EU patent law may hit SMEs

Campaigners furious about possible restrictive software patents

A vote by the legal affairs committee of the European Parliament last week has left campaigners furious about loopholes in proposed legislation that could open the door to overly restrictive software patents.

Critics fear the draft directive could allow large companies to collect patents on software processes. They warn that firms could use the rules to stifle innovation.

But supporters of the legislation claimed it will encourage software development by allowing companies to protect their intellectual property.

“The vote is a major blow to small and medium-sized enterprises,” said committee member Eva Lichtenberger of Austria’s Green Party.

The original legislation was approved by the Council of Ministers in March, but was sent back by the European Parliament with significant alterations.

Laurent Lachal, senior analyst at Ovum, said: “While the idea of software patents is gaining ground, mostly via hard lobbying at government level, there is no guarantee that the European Parliament will change its mind this time.”