A Cloud of Uncertainty: Implications of G 1/23 for Software Companies

​
July 29, 2025

On 2 July 2025, the Enlarged Board of Appeal of the European Patent Office (EPO) issued its landmark decision in case G 1/23 (Solar Cell Sealing Materials and Solar Cell Module), a ruling that has sparked a wide range of interpretations, from "nothing to see here", to concerns that in Europe, we may now face an equivalent to the on-sale bar of US patent law. Although G 1/23 relates to chemical compositions, the decision has potential consequences for other technical fields. In this article, we consider implications for the seemingly distant field of computer-implemented inventions.

The Decision

In G 1/23, the Enlarged Board held that a product placed on the market before the filing date or priority date of a European patent application is part of the state of the art, even if its internal structure or composition cannot be analysed and reproduced by a skilled person.

"A product put on the market before the date of filing of a European patent application cannot be excluded from the state of the art… for the sole reason that its composition or internal structure could not be analysed and reproduced by the skilled person before that date."

For chemical compositions, this marks a departure from the stricter interpretation of G 1/92, which had been read by some to require that a product must be both analysable, as well as being reproducible without undue burden, to qualify as prior art. G 1/23 clarifies that public availability alone is sufficient, and that technical features become part of the state of the art if they are accessible, even if not fully understood or replicable.

Notably, while G 1/92 also concerned chemical compositions, the decision has been applied in other technical domains, including software (e.g. T 2440/12) and computer hardware (e.g. T 1169/04), suggesting that the reasoning in G 1/23 may similarly influence interpretation across a broader range of technologies.

Implications for Software

Software companies often deploy their products via the cloud (such as a Software as a Service or "SaaS"), offering services through web interfaces or APIs without disclosing the underlying source code or architecture. Historically, this raised questions: if a competitor couldn't reverse-engineer the internal workings, could the software still be considered prior art?

G 1/23 confirms the previous conclusion under G 1/92 as applied in T2440/12, in which the Board considered that if the skilled person had access to a copy of the software, then that is considered a disclosure of the underlying algorithms. In particular, the Board held that the public sale and use of a software product that implemented the claimed method rendered the method not novel, even though the source code or algorithm was not explicitly disclosed. This is because the software could be executed line-by-line on a virtual machine, and this execution would reveal the method's operations to the user, and also amount to reproducing the method.

Under G 1/23, the Board in T 2440/12 would not need to assess whether the skilled person could reproduce the method, but given that line-by-line execution was found to constitute both determining the operations and reproducing the method, the Board would almost certainly come to the same conclusion. The same reasoning would apply to most instances of locally-installed software, providing the user can run it on a virtual machine, even if encrypted or otherwise obfuscated to prevent reverse-engineering.

Where a software product is publicly accessible through a SaaS platform, the "virtual machine" reasoning no longer applies, because the user does not typically have the same level of control over how the software is executed. It is, therefore, at least possible that G 1/23 would yield a materially different conclusion to G 1/92 in the context of SaaS. In particular, the removal of the reproducibility requirement could in principle lower the bar for what qualifies as being state of the art.

In the absence of any Board of Appeal decisions addressing this point directly, a common sense reading of G 1/23 should be followed, which is that the state of the art contains whichever technical features implemented by the service are discernible during standard use or described in documentation, even if the skilled person cannot replicate exactly how the software works internally, regardless of whether the method could be reproduced without undue burden.

Conclusions

Our analysis shows that fears of G 1/23 introducing an on-sale bar in Europe are overblown. Although the decision could potentially lower the bar for SaaS software becoming part of the state of the art, any change is hypothetical and likely relatively minor. The reality is much closer to "business as usual". Nevertheless, the case has given us an opportunity to re-examine the boundary of the state of the art for software. Some practical consequences are as follows:

  • Patent applicants cannot rely entirely on the opacity of cloud infrastructure to preserve novelty of their system under the European Patent Convention.
  • Any decision as to whether to file a patent or rely on trade secret protection for a SaaS product must account for the reality that once the product has been released or put into service, patenting may no longer be an option
  • Examiners or third parties may cite publicly available software as prior art, even if they cannot replicate its internal mechanisms.

How we can help

EIP's Codiphy team, comprising software-focused patent attorneys and commercial IP solicitors, has deep expertise in all aspects of IP law as applied to software technology, and can offer unparalleled strategic guidance for companies deploying SaaS or other software solutions. For example, we can provide:

  • "Code-to-patent" mapping: helping clients identify which parts of their software are patentable and which are better protected as trade secrets.
  • Disclosure risk analysis: assessing which aspects of a cloud-deployed product may be considered prior art following the decision in G 1/23.
  • Filing strategy advice: advising on when and how to file to preserve novelty while aligning with product release timelines, especially in light of the jurisdictional differences in Europe and the US.
  • Competitor intelligence: monitoring public-facing software and documentation that may now be used as prior art.

The Latest Thought Leadership pieces in the Content Hub

No items found.
Stay in the Know

The Patent Strategist

Get expert insights and the top patent stories delivered straight to your inbox.

Heading
This is some text inside of a div block.
This is some text inside of a div block.

