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Intellectual Property

for Business Series


No. 3

INVENTING THE FUTURE


An Introduction to
Patents for Small
and Medium-sized
Enterprises in Pakistan
Preface
Publications in the “Intellectual Property for Business” Series:
'Intellectual Property' till recently has been considered a luxury by
1. Making A Mark - An introduction to Trademarks for Small and the industry in general and SMEs in particular. In fact, it is a major

Preface
Medium-sized Enterprises. avenue for SMEs to establish their credentials at par with the large
2. Looking Good – An introduction to Industrial Designs for Small and enterprises. Every business has some valuable intangible property
worth protecting. Keeping SMEs abreast of the latest information on
Medium-sized Enterprises.
Intellectual Property Rights (IPRs) systems and to enable them to
3. Inventing the Future - An introduction to Patents for Small and protect their IP assets is, indeed, the need of the hour. Ignorance in
Medium-sized Enterprises. this field may lead to loss of valuable rights or expensive litigation
4. Creative Expression - An introduction to Copyright and Related Rights or both.
for Small and Medium-sized Enterprises.
This customized version of 'Inventing the Future' is dedicated to a
description of the basics of patents, benefits to be derived and steps
The adapted versions of the above mentioned publications are available at the to seek patent protection of new and innovative technologies and
WIPO (WIPO e-bookshop at www.wipo.int/ebookshop) and SMEDA website processes. This has been illustrated with the help of matching real
(SMEDA publications at www.smeda.org.pk). examples of Pakistani businesses. Innovative SMEs constantly
engaged in developing new and improved products or
Disclaimer: The information contained in this guide is not meant as a substitute manufacturing processes should take a keen note of the contents.
for professional legal advice. Its purpose is to provide basic information on the Admittedly, the process of patent protection is complex; however,
it is time SMEs realize the immense long-term benefits to be reaped
subject matter. This publication has been adapted and reproduced with the prior
from granted patents far outweighing the investment in terms of
express permission of the World Intellectual Property Organization (WIPO), the money and time involved.
copyright owner of the original English Language version, which is available at
www.wipo.int/sme/en/documents/guides/. As such, WIPO is not liable or The efforts of the SMEDA core team comprising of Mr. Muhammad
responsible for the accuracy or correctness of the adapted version of the Jamil Afaqi, Ms. Aisha Amjad Mir and Mr. Shaheen Tahir as well as
publication, as that liability or responsibility rests solely with the Small and Ms. Tanya Hafeez supported by Mr. Liaqat Ali Gohar are
Medium Enterprises Development Authority of Pakistan. commendable in producing this publication.

SMEDA Copyright (2009). WIPO owns copyright in the original English I hope SMEs will take advantage of this work produced under the
joint effort of the World Intellectual Property Organisation (WIPO)
Language version (2006).
and Small and Medium Enterprises Development Authority
(SMEDA), to opt for protecting their inventions by use of Patent
No part of this publication may be reproduced or transmitted in any form or by System to maximize accrual of benefits from monopoly right
any means, electronically or mechanically, except as permitted by law, without granted with the patent for use and commercialization of the
written permission from Small and Medium Enterprises Development Authority inventions.
(the owner of the copyright).

Shahid Rashid
CEO SMEDA

1
Table of Contents Patents
1Patents
What is a Patent? the invention to the public by providing a
Table of Contents

A patent is an exclusive right granted by the detailed, accurate and complete written
State for an invention that is new, involves description of the invention in the patent
an inventive step and is capable of application. The granted patent is made
Sections Topic Page No. industrial application. public via publication in the official gazette.

1. Patents 3 In Pakistan, patent is granted by the Patent Example:


Office in accordance with the provisions of An innovation which provides a unique
2. How to Get a Patent 14 the Patents Ordinance, 2000. As per headlight glass lens of an automobile is
section 7 of the Ordinance, an invention is patented in Pakistan by Khawaja
3. Patenting Abroad 25 patentable if it is new, involves an inventive Muhammad Hanif. This patent describes the
step and is capable of industrial application. process for the preparation of the said
4. Commercializing Patented Technology 28 A patent can remain valid for a limited headlight glass.
period of time, i.e. for 20 years from the date
5. Enforcing Patents 33 of filing of the patent application, provided
the required maintenance fees are paid on
time. A patent is a territorial right limited to
Annexures: the geographical boundary of the relevant
country or region.

A valid patent gives its owner the exclusive An opener for sparkling beverages, conceived by
Annex I: Addresses of Important Offices in Pakistan 35 right to prevent or stop others from making, Argentinian inventors Hugo Olivera, Roberto Cardon
using, offering for sale, selling or importing a and Eduardo Fernandez, has been patented in over
20 countries. The product is commercialized
Annex II: Form P-I 38 product or a process, based on the patented
worldwide by a company established by the
invention, without the owner's prior inventors under the trademark Descorjet.
Annex III: Form P-I A 39 permission.

A patent is a powerful business tool for


companies to gain exclusivity over a new
product or process, develop a strong market
position and earn additional revenues
through licensing. A complex product (such
as a camera, mobile phone, or a car) may
incorporate a number of inventions that are Korean motorcycle helmet manufacturer HJC holds
covered by several patents, which may be 42 patents worldwide for its innovative helmets
owned by different patent holders. and has enjoyed enormous success in export markets
where it sells about 95% of its products. The
company reinvests 10% of its sales in R&D and
In return for the exclusive right provided by attaches great importance to innovative design as
a patent, the applicant is required to disclose a key factor of success in the helmet industry.

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Patents Patents
What is an invention? ·To ensure that technology is company owns or obtains the permission to of infringing the rights of others when
In patent terminology, an invention is developed to meet actual and exploit a valuable patented invention, it may commercializing your products. While a
generally defined as a new and inventive emerging needs of the business and be able to create a market entry barrier for patent by itself does not provide the
solution to a technical problem. It may its clients; competitors in respect of the same "freedom to use", it does prevent others from
relate to the creation of an entirely new inventions. This will help it to become a top patenting the same or similar inventions and
·To prevent technological
device, product, method or process, or may player in the relevant market(s). provides a reasonable indication that the
dependence on other companies’
simply be a new and useful improvement to
technology. · Higher profit or returns on investment. invention that you have patented is new and
a known product or process. Merely finding If your company has invested a significant significantly different from the "state of the
something that already exists in nature In today's economy, managing innovation amount of time and money in R&D, patent art."
generally does not qualify as an invention; within a company requires a good protection of the resulting inventions would · Enhanced ability to obtain grants
an adequate amount of human skill, knowledge of the patent system in order to help in recovering costs and obtaining and/or raise funds at a reasonable rate.
creativity and inventiveness must be ensure that the company draws maximum higher returns on investments. Ownership of patents (or license to use
involved. benefit from its own innovative and · Additional income from licensing or patents owned by others) may enhance your
creative capacity, establishes profitable assigning the patent. As a patent owner you ability to raise capital to take a product to
While most inventions nowadays are the partnerships with other patent holders and may license your rights over the invention to market. In some sectors (e.g.,
result of considerable efforts and long-term avoids making unauthorized use of others in exchange for lump-sum payments biotechnology), it is often necessary to have
investments in Research and Development technology owned by others. Unlike the and/or royalties, in order to generate a strong patent portfolio to attract the
(R&D), many simple and inexpensive past, many innovations nowadays are additional income for the company. Selling investors.
technical improvements, of great market complex and are based on a number of (or assigning) a patent implies transfer of · A powerful tool to take action against
value, have yielded significant income and ownership, whereas licensing implies only imitators and free riders. In order to
profits to their inventors or companies. permission to use the licensed invention effectively enforce the exclusivity provided
under specified conditions. by a patent, it may occasionally be
Why should you consider patenting your
· Access to technology through cross- necessary to litigate, or bring your patents to
The power of innovation inventions?
licensing. If your company is interested in the attention of those who are violating your
Appreciating the distinction between Short product cycles and increasing
technology owned by others you may use patent rights. Owning a patent considerably
"invention" and "innovation" is important. competition put enormous pressure on
your company's own patents to negotiate improves your ability to take successful legal
Invention refers to a technical solution to a enterprises to become innovative and/or action against copiers and imitators of the
cross-licensing agreements, by which your
technical problem. It may be an obtain access to other companies' protected invention.
company and the other party agree to
innovations, so as to become and remain
innovative idea or may be in the form of a authorize each other to use one or more of · Positive image for your enterprise.
working model or prototype. competitive in domestic and export markets.
your respective patents under conditions Business partners, investors, shareholders
The exclusive rights provided by a patent
Innovation refers to the translation of the specified in the agreement. and customers may perceive patent
may be crucial for innovative companies to
invention into a marketable product or · Access to new markets. Licensing of portfolios as a demonstration of the high
prosper in a challenging, risky and dynamic
process. Some of the main reasons why patents (or even pending patent level of expertise, specialization and
business climate. Key reasons for patenting
companies innovate include: applications) to others may provide access technological capacity of your company.
inventions include:
· To improve manufacturing processes to new markets, which are otherwise This may prove useful for raising funds,
in order to save costs and improve · Strong market position and inaccessible. In order to do so, the invention finding business partners and raising your
productivity; competitive advantage. A patent gives its must also be protected in the relevant company's profile and market value. Some
owner the exclusive right to prevent or stop foreign market(s). companies mention or list their patents in
· To introduce new products that meet
customer needs; others from commercially using the · Minimized risks of infringement. advertisements to project an innovative
patented invention. This exclusive right By obtaining patent protection you will be image to the public.
· To remain ahead of the competition
and/or expand market share; reduces uncertainty, risk and competition able to prevent others from patenting the
from free riders and imitators. If your same invention and also reduce the chances

