IP Australia have just released their eleventh edition of the ‘Australian Intellectual Property Report’[1] (the Report), and for those with an interest in the number of filings in the various categories of intellectual property (IP) which IP Australia administers, makes for interesting reading.
The Report, which is titled “IP for a skilled, diverse and productive economy”, is aimed at promoting awareness of IP rights and discussing the latest IP statistics. In particular, the Report explores and illustrates the latest IP trends in Australia and how Australians have adapted to the changes in our social and work environment post COVID-19 lockdowns, and how a slowing economy affects IP and related productivity, wages, diversity, innovation, policies and decision making.
In brief overview, after record levels of filings in patent, trade mark and design in 2021, patent application numbers are steady in 2022, recording a mere 0.5% decline, designs are down by 3.6%, and trade marks filings show a 11.2% decrease from their 2021 peak level. On the other hand, plant breeder’s rights experienced a 1.3% increase. Notably, all IP filings saw significant decreases in Australian domestic applicants, likely reflecting a correction from significant growth over the pandemic period, and the impact from rapidly increasing costs of living, rising interest rates and declining real wealth.
The Report notes:
“Harnessing diversity and participation, addressing skills shortages and maximising opportunities in the digital technology sector will increase economic productivity and support sustainable wage growth. Australia’s IP system has a crucial role to play in achieving these outcomes. For Australian businesses, IP rights drive productivity growth by encouraging innovation and the spread of new technologies and ideas. For Australian workers, innovation with patents is linked to higher wages and retention, which increases businesses’ incentives to invest in skills and training. …
Australians should value our know-how. Australian businesses and workers are innovators, and our IP system has a vital role to play in addressing Australia’s key economic challenges.”
Patents
Standard patents
IP Australia received 32,264 standard patent applications in 2022, which is a mere decrease of 0.5% from 2021. The number is similar to the record level of filings in 2021, which also represented the second largest growth in a decade. The data also confirm that national phase entry from PCT applications is the preferred filing route, with 23,685 national phase entries and around 8,500 direct entries recorded last year. Filings by Australian residents decreased by 16.8% in 2022, while filings by non-residents increased by 1.2%. and made up the majority of patent applications.
Countries of origin
Non-residents were responsible for just over 90% of applications in 2022 with the United States the biggest contributor at 45.7% share of total applications, followed by China (6.7%), Japan (4.9%), the United Kingdom (4.8%) and Germany (4.3%).
Provisional applications
Of major concern is the persistent decline in the filing of provisional applications over the past decade. Just over 5,400 provisional applications were filed in 2011, which has now dropped by over 25% to 4,037 in 2022. The authors of the Report do not speculate on the reasons for the decline, but noting that provisional filings by Australians or Australian entities decreased by 6.8% from 2021, and assuming that the number of provisional applications filed is one indicator of Australian innovation and entrepreneurship, it would seem that fewer and fewer Australian innovations are being developed and protected.
Technology classes
The five leading classes for standard patent applications in 2022 were Pharmaceuticals at a 13.8% share of total applications, followed by Medical technology (12.2%), Biotechnology (10.3%), Organic fine chemistry (5.5%) and Computer technologies (5.3%). Pharmaceutical patent applications continued to grow, by 12.2% in 2022, after consecutive years of significant growth in 2020 and 2021. Medical technology and biotechnology also increased their share in overall filings. Their growths continued to reflect the urgent needs created by the COVID-19 pandemic.
Leading applicants (international and domestic)
The top five international patent applicants were LG Electronics with 282 applications, followed by IBM (189), Huawei Technologies (182), Becton Dickinson And Company (159), and Apple (149), while the top five domestic applicants were Aristocrat Technologies Australia (69), CSIRO (51), Monash University (24), Thanh Tri Lam (24) and Canva (23). Notably, NSW-based inventor Thanh Tri Lam filed 24 applications related to renewable energy technology.
Domestic activity
Around 3,100 businesses with active operations in Australia hold a domestic patent annually. These patent holding businesses contribute to around 10% of Australia’s GDP and 7% of workforce. It was found that median patent-owning business employs more than 10 times the number of workers as those without patents. Additionally, the Report confirms that small and medium enterprise (SMEs) accounted for 69.6% of all standard patent applications filed from within Australia and 94.4% of the applications were filed by single parties (i.e., not co-owned by another party).
