What is Software Patent?

We programmers are looking at what is software patent every day. Often, we find that patent bureaucrats have plenty of excuses to ignore us and simply talk to things until they die, which is an unfortunate tactic that inevitably leaves us without our bearings. The standard of obviousness and the ability to justify it will also be compromised. It is in this context that we need to look at software patents. These articles will shed some light on what is software patent.


The first challenge of patent prosecution is determining eligibility, especially for computer software related applications. While international harmonization has reduced differences between patent regulations, there are still some substantial discrepancies in the eligibility requirements for computer software. In this article, we will analyze computer software patent eligibility requirements at various patent offices and discuss corresponding prosecution strategies. A software patent application should be drafted in a way that clearly explains how it addresses the patent eligibility requirements for its target jurisdiction.

There are many factors that must be met to meet the legal requirements of a software patent. First, it must be a new and useful way to use a computer. Moreover, it must not be obvious to someone with average skills in the industry. Furthermore, it must be sufficiently detailed and meet USPTO guidelines. The following are some examples of what software patent eligibility requirements look like. If you have developed a software product, it should not be too similar to anything else on the market.

Generally, software inventions are eligible for utility patents, which offer broad protection. However, there are strict requirements governing how software patents can be granted. First, the invention must be novel and not obvious. The second is the need for significant improvements in software engineering. Only then can a software patent be granted. But there are still important exceptions that must be met to obtain a patent. So, if you are planning to apply for a software patent, make sure to do your research and make sure to identify all of the relevant issues.

The USPTO published Final Computer Related Examination Guidelines in 2013. These guidelines are not final and are subject to revisions based on Supreme Court decisions and Federal Court of Appeals cases. They provide guidance for USPTO examiners when determining the eligibility of a software patent application. In other words, if your invention involves a technical improvement that improves the operation of a computer, it is patent-eligible. There are other types of software that may be eligible for patent protection, such as encryption techniques, machine learning models, and data storage and processing techniques.


A software patent protects your invention from unauthorised use by competitors and sets you up for higher revenues. The cost of a software patent is directly related to its perceived value. While a software patent can be an excellent investment, a patent for a method or software that everyone knows how to get around doesn’t make much sense. Software patents typically cost between $8,000 and $12,000, with a median price around $10,000. A lawyer can help you determine how much to spend on your software patent application and ensure your patent is truly novel.

Obtaining a software patent is a complicated process that requires time, knowledge and monetary resources. Although the benefits of a patent are great, it is imperative to consider the true value of your software before you decide whether or not to go ahead and apply for one. You may not be able to make any significant income from your software, but if it has a potential for significant revenue, a software patent may be worth the money.

Patent attorney fees will vary according to the complexity of your invention and the number of applications. The process can be time-consuming, requiring you to take the time to research your invention, search for existing patents and get advice from peers in the same field. The patent attorney can also help you with filing the application in the relevant countries. However, you should only file a patent application if your software is intended for sale or licensing. You should also hire an attorney if you are not confident enough in your research skills to do it on your own.

Because the process of obtaining a software patent is so complex, the cost is higher than for other types of inventions. It can cost $7500 for a relatively simple invention, while it can cost upwards of $17,000 for more complex applications. Biochemical and biological inventions are typically in the same ballpark. This price range should give you an idea of the complexity of software patent applications. If you are considering applying for a software patent, it’s essential that you fully understand the costs associated with obtaining one.


The new CRI Guidelines for the examination of software patent applications have been controversial, especially because they don’t address the ambiguities created by Section 3(k). The CRI Guidelines also broaden the scope of eligible subject matter for software patents. The Controller General has since moved the Guidelines into abeyance to allow for more discussion and to resolve the contentious issues surrounding the CRI Guidelines. In the meantime, software patent attorneys are working to update the CRI Guidelines and make them even better.

The new guidelines have created confusion about the scope of software patents. While software cannot be patented in and of itself, it can be patented in conjunction with hardware. This is the case with computer software applications. In addition, software cannot perform a particular task by itself, but instead makes a specific set of hardware perform the task. This combination is what constitutes a software related invention. Software patent applications, therefore, are not able to be patented in isolation from hardware.

In order to qualify for a software patent, an invention must be a process, machine, or composition of matter. Moreover, a product must be capable of achieving a new and useful result. However, software can be patented only if it advocates inventiveness. Software that incorporates hardware must be useful, too, as it must be a significant part of the invention. Further, software should be able to achieve some specific result, such as a mathematical model.

In conclusion, software has a great potential for economic growth. It offers tremendous flexibility and innovation. It is relatively easy for software engineers to create new technical capabilities, fix errors, and release new versions of software with downloadable updates. Software implementation of an invention is cheaper and faster than hardware implementation. This makes software patents an attractive option for software developers. There are numerous benefits to software patents. So, why are they so popular? So, what’s the importance of software patents in the digital economy?


Cross-licensing deals can be an excellent way for companies to share intellectual property and save money. Cross-licensing agreements also foster the flow of knowledge between companies and can lead to post-licensing innovations. But be careful when entering into a cross-licensing agreement. While it can be beneficial to both companies, there are potential pitfalls. One is the risk of cannibalization of sales by the other company. Another danger is that the two companies will rely too much on each other’s knowledge and skills.

In practice, cross-licensing agreements can be private between two companies or a group of companies. Public cross-licensing agreements can also be formed through patent pools. Patent pools are industry-based groups of companies that pool their patents for mutual benefit. As long as both companies are interested in using the intellectual property, a cross-licensing agreement is likely to benefit both parties.

In contrast, software patents are not as beneficial to small companies. The open market directorate, which oversees the patent system, is largely made up of mega-corporations that aren’t interested in innovation. The open market directorate ignored the public’s opinion and proposed a software patent directive. The French government has already proclaimed its opposition to the software patent directive. It is unclear which side will win the debate.

The main concern with patent pools is that horizontal coordination among pool licensors can reduce competition between downstream products. In addition, patent pools containing substitute technologies could lead to increased prices in the final goods market. The antitrust-IP Guidelines clarify that patent pools can be beneficial, but antitrust regulators must closely monitor larger cross-licensing agreements. They must not allow monopolistic practices and protect competition.

Impact on small companies

The impact of software patents on small companies is not clear. Some countries exclude software from patent protection, while others do not allow software to be patented at all. Software is one of the fastest growing markets in the world and requires minimal capital investment. Despite this, small companies and startups still need effective IP protection to secure a fair return on their R&D investments. The following are some of the benefits of software patents for small companies.

The software industry has enormous innovation potential. Because software is easily updateable and is relatively cheap, engineers can build new technical features. Software designers can make minor changes to fix bugs and release new versions of software through easy downloadable updates. Furthermore, it is faster and cheaper to implement an invention in software than in hardware. That’s why software patents are so important for small businesses. The following sections present the data and the model.

The original intention of patents is to protect the inventor and encourage innovation, but many of them have become an obstacle to competition and economic growth. However, software patents are often used to stifle innovation and small companies. In the US alone, software-based companies employ 2.5 million people, supporting more than nine million jobs. This omission is a clear indication of a lack of understanding about the nature of software innovation and the rights associated with it.

Another recent study examined the impact of patenting on small companies in the United States. The authors used the IV probit model to evaluate patenting costs for new firms and their exit routes. The results indicated that the cost of patenting is a significant barrier for new firms. However, the costs of licensing software patents are worth it for the small firms if they’re able to maintain their market share. Soracom Inc., a Japanese IoT firm, recently was acquired by the giant KDDI Corporation. The deal included the sale of 18 patent families.