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Patents Patents
please visit www.ipo.gov.pk or to file a patent application is strictly a
www.smeda.org.pk). business decision. It should be based
· Trademarks. Trademark protection primarily on the probability of obtaining
provides exclusive rights over distinctive commercially useful protection for the
signs used to distinguish the products of one invention that is likely to provide significant
company from those of others. (For more benefits from its eventual business use.
information please visit www.ipo.gov.pk or Factors to be taken into account in deciding
Patent No. US2002137433. www.smeda.org.pk). whether or not to file a patent application In 1994, Australian start-up company ITL
An innovative award-winning drill bit used to make · Copyright and related rights. Original include: Corporation filed a utility model application over
holes on glass and ceramics was patented by its first product, a vessel with a unique design
Peruvian Inventor Jose Vidal Martina enabling him
literary and artistic works may be protected · Is there a market for the invention? into which blood collection needles are retracted
to commercialize the product directly as well as earn by copyright and related rights. Copyright
· What are the alternatives to your upon withdrawal from a blood donor. The utility
royalties from the licensing of the invention. protection applies to a wide range of works, model was later converted to a standard patent.
invention, and how do they compare The product, commercialized under the trademark
including computer programs. (For more
with your invention? Donorcare®, became a great success in domestic
What other legal instruments are available information please visit www.ipo.gov.pk or
· Is the invention useful for improving an and foreign markets and obtained prestigious
for protecting your products? www.smeda.org.pk). design awards.
existing product or developing a new
This guide focuses on patents. However, · Layout-design (or topography) of
product? If so, does it fit in with your
depending on the product in question, there integrated circuits. You may be able to
company's business strategy?
may be other intellectual property rights that obtain protection for an original layout
· Are there potential licensees or Patents versus Trade Secrets
are suitable for protecting various features of design (or topography) of an integrated If your invention is likely to fulfill the
investors who will be willing to help to
an innovative product, these include: circuit used in microchips and patentability requirements, your company
take the invention to market?
semiconductor chips. Such protection may
· Trade Secrets. Confidential business · How valuable will the invention be to will face a choice: to keep the invention as
extend also to the final product a trade secret, to patent it or to ensure that
information may benefit from trade secret your business and competitors?
incorporating the layout design. (For more no one else is able to patent it by
protection provided under the Trade Marks information please visit www.ipo.gov.pk or · Is it easy to “reverse engineer” your
Ordinance, 2001, as long as: invention from your product or “design disclosing it (commonly known as
www.smeda.org.pk). defensive publication) thereby assuring its
· It is not generally known to others around” it?
dealing with that type of information; Note: In some countries some types of incremental
· How likely are others, especially place in the "public domain".
inventions or small adaptations to existing products are
· It has commercial value because it is protectable as “Utility Models”. While, “Plant Breeder’s competitors, to invent and patent what In Pakistan, the protection of trade secrets
secret; and Rights” are granted to a breeder of a new plant variety, you have invented? is available in Section 67 of the Trade
which fulfills the requirements of novelty, ·
· Reasonable steps have been taken by Do the expected profits from an Marks Ordinance, 2001, under the head
distinctiveness, uniformity, stability and designated with
its owner to keep it secret (for example, a suitable denomination. However, both these IP rights exclusive position in the market justify of unfair competition. The trade secrets
restricting access to such information do not exist in Pakistan. the costs of patenting? can also be protected by contractual
on a "need to know" basis, and entering If an invention is patentable, is it always · What aspects of the invention can be provisions in agreements with employees,
into confidentiality or non-disclosure wise to apply for patent protection? protected by one or more patents, how consultants, customers, and business
agreements). If an invention is patentable, it does not broad can this coverage be and will this partners and may be enforced under the
provide commercially useful contract law.
· Industrial designs. Exclusive rights necessarily mean that it will result in a
commercially viable technology or product. protection?
over the ornamental or aesthetic features of Advantages of trade secret protection
Therefore, a careful weighing of pros and · Will it be easy to identify violation of
a product may be obtained through the include:
cons and an analysis of possible alternatives the patent rights and are you ready to
protection of industrial designs by · Trade secrets involve no registration
is essential before filing a patent application. invest time and financial resources for
registering the same with the Patent Office costs;
A patent may be expensive and difficult to enforcing your patent(s)?
in accordance with the Registered Designs · Trade secret protection does not
Ordinance, 2000. (For more information obtain, maintain and enforce. To file or not

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Patents Patents
require disclosure or registration with What can be patented? What is patentable subject matter? of a chemical product where the chemical
any authority or office of the An invention must meet several Under the Patents Ordinance, 2000, formula or process of manufacture remains
government and the invention is not requirements to be eligible for patent patentable subject matter is defined the same.
published; protection. These include, in particular, that negatively, i.e., by providing a list of what
the claimed invention: cannot be patented. This list is divided into
·Trade secret protection is not limited Protecting Computer Software
in time; · Consists of patentable subject matter ; two parts. First part contains the subject
· Is new (novelty requirement) ; matter which is not considered an invention In some countries, the mathematical
·Trade secrets have immediate effect. algorithms, which are the basis of
· Involves an inventive step (non- and hence is not patentable. This part
Disadvantages of protecting inventions as obviousness requirement) ; includes the following subject matter: improved functionality of computer
trade secrets: software, may be protected by patents,
· Is useful/capable of industrial (a) A discovery, scientific theory or
· If the secret is embodied in an while in others, they are explicitly
application (utility requirement); and mathematical method;
innovative product, others may be excluded as unpatentable subject matter.
· Is disclosed in a clear and complete (b) A literary, dramatic, musical or artistic
able to "reverse engineer" it, discover manner in the patent application In Pakistan, the Patents Ordinance, 2000,
work or any other creation of purely
the secret and, thereafter, be entitled (disclosure requirement). does not discuss the issue of patentability
aesthetic character whatsoever;
to use it; of the computer programs at all. However,
(c) A scheme, rule or method for performing
· Trade secret protection is effective it is important to note that the Patents
a mental act, playing a game or doing
only against improper acquisition, Ordinance excludes “literary work” from
business;
use or disclosure of the confidential the ambit of patentable inventions. The
(d) The presentation of information; and
information; term “literary work” has not been defined
(e) Substances that exist in nature or if
· If a secret is publicly disclosed, then isolated therefrom. in the Patents Ordinance, but is defined in
anyone who obtains access will be the Copyright Ordinance, 1962 and
free to use it; The second part consists of the subject includes computer programs. This gives
· A trade secret is difficult to enforce, as International application No. PCT/IT2003/000428. matter which even though may qualify as an an impression that computer programs
the level of protection is considerably Utensil for preparing food or beverages invention but patent rights will not be may not be patentable in Pakistan.
in general by means of heated liquids.
weaker than for patents; and granted regarding the same. This includes: However, it is advisable that you consult
· A trade secret may be patented by The best way of understanding these (a) An invention, the prevention of the issue directly with the Patent Office
others who may independently requirements is to study what has been commercial exploitation of which would be prior to filing of a patent for a computer
develop the same invention by patented by others in the technical field of necessary to protect the public order or program and/or discuss the issue with a
legitimate means. your interest. For this, you may consult morality, including to protect human, qualified IP lawyer.
While patents and trade secrets may be patent databases. animal or plant life or health or to avoid In Pakistan the object and source code of
perceived as alternative means of serious prejudice to the environment; computer programs can be protected by
protecting inventions, they are often (b) Plants and animals other than micro- copyright only. To obtain copyright
complementary to each other. This is organisms, and essentially biological protection, registration of your copyright
because patent applicants generally keep processes for the production of plants or is not compulsory. In other words, even
inventions secret until the patent animals other than non-biological and though you have not obtained registration
application is published by the Patent microbiological processes; of the object and source code of your
Office. Moreover, a lot of valuable know- (c) Diagnostic, therapeutic and surgical computer program from the competent
how on how to exploit a patented methods for the treatment of humans or authority, you can still claim protection of
Example: animals;
invention successfully is often kept as a The device which is patented by AZMS Electronic your copyright from a court of law.
trade secret. Communications under Patent No. 38823 controls
(d) A new or subsequent use of a known However, registration of copyright is
electronic rust and corrosion for all types of product or process; and always advisable as, among other things, it
vehicles. (e) A mere change in physical appearance

