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Business-method patents are a class of patents and one of many legal aspects of business. There is a sustained debate as to what extent such patents should be granted. They may be constituted very important assets of some Internet-related companies.
Background
In general, any invention is eligible for patent protection if passes the tests of novelty, inventive step (or non-obviousness) and industrial application (or utility). (See also: patentability)
Legal situation
The legal situation differs from legislation to legislation.
Canada
Pure business methods cannot be patented in Canada because of its pre-constitutional (in 1982) subordination to British Common Law. Article 1(2)(c) of the Patent Law of 1977 “It is hereby declared that the following (among other things) are not inventions for the purposes of this Act, that is to say, anything which consists of …. a scheme, rule or method for performing a mental act, playing a game or doing business, or a program for a computer;”
European Patent Convention
"Schemes, rule and methods for (...) doing business", "as such", or in other words business methods as such, are not regarded as being inventions and are not patentable under the European Patent Convention (Article 52(2)(c) and (3)).
Japan
Patents are not issued solely for business methods. That business method must contain a technical aspect that is both tangible and real.
United States
In State Street Bank v. Signature Financial Group, Inc., (47 USPQ 2d 1596 (CAFC 1998)), the court upheld the fact that a business process patent may be granted on the same basis as any other invention. The court further confirmed this principle with AT&T Corporation v. Excel Communications, Inc., (50 USPQ 2d 1447 (Fed. Cir. 1999)). These two cases eliminated the business process exception from the US patent common law.
As of 2001, the USPTO has required that business method inventions must apply, involve, use or advance the "technological arts". This is based on an unpublished decision of the US board of appeals and interferences, Ex Parte Bowman, 61 USPQ2d 1665, 1671 (Bd Pat. App. & Inter. 2001). This requirement can be met by merely requiring that the invention be carried out on a computer.
Classification
In the 8th edition of the International Patent Classification (IPC), which will enter into force on January 1, 2006, a special subclass has been created for business methods: "G06Q". In the previous editions, business methods were classified in "G06F17/60". This is purely a classification matter and will not change the patent laws however.
See also
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