Industry bodies have reacted angrily to the deferral of crucial European legislation intended to protect patents and innovation.

The European Union Council of Ministers has deferred the adoption of the Patentability of Computer-implemented Inventions (CII) directive, which has prompted concern that could be devastating to future innovation.

The legislation was tabled by the European Commission 30 months ago, but a final decision on its implementation has still not been made.

'How long do governments need in order to create a stable and harmonised legal environment that supports innovation in the European Union?' said Mark MacGann director general of industry association EICTA.

'The last thing we need is an extension of legal uncertainty. Each day that passes without a decision by Europe's policy makers to strengthen Europe's innovation and competitiveness is a further blow to the Lisbon Agenda.'

Trade body Intellect says it is dismayed by the delay.

'Intellect cannot understand how the EU Council has managed to overlook the negative impact this lengthy, drawn out legislative process is having on the European Union, and within it the UK's, ability to incentivise and protect innovation,' said Intellect director general John Higgins.

'The Directive on Patentability of Computer-implemented inventions has the potential to shape the future of the UK's hi-tech sector.

Without it the UK's individual inventors, SMEs and large multinationals, will be unable to protect their inventions, undermining the incentives to undertake R&D, and creating a climate adverse to technology transfer. This is a situation which will put UK businesses at a distinct disadvantage within the global knowledge-driven economy, and one which Intellect and its members are determined to avoid,' he said.

Higgins wants the EU to make a final decision soon.

'We call on the EU Council to put an end to this uncertainty, and to commit to a harmonised and reasonable approach to patent protection for computer-implemented inventions in Europe which maintains the current level of protection available to innovators.

'If Europe is to meet its Lisbon Agenda objectives then EU policy makers must do all they can to boost innovation and competitiveness. Adoption of the Common Position is a critical step in this process, and one which should not be delayed for a moment longer,' he said.