What is a Business-Method Patent? A Comprehensive Legal Overview

Definition & Meaning

A business-method patent is a type of patent that protects a specific method of conducting business. This includes a series of steps or processes that, when combined, form a unique way to operate a business. The concept of patenting business methods gained legal recognition in the United States in 1998, when a court ruled that these methods are subject to the same patentability requirements as other processes. This means that to obtain a business-method patent, the method must be novel, non-obvious, and useful.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A company develops a unique online sales process that significantly improves customer engagement and sales conversion rates. They can apply for a business-method patent to protect this process.

Example 2: A hypothetical example could be a method for streamlining supply chain management through an innovative software application that integrates various vendor systems.

Comparison with related terms

Term Definition Key Differences
Utility Patent A patent for a new and useful process, machine, or composition of matter. Utility patents cover a broader range of inventions, while business-method patents specifically focus on methods of doing business.
Design Patent A patent that protects the ornamental design of a functional item. Design patents protect the appearance of an item, whereas business-method patents protect the way a business operates.

What to do if this term applies to you

If you believe you have a unique business method worth patenting, consider the following steps:

  • Conduct a thorough search to ensure your method is novel.
  • Prepare a detailed description of your method, highlighting its uniqueness and utility.
  • Consult with a legal professional or use US Legal Forms' templates to guide you through the patent application process.

Quick facts

  • Typical fees for patent applications can range from several hundred to several thousand dollars.
  • Jurisdiction: U.S. Patent and Trademark Office (USPTO).
  • Possible penalties for infringement can include monetary damages and injunctions against further use.

Key takeaways

Frequently asked questions

A business-method patent protects a specific method of conducting business, including a series of process steps.