Legal Definitions - business method

A business method refers to a specific process, system, or technique used to conduct commercial activities. In the context of patent law, it describes an innovative way a company operates, manages its affairs, or delivers its services, rather than a physical product or machine.

Here are some examples to illustrate this concept:

• Online Subscription Service for Personalized Meal Kits

  Imagine a company that develops a unique algorithm capable of analyzing a customer's dietary preferences, allergies, and cooking skill level. This algorithm then generates highly personalized weekly meal plans and automatically delivers pre-portioned ingredients. The system also learns from customer feedback to refine future recommendations.

  This illustrates a business method because it describes a distinct, systematic process for operating a commercial enterprise (a meal kit delivery service). The innovation lies in the specific algorithm and operational flow for personalization, ordering, and delivery, rather than just the food ingredients themselves.

• Dynamic Pricing Model for Ride-Sharing

  Consider a ride-sharing company that implements a sophisticated system to continuously adjust fare prices in real-time. This system factors in a multitude of variables such as current demand in specific geographic zones, available driver supply, traffic conditions, weather patterns, and even predicted future demand to optimize pricing and driver allocation.

  This is a business method because it outlines a unique operational strategy—a specific "way" of determining pricing and managing supply and demand within a commercial service. The method encompasses the dynamic algorithm and process used to optimize revenue and service availability.

• Automated Customer Service Resolution System

  A large telecommunications company develops an AI-powered system that can diagnose common customer technical issues, access customer account information, and automatically initiate troubleshooting steps or even issue refunds without requiring human intervention. This significantly streamlines their customer support operations.

  This represents a business method as it is a novel and systematic approach to managing a core commercial function: customer service. The method involves the specific integration of AI, data access, and automated decision-making to operate a part of the business more efficiently.