %e put aside in the process of interpretin a

statute."

T5A v H"ll% /3 U.S. at/3 U. S. 1:/. -ur tas&$ rather$ is the narrow one of

determinin what Conress meant %y the words it used in the statuteJ once

that is done$ our powers are e(hausted. Conress is free to amend § 101 so

as to e(clude from patent protection oranisms produced %y enetic

enineerin. Cf /8 U.S.C. § 8112a$ e(emptin from patent protectioninventions "useful solely in the utili=ation of special nuclear material or

atomic enery in an atomic weapon." -r it may choose to craft a statute

speci!cally desined for such livin thins. ut$ until Conress ta&es such

action$ this Court must construe the lanuae of § 101 as it is. The lanuae

of that section fairly em%races respondent)s invention.

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14/106

'ccordinly$ the *udment of the Court of Customs and ,atent 'ppeals is

A=r$ed

6Bootnote 17

,lasmids are hereditary units physically separate from the chromosomes of

the cell. 4n prior research$ Cha&ra%arty and an associate discovered that

plasmids control the oil deradation a%ilities of certain %acteria. 4n particular$

the two researchers discovered plasmids capa%le of deradin camphor and

octane$ two components of crude oil. 4n the wor& represented %y the patent

application at issue here$ Cha&ra%arty discovered a process %y which four

di;erent plasmids$ capa%le of deradin four di;erent oil components$ could

%e transferred to and maintained sta%ly in a sinle ,seudomonas %acterium$which itself has no capacity for deradin oil.

6Bootnote 87

't present$ %ioloical control of oil spills re?uires the use of a mi(ture of

naturally occurrin %acteria$ each capa%le of deradin one component of

the oil comple(. 4n this way$ oil is decomposed into simpler su%stances which

can serve as food for a?uatic life. Gowever$ for various reasons$ only a

portion of any such mi(ed culture survives to attac& the oil spill. y %rea&in

down multiple components of oil$ Cha&ra%arty)s microoranism promises

more e+cient and rapid oil#spill control.

6Bootnote 37

The oard concluded that the new %acteria were not "products of nature$"

%ecause ,seudomonas %acteria containin two or more di;erent enery#

eneratin plasmids are not naturally occurrin.

6Bootnote /7

'er#y involved a patent application for a pure culture of the

microoranism Stre,t($u+es vell(sus found to %e useful in the production of

lincomycin$ an anti%iotic.

6Bootnote 57

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15/106


16/106

"4t is a little hard for plant men to understand why 6'rt. 4$ § 7 of the

Constitution should not have %een earlier construed to include the promotion

of the art of plant %reedin. The reason for this is pro%a%ly to %e found in the

principle that natural products are not patenta%le."

Blorists @(chane and Gorticultural Trade orld$ Auly 15$ 1:33$ p. :.

6Bootnote :7

4n 13$ the ,atent -+ce ranted Douis ,asteur a patent on "yeast$ free from

oranic erms of disease$ as an article of manufacture." 'nd in 1:9 and

1:9$ immediately prior to the passae of the ,lant ational 4nstitutes of Gealth released uidelines for >4G#sponsored enetic

research which esta%lished conditions under which such research could %e

performed. /1 Bed.e. 8:08. 4n 1:$ those uidelines were revised and

rela(ed. /3 Bed.e. 9000$ 9010$ 9013/. 'nd Committees of the Conress

have held e(tensive hearins on these matters. See% e#% Gearins on

enetic @nineerin %efore the Su%committee on Gealth of the Senate

Committee on Da%or and ,u%lic elfare$ :/th Con.$ 1st Sess. 21:5J

Gearins %efore the Su%committee on Science$ Technoloy$ and Space of the

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17/106


18/106

capa%le of se(ual reproduction. Thus$ we are not dealin ## as the Court

would have it ## with the routine pro%lem of "unanticipated

inventions." Ante at // U. S. 319. 4n these two 'cts$ Conress has

addressed the eneral pro%lem of patentin animate inventions and has

chosen carefully limited lanuae rantin protection to some &inds ofdiscoveries$ %ut speci!cally e(cludin others. These 'cts stronly evidence a

conressional limitation that e(cludes %acteria from patenta%ility. 6Bootnote

8P87

,ae // U. S. 380

Birst$ the 'cts evidence Conress) understandin$ at least since 1:30$ that §

101 does not include livin oranisms. 4f newly developed livin oranisms

not naturally occurrin had %een patenta%le under § 101$ the plants includedin the scope of the 1:30 and 1:0 'cts could have %een patented without

new leislation. Those plants$ li&e the %acteria involved in this case$ were

new varieties not naturally occurrin. 6Bootnote 8P37 'lthouh the

Court$ ante at// U. S. 311$ re*ects this line of arument$ it does not e(plain

why the 'cts were necessary unless to correct a pree(istin situation.

6Bootnote 8P/7 4 cannot share the Court)s implicit assumption that Conress

was enaed in either idle e(ercises or mere correction of the pu%lic record

when it enacted the 1:30 and 1:0 'cts. 'nd Conress certainly thouht it

was doin somethin sini!cant. The Committee eports contain e(pansive

prose a%out the previously unavaila%le %ene!ts to %e derived from e(tendin

patent protection to plants. 6Bootnote 8P57 G..ep.

,ae // U. S. 381

>o. :1#1905$ pp. 1#3 21:0J S.ep. >o. 315$ 1st Con.$ 8d Sess.$ 1#3

21:30. ecause Conress thouht it had to leislate in order to ma&e

aricultural "human#made inventions" patenta%le$ and %ecause the

leislation Conress enacted is limited$ it follows that Conress never meant

to ma&e items outside the scope of the leislation patenta%le.

Second$ the 1:0 'ct clearly indicates that Conress has included %acteria

within the focus of its leislative concern$ %ut not within the scope of patent

protection. Conress speci!cally e(cluded %acteria from the coverae of the

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19/106

1:0 'ct. U.S.C. § 8/082a. The Court)s attempts to supply e(planations for

this e(plicit e(clusion rin hollow. 4t is true that there is no mention in the

leislative history of the e(clusion$ %ut that does not ive us license to invent

reasons. The fact is that Conress$ assumin that animate o%*ects as to

which it had not speci!cally leislated could not %e patented$ e(cluded%acteria from the set of patenta%le oranisms.

The Court protests that its holdin today is dictated %y the %road lanuae of

§ 101$ which cannot "%e con!ned to the ,art"+ular a,,l"+at"(n>s?

+(nte$,lated by t)e le#"slat(rs16 Ante at 779 U S 8@% u(t"n# 'arr v

Un"ted States% 8B7 U S 8% 8B7 U S ;2@;73 'ut as I )ave s)(-n% t)e

C(urt1s de+"s"(n d(es n(t f(ll(- t)e unav("dable "$,l"+at"(ns (f t)e statute

Rat)er% "t e/tends t)e ,atent syste$ t( +(ver l"v"n# $ater"al

Pa#e 779 U S 8BB

even t)(u#) C(n#ress ,la"nly )as le#"slated "n t)e bel"ef t)at @@ d(es n(t

en+($,ass l"v"n# (r#an"s$s It "s t)e r(le (f C(n#ress% n(t t)"s C(urt% t(

br(aden (r narr(- t)e rea+) (f t)e ,atent la-s T)"s "s es,e+"ally true

-)ere% as )ere% t)e +($,(s"t"(n s(u#)t t( be ,atented un"uely "$,l"+ates

$atters (f ,ubl"+ +(n+ern

6Bootnote 8P17

4 read the Court to admit that the popular conception$ even amon

advocates of aricultural patents$ was that livin oranisms were

unpatenta%le. See ante at// U. S. 311#318$ and n. .

6Bootnote 8P87

ut even if 4 areed with the Court that the 1:30 and 1:0 'cts were not

dispositive$ 4 would dissent. This case presents even more coent reasons

than Dee,s(ut) Pa+&"n# C( not to e(tend the patent monopoly in the face of

uncertainty. 't the very least$ these 'cts are sins of leislative attention to

the pro%lems of patentin livin oranisms$ %ut they ive no a+rmative

indication of conressional intent that %acteria %e patenta%le. The caveat

of Par&er v Fl((&% /3 U. S. 5/$ /3 U. S. 5:9 21:$ an admonition to

"proceed cautiously when we are as&ed to e(tend patent rihts into areas

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20/106

wholly unforeseen %y Conress$" therefore %ecomes pertinent. 4 should thin&

the necessity for caution is that much reater when we are as&ed to e(tend

patent rihts into areas Conress has foreseen and considered$ %ut has not

resolved.

