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

A $110 million US verdict against Apple and an appellate order staying a $39 million trademark infringement finding against Amazon were also among the top talking points
Attorneys are watching how AI affects trademark registrations and whether a SCOTUS ruling from last year will have broader free speech implications
Patent lawyers explain why they will be keeping an eye on the implications of a pharma case and on changes at the USPTO in the second half of 2025
The insensitive reaction to a UK politician crying on TV proves we have a long way to go before we can say we are tackling workplace wellbeing
Adrian Percer says he was impressed by the firm’s work on billion-dollar cases as well as its culture
In our latest interview with women IP leaders, Catherine Bonner at Murgitroyd discusses technology, training, and teaching
Developments included an update in the VAR dispute between Ballinno and UEFA, the latest CMS updates, and a swathe of market moves
The LMG Life Sciences Americas Awards is thrilled to present the 2025 shortlist
A new order has brought the total security awarded to a Canadian tech company to $45 million, the highest-ever by an Indian court in an IP case
Andrew Blattman reflects on how IP practices have changed and shares his hopes for increased AI use and better performance on the stock market
Gift this article