The European Parliament last week approved a Directive to harmonise patent protection for inventions incorporating computer software. A number of amendments to the proposed Directive were required, raising serious doubts as to if and when the proposals will be approved by Member States.
Background
The liberal US policy of granting patents for software and business methods contrasts sharply with the European approach where computer implemented inventions are only patentable if they make a technical contribution to the state of the art. Business Methods, "as such", remain excluded subject matter.
Critics argue the EU approach creates a "brain drain" to the US and fails to stimulate innovation within the computer industry. Supporters of the EU stance fear patentability of computer software favours large businesses over SME’s and maintain that software is best protected by other intellectual property rights such as copyright.