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Author Topic: How much should a business process patent cost?  (Read 1053 times)

Steven W

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How much should a business process patent cost?
« on: 09-11-07 at 08:28 am »

I got a patent search on what in my mind is a relatively straightforward idea.  The law firm agreed that it was novel and informed me that just to get the patent filed would be from $15,000 - $20,000.  Furthermore, they said that since it was a business process patent the probability of getting it approved was like 50%.  Is this a lot of money because I was under the impression that patents cost around $10,000?  How mush should it on average cost after the filing in legal cost?  Lastly, is 50% a realistic number?

Regards
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PA

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Re: How much should a business process patent cost
« Reply #1 on: 09-11-07 at 09:21 am »

In my opinion, that's really high in this day and age for a single application.  My practice is nearly 100% software, including a significant amount of "business process" related work.  I don't know the complexity of your invention, but that may play a part.  Still, 20k is unusually high to me.

One thing I am aware that some firms do is charge a very high amount for independent inventors.  The reason being  that independent inventors are perceived to be more "needy" than corporations.  Whether that's true or not is another question.  In many cases, these firms will say: "Well, if they're willing to pay that amount, then any perceived hassle is worth it.  But if they're not willing to pay that amount, no big deal since we don't want to deal with the hassle."

Bottom line, you may want to shop around.
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MattB

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« Reply #2 on: 09-11-07 at 10:50 am »

I'll echo PA a bit and dissent a bit.

Many firms that deal with small inventors often charge less, however, they will quote an outrageous price as a way of saying we don't want your business.

Note: Every law firm/attorney/agent has no obligation to take your case or help you out (ethically).

I'm sure when you shop around you'll find help from a good nice individual.

Good Luck!
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Matthew L. Bycer
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JimIvey

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Re: How much should a business process patent cost
« Reply #3 on: 09-11-07 at 01:13 pm »

Well, I'll chime in too, since I do primarily software/e-commerce work.  Those numbers may be high or may be reasonable.  It depends entirely on your idea.  You say it's simple, but maybe it's not nearly as simple as you think.  Is you idea "simple" like this: watch stock/commodity prices, map functions to the prices over time, and make smart buy/sell recommendations?  That's not simple.  I'd have to describe, in detail, the data gathering steps, the particular mathematical model you use to fit functions to the gathered data, and the criteria by which you make buy/sell recommendations.  You might think it's all simple, but describing it properly can be very complex.  Another example of something that might sound simple but isn't is collecting data about an insured through the Internet and applying statistical analysis to make a more detailed and accurate risk assessment.  

Now, if it really is simple, those numbers are high.  I've written applications pertaining to m-commerce adaptations of e-commerce processes requiring simple, yet non-obvious, adaptations.  I've done some of those for around $6k.

The 50% number is wrong, in my opinion.  In fact, it suggests to me a reason the cost estimate is so high.  If a firm is looking at work outside their area of technical expertise, they plan to spend extra time on it and are less certain of its odds of success.  I'll agree that it's much tougher to get software and/or e-commerce patents granted, but it works out in terms of time in the patent office rather than odds of getting out alive.  For someone who knows what they're doing in this technical area, there's really no reason the cost should be disproportionate to the complexity of the invention and no reason that the mere technical field would dramatically affect the odds that you get a patent.  

Of course, if the firm had made the estimate of cost and likelihood of success on the complexity of the invention and its apparent merits in terms of novelty and non-obviousness, those numbers could very well be reasonable.  However, there's nothing so special about e-commerce that just doubles or halves numbers based entirely on the technical field of your invention.

Regards.
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patentsusa

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Re: How much should a business process patent cost
« Reply #4 on: 09-15-07 at 02:47 pm »

Somebody sent me a chart recently that showed that the allowance rate in 2007 for class 705, business methods, is under 10%.  I presume that means before any RCEs and continuations are filed.  But it is still a much lower number than in 2001.  I don't know exactly where to find the underlying numbers from the PTO but I suspect they are out there somewhere.

The last page of the following presentation shows a 55 percent allowance rate in class 705 for fiscal year 2000 and 45 percent for fiscal year 2001:
http://www.ftc.gov/opp/intellect/020227johnlove.pdf

This says 19% for 2005:
http://www.ladas.com/BULLETINS/2006/USPTOBusinessMethodsMeeting.shtml

The odds of getting an allowance depend greatly on how long and hard you are willing to fight.  But I don't think they are being overly pessimistic.

I don't feel this firm is necessarily giving you a high estimate or being unreasonable.  The estimate may well have been reasonable, it is hard to know without seeing the invention disclosure.  And it isn't clear whether they are including prosecution figures.  You could easily have multiple amendments, an RCE or two and possibly an appeal.  
« Last Edit: 09-15-07 at 04:27 pm by patentsusa »
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Deepak Malhotra, JD, BSEE, Patent Attorney
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