[Ip-health] WIPO Report on Patent Trends

[James Love]

*  Five patent offices account for 75% of all patents filed and 74%
of patents granted worldwide. These are the United States of America
(USA), Japan, the European Patent Office (EPO), Republic of Korea and
China.

*  In 2004, of the total of 5.4 million patents in force worldwide,
81% were granted in six countries: USA, Japan, the United Kingdom,
Germany, Republic of Korea and France. An analysis of the country of
residence of the patent applicant, however, puts Japan at the head of
the field followed by the USA, Republic of Korea, Germany, France and
Russian Federation.

* In only 20 years, China has become the 5th largest patent office in
the world (by number of patent applications filed) and patent filings
by Chinese residents grew more than five-fold between 1995 and 2004
to reach 65,786. Today, the Republic of Korea is the 4th largest
patent office in the world and is also experiencing very high growth
rates with a three-fold increase in patent filings by residents
between 1994 and 2004.

* Indicators of patent intensity show that Japan and the Republic of
Korea, in particular, have very high rates of patenting as a
proportion of GDP or of research and development activity. Per dollar
of GDP, Japan and the Republic of Korea file five times as many
patents as the industrialized countries of Europe and North America.


Begin forwarded message:

From: publicinf@wipo.int
Date: October 16, 2006 4:31:56 AM EDT
To: pressinfo-en@lists.wipo.int
Subject: Press Release 463: WIPO Report Shows Internationalization of
Patent Trends
Reply-To: publicinf@wipo.int

Press Release 463Geneva, October 16, 2006
WIPO REPORT SHOWS INTERNATIONALIZATION OF PATENT TRENDS
A report released by the World Intellectual Property Organization
(WIPO) on Monday, October 16, 2006, shows that the patent system is
an integral part of increasing global economic activity, with the
increase in patent filings closely mirroring economic growth around
the world. The WIPO Patent Report 2006 shows that companies are
increasingly using the intellectual property (IP) system to protect
their investments in new markets. The report reveals that a total of
5.4 million patents were in force worldwide in 2004, the last year
for which complete statistics are available.

"This comprehensive report presents a complete picture of worldwide
patent activity in an easily-accessible format. It shows the
distribution of patent activity around the world and contains
detailed information on some of the important trends of the patent
system," said Dr. Kamil Idris, Director General of WIPO. "Over the
past few years WIPO has improved its collection and analysis of
industrial property statistics to assist policy makers, practitioners
and other interested parties in better understanding the impact of
the patent system on economic and inventive activity around the
world," he added.

The Director General said "The report shows a marked increase in the
use of the patent system internationally. It also shows that the
patent system is being used for its intended purposes, namely to
stimulate innovation and promote economic activity." Dr. Idris
further noted that the report shows an increase in the use of WIPO=92s
Patent Cooperation Treaty (PCT). The PCT, which provides a simplified
system for international patent filing, has become a major tool for
companies seeking broad-based patent protection. The number of PCT
applications grew at an average annual rate of 16.8% between 1990 and
2005 and topped 134,000 international applications in 2005. The PCT
is now used in 47% of all international patent filings.

The number of patent applications filed worldwide almost doubled
between 1985 to 2004, rising from 884,400 to 1,599,000 with an
average annual rate of increase of 4.75% since 1995. This is in line
with the average annual growth in world gross domestic product (GDP)
of some 5.6%.

Since 1995 there has been a continuous increase in the number of
filings by patent applicants in their country of residence,
reflecting steady growth in domestic inventive activity. The bulk of
the increase in total filings is accounted for by international
patent applications. Large increases in foreign patents filings in
countries like Brazil, China, India, Korea, and Mexico reflect the
internationalization of markets and production. Companies seeking new
export markets or investing overseas are keen on protecting their
inventions in these key emerging economies.

The report notes a boom in patent filings in northeast Asia over the
past 20 years, most notably with the emergence of China and the
Republic of Korea as major industrial economies. For several decades
Japan has been the largest patent office in the world with more than
400,000 patent applications filed by residents and non-residents in
2004. In only 20 years, China has become the 5th largest patent
office in the world (by number of patent applications filed) and
patent filings by Chinese residents grew more than five-fold between
1995 and 2004 to reach 65,786. Today, the Republic of Korea is the
4th largest patent office in the world and is also experiencing very
high growth rates with a three-fold increase in patent filings by
residents between 1994 and 2004.

Although an increasing number of applicants are seeking protection
for their inventions outside their country of residence, and emerging
and fast-developing economies have been using the patent system more
extensively, its use is still very concentrated. Five patent offices
account for 75% of all patents filed and 74% of patents granted
worldwide. These are the United States of America (USA), Japan, the
European Patent Office (EPO), Republic of Korea and China.

The ownership of patent rights in force, or the patents granted over
the past 20 years, shows even greater concentration, with residents
of Japan and USA owning 29% and 22% respectively of all patents in
force in 2004. As not every patent application translates into a
patent - this may be for a variety of reasons, for example, an
applicant may decide not to pursue the application or an application
may be rejected - the number of patents that were actually granted in
2004 is 600,000, representing an average annual growth of 4% between
1995 and 2004.

A patent is granted for a period of twenty years, although extensions
are possible in some circumstances. In 2004, of the total of 5.4
million patents in force worldwide, 81% were granted in six
countries: USA, Japan, the United Kingdom, Germany, Republic of Korea
and France. An analysis of the country of residence of the patent
applicant, however, puts Japan at the head of the field followed by
the USA, Republic of Korea, Germany, France and Russian Federation.
It is to be noted that information on patents in force is not
available for several offices that have relatively high numbers of
patent applications, notably Argentina, Brazil, China, India and some
European offices. Of the patents in force in 2004, 53% were filed in
1997 or later. Only 22% of the patents in force in 2004 were filed
before 1994.

The report introduces the concept of patent intensity indicators that
weight the number of patents by different measures of country size
(population, GDP, research and development expenditure). Indicators
of patent intensity show that Japan and the Republic of Korea, in
particular, have very high rates of patenting as a proportion of GDP
or of research and development activity. Per dollar of GDP, Japan and
the Republic of Korea file five times as many patents as the
industrialized countries of Europe and North America.

These indicators also show that many small industrialized countries
have above average rates of patent filing, such as Australia, New
Zealand, Finland, and Denmark. East European countries such as the
Russian Federation, Ukraine and Belarus also have high rates of
patent activity when compared with total GDP and with research and
development expenditure.

The full report is available at http://www.wipo.int/ipstats/en/
statistics/patents/.

For further information, please contact the Media Relations and
Public Affairs Section at WIPO:

Tel: (+41 22) 338 81 61 or (+41 22) 338 95 47;

E-mail: publicinf@wipo.int

Fax: (+41 22) 338 82 80.