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Council clashes with Parliament on software patents

Published 19 May 2004 - Updated 29 January 2010
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EU ministers have rejected most of the Parliament's amendments to the software patents directive. The new Parliament will examine the text in second reading after the June elections.

The compromise deal tabled by the Irish Presidency on software patents was approved by the Competitiveness Council on 18 May. Of the 120 amendments tabled by Parliament, only 21 were kept by EU ministers. The Austrian, Italian and Belgian delegations abstained while Spain voted against the proposal. 

The text decides on the issue of defining what is the "technical contribution" required to patent computer-implemented inventions: "Technical contribution means a contribution to the state of the art in a field of technology which is new and not obvious to a person skilled in the art," the agreed text reads. The difference between the state of the art and the contribution brought about by the invention is to be assessed against "the scope of the patent claim considered as a whole, which must comprise technical features".

According to the previous version of the text as voted last year by Parliament, a technical contribution has to offer an "inventive step" defined as something "new, non-obvious, and susceptible of industrial application". It also pushed for exceptions to patentability to allow more interoperability between different software. All these were rejected by the Council.

Positions: 

Speaking to EurActiv before the vote, the Parliament's rapporteur on the dossier, MEP Arlene MC Carthy (PES, UK), said Member States were bending too easily under industry pressure. "The Parliament's vote was clear - we do not want software per se to be patented. We want strict interpretations and criteria for genuine inventions. The Council Common Position is not the final word. The new Parliament will have a second reading and I expect there to be some tough talking and negotiations". 

The Commission says the text adopted by Council maintains the the balance of the initial proposal which it says aimed at "providing legal clarity while avoiding any drift towards patents for business methods or computer programmes that do not contribute to the state of the art". Reacting to the Council vote, Internal Market Commissioner Frits Bolkestein said: "It is nothing more than basic common sense to make sure that inventions are not excluded from patent protection simply because they use computer software. But the Commission has always been committed to making sure that patents in this field, as in any other, cannot be used to squeeze out legitimate competition or to prevent others getting fair access to technology and ideas. This text achieves that balance and I very much hope the new European Parliament will be able to adopt it swiftly."

The European Industry Association for Information Systems, Communication Technologies and Consumer Electronics (EICTA) shifted the pressure on the new Parliament, calling on MEPs "to support Europe's digital technology industry as the Council has done today, and drop the more extreme and economically damaging amendments that the outgoing Parliament adopted in September 2003".

The Foundation for a Free Information Infrastructure (FFII) says Germany behaved like the "Trojan Horse of Bolkestein in the Council" by convincing smaller countries to change their minds on a text they were initially opposed to. Responding to EurActiv, FFII claimed that the Council's version of the text was inefficient at ensuring the interoperability exceptions that Parliament had been fighting for. The organisation is now busy organising national campaigns to make software patents an issue for the next European elections in June. "All new MEPs will be briefed on the issue", FFII indicated, saying they had lost a battle but not the war.

Next steps: 

The modified text will be submitted for second reading to the new Parliament after the June 2004 elections. 

Background: 

On 20 February 2002, the Commission presented a proposal for a Directive on the Patentability of computer-implemented inventions or software patents. The bill went through a first reading in Parliament on 24 September 2003 with MEPs introducing numerous amendments which reflected concerns that it would open the door to unlimited patentability. Supporters of the bill say it is crucial to encourage Europe's, research, innovation and competitiveness by harmonising the way patents are treated by national courts across the EU (for more background, see EurActiv, 11 May 2004).

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