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PREPARATION OF LEGISLATION
The HPO performed its functions and responsibilities concerning the preparation of intellectual property-related legislation and analysis of legal practice with initiative and in a comprehensive and efficient manner. The majority of the tasks concerning the preparation of legislation focussed on codification and supplementary duties related to Hungary’s membership of the European Union, the European Patent Organisation and the World Intellectual Property Organization as well as on the preparation of amendments to legislation affecting the HPO and connected with the restructuring of governmental organisations. Also an important objective was to streamline and refine procedural rules, based on legal practice, in order to satisfy the needs of clients more efficiently.
The HPO prepared the bill on the amendment of certain industrial property laws, which resulted in the adoption of Act XXIV of 2007 amending certain acts on industrial property. The amendment entered into force on 1 May 2007. It re-regulated the legal status of the HPO and laid down rules necessary for the implementation of certain European Community regulations.
A Government decree was adopted containing rules on the electronic filing of patent, utility model and design applications and requests for the renewal of trademarks: Government decree 147/2007. (VI. 26.) Korm. on the detailed rules of the electronic filing of certain industrial property applications entered into force on 1 July 2007.
Government decree 26/2004. (II. 26.) Korm. on the rules necessary for the implementation of European Community regulations concerning the supplementary protection of certain products had to be amended. The amendment Government decree 264/2007. (X. 10.) Korm. entered into force on 25 October 2007.
Taking into account the entry into force of the European Patent Convention as revised in 2000 on 13 December 2007, it has become necessary to prepare the bill on the promulgation of the revised text already ratified and to modify the Patent Act in accordance with the revised text. It has become timely to accede to the Patent Law Treaty that entered into force in 2005 and to make the ensuing legislative amendments affecting first of all the Patent Act. Promulgation of the implementing rules relating to these two international treaties was also put on the agenda. These tasks were fulfilled with the adoption of the following pieces of legislation: Act CXXX of 2007 on the promulgation of the text of the European Patent Convention as revised in 2000; Government decree 319/2007. (XII. 5.) Korm. on the promulgation of the Implementing Regulation to the European Patent Convention as revised in 2000; Act CXXXI of 2007 on the promulgation of the Patent Law Treaty adopted in Geneva on 1 June 2000; Government decree 320/2007. (XII. 5.) Korm. on the promulgation of the Regulations under the Patent Law Treaty; Act CXLII of 2007 amending certain acts on industrial property.
Hungarian Council for the Protection of Intellectual Property
During the six years since its establishment, the Hungarian Council for the Protection of Intellectual Property (hereinafter referred to as the “Council”) has grown into a body playing an orientating role in the intellectual property profession. Its activity has helped the work of central public administration and commanded keen international interest. The activity of the Council is re-regulated by Article 115/F of Act XXXIII of 1995 on the protection of inventions by patents that entered into force on 1 May 2007.
In compliance with its agenda, the Council held four meetings. It discussed and adopted:
the report on its activity in 2006;
the report on the medium-term science, technology and innovation strategy of the Government and the innovation-related priorities of the Operational Programme for Economic Development;
the report on the copyright aspects of the Hungarian strategy of conversion to digital broadcasting;
the report on the introduction of the HPO’s enterprise-friendly industrial property and copyright services;
the proposal on the intellectual property aspects of the new Civil Code;
the report on EU initiatives relating to the development of the European patent system;
the report on the HPO’s strategy on institution strengthening for 2007-2010;
the report on the entry into force of the European Patent Convention as revised in 2000 and on the ensuing tasks and measures.
For the September meeting of the Council, a discussion paper was prepared on the current intellectual property-related issues of the publishing and selling of books. In this context, the HPO and the Council drew up a joint questionnaire entitled “Questionnaire on the status of book publishing and selling in the light of current issues of copyright and intellectual property protection”. This serves as a basis for a survey aiming at the intellectual property aspects of the book industry and covers the most important publishers and sellers. The purpose of the survey is to give an overview of the relations between copyright and other titles of intellectual property protection and publishing and selling of books, to draw up a status report and to initiate the necessary measures.
Preparations were completed for the publication of the third volume of the “White Paper on the Protection of Intellectual Property”, a series launched in 2005 by the HPO and the Council. The volume devoted to the timely issues of intellectual property protection contains the HPO’s medium-term strategy on institution strengthening, publishes a selection of international strategies, deals with the establishment of the National Board Against Counterfeiting and addresses issues of collective rights management.
The quarterly “Newsletter on intellectual property protection”, a joint publication of the HPO and the Council, entered its fourth volume. It sums up news and current information affecting the fields of industrial property and copyright. The aim of the publication is to acquaint in a concise form responsible political and professional decision-makers and players of the economy and culture with current national and international issues of intellectual property protection.
