{"id":611,"date":"2022-09-08T15:25:25","date_gmt":"2022-09-08T09:55:25","guid":{"rendered":"https:\/\/test.tntra.io\/blog\/?p=611"},"modified":"2025-12-22T16:18:07","modified_gmt":"2025-12-22T10:48:07","slug":"path-to-software-patents-how-to-approach","status":"publish","type":"post","link":"https:\/\/www.tntra.io\/blog\/path-to-software-patents-how-to-approach\/","title":{"rendered":"The Path to Software Patents: How to Approach It"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #c4161d;color:#c4161d\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #c4161d;color:#c4161d\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tntra.io\/blog\/path-to-software-patents-how-to-approach\/#Software_Patents_Filing_Overview\" >Software Patents: Filing Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tntra.io\/blog\/path-to-software-patents-how-to-approach\/#How_to_Approach_Software_Patents\" >How to Approach Software Patents<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tntra.io\/blog\/path-to-software-patents-how-to-approach\/#Conclusion\" >Conclusion&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tntra.io\/blog\/path-to-software-patents-how-to-approach\/#Listen_to_our_latest_podcast_episodes_on_Innovation_FinTech_and_more\" >Listen to our latest podcast episodes on Innovation, FinTech, and more!<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p>Square is a financial services and mobile payments company. They sell software and hardware payment products. Square Reader was a key technology for the success of the company. It is a new approach that enables people to engage in a financial transaction by swiping a debit\/credit card through a card reader connected to a mobile device.&nbsp;<\/p>\n\n\n\n<p>The card reader accurately reads the data in the magnetic strip of the card and provides a signal that corresponds to the data read to the mobile device, which then decodes the incoming signal and completes the transaction.<\/p>\n\n\n\n<p>Square had a strategic IP management approach. The company filed a lot of patents on the same day. The patents covered the various Square Reader functions, from the decoding card swipe signals, passive identification circuitry, receipt generation, and more.&nbsp;<\/p>\n\n\n\n<p>Square\u2019s early patent acquisition is a significant reason for its success. It helped to claim IP ownership of the technologies in the card reader.&nbsp;<\/p>\n\n\n\n<p>(Source: <a href=\"https:\/\/patents.google.com\/patent\/US8231055\" target=\"_blank\" rel=\"noreferrer noopener\">Google Patents<\/a>)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Software_Patents_Filing_Overview\"><\/span><strong>Software Patents: Filing Overview<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In 2020, the most international (PCT) patent applications were filed in the computer technology field, with about <a href=\"https:\/\/www.statista.com\/statistics\/256859\/ranking-of-the-top-5-technologies-with-the-most-international-patent-applications\/\" target=\"_blank\" rel=\"noreferrer noopener\">21,449 applications<\/a>. The increasing number of unique ideas and innovative applications are a primary reason for this growth.<\/p>\n\n\n\n<p>From 2013 to 2017, Jury decisions had a <a href=\"https:\/\/www.statista.com\/statistics\/1035357\/patent-holder-trail-success-rates-in-us-bench-vs-jury-decisions\/\" target=\"_blank\" rel=\"noreferrer noopener\">high success rate in patent litigation trials<\/a>. 74% of trials were successful. Companies now file patent applications with the right strategy to ensure that if they go to trial, the decision is in their favor.&nbsp;<\/p>\n\n\n\n<p>US courts awarded <a href=\"https:\/\/legaljobs.io\/blog\/patent-litigation-statistics\/\" target=\"_blank\" rel=\"noreferrer noopener\">$4.67 billion in patent damages<\/a> in 2020. Along with that, the average cost of patent litigation is $2.3 million to $4 million. Therefore, companies need to have a proper patent strategy for their software to avoid any litigation damages.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Read more: <\/strong><a href=\"https:\/\/www.tntra.io\/blog\/ip-led-software-products-importance-of-patenting-innovation\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>IP-led Software Products: Importance of Patenting Innovation<\/strong><\/a><\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Approach_Software_Patents\"><\/span><strong>How to Approach Software Patents<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.tntra.io\/blog\/commercial-ip-strategy-for-software\/ https:\/\/www.tntra.io\/blog\/6-ways-patents-drive-innovation-tech-advancement\/ https:\/\/www.tntra.io\/blog\/ip-strategy-new-products-safeguard-innovations\/ https:\/\/www.tntra.io\/blog\/blockchain-intellectual-property-key-owning-innovation\/ https:\/\/www.tntra.io\/blog\/4-seamless-intellectual-property-strategies\/ https:\/\/www.tntra.io\/blog\/ip-patents-advancement-tech\/ https:\/\/www.tntra.io\/blog\/intellectual-property-software-interconnection\/ https:\/\/www.tntra.io\/blog\/how-patents-are-paving-path-software-innovation\/ https:\/\/www.tntra.io\/blog\/breakthrough-solutions-for-global-challenges-through-ip\/ https:\/\/www.tntra.io\/blog\/role-of-ip-in-software-product-engineering\/ https:\/\/www.tntra.io\/blog\/path-to-software-patents-how-to-approach\/ https:\/\/www.tntra.io\/blog\/ip-led-software-products-importance-of-patenting-innovation\/ https:\/\/www.tntra.io\/blog\/intersection-of-ip-and-open-source-in-software-product-development\/\" target=\"_blank\" rel=\"noreferrer noopener\">Software patents<\/a> are crucial to the success of unique software ideas. However, claiming IP ownership is a challenge. There\u2019s often confusion regarding what the patent involves. Apart from that, approaching the software patent process without a strategy is a risk in itself.