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Patents Patents
invention and render it unpatentable. It is What is meant by “capable of industrial Patents in the life sciences
works as an evidence to prove that the
important to prevent accidental disclosure application”? In recent years, there has been a significant
work has been created by you. You may
of inventions prior to filing the patent To be patentable, an invention must be rise in the number of patents in the life
apply for registration of copyright by
application. Assistance of a competent capable of being used for an industrial or sciences (particularly in biotechnology)
making an application on the prescribed
patent agent is often crucial for a clear business purpose i.e., it should be capable and significant differences between
form along with the prescribed fee to the
determination of what is included in the of being manufactured or otherwise countries on what can be patented have
Registrar of Copyrights. For your
“state of the art”. industrially used. An invention cannot be a emerged. Almost all countries, including
convenience, address of the Copyright
mere theoretical phenomenon; it must be Pakistan, allow for the patenting of
Office has been given at Annex I.
When is an invention considered to involve useful and provide some practical benefit. inventions involving micro-organisms
Copyright protection is more limited in an inventive step? The term "industrial" should be taken in the and require the deposit of a sample of the
scope than patent protection, as it only An invention is considered to involve an broadest sense as anything distinct from organism at a recognized depositary
covers the expression of an idea and not inventive step (or to be non-obvious) when, purely intellectual or aesthetic activity and institution when the micro-organism is not
the idea itself. Many companies protect prior to filing of the application, taking into may include, for example, agriculture. yet publicly available and cannot be
the object code of computer programs by account the “state of the art”, the invention properly described otherwise. Pakistan
copyright, while the source code is kept as would not have been obvious to a person In some countries, instead of industrial excludes plants and animals other than
a trade secret. skilled in the particular field of technology. applicability, the criterion is utility. The micro-organisms from patentability, and
The non-obviousness requirement is meant utility requirement has become particularly also excludes essentially biological
to ensure that patents are only granted in important for patents on genetic sequences processes for the production of plants or
respect of truly creative and inventive for which a utility may not be known at the animals other than non-biological and
How is an invention judged to be new or achievements, and not to developments that time of filing the application.
novel? microbiological processes. In Pakistan,
a person with ordinary skill in the field could new varieties of plants may only be
An invention is new or novel if it does not easily figure out from what already exists. What is the disclosure requirement?
form part of the “state of the art” (also known protected by the patent system if they fall
According to the Patents Ordinance, a in any of the above categories. However, a
as “Prior Art”). In general, “state of the art” Some examples of what may not qualify as patent application must disclose the
refers to all the relevant technical new law for the protection of new varieties
inventive are: mere change of size; making a invention in a manner sufficiently clear and of plants is under review and is likely to
knowledge available to the public anywhere product portable; the reversal of parts; the complete for the invention to be carried out
in the world prior to the first filing date of the come into force in near future.
change of materials; or the mere substitution by a person skilled in the specific technical
relevant patent application. It includes, by an equivalent part or function. field. For patents involving micro-
among others, patents, patent applications organisms, the law requires that the micro- What rights are granted by patents?
and non-patent literature of all kinds. organism be deposited at a recognized A patent grants its owner the right to
depositary institution. Pakistan recognizes exclude others from commercially using the
In Pakistan, any information disclosed to the the international depositary authorities that invention. The Patents Ordinance grants the
public anywhere in the world in tangible have acquired such status in accordance following rights to the owner of a valid
form, by oral communication, by display or with Article 7 of the Budapest Treaty on the patent:
through public use in any other way, prior to International Recognition of the Deposit of · Where the subject matter of a patent is a
filing an application for patent, constitutes Micro-organisms for the purposes of Patent product, the owner may prevent the
“state of the art”. Thus, in principle, the Procedure done at Budapest in 1977. (A list third parties from the acts of making,
The patent over the antibiotic azythromycin
publication of the invention in a scientific of Croatian company Pliva has earned the of International Depositary Authorities is using, offering for sale, selling, or
journal, its presentation in a conference, its company millions of dollars over the last
a v a i l a b l e a t : importing for these purposes that
use in commerce or its display in a decade. The patent was the basis for a product, without his permission.
successful licensing deal with a large foreign http://www.wipo.int/treaties/en/registration
company's catalogue would all constitute pharmaceutical company. /budapest/index.html). · Where the subject matter of a patent is a
acts that could destroy the novelty of the process, the owner may prevent third

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Patents Patents
parties from the act of using the required (e.g., marketing approval from the company assigning the invention to that Summary checklist
process, and from the acts of using, Federal Government in accordance with the company, in general, the company will have
offering for sale, selling, or importing Drugs Act, 1976). no ownership rights in what is developed, · Should you patent your invention?
for these purposes at least the product even if it paid for the development. Consider advantages of patent protection,
obtained directly by that process, Who is an inventor and who owns the rights · Joint inventors. When more than one look into alternatives (secrecy, copyright
without his permission. over a patent? person contributes in significant ways to the etc.) and make a cost/benefit analysis.
·The owner will also have the right to The person who conceived the invention is conception and realization of an invention, Read more about patents in the following
assign, or transfer by succession, the the inventor, whereas the person (or they must be treated as joint inventors and sections to make sure you take an
patent and to grant license of his patent. company) that files the patent application is mentioned as such in the patent application. informed decision.
·The owner of the patent will also have the applicant, holder or owner of the patent. If the joint inventors are also the applicants, · Is your invention patentable?
the right to institute court proceedings While in some cases the inventor may also the patent will be granted to them jointly. Consider the patentability requirements,
against any person who infringes the be the applicant, the two can also be · Joint owners. Where two or more find out details of what is patentable under
patent by performing, without his different entities; this may happen where the persons are registered as proprietor of a the Patents Ordinance and conduct a state
consent, any of the above referred acts applicant is the company or research patent, then in absence of any specific of the art search (see following section).
or who performs acts which make it institution that employs the inventor. agreement, each of those persons will be · Make sure there is clarity on issues
likely that infringement will occur. However, in such cases names of the owner entitled to an equal undivided share in the relating to rights over the invention,
as well as the inventor will have to be patent and will be entitled to exploit, use, between the company, its employees, and
It is important to note that a patent does not
mentioned in the application form for the exercise and sell the patented invention for any other business partner(s) who may
grant the owner the "freedom to use" or the
registration of patent. The following specific his own benefit without accounting to the have participated either financially or
right to exploit the technology covered by
circumstances merit further analysis: other person or persons. However, in such a technically in developing the invention.
the patent but, only the right to exclude
· Employee inventions. In Pakistan, case none of them will issue a license or
others. For example, if you invent a product
inventions developed in the course of assign a share in the patent without the
which can be used as a part of another
employment are not automatically assigned consent of the other person or persons. In
product which is patented by someone else,
to the employer unless there is a specific cases where they cannot reach to a
then you may not be able to use your
agreement to that effect or the employer unanimous decision, the Controller of
product even though you have obtained
proves that the invention could not have Patents may, upon application made to him
patent for your product. However, since you
been made without the use of employer's in the prescribed manner by any of those
have patented your product no one else will
facilities, equipment and the like necessary persons, give such directions in accordance
be able to use your product without your
for the invention. However, even in such with the application as to the sale or lease of
consent.
cases when an invention is of exceptional the patent or any interest therein, the grant of
While this may seem a subtle distinction, it licenses under the patent, or the exercise of
economic value, the inventor will be
is essential in understanding the patent any right in relation thereto, as he may think
entitled to an equitable remuneration taking
system and how multiple patents interact. In fit.
into account the nature of his duties, his
fact, patents owned by others may overlap,
salary and the benefits derived by the
encompass or complement your own
employer.
patent. You may, therefore, need to obtain a
· Independent contractors. An
license to use other people's inventions in
independent contractor hired by a company
order to commercialize your own patented
to develop a new product or process owns
invention and vice versa.
all rights to the invention, unless specifically
Also, before certain inventions (such as stated otherwise. This means that, unless the
pharmaceutical drugs) can be contractor has a written agreement with the
commercialized, other clearances may be

