International Patent Filings Dip in 2009 amid Global Economic Downturn

Geneva, February 8, 2010
PR/2010/632

Video of the press conference, Audio of the press conference (MP3)

International patent filings under WIPO's Patent Cooperation Treaty (PCT) fell by 4.5% in 2009 with sharper than average declines experienced by some industrialized countries and growth in a number of East Asian countries.  Provisional data indicates that 155,900 [1] (annex 1) international patent applications were filed in 2009 as compared to the nearly 164,000 applications filed in 2008. 

"The decline in PCT filings is not as sharp as originally anticipated – last year's results bring us back to just under 2007 levels, when 159,886 international applications were filed," said WIPO Director General Francis Gurry. "Interestingly, the rate of decline in international filings is lower than that experienced in some national contexts.  This is an indication of a broad recognition that it makes good business sense, whatever the economic conditions, to continue to protect commercially valuable technologies internationally." 

International patent filings in a number of East Asian countries continued to enjoy positive growth in spite of the challenging global economic conditions.  Japan, the second largest user of the PCT, experienced a 3.6% rate of growth with 29,827 applications; the Republic of Korea (ROK), ranked fourth largest user of the system, experienced 2.1% growth with 8,066 applications; and China became the fifth largest PCT user with a strong growth rate of 29.7%, representing some 7,946 international applications. 

International patent filings experienced a sharper than average decline in a number of industrialized countries.  For example, the filing rate dropped by 11.4% in the USA and by 11.2% in Germany in 2009.  Declines were also experienced in the United Kingdom (-3.5%), Switzerland (-1.6%), Sweden (-11.3%), Italy (-5.8%), Canada (-11.7%), Finland (-2.2%), Australia (-7.5%) and Israel (-17.2%). 

The United States of America (USA) maintained its top ranking (Annex 2), filing just under a third of all international applications in 2009 (45,790), followed by Japan (+3.6%, 29,827 applications), Germany (-11.2% or 16,736 applications), ROK (+2.1%, 8,066 applications), China (29.7%, 7,946 applications), France (+1.6%, 7166 applications), United Kingdom (-3.5% or 5,320 applications), the Netherlands (+3.0% or 4,471 applications), Switzerland (-1.6% or 3,688 applications) and Sweden    (-11.3% or 3,667 applications).

Top Applicants [2] (Annex 3)

Panasonic [3] Corporation (Japan) returned to the top spot in the list of PCT applicants, nudging Huawei Technologies, Co., Ltd. (China) into second place.  Panasonic Corporation had 1,891 PCT applications published in 2009, China's Huawei Technologies Co. Ltd. had 1,847, followed by Robert Bosch GMBH (Germany, 1586 applications), Koninklijke Philips Electronics N.V. (Netherlands, 1,295 applications) and Qualcomm Incorporated (USA, 1280 applications).  Four Japanese companies, Panasonic Corporation (ranked 1^st), NEC Corporation (ranked 8^th), Toyota Jidosha Kabushiki Kaisha (ranked 9^th) and Sharp Kabushiki Kaisha (ranked 10^th) featured in the list of top 10 largest filers.

The University of California accounted for the largest number of applications published in the category of educational institutions.  Most top-filing universities, however, experienced declines in the number of international patent filings in 2009. 

Developing Countries

The largest number of international applications received from developing countries in 2009 came from the Republic of Korea (8,066) and China (7,946) followed by India (761), Singapore (594), Brazil (480), South Africa (389), Turkey (371), Malaysia, (218), Mexico (185) and Barbados (96).

Developing countries make up over 78% of the membership of the PCT, representing 112 of the 142 countries that have signed up to the treaty and accounted for 14% of the total number of filings (with China and ROK accounting for 10%).

"In implementing the WIPO Development Agenda, WIPO is working very closely with member states to develop and roll-out projects that will enable all countries to reap the benefits of innovation and the knowledge economy" said Mr. Gurry.  "In this context, maximizing participation in the PCT is a key priority.  Membership of the PCT offers an opportunity for countries to bring their national patenting processes in line with international standards helping to create a more attractive investment environment.  It further offers local companies a cost-effective means of obtaining patent protection in multiple countries" he added. 

