Brion Raffoul will be closed on October 14, 2019 for Canadian Thanksgiving. The Canadian Intellectual Property Office is also closed, so any patent or industrial design deadlines falling on October 12 to 14, 2019 are extended to October 15, 2019.
“It’s impossible for any organization to have all the best ideas”
~ General Electric, Open Innovation Manifesto
Open Innovation as an R&D strategy may seem counter-intuitive; traditional corporate culture dictates the use of secret R&D labs that operate in an information silo. However, open innovation can offer many competitive advantages, such as complimenting your company’s internal skills and know-how with external knowledge and ideas, lowering R&D costs, and increasing differentiation in the market.
For example, in 2000, the Canadian gold mining company Goldcorp Inc. crowdsourced gold prospecting in an under-performing mine; Goldcorp knew they were sitting on a literal and figurative gold mine but their geologists could not find the main deposits of gold. Goldcorp created a challenge for the general public; they released all Goldcorp’s geological data (going back as far as 1948) and offered $575,000 in prize money to the innovators that could find the elusive gold deposits. At the time, this type of open innovation was contrary to traditional mining practices: Goldcorp was admitting they were unable to find the gold and was releasing all their proprietary data. However, Goldcorp’s challenge led to more than 110 gold deposits that yielded over $6 billion worth of gold.
So, if that doesn’t answer why open innovation is a worthy consideration for any business, consider that patent filings in Canada have not increased significantly in the past ten (10) years. However, this stagnation is not an issue of lack of funding. Indeed, statistics from Industry Canada indicate that Canada is second only to the United States when it comes to venture capitalist funding.
Collaboration between companies and with the public at large should be considered to invigorate innovation in Canada. In another successful example of open innovation, Bombardier held a contest to solicit urban mobility designs. They created a social media open innovation community integrated with live, offline workshops. The contest rules stipulated that the winners must transfer their IP to Bombardier in exchange for a small prize. Bombardier also kept a right of first refusal for a year for all non-winning ideas. By creating a community around innovation, even outside their company, Bombardier created a sense of self-determination and pride in the community, that resulted in innovation pouring into Bombardier. Indeed, Bombardier received input from 2,486 participants from 102 countries that contributed 4,239 designs, 25,979 evaluations, 8,565 comments and 3,445 messages on Bombardier’s proposed urban transportation projects. As a bonus to uncovering a gold mine of innovation, Bombardier customers were very receptive to their more open and customer-orientated brand.
However, it is important to note that “open” innovation does not necessarily mean the innovation is in the public domain; the devil is in the details. IP ownership provisions should be clearly outlined in an agreement between all involved parties. The following questions can be helpful in outlining the preferred ownership details:
- Who will own the IP stemming from the project (foreground IP)?
- What about jointly created IP (joint ownership/management of IP assets should be approached with caution)?
- Consider motivation factor for crowdsourcing when innovators own their IP?
- Does a royalty-free license in perpetuity make sense given the motivations of the IP owner (i.e., the company or the innovator)?
- What IP do the innovators and the company already own (background IP)?
- Who owns the feedback stemming from the project?
- Should a right of first refusal be included for IP that is not exploited during the project?
The bottom line: open innovation can be a great way to invigorate innovation within your company without resorting to a significant increase in R&D funding.
By: Edward Wu
Following the Government’s recent decision to ratify the Patent Law Treaty (PLT), the Orders in Council (OIC) published that the amendments to the Patent Act and Patent Rules under the Economic Action Plan 2014 Act and Economic Action Plan 2015 Act will come into force on October 30, 2019. Furthermore, the new Patent Rules will be published on July 10, 2019, under the Registration Number SOR/ 2019-0251.
The following important changes will be coming into force on October 30, 2019:
42-Month Deadline for National Phase Entries No Longer “As of Right”
The 42-month deadline for Patent Cooperation Treaty (PCT) National Phase entries is no longer “as of right”. To utilize the 12-month extension, Applicants must submit a statement that the failure to meet the regular 30-month deadline was unintentional. Clients should be aware of the shortened period for national entries and make corresponding arrangements.
Requirements of Certified Copies for Priority Documents
After October 30, 2019, certified copies of priority documents must be filed with the Office; however, this requirement does not apply if the priority document is an earlier Canadian Application or, in the case of a national phase entry, where the PCT priority document requirement has already been satisfied. Clients should be aware of this change and make preparations for document certification, if necessary.
