Tag: uspto

The right to own what you invent is enshrined in the U.S. Constitution. One question among many for the U.S. patent system right now is how — and how quickly — that right evolves in the age of AI.

When the U.S. Patent Office opened in 1790, applicants had to submit physical models of their inventions. Today, a majority of utility patents filed in the United States involve software.

Yet, for more than a decade now, ambiguity over which kinds of software-related inventions are patentable has disproportionately affected the startups and inventors that depend on patents for leverage.

The data is clear: Startups with more patents consistently raise more funding. Not because the patents themselves are inherently valuable, but because they signal to investors that a company has something new worth defending. 

For innovators relying on software and especially AI, that signal has been inconsistent.

John Squires Rebrands the USPTO

In late September, John Squires was sworn in as the new USPTO Director — and immediately made clear he intends to change that.

In his first official remarks, Squires made the unusual choice of describing the USPTO as a “patent factory.” He then took action. As his first official act, he signed two patents — one for distributed-ledger technologies, another for medical diagnostics.

“These have been areas of great, but in my view unproductive, debate — too often dismissed as ‘mere business methods’ or ‘ineligible diagnostic practices,’” he declared, adding: “The U.S. Patent Office is open for business, especially for the technologies of tomorrow.”

Days later, Director Squires authored a rehearing decision in Ex parte Desjardins, reversing a Patent Trial and Appeal Board panel that had rejected a machine-learning patent. The reversal included the following broad policy statement:

“Categorically excluding AI innovations from patent protection in the United States jeopardizes America’s leadership in this critical emerging technology.”

Together, these early and unconventional moves show a USPTO eager to partner with innovators rather than deny them.

For software and AI innovators hoping to use patents to raise investment for their companies, this is encouraging news. Veteran software-patent attorney Robert Plotkin called the Desjardins ruling “a very bold, clear statement by the new USPTO Director that he intends to change, perhaps even end, the era of routinely rejecting AI and software patents.”

Advice for Software and AI Innovators

As the founder of BlueShiftIP, Plotkin specializes in helping growing technology companies patent their software inventions. He urged innovators to treat the Desjardins ruling as a call to action, offering the following advice in a webinar he held shortly after the news was made public.

Re-evaluate shelved inventions.

Machine-learning models, data-processing systems, and algorithmic improvements that deliver measurable technical benefits—think faster training, lower storage use, higher accuracy—may now stand a better chance of allowance at the USPTO.

“If there are innovations you assumed weren’t going to be patentable… it’s time to revisit those assumptions because the door is starting to reopen at the Patent Office,” he said.

File while the window is open.

It’s unclear how long this window is going to last, Plotkin pointed out. Innovators should consider using Track One or other expedited examination options to reach examiners while the current guidance is favorable. (These days, it’s possible to get a utility patent issued in less than a year by paying extra.)

A Shifting Landscape Inside the USPTO

The shift in how AI inventions are treated at the USPTO is one of many changes taking place under the new administration. Most notably, as Acting Director, Coke Morgan Stewart used her authority to reject petitions to contest patents through the inter partes review process in greater numbers than ever before.

Inside the Office, longtime employees have left; others have been let go. On Reddit, patent examiners are expressing concern about whether they’ll have enough time to evaluate patent applications, with rumored changes to how they receive credit for their work coming soon.

Sudden shifts in policy create uncertainty, and uncertainty makes it harder for innovators to secure the funding they need. Still, the direction is clear: When it comes to these specific technology areas, the USPTO is tilting toward engagement rather than obstruction.

For entrepreneurs innovating with AI, this could be the first moment in years when patent protection works as a dependable strategic business tool — a way to attract investment, form partnerships, and compete globally.