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High Court of Australia |
Last Updated: 26 March 1998
ADVANCED BUILDING SYSTEMS
PTY LIMITED & ANOR APPELLANTS
AND
RAMSET FASTENERS (AUST) PTY LIMITED RESPONDENT
1. Appeal allowed with costs.
2. Orders of the Full Court of the Federal Court set aside.
3. Matter remitted to the Full Court for determination of the remaining grounds of appeal to that Court and, if necessary, the redetermination
of the cross-appeal to that Court.
On appeal from the Federal Court of Australia
Representation:
A J L Bannon SC with H R Sorensen for the appellants (instructed by Astridge & Murray)
R C Macaw QC with D M Yates for the respondent (instructed by
Davies Ryan De Boos)
Notice: This copy of the Court's Reasons for Judgment is subject to formal revision prior to publication in the Commonwealth Law
Reports.
Advanced Building Systems Pty Limited & Anor
v Ramset Fasteners (Aust) Pty Limited
Patents - Revocation - Whether an "invention" within meaning of Act - Relationship between obviousness and lack of novelty - Meaning
of "inventive merit".
Patents Act 1952 (Cth), s 100. BRENNAN CJ, GAUDRON, McHUGH AND GUMMOW JJ.
Introduction
Novelty and obviousness
Later, in giving the judgment of this Court in Wellcome Foundation Ltd v V R Laboratories (Aust) Pty Ltd, Aickin J explained that[8]:
Combination claims
This notion of a "new thing" includes a new result, "that is, a new way of achieving an old purpose or the fulfilment of a new purpose"[12], and "a new combination of features to obtain an improved result"[13]. The significance of the exclusion of a "mere collocation of separate parts" appears from the statement by Aickin J in Minnesota Mining and Manufacturing Co v Beiersdorf (Australia) Ltd[14] that it is "the interaction" between the integers which is "the essential requirement". It is this which supplies the inventive step
and denies an allegation of lack of subject-matter in the case of a valid combination patent.
The appeal
The Statute of Monopolies
A definition in similar terms had been contained in s 4 of the Patents Act (Cth) ("the 1903 Act") and that in turn followed the definition in s 46 of the Patents, Designs, and Trade Marks Act 1883 (UK) ("the 1883 Act"). The phrase "and includes an alleged invention" is directed to the inquiry at the stage of examination of
an application before the decision as to acceptance[15]. The present case involves revocation after grant.
So far as relevant, s 6 stated: Revocation
(a) that the applicant was not a person entitled to apply for the patent, so far as the invention is claimed in any claim of the
complete specification ...;
...
(d) that the invention, so far as claimed in any claim of the complete specification ... is not an invention within the meaning of
this Act;
(e) that the invention, so far as claimed in any claim of the complete specification ... was obvious and did not involve an inventive
step having regard to what was known or used in Australia on or before the priority date of that claim;
(f) that the invention, so far as claimed in any claim of the complete specification ... is the subject of a valid claim of earlier
priority date contained in the complete specification of a standard patent ...;
(g) that the invention, so far as claimed in any claim of the complete specification ... was not novel in Australia on the priority
date of that claim;
(h) that the invention, so far as claimed in any claim of the complete specification ... is not useful;
...
(k) that the patent was obtained on a false suggestion or representation;
(l) that the invention, so far as claimed in any claim of the complete specification ... was secretly used in Australia before the
priority date of the claim;
...
(2) For the purposes of paragraph (1)(e) or (g), account shall not be taken of any secret use.
(3) For the purposes of paragraph (1)(l), account shall not be taken of any use of the invention, so far as claimed in any claim -
(a) for the purpose of reasonable trial or experiment only; or
(b) by a department or authority of the Commonwealth, or of a State or Territory, or by a person authorized by such a department
or authority, where the patentee, or a person from whom he derives his title, has communicated or disclosed the invention, so far
as so claimed, to the department, authority or person." The judgments in the Federal Court
(b) the Frimeda advertisement in a 1977 German publication; and
(c) the advertisement which appeared in The Concrete Year Book 1980, an English publication ... A combination patent may be valid even if each integer, when considered separately, is well known; but in that case the combination
itself must be new".
