2018–2019 Annual Report Helping make Canada a global centre of innovation

From: Canadian Intellectual Property Office

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Message from the CEO

**Johanne Bélisle**
Commissioner of Patents, Registrar of Trademarks and Chief Executive Officer

This was a pivotal year for the Canadian Intellectual Property Office (CIPO). On April 26, 2018 (World Intellectual Property Day), the Government of Canada launched its first-ever national Intellectual Property Strategy. The strategy provides an investment of $85.3 million over 5 years to increase knowledge and awareness of intellectual property (IP), facilitate access to tools and advice and amend legislation for a more transparent and predictable IP system in Canada.

CIPO is proud to be a key player in this strategy, notably through its IP awareness and education program. Launched in May 2017, this new program helps Canadian entrepreneurs and innovators recognize the value of IP and its importance to business growth. In the past year, we partnered with numerous organizations to provide new programs, seminars and tools that equip innovators and businesses with the IP knowledge they need to succeed.

We also made significant progress in Canada's implementation of 5 international IP treaties, which will provide Canadians with a faster, simpler and more cost-effective way to protect their IP in multiple countries and help attract foreign investment in Canada. On November 5, 2018, Canada officially acceded to the Hague Agreement Concerning the International Registration of Industrial Designs and significantly modernized its industrial design regime. In June 2019, Canada will implement 3 international trademark treaties (Madrid Protocol, Singapore Treaty and Nice Agreement) and the Patent Law Treaty in October 2019, strengthening Canada's place in a modern, global IP system.

On the international stage, CIPO is an active member of the World Intellectual Property Organization (WIPO) and has increased dialogue and bilateral agreements with IP offices around the globe. These efforts help to strengthen IP regimes worldwide and promote positive outcomes for Canadian businesses expanding abroad.

Granting quality and timely IP rights to our clients around the world is at the heart of our mandate. This year, we established an organization-wide quality management framework and policy, building on our Patent Branch's International Organization for Standardization (ISO) certification. In February 2019, we held the Patent Quality Summit to engage clients and stakeholders in a dialogue on quality so that we can improve our patent practices.

The results of the CIPO 2018 Client Satisfaction Survey gave us valuable benchmark data leading to key service improvement areas. For instance, we are streamlining the IP application process, improving the quality and responsiveness of our examination processes and revamping our website to be more client-centric. We also launched our new Clients First training program to better equip our employees with the knowledge and skills they need to deliver excellent service.

Attracting and retaining top talent remain priorities. In the 2018–2019 fiscal year, we hired a number of new patent and trademark examiners as part of a 3-year recruitment campaign, attracted new talent in key technical areas and implemented a student recruitment strategy that led to the hiring of 81 students.

It is an exciting time for IP in Canada. The national IP Strategy and Canada's accession to the international treaties have set the stage for Canadian businesses and innovators to grow and compete globally and to drive innovation and economic prosperity that will benefit all Canadians. I am very proud of the work we have accomplished over the past year, and I am looking forward to the future as we continue to make Canada a global centre for innovation.

About us

CIPO is a special operating agency of Innovation, Science and Economic Development Canada (ISED) and is responsible for the administration and processing of the greater part of IP in Canada. We have more than 1,000 employees and operate under a revolving fund authority. Our accountabilities are maintained through this annual report to Parliament, an annual private sector financial audit and our client service standards.

Mission

Our mission is to contribute to Canada's innovation and economic success by doing the following:

providing greater certainty in the marketplace through high-quality and timely IP rights
fostering and supporting invention and creativity through knowledge sharing
raising awareness of IP to encourage innovators to better exploit it
helping businesses compete globally through international cooperation and the promotion of Canada's IP interests
administering Canada's IP system and office efficiently and effectively

Vision

Our leadership and expertise in IP support creativity, enhance innovation and contribute to economic success.

