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Can You Patent Software in Australia?

Our world has become increasingly digital, with software and mobile apps becoming the foundations of countless businesses. That means it’s important to know how you can protect the unique software you create. 

The path to patent protection isn’t always straightforward. A successful patent grants you exclusive rights to use your invention for up to 20 years, but the Australian Patent Office has strict criteria. Your software invention must meet several conditions to qualify, including novelty, inventive step, and usefulness. 

Kings Patent & Trade Marks Attorneys has extensive experience protecting software and related inventions, and we want to give you the best chance of success. Below we’ll explore the criteria that determine software patentability in Australia. You’ll learn how to structure your application for the best chance of success and how to spot the common mistakes that often lead to rejection.

Understanding Patent Eligibility for Software in Australia

Software patent eligibility in Australia depends on specific technical criteria, and developers need to carefully understand this evolving framework.

Legal definition of ‘manner of manufacture’

The Patents Act’s manner of manufacture requirement serves as the lifeblood of patent eligibility in Australia. To meet the definition, patentable inventions must create an artificially created state of affairs that offers economic utility.

Put simply, that means software patents must show tangible, observable effects beyond information processing. Your application needs to demonstrate how the software creates physical changes or transformations rather than abstract results.

For example, if you found a novel and inventive new way to make a computer process data faster, then it could be patentable. But if you use a computer normally to find a new way of doing business, then your intention wouldn’t qualify. 

Why business methods and abstract ideas are excluded

Australian patent law has never recognised business methods and abstract ideas without technical implementation. A business method or scheme is not patentable simply because it is implemented on a computer. There must be a genuine invention in how the computer performs the method.

Australian courts see a clear difference between technological innovations (patentable) and business innovations (not patentable).

Here are examples of non-patentable subject matter:

  • Asset protection schemes involving financial trusts
  • Securities indices and financial hedging methods
  • Competency assessment systems
  • Digital marketing methods without technical implementation

How the Australian Patent Office interprets software claims

The Australian Patent Office looks at software patent applications to see if they solve technical problems or improve computer functionality. Examiners want proof that goes beyond “what” the computer does to understand “how” it operates in new ways.

Examiners assess applications based on several factors:

  • Technical nature of the contribution
  • Solutions to technical problems inside or outside the computer
  • Improvements to computer functionality
  • Implementation requirements beyond generic hardware

Software patent applications succeed when they show observable physical or functional outcomes.

Person typing on computer - working on a software

How to Structure a Patentable Software Application

The right structure of your software patent application in Australia can make the difference between approval and rejection. You need to express the technical substance of your invention through specific components, contributions, and outcomes.

 

Breaking down software components in your application

Patent examiners will understand your state-of-the-art software better with a detailed breakdown of each component. Your application should:

  • Detail how hardware elements interact with your software
  • Explain how information moves through the system
  • Include diagrams showing both master logic and subroutines
  • Describe algorithms and implementation details

It’s important to break down each component to demonstrate how the software interacts with a computer to produce something new.

 

Describing technical contribution and system interaction

Your invention must show a technical contribution, not just a business innovation. The application needs to explain “how” the computer operates differently, not just “what” it does. The computer implementation should be integral to the invention itself, not generic. If your software helps computers process data faster or store information better than known methods, explain how these technical improvements solve specific technical problems.

 

Highlighting observable physical or functional outcomes

Your application should clearly show the tangible, concrete effects your software produces. Calculate improvements like percentage reductions in processing time or resource consumption. Improved data compression, better image processing, or optimised system performance are also good examples of successful outcomes.

Examples of Patentable vs Non-Patentable Software

Software patents examples

Software patents succeed when they solve technical problems through technical means. Software patents also include solutions that:

  • Boost computer processing speed
  • Implement novel encryption algorithms for improved security
  • Reduce memory requirements for image processing

A messaging app with a new encryption algorithm that improves data security would likely qualify, but the same app with just aesthetic improvements would not make the cut. 

For a real-life example, Apple received patents for user interfaces that displayed animation sequences stored efficiently because their patents provided technical advantages through reduced memory requirements. 

 

Non-patentable cases

Courts have consistently rejected patents for software that implements business methods or abstract ideas without technical improvement. Rejected applications typically include:

  • Online platforms that match customers with providers using conventional database queries
  • Apps that digitise manual processes without new technical effects
  • Financial schemes implemented on generic computers

 

Can you patent code? 

Australia’s law automatically protects source code, executable code, data banks, and tables through copyright without registration. But copyright only protects the specific code, while patents protect the technical solution.

Common Pitfalls and How to Avoid Rejection

Software patent applications in Australia often get rejected because developers make common mistakes. Learning about these challenges upfront improves your chances to secure protection.

 

Using generic computer implementation without technical effect

Applications get rejected most often when they rely on standard computer technology to implement abstract ideas. IP Australia rejects applications that use computers just for their basic functions and lack any technical innovation.

 

Failing to demonstrate novelty or inventive step

Many inventors think their idea is new when a simple search would prove otherwise. An inventive step needs to be non-obvious—it shouldn’t be readily apparent to an expert in that technology. Small improvements can qualify for patents only if they add unique features or solve specific technical problems in new ways.

 

Overlooking the need for a technical problem-solution approach

Australian patent examination uses a problem-solution method. Your application must clearly show the technical problem and explain how your solution is different from existing ones. The technical problem should be created without including solution elements to avoid after-the-fact analysis.

Need Help With Your Software Patent Application? 

Patenting software in Australia isn’t always simple, and the process requires you to meet strict criteria. Your success depends on showing a genuine technical contribution beyond implementing abstract ideas on computers.

Using the right terminology and format in your application can help you overcome these challenges, and Kings Patent & Trade Marks Attorneys is here to help. When it comes to software patents, our experienced intellectual property attorneys understand the common pitfalls, and we’ll work with you to give your application the best chance of success. 

Whether you need help with an application or some expert advice about whether your software qualifies, the IP attorneys at Kings are here to help, including support with international intellectual property protection.

The Kings IP team sitting having a meeting | Kings Patent & Trade Mark Attorneys
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