It follows that the clutch as claimed in the Australian patent was not a manner of new manufacture at the priority date, and thus
is not capable of supporting the validity of the Australian patent. There is no inventive merit beyond what was already publicly
known. There is therefore no invention for the purposes of s 100(1)(d) of the Act."
The construction of s 100 of the Act 1952
It will be observed that s 100(2), which requires that account not be taken of any secret use for the purposes of the grounds
dealing with obviousness and lack of novelty, removes secret use from what otherwise might have been its relevance to any further
grounds upon an application for revocation. In particular, s 100(2) assumes that issues of obviousness and lack of novelty
are extracted by pars (e) and (g) of s 100(1) from what otherwise may have been their inclusion (by means of par (d))
in the general concept of invention within the ambit of s 6 of the Statute of Monopolies. Novelty and obviousness are dealt
with specifically and exhaustively in pars (e) and (g). There remains no scope for the doctrine of secret use, as a qualification
to obviousness and novelty, in par (d), and in s 100(2), no occasion to refer to par (d).
On the other hand, "manufacture" in s 6 is not restricted to vendible processes or their products and may include agricultural
and horticultural processes involving the selective use of herbicides[44].
Philips v Mirabella
It was unnecessary to adduce evidence of the prior art base and to compare the invention claimed with the prior art base for the
purposes of s 18(1)(b) if the absence of inventiveness appeared on the face of the specification[56]. Their Honours also said that[57]:
Orders
2. Legislation for the grant of patents necessarily involves striking a balance between competing, and sometimes conflicting, policy
objectives. The Industrial Property Advisory Committee in its 1984 report on patents expressed well the general objective to be
attained[59]: 3. Whilst, for the reasons explained by the majority, this case is to be decided under the Patents Act (Cth) ("the 1952 Act"), the Court's holding is unlikely to be confined to decisions under the 1952 Act. It is true that there are
some structural differences between the 1952 Act and the Patents Act 1990 (Cth) ("the 1990 Act"). Nevertheless, it is clear that the 1990 Act was not enacted with the general intention of significantly altering the Australian law on patents. From a comparison of the text
of the two Acts, and a consideration of the second reading speeches[60] and the explanatory memorandum[61] which preceded the 1990 Act, it is evident that the general legislative objective in enacting the 1990 Act was substantially to clarify and codify the law and not significantly to amend it. In particular, as the majority in this Court
said in N V Philips Gloeilampenfabrieken v Mirabella International Pty Ltd[62]: Grounds of appeal
2. The Full Federal Court rejected a challenge on the grounds of lack of novelty[64]. That issue has also not troubled this Court.
3. Having found the patent invalid on the basis that the invention claimed in the specification was not an "invention" within the
meaning of the 1952 Act 1623 [65], the Full Court held that it was unnecessary to deal with two other grounds of challenge[66], namely that the letters patent were obtained upon false suggestions and representations[67], and that the person who applied for the patent was not a person who was entitled to do so[68]. These challenges have likewise not been pressed in this appeal. What constitutes an "invention"?
(d) that the invention, so far as claimed ... is not an invention within the meaning of this Act;"
It is worth observing, in elaboration of the comment made above, that these provisions are, for relevant purposes, indistinguishable
from the corresponding provisions in the 1990 Act[69].
The holding in Philips
The present patent application
2. In determining whether an alleged invention was a "manner of new manufacture" within the statutory definition, a court is not confined
to the face of the specification itself. Such a test is consistent with the broad interpretation of "newness" which has been adopted
by this Court in past cases[77]. As the majority in Philips stated[78]: The second argument against going beyond the face of the specification when considering s 100(1)(d) is that the construction
of s 100(1) specifically authorises the decision-maker to go beyond the specification when considering novelty and inventive
step. This Court, it is argued, should prefer a construction of the legislation which preserves a discrete role for s 100(1)(d)
to one in which there is overlap between it and the tests of novelty and inventive step. Accordingly, as the legislature has clearly
indicated those materials outside the specification which may be taken into account under ss 100(1)(e) and 100(1)(g), the inquiry
under s 100(1)(d) should be confined to the face of the specification.
The chief flaw in this argument is the presumption that it is possible to determine, without going beyond the specification, whether
an alleged invention satisfies s 100(1)(d), and hence, within s 6, is a "manner of new manufacture the subject of letters
patent and grant of privilege within section 6 of the Statute of Monopolies". Yet s 6 of the Statute of Monopolies (Imp) (21 Jac I c 3) states a broad test indeed. It provides that a patent shall only be granted if the alleged invention:
For these reasons, it is my view that in deciding whether the alleged invention is a manner of new manufacture, ie has the necessary
qualities of "newness" as explained, a court may look to prior publications, including the three published advertisements to which
the Full Court directed its attention in this case[79].
Differences from the majority
2. It is disingenuous, in my respectful opinion, to suggest that the Full Court's use of the word "new" should be interpreted as a
reference to novelty, as the majority suggest. The test of newness was explicitly stated by this Court in Philips[88]. As this Court has made clear, the test of newness is distinct from the test of novelty. It is the former that the Full Court proceeded
to apply. It was not only that Court's duty to do so. It was a correct application of the law.
3. As a corollary of this distinction, it follows that the same matters might fall to be considered both when deciding newness, and
when addressing novelty and inventive step. The overlap of the grounds stated in the legislation has long been recognised[89] and is acknowledged by the majority themselves. A notion of newness is inherent in the concept of novelty (s 100(1)(g)) as
it is in the concept and definition of "invention" itself (s 100(1)(d)). The test of newness is, in this respect, a threshold
one. Thus, the same matters that might be relevant to a consideration of newness might, if that test be satisfied, also be taken
into consideration in determining the issues of novelty and inventive step. Likewise, simply because a matter might be relevant
to the issue of novelty or inventive step, it does not follow that it cannot arise when newness is being assessed for the purpose
of deciding whether an item of manufacture reaches the threshold test of being an "invention" at all. Orders
[1] Regulation 23.26(1) of the Patents Regulations provides: "The 1952 Act applies to an action or proceeding made or started under that Act and not finally dealt with or determined before the
commencing day:
(a) in which the validity of a patent is disputed; or
(b) concerning infringement of a patent."[2] Advanced Building Systems Pty Ltd v Ramset Fasteners (Aust) Pty Ltd (1993) 26 IPR 171.
[3] Advanced Building Systems Pty Ltd v Ramset Fasteners (Aust) Pty Ltd [1995] AIPC ¶91-129.
[4] Ramset Fasteners (Aust) Pty Ltd v Advanced Building Systems Pty Ltd (1996) 66 FCR 151.
[5] Advanced Building Systems Pty Ltd v Ramset Fasteners (Aust) Pty Ltd (1993) 26 IPR 171 at 184-188.
[6] Ramset Fasteners (Aust) Pty Ltd v Advanced Building Systems Pty Ltd (1996) 66 FCR 151 at 168.
[7] [1961] HCA 39; (1961) 180 CLR 98 at 111.
[8] [1981] HCA 12; (1981) 148 CLR 262 at 270.
[9] Graham Hart (1971) Pty Ltd v S W Hart & Co Pty Ltd [1977] HCA 5; (1978) 141 CLR 305 at 330.
[10] [1960] HCA 91; (1961) 106 CLR 588.
[11] [1960] HCA 91; (1961) 106 CLR 588 at 611.
[12] Palmer v Dunlop Perdriau Rubber Co Ltd [1937] HCA 43; (1937) 59 CLR 30 at 67. See also at 71-75.
[13] Meyers Taylor Pty Ltd v Vicarr Industries Ltd [1977] HCA 19; (1977) 137 CLR 228 at 249.
[14] [1980] HCA 9; (1980) 144 CLR 253 at 266.
[15] Rogers v Commissioner of Patents [1910] HCA 19; (1910) 10 CLR 701 at 706, 708, 713; Commissioner of Patents v Microcell Ltd [1958] HCA 58; (1959) 102 CLR 232 at 245-246.
[16] National Research Development Corporation v Commissioner of Patents [1959] HCA 67; (1959) 102 CLR 252 at 269.
[17] National Research Development Corporation v Commissioner of Patents [1959] HCA 67; (1959) 102 CLR 252 at 269.
[18] Minnesota Mining and Manufacturing Co v Beiersdorf (Australia) Ltd [1980] HCA 9; (1980) 144 CLR 253 at 289.
[19] American Cyanamid Company (Dann's) Patent [1971] RPC 425 at 435-436.
