The final report of the Abbott Government's Competition Policy Review has recommended that the Government engage the Productivity Commission to conduct a "priority review" of Australia's intellectual property regime.
"The review should focus on: competition policy issues in intellectual property arising from new developments in technology and markets; and the principles underpinning the inclusion of intellectual property provisions in international trade agreements," it says.
While questioning the extent of intellectual property protection in Australia, the Review's final report cites recent studies that found patents provide "clear incentives for innovation" in certain sectors, including biotechnology, medical instruments and pharmaceuticals.
On the inclusion of intellectual property in trade agreements, the review has recommended that negotiations "be informed by an independent and transparent analysis of the costs and benefits to Australia of any proposed intellectual property provisions."
"Such an analysis should be undertaken and published before negotiations are concluded," it says.
It proposes that the Government establish processes that set clear "mandates to incorporate intellectual property provisions in international trade agreements."
The report cites input from the ACCC and The Australia Institute, which both argued governments should exercise caution "when entering international treaties or agreements that include IP provisions."
It does not explicitly oppose the inclusion of intellectual property provisions in trade agreements, but argues that it "must be based on an understanding of the costs and benefits to Australia."