Today, the Full Court of the Federal Court of Australia handed down its decision in Research Affiliates LLC v Commissioner of Patents [2014] FCAFC 150, regarding the patentability of computer software and business methods.

The Court found that Research Affiliates' invention, a computer-implemented method of calculating a financial index, was not patentable subject matter. The Court held that the claims fail the Australian 'manner of manufacture' test for patentable subject matter, because the computer-generated financial index did not constitute a 'physical' or 'artificial effect'.

However, the Court also cautioned against rigidly applying any formula to the analysis of patentable subject matter. Instead, it directed that the analysis should be accomplished through an understanding of the invention itself, and should 'be understood as a matter of substance and not merely as a matter of form.'

More details to follow shortly.