European Parliament stands up for innovation

By Alex Singleton | 6 July 2005

The European Parliament in Strasbourg has thrown out, by 648 to 14 votes, a draft law for EU-wide software patents. The patent scheme was being pushed by Microsoft and a number of other dominant companies. But smaller software companies like Red Hat opposed the idea, knowing full well it was an attempt to stifle the ability of new companies to enter the software market.

Because the competitive process spurs companies to innovate, EU-wide software patents would have reduced innovation by reducing the ability of start-ups to compete. For Microsoft, the draft law had considerable merit: it would have undermined the ability of the open source software industry to develop products. Frankly, Microsoft is a strong enough competitor already.

In the software industry, programmers are protected by copyright - you cannot legally copy another programmer's work without permission. That protection enables the market to come up with innovative new software. Software patents are a protection too far. Strengthening them with an EU-wide law would have increased the power of incumbents. The European Parliament's decision today is the right one.