<\/p>\n\n\n\n<p>It is essential to partner with an <a href=\"https:\/\/www.tntra.io\/\" target=\"_blank\" rel=\"noreferrer noopener\">IP-led product engineering company like Tntra<\/a>. Such an associate caters to the IP ownership process as it understands the knowledge, skills, resources, and expertise behind the product.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/www.tntra.io\/whitepaper\/patents-the-first-of-the-three-p-of-intellectual-property\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" src=\"https:\/\/www.tntra.io\/blog\/wp-content\/uploads\/2022\/07\/whitepaper-cta-blog-bnr.png\" alt=\"Enterprise Modernization - Tntra Whietpaper\" class=\"wp-image-177\"\/><\/a><\/figure>\n\n\n\n<p><strong>Building the right IP strategy involves a well-defined approach. Here\u2019s what the strategy entails &#8211;<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Define Value Proposition Vectors<br><br><\/strong>Defining an invention is not easy. While companies define the desired functionality, they often struggle to define what should be patented. However, the value proposition vectors comprise the idea that lies somewhere between the functionality and the code. It addresses the system, process, or apparatus that makes a certain outcome possibly unique. It also identifies the industries, applications, and experiences that will benefit from the invention.<br><\/li>\n\n\n\n<li><strong>Create Patent Strategy<br><br><\/strong>The patent strategy comprises drafting an engineering note. While it is difficult to include the code in the patent, identifying the engineering aspect can be easy once the idea comes to fruition. The engineering note, therefore, includes the design of the system. Once that is done, engaging a patent strategist\/lawyer is essential. They also help you differentiate between copyrighting the code and patenting software.<br><\/li>\n\n\n\n<li>&nbsp;<strong>File Provisional Application<br><br><\/strong>Value proposition vectors and a patent strategy simplify the process of filing patents. It includes follow-up with final applications, PCTs, and much more. The patent application must evidence the possession of the invention. Describing the flow from point A, which is the desired functionality, to point B, which is the code that makes the functionality possible, is essential. The technology for the patent lies somewhat in between the two.<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Navigating the path to software patents becomes clearer with an <strong>IP Practice<\/strong> that evaluates readiness, eligibility, and commercial impact at every stage.<\/p>\n\n\n\n<p>\ud83d\udc49 <strong>Understand Our <a href=\"https:\/\/www.tntra.io\/ip-practice\">IP Practice<\/a><\/strong><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The primary focus of patenting is to claim IP ownership for the flow between the functionality and the code. By having a proper patenting strategy in place, <a href=\"https:\/\/www.tntra.io\/\" target=\"_blank\" rel=\"noreferrer noopener\">software engineering companies<\/a> can save a lot of money and time. On the other hand, they can secure ownership in case of litigations and utilize the patents to create a marketable product and competitive advantage.<\/p>\n\n\n\n<p>An <a href=\"https:\/\/www.tntra.io\/engineering\" target=\"_blank\" rel=\"noreferrer noopener\">IP-led product engineering services partner<\/a> can help enterprises and startups take advantage of patenting software innovation. Tntra has the right experts who provide the support and assistance needed for creating IP-led solutions. <a href=\"https:\/\/www.tntra.io\/contact-us\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Consult us<\/strong><\/a><strong> today!<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Listen_to_our_latest_podcast_episodes_on_Innovation_FinTech_and_more\"><\/span>Listen to our latest podcast episodes on Innovation, FinTech, and more!<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<div style=\"width: 100%; height: 200px; margin-bottom: 20px; border-radius: 6px; overflow:hidden;\"><iframe style=\"width: 100%; height: 200px;\" frameborder=\"no\" scrolling=\"no\" seamless src=\"https:\/\/player.captivate.fm\/episode\/c56a7dc9-6d88-4094-a8e7-b650890d283e\"><\/iframe><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Square is a financial services and mobile payments company. They&#8230;<\/p>\n","protected":false},"author":6,"featured_media":1122,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[],"class_list":["post-611","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-intellectual-property"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Path to Software Patents: How to Approach It - Tntra<\/title>\n<meta name=\"description\" content=\"The right approach for software IP can help enterprises carefully patent their innovation. 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