Software Patents – IPONZ explanatory note

IPONZ has published a draft explanatory note on the patentability of computer programs based on the Patents Bill (as currently drafted). Fortunately, the good people at IPONZ have not had the same difficulty in understanding the clear exclusion of computer programs that a small number of patent attorneys seem to have had.

They also appear to have sifted through several submissions from patent attorneys that sought to relitigate the Bill itself in amusingly emotive terms, rather than just comment on the guidelines as requested.

IPONZ has provided a clear, concise note. Some extracts:

31. Many of the interested parties who made submissions on the draft guidelines argued that the Commerce Select Committee intended that so-called “embedded” computer programs should remain patentable, with other “non-embedded” computer programs being excluded from patent protection. However, it is clear from the Committee’s report that the Committee rejected the idea of making a distinction between “embedded” and “non-embedded” computer programs in this way.

32. Instead, the Committee decided to recommend a simple exclusion, as this would exclude computer programs from patent protection, but would not prevent the grant of patents for inventions involving “embedded”computer programs. It seems clear from these comments that the Committee did not intend that the mere fact that an invention involves a computer program should be sufficient, in itself, to make an invention unpatentable.

That is exactly right. For whatever reason, some patent attorneys seemed to have great difficulty with that simple proposition, and much of the FUD being put out by those looking to overturn the software patent exclusion focused on the apparent “confusion” surrounding embedded software. The explanatory note succinctly summarises the Committee’s clear recommendation.

33. On this basis, computer programs are not patentable under clause 15(3A), whether or not they are “embedded” programs. However, inventions that involve a computer program (as opposed to inventions which are a computer program) are likely to fall outside the scope of clause 15(3A) and be patentable.

Which is how other patentable inventions, containing non-patentable constituent parts, are treated.

34. … The exclusion cannot be avoided by claiming the program in combination with conventional computing hardware. Such claims are effectively claims to the computer program and allowing them would circumvent the purpose of the exclusion.

35. For example, claims to the computer program when running on a suitable computer, or claims to the program recorded on a carrier such as a disk or memory card would not be allowable. On this basis claims of the form “a computer program product comprising computer program code adapted, when loaded on a computer, to do X” (so-called Beauregard claims) will be rejected.

This is good. There can be a lot of nonsense to try to avoid exclusions. By definition, all software runs on a computer, so a claim that the invention is the program “when running” should hardly be expected to avoid a computer program exclusion.

One thorny issue on the periphery of the software patent debate is business method patents. They are really a separate issue (controversy). The note makes a only few comments on them, including:

41. Where the contribution is assessed as a method or process that falls outside the computer program exclusion, claims to a computer program that would cause a suitable computer to carry out the method may be allowable.

The progress of the Bill remains understandably low priority, and its future is also somewhat uncertain given that a new Minister will take over the Bill from Simon Power. However MPs at last month’s NetHui said that Simon Power had that week advised that the software exclusion would remain (confirming earlier statements).

Software patents and venture capital

An argument often made against banning software patents is that doing so might discourage venture capitalists from investing in the industry. However, actual comments by VCs, as well as evidence from the New Zealand IT industry supports banning software patents.

Now another prominent US venture capitalist, Fred Wilson, has spoken out against software patents in unequivocal terms:

I believe that software patents should not exist. They are a tax on innovation. And software is closer to media than it is to hardware. Patenting software is like patenting music.

This aligns with the Government’s stated position (adopting the unanimous Commerce Committee recommendations) that software patents “stifle innovation and restrict competition”.

It may take a while yet for the US to overhaul its patent system and the status of software patents in it is unknown, but it appears that the New Zealand reform (if adopted) will provide a far-sighted alignment with industry and venture capitalist views.

The software patent affair

Law firm Chapman Tripp has published an article criticising the Government’s decision to exclude software from patentability. While the article makes some valid points, it does not deal with some points fairly.

The article claims:

The [software patent] exclusion was the product of intense and successful lobbying by members of the “free and open source” software movement… In its April 2010 report to Parliament on the Patents Bill, the Commerce Select Committee acknowledged that the free software movement had convinced it that computer programs should be excluded from patentability.

