Can you patent an investment strategy

Tech startups should always consult with a patent attorney who specializes in their field for this reason. Todd Dickinson, director of the U. Covin et al. July—August Issue Explore the Archive.

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Obtaining patent protection for software is notoriously challenging. Software may have a very short shelf life. There are issued patents that are written too broadly. In a 3-part series published inEric Goldman goes in deep on how software innovations pose unique challenges to patent systems and what might be done about it. Perhaps it is no surprise that confusion reigns over what is eligible for patent protection today. Ptaent, it is still possible to obtain patent protection for software.

Can you patent financial innovations?

When it comes to inventing, the very first thing you need to do is protect your idea before anyone can steal it, right? Well, if you base your decision on TV commercials or the many invention websites out there touting patent services, the answer is a resounding «Yes! However, if you base your decision on a little business sense—and the fact that your idea is an opportunity, not just an invention—then the answer is more likely, «No—but maybe later. The simple fact is, a patent is a valuable tool—but it’s hardly your number-one ticket to success. And before you invest thousands of dollars in securing a patent, there are steps you should take to ensure that it’s a smart business move.

When it comes to inventing, the very first thing you need to do is protect your idea before anyone can steal it, right? Well, if you base your decision on TV commercials or the many invention websites out there touting patent services, the answer is a resounding «Yes!

However, if you base your decision on a little business sense—and the fact that your idea is an can you patent an investment strategy, not just an invention—then the answer is more likely, «No—but maybe later. The simple fact is, a patent is a valuable tool—but it’s hardly your number-one ticket to success. And before you invest thousands of dollars in securing a patent, there are steps you should take to ensure that it’s a smart business.

After all, only 2 to 3 percent of all patented products ever make it to market. That’s not to say you should never get a patent. Can you patent an investment strategy fact, I’ve filed for patents for most of my products. But I do believe that filing for a patent shouldn’t be your first—or even a required—step. So what should your first step be, then? Before you decide to move forward with a patent, it’s critical to first evaluate your idea as a viable business opportunity.

This means understanding your product, your target market and your competition as best you. This information goes far beyond your gut feelings and the encouraging comments you’ve received from friends and family. It’s based on solid market research and attention to product development. After all, you could spend the time, money and energy to secure a patent for your widget only to find out—much later—that there’s no interest for it in the real-world marketplace.

By then, you’ve not only lost a significant amount of money, you’ve also reached a dead end. Once you’ve determined there are no roadblocks to commercial success, it’s time to consider whether or not you need a patent.

Just as many inventors patent their ideas and never take them to market, thousands of products in the market today aren’t patented—or even patentable—at all. In addition, your attorney may recommend filing for a copyright or trademark instead—an easier and less expensive process—if it makes legal sense.

Patents, Defined So what exactly is a patent anyway? A patent is a right granted by a government to an inventor. It gives the inventor the exclusive right, for a limited period, to stop others from making, using or selling the inventor’s product without the permission of the inventor.

When a patent is granted, the invention becomes the property of the inventor. A patent—like any other form of property or business asset—can be bought, sold and licensed. You may be thinking «Sounds great—so why wouldn’t I want a patent? However, in the real world, you’ll have other concerns vying for your attention and limited resources.

So let’s evaluate exactly what a patent can do—and can’t do—for you as an aspiring entrepreneur. Next Steps So you’ve evaluated your business opportunity, you’ve weighed the costs vs. What now? There are a few more things you need to know about patents and a few resources to evaluate before moving forward. Before you do anything, however, you should perform a comprehensive, preliminary patent search.

To conduct a search for «prior art»—that is, someone else’s similar invention—you can begin by doing so yourself on the U. Follow the directions on the site to begin conducting your research. If you’ve decided to hire a patent attorney or patent agent, they’ll conduct this step for you before they actually file for your patent. Which leads us to your next step After you’ve completed your preliminary patent search, your next step is to find an expert who can help you.

While anyone can write a patent—including you—the patent writer must have the ability to understand the format requirements and the implications of using specific language and terms to present an invention adequately.

For this reason, I recommend you consult a patent attorney or patent agent. A patent agent, plainly and simply, writes patents. One of the advantages of using a patent agent is that he or she will probably charge substantially less than a patent attorney. Note, however, that patent agents, unlike attorneys, don’t have the formal training or ability to defend or enforce a patent in court, should the need arise. A patent attorney has also passed a separate bar exam specific to patents.

Just as with all professionals you’ll hire in the course of doing business, there are good and bad patent agents and attorneys out there, so evaluate your choices on an individual basis and based on your budget and comfort level. When you’re trying to decide, remember this old adage: «It can be very expensive to hire a cheap lawyer. The most important thing to do when evaluating your final decision to get a patent is to keep an open mind.

While most patent attorneys will recommend filing a patent, don’t surrender your business decision to one advisor. It’s important to understand that a patent can be a valuable tool—but never a guarantee that you won’t face direct competition.

Good luck with your decision! Podcasts Books Entrepreneur Insurance. Starting a Business. Everything you need to know about protecting your invention. Next Article — shares Add to Queue. Tamara Monosoff. September 26, 7 min read. Opinions expressed by Entrepreneur contributors are their. More from Entrepreneur. Get heaping discounts to books you love delivered straight to your inbox.

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Fecher et al. Regression analysis gives him some insight into how much patents improve the valuation of companies in the pattent. Should you decide to file a non-provisional patent application, it is more likely to be issued by the USPTO and withstand future legal trouble. How could it not be? Alternatively, simple graphic icons are selected and applied, each indicating one of the three alternative adjustments reflecting the investor’s existing market exposure. Moving forward, I will be writing about intellectual property strategy for software startups specifically. Gompers et al.