High Court Rejects Patent Office Appeal in Aristocrat Case

The long running legal battle over software patents in Australia has reached a final conclusion.

On 5 February 2026, the High Court of Australia refused the Commissioner of Patents application for special leave to appeal the Full Federal Court’s decision in Aristocrat Technologies Australia Pty Ltd v Commissioner of Patents 2025 FCAFC 131. This decision effectively ends the dispute. By refusing to hear the case, the High Court has allowed the Full Federal Court’s 2025 decision to stand, which is a major win for Aristocrat and the wider software industry. This marks a significant moment for Australian patent law, particularly in how computer-implemented inventions (CIIs) are assessed for eligibility under the Patents Act 1990 (Cth).

Background
The dispute traces back to a series of contentious decisions concerning whether electronic gaming machine technology, particularly its software elements, constitutes a “manner of manufacture”. This concept is the gatekeeper of Australian patent law, determining whether subject matter is eligible for protection. The question is central to the modern economy, as many innovations are software-driven yet have historically faced high hurdles for protection.

Previously, the Patent Office (IP Australia) had applied a strict standard, arguing that for a computer-implemented invention to be patentable, it must represent an "advance in computer technology, rather than just using the computer to create a new game or business outcome.

However, in a landmark judgment in September 2025, the Full Federal Court held that Aristocrat’s patents could indeed be patentable subject matter. The Court moved away from older, restrictive tests, instead treating the claimed invention as a whole. They focused on whether the combination of software and hardware produced an "artificial state of affairs" with a useful result.

The Commissioner of Patents sought special leave to appeal this ruling to the High Court, aiming to challenge the Full Court's adopted test.

High Court refuses special leave
In a short, unanimous disposition, the High Court refused special leave. The Court did not provide lengthy reasoning, but made clear that:

• The Full Court’s decision had applied well-established legal principles to the question of characterisation under section 18(1A)(a) of the Patents Act 1990.
• There was no sufficient reason to doubt the correctness of that decision.
• Granting special leave was not in the interests of the administration of justice.

In essence, the High Court endorsed the Full Court’s approach and confirmed that there was no compelling reason to revisit it at this stage.

What This Means for Patent Law in Australia
The refusal of special leave leaves the Full Court’s reasoning as binding authority. Its implications are significant.

• Holistic assessment of claims: The correct approach is to assess the invention as claimed in its entirety. Courts and examiners should not isolate an alleged abstract idea and then ask whether the remaining computer elements are inventive or novel. The focus is on the overall character of the claimed combination.
• No obligation to show an advance in computer technology: There is no standalone requirement that a computer-implemented invention must improve computer technology itself. An invention may be patentable even if it uses known or generic computing technology, provided the integrated combination produces a useful, artificially created state of affairs.

What This Means for Innovators
This outcome may prompt meaningful shifts in practice and strategy.

• IP Australia Practice Changes: We expect IP Australia will be required to update its Manual of Practice and Procedure to align with this ruling, likely resulting in a more permissive examination environment for software.
• Reviving Portfolios: Applicants should review applications that were previously stalled, rejected, or narrowed under the Commissioner’s old "advance in computer technology" test. These may now be viable.
• Drafting Strategy: The decision highlights the need to draft claims that present the invention as an integrated technological solution. Specifications should clearly explain how the components work together and the practical result achieved. The focus should be on the overall system and its functional outcome, rather than isolating software features or framing the invention as a hardware improvement.

Conclusion
The High Court’s refusal to intervene is a green light for computer-implemented inventions. By allowing the Full Federal Court’s reasoning to stand, the judiciary has confirmed that patent eligibility must be assessed by reference to the practical substance of the claimed invention as a whole. For the technology and gaming sectors, the pathway to patent protection in Australia is now clearer and more stable than it has been in years.

Authors: Pritesh Lohani and Kavitha Botla

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