JAMES ELLERSON Marketing Consultant Perspective |
Software
Hijack Through Patenting
|
One of the more curious arrangements Australia has negotiated with the US, is that under certain circumstances, software can be patented if it demonstrates novelty and uniqueness. New Zealand also appears to be part of this legislative framework, but most other countries around the world, particularly Europe, have not sanctioned legislation of this type |
Quite
commonly we read in the media that some giant (usually US-based)
corporation is prosecuting an Australian business for infringing
on their registered trademarks. Recent examples include Dick Smith defending his "Tem-Tin" chocolate biscuit brand against the former Australian icon Arnotts, who claimed it was too close in name and design to their "Tim-Tams". Dick Smith eventually settled with Arnott's, but he essentially lost his case, simply because it was going to cost too much to fight. More recently,
an Australian clothing designer and retailer registered the trade
mark"Harry Potter" at least three years before the first
Harry Potter book was launched (the book subsequently made publishing
history). Maybe I am
naive, but doesn't this seem back to front? One company
has now really gone the whole hog and has patented the system
of international e-commerce in Canada, US, New Zealand and approximately
thirty other countries. Canada-based
D.E. Technologies and its principal Edward Pool, state that the
patent describes a broad framework for a software design to electronically
automate and transact paper exchanges involved in international
commerce. The patent has created an outcry in the US and, more recently, in New Zealand where there have been attempts to enforce commercial levies on e-commerce users. Early this
month, thousands of New Zealand businesses received letters demanding
licence fees and transaction royalties up to US$25,000, for conducting
international business on the Internet. The problem reached Australia around mid July when an alert member of the IT community gave details to the mass media, and advised that the patent was only a few days off being sealed in Australia. The US government
previously attempted to block the patent by introducing legislation,
limiting claims to processes that are already widely used. The registering authority, IP Australia, has agreed to accept any challenges to the patent, and has extended the cooling off period allowed under Australian legislation for patent applications. Politically, within Australia, Senator John Tierney has taken up the fight to prevent the registration of this patent or any similar attempts. The matter has been raised through industry parliamentary secretary, Warren Entsch. John Tierney has also stated that the patent represents a serious threat to the nation's e-commerce industry and that he is prepared to seek new laws to protect Australian businesses from any attempt to enact it locally. He also stated that he would be consulting closely with IP Australia for preliminary advice on how to deal with the matter, and that he has found it "quite breathtaking that something that is so broad in its methodology, can actually be patented." The patenting
procedure in Australia begins with the process of filing a provisional
patent application. A patent claim
must also include boundaries of the monopoly sought, which should
distinguish the invention from any existing or precursor models
that may have similarities. Thus a provisional
application needs to theoretically describe the invention, without
the need for a comprehensive and detailed disclosure. There is a
second tier of patent protection for "lesser" inventions
termed an "innovation patent", which need only meet
a lower threshold of inventiveness. Many software
applications are being generated from the Australian pharmacist
community, which meet the criteria of being unique and/or novel.
And this leads
one to speculate how many "dispense" systems have patent
protection. |