Main laws

Commonwealth Act

Patents Act 1990 (Cth)

The Patents Act governs patent applications, ownership and infringement for inventions and technical products in Australia.

In forceCommonwealthPlain-English guide4 practical checks

Plain-English explainers, not legal advice. Use the linked official source for section-level detail, and get advice for your situation.

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Quick read

  • The Patents Act matters when a business develops or uses inventions, technical products or patented processes.
  • For SMEs, the key commercial questions are ownership, freedom to operate, confidentiality before filing, licensing and whether repair, refurbishment or importation creates...

Likely relevant if

  • Technology, product and hardware startups
  • Businesses licensing patented technology
  • Importers and refurbishers of patented goods

Check first

  • Keep inventions confidential until filing strategy is settled.
  • Confirm inventor and company ownership before commercialisation.
  • Run freedom-to-operate checks before launching technical products.

Patents are commercial strategy

Patent law protects inventions, not broad ideas. For a small business, the real question is whether patent protection supports the commercial plan: fundraising, licensing, manufacturing, exit value, market exclusivity or defence against competitors.

The legal and commercial timing are linked. Public disclosure before filing can damage novelty, while filing too early or too broadly can waste budget before the product direction is clear.

Key points

  • Keep invention details confidential until filing strategy is checked.
  • Confirm founder, employee, contractor and university ownership before commercialisation.
  • Run freedom-to-operate checks before launching or importing technical products.

Where businesses see patent risk

SituationWhat to check
Founder builds a technical productWho owns the invention, who contributed, and whether anything was disclosed before filing.
Using third-party technologyWhether a licence is needed and whether the licence covers the intended market and use.
Importing or refurbishing productsWhether the activity is lawful repair, resale or an infringing making of the patented product.
Receiving a patent letterWhether the patent is in force, what claims it covers, and whether the product actually falls within those claims.

Operator lessons

Key takeaways

  • Use confidentiality and invention assignment documents before pitching or outsourcing technical work.
  • Patent filing is not the same as freedom to operate.
  • Keep product development records, lab books, source material and contributor agreements.
  • Get legal help before responding to a patent infringement allegation.

Plain-English glossary

Patentable invention
An invention that meets requirements such as novelty, inventive step and usefulness, subject to exclusions and formal rules.
Freedom to operate
A practical assessment of whether your product or process may infringe someone else's patent rights.

Common questions

Do I need a patent before talking to investors?

Not always, but public disclosure before filing can destroy novelty. Use confidentiality controls and get patent advice before broad disclosure.

Can I repair or resell patented products?

Sometimes, but the line between repair, modification and making a new product can be difficult. Calidad v Seiko is a useful starting point.

Related topics

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