The Institute of IT Professionals says the passing of the Patents Bill on Wednesday will make it easier for technology companies to create new and innovative software.
The bill passed its third reading in parliament, by 117 votes to four, with only the Maori and Mana parties opposed. It effectively removes software patents in New Zealand.
Institute chief executive Paul Matthews said the old patent laws made it difficult for technology companies to create new software.
He said patent officers around the world have been awarding patents too freely, placing restrictions on software developers.
Mr Matthews said the new law sends a message that New Zealand won't tolerate patents created with the sole purpose of bringing litigation against technology companies.