I’m sure this assertion of mighty lobbying power (the ability to sway an all-party, unanimous recommendation no less) would be flattering to any professional lobbyist, let alone FOSS supporters – if only it were true (it is not evidenced in the Commerce Committee report). A range of entities made submissions against software patents, including the statutorily independent University of Otago, InternetNZ, a number of small businesses (and my independent self, I modestly add). There were also submissions the other way, though interestingly the most submissions in favour of retaining software patents were from patent attorney law firms. It is also notable that other organisations including NZICT, which is a strong supporter of software patents and engaged in heavy after-the-event lobbying, did not make any submissions on the issue.

The article adds the comment:

The Committee said that “software patents can stifle innovation and competition, and can be granted for trivial or existing techniques”. The Committee provided no analysis or data to support that proposition.

The fact that a Committee “provided no analysis or data” to support its recommendations is hardly noteworthy – that is not it’s job. Submitters provide analysis and data to the Committee, not the other way around. The material in support of the proposition is in the submissions.

The article sets up an unfair straw-man argument:

Free software proponents reckon that software should be free and, as a result, they generally oppose intellectual property rights. They say that IP rights lock away creativity and technology behind pay-walls which smother innovation. Most authors, inventors and entrepreneurs take the opposite view.

I don’t claim to know what “free software proponents’” views on all manner of IP rights are, but when it comes to software patents in New Zealand, the evidence strongly suggests that the “authors, inventors and entrepreneurs” of software (FOSS or not) are opposed to software patents (see my posts here and here). This includes major companies, including NZ’s biggest software exporter Orion Health (see Orion Health backs moves to block patents).

While the New Zealand Computer Society poll showing 81% member support for the exclusion is not scientific, it is at least indicative. In any case, opponents of the new law (mainly law firms) have consistently asserted a high level of opposition to the exclusion without any evidence to support that view.

The article leads to the warning:

If New Zealand enacted an outright ban on computer-implemented inventions we would be breaking international law. … Article 27(1) of TRIPs says that WTO members must make patents available for inventions “without discrimination as to… the field of technology…”.

The authors rightly point out that breaching TRIPs could result in legal action against the Government by another country. However, that conclusion is premised on the basis that software is an “invention”. A number of processes and outcomes are not recognised as inventions for the purpose of patent law in different countries, including mathematical algorithms and business methods. The question of whether software is (or should be) an invention was commented on by a Comptroller-General of the UK Patent Office:

Some have argued that the TRIPS agreement requires us to grant patents for software because it says “patents shall be available for any inventions … in all fields of technology, provided they are…..capable of industrial application”. However, it depends on how you interpret these words.

Is a piece of pure software an invention? European law says it isn’t.

The New Zealand Bill does not say that a computer program is an invention that is not patentable. It says, quite differently, that a computer program is “not a patentable invention”, along with human beings, surgical methods, etc.

Article 27 has reportedly rarely been tested (twice in 17 years), and never in relation to software. The risk of possibly receiving a complaint under a provision (untested) of a multilateral agreement is not new. The New Zealand Law Society notes this in its submission on the Patents Bill (which does not address software patents):

The proposal to exclude plant varieties under [the new Act] is because New Zealand has been in technical breach of the 1978 Union for the Protection of New Varieties of Plants (UPOV) treaty since it acceded to it in November 1981.

What’s 30 years of technical breach between friends? Therefore, in fairness I would add a “third way” of dealing with the software patent exclusion: leave it as it is, and see how it goes (which is, after all, what the local industry appears to want). As I wrote last year, “Pressure to conform with international norms (if one emerges) and trading partner requirements may force a change down the track, but the New Zealand decision was born of widely supported policy …”

If the ban on software patents as it currently stands does not make it into law (which is a possibility, despite clear statements from the Minister of Commerce that it will), it won’t be the end of the world. In fact, it will be the status quo. There are pro’s and con’s to software patents, and the authors are quite right that New Zealand will be going out on a limb by excluding them. The law can be changed again if need be. In the meantime, I refer again (unashamed self-cite) to my article covering the other, and much more popular, ways of protecting and commercialising software.

Copyright update

Copyright in compilations

Barrister Toby Futter recently wrote a handy update on originality, authorship, and copyright in compilations. He discusses the en banc Australian Federal Court appeal of last year’s Telstra ruling that there was no copyright in a White Pages or Yellow Pages telephone directory (see my post A Feisty copyright ruling on the original decision). The Court followed the Australian High Court IceTV decision and dismissed the appeal, meaning that the original finding of no copyright stands. As Toby says:

The big question in New Zealand is whether that approach will be adopted here, and, if so, in what form.

