UK Court of Appeal Decision On Patentability of Software, Business Method & Mental Acts Print E-mail

The long awaited decision from the UK Court of Appeal on the question of patentability of software, business methods and mental acts was published on 27 October 2006.

 

In this brief note, we consider whether the decision will materially effect how patent applications should now be prepared and prosecuted.


In finding that the third test step was not met, the judge commented (emphasis added):

“Mr Macrossan does not suggest he has invented any new kind of hardware.

What he has thought of is an interactive system which will do the job which otherwise would have been done by a solicitor or company formation agent. Questions are asked, the answers incorporated in the draft, and depending on some particular answers, further questions are asked and the answers incorporated. That is his contribution.

...Mr Macrossan’s method is for the very business itself, the business of advising upon and creating appropriate company formation documents.”

Comment

The Court of Appeal has attempted to provide a single four stage test to bring together the various diverging decisions of the EPO and UK courts. As always, the Court attempted to look at the substance of the invention claimed.

 

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It is very telling to note, though, that the Aerotel patent was successful on the basis that the judge found the system as a whole to be new, not merely because it was used for the business of selling ‘phone calls. It is equally telling to note that the system could be implemented using conventional computers. The implication is that the invention was deemed patentable because it could also be implemented by separate hardware units as shown in the diagram above.

In contrast, the judge found that the Macrossan invention related only to a general purpose computer running software carrying out business steps.

Whilst the Court attempts to look at the substance of the invention, our view remains that much depends upon the form of how a case is presented. If the inventive concept can be presented as a “system” with some communication between the units in the “system”, then there is a better chance that the concept will be held patentable than if the concept is only described in terms of software operating on a single general purpose computer. The separate units could, of course, simply be different functional processes and could even be implemented on conventional computers as noted by the judge.

We continue to recommend including descriptions of inventions with diagrams showing separate functional units in patent applications and argument with the patent office even though, in reality, most computer implemented inventions could be implemented either as a program on a “conventional computer” or on new dedicated hardware units. Such an approach may appear trivial, but it could make all the difference in obtaining and defending a patent.

For further information contact

Ian Loveless or Patrick Lloyd