The Federal Court of Australia has ruled that business processes
can be patented, according to reports. This is a landmark decision
in Australia that follows the liberal approach to patenting taken
by the US. The court ruled that French software developers Welcome
Real-Time held a valid patent for processing smart card information
as a part of a customer loyalty scheme and, according to Legal
Media Group, opened the door to business method patents.
The decision could mean that Australian businesses who have yet
to develop a patenting strategy to protect their intellectual
property rights may lose out on royalties from patented business
processes.
Opinion is split on the merits of allowing business method
patents. Some argue that they stifle innovation, others say they
promote innovation. They are common in the US, but almost unheard
of in Europe. The Welcome Real-Time patent appears more software
based than pure business method. According to the company, the
patent, already granted in Europe and Canada, with applications
pending in the US and Asia, covers smart card loyalty transactions.
At the moment of purchase, data relating to the customer's
behaviour towards one or more merchants is updated in the smart
card, points are calculated and a coupon or voucher is printed
showing the existing entitlement recorded in the card.
The broad claims cover such as storing behaviour data limited to
a list of merchant program ID's representing the various points
programs in the card. The ID is added to the card at the customer's
first visit, so customers can easily participate in multiple
programs without having to pre-load their cards at a kiosk or web
site.
The system grows in functionality when other behaviour
information is used in addition to merchant program ID's. By simply
adding the date of the customer's last visit to each merchant, the
patent provides the ability to support programs that encourage
increased spending over a given period, for example: " get double
points if you fill-up again within the next 15 days ", " get a free
drink at your 3rd monthly visit and a free value meal at your 5th
", etc.