[20] Wellcome Foundation Ltd v V R Laboratories (Aust) Pty Ltd [1981] HCA 12; (1981) 148 CLR 262 at 272.
[21] [1971] RPC 425 at 436; cf Biogen Inc v Medeva plc [1997] RPC 1 at 31-32, 41-42. See also the discussion by Aickin J in Minnesota Mining and Manufacturing Co v Beiersdorf (Australia) Ltd [1980] HCA 9; (1980) 144 CLR 253 at 289-291.
[22] Patents Act (UK), s 32.
[23] Hindmarch, A Treatise on the Law Relating to Patent Privileges, (1846) at 378 (footnotes omitted). See also Carpmael, The Law of Patents for Inventions, 5th ed (1852) at 115-116; Prestige Group (Australia) Pty Ltd v Dart Industries Inc (1990) 26 FCR 197 at 198, 213-218.
[24] Ramset Fasteners (Aust) Pty Ltd v Advanced Building Systems Pty Ltd (1996) 66 FCR 151 at 169.
[25] (1996) 66 FCR 151 at 167.
[26] Welch Perrin & Co Pty Ltd v Worrel [1960] HCA 91; (1961) 106 CLR 588 at 611; Minnesota Mining and Manufacturing Co v Beiersdorf (Australia) Ltd [1980] HCA 9; (1980) 144 CLR 253 at 266; Elconnex Pty Limited v Gerard Industries Pty Limited (1991) 32 FCR 491 at 509-510; Fallshaw Holdings Pty Ltd v Flexello Castors and Wheels plc (1993) 26 IPR 565 at 570.
[27] (1996) 66 FCR 151 at 168.
[28] Lane Fox v Kensington and Knightsbridge Electric Lighting Company [1892] 3 Ch 424 at 430-431.
[29] Longbottom v Shaw (1891) 8 RPC 333 at 337.
[30] Wellcome Foundation Ltd v V R Laboratories (Aust) Pty Ltd [1981] HCA 12; (1981) 148 CLR 262 at 286.
[31] For example, Harwood v Great Northern Railway Co (1860) 2 B & S 194 at 208 [121 ER 1044 at 1050]; Penn v Bibby (1866) 2 Ch App 127 at 136; Hinks & Son v Safety Lighting Co (1876) 4 Ch D 607 at 615-616; Longbottom v Shaw (1891) 8 RPC 333 at 338; Lane Fox v Kensington and Knightsbridge Electric Lighting Company [1892] 3 Ch 424 at 429. See also National Research Development Corporation v Commissioner of Patents [1959] HCA 67; (1959) 102 CLR 252 at 263.
[32] The Present Law and Practice Relating to Letters Patent for Inventions, (1913) at 19. See also Edmunds, The Law and Practice of Letters Patent for Inventions, 2nd ed (1897) at 89-95.
[33] [1960] HCA 91; (1961) 106 CLR 588.
[34] [1961] HCA 39; (1961) 180 CLR 98.
[35] The particulars of objection in Welch Perrin & Co Pty Ltd v Worrel are set out in the report: [1960] HCA 91; (1961) 106 CLR 588 at 589-590.
[36] [1961] HCA 39; (1961) 180 CLR 98 at 111.
[37] [1961] HCA 39; (1961) 180 CLR 98 at 112-113.
[38] Elias v Grovesend Tinplate Company (1890) 7 RPC 455 at 467.
[39] Notably, Cornish v Keene (1835) 1 Web Pat Cas 501 at 512.
[40] [1951] HCA 45; (1951) 83 CLR 539 at 548.
[41] Joos v Commissioner of Patents [1972] HCA 38; (1972) 126 CLR 611 at 623. See also as to the phrase "generally inconvenient" Rolls-Royce Ltd's Application (Manner of Manufacture) [1963] RPC 251 at 255.
[42] Carpmael, The Law of Patents for Inventions, 5th ed (1852) at 34.
[43] [1914] HCA 42; (1914) 18 CLR 423 at 429.
[44] National Research Development Corporation v Commissioner of Patents [1959] HCA 67; (1959) 102 CLR 252 at 277-279.
[45] [1995] HCA 15; (1995) 183 CLR 655.
[46] (1996) 66 FCR 151 at 165, 166-167, 169.
