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Some countries that once supported the idea of software patents have reversed their positions. One side is arguing that patents are needed to spur innovation and protect intellectual property, while the other side says patents actually would stifle innovation and prevent smaller companies from being able to compete.

A proposed law intended to bring together the software patent rules of 25 countries in the European Union has been criticized by the European Parliament, which threw out the proposal and demanded that the decision-making process be restarted.

It is now up to the European Commission to decide whether to follow the Parliament's demand. If it decides to start fresh, the move potentially could delay passage of the bill by at least several months and result in a substantially changed proposal.

Current laws do not permit software patents, although some have been registered. At issue in the current discussions is a clause in the European Patent Convention, passed in 1973, which contains an exclusion on software patents.

Source: NewsFactor

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