We may find out this year – as his article notes, Toby is involved in two cases currently before the High Court in which copyright in compilations is at issue.

My colleague Stuart Bradshaw also commented on the Telsra appeal here:

“‘The case is a reminder that copyright law does not protect everything you can’t put under lock and key and unless such a law comes along, and is actually enforceable, businesses will need to figure out how to add value to their directories and data-collections that cannot be duplicated.”

Aussie ISP liability

Another Federal Court decision has, in a 2-1 majority, dismissed the film industry’s appeal against last year’s ruling that Aussue ISP iiNet was liable for copyright infringment on its network. While the decision is welcome news for iiNet, which has spent over AUD$6m defending itself, the Court did rightly leave the door open for liability to exist:

It does not necessarily follow from the failure of the present proceeding that circumstances could not exist whereby iiNet might in the future be held to have authorised primary acts of infringement on the part of users of the services provided to its customers under its customer service agreements.

The case turned to a large extent on the process by which the studios notified iiNet of the alleged copyright infringment, and if further steps had been taken by the studios, iiNet may have been liable for failing to disconnect users. Also, it may not be the end of the road, with the movie studios fairly likely to appeal the decision to the High Court.

The full judgment is here.

Facebook photos fair game?

The Herald reports:

The Press Council has rejected a complaint against the Herald on Sunday by a man upset a picture off the social networking site Facebook was used in print… In its decision, the Press Council said using a photo off the website was not a breach of its rules.

While the Press Council was not making any comment about copyright, the situation does of course raise copyright issues.

It may be increasingly common for media organisations to reproduce social networking content without permission of the copyright owner. There is a copyright exception for news reporting, however this is limited to “current events”. Care must be taken when copying Facebook images (and other content) without permission. The copyright in material uploaded to Facebook remains with the owner. While users cannot expect privacy in social networking sites, using copyright material without permission is more black and white.

http://www.burgess.co.nz/law/a-feisty-copyright-ruling

Domain names and AdWords: fools rush in

A potential spat over domain names and AdWord spoiling tactics was resolved before it really began last week. New firm Localist (a subsidiary of NZ Post) filed proceedings against Yellow Pages Group (YPG), after YPG registered the domain names www.localists.co.nz and www.locallists.co.nz, and registered similar Google AdWords.

Internationally, disputes over domain names and AdWords are not new (see my post, Trade marks and AdWords). Some see the ease of registering domains and search terms, and the apparent lack of a sanction, as an open invitation to do so as a spoiling tactic against a potential competitor. But firms should be in no doubt that they are on thin legal ice when they get too close to a competitor’s trade mark or otherwise act in bad faith.

While there are potentially other legal remedies available, the starting point for most disputes involving domain names and search terms is the Fair Trading Act 1986. Among other things, this Act contains a general prohibition on business conduct that is “misleading or deceptive or is likely to mislead or deceive”, and misleading conduct in relation to trade marks. Note that there is no prohibition on “unfair conduct”. It has to be “misleading or deceptive” to a third party.

AdWords

While there has yet to be a New Zealand case on AdWords involving trade mark infringement and / or misleading & deceptive conduct, last year’s European case involving Google and Louis Vuitton did provide some guidance. There is little doubt, for example, that registering and directing a competitor’s trade mark alone to your own website would be unlawful. It gets more murky when a company simply registers an AdWord to block a competitor from registering it. That would be unlikely to amount to trade mark infringement.

Domain names

The primary remedy for .nz domain name dispute is the .nz Domain Name Commission‘s Dispute Resolution Service. Unlike the Fair Trading Act, this service can provide a remedy where a competitor has acted in an “unfair” manner. Disputes unable to be solved informally are referred to experts – including former senior commercial judge Sir Ian Barker and senior IP barristers – for determination. At $1,800+gst, it’s far cheaper than the Court process, though the input of a lawyer in preparing the relevant submissions can be beneficial.

For other TLD domains, it is a matter of using the relevant dispute resolution service, or Court proceedings.

In all cases though, the Fair Trading Act (and other general laws such as passing off) still apply, meaning that Court action can be taken in appropriate circumstances. If non-domain name issues are also involved, it may be more efficient to simply include the domain name complaint in any notices sent to the other party, or Court proceedings filed, than to attempt standalone determination, although it depends on the specific circumstances (e.g. if time is of the essence).

