Issue 4 : November 2009
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PCT and its Effect to Thai Inventors

The Patent Cooperation Treaty Receiving Office officially opened to assist Thai inventors to file patent application in multiple countries. During the past 10 years, the Commerce Ministry of Thailand has played an active role in becoming the member of PCT, starting from the amendment of local regulations and orders, seeking approval from the cabinet and the parliament, taking preparation on the patent evaluation system and institution capacity building for Department of Intellectual Property. Recently, the Cabinet approved the draft Ministerial Regulation implementing PCT system in Thailand on September 8. The draft has been already reviewed by Office of the Council of State of Thailand. The Foreign Ministry then submitted the Instrument of Accession to the PCT for Thailand to become a membership on September 24. As a result, Thailand has become the 142th member of PCT.

How this will effect to Thai inventors? We will discuss this issue with Mr.Fabrice Mattei, Managing Director, Rouse & Co. International. Mr. Fabrice moved from the UK to Thailand in 1996, joining Rouse & Co. International in 2000 to set up and manage its office in Bangkok. He trained in Paris at the head office of international law firm Gide Loyrette Nouel, and then worked with two law firms in the UK before moving to Thailand.

Q: Please give us overview of Rouse.
Rouse is a leading international intellectual property law firm with 20 offices around the world, including two offices in Thailand.

In Thailand, Rouse has a team of patent agents and lawyers highly specialized in patent drafting, filing, prosecution and commercialization (e.g. licensing etc). We represent various clients in different industries including biotechnology, nanotechnology, semi-conductor etc.


Q: What is international filing system for patent under the system of Patent Cooperation Treaty or PCT?

The PCT establishes a simplified procedure for the filing and processing of a single application for a patent which has legal effect in the countries which are Treaty members (142 countries).

It is important to remember that the decision on granting patents is still made exclusively by national or regional Offices in the national phase. In other words, the PCT does not grant any international patent.

Essentially, the PCT acts as a “clearing house”, ensuring that the single application conforms to the filing requirements in the each of the national Patent Office designated for filing in the initial PCT request, and establishing an internationally accepted priority date for the application.

Q: What are the country status in patent registration and protection? Why we need PCT?

Before Thailand joined the PCT, a Thai applicant who wished to file his patent abroad wasn’t able to file a single “international” patent application under the PCT. He was only able to file disparate applications in different countries resulting in higher filing costs, higher up-front expenses (i.e. translation cost) and more filing formalities (i.e. Power of Attorney, deed of assignment etc). PCT in this respect simplifies the filing process for the user by having a single initial application and a priority date established clearly.

Another significant improvement with the PCT when comparing to the current patent system in Thailand is the extended priority period, which may postpone national filing by up to 8 to 18 months. This can be very valuable in some circumstances, by giving extra time to the Thai patent applicant to get the national patent filings right, to check the commercial value of the innovation, or simply to postpone various patent costs.


Q: Will the country gain benefits or competitive advantage in becoming PCT’s member? And how?

Only a fraction of patents filed by Thai applicants in Thailand are ever filed outside the country. Patenting abroad is costly, and only relatively high quality inventions in general are patented abroad. The PCT will help Thai applicants to file, protect and license their inventions in more countries than in the past. It should contribute to enhance the transfer of Thai technologies in foreign countries. Not protected in foreign countries, some Thai inventions are simply exploited by third parties without paying any royalties or financial compensation to Thai inventors. If Thai inventors use PCT appropriately, we should witness an increase of Thai inventions patented abroad including Thailand’s major export markets such as US and Japan.

In contrast, patents filed in Thailand by non-Thai residents represent approximately 86 % of the total patents in this country. In other words, 9 inventions out of 10 are filed by foreigners in Thailand. It is expected that the % of patents filed in Thailand by non Thai residents will increase after December 24, 2009 resulting in more pressure on Thai individuals and companies to be vigilant before launching their products on the Thai market or using particular process. This could eventually turn into an opportunity for Thai inventor to gain access to information on new inventions, and subsequently use the information to create additional value (e.g. improvement of technology etc).

Other possible benefits of using the PCT are more speculative, and it is not known how great these benefits will be in practice. There should in theory be advantages in speeding up the national filings, if the PCT search and examination helps make the examination process of patents filed at the Department of Intellectual Property in Thailand faster or more certain.

Q: Under these circumstances, we should ask ourselves what are the benefits for Thailand of becoming a PCT member country?

With PCT, Thai inventors can apply for patent protection abroad easier, cheaper and can expand and use their products or process abroad with less risk of being blocked by a third party. It should then encourage inventors to innovate and to protect and commercialize their inventions not just in Thailand but abroad as well. Accordingly, this should help Thai inventors to gain access to new marks, enhance research and development in Thailand.

One of the main objective of any patent is to reveal the main idea of the invention to public. An increase of patents filed by non Thai residents should allow the Thai industry to gain access to information on new inventions, and subsequently use the information to create additional value. In turn, this will increase the competitiveness of the Thai industry.

