The IP Canada Report 2024 is the ninth report in an annual series that presents trends and research in IP usage, both in Canada and by Canadians. The first 4 sections of this report present the trends related to applications for patents, trademarks, industrial designs, and plant breeders' rights.
Message from the CEO
Chief Executive Officer
It is a great privilege to present the IP Canada Report 2024, the ninth installment of an annual series started in 2016 by the Canadian Intellectual Property Office (CIPO). The IP Canada Report provides a summary of intellectual property (IP) activity in Canada and abroad by Canadians, and presents snapshots of our data and research activities. The trends presented in this report on patents, trademarks, industrial designs, and plant breeders' rights, play a crucial role in IP research. The report uses data from CIPO, the Canadian Food Inspection Agency (CFIA), and the World Intellectual Property Organization (WIPO) to present the latest IP trends in Canada and abroad by Canadians.
At CIPO, we acknowledge that improving our internal data and research capabilities and fostering collaboration with the global research and policy community leads to better-informed decisions that ultimately support innovation and economic growth. Such decisions are informed by accurate analysis of IP data. By providing timely and reliable insights, we aim to assist innovators, creators, and businesses in shaping their strategic direction.
Our IP Data & Research Agenda is also critical to inform operations internal to CIPO, to better service businesses and innovators. For example, data and research were central to informing how CIPO approached changing its fee structure in 2024. CIPO conducted a rigorous evidence-based client behaviour analysis recognizing that any increase in costs associated with filing IP will be felt as part of the overall cost of doing business. For an IP office, a modern, regularly reviewed fee structure is crucial to function as a catalyst for innovation, promoting IP as a driver for economic growth.
Our current IP Data & Research Agenda addresses the need to understand the extent of the importance of IP as a financial asset. This year's IP Canada Report includes a summary of research focused on how IP rights are regarded as a significant contributor to value, not only by those owning them, but also by financial institutions. In addition, this year's report spotlights our research showcasing Canada's advantage in the area of quantum technologies.
The IP Canada Report is made possible thanks to the collaborative work of analysts within CIPO and our external stakeholders. I would like to take this opportunity to express my gratitude for their continued support.
Konstantinos Georgaras
Chief Executive Officer
Acknowledgements
For more information on the research included in this report, email cipo-ipresearch-opic-recherchepi@ised-isde.gc.ca.
Authors
- Sean Martineau, Director of Business Improvement Services and Acting Data Steward, Canadian Intellectual Property Office
- Diego Santilli, Chief of Economic Research and Statistical Analysis, Canadian Intellectual Property Office
- Xiang Zhao, Junior Economist, Canadian Intellectual Property Office
- Matthew Kirby, Junior Economist, Canadian Intellectual Property Office
Collaborators
- Marc de Wit, Examiner, Canadian Food Inspection Agency
- Lisa Desjardins, Manager, Business Services Design and Development, Canadian Intellectual Property Office
- Gray Barski, Economist, Canadian Intellectual Property Office
- Mazahir Bhagat, Senior Data Specialist, Canadian Intellectual Property Office
- Avideh Mahdavi, Economic Advisor, Canadian Intellectual Property Office
Permission to reproduce
Except as otherwise specifically noted, the information in this publication may be reproduced, in part or in whole and by any means, without charge or further permission from the Department of Innovation, Science and Economic Development, provided that due diligence is exercised in ensuring the accuracy of the information reproduced; that the Department of Innovation, Science and Economic Development is identified as the source institution; and that the reproduction is not represented as an official version of the information reproduced, or as having been made in affiliation with, or with the endorsement of, the Department of Innovation, Science and Economic Development.
For permission to reproduce the information in this publication for commercial purposes, please fill out the Application for Crown Copyright Clearance or contact the ISED Citizen Services Centre mentioned above.
Ⓒ His Majesty the King in Right of Canada, as represented by the Department of Innovation, Science and Economic Development, 2023
Aussi offert en français sous le titre Rapport sur la PI au Canada 2024.
