There were two issues before the court. First was the matter of whether or not the subject matter of the patent was patentable—the examiner and the board had claimed that the patent was for algorithms and thus unpatentable. Second, the court had to decide whether or not the fact that the patent did not disclose source codemeant the "best mode" requirement was unfulfilled.
Decision
The court reversedthe decision of the board on both grounds, finding that there was more to the patent claim than just algorithms and that source code disclosure was unnecessary, as someone "skilled in the art" could write the necessary source code.
Importance
In re Sherwood was important primarily because it is one of the first cases to establish that source code disclosure is not necessary for fulfillment of the "best mode" requirement.