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The old rules
If you’ve ever tried to patent AI-related technology in the UK, you’ll know it hasn’t been straightforward. UK patent law, set out in the Patents Act 1977 and aligned with the European Patent Convention, excludes certain things from patent protection, including “mathematical methods” and “computer programs as such”. The idea behind these exclusions is to prevent anyone from monopolising abstract ideas. But in practice, this has created real challenges for AI businesses.
Since 2006, UK courts have applied a test that made it difficult to secure patents for software and AI-related inventions. Neural networks - the technology behind most modern machine learning - were often refused protection on the basis that they were merely “mathematical methods” or “computer programs”. For AI businesses, this meant fewer patentable assets to leverage in investment rounds, licensing deals and commercial negotiations.
What’s changed?
A recent UK Supreme Court decision has shifted the landscape. In Emotional Perception AI Ltd v Comptroller [2026] UKSC 3, the Court took a fresh look at how AI inventions should be assessed for patent eligibility.
The case involved a patent application for an artificial neural network (ANN) - essentially a computer system designed to mimic how the human brain processes information. ANNs are the building blocks of much of AI technology today, including generative AI tools like ChatGPT. The UK Intellectual Property Office had refused the patent, treating it as just a “computer program”. But, the Supreme Court disagreed.
What does this mean for your business?
If you’re developing AI tools or software, this decision could open new commercial doors. Technology that was previously difficult to protect may now be patentable - and patents are assets that can be licensed, used to attract investment, or leveraged in partnerships and M&A transactions. It’s worth considering how this shift fits into your broader commercial strategy.
Patents aren’t just about protection - they’re commercial assets. A granted patent (or even a pending application) can strengthen your position when raising investment, negotiating partnerships, or licensing your technology. That said, patents require public disclosure, so they’re not always the right choice - particularly where secrecy is key to your competitive edge. For some AI innovations, trade secrets, know-how or confidentiality agreements may be more appropriate. The right approach depends on your technology and commercial strategy.
We’re also seeing a broader trend towards collaborative patent licensing in the AI space. Initiatives like the Shared AI License Foundation (SAIL) allow companies to cross-license AI-related patents on royalty-free terms, reducing friction and enabling faster innovation. Participating in these frameworks - or structuring your own licensing arrangements - requires careful legal input to ensure the commercial terms work for your business.
If you’d like to discuss how to position your AI innovations for investment, structure a licensing arrangement, or build IP considerations into a partnership or transaction, get in touch with Keith Dunn, Eileen McKendry-Gray, Patrick Murray or our Commercial & Technology team.