[47] Section 138(3) states: "After hearing the application, the court may, by order, revoke the patent, either wholly or so far as it relates to a claim, on
one or more of the following grounds, but on no other ground:
(a) that the patentee is not entitled to the patent;
(b) that the invention is not a patentable invention;
(c) that the patentee has contravened a condition in the patent;
(d) that the patent was obtained by fraud, false suggestion or misrepresentation;
(e) that an amendment of the patent request or the complete specification was made or obtained by fraud, false suggestion or misrepresentation;
(f) that the specification does not comply with subsection 40(2) or (3)."[48] Section 18 provides: "(1) Subject to subsection (2), a patentable invention is an invention that, so far as claimed in any claim:
(a) is a manner of manufacture within the meaning of section 6 of the Statute of Monopolies; and
(b) when compared with the prior art base as it existed before the priority date of that claim:
(i) is novel; and
(ii) involves an inventive step; and
(c) is useful; and
(d) was not secretly used in the patent area before the priority date of that claim by, or on behalf of, or with the authority of,
the patentee or nominated person or the patentee's or nominated person's predecessor in title to the invention.
(2) Human beings, and the biological processes for their generation, are not patentable inventions."[49] [1995] HCA 15; (1995) 183 CLR 655 at 656.
[50] [1995] HCA 15; (1995) 183 CLR 655 at 663, 666.
[51] [1995] HCA 15; (1995) 183 CLR 655 at 663-664.
[52] Commissioner of Patents v Microcell Ltd [1958] HCA 58; (1959) 102 CLR 232 at 251; National Research Development Corporation v Commissioner of Patents [1959] HCA 67; (1959) 102 CLR 252 at 262. See also Elias v Grovesend Tinplate Company (1890) 7 RPC 455 at 468; Henry Berry & Co Pty Ltd v Potter [1924] HCA 43; (1924) 35 CLR 132 at 138-140, 141-142; Fletcher Moulton, The Present Law and Practice Relating to Letters Patent for Inventions, (1913) at 25-37.
[53] In the Matter of an Application for a Patent by Compagnies Reunies des Glaces et Verres Speciaux du Nord de la France (1930) 48 RPC 185 at 188; Commissioner of Patents v Microcell Ltd [1958] HCA 58; (1959) 102 CLR 232 at 250. See also R v Patents Appeal Tribunal; Ex parte Swift & Co [1962] 2 QB 647 at 661.
[54] [1995] HCA 15; (1995) 183 CLR 655 at 663.
[55] [1995] HCA 15; (1995) 183 CLR 655 at 664.
[56] [1995] HCA 15; (1995) 183 CLR 655 at 659.
[57] [1995] HCA 15; (1995) 183 CLR 655 at 667.
[58] The Mullard Radio Valve Co Ltd v Philco Radio and Television Corporation of Great Britain Ltd (1936) 53 RPC 323 at 339 per Lord Macmillan.
[59] Industrial Property Advisory Committee, Patents, Innovation and Competition in Australia (1984) at 12.
[60] Second Reading Speech, House of Representatives, Parliamentary Debates (Hansard), 1 June 1989 at 3479-3483 (esp 3483); Second Reading Speech, House of Representatives, Parliamentary Debates (Hansard), 10 October 1990 at 2565-2567. Because of a legislative backlog, the Bill lapsed when the Parliament was prorogued
and then dissolved for the March 1990 election. The Bill was subsequently reintroduced.
[61] Senate, Patents Bill 1990. Explanatory Memorandum (1990) at pars 1-6.
[62] [1995] HCA 15; (1995) 183 CLR 655 at 668, quoting with approval from Lockhart J in the Full Court. See (1993) 44 FCR 239 at 263.
[63] Advanced Building Systems v Ramset (1993) 26 IPR 171.
[64] Ramset Fasteners v Advanced Bldng Systems (1996) 66 FCR 151 at 164.
[65] s 100(1)(d).
[66] Ramset Fasteners v Advanced Bldng Systems (1996) 66 FCR 151 at 169.
[67] Contrary to the 1952 Act, s 100(1)(k). See (1996) 66 FCR 151 at 163.
[68] Contrary to the 1952 Act, s 100(1)(a). See (1996) 66 FCR 151 at 163-164.