Register!

Localist was successful in forcing Yellow Pages to back down from what clearly seemed to be pretty sneaky behaviour, even if it did take a hefty statement of claim to do so. But the lesson remains: register! A .nz domain name costs all of about $21, or less than 5 minutes of a lawyer’s billable rate. It will probably cost less to register half a dozen domain name variations than it will to get your lawyer to read & reply to your email after a situation has arisen. Firms don’t need to register every possible variation just because an unscrupulous competitor may try to ankle-tap them; there are strong remedies for misleading or deceptive conduct. But at least grab the obvious domain names and (hopefully) prevent any cybersquatting in the first place.

Employee vs contractor – IP implications

Computerworld reports on an employment dispute involving a web developer:

The case, heard by the Employment Relations Authority late last year, hinged on whether Michael Oliver, who did development work for Palmerston North firm Autoweb Solutions, was an employee or a contractor. The Authority determined he was an employee.

The employee/contractor distinction is an important one, and has been the source of a number of court disputes. While the Autoweb case was simply a wage dispute, the employee/contractor distinction could also potentially have intellectual property implications.

The default position under section 21 of the Copyright Act is that (most) copyrightable works created by an employee “in the course” of employment – e.g. software – are owned by the employer (whether or not the employee is actually paid). This is not the case if the person creating the work is a contractor. In that case, the so-called commissioning rule applies (see Copyright ownership and software development). If a developer had been “hired” (as an employee or contractor) to write some specific code, then the employer/hirer will likely have commissioned the work and will therefore own in.

But the situation could easily become more murky, with the possible result that a non-employee developer owns copyright in code they produced for their principal (though not in a “commissioning” situation) – for an example, see “Free design” and the commissioning rule. This cuts both ways: contractors should be careful not to be deemed employees in order to avoid the risk of IP created in the course of a project being inadvertently owned by their “employer”. Note that the words “in the course” are important, as discussed in the recent ERA case of Abbott v Chief Executive, Whitireia Polytechnic [2010] NZERA 766.

As is often the case, a proper contract is the answer – though as the Autoweb case makes clear, it is the substance of the relationship not the labeling of it that is determinative. In the case of employees, it is a legal requirement that there be a written employment contract. Contracts with contractors should clearly state which party retains any resulting IP.

More domain name headaches for trade mark owners?

Greg Adams comments here on the “recent .co virtual land grab”. Computerworld reports that “More than 39,000 organizations applied for .co domains during a ‘prelaunch’ phase for signing up big-name companies”. While this is great news for Columbia’s domain registry, it is just another potential headache for businesses trying to protect the identity of exising domain names and trade marks.

[ On a related issue, see my Computerworld article on AdWords and trade marks ]

A quick check on the .co whois server shows some popular .co.nz names now registered as .co’s by registrants that appear to be someone other than the New Zealand company, including nzherald.co, tvnz.co and blackcaps.co. Of course, the presence of a .co registration should not presume any illegitimacy or trade mark issue. Trade marks are territorial, and how the (global) domain name is used in a particular region (if at all) is what will be relevant.

Even more headache inducing (or wonderful, depending on ones view) is ICANN’s proposal to allow the creation of new generic top level domains (gTLDs) for “branding purposes” – i.e. vanity domains. As ICANN says:

Brand holders and organizations seeking to manage their own name as a top-level domain may have an interest in securing these rights in the early phases of the new gTLD program for future branding purposes. With the limited availability of .com domain names, some companies may opt to become early adopters of new TLDs to satisfy their marketing needs. There will also be opportunities to apply for community and geographic top-level domains, such as .blog, .brand, and .city.

For example, it is reported that IBM is likely to apply for the .IBM top-level domain. Someone could apply to register .kiwi (a popular trade mark) as a gTLD. Of course, for contested trade marks this could prove rather fraught. However, it will not be as simple as registering a normal (second/third level) domain name. To register a custom gTLD you will effectively need to become a accredited registrar and sign a contract with ICAAN.

The International Trademark Association recently expressed its concerns that the proposal could lead to cybersquatting mischief. ICANN, chaired by New Zealand barrister Peter Dengate Thrush, is expected to make a decision on its trade mark policy for the new gTLDs soon, although some remain concerned that “trademark concerns will be noted and then brushed aside”.

