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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.

Granted 1985ExpiredExpired 2003Owned by Sperry CorpInvented by Terry A. Welch

Original patent title: “High speed data compression and decompression apparatus and method

Plain-English explanation by SahiLast reviewed · June 13, 2026

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

Patent numberUS 4558302
StatusExpired
FieldSoftware & Internet
AssigneeSperry Corp
InventorTerry A. Welch
Filed1983
Granted1985
Expires2003 (expired)
Claims183
Times cited347
LitigationNone on record
Value · $96K$307KModest

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

Representative patent drawing for High speed data compression and decompression apparatus and method (US 4558302)
Representative figure · US 4558302All figures on Google Patents →
High speed data compression an…(Primary claim)softwaretelecommunicationsconsumer electronics

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

01

ZIP file compression

02

GZIP compression

03

PNG image compression

04

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

Filing

Application submitted to the patent office

Publication

Application published, typically 18 months after filing

Grant

Patent officially issued

Expiration

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.

View guide →

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

Modest

$96K$307K

Midpoint $192K · expired or expiring · industry ×1.6

Adjust inputs →

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

ClaimPrior artNon-obviousnessNoveltySpecificationAssigneePatent term

Citations

Patent lineage

Cites earlier patents

1

earlier patents this invention cites as foundations

View prior art →

Cited by later patents

347

later patents that build on this invention

View patents →

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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Last reviewed: June 13, 2026 · PatentBrief is not a law firm and this is not legal advice.