2 different projects, which are planned for the mid-term future, may involve me in patent applications.
Both involve online processes and/or software rather than something physical. One of them would actually be better described as a financial instrument, for which I'd be seeking to patent the broad contractual terms and/or the method for distributing / awarding such contracts.
Since those are intangible items and I've never gotten near a patent application before, I imagine there are issues.
The area in which you are working is quite complex both in terms of describing inventions and in terms of the changing legal landscapes. An expert is definitely suggested. Even then, the terms of an agreement would be difficult to protect under patent law. This makes such a business model harder to protect than others. That said, there is often some technical aspect to software that is patentable separate from the business model itself, so you may want to look there as well.
I have very little advise on how to go about the process. I am an expert at Patent Law and can easily review people's work to determine its quality. That said, I could not do that for at least 10 years while working as a patent professional as the small nuances, etc. make it difficult to see what is poorly thought out vs. what is very well thought out - they often appear similar to an untrained eye. Most people look for the most thorough description, though this is not an indication of the planning and strategy in the application.
Most noteworthy, noone really reviews patent work, so even success of practitioners may not be the best indication. I know the answer is not helpful, but it is honest.
Here is my short checklist that anyone can look into:
1) Do they have their work reviewed and by whom?
2) Do they work with other attorneys to improve their work quality on a regular basis?
3) How do they approach strategy for claims?
4) What is their success rate for broad claims?
5) Do they handle a lot of software applications?
6) When do they call for help?
General questions include
1) Do they bill by the hour or on a fixed fee basis?
2) What is the time frame?
3) What do you need to do?
Every client has a best fit representative so don't think that there are best answers to the second set of questions. I have worked with excellent entrepreneurs who love working with me and with others where the relationship was better handled by someone else in my firm. Personality, style, etc. play a big role in the feeling that you are being well-protected.
In general, I personally look for someone who is business minded, who requires no work from me, who has their work reviewed very regularly by people from other firms, who call for help often, who handle a lot of software, and who bill on a relatively fixed fee basis for the drafting work.
I hope this helps.
Experience: I work in financial services, fintech and product strategy, and I’ve dealt with IP questions around software, algorithms, and financial-instrument structures. While I’m not a patent attorney, I can explain the practical side founders usually face before they hire one.
Answer:
Patenting intangible products like software, online processes or financial-instrument structures is possible — but the path is very different from physical-product patents, and the risks/costs are often misunderstood by first-time founders.
Here’s how to think about it step-by-step:
1. Can you patent software, processes, or financial instruments?
Yes — but only under specific conditions.
You generally need to show that your invention includes:
• a novel technical method,
• a non-obvious improvement,
• and a clear technical contribution, not just a business idea or contract structure.
Pure business methods (“a new way to structure a financial contract”) are often rejected unless you tie them to a technical implementation (e.g., a specific algorithm, automation method, or technological system that makes the process unique).
For financial instruments, patent examiners often ask:
“What is technically new here — beyond the economic idea?”
If the answer is clear, patent is possible. If not, it’s usually rejected.
2. Should you patent? Or is secrecy + speed a better strategy?
For many founders, especially in software/fintech, patents are:
• expensive,
• slow,
• and often easy to design around.
A patent makes most sense when:
• your method/algorithm is truly unique and central to your business
• a competitor copying it would destroy your competitive edge
• and you can afford a multi-year, multi-jurisdiction process.
If your innovation is mainly contractual or operational, sometimes a trade-secret approach (don’t disclose your internal method publicly) is more effective and cheaper.
3. Common pitfalls (and how NOT to go about it)
• Do not try to patent a broad idea like “a system for automating online contracts.”
It will be rejected.
• Do not rely on generic law firms — patent law is extremely specialised.
• Do not file a provisional/pseudo application by yourself; bad drafting weakens your protection.
• Do not disclose details publicly before protecting them (pitch decks, websites, investor calls).
4. How to evaluate patent law firms (the simple checklist)
Choose a firm that has:
✔ attorneys specialised in software / fintech / algorithms,
✔ real experience with process patents (not just hardware),
✔ examples of financial-services patents they’ve filed,
✔ willingness to tell you not to patent if it’s a waste of money,
✔ fixed-fee options, not open-ended billable hours.
Always ask:
“What percentage of applications like mine get granted?”
Good firms can answer. Bad ones avoid the question.
5. Timeline & cost (realistic numbers)
• Initial consultation: often free or ~$200–500
• Drafting a strong application: $8,000–$20,000
• Filing in one jurisdiction: $2,000–$5,000
• International protection (PCT): ~$4,000–$10,000, plus national filings
• Total long-term cost: easily $25k–$60k+ over several years
Timeline:
• Filing → 1 day
• First examination → 12–24 months
• Final decision → 2–5 years
Yes — it’s slow.
6. A practical approach for founders in your situation
Based on your description (online processes + financial-instrument-style structure):
1. Start with a confidential technical audit
Identify which element is actually novel and technical.
2. File a provisional/pending application only if it has real merit
This locks in a priority date without committing to the full cost immediately.
3. Use the “pending patent” status strategically
Investors value it, even before the patent is granted.
4. If the value is mostly contractual, consider:
• trade secrets
• licensing frameworks
• strong commercial execution
instead of patents.
If you want, I can walk through your projects with you and help you identify which parts are realistically patentable and which aren’t — sometimes this saves founders a lot of unnecessary cost.
