MALAYSIA
and small and medium-sized enterprises are becoming aware of the importance of securing IP protection for their business assets.
It cannot be denied that once Malaysia accedes to the Madrid Protocol, Malaysian businesses will have the opportunity to expand protection of their trademarks across 80 member countries. T is will facilitate growth and trade for Malaysian businesses. T ere is also the potential for them to develop their export markets.
It must be remembered, however, that the comparative ease of fi ling under the Madrid Protocol does not mean applications will automatically translate into registrations. Aſt er designating countries of choice, a Malaysian applicant must choose whether to continue with the application in each designated country; if they do so, the application reverts to a home application, which is subject to each country’s rules and practices. T is means that before a Malaysian business can use the Madrid Protocol registration system, it must obtain comprehensive advice on its global IP protection policies to ensure successful registrations while enjoying the reduced costs aff orded by the Madrid Protocol.
Patenting activity: PCT effects
Aside from looking forward to the implementation of the Madrid Protocol, it is informative to refl ect on recent patenting activity in Malaysia. Five years have passed since Malaysia joined the international patent system by way of accession to the Patent Cooperation Treaty (PCT) in 2006.
Unsurprisingly for a developing country, the majority of new patent applications in Malaysia are now fi led through the PCT route. An analysis of the cases handled by our offi ce shows that more than 80 percent of new applications originated from PCT fi lings. Overall fi ling statistics for the 2008—2010 period show a healthy growth in the total number of patent applications being fi led. T e fi nal fi gure for 2011 is expected to be similar to that for 2010, which was a total of 6464 applications.
www.worldipreview.com
T e PCT national phase is a preferred route for foreign applicants. T ey normally benefi t from a streamlined examination process when the International Search Report and Written Opinion are favourable. An application that meets these requirements may even proceed to grant within approximately one year of requesting examination.
For Malaysian IP owners looking at global markets, the PCT has been welcome. Exports are particularly important for Malaysia. T e country was ranked 16th out of 139 for the value of its exports in the World Economic Forum’s Global Competitiveness Report 2010—2011. T e number of PCT applications fi led by local applicants, with MyIPO as the receiving offi ce, has increased year-on-year since Malaysia joined the PCT system.
T e fi rst ports of call for many Malaysian companies fi ling patents overseas are neighbouring ASEAN countries, but other countries such as Argentina, Brazil, China, India, Japan, Russia and Mexico are now appearing more regularly on their IP shopping lists.
T ere is a notable shiſt in the proportion of domestic applications that are fi led by Malaysian IP owners when compared to foreign applicants, which represents growth in their patenting activity. T e number of patent applications fi led by local applicants has increased year-on-year since 1997. In 2011, it accounted for approximately 18 percent of all applications. T is compares with an historical average (1986—2011) of 9 percent. Local IP owners also own approximately 14 percent of Malaysian patents granted in 2011. Historically, this fi gure was 4 percent.
T ere is a long way to go before Malaysia achieves parity of local and foreign applicants for patents, as has already been achieved for trademarks. Nevertheless, the statistics do highlight signifi cant progress as Malaysian industry moves up the value chain. Indeed, the most prolifi c PCT applicant from Malaysia is MIMOS Berhad, a research and development institution that is active in areas such as wireless communications, advanced informatics and nanotechnology.
World Intellectual Property Review e-Digest 2012 177
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