Latest Insights

Showing 0 of 100
Quantum IP Strategy: Own control Points, Not Patent Counts
14 October 2026
In quantum, the strongest portfolios will not be the biggest. Stuart Malcolm sets out six moves for owning the control points the market cannot route around, and the questions investors will ask.
#
Consulting
​
Targeted, Not Transformative: The UKIPO’s Considered Course on SEPs
13 October 2026
Andrew Sharples analyses the UKIPO's response to its SEP consultation, exploring proposed changes to FRAND dispute resolution, SEP transparency and licensing guidance, and what they mean for SEP holders and implementers.
#
Consulting
​
Chinese Companies in European Patent Litigation
30 September 2026
Chinese companies are becoming increasingly active in European patent litigation, both as defendants and as patent owners enforcing their own rights. This article examines the growing role of Europe and the Unified Patent Court (UPC) in global patent disputes, highlighting key cases involving Chinese businesses and the strategic opportunities and risks that come with operating in European markets. It is the first in a series exploring the practical implications of European patent enforcement for Chinese companies.
#
Patenting
​
How to mitigate prior art traps for follow-on pharma patents
27 August 2026
Follow-on patents are increasingly important for pharmaceutical innovators. Learn how new EMA clinical trial disclosure rules create prior art risks and discover practical strategies to protect pharmaceutical IP and maximise patent value.
#
Consulting
​
Chinese companies and the UPC: from enforcement targets to strategic users
13 August 2026
Chinese companies are playing an increasingly significant role in UPC litigation, accounting for around 38% of infringement actions in 2025. While many remain defendants, a growing number are actively using the Unified Patent Court to enforce their own patent rights across Europe. The trend highlights the UPC's rising importance for Chinese businesses operating in sectors such as telecommunications, semiconductors, medical devices and renewable energy, and signals a shift in global patent enforcement strategy.
#
Patenting
​
Evaluating the environmental impact of patent AI.
31 July 2026
AI's environmental impact is rarely out of the headlines, but how does it compare to the benefits it delivers in practice? In this article, Laurence Brown examines the energy use of AI-assisted patent drafting, comparing it with traditional drafting workflows. While measuring AI's true environmental footprint is far from straightforward, the analysis suggests that AI-assisted patent drafting may already be more energy efficient, while delivering significant productivity gains for patent professionals.
#
Patenting
​
UPC appeals after three years: Early indications on appeal success rates
15 July 2026
Three years into the UPC, appeal overturn rates sit at 56% for both substantive and preliminary injunction cases, with Kodak v Fujifilm among the rulings reshaping outcomes on appeal.
#
Litigation
​
The UPC After Three Years: From Experiment to Enforcement Forum
15 July 2026
1,282 cases filed at the UPC in three years: infringement actions have surged while revocation filings stayed flat, easing fears the Court would become a European patent graveyard.
#
Litigation
​
Podcast: Building an AI-Native Law Firm
26 June 2026
On the Technically Legal podcast, EIP partner Laurence Brown discusses how Visser AI is redesigning patent workflows, letting the firm offer fixed fees without trading away speed or quality.
#
Patenting
​
Choosing your SEP battleground: UPC, Germany or UK?
07 June 2026
Choosing the right venue for SEP litigation can significantly influence the outcome of FRAND disputes. This article compares the UPC, German and UK courts, examining their approaches to injunctions, FRAND defences, rate-setting and enforcement. It highlights the strategic advantages of each jurisdiction and explains why many SEP owners are increasingly turning to the UK and UPC as part of their European enforcement strategy.
#
Litigation
​
Synthetic Lethality & AI: IP Strategy in Oncology
26 May 2026
This article explores the resurgence of synthetic lethality in precision oncology, highlighting how AI and machine learning are accelerating the discovery of new therapeutic targets. It also examines growing clinical activity, investment, and the evolving intellectual property challenges shaping this emerging field.
#
Consulting
​
Inside the Visser AI Launch Party
20 May 2026
EIP has officially launched Visser AI®, our hybrid intelligence service for patent drafting and prosecution. Watch the launch film from our event at The Boundary in Shoreditch, and discover how our team of European and US patent attorneys — working with the Patently AI platform , delivers faster, lower-cost work at the EPO, USPTO and beyond.
#
Consulting
​
Protecting Your Startup: Five Intellectual Property Mistakes to Avoid
20 May 2026
Early‑stage startups often focus on product development and fundraising, but overlooking intellectual property (IP) can seriously damage long‑term value. This article explores five common IP mistakes startups make, with a particular focus on patents. It covers the risks of filing patents without professional advice, making public disclosures too early, failing to put enforceable contracts in place with third parties, misunderstanding what patent rights actually provide, and neglecting to develop a clear IP strategy. By highlighting these pitfalls and offering practical guidance, the article helps startups protect their innovations, strengthen their commercial position, and improve their prospects with investors.
#
Consulting
​
Technology, Patents, and Sport
13 May 2026
VAR, goal-line tech, AI 3D player avatars, wearable trackers, the technology reshaping the 2026 World Cup and elite sport rests on a patent system that makes the R&D investment behind it worth taking.
#
Patenting
​
Patents or Trade Secrets? When to Patent in Deep Tech Innovation
11 May 2026
Deep tech companies face unique IP challenges due to long development cycles, high upfront investment, and complex technologies that combine products and processes. This article explores when patents, trade secrets, or a combination of both offer the strongest protection. It explains how factors such as detectability, reverse engineering risk, disclosure to third parties, and employee mobility should shape IP strategy decisions. While patents are often best suited to externally visible or licensable technologies, trade secrets can be highly effective for internal processes and know‑how that deliver performance or cost advantages.
#
Patenting
​