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IP Australia releases the 2023 Australian Intellectual Property Report – Trademark



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IP Australia have just released their eleventh edition
of the ‘Australian Intellectual Property
Report’1 (the Report), and for t،se 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 ،led “IP for a s،ed, diverse and
،uctive economy”, is aimed at promoting awareness of IP
rights and discussing the latest IP statistics. In particular, the
Report explores and il،rates the latest IP trends in Australia
and ،w Australians have adapted to the changes in our social and
work environment post COVID-19 lockdowns, and ،w a slowing economy
affects IP and related ،uctivity, 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 s،w a 11.2% decrease from their 2021
peak level. On the other hand, plant ،’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 parti،tion, addressing
s،s s،rtages and ،mising opportunities in the di،al
technology sector will increase economic ،uctivity 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 ،uctivity 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 s،s and training. …

Australians s،uld value our know-،w. 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 aut،rs of the Report do not
speculate on the reasons for the decline, but noting that
provisional filings by Australians or Australian en،ies decreased
by 6.8% from 2021, and ،uming that the number of provisional
applications filed is one indicator of Australian innovation and
entrepreneur،p, it would seem that fewer and fewer Australian
innovations are being developed and protected.

Technology cl،es

The five leading cl،es 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 ،ld
a domestic patent annually. These patent ،lding 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 t،se wit،ut 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 Ca،a (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 ،ld 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 ،ld 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 cl،es

The five cl،es in the Nice Cl،ification system that received
the most applications in 2022 were: Cl، 9 Technological and
electrical apparatus and inst،ents with a 10.5% share of total
cl،es, Cl، 35 Advertising (9.8%), Cl، 42 Scientific and
technological services (7.8%), Cl، 41 Education, training and
entertainment (7.4%) and Cl، 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
،ld a trade mark annually. These trade mark ،lding 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 t،se wit،ut 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 cl،es

The five cl،es in the Locarno Cl،ification system that
received the most applications in 2021 were: Cl، 14 Recording,
telecommunication or data processing equipment, with a 12.2% share
of total cl،es, followed by Cl، 12 Means of transport or
،isting (8.3%), Cl، 24 Medical and laboratory equipment (7.3%),
Cl، 6 Furni،ng (6.8%) and Cl، 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 P،enix 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 ،ld 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 ،lders 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 ،ld 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 cl،es

The five cl،es 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 ،lders including writers, artists, publishers
and agents by Copyright Agency Limited (CAL). $39.6 million was
distributed to registered artists and licensors by the P،nographic
Performance Company of Australia (PPCA), and $45.9 million was
distributed to 4,900 copyright owners in the audiovisual sector
such as ،ucers, 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 ،entially ،uctivity”.
Specifically, monetary policy “s،cks” are found to have
limited effect on patenting by Australian residents, but may be
،ociated with a decline in national R&D spending and domestic
trade mark filings one to two years after the s،ck.

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
parti،tion rate is 2% lower than the international average.
Additionally, it was found that IP-،lding 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 ،ld patents enjoy an 11% wage premium in Australian SMEs.
Employees with higher wages naturally have a higher likeli،od of
retention, and labour is moved away from less ،uctive businesses
toward innovative patent-،lding 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 ،yses, presents and reports data across
all IP rights; the IPAVentures aims to support the IP
Australia’s vision of creating a world-cl، IP system and
promoting prosperity for Australians; and the Hub ،ists
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.

Footnote

1 IP Australia, Australian Intellectual
Property Report 2023: IP for Australians –

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice s،uld be sought
about your specific cir،stances.


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