6Bootnote 8P37

The Court refers to the loic employed %y Conress in choosin not to

perpetuate the "dichotomy" suested %y Secretary Gyde. Anteat // U. S.

313. ut %y this loic$ the %acteria at issue here are distinuisha%le from a

"mineral . . . created wholly %y nature" in e(actly the same way as were the

new varieties of plants. 4f a new 'ct was needed to provide patent protection

for the plants$ it was e?ually necessary for %acteria. Qet Conress provided

for patents on plants$ %ut not on these %acteria. 4n short$ Conress decidedto ma&e only a su%set of animate "human#made

inventions$" "b"d% patenta%le.

6Bootnote 8P/7

4f the 1:30 'ct)s only purpose were to solve the technical pro%lem of

description referred to %y the Court$ ante at// U. S. 318$ most of the 'ct$

and in particular its limitation to ase(ually reproduced plants$ would have

%een totally unnecessary.

6Bootnote 8P57

Secretary Gyde)s letter was not the only e(plicit indication in the leislative

history of these 'cts that Conress was actin on the assumption that

leislation was necessary to ma&e livin oranisms patenta%le. The Senate

Audiciary Committee eport on the 1:0 'ct states the Committee)s

understandin that patent protection e(tended no further than the e(plicit

provisions of these 'ctsI

"Under the patent law$ patent protection is limited to those varieties of

plants which reproduce ase(ually$ that is$ %y such methods as raftin or

%uddin. >o protection is availa%le to those varieties of plants which

reproduce se(ually$ that is$ enerally %y seeds."

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21/106

S.ep. >o. :1#18/9$ p. 3 21:0. Similarly$ epresentative ,oae$ spea&in

for the 1:0 'ct$ after notin the protection accorded ase(ually developed

plants$ stated that$ "for plants produced from seed$ there has %een no such

protection." 119 Con.ec. /08:5 21:0.

c. Association for Molecular Pathology v. USPTO (The Myriad Case), 569 U.S. 12

ASSOCIATION FOR MOLECULAR PATHOLOGY,et al., PETITIONERS v. MYRIADGENETICS,

INC., et al.

on writ of certiorari to the united states court of appeals for the

federal circuit

[June 13, !13"

Ju#t$%e T&'(a# )el$*e+e) t&e '$n$'n '- t&e C'u+t.

Re#'n)ent M+$a) Genet$%#, In%. /M+$a)0, )$#%'*e+e) t&e +e%$#e l'%at$'n an)

#euen%e '- t2' &u(an ene#, (utat$'n# '- 2&$%& %an #u4#tant$all $n%+ea#e t&e +$#5#

'- 4+ea#t an) '*a+$an %an%e+. M+$a) '4ta$ne) a nu(4e+'- atent# 4a#e) u'n $t#)$#%'*e+. T&$# %a#e $n*'l*e# %la$(# -+'( t&+ee '- t&e( an) +eu$+e# u# t' +e#'l*e

2&et&e+ a natu+all '%%u++$n #e(ent '- )e'6+$4'nu%le$% a%$) /DNA0 $# atent el$$4le

un)e+ 37 U. S. C. 81!1 4 *$+tue '- $t# $#'lat$'n -+'( t&e +e#t '- t&e &u(an en'(e.

9e al#' a))+e## t&e atent el$$4$l$t '- #nt&et$%all %+eate) DNA 5n'2n a#

%'(le(enta+ DNA /%DNA0, 2&$%& %'nta$n# t&e #a(e +'te$n:%')$n $n-'+(at$'n -'un)

$na #e(ent '- natu+al DNA 4ut '($t# '+t$'n# 2$t&$n t&e DNA #e(ent t&at )' n't

%')e -'+ +'te$n#. F'+ t&e +ea#'n# t&at -'ll'2, 2e &'l) t&at a natu+all '%%u++$n DNA

#e(ent $# a +')u%t '- natu+e an) n't atent el$$4le (e+el 4e%au#e $t &a# 4een

$#'late), 4ut t&at %DNA $# atent el$$4le 4e%au#e $t $# n't natu+all '%%u++$n. 9e,

t&e+e-'+e, a--$+( $n a+t an) +e*e+#e $n a+t t&e )e%$#$'n '- t&e Un$te) State# C'u+t '-

Aeal# -'+ t&e Fe)e+al C$+%u$t.

I

A

http://www.law.cornell.edu/uscode/35/101.htmlhttp://www.law.cornell.edu/uscode/35/101.htmlhttp://www.law.cornell.edu/uscode/35/101.htmlhttp://www.law.cornell.edu/uscode/35/101.html


22/106

Gene# -'+( t&e 4a#$# -'+ &e+e)$ta+ t+a$t# $n l$*$n '+an$#(#. See ene+all Association

for Molecular Pathology *. United States Patent and Trademark Office, ;! F. Su. )

111 /SDNY !1!0. T&e &u(an e:n'(e %'n#$#t# '- a+'6$(atel ,!!!

ene# a%5e) $nt' 3 a$+# '- %&+'('#'(e#. Ea%& ene $# en%')e) a# DNA, 2&$%& ta5e#

t&e #&ae '- t&e -a($l$a+ ?)'u4le &el$6@t&at D'%t'+# Ja(e# 9at#'n an) F+an%$# C+$%5

-$+#t )e#%+$4e) $n 1=73. Ea%& ?%+'##:4a+@ $n t&e DNA &el$6 %'n#$#t# '- t2' %&e($%all

'$ne) nu%le't$)e#. T&e '##$4le nu%le't$)e# a+e a)en$ne /A0, t&($ne /T0, %t'#$ne /C0,

an) uan$ne /G0, ea%& '- 2&$%& 4$n)# natu+all 2$t& an't&e+ nu%le't$)eB A a$+# 2$t& T

C a$+# 2$t& G. T&e nu%le't$)e %+'##:4a+# a+e %&e($%all %'nne%te) t' a #ua+:

&'#&ate 4a%54'ne t&at -'+(# t&e 'ut#$)e -+a(e2'+5 '- t&e DNA &el$6. Seuen%e# '-

DNA nu%le't$)e# %'nta$n t&e $n-'+(at$'n ne%e##a+ t' %+eate #t+$n# '- a($n' a%$)#,

2&$%& $n tu+n a+e u#e) $n t&e 4') t' 4u$l) +'te$n#. Onl #'(e DNA nu%le't$)e#,

&'2e*e+, %')e -'+ a($n' a%$)# t&e#e nu%le't$)e# a+e 5n'2n a# ?e6'n#.@ Nu%le't$)e#

t&at )' n't %')e -'+ a($n' a%$)#, $n %'nt+a#t, a+e 5n'2n a# ?$nt+'n#.@

C+eat$'n '- +'te$n# -+'( DNA $n*'l*e# t2' +$n%$al #te#, 5n'2n a# t+an#%+$t$'n an)

t+an#lat$'n. In t+an#%+$t$'n, t&e 4'n)# 4et2een DNA nu%le't$)e# #ea+ate, an) t&e DNA

&el$6 un2$n)# $nt' t2' #$nle #t+an)#. A #$nle #t+an) $# u#e) a# a te(late t' %+eate a

%'(le(enta+ +$4'nu%le$% a%$) /RNA0 #t+an). T&e nu%le't$)e# 'n t&e DNA #t+an) a$+

natu+all 2$t& t&e$+ %'unte+a+t#, 2$t& t&e e6%et$'n t&at RNA u#e# t&e nu%le't$)e 4a#e

u+a%$l /U0 $n#tea) '- t&($ne /T0. T+an#%+$t$'n +e#ult# $n a #$nle #t+an) RNA ('le%ule,

5n'2n a# +e:RNA, 2&'#e nu%le't$)e# -'+( an $n*e+#e $(ae '- t&e DNA #t+an) -+'(

2&$%& $t 2a# %+eate). P+e:RNA #t$ll %'nta$n# nu%le't$)e# %'++e#'n)$n t' 4't& t&e e6'n#

an) $nt+'n# $n t&e DNA ('le%ule. T&e +e:RNA $# t&en natu+all ?#l$%e)@ 4 t&e &#$%al

+e('*al '- t&e $nt+'n#. T&e +e#ult$n +')u%t $# a #t+an) '- RNA t&at %'nta$n#nu%le't$)e# %'++e#'n)$n 'nl t' t&e e6'n# -+'( t&e '+$$nal DNA #t+an). T&e e6'n#:

'nl #t+an) $# 5n'2n a# (e##ene+ RNA /(RNA0, 2&$%& %+eate# a($n' a%$)# t&+'u&

t+an#lat$'n. In t+an#lat$'n, %ellula+ #t+u%tu+e# 5n'2n a# +$4'#'(e# +ea) ea%& #et '-

t&+ee nu%le't$)e#, 5n'2n a# %')'n#, $n t&e (RNA. Ea%& %')'n e$t&e+ tell# t&e

+$4'#'(e# 2&$%& '- t&e ! '##$4le a($n' a%$)# t' #nt&e#$e '+ +'*$)e# a #t' #$nal

t&at en)# a($n' a%$) +')u%t$'n.

