Who gains from the relentless rise in IP applications?
Managing IP is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX
Copyright © Legal Benchmarking Limited and its affiliated companies 2024

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

Who gains from the relentless rise in IP applications?

WIPO has just revealed its annual report on IP indicators, filled with superlatives about fastest rates of growth and record numbers of filings. After a short-term drop following the lowest point of the global financial crisis, it seems as though the steady uptick in global IP applications continues

But should we celebrate or be concerned about the statistics?

Take China. WIPO says that last year, for the first time, residents of China accounted for the largest number of patents filed throughout the world. The country’s IP office, SIPO, received more applications than any other IP office.

It’s not just in the patent field where China dominates. Last year, residents of China filed trade mark applications with more than 1.5 million class counts – more than three times as many as the next biggest class filer, the US.

So how should we interpret the statistics? One interpretation is that they signal a real change in levels of Chinese innovation and brand creation. Another is that they represent a flood of applications for utility model patents and bad faith trade mark filings. (Chinese companies are far more likely that foreign ones to apply for lower-value utility models rather than invention patents in China – a phenomenon that the government is seeking to change. High levels of trade mark squatting have exasperated foreign companies entering the Chinese market).

The answer, of course, is probably a bit of both.

The majority of practitioners and IP professionals understand that global patent filing growth rates of 9%-plus and a 6% rise on trade mark class counts may not be unqualified good news: the pressure on IP offices, leading to patent thickets and overcrowded registers and the high cost of challenging duff patents and other IP rights? are just a few of the potential problems.

But while there might be agreement that the relentless rise in IP applications is not necessarily a Good Thing at the aggregate level, is there an agreement about what should be done about it?

One option, or course, is to do nothing. Another is for IP lawmakers and examiners to make it tougher to obtain IP rights. Yet another is for IP attorneys to discourage their clients from adding to the pile of weak applications. After all, isn’t improving the system better for all IP owners and users in the long run? While the season may be apt for metaphors about turkeys and Christmas, isn’t that something the profession should consider? Do you – or should you – tell clients not to apply for IP rights? Do let us know.

more from across site and ros bottom lb

More from across our site

Partners and other senior leaders must step up if they want diverse talent at their firms to thrive
European and US counsel reveal why they are (or aren't) concerned about patent quality and explain how external counsel can help
Firms such as Bird & Bird and Taylor Wessing have reported rising profits and highlighted the role of high-profile IP disputes and hires
We provide a rundown of Managing IP’s news and analysis from the week, and review what’s been happening elsewhere in IP
Lawyers in the corporate and IP practices discuss where the firm can steal a march on competitors, its growth plans in London, and why deal lawyers are ‘concertmasters’
Kathleen Gaynor, DEI specialist at Phillips Ormonde Fitzpatrick, says deliberate actions can help law firms reach diversity goals
Scott McKeown, who moved to Wolf Greenfield one year ago, says the change has helped him tap into life sciences work and advise more patent owners
The winners of our Asia-Pacific Awards 2024 will be revealed during a ceremony in Malaysia on September 26
Zach Piccolomini of Wolf Greenfield explains how to maximise your IP portfolio’s value while keeping an eye on competitors
Witnesses at a Congressional hearing debated whether reforming the ITC is necessary and considered what any changes should look like
Gift this article