The new Australian IP Report has revealed a decline in standard patent applications following implementation of Raising the Bar.
Raising the Bar came into full effect in April 2013 and was described as the biggest IP system overhaul in twenty years.
Amongst the changes was updating Australian patentability standards to make them more closely aligned to international standards.
According the new Report, the decline post-Raising the Bar reflected a significant jump in patent applications prior to its implementation.
"In 2014, 1,979 standard patent applications were made by Australian residents. This was a decrease of 35 per cent from the previous year and the proportion of applications made by Australian residents fell to eight per cent," the Report says.
Applications by Australian residents comprise around 1-in-10 of total applications in a given year, with the US remaining by far the largest non-resident filer, with 11,551 in 2014, a decrease of 12 per cent.
"Mirroring Australian trends, US applicants rushed to file prior to the implementation of Raising the Bar, driving US applications to grow 16 per cent in 2013. The next top filers in 2014 were Japan (1,682), Germany (1,457) and the United Kingdom (UK) (1,153).
"Similar to the US, these countries all submitted fewer applications in 2014 than in 2013. Most notable was Germany, filing 15 per cent less. Collectively these top four origins made up 66 per cent of non-resident applications and 61 per cent of all standard patent applications in Australia," the Report says.
The Report confirmed a decline in the demand for innovation patents for a second successive year, dropping a further nine per cent in 2014.
"Resident applications decreased 10 per cent and non-resident applications decreased seven per cent. Applications from the US and Taiwan decreased 30 per cent and 21 per cent respectively, while applications from China increased 17 per cent."
Australian residents continue to file more patents overseas than they do domestically, reflecting the jurisdictional nature of the intellectual property IP rights system and the size of the Australian market.
"The major destinations for these applications were the United States (US) at 41 per cent, the European Patent Office (EPO) (nine per cent) and China (seven per cent)."
According to the Report, "These destinations offer access to the largest markets and often receive more applications than destinations with smaller markets. In 2013 these destinations received 57 per cent of Australian applications filed abroad and 68 per cent of all filings globally."
Parliamentary Secretary for Industry and Science Karen Andrews welcomed the report.
“As global markets continue to expand, the role of IP rights is becoming increasingly important because IP underpins our innovation, trade and investment efforts,” she said.
Mrs Andrews said the Report showed marked variations across the four registered IP streams, with demand for trade marks and plant breeder’s rights growing and demand for patents and designs easing.
“These trends reflect a range of factors, both domestic and international, which are explored throughout the report,” Mrs Andrews said.