DNA# $n-'+(at$'nal #euen%e# an) t&e +'%e##e# t&at %+eate (RNA, a($n' a%$)#, an)

+'te$n# '%%u+ natu+all 2$t&$n %ell#. S%$ent$#t# %an, &'2e*e+, e6t+a%t DNA -+'( %ell#

u#$n 2ell 5n'2n la4'+at'+ (et&')#. T&e#e (et&')# all'2 #%$ent$#t# t' $#'late #e%$-$%

#e(ent# '- DNA-'+ $n#tan%e, a a+t$%ula+ ene '+ a+t '- a ene2&$%& %an t&en 4e

-u+t&e+ #tu)$e), (an$ulate), '+ u#e). It $# al#' '##$4le t' %+eate DNA #nt&et$%all

t&+'u& +'%e##e# #$($la+l 2ell 5n'2n $n t&e -$el) '- enet$%#. One #u%& (et&') 4e$n#

2$t& an (RNA ('le%ule an) u#e# t&e natu+al 4'n)$n +'e+t$e# '- nu%le't$)e# t'

%+eate a ne2, #nt&et$% DNA ('le%ule. T&e +e#ult $# t&e $n*e+#e '- t&e (RNA# $n*e+#e

$(ae '- t&e '+$$nal DNA, 2$t& 'ne $('+tant )$#t$n%t$'nB e%au#e t&e natu+al %+eat$'n


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'- (RNA $n*'l*e# #l$%$n t&at +e('*e# $nt+'n#, t&e #nt&et$% DNA %+eate) -+'( (RNA

al#' %'nta$n# 'nl t&e e6'n #euen%e#. T&$# #nt&et$% DNA %+eate) $n t&e la4'+at'+

-+'( (RNA $# 5n'2n a# %'(le(enta+ DNA /%DNA0.

C&ane# $n t&e enet$% #euen%e a+e %alle) (utat$'n#. Mutat$'n# %an 4e a# #(all a# t&e

alte+at$'n '- a #$nle nu%le't$)ea %&ane a--e%t$n 'nl 'ne lette+ $n t&e enet$% %')e.

Su%& #(all:#%ale %&ane# %an +')u%e an ent$+el )$--e+ent a($n' a%$) '+ %an en)

+'te$n +')u%t$'n alt'et&e+. La+e %&ane#, $n*'l*$n t&e )elet$'n, +ea++ane(ent, '+

)ul$%at$'n '- &un)+e)# '+ e*en ($ll$'n# '- nu:%le't$)e#, %an +e#ult $n t&e el$($nat$'n,

($#la%e(ent, '+ )ul$%at$'n '- ent$+e ene#. S'(e (utat$'n# a+e &a+(le##, 4ut 't&e+#

%an %au#e )$#ea#e '+ $n%+ea#e t&e +$#5 '- )$#ea#e. A# a +e#ult, t&e #tu) '- enet$%# %an

lea) t' *alu:a4le (e)$%al 4+ea5t&+'u.

T&$# %a#e $n*'l*e# atent# -$le) 4 M+$a) a-te+ $t (a)e 'ne #u%& (e)$%al 4+ea5t&+'u&.

M+$a) )$#%'*e+e) t&e +e%$#e l'%at$'n an) #euen%e '- 2&at a+e n'2 5n'2n a# t&e

RCA1 an) RCA ene#. Mutat$'n# $n t&e#e ene# %an )+a(at$%all $n%+ea#e an

$n)$*$)ual# +$#5 '- )e*el'$n 4+ea#t an) '*a+$an %an%e+. T&e a*e+ae A(e+$%an 2'(an

&a# a 1: t' 13:e+%ent +$#5 '- )e*el'$n 4+ea#t %an%e+, 4ut -'+ 2'(en 2$t& %e+ta$n

enet$% (utat$'n#, t&e +$#5 %an +ane 4et2een 7! an)

an) RCA ene#, #%$ent$#t# 5ne2 t&at &e+e)$t lae) a +'le $n e#ta4l$#&$n a 2'(an#

+$#5 '- )e*el'$n 4+ea#t an) '*a+$an %an%e+, 4ut t&e )$) n't 5n'2 2&$%& ene# 2e+e

a##'%$ate) 2$t& t&'#e %an%e+#.

M+$a) $)ent$-$e) t&e e6a%t l'%at$'n '- t&e RCA1 an) RCA ene# 'n %&+'('#'(e# 1;

an) 13. C&+'('#'(e 1; &a# a+'6$(atel

%&+'('#'(e#, t&e RCA1 an) RCA ene# a+e ea%& a4'ut

u#t e6'n# a+e %'unte), t&e RCA1 ene $# 'nl a4'ut 7,7!! nu%le't$)e# l'n -'+ t&e

RCA ene, t&at nu(4e+ $# a4'ut 1!,!!. Ibid. n'2le)e '- t&e l'%at$'n '- t&e

RCA1 an) RCA ene# all'2e) M+$a) t' )ete+($ne t&e$+ t$%al nu%le't$)e

#euen%e. 1 T&at $n-'+(at$'n, $n tu+n, ena4le) M+$a) t' )e*el' (e)$%al te#t# t&at a+e

u#e-ul -'+ )ete%t$n (utat$'n# $n a at$ent# RCA1 an) RCA ene# an) t&e+e4

a##e##$n 2&et&e+ t&e at$ent &a# an $n%+ea#e) +$#5 '- %an%e+.

On%e $t -'un) t&e l'%at$'n an) #euen%e '- t&e RCA1 an) RCA ene#, M+$a) #'u&t

an) '4ta$ne) a nu(4e+ '- atent#. N$ne %'('#$t$'n %la$(# -+'( t&+ee '- t&'#e atent#

a+e at $##ue $n t&$# %a#e. 2 See id., at 13!=, an) n. 1 /n't$n %'('#$t$'n %la$(#0. Cla$(#

https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-1https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-1https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-1https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-2https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-2https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-2https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-1https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-2


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1, , 7, an) -+'( t&e


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ut $#'lat$'n $# ne%e##a+ t' %'n)u%t enet$% te#t$n, an) M+$a) 2a# n't t&e 'nl ent$t

t' '--e+ RCA te#t$n a-te+ $t )$#%'*e+e) t&e ene#. T&e Un$*e+#$t '- Penn#l*an$a#

Genet$% D$an'#t$% La4'+at'+ /GDL0 an) 't&e+# +'*$)e) enet$% te#t$n #e+*$%e# t'

2'(en. Pet$t$'ne+ D+. Ha++ O#t+e+, t&en a +e#ea+%&e+ at Ne2 Y'+5 Un$*e+#$t S%&''l '-

Me)$%$ne, +'ut$nel #ent &$# at$ent# DNA #a(le# t' GDL -'+ te#t$n. A-te+ lea+n$n '-

GDL# te#t$n an) O#t+e+# a%t$*$t$e#, M+$a) #ent lette+# t' t&e( a##e+t$n t&at t&e

enet$% te#t$n $n-+$ne) M+$a)# atent#. A. =>=7 /O#t+e+ lette+0. In +e#'n#e, GDL

a+ee) t' #t' te#t$n an) $n-'+(e) O#t+e+ t&at $t 2'ul) n' l'ne+ a%%et at$ent

#a(le#. M+$a) al#' -$le) atent $n-+$ne(ent #u$t# aa$n#t 't&e+ ent$t$e# t&at

e+-'+(e) RCA te#t$n, +e#ult$n $n #ettle(ent# $n 2&$%& t&e )e-en)ant# a+ee) t'

%ea#e all allee)l $n-+$n$n a%t$*$t. 3;. T&e Fe)e+al C$+%u$t +e*e+#e), Association for Molecular

Pathology *. United States Patent and Trademark Office, 73 F. 3) 13= /!110, an)

t&$# C'u+t +ante)t&e et$t$'n -'+ %e+t$'+a+$, *a%ate) t&e u)(ent, an) +e:(an)e) t&e%a#e $n l$&t '- Mayo !ollaborative Services *. Prometheus "aboratories, Inc., 7 U. S.

