Software Patents: Innovation or Litigation?

Abstract

The Directive on the Patentability of Computer-Implemented Inventions recently approved by the European Parliament may have significant implications for the software industry, public policy and patent protection. In this paper, we summarize the scope of patent protection in the European Union, the United States, and Japan. We examine the patentability of computer software under E.U. and U.S. patent law and also consider two instances of software patenting and their effects. We provide an overview of the Directive and finally assess the legal, economic, and public policy implications for software developers and users.

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