US patent law attacks cyberspace

European businesses need to take action on patents now or risk losing out to US rivals, according to UK lawyers.

Runaway patent laws that let companies protect broad business practices are causing a rush of applications in the US.

Business methods are largely exempt from patent protection in Europe, as they were in the US until two years ago. However, clued-up technology companies are now staking claims over business methods Europeans would never think to patent.

Ian Kirby, lawyer with UK law firm, Dibb Lupton Alsop, said European companies could be putting their businesses in danger by ignoring the trend. "To someone familiar with UK and EU patent law, it does seem strange that something as simple as a business method can acquire patent protection - but we can't be parochial in our view of this," he said.

Simon Stokes, partner with UK firm Tarlo Lyons, said: "You have to play the same game. If you think you have practices that are patentable, you would be negligent not to consider filing in the US."

The US Patent Office recently granted a preliminary patent to a California-based co-buying Web site called MobShop (formerly Accompany). MobShop's patent - which it expects to be formally granted by summer- covers group buying.

UK aggregate buying firms like GroupTrade and Letsbuyit.com are unsure about the effect the MobShop patent could have on their businesses in the future.

John Palmer, co-founder of Letsbuyit.com, said: "We are very concerned about patents being granted on business concepts and ideas that seem to be unpatentable."

But Sean Corbett, CEO of GroupTrade, played down the threat from the likes of MobShop. "Filing for patents is a great aggressive strategy. They're trying to play for a lead, but they don't expect it to be upheld in court," he said.