Axing Australia’s innovation patent regime will ‘harm’ SMEs: ombudsman
Australia’s Small Business and Family Enterprise Ombudsman, has warned the government against abolishing the country’s lost-cost innovation patent regime, saying this would create a “barrier” for small businesses.
In a statement published today, September 10, Kate Carnell said “it would be a mistake to phase out the innovation patent system without any replacement”.
Last week, the country's senate committee gave the government the all-clear on a bill which axes the lower-cost IP regime. It was originally set up in 2001 with the aim of making it easier for SMEs to protect their IP.
The “innovation patents” that could be applied-for under the regime have a lower threshold for inventiveness as compared to standard patents and last for a shorter term.
This makes it easier for smaller businesses to have their technology approved, while lower fees encouraged accessibility.
But this could now change. Carnell said that while the department acknowledges that the current system “is not perfect”, it is “the only viable way for SMEs to access temporary or short-term IP protections”.
She said this is essential to their business, particularly when disputes arise.
“Abolishing the innovation patent system would effectively leave small businesses vulnerable to large businesses stealing their ideas and inventions,” she said.
Carnell added: “Small businesses face significant hurdles when trying to protect their IP rights. They don’t have in-house lawyers or patent expertise and often experience difficulties in accessing risk capital.”
Instead of phasing out the current regime, Carnell recommended that the government take the relevant steps to improve the existing system, or replace it with something better.
Additionally, she said many SMEs rely on the current innovation patent system to secure funding.
“Investors won’t even look at a company that doesn’t have those protections in place.
Standard patents are more expensive and can take over two years to get. It’s just not a viable option for small businesses that want to protect their products,” she said.
Carnell said axing the regime could also lead to a loss of innovation and serious ramifications for Australia’s economy as many SMEs will look to import products rather than innovate.
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