November 14, 2014 | businessweek.com News VIDEO-STREAMING PATENT FALLS IN WIN FOR GOOGLE, BANKS he idea of letting Internet users watch Google Inc. and The Clearing House, “Ultramercial is disappointed that the Tfree videos if they first view an ad- an association of the largest commer- Federal Circuit has found its ground- vertisement isn’t an invention that should cial banks, were among those backing breaking invention on a novel way of be patented, an appeals court said in the WildTangent’s challenge in filings with the monetizing copyrighted content while latest ruling limiting legal protections for Federal Circuit. reducing Internet piracy to be not patent- software. able, particularly after the Federal Circuit Ultramercial LLC’s patent simply cov- ‘ABSTRACT IDEA’ twice found, in unanimous written opin- ers “the abstract concept of offering ions, that Ultramercial’s invention does media content in exchange for viewing Patents should be issued only for specific claim patent-eligible subject matter,” an advertisement,” the U.S. Court of Ap- ways to do something, rather than the Hadley said in statement. peals for the Federal Circuit said in an general idea, Google said in an Aug. 29 Ultramercial had also sued Yahoo Inc. opinion posted on its website today. The filing with the court. and Hulu LLC, which airs TV shows and is ruling invalidating the patent is a victory The Ultramercial patent “simply uses owned by Walt Disney Co., 21st Century for closely held WildTangent Inc., which a general purpose computer as a tool Fox Inc. and Comcast Corp.’s NBCUniver- lets consumers play online games after to carry out its business method — the sal. Both companies have since settled, watching an ad. abstract idea of packaging paid adver- although Hulu remains on the case title. The case, first filed in 2009, has tisements into free entertainment,” The The case is Ultramercial Inc. v. Hulu bounced around courts — and twice was Clearing House said in a Sept. 3 filing. LLC, 2010-1544, U.S. Court of Appeals sent back from the U.S. Supreme Court “That concept was ingrained in the en- for the Federal Circuit (Washington). The — amid a broader debate over what types tertainment and broadcast industry long lower court case is Ultramercial LLC v. of business methods and software are before Ultramercial’s claimed invention.” Hulu LLC, 09cv6918, U.S. District Court eligible for patent protection. More than Rancho Palos Verdes, California-based for the Central District of California (Los a dozen patents have been invalidated Ultramercial provides software to web- Angeles) since the high court in June said adding sites to handle advertising. WildTangent (An earlier version of this article the phrase “on a computer” isn’t enough had been a customer in 2006 before it was corrected to note that Hulu had to turn a concept into an invention. decided to “pursue alternative advertis- settled its case yet was still on the court “We’re thrilled with the decision,” said ing services,” according to Ultramercial’s documents.) Gregory Garre of Latham & Watkins in original complaint. Washington, who represented Redmond, By Susan Decker Washington-based WildTangent. PATENT UPHELD To contact the reporter on this story: Ultramercial, which sells its program Susan Decker in Washington at to both advertisers and websites, is now Ultramercial’s patent was twice upheld [email protected] reviewing today’s decision and evaluat- by the Federal Circuit, the nation’s top ing its next step, according to Lawrence patent court. It was ordered to reconsider Hadley of McKool Smith in Los Angeles, the patent again by the Supreme Court who represented Ultramercial. following the June software decision. Posted from Bloomberg Businessweek.com, November 14, 2014, copyright by Bloomberg L.P. with all rights reserved. This reprint implies no endorsement, either tacit or expressed, of any company, product, service or investment opportunity. #C32801 Managed by The YGS Group, 800.290.5460. For more information visit www.theYGSgroup.com/content..