Former Ford Supplier Appeals EDMI Patent Eligibility Dismissal
FMReps Consulting Enterprises (“FMReps”), a former supplier of software for Ford's certified pre-owned (CPO) vehicle program, has appealed the US District Court for the Eastern District of Michigan's (“EDMI”) dismissal of its patent infringement claims against Ford. The dismissal was based on the EDMI’s ruling that FMReps' patents are ineligible software patents.
Background
Ford traditionally performed its preowned vehicle certifications manually using paper. FMReps developed a digital certified pre-owned authentication program that eliminated the need for hard-copy records and allowed easy access to CPO information. FMReps supplied Ford with a tailored CPO program (“Ford eCPO”) that launched in 2018 and made the process more efficient and cost-effective. Ford terminated its use of the Ford eCPO in 2021 when it introduced the “Ford Blue Advantage™” program.
During that time, FMReps first filed a patent application in 2018, which was rejected three times before the US Patent and Trademark Office granted it in 2022. FMReps ultimately received two related patents: US Patent No. 11,461,789 (the '789 patent) and US Patent No. 12,118,571 (the '571 patent) that describe a digital system for certifying pre-owned vehicles involving multiple computing devices tailored to specific dealership roles, e.g., technician, manager, administrator. The patent claims include steps such as decoding vehicle identification numbers (VINs), generating inspection forms, and providing real-time data across devices. FMReps sued Ford in March 2025, alleging that Ford's new CPO product infringed both patents.
The EDMI Decision
Because FMReps did not dispute that its patent claims were directed to an abstract idea, the District Court's analysis focused on whether the claims contained an “inventive concept” sufficient to transform the abstract idea into patent-eligible subject matter.
Despite the United States Patent and Trademark Office’s (USPTO's) initial allowance of the claims based on specific claim elements such as real-time data display and the use of tabs on graphical user interfaces (GUIs), the District Court determined that these features did not constitute an inventive concept. The Court reasoned that the claims implemented the abstract idea of certifying pre-owned vehicles using generic computer components and conventional processes. Features such as real-time data display, simultaneous viewing on multiple devices, and tabbed GUIs were deemed routine and well-understood functionalities.
The Court noted that the patent specification itself explained that a similar process for certifying preowned vehicles has existed for decades and that the '789 patent fills a need for a certification program “that minimizes clerical and reporting errors while providing accurate real-time information and records to stakeholders.” The Court found no limitations in the claims that revealed an inventive concept deviating from the CPO industry standard.
The intellectual property (IP) attorneys in Butzel’s global Automotive Industry Team will continue to track this appeal and provide updates on it and other significant matters that affect automotive suppliers.
Daniel G. Vivarelli
202.454.2841
vivarelli@butzel.com