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How to Get a Patent How to Get a Patent
offices that have made their patent documents, a basis for selective
2 How to Get a Patent databases available online, free-of-charge,
may be found at:
dissemination of information and a basis
for investigating the state of the art in given
www.wipo.int/ipdl/en/resources/links.jsp). fields of technology.
Where should you start? The importance of While access to patent Information in The seventh edition of the IPC consists of 8
Generally the first step is to perform a state searching patent databases countries having online database(s) is sections, which are divided into 120
of the art search. With over 40 million Aside from checking whether an invention considerably simpler thanks to the Internet, classes, 628 subclasses and
patents granted worldwide, and millions of is patentable, timely and effective it is not easy to perform a high-quality patent approximately 69,000 groups. The 8
printed publications, which are potential searching of patent databases may provide search. Patent terminology is often complex sections are:
state of the art against your patent very useful information and intelligence and obscure and professional searching a. Human Necessities;
application, there is a serious risk that some on: requires considerable knowledge and b. P e r f o r m i n g O p e r a t i o n s ;
reference, or combination of references, · The R&D activities of current and expertise. While preliminary searches may Transporting;
may render your invention non-novel or future competitors; be performed through free on-line patent c. Chemistry; Metallurgy;
obvious, and, therefore, unpatentable. · Current trends in a given field of databases, most companies requiring patent d. Textiles; Paper;
A state of the art patentability search can technology; information for making key business e. Fixed Constructions;
prevent you from wasting money on a patent · Technologies for licensing; decisions (e.g., whether to apply for a patent f. Mechanical Engineering; Lighting;
application if the search uncovers state of · Potential suppliers, business or not) should generally rely on the services Heating; Weapons; Blasting;
the art references that are likely to preclude partners, or sources of researchers; of patent professionals and/or use more g. Physics;
the patenting of your invention. A state of · Possible market niches at home and sophisticated commercial databases. h. Electricity.
the art search should extend to all relevant abroad; (Currently, over 100 countries use the IPC
A search for state of the art can be done
non patent literature, including technical · Relevant patents of others to ensure based on keywords, patent classification or to classify their patents:
and scientific journals, textbooks, that your products do not infringe www.wipo.int/classifications/en/ipc/inde
other search criteria. The state of the art
conference proceedings, theses, websites, them (“freedom to operate”); x.html).
uncovered depends on the search strategy
company brochures, trade publications and · Relevant patents that have expired employed, the classification system used,
newspaper articles etc. and technology that has come into How to apply for patent protection?
the technical expertise of the person who
the public domain; and conducts the search, and the patent After a state of the art search has been
Patent information is a unique source of
classified technical information, which · Possible new developments based on database being used. performed and the decision to seek patent
companies may find of great value for their existing technologies. protection has been made, a patent
strategic business planning. Most significant application has to be prepared and
inventions are disclosed to the public for the How and where can you conduct a state of The International Patent Classification submitted to the Patent Office. The
first time only when the patent or patent the art search? Pakistan does not use any class system for application will include a full description of
application is published. Thus, patents and The Patent Office of Pakistan doesn't have patent applications. However, for those of the invention, the patent claims that
published patent applications provide any online database at present through you who may wish to file their patents determine the scope of the patent applied
means of learning about current research which you can search the patent database. abroad, it may be beneficial to get familiar for, drawings and an abstract. (For more on
and innovations often long before the However, you can file a request for patent with the International Patent Classification the structure of a patent application, see the
relevant innovative product appears in the database search on the prescribed system. following pages). There is also an option for
market. Patent searches should be part of the form (P-27) alongwith official fee of Rs.150/-. The International Patent Classification filing a provisional patent application.
essential inputs to any company's R&D The, patents and patent applications (IPC) is a hierarchical classification system The task of preparing a patent application is
effort. published by many patent offices are used to classify and search patent generally performed by a patent attorney or
accessible on-line, making it easier to documents. It also serves as an instrument agent who will represent your interests
conduct state of the art searches. (A list of IP for orderly arrangement of patent during the application process. The basic

14 15
How to Get a Patent How to Get a Patent
overview of the application process is given to an examiner for making a report after seal the patent on the payment of sealing fee and issue the registration certificate
below. detail scrutiny of the application, commonly referred to as the Letter of Patent.
specification, claims and drawing, if any,
to the effect as to whether:
· the invention is new;
· involves an inventive step; and
· whether other requirements of the
Patents Ordinance and rules have
been complied with.

International application No. PCT/DE2003/003510. The aim of the substantive examination is


Steering wheel of a motor vehicle comprising an to ensure that the application satisfies the
integrated airbag module. patentability requirements. The results of
the examination are sent in writing to the
applicant (or his attorney) so as to provide
Processing an application step by step an opportunity to respond to and/or
The procedure for registration of a patent remove any objections raised during the
in Pakistan is as follows: - examination.
1. Filing of application: An application 5. Grant: If the examination process
is filed with the Patent Office on the reaches a positive conclusion, the patent
prescribed form along with the prescribed office accepts the patent application. The
fee. accepting of a patent application means
2. Formal examination: The Patent that the Patent Office has no objection
Office examines the application to ensure concerning the grant of the patent in favor
that it complies with the administrative of the applicant.
requirements or formalities (e.g., that all 6. Publication: Once the patent
relevant documentation is included and application is accepted / granted by the
the application fee has been paid). The Patent Office, the abstract of the patent
Patent Office issues application number application is published in the Official
(official receipt) and advertise the title of Gazette of Pakistan Part-V for the general
the application in the Official Patent public so that if anyone has an objection to
Gazette of Pakistan Part-V as newly filed the grant of the patent, he may file an
patent application. opposition against it.
3. Search: The Patent Office conducts a 7. Opposition: The Patent Office
search to determine the state of the art in provides a period of four months during
the specific field to which the invention which third parties may oppose the grant
relates. The search report is used during of a patent, for example, on the basis that
the substantive examination to compare the claimed invention is not new.
the claimed invention with the state of the 8. Sealing of Patent: If there is no
art. opposition within four months by any
4. Substantive examination: The interested party or any opposition filed has
The boxes in dark blue indicate the likely time frame.
Controller of Patents refers the application been rejected, then the Patent Office will
The boxes in sky blue indicate the different stages of application.

16 17
How to Get a Patent How to Get a Patent
How much does it cost to patent an Patent Office, you must pay Fund (ASF). This institution provides make changes to your invention it will
invention? maintenance or renewal fees, financial assistance to SMEs in the form of generally not be possible to make
The costs vary considerably depending on generally referred to as annuities as the matching grant. If you engage services of a significant changes to the original
factors such as the nature of the invention, its same are paid on an annual basis in consultant for the purposes of development specification of the invention and you
complexity, attorney's fees, the length of the accordance with the amount given in of a product, its marketing, sales etc. or will have to seek leave to amend the
application and objections raised during the the above table, to maintain the validity registration of your Patent, you may avail a application from the Patent Office. The
examination by the patent office. It is of the patent; grant from ASF in the case of agribusiness. routine amendments for rectifying
important to keep in mind and properly ·In case you decide to patent your ASF will reimburse 50% of the costs clerical errors or elaborating the
budget the costs related to the patent invention abroad, you should consider incurred in availing the business description can be made in the
application and maintenance. Generally, also the relevant official filing fees for development services. (More information prescribed manner.
the following costs may be incurred for the the countries in question, the about ASF on www.asf.org.pk). ·Once you have filed your application in
registration of a patent application: translation costs and the costs of using Pakistan, you will in most cases have
When should you file a patent application?
· Costs associated with performing a local patent agents (which is a 12 months to file an application for the
In general, it is preferable to apply for patent
state of the art search, particularly if requirement, in many countries, for same invention in all the countries of
protection as soon as you have all the
you rely on the services of an expert; foreign applicants); interest to your business in order to
information required for drafting the patent
· Official fees that are to be paid to the ·In case of inventions involving micro- enjoy the benefit of the filing date of
application. However, there are a number of
Patent Office. The following official organisms, where the deposit of the your first application. This may be a
factors that help an applicant to decide
fees are required to be paid: micro-organism or biological material problem if the costs of applying in
when is the best time to file a patent
with a recognized depositary various countries and paying the
Fee application. Reasons for ensuring that your
No. Description Rs. institution is necessary, fees for filing, maintenance fees are too high for your
application is filed early include the
storage and viability testing of the company.
1 Filing Fee 2,250 following:
deposited material will have to be paid;
a. For each additional page of 30 · Patents are granted on a first-to-file When deciding on the timing for filing a
specification beyond 40 pages basis. Thus, filing an application early is patent application, it is important to bear in
b. For each additional claim 75 important to ensure that you are the first mind that the application should be filed
beyond 20 claims to file an application on that particular before disclosing the invention. Any
Sealing Fee 2,250 invention so that you do not lose your disclosure before filing the application (e.g.,
2
invention to others. for test-marketing, to investors or other
3 Renewal fee · Applying for patent protection early business partners) should be done only after
From 4th to 8th year (for one year) 3,000 will generally be useful if you are signing a confidentiality or non-disclosure
From 9th to 12th year (for one year) 4,500 seeking financial support or wish to agreement.
From 12th to 16th year (for one year) 6,000 OAPI Patent No. 40893. The Emergency license your invention to
From 16th to 20th year (for one year) 8,000 Autotransfusion Set (EAT-SET), invented and How important is it to keep an invention
commercialize it. confidential prior to filing a patent
patented by Nigerian doctor Oviemo Ovadje,
facilitates the recovery of blood out of the body · You can generally only enforce a patent application?
·If you rely on the services of a patent cavity in patients who suffer from internal once it has been granted. This
agent/attorney to assist you in the bleeding. Such blood is re-infused after filtration.
If you wish to obtain a patent on your
procedure may take a few years. invention, keeping it confidential prior to
application process (e.g., provide the The product is being commercialized by EAT-SET
patentability opinion, draft the patent Industries and First Medical and Sterile Products. filing the application is absolutely
Nevertheless, rushing to file a patent necessary. In many circumstances, public
application, prepare the formal
· Financial Assistance: In order to application as soon as you have an invention disclosure of your invention prior to filing
drawings and correspond with the may also be a problem for the following
support development of SMEs, the the application would destroy the novelty of
patent office), you will incur additional reasons:
Government of Pakistan has established your invention, rendering it unpatentable,
costs; · If you apply too early and subsequently
institution named Agribusiness Support unless it falls in the exception and qualifies
·Once a patent has been granted by the

