The Innovation Patents
8 As is the case with standard patents, s 13 of the Act provides that an innovation patent gives a patentee the exclusive rights to exploit an invention (and authorise another person to do so) during the term of such a patent. Pursuant to s 68, the term of an innovation patent is eight years from the date of the patent. As with standard patents, the date of an innovation patent for these purposes is determined by the application of s 65, which states that the date of "a patent" (defined in Sch 1 to mean either a standard patent or an innovation patent) is either the date of filing of the relevant complete specification, or the date determined under the Regulations (if applicable).
9 The Innovation Patents in issue are patents to which the Regulations do apply for the purpose of s 65. Each of the Innovation Patents was the subject of a divisional application made pursuant to s 79B of the Act in respect of a single 'parent patent' application, being Australian Standard Application 2005251826. Britax submits that the relevant regulation to be applied in the circumstances is reg 6.3(7)(c)(i), which prescribes that the date of a patent granted on a divisional application made under s 79B(1) will be "the date of the patent of the first-mentioned application referred to in subs 79B(1) of the Act". This does not seem correct. It was stated at [64] of my reasons for judgment dated 9 May 2012 that the parent patent application was ultimately not granted, but that nonetheless, "from its complete specification for a standard patent, nine innovation patents were filed as divisional applications". I do not understand this point to have been the subject of contention between the parties. Accordingly, insofar as it purports to refer to a patent granted in respect of the parent patent application, I consider that reg 6.3(7)(c)(i) does not apply (as no such patent was ever granted on that application). Instead, the more appropriate provision to apply in the circumstances is reg 6.3(7)(c)(ii), which prescribes that the 'date' of a patent granted on a divisional application made under s 79B(1) is "the date that would be the date of the patent if a patent had been granted on that first-mentioned application". No suggestion was made that the parent patent application was itself a divisional application (which might enliven reg 6.3(7)(c)(iii)), so I do not consider that possibility further in these reasons.
10 According to Britax, the complete parent patent application from which the divisional Innovation Patents were derived was filed on 9 June 2005. I understand - and it has not been the subject of dispute between the parties - that a complete specification for the purpose of s 65(b) of the Act was also filed on this date (as is required by s 29(4) of the Act). If a patent had been granted on the parent patent application, the date of this patent would be determined in accordance with s 65. No submissions have been made that the Regulations would apply to this patent for the purpose of determining its date. Therefore, pursuant to s 65, the date of the parent patent had it been granted would have been 9 June 2005, being the date of filing of the relevant complete specification. Accordingly, reg 6.3(7)(c)(ii) provides that each of the Innovation Patents has a common date of 9 June 2005 for the purpose of s 65, and a common eight-year term commencing on 9 June 2005 for the purpose of s 68.
11 In any event, if I am wrong about the precise provision of reg 6.3(7)(c) to be applied in the circumstances, I note that each alternative (namely, regs 6.3(7)(c)(i) and (ii)) produces the same outcome in terms of the date to be attributed to each of the Innovation Patents (namely, 9 June 2005) for the purpose of s 65.
12 Notwithstanding the foregoing conclusion, it is here that the analysis of the relevant date for determining infringement of the Innovation Patents departs in an important respect from the analysis conducted in respect of the Standard Patent. Section 57 is expressed to apply only in relation to standard patents. The Act does not contain an equivalent provision to s 57 for innovation patents. Infa submits that this means that the patentees of innovation patents do not have any right to obtain relief for acts occurring prior to the grant of an innovation patent. I do not accept this submission.
13 The absence of an analogous provision in the Act to s 57 for innovation patents simply reflects the reality of the operation of the innovation patent system. As noted in my reasons for judgment on construction at [25] to [26], the innovation patent system was introduced in 2001, when it replaced the previous petty patent system. It was intended that innovation patents would provide a relatively "inexpensive, quick and easy" way to protect inventions of a lower inventive standard than standard patents, or those with a short commercial life: see Commonwealth, Parliamentary Debates, House of Representatives, 29 June 2000, at 18,583 (per Warren Entsch). A major feature of this new system was the grant of such patents without first undergoing time-consuming and costly substantive examination.
14 Accordingly, in practice there may be little or no difference between the time of filing an application for an innovation patent, publication of a complete specification and the grant of such a patent. Indeed, under s 62(2) of the Act, publication of an innovation patent request and complete specification typically follows the grant of such a patent. These two events - publication of a complete specification and grant of an innovation patent - may therefore occur at or around the same time. Recourse to the Revised Explanatory Memorandum to the Patents Amendment (Innovation Patents) Bill 2000 (Cth) (the Bill) indicates that for this reason, the legislature deliberately decided not to have an analogous provision to s 57 in the Act for innovation patents, as there is no practical need. Previously, a comparable provision to s 57(1) had existed in relation to petty patents (set out in now-repealed s 57(2)). The Revised Explanatory Memorandum to the Bill relevantly provides:
Item 28 - Subsection 57(2)
45. This item repeals subsection 57(2) of the Patents Act consequential to the repeal of the petty patent system. The subsection deals with the publication of petty patents prior to grant. This provision will not apply to innovation patents because innovation patents will only be published after grant.
