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

The platform’s proactive intellectual property enforcement helps brands spot and kill fakes, so they can focus on growth. Managing IP learns more about the programme
Hire of José María del Valle Escalante to lead the firm’s operations in ‘dynamic’ Catalonia and Aragon regions follows last month’s appointment of a new chief information officer
The London elite have dominated IP litigation wins for the past 10 years, but a recent bombshell AI case could change all that
Two New Hampshire IP boutiques will soon merge to form Secant IP, seeking to scale patent strength while keeping a lean cost model
While the firm lost several litigators this month, Winston & Strawn is betting that its transatlantic merger will strengthen its IP practice
In other news, Ericsson sought a declaratory judgment against Acer and Netflix filed a cease-and-desist letter against ByteDance over AI misuse
As trade secret filings rise due to AI development and economic espionage concerns, firms are relying on proactive counselling to help clients navigate disputes
IP firm leaders share why they remain positive in the face of falling patent applications from US filers, and how they are meeting a rising demand from China
The power of DEI to swing IP pitches is welcome, but why does it have to be left so late?
Mathew Lucas has joined Pearce IP after spending more than 25 years at Qantm IP-owned firm Davies Collison Cave
Gift this article