New Zealand clears the decks for innovation as software patents are dumped

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By Noel Young, Correspondent

August 29, 2013 | 3 min read

New Zealand is flying the the flag for innovation .After five years of debate, the country has finally passed a new Patents Bill that will effectively outlaw software patents .

NZ flies the flag for innovation

Minister Craig Foss said the modernisation of the patents law, marked a "significant step towards driving innovation in New Zealand", according to ZDNet.

"By clarifying the definition of what can be patented, we are giving New Zealand businesses more flexibility to adapt and improve existing inventions, while continuing to protect genuine innovations," Foss said.

The passage of the Bill was nearly unanimous. Paul Matthews, chief executive of the Institute of IT Professionals , congratulated Foss for listening to the IT industry and ensuring that software patents were excluded.

Matthews said it was a breakthrough day "where old law met modern technology and came out on the side of New Zealand's software innovators".

The Patents Bill was first drafted in 2008. In 2010, the Commerce Select Committee recommended a total ban on software patents. However, the introduction of a Supplementary Order Paper (SOP) in August last year saw the removal of software patents reversed.

An IITP poll of members at the time showed that 94 percent of those with a view were in favour of banning software patents.

"The patents system doesn't work for software, because it is almost impossible for genuine technology companies to create new software without breaching some of the hundreds of thousands of software patents that exist, often for very obvious work," Matthews said.

"Today's historic legislation will support our innovative technology industry, and sends a clear message to the rest of the world that New Zealand won't tolerate the vexatious practice of 'patent trolls'."

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