Ironically the UK would probably be well and truly under US software patent law by now if it hadn't been part of the EU.
But, you are right: we haven't heard the last of software patents yet. The reason this particular proposal failed is because the modifications to the original bill were not sufficient to convince the opponents that patent system abuse would be curbed, while at the same time the modifications went too far for the supporters of the original bill to accept. Microsoft, Nokia, Philips et al don't want a strict patent system that cannot be used to kill off competition, so their puppet MEPs were also instructed to reject the modified bill.
The original bill will be resubmitted in a year or two, never fear...
