The Federal Circuit affirmed a decision that invalidated patents due to the term 'payment handler', deemed a nonce term lacking sufficient structure as required by § 112, sixth paragraph. This ruling raises concerns for patent applications in the AI domain, indicating that similar vague functional terms could also face scrutiny. The court emphasized that terms following 'payment handler', like 'operable to', did not provide the necessary specifics. Consequently, practitioners in the AI field must critically assess their language in patent claims to avoid similar pitfalls.
The Federal Circuit stated that the âpayment handlerâ term was functional without adequate structure, making it indefinite and invalidating the patents.
The opinion highlighted that non-specific terms like 'module' or 'handler' fail to describe the necessary structure needed under § 112, raising concerns for AI applications.
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