Key Takeaways

  • An internet patent protects innovations that operate online, such as software, business methods, e-commerce systems, and network communication technologies.
  • These patents are valuable because they safeguard intellectual property in fast-growing sectors like the Internet of Things (IoT), e-commerce, and cloud computing.
  • Patentability requires more than abstract ideas; inventions must demonstrate practical application beyond algorithms or math.
  • Different countries have varying approaches to internet patent laws, especially on data privacy, online commerce, and jurisdiction.
  • Geolocation tools now allow territorial restrictions, but compliance with overlapping national laws remains complex.
  • Examples of influential internet patents include Amazon’s “one-click” checkout, Google’s PageRank, and patents related to streaming and online advertising.
  • Enforcement of internet patents can be challenging, given cross-border infringement and differing international laws.

An internet patent is a patent for businesses that are located on the internet. The Internet of Things (IoT) has been going on for quite some time. Many people are only beginning to see this. Intellectual property depends upon their internet-based businesses. Some internet business methods or software may meet the requirements for a patent. A patent is not always the best way to protect intellectual property.

Patents and the Internet

There are some events where you might not be able to qualify, or where a patent will cost much more money, time, and trouble than it is worth to get. There are many patents that were made for inventions having to do with the internet. Some patents that relate to the internet in some way are:

  • System organization
  • Retrieval and data storage
  • Information processing
  • Electrical communication
  • Cryptography

Software patents are very common patents that are related to the internet. Copyright law traditionally protects software. Patent protection can also be given to computer software. Patent protection is preferred by software developers because patents can protect more than copyrights can. Software must be able to go beyond solving a math problem to receive patent protection, because abstract ideas and algorithms are not patentable, since they are viewed as laws of nature.

Being able to file a patent in what is considered a profitable industry can be very valuable. Having protection on your IP in the Internet of Things can be complicated and bring about lawsuits on patent infringement. Utility patents can become overlapped when devices from the Internet of Things from various manufacturers work together to be able to inter-operate.

Mandy J. Song, Ph.D. and Finnegan partner Kenie Ho said, “even a small IoT system could have thousands of active patents covering a myriad of features,” referring to all the components each device contains. Internet activities will not be governed by a single country's legal regime or single internet-specific legal regime.

Notable Internet Patent Examples

Some of the most influential internet patents have shaped the way users interact with the online world. For example, Amazon’s “one-click” purchase patent simplified e-commerce transactions by allowing customers to complete purchases with a single action, significantly influencing online shopping models. Google’s PageRank patent revolutionized search engines by ranking web pages based on relevance and linking structure, setting the foundation for modern internet navigation.

Other key patents include:

  • Streaming technologies, which protect methods of delivering audio and video over the internet.
  • Targeted advertising systems, covering algorithms that display ads based on user behavior.
  • Payment gateway security patents, which secure online financial transactions.

These examples highlight how internet patents can create competitive advantages and raise barriers for market entry, making them powerful tools for companies operating online.

Internet Patent Laws in Other Countries

Countries want to keep a few of their country-specific national laws, even though they might borrow some uniform laws. Nations and people all over the world are diverse and have different views on all kinds of matters, such as internet gambling. Online gambling is allowed in some countries and outlawed in other countries. Countries also have varying requirements for protection and privacy of personal data. Countries will most likely always have varying definitions for national laws on personal data collection, privacy, and online gambling.

Compliance with a variety of countries' laws having to do with the internet is not negotiable. This is for those in private parties who want to participate in internet activities legally and transnationally . Those who act on the internet may have laws raised against them, based on which country would place laws against them. Many times the network is common in certain countries, which is why internet laws in many of these countries are not followed.

Enforcement and Ownership Challenges

One of the ongoing debates around internet patents is the issue of ownership and enforcement across borders. The internet does not belong to a single entity, and its infrastructure is a mix of public, private, and international systems. This makes it difficult to determine which jurisdiction applies when disputes arise.

For example, a company in one country may hold a valid internet patent, but enforcing it against infringers abroad requires navigating local patent laws, treaties, and cooperation agreements. Additionally, some nations resist granting patents for internet-based business methods, considering them too abstract. This divergence leads to uncertainty for global businesses.

Patent owners must also contend with non-practicing entities (NPEs) or “patent trolls,” who may exploit broad internet patents to pursue litigation without actually producing goods or services. These enforcement challenges emphasize the importance of strategic filing and ongoing monitoring of competitors.

Internet Patents and Geolocation Changes

Actors cannot limit their online activity in a territorial way due to the network's technical characteristics. It's also hard to identify where certain events and parties happen on the internet, like consumers and where they eat. As geoblocking and geolocation tools have been made, limiting access based on territories and identifying locations has become practical. Geolocation tools have become more popular as evading geolocation has increased.

There no longer seems to be any logic to the argument that activity cannot be limited geographically, because we have no knowledge of where our content is consumed or accessed. In certain countries, agencies and courts have allowed internet actors to hire solutions of low tech value to use as territorial barriers, such as specific language versions and disclaimers. There are many applicable laws that are troubling due to the amount in existence. Personal data protection and data privacy are of utmost importance in these matters.

National data protection laws will apply to any internet actor who has users and customers. These laws differ for each country. In EU (European Union) countries, despite having combined their personal data protection laws, may have regulations specific to certain countries. To partake in business and other activities transnationally, complying with all national data protection laws will be of utmost importance. A patent owner who achieves a patent where all internet laws from all countries are followed at the same time, this person would own a huge percentage of the internet.

Emerging Trends in Internet Patents

As technology evolves, so does the scope of internet patents. Current trends include:

  • Artificial Intelligence and Machine Learning: Patents cover algorithms that personalize user experiences, such as recommendation engines.
  • Blockchain and Decentralized Systems: Companies are filing patents for secure digital transactions and distributed ledger systems.
  • Cloud Computing and SaaS Models: Patents increasingly focus on methods of delivering scalable online services.
  • IoT Connectivity: Patents now extend to interoperability between smart devices, sensors, and networks.

These areas reflect where businesses see growth opportunities and competitive advantages. However, they also raise new legal questions, such as how to balance innovation with overbroad patent claims that could stifle technological progress.

Frequently Asked Questions

1. What qualifies as an internet patent?

An internet patent protects inventions that enable online processes, such as e-commerce, digital communication, or cloud-based services. It must show more than an abstract idea and have a practical application.

2. Can I patent a website or app?

You cannot patent a website design alone, but you may patent the underlying methods, processes, or software features if they meet patentability requirements.

3. How do other countries treat internet patents?

Treatment varies widely. The U.S. and Japan recognize some business method patents, while the EU is stricter, often requiring a technical effect beyond standard software.

4. Why are internet patents controversial?

They are debated because overly broad claims can block competition, while enforcement is difficult given the global and decentralized nature of the internet.

5. What industries benefit most from internet patents?

E-commerce, fintech, online advertising, streaming services, and IoT companies benefit most, as patents provide protection in highly competitive digital markets.

If you need help with an internet patent, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.