Canada: Omnibus budget bill changes exceptions to patent infringement

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Canada: Omnibus budget bill changes exceptions to patent infringement

In the omnibus budget bill passed by the Canadian parliament on December 3 2018 were numerous amendments to Canada's IP statutes, including to sections of the Patent Act that provide exceptions to infringement.

Exception for experimental use

The changes to the Patent Act include moving the exception for experimental use under subsection 55.2(6) to its own section, 55.3, and potentially altering its scope. Section 55.3 also allows the government to enact regulations setting out factors that the court may consider, must consider or cannot consider in determining whether an act is committed for experimental purposes. The changes also provide for regulations that set out circumstances under which an act is, or is not, committed for experimental purposes.

The government has yet to announce plans for such regulations. Until then, the nature and scope of the existing exception for experimental use remains unchanged.

Exception for acts committed prior to the claim date

The changes also include replacing Section 56 of the Patent Act, expanding the scope of the infringement defence arising from acts committed prior to the asserted patent's claim date. Previously, a person purchasing, constructing or acquiring the subject matter of a claim before the claim date had the right to use or sell what had been purchased, constructed or acquired without being liable for infringement. A defence to infringement now arises when a person in good faith before the claim date, commits, or makes serious and effective preparations to commit, an act that would otherwise be infringing. This must have been done without obtaining knowledge of the claim's subject matter from the patent applicant.

The exemption to infringement also extends to future third parties. When the act includes a service, users of the service are also covered by the exemption. If committing the act resulted in an article, users or buyers of such an article are also exempted from infringement.

If the act giving rise to the exception was committed, or the preparations to commit the act were made, in the course of a business and this portion of the business is then sold, the exception to infringement is transferred and does not remain with the seller.

These changes introduce uncertainty into determining whether an allegation of infringement is justified, even though the requirement for good faith and the extension to preparatory acts are found in similar provisions in other jurisdictions. It is unclear whether the Canadian courts will look to or follow foreign jurisprudence when they are called to provide guidance regarding the meaning and scope of "serious and effective preparations" to commit an otherwise infringing act and when an act is done in good faith.

chong.jpg
daley.jpg

Jonathan Chong

Brian Daley


Norton Rose Fulbright Canada LLPSuite 3800, Royal Bank Plaza, South Tower, 200 Bay Street, PO Box 84Toronto  Ontario  M5J 2Z4CanadaTel: +1 416 216 4000www.nortonrosefulbright.com

more from across site and SHARED ros bottom lb

More from across our site

Regulatory changes and damages risks are prompting Canadian firms and clients to opt for settlements in generic and biosimilar cases
News of Via Licensing Alliance adding two new members and Nokia’s proposal to extend interim licences to Warner Bros Discovery and Paramount were also among the top talking points
A new claim filed by Ericsson, and a request for access to documents, were also among recent developments
Cooley and Stikeman Elliott advised 35Pharma on the deal, which will allow GSK to get its hands on S235, an investigational medicine for pulmonary hypertension
Simon Wright explains why the UK should embrace the possibility of rejoining the UPC, and reveals how CIPA is reacting to this month’s historic Emotional Perception AI case at the UK Supreme Court
Matthew Grady of Wolf Greenfield says AI presents an opportunity in patent practice for stronger collaboration between in-house and outside counsel
Aparna Watal, head of trademarks at Halfords IP, discusses why lawyers must take a stand when advising clients and how she balances work, motherhood and mentoring
Discussion hosted by Bird & Bird partners also hears that UK courts’ desire to determine FRAND rates could see the jurisdiction penalised in a similar way to China
The platform’s proactive intellectual property enforcement helps brands spot and kill fakes, so they can focus on growth. Managing IP learns more about the programme
Hire of José María del Valle Escalante to lead the firm’s operations in ‘dynamic’ Catalonia and Aragon regions follows last month’s appointment of a new chief information officer
Gift this article