Customer Value not Just Limited to the 20 Year Patent Term
Maritz is in the business of designing employee incentive plans and other reward programs. The company’s U.S. Patent No. 7,134,087 claims a computer system for using “award points” to purchase goods at a regular store by using a “shadow credit card.” cxLoyalty is a competitor — focusing primarily on customer loyalty. Their creepy motto: “we increase customer lifetime value.” At least they’re not focused on true zombies.
Maritz sued cxLoyalty for infringement back in 2018. In response, the defendant filed a petition for covered-business-method review (CBM) and argued that the claims lack patent eligibility. The PTAB offered a split result:
- Claims 1-15 ineligible;
- Substitute claims 16-23 eligible.
On appeal, the Federal Circuit has reversed — finding that none of the claims recite patent eligible subject matter under 35 U.S.C. 101 and Alice.