Federal Appeals Court Ruling Highlights Hurdles for Securing AI Patents

In a landmark ruling that could shape the future of artificial intelligence (AI) innovation, the US Court of Appeals for the Federal Circuit has reaffirmed the difficulty of securing patent protection for machine learning-based technologies. The decision, , sided with Fox Corp in its legal battle against AI company Recentive Analytics over alleged patent infringement.

Applying the two-step Alice test, the federal appeals court found that four patents owned by Recentive Analytics were ineligible under Section 101 of the US Patent Act. The patents, which involved using machine learning to schedule TV broadcasts and live events, were deemed to be directed toward an abstract idea without an inventive concept to warrant patent eligibility.

 

Case Background and Court Reasoning

The dispute began in November 2022 when Recentive sued Fox Corp, arguing that their technology dynamically customized schedules with real-time data. However, the court noted that Recentive’s patents failed to claim any specific improvement to machine learning algorithms themselves.

Instead, the federal appeals court ruled that merely applying generic AI techniques in a new environment, without demonstrating a technological advancement, does not meet the threshold for patent protection. The patents, therefore, could not be saved by recasting standard machine learning processes into specific application areas.

Importantly, the court acknowledged the significance of AI, stating that machine learning is a “burgeoning and increasingly important field” and future innovations that genuinely improve machine learning models may still qualify for AI patents.

 

Expert Commentary: Draft Carefully or Risk Rejection

Legal experts emphasized that the Recentive decision underlines the importance of crafting detailed patent claims that highlight true technological advancements.

They warned that “patent applicants should focus on demonstrating how their inventions improve machine learning models or achieve genuine technological breakthroughs. Without such disclosures, AI-related patents will continue to face high rejection risks under Section 101.”

They further added, “The court was careful not to shut the door entirely. It recognized that AI patents could still emerge if they demonstrate real technological improvements, signaling cautious optimism for future inventors.”

 

Impact of the Federal Appeals Court Ruling

The implications of this decision are far-reaching:

• Stricter Patent Filings: Applicants will need to go beyond simply applying existing AI models to new problems; they must show how they improve the underlying technology.

• Higher Scrutiny for AI Innovations: The bar for AI patents is now clearly set higher, forcing innovators and lawyers to rethink claim strategies.

• Potential Slowdown in AI Patent Grants: Without clear drafting, many pending patent applications related to AI and machine learning could face rejections.

• Emerging Legal Strategies: Companies will likely invest more resources into demonstrating the technological novelty and transformative impact of their AI-based inventions.

This decision sends a strong signal that while patent protection is still available for AI-driven breakthroughs, the courts will demand a genuine inventive step—not just the application of machine learning to familiar challenges.

 

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