The tenth edition of IP Australia’s ‘Australian Intellectual Property Report’1 (the Report) has recently been released, and it makes for interesting reading for those interested in the number of filings in the various categories of intellectual property (IP) that IP Australia oversees.
The purpose of the report is to raise awareness of IP rights and to debate the most recent IP statistics. The Report, in particular, examines and demonstrates the most recent IP trends in Australia, as well as how Australians have responded to changes in our social and working environments during COVID-19. As the economy has transitioned to a virtual model, demand for novel vaccines and treatments, as well as computer and audio-visual technology, has “spiked” in pharmaceutical patent filings. In addition, trademark and design filings have increased for things that people buy when they renovate their homes to make them more comfortable to live in and work in. “IP activity is a crucial forward indication of employment development for Australian small and medium firms (SMEs),” according to the report.
In a nutshell, patent applications climbed by 11 percent in 2021, with filings from Australian citizens increasing by 25%. Trademarks are up 9%, owing to a considerable increase in resident filings, while designs are up 13% (the steepest year-on-year gain this decade). The number of patent, trademark, and design applications is at an all-time high. Plant breeder’s rights have dropped by 6%, owing to the ongoing effects of drought, Australia’s terrible bushfires in 2019–20, COVID-19 lockdowns, and border closures.
Patents in Australia
In 2021, IP Australia received 32,397 standard patent applications, up 11% from the previous year. This is the second-largest rise in a decade, which is noteworthy because the high increase in filings in 2012/2013 is likely due to the IP Laws Amendment (Raising the Bar) Act 2012 modifications, which encouraged applicants to move forward with national phase entrance. With 23,371 national phase entries and about 9,000 direct entries reported last year, the data confirms that national phase entry from PCT applications is the favored filing route. Non-resident filings grew by 9% in 2021, accounting for the majority of patent applications.
In 2021, non-residents accounted for slightly over 90% of all applications, with the United States leading the way, followed by China, Japan, Germany, and the United Kingdom. In contrast, after a 10% fall in 2020, patent application submissions by Australian citizens increased by 25% in 2021.
However, the steady drop in provisional application filings over the last decade is cause for concern. In 2011, just over 5,400 provisional applications were filed, but that number has reduced by more than 20% to 4,297 in 2021. The authors of the report do not speculate on the causes of the decline, but given that 94 percent of provisional applications are filed by Australians or Australian entities, and that the number of provisional applications filed is one indicator of Australian innovation and entrepreneurship, it appears that fewer and fewer Australian inventions are being developed and protected.
The demand for innovation patents skyrocketed after the innovation patent system was phased out in August 2021, with over 7,800 applications filed in 2021. This was a 71 percent increase over the number of filings in 2020. The majority of the growth was ascribed to non-residents, who accounted for 78 percent of filing growth in 2021, owing mostly to increasing submissions from China and India.
Pharmaceuticals, medical technology, biotechnology, organic fine chemistry, and computer technologies were the top five categories for standard patent applications in 2021. After an 18 percent growth in 2020, pharmaceutical patent applications increased by 27% in 2021. Computer technology patent applications grew by 27% to reach the fifth-ranked class, probably because to the current pandemic’s demand for distance working and communication. Patent filings in AI, in particular, are quickly increasing, roughly tripling each year.
LG Electronics, Huawei Technologies, Guangdong Oppo Mobile Telecommunications, Nestlé, and Apple were the top five international patent applications, while Aristocrat Technologies Australia, CSIRO, NewSouth Innovations, ResMed, and Breville were the top five local applicants.
Trademarks in Australia
IP Australia received over 89,000 trademark applications in 2021, an increase of 9% from the previous year. Despite ongoing COVID-related restrictions, 2021 saw the highest rate of business entry in a decade… and gross disposable income reached its highest level on record, defying Australia’s first recession in 30 years and was regarded as “somewhat unexpected” by the authors of the Report, who noted that “despite ongoing COVID-related restrictions, 2021 saw the highest rate of business entry in a decade… and gross disposable income reached its highest level on record.” In 2021, direct submissions accounted for 78 percent of all applications, as opposed to those submitted through WIPO’s Madrid procedure. Despite an increase of 18 percent, non-residents held a lower share of trademark applications (40%) in 2021 than residents (60 percent).
Class 9 Technological and electrical equipment and tools, Medical technology, Biotechnology, Organic fine chemistry, and Computer technologies were the five classes in the Nice Classification system that got the most applications in 2021.
Glaxo Group, Apple, Novartis, Samsung Electronics, and Philip Morris Products were the top five international applicants, while Aristocrat Technologies Australia, Endeavour Group, Coles Group, Aldi Foods, and Southcorp Brands were the top five domestic applicants.
Designs and Copyright
In 2021, more than 8,100 design applications were filed, a 13% increase over the previous year. Non-resident applications accounted for 68 percent of total applications in 2021, accounting for all of the growth. In 2021, over 1,370 designs were certified, a 38 percent increase over the previous year.
The extent to which copyright material is used is confirmed in the report. In the music sector, for example, approximately 409,000 copyright owners received a total of $430.7 million in 2021. Copyright Agency Limited also distributed $102 million in royalties to over 17,000 rights holders, including writers, artists, publishers, and agencies (CAL). The Phonographic Performance Company of Australia (PPCA) distributed $36.4 million to registered artists and licensors, while Screenrights distributed $45.3 million to 4,900 copyright owners in the audiovisual sector, including producers, directors, broadcasters, and agents.
The list of Australia IP Firm can be found here.