[69] 1990 Act, s 18(1) ("a patentable invention is an invention ...") and the definition of "invention" in Sched 1 (which is identical to that in the
1952 Act).
[70] [1995] HCA 15; (1995) 183 CLR 655 at 663 (footnotes omitted).
[71] [1995] HCA 15; (1995) 183 CLR 655 at 664.
[72] [1995] HCA 15; (1995) 183 CLR 655 at 661.
[73] (1915) 32 RPC 348 at 349, quoted with approval in Commissioner of Patents v Microcell Ltd [1958] HCA 58; (1959) 102 CLR 232 at 247 and National Research Development Corporation v Commissioner of Patents [1959] HCA 67; (1959) 102 CLR 252 at 262 (emphasis added).
[74] [1995] HCA 15; (1995) 183 CLR 655 at 661.
[75] [1958] HCA 58; (1959) 102 CLR 232 at 251.
[76] Ramset Fasteners v Advanced Bldng Systems (1996) 66 FCR 151 at 168.
[77] Commissioner of Patents v Microcell Ltd [1958] HCA 58; (1959) 102 CLR 232 at 251; N V Philips Gloeilampenfabrieken v Mirabella International Pty Ltd [1995] HCA 15; (1995) 183 CLR 655 at 661-664.
[78] [1995] HCA 15; (1995) 183 CLR 655 at 667.
[79] Ramset Fasteners v Advanced Bldng Systems (1996) 66 FCR 151 at 167-169.
[80] Ramset Fasteners v Advanced Bldng Systems (1996) 66 FCR 151 at 166-167.
[81] Ramset Fasteners v Advanced Bldng Systems (1996) 66 FCR 151 at 167.
[82] Ramset Fasteners v Advanced Bldng Systems (1996) 66 FCR 151 at 166.
[83] Ramset Fasteners v Advanced Bldng Systems (1996) 66 FCR 151 at 168.
[84] Ramset Fasteners v Advanced Bldng Systems (1996) 66 FCR 151 at 166, 167.
[85] Ramset Fasteners v Advanced Bldng Systems (1996) 66 FCR 151 at 167.
[86] Wellcome Foundation Ltd v V R Laboratories (Aust) Pty Ltd [1981] HCA 12; (1981) 148 CLR 262 at 270.
[87] Commissioner of Patents v Microcell Ltd [1958] HCA 58; (1959) 102 CLR 232 at 247.
[88] [1995] HCA 15; (1995) 183 CLR 655 at 663-664.
[89] Sunbeam Corporation v Morphy-Richards (Aust) Pty Ltd [1961] HCA 39; (1961) 180 CLR 98 at 112.
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"When want of novelty was asserted, the thing or process claimed as an invention was assumed to be an invention that is the product
of the inventive faculties; but it was said that it was not now at the date of the patent, having been earlier invented and disclosed
to the public. When want of subject matter, or lack of inventiveness, was asserted the thing or process claimed as an invention
was assumed to be a new thing or process not previously disclosed to the public; but it was said that it was not really an invention
and thus not a proper subject matter for the grant of a patent."
"the question of obviousness involves asking the question whether the invention would have been obvious to a non-inventive worker
in the field, equipped with the common general knowledge in that particular field as at the priority date, without regard to documents
in existence but not part of such common general knowledge".
"It was not seriously disputed that it is for a combination, in the sense that word bears in patent law. That is to say, what is
described is a machine, the elements of which are all well known and simple mechanical integers, but combined so that they are not
a mere collocation of separate parts, but interact to make up a new thing."
"'invention' means any manner of new manufacture the subject of letters patent and grant of privilege within section 6 of the
Statute of Monopolies, and includes an alleged invention". (emphasis added)
"Is this a proper subject of letters patent according to the principles which have been developed for the application of s 6
of the Statute of Monopolies?"
"That any Declaration before-mentioned shall not extend to any Letters Patents and Grants of Privilege for the Term of Fourteen Years
or under, hereafter to be made, of the sole Working or Making of any Manner of new Manufactures within this Realm, to the true and
first Inventor and Inventors of such Manufactures, which others at the Time of Making such Letters Patents and Grants shall not use,
so as also they be not contrary to the Law, nor mischievous to the State, by raising Prices of Commodities at home, or Hurt of Trade,
or generally inconvenient: The said Fourteen Years to be accounted from the Date of the first Letters Patents, or Grant of such
Privilege hereafter to be made, but that the same shall be of such Force as they should be, if this Act had never been made, and
of none other."
