In 1889, in the heart of Melbourne, Arthur Arnot developed the world’s first electric drill. He patented it. And in doing so, he didn’t just protect his invention — he protected his livelihood and thwarted competitors from riding on his coattails.
That same principle drives innovators today, whether they’re building AI models or synthetic vaccines. A patent, at its core, is a deal struck between inventors and society: tell society how your idea works, and in return you’ll get exclusive rights to it — but only for a limited time.
What is a Patent?
A patent is a form of intellectual property that provides an exclusive right to make, use, sell and license an invention. In exchange, the invention must be disclosed in full to the public, encouraging knowledge-sharing and further innovation.
In Australia, patents are granted by IP Australia, the federal agency that administers intellectual property rights. For Australian businesses, a patent can be an excellent form of protection for their inventions.
What can be Patented in Australia?
To qualify for a patent, your invention must be novel and inventive — meaning it must be new and not an obvious step forward in the field. Eligible inventions include:
- Devices: New devices such as machines, medical devices or electronics.
- Substances: New substances such as material compounds or pharmaceuticals.
- Methods or Processes: New methods or processes such as new ways of manufacturing or of using a device or substance.
- Software: In certain situations, software can be patented, such as software that provides improved data security or industrial process control.
What Protection does a Patent Provide?
After being granted by IP Australia, a patent provides the following protections:
- Exclusive Rights: The patent owner has the right to make, use, sell and distribute the invention exclusively. This means that no other individual can carry out any of these actions without the patent owner’s consent. This includes the rights of licensing, which allows the owner of the patent to grant use of the patent to another for a fee.
- Stopping Infringement: If a patent is being infringed, the patent owner has the right to take legal action against the infringer. A court may issue an injunction to stop the infringer’s actions and/or order the infringer to compensate the patent owner for any losses suffered.
- Territorial Protection: An Australian patent only protects the invention in Australia. If an individual wishes to protect their invention overseas, they will need to apply for a patent in every country of interest.
How Long is Patent Protection?
In Australia, the protection provided by a patent lasts up to 20 years from the date on which the application for the patent was originally filed. Extensions of up to 5 years are available, in certain circumstances, but only for patents protecting pharmaceutical substances.
What Cannot be Patented?
Things that cannot be patented in Australia include:
- Scientific Theories and Mathematical Models: Abstract ideas cannot be protected by patents as they are considered forms of knowledge that should be accessible to everyone.
- Discoveries: Discoveries, such as naturally occurring substances, without any practical application cannot be patented.
- Fine Arts: Paintings, music, books, and other creations with a purely aesthetic, non-functional purpose cannot be patented.
- Business Methods: Methods of doing business cannot be patented in Australia. However, systems that enable business transactions might be able to be patented.
- Unlawful Material: Inventions that would be considered contrary to Australian law cannot be patented.
Is it worth securing a Patent?
Ask any startup that’s landed VC funding: yes. A patent signals to investors that you’re serious, strategic, and that your idea has commercial potential. It can:
- Provide a competitive moat
- Attract partnerships and licensing deals
- Serve as collateral for funding
- Boost valuation in acquisition talks
But here’s the catch: patenting is complex, expensive, and time-consuming. Filing a provisional application gives you 12 months to test the waters — a smart move for early-stage innovators. But you’ll need expert help to navigate the full process, from prior art searches to claim drafting and international strategy.
Take Canva, the Australian design platform now valued at billions. Behind its slick interface is a stack of patents — protecting everything from its functionality to collaborative editing features. Those patents didn’t just shield Canva from copycats — they helped shape the company’s narrative as a tech innovator.
The bottom line is that a patent isn’t just paperwork — it’s a Shield, a Sword, and a Signal. Whether you’re a backyard tinkerer or a biotech unicorn, understanding what patents protect — and how to use them — can be the difference between obscurity and global impact.
For any questions, please feel free to reach out to our patent partners Anthony Cowle, Dan Berger and Chris Atichian.