Today, there is no question that software can be patented. Thus, entrepreneurs should treat software like any other product when considering patent issues. In internet-based businesses where a product or service is delivered using unique custom software, patent coverage may be particularly important. If the method of doing business is unique, the software that implements it may also be unique, and a patent on the software could make it impractical for others to copy the business concept. The next step is to determine which of the new features or processes might be worth patenting.
Patent law is a business tool for increasing market share and profitability.
If a patent won't achieve those objectives, spend the money on product development and marketing instead. Consumers choose between competing products and services based on many factors, but features and operation are usually important considerations. Patents provide a significant strategic advantage if they protect a consumer-preferred feature. If feature X is patented, the patent owner can prevent competitors from offering the same product. If consumers strongly prefer feature X, the exclusive provider of X will gain market share.