About us
CIPO is a special operating agency of Innovation, Science and Economic Development Canada (ISED), responsible for the administration of IP in Canada. CIPO contributes to Canada's innovation and economic success by providing greater certainty in the marketplace through the timely delivery of quality IP rights, fostering and supporting invention and creativity through knowledge sharing, raising awareness to encourage innovators to better exploit IP, helping businesses compete globally through international cooperation and the promotion of Canada's IP interests, and administering Canada's IP system and office efficiently and effectively. Footnote 1
Our Five-Year Business Strategy:Footnote 2
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Our CIPO 2023-2028 Business Strategy
- Priority 1
- Timely delivery of quality IP services through operational excellence and a modern client experience
- Priority 2
- Foster innovation and competitiveness through leadership and education
- Priority 3
- Be a high-performing organization that is built for the future
Executive summary
Canada is a major international destination and source of IP rights, with applications for over 134,000 patents, trademarks, and industrial designs received by CIPO from other countries in 2023, and by Canadian residents in foreign jurisdictions in 2022. The IP Canada Report presents trends and research in IP use both in Canada and by Canadians globally, using data from CIPO and WIPO.
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| Flow of IP applications into Canada in 2023 by origin | Flow of IP applications from Canada in 2022 by destination |
|---|---|
| United States of America | United States of America |
| China | China |
| Germany | EPO-EUIPO |
| United Kingdom | United Kingdom |
| France | Australia |
| Switzerland | Japan |
| Japan | Mexico |
| Italy | Republic of Korea |
| Republic of Korea | India |
| Others | Others |
IP activity impacted by economic uncertainty
The main trends in 2023 presented in this report reflect IP activity in Canada amidst the economic uncertainty and high interest rates that were set to manage inflationary pressure. In this economic context, IP activity in Canada was mixed, with patent and trademark applications decreasing by 6% and 3%, respectively, and industrial designs and plant breeders' rights increasing by 2% and 3%, respectively. Long-term historical trends remained positive, with 3% growth in patents, 43% in trademarks, 69% in industrial designs, and 21% in plant breeders' rights.
This report also presents IP activity abroad by Canadians up to 2022. In a global economy still affected by the effects of the COVID-19 pandemic, IP abroad saw declines in filings for patents, trademarks, and industrial designs of 4%, 16%, and 2%, respectively. The 10 year growth rates in Canadian filings abroad as of 2022 were -5% for patents, 84% for trademarks, and 32% for industrial designs.
IP regarded as a significant contributor to value by financial institutions
The market value of many successful companies is enhanced by their intellectual capital. This comprises a blend of efficient operations and the management of unique ideas that are translated into intangible assets such as inventions, creations, and brands. IP is acknowledged as a significant contributor to value, not only by the firms themselves but also by financial institutions. This report includes a Canadian snapshot of research to be included in a forthcoming study published by WIPO, highlighting typical IP use and ownership among Canadian firms, emphasizing the use of patents and trademarks as security in financing operations.
The Government of Canada supports innovation in quantum technologies
Quantum technologies apply atomic and subatomic physics to drive changes in areas such as security, energy, health, and the environment. Canada's National Quantum Strategy commits to funding programs to strengthen the country's quantum advantage. To bolster this initiative, CIPO developed Canadian and global patent landscapes on quantum technologies that establish a baseline upon which the Strategy is anticipated to focus. Overall, the rise in quantum technology patenting suggests a promising future for continued innovation and Canada's competitive edge in this field.
Introduction
The IP Canada Report 2024 is the ninth report in an annual series that presents trends and research in IP usage, both in Canada and by Canadians. The first 4 sections of this report present the trends related to applications for patents, trademarks, industrial designs, and plant breeders' rights. Plant breeders' rights protect new varieties of plants in a similar fashion to patents, and are administered by the CFIA, through its Plant Breeders' Rights Office (PBRO).Footnote 3 CIPO provides the data related to the IP activity in Canada in 2023 on the IP rights that it administers,Footnote 4 while the CFIA is responsible for the data on plant breeders' rights. International data is obtained from WIPO's IP Statistics Data Center.Footnote 5 International data lags domestic data by one year due to the time needed to compile data across all WIPO members; accordingly, data for filings outside of Canada is available only up to 2022 in this report.
