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

Cookies Settings

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

Junior lawyers aren’t unwilling to work hard, as some seniors believe; rather, they are rejecting traditional career advancement models that have limited payoff
Rebekah Gay discusses overcoming self-doubt, supporting the next generation of women lawyers, and how changing client demands are reshaping IP practice
New filing data suggests Germany's grip on UPC litigation remains strong, while Bardehle Pagenberg, Arnold Ruess, Hogan Lovells and Carpmaels notch up notable cases
In 27 years, KASS has expanded to seven countries in southeast Asia and is now eyeing further growth opportunities. Its CEO shares her perspective
Mine Güner discusses bridging law and business, taking the initiative, and why Taylor Swift helped put copyright on the map
Cindy Goh discusses why she launched Cheang & Ariff's IP department, the improving litigation environment in Malaysia and what to consider when using AI
Increased focus on adding patent litigation depth to the firm’s Dallas office was behind the boutique’s most recent hires
IPH's Canadian acquisitions are paying off on paper, but a couple of strong years may not be enough to show that the group's strategy has truly won over the market
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
Gift this article