"The material particulars respecting an alleged invention for which a party seeks to obtain a patent, must, as has already been observed,
be stated in the petition for the patent. The petition must therefore state, that the petitioner is the inventor or importer of
the invention, and that the invention possesses the qualities of novelty, utility, &c, so as to be the proper subject of a grant
by patent. The substance of the petition for a patent is always recited in the patent itself, and therefore the patent itself shows
upon what representations of the patentee it has been granted; and if the patentee has represented any thing which was untrue in
any material particular, or has induced the Crown to make an illegal grant, the patent is entirely void."
"(1) A standard patent may be revoked, either wholly or in so far as it relates to any claim of the complete specification ... on
one or more of the following grounds, but on no other ground:
"The type of hoisting attachment with which the present invention is concerned is shown in US patent 3,883,170."
"In our view, for the reasons we have given, it is necessary to take into account the publications in Australia before the priority
date. These are as follows:
(a) the advertisement inserted by Burke into a United States publication;
Once these publications are taken into account, we agree with his Honour's conclusion that the invention claimed in the Australian
patent involved no inventive step.
"All the integers of the Australian invention had previously been revealed in the US patent and in publications in Australia. This
leads to the conclusion that there is no new combination in the Australian patent. It is not a true combination patent; but a mere
collocation of well-known integers.
"As to the first of the abovementioned objections, namely that there is no invention within the meaning of the Act, this objection
throws one back to the definition of 'invention' in the Act, which in turn takes one back to all the learning that has gathered around
the words 'manner of new manufacture' in the Statute of Monopolies. But the particulars of objections allege as the reason why there
is no invention here, that the alleged invention 'did not involve any inventive ingenuity in the light of the prior art as disclosed
by prior publications hereinafter referred to'. It thus appears from the particulars, and it was made clear by the argument, that
the matters that are relied upon to support this head of objection are those that are raised by the other two heads, namely obviousness
(s 100(1)(e)) and want of novelty (s 100(1)(g)). It is therefore unnecessary to consider this head of objection separately
in this case."
"[a]lthough if an invention is practised openly or made known publicly before an application for a patent is made, the patent if granted
will be void, the law has long made a qualification in favour of user which is experimental or secret."
"Assuming, therefore, the idea is original that the best conditions are fermentation short of putrefaction, still without some practical
means of carrying out that idea so as to add to the sum of human art - not merely human discovery - the idea is not patentable."
"if it is apparent on the face of the specification that the quality of inventiveness necessary for there to be a proper subject of
letters patent under the Statute of Monopolies is absent, one need go no further".
"it would border upon the irrational if a process which was in fact but a new use of an old substance could be a 'patentable invention'
under s 18 if, but only if, that fact were not disclosed by the specification".
1. Patent legislation is not interpreted in a vacuum. The task of this Court is to construe the legislation. However, where there
is an ambiguity, it may sometimes be useful to turn to pre-existing judicial law to help resolve the ambiguity. This is because
the legislation includes "all the stereotyped pleas long familiar in patent practice which have now been given statutory recognition"[58].
"Patents are intended to stimulate ... innovation by offering the possibility of greater profits than could have been obtained if
open competition existed. But the benefits gained from innovation fostered by the existence of the patent system must be balanced
against the costs to society caused by the restrictions which patents place upon the use of the inventions to which they relate.
For while the purpose of the patent system is to provide an incentive to innovation, patents also create entry barriers which prevent
or retard the diffusion of innovation by imitation; that is to say, a patent confers a degree of monopoly power which has inherent
anti-competitive effects. It has both social benefits and social costs."
Exactly where the balance lies between the benefits and costs is determined by the legislature in the terms of the Act. However,
this Court cannot be unaware of the implications of changes in the world in which patent law operates. By raising the barriers to
patentability, there is a risk that Australian entrepreneurs will be discouraged from research and development in new technology.
If the barriers are raised too far, there is a further risk that Australia's standing and the reputation of its market will be diminished
in the eyes of the international community where patent law operates. Yet lowering the threshold has its own dangers - chief
among them being the possibility that Australia's patent system might be misused as an instrument to secure and protect a particular
market share, relevantly where no invention or novel claim has earned that protection.
