The U.S. Patent and Trademark Office (USPTO) has signaled a more welcoming stance toward patents for artificial intelligence, software, and other high-tech inventions, reversing a trend of strict rejections that had discouraged many innovators. Under Director John A. Squires, who took office in September 2025, the agency has issued new guidance and a precedential decision that broaden the scope of patent-eligible subject matter for these technologies.
Central to the shift is the Appeals Review Panel decision Ex parte Desjardins, issued in late September 2025, which vacated a rejection of machine-learning claims. The panel held that improvements to the functioning of a machine-learning model can qualify as a patent-eligible technological improvement rather than an unpatentable abstract idea. The USPTO followed with examiner guidance directing that claims should not be dismissed at too high a level of generality and that AI systems should be treated as tools used within an invention.
Director Squires has described the USPTO as open to transformative technologies, including AI, quantum computing, cryptocurrency, and medical diagnostics. However, the shift is not a blank check. The new guidance binds patent examiners but not the courts, and the Federal Circuit continues to apply the same eligibility framework. A patent that clears examination can still be challenged in litigation if its claims merely apply generic computing to a familiar idea.
For inventors, the change means the USPTO is now less likely to reject AI, software, and computer-related claims under Section 101 as abstract, especially where the invention improves how a computer or technical system works. Recent guidance narrows the mental process rationale often used to reject machine-learning claims, recognizing that models processing large volumes of data operate beyond human cognition. Inventors previously told an idea was too abstract may want to revisit that decision under the current framework.
Novelty, non-obviousness, and disclosure requirements remain unchanged, so a strong application still depends on careful drafting. Because the courts have not changed course, the specification should clearly describe the specific technical problem solved and how the invention improves the underlying technology to withstand later challenges. The change reaches beyond pure software, touching connected devices, electronics, automotive systems, and diagnostic technologies that rely on data and machine learning.
J. Baron Lesperance, founder of The Patent Baron, PLLC, noted that many good engineering ideas never made it into patent applications due to fear of rejection. "That calculus has changed, and inventors in electronics, automotive tech, and medical devices should take a fresh look," he said. The firm, based in Michigan, helps clients navigate the evolving landscape. The Patent Baron founder and patent attorney J. Baron Lesperance combines legal training with graduate degrees in electrical and computer engineering and industry experience. Inventors curious about the USPTO's evolving stance can schedule a consultation with the firm.
