New Zealand: MBIE proposes amendments to IP legislation

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

New Zealand: MBIE proposes amendments to IP legislation

The Ministry of Business, Innovation and Employment (MBIE) has released a discussion paper inviting submissions on potential amendments to New Zealand's patent, trademark, and design legislation.

The full discussion paper is available at www.mbie.govt.nz. Several of the more significant proposals are discussed below.

Patents Act 2013

"Daisy-chaining"

MBIE considers that the practice of "daisy-chaining" divisional applications, which "allows an originally filed parent application to be kept pending for up to 20 years," is not in the public's interest. To address this, MBIE proposes introducing a deadline of 12 months from issuance of the first examination report in the original parent application for putting all divisional applications in order for acceptance.

It is expected that most submissions will be opposed to this change. The existing requirement for requesting examination within five years of the antedated filing date, itself not without controversy following introduction in the 2013 act, already ensures that patent applications under that act can no longer remain pending for "up to 20 years". Further restrictions may be premature.

Applications under the Patents Act 1953

MBIE further proposes amending the transitional provisions of the 2013 act so that divisional applications made under the 1953 act, which can continue to be daisy-chained throughout their 20-year term, will be examined under the stricter novelty inventive step and support requirements of the 2013 act.

Previous consultation on this issue suggests that submissions will likely be mixed, with local manufacturers generally supportive, but at least some practitioners opposed to the change.

Exhaustion of patent rights

MBIE proposes explicitly adopting the doctrine of exhaustion in relation to patent rights. A New Zealand patent will be of no use to a patentee in controlling further sales or parallel importation of a product originally sold with the patentee's authority (whether domestically or internationally).

Exhaustion of patent rights is yet to be tested in the New Zealand courts, but the Trade Mark and Copyright Acts already contain similar provisions.

This proposal is not expected to be overly controversial. Contractual clauses and regulatory restrictions on importation of products into New Zealand may continue to apply, and there is no proposal to add a similar provision to the Designs Act.

Trade Marks Act 2002

Series marks

MBIE proposes removing the provisions for series marks, which presently allow for several marks to be filed as a single application if they differ only in non-distinctive ways. Around 50% of series marks are filed incorrectly, which indicates misunderstanding of their purpose or criteria. In order to provide greater clarity and reduce administrative costs, MBIE proposes completely removing series marks, rather than provide increased guidance, criteria, or costs. Despite facing similar filing issues, UK and Australian trade mark laws still provide for series marks. Further, given our Supreme Court's narrowing of the interpretation of "distinctive character" of a trade mark, applicants may have real cause for concern at losing the ability to file series marks.

Prior continuous use

The act currently provides a rigorous priority system, with extremely narrow options for achieving registration in the face of a blocking registration. The current exceptions of "honest concurrent use" and "other special circumstances" are interpreted so narrowly that neither allows for "prior continuous use." MBIE proposes what is considered a welcome change for many practitioners, to specifically provide an exception for "prior continuous use", similar to that under section 44(4) of the Australian Trade Marks Act 1995.

Process

Submissions close on August 2 2019. MBIE will then seek government approval to draft an Amendment Bill and introduce it to parliament.

halberg.jpg
huthwaite.jpg

Ben Halberg

Thomas Huthwaite


Baldwins Intellectual PropertyLevel 15, HSBC House, 1 Queen St, Auckland 1010, New ZealandTel: +64 9 373 3137Fax: +64 9 373 2123email@baldwins.comwww.baldwins.com

more from across site and SHARED ros bottom lb

More from across our site

News of Nokia signing a licensing deal with a Chinese automaker and Linklaters appointing a new head of tech and IP were also among the top talking points
After five IP partners left the firm for White & Case, the IP market could yet see more laterals
The court plans to introduce a system for expert-led SEP mediation, intended to help parties come to an agreement within three sessions
Paul Chapman and Robert Lind, who are retiring from Marks & Clerk after 30-year careers, discuss workplace loyalty, client care, and why we should be optimistic but cautious about AI
Brantsandpatents is seeking to boost its expertise across key IP services in the Benelux region
Shwetasree Majumder, managing partner of Fidus Law Chambers, discusses fighting gender bias and why her firm is building a strong AI and tech expertise
Hady Khawand, founder of AÏP Genius, discusses creating an AI-powered IP platform, and why, with the law evolving faster than ever, adaptability is key
UK firm Shakespeare Martineau, which secured victory for the Triton shower brand at the Court of Appeal, explains how it navigated a tricky test regarding patent claim scopes
The firm’s managing partner said the city is an ‘exciting hub of ideas and innovation’
In our latest podcast, Deborah Hampton talks through her hopes for the year, INTA’s patent focus, London 2026, and her love of music
Gift this article