RESTRICTED
WORLD TRADE IP/Q3/AUT/1
22October 1997
ORGANIZATION(97-4624)
Original: English Council forTrade-Related Aspects
ofIntellectual Property Rights
REVIEW OFLEGISLATION INTHE FIELDS OFPATENTS, LAYOUT-DESIGNS
(TOPOGRAPHIES) OFINTEGRATED CIRCUITS, PROTECTION OF
UNDISCLOSED INFORMATION AND CONTROL OF
ANTI-COMPETITIVE PRACTICES IN
CONTRACTUAL LICENCES
Austria1
ThepresentdocumentreproducesthequestionsputtothedelegationofAustriaandtheresponses
given inthereview oflegislation onpatents, layout-designs (topographies) ofintegrated circuits,
protection ofundisclosed information andcontrol ofanti-competitive practices incontractual licences
attheCouncil 'smeeting of26-30 May1997.2
_______________
I. REPLY TOTHE GENERAL QUESTION CONCERNING PRIORITY RIGHTS3
Doesyourcountry recognize aright ofpriority onthebasis ofanearlier patent application
filedinanyother WTO Member byanational ofaWTO Member?
Yes.
InAustria priority rights maybeclaimed onthebasisoftheParis Convention oronthebasis
ofinternational agreements. TheTRIPS Agreement isconsidered tobesuchamultilateral agreement
forming thebasis forthegranting ofpriority rights. Therefore Austria recognizes arightofpriority
onthebasis ofanearlier patent application filedinanyother WTO Member byanational ofaWTO
Member.
1Asregards lawsandregulations relevant totheareas under review asnotified byAustria under Article 63.2 ofthe
Agreement, reference ismade todocuments IP/N/1/AUT/1/Rev.2, IP/N/1/AUT/1/P/1-6 andP/3/Rev.1, IP/N/1/AUT/L/1-2
andL/1/Add.1 andIP/N/1/AUT/U/1. Subsequent tothemeeting oftheTRIPS Council of26-30 May1997, asupplementary
notification concerning supplementary protection certificates wasreceived from thedelegation ofAustria anddistributed
asreflected indocument IP/N/1/AUT/P/3/Add.1.
2Theminutes ofthemeeting have been circulated indocument IP/C/M/13.
3Atthemeeting oftheTRIPS Council of27February 1997, Members agreed torespond tothisquestion inthecontext
thepresent review (document IP/C/M/12, paragraph 18).IP/Q3/AUT/1
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II. REPLIES TOQUESTIONS POSED BYJAPAN
1. Inyour country, arethefollowing subject matters protectable bypatent: (1)plants and
animals, and(2)plant andanimal varieties?
Forplantoranimal varieties (animal races) oressentially biological processes fortheproduction
ofplants oranimals, patents arenotgranted. Plants, animals, microorganisms assuch and
microbiological processes andtheproducts thereof arepatentable (seeSection 2,subsection 3ofthe
Austrian Patent Law).
2. Inyour country, istheactofoffering forsaleincluded intheexclusive rights ofpatent?
Yes(seeSection 22,subsection 1oftheAustrian Patent Law).
3. Inyour country, what kinds ofactsarerecognized asexceptions totheexclusive rights
conferred byapatent right?
According toSection 26oftheAustrian Patent Law, thepatent shallhavenoeffect inthecase
ofvehicles andfittings ofvehicles which enter Austria onlytemporarily inthecourse oftheirusein
traffic.
Ifthepatent isusedprivately, i.e.notindustrially (seeSection 22oftheAustrian Patent Law),
nopermission isrequired.
4. Inyourcountry,inwhichcaseisusewithouttheauthorizationoftherightholderpermitted,
including usebythegovernment orbythird parties authorized bythegovernment?
Thecriteria thatmustbefulfilled toobtain acompulsory licence inAustria arelaiddown in
Section 36oftheAustrian Patent Law. Since 1945 nocompulsory licence hasbeenapplied for.
According toSection 23oftheAustrian Patent Lawapatent shallnotbeeffective against a
person who, atthetimeoffiling, hadalready begun -ingood faith-tousetheinvention inAustria
orhadmade thenecessary arrangements fordoing so(prior user).
5. Inyourcountry, howistheobligation under Articles 34.1and34.2oftheTRIPS Agreement
regarding theshiftoftheburden ofproof incivilproceedings forpatent infringement related
toaprocess patent implemented?
AccordingtoSection155oftheAustrianPatentLawinthecaseforaprocessforthemanufacture
ofanewsubstance, anysubstance withthesame composition shall-pending proof ofthecontrary -
beregarded ashaving beenmanufactured according tothepatented process.
