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European Parliament Scraps Software Patent Law Proposal European Parliament Scraps Software Patent Law Proposal
By Elizabeth Millard
February 18, 2005 10:34AM

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Some countries that once supported the idea of software patents have reversed their positions. One side is arguing that patents are needed to spur innovation and protect intellectual property, while the other side says patents actually would stifle innovation and prevent smaller companies from being able to compete.
 



A proposed law intended to bring together the software patent rules of 25 countries in the European Union has been criticized by the European Parliament, which threw out the proposal and demanded that the decision-making process be restarted.

It is now up to the European Commission to decide whether to follow the Parliament's demand. If it decides to start fresh, the move potentially could delay passage of the bill by at least several months and result in a substantially changed proposal.

Current laws do not permit software patents, although some have been registered. At issue in the current discussions is a clause in the European Patent Convention, passed in 1973, which contains an exclusion on software patents.

Different Emotions

Opponents of software patents consider the decision a victory, but others have mixed reactions.

The European Information and Communications Technology Industry Association, with members like Microsoft Relevant Products/Services and Siemens, has noted in news reports that it is not helpful to have the law go all the way back to the beginning of the process.

But others believe that an entirely new discussion could be beneficial. "We welcome the decision," said Florian Muller, a computer programmer who has led the lobbying effort against permitting software patents in Europe.

"This will give the discussion a fresh start and hopefully bring it out of the gray area that it's been in for years," he said.

New Climate

Although some might believe that going back to the drawing board might result in the same blueprint being drafted, political changes in the past year are likely to prevent that from happening.

"A number of countries that once supported the idea of software patents are now critical of them," Muller said.

But there is still a great deal of debate over the issue. One side is arguing that patents are needed to spur innovation and protect intellectual property, while the other side says patents actually would stifle innovation and prevent smaller companies from being able to compete.

Stormy Weather

Although the European Parliament can issue a demand, it cannot enforce it. Because of this, it is now up to the European Commission to act.

"The Commission doesn't have to follow Parliament's suggestion, but politically it would be a good idea," said Muller. "Otherwise, things could get very heated."
 

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