After hearing both the parties, the court went on to discuss the legislative history behind Section 3(k), especially the inclusion of words ‘per se’ in Section 3(k) on the recommendation of the Joint Parliamentary Committee. The court also deliberated upon the legal position in the EU which has a similar provision in Article 52 of EPC. Recognizing the role of software in modern-day inventions, the court stated that:
“In today’s digital world, when most inventions are based on computer programs, it would be retrograde to argue that all such inventions would not be patentable. Innovation in the field of artificial intelligence, blockchain technologies, and other digital products would be based on computer programs, however, the same would not become non- patentable inventions – simply for that reason. It is rare to see a product that is not based on a computer program. Whether they are cars and other automobiles, microwave ovens, washing machines, refrigerators, they all have some sort of computer programs in-built in them. Thus, the effect that such programs produce including in digital and electronic products is crucial in determining the test of patentability. Patent applications in these fields would have to be examined to see if they result in a `technical contribution’.”
In the end, the Court held that across the world, patent offices have tested patent applications in this field of innovation, on the fulcrum of ‘technical effect’ and ‘technical contribution’. If any invention demonstrates a ‘technical effect’ or a ‘technical contribution’, it is patentable even though it may be based on a computer program. The court further held that the patent application deserves to be considered in the context of settled judicial precedents which have now laid down the interpretation of Section 3(k), the Guidelines, and other material including the legislative material. Accordingly, the court directed the patent office to re-examine the application giving the applicant an opportunity of being heard and issue a decision within 2 months.