6. Please explain howundisclosed information isprotected inyourcountry, asrequired by
Article 39.2oftheTRIPS Agreement.
According toSection 11subsection 1oftheAustrian Federal LawAgainst Unfair Competition
anyperson who-asanemployee ofanenterprise -divulges without authorization trade orindustrial
secrets confined tohimduring histermofemployment shallbesentenced bythecourt toatermof
imprisonment notexceeding three months orafinenotexceeding 180times theperdiem rate.
According toSection 11subsection 2oftheAustrian Federal LawAgainst Unfair Competition
thesamepenalty shallbeincurred byanyperson who,without authorization, exploits orcommunicatesIP/Q3/AUT/1
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toother persons, forthepurposes ofcompetition, tradeorindustrial secrets ofwhich hehasknowledge
asaresult ofoneofthecommunications referred toinsubsection 1orthrough anactofhisownthat
iscontrary tolawormorality.
Proceedings shallbeinstituted onlyattherequest oftheinjured party.
According toSection 12subsection 1oftheAustrian Federal LawAgainst Unfair Competition
anyperson who, without authorization, exploits orcommunicates toother persons, forthepurposes
ofcompetition, documents orinstructions ofatechnical nature thathavebeenentrusted tohiminthe
course ofbusiness activity shallbesentenced bythecourt toatermofimprisonment notexceeding
three months orafinenotexceeding 180times theperdiem rate.
Proceedings shallbeinstituted onlyattherequest oftheinjured party.
III. REPLIES TOQUESTIONS POSED BYTHE UNITED STATES
1. Article 1oftheAustrian Patent Lawprovides that"programs forcomputers" arenot
considered tobeinventions. Please explain whether, under thisprovision, inventions within the
categories specified below arenoteligible tobepatented under Austrian law,notwithstanding
thefactthattheinvention isnovel, involves aninventive step, andisuseful:
(a) process inventions which, inwhole orinpart, consist ofsteps thatareperformed
byacomputer andaredirected byacomputer program;
(b) product inventions consisting ofelements ofacomputer-implemented invention,
including inparticular:
(i) machine-readable computer program code stored onatangible medium
suchasafloppy disk, computer hard drive orcomputer memory; and
(ii) ageneral purpose computer whose novelty over theprior artarises
primarily duetoitscombination withaspecific computer program.
Ifanyofthese types ofinventions areexcluded fromeligibility tobepatented, please explain
howAustrian patent lawcomplies withtheobligations ofArticle 27oftheTRIPS Agreement,
which mandates patent eligibility forallcategories ofinvention without discrimination.
Section 1subsection 2oftheAustrian Patent Lawwhich corresponds toArticle 52subsection 2
oftheEuropean Patent Convention enumerates anumber ofobjects andactivities which arenotregarded
astechnical inventions andaretherefore notpatentable. Thisenumeration includes forinstance
mathematical methods, schemes, rulesandmethods forperforming mental acts,playing games ordoing
business andprograms forcomputers. Therefore computer programs assucharenotpatentable. On
theother handthepatenting ofcomputer-related inventions orofmethods, systems, devices orproducts
inwhich newcomputer software plays animportant roleisnotprohibited. Apatent willbegranted
foracomputer-related invention when itmakes asawhole atechnical contribution totheknown state
oftheart.TheAustrian Patent Office hasaligned itsapproach withthatoftheEuropean Patent
Organization andusesthesame criteria todecide onthepatentability ofsoftware-related inventions.
Theinventions described under (a)and(b)arepatentable under thecondition thattheyinclude
atechnical contribution tothestateoftheart.AsArticle 27oftheTRIPS Agreement provides that
patents shallbeavailable forinventions inall"fields oftechnology" theAustrian Patent Lawmeets
therequirements oftheTRIPS Agreement.IP/Q3/AUT/1
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2. Article 28oftheTRIPS Agreement enumerates therights thateachMember country must
confer toapatent owner. Included among these rights aretherights toprevent third parties
from making, using, offering forsale, selling andimporting thepatented product without the
authorization oftheright holder. Article 22(1) oftheAustrian Patent Lawprovides the"patent
shall entitle thepatent holder toexclude others from thelatter, toproduce thesubject matter
oftheinvention commercially, putitonthemarket, offer oruseitorimport orpossess itfor
thepurposes asstated". Please explain:
(a) howArticle 22(1) oftheAustrian Patent Law complies withtheobligations in
Article 28oftheTRIPS Agreement totheextent thatitpermits anyform of
"non-commercial" production ofaninvention without theconsent ofarightholder;
and
(b) whether thelimitation thatreads "forthepurposes asstated" refers tothe
limitations found inthepatent claims, orwhether itrefers toother limitations
unrelated tothepatent claims.
