The UKIPO Practice Notice published 14 July 2026 confirms this pivot. While part 1 outlines the legal shift, part 2 provides the critical framework for search and examination moving forward: applying the new "three-step approach" in practice. For patent practitioners, this means the battleground for software and AI inventions shifts squarely from Section 1(2) exclusions to Section 3 inventive step.

This article discusses how UKIPO examiners will practically apply this framework for the search and examination of UK patent applications.

Step 1: the "any hardware" threshold

The first step drastically simplifies the initial patentability hurdle. An invention will no longer be excluded from patentability "as such" under Section 1(2) if it involves any technical means.

In practice, the mere recitation of a computer, processor, or network in the claim is sufficient to satisfy the requirement for technical character. The examiner will no longer undertake a complex, multi-stage analysis of the actual contribution to check for excluded subject matter. If the claim utilises hardware, it clears the Section 1(2) exclusion hurdle and proceeds directly to the prior art analysis.

Step 2: segregating technical features 

With the exclusion hurdle cleared, examination moves to identifying the differences between the claimed invention and the closest prior art. Under the new approach, examiners must bifurcate these distinguishing features into two categories:

•    Features that contribute to the technical character of the invention.
•    Features that do not.

Features that fall squarely within historically excluded categories, such as mathematical algorithms, business methods, or pure mental acts, will only be credited if they interact with the technical features to produce a broader technical effect. For example, an artificial neural network (ANN) training method must demonstrate how the data processing directly serves a technical purpose or improves the operation of the system itself.

Step 3: assessing inventive step via Pozzoli 

While the UKIPO has aligned with the EPO’s Comvik approach for identifying which features can support patentability, they have not adopted the EPO's problem-and-solution approach for the final assessment. The UKIPO will continue to use the established Pozzoli framework to determine obviousness under Section 3.

Crucially, when applying Pozzoli, the examiner will only consider the features identified in step 2 that contribute to the technical character. If the only differences over the prior art are non-technical features (such as a purely administrative rule or an abstract mathematical method), those features cannot support an inventive step, and the application will face an obviousness rejection. To survive, the applicant must clearly articulate how the algorithmic or software features provide a tangible, technical solution.

Strategic implications for practice

This harmonisation regarding exclusions provides welcome predictability, but it necessitates a shift in UK prosecution strategy:

• Fewer exclusion objections, more obviousness rejections: expect Section 1(2) objections to become rare for well-drafted claims, replaced almost entirely by rigorous Section 3 inventive step attacks.
• Draft for technical effect: applications must meticulously link algorithmic steps or data processing features to real-world technical outcomes or specific technical implementations.
• The Pozzoli filter: arguments during prosecution must focus on demonstrating that the technical contribution is not obvious to the person skilled in the art. Ensure that the interaction between the software and the underlying hardware is explicitly defined in the specification, so those features are credited before the Pozzoli analysis even begins.

This transition marks the end of the UK’s isolated stance on software exclusions, bringing much-needed alignment for portfolios straddling the UKIPO and the EPO, while preserving the UK's traditional approach to obviousness.

If you have any questions on this subject, or would like assistance with protecting your invention, please contact your usual D Young & Co representative.

Useful link

UKIPO statutory guidance, Search and Examination of UK Patent Applications under the Patents Act 1977 (as amended), published 14 July 2026: dycip.com/ukipo-search-examination