TABLE OF CONTENTS TABLE OF CASES; 1 INTRODUCTION; 1.1 Research Methodology; 2 PATENTABILITY OF COMPUTER SOFTWARE; 2.1 Understanding computer software; 2.2 Historical overview; 2.3 Intellectual property treaties and software patents; 2.4 United States Patent System Subject matter case law; 2.4.1 Supreme court; 1. Gottschalk v I s Benson; 2. Parker v I s Flook; 3. Diamond v/s Diehr; 4. Synthesis; 5. Freeman-Waiter-Abele Test; 2.4.2 Federal Circuit; 1. In Re Alappat; 2. In Re Warmerdam; 3. In Re Lowry; 4.Synthesis; 2.4.3 PTO Guidelines; 2.5 Japanese Patent System; 2.6 European Patent System; 2.6.1 European Patent Convention; 2.6.2 Subject matter case law; 1. Vicom's System Inc's Application; 2. Koch’s Application; 3. IMB; 2.6.3. E.U. Directive on Computer Implemented Inventions (2002); 2.7 Is Patent the Optimal Form of Computer Software Protection?; • PATENTING OF SOFTWARE BUSINESS METHODS; 3.1 Meaning; 3.2 Historical Development and Evolution of Business Method Patents; a) Hotel Security checking Co. v I s Lorraine Co; b) Loew's Drive -In Theatres, Inc vis Park-In Theatres, Inc; c) Dann v Is Johnston; d) Paine, Webber, Jackson & Curtis, Inc. v.; Merrill, Lynch, Pierce, Fenner & Smith, Inc.; e) In Re Schrader 22 F.3d 290 (Fed. Cir. 1994); 3.3 The State Street Bank & Trust Co. v. Signature Financial Group, Inc; 3.4 Internet Business Method Patents; 3.4.1 Amazon's one click patent; 3.4.2 Priceline.com patent; 4 DOCTRINAL BATTLE- SOFTWARE BUSINESS METHODS; 4.1 Patentability doctrines; 4.1.1 Novelty; 4.1.2 Non-obviousness; 4.2 Anti-Competitive and Anti-Innovative nature of Business Method Patents; 4.2.1 Invention motivation theory; 4.2.2 Innovation Theory; 4.3 Economics of business method patents; 4.4 Arguments in favor of software business method; 4.5 Responses by PTO and Congress to the public outcry of software business methods; i) First Inventor Defence Act; ii) Business Method Improvement Act; SOFTWARE BUSINESS METHODS PATENTS AND THE INTERNATIONAL INTELLECTUAL PROPERTY SYSTEM; 5.1 Software Business Methods Patents And TRIPS 5.2 European patent system; 5.2.1 Case law Analysis; a) Sohei/ General-Purpose Management System; b) Pettersson / Queuing system; c) R vis PBS partnership/controlling pension benefits systems; 5.2.2 Treatment of software business methods in national courts; 5.2.3 Directive On Patentability Of Computer Related Inventions; 5.3 Japanese Patent System; 5.4 Indian Patent System; 5.5 Canadian Patent System; 5.6 Australian Patent System; 5.7 Russian Patent System; 5.8 Chinese Patent System; 6 CONCLUSIONS AND SUGGESTIONS; BIBLIOGRAPHY.