AFAIK, patent is only protected on the granting territory. If I patent an internet thing in USA, e.g web UI, does it get protected if other company uses it but sets its server outside of USA?
Ask Patents is a question and answer site for people interested in improving and participating in the patent system. It only takes a minute to sign up.Sign up to join this community
Consider an example, a patented software invention in the United States covering a “improving the financial transaction” method and system. A competitor enables users in the United States to download an application onto a mobile device. The user accesses the application to browse through products. The activity of the user is sent to a server located in India. The server processes the information in India and provides product recommendations. The product recommendations would then be available to the user on his device in the United States.
An owner of such a software patent can enforce the patent rights against the alleged infringer in the United states, even though the competitors argument is that part of their systems was outside the jurisdiction of the patents. The patent rights may be enforced even though one of the elements in the claimed system or method is located outside the territory of the patent, provided that the beneficial use of the system occurs within the territory of the patent granted.
For further details please check the link below
Patents are primarily enforced on a country-by-country basis, although Europe has a new European Patent Court starting this year. The general rule (with exceptions below) is that an action only counts as infringement if it occurs within the borders of the country.
Patent attorneys understand this issue and have a few tricks, such as drafting patents that focus on small parts of a system - such as aspects of the user device or display or server side processes - rather than the system as a whole.
One exception to the territorial rule is that many countries, including the US, might still find infringement if only a portion of the activities were outside of the US. A few years ago this happened in a case against Blackberry. In that case, the users were in the US, but the servers were in Canada. The US Court of Appeals held that the patented system was still being infringed in the US because the system was being controlled in the US and US entities were receiving its benefit. I wrote about that case back in 2005: LINK.