18 19
How to Get a Patent How to Get a Patent
for a "grace period". which may be used as evidence in case of nature of the specific invention and the
a dispute with another company or Provisional patent applications technical field.
It is, therefore, extremely important for
inventor. · Request
inventors, researchers and companies to Under the Patents Ordinance you also It contains information on the title of the
avoid any disclosure of an invention that have the option of filing a provisional invention, the date of filing, the priority date
might affect its patentability until the patent What is a grace period? patent application. A provisional patent and bibliographic data such as the name and
application has been filed. The Patents Ordinance provides a "grace application under the Patents Ordinance address of the applicant and inventor. The
period" of 12 months if an article is is one which is accompanied by a request is filed on prescribed form.
Example: exhibited at an official or officially provisional specification of your invention · Description
Patent No. 139230 by Dr. Shah Alam Khan recognized international exhibition within rather than a complete specification. The written description of an invention must
et al: A process for the production of high twelve months preceding the date of filing of However, where an application for a describe the invention in sufficient detail so
performance cement based on mineral an application for the grant of patent. It patent is accompanied by a provisional that anyone skilled in the same technical
additives. means that you may disclose your invention specification, a complete specification field can reconstruct and practice the
by displaying it in an official or officially must be filed within twelve months from invention from the description and the
recognized international exhibition and file the date of filing of the application, and if drawings without putting in further
the patent application within the grace the complete specification is not so filed inventive effort. If this is not the case, the
period of 12 months without the invention the application will be deemed to be patent may not be granted or may be
losing patentability and being barred from abandoned. revoked after it is challenged in a court
obtaining a patent. However, as this is not action.
A provisional application provides you
the case in all countries, therefore relying on · Claims
time to prepare the complete specification
the grace period in Pakistan may preclude The claims determine the scope of
when you are forced to file a patent
you from patenting the invention in other protection of a patent. The claims are
application in a rush.
International application No. PCT/IB01/00706. markets of interest where a grace period may absolutely crucial to a patented invention
Improvements in charging mobile phones. not be available. What is the structure of a patent since, if they are badly drafted, even a truly
application? valuable invention could result in a
A patent application has a range of worthless patent that is easy to circumvent
functions: or design around. In patent litigation,
First-to-file versus first-to-invent · It determines the legal scope of the interpreting the claims is generally the first
In Pakistan, like most countries, patents patent; step in determining whether the patent is
are granted to the first person to file a · It describes the nature of the invention, valid and in determining whether the patent
patent application on an invention. A including instructions on how to carry has been infringed. It is strongly advisable to
notable exception is the United States of out the invention; and seek the advice of an expert to draft patent
America where a first-to-invent system · It gives details of the inventor, the applications, particularly the claims.
applies, in which, in case of similar patent patent owner and other legal
applications filed, the patent will be International application No. PCT/EP02/05212.
Broadspectrum 2-amino-benzoxazole information. Examples of claims:
granted to the first inventor who sulfonamide HIV protease inhibitors
Patent applications are similarly structured First two claims of Patent No. US4641349
conceived and reduced the invention to
worldwide and consist of a request, a entitled “Iris Recognition System”:
practice whether or not the patent
description, claims, drawings (if necessary) 1. A method of identification of a person,
application has been filed first. In order to
and an abstract (together these things are comprising: storing image information of
prove inventorship within a first-to-invent
called “Specification”). A patent document at least a portion of the iris and pupil of the
system, it is crucial to have well-kept, duly
may be anywhere between a few pages to person’s eye; illuminating an eye,
signed and dated laboratory notebooks,
hundreds of pages long, depending on the of an unidentified person having an iris
and a pupil; obtaining at least one image of
20 21
How to Get a Patent How to Get a Patent
at least the same portion of the iris and · Abstract entitled to institute any proceedings for Do you need a patent agent to file a patent
pupil of the eye of the unidentified person; The abstract is a brief summary of the infringement unless your patent application application?
and comparing at least the iris portion of invention. When the patent is published by is actually sealed i.e., you are issued the Preparing a patent application and following
the obtained image with the stored image the Patent Office, the abstract is included on registration certificate or letter of patent. it through to the grant stage is a complex
information to identify the unidentified the front page. The abstract is sometimes task. Applying for patent protection means:
How long does patent protection last?
person. improved or drafted by the Patent Examiner · Making a state of the art search in order
The Patents Ordinance provides for a term of
2. The method of claim 1 in which at the Patent Office. to identify any state of the art that
protection of 20 years from the filing date of
illuminating comprises driving the pupil renders your invention unpatentable;
the application, provided the renewal or
of the eye to at least one predetermined How long does it take to obtain patent · Writing the claims and full description
maintenance fees are paid on time and that
size, comparing at least the iris portion of protection? of the invention combining legal and
no request for invalidation or revocation has
the obtained image with stored image The time taken by the Patent Office to grant a technical jargon;
been successful during this period.
information obtained from an eye with its patent may vary with the fields of · Corresponding with the Patent Office
pupil having the same predetermined technology. Generally, a patent application While the above relates to the legal life of a especially during the substantive
size. takes less than two years for its registration. patent, the business or economic life of a examination of the patent application;
patent is over if the technology covered by it · Making the necessary amendments to
· Drawings is outdated, if it cannot be commercialized the application requested by the Patent
The drawings show the technical details of or if the product based on it has not been Office.
the invention in an abstract and visual way. successful in the market. In all such
They help to explain some information, tool circumstances, the patent holder may All these aspects require an in-depth
or result set out in the disclosure. Drawings decide to no longer pay the maintenance or knowledge of patent law and Patent Office
are not always a necessary part of the renewal fees, leaving it to expire earlier than practice. Therefore, even if legal or
application. If the invention is for a process the term of protection of 20 years, and thus, technical assistance is not mandatory it is
or method of doing something, drawings let it fall into the public domain. strongly recommended. It is advisable to
International application No. PCT/FR/2004/000264.
usually are not required. If drawings are rely on a patent agent who has the relevant
Device for controlling the attitude of a satellite
required, they should conform to the by means of gyroscopic acuators. Displaying Patent Obtained legal knowledge and experience as well as
requirements of Rule 11 of The Patents Under the Patents Ordinance, in the technical background in the technical
Rules, 2003, which lays down detailed proceedings for the infringement of a patent, field of the invention. Furthermore, the law
instructions as to their format etc. damages will not be awarded against a requires that foreign applicants give an
Proofreading a granted patent defendant who proves that at the date of the address for service in Pakistan and for this
Once a patent is granted it is advisable to infringement he was not aware, and had no purpose generally, the address of the patent
proofread the patent thoroughly to ensure reasonable ground for supposing, that the agent who is resident in the country is used.
that there are no mistakes or missing patent existed. In order to overcome such a The agents recognized under the Patents
words, particularly in the claims. A defense it is required that the patented Ordinance can be divided into two
clerical error can get corrected by filing a article must contain the word “patent”, categories:
request to the Patent Office on Form P-21. “patented”, or any word or words · Lawyers: Lawyers are not required to
expressing or implying that a patent has get themselves registered as patent
Patent No. DE10230179 for a jack or “Tire release
been obtained for the article, along with the agents but can perform all functions of
device”.The invention provides a novel jack for From what date is your invention
lifting spring-mounted wheels of a vehicle. It uses number of the patent. In some cases, people patent agent except drafting of patent
a support structure (11) that engages with the protected? also display the words, “patent pending” or
Once your application is accepted your will specification.
outer rim (4) of the wheels(1). The jack moves “patent applied for” when the patent
directly the wheels and not the body of the have the same rights as if your patent has · Registered Agents: These agents are
vehicle. Therefore, less length of jack lift is application is pending. required to get themselves registered
sufficient to free the wheels from the ground.
been sealed. However, you will not be
with the Patent Office and must be

22 23
How to Get a Patent Patenting Abroad
qualified in a scientific field or must application. Each divisional application will
have passed a patent specification
drafting course from a recognized
be entitled to the filing date of the first
application.
3 Patenting Abroad
institution. These agents can also draft
The law contains an exception for foreign Why apply for patents abroad? same invention filed by others after the
patent specification.
applicants. Where applications for Patents are territorial rights, which means priority date. It is highly advisable to file
(A list of patent agents is maintained in a protection have been made in one or more that an invention is only protected in the your foreign patent applications within the
Register by the Patent Office and will be Convention countries in respect of two or countries or regions where patent protection priority period.
accessible on its website: www.ipo.gov.pk). more inventions which are cognate or of has been obtained. In other words, if you After the expiration of the priority period
which one is a modification of another, a have not been granted a patent with effect in and until the patent is first published by the
single Convention application may be made a given country, your invention will not be Patent Office you will still have the
in respect of those inventions. protected in that country, enabling anybody possibility to apply for protection for the
else to make, use, import or sell your same invention in other countries, but you
invention in that country. can no longer claim priority of your earlier
Summary checklist Patent protection in foreign countries will application. Once the invention has been
· Is your invention patentable? enable your company to enjoy exclusive disclosed or published, you may be unable
Conduct a state of the art search and rights over the patented invention in those to obtain patent protection in foreign
Patent No. EP1165393. make good use of patent databases. countries. In addition, patenting abroad may countries, due to loss of novelty.
Torben Flanbaum’s patent on a “Pourer for · Filing a patent application. Consider enable your company to license the
simultaneously pouring liquid from a container
and mixing air into the liquid” was licensed to
the importance of using a patent invention to foreign firms, develop Where should you protect your invention?
Menu A/S, a Danish SME, becoming the agent/attorney with expertise in the outsourcing relationships, and access those As protecting an invention in many
company’s best selling product. relevant field of technology, markets in partnership with others. countries is an expensive undertaking,
particularly for drafting the claims. therefore, you should carefully select the
Can you apply for protection of many · Timing of application. Consider countries in which you require protection.
inventions through a single application? reasons for filing early/late and think Some of the key considerations when
Patents Ordinance imposes a condition that of best timing for filing your patent selecting where to patent are:
each patent application must relate to one application.
invention only. This is generally known as · Do not disclose information on the ·Where is the patented product likely to
unity of invention. It is, however, important invention too early in order not to be commercialized?
to note that if a patent has been granted on compromise its patentability. ·Which are the main markets for similar
an application that did not comply with the · Maintenance fees. Remember to pay International application No. PCT/US02/12182. products?
requirement of unity of invention, it will not the maintenance or renewal fees in Apparatus for upgrading a remote control system.
·What are the costs involved in
be invalidated on this ground. time to maintain your patent(s) in patenting in each target market and
force. When should you apply for patent what is my budget?
In case of lack of unity of invention, the
applicant may be required to either restrict protection abroad? ·Where are the main competitors based?
the claims or divide the application The date of your first application for a given ·Where will the product be
(divisional applications). You may, before invention is called the priority date and any manufactured?
the acceptance of the application, divide it subsequent applications in other countries ·How difficult will it be to enforce a
into two or more applications, however, filed by you, in most cases, within 12 patent in a given country?
each divisional application should not go months (i.e. within the priority period) will
beyond the disclosure in the first benefit from the earlier application and will
have priority over other applications for the

