Patent licensing is an income generating business for intellectual property owners, inventors or research and development facilities which they can use to earn revenues. Royalty fees derived from the license agreements for patents can be maximized within the twenty (20) year legal lifetime of the patent.
A patent owner should consider his patents as part of his major assets. However, patents are intangible assets, but in terms of value, they cannot be belittled. Finding out a patent’s value can be mind-blowing. As such, like any property, e.g. a car that needs to be well maintained or a financial investment that needs to be properly managed, patents also need to be maintained.
The Intellectual Property Office of the Philippines (IPOPHIL) has given it’s all out support for the protection of Intellectual Property rights, e.g. the rights of Patent owners. As a government agency, the IPOPHIL works to preserve and protect innovations, inventions, and creations of the Patent owners. With its mandate as a protector of intellectual property rights, the IPOPHIL has continuously improved its services. As an added-value-service, the agency makes sure that the Patent owners would be reminded periodically on payments of annuities to maintain ownership of their respective Patent. Through the years as records show, it has been observed, that Patent owners fail to maintain ownership of their Patents or Intellectual Property Rights (IPR). It would appear that there are patent owners who simply lose interest or just simply forget to maintain their patents. From year 2012 to 2014, the percentage of lapsed patents was recorded at 29% versus total applications and registered with the Bureau of Patents.
Per IP Code of the Philippines, “If the annual fee is not paid, the patent application shall be deemed withdrawn or the patent shall be considered as lapsed from the day following the expiration of the period within which the annual fee was due.” For those Patent owners who inadvertently neglected to pay for the maintenance service of the IPOPHIL on their Patent, they are provided a grace period. “A grace period of six (6) months shall be granted for the payment of the annual fee, upon payment of the prescribed surcharge for delayed payment.” As such, owners of lapsed Patents due to non-payment of annuity, are given owners ample time to redeem their IPR upon full payment of the required annuity balances and surcharge.
It is important for Patent Owners to realize that when they maintain ownership of said IPR, they can earn income from it in many ways like licensing or franchising, joint venture projects, technology transfer, and even selling the patents itself, just like selling a Real Estate Property. As Patent owners, it would be much easier to maintain your patent ownership than feeling sorry for abandoning it. It would be one big missed opportunity when, some time later, you learn that someone else is benefitting from your lost IPR. By then, you can do nothing legally about it.
Patent Owners are advised to consult or acquire the services of an IP Law Professional or Practitioner in order to learn more on how to maximize your IPR ownership. You may also visit www.ipophil.gov.ph or call 238-6300 for more details about your Patent maintenance, schedule of annuity payments, benefits, and advantages.
words: Froilan T. Buizon and Maria Minda G. del Rio, IPO DITTB