Values

As a trusted partner in building an innovative Canadian economy, CIPO does the following:

serves with excellence and efficiency
makes timely and sound decisions on IP rights
respects the perspectives of stakeholders while carrying out its regulatory function

Areas of activity

Patents: A patent is a legal right to prevent others from making, using or selling an invention for up to 20 years in the country or region where the patent is granted. The invention can be any of the following:

a product (e.g. a door lock)
a chemical composition (e.g. a chemical composition used in lubricants for door locks)
a machine (e.g. a machine that makes door locks)
a process (e.g. a method for making door locks)
an improvement on any of these

Industrial designs: An industrial design comprises the visual features of shape, configuration, pattern or ornament, or any combination of these features applied to a finished article. In other words, it is about how something looks. In Canada, an industrial design registration provides exclusive and legally enforceable rights for up to 15 years and protects a product's unique appearance.

Trademarks: A trademark is used to distinguish a person or organization's goods or services from those of others. It can be any of the following:

one or many words
a design
a sound

A registered trademark provides exclusive rights to use the mark for 10 years (a term that is renewable) and protects it under law from misuse by others.

Geographical indications: A geographical indication is an indication used on a product (i.e. wine, spirits, agricultural products and food) that has a specific geographical origin and possesses qualities or a reputation attributable to that origin. The term of protection for a geographical indication is indefinite.

Copyright: A copyright is the exclusive legal right to produce, reproduce, sell, license, publish or perform any of the following, as long as it is an original:

a literary work
an artistic work
a dramatic work
a musical work
a sound recording
a communication signal
a performance

Unlike other IP rights, a copyright subsists in an original work from the moment it is created. Generally, copyright protection lasts for the lifetime of the author, plus 50 years after their death. In Canada, a certificate of registration of copyright is evidence that a copyright exists and that the person registered is the owner.

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2018–2019 at a glance

Patents

39,027 applications (12% increase from 2017–2018)
- Number of applications by sector
  - Chemistry: 13,095 (10% increase)
  - Electrical engineering: 6,279 (11% increase)
  - Instruments: 6,504 (14% increase)
  - Mechanical engineering: 8,278 (15% increase)
  - Other fields: 4,871 (15% increase)
30,163 requests for examinations (8% increase from 2017–2018)
23,093 grants (5% decrease from 2017–2018)
34 decisions rendered by the Patent Appeal Board (21% increase from 2017–2018)

2018–2019 top 10 patent applicants
Patent applicant	Number of patent applications
Qualcomm	316
Halliburton Energy Services	271
General Electric	241
Walmart Apollo	234
Boeing	197
Philip Morris Products	177
BASF	173
Procter & Gamble	152
Nissan Motor	148
NESTEC	141

Country of origin of patent applications

Country of origin of patent applications
Foreign countries	Canada
33,988	5,039

Among the patent applications received from Canada
Patent applications filed under the Patent Cooperation Treaty (PCT)^{Footnote 1}	Patent applications not filed under the PCT
1,569	3,470

Among the patent applications received from foreign countries
Country	Number
United States of America	17,819
Germany	2,252
Japan	1,873
France	1,541
Switzerland	1,386
United Kingdom	1,365
China	1,278
Italy	651
Netherlands	527
Israel	521

CIPO received 2,209 International Searching Authority applications and 187 International Preliminary Examination Authority applications

Drawing of a track assembly for an all-terrain vehicle or other tracked vehicle — Description: This track assembly is used to provide traction to an all-terrain vehicle or other tracked vehicle. The wheel mechanism on the inside of the track is in contact with the inner segments of the endless track and allows the track assembly to change shape if the vehicle comes in contact with obstacles on the ground. In some cases, the wheel mechanism can be a resilient wheel that is elastically deformable, while in other cases, it can be made up of multiple connected wheels.

