Patents pending

Intellectual-property law has become a murky domain, as countries around the world struggle to define the patentability of virtual products and processes. But in Canada, a recent Federal Court decision has affirmed that “a ‘business method’ can be patented in certain circumstances”—which experts say brings much-needed clarity to the issue.

Photo: Associated Press

The decision, rendered in October by Justice Michael Phelan, allows Amazon.com to patent its “one-click” ordering system, settling a 12-year dispute. The ruling quashes a previous federal patent commissioner decision, which found that business methods are “non-patentable subject matter.” But because the simplified ordering process has a “practical application,” Phelan, who cited legal precedents in other jurisdictions, concluded that it warrants protection under Canadian patent law.

Predictably, the decision was lauded by patent lawyers, who predicted a rush of applications. But according to Mark Eisen, vice-president of the Intellectual Property Institute of Canada, the more important implication of the ruling—if it stands—is that it makes Canada more competitive on the international stage. “Technology has evolved, and we have to have a flexible and robust patent system that evolves as well,” he says.