The Thai Patent Office, Ministry of Commerce will earn additional income from the international filings and, in turn, according to the Department of Intellectual Property “it can use this revenue to set up funds to promote research and development for the Thai inventors as well as to support their expenses in applying for a patent abroad”.

Q: What will be its effect to Thai Economy?

A rule of thumb is that the PCT is economically attractive for more than three countries in addition to the domestic patent. However they are increasingly using the PCT rather than direct filing once they have a number of foreign patents to consider.

There are transactional advantages. Using the PCT involves a single application, versus a number of disparate applications in different countries. Although the national filing is ultimately the responsibility of the user and proceeds in a way little different from the direct application from that point on, there are several simplification in managing the process for the user by having a single initial application and a priority date established clearly. This includes a standardized formality check, which may be especially valuable to small users, unfamiliar with national requirements, but which also applies to any user unfamiliar with all the differences between national filings. The PCT also imposes a discipline on the filing schedules, with the focus of the applications in one place, with known deadlines, helps avoid the problem of missed deadlines and formalities when filing directly.

Another significant factor is the potentially very great value to the patentee of the extended priority period, which may postpone national filing by up to 8 to 18 months. This can be very valuable in some circumstances, by giving extra time to get the national patent filings right, to check the commercial value of the innovation, or simply to postpone various patent costs. There are three aspects. First, this gives additional time to prepare application correctly. Second, it allows the applicant to postpone the high costs of translation, attorney/agent fees, and PTO filing (and maintenance) fees. Third it allows the applicant additional time to examine the technical and commercial viability of the patent. This last may be very important, since it is estimated that as many as 20-25% of applications may be dropped before national filing, saving further application costs.

Q: By being member of PCT, what will be benefits to Thai’s inventions and innovations?

The benefits to Thai inventions and innovations will transpire in protection that those inventions might gain in foreign countries. Until now, for procedural and cost reasons, Thai inventors and applicants have not substantially extended their patents registered in Thailand to too many countries which result in less business opportunities for them and sometime even Thai inventions being copied in foreign countries.

Innovation will also benefit. As more patents will be filed in Thailand, we expect that more patents will be exploited in this country, it should allow the Thai inventors to gain access to information on new inventions, and subsequently use the information to create additional value. In turn, this will increase the competitiveness of the Thai industry.

The extra filing time will also give firms an additional period in which to form views as to the patentability of the innovation, and of the commercial value of the innovation. The value of a patent depends on three main features: the viability of the patent in terms of its legal strength, the enforceability of the patent in different jurisdictions, and the commercial value of the patent in different markets. The additional time and information will give the patent application the option of amending or dropping the patent filing depending of these three key aspects. Coupled with the information from the international search report and international preliminary examination report the user has additional time in which to decide, from a technical viewpoint, whether to file the patent, where to file, and whether to amend the filing at the national level.

Q: Will this encourage Thai to create new inventions and innovation? Do we need other mechanism to support this?

The cost of developing technology has risen to the point that innovators often must consider joint ventures and alliances to develop and commercialize new technology. Technological development is complex and risky. Investments are made with long payoff periods and unpredictable outcomes. The viability of such arrangements depends on the innovator’s ability to define and protect its rights to the technology brought to the venture. By the same measure, firms are increasingly likely to use out-licensing as a revenue source, and in licensing as a means of cheaply accessing new technologies. As a result concerns about the interaction between legal rights and innovation strategy will be greater in Thailand than ever before.

Q: What is the registration process under PCT's terms and conditions?

A PCT patent application has two major phases:

PCT applications are accepted by a number of Receiving Offices (ROs), including Thailand, and forwarded to the International Bureau of the PCT Directorate for processing. This begins the International Phase (Phase I) of the application. The application is checked for conformity to the patent requirements of the countries designated for national patenting in the application. The patentee designates a list of countries in which a patent may be sought, and to which a copy of the application will be sent at the publication date, 18 months after the priority date (the 1st patent application). For all applications the PCT subjects the application to an international patent search, citing relevant prior art, to be performed by a designated International Searching Authority (ISA), and generating an International Search Report (ISR). The report is sent to the applicant and published. The PCT also publishes the application, at 18 months after filing.

The application moves to the National Phase (Phase II), at a time selected by the applicant (within the overall application schedule). The applicant decides with which national offices to file, typically far fewer than originally designated. The applicant pays the national fee and supplies the national offices with translations if needed. The application is then forwarded to the national Patent Office. The PCT does not grant “international patents” granting the patents is the responsibility of the national and regional Patent Offices.

There are three key filing dates for the application: the initial PCT filing date, the election for PCT examination, and the national filing data.

Q: How Rouse can be of service to Thai’s inventor?

Rouse is well placed to assist Thai inventors in drafting, filing and prosecuting their patents via the PCT. We have a team of experienced Thai and foreign patent agents specialized in different technical fields as well as a legal team well acustomized with PCT rules.

For more information please visit www.iprights.com or call 02-653-2730-3.