The document, titled "Patent Fees" by Lena Kalukuta Mahina and Bruno van

Pottelsberghe de la Potterie, discusses the role and structure of patent fees within
global patent systems, highlighting their impact on both patent applicants and patent
offices. Here is a summarized overview of the key points:

Introduction

● Definition of Patents: Patents are exclusive rights granted for inventions,

providing new ways of doing something or offering technical solutions. These
rights are usually enforced regionally or nationally.
● Global Patent Systems: All patent systems are members of the Paris
Convention (1883), the Patent Cooperation Treaty (1978), and the WTO TRIPs
agreements, ensuring some uniformity in legal standards while maintaining
significant differences in operational design.

Fee Structure

● Importance of Fees: Patent fees influence applicant behavior (demand side)

and are the primary revenue source for patent offices (supply side).
● Historical Context: Fees were traditionally set to balance budgetary
sustainability and accessibility. The debate includes whether high fees reduce
backlogs and encourage self-selection or whether they act as barriers to small
and medium enterprises (SMEs).

Fee Levels Across Countries

● Pre-Grant and Post-Grant Fees: The document divides fees into pre-grant
(application, examination, grant fees) and post-grant (renewal fees)
categories. Different countries have varied fee structures.
● Comparison of Patent Offices: The table and figures within the document
illustrate the fee disparities among national patent offices and the European
Patent Office (EPO). For instance, cumulated pre-grant fees can range from
less than €300 in some countries to over €1,500 in others.

Impact on Applicant Behavior

● Empirical Evidence: Studies show that fees do affect the behavior of

applicants, although the elasticity is below 1, meaning fee increases generate
more revenue without proportionally reducing patent applications.
 ● Cost per Claim per Capita (CCC): The CCC index shows that lower fees
relative to market size, such as in China, correlate with higher demand for
patents.

Unitary Patent in Europe

● Upcoming Changes: The introduction of the Unitary Patent (UP) aims to

simplify the European patent system by allowing a single patent to cover
multiple countries with one renewal fee. This system is expected to be more
cost-effective compared to maintaining individual patents in multiple
countries.
● Cost Comparison: Maintaining a UP will be less expensive than enforcing a
European patent in multiple countries but still more costly than maintaining
patents in some non-European countries.

Conclusion

● Balance of Fees: The debate on high versus low patent fees remains complex,
with both having strengths and weaknesses. High fees can ensure
self-selection and budgetary sustainability but may hinder innovation and
pose barriers to SMEs. Conversely, low fees are more inclusive but may lead
to congestion and higher social costs due to numerous low-quality patents.