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ARTICLE · 30 SEPTEMBER 2019

A lost opportunity? Full Federal Court holds that mere abstract ideas using generic computer technology lack patentability

Corrs Chambers Westgarth
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This decision leaves companies in an uncertain position about their ability to obtain patents to protect key software.

AustraliaIntellectual Property

A rare five member bench of the Full Court of the Federal Court delivered its much anticipated decision in Encompass Corporation Pty Ltd v InfoTrack Pty Ltd [2019] FCAFC 161.

Although the Full Court found that the two computer-implemented inventions lacked patentable subject matter, the failed appeal does not spell the demise of computer-implemented inventions generally. Rather, the Court re-affirmed that implementation of a 'mere scheme' or 'abstract idea' by 'generic software' will not transform an alleged invention into patentable subject matter.

It was, however, a lost opportunity for the Court to take the matter further and set out definitively what is, and is not, patentable subject matter in computer-implemented inventions. The Court's decision leaves companies in an uncertain position when assessing their ability to obtain patents to protect key software developments.

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