29 September 2011

Patents

A patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something or offers a new technical solution to a problem. It is valid for a limited period of time (generally 20 years), during which patent holders can commercially exploit their inventions on an exclusive basis. 

The patent system is designed to encourage innovation by providing innovators with time-limited exclusive legal rights, thus enabling innovators to reap the benefits of their innovative activity. 

Patents belong to the more general category, which is intellectual property. Intellectual property (IP) refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce. In general IP is divided into two categories:
 industrial property, which includes inventions (patents), trademarks, industrial designs, and geographic indications of source,
  • industrial property, which includes inventions (patents), trademarks, industrial designs, and geographic indications of source, 
  • copyright, which includes literary and artistic works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designs. 

In the world there is no single patent office, which coordinates the receiving applications and granting patents in force in all countries. For this reason United Nations created specialized agency to promote the protection of IP around the world by cooperation among states and in collaboration with other international organizations. In 1967 the World Intellectual Property Organization (WIPO) was established. It is dedicated to developing a balanced and accessible international intellectual property (IP) system, which rewards creativity, stimulates innovation and contributes to economic development while safeguarding the public interest.

Current patent system possess some essential weaknesses, including:
  • Lack of one single global system of patent law - the best example is situation in UE. 
  • Conflicts connected with software patents.
  • Patent trolls - firms which acquiring and enforcing patents, rather than create and sell goods (in the past, non-practicing entities – NPEs). They opportunistically litigate over software patents with unpredictable boundaries. Recent studies show that defendants have lost over half a trillion dollars in wealth—over $83 billion per year during recent years and this has not improved incentives to innovate.*  
* Boston University School of Law, Working Paper No. 11-45, www.bu.edu/law/faculty/scholarship/workingpapers/documents/BessenJFordJMeurerM091911.pdf , 24.09.2011  

Despite the drawbacks of the patent system, the number of applications and granted patents has increased rapidly - in the last 20 years it has almost doubled. 

Specification
1990
2000
2008
total number of patent applications
1 006 044
1 373 882
1 907 915
total number of patent grants
410 075
514 884
777 556
Source: www.wipo.int/ipstats/en/statistics/patents/ 24.09.2011 

In the following list you can compare countries with the highest GDP and patent applications, patent grants and patents in force by patent office in 2009. 

COUNTRY
GDP Rank
Patent applications
Patent grants
Patents in force
United States
1
456 106
167 349
1 930 631
China
2
314 573
128 489
828 054*
Japan
3
348 596
193 349
-
Germany
4
59 583
14 435
509 879*
France
5
16 104
10 529
438 926*
United Kingdom
6
22 465
5 428
590 043
Brazil
7
21 825**
2 451*
32 484**
Italy
8
9 717
18 277
-
Canada
9
37 477
19 497
134 150
India
10
36 812*
18 230
6 568****
Russia
11
38 564
34 824
170 264
Spain
12
3 803
2 602
166 079*
Australia
13
26 346*
11 863*
107 708*
Mexico
14
14 281
9 629
74 550
South Korea
15
163 523
56 732
637 197
Netherlands
16
2 854
1 948
16 262
Turkey
17
2 732
648
7 472
Indonesia
18
4 606***
-
-
Switzerland
19
-
-
120 178
Poland
20
3 140
3 958
26 327
Source: www.wipo.int/ipstats/en/statistics/patents/ 24.09.2011
* - 2008
** - 2007
*** - 2006
**** - 2004

Presented information contains selected data. You can find more detailed statistics about patents by checking following website:
- www.wipo.int/ipstats/en/statistics/patents
- www.wipo.int/export/sites/www/ipstats/en/statistics/patents/pdf/941_2010.pdf