24 25
Patenting Abroad Patenting Abroad
Advantages of the
Patent Cooperation Treaty (PCT) protection. The International Search
The PCT provides at least 18 additional Report contains a list of prior art
months on top of the 12 month priority documents from all over the world, which
period, in which applicants can explore have been identified as relevant to the
International application No. PCT/IT98/00133. International application No. PCT/US2001/028473. the commercial potential of their product invention. The Written Opinion of the
The invention of a new process for treating EnviroScrub Technologies Corporation is an in various countries and decide where to
linenized cork, lies behind the success of Italian
International Searching Authority
American SME using the PCT to apply for patent
company Grindi SRL., which has relied on the seek patent protection. Payment of the analyzes the potential patentability in light
protection in a number of foreign markets for its
exclusivity provided by the patent for the technology for removing multiple pollutants from fees and translation costs associated with of the results of the International Search
commercialization of a new textile fabric. combustion and industrial processes. The use of national applications is thus delayed. The Report.
the PCT to apply for protection abroad enabled PCT is widely used by applicants to keep
EnviroScrub to enter into a licensing agreement
their options open for as long as possible. A single PCT application, in one language
How do you apply for patent protection for the global marketing of the technology.
and with one set of fees, has legal effect in
abroad? PCT applicants receive valuable all PCT member countries. This effect
There are two main ways of protecting an information about the potential significantly reduces the initial transaction
invention abroad: patentability of their invention in the form costs of submitting separate applications
· The national route. You may apply to of the PCT International Search Report and
Summary Checklist to each Patent Office. The PCT may also
the national Patent Office of each country of the Written Opinion of the International
· Territorial rights. Remember that be used to file applications under some of
interest, by filing a patent application in the Searching Authority. These documents
patents are territorial rights. the regional patent systems. (Guidance on
required language and paying the required provide PCT applicants with a strong basis
· Priority period. Make use of the how to submit an international application
fees. This path may be very cumbersome on which they can make their decisions
priority period to apply for protection under the PCT can be obtained from
and expensive if the number of countries is about whether and where to pursue patent
abroad but do not miss deadlines that Patent Office and at www.wipo.int/pct).
large.
· The regional route. When a number of may impede you from obtaining
countries are members of a regional patent patent protection abroad.
system, you may apply for protection, with · Where to apply. Consider where you
effect in the territories of all or some of these, will benefit from protection and take Outline of the PCT application process
by filing an application at the relevant into account the costs of protecting in Enter
regional office. The regional Patent Offices various countries. File PCT International national
Months application publication phase
are:
0 12 16 18 22 28 30

·The African Regional Intellectual File local International (optional) (optional)


Property Organization (ARIPO) application search report & File demand for International
written opinion international preliminary
(www.aripo.org); preliminary report on
·The Eurasian Patent Organization examination patentability
(EAPO) (www.eapo.org);
·The European Patent Office (EPO)
(www.epo.org).

26 27
Commercializing Patented Technology Commercializing Patented Technology
addition, assignment of the patent to a start- position to make the product at all or in

4 Commercializing Patented Technology up company may be a pre-condition for


funding, if the patent does not belong to the
sufficient quantity to meet a given market
need, or to cover a given geographical area.
company. As a license agreement requires skillful
How do you commercialize patented competing or substitute products. negotiations and drafting, it is advisable to
In each case, it is an individual decision,
technology? seek the assistance of a licensing practitioner
To take an innovative product to market, it is based on your needs and priorities.
A patent on its own is no guarantee of for negotiating the terms and conditions and
generally helpful to develop a business plan. However, assigning a patent is generally not
commercial success. It is a tool that for drafting the licensing agreement. The
Business plans are effective tools for recommended and patent owners generally
enhances a company's capacity to benefit licensing agreements need to be registered
examining the feasibility of a business idea. prefer to maintain ownership over their
from its inventions. In order to provide a with the Patents Office.
A business plan is essential for approaching inventions and grant licenses.
tangible benefit to a company, a patent an investor to obtain financial resources to Where any person becomes entitled by
Where any person becomes entitled by
needs to be exploited effectively and will take a new patented product to the market. license to a share or interest in a patent he
assignment to a patent or to a share or
generally make money only if the product Including information on your company's shall apply in writing in the prescribed
interest in a patent he shall apply in writing
based on the patent is successful in the patents and patent strategy in the business manner to the Controller for the registration
in the prescribed manner to the Controller
market or boosts the firm's reputation and plan is important, as it is a strong indicator of of his title or interest in the Register. Such an
for the registration of his title or interest in
bargaining power. To take a patented the novelty of your company's products, application can also be made by the
the Register. Such an application can also be
invention to the market, a company has a provides evidence of due diligence and licensor. After being satisfied, the Controller
made by the assignor. After being satisfied,
range of options: reduces the risk of infringement of other will register such a person as having interest
the Controller will register such a person as
· Commercializing the patented companies' patents. in the patent, in the Register along with
proprietor or co-proprietor of the patent or
invention directly; particulars of the relevant document.
Can you sell your patent? having interest in patent in the Register
· Selling the patent to someone else; along with particulars of the relevant
· Licensing the patent to others; Yes, this is called assigning your patent, and What royalty rate should you expect to
it will permanently transfer ownership of the document. receive for your patent?
· Establishing a joint venture or other
strategic alliance with others having patent to another person. Such a decision How do you license your patent to be In licensing deals, the owner of the right is
complementary assets. must be very carefully considered. exploited by others? generally remunerated through lump-sum
By licensing your patent instead of assigning A patent is licensed when the owner of the payments and/or through recurring
How do you take a patented product to the it, you obtain the benefit of royalties for the patent (the licensor) grants permission to royalties, which may be based on sales
market? remainder of the life of the patent. Licensing another (the licensee) to use the patented volume of the licensed product (per unit
The commercial success of a new product in can be a very financially rewarding strategy invention for mutually agreed purposes. In royalty) or on net sales (net sales-based
the market does not only depend on its for that reason. Assignment, on the other such cases, a licensing contract is generally royalty). In many cases, the remuneration for
technical features. As great as an invention hand, means you receive an agreed-upon signed between the two parties, specifying a patent license is a combination of a lump-
may be from a technical point of view, if payment once, with no future royalties, the terms and scope of the agreement. sum payment and royalties. Sometimes,
there is no effective demand for it or if the regardless of how profitable the patent ends shares in the company of the licensee may
Authorizing others to commercialize your
product is not properly marketed it is up being. replace a royalty.
patented invention through a licensing
unlikely to attract consumers. Commercial agreement will enable your business to While industry standards for royalty rates
There may be occasions when an
success, therefore, also depends on a range obtain an additional source of revenue and exist for particular industries and may
assignment is advantageous. If a patent is
of other factors, including the design of the is a common means of exploiting a usefully be consulted, it must be
sold for a lump sum, you get the value
product, the availability of financial company's exclusive rights over an remembered that each licensing agreement
immediately, without having to wait up to
resources, the development of an effective invention. is unique and the royalty rate depends on
20 years to realize that value progressively.
marketing strategy and the price of the the particular and very distinct factors being
You also avoid the risk that the patent may Licensing is particularly useful if the
product in comparison with that of negotiated. Therefore, industry standards
be superseded by another technology. In company that owns the invention is not in a

