Thursday, January 8, 2009

Business Methods and Software Patents are perfectly OK

The most frequently overlooked support for computer software and business models being patentable - US Patent Act Title 35, The United States Code, §101:

Whoever invents or discovers any new or useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefore...

That is why this stnadard rule of thumb must be heeded: claims should be drafted from the point of view of the server, the subscriber, AND the software manufacture etc. (i.e., In re Beauregard claims).

The new and non-obvious idea of franchising

I have thought about franchising, because many of our clients own franchise business. I think the benefit must be simple - the business is a copy of a successful business. The problems have already been worked out, therefore, the advantage is in the having of avoided the initial developmental hiccups and going straight to operating a business.

Many people want to be their own boss - this is the primary reason for pursuing their own business. For others, it may be the satisfaction of enjoying success through their elbow grease. No matter what the reason, franchising puts one on the road to success without the risk experienced by independent businesses.

There is also the advantage of brand awareness. When one buys into an established national or international brand, there is the automatic name recognition that comes with being associated with a large and familiar company. Furthermore, there is the free training and support that contains proven techniques so that brings on success faster. There is also a built-in access to a network of business owners who share exactly the same business experience. Networking and support from other owners is undoubtedly a priceless resource in business. A franchise means an immense enjoyment of the benefits of collective purchasing power. The franchisor has already established a relationship with many vendors and negotiated a reduced price for their products and services.

I have also thought of myself trying this, and realized it might be something related to general public needs - food, cars, pets, cleaning.

The best franchise opportunity, I have found, should be a car repair franchise. Everyone has had to have their car serviced -mufflers, brakes, tires, radiator flush. Or, it must be a dog grooming franchise . More than half the dogs in these climes where I live are shaggy enough to need grooming.

Thus this company provides the franchise service, it turns out, has tons of experience in the franchising industry. They educate anyone interested in owning their own franchise. Their franchise consultants are franchisees themselves. They are skilled at spotting character traits essential in a potential candidate, and then the candidates are prepared for matching with franchisors.

Their method of matching entails recommending the candidates to three respective franchisors. Each franchisors' representative acquaints the candidate with that franchisor's own qualification process. The franchise consultants keep in touch with the franchisors' representatives and with the candidate. The candidate completes the selection process by identifying the franchise company from which to franchise. The candidate then finalizes the franchise agreement, pays the franchise fee and is awarded the franchise license. The candidate never pays any fees to this franchising assistance company, which is effectively, the middleman. Instead of the franchisee, it is the selected franchisor who pays a referral fee - this is the attractive feature of the idea.

The standard caveat

In each patent application there must be a standard caveat for any potential competitors, infringers and licensees. In the Specification section of the patent application, the start of the technical narration is headed with this (typical) paragraph: Before explaining the disclosed embodiment of the present invention in detail it is to be understood that the invention is not limited in its application to the details of the particular arrangement shown since the invention is capable of other embodiments. Also, the terminology used herein is for the purpose of description and not of limitation.

and finalized with this caveat:

While the invention has been described, disclosed, illustrated and shown in various terms of certain embodiments or modifications which it has presumed in practice, the scope of the invention is not intended to be, nor should it be deemed to be, limited thereby and such other modifications or embodiments as may be suggested by the teachings herein are particularly reserved especially as they fall within the breadth and scope of the claims here appended.

Some applications that have details drawings, or where drawings are a crucial piece of the application, might also mention drawings in a way that almost sneaks up on you. I don;t have a good example of these.