Europe must bite the bullet on software patenting

The European Commission (EC) is desperate to act in the best interests of small businesses. Whether the policy is on employment or housing or pensions, it would seem it thinks the best way to create a single European market in just about anything is by protecting the continent's powerhouses of the future.

But today it has emerged that the Save our SMEs bandwagon is trundling right over one of the most delicate issues in the IT industry: software patenting.

The good old officials in Brussels are concerned that if they don't allow software to be patented then smaller developers won't be able to protect their financial investments. But if they do allow it, then small end-user companies will have to pay higher licence fees.

It's a headache that has delayed the forthcoming directive on the subject by months. And yet they have still missed the point.

The SME aspect of software patenting is just one element of a much broader picture of innovation.

For as long as a software patent lasts, it can prevent other technological developments in that particular area. But the IT industry must ensure the next generation is free to innovate. If not, how could an idea as good as the internet possibly happen again?

Time limits on software patents are essential. Maximum ten years would be our guess.

The EC won't disclose its thinking on this for several months. But if it is going to steer a clear path on software patenting, it should think beyond its cherished SMEs and navigate instead between the rocky headlands of short-term productivity and blue, blue skies research.