How Computers Compress Data Using Dictionary Building
This 1985 patent describes a method for making computer files smaller by building a dictionary of common data patterns and replacing them with shorter codes.
Original patent title: “High speed data compression and decompression apparatus and method”
This 1985 patent describes a method for making computer files smaller by building a dictionary of common data patterns and replacing them with shorter codes. Granted to Sperry Corp in 1985 with 183 claims and 347 forward citations, and it is now in the public domain.
Coverage
What does this patent actually cover?
This patent details a system that shrinks data, like text or files, making them take up less space. It works by reading through the data and building a 'dictionary' of frequently occurring sequences of characters, called strings. When it finds a string in the data that's already in its dictionary, it replaces that string with a short code. If it finds a string that's not quite in the dictionary but is close, it adds a new, longer string to the dictionary. This new string is made up of the longest matching string it found and the very next character in the data. The system uses a clever 'hashing' technique to quickly search its dictionary for matches. To get the original data back, a separate 'decompressor' uses the same dictionary-building logic to reconstruct the data from the codes.
The gap
What does this patent NOT cover?
- Data compression that doesn't involve building a dictionary of previously seen strings.
- Compression methods that don't use a 'longest match' strategy to find patterns.
- Systems that don't use a hashing function to speed up dictionary lookups.
- Decompression methods that don't reconstruct the dictionary in a similar way to the compressor.
- Compression that doesn't extend a matched string with the next input character to create a new dictionary entry.
These exclusions are unique to PatentBrief — derived from the actual claim language, not patent-office boilerplate.
Key facts
What made this novel
The innovation lies in dynamically building the dictionary on the fly. Instead of needing a pre-defined dictionary, the compressor learns the data's patterns as it goes, creating new dictionary entries from the longest match found plus the next character. This adaptive approach makes it highly effective for a wide variety of data.
The Patent Drawing

Schematic visualization of the patent's claim structure. Hand-drawn diagrams in progress for each landmark patent.
Where you've seen this
Real-world examples
ZIP file compression
GZIP compression
PNG image compression
Lempel-Ziv-Welch (LZW) algorithm implementations
Why it matters
The bigger picture
This patent is a foundational piece for modern data compression techniques. The concepts it lays out, particularly dictionary-based compression using algorithms like Lempel-Ziv (which this patent is related to), are the basis for widely used compression formats like ZIP, GZIP, and PNG images. It enabled more efficient storage and faster transmission of digital information.
Filed
June 20, 1983
Granted
December 10, 1985
Market context
Who's building on this
Companies in this space
The principles described in this patent are fundamental to countless software applications and operating systems today. Major tech companies like Microsoft (for ZIP support in Windows), Apple (for file archiving), and Google (for data handling in Android and ChromeOS) implement variations of these compression techniques. Many open-source libraries also build upon these foundational concepts.
Market impact
This patent, and the Lempel-Ziv family of algorithms it represents, significantly impacted the storage and transmission of digital data. It made it feasible to store larger amounts of information on the limited storage devices of the era and reduced the bandwidth needed for data transfer, paving the way for the internet as we know it.
Claim 1 — Plain English
What this patent covers
This patent details a system that shrinks data, like text or files, making them take up less space. It works by reading through the data and building a 'dictionary' of frequently occurring sequences of characters, called strings. When it finds a string in the data that's already in its dictionary, it replaces that string with a short code. If it finds a string that's not quite in the dictionary but is close, it adds a new, longer string to the dictionary. This new string is made up of the longest matching string it found and the very next character in the data. The system uses a clever 'hashing' technique to quickly search its dictionary for matches. To get the original data back, a separate 'decompressor' uses the same dictionary-building logic to reconstruct the data from the codes.
The clever bit
The innovation lies in dynamically building the dictionary on the fly. Instead of needing a pre-defined dictionary, the compressor learns the data's patterns as it goes, creating new dictionary entries from the longest match found plus the next character. This adaptive approach makes it highly effective for a wide variety of data.
What it does not cover
- Data compression that doesn't involve building a dictionary of previously seen strings.
- Compression methods that don't use a 'longest match' strategy to find patterns.
- Systems that don't use a hashing function to speed up dictionary lookups.
- Decompression methods that don't reconstruct the dictionary in a similar way to the compressor.
- Compression that doesn't extend a matched string with the next input character to create a new dictionary entry.
Patent timeline
Application submitted to the patent office
Application published, typically 18 months after filing
Patent officially issued
Patent enters public domain
This patent is in the public domain
See the Freedom to Build guide — what is free to use, what is not, and how to cite this patent.
PatentBrief Score
Impact Score
Strong
Citation count
40/40
Highly cited
Claim breadth
20/20
Very broad protection
Recency
0/20
Older than 20 years
Assignee scale
0/20
Independent or smaller assigneeassigneeThe entity that owns the patent — usually the inventor's employer or a company.Read more →
PatentBrief Impact Score — based on citation count, claim breadth, recency, and assignee scale. Not a legal assessment.
Heuristic Value Estimate
What this patent might be worth
$96K – $307K
Midpoint $192K · expired or expiring · industry ×1.6
Heuristic only — blends forward/backward citation counts, claim scope, time remaining, litigation history, and CPC-derived industry baseline. Real valuations need a professional appraisal.
Patent Claims
0 independent claims · 1 dependent
Claims are the legal boundaries of the patent. An independent claim stands alone. A dependent claim adds limitations to its parent, narrowing — but not broadening — the scope.
The original legal language
Original claims
183 claims as filed with the patent office.
Concepts involved
Citations
Patent lineage
Cite this patent
Welch, T. A. (1985). How Computers Compress Data Using Dictionary Building (U.S. Patent No. 4,558,302). U.S. Patent and Trademark Office. https://patentbrief.org/patent/us/4558302/lzw-compression
Auto-generated from the patent record. Double-check author order and the issue date against the official USPTO document before submitting.
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Common Questions
Frequently Asked Questions
What does How Computers Compress Data Using Dictionary Building cover?
This 1985 patent describes a method for making computer files smaller by building a dictionary of common data patterns and replacing them with shorter codes.
Who owns patent US 4558302?
Sperry Corp owns this patent, granted in 1985.
When does this patent expire?
This patent has expired and is now in the public domain — anyone can use the invention freely.
What is patent US 4558302 cited by?
This patent has been cited by 347 later patents that build on its ideas.
What problem does this patent solve?
This patent is a foundational piece for modern data compression techniques. The concepts it lays out, particularly dictionary-based compression using algorithms like Lempel-Ziv (which this patent is related to), are the basis for widely used compression formats like ZIP, GZIP, and PNG images. It enabled more efficient storage and faster transmission of digital information.
What does this patent NOT cover?
Data compression that doesn't involve building a dictionary of previously seen strings.
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