The patent system is in place for the protection of new
inventions - to stop others from copying the new ideas and
time-consuming and often costly research of an inventor so that the
inventor can reap the benefit of his/her work.
There are many examples of inventors who did not protect their new
ideas and have not derived the full benefit of their inventions.
Possibly the most famous South African example is the
"dolos" which, according to reports, was invented in 1966
by a draughtsman working at the East London harbor engineer's
office – Mr Aubrey Kruger1. The dolos is a
concrete breakwater structure in the form of an "H", with
the one leg turned through 90 degrees. The dolosse (named after the
fortune-telling bones thrown by Tswana and Sotho diviners) were
lighter and easier to manufacture than prior breakwater blocks, and
interlock and form a breakwater which effectively dissipates the
energy of breaking waves. Dolosse have been used to protect
harbours locally in the Eastern Cape, and internationally. Some
7000 have been used to reinforce the sea-facing Hong Kong Reservoir
and, today, millions are in use throughout the world. The cost of
not protecting this invention has, indeed, been high.
On the other hand, the cost of patenting itself is high and there
are, no doubt, many inventors who have spent a lot of money filing
patent applications for new inventions, and have seen these costs
wasted.
Before proceeding with a patent application it is important
to:
1) determine whether patent protection is suitable for the type of
invention;
2) understand the market, competition, and the need for the
invention locally and internationally;
3) conduct searches to ascertain whether the invention is new and
inventive and thus patentable; and
4) understand the costs of patenting and have a patent filing
strategy in place as early as possible.
1) Determine whether patent protection is suitable
The patenting procedure is time-consuming, and costly. In
most countries of the world it can take from 1-7 years for a patent
application to proceed to grant. On the positive side, the term of
patent protection is long – 20 years from the filing
date. Patents do not suit products that have a short lifespan of
less than 5 years, but are geared towards products with a lifespan
of up to 20 years.
In some cases it may be better to protect a product by keeping its
make-up or the way in which it is manufactured secret. A good
example of this is the formula for Coca-Cola. By keeping the
formulation secret, Coke has been able to protect its product for
longer than the twenty year term afforded by a patent. This
strategy must however be considered very carefully before being
followed. If the secret gets out, for example via a disgruntled
ex-employee, then the information will be in the public domain and
no longer protected. There is also a risk that a third party could
develop the same or a similar invention in a different country
where the invention was not used or known, and may be able to
obtain protection for its invention in that country, and prevent
the "original" inventor from entering the country
thereafter.
2) Understand the market and competition
It is necessary to understand the market and the
competition. It is very difficult to penetrate a market already
saturated with a new product, even if the new product is patented.
A patent does not guarantee commercial success. It must be
determined whether the product can be commercialized successfully
locally and/or internationally. If the product has the potential of
international commercialization, countries and strategies for
entering these countries should be in place to make sure that there
will be a return on the costs of filing patent applications in
these countries. An inventor must also decide how the patents will
be commercialized. Does the inventor have the resources to develop
and supply the invention himself, or does the inventor want to
licence or sell the invention? Despite inventors' hopes and
dreams of making millions, the latter options can prove to be the
more difficult.
3) The novelty search
In order to be patentable, an invention must be new and
inventive. In order to be "new", the invention must be
different from the "prior art". "Prior art" is
all information available to the public prior to the filing date of
a patent application. To be "inventive" an invention must
not be an obvious step in view of the prior art.
Ascertaining the novelty of an invention is most conveniently done
by conducting a patent prior art search. A patent prior art search
can be conducted by a patent attorney. Depending on the complexity
of the search and the number of earlier patents, a prior art search
can cost from R 5 - 15 000 or more. There are also dedicated
searching companies locally and internationally that can conduct
this type of search. Alternatively, inventors can conduct searches
themselves through patent databases that are available on the
internet, for example:
United States Patent and Trademark Office: http://patft.uspto.gov/
Espacenet: http://ep.espacenet.com/
Patent searches are not the only type of prior art searches
that can be undertaken. Searches on the internet, as well as
literature searches can also unearth relevant prior art.
Whichever way an inventor decides to go, a good prior art search
(patent, internet and/or literature) can provide valuable
information as to whether it is worthwhile proceeding with a patent
application, as well as information on what others have tried
before (and possibly does not work too well).
4) The cost of filing patent applications – a
patent strategy
As mentioned above, the term of a patent is 20 years from
the filing date of a complete patent application and, depending on
the route taken and the country, the time taken from filing a
complete patent application to grant can be from 1-7 years (or
longer). During the time that a patent application is pending
maintenance and patent prosecution costs usually fall due. After
grant, yearly renewal fees fall due until the expiry of the patent.
Patents offer long term protection, but may take a long time to
proceed to grant, and are usually costly with costs falling due at
different times.
Patenting in South Africa only
For a South African, the patenting procedure usually
starts off with the filing of a provisional patent application in
South Africa. The cost for a patent attorney to prepare and file a
provisional patent application can be from R 10 000 to R 20 000, or
more if the invention is complex and much time is required to
prepare the patent specification.
After the provisional patent has been filed, the applicant has one
year to take the next step – the filing of a complete
patent application. The complete application can cost from R 15 000
– R 25 000, or more depending on the complexity of the
invention.
The SA Patent Office checks that the correct forms have been filed,
but does not conduct a substantive examination of the application
to check that the claims are new and inventive. The complete
application is usually accepted and can proceed to grant 6-9 months
after filing, with no extra expenses. After grant an annual renewal
fee in the region of R 1 000 falls due to keep the patent in force
until it expires.
