Fairwarning IP, LLC v. Iatric Sys, Inc.

FairWarning sued Iatric Systems for infringing claims of the 500 patent, which is titled “System and Method of Fraud and Misuse Detection” and discloses ways to detect fraud and misuse by identifying unusual patterns in users’ access of sensitive data. The specification describes systems and methods to detect fraud by an otherwise-authorized user of a patient’s protected health information (PHI). According to the specification, pre-existing systems were able to record audit log data concerning user access of digitally stored PHI. The claimed systems and methods record this data, analyze it against a rule, and provide a notification if the analysis detects misuse. The Federal Circuit affirmed dismissal of the suit. The patent claims patent-ineligible subject matter under 35 U.S.C. 101. The claims were directed to a “basic and well-established” abstract idea: analyzing records of human activity to detect suspicious behavior. They contained nothing to transform the abstract idea into a patentable concept, but only contain an instruction to apply the abstract idea “using some unspecified, generic computer.” View "Fairwarning IP, LLC v. Iatric Sys, Inc." on Justia Law