(a) There seems tobeanerror inthetranslation ofthenotification. TheGerman word
inSection 22,subsection 1oftheAustrian Patent Lawis"betriebsmässig" andcan
roughly betranslated into"industrially". TheGerman word "betriebsmässig" means
thatonlyaprivate useispermitted without consent oftherightholder.
(b) Again there seems tobeproblems withthetranslation. Instead of"forthepurposes
stated" itshould read"forthesaidpurposes" i.e.thattheimporting orthepossession
ofthepatented product forthepurposes of"industrial" production, putting onthe
market, offering orusing iscomprised bytheexclusive rightoftherightholder.
[Follow-up question from theUS]
Please indicate whether there areanyjudicial decisions inAustria toclarify howthe
provisions ofSection 22(1) oftheAustrian Patent Lawareapplied inpractice, inparticular:
- what criteria areusedtodetermine ifanyactivity isavalid "private use"rather
thananactivity withan"industrial" character; and
- whether courts willevaluate theoverall economic significance oftheactivity, even
ifitisofa"private" character rather than"industrial" nature.
TheAustrian Supreme Court hastaken several decisions, which determine thecriteria ifan
activity is"private" userather thanof"industrial" character.
Thecriteria ofindustrial usearefulfilled when theuseisbased onarepeatable economic activity
ofacertain temporary extension withunderlying uniform andconcerted planning which serves -without
being necessarily dedicated toobtain earnings -notexclusively tosatisfy one'spersonal needs. A
single action (e.g.asingle offering forsale)meets therequirements ofindustrial usewhen setinthe
framework ofanexisting business undertaking andbeing ausual orcommon oneinthebusiness
concerned.
Alsotheuseofpatented inventions inthefieldofhospitals, charitable institutions orpublic
utility companies isregarded asindustrial.IP/Q3/AUT/1
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Useforprivate,domesticoreducationalrespectivelyteachingpurposesisnotincluded(Decisions
oftheSupreme Court, e.g.12June1925, 22May1973 and15May1985).
Thattheoverall economic significance ofanactivity hastobeevaluated maybeseenfrom
adecision stating thattheconstruction ofahouse byamaster builder tobeusedbyhimandhisfamily
fulfils thecriteria ofindustrial activity (Decision oftheSupreme Court, 16August 1907).
3. Article 32oftheTRIPS Agreement requires eachMember country toprovide thepatent
owner withanopportunity forjudicial review ofanydecision torevoke orforfeit hispatent.
IntheAustrian Patent Law, apatent owner isgranted anopportunity forreview ofaforfeiture
orrevocation ofhispatent bytheSupreme Patent Chamber. Please explain whether theSupreme
Patent Chamber isajudicial body; and,ifnot,whatauthority under Austrian lawprovides judicial
review ofanadministrative decision torevoke orforfeit apatent.
TheSupreme Patent andTrademark Chamber isaspecial body according toArticle 20,
subsection 2andArticle 133, subsection 4oftheAustrian Federal Constitution Law called
"Kollegialbehörde mitrichterlichem Einschlag". TheChamber consists ofapresident, avice-president,
nolessthateightlegally qualified members andtherequired number oftechnically qualified members
ascounsellors. Thepresident andthevice-president mustbeormusthavebeenmembers oftheSupreme
Court aspresident orvice-president orchairman ofadivision. Themembers oftheChamber are
appointed bythePresident oftheFederal Republic ofAustria foraperiod offiveyears. They may
notberemoved from theoffice during thistermunless there areserious grounds forsucharemoval
(i.e.ifthemember iscondemned toimprisonment formore thanoneyearforawilfully committed
indictable act).
TheChamber deliberates andtakes decisions under thechairmanship ofthepresident orof
thevice-president inboards consisting offivemembers: achairman, twolegally qualified members
andtwotechnically qualified members. Themembers oftheChamber maynotbemembers ofany
ofthebodies which havetaken thedecision regarding thepublication orthegrant ofthepatent. They
maynottakepartincases where theyhaveanypersonal interest orforanymajor reason likely toplace
theircomplete impartiality indoubt. Themembers areindependent intheexercise oftheirduties and
arenotbound byinstructions from anyone. Thedecisions oftheChamber maynotbeannulled or
amended byadministrative procedures. Thedecisions oftheChamber mayonlybebased ongrounds
orevidence onwhich theparties havehadanopportunity topresent theircomments.