28 29
Commercializing Patented Technology Commercializing Patented Technology
may provide some useful initial guidance patent owner have the right to use the When is the best time to license your
option pricing methods initially
but should not be relied on completely. patented technology; and invention?
developed for use in pricing stock
·Non-exclusive license: several There is no best time to license your
options.
licensees and the patent owner have invention, as the timing will depend on the
the right to use the patented specificities of the case. However, for an There are factors that are difficult to
technology. independent entrepreneur or inventor, it is quantify that may also impact on the value
often advisable to start the search for of a patent, such as the strength of the
In a single licensing agreement, there may
licensees as early as possible in order to patent claims or the existence of close
be provisions that grant some rights on an
guarantee a revenue stream that will be substitutes.
exclusive basis and others on a sole or non
useful to cover the costs of patenting. There
exclusive basis.
Example: is no need to wait for the patent to be If you are interested in a competitor's
Patent No. 138816 by AZMS Electronic granted. patent, can you obtain permission to use it?
communications: An activating / processing
It may not always be easy or affordable to
apparatus for liquid fuel which saves fuel, reduces More than the right time, it is critical to find
pollution, energizes fuel and conditions fuel. obtain authorization to incorporate
the right partner(s) to generate profits from
technology owned by a competitor into
the commercialization of the patented
your products/processes. However, if your
invention.
competitor is also interested in your
company's patents, then you should think of
Patent valuation cross-licensing. Cross-licensing is very
The patented method for treatment of
wastewater developed by researchers at the
There are many different reasons why it common in industries where a number of
National Autonomous University of Mexico might be beneficial or necessary for a patents covering a wide range of
(UNAM) became the object of a successful company to conduct a patent valuation, complementary inventions are held by two
non-exclusive licensing agreement with IBTech, including accounting purposes, licensing,
a university spin-off company set up to or more competitors. Such competing
A patent application for a heat exchanger filed provide innovative solutions for the treatment mergers or acquisitions, assignment or companies seek to ensure their freedom to
by Indian inventor Dr. Milind Rane, has been the of wastewater. purchase of IP assets or fundraising. While operate by obtaining the right to use patents
object of a license agreement with an SME based there is no single patent valuation method
in Mumbai. As set out in the agreement, the owned by their competitors while providing
inventor obtained a down payment at the time
Should you grant an exclusive or non- that is suitable in all circumstances, the the right to use their own patents to the
of signing the agreement as well as 4.5% exclusive license for your patent? following are the most widely used: competitors.
royalties on net sales. The licensee will also It depends on the product and on your · Income method: Most commonly
bear the patent filing and maintenance costs.
company's business strategy. For example, if used patent valuation method. The
your technology can become a standard that method focuses on the expected Summary Checklist
What is the difference between an is needed by all players in a specific market income stream that the patent holder · Commercialization. Consider the
exclusive and non-exclusive license? to perform their business, a non-exclusive, would get during the lifetime of the different options for commercializing
There are three types of licensing widely-held license would be the most patent. your patented invention and make
agreements depending on the number of advantageous. If your product needs one · Cost method: Establishes the value of sure you have a convincing business
licensees that will be allowed to work the company to invest heavily to commercialize the patent by calculating the cost of plan if you decide to take an
patent: the product (e.g., a pharmaceutical product developing a similar asset either innovative product to market.
· Exclusive license: a single licensee has that requires investments in performing internally or externally. · Licensing. Royalty rates and other
the right to use the patented clinical trials), a potential licensee would · Market method: Based on the value features of licensing agreements are a
technology, which cannot even be not want to face competition from other of comparable transactions made in function of negotiation and it is
used by the patent owner; licensees, and may rightly insist on the market. advisable to seek expert advice when
· Sole license: a single licensee and the obtaining an exclusive license. · Option-based methods: Based on the drafting and negotiating licensing

30 31
Commercializing Patented Technology Enforcing Patents
·
agreements.
Exclusive vs. Non-exclusive.
If the Controller decides to issue a non-
voluntary license he will fix:
(i) the scope and function of the license;
5 Enforcing Patents
Consider the reasons for granting
exclusive/nonexclusive licenses, (ii) the time limit within which the Why should you enforce your patent against them. Independent inventors and
particularly in the light of the maturity licensee must begin to exploit the rights? SMEs may decide to shift this responsibility
of the technology and your patented invention; and If you launch a new or improved product (or a part of it) to an exclusive licensee.
company's business strategy. (iii) the amount of the adequate and it is successful in the market, it is likely
It is advisable to contact a patent lawyer to
·Cross-licensing. See whether you can remuneration to be paid to the owner of that competitors will sooner or later attempt
assist you in taking any steps for enforcing
the patent and the conditions of to make products with technical features
use your patent(s) to access useful your patent, both domestically and/or in any
payment. that are identical, or very similar, to those of
technology owned by others. export markets. A lawyer will also advise
your product. In some cases, competitors
you on the costs and the risks involved and
may have the benefit of economies of scale,
the best strategy.
greater market access, or access to cheaper
Compulsory or Non-voluntary License raw materials, and be able to make a similar What should you do if your patent is being
or identical product at a cheaper price. This used by others without your authorization?
In some cases you may be able to obtain a could put heavy pressure on your business, If you believe that others are infringing your
compulsory or non-voluntary license. This especially if you have invested significantly patent, i.e., using it without your
happens, when someone has got patented in R&D for creating the new or improved authorization, then, as a first step, you need
some invention which can prove a product. to collect information about infringing
parties and their use of the infringing
breakthrough invention in a sector but the The exclusive rights granted by a patent give
product or process. You should accumulate
owner of the patent is either not willing to the patent owner the opportunity to prevent
all available facts to determine the nature
license it or is demanding an unreasonably or stop competitors from making products
and timing of your action. Always engage a
high amount. In such cases, on request, and using processes that infringe on its rights
patent lawyer to assist you in making a
made in the prescribed manner to the and to seek compensation for damages
decision on the infringement of your
Controller after the expiration of a period of suffered. To prove that infringement has
patented invention. In some cases, when
four years from the date of filing of the patent occurred, it must be shown that each and
infringement is detected, companies choose
application or three years from the date of every element of a given claim, or its
to send a letter (commonly known as a
the grant of the patent, whichever period equivalent, is contained in the infringing
("Legal Notice/cease and desist letter")
expires last, the Controller may issue a non- product or process. Enforcing your rights
informing the alleged infringer of a possible
when you believe that your patented
voluntary license to prevent the abuses conflict between your rights and the other
invention is being copied may be crucial to
which might result from the exercise of the company's business activity. This procedure
maintaining your competitive edge, market
rights conferred by the patent, for example, is often effective in the case of non-
share and profitability.
failure to work. intentional infringement since the infringer
Who is responsible for enforcing patent will in many such cases either discontinue
A non-voluntary license will not be issued if rights? such activities or agree to negotiate a
the owner of the patent satisfies the The main responsibility for identifying and licensing agreement.
Controller that circumstances exist which taking action against infringers of a patent
justify the non-exploitation or insufficient If, however, the infringement does not stop
lies with its owner. As a patent owner, you
after your letter or legal notice, or you
exploitation of the patented invention in are responsible for monitoring the use of
choose to take surprise action without
Pakistan. your invention in the marketplace,
alerting the infringer, you may institute a suit
identifying any infringers and deciding
under section 60 of the Patents Ordinance
whether, how and when to take action

32 33
Enforcing Patents Annex I
against the person(s) or company involved easily enforceable internationally. An
in infringement. In a suit for infringement the
Court may grant relief by way of damages,
injunctions restraining infringement or
advantage of mediation is that the parties
retain control of the dispute resolution
process. As such, it can help to preserve
Annex I
accounts. In such a suit the Court may also good business relations with another 1. Intellectual Property Organization of Pakistan (IPO Pakistan) IPO Pakistan
order effective provisional measure(s): enterprise with which your company may Headquarter:
wish to collaborate in the future. The WIPO House No. 23, Street 87, Ataturk Avenue (West), Sector G-6/3, Islamabad
(i) to prevent an infringement, and in
Arbitration and Mediation Center provides Tel: +92-51-9208146 Fax: +92-51-9208157
particular, to prevent the entry into the
services for alternative dispute resolution. Website: www.ipo.gov.pk Email: info@ipo.gov.pk
channels of commerce of goods, including
(More information on arbitration and
imported goods after custom clearance; and
mediation can be found at: IPO-Pakistan's Patent Registry provides the following services to its clients with special
(ii) to preserve relevant evidence in regard to www.arbiter.wipo.int/center/index.html).
the alleged infringement. focus on SMEs:
Ø Advice on Patent filling (detailed procedure of filing of applications for grant of Patents,
These provisional measures can be ordered
different application forms for the purpose, Classification for Goods and Services etc.
even without hearing the defendant
may be downloaded by visiting the IPO website at www.ipo.gov.pk);
especially where any delay is likely to cause
Ø Processing of Patent registrations;
irreparable harm to the owner, or where
there is an imminent risk of evidence being Ø Hearings of the applications;
destroyed. Ø Organising seminars through out the country for providing information regarding the
registration of Patents to the members of the Chambers that mostly comprises small and
As a general rule, if you identify medium enterprises;
infringement, it is highly advisable to seek Patent No. GB2266045. The "Drinking vessel
suitable for use as a trainer cup", commercially Ø Application filing and tracking;
professional legal advice. Ø Searches of Patent database.
known as the Anywayup® cup, was patented
What are your options for settling the in 1992 by inventor/entrepreneur Mandy
Haberman (UK). Following the launch of an
patent infringement out of court? infringing product by a competitor, Mandy
If the dispute is with a company with which Haberman obtained an injunction preventing
there is a signed contract (e.g., a licensing further infringement of the patent and IPO Pakistan Regional Office Patent Office
agreement), then first check whether there is eventually settled the matter out of court.
3rd Floor, Farid Tower, Controller of Patents & Designs
an arbitration or mediation clause in the 19 Temple Road, Lahore. 2nd Floor Kandawala Building,
contract. It is advisable to include a special Summary checklist Tel: +92-42-37224395 M. A. Jinnah Road, Karachi.
provision in contracts for the dispute to be Fax: +92-42-37224396 Tel: +92-21-99215488
· Be vigilant. As far as possible,
referred to arbitration or mediation in order Email: lahore@ipo.gov.pk Fax: +92-21-99215489
to avoid long and expensive litigation. It monitor the competition to detect
infringement. Email: patent@ipo.gov.pk
may be possible to use alternative dispute
· Seek advice. Consult a patent Trademarks Registry
resolution systems, such as arbitration or
attorney before you take any action to Registrar Trade Marks Registry Copyright Office
mediation, even if there is no clause in the
contract, or no contract at all, as long as both enforce your patents, as any move on Plot No. CD-3, Behind KDA Civic Centre, Registrar Central Copyright Office
parties agree to it. your side may have an impact on the Gulshan-e-Iqbal Block- 14, Karachi. Ground Floor, Liaqat Memorial Library
outcome of litigation. Tel: +92-21-99230538 Building, National Stadium Road, Karachi.
Arbitrations are regulated and governed by Fax: +92-21-99231001 Tel: +92-21-99230140
· Alternative dispute resolution.
the Arbitration Act, 1940. Arbitration Email: tmr@ipo.gov.pk Fax: +92-21-99230140
generally has the advantage of being a less Consider ways of settling disputes out
of court and include relevant Email: copyright@ipo.gov.pk
formal and shorter procedure than court
proceedings, and an arbitral award is more arbitration or mediation clauses in
any license agreement.

