In a recent LinkedIn post, Kathryn V. highlights a common misconception among founders regarding the patentability of business methods. Many entrepreneurs, she explains, mistakenly believe that patents are exclusively for tangible inventions like hardware or medical devices, overlooking the potential protection for innovative ways of doing business.
Kathryn V. points out that this oversight can be a costly error. She states:
“Many founders don’t realize their business methods can be patented. They assume patents are only for: hardware, medical devices, and chemical formulas.”
This assumption, according to Kathryn V., leads founders to neglect seeking protection for novel operational strategies. However, she clarifies that business methods can indeed be protectable, provided they meet certain criteria.
The Criteria for Patentable Business Methods
According to Kathryn V., a business method may qualify for patent protection when it addresses a genuine technical or operational challenge, employs technology in an innovative manner, or enhances existing processes, workflows, or management systems. She elaborates on what typically falls outside this scope:
“What usually isn’t protectable: abstract ideas, “do it on a computer” concepts, and high-level business plans with no technical implementation.”
Kathryn V. argues that the difficulty often lies not in the inherent unpatentability of the method, but in how it is framed. Founders often dismiss their own innovations because they haven’t articulated the technical or operational problem-solving aspects correctly.
The Value of Protecting Processes and Systems
Kathryn V. emphasizes that some of the most valuable patents do not protect a physical product but rather the underlying process, workflow, system, or method of the business itself. She warns about the consequences of leaving these crucial elements unprotected:
“And when those methods aren’t protected? Competitors copy them. Platforms absorb them. Investors discount them. Founders lose leverage.”
In Kathryn V.’s view, if a company’s core value resides in its operational execution rather than solely in its product offering, it is essential to investigate the potential for protecting that method. She concludes by underscoring the financial implications of this misunderstanding.
The Costly Misconception
Kathryn V. asserts that the belief that a business model is ‘just business’ and therefore unpatentable is frequently the most expensive assumption a founder can make. By failing to secure intellectual property rights for innovative business methods, companies risk losing their competitive edge, market share, and negotiating power.
📝 About This Content
This article is based on insights shared by Kathryn V. on LinkedIn.
📅 Originally posted on February 3, 2026 | View original post on LinkedIn →