Patent number: CA2701662
Owner: CAMSO INC.
Date issued: 2018-08-21
Sector: mechanical engineering

Trademarks

63,442 applications (5% increase from 2017–2018)
- 42,546 word marks (5% increase)
- 20,891 design marks (6% increase)
- 9 sound marks (50% increase)
24,917 registrations (5% decrease from 2017–2018)
179 decisions rendered by the Trademarks Opposition Board (12% decrease from 2017–2018)
84 opposition decisions rendered (11% decrease from 2017–2018)
95 section 45 decisions rendered (14% decrease from 2017–2018)

**2018–2019 top 10 trademark applicants**

2018–2019 top 10 trademark applicants
Trademark applicant	Number of trademark applications
Procter & Gamble	244
L'Oréal	198
Home Depot	158
Johnson & Johnson	154
Target Brands	120
Unilever Canada	108
Victoria's Secret	96
Unilever PLC	91
Novartis	90
IGT	86

Country of origin of trademark applications

Country of origin of trademark applications
Canada	Foreign countries
27,314	36,128

Among the trademark applications received from foreign countries
Country	Number
United States of America	19,007
China	2,893
United Kingdom	1,741
Germany	1,629
France	1,493
Switzerland	1,081
Japan	1,046
Italy	837
Australia	715
Republic of Korea	599

Spotlight on Canadian innovation

TrackTik

Description: TrackTik is a security workforce management software that seamlessly connects mobile guard patrols, incident reporting, guard scheduling, payroll, tracking and more.

Owner: TrackTik Software Inc.
Registration number: TMA1002973
Date registered: 2018-08-16
Type: word mark

Industrial designs

6,724 applications (1% increase from 2017–2018)
5,542 registrations (17% increase from 2017–2018)

**2018–2019 top 10 industrial design applicants**

2018–2019 top 10 industrial design applicants
Industrial design applicant	Number of industrial design applications
Delta Faucet	270
Ford Global Technologies	60
Apple	57
Google	56
Paccar	50
Kronoplus	47
Gillette	42
Magic Leap	41
Toyota Jidosha Kabushiki Kaisha	41
AS IP Holdco	41

Country of origin of industrial design applications

Country of origin of industrial design applications
Canada	Foreign countries^{Footnote **}
707	5,432

Among the industrial design applications received from foreign countries
Country	Number
United States of America	3,446
China	231
Japan	224
Germany	214
Switzerland	167
United Kingdom	156
Italy	124
Australia	108
France	102
Hong Kong	92

Picture of an Instant Pot — Description: The Instant Pot^® is a pressure cooker created to solve a cooking challenge that busy people face: how to quickly put a healthy, delicious meal on the table after a long day of work or study.

National application/registration number: 178558
Owner: Double Insight^{Footnote 1}
Date of registration: 2018/10/01

Copyright

9,204 registrations (2% increase from 2017–2018)
- Literary: 3,924 (0.3% decrease)
- Artistic: 1,681 (9% increase)
- Dramatic: 1,373 (5% increase)
- Musical: 817 (5% decrease)
- Combination of literary, artistic, dramatic or musical: 865 (6% increase)
- Sound recording: 485 (0.2% increase)
- Performance: 39 (31% decrease)
- Communication signal: 20 (5% increase)

2018–2019 top 10 copyright applicants
Copyright applicant	Number of copyright applications
Apple	380
Sojag	90
Warner Bros. Entertainment	80
Les Éditions Logitell	74
Netflix Studios	63
Blue J Legal	60
Wang Mars	49
Yang Sukmin	45
Professional Petroleum Data Management Association	43
Sony Pictures Television	41

Country of origin of copyright applications

Country of origin of copyright applications
Canada	Foreign countries
7,975	1,234

Among the copyright applications received from foreign countries
Country	Number
United States of America	973
Switzerland	47
United Kingdom	40
China	34
Bermuda	16
France	14
Russian Federation	11
India	10
Philippines	9
Italy	9

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Introduction

This annual report presents CIPO's achievements for the 2018–2019 fiscal year and describes the key actions taken and results achieved, as we carry out the priorities established in our Five-Year Business Strategy 2017–2022: to advance innovation, to deliver quality and timely IP rights, to build IP awareness and education, to offer a modern service experience and to foster an agile and high-performing organization. These priorities guide our activities and support our goal of delivering a modern, efficient and accessible IP system that is aligned with international best practices.