/!10.See Association for Molecular Pathology *. Myriad enetics, Inc., 7 U. S.

/!10.

On +e(an), t&e Fe)e+al C$+%u$t a--$+(e) t&e D$#t+$%t C'u+t $n a+t an) +e*e+#e) $n a+t,

2$t& ea%& (e(4e+ '- t&e anel 2+$t$n #ea+atel. All t&+ee u)e# a+ee)t&at 'nl

et$t$'ne+ O#t+e+ &a) #tan)$n. T&e +ea#'ne) t&at M+$a)# a%t$'n# aa$n#t &$( an) &$#

#tate) a4$l$t an) 2$ll$nne## t' 4e$n RCA1 an) RCA te#t$n $- M+:$a)# atent#

2e+e $n*al$)ate) 2e+e #u--$%$ent -'+ A+t$%le III #tan)$n.


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L'u+$e an) M''+e a+ee) t&at M+$a)# %la$(# 2e+e atent el$$4le un)e+ 81!1 4ut

)$#a+ee) 'n t&e +at$'nale. Ju)e L'u+$e +el$e) 'n t&e -a%t t&at t&e ent$+e DNA ('le%ule

$# &el) t'et&e+ 4 %&e($%al 4'n)# an) t&at t&e %'*alent 4'n)# at 4't& en)# '- t&e

#e(ent (u#t 4e #e*e+e) $n '+)e+ t' $#'late #e(ent# '- DNA. T&$# +'%e## te%&n$%all

%+eate# ne2 ('le%ule# 2$t& un$ue %&e($%al %'('#$t$'n#. See id., at 13< /?I#'late)

DNA . . . $# a -+ee:#tan)$n '+t$'n '- a la+e+, natu+al DNA ('le%ule. I#'late) DNA &a#

4een %lea*e) /i.e., &a) %'*alent 4'n)# $n $t# 4a%54'ne %&e($%all #e*e+e)0 '+

#nt&e#$e) t' %'n#$#t '- u#t a -+a%t$'n '- a natu+all '%%u++$n DNA ('le%ule@0. Ju)e

L'u+$e -'un) t&$# %&e($%al alte+at$'n t' 4e )$#'#$t$*e, 4e%au#e $#'lat$n a a+t$%ula+

#t+an) '- DNA %+eate#a n'nnatu+all '%%u++$n ('le%ule, e*en t&'u& t&e%&e($%al

alte+at$'n )'e# n't %&ane t&e $n-'+(at$'n:t+an#($tt$n ual$t '- t&e DNA. See id., at

133! /?T&e %la$(e) $#'late) DNA ('le%ule# a+e )$#t$n%t -+'( t&e$+ natu+al e6$#ten%e a#

'+t$'n# '- la+e+ ent$t$e#, an) t&e$+ $n-'+(at$'nal %'ntent $# $++ele*ant t' t&at -a%t. 9e

+e%'n$e t&at 4$'l'$#t# (a t&$n5 '- ('le%ule# $n te+(# '- t&e$+ u#e#, 4ut ene# a+e $n

-a%t (ate+$al# &a*$n a %&e($%al natu+e@0. A%%'+)$nl, &e +ee%te) et$t$'ne+#a+u(ent t&at $#'late) DNA 2a# $nel$$4le -'+ atent +'te%t$'na# a +')u%t '- natu+e.

Ju)e M''+e %'n%u++e) $n a+t 4ut )$) n't +el e6%lu#$*el 'n Ju)e L'u+$e# %'n%lu#$'n

t&at %&e($%all 4+ea5$n %'*alent 4'n)# 2a# #u--$%$ent t' +en)e+ $#'late) DNA atent

el$$4le. Id., at 131 /?T' t&e e6tent t&e (a'+$t +e#t# $t# %'n%lu#$'n 'n t&e %&e($%al

)$--e+en%e# 4et2een [natu+all '%%u++$n" an) $#'late) DNA /4+ea5$n t&e %'*alent

4'n)#0, I %ann't a+ee t&at t&$# $# #u--$%$ent t' &'l) t&at t&e %la$(# t' &u(an ene# a+e

)$+e%te) t' atenta4le #u4e%t (atte+@0. In#tea), Ju)e M''+e al#' +el$e) 'n t&e Un$te)

State# Patent an) T+a)e(a+5 O--$%e# /PTO0 +a%t$%e '- +ant$n #u%& atent# an) 'n t&e

+el$an%e $nte+e#t# '- atent &'l)e+#. Id., at 133. H'2e*e+, #&e a%5n'2le)e) t&at &e+*'te ($&t &a*e %'(e 'ut )$--e+entl $- #&e ?2e+e )e%$)$n t&$# %a#e 'n a 4lan5

%an*a#.@ Ibid.

F$nall, Ju)e +#'n %'n%u++e) $n a+t an) )$##ente) $n a+t, %'n%lu)$n t&at $#'late)

DNA $# n't atent el$:$4le. A# an $n$t$al (atte+, &e e(&a#$e) t&at t&e 4+ea5$n '-

%&e($%al 4'n)# 2a# n't )$#'#$t$*eB ?[T"&e+e $# n' (a$% t' a %&e($%al 4'n) t&at

+eu$+e# u# t' +e%'n$e a ne2 +'):u%t 2&en a %&e($%al 4'n) $# %+eate) '+

4+'5en.@ Id.,at 1371. In#tea), &e +el$e) 'n t&e -a%t t&at ?[t"&e nu%le't$)e #euen%e# '-

t&e %la$(e) ('le%ule# a+e t&e #a(e a# t&e nu%le't$)e #euen%e# -'un) $n natu+all

'%%u++$n &u(an ene#.@ Id., at 1377. Ju)e +#'n t&en %'n%lu)e) t&at enet$%

?#t+u%tu+al #$($la+$t )2a+-# t&e #$n$-$%an%e '- t&e #t+u%tu+al )$--e+en%e# 4et2een

$#'late) DNA an) natu+all '%%u++$n DNA, e#e%$all 2&e+e t&e #t+u%tu+al )$--e+en%e#

a+e (e+el an%$lla+ t' t&e 4+ea5$n '- %'*alent 4'n)#, a +'%e## t&at $# $t#el- n't

$n*ent$*e.@ Ibid . M'+e:'*e+, Ju)e +#'n a*e n' 2e$&t t' t&e PTO# '#$t$'n 'n

atenta4$l$t 4e%au#e '- t&e Fe)e+al C$+%u$t# '#$t$'n t&at ?t&e PTO la%5# #u4#tant$*e

+ule(a5$n aut&'+$t a# t' $##ue# #u%& a# atenta4$l$t.@ Id., at 137;.


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Alt&'u& t&e u)e# e6+e##e) )$--e+ent *$e2# %'n%e+n$n t&e atenta4$l$t '- $#'late)

DNA, all t&+ee a+ee) t&at atent %la$(# +elat$n t' %DNA (et t&e atent el$$4$l$t

+eu$+e(ent# '- 81!1. Id., at 13, an) n. = /+e%'n$$n t&at #'(e atent %la$(# a+e

l$($te) t' %DNA an) t&at #u%& %la$(# a+e atent el$$4le un)e+ 81!10 id., at 133;

/M''+e, J., %'n%u++$n $n a+t0 id., at 137 /+#'n, J., %'n%u++$n $n a+t an)

)$##ent$n $n a+t0 /?%DNA %ann't 4e $#'late) -+'( natu+e, 4ut $n#tea) (u#t 4e %+eate)

$n t&e la4'+at'+ . . . 4e%au#e t&e $nt+'n# t&at a+e -'un) $n t&e nat$*e ene a+e +e('*e)

-+'( t&e %DNA #e(ent@0. 39e +ante) %e+t$'+a+$. 7< U. S. /!10.