Software patents to remain excluded

The Government has cleared up the recent uncertainty about software patent reform by confirming that the proposed exclusion of software patents will proceed. A press release from Commerce Minister Simon Power said:

“My decision follows a meeting with the chair of the Commerce Committee where it was agreed that a further amendment to the bill is neither necessary nor desirable.”

During its consideration of the bill, the committee received many submissions opposing the granting of patents for computer programs on the grounds it would stifle innovation and restrict competition… The committee and the Minister accept this position.

Barring any last-minute flip-flop – which is most unlikely given the Minister’s unequivocal statement – s15 of the new Patents Act, once passed, will read:

15(3A) A computer program is not a patentable invention.

Lobbying

It is clear that the lobbying by pro-software patent industry group NZICT was unsuccessful, although Computerworld reports that its CEO apparently still holds out hope that “[IPONZ] will clarify the situation and bring this country’s law into line with the position in Europe and the UK, where software patents have been granted”. Hope does indeed spring eternal: the exclusion is clear and leaves no room for IPONZ to “clarify” it to permit software patents (embedded software is quite different- see below).

As I wrote earlier, it remains a mystery as to why NZICT, a professional and funded body, failed to make a single submission on the Patents Act reform process – they only had 8 years to do so – but instead engaged in private lobbying after the unanimous Select Committee decision had been made. It also did not (and still does not) have a policy paper on the subject, nor did it mention software patents once in its 17 November 2009 submission on “New Zealand’s research, science and technology priorities”. It is not as though the software patent issue had not been signalled – it was raised in the very first document in 2002. Despite this silence, it claims that software patents are actually critical to the IT industry it says it represents.

The New Zealand Computer Society, on the other hand, did put in a submission and has articulated a clear and balanced view representing the broader ICT community. It said today that “we believe this is great news for software innovation in New Zealand”.

Left vs right?

Is there a political angle to this? While some debate has presumed an open-vs-proprietary angle (a false premise) some I have chatted with have seen it as a left-vs-right issue, something Stephen Bell also alluded to (in a different context) in this interesting article.

Thankfully, it appears not. The revised Patents Bill was unanimously supported by the Commerce Committee, comprising members National, Labour, Act, the Greens, and Maori parties. It reported to Commerce Minister Simon Power (National) and Associate Minister Rodney Hide (Act). Unlike the previous Government’s Copyright Act reform, post-committee industry lobbying has not turned the Government.

What about business? NZICT apart, the exclusion of software patents has received the wide support of the New Zealand ICT industry, including (publicly) leading software exporters Orion Health and Jade, which as Paul Matthews notes represent around 50% of New Zealand’s software exports. The overwhelming majority of NZCS members support the change. Internationally, many venture capitalists and other non-bleeding-heart-liberal types have spoken out against software patents, on business grounds.

Some pro-software patent business owners might be miffed at a perceived lack of support from National or Act, perhaps assuming that software patents are a “right” and are valuable for their businesses. The reality is that only a handful of New Zealand companies have New Zealand software patents (I did see a figure quoted somewhere – will try to find it). Yes, they can be valuable if you have them but that is a separate issue (and remember, under the new Act no one loses existing patents). A capitalist, free market economy (and the less restrictive the better) abhors monopolies, and this decision benefits the majority of businesses in New Zealand. Strong IP protection is essential in modern society – including patents – (see my article “Protecting IP in a post-software patent environment“) but the extent of statutory protection when being reviewed will always come down to a perceived balance, not just for the minority holders of a patent (a private monopoly) but for the much larger majority artificially prevented from competing and innovating by that monopoly.

I have always taken pains to note, like NZCS, that there are pros and cons to software patents. And I am a fan of patents generally. Patents are good! But for software patents, the cons outweigh the pros. There are sound business reasons to exclude them. This specific part of the reform targets one specific area, has unanimous political party support (how rare is that?), and wide local business support. The last thing it can be seen as is an anti-business, left-wing policy (if it was, I’d have to oppose it!)

Embedded software

Inventions containing embedded software will remain, rightly, not excluded under the Patents Bill. Minister Power confirmed that IPONZ will develop guidelines for embedded software, which hopefully will set some clear parameters for applicants.

