18 MAY 2021 - IP SPOTLIGHT

THE PATENT BOX The “patent box” is likely to cost the government about $100 million annually and will follow OECD’s guidelines ensuring the system meets internationally accepted standards. It will offer a competitive tax rate for profits generated from Australian-owned and developed medical and biotechnology patents. Corporate income derived from new medical and biotechnology patents developed in Australia will be taxed at a corporate tax rate of 17 per cent – almost half the rate that applies to large companies. Currently, the corporate tax rate for large companies is 30 per cent and 25 per cent for SME. Over the next 12 months the government will consult industry about the design of the patent box. What we do know about the system is that only granted patents, which were applied for after the budget announcement, will be eligible. According to the budget papers, the “requirement for domestic development will encourage additional investment and hiring in research and development activity and encourage companies to develop and apply their innovations in Australia”.

ST IMULAT I NG ADD I T IONAL I NVESTMENT AND I NNOVAT ION The patent box scheme complements the Government’s $2 billion investment in the Research and Development Tax Incentive, announced in the 2020-21 Budget. The Board of Taxation will review the administrative framework for the research and development tax incentive (RDTI) before the end of 2021. The budget also rolled out a new Global Science and Technology Diplomacy Fund, which is to be allocated $54.2 million over four years, with $8.2 million released annually. The new Fund will be directed towards “strategically important science and technology collaborations with global partners”. The government will also invest $42.4 million over seven years into the Boosting the Next Generation of Women in STEM program, which is a new initiative that will offer co- funded scholarships for women in STEM in partnership with the private sector. The Government’s patent box system has been a much- awaited investment in medical research and biotechnology. It provides a clear focus on the strategic importance of IP protection and investment in the medical research and biotechnology field. Seemingly this budget aims to position Australia as a global player in the technology, innovation, and commercialisation landscape, particularly in the field of medical research and biotechnology.

CHANGES TO PCT FEES FOR AUSTRALIAN FILERS

Australian filers of PCT applications are set to receive some more welcome financial relief as the Australian Patent Office (IP Australia) adjusted their fees for PCT-associated patent filings, effective from 1 May 2021. This follows a series of fee decreases over the last 8 months.

INTERNATIONAL PRELIMINARY EXAMINATION FEES Fee Type

INTERNATIONAL PCT FEES

Old Fee (AUD)

New Fee (AUD)

Fee Type

Old Fee (AUD)

New Fee (AUD)

1. Transmittal Fee

$200

$200

1. International Preliminary Examination Fee

2. International Search Fee 3. International Filing Fee*

$2200 $2200

If the search was performed by IP Australia If the search was not performed by IP Australia

$590

$590

$2150 $1860* If the application contains 30 pages or less including the request form: Electronic filings filed in PDF format via ePCT* $323 $280* Electronic filings filed in XML format via ePCT* $485 $420*

GARY COX Chairman & Principal

$820

$820

2. International preliminary handling Fee*

$323

$280*

Plus, for each page in the application in excess of 30 sheets (per page)*:

$24

$21*

*Indicates a fee decrease

We will keep you updated on future developments.

4. Cost of preparing certified copy of basic document (per document 5. Copies of specifications cited in the International Search Report (per copy)

$50

$50

DONNA MEREDITH Associate

$50

$50

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