Syntropy Systems' business development manager, Matthew Tutaki, said he had received notification from IP Australia that lawyers representing the company, D.E. Technologies, would fight his move to have the three-month cooling-off period -- required before a patent application is sealed in Australia -- extended.
Tutaki said a New Zealand-based law firm had argued that there was no valid reason to extend the cooling-off period and demanded that the patent assessment authority seal the patent.
He said it was very likely that he would have to personally provide millions of dollars in legal fees to in a bid to quash the patent in the Administrative Appeals Tribunal (AAT).
If approved, the patent would give D.E. Technologies the ability to demand royalties valued at millions of dollars per year from Australian companies that conduct international e-commerce transactions.
The patent, described as "predatory" by deputy chair of the Senate Standing Committee on Communications, Information Technology and the Arts, Senator John Tierney, was filed by D.E. Technologies in 32 countries. It was passed by New Zealand authorities, and lawyers representing the company have began demanding royalty and license fees from businesses there early this month.
Tutaki had pleaded with federal authorities to review the decision to recognise the patent in Australia and filed an eleventh-hour application for more time to challenge the patent.
Tutaki is praying that the federal government stops the patent before legal action is required but conceded yesterday that it was now "very probable" that the dispute would be taken to the AAT.
According to Tutaki an engaging a patent lawyer for the nine months that it could take to fight IP Australia's decision could cost AU$2 million to AU$3 million.
"If I hadn't have received so much support from people, and so many people hadn't stood up and said this is fundamentally wrong then possibly I would never have done it," he said.
Tutaki has received around 5,000 e-mails of support since placing himself at the head of the campaign to stop the patent, one percent of which have offered financial support to quash it. However he said he was "loath" to ask any of them for financial backing.
"It shouldn't be down to people that don't have any money to do this; the patent should never have got up in the first place," he said.
However Tutaki concedes that if the case goes to the tribunal he may have to accept third-party financial support.
The government should be reviewing the patent application process with the intention to introduce measures preventing the granting of patents which could have an adverse effect on the australian economy.
How can we allow this overseas company to come here and be granted the right to funnel millions of dollars from our economy? This is one issue which urgently needs federal government intervention.