Fields of Technology

Declines and advances in PCT filings varied by technology area (annex 4).  The greatest declines related to computer technology (12,560 applications, down 10.6% on 2008); pharmaceuticals (12,200 applications, down 8.0% on 2008) and medical technology (12,091 applications, down 5.9% on 2008).  The largest growth rates were experienced in micro-structural and nano-technology (+10.2%), semiconductors (+10%) and thermal processes and apparatus (+ 7.2%). 

The main fields of technology in which PCT applications are published are broken down according to the International Patent Classification (IPC) – a classification system designed to facilitate the retrieval of technical information found in patent documents worldwide. 

Evolution of the PCT

PCT operations are under constant review to ensure that the system continues to deliver value added services to users.  The system, first launched in 1978, is designed specifically to promote effective information sharing among patent offices, to avoid duplication of work and to facilitate access to valuable patent information. According to WIPO's Program and Budget for 2010/11, the Organization's objective is "to maintain and reinforce the PCT as the central node and work sharing tool of the international system and the preferred route for obtaining international patent protection."

WIPO and other patent offices have continually sought to streamline, modernize and enhance PCT operations to generate efficiency gains and to better serve the business community.  As a consequence, some 80% of all PCT applications are now filed fully or partially in electronic format. 

Other Developments

In 2009, WIPO‘s PATENTSCOPE® search service, which currently hosts data on more than 1.6 million international patent applications filed under the PCT, was further enhanced to include patent data collections of eight patent offices - African Regional Intellectual Property Organization (ARIPO), Cuba, Israel, Republic of Korea, Mexico, Singapore, South Africa and Vietnam – making it possible to conduct high-quality, detailed and free-of-charge searches of the patent information of these offices.   Further enhancements of this data search service are anticipated in 2010.  WIPO provides technical assistance to offices to assist them in the digitization and dissemination of their patent data.  This technical support is part of the Organization's commitment to supporting the development of a fully integrated global IP infrastructure and to increasing participation by developing and least developed countries in the benefits of the knowledge economy.

Impact of PCT Decline on WIPO's Budget

WIPO is a largely self-funding agency, drawing 95% of its income from services to the private sector.  The PCT is one of WIPO's core income generating areas responsible for some 75% of the Organization's revenue.  Since the onset of the global financial crisis, WIPO has closely monitored use of its fee-paying services and adopted prudent financial management and a range of cost-cutting measures.   The Organization expects to report a positive result overall for the 2008/09 biennium.  "This is a very positive result and reflects the seriousness with which we have taken the financial crisis," Mr. Gurry observed.  "We will continue to monitor the situation and are hopeful that the PCT will return to positive growth in the near future."

Background

The PCT offers inventors and industry an advantageous route for obtaining patent protection internationally.  By filing one "international" patent application under the PCT, protection of an invention can be sought simultaneously in each of a large number of countries.  Both applicants and patent offices of PCT member states benefit from the uniform formality requirements, the international search and preliminary examination reports, and the centralized international publication provided by the PCT system.  The national patent granting procedure and the related expenses are postponed, in the majority of cases, by up to 18 months (or even longer in the case of some offices) as compared with the traditional patent system.  By this time, the applicant will have received important value-added information concerning the likelihood of obtaining patent protection as well as potential commercial interest in that invention.

Annex 1

PCT International Applications by Residence of First Applicant

Annex 2

PCT International Applications - Top 15 Countries of Origin

Annex 3

Top PCT Applicants in 2009

Annex 4

Main fields of technology in which PCT applications were published

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[1] Provisional estimate – WIPO continues to receive PCT applications filed with national offices in 2009 throughout the first half of the year.
[2] These company figures refer to PCT applications published, rather than filed.   There is a lag of several months between filing and publication.
[3] Matsushita changed its name to Panasonic in 2008.