CAFC Affirms Section 101 Dismissal for Google Over Internet Advertising Patents

“The asserted claims, as a whole, are directed to the abstract idea of targeting advertisements to maximize revenue generation.” – CAFC

Section 101The U.S. Court of Appeals for the Federal Circuit (CAFC) issued a decision Friday in The Receivership Estate of AudienceScience Inc. v. Google LLC, affirming a ruling from the U.S. District Court for the Northern District of California that granted Google LLC and YouTube LLC judgment on the pleadings on patent ineligibility grounds under 35 U.S.C. Section 101.

AudienceScience, through its court-appointed receiver Revitalization Partners, LLC, owns U.S. Patent Nos. 7,747,676, 7,882,175, and 8,082,298, which share a common specification and relate to internet advertising. The patents describe selecting an advertisement for display on a publisher’s web page based on information collected about the requested page and the user’s browsing activity. Each web page is associated with keywords describing its content, and a user’s page request history is likewise associated with keywords. Advertisements matching those keywords are assigned a selection weighting according to a performance score reflecting the revenue the advertisement previously generated, with the highest-weighted advertisement ultimately displayed. AudienceScience treated claim 1 of the ‘676 patent as representative for purposes of the appeal.

AudienceScience filed a lawsuit against Google LLC and YouTube LLC in 2021 in the U.S. District Court for the Western District of Texas, alleging infringement of the three patents. The case was later transferred to the Northern District of California, where Judge Edward J. Davila presided. Google moved for judgment on the pleadings under Federal Rule of Civil Procedure 12(c), arguing the asserted claims failed to recite patent-eligible subject matter. The district court granted the motion, finding at step one of the Alice framework that “the asserted claims, as a whole, are ‘directed to the abstract idea of targeting advertisements to maximize revenue generation,’” and at step two that the claims recite no inventive concept beyond that idea. The district court also determined, on its own initiative, that amending the complaint would be futile, and dismissed it without leave to amend.

On appeal, the CAFC agreed with the district court’s step one determination. The representative claim recites collecting keywords associated with a requested page and a user’s browsing history. It then uses those keywords to identify matching advertisements and weights each advertisement according to a performance score reflecting generated revenue. Finally, the claim selects one advertisement for display. The court concluded that the claim is “directed to the abstract idea of targeting advertisements to internet users to maximize revenue generation.”

AudienceScience argued that its claims were eligible under DDR Holdings, LLC v. Hotels.com,L.P. because internet advertising presents a challenge unique to computer networks. The court rejected the comparison, explaining that the claims are not directed to solving a problem specific to the internet in the way the claims in DDR Holdings addressed the transience of website locations. The CAFC quoted the district court’s finding that “the asserted claims here are directed to ‘selecting the most effective ad[vertisement],’ which is fundamentally a ‘non-internet centric problem.’” The court found the claims analogous to targeted advertising long used in print and television, applied to the internet.

Moreover, AudienceScience further argued that its claim recited a specific methodology rather than a mere desirable result, pointing to steps such as adding a requested page to a history and identifying sets of keywords and advertisements. The CAFC found this argument foreclosed by Chewy, Inc. v. International Business Machines Corp., where similarly broad steps of identifying search results and correlating them with matching advertisements were held abstract. AudienceScience also cited SRI International, Inc. v. Cisco Systems, Inc., Finjan, Inc. v. Blue Coat Systems, Inc., and McRO, Inc. v. Bandai Namco Games America Inc. as examples of eligible software claims, but the court distinguished each on the ground that those claims recited specific technical solutions to identified technological problems, which the representative claim here does not.

At step two, AudienceScience argued that combining page context and user browsing history and weighting advertisements by a performance score together supply an inventive concept, but the CAFC disagreed with each argument. The common specification describes each targeting approach as conventional, and AudienceScience’s characterization of their combination as producing more personalized results collapsed back into the abstract idea itself. The court noted that AudienceScience’s complaint contained no allegations that weighting advertisements by revenue was inventive, distinguishing the claims from those the court found in Weisner v. Google LLC. The court explained that an invention’s use of the very concept found ineligible cannot itself supply the inventive concept needed to render the claim significantly more than that abstract idea.

Furthermore, AudienceScience argued that the district court improperly foreclosed amendment of its complaint. The CAFC found this argument forfeited, noting that AudienceScience never sought leave to amend below, never appended a proposed amended complaint to its opposition brief, and never moved for reconsideration after dismissal, unlike the patent owner in Aatrix Software, Inc. v. Green Shades Software, Inc. The court explained, citing Ninth Circuit precedent, that “the request on appeal to remand with instructions to permit amendment comes too late” when no such request was made to the district court below. Since AudienceScience forfeited the argument, the CAFC did not reach the merits of the futility determination.

Ultimately, the Federal Circuit affirmed the district court’s grant of judgment on the pleadings against AudienceScience’s asserted claims across all three patents.

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3 comments so far. Add my comment.

  • [Avatar for Pro Say]
    Pro Say
    September 29, 2026 11:40 am

    The CAFC? Criminals in robes.

    Who ought to be in jail for what they’ve done to inventors and innovation.

    Happy 250th Birthday America.

  • [Avatar for Jeff Killian]
    Jeff Killian
    September 28, 2026 04:45 pm

    The Ohio Auditor has determined that the loss of SSDI?related benefits to Ohio and its citizens reaches hundreds of millions of dollars per year — and likely climbs into the billions. The 2014 Ohio State University study fully corroborates losses of that magnitude.

    Given that Ohio and other states are now relying on a broken, unprotected imitation of my SSDI process, it seems clear that everyone would have been far better off had the federal government simply allowed citizens to protect their discoveries and writings. Any reasonable, wholesale licensing of my protected process to the federal government would have cost far less — dramatically less — than the financial damage created by the flawed version in use today.

    The special advisor to Senator Coons, who previously responded to me, has been notified of these findings.

  • [Avatar for Jeff Killian]
    Jeff Killian
    September 28, 2026 03:13 am

    This article is just one of many regarding Section 101 fantasy jurisprudence.

    In In re Killian, the Federal Circuit rejected my patent application on the grounds that the claimed process consisted of “merely mental steps.” Since then, I’ve learned that the federal government incorporated that same unprotected logic into its IVES program — and today all 50 states rely on my process to identify overlooked SSDI benefits.

    The irony is unmistakable. My logic is now used nationwide, yet the government’s implementation produces an error rate roughly 30% worse than having no system at all. That conclusion follows directly from comparing the 2025 Ohio Auditor of State report with the 2014 Ohio State University baseline study, which the USPTO itself included in my official record.

    If this process were truly nothing more than “mental steps,” then the more than one million employees since 1956 across Social Security, Medicaid, and now the federal IVES program should have no difficulty executing it. Instead, the real?world data shows the opposite: the steps are not mental, not simple, and not reliably performed by humans or by the government’s contractors.

    The courts may have labeled the process a mental exercise, but the nationwide failure of its implementation makes clear that this distinction was always a legal fiction — never a factual one.

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