Easier to Obtain Filing Dates
International clients can now obtain a filing date without translating the Description because the new Patent Rules will no longer require an English or French Description for obtaining a filing date. The translation of the Description may now follow at a later date.
Furthermore, the new Patent Rules will allow Applicants to obtain a filing date on any day of the year by filing electronically, even on days where the Patent Office is closed for a holiday or the weekend. This important change will allow Applicants to obtain a quick filing date prior to any disclosures being made.
Restoration of Priority Claim
The new Patent Rules provide relief for Applicants that unintentionally miss the deadline for a priority request. The 12-month period for priority claims may be extended to fourteen (14) months if the Applicant submits that the delay was unintentional. However, the Federal Court may revoke the priority request if they later determine that the delay was intentional. Clients should be aware of the limited application of this new right of restoration for priority claims.
Please refer to Brion Raffoul’s previous article for more information regarding the new Patent Act and Patent Rules.
IAMPATENT1000 is one of the most respected rankings for patent professionals globally because of peer review in validating its research. The IAMPATENT1000 published the following about Brion Raffoul:
Ottawa-based IP specialist Brion Raffoul is the recipient of emphatic feedback from the market: “Its professionals are extremely organised, proactive and very easy to work with. They have an excellent grasp of their subjects, execute with speed and precision, all while being very responsive.” Cited as being “entrepreneurial and driven practitioners with world-class skills”, Art Brion and Natalie Raffoul form the fulcrum around which the practice turns. Brion is an influential figure in the start-up community and a sought-after representative for companies spun off from universities. Business methods and software patents are bread and butter for Raffoul, who is a “creative, cost-effective, efficient and solutions-oriented partner”.
For more information: https://www.iam-media.com/directories/patent1000/rankings/canada
Ms. Dominique Lambert will be representing the patent team at the BIO International Convention (BIO) being held in Philadelphia from June 3 to June 6, 2019.
BIO attracts 16,000+ biotechnology and pharma leaders who come together to discover new opportunities and promising partnerships, bringing together a wide spectrum of life science and application areas including drug discovery, biomanufacturing, genomics, biofuels, nanotechnology and cell therapy.
By Dominique Lambert
Following the amendments to the Patent Act to comply with the requirements of the Patent Law Treaty (PLT), and proposed amendments to the accompanying Patent Rules, the Canadian Intellectual Property Office (CIPO) has drafted revised administrative procedures for the Manual of Patent Office Practice (MOPOP).
The new Patent Act and Patent Rules are expected to come into force in the Fall of 2019. Many sections of the MOPOP will need to be revised.
This Public Consultation is an opportunity for IP practitioners, IP owners, or any person interested in the Canadian Patent regime to provide feedback on the revised procedures that will be applied by the Office.
The Consultation will be open from March 26, 2019 until May 27, 2019.
Under the new Rules, an Applicant can obtain a filing date by submitting: an indication that a Canadian patent is sought; the Applicant’s information; and a document describing the invention in any language. A translation of the invention description document into English or French and the filing fee may now follow at a later date.
Furthermore, Applicants may now obtain a filing date on a holiday or on the weekend as electronic communications will be deemed received on the day they are submitted, even if the Patent Office is closed.
If the priority claim requirements are not complied with, the priority claim will merely be disregarded rather than being deemed abandoned.
Certified copies of each priority document must be submitted or made available through an acceptable digital library. This requirement will not apply when the priority document is an earlier Canadian application or a national phase application that already satisfied its PCT priority document requirement.
Restoration of Priority Claim
The Office will now provide a two-month extension beyond the twelve-month period for claiming priority. Applicants may now file an application up to fourteen months from the earlier filed application and restore priority.
Streamlined Process for Amending an Application After Allowance
Applicants are no longer required to withhold paying the final fee to let an application go abandoned to re-enter examination. The new Rules allow for requesting a Notice of Allowance to be withdrawn, after which the Application re-enters Examination and the Application may be amended.
Notice Required from Patent Office Prior to Abandonment
Under the new Rules, an Application will not go abandoned for failure to pay maintenance fees or to request examination without prior notification of a deadline. A notice letter will be sent establishing a deadline of the later of six months from the missed deadline or two months from the notice date.
42 Month Deadline for National Phase Entries is No Longer “As of Right”
The twelve-month deadline extension for entering
While these changes are a step in the right direction for patent practice, Patent Applicants should be aware of the tightened timelines and additional requirements coming into force within the year.
If you have any questions regarding the new Rules, please do not hesitate to contact us at [email protected].