Canadian Lawyer InHouse

MAY/JUNE 2019 10 INHOUSE Intellectual Property By Dan Raymond Therebedragonsahead Canada joins the Patent Law Treaty T he Patent Law Treaty harmonizes and stream- lines procedures before patent offices in mem- ber countries. Although Canada signed the PLT on May 21, 2001, its implementation in Canada was delayed until a series of wide-ranging intel- lectual property reforms were begun in 2014. With public consultations now concluded, Canada is poised to ratify the PLT this fall, at which point vari- ous amendments to the Patent Act and Patent Rules will come into force. For applicants, these changes represent a mixed bag. As intended under the PLT, many of these upcoming changes will simplify procedural requirements at the Canadian Intellectual Property Office. For example: • Filing requirements will be simplified in various ways, making it easier to obtain a timely filing date in Canada; • The filing deadline for priority claims will be extended to 14 months, if the applicant can show that its failure to meet the usual 12-month deadline was unintentional and a request for restoration is made within two months of filing; • It will be possible to correct an "obvious error" in a patent document where something other than what appears in the patent was intended, which should provide greater latitude than the existing system for "clerical errors"; • Supporting documentation will no longer be required for changes in name or ownership, provided the request originates from the patentee; • Excess page fees will no longer apply to sequence listings, which will substantially reduce issue fees for biotech applications; • Allowed applications can be returned to examina - tion on payment of a fee, which avoids the existing (and cumbersome) practice of intentionally aban- doning and reinstating applications to add addition- al claims; and • Applications will no longer go abandoned without the applicant first receiving some form of notice from the Patent Office. However, the upcoming changes are not all positive. Canada has traditionally had a very flexible examination system, and greater harmonization with international standards may create traps for the unwary. ABANDONMENTANDREINSTATEMENT ISNOWMORERISKY Currently, when a deadline is missed, the application is automatically abandoned. The application may then be reinstated as of right, provided that a fee is paid and corrective action is taken within 12 months of the date of abandonment. No intervening rights arise for third parties during abandonment. This existing regime will be entirely replaced under the new act and rules. In most cases, the patent office will now notify applicants that a deadline has been missed before an abandonment will occur. The notice will set a deadline for taking the correc - tive action, failing which the application will become aban- doned. The notice requirement will not apply to situations in which the applicant has already been properly informed of the deadline, such as responding to office actions. Once abandoned, the application must be reinstated within 12 months by paying a fee and addressing the cause of the abandonment. However, if the application was abandoned for failing to pay a maintenance fee or request exam, the applicant must also show that the abandonment occurred in spite of "due care" being tak - en. It is unclear what will qualify as due care and what evidence will be necessary, but any decision regarding due care can be subsequently reviewed by a court. The extra notification prior to abandonment provides a "safety net" of sorts for applicants in certain situations, but it creates uncertainty about the status of applications and patents among third parties. To compensate for this, a third party who in good faith takes an action that would otherwise infringe a patent while the patent or application is abandoned may be insulated from patent infringement proceedings. LATEPCTNATIONALPHASEENTRY WILLREQUIREREASONS In most countries, the deadline to enter national phase is 30 months from the earliest filing date. Currently, Although this will mostly be positive, care must be taken to avoid pitfalls created by the less helpful changes.

• Cover