Canadians recognize the importance of IP to economic growth and productivity. Canada ranked fifteenth in WIPO's Global Innovation Index 2023, keeping its position with respect to the previous year, and continuing its presence among the top 20 ranked economies since 2010. It also maintained its rank of ninth in innovation inputs, while advancing 3 positions to become twentieth for the innovation output rank.Footnote 6 IP rights like patents, trademarks, and industrial designs are key in contributing to a country's innovation output. Enhancing Canadians' use of IP rights both domestically and abroad is critical for success in a large open economy that is increasingly driven by intangible assets.
The year 2023 was characterized by weak economic growth rates driven by high uncertainty and high interest rates intended to decelerate inflation. While these efforts decreased inflation, it proved to be more persistent than what the initial predictions suggested and remained high. Despite this, Canada experienced an annual growth in gross domestic product (GDP) of 1.1% in 2023, the third highest among the G7 countries.Footnote 7 IP filing trends in Canada have been mixed. Patent filings have experienced a 6% decrease in 2023, ending 2 years of growth during the COVID-19 pandemic, and trademarks have decreased by 3%. Conversely, industrial design activity has increased by 2%, reversing the negative growth of 2022, and plant breeders' rights have increased by 3%, continuing the positive growth started in 2021.
A special research section of this report offers a summary of a study conducted at CIPO on IP-backed financing in Canada. Finally, a summary of an IP analytics study examines global and Canadian trends in patent activity related to quantum technologies.
CIPO also administers 4 other forms of IP that are not included in this report: copyrights, integrated circuit topographies, official marks, and geographical indications. A copyright does not need to be registered to be enforceable in Canada.Footnote 8 Therefore, formal data does not fully encompass its usage. Integrated circuit topographies refer to the 3 dimensional configurations of electronic circuits embodied in integrated circuit products or layout designs and are not included due to a lack of readily accessible data on domestic and international activity.Footnote 9 Official marks are protected under the Trademarks Act and include any badge, crest, emblem, or mark adopted and used by any public authority in Canada.Footnote 10 A geographical indication can identify a wine or spirit, or an agricultural product or food of a category set out in the Trademarks Act. CIPO is responsible for processing requests for protection of geographical indications and ensures that they be entered on the list of protected geographical indications maintained by the Registrar.
Patents
Patents grant applicants a time-limited, legally protected, exclusive right to make, use, and sell their inventions. In return, applicants must disclose the full technical details of these inventions, which are then recorded in publicly accessible patent databases. These databases compile a wealth of scientific and technical knowledge available nowhere else. The patent system promotes and facilitates inventive activity, which in turn supports long-term scientific progress and economic growth. In 2023, CIPO received 35,620 patent applications, a 6% year-over-year decrease reflected in both domestic and foreign activity. In 2022, Canadians filed 20,497 patents abroad, a 4% decrease from the previous year.
Patent applications filed in Canada
Figure 2 presents patent filing activity in Canada, both in total and separately for Canadian resident and non-resident applicants. Last year was characterized by a challenging economic situation globally, and CIPO received a total of 35,620 applications in 2023, a 6% drop led by decreases in both resident (10%) and non-resident (6%) filings. Non-resident applicants accounted for 88% of all filings received in 2023, a share that has been very stable over the last decade and underscores the importance of Canada as a destination market for world-leading innovations.
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| Year | Resident | Non-resident | Total |
|---|---|---|---|
| 2014 | 4,198 | 31,283 | 35,481 |
| 2015 | 4,277 | 32,687 | 36,964 |
| 2016 | 4,078 | 30,667 | 34,745 |
| 2017 | 4,053 | 30,969 | 35,022 |
| 2018 | 4,349 | 31,812 | 36,161 |
| 2019 | 4,238 | 32,250 | 36,488 |
| 2020 | 4,452 | 30,113 | 34,565 |
| 2021 | 4,710 | 32,445 | 37,155 |
| 2022 | 4,564 | 33,488 | 38,052 |
| 2023 | 4,097 | 31,523 | 35,620 |
The top 6 countries filing for patents in Canada in 2023 are presented in Figure 3. The top 4 countries remained unchanged from the previous year. There were some changes in the last 2 positions with the United Kingdom falling from fifth to sixth place, and Switzerland in fifth replacing France in sixth. The United States leads with 15,973 patent applications, representing 45% of the total patent activity at CIPO. Canadian residents are second with 4,097 filings and a 12% share. Filings from Germany, China, Switzerland, and the United Kingdom amounted to 1,960, 1,832, 1,467, and 1,438 applications, respectively. Collectively, the top 6 countries are responsible for 75% of all applications in Canada in 2023, similar to the result from the previous year.
