In addition to the PCAOB, Sarbanes-Oxley decision on Monday, the U.S. Supreme Court, in Bilski v. Kappos, ruled unanimously (9-0) that a particular mathematical hedge fund model was too abstract be patented, but in a split 5-4 decision overturned a lower court decision that basically outlawed all business method patents. The court upheld business patents under certain circumstances.
The court’s decision does not prohibit the patenting of business methods, which means that tax strategies will still be patented and that more work needs to be done on legislation that would prohibit such patents.
According to AICPA president and CEO, Barry Melancon on Monday, this ruling does not go far enough to ban tax strategy patents.
“Today’s Supreme Court decision in Bilski v. Kappos, while striking down a particular business method patent, does not stop the U.S. Patent and Trademark Office from continuing to issue tax strategy patents and the AICPA renews its call on Congress to act quickly to pass legislation to ban tax strategy patents,” he said.
Read here for more details on this ruling.