Ministers say they have initiated the debate in recognition of
the impact of e-commerce and the internet in transforming the UK
economy. The UK software and computer services market is the second
largest in Europe, worth £21 billion. There are over 105,000
companies operating in this sector in the UK.
European patents are restricted to the protection of technical
inventions. Present UK law (the Patents Act of 1977) and the
European Patent Convention (1973) exclude computer software as such
(unless it has what is known as a technical effect) and methods of
doing business as such from patent protection. Following decisions
in the Supreme Court, the US practice has moved towards granting
patents for software and non-technical business methods. The
divergence of practice has triggered the debate over the current
European regime.
The controversy over patents for software and business methods
is that, while some consider that such patents tend to stimulate
innovation by providing adequate protection of the substantial
amounts of money and resources that can be required to develop
sophisticated and specific software, others believe that patents
will on the contrary stifle fair competition and hinder
innovation.
Mrs Hewitt said:
"We are seeking input on the potential
impact of patents on innovation and growth, as well as feedback on
the system in the US, where software and e-commerce patents are
already available. These issues could profoundly affect the
environment in which we do business. We need comments from all
those who will be affected including those in the service,
financial and business sectors who may never have come across
patents before."
Dr Howells said:
"Until now companies have been able to
develop computer software and business methods often without
patents: this might change across Europe. We must make sure that
those most likely to be affected know what the possibilities are
and have the chance to make their views known."