Overseas applications
A total of 9,328 overseas patent applications were filed by Australian inventors in 2021. Most of the applications were filed via the PCT route, which increased from 66% in 2014 to 73% in 2021. The most popular destination for Australian applicants seeking overseas patent protection is the United States with a 37.2% share of total applications, followed by the European Patent Office (11%), China (7.9%), New Zealand (7.2%) and Canada (5.5%).
Trade Marks
Trade mark applications and registrations
In 2022, around 78,800 trade mark applications were received by IP Australia, which represents a 11.2% decline from the record level in 2021, following by consecutive years of strong growth. 75% of the applications in 2022 were direct applications, as opposed to applications through WIPO’s Madrid route. Resident filings decreased by 16.3% but continued to hold a relatively higher share of trade mark applications (56.6%) in 2022 when compared to non-residents. In the meantime, trade mark registration also experienced a decline of 1.3% in 2022 from the record level of 2021, fully attributed to reduced registration by Australian residents.
Countries of origin
Non-residents continued to hold a lower share of trade mark applications (43.4%) in 2022 when compared to residents. The leading foreign countries of origin were the United States with a 13.5% share of total applications, followed by China (7.0%), the United Kingdom (3.5%), Germany (2.3%) and Japan (1.7%).
Trade mark classes
The five classes in the Nice Classification system that received the most applications in 2022 were: Class 9 Technological and electrical apparatus and instruments with a 10.5% share of total classes, Class 35 Advertising (9.8%), Class 42 Scientific and technological services (7.8%), Class 41 Education, training and entertainment (7.4%) and Class 25 Clothing, footwear and headgear (4.8%).
Leading applicants (international and domestic)
The top five international applicants were Glaxo Group (136), Amazon (88), Johnson & Johnson (78), Hyundai Motor Company (77), and Philip Morris Products (76), while the top five domestic applicants were Endeavour Group (116), Aristocrat Technologies Australia (112), Pharmacor (63), Sportsbet (44), and Confectionery Trading Co (41).
Domestic activity
Around 53,900 businesses with active operations in Australia hold a trade mark annually. These trade mark holding businesses contribute to around 34% of Australia’s GDP, 32% of workforce, 42% R&D spend and 49% exports. It was found that median trade mark-owning business employs around 4 times the number of workers as those without trade marks.
Overseas applications
A total of 22,893 overseas trade mark applications were filed by Australian applicants in 2021, which represented an increase from level of 202 by 11.9%. Thanks to the expansion of the Marid system, more than half of the applications were filed via the Madrid route, which increased from 29% in 2012 to 60% in 2021. The most popular destination for Australian applicants seeking overseas trade mark protection is New Zealand with a 14.5% share of total applications, followed by the United States (14.3%), China (13.0%), the United Kingdom (9.9%) and Europe (6.5%).
Designs
Design applications, registrations and certifications
Around 7,800 design applications were filed in 2022, which is a 3.6% decrease over the previous year. Over 1,240 designs were certified in 2022, representing a 9.8% decline from the previous year.
Countries of origin
The leading countries of origin were the United States with a 27.8% share of total applications, followed by China (10.9%), the United Kingdom (4.4%), France (3.1%) and Germany (3.0%) in 2022. Notably, total share of designs applications from China grew from 1.8% in 2013 to 10.9% in 2022.
Design classes
The five classes in the Locarno Classification system that received the most applications in 2021 were: Class 14 Recording, telecommunication or data processing equipment, with a 12.2% share of total classes, followed by Class 12 Means of transport or hoisting (8.3%), Class 24 Medical and laboratory equipment (7.3%), Class 6 Furnishing (6.8%) and Class 9 Packaging and containers for the transport or handling of goods (6.7%).
Leading applicants (international and domestic)
The top five international applicants were Capital One Services (165), Proludic (111), LG Electronics (74), Zhejiang Orient Gene Biotech (73) and Fisher & Paykel Healthcare (66), while the top five domestic applicants were Phoenix Industries P/L (45), Zimmermann Wear P/L (43), Schneider Electric Australia P/L (37), Australian Honeybee P/L (17) and Autopacific Australia P/L (16).
Domestic activity
Around 590 businesses with active operations in Australia hold a design right in 2020. The use of design rights has become more extensive over time: as a proportion of all active Australian businesses, design rights holders have increased by around a third over the period 2010/11 to 2019/20.
