The Australian Government’s response to the Productivity Commission’s report into the operation of Australia’s IP system was released in August 2017. Both the report and the Government’s response can be found on the Department of Industry, Innovation and Science website.
Following a public consultation period, several IP policy matters and a number of other measures, which are the subject of a draft Bill intended for introduction to Parliament in 2018, have been supported in the Government’s response to the Productivity Commission’s report.
Productivity Commission Report
Readers will recall that the Productivity Commission made a range of recommendations relating to Australia’ IP system generally, including international arrangements, patents, trade marks and copyright. Wrays’ published an article detailing a number of these recommendations late last year – which were, amongst other things, intended to improve the quality of Australian patents, abolish the innovation patent, further limit the scope and duration of copyright, and improve access to mechanisms for IP enforcement.
Government response
The response from the Government has generally been received as a reasonably restrained and considered, but otherwise supportive, reaction to the report.
The recommendations that found support from the Government include:
- the repeal of parallel import restrictions for books to take effect no later than the end of 2017
- liability for the use of orphan works be limited to where a user has undertaken a diligent search to locate the relevant rights holder
- the copyright ‘safe harbour’ scheme be expanded to cover all providers of online services
- insertion of an objects clause into the Patents Act 1990 that provides a purpose of enhancing the wellbeing of Australians by promoting technological innovation and the transfer and dissemination of technology
- amendments to the inventive step that ensures ‘beyond doubt that the assessment of inventive step in Australia is consistent with the European Patent Office’
- abolition of the innovation patent system without impacting existing rights
- implementation of a monitoring and reporting system of settlements between originator and generic pharmaceutical companies to detect ‘pay for delay’ arrangements
- reduction of the grace period from 5 years to 3 years before new trade mark registrations can be challenged for non-use, and
- the parallel importation of marked goods shall not infringe in circumstances where the goods have been brought to market abroad by the owner or its licensee. The New Zealand approach on this question has been identified as a model clause.
Public consultation
A period of public consultation in respect of five IP policy matters was rolled out as part of the implementation of the Government’s response. Written submissions were due by Friday, 17 November 2017. Papers relating to the five IP policy matters, which may be accessed here, are itemised below:
- amending inventive step requirements for Australian patents
- introducing an objects clause to the Patents Act 1990
- amending the provisions for Crown use of patents and designs
- amending the provisions for compulsory licensing of patents, and
- introducing divisional applications for international trade marks.
A further period of public consultation was provided, with submissions due by 4 December 2017, in respect of a number of other measures included in the response. The draft Bill, regulations and Explanatory Statement in respect of those measures may be found here, and include the following:
- abolishing the innovation patent system
- expanding the scope of essentially derived variety declarations in the Plant Breeder’s Rights Act
- reducing the grace period for filing non-use applications under the Trade Marks Act
- clarifying the circumstances in which the parallel importation of trade marked goods does not infringe a registered trade mark, and
- repealing section 76A of the Patents Act, which requires patentees to provide certain data relating to pharmaceutical patents with an extended term.
It is intended that the Bill will be introduced to Parliament in 2018, following the consultation period.
One last drawn out hurrah for Innovation Patents?
In scenes reminiscent of Monty Python’s ‘Bring out your dead’ from The Holy Grail, it seems the innovation patent still has (just a little) life in it yet.
As the abolition of the innovation patent is not intended to impact existing rights, innovation patents filed before the proposed amendments commence will continue as presently.
Interestingly, it is intended that the existing right to file divisional innovation patent applications of pending standard patent applications, and to convert standard patent applications into innovation patent applications, will remain.