Halifax set to patent online business designs

UK bank, the Halifax, has applied to patent a number of the customer-oriented features behind its Intelligent Finance online banking service - despite the fact that the practice is a grey area in European law.

In the US, legislation passed in 1998 allows Internet firms to patent their business ideas. As a result, Amazon.com currently owns the rights to "one-click" buying, and Priceline.com holds the rights for "reverse bidding".

But despite the difficulty of applying patents to business and design concepts in Europe, Jim Spowart, CEO of Intelligent Finance, said the bank is determined to push ahead.

He told silicon.com that the Halifax's software application is a unique formula, and although he is aware the legal process will be difficult, he's convinced it's achievable.

Sam Hall, enquiries manager with the UK Patent Office, said: "Companies like the Halifax can apply for a patent but they have to meet the requirements of the Patent Act. Software is generally not patentable. Computer issues are such a grey area. It would be for a technical examiner to decide."

Simon Stokes, intellectual property partner with law firm, Tarlo Lyons, claims if UK companies can't patent business processes in Europe, many are prepared to do so in the US.

He said: "I think people have recognised the need to patent, and more European companies are applying to patent in the US because businesses in Europe feel there isn't a level playing field. It will push EU to change laws."

Another UK Patent Office source admits the law is not black and white, and that patenting of Internet initiatives is not impossible. He said: "We concentrate on the technical aspects of a products while the Americans look at the usefulness."

He added that for the time being applying for patents in the US might be the only option open to UK companies there is no plan in the pipeline to change the law.