Comviva Technologies Limited, a company engaged in the field of mobile and digital solutions, filed Indian Patent Application on 4 January 2016, seeking protection for an invention titled "Methods and Devices for Authent
CS Professional · Intellectual Property Rights - Law and Practice · PYQS · December 2025
Comviva Technologies Limited, a company engaged in the field of mobile and digital solutions, filed Indian Patent Application on 4 January 2016, seeking protection for an invention titled "Methods and Devices for Authentication of an Electronic Payment Card using Electronic Token." The invention related to a secure method of authenticating electronic payment cards through the use of electronic tokens, proximity-based data transfer, and multi-step verification mechanisms, intended to improve the safety and reliability of contactless payment transactions. The application underwent examination by the Patent Office, and on 17 June 2020, the Examiner issued the First Examination Report raising several objections, alleging lack of inventive step and more significantly contending that the claimed subject matter fell within the statutory exclusion from patentability as it was, in the Examiner's view, a mere business method and a computer program per se. Comviva responded to the First Examination Report on 14 June 2021 with detailed submissions and claim amendments to demonstrate the technical nature and inventive step of the invention.Despite the submissions, the Patent Office issued a hearing notice dated 5 April, 2022, granting the applicant an opportunity to address the pending objections. Comviva attended the hearing and filed further written submissions on 20 May, 2022, reiterating that the invention did not automate a mere commercial or financial process, but rather addressed a specific technical problem in the field of transaction authentication. It was argued that the solution relied on secure token generation and validation protocols, data transfer via near-field communication, and additional verification layers that enhanced the security of contactless payments features that could not be dismissed as mere business logic or abstract computer code. Nevertheless, on 25 August, 2022, the Assistant Controller of Patents refused the application, maintaining that the claims were primarily directed towards commercial transaction automation, thus constituting a business method and that they essentially comprised a computer program per se without a demonstrable technical contribution. The refusal order did not accept Comviva's contention that the claimed system operated at a technical level beyond mere software implementation, and the application was rejected in its entirety.Aggrieved by the decision, Comviva Technologies Limited filed an appeal before the Delhi High Court, challenging the refusal on the ground that the Controller had erred in arriving at a decision by equating any invention involving financial transactions with a business method, irrespective of the underlying technical architecture. The appellant emphasized that the claimed invention was not a generic financial solution but a specific technical mechanism for secure electronic payment card authentication, which fell within the category of patentable subject matter when assessed as a whole. The High Court examined the invention in light of the statutory provisions and the 2017 Computer Related Inventions Guidelines, which require consideration of the technical effect or contribution rather than focusing solely on the nature of the transaction. The High Court set aside the Controller's decision and directed that the application proceed towards grant, subject to compliance with other patentability requirements.Answer the following: "While assessing the patentability of computer software per se, the Controller has to see whether the invention results in a technical effect or a technical advancement". Explain with the help of the decided cases.
Answer & Explanation:
Under the Patents Act, 1970, computer software per se is excluded from patentability under Section 3(k), which bars "a mathematical or business method or a computer programme per se or algorithms." However, this exclusion is not absolute. While assessing the patentability of a computer-related invention, the Controller of Patents must examine whether the invention results in a "technical effect" or "technical advancement." The examination is based on the substance of the invention and not merely the form of the claims. This position has been clearly affirmed by the Hon'ble Delhi High Court in Ferid Allani v. Union of India (2019) , wherein the Court held that if a computer-related invention demonstrates a technical contribution, it should not be rejected solely on the ground that it involves a computer program. The Court emphasized that technological developments cannot be ignored and inventions showing technical effect or technical advancement are patentable even if they are implemented through software. The TRIPS Agreement does not expressly provide the exclusion of computer programs in general or business methods in general from patentability. On the other hand, neither the term "invention" nor the term "technology" is defined under the TRIPS Agreement. In effect, in certain countries, patents have been granted to inventions concerning financial services, electronic sales and advertising methods and business methods, including business methods performed on the Internet. In the United States of America, a business method for managing an investment portfolio was found patentable subject matter in State Street Bank & Trust v. Signature Financial Group 149 F. 3d 1368 (Fed. Cir. 1998) . Further, patents are also granted to the inventions such as a system called "virtual sales personnel" and a method of gripping a golf putter. In Europe, in the SOHEI case 1769/92, OJ 1995, 525 , the Boards of Appeal of the European Patent Office (EPO) decided that a computer system involving a number of independent management tasks, including financial and inventory management and a system operation method, was patentable subject matter. In those countries where a patentable invention should have a technical character, since those inventions are often executed by a computer system, drawing a line between inventions that belong to a field of technology and non-inventions is not an easy task. In some countries, claims defining a computer program itself or a computer program embodied on a machine-readable medium (such as diskettes and CD-ROMs) are accepted. This is due to the fact that software products are often marketed in the form of computer readable media or directly over the Internet, separately from the computer hardware. Further, the Computer Related Inventions (CRI) Guidelines issued by the Indian Patent Office provide illustrative examples of technical effect or technical advancement, such as: Improved speed and efficiency Reduced memory usage Enhanced security Improved hardware performance Better resource management Thus, during examination, the Controller is required to determine whether the claimed invention goes beyond a computer programme per se and makes a technical contribution to the art. If such technical effect or advancement is established, the invention may be considered patentable notwithstanding Section 3(k) of the Patents Act, 1970. Therefore, while assessing the patentability of computer software per se, the Controller must evaluate whether the invention results in a technical effect or technical advancement, in light of Section 3(k), CRI Guidelines, and judicial precedents such as Ferid Allani v. Union of India .
Topics: Patents Act, 1970
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