"[T]he combination of s 18(1)(a) of the 1990 Act and Sch 1 thereto (where it defines 'invention') continues in force the notion of 'manner of new manufacture' present in s 100(1)(d)
of the 1952 Act."
1. A challenge on the grounds of obviousness was abandoned at trial[63], and has not been renewed.
"(1) A standard patent may be revoked ... on one or more of the following grounds, but on no other ground:
...
"'invention' means any manner of new manufacture the subject of letters patent and grant of privilege within section 6 of the Statute
of Monopolies, and includes an alleged invention;"
"In essence, Philips' argument is that the members of the Federal Court fell into error by failing to recognise that s 18(1)(b)'s requirements of novelty and inventive step (when compared with the identified applicable prior art base) are exclusive and exhaustive
in so far as inventiveness (whether of step or idea) is concerned with the result that, if those requirements are satisfied, it is
simply irrelevant that the subject matter of the claim as identified in the specification lacks the quality of inventiveness required
by the principles which have been developed for the application of s 6 of the Statute of Monopolies. Expressed in other words, Philips' argument is that the fact that a claimed use is 'nothing but ... a new use of an old substance'
and therefore 'outside the whole scope of what is known as an invention' under traditional principles of patent law will not of itself
preclude it from being a proper subject of letters patent under the Act. In our view, Philips' argument should be rejected. Our
reasons for rejecting it diverge, however, from the reasons advanced in Mirabella's primary argument which focused upon the phrase
'manner of manufacture' in par (a) of s 18(1). The primary focus of inquiry should, as we have indicated, be upon the opening
words ('... a patentable invention is an invention that ... ') of that sub-section which impose a threshold requirement which must
be satisfied before one reaches that contained in the body of par (a)."
1. The patent was not a true combination patent - but a mere collocation of well-known integers[76].
"[I]t would border upon the irrational if a process which was in fact but a new use of an old substance could be a 'patentable invention'
... if, but only if, that fact were not disclosed by the specification."
Two arguments may be raised against such a contention. The first is that the phrase "so far as claimed in any claim of the complete
specification" in s 100(1)(d) confines the decision-maker to considering only the specification. This proposition can be rejected
quite readily. Sections 100(1)(e) (inventive step) and 100(1)(g) (novelty) also contain the phrase "so far as claimed in any claim
of the complete specification". Yet it is plain that, in considering whether an alleged invention is obvious or novel, it is necessary
to go beyond the face of the specification in determining these qualities. If the phrase does not restrict the inquiry under ss 100(1)(e)
and 100(1)(g), it can hardly be said to restrict the inquiry under s 100(1)(d).
"[B]e not contrary to the Lawe nor mischievous to the State, by raisinge of the prices of Comodities at home, or hurt of Trade, or
generallie inconvenient".
Such an investigation could not be undertaken without regard being had to matters outside the specification. The s 100(1)(d)
test is one of substantial breadth. Inevitably, it must overlap with the tests of novelty and inventive step.
3. Adopting this approach, the alleged invention does not satisfy the test set out in s 100(1)(d) of the 1952 Act 1949 [80], in light of the interpretation by this Court in Philips of the corresponding provision in the 1990 Act. In particular, it fails to do so when the three advertisements[81], referred to by the Full Court, are taken into account. These publications could not be taken into account in considering the issue
of obviousness, as they cannot be shown to have entered the body of common general knowledge in Australia. But in determining newness,
in the sense of a manner of new manufacture, the decision-maker is permitted to go beyond the face of the specification.
1. In my respectful view, the majority's reasoning is founded on an overly narrow reading of the holding in Philips. The use of the phrase "inventive merit" by the Full Court was unfortunate, as I have agreed. But what the Full Court there had
in mind was clearly not that the patent was obvious, nor that it lacked novelty. As I have pointed out, the Full Court had already
put both of these grounds to one side and so their Honours were clearly not referring to those grounds. Instead, the ground upon
which they determined invalidity was that explained by this Court in Philips - namely that the alleged invention did not satisfy the general threshold test of "newness", ie the necessary quality of
inventiveness involved in a manner of new manufacture within the Statute of Monopolies.
URL: http://www.austlii.edu.au/au/cases/cth/HCA/1998/19.html