The Advisory Council on Intellectual Property (ACIP) issues statement and new recommendation regarding the Innovation Patent
In its report on the Review of the Innovation Patent System published on 16 June 2014, ACIP was unable to find sufficient empirical evidence to enable an assessment of the effectiveness of the innovation patent system in meeting its objective of stimulating innovation in Australian small to medium enterprises (SMEs). At the time ACIP was therefore unable to make a recommendation to support the retention or abolition of the innovation patent system.
IP Australia’s Office of the Chief Economist took advantage of the new data capabilities of the Intellectual Property Government Open Data (IPGOD) and undertook a comprehensive economic analysis of the innovation patent system. This analysis concludes that the innovation patent system is failing to incentivise SMEs to innovate and is imposing an overall net cost.
Based on this new evidence and analysis, on 1 June 2015 ACIP released a statement as a supplement to its report on the Review of the Innovation Patent. ACIP now considers that the Government should consider abolishing the innovation patent system on the basis that it is not meeting its objective of stimulating innovation among Australian SMEs.
IP Australia has released the findings of its economic study on the innovation patent as a research paper The Economic Impact of Innovation Patents. The paper’s findings rely heavily on the newly available IPGOD and are a valuable contribution to the evidence base on the innovation patents system, demonstrating the value of the quality of the intellectual property data provided in IPGOD.
The Government is considering ACIP’s revised recommendation along with its report on the Review of the Innovation Patent System published on 16 June 2014.