15 Notwithstanding this fact, Infa submits that, in any event, the relevant date for assessing infringement of the Innovation Patents is not the date of the parent patent application, but the date of certification of each innovation patent. To this end, Infa purports to rely on s 120(1A) of the Act, which provides that "[i]nfringement proceedings in respect of an innovation patent cannot be started unless the patent has been certified".
16 I accept Infa's submissions that by virtue of the operation of s 120(1A), certification is a prerequisite for commencement of infringement proceedings in respect of innovation patents. However, I do not accept that as a result, a patentee's rights in respect of an innovation patent (whether divisional or otherwise) also date from the time of certification. Such an interpretation of s 120(1A) is not consistent with the fact that s 13 confers on a patentee the rights to exploit an invention during the term of a patent, which is defined for both standard and innovation patents by reference to the "date of the patent" (and which in turn is determined in accordance with s 65). When a patentee may enforce their rights, and at what time those rights first arise, are different questions.
17 Infa submits that this approach is incorrect, and that s 13 must be construed as being subject to and operating consistently with the express provisions of ss 57 and 120(1A) of the Act, such that it is these sections - not s 13 - that govern the time at which liability for infringement arises in respect of standard and innovation patents. However, I do not think that the certification requirement imposed by s 120(1A) was intended to mark the date from which rights in respect of innovation patents accrue. Rather, the requirement that innovation patents must be certified prior to commencement of infringement proceedings (among other things) serves to ensure that certain policy aims of the innovation patent system are met. These aims include the need to facilitate the quick and convenient grant of patents that are not subject to extensive review prior to grant, whilst at the same time ensuring that proceedings are only commenced in relation to meritorious innovation patents that meet the criteria set out in Ch 9A of the Act. This position is reflected in those parts of the Revised Explanatory Memorandum to the Bill that were quoted by Infa in its submissions:
Items 59 and 60 - Subsection 120(1) and after subsection 120(1)
101. These items amend section 120 of the Patents Act to establish that a patentee or an exclusive licensee cannot commence infringement proceedings in respect of an innovation patent unless the patent has been certified.
102. These are the first of a number of items that specify that processes such as infringement proceedings, applications for non-infringement declarations, applications for revocation in response to counter-claims against infringement and applications for compulsory licenses in relation to innovation patents all require that the patent has been examined and certified. This ensures that these proceedings are only carried out in relation to patents that have met the criteria laid out in section 101B and are certified according to section 101E.
18 Further, the Outline to the Revised Explanatory Memorandum to the Bill states:
[i]nnovation patents will not be available for plants or animals or biological processes for the generation of plants and animals. An innovation patent will be granted after a formalities check and will provide the patent owner with a right that is quick and cheap to obtain, is relatively simple, and lasts for a sufficient time to encourage investment in developing and marketing the invention. Substantive examination, that is the time consuming and costly process in which the invention is assessed against statutory criteria, will only occur if directed by the Commissioner of Patents or requested by the patent owner or a third party. If the patent meets the requirements of examination it will be certified and if not it will be revoked. To reduce the scope for unsubstantiated threats, an innovation patent owner can only enforce their rights if their patent has been certified.
19 Infa contends - without citing any specific authorities - that such a result would "give to divisional applications (for both standard patents and for innovation patents), and to innovation patents that are not divisional applications, more extensive rights than their respective parent applications and then [sic] other standard applications".
20 Infa further asserts that this is inconsistent with the purpose or object "underlying the Act in its treatment of divisional applications as according no greater rights than the parent applications from which they divided", and "in the introduction and implementation of the innovation patent system, as a simpler and shorter form of protection for 'lower level inventions'". Cited in purported support of this latter proposition by Infa is the decision of the Full Court of the Federal Court of Australia in Dura-Post (Australia) Pty Ltd v Delnorth Pty Ltd (2009) 177 FCR 239 at [5]-[10].
21 These submissions are not consistent with the express provisions of the Act and Regulations governing patent dates that are the subject of these reasons (and nor, it must be said, do they seem to find specific support in the cited paragraphs of Dura-Post 177 FCR 239). The Act and the Regulations together expressly provide for divisional patents (whether innovation or otherwise) to share the 'date' of their parent patent or parent patent application. I do not consider that this necessarily affords the divisional Innovation Patents in this proceeding "greater rights" than those of their parent patent application. Indeed, to some extent it may be said that the opposite is true for these divisional Innovation Patents: the fixed eight-year term of these patents started to run from an earlier date (namely, the date of the parent patent application) than might otherwise be the case for non-divisional innovation patents, and under the Act, there is no provision for obtaining an extension of the term of innovation patents. For all of these reasons, I decline to adopt the position advocated by Infa regarding the interpretation of s 120(1A) of the Act.
22 Accordingly, I find that the relevant date for determining infringement of the nine divisional Innovation Patents is 9 June 2005, being the date on which the complete specification of the parent patent application was filed.