Martin Goetz, Who Received the First Software Patent, Dies at 93

“I knew at some point in time the patent office would recognize” computer 
software, he said. It happened in 1968, helping to ignite the software market.

https://www.nytimes.com/2023/10/21/technology/martin-goetz-dead.html

By Richard Sandomir Oct. 21, 2023


Martin Goetz, who joined the computer industry in its infancy in the mid-1950s 
as a programmer working on Univac mainframes and who later received the first 
U.S. patent for software, died on Oct. 10 at his home in Brighton, Mass. He was 
93.

His daughter Karen Jacobs said the cause was leukemia.

In 1968, nearly a decade after he and several other partners started the 
company Applied Data Research, Mr. Goetz received his patent, for data-sorting 
software for mainframes.

It was major news in the industry: An article in Computerworld magazine bore 
the headline “First Patent Is Issued for Software, Full Implications Are Not 
Known.”

Until then, software had not been viewed as a patentable product, one that was 
bundled into hulking mainframes like those made by IBM. Ms. Jacobs said her 
father had patented his own software so that IBM could not copy it and put it 
on its machines.

“By 1968, I had been involved in arguing about the patentability of software 
for about three years,” Mr. Goetz said in an oral history interview in 2002 for 
the University of Minnesota. “I knew at some point in time the patent office 
would recognize it.”

What Mr. Goetz called his “sorting system” is believed to have been the first 
software product to be sold commercially, and his success at securing a patent 
led him to become a vocal champion of patenting software. The programs that 
instruct computers on what to do, he said, were often as worthy of patents as 
the machines themselves.

The issuance of Mr. Goetz’s patent “helped managers, programmers and lawyers at 
young software firms feel as if they were forming an industry of their own — 
one in which they were creating products that were potentially profitable and 
legally defensible as proprietary inventions,” Gerardo Con Díaz, a professor of 
science and technology studies at the University of California, Davis, wrote in 
the 2019 book “Software Rights: How Patent Law Transformed Software 
Development.”

Robin Feldman, a professor at the University of California College of the Law, 
San Francisco, said by phone, “The world we live in now, with app stores and 
software invented in someone’s garage, is a credit to Goetz’s vision, his 
scientific innovation and dogged persistence.”

Revenues of the worldwide software market were about $610 billion in 2022, 
according to Statista, a data and business intelligence firm.


Mr. Goetz and his company took another step to open the software market in 
April 1969, when Applied Data Research filed an antitrust lawsuit against IBM, 
accusing it of illegally setting a single price for its equipment and software, 
essentially giving away the software free of charge. The lawsuit called for the 
unbundling of the software.

The suit was part of a barrage of legal actions, taken within four months of 
one another, by Applied Data Research, two other companies and the U.S. 
Department of Justice.

That June, IBM agreed to the unbundling.

Applied Data Research nonetheless continued its lawsuit. It was settled in 
August 1970; the terms included an agreement to supply one of its programs, 
Autoflow, to IBM.

“He not only got what he wanted,” Ms. Jacobs said, but “A.D.R. started selling 
more products and opened the doors to the independent software industry.”

In 1976, Mr. Goetz was a government witness in the Justice Department’s case 
against IBM.

“I had the opportunity to tell the world why IBM’s unbundling was a godsend for 
the user community,” he wrote in 2002 in a two-part memoir published in the 
Institute of Electrical and Electronics Engineers’ Annals of the History of 
Computing. “It was a great experience for me and A.D.R.”

Martin Alvin Goetz was born on April 22, 1930, in Brooklyn. His father, Jacob, 
lost his men’s clothing store during the Great Depression and then sold ties on 
street corners until his death in 1943. His mother, Rose (Friedman) Goetz, 
worked at the store and, after her husband’s death, at the Brooklyn Navy Yard 
during World War II.

After his father’s haberdashery went out of business, the family moved six 
times to successively lower-priced apartments. When Marty was 12, he began 
delivering meat for a butcher.

He attended the elite Brooklyn Technical High School. His college education — 
first at Brooklyn College and then at the City College of New York — was broken 
up by his service in the Army with the Second Armored Division in Texas. He 
received a bachelor’s degree in business statistics from City College in 1953 
and a master’s in business administration there eight years later.

After graduating, he worked as a supervisor at A.C. Nielsen, analyzing radio 
ratings. He then answered a newspaper ad for a programmer at Remington Rand’s 
Univac division. Hired, he spent 12 weeks as a trainee, learning how to program 
the Univac, a pioneering mainframe.

“I loved it,” he wrote in the 2002 memoir, “and used to program in my head as I 
drove my car.”

He spent four years at what became Sperry Rand (Remington Rand merged with the 
Sperry Corporation in 1955), working with clients like the pharmaceutical 
manufacturer Parke-Davis and the New York utility Consolidated Edison. He 
created his first sorting program for Con Edison’s billing system.

“I just sort of fell into it,” he said in the oral history. “I really had never 
thought about sorting until there was a need for it within Con Edison.”

He left for a job at IBM’s applied programming group in 1958, but he didn’t 
stay long: He and his partners started Applied Data Research the next year.

The company went public in 1965 and became a leader in the software industry. 
Mr. Goetz was named president in 1984 after 10 years as senior vice president 
and director of the software products division.

“I don’t expect my life to change much,” he told The New York Times after his 
promotion. “I’ve been running 85 percent of the business. The promotion really 
just adds to my responsibilities rather than changing them.”

In 1985, the regional telecommunications company Ameritech acquired Applied 
Data Research for $215 million; a year later, Mr. Goetz moved to a new position 
as the company’s senior vice president and chief technology officer. He stayed 
through early 1988, when he became the chief executive of Syllogy, a software 
company.


He left that position in mid-1989 and became a consultant to software companies 
and venture capital firms, as well as an investor.

Mr. Goetz was inducted into the Mainframe Hall of Fame, which cited him as the 
“father of third-party software.” In 2007, Computerworld named him an “unsung 
innovator” of the computer industry.

In addition to Ms. Jacobs, he is survived by his wife, Norma (Wiener) Goetz; 
another daughter, Ruth Malloy; and five grandchildren.

Mr. Goetz continued to write into his 90s about software patentability and the 
need for patent protection for software. That, Professor Feldman said, was part 
of his legacy.

“He understood how powerful players might abuse the legal system to distort 
innovation, and how the legal system could be used to fight back,” she said. 
“He was an eternal optimist — he truly believed patents could protect real 
innovation and help society.”

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