New Howard Government IP Rules a Slap in the Face for Australian IT Industry

New Howard Government IP Rules a Slap in the Face for Australian IT Industry


Media release - 23 August 2006

Victorian Minister for Information and Communication Technology Marsha Thomson today branded the proposed Howard Government changes to intellectual property (IP) provisions in IT contracts a slap in the face to the Australian industry that would increase the cost of doing business with Government.

"The changes proposed by Special Minister of State Gary Nairn are an absolute joke and just show how out of touch the Howard Government is with small business and the IT sector in Australia," Minister Thomson said.

"One of the biggest impediments to Australian IT firms doing business with Government is cost, and forcing companies into extra negotiations to retain IP will simply increase that cost burden.

"As for the Howard Government's proposal that it is looking to financially gain out of companies retaining IP rights, well many people would consider that as Government exerting an unfair advantage over small IT firms."

Ms Thomson said that if the Howard Government was serious about reforming its IP provision in IT contracts and supporting local industry it should follow Victoria's lead and make the retention of IP by IT companies the default position in contracts.

"In Victoria the equation is simple. Except in exceptional circumstances, the IP created is retained by the company without tying companies up in red tape and further costly negotiations.

"We took this approach in Victoria because, unlike the Howard Government, we believe that Australian IT companies deserve to be the ones that profit from their hard work and innovation.

"It has also been a priority for the Bracks Government to reduce the costs of doing business with Government for IT firms, which we have been extremely successful in doing with our e-services panel."

Minister Thomson said that the Howard Government's lack of commitment to the Australian IT industry, not only threatened the IT industry but Australia's future economic growth.

"The Howard Government's stated policy is that it is more important that Australians are users of technology rather than producers.

"They have failed to develop a credible industry plan, they have failed to show any leadership on the issue of IT skills, their trade assistance programs are expensive and ineffective and the inability for Australian industry to access adequate broadband services is a direct result of their long-term mismanagement."