TheSupreme Patent andTrademark Chamber meets therequirements ofatribunal according
toArticle 6oftheConvention ofHuman Rights. Therefore, theSupreme Patent andTrademark chamber
isajudicial body.
4. Article 31(c) oftheTRIPS Agreement specifies thatnocompulsory licence shallbegranted
byaMember under apatent concerning aninvention inthefieldofsemi-conductor technology
except forpublic non-commercial useortoremedy apractice determined after judicial or
administrative process tobeanti-competitive. Articles 36(1) to(3)oftherevised Austrian Patent
Lawprovide three grounds forathird party toseekacompulsory licence, namely, where the
utilization ofapatented invention isdependent onthegrant ofalicence under anearlier patent,
where there isinsufficient working ofapatented invention inAustria, orwhere thegranting of
alicence liesinthepublic interest. Noprovision under Austrian lawappears tolimittheavailability
ofcompulsory licences withrespect topatented inventions inthefieldofsemi-conductor technology.
Please explain howAustrian lawcomplies with theobligations ofArticle 31(c) oftheTRIPS
Agreement.IP/Q3/AUT/1
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Anewdrafttoamend theAustrian Patent Lawisbeing prepared. Inthiscourse ofamending
Section 36oftheAustrian Patent Lawwillbeadapted toArticle 31(c) oftheTRIPS Agreement.
5. PleaseindicatehowmanycompulsorylicencesonayearlybasishavebeengrantedinAustria
since 1January 1993.
Nocompulsory licences havebeengranted inAustria since 1945.
6. UnderAustrianPatentLawprecedingFederalLaw181/1996,thetermofapatentinAustria
was18years measured from thedateofpublication inthePatent Gazette oftheapplication leading
tothepatent, andcould notexceed 20years from thedateoffiling oftheapplication. Theclause
concerning publication wasdeleted inthe1996revision totheAustrian patent act,withtheeffect
thatpatents inAustria canenjoy aterm upto20years measured from thefiling dateofthe
application. The1996 legislation, however, doesnotcontain provisions thatmandate thatany
patent stillinforce on1January 1996, orwhich derives from anapplication filedonorbefore
1January 1996, shallenjoy aterm ofnotlessthan20years measured from thefiling dateofthe
application, consistent withArticle 70.2oftheTRIPS Agreement, which requires every WTO
Member toapply theterm provisions ofArticle 33oftheTRIPS Agreement tosubject matter
existing onthedateofapplication oftheTRIPS Agreement tothatMember (i.e.,1January 1996).
Recognizing thatmany patents granted inAustria prior tothechange inthelawwere given a
termoflessthan20years from theireffective filing date, please explain howAustrian lawcomplies
withArticles 70.2and33oftheTRIPS Agreement.
Section 28,Section 173asubsection 2andSection 174subsection 4oftheAustrian Patent Law
meettherequirements ofArticles 70.2and33oftheTRIPS Agreement. Section 28oftheAustrian
Patent Lawprovides thatthemaximum termofthepatent is20years from thedayofapplication.
According toSection 174,subsection 4oftheAustrian Patent Lawthisprovision entered intoforce
on1January 1996. Intheabsence ofconflicting provisions, Section 28inthenewversion applies
toallpatents including those granted prior tothechange ofthelaw. According toSection 173,
subsection 2oftheAustrian Patent Lawforthetermandexpiry ofpatents based onpatent applications
filedprior to1December 1984, Article VIofthe1984patent lawamendment continues toapply (the
termofprotection canbeupto18years fromthepublication ofthepatent application), buttheterm
ofthese patents shallbeatleast20years afterapplication.
7. Please explain howundisclosed information isprotected inAustria, andthelegal basis
forsuchprotection.
According toSection 11subsection 1oftheAustrian Federal LawAgainst Unfair Competition
anyperson whoasanemployee ofanenterprise, divulges without authorization trade orindustrial
secrets confided tohimduring histermofemployment shallbesentenced bythecourt toatermof
imprisonment notexceeding three months orafinenotexceeding 180times theperdiem rate.
According toSection 11subsection 2oftheAustrian Federal LawAgainst Unfair Competition
thesamepenalty shallbeincurred byanyperson who,without authorization, exploits orcommunicates
toother persons, forthepurposes ofcompetition, tradeorindustrial secrets ofwhich hehasknowledge
asaresult ofoneofthecommunications referred toinsubsection 1orthrough anactofhisownthat
iscontrary tolawormorality.
Proceedings shallbeinstituted onlyattherequest oftheinjured party.
