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).
Despite the fact that the Australian trademark was registered
first and that the product is presented in a completely different
way, the Australian organisation has ended up in court with the
better known Harry Potter trademark stating that it is trying
to avoid confusion by having the Australian patent quashed (or
pay a substantial royalty!)
Maybe I am
naive, but doesn't this seem back to front?
Similar problems are emerging with patents.
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.
The patent is almost registered in Australia.
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.
And further, that they own the patent rights.
This is unbelievably the system already used by thousands of businesses,
that is given the generic name of e-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.
Edward Pool is quoted as recently stating that he was "entitled
to a royalty on international transactions done computer to computer.
Those New Zealander's are using our technology, for heaven's sake,
and they're going to pay or they're going to stop violating the
505284 patent."
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.
This damage control failed.
Edward Pool succeeded in registering a US patent for e-commerce
at the end of 2002.
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 is a monopoly right granted in return for the full disclosure
by the patentee to the public by way of a patent specification
of an invention, disclosing at least one way on how to "perform"
the invention.
The disclosure must clearly identify the features, supported by
a detailed description, diagrams etc. that would enable a technical
person in the same technological field to actually create the
invention.
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.
The patent monopoly right is conferred in Australia only at the
date of filing a complete patent application (not a provisional
patent application) that includes a complete specification.
Thus a provisional
application needs to theoretically describe the invention, without
the need for a comprehensive and detailed disclosure.
However a fully detailed provisional application will establish
an early "priority date" for the invention to be protected.
The full application for standard patent protection has to be
submitted within twelve months of filing a provisional application.
There is a
second tier of patent protection for "lesser" inventions
termed an "innovation patent", which need only meet
a lower threshold of inventiveness.
These patents were devised to protect "smaller inventions"
and improvements that were not previously able to be protected.
Innovation patents are granted after a formalities check only,
but are unable to be enforced until a substantive check has been
made as to novelty.
After a successful check, the innovation patent is "certified"
and can be enforced.
An innovation patent has an eight year term of protection compared
to twenty years for a standard patent, and the innovation patent
is only useful for products of short market life.
This can include software, given the rapid rate of change in IT
applications.
Many software
applications are being generated from the Australian pharmacist
community, which meet the criteria of being unique and/or novel.
To prevent predatory global companies from cashing in on the hard
work of these pharmacists a new advisor may need to be added to
the range of specialists already established--that of patent attorney.
And this leads
one to speculate how many "dispense" systems have patent
protection.
The only one I am aware of is the system for remote dispensing
that was written up in the last edition of this publication.
Does your situation need reviewing?
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