http://news.ft.com/cms/s/0304fe62-8f...00e2511c8.html
Financial Times
SMALLER COMPANIES 'IN FIRING LINE'
By Maija Pesola
Published: March 8 2005 02:00 | Last updated: March 8 2005 02:00
David Chan, lead developer at Clockwork Software, says the new European software patent regime would create the equivalent of "land mines" for software developers like him, who are based at small companies, writes Maija Pesola, IT Correspondent. "Under the old copyright laws, if we were creating our own code without reference to anyone else's work, we knew we wouldn't be infringing anyone's copyright. But under the new legislation, we could infringe a patent without even knowing it was there," says Mr Chan. Larger companies, he said, could afford a few infringements, as they would hold other patents and be in a position to negotiate a deal. But Clockwork - with no patents of its own - would not have this luxury. "We would have to just close our eyes and pray." Clockwork creates specialist business software such as payroll and stock control systems, and has won some reasonably sized deals with customers such as Speedy Hire and Ford. However, a patent challenge by a larger rival would spell financial disaster for the company, based in the West Midlands, which employs just 10 people. There would be no question of being able to foot the legal bill, which would be likely to be in the millions. The only option would be to close up shop, says Mr Chan. It would be useless for Clockwork to file lots of patents to protect itself, as these in themselves would swallow up more money and time than the small business could spare. And it would not, unlike big companies, be able to afford to go to court to enforce them, he adds.




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