II

A

Se%t$'n 1!1 '- t&e Patent A%t +'*$)e#B

?9&'e*e+ $n*ent# '+ )$#%'*e+# an ne2 an) u#e-ul . . . %'('#$t$'n '- (atte+, '+ an

ne2 an) u#e-ul $(+'*e(ent t&e+e'-, (a '4ta$n a atent t&e+e-'+, #u4e%t t' t&e

%'n)$t$'n# an) +eu$+e(ent# '- t&$# t$tle.@ 37 U. S. C. 81!1.

9e &a*e ?l'n &el) t&at t&$# +'*$#$'n %'nta$n# an $('+tant $(l$%$t e6%et$'n[B" La2#

'- natu+e, natu+al &en'(ena, an) a4#t+a%t $)ea# a+e n't atenta4le.@ Mayo, 7 U. S.,

at /#l$ '., at 10 /$nte+nal u'tat$'n (a+5# an) 4+a%5et# '($tte)0. Rat&e+, ? t&e

a+e t&e 4a#$% t''l# '- #%$ent$-$% an) te%&n'l'$%al 2'+5 @ t&at l$e 4e'n) t&e )'(a$n '-

atent +'te%t$'n. Id., at /#l$ '., at 0. A# t&e C'u+t &a# e6la$ne), 2$t&'ut t&$#

e6%et$'n, t&e+e 2'ul) 4e %'n#$)e+a4le )ane+ t&at t&e +ant '- atent# 2'ul) ?t$e u@

t&e u#e '- #u%& t''l# an) t&e+e4 ?$n&$4$t -utu+e $nn'*at$'n +e($#e) u'n t&e(.@ Id.,

at /#l$ '., at 1;0. T&$# 2'ul) 4e at '))# 2$t& t&e *e+ '$nt'- atent#, 2&$%& e6$#t

t' +'('te %+eat$'n. #iamond *. !hakrabarty , ; U. S. 3!3, 3!= /1=

natu+e a+e n't %+eate), an) ? (an$-e#tat$'n# . . . '- natu+e [a+e" -+ee t' all (en an)

+e#e+*e) e6%lu#$*el t' n'ne @0.

T&e +ule aa$n#t atent# 'n natu+all '%%u++$n t&$n# $# n't 2$t&'ut l$($t#, &'2e*e+, -'+

?all $n*ent$'n# at #'(e le*el e(4'), u#e, +e-le%t, +e#t u'n, '+ al la2# '- natu+e,

natu+al &en'(ena, '+ a4#t+a%t $)ea#,@ an) ?t'' 4+'a) an $nte++etat$'n '- t&$#

e6%lu#$'na+ +$n%$le %'ul) e*$#%e+ate atent la2.@ 7 U. S., at /#l$ '., at 0. A#2e &a*e +e%'n$e) 4e-'+e, atent +'te%t$'n #t+$5e# a )el$%ate 4alan%e 4et2een

%+eat$n ?$n%ent$*e# t&at lea) t' %+eat$'n, $n*ent$'n, an) )$#%'*e+@ an) ?$(e)[$n" t&e

-l'2 '- $n-'+(at$'n t&at ($&t e+($t, $n)ee) #u+, $n:*ent$'n.@ Id., at /#l$ '., at

30. 9e (u#t al t&$# 2ell:e#ta4l$#&e) #tan)a+) t' )ete+($ne 2&et&e+ M+:$a)#

atent# %la$( an ?ne2 an) u#e-ul . . . %'('#$t$'n'- (atte+,@ 81!1, '+ $n#tea) %la$(

natu+all '%%u++$n &en'(ena.

https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-3https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-3http://www.law.cornell.edu/uscode/35/101.htmlhttp://www.law.cornell.edu/uscode/35/101.htmlhttp://www.law.cornell.edu/uscode/35/101.htmlhttp://www.law.cornell.edu/supremecourt/text/447/303http://www.law.cornell.edu/supremecourt/text/447/303https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-3http://www.law.cornell.edu/uscode/35/101.htmlhttp://www.law.cornell.edu/supremecourt/text/447/303


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It $# un)$#ute) t&at M+$a) )$) n't %+eate '+ alte+ an '- t&e enet$% $n-'+(at$'n

en%')e) $n t&e RCA1 an) RCA ene#. T&e l'%at$'n an) '+)e+ '- t&e nu%le't$)e#

e6$#te) $n natu+e 4e-'+e M+$a) -'un) t&e(. N'+ )$) M+:$a) %+eate '+ alte+ t&e enet$%

#t+u%tu+e '- DNA. In:#tea), M+$a)# +$n%$al %'nt+$4ut$'n 2a# un%'*e+$n t&e +e%$#e

l'%at$'n an) enet$% #euen%e '- t&e RCA1an) RCA ene# 2$t&$n %&+'('#'(e# 1;

an) 13. T&e ue#t$'n $# 2&et&e+ t&$# +en)e+# t&e ene# atenta4le.

M+$a) +e%'n$e# t&at 'u+ )e%$#$'n $n !hakrabarty $# %ent+al t' t&$# $nu$+. +$e- -'+

Re#'n)ent# 1, 3>;. In !hakrabarty , #%$ent$#t# a))e) -'u+ la#($)# t' a 4a%te+$u(,

2&$%& ena4le) $t t' 4+ea5 )'2n *a+$'u# %'('nent# '- %+u)e '$l. ; U. S., at 3!7, an)

n. 1. T&e C'u+t &el) t&at t&e (')$-$e) 4a%te+$u( 2a# atenta4le. It e6la$ne) t&at t&e

atent %la$( 2a# ?n't t' a &$t&e+t' un5n'2n natu+al &en'(en'n, 4ut t' a n'nnatu+all

'%%u++$n (anu-a%tu+e '+ %'('#$t$'n '- (atte+a +')u%t '- &u(an $nenu$t &a*$n

a )$#t$n%t$*e na(e, %&a+a%te+ [an)" u#e. @ Id., at 3!=>31!

/u't$n $artranft *. %iegmann, 11 U. S. !=, 17 /113!. U'n

lea+n$n t&at #e*e+al n$t+'en:-$6$n 4a%te+$a )$) n't $n&$4$t ea%& 't&e+, &'2e*e+, t&e

atent al$%ant %'(4$ne) t&e( $nt' a #$nle $n'%ulant an) '4ta$ne) a atent. Id., at

13!. T&e C'u+t &el) t&at t&e %'('#$t$'n 2a# n't atent el$$4le 4e%au#e t&e atent

&'l)e+ )$) n't alte+ t&e 4a%te+$a $n an 2a. Id., at 13 /?T&e+e $# n' 2a $n 2&$%& 2e%'ul) %all [t&e 4a%te+$a ($6tu+e a +')u%t '- $n*ent$'n" unle## 2e 4'++'2e) $n*ent$'n

-+'( t&e )$#%'*e+ '- t&e natu+al +$n%$le $t#el-@0. H$# atent %la$( t&u# -ell #ua+el

2$t&$n t&e la2 '- natu+e e6%et$'n. S' )' M+$a)#. M+$a) -'un) t&e l'%at$'n '- t&e

RCA1 an) RCA ene#, 4ut t&at )$#%'*e+, 4 $t#el-, )'e# n't +en)e+ t&e RCA ene#

?ne2 . . . %'('#$t$'n[#" '- (atte+,@ 81!1, t&at a+e atent el$$4le.

