Online game developer Zynga Inc. survived a patent infringement lawsuit asserted by numerous technology companies concerning its online social casino gaming platform on October 13, 2016 when a federal judge in Nevada held that the alleged patents were invalid according to the U.S. Supreme Court’s decision in Alice Corporation PTF. LTD. v. CLS Bank International et al. The U.S. Supreme Court held in Alice that abstract ideas executed on a computer are not patent eligible. The court denied Alice Corp.’s patents on computerized trading methods and created a two part test for figuring out if a patent is eligible for protection under Section 101 of the Patent Act. First, the court must assess whether the subject matter at issue is aimed at an abstract idea. The subsequent inquiry is whether the assertions comprise of something “significantly more” than the abstract idea. If so, they are patent eligible.
Plaintiffs in this case are CG Technology Development LLC, Interactive Games Limited and Interactive Games LLC. According to the Nevada judge, “The only limitations on the abstract idea are that it involves a server and a remote processor — components which are extraordinarily commonplace in online gaming. These physical devices are used to implement the abstract idea.” The court said the claim is focused on the abstract idea of using information to decide the most effective tactics for a player’s ensuing move and that this idea of “risk hedging” is not patentable subject matter.
Many attorneys say numerous significant questions regarding how the test will be implemented require much more guidance from Federal Circuits. As more courts litigate the issue we will see how courts apply, direct and guide the two step rule from Alice.
 Suevon Lee, Zynga Escapes IP Suit Over Casino Gaming Suite Under Alice, Law360 (Oct. 13, 2016, 4:28 PM), https://www.law360.com/technology/articles/851207/zynga-escapes-ip-suit-over-casino-gaming-suite-under-alice.
 Alice Corp. Pty. v. CLS Bank Int’l, 134 S. Ct. 2347, 2358, 189 L. Ed. 2d 296 (2014).
 Lee, supra note 1.
 Ryan Davis, 5 Burning Questions About Patent-Eligibility Post-Alice, Law360 (April 3, 2015, 3:07 PM), http://www.law360.com/articles/638936/5-burning-questions-about-patent-eligibility-post-alice.