Body of Experts on Industrial Property
The Body of Experts on Industrial Property acted in the matter of 17 requests and commissions. An expert opinion was prepared in 11 cases and a guiding position was issued in a single case. One request was withdrawn, thus 4 cases are pending in which the procedure could not be carried out for lack of the commissioning entity’s procedural act. Mainly economic entities, courts and individuals commissioned the Body. The majority of requests related to the remuneration due to the inventor of service inventions and to other disputes over remuneration.
Body of Experts on Copyright
The Body of Experts on Copyright received 44 requests. The number of requests received in 2006 and continued in 2007 was 3 and the number of expert opinions issued for supplementary requests in previously commenced cases amounted to 5. Analysing the range of entities requesting an expert opinion it turns out that the majority of requests were received again from the courts (21) and from the police (7). It is worth mentioning that the number of private requests increased (14). Two requests were received, one each from a central administrative authority and a budgetary organ. The requests and commissions concerned a wide spectrum of copyright and related rights (e.g. cartographical work, photograph, digital broadcasting, software, architectural design, etc.).
OFFICIAL EXAMINATION AND PROCEDURES IN INDUSTRIAL PROPERTY MATTERS
OFFICIAL ACTIVITY
The estimated number of applications within the framework of the international patent cooperation treaty (PCT) designating Hungary, but not including those which request national procedure, was 156 100. This represents an increase of 4.7% compared with the previous year. In the years following accession to the European Patent Convention on 1 January 2003 Hungary received a continuously increasing number of matters relating to granted European patents. The HPO received 1648 requests for validation of European patents. Since our country’s accession to the European Union on 1 May 2004, the effect of Community protection systems has extended to Hungary as well.
As a result of Hungary’s accession to Community and European protection systems, the total number of industrial property applications filed following the national route, domestically and directly with the HPO from abroad, decreased proportionally as expected. The decrease was due first of all to a decline in the number of international (PCT) applications entering the national phase and to the low number of foreign patent applications filed following the national route, as foreign applications shifted over to the centrally managed European or Community routes which also give valid rights in Hungary.
The number of patent applications filed by domestic applicants has been around 700 for years. The low patent activity is closely related to the insufficient intensity of Hungarian innovation and research and development, with the Hungarian economy’s lack of awareness of the industrial property system and with property relations.
Although the number of applications filed by Hungarian enterprises abroad was extremely low, there was a promising increase in the case of certain titles of protection.
The figures of the industrial property activity of foreign applicants in Hungary indicate the international interest in the Hungarian economy and market and its international competitiveness. There was a significant growth in the number of requests for the validation of European patents in Hungary: 1648 requests for the validation of European patents were received, almost 70% more than in the previous year.
The figures of the industrial property activity of foreign applicants in Hungary indicate the international interest in the Hungarian economy and market and its international competitiveness. There was a significant growth in the number of requests for the validation of European patents in Hungary: 1648 requests for the validation of European patents were received, almost 70% more than in the previous year.
Although as a result of Hungary’s accession to the European and Community protection systems, a decreasing tendency could be noticed in the number of foreign applications filed directly with the Hungarian Patent Office, the amount of protection obtained by foreign applicants and extending to the territory of Hungary increased in total. Hungarian enterprises producing for the domestic market have to respect Community and European protection effective in Hungary as well. Accession to Community and European protection systems has generated new official tasks. The number of requests for the validation of European patents surpassed 1600.
PATENTS
The number of applications within the framework of the international patent cooperation (PCT) designating Hungary further increased, exceeding 156 000. The HPO received 1648 matters claiming validation of European patents in Hungary, of which 13 were translations of patent claims. The number of requests for validation increased by 69% compared with the previous year. The number of requests for validation will probably grow further as Hungary was designated in an increasing amount of applications (19 642) for which the EPO granted a European patent.
The HPO received 791 new patent applications filed following the national route. The number of domestic applications, remaining at the level of the previous year, was 686. Of the domestic applications 68% came from individuals and 32% from enterprises. It is a promising fact that the number of applications filed by enterprises increased by almost 10% compared with the previous year. The number of direct applications made by foreign applicants and the number of international (PCT) applications entering the national phase further decreased in accordance with the forecasts, as these applications shifted over to the European route.
The patent granting procedure was completed in 2547 cases, 11 263 cases are still pending. The number of pending cases is down by 1756 compared with the previous year. Granted patents represented 25% of the total number of processed applications. More than 1800 applications lapsed, mainly as a result of non-payment of the annual fee.