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In)ee), M+$a)# atent )e#%+$t$'n# &$&l$&t t&e +'4le( 2$t& $t# %la$(#. F'+ e6a(le,

a #e%t$'n '- t&e 3=, =>7!. 9e )$#a+ee. *. +. M. &el) t&at

ne2 lant 4+ee)# 2e+e el$$4le -'+ ut$l$t atent# un)e+ 81!1 n't2$ttan)$n #ea+ate

#tatute# +'*$)$n #e%$al +'te%t$'n# -'+ lant#, #ee ; U. S. C. 831 et se). /Plant

a+$et P+'te%t$'n A%t0 37 U. S. C. 8811>1 /Plant Patent A%t '- 1=3!0. A-te+

anal$n t&e te6t an) #t+u%tu+e '- t&e +ele*ant #tatute#, t&e C'u+t (ent$'ne) t&at t&e

'a+) '- Patent Aeal# an) Inte+-e+en%e# &a) )ete+($ne) t&at ne2 lant 4+ee)# 2e+e

atent el$$4le un)e+ 81!1 an) t&at C'n+e## &a) +e%'n$e) an) en)'+#e) t&at

'#$t$'n $n a #u4#euent Patent A%t a(en)(ent. 73 U. S., at 1>17 /%$t$n In re

$ibberd , ; USPK 3 /1=


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#enten%e $n t&e C'n#'l$)ate) A+'+$at$'n# A%t '- !!, #ee +$e- -'+ Re#'n)ent# 31,

n. 33, an) t&at t&e PTO# +a%t$%e 2a# n't ?a #u--$%$ent +ea#'n

t' &'l) t&at $#'late) DNA $# atent:el$$4le.@ Id., at . See al#' id., at =. T&e#e

%'n%e##$'n# 2e$& aa$n#t )e-e++$n t' t&e PTO# )ete+($nat$'n. 7

C

%DNA )'e# n't +e#ent t&e #a(e '4#ta%le# t' atenta4$l$t a# natu+all '%%u++$n,

$#'late) DNA #e(ent#. A# al+ea) e6la$ne), %+eat$'n '- a %DNA #euen%e -+'( (RNA

+e#ult# $n an e6'n#:'nl ('le%ule t&at $# n't natu+all '%%u++$n. 8Pet$t$'ne+# %'n%e)e

t&at %DNA )$--e+# -+'( natu+al DNA $n t&at ?t&e n'n:%')$n +e$'n# &a*e 4een

+e('*e).@ +$e- -'+ Pet$t$'ne+# =. T&e ne*e+t&ele## a+ue t&at %DNA $# n't atent

el$$4le 4e%au#e ?[t"&e nu%le't$)e #euen%e '- %DNA $# )$%tate) 4 natu+e, n't 4 t&e

la4 te%&n$%$an.@ Id., at 71. T&at (a 4e #', 4ut t&e la4 te%&n$%$an unue#t$'na4l

%+eate# #'(et&$n ne2 2&en %DNA $# (a)e. %DNA +eta$n# t&e natu+all '%%u++$n e6'n#

'- DNA, 4ut $t $# )$#t$n%t -+'( t&e DNA -+'( 2&$%& $t 2a# )e+$*e). A# a +e#ult, %DNA $#

n't a ?+')u%t '- natu+e@ an) $# atent el$$4le un)e+ 81!1, e6%et $n#'-a+ a# *e+ #&'+t

#e+$e# '- DNA (a &a*e n' $nte+*en$n $nt+'n# t' +e('*e 2&en %+eat$n %DNA. In t&at#$tuat$'n, a #&'+t #t+an) '- %DNA (a 4e $n)$#t$nu$#&a4le -+'( natu+al DNA. 9

III

It $# $('+tant t' n'te 2&at $# not $(l$%ate) 4 t&$# )e%$#$'n. F$+#t, t&e+e a+e n'

(et&') %la$(# 4e-'+e t&$# C'u+t. Ha) M+$a) %+eate) an $nn'*at$*e (et&') '-

(an$ulat$n ene# 2&$le #ea+%&$n -'+ t&e RCA1 an) RCA ene#, $t %'ul) '##$4l

&a*e #'u&t a (et&') at:ent. ut t&e +'%e##e# u#e) 4 M+$a) t' $#'late DNA 2e+e

2ell un)e+#t'') 4 enet$%$#t# at t&e t$(e '- M+$a)# atent# ?2e+e 2ell un)e+#t''),

2$)el u#e), an) -a$+l un$-'+( $n#'-a+ a# an #%$ent$#t enae) $n t&e #ea+%& -'+ a ene2'ul) l$5el &a*e ut$l$e) a #$($la+ a+'a%&,@ ;! F. Su. ), at !>!3, an) a+e n't

at $##ue $n t&$# %a#e.

S$($la+l, t&$# %a#e )'e# n't $n*'l*e atent# 'n ne2 alications '- 5n'2le)e a4'ut

t&e RCA1 an) RCA ene#. Ju)e +#'n atl n'te) t&at, ?[a"# t&e -$+#t a+t 2$t&

5n'2le)e '- t&e [RCA1 an) RCA" #euen%e#, M+$a) 2a# $n an e6%ellent '#$t$'n t'

https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-7https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-7https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-8https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-8https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-9https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-9https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-7https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-8https://www.law.cornell.edu/supremecourt/text/12-398#OPINION_3-9


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%la$( al$%at$'n# '- t&at 5n'2le)e. Man '- $t# un%&allene) %la$(# a+e l$($te) t'

#u%& al$%at$'n#.@


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%an%e+ an) '*a+$an %an%e+. F$nall, $t $# a )$#%'*e+ '- t&e +e#ent $n*ent$'n t&at #'(at$%

(utat$'n# $n t&e RCA1 l'%u# a+e al#' a##'%$ate) 2$t& 4+ea#t %an%e+, '*a+$an %an%e+ an) 't&e+

%an%e+#, 2&$%& +e+e#ent# an $n)$%at'+ '- t&e#e %an%e+# '+ '- t&e +'n'#$# '- t&e#e %an%e+#. T&e

(utat$'nal e*ent# '- t&e RCA1 l'%u# %an $n*'l*e )elet$'n#, $n#e+t$'n# an) '$nt (utat$'n#.@

A. ;=. N't2$ttan)$n M+$a)# +eeate) u#e '- t&e &+a#e ?+e#ent $n*ent$'n,@ $t $# %lea+

-+'( t&e te6t '- t&e atent t&at t&e *a+$'u# )$#%'*e+$e# are t&e ?$n*ent$'n.@

7 ?Sta+t$n -+'( a +e$'n 'n t&e l'n a+( '- &u(an %&+'('#'(e 1; '- t&e &u(an en'(e, 1;,

2&$%& &a# a #$e e#t$(ate) at a4'ut < ($ll$'n 4a#e a$+#, a +e$'n 2&$%& %'nta$n# a enet$% l'%u#,

RCA1, 2&$%& %au#e# #u#%et$4$l$t t' %an%e+, $n%lu)$n 4+ea#t an) '*a+$an %an%e+, &a# 4een

$)ent$-$e).@ Ibid.

M+$a) -$+#t $)ent$-$e) +'u# '- +elat$*e# 2$t& a &$#t'+ '- 4+ea#t %an%e+ /#'(e '- 2&'( al#'

&a) )e*el'e) '*a+$an %an%e+0 4e%au#e t&e#e $n)$*$)ual# 2e+e +elate), #%$ent$#t# 5ne2 t&at $t

2a# ('+e l$5el t&at t&e$+ )$#ea#e# 2e+e t&e +e#ult '- enet$% +e)$#'#$t$'n +at&e+ t&an 't&e+

-a%t'+#. M+$a) %'(a+e) #e%t$'n# '- t&e$+ %&+'('#'(e#, l''5$n -'+ #&a+e) enet$%

a4n'+(al$t$e# n't -'un) $n t&e ene+al 'ulat$'n. It 2a# t&at +'%e## 2&$%& e*entuall ena4le)

M+$a) t' )ete+($ne 2&e+e $n t&e enet$% #euen%e t&e RCA1 an) RCA ene# +e#$)e.

See,e.g., id ., at ;=, ;3>;;7.

; M+$a) al#' a+ue# t&at 2e #&'ul) u&'l) $t# atent# #' a# n't t' )$#tu+4 t&e +el$an%e $nte+e#t#

'- atent &'l)e+# l$5e $t#el-. +$e- -'+ Re#'n)ent# 33=. C'n%e+n# a4'ut +el$an%e $nte+e#t#

a+$#$n -+'( PTO )ete+($nat$'n#, $n#'-a+ a# t&e a+e +ele*ant, a+e 4ette+ )$+e%te) t' C'n+e##.

See Mayo !ollaborative Services *. Prometheus "aboratories, Inc., 7 U. S. , /!10

/#l$ '., at >0.


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TOP

Concurrence

SUPREME COURT OF THE UNITED STATES

N'. 1>3=<

ASSOCIATION FOR MOLECULAR PATHOLOGY,et al., PETITIONERS v. MYRIADGENETICS,

INC., et al.

on writ of certiorari to the united states court of appeals for the

federal circuit

[June 13, !13"

Ju#t$%e S%al$a, %'n%u++$n $n a+t an) %'n%u++$n $n t&e u)(ent.

