Software: Patents vs Copyright – What’s the Right Protection for You?

July 24, 2025 by Surbhi Rai

Patents protect software innovations; copyrights protect code and design. This guide explains key differences under Indian and global law, with tips for startups and tech businesses to choose the right IP protection.

Choosing the Right IP Protection for Software

Software often constitutes both technical innovation and creative expression—but these two elements are governed by distinct legal regimes. Understanding whether to pursue patents or copyrights, or both, requires a nuanced, legally-informed strategy.

  • Copyright protects the code, UI, and documents that embody your invention.

  • Patent protects the underlying system, algorithm, or technical process implemented by the software.

Making an informed choice impacts enforcement strength, global scalability, and commercial viability.

Legal Comparison: Copyright vs Patent in India 

Feature Software Copyright Software Patent
Protection Scope Source code, design docs, UI, visuals Functional process, system, algorithm
Legal Basis Copyright Act, 1957; Berne Convention Patents Act, 1970 (Section 3(k), 10, 11A)
Requirements Automatic creation; optional registration Novelty, inventive step, industrial application
Duration Life of author + 60 years 20 years from filing
Examination Process Not required; efficient; minimal cost Formal examination (Form 18), slow and procedural
Ideal Use Case Protecting codebase or UI layout Protecting inventive algorithm, technical functionality
Cost & Complexity Low High (drafting + prosecution + claim strategy)

What Can Copyright Protect?

  • Source code & compiled code

  • User interface screenshots & layout designs

  • Documentation, flowcharts, and manuals

  • Non-code assets (e.g., icons, UI elements)

Copyright offers broad but narrow protection—it guards against copying of expression, but not ideas or functional methods.

What Can Be Patented?

Patent protection is available for computer-implemented inventions that:

  • Deliver a technical effect beyond normal software–hardware interaction

  • Solve a technical problem in a novel and non-obvious way

  • Do not fall under exclusions like abstract ideas or business methods (Section 3(k) of the Patents Act)

Examples of Patentable Software:
  • AI‑driven optimization models for network speed or energy efficiency

  • Blockchain verification systems with secure consensus mechanisms

  • IoT‑based control software improving device interoperability or autonomy

Global Landmark Judgments Shaping Software Patent Law

India

While Indian courts have not yet definitively ruled on software patent eligibility, patent examiners consistently reject claims lacking a “technical effect” or those that fall under Section 3(k) of the Patents Act. A recent Federal Court judgment reaffirmed that software per se is unpatentable, unless it demonstrates a novel technical implementation.

Summarizing Principle:

“A computer programme, per se, is unpatentable—but if it yields a technical contribution to hardware, system, or process, it may cross the Section 3(k) exclusion.”

Indications of patentability include:

  • Measurable improvement in device performance (e.g., latency reduction, compression efficiency)

  • Enhanced system interoperability or storage—beyond routine computer execution

United States – Alice Corp. v. CLS Bank (2014)

The U.S. Supreme Court held that claims drawn to an abstract idea, such as financial settlement processes merely implemented on a generic computer, are patent-ineligible. It introduced a two-step test:

  1. Identify whether the claim is directed to an abstract idea.

  2. Determine whether there is an “inventive concept” that transforms it into a patentable invention.

This ruling significantly narrowed the landscape for software patents in the U.S.

DDR Holdings v. Hotels.com (2015)

A Federal Circuit decision that upheld a patent covering a novel website display technology. The invention was patent-eligible because it solved a specific Internet technology problem in a non-conventional way.

European Patent Office – T 1173/97 (“IBM”)

A seminal decision holding that a computer program product may be patentable if it produces a “technical effect” beyond the usual hardware-software interaction. This ruling pivoted away from the “technical contribution” test toward a “whole-content” approach.

Strategy: When to Patent vs Copyright vs Both

When to Use Copyright
  • Protecting code and UI without novelty requirements

  • Rapid enforcement via DMCA takedown notices or civil suits

  • Low-cost protection for open-source, internal tools, or UI designsWhen to Patent

  • Your invention delivers a technical improvement (e.g., enhanced speed, processing efficiency, security)

  • Targeting global markets where patent rights carry commercial weight

  • Facing competitive risk from functional imitation

When to Combine Both
  • File a patent on your system/process innovation

  • Register copyright for code and UI

  • This dual approach maximizes enforceability across jurisdictions

Common Challenges & Best Practices

  1. Avoid abstract idea traps: Just saying “run it on a computer” is insufficient (per Alice).

  2. Formulate claims around technical effect: Use language referring to hardware interaction or system architecture improvements.

  3. Avoid deceptive or overly broad drafting: Narrow your claims to what you can support with data or configurations.

  4. Use comparative charts: Showcase how your system differs from prior art.

  5. Ensure invention is described technically: Especially for India—document hardware components or signals where possible.

Sample Claim Language (India)

“A method executed by a computing device to reduce memory access latency, comprising: a cache-refresh subroutine triggered by predictive access pattern analysis, where access latency is reduced by at least 20% as compared with prior art systems.”

This phrasing targets a technical effect, avoids abstract business terminology, and ties claims to performance improvements.

Conclusion:

Choosing the Right Protection Path

Software IP is multifaceted—code merits protection under copyright, while innovative algorithms and system methods may justify patents. Each modality offers distinct legal tools:

  • Copyright delivers immediate, democratic protection for expressions and creative works.

  • Patents offer strategic rights over the operation and novelty of your invention—but require careful drafting, legal thresholds, and jurisdictional nuances.

Seek specialized IP counsel to help:

  • Assess your invention’s technical merits

  • Compose claims that satisfy eligibility standards

  • Deploy a dual strategy that covers both code and system innovation

FAQs: Software IP Protection in India & Globally

Q1. Can pure app UI design be patented?
👉 Generally no. Copyright protects expression; patents require a technical innovation.

Q2. Does Indian patent law allow AI-based patents?
👉 Yes, if they provide a technical effect or solve a technical problem. Mere algorithms or data processing steps aren’t sufficient.

Q3. If someone rewrites my code but copies my algorithm, what protection?
👉 Copyright won’t help, but a valid patent can if the algorithm meets patent eligibility criteria.

Q4. How do U.S. and Europe differ from India in software patentability?
👉 India rejects non-technical software under Section 3(k). Alice in the U.S. emphasizes abstract ideas, while EPO’s T 1173/97 recognizes software producing “further technical effects” as patentable (epo.org, archive.epo.org, techandmedialaw.com, The Guardian, WIRED).

Q5. Should I register copyright in India?
👉 Not strictly necessary, but registration provides strong evidentiary support in enforcement actions.

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