Software is essential to many inventions, and while that software itself will not be patentable, the invention it is a component of still may be. Some difficult conceptual issues can arise, but in most cases I don’t expect difficulties would arise. This “exception” (if it can be described as such) will not undermine the general exclusion for software patents.

Trade marks and AdWords

My latest Computerworld article is now online:

I know at least one New Zealand company is currently attempting to “peacefully” resolve a trade mark-AdWord situation. It could be some years, though, before a New Zealand court case emerges. The EU and Australian decisions (and a further ruling last week) are fairly orthodox (helpfully so), and there’s no reason that the same wouldn’t apply in New Zealand. In short, trading off other’s trade marks is a risky business. It can also be expensive – not just because of the possibility of being sued (which is usually a last resort and, in the scheme of things, relatively uncommon) but also due to being forced to change or abandon advertising efforts.

On a related note, for new businesses starting up, key steps before settling on a business / product / service name are:

  1. Search the Companies Office for similar company names.
  2. Check domain names (not just for availability but for similar names).
  3. Check trade marks (again, not just for identical matches but similar ones too).
  4. Check Google.

It’s a lot easier to get a “clean” name / brand at the outset than have to change it down the track.

SCOTUS kicks for touch on business method patents

The US Supreme Court has released its long-awaited Bilski decision involving business method patents. Many commentators had hoped that the case would provide a definitive statement on the patentability of business methods, and possibly other subject matter such as software patents, compression techniques and biotechnology. Instead, it seems the court has kicked for touch – or “taken a knee” in the American equivalent, I am informed.

The court ruled that the “machine or transformation” test was not the only criteria for determining patentability, but that there should not be “broad patentability” of business methods. Lower courts could continue developing limiting criteria. It upheld the lower court’s decision to reject Mr Bilski’s attempt to patent a method of financial hedging. But it left many questions, and some confusion, by not giving clear guidance on what’s patentable and what’s not.

Some comments:

Forbes.com:

The practical effect of the Bilski ruling will be limited, lawyers said, but it will definitely mean more lucrative patent litigation.

New York Times:

There were high hopes that the Supreme Court would clear things up in the mushy, litigation-filled realm of patents on methods of doing business.  [Bilski] was anything but a landmark decision. Still, there was a clear message for patent trolls, patent brokers and licensing companies, patent lawyers and lobbyists: Play on!

“The court is certainly not shutting the door on business method patents, as some thought it might,” said Josh Lerner, a patent expert at the Harvard Business School. “This preserves a fair amount of ambiguity.”

Patently-O:

Although not rejected by the majority opinion, it is clear that the broad “useful, concrete, and tangible result” test is dead. That test is conclusively rejected by what I term the Anti-State-Street Majority — a majority created by the combining the two concurring opinions in Bilski and their five-justice majority. The result is that the scope of patentable subject matter is certainly narrowed from its 1998 high-water-mark.

Glyn Moody:

So, the long-awaited US Supreme Court ruling on Bilski vs. Kappos has appeared – and it’s a mess. Where many hoped fervently for some clarity to be brought to the ill-defined rules for patenting business methods and software in the US, the court instead was timid in the extreme. It confirmed the lower court’s decision that the original Bilski business method was not patentable, but did little to limit business patents in general.

AP:

Scott Bain, lawyer for The Software & Information Industry Association, said the decision “preserves a delicate but important balance.” “It keeps the door closed to patenting mere abstract ideas, which many ‘business method’ patent applications have been,” he said. “But just as importantly, it affirms the continued viability of patenting useful software applications, which will allow software companies to continue in their role as a driver of economic growth.”

Nature:

For those who were looking to the Supreme Court to provide clarity on a contentious issue, however, the court’s limited ruling was a bitter disappointment. “The decision is incredibly unhelpful,” says Steven Bauer, head of litigation at the law firm Proskauer Rose in Boston, Massachusetts. “Nothing in their decision can be used to decide what’s patentable or not.”

The decision had potential ramifications for New Zealand companies who have (or hope to get) business method patents. If such patents were unavailable in the US, the value of having them in NZ and other countries could be somewhat undermined. Unfortunately, though, the recent New Zealand patent law review also didn’t address business method patents in much detail, and it will probably be many years, if ever, before the NZ Appeal Court or Supreme Court hears a similar case. The net result for all is the status quo, and business method patents will remain murky for some time.

It also will not affect the ongoing software patent debate in this country, which is also somewhat up in the air.