Can Companies Patent Business Methods?

The Federal Circuit U.S. Court of Appeals in 1998 held, in State Street Bank v. Signature Financial Group, that a company may be able to patent a new business method based on an application of computer software. The court held that a business can seek to patent a process that adapts a computer program that produces “a useful, concrete and tangible result.”

The court implied that a new method of doing business or providing a service -- not necessarily through the use of a computer -- is potentially patentable. The decision broadens the patentability of innovations, as long as they satisfy the usual statutory requirements:

  • The method -- but not the principles underlying it -- must be novel and not obvious to persons skilled in the relevant field or occupation, and
  • The method must produce a useful result.

If your company has developed a new method, should you consider protecting it with a patent? After all, a competitor patenting it could block you from using it. We can help you decide whether to patent your proprietary business methods or computer programs.



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