I '$n t&e u)(ent '- t&e C'u+t, an) all '- $t# '$n$'n e6%et Pa+t I>A an) #'(e

'+t$'n# '- t&e +e#t '- t&e '$n$'n '$n $nt' -$ne )eta$l# '- ('le%ula+ 4$'l'. I a( un:

a4le t' a--$+( t&'#e )eta$l# 'n ( '2n 5n'2le)e '+ e*en ( '2n 4el$e-. It #u--$%e# -'+

(e t' a--$+(, &a*$n #tu)$e) t&e '$n$'n# 4el'2 an) t&e e6e+t 4+$e-# +e#ente) &e+e,

t&at t&e '+t$'n '- DNA $#'late) -+'( $t# natu+al #tate #'u&t t' 4e atente) $# $)ent$%al

t' t&at '+t$'n '- t&e DNA $n $t# natu+al #tate an) t&at %'(le(enta+ DNA /%DNA0 $# a

#nt&et$% %+eat$'n n't n'+(all +e#ent $n natu+e.

d. Alice Corp. Pty. Ltd. v. CLS Bank International, 134 S. Ct. 2347 (2014)

SU,@F@ C-UT -B TG@ U>4T@L ST'T@S

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>o. 138:

'D4C@ C-,-'T4-> ,TQ. DTL$ ,@T4T4->@ v. CDS '>E 4>T@>'T4->'D

et al.

on writ of certiorari to the united states court of appeals for the federal

circuit

6Aune 1:$ 801/7

Austice Thomas delivered the opinion of the Court.

The patents at issue in this case disclose a computer#implementedscheme for mitiatin settlement ris&V 2i.e.$ the ris& that only one party to a

!nancial transaction will pay what it owes %y usin a third#party

intermediary. The ?uestion presented is whether these claims are patent

elii%le under 35 U. S. C. §101$ or are instead drawn to a patent#inelii%le

a%stract idea. e hold that the claims at issue are drawn to the a%stract idea

of intermediated settlement$ and that merely re?uirin eneric computer

implementation fails to transform that a%stract idea into a patent#elii%le

invention. e therefore a+rm the *udment of the United States Court of

'ppeals for the Bederal Circuit.

4

'

,etitioner 'lice Corporation is the assinee of several patents that

disclose schemes to manae certain forms of !nancial ris&. 6 17 'ccordin to

the speci!cation larely shared %y the patents$ the invention ena%l6es7 the

manaement of ris& relatin to speci!ed$ yet un&nown$ future events.V 'pp.8/. The speci!cation further e(plains that the invention relates to methods

and apparatus$ includin electrical computers and data processin systems

applied to !nancial matters and ris& manaement.V 4d.$ at 8/3.

The claims at issue relate to a computeri=ed scheme for mitiatin

settlement ris&VWi.e.$ the ris& that only one party to an areed#upon

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!nancial e(chane will satisfy its o%liation. 4n particular$ the claims are

desined to facilitate the e(chane of !nancial o%liations %etween two

parties %y usin a computer system as a third#party intermediary. 4d.$ at 33

3/. 6 87 The intermediary creates shadowV credit and de%it records 2i.e.$

account leders that mirror the %alances in the partiesX real#world accountsat e(chane institutionsV 2e..$ %an&s. The intermediary updates the

shadow records in real time as transactions are entered$ allowin only those

transactions for which the partiesX updated shadow records indicate

su+cient resources to satisfy their mutual o%liations.V 1 B. 3d 189:$ 185

2C' Bed. 8013 2Dourie$ A.$ concurrin. 't the end of the day$ the

intermediary instructs the relevant !nancial institutions to carry out the

permittedV transactions in accordance with the updated shadow records$

i%id.$ thus mitiatin the ris& that only one party will perform the areed#upon e(chane.

4n sum$ the patents in suit claim 21 the foreoin method for e(chanin

o%liations 2the method claims$ 28 a computer system con!ured to carry

out the method for e(chanin o%liations 2the system claims$ and 23 a

computer#reada%le medium containin proram code for performin the

method of e(chanin o%liations 2the media claims. 'll of the claims are

implemented usin a computerJ the system and media claims e(pressly

recite a computer$ and the parties have stipulated that the method claimsre?uire a computer as well.

espondents CDS an& 4nternational and CDS Services Dtd. 2toether$ CDS

an& operate a lo%al networ& that facilitates currency transactions. 4n

800$ CDS an& !led suit aainst petitioner$ see&in a declaratory *udment

that the claims at issue are invalid$ unenforcea%le$ or not infrined. ,etitioner

counterclaimed$ allein infrinement. Bollowin this CourtXs decision inils&i v. Eappos$ 591 U. S. 5:3 28010 $ the parties !led cross#motions for

summary *udment on whether the asserted claims are elii%le for patent

protection under 35 U. S. C. §101. The Listrict Court held that all of the

claims are patent inelii%le %ecause they are directed to the a%stract idea of

employin a neutral intermediary to facilitate simultaneous e(chane of

o%liations in order to minimi=e ris&.V 9 B. Supp. 8d 881$ 858 2LC 8011.



36/106

' divided panel of the United States Court of 'ppeals for the Bederal

Circuit reversed$ holdin that it was not manifestly evidentV that petitionerXs

claims are directed to an a%stract idea. 95 B. 3d 13/1$ 1358$ 1359 28018.

The Bederal Circuit ranted rehearin en %anc$ vacated the panel opinion$

and a+rmed the *udment of the Listrict Court in a one#pararaph percuriam opinion. 1 B. 3d$ at 183. Seven of the ten participatin *udes

areed that petitionerXs method and media claims are patent inelii%le. See

id.$ at 18/ 2Dourie$ A.$ concurrinJ id.$ at 13181313 2ader$ C. A.$ concurrin

in part and dissentin in part. ith respect to petitionerXs system claims$ the

en %anc Bederal Circuit a+rmed the Listrict CourtXs *udment %y an e?ually

divided vote. 4d.$ at 183.

ritin for a !ve#mem%er plurality$ Aude Dourie concluded that all of the

claims at issue are patent inelii%le. 4n the pluralityXs view$ under this CourtXs

decision in Fayo Colla%orative Services v. ,rometheus Da%oratories$ 4nc.$ 599

U. S. 28018$ a court must !rst identif6y7 the a%stract idea represented in

the claim$V and then determine whether the %alance of the claim adds

Ysini!cantly more.X V 1 B. 3d$ at 189. The plurality concluded that

petitionerXs claims draw on the a%stract idea of reducin settlement ris& %y

e;ectin trades throuh a third#party intermediary$V and that the use of a

computer to maintain$ ad*ust$ and reconcile shadow accounts added nothin

of su%stance to that a%stract idea. 4%id.

Chief Aude ader concurred in part and dissented in part. 4n a part of the

opinion *oined only %y Aude Foore$ Chief Aude ader areed with the

plurality that petitionerXs method and media claims are drawn to an a%stract

idea. 4d.$ at 13181313. 4n a part of the opinion *oined %y Audes Dinn$ Foore$

and -XFalley$ Chief Aude ader would have held that the system claims are

patent elii%le %ecause they involve computer hardwareV that is

speci!cally prorammed to solve a comple( pro%lem.V 4d.$ at 130. Aude

Foore wrote a separate opinion dissentin in part$ aruin that the systemclaims are patent elii%le. 4d.$ at 1313131/. Aude >ewman !led an opinion

concurrin in part and dissentin in part$ aruin that all of petitionerXs

claims are patent elii%le. 4d.$ at 138. Audes Dinn and -XFalley !led a

separate dissentin opinion reachin that same conclusion. 4%id.

e ranted certiorari$ 51 U. S. 28013$ and now a+rm.


37/106

44

Section 101 of the ,atent 'ct de!nes the su%*ect matter elii%le for

patent protection. 4t providesI

hoever invents or discovers any new and useful process$ machine$

manufacture$ or composition of matter$ or any new and useful improvement

thereof$ may o%tain a patent therefor$ su%*ect to the conditions and

re?uirements of this title.V 35 U. S. C. §101.

e have lon held that this provision contains an important implicit

e(ceptionI Daws of nature$ natural phenomena$ and a%stract ideas are not

patenta%le.V 'ssociation for Folecular ,atholoy v. Fyriad enetics$ 4nc.$ 59:

U. S. $ 28013 2slip op.$ at 11 2internal ?uotation mar&s and %rac&etsomitted. e have interpreted §101 and its predecessors in liht of this

e(ception for more than 150 years. ils&i$ supra$ at 901908J see also

-Xeilly v. Forse$ 15 Gow. 98$ 118180 215/J De oy v. Tatham$ 1/ Gow.

