INTERNATIONAL BALTIC CONFERENCE ON INTELLECTUAL PROPERTY Vilnius, September 13 and 14, 2007 CHALLENGES TO THE INTERNATIONAL PATENT SYSTEM IN THE 21 ST CENTURY Philippe Baechtold Head, Patent Law Section Sector of PCT and Patents, Arbitration and Mediation Center and Global Intellectual Property Issues World Intellectual Property Organization (WIPO)

2 The international patent system today Various layers: multilateral, regional, bilateral Present situation: –claims for more innovation (for development and wealth), but also criticism (as to increasing monopoly rights) –multilateral approach in difficulty (e.g. SCP) –constant search for balance The international patent system thus needs to –be accepted as fostering innovation –deliver valid and high-quality patents –accommodate certain policy interests –be accessible and cost-effective

3 Method of swinging on a swing Abstract A method of swing on a swing is disclosed, in which a user positioned on a standard swing suspended by two chains from a substantially horizontal tree branch induces side to side motion by pulling alternately on one chain and then the other. What is the balance we are looking for?

4 A threatening context for the IPS …(?) Economic: expansion of demand Political: policy issues and questions about the social and economic benefits of patents; different levels of development; increased participation of civil society Geographical: increase from North-East Asia (China, Japan, Korea); impact on prior art and access to documents Technological: success of Internet and biotechnology; software; nanotechnology. Prior art Legal: adequacy of patent system for all areas; avoid misappropriation of public domain

5 Patent Applications Worldwide 7.4%  3.4%  Average annual application growth = 4.75% Average annual GDP growth = 5.6%

6 Development of PCT Filings

7 … or expression of an evolutionary process? Expansion of demand goes more or less hand in hand with growth of GDP; some issues are home-made. Not all offices concerned

8 … or expression of an evolutionary process? (2) Policy issues are being addressed (IGC; Doha process etc.) Increased participation of civil society = enhanced inclusiveness Geographical increase: not necessarily a new phenomenon; is also due to globalization and need for more international protection (second filings). Access to information is an issue Technology: system has adapted to various technologies in the past, i.e. pharmaceuticals or software Legal issues: adequacy of the system to all areas is often raised, but beware of TRIPS. Conditions of patentability may need a closer look

9 The need for international cooperation Some issues = a matter for States/Offices, e.g. some systemic features For others, international cooperation is required, as can be seen from ongoing international efforts, e.g.: –work-sharing (e.g. use of search results) –comparison of legal and administrative practices –document exchange/access Form of such cooperation will vary according to issues at stake and interests involved (e.g. different interests between offices and users)

10 The need for international cooperation (2) Present multilateral framework may not offer sufficient flexibility for such cooperation –Umbrella agreements: Paris Convention, TRIPS, PCT The need for action also arises as technology and globalization advance: –PLT; regional discussions on harmonization –bilateral/regional trade agreements –bilateral arrangements for work-sharing Political priorities lag behind economic reality –need for enhancing knowledge and confidence in the patent system –inventions are increasingly financial assets

11 Preparing for tomorrow Challenges are also an opportunity for the IPS Some issues that may require international solutions: –improve validity of patents (patentability requirements) and avoid patents impinging on the public domain –address policy aspects, but without hiding the real issues; recognize various agendas –improve access to patent information and document exchange –improve cooperation among offices; rationalize resource use Some issues to be solved multilaterally, some bilaterally. Difficulties of multilateralism, but also long-term advantages for global solutions →The IPS needs regular check-ups and benchmarks with the needs of society; it may thus be able to integrate change rather than to be crushed by developments that could have been anticipated

12 Thank you