This article explains how patents protect inventions and outlines types (utility, design, plant), terms, and maintenance obligations. It addresses whether and how online business methods can be patented, emphasizing novelty, usefulness, non-obviousness, and that abstract ideas are not eligible, along with potential advantages like exclusivity and licensing revenue.
It also summarizes infringement basics, patent rights, and enforcement. It addresses common questions such as how to patent a business, can you patent a business, how do you patent a business idea, and how to patent a product. Finally, it touches on the patent process and filing a patent application for business innovation (sometimes informally called a business patent), noting the complexity of the process and the value of consulting a patent attorney.
When an individual is inventing new things or ideas, they will want to protect those from unauthorized use and distribution. Under federal patent laws, patents are provided to an inventor so that other individuals are excluded from “making, using, offering for sale or selling the invention” in the United States. These exclusive patent rights help preserve competitive advantages and deter copycats.
Because of these concerns, patents are provided to inventors to help them protect their inventions. Patents are typically in effect for 20 years.
Many entrepreneurs informally refer to this as seeking a “business patent” when they want protection for a way of doing business online or offline. In rare cases, applications may be subject to national security review under the Invention Secrecy Act.
Patents may be obtained for any invention in technology or industry. An individual can obtain a patent by applying with the U.S. Patent and Trademark Office (USPTO). Filing a patent application begins the patent process.
The patent application procedure is often detailed, and numerous different requirements must be met. Patents are a part of an international agreement with the World Trade Organization (WTO).
Because of this, nations that are members of the WTO are expected to recognize and enforce a legal patent.
Generally, for an individual to be given a patent from the United States Patent and Trademark Office, their invention is required to be:
New
Unique
Generally unobvious
There are also numerous different categories of patents that may be available to an inventor, depending upon what an individual wishes to patent, including:
Utility patents: Inventions, in general, are required to be:
a process or method with a concrete result
a chemical, a machine, or a biological composition of matter
an invention improvement
The invention is also required to be moderately useful to qualify for a utility patent
Design patents: Generally, the design must be:
novel
non-obvious
non-functional
Plant patents: Plants that an individual creates can be patented
The plant must be novel and non-obvious
When a method of doing business meets these standards, people sometimes call it a “business practice patent.” Applicants often ask, “Can you patent a business process?” and, “How do you patent a business idea?” The answer depends on whether the process satisfies the criteria above and is not merely an abstract idea.
An inventor needs to be aware that certain things cannot be patented, including:
Naturally occurring substances
Laws of nature
Ideas
Calculation methods
Other things
How Long Does a Patent Last?
How long a patent lasts depends on the date the application was filed. If a patent was filed after June 8, 1995, it will last for 20 years from the date the patent application was filed.
If the patent was filed before June 8, 1995, it will last for either 17 years from the date the application was granted or 20 years from the date the application was filed, whatever time is longer. Additionally, the duration of a patent will depend on the type of patent being filed.
Specifically, the validity of patents based on their category includes:
Utility patents: 20 years from the date of filing if the patent was filed before June 8, 1995, or 17 years from the date the patent was issued, whichever is longer
Design patents: 14 years from the date of issue for design patents
Plant patents: 17 years from the date the patent was issued
Once an inventor obtains a patent, they must pay maintenance fees to the USPTO to keep their patent in force. These maintenance fees are due at specific times following the granting of the patent, including:
3.5 years
7.5 years
11.5 years
If an inventor misses one of these deadlines, they will have a six month grace period to pay the maintenance fee plus a penalty surcharge to keep their patent in force. If an inventor fails to pay these maintenance fees, their patent will expire.
Why Do I Need a Patent?
Individuals file for patents to protect others or entities from stealing their ideas and making money off them after they patent their idea. If an individual has an idea or invention they want to patent, they should research it to ensure they are not infringing on another patent.
Many entrepreneurs ask whether they can patent a business. In practice, protection focuses on the specific invention or method that gives the business an advantage. This is true whether you aim to patent a business method, a product, or another form of business innovation.
What Is an Online Business?
An online business is generally a company that operates either in full or in part over the internet. Online businesses generate revenue from online transactions.
Can I Patent a Method I Use for Running My Online Business?
An individual can patent a method they use to run their online business. If an individual has a unique way of conducting business online that provides a competitive advantage, they may patent that method.
Common questions include, “Can I patent my business process or idea?” and “Can you patent a business model?” The answers depend on meeting patentability requirements and avoiding claims to abstract ideas.
Although it may be difficult to patent a business method, the USPTO has become more willing to allow patents for unique online business practices. One example of this is allowing individuals to patent the various methods used by auction sites in terms of how the auctions are set up and conducted.
What Are the Advantages of Patenting My Online Business Method?
There are some advantages to patenting a business method. First, if the method provides the online business with a competitive advantage, an individual likely does not want that method falling into the hands of a competitor.
Having a patent would allow an individual’s unique method to be used exclusively by their business and no other party for up to 17 years. Another advantage of having a patent is that, even if an individual does not mind allowing other businesses to use their unique method, it would allow the individual to charge a fee for other businesses to be licensed to use their method.
How Do I Qualify to Get a Business Method Patent for my Online Business?
There are several requirements a business method must meet for them to be able to patent it, including:
The method must be novel: This means the business method could not have been used or patented by any other business more than a year before your application for the patent.
An individual or individuals must create the method: It cannot be some abstract idea or a product of nature.
The method must be useful: It must do something productive for the online business.
The method must not be an obvious idea: This means the idea cannot be an obvious idea that any individual in the same business area could have created.
What Is Patent Infringement?
If another party uses an individual’s invention or an invention with similar elements, the party may be held liable for patent infringement. The patent’s claims and elements must be compared with the device or invention suspected to be infringing to prove that patent infringement occurred.
If those claims and elements match, infringement has occurred. If infringement occurs, an inventor can enforce their patent rights in federal court.
Should I Consult a Lawyer when Filing for a Patent for My Online Business?
Patent laws are very complex. Filing for a patent may be an extensive process that most people will need help with.
In most cases, it will be very helpful to have the assistance of a patent attorney in your area when you file for a patent for your online business method. Your attorney can guide you through the process and advise you of the laws you need to be aware of and the appropriate forms that need to be filled out.
If you intend to patent a business, product, or process, your attorney can help assess patentability, prepare filings, and plan enforcement. They can explain how to patent a business or product, help draft a patent application, and guide you through each step of the patent process.
If any legal issues arise during your patent application, your attorney can assist you with resolving them. Your attorney can also provide you with updates if there are any changes to the law that might affect your legal options and rights under the law. They can also represent you in court if any legal conflicts, disputes, or unresolved questions regarding your claim should arise.
Jennifer joined LegalMatch in 2020 as a Legal Writer. She holds a J.D. from Cumberland School of Law and has been a member of the Alabama State Bar since 2012. She holds a B.A. in Criminology and Criminal Justice and a B.A. in Spanish, both from Auburn University. Jennifer’s favorite parts of legal work are research, writing, and helping individuals understand their legal options. Jennifer enjoyed being a Law Clerk for a distinguished Circuit Judge in Alabama. She is a work-from-home mom and homeschool teacher of three children. She enjoys reading as well as coffee dates with her husband, a distinguished member of local law enforcement.