The breakdown of patent applications by technical field shows a decreasing concentration. Of the 791 patent applications 16% filed following the national route were received from the field of pharmacy and 16% from the engineering industry. Of the applications 61% were from five technical fields: pharmacy, machinery, instruments, metal products and other industrial products.
The HPO validated 1579 European patents, in 4 cases the procedure was terminated and 248 validation cases are pending.
Regarding countries of origin of requests for the validation of European patents in Hungary, German applicants ranked first, followed by US and French applicants. The concentration of requests for validation by technical field is very high: 72% of the requests came from 3 technical fields (human necessities, industrial operations, chemistry) and 28% of the total requests originated from one field, chemistry. The highest numbers of requests for validation of European patents in Hungary were filed by BASF AG (44), followed by F. Hoffmann-La Roche AG (23) and AstraZeneca (13).
After a low-point in 2005, the number of valid patents further increased as a result of a growth in the number of validated European patents. It totalled 10 306, 968 more than in the previous year. Valid patents granted following the national route amounted to 7753, and the number of validated patents was 2553. Pharmacy takes the first place with respect to valid patents, 35% of the total were concentrated in this technical field. Next was machinery with a share of 11%.
Of the right-holders 88% were foreigners, among them German (25%) and US (16%) ranked first. Only 1191 valid patents (12% of the total) were owned by Hungarians.
The highest number of valid patents granted following the national route are owned by large foreign companies: Ciba-Geigy AG., Hoechst AG., American Cyanamid Co., AVENTIS PHARMA S.A., Bayer AG., BASF AG., Eli Lilly and Co., Pfizer Inc., Syngenta Participations AG., Novartis AG.
A significant number of valid patents, 41%, are „middle-aged”, 10-15-year old. 26% are younger than 5 years; mainly European patents validated after Hungary’s accession to the EPC on 1 January 2003 belong to this age group.
Thirteen board cases (12 revocation and 1 non-infringement procedures) were completed, 6 new revocation procedures and 4 new non-infringement procedures commenced. The number of cases pending before a board was 14 (8 revocation and 6 non-infringement procedures).
The examiners at the HPO performed 1107 novelty searches. They contributed to industrial property training, provided services and information to clients, carried out methodological and promotion activity.
In order to maintain the expertise of patent examiners and international references, the HPO undertook within the framework of bilateral agreements (e.g. with the Slovenian and Macedonian offices) to perform search and examination in the English language in the region. Within this framework the HPO carried out 374 searches, 755 examinations and 100 so-called second examinations.
As a condition of operating as an office providing quality services and of participating in the international division of patent work, the HPO, since 1 January 2007, has carried out patent searches and substantive examinations within the framework of a quality management system. The established system is run and continuously fine-tuned on the basis of experience. In order to receive feedback about customer needs Customer satisfaction surveys were conducted regularly regarding all types of protection.
Since 2004 a new title of protection, the supplementary protection certificate (SPC) for medicinal and plant protection products has been available to applicants. 9 new applications were received, 10 certificates were granted and there were 10 rejections. The number of pending cases was 58.
PLANT VARIETY PROTECTION
The HPO received 24 new applications for plant variety protection. Protection was granted in 26 cases, 21 cases ended with a lapse, thus 123 cases were pending at the end of the year. After Hungary’s accession to the European Union, the effect of Community plant variety rights extends to Hungary as well. In 2007, the Community Plant Variety Office received altogether 2618 applications for Community plant variety rights; Hungarian applicants filed only 3 such applications.
UTILITY MODELS
In 2007, only 221 utility model applications were filed with the HPO following the national route, 22% down on the previous year. The decrease may be attributed solely to a decline in the activity of domestic applicants, as the main users of this title of protection (86%). 71% of utility model applications filed following the national route came from individuals.
In 2007, altogether 260 utility model procedures were completed: protection was granted in 147 cases, there were 12 rejections and 101 withdrawals. The HPO received 8 new requests for revocation and 2 for a declaration on non-infringement. The procedure was completed in 9 revocation and 3 non-infringement cases. At the end of the year, 9 cases were pending before a board.
COURT REVIEW OF THE DECISIONS OF THE HUNGARIAN PATENT OFFICE
With respect to patents, the number of requests for review decreased compared with the previous year’s figure. Considerably less requests were settled within the HPO’s own competence, while the number of requests submitted to the Metropolitan Court increased. As to utility models, the amount of requests did not change. As regards patents and utility models, the number of orders slightly rose. As regards patent matters, the proportion of orders rejecting the request for review increased.
Table_2007_P.doc - MS Word97 353 kB
II. Matters concerning the generation, reproduction, distribution and use of primary and secondary sources of patent information
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