PETER CAVE: The Federal Government is reviewing patent law, in an attempt to boost innovation and bring in new technology.
Patent laws are supposed to encourage innovation by guaranteeing inventors the exclusive right to exploit their inventions.
But for many years there's been criticism that patents are handed out far too readily, and that this holds back important research and development.
Now the Government's patents body appears to agree with this diagnosis, and has proposed a series of changes to the law.
Oscar McLaren reports.
OSCAR MCLAREN: Patents give people the exclusive rights to exploit their new inventions for up to 20 years.
They're only supposed to be granted for inventions which are new and useful.
So the casual observer could be forgiven for wondering why the list of current patents includes inventions with names like 'dog coat with a removable collar' and 'toilet bowl ventilation system'.
PHILIP NOONAN: Now one problem with patent law in Australia at the moment is that it's too easy to get a patent.
OSCAR MCLAREN: Phillip Noonan is the director-general of IP Australia, which runs the current patent scheme.
PHILIP NOONAN: You only want to give a monopoly to someone who has been really inventive.
Obvious enhancements to what's already known shouldn't qualify.
The Patents Act has tests for inventiveness that are supposed to exclude things that are not inventive enough.
However in Australia, for various reasons, these tests are set too low.
OSCAR MCLAREN: A further problem is that under current law, researchers in fields where there have already been patents granted may in fact breach those patents, simply by doing research.
PHILIP NOONAN: The problem in that area is that researchers can be reluctant to work in an area where there are existing patents, because they're worried about exactly what those patents cover, and when they experiment with existing products, they might get sued for patent infringement.
And that doesn't help anybody.
OSCAR MCLAREN: Brian Fitzgerald, from the Queensland University of Technology, says the law does leave researchers in a bind.
BRIAN FITZGERALD: Well I suppose there's always a risk factor, and there's a fear that, why should we have to operate in a technically unlawful environment to do research.
You know, research is really important to innovation as well.
OSCAR MCLAREN: Matthew Rimmer from the ANU says that in some cases companies have set out to deliberately amass large numbers of patents in order to gouge money from future research projects.
MATTHEW RIMMER: Over the years they have sent round letters to researchers and scientists noting that, you know, Australia did not have a proper defence of experimental use, and as a result researchers and scientists should think about obtaining licences from them.
OSCAR MCLAREN: IP Australia says it will recommend changes to deal with these problems, but Matthew Rimmer says reform of the patent system is way overdue and should now go much further.
In particular, he wants to see compulsory licenses for some pharmaceuticals, so developing countries can get easier access to important medicines.
MATTHEW RIMMER: Australia has been very tardy about implementing its international obligations in facilitating access to essential medicines.
OSCAR MCLAREN: The number of patents being granted each year is growing steadily, and IP Australia has just opened a new office in Melbourne to deal with the growing workload.
Brian Fitzgerald from the Queensland University of Technology says this enormous growth will also need to be closely managed to stop the entire system from becoming unworkable.
BRIAN FITZGERALD: We're really getting to the stage where, where each year we're probably going to have about a million patent applications worldwide.
What's critical to the innovations system, and what's critical to society, is not only to have the basic rules of how we get patents set right, but we also need to put in place, if you like, information systems and mechanisms to better understand what is patented, and how we can actually navigate through that system.
OSCAR MCLAREN: IP Australia says it will release another four or five discussion papers on other aspects of intellectual property.
Submissions for the current round are due in early May.
PETER CAVE: Oscar McLaren reporting.
