LORD Sainsbury of Turville, the Science Minister, is facing fresh calls to spell out the implications of an EU proposal on software patenting, amid fears that it could bankrupt European software developers.

Richard Allan, MP, the Liberal Democrat spokesman on information technology, called on ministers to give further clarity on the proposed directive to calm fears that the new rules will take Europe closer to the stricter US model.

He said clarification on “how high the hurdle is to get a patent” could calm the minds of small developers, who fear new legislation would play into the favour of giants in the sector.

Poland, which last month derailed the draft directive’s progress through the EU legislative process, has prepared an amendment that, if adopted, would go some way to easing developers’ fears.

Earlier this month Bill Gates, Microsoft chairman, described those opposed to software patent legislation as “modern-day sort of communists”, claiming that they want to remove the incentive for innovation.

The software industry claims that the most recent draft legislation — voted down at an early reading in December — is unclear. Producers fear it could pave the way, if adopted, for companies such as Microsoft, which applies for hundreds of patents a year, to patent source code for the most basic elements of its software.

Smaller firms could then face licence fees and higher legal costs. Industry insiders believe that this may put many small firms out of business.

Campaigners argue that this would stifle innovation among smaller developers and those who produce “open source software”, which is made available to users free of charge. Linux, a key rival of Microsoft’s Windows operating system, is an open source product.

Asked whether Lord Sainsbury felt the need to give further clarification on the wording of the directive, a Department of Trade and Industry spokesman said: “We’re fairly firm on our position.

“What they’re lobbying for is a bold, straight unequivocal statement within the directive that says ‘You cannot patent software’. They don’t feel that the current situation meets that. And we do.”

Last month Lord Sainsbury said that the proposals would not “change the boundaries of what is patentable”, effectively ruling out a move to the stricter US-style model. However, campaigners remain concerned that the precise wording of the latest draft legislation could prove ambiguous.

James Heald, of the Foundation for a Free Information Infrastructure, a group working to ensure that program elements built into ordinary software cannot be patented, said: “We’re hoping this directive will draw a line and say ‘You can patent this, but you can’t patent beyond that’.”

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax