PATENT OWNERS ADVISED TO UPDATE ANNUITIES PAYMENT TO PRESERVE INVENTIONS AND CREATIONS

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Per IP Code of the Philippines, “If the annual fee is not paid, the patent application shall be deemed withdrawn or the patent shall be considered as lapsed from the day following the expiration of the period within which the annual fee was due.”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

Philippines lifted from US Trade Representative IP watch list*

PHL stricken off intellectual-property ‘watch list’ of US Trade Representative

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Category: Top News

29 Apr 2014

Written by Catherine N. Pillas

The Philippines has been removed from the Special 301 Watch List of the Office of the United States Trade Representative (USTR) after almost two decades of being on it, a development that could facilitate the country’s membership in the US-initiated Trans-Pacific Partnership (TPP). 

With this development, the Philippines no longer faces threats of trade sanctions that Washington is imposing on economies with weak intellectual-property (IP) regime.

The USTR’s Special 301 Report is an annual unilateral evaluation report on various countries’ enforcement and observance of IP laws. 

“In recent years, the government has enacted a series of significant legislative and regulatory reforms to enhance the protection and enforcement of IP in the Philippines. Philippines authorities have also made laudable civil and administrative enforcement gains. Although significant challenges remain, the commitment of Philippines authorities and the results achieved merit this change in status,” according to a statement from the USTR. 

Trade Secretary Gregory L. Domingo said the development was “a recognition of the positive work the Philippines has done on intellectual property and is one of the string of good news coming from the United States, coinciding with Philippines-United States relations.”

But, at the same time, Domingo also said the Philippines’s status is subject to annual review. “Like anything in life, there is no assurance…but it [removal of the Philippines from the list] is part of a group of positive actions by the US on Philippines issues.” 

The trade chief added that with the development, aspiring for membership in the TPP “should be easier as IP issues are a significant part of the TPP agenda.”

The US-led TPP is currently being negotiated among 12 countries and covers about 40 percent of the global economy. 

The trade deal is said to contain provisions going beyond the usual trade tariff rate-reduction measures, such as cross-border services trade, standards, labor and environment, and IP rights.

But other barriers remain for the Philippines, such as foreign ownership limitations that are set out in the Constitution and are still hurdles for TPP membership.  

“Congratulations to the NCIPR [National Commission on Intellectual Property Rights]. Its holistic approach was very effective in curbing piracy and fighting counterfeits. Enforcement is only the beginning in building respect for intellectual property. The Philippines reinforces its position as the country champion in IP Enforcement in Asean,” Director General Ricardo R. Blancaflor of Intellectual Property Office of the Philippines said, expressing satisfaction over the Philippines’s removal from the watch list. 

Blancaflor remains upbeat that the NCIPR would maintain its efforts even with the upgrade, saying, “I am confident the NCIPR will maintain its vigilance in the fight against counterfeits. As long as these unresolved issues are included in building respect for the IP International system, we will endeavor to sustain our current efforts.”

Sought for comment, American Chamber of Commerce and Industry Executive Director David Ebb Hinchliffe lauded the Philippines’s improvement on IPR. He said the development raised the country’s image by another notch.

“It’s very good news. The improving IP regime of the Philippines is an important component of the business climate here, particularly in innovative and high-tech sectors so the decision underscores that the Philippines is becoming a more attractive place for companies and investors to do business,” added Hinchliffe, quoting a message by USTR for Asia Karl Ehler. 

According to the Philippine report of the Oxford Business Group, the Philippines has been on the watch list of the USTR for two decades, at times being elevated on the Priority Watch List. 

The Quiapo Shopping District was removed from the USTR’s list of notorious markets for selling counterfeit clothing, shoes, watches and software in 2012, the same report noted.

The USTR 2013 Report already noted progress of the Philippines, such as its compliance with the World IP Organization’s Internet treaties, as well as a drop in the filming of movies in theaters. However, despite the improvement, the Philippines remained on the regular watch list in 2013. The regular watch list is the lowest tier identified for deficiencies of IP rights infringement.

The USTR’s Special 301 Report aims to push countries to better adhere to IP rights standards, and issues warning of possible trade sanctions for countries under the Priority Watch List if they are subjected to investigation by the USTR.

The Philippines has been showing a strong image in international regulatory compliance recently as it also received this month a Category 1 upgrade from the United States Federal Aviation Authority (FAA), signifying compliance with international aviation safety standards as set by the International Civil Aviation Organization.

*reposted from Business Mirror news