2017–2022 business strategy

Advance innovation

Through a modern IP framework and active international collaboration

Deliver quality and timely IP rights

Based on modern, efficient and quality-based services and processes

Build IP awareness and education

By equipping innovators in Canada with the IP knowledge they need to succeed

Offer a modern service experience

Through e-enabled services and a strong customer focus

Foster an agile and high-performing organization

By investing in our staff and our workplace and managing our business with probity

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Advancing innovation: Through a modern IP framework and active international collaboration

IP is increasingly important in today's knowledge-based economy. Though intangible, IP assets possess an immense business value and, if protected, can give businesses a competitive advantage over other players in the marketplace. Protected IP also spurs innovation through knowledge sharing. In exchange for protection, inventors and creators must share the details of their innovation, which, in turn, can drive follow-on innovation. CIPO's role in this innovation ecosystem is clear: to make it easier for Canadian innovators to acquire IP protection in Canada and abroad and for non-Canadians to seek IP protection in Canada.

Joining international treaties and harmonizing our IP system with international standards

In 2018–2019, our main priority was to implement international IP treaties and harmonize Canada's IP system with international standards.

On June 28, 2018, CIPO published the new Industrial Design Regulations in the Canada Gazette, Part II, enabling Canada's accession to the Hague Agreement on November 5, 2018. Under the Hague Agreement, Canadian businesses can apply for industrial design protection in up to 69 countries through a single application and pay fees in a single currency and transaction with the WIPO. We also used this opportunity to modernize Canada's industrial design regime, further reducing the regulatory burden on businesses, lowering costs and reducing red tape.

In November 2018, we published the new Trademarks Regulations in the Canada Gazette, Part II. We also updated and created new practice notices for our Trademarks Opposition Board (TMOB). On March 17, 2019, Canada joined 3 international trademark treaties: the Madrid Protocol, the Singapore Treaty and the Nice Agreement. These treaties will come into force on June 17, 2019, and align our domestic trademark regime with international best practices. They will also simplify the administrative process for Canadian businesses seeking to register their trademark abroad. Canadian businesses will now be able to apply for trademark protection in up to 120 countries with a single application filed through the WIPO.

Finally, the Patent Law Treaty will be implemented on October 30, 2019, and will streamline and harmonize our patent administrative procedures with those of other treaty members. In December 2018, we held public consultations on proposed amendments to the Patent Rules by publishing them in the Canada Gazette, Part I. We are now making the necessary adjustments to our systems and procedures in preparation for the transition.

Advancing Canada's interests in a global IP ecosystem

Picture of INTA President Tish Berard and CIPO's Commissioner of Patents, Registrar of Trademarks and Chief Executive Officer, Johanne Bélisle. — On November 28, 2018, INTA President Tish Berard and CIPO's Commissioner of Patents, Registrar of Trademarks and Chief Executive Officer, Johanne Bélisle, signed an agreement on behalf of the INTA and CIPO to strengthen global collaboration and promote a strong framework for trademarks and related IP rights protection.

In September 2018, CIPO led Canada's delegation at the Fifty-Eighth Series of Meetings of the Assemblies of the Member States of WIPO in Geneva. It was an opportunity for us to share developments on Canada's national IP Strategy—announced in April 2018—and our increased support for building IP expertise through learning and education. We also explored topics of mutual interest, such as transformative technologies and service excellence. We convened a meeting with the heads of the European Patent Office and of IP offices from Australia, France, Japan, the United Kingdom and the United States to discuss the impact of transformative technologies on IP systems and administration, as well as areas for cooperation to prepare for their adoption. CIPO collaborated with the Vancouver Group—which brings together the IP offices of Canada, the United Kingdom and Australia—to hold strategic discussions on artificial intelligence and its potential impact on business performance.

