Patent

A patent is a government-granted intellectual property right giving the inventor exclusive rights to make, use, sell, and license an invention for a limited period. The term is typically 20 years from filing for utility patents, in exchange for publicly disclosing how the invention works in sufficient detail that someone skilled in the field could reproduce it. Patents are issued by the US Patent and Trademark Office (USPTO) at the federal level and have no state-level equivalent.

The three patent types:

• Utility patents cover new and useful processes, machines, manufactures, or compositions of matter; the most-common patent type covering everything from algorithms (in limited cases) to mechanical devices to chemical formulations. Term: 20 years from filing. Cost: $5K-$20K through full filing and prosecution, often more for complex inventions.
• Design patents cover the ornamental (non-functional) appearance of a manufactured product (the way it looks, not the way it works). Term: 15 years from grant. Cost: $1K-$5K typically.
• Plant patents cover newly invented or discovered, asexually reproduced plant varieties. Term: 20 years. Rare and niche.

The application process: file a provisional patent application ($75-$300 USPTO fee, plus attorney fees; gives "patent pending" status and locks in a priority date for 12 months while you continue developing), then file a non-provisional application within 12 months ($300-$1,820 USPTO fees depending on entity size; plus $5K-$15K in attorney fees), USPTO examination takes 18 to 36 months on average, with multiple rounds of office actions (rejections requiring response), and grant if successful (additional issue fee at grant). The strategic decision for software startups: most pure-software patents are difficult to obtain post-Alice Corp v. CLS Bank (2014, Supreme Court significantly narrowed software-patent eligibility), expensive to obtain ($15K-$30K total typical), and rarely enforceable in practice for early-stage companies. The exceptions where software patents do make sense: defensive portfolios for companies in patent-troll-heavy spaces, hardware-software combinations, or genuinely novel algorithmic inventions in established patentable categories. The 2020s reality: most software startups get more value from trade secrets, copyrights, and trademarks than from patents.

What founders get wrong: Filing software patents for "defensive purposes" without thinking through whether the patents will actually be granted, what they'll cost over the prosecution lifecycle, and whether they'll provide meaningful protection. Most software patents take 3 years and $30K+ to obtain; the protection they provide for early-stage startups is usually less valuable than the same money spent on hiring engineers to build faster.

Related: Trademark · Copyright · Trade Secret · Work for Hire

FAQ

What is a patent?
A government-granted intellectual property right giving the inventor exclusive rights to make, use, sell, and license an invention for a limited period (typically 20 years from filing for utility patents), in exchange for publicly disclosing how the invention works. Issued by the USPTO at the federal level.

What are the three types of patents?
Utility patents (new and useful processes, machines, manufactures, or compositions of matter; 20-year term; most common). Design patents (ornamental appearance of products; 15-year term). Plant patents (asexually reproduced plant varieties; 20-year term; rare). Utility is the type startups most often pursue.

Should a software startup file patents?
Usually no, after Alice Corp v. CLS Bank (2014) made pure-software patents harder to obtain. Software patents typically cost $15K-$30K to obtain, take 18-36 months, and are difficult to enforce. Exceptions: defensive portfolios in patent-troll-heavy spaces, hardware-software combinations, or genuinely novel algorithmic inventions. Most software startups rely on trade secrets, copyright, and execution speed instead.