As companies progressively adopt e-commerce solutions--moving elements of business online, such as sales, service, and marketing--new business methods are being created all the time, methods that should be protected by way of patents.
When people speak of inventors, Leonardo Da Vinci's contraptions or Einstein, with his mad crop of grey hair, spring to mind. But what many people don't realise is that solving a technical problem or creating software to improve business practices is a form of inventing and, like with all inventions, legal patents can protect original designs and methods.
E-commerce business methods have not historically been considered inventions. But, as Robert Miller, patent attorney and principal at Spruson & Furguson observes, "the field has opened up, especially in the last few years".
As companies progressively adopt e-commerce solutions--moving elements of business online, such as sales, service, and marketing--new business methods are being created all the time, methods that should be protected by way of patents.
"Companies incorporating e-commerce into their business will inevitably be pioneering new ways of doing business," says Miller. "If a particular feature is developed that is unique and shows a useful commercial effect, then this business method can actually be patented."
Not only is patent protection a smart idea, it is also a valuable asset and form of property that can add value to a company and give it a competitive edge. Potentially it can also improve customer perception of a company's value, improve stock price, and generate income by way of licensing. As Miller points out, by asserting that certain inventions are "breakthroughs", the patented invention can be used as a bargaining chip with financing for mergers and acquisitions. In industries such as information technology and computer science there is an overwhelming amount of development outsourced, especially in smaller companies. This environment potentially creates ownership confusion.
"Businesses need to realise that while these new business methods have been developed in an outsourced part of the business, they still have ownership over them and the right to patent them for their own benefit," says Miller.
He strongly advises that ownership should be established from the outset of outsourcing agreements to avoid costly, and potentially messy, complications later on.
To patent an original business method a company needs to prepare and file a patent application with a patent attorney. Then the Australian Patent Office examines the application to determine whether it is a new invention and, if so, the patent is granted. The preparation of the patent specification, which is a full and complete technical description of the invention, is hard work. However, Miller believes, "it's short term pain for hopefully a long term gain".
Patenting e-commerce business methods is something that Australian companies are just starting to adopt. "We see Australian corporations waking up to it and we are getting enquiries covering Web development and the e-commerce world," he says. And Miller also thinks it's time for Australians to start taking patenting seriously, "because their competitors around the world are doing it at breakneck speed and Australian companies are at risk of being left behind."
