CHANG TSI
Insights
In the era of digital economy, corporate competitiveness has shifted from "product supremacy" to "model dominance." Innovations in business methods—from e-commerce recommendation algorithms to fintech risk control systems—are reshaping industries. However, many companies face repeated rejections when patenting these innovations, often deemed "non-technical" by examiners, wasting R&D investments.
Core Issue: The "subject matter eligibility" of business method patents is the biggest hurdle. How to prove your innovation is a "technical solution" rather than a "mere business rule"? This article decodes patent examination logic through authoritative cases, offering actionable strategies.
According to Article 2(2) of China’s Patent Law, only "technical solutions" qualify for patent protection. A technical solution must fulfill three criteria:
Common Misconception: Simply automating business processes with computers doesn’t guarantee eligibility. If only using known technologies to execute human-defined rules (e.g., An e-commerce company’s "Picking Path Optimization"), the solution may still fail.
Case 1: An e-commerce company's "Picking Control Method"—Why Was It Rejected?
Solution: Optimizing warehouse staff’s picking routes to reduce walking distance.
Outcome: Deemed a "business management problem" lacking technical means.
Takeaway: Enhancing human efficiency ≠ technical effect. Without hardware/algorithm innovations, pure rule design won’t pass muster.
Case 2: An Internet company’s "Complex Event Processing Device"—Secrets to Success
Solution: Using state machine models to process data streams in real time, boosting system responsiveness.
Outcome: Recognized as a technical solution for improving data architecture and solving "inefficient manual analysis."
Takeaway: Embedding business rules into technical frameworks (e.g., optimizing database interactions) strengthens technical attributes.
Five Battle-Tested Strategies for Applicants
Strategy 1: Start with "Problem Definition"—Anchor Technical Pain Points
Tip: Reframe issues using technical language in patent descriptions (e.g., translate "user retention" into "data cache latency").
Strategy 2: Emphasize the "Irreplaceability" of Technical Means
Strategy 3: Quantify Technical Effects with Data
Strategy 4: Beware of "Pseudo-Technical Jargon" Traps
Strategy 5: Dual Protection for "Technical + Business" Dimensions
Globally, patent offices are tightening business method patent scrutiny. Post the U.S. "Alice Case," many abstract patents were invalidated. While China hasn’t adopted the "two-step test," its emphasis on "technical elements" mirrors global trends.
Action Plan:
At its core, a business method patent legally certifies "innovation value." It’s not just a shield against competitors but also a weapon for fundraising, M&A, and market dominance. Yet, without mastering examination rules, even brilliant ideas may crumble.
Call to Action: Audit your innovation now—Does it solve a technical problem? Does it transcend "ordinary business rules"? Only by fusing business ingenuity with technical rigor can you win the patent game.