According toSection 12oftheAustrian Federal LawAgainst Unfair Competition anyperson
who,without authorization, exploits orcommunicates tootherpersons, forthepurposes ofcompetition,IP/Q3/AUT/1
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documents orinstructions ofatechnical nature thathavebeenentrusted tohiminthecourse ofbusiness
activity shallbesentenced bythecourt toatermofimprisonment notexceeding three months ora
finenotexceeding 180times theperdiem rate.
Proceedings shallbeinstituted onlyattherequest oftheinjured party.
Provisions concerning undisclosed information arealsocontained inthePatent -theProtection
Certificates -andtheSemiconductor Protection Law:
- §81subsection 7Patent Law:
"Onrequest alsoparts offilesnotrequiring alaying open topublic inspection for
information purposes mayalsobeexcluded iftheyrefertoatrade orindustrial secret
orifthere isanother good reason therefor."
- §7Protection Certificates Lawrecites §81(7) Patent Law.
- §18,subsection 2Semiconductor Protection Law:
"Any person mayinspect filesconcerning granted semiconductor rights -withthe
exception ofrecords ofdeliberations andthose parts ofthefilesrelating tointernal
business -subject tothefollowing provisions. Such inspection shallalsoapply to
materials and,where appropriate, tothesemiconductor product itself, filedwiththe
applicationinaccordancewithSection9(2)2withtheprovision,however,thatinspection
ofmaterials thatcontain industrial orcommercial secrets andhavebeendesignated
assuchbytheapplicant intheapplication shallonlybegranted innullity, lackoftitle
ordeclarationproceedingsontheinstructionsoftheNullityDivisionorinalegaldispute
concerning theinfringement ofthesemiconductor rightontheinstructions ofthecourt,
inrespect ofpersons whoarepartytothenullity, lackoftitleordeclaration proceedings
ortothelegaldispute. Materials required toidentify orillustrate thetopography may
notbedesignated asawhole asindustrial orcommercial secrets."
8. Please indicate thenature ofmeasures, ifany,thataretaken byjudicial authorities in
Austria toprotect theconfidentiality ofundisclosed information furnished byaparty tothecourt
during legalproceedings, when theinformation hasbeenprovided either toenforce rights insuch
information, orforother purposes.
Based onspecific lawsjudges andemployees ofthecourts aresworn tosecrecy inregard to
allfactstheygettoknow exclusively through theiracting asanofficial authority andifthere isan
interest oftheinvolved party orparties tokeepthese factssecret.
Section219oftheCodeonCivilProcedurerulesthatonlyinvolvedpartiesmayclaiminspection
ofthefiles. Third parties maydothiswiththeconsent oftheinvolved parties orwithout consent,
ifthethirdparty successfully proves special legalinterest, bydecision ofthepresident ofthecourt.
According toSection 26oftheAustrian Federal LawAgainst Unfair Competition thepublic
may, onrequest, beexcluded frompenal orcivilproceedings instituted under thisLawifthepresence
ofthepublic attheproceedings would endanger acommercial ormanufacturing secret.
9. Please explain themeasures, ifany,thathave been implemented inAustria toprotect
against unfair competition those parties thathave provided confidential testorother data
concerning apharmaceutical oragricultural chemical product toAustrian regulatory authoritiesIP/Q3/AUT/1
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pursuant toarequest formarketing approval andhowsuchmeasures areconsistent withArticle
39.3oftheTRIPS Agreement. Please explain whether theinformation isprotected against
disclosure indefinitely, orisonlyprotected foraspecific period oftime.
InregardtotheprotectionofconfidentialinformationprovidedtoAustrianregulatoryauthorities
pursuant toarequest formarketing approval, e.g.concerning pharmaceuticals, Article 20,subsection 3
oftheFederal Constitution Lawstates thebasic principle thatallauthorities dealing withfederal
administration aresworn tosecrecy inregard toallfactstheygettoknow exclusively through their
acting asanofficial authority andwhere thereis-interalia-anoverwhelming interest oftheinvolved
parties tokeepthese factssecret.
Exceptions tothisprinciple havetomade bylaw.
According toSection 17oftheGeneral LawonAdministrative Procedure -unless there are
nocontrary regulations inthespecific administrative laws-onlytheinvolved parties haveasubjective
righttorequest inspection ofrecords.
Therefore, filesconcerning themarketing approval ofpharmaceuticals mayonlybeinspected
bytheinvolved party.
According toSection 15aofthePharmaceutical Law, which hadbeenintroduced toimplement
aprovision ofEU-Directive 65/65, anewapplicant mayclaim reference toparts offilesconcerning
already approved pharmaceuticals ifthefirstapplicant agrees orthefirstapproval hastaken place6years
(respectively 10years inregard tospecial products) agoinamember stateoftheEEA-Agreement.