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

James Hill, general counsel at Norwich City FC, reveals how he balances fan engagement with brand enforcement, and when he calls on IP firms for advice
In the second of a two-part article, Gabrielle Faure-André and Stéphanie Garçon at Santarelli unpick EPO, UPC and French case law to assess the importance of clinical development timelines in inventive step analyses
Public figures are turning to trademark protection to combat the threat of AI deepfakes and are monetising their brand through licensing deals, a trend that law firms are keen to capitalise on
News of Avanci Video signing its first video licence and a win for patent innovators in Australia were also among the top talking points
Tom Melsheimer, part of a nine-partner team to join King & Spalding from Winston & Strawn, says the move reflects Texas’s appeal as a venue for high-stakes patent litigation
AI patents and dairy trademarks are at the centre of two judgments to be handed down next week
Jennifer Che explains how taking on the managing director role at her firm has offered a new perspective, and why Hong Kong is seeing a life sciences boom
AG Barr acquires drinks makers Fentimans and Frobishers, in deals worth more than £50m in total
Tarun Khurana at Khurana & Khurana says corporates must take the lead if patent filing activity is to truly translate into innovation
Michael Moore, head of legal at Glean Technologies, discusses how in-house IP teams can use AI while protecting enforceability
Gift this article