Green Light for AI and Software Patents? What New USPTO Guidance Means for Tech Entrepreneurs

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The United States Patent and Trademark Office (USPTO) recently issued a memorandum on Aug. 4, 2025 to its examiners in software-related arts, including artificial intelligence and machine learning as a “reminder” how to properly evaluate subject matter eligibility under 35 U.S.C. §101. The guidance emphasizes that merely because a claim can be said to involve an exception to patentability (e.g., ‘abstract ideas’ such as mental processes or methods of organizing human behavior) does not necessarily mean that they are directed to an ineligible concept. It also underscores the importance of analyzing claims as a whole, considering whether they reflect improvements to computer functionality or other technical fields. The guidance concludes by directing examiners to default to the patent applicant in a close call: “Examiners are reminded that if it is a “close call” as to whether a claim is eligible, they should only make a rejection when it is more likely than not (i.e., more than 50%) that the claim is ineligible.”

For technology entrepreneurs, this reminder emphasizes that patent protection for AI and software innovations is achievable, especially when claims are framed to show a specific technological improvement or practical application. This means drafting patents that go beyond broad concepts and instead highlight how the invention meaningfully solves a concrete technical problem. When your patent practitioner asks “what are the technical problems that you had to solve [patentable!] in order to solve your business/people problem [not patentable on its own]?” you know they’re on the right track: they’re building a foundation that can not only strengthen eligibility of your patent application but also enhance the long-term value of the patent as an investment and monetization asset.

To discuss how to strategically position your technology innovations for stronger patent eligibility, contact a member of Synchrony IP.

Author

  • Timothy D. Snowden is a Certified Patent Practitioner and Certified Licensing Professional with over a decade of experience guiding innovators in building and monetizing high-value patent portfolios. As Founder and Principal of Definitive Patents and a Founding Member of Synchrony IP, he has successfully led patent prosecution and portfolio development for startups, family businesses, and publicly traded companies across industries including medical devices, agriculture, software, and advanced engineering. A magna cum laude graduate of Texas A&M University in Biomedical Engineering, Snowden combines technical expertise with strategic business insight to help entrepreneurs secure patents tightly aligned with commercial goals. He has served as Patent Prosecution Chair at a boutique firm, earned commendation from the Patent Trials and Appeal Board, and continues to shape the profession as a Director with the National Council on Patent Practicum. His mission is to empower innovators worldwide with creative patent strategies that transform inventions into marketable assets.


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