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| Patents by country of origin | 2023 | % of total | Variation 2023 |
|---|---|---|---|
| United States of America | 15,973 | 45% | -8% |
| Canada | 4,097 | 12% | -10% |
| Germany | 1,960 | 6% | 4% |
| China | 1,832 | 5% | 3% |
| Switzerland | 1,467 | 4% | 7% |
| United Kingdom | 1,438 | 4% | -10% |
Each patent is granted for protection in a given jurisdiction. Patent applicants seeking protection in multiple jurisdictions can file at each IP office individually; alternatively, the Patent Cooperation Treaty (PCT) offers a simpler means to seek protection simultaneously to multiple jurisdictions through WIPO. Figure 4 breaks down patent applications in Canada by filing route: directly at CIPO or through the PCT system. In 2023, this route channelled 29,221 patent applications, or 82% of the total filed in Canada. The 6,399 direct filings were notably stable with respect to the previous year, decreasing by only 1%, while PCT filings decreased by 8%. Direct filings, on the other hand, have been slowly declining over the past 10 years.
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| Year | Direct | PCT | % PCT (right axis) |
|---|---|---|---|
| 2014 | 8,030 | 27,451 | 77% |
| 2015 | 7,571 | 29,393 | 80% |
| 2016 | 7,724 | 27,021 | 78% |
| 2017 | 7,672 | 27,350 | 78% |
| 2018 | 7,765 | 28,396 | 79% |
| 2019 | 7,911 | 28,577 | 78% |
| 2020 | 6,985 | 27,580 | 80% |
| 2021 | 6,772 | 30,383 | 82% |
| 2022 | 6,448 | 31,604 | 83% |
| 2023 | 6,399 | 29,221 | 82% |
Patent applications filed abroad by Canadians
As demonstrated by Figure 5, patent filing activity abroad by Canadians has been relatively stable with a 3% decrease observed over the 10-year period. Following an 8% decrease in 2020—the year marked by the onset of the COVID-19 pandemic—and a remarkable 12% recovery in 2021, Canadians filed for 20,497 patent applications abroad, representing a 4% year-over-year decrease.
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| Year | Volume | Growth (right axis) |
|---|---|---|
| 2013 | 21,050 | -2% |
| 2014 | 19,843 | -6% |
| 2015 | 19,926 | 0% |
| 2016 | 19,927 | 0% |
| 2017 | 19,458 | -2% |
| 2018 | 19,683 | 1% |
| 2019 | 20,603 | 5% |
| 2020 | 19,004 | -8% |
| 2021 | 21,271 | 12% |
| 2022 | 20,497 | -4% |
The top 5 international destinations for Canadian applicants in 2022 are presented in Figure 6. These rankings are identical to those of 2021 and the levels are relatively stable. The United States, the European Patent Office (EPO), China, and Japan received 12,184, 2,004, 1,084, and 773 Canadian applications, representing annual decreases of 3%, 4%, 12%, and 6%, respectively. The ranking is completed by Australia, the only destination that experienced an annual increase (5%) in patent applications from Canadians. Combined, these 5 destinations received 82% of patent applications abroad by Canadians in 2022.