159$ 1/15 2153.

e have descri%ed the concern that drives this e(clusionary principle as

one of pre#emption. See$ e..$ ils&i$ supra$ at 911918 2upholdin the patent

would pre#empt use of this approach in all !elds$ and would e;ectively rant

a monopoly over an a%stract ideaV. Daws of nature$ natural phenomena$ anda%stract ideas are Y the %asic tools of scienti!c and technoloical wor&.V X V

Fyriad$ supra$ at 2slip op.$ at 11. 6F7onopoli=ation of those tools

throuh the rant of a patent miht tend to impede innovation more than it

would tend to promote it$V there%y thwartin the primary o%*ect of the

patent laws. Fayo$ supra$ at 2slip op.$ at 8J see U. S. Const.$ 'rt. 4$ §$ cl.

2Conress shall have ,ower . . . To promote the ,roress of Science and

useful 'rtsV. e have repeatedly emphasi=ed this . . . concern that patent

law not inhi%it further discovery %y improperly tyin up the future use ofV

these %uildin %loc&s of human inenuity. Fayo$ supra$ at 2slip op.$ at 19

2citin Forse$ supra$ at 113.

't the same time$ we tread carefully in construin this e(clusionary

principle lest it swallow all of patent law. Fayo$ 599 U. S.$ at 2slip op.$ at

8. 't some level$ all inventions . . . em%ody$ use$ reKect$ rest upon$ or apply


38/106

laws of nature$ natural phenomena$ or a%stract ideas.V 4d.$ at 2slip op.$ at

8. Thus$ an invention is not rendered inelii%le for patent simply %ecause it

involves an a%stract concept. See Liamond v. Liehr$ /50 U. S. 15$ 1

21:1 . 6'7pplication6s7V of such concepts Yto a new and useful end$X V we

have said$ remain elii%le for patent protection. ottschal& v. enson$ /0:U. S. 93$ 9 21:8 .

'ccordinly$ in applyin the §101 e(ception$ we must distinuish %etween

patents that claim the Y%uildin67 %loc&6s7X V of human inenuity and those

that interate the %uildin %loc&s into somethin more$ Fayo$ 599 U. S.$ at

2slip op.$ at 80$ there%y transform6in7V them into a patent#elii%le

invention$ id.$ at 2slip op.$ at 3. The former would ris& disproportionately

tyin up the use of the underlyinV ideas$ id.$ at 2slip op.$ at /$ and are

therefore inelii%le for patent protection. The latter pose no compara%le ris&

of pre#emption$ and therefore remain elii%le for the monopoly ranted

under our patent laws.

444

4n Fayo Colla%orative Services v. ,rometheus Da%oratories$ 4nc.$ 599 U. S.

28018$ we set forth a framewor& for distinuishin patents that claim

laws of nature$ natural phenomena$ and a%stract ideas from those that claim

patent#elii%le applications of those concepts. Birst$ we determine whetherthe claims at issue are directed to one of those patent#inelii%le concepts.

4d.$ at 2slip op.$ at . 4f so$ we then as&$ 6w7hat else is there in the claims

%efore usZV 4d.$ at 2slip op.$ at :. To answer that ?uestion$ we consider

the elements of each claim %oth individually and as an ordered

com%inationV to determine whether the additional elements transform the

nature of the claimV into a patent#elii%le application. 4d.$ at 2slip op.$ at

10$ :. e have descri%ed step two of this analysis as a search for an

Yinventive conceptX VWi.e.$ an element or com%ination of elements that issu+cient to ensure that the patent in practice amounts to sini!cantly more

than a patent upon the 6inelii%le concept7 itself.V 4d.$ at 2slip op.$ at 3.

6 37

'



39/106

e must !rst determine whether the claims at issue are directed to a

patent#inelii%le concept. e conclude that they areI These claims are drawn

to the a%stract idea of intermediated settlement.

The a%stract ideasV cateory em%odies the lonstandin rule that Y6a7nidea of itself is not patenta%le.X V enson$ supra$ at 9 2?uotin u%%er#Tip

,encil Co. v. Goward$ 80 all. /:$ 50 21/J see also De oy$ supra$ at

15 2' principle$ in the a%stract$ is a fundamental truthJ an oriinal causeJ a

motiveJ these cannot %e patented$ as no one can claim in either of them an

e(clusive rihtV. 4n enson$ for e(ample$ this Court re*ected as inelii%le

patent claims involvin an alorithm for convertin %inary#coded decimal

numerals into pure %inary form$ holdin that the claimed patent was in

practical e;ect . . . a pat# ent on the alorithm itself.V /0: U. S.$ at 18.

'nd in ,ar&er v. Bloo&$ /3 U. S. 5/ 5:5 21:$ we held that a

mathematical formula for computin alarm limitsV in a catalytic conversion

process was also a patent#inelii%le a%stract idea.

e most recently addressed the cateory of a%stract ideas in ils&i v.

Eappos$ 591 U. S. 5:3 28010 . The claims at issue in ils&i descri%ed a

method for hedin aainst the !nancial ris& of price Kuctuations. Claim 1

recited a series of steps for hedin ris&$ includinI 21 initiatin a series of

!nancial transactions %etween providers and consumers of a commodityJ 28

identifyin mar&et participants that have a counterris& for the same

commodityJ and 23 initiatin a series of transactions %etween those mar&et

participants and the commodity provider to %alance the ris& position of the

!rst series of consumer transactions. 4d.$ at 5::. Claim / pu6t7 the concept

articulated in claim 1 into a simple mathematical formula.V 4%id. The

remainin claims were drawn to e(amples of hedin in commodities and

enery mar&ets.

6'7ll mem%ers of the Court aree6d7V that the patent at issue in ils&iclaimed an a%stract idea.V 4d.$ at 90:J see also id.$ at 91: 2Stevens$ A.$

concurrin in *udment. Speci!cally$ the claims descri%ed the %asic

concept of hedin$ or protectin aainst ris&.V 4d.$ at 911. The Court

e(plained that Y6h7edin is a fundamental economic practice lon

prevalent in our system of commerce and tauht in any introductory !nance

class.X V 4%id. The concept of hedinV as recited %y the claims in suit was


40/106

therefore a patent#inelii%le a%stract idea$ *ust li&e the alorithms at issue

in enson and Bloo&.V 4%id.

4t follows from our prior cases$ and ils&i in particular$ that the claims at

issue here are directed to an a%stract idea. ,etitionerXs claims involve amethod of e(chanin !nancial o%liations %etween two parties usin a

third#party intermediary to mitiate settlement ris&. The intermediary

creates and updates shadowV records to reKect the value of each partyXs

actual accounts held at e(chane institutions$V there%y permittin only

those transactions for which the parties have su+cient resources. 't the end

of each day$ the intermediary issues irrevoca%le instructions to the e(chane

institutions to carry out the permitted transactions.

-n their face$ the claims %efore us are drawn to the concept ofintermediated settlement$ i.e.$ the use of a third party to mitiate settlement

ris&. Di&e the ris& hedin in ils&i$ the concept of intermediated settlement

is Ya fundamental economic practice lon prevalent in our system of

commerce.X V 4%id.J see$ e..$ @mery$ Speculation on the Stoc& and ,roduce

@(chanes of the United States$ in Studies in Gistory$ @conomics and ,u%lic

Daw 83$ 3/9359 21:9 2discussin the use of a clearin#houseV as an

intermediary to reduce settlement ris&. The use of a third#party intermediary

2or clearin houseV is also a %uildin %loc& of the modern economy. See$

e..$ Qadav$ The ,ro%lematic Case of Clearinhouses in Comple( Far&ets$ 101

eo. D. A. 3$ /09/18 28013J A. Gull$ is& Fanaement and Binancial

4nstitutions 10310/ 23d ed. 8018. Thus$ intermediated settlement$ li&e

hedin$ is an a%stract ideaV %eyond the scope of §101.

,etitioner ac&nowledes that its claims descri%e intermediated

settlement$ see rief for ,etitioner /$ %ut re*ects the conclusion that its

claims recite an a%stract idea.V Lrawin on the presence of mathematical

formulas in some of our a%stract#ideas precedents$ petitioner contends thatthe a%stract#ideas cateory is con!ned to pree(is

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