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THE European Parliament wants to make 2005 an uncomfortable year for multinationals hoping to use their legal muscle, rather than innovative products, to stifle competition. Within the next few weeks, the parliament is likely to approve a European Commission directive to outlaw patents on computer software and business methods. Previous attempts to do this have foundered, and the problems may be far from over.

What Europe wants to avoid is the situation in the US and Japan, where patents are routinely granted on what many regard as obvious ideas that serve only to restrict competition. Some of the more sweeping…

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