Overseas applications
A total of 2,989 overseas design applications were filed by Australian applicants in 2021, a significant increase of 34.3% from 2020. The most popular destination for Australian design innovators is the United Kingdom with a 23.6% share of total applications, followed by the United States (21.8%), Europe (16.0%), New Zealand (11.2%) and China (8.8%).
Plant Breeder’s Rights
PBR applications and registrations
In 2022, 301 PBR application were filed, which accounted for a 1.3% increase from 2021. Non-residents filings increased by 8.9% and continued to hold a higher share of PBR applications (61%) in 2021 when compared to residents (39%). The Netherlands and the US retain their status as the two major foreign countries of origin for PBR filings in Australia. In the meantime, PBR registration rose sharply by 50.9% compared to the 2021 level.
Countries of origin
The leading countries of origin were the United States with a 18.6% share of total applications, followed by France (15.3%), Netherlands (8.0%), Switzerland (6.3%) and New Zealand (5.0%) in 2022.
PBR classes
The five classes that received the most applications in 2022 were: Fruit crops with a 46.2% share of total applications, followed by Ornamentals (17.9%), Field crops(non-cereals) (14.0%), vegetable crops (10.0%) and field crops (cereals) (5.6%).
Leading applicants (international and domestic)
The top five international applicants were Agro Selections Fruits (36), Syngenta Crop Protection (17), Zaigers Inc Genetics (11), Jon M Quisenberry (9) and Lowell Glen Bradford (9) while the top five domestic applicants were CSIRO (16), Plant Growers Australia (16), Next Progeny (8), Australian Grain Technologies (7) and Grains Research and Development Corporation (6).
Copyright
The Report notes that “culture and creative activity” that in one way or another related to copyright contributed $122.3 billion to the Australian economy in 2019 – 2020, which was 27.1% higher than that in 2010-2011.
The Report also confirms the extensive level at which copyright material is used. For example, in 2021 – 2022, over 409,000 copyright owners in the music industry received a total of $430.7 million. Further, $95 million in revenue was distributed to more than 22,000 rights holders including writers, artists, publishers and agents by Copyright Agency Limited (CAL). $39.6 million was distributed to registered artists and licensors by the Phonographic Performance Company of Australia (PPCA), and $45.9 million was distributed to 4,900 copyright owners in the audiovisual sector such as producers, directors, broadcasters and agents by Screenrights.
Monetary policy and innovation
The Report previews forthcoming research findings that “economic conditions and monetary policy can have medium-run effects on innovative activity and potentially productivity”. Specifically, monetary policy “shocks” are found to have limited effect on patenting by Australian residents, but may be associated with a decline in national R&D spending and domestic trade mark filings one to two years after the shock.
Diversity
The Report also investigates diversity in Australian innovators. 35% of PCT applications filed by Australians worldwide name at least one woman inventor, and women account for 15% of unique inventors named on Australian PCT applications. However, this participation rate is 2% lower than the international average. Additionally, it was found that IP-holding businesses have a greater share of women and a greater share of migrants in their STEM workforce.
Wage premium and labour mobility
The Report also finds that employees in innovative businesses that hold patents enjoy an 11% wage premium in Australian SMEs. Employees with higher wages naturally have a higher likelihood of retention, and labour is moved away from less productive businesses toward innovative patent-holding businesses.
Research program
Apart from the statistics, the report also details IP Australia’s research programs. The four main programs include: the Office of the Chief Economist (OCE), the Centre of Data Excellence (CODE), IPAVentures and the Patent Analytics Hub. These programs accomplish many things, for example: the OCE investigates the impact of IP policies and activities on Australian businesses and economy; the CODE analyses, presents and reports data across all IP rights; the IPAVentures aims to support the IP Australia’s vision of creating a world-class IP system and promoting prosperity for Australians; and the Hub assists Australian innovators by extracting value from patent databases in order to make the most of their IP by aiding understanding of their technology areas, finding collaborators and boosting the commercial returns from research.
The Report, and these programs, are well worth a more detailed review for interested parties.
[1] IP Australia, Australian Intellectual Property Report 2023: IP for Australians – https://www.ipaustralia.gov.au/news-and-community/news/2023/04/24/05/42/IP-Report-2023