The amendments of Australia’s 2020 Intellectual Property Law come into effect and will gradually abolish innovation patents

The amendments to Australia’s 2020 Intellectual Property Law(Productivity Commission Response Part 2 and Other Measures) received Royal Assent on 26 February 2020 and has now become law.

The amendments amended the design Patent Law of 2003, the Patent Law of 1990 and the trademark law of 1995, and initiated the process of gradually abolishing the innovation patent system.

 

Abolish innovation patents gradually

The Australian government’s decision to gradually abolish innovation patent is due to ineffective results. Evidence shows that the new innovation patent system has caused a net loss of 11 million Australian dollars per year for Australian enterprises. Not only does it fail to incite R&D energy for enterprises, but it also enables large enterprises to hinder the innovation of small and medium-sized enterprises (SME).

The effects of the abolition of innovation patent are as follows:

  • From August 26, 2021, no new filing of innovation patent applications will be allowed.
  • Innovation patents that are filed before August 26, 2021 will continue to be valid until the expiry of the term.
  • Innovation patent applications filed before August 26, 2021 may still apply for division afterwards.
  • An invention patent (standard patent) application filed before August 26, 2021 may still be converted into a innovation patent application.
  • Prohibition of extension of time limit for innovation patent application.

The abolition of innovation patent system is the Australian government’s commitment to SMEs to ensure that the country’s IPR system can meet the needs of SMEs. IP Australia will also launch various supporting measures to help SMEs make good use of the IP system during the transition period in the next 18 months. These include:

  • SME fast track service: Providing fast examination, and the examination report will be available within 8 weeks.
  • SME case management service: IP Australia’s case management manager provides services during the patent application process, including accelerating international applications to obtain protection in the target market.
  • Online portal: Re-developing the IP Australia webpage to provide a goal-oriented platform, providing customized products and services for SMEs, full-time and non-vacation assistance, IP portfolio management tools, and government information acquisition.
  • A dedicated outreach program: Providing regional SMEs educational training through events, web pages, or cooperation with other government departments, and providing diverse IP strategy recommendations based on the product life cycle.

Other amendments to the Australian IP system

The amendment also makes other improvements to Australia’s IP system, such as:

  • An objects clause is added to the patent law: an object clause is added to the patent law to clarify the legislative purpose of the patent law, reduce the uncertainty of the operation of the patent law due to the evolution of the times, and help the court to explain the law under the circumstances of the concept of uncertainty in the legal provisions. The objects clause will not change the original intent of the regulations, nor will it overturn existing case law and established precedents.
  • The “Crown use” clause of the Patent Law and Design Patent Law: “Crown use” is a rarely used protective measure that allows officials to use patented technology in emergency situations or other public interest issues without the consent of the patentee. In order to promote the transparency and the attribution of responsibilities of “Crown use”, the revised regulations can invoke the situation of “Crown use” and increase ministerial supervision procedures; and also provide a better guideline on the standard of remuneration that the Court should adopt in determining the payment of compensation to the right holders. The above amendments provide a better balance between the right for the patentee and the official to acquire unrestricted technology.
  • Compulsory licensing of patents: The amendment changes the regulations of compulsory licensing of patents, deleting the original regulations of “the reasonable requirements of the public” by replacing with a that of “public interest”.
  • In addition, the amendment also made many technical improvements to the Patent Law and Trademark Law to simplify procedures and improve efficiency. For example, when providing electronic certified copies of documents, electronic signatures must be preserved and used.

Released by TIPO

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