The Table 1 below shows the costs that can be expected for the
average SA patent, over the first period of 7 years:
Table 1 – Estimated costs of obtaining patent
protection in South Africa
Cost/R |
Cost/R |
Cost/R |
Cost/R |
Cost/R |
Cost/R |
Cost/R |
||
Prior art search |
10000 |
|||||||
South Africa provisional |
15000 |
|||||||
South Africa complete |
20000 |
|||||||
Annual renewal fee |
1000 |
1000 |
1000 |
1000 |
1000 |
|||
TOTAL/R for first 7 years |
25000 |
20000 |
1000 |
1000 |
1000 |
1000 |
1000 |
50000 |
Patenting Internationally and in South Africa
There are many variables relating to the costs of filing
patent applications internationally as well as the time that it
takes to get patents granted internationally. These include the
complexity of the invention, which patenting route is followed, how
many countries are elected, how difficult the patent prosecutions
are and monetary exchange rates. The explanation below is for an
average international patent filing via the Patent Cooperation
Treaty (PCT) route.
For a South African, this procedure also starts off with the filing
of a provisional patent application in SA at a cost of R 10 000 to
R 20 000, depending on the complexity of the invention.
The provisional application is usually followed by the
International (PCT) patent application which must be filed within
12 months of filing the provisional patent application. The PCT
application can cost from R 50 000 to R 70 000, or more depending
on the complexity of the invention. The PCT application is examined
by an International Patent Examiner who conducts a prior art search
and provides a Written Opinion on the novelty and inventiveness of
the invention claimed. If the Written Opinion is negative, it is
possible to amend the claims and/or provide an argument as to why
the claims are novel and inventive by Demanding Examination of the
application. This step can cost from R 20 000 to R 30 000.
Thereafter the Examiner will issue a Preliminary Examination
Report. A positive report is useful as it can make the prosecution
of patent applications down the line easier.
Within 30/31 months (depending on the country or regional system)
of the filing date of the provisional patent application, it is
necessary to file patent applications in the countries and regions
where patent protection is required. For each country and regional
system there is a cost for filing the patent application. The costs
vary from country to country and regional system to regional
system. The following main regional systems (there are others) are
available:
Europe, covers: Austria, Belgium, Bulgaria, Cyprus, Czech Republic,
Denmark, Estonia, France, Finland, Germany, Great Britain, Greece,
Hungary, Italy, Ireland, Luxembourg, Monaco, Netherlands, Romania,
Poland, Portugal, Slovak Republic, Republic of Slovenia, Sweden,
Switzerland including Liechtenstein, Spain, Turkey.
ARIPO, covers: Botswana, Gambia, Ghana, Kenya, Lesotho, Malawi,
Mozambique, Namibia, Sierra Leone, Sudan, Swaziland, Tanzania
(Tanganyika), Uganda, Zambia and Zimbabwe.
OAPI, covers: Benin, Burkina Faso, Cameroon, Central African
Republic, Chad, Congo, Equatorial Guinea, Gabon, Guinea, Guinea
Bissau, Ivory Coast, Mali, Mauritania, Niger, Senegal and
Togo.
After filing, most countries and regional systems conduct a
substantive examination of the patent application and it is often
necessary to amend the claims and/or submit arguments as to why the
claims are novel and inventive. This step is referred to as
"patent prosecution". Furthermore, in some countries and
regions an annual maintenance fee falls due while the application
is pending. Once the application has been accepted, grant fees fall
due. For the regional system of Europe, a validation fee must be
paid for each country in that system that the applicant elects to
proceed in. After grant, annual renewal fees then fall due for each
country.
Table 2 below shows the costs that could be expected, and when they
could fall due, for the first 7 year period for an average patent
application in a selection of popular countries and regional
systems (and popular countries selected within the regional
systems):
Table 2 – Estimated costs of obtaining patent
protection in selected countries Internationally
Cost/R |
Cost/R |
Cost/R |
Cost/R |
Cost/R |
Cost/R |
Cost/R |
||
Prior art search |
10000 |
|||||||
South Africa provisional |
15000 |
|||||||
PCT application |
80000 |
40000 |
||||||
Australia patent application |
|
40000 |
40000 |
5000 |
5500 |
|||
ARIPO patent application |
45000 |
15000 |
30000 |
20000 |
||||
OAPI patent application |
80000 |
30000 |
10000 |
12000 |
||||
Canada patent application |
35000 |
15000 |
||||||
China patent application |
45000 |
45000 |
3000 |
3000 |
||||
European patent application |
70000 |
50000 |
35000 |
|||||
Germany - validation |
15000 |
8000 |
||||||
France - validation |
15000 |
7000 |
||||||
Italy - validation |
30000 |
7000 |
||||||
United Kingdom - validation |
10000 |
5000 |
||||||
Japan patent application |
65000 |
25000 |
25000 |
|||||
South Africa patent application |
6000 |
1000 |
1000 |
1000 |
||||
USA patent application |
55000 |
50000 |
||||||
TOTAL/R for first 7 years |
25000 |
80000 |
40000 |
441000 |
256000 |
154000 |
108500 |
1104500 |
From the above, it is clear that not filing a patent application
for a new invention and losing out on protection can be very
costly. The filing of patent applications is also a costly
procedure and an inventor should devise a patent filing strategy
early on in the patenting procedure to ensure that there is
sufficient funding and that the patent filing route, countries
selected, and costs for these countries are justified.
Please feel free to contact the writer for further information on
filing patents internationally and patent filing strategies.
Footnote
1. Graeme Addison, The Hidden Edge, The Engineering
Association, 2002, pg. 143
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.