Dec 15, 2014
Jack Henry & Associates, Inc., a nationwide provider of software solutions for financial institutions, was awarded summary judgment of invalidity and non-infringement today by the U.S. District Court for the District of Delaware, the Honorable Sue L. Robinson.

Judge Robinson found that all the asserted claims in a patent owned by plaintiff Joao Bock Transaction Systems, LLC, U.S. Patent No. 7,096,033, claimed “unpatentable subject matter” and were therefore invalid under 35 U.S.C. Section 101. Joao Bock had claimed that seven of Jack Henry’s banking software products infringed twelve claims in the ‘003 patent, but the Court found that the claims involved nothing more than using “generic computer components” and the Internet to implement abstract ideas in the form of “conventional business practice[s] utilized by bankers or financial institutions in their dealings with individual account holders without the use of computers.”

“We are very gratified to have been able to deliver this win for our client Jack Henry,” said Polsinelli Litigation Department Chair Russell Jones, who is also an intellectual property litigation attorney. “Non-practicing entities like JBTS are currently bringing the majority of patent claims in the country, which is a drastic change. It used to be one company suing another over an essential product but now these types of plaintiffs are using their patents to leverage against businesses that actually produce products.”

Under the Supreme Court’s decision in Alice Corp. Pty. Ltd v. CLS Bank Int’l, 134 S.Ct 2347 (2014) and related cases, the asserted claims involved abstract ideas which were unpatentable subject matter and, therefore, invalid.

Jack Henry was represented by Russell Jones, Jay Heidrick, and Joshua McCaig of the firm’s Intellectual Property Litigation practice. The group, which includes more than 80 professionals, takes a creative, strategic, and cost-effective approach to resolving intellectual property disputes for local, regional, national and global companies and individuals.