Business Method Patents Explained

Business method patents are a type of intellectual property that protect new and innovative business processes. They were first introduced in the 1970s as a way to encourage innovation and entrepreneurship.

The first business method patent was granted to a company called the Mercantile National Bank in 1973 for a method of processing checks. This patent was a significant milestone in the development of business method patents.

To be eligible for a business method patent, an invention must be novel, non-obvious, and useful. The novelty requirement means that the invention must be new and not have been previously known or used.

Business method patents can be challenging to obtain, but they can provide significant protection for businesses.

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Business method patent laws vary across different jurisdictions. The World Trade Organization's Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) does not specifically address business method patents.

In some jurisdictions, business methods may be considered patentable subject matter, while in others they may not. This inconsistency can make it challenging for businesses to navigate the patent landscape.

The lack of clear guidelines from TRIPS means that countries must establish their own rules and regulations regarding business method patents.

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The European Patent Convention is a crucial framework for understanding patentability in Europe.

Under the European Patent Convention, schemes and methods for doing business are not patentable as such.

However, if a business method involves technical means like computers or programmable apparatus, it's considered to have a technical character and may be patentable.

The technical character of the invention is key to its patentability, and features that don't contribute to this character can't support an inventive step.

In other words, if a business method is purely abstract and doesn't involve any technical means, it's likely not patentable under the European Patent Convention.

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In India, business methods are not patentable per se, but they can be if a new method solves a "technical" problem and an apparatus/system is involved, according to Chapter II, Section 3, part (k) of the Indian Patent Act.

The USPTO has essentially stopped allowing business method patents in the US, following the Alice Corp. v. CLS Bank International decision in June 2014, which requires business methods to be "significantly more" than simply implementing a well-known business process on a computer.

Examiners in the USPTO still lack clear guidance on what is allowable under the Alice decision, making it difficult to determine patentability of business methods.

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The America Invents Act was a significant piece of legislation that aimed to reform the patent system in the United States.

It imposed restrictions on business method patents, excluding future patents for tax strategies.

The Act created an eight-year window for anyone to request a review of existing business method patents that don't involve technological inventions.

To trigger this review, the challenger must prove it's likely that at least one claim of the patent doesn't qualify for protection.

The Act also established a nine-month period for challenging the validity of business method patents after they've been granted.

During this time, the challenger must prove that the patent implicates a novel legal question or that at least one claim doesn't qualify for protection.

However, the challenger cannot use the basis for the review again in an infringement case or declaratory judgment action.

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A business method process must be original, useful, non-obvious, and create a tangible result to be patentable.

To qualify for a patent, a business method must involve a specific application of technology that is intrinsic to the method, not just an add-on.

This technology should enhance or change the way a business operates, leading to improved resource efficiency, cost-effectiveness, or other tangible benefits.

A business method patent is not just about a new idea, but about a concrete implementation that provides a technical solution to a technical problem.

One notable example of a patented business method is Amazon's "1-Click" ordering system, which leverages technology to store billing and shipping information, making online purchases simpler.

This system demonstrates how a unique, tech-integrated business method can be protected, setting a benchmark for innovation in e-commerce.

To secure a patent for your business method, you must meet four key criteria: patentable subject matter, usefulness, novelty, and non-obviousness.

A novel business method must be distinct from any prior methods, and it should create a new or unexpected result for someone versed in the relevant field.

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To secure a business method patent, you must meet four key criteria. Your business method needs to be patentable subject matter, which means it can't be an abstract concept.

The technical challenges overcome by the process or other technical advancements related to the process usually meet this requirement. This is a relatively easy hurdle to clear.

Your business method must be useful, which means it should yield a tangible outcome. This requirement is often satisfied with minimal effort.

A novel business method must be distinct from any prior methods. This means it can't be a variation of something that's already been done.

Public exposure can occur through public use or if the method has been detailed in a publication prior to filing the patent application. However, an exception may apply in the U.S. if you disclosed the method less than a year before the application filing date.

To be non-obvious, your invention should create a new or unexpected result for someone versed in the relevant field. This requires a leap forward, surprising those who know the field well.

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To patent a business method, you'll need to complete a utility patent application, which will include details about your business method. This application will go through a review process where it may be examined, and you'll need to answer any questions from the examiner.

The review process can take two to three years from the date of filing to receive a business method patent. This can be a long and complex process, so it's essential to work with a patent attorney to handle the paperwork.

The cost of obtaining a business method patent can be thousands of dollars, which includes hiring a patent attorney and paying USPTO fees.

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Business methods are classified differently in various patent systems. In the 8th edition of the International Patent Classification (IPC), a special subclass "G06Q" has been created for business methods.

This subclass is specifically designed for administrative, commercial, financial, managerial, supervisory or forecasting purposes. The classification change occurred on January 1, 2006, when the 8th edition of the IPC took effect.

US patents describing methods of doing business that involve the use of a computer are classified in Class 705. This class includes sub-categories for various industries such as health care, insurance, electronic shopping, and inventory management.

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