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 2026

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

Examiner statistics could help patent prosecution practitioners tailor strategies, turning an area of high variability into a potential competitive advantage
The England and Wales High Court’s ruling in Accord v Novartis may not rewrite the law on plausibility, but it does signal a pragmatic approach that could provide greater certainty for life sciences innovators
Firms with established sports relationships and specialised expertise are well positioned to capture the market’s expanded pool of IP work
Gunjan Paharia discusses developing RIA, an AI platform built to draw on decades of institutional knowledge, support junior lawyers, and reshape how legal teams work
A strong Canadian business helped lift profits, but the IP service group's latest results underline the pressure facing its operations in Australia, New Zealand and parts of Asia
Wins in court have been key to the six-year-old firm’s growth, as one of its founders explains
The firm’s co-CEO discusses patent litigation, collaboration with overseas colleagues and the next generation of leaders
Two recent decisions demonstrate the courts’ creativity in cutting-edge IP disputes that tested their jurisdictional powers
Aditi Verma Thakur, managing partner at Aishani Partners, discusses 5 am wake-ups, working with high-performing professionals and staying calm under pressure
After more than three decades at Wilson Sonsini, Ian Edvalson explains why he moved to expand his life sciences transactional practice
Gift this article