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| Top-five destinations | 2022 | % of total | Variation 2022 |
|---|---|---|---|
| United States of America | 12,184 | 59% | -3% |
| European Patent Office | 2,004 | 10% | -4% |
| China | 1,084 | 5% | -12% |
| Japan | 773 | 4% | -6% |
| Australia | 740 | 4% | 5% |
Canadian applicants filing abroad also leverage the PCT system. Figure 7 presents international patent activity by Canadians, by filing route. While the 8% decrease in total international filings in 2020 was entirely attributable to the 13% decrease in direct applications, and the 12% rebound in 2021 was mostly attributable to a 24% increase in PCT applications, the 6% drop in 2022 described earlier was mainly caused by a 6% decrease in PCT activity. This annual decrease puts an end to an uninterrupted growth in the proportion of PCT filings over the total observed since 2009.
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| Year | Direct | PCT | % PCT (right axis) |
|---|---|---|---|
| 2013 | 13,708 | 7,342 | 35% |
| 2014 | 12,460 | 7,383 | 37% |
| 2015 | 12,427 | 7,499 | 38% |
| 2016 | 12,439 | 7,488 | 38% |
| 2017 | 12,130 | 7,328 | 38% |
| 2018 | 12,173 | 7,510 | 38% |
| 2019 | 12,712 | 7,891 | 38% |
| 2020 | 11,108 | 7,896 | 42% |
| 2021 | 11,485 | 9,786 | 46% |
| 2022 | 11,339 | 9,158 | 45% |
Conclusion
In 2023, CIPO received 35,620 patent applications, a 6% year-over-year drop, mostly resulting from decreases in applications from Canada and the United States, and applicants using the PCT system. The long-term trend shows a 3% growth for the 10-year period from 2013 to 2023. In 2022, Canadians filed for 20,497 patents abroad, a 4% year-over-year decrease resulting from reductions in activity at the top 3 destinations (United States, the EPO, and China), and less PCT activity.
Trademarks
Trademarks are IP rights that protect words, sounds, designs, tastes, colours, textures, scents, moving images, 3-dimensional shapes, modes of packaging, holograms, or a combination thereof, used to distinguish the goods or services of one person or organization from those of others.Footnote 11 All of these can be vital elements of a company's image. At CIPO, trademark filings outnumber those for all other IP rights. In 2023, CIPO received 71,214 trademark applications, including Protocol applications,Footnote 12 a 3% year-over-year decrease driven solely by a reduction in non-resident activity. In 2022, Canadians filed for 23,609 trademarks in other jurisdictions, a 16% decrease with respect to the previous year.
Trademark applications filed in Canada
Figure 8 presents the residency status composition of trademarks filed in Canada over the last 10 years. In 2023, CIPO received 71,214 trademark applications, 3% fewer than in 2022. This is the second annual decrease experienced since 2013. Furthermore, it follows the pronounced 11% decrease observed in 2022, marking the first case of 2 consecutive years of negative growth since the Great Financial Crisis in 2008 and 2009. The 2022 decrease is entirely attributable to non-resident activity, from which 47,553 applications were filed, representing a 6% decrease compared to the previous year. Resident activity, on the other hand, experienced a 3% increase with 23,661 filings. Residents made up 33% of all trademark applications in 2023, up from 31% in 2022. Over a 10-year period, total trademark applications in Canada have increased by 43%, with filings from residents increasing by 10%, and those from non-residents by a remarkable 68%, consistent with Canada being the ninth largest economy in the world and a desired market for international companies.
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| Year | Resident | Non-resident | Total |
|---|---|---|---|
| 2014 | 21,348 | 29,680 | 51,028 |
| 2015 | 22,589 | 29,872 | 52,461 |
| 2016 | 23,652 | 31,013 | 54,665 |
| 2017 | 25,853 | 33,060 | 58,913 |
| 2018 | 27,320 | 35,738 | 63,058 |
| 2019 | 28,602 | 37,479 | 66,081 |
| 2020 | 27,951 | 42,818 | 70,769 |
| 2021 | 29,597 | 53,047 | 82,644 |
| 2022 | 23,086 | 50,300 | 73,386 |
| 2023 | 23,661 | 47,553 | 71,214 |
Figure 9 presents the top 6 origins of trademark filings in Canada in 2023. The country rankings remain the same as for 2022, although with some significant changes in volumes. Canada leads with 23,661 applications, 3% more than the previous year. The United States and China are second and third with 18,379 and 9,797 applications, though their respective annual 11% loss and 11% gain brought the 2 countries significantly closer to one another than in the previous year. Filings from the United Kingdom, Germany, and France with 2,192, 1,984, and 1,878 applications put those countries in third, fourth, and fifth position, respectively. Collectively, the top 6 origins represented 81% of trademark filings in Canada in 2023, a figure unchanged from 2022.
