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Japan has allowed software to be patented since a change to the law in 2002.
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Since the 1980s, there has been a general trend in U.S. courts to allow certain aspects of software programs to be patented.
The US patent system allows software implementations of ideas to be patented, which differs significantly from the European Union – although the European Parliament has been considering aligning patent rights with the US.
In 1978, the Court first refused to grant patent protection to a mathematical algorithm, but then in 1981 held that a process having novel elements, which included software, could be patented if the software was tied to a specific machine.
The ECJ ruled in March that a unitary patent system would have to be subject to its jurisdiction, but it isn't clear whether its jurisdiction would include substantive policy decisions such as "can software ideas be patented?" That's because it's not clear how the European Patent Convention relates to the ECJ.
"If the patent represents an abstract idea like 'you should hedge with commodities,' that's not enough, but leave for another day whether software can be patented".
Neither Mr. Bessen nor his company patented anything, in part because his lawyers told him that software couldn't be patented at the time.
A federal court decision in 1998 that software and business methods could be patented also fed the rush to seek patents.
They wanted more clarity on the criteria for what types of software could and could not be patented.
Due to the growing interest of industry, many automatic algorithms, embedded on commercial software, have been patented in the last decade [3].
Soon, software concepts were being patented, and you didn't need to build an example of the concept in question.
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