Network Associates set to spark court battle

Network Associates could end up facing some lengthy court battles after successfully patenting its ASP delivery model.

Legal experts say the move, which effectively leaves Network Associates as the only anti-virus software company allowed to deliver desktop security software via an ASP, will re-ignite the debate on patenting widely used business models.

Amazon and Priceline have already been embroiled in disputes with competitors after they patented commonplace business processes with the US patent office.

Network Associates has defended its action, claiming it initiated the patent process in 1998 when the ASP model was not commonly used.

Jack Clark, European product manager for McAfee told silicon.com: "I don't think we'll have to fight to the death throes on this, but we will rise to any challenges. Competitors will have to work around it or license the technology from us."

But the increasing number of companies using liberal US law to patent business processes has angered many sectors, and some US lawyers now fear the monopolistic results will detrimentally affect the market.

While the US patent office must operate under the latitude provided by US patent law, Simon Stokes, partner with law firm Tarlo Lyons, said it could better research the innovative claims of some business models.

"There is potentially a backlash here because patenting puts constraints on competitors in the market. The patent office has been criticised before because its search methods are better suited to other industries, not the technology and the ASP community, who will be looking hard to see if they can attack it," he said.

Stephen Whybrow, partner with Cameron McKenna, agreed that the US tendency to patent business models will continue to be a contentious issue.

"There is bound to be a lot of litigation. Under the current process it encourages monopoly. This is not what the patent law was originally designed for," he said.

According to Whybrow, UK courts are more sympathetic than their US counterparts to those disputing patents, with over 50 per cent of UK cases last year ruling in favour of those challenging the patent.