The End for Innovation Patents?

In a previous blog entitled “The Economic Impact of Innovation Patents”, posted on 11 June 2015, we reported on the IP Australia investigation into the “economic value” of innovation patents.  See:

http://frankehyland.blogspot.com.au/2015/06/the-economic-impact-of-innovation.html

This report concluded that “the innovation patent is not fulfilling its policy goal of providing an incentive for Australian SMEs to innovate, and the evidence shows a reduced likelihood of patenting after participating in the innovation patent system”.  We have some concerns about the methodology and statistical rigour of this investigation.  However, it was considered persuasive by ACIP, the advisory body for IP Australia policy, which concluded that based on the apparent evidence of a lack of economic benefit, the Innovation Patent should be abolished.

IP Australia has recently released a consultation paper specifically mooting abolition of the innovation patent system,  see:

http://www.ipaustralia.gov.au/about-us/public-consultations/Consultation-on-the-ACIP-recommendation-on-the-innovation-patent-system/
.
The Paper seeks views from interested stakeholders on:
• ACIP’s revised recommendation; and
• Any alternate suggestions to encourage innovation amongst small to medium enterprises (SMEs).

Whilst we are of the view that the Innovation Patent requires changes, we think that it would be a dreadful mistake to throw out the entire system, just as the Australian innovation community has become accustomed to it and is starting to use it as a component of a targeted IP strategy.  Industries such as food technology and building products are important areas for using such a second tier patent system.

Innovation Patents enable users to obtain fast, targeted and enforceable protection for smaller inventions.  If the intention of policy is to encourage innovation, it seems counter-intuitive to remove a form of IP, particularly one suited to ‘entry level’ innovators.

We will be making submissions in support of the Innovation Patent system.  If anyone has examples or case studies illustrating their value, we would be delighted to hear from you.

Submissions on IP Australia’s Consultation Paper close on 28 September 2015