Note: This column represents the opinions
of the writer and as such, is not purported as fact
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The furore surrounding DE Technologies attempts to extract licensing fees
from Kiwi e-commerce operators looks set to escalate.
Over in Australia, there's a lot of work going on in an attempt to scuttle
the patent's progress through the approval system, for fear it will cost
Aussie companies a small fortune if the patent is sealed.
The DET situation once again raises the whole issue as to whether software
or business systems ought to qualify for patents, and if not, what other
kind of protection could be offered for such innovations.
The Aardvark PC-Based Digital
Entertainment Centre Project
Yes, at last, this feature
has been updated again! (31 Mar 2003)
If Australia decides to decline DET's application, seemingly on the basis that it would
be injurious to Australian business, that would create a very interesting and
potentially dangerous situation for innovators.
All patents have the potential to be injurious to business -- after all, once
something is patented, chances are that others won't be able to use it without
the payment of some type of licensing fee.
If it's doing its job properly, the Aussie patent office should consider
objections to DET's application solely on the merits of its qualification
for a patent. This includes such things as whether it is non-obvious and
whether there's any prior art that shows they weren't the first to think
of it.
But what should a government do when it discovers that its patent office
has issued a patent that threatens to unreasonably raise the barriers to entry
in a critical sector of the market -- a sector that stands to play a
significant role in future export earnings?
Obviously, they can't just void the patent because it's not good for the country's
businesses can they? To do that would immediately give us banana republic
status with our trading partners.
But could the government challenge the patent's validity on behalf of the
many small NZ businesses who pay tax and stand to be badly affected by the
licensing fees being demanded?
Given that the current government has already shown how it is prepared to
gamble/invest taxpayer's money to protect various businesses in the best
interests of the country (AirNZ, NZRail, etc), I don't think it would
be such a big ask for government to set aside a Crown Solicitor or two
to act on behalf of all NZ businesses and investigate the legitimacy
of challenging this patent.
What do you think? Would this be a sensible use of taxpayer's dollars or
should the government remain on the fence, simply an impartial observer?
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