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| Trademarks by country of origin | 2023 | % of total | Variation 2023 |
|---|---|---|---|
| Canada | 23,661 | 33% | 3% |
| United States of America | 18,379 | 26% | -11% |
| China | 9,797 | 14% | 11% |
| United Kingdom | 2,192 | 3% | -16% |
| Germany | 1,984 | 3% | -15% |
| France | 1,878 | 3% | 7% |
The Madrid system provides trademark holders the possibility of filing a single application for international registration with WIPO and designating other members where protection is sought. Figure 10 presents the top 6 sources of Protocol applications filed in Canada in 2023;Footnote 13 the outer bars denote applications volumes, while the inner bars show the portions of applications filed through the Madid system from each country of origin. The 4 European countries shown all use the system heavily in Canada, usually seeking protection in other jurisdictions. In contrast, American and Chinese applicants often file directly to CIPO.
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| Country of origin | Protocol applications at CIPO | Madrid applications at CIPO / total applications at CIPO by origin (right axis) |
|---|---|---|
| United States of America | 6,957 | 38% |
| Germany | 1,735 | 88% |
| China | 1,682 | 17% |
| United Kingdom | 1,501 | 69% |
| France | 1,468 | 78% |
| Switzerland | 991 | 78% |
Trademark applications filed abroad by Canadians
Figure 11 presents trademark filing activity abroad by Canadians; the line follows the total application volume, and the bars show year-over-year changes. The unprecedented 19% surge seen in international trademark activity in 2021 amidst the COVID-19 pandemic was followed by a 16% decline in 2022, with a total of 23,609 trademarks filed abroad. Despite the 2 punctual decreases in 2020 and 2022, the long-term trend is still positive and overall growth has reached 84% since 2012. Canadians' use of the Madrid system has also continued to grow since its implementation in 2019, reaching 22% of all outgoing applications in 2022.
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| Year | Volume | Growth (right axis) |
|---|---|---|
| 2013 | 13,776 | 7% |
| 2014 | 14,801 | 7% |
| 2015 | 16,311 | 10% |
| 2016 | 16,925 | 4% |
| 2017 | 19,853 | 17% |
| 2018 | 24,045 | 21% |
| 2019 | 26,186 | 9% |
| 2020 | 23,633 | -10% |
| 2021 | 28,240 | 19% |
| 2022 | 23,609 | -16% |
Figure 12 presents the top 5 international destinations for Canadian trademark applications. Although the rankings are almost unchanged with respect to the previous year, all 5 destinations experienced decreases in activity from Canadian applicants. The United States received 9,322 Canadian filings, reinforcing its lead despite a 14% annual decrease. China drew 3,721 applications from Canadians, representing a 21% decrease with respect to the previous year. With 1,520 applications, the European Union Intellectual Property Office (EUIPO) moved to third position in the ranking, resulting in the United Kingdom dropping to fourth place with 1,325 filings and a 27% year-over-year decrease. Australia completes the ranking with 716 trademarks filed by Canadians, and a 16% decline with respect to 2021. Collectively, the top 5 destinations accounted for 70% of Canadian trademark filings abroad in 2022.
