Alice Corporation (Alice) (defendant) was assigned several patents that utilize a third-party computer scheme to mitigate settlement risk in a transaction (i.e., the risk that one party will not satisfy its obligation). The process of using an intermediary to mitigate settlement risk is known as intermediated settlement, which is a well-known practice in the business world. CLS Bank International (CLS) (plaintiff) brought suit in the United States District Court for the District of Columbia, seeking a declaratory judgment that the claims were invalid. Alice filed a countersuit for patent infringement. The district court found in favor of CLS. Alice appealed, and the United States Court of Appeals for the Federal Circuit affirmed on rehearing. Alice then petitioned the United States Supreme Court, which granted certiorari.