Innovation under threat as patent regime faces the axe: Australian Ombudsman

“It would be a mistake to phase out the innovation patent system without any replacement,” Ms Carnell said.

“Although we acknowledge the current system is not perfect, it’s the only viable way for SMEs to access temporary or short-term IP protections, which is essential, particularly when disputes arise.

 “Abolishing the innovation patent system would effectively leave small businesses vulnerable to large businesses stealing their ideas and inventions.

“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.

“That’s why my office continues to strongly argue against phasing out the innovation patent regime and instead either improve the existing system or replace it with something better.

“Many small businesses rely on the innovation patent system to attract 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.

“The fact is, by phasing out the innovation patent system, many of these small businesses will look to import products rather than innovate and that has serious ramifications for Australia’s economy.

“This week the Senate will debate the innovation patent as part of a suite of proposed intellectual property law changes and I urge them to support amendments stopping the abolition of the innovation patent regime.”