Australia: Clarification on software/business method patents

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Australia: Clarification on software/business method patents

The Australian Appeal Court has recently clarified the position of software and business method patents in Australia. In Commissioner of Patents v RPL Central Pty Ltd, the Full Federal Court again aligned Australia with a US-centric position akin to that set out in the Alice Corporation case.

The court set out the following statements of principle: 1. "A technical innovation is patentable, a business innovation is not", and 2. "Simply putting a business method or scheme into a computer is not patentable unless there is an invention in the way in which the computer carries out the scheme or method".

In a clear statement, the court found that any standard operation of a generic computer with generic software to implement a business method is unlikely to result in the business method being patentable.

The court's pronouncement amounts to the creation of a judicial exception to patentability, in line with the position in the United States and Europe. Determining what amounts to the generic operation of a computer is likely to prove difficult in practice and lead to some uncertainty in Australian decisions. It also means that many extremely innovative business methods may no longer be patentable in Australia. It is also likely that our courts will continue to look to the United States and Europe in deciding the limits of business method patents.

treolar.jpg

Peter Treloar


Shelston IPLevel 21, 60 Margaret StreetSydney NSW 2000, AustraliaTel: +61 2 9777 1111Fax: +61 2 9241 4666email@shelstonip.comwww.shelstonip.com

more from across site and SHARED ros bottom lb

More from across our site

Michael Conway and Flora Hachemi of Haseltine Lake Kempner consider what brand owners and prospective trademark applicants need to know in the wake of the UKIPO’s SkyKick guidance
Our exclusive survey reveals German firms are failing to manage costs and develop young talent, but some counsel believe this is happening behind the scenes
Ulla Loreth, IP counsel at Puma in Germany, says logistics intermediaries can no longer turn a blind eye after ‘game-changing’ judgment in the fight against counterfeits
Ahmed Hankawi joins us for our ‘Five minutes with’ series to discuss his approach to cases, and why he admires lawyers who help develop the next generation
Mercedes Bullrich looks back on her career and explains how a life shaped by fresh starts will help her develop a new firm
AI
Leaders at four firms share their hiring approach, including whether AI knowledge is a must-have for new staff
McKool Smith and Licks Attorneys are acting in the dispute, which alleges infringement of patents covering video-related technologies
Legacy firm Allen & Overy agreed a high-profile tie-up with US firm Shearman & Sterling in May last year
News of Verizon settling its lawsuit with Headwater Research and a copyright setback for AI firm Perplexity at a New York court were also among the top talking points
IPH, which owns several IP businesses in the APAC and Canada, reported a 16.5% increase in revenue and 13% jump in profit after tax
Gift this article