34 35
Annex I Annex I
2. Small and Medium Enterprises Development Authority (SMEDA) For more information on:
SMEDA Head Office: ·Intellectual property issues from a business perspective
6th Floor, L.D.A Plaza, Egerton Road, Lahore-54000 www.wipo.int/sme
Tel: +92-42-111-111-456 ·Patents in general
Fax: +92-42-36304926 www.wipo.int/patent/en/index.html
Website: www.smeda.org.pk ·On practical aspects relating to the filing of patent applications, see list of websites
of national and regional patent offices available at Annex II or visit
In order to encourage and urge small businesses to effectively use IP system for their www.wipo.int/news/links/ipo
business success, SMEDA is providing the following services to SMEs: ·On the Patent Cooperation Treaty (PCT)
www.wipo.int/pct/en/index.html
a) IP Helpline: ·On the International Patent Classification (IPC)
SMEDA 'IP Helpline' assists SMEs on all forms of IPs including trademarks, patent, copyrights www.wipo.int/classifications/ipc/en
and industrial designs. SMEs may contact our regional legal services officer for solving their ·On arbitration and mediation
queries on IP matters. arbiter.wipo.int/center/index.html
·On on-line patent databases of national and regional patent offices
b) Training Programs: www.wipo.int/ipdl/en/resources/links.jsp
Keeping in view the information needs of SMEs, SMEDA conducts on regular basis IP ·On enforcement of IP rights
awareness programs across Pakistan in collaboration with local chambers of commerce and www.wipo.int/enforcement
industry, IPO Pakistan and Trade Associations. Likewise, IP awareness programs are planned
·On membership of WIPO-administered treaties
especially for small trade bodies in different regions for wider outreach.
www.wipo.int/treaties/en/index.jsp

REGIONAL OFFICES

PUNJAB NWFP
8th Floor, L.D.A Plaza, Egerton Road Ground floor, State Life Building,
Lahore-54000 The Mall, Peshawar
Tel: (042) 111-111-456 Tel: (091) 9213046-47
Fax: (042) 36304926 Fax: (091) 286908
Email: helpdesk@smeda.org.pk Email: helpdesk-pew@smeda.org.pk

SINDH BALOCHISTAN
5th Floor, Bahria Complex 2, Bungalow No. 15-A,
M.T.Khan Road, Chaman Housing Scheme,
Karachi Airport Road, Quetta.
Tel: (021) 111-111-456 Tel: (081) 2831702/2831623
Fax: (021) 5610572 Fax: (081) 2831922
Email: helpdesk-khi@smeda.org.pk Email: helpdesk-qta@smeda.org.pk

36 37
Annex II Annex III
Annex II Annex III
Form P-1 Form P-1A
Patents Ordinance, 2000 Patents Ordinance, 2000
Application for patent when the true and first inventor is sole or joint applicant Application for patent when the true and first inventor is NOT a party to the application
Section 13(1)Rule 8(1) Section 13(1) Rule 8(1)
(To be accompanied in duplicate by a Provisional Specification Form P-3 or the (To be accompanied in duplicate by a Provisional Specification on Form P-3 or the
complete specification on Form P-3A) Complete Specification on Form P-3A)

I or We ____________________________________________________________________ I (or We) _____________________________________________________ hereby declare:-


hereby declare:- (i) that I am in possession of an invention for_____________________________________;
(i) that I am in possession of an invention for_____________________________________; (ii) that I(or we) (or the said)( ____________________)claim to be the assign of (or the
(ii) that I (or we) (or the said)____claim to be the first and true inventor thereof; legal representative of)________________________ who claim(s) and is ( are) believed to
(iii) that the invention in not in use in Pakistan by any other person; be the true and first inventor(s) thereof;
(iv) that the______________ specification filed with this application is, and any amended (iii) that the invention in not in use in Pakistan by any other person;
specification which may hereafter be filed in this behalf will be, true of the invention to (iv) that the______________________ specification filed with this application is, and any
which this application relates; amended specification which may hereafter be filed in this behalf will be, true of the
(v) that the following are particulars of my application:- invention to which this application relates;
Description: (v) that the facts and matters stated herein are true to the best of my (or our) knowledge,
Claim(s): information and belief;
Abstract: (vi) that the following are particulars of my application:-
Drawing(s):
Address for service in Pakistan: Description:
I (or we) humbly pray that a patent may be granted to me ( or us) for the said invention. Claim(s):
Dated this _____________day of ______________,20______ Abstract:
Signature:___________________ Drawing(s):
Name: _____________________ Address for service in Pakistan:
Designation:_____________________ I (or we) humbly pray that a patent may be granted to me ( or us) for the said invention.
Address:____________________________________________________________________ Dated this ____________day of ___________,20_______
Signature:___________________
Name: _____________________
To Designation:__________________
Controller of Patents Address:_____________________
Patent Office
Karachi. To
Controller of Patents
Patent Office
Karachi.

38 39
Annex III
Form P-1A, Reverse
Patents Ordinance, 2000

Application for patent when the true and first inventor is NOT a
party to the application
( Section 13(1) Rule 8(1)
ENDORESEMENT BY INVENTOR

I (or we) ___________________________________________________________________


Referred to on the reverse of this document as claiming to be the true and first inventor(s)
agree that the said application shall be made with out my (or our) name(s) as (an) applicant(s)
for a patent Dated this _____________ day of_________,20____

Signature______________________

Name________________________

Designation___________________

Address____________________________________________________________________

Names and signature of two witnesses:

1.___________________________________

2.___________________________________

NOTE:
For further information on the other business-oriented content and publications on
intellectual property rights please visit WIPO's SME website at www.wipo.int/sme/en/.
In addition, you may also subscribe to the free electronic monthly newsletter of the SMEs
Division of WIPO, available at www.wipo.int/sme/en/documents/wipo_sme_newsletter.html
Recent activities on IP matters by SMEDA are available at
www.smeda.org/services/Intellectual-Property-for-Bussines-Success.html
40
For more information contact

Small and Medium Enterprises Development Authority (SMEDA)


SMEDA Head Office:
6th Floor, L.D.A Plaza, Egerton Road, Lahore-54000
Tel: +92-42-111-111-456
Fax: +92-42-36304926
E-mail: helpdesk@smeda.org.pk Website: www.smeda.org.pk

Intellectual Property Organization of Pakistan (IPO Pakistan)


IPO Pakistan Headquarter:
House No. 23, Street 87, Ataturk Avenue (West), Sector G-6/3, Islamabad
Tel: +92-51-9208146 Fax: +92-51-9208157
Email: info@ipo.gov.pk Website: www.ipo.gov.pk

World Intellectual Property Organization (WIPO)


34, Chemin des Colombettes
P.O. Box 18
CH-1211 Geneva 20
Switzerland
Telephone: +41 22 338 91 11
Fax: +41 22 733 54 28
E-mail: wipo.mail@wipo.int Website: www.wipo.int

or its New York Coordination Office at:


2, United Nations Plaza or its SMEs Division at:
Suite 2525 34, chemin des Colombettes
New York, N.Y. 10017 P.O. Box 18
United States of America CH-1211 Geneva 20
Telephone: +1 212 963 6813 Switzerland
Fax: +1 212 963 4801 Fax: +41 22 338 87 60
E-mail: wipo@un.org E-mail: sme@wipo.int
Visit the WIPO website at: www.wipo.int Web page: www.wipo.int/sme

Available at SMEDA Head Office and downloadable from


www.smeda.org/services/Intellectual-Property-for-Bussines-Success.html
and the WIPO Electronic Bookshop at www.wipo.int/ebookshop

SMEDA Publication No. IPR-P(09)


November 2009

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