To advance international collaboration, we signed memoranda of understanding (MOUs) with the European Patent Office and the Mexican Institute of Industrial Property, and we established a work plan with the China National Intellectual Property Administration. These agreements will provide insights on how to enhance the delivery of IP services and support innovators and entrepreneurs, both in Canada and abroad. In 2018–2019, we also signed an MOU with the International Trademark Association (INTA), a global not‑for-profit association that advocates for the economic and social value of brands. Through this agreement, we will exchange information and education materials, co-develop activities related to the promotion and enforcement of trademark rights and engage the public in seminars on trademark-related topics.

CIPO continued to function as a WIPO-appointed International Searching Authority and International Preliminary Examining Authority, under the Patent Cooperation Treaty (PCT). This designation authorizes CIPO to provide a non-binding opinion on whether an invention is novel, involves an inventive step and has industrial applicability, for patents filed under the PCT. We also extended Patent Prosecution Highway (PPH) agreements with China and Mexico for an additional 3 years. PPH agreements allow IP offices to use work previously done by participating offices, reducing turnaround times and improving patent quality. In all, CIPO partners with 24 IP offices through the Global PPH pilot and has 5 bilateral agreements. In 2018–2019, CIPO received 2,898 valid PPH requests, up 12.5% from last year.

In collaboration with the Hungarian Intellectual Property Office and the Mexican Institute of Industrial Property, CIPO co-organized the INTA's third annual IP Office Workshop in Seattle, in May 2018. Participants exchanged information and best practices related to IP office management and trademarks administration and learned about Canada's upcoming accession to 3 international trademarks treaties in 2019.

Empowering women in developing countries

CIPO has long contributed to WIPO technical cooperation activities by providing IP assistance to developing countries. In 2018–2019, we focused on women's participation in the IP systems. Under the umbrella of the WIPO Committee on Development and Intellectual Property and in association with the United States and Mexico, we co-sponsored a project to better understand the problems faced by women inventors and innovators and identify mechanisms for providing more targeted support to increase the awareness and use of IP by women. As part of this 4-year project, innovation research centres and mentorship programs will be established in beneficiary countries (Mexico, Oman, Uganda and Pakistan) to provide relevant IP services in an all-women environment. The aim is to promote gender equality and the participation of women in the global economy, which is a priority for the Government of Canada.

Canada's commitment to La Francophonie

Since 1997, CIPO has collaborated with the WIPO to host an annual capacity-building workshop for senior officials of IP offices in developing countries. The objective of the workshop is to enhance knowledge, skills and management techniques in the delivery of IP services by sharing Canada's IP expertise. As a commitment to advancing the goals of La Francophonie, CIPO delivered the 2018 workshop in French, inviting 12 IP officials from 11 francophone countries.^{Footnote 2} The Organisation africaine de la propriété intellectuelle (OAPI) also participated in the event to exchange ideas and experiences.

In 2018, CIPO also hosted a delegation from the Moroccan Office of Industrial and Commercial Property to share information and best practices. We also signed an MOU with the OAPI and a work plan with France's Institut national de la propriété industrielle to exchange data and practices with respect to personnel training and IP office administration.

CIPO-WIPO Executive Workshop: participating countries (1997–2018)

Since 1997, CIPO has hosted 21 Executive Workshops and welcomed senior officials from 82 countries. Through this workshop, CIPO provides technical assistance to developing countries and a forum for IP offices to share best practices.

World map highlighting the 82 countries that have participated in CIPO's Executive Workshops.

