Plaintiffs Versata Software, Inc. and Versata Development Group, Inc. (collectively, “Versata”) filed a patent infringement action in July 2012 against defendant Callidus Software, Inc. (“Callidus”) The patents were all characterized as “covered business method patents.”
Callidus filed a challenged to the validity of the patents-in-suit in August 2013, pursuant to the “covered business method” (“CBM”) patent review process provided for under the America Invents Act. As explained by the district court, “[t]he CBM petitions were filed by Callidus some 13 months after suit was filed and after Callidus had instituted a motion practice which included motions to dismiss and/or transfer. On March 4, 2014, the Patent Trial and Appeal Board (“PTAB”) granted review of the patents-in-suit, finding it more likely than not that the challenged claims are directed to non-statutory subject matter and, therefore, unpatentable under 35 U.S.C. § 101.”
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