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It is an established principle applied by the European and German patent authorities that, under certain circumstances, functional features may be used for the characterization of subject matter in patent claims (see eg EPO in T 68/85; German Federal Supreme Court in "Trioxan"). Functional features have always been essential for obtaining meaningful protection for biotechnological inventions. Recently, an increasing trend towards a more general use of this type of feature for obtaining broad patent protection can be observed, specifically where patent protection for pharmaceutical compounds and medical uses is sought. Applicants should, however, be aware of the requirements to be met for the successful use of functional features in patent claims.

On December 3 1993, the European Union Authorities filed their first proposal of Regulation and Directive relevant to the legal protection of designs. On October 28 1998, Directive 98/71/CE was eventually published, to be validated on a domestic basis in each member state by October 28 2001, and which consists of 21 Whereas... and of 20 sections. This demonstrates though it is widely known anyway how many difficulties there are and remain to be overcome to harmonize design laws which vary throughout the European Union.

The United States Court of Appeals for the Federal Circuit has been active this summer in many areas of patent law. Some of its most noteworthy holdings are briefly reviewed below:

The Japan Supreme Court handed down the first decision concerning standards to be used in recognizing the gist of a claimed invention in the landmark March 1991 case involving the Japanese Patent Office (JPO) and the German company Boehringer-Mannheim.

By means of Act 50/1998, dated December 30, on Tax, Administrative and Social Measures, which develops and executes General State Budgets for 1999, the Spanish Government has amended both Act 11/1986, dated March 20, on patents and utility models and Act 32/1988, dated November 10, which deals with trade marks. The object of these amendments is, first of all, to establish time limits for procedures filed before the Spanish Trade Marks and Patents Office. Secondly, a new Article 87 is added to Act 32/1988, on trade marks. This article establishes the national rules concerning the transformation in a national trade mark of an international trade mark registered in Spain by virtue of the Madrid Protocol, and which has been cancelled by virtue of Article 6.4 of the Protocol.

The German Federal Supreme Court recently issued a decision on colour marks (Farbmarke gelb/schwarz, December 10 1998), which has ended a controversy in Germany. According to this decision, non-contoured definite colours or compositions of colours are registrable as trade marks.

Germany overturns colour practice

Recent patent court decisions and also rules of patent practice issued by the US Patent and Trademark Office (PTO) are changing how the wide spectrum of entities that use computers to conduct fiscal businesses will operate them in the United States, because they now can obtain and assert reliable patent rights against competitors. This legal landscape is evolving from court decisions spanning more than 20 years that define a patent-based framework within which computer technology in particular, computer software can be protected. Software owners have sought such protection because of: (a) recognized limitations in copyrights which protect expression (ie literal lines of computer code), but not ideas (ie the constructs software implement); (b) the substantial financial value software gained during the same decades; and (c) the continuing growth of the businesses that are dependent on computers. It is estimated that by 2001 Internet commerce in the United States will be worth $200 billion. Initially patent protection was not sought for software because of the amount of time involved in obtaining patent rights and also the fact that the Supreme Court (the US court of last resort) has consistently held that laws of nature, natural phenomena, and abstract ideas are unpatentable subject matter. Software owners perceived tremendous commercial benefits from patent rights, and these perceptions sustained efforts to seek enforceable frameworks for obtaining reliable patent rights.

After more than eight years of fruitful activity, Mr Ladislav Jakl, president of the Czech Industrial Property Office, decided to resign from his duties and leave the Office on December 31 1998.

When the Trade Marks Act came into force in October 1994, the scope of what constituted a registrable trade mark was broadened.