Patents in Space

Picture of the Canadarm — In partnership with the Canadian Space Agency, CIPO published *Patents in Space*, an IP analytics report on patenting in the Canadian space sector. The report identifies areas where Canadians are most actively innovating and points to where Canada may have a competitive advantage globally. The report also presents a patent search methodology for replication and cross-comparison with other spacefaring nations.

Fostering innovation with data

Accurate IP data and analysis help innovators and policy-makers make informed decisions. In 2018–2019, we published the third edition of our IP Canada Report. This annual publication shows trends in IP usage in Canada and by Canadians globally, as well as research conducted by CIPO and other partner organizations. This year's issue presented an analysis of patenting trends by technology field, the results of an internal study to forecast the use of the Madrid System for trademark filers, highlights from our research on innovation in the mining sector and a summary of a study on IP activities by Canadians.

In March 2019, we co-organized the second annual IP Research Workshop, in partnership with the Centre for International Governance Innovation. This 1-day event attracted 180 participants from think tanks, academia, the private sector and government. This year's focus was on the interplay between artificial intelligence, big data and IP rights.

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Delivering quality and timely IP rights: Based on modern, efficient and quality-based services and processes

Quality and timely IP rights are at the heart of our business. They create certainty and give innovators the confidence to develop and commercialize their ideas and to compete in the marketplace.

CIPO's quality policy

By actively managing quality, CIPO makes every effort to provide a consistent client-centric experience that delivers high-quality IP products and services in an efficient, timely and accessible manner, creating certainty in the marketplace and stimulating innovation.

CIPO's quality objectives

Clients have a consistent, client-centric experience when interacting with all parts of CIPO.
CIPO systematically identifies and analyzes client needs and expectations and adapts to meet them in a timely manner.
IP rights are granted, registered or refused in accordance with treaty, legislative and regulatory requirements.
CIPO provides timely service to clients, as measured by turnaround times.

Optimizing quality through a CIPO-wide approach

In June 2017, CIPO's Patent Branch received ISO 9001:2015 certification. This certification demonstrates our commitment to quality, consistency and continuous improvement. Building on this success, we developed a CIPO quality policy and a quality management framework that is being applied to all our lines of business.

New processes to oversee trademark examination quality have given us greater insight into quality control and data to establish quality assurance measures. This has resulted in the development of tailored refresher training for our trademark examiners and an improvement in the quality of examination. Standardized processes and quality control of incoming correspondence for trademark oppositions have also reduced the risk of errors while improving efficiency.

For industrial designs, the standardization of our searching methods has increased the consistency of search results, and the use of plainer language in our correspondence has improved the quality of our reports. Industrial design examiners were also trained on the latest jurisprudence and on how to structure and write reports.

Let's talk quality!

Stakeholders participating in the Patent Quality Summit in February 2019.

In March 2019, CIPO's Patent Branch was successful in its latest ISO surveillance audit, thereby maintaining its ISO certification and further demonstrating its commitment to continually improving its quality management system.

In February 2019, CIPO hosted a Patent Quality Summit that brought together CIPO staff and stakeholders, such as agents, private inventors and small and medium-sized enterprises (SMEs), to network and discuss ideas on improving patent quality through interactive panel discussions and workshops.

Improving our practices, processes and tools

In 2018–2019, CIPO updated the Industrial Design Office Practice Manual (IDOP) to operationalize the legislative and regulatory changes resulting from the Hague Agreement and modernization initiatives. The IDOP now includes expanded sections on drawing techniques, means of disclaiming, jurisprudence, use of colour, and computer-generated animated designs, as well as updated sections on the Hague System changes.

We also updated our Manual of Patent Office Practice to improve clarity and to include more information about correspondence procedures, the Patent Examination Interview Service, the presentation of sequence listings and the examination of multiple co-pending applications for reissue for the same patent.

As we move away from paper-based processes, CIPO has started to digitize its 1.6 million trademark files. As of March 2019, 10% of trademark files had been converted and added to a digital repository. The digitization process will take place over a 4-year period.