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| Top-five destinations | 2022 | % of total | Variation 2022 |
|---|---|---|---|
| United States of America | 9,322 | 40% | -14% |
| China | 3,721 | 16% | -21% |
| European Union Intellectual Property Office | 1,520 | 6% | -14% |
| United Kingdom | 1,325 | 6% | -27% |
| Australia | 716 | 3% | -16% |
Conclusion
In 2023, trademark applications received by CIPO continued to decrease, but at a diminishing rate with respect to that observed in 2022. Non-resident filings accounted entirely for the 2023 decrease, indicative of the economic challenges being faced by countries around the world. The top 6 countries filing in Canada saw significant shifts in both directions, with Canada, China, and France increasing, and the United States, the United Kingdom, and Germany experiencing declines. Over the last 10 years, total trademark applications in Canada have increased by 43%. In 2022, trademark applications abroad by Canadians decreased by 16%, following the significant 19% surge that was observed in 2021. The top 5 international destinations all saw declines in trademark activity from Canadian applicants. The use of the Madrid system by Canadians reached 22% of all applications abroad. Between 2012 and 2022, trademark activity abroad by Canadian increased by 84%.
Industrial designs
An industrial design refers to the look of a finished product, specifically features of shape, configuration, ornament, pattern, or any combination of those features. Industrial design rights grant their proprietor an exclusive right in relation to the design.Footnote 14 A unique, recognizable product appearance protected as an industrial design is a crucial marketing asset. Over the past 10 years, industrial design activity at CIPO has been primarily driven by non-resident applications and has increased by 69%, with 9,045 designs received in 2023.
Industrial designs filed in Canada
Figure 13 presents industrial design filing activity at CIPO by residents and non-residents. Throughout 2023, a total of 9,045 designs were filed in Canada, an increase of 2% with respect to the previous year. With 91% of all the industrial design filing activity, non-residents accounted for 8,265 designs, a 1% increase from 2022. Designs received from residents increased by 7%, with a total of 780 filings. Unlike patents and trademarks, the increase observed in design filings in 2023 seems to bring the trend back to a long-term growth that now goes up to 69% over the 10-year period.
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| Year | Resident | Non-resident | Total |
|---|---|---|---|
| 2014 | 859 | 4,908 | 5,767 |
| 2015 | 797 | 5,049 | 5,846 |
| 2016 | 916 | 5,254 | 6,170 |
| 2017 | 815 | 5,718 | 6,533 |
| 2018 | 760 | 5,821 | 6,581 |
| 2019 | 694 | 6,014 | 6,708 |
| 2020 | 763 | 7,301 | 8,064 |
| 2021 | 697 | 8,254 | 8,951 |
| 2022 | 730 | 8,173 | 8,903 |
| 2023 | 780 | 8,265 | 9,045 |
Figure 14 depicts the top 6 countries filing for industrial designs at CIPO in 2023. With 3,490 designs, the United States is again the largest filing source, albeit with a 7% year-over-year decrease. China occupies the second position, filing 977 designs, 7% more than in 2022. Resident filings amount to 780 designs, 7% higher than the previous year, placing Canada third. Switzerland, Germany, and the United Kingdom applied for 566, 519, and 402 industrial designs, respectively. These 3 countries experienced annual increases in their respective applications in Canada. Collectively, the top 6 origins provided 74% of all industrial designs received by CIPO in 2023, a share unchanged from 2022.
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| Industrial designs by country of origin | 2023 | % of total | Variation 2023 |
|---|---|---|---|
| United States of America | 3,490 | 39% | -7% |
| China | 977 | 11% | 7% |
| Canada | 780 | 9% | 7% |
| Switzerland | 566 | 6% | 32% |
| Germany | 519 | 6% | 9% |
| United Kingdom | 402 | 4% | 45% |
Since the implementation of the Hague Agreement in 2018, Canada can be designated alongside a number of other jurisdictions through an international registration at WIPO. In addition, an international registration via the Hague system can bundle up to 100 unique designs in a single filing. In 2023, there were 1,773 international registrations designating Canada,Footnote 15 containing a total of 3,867 designs, representing an average of 2.18 designs per international registration. Compared to 2022, international registrations designating Canada increased by 17% and the count of designs filed through this medium increased by 6%. The uptake of the Hague system among industrial design applicants filing in Canada reached a new record, with 43% of all designs filed with CIPO in 2023.
Figure 15 presents the top 6 countries filing for industrial designs in Canada through the Hague system; the outer bars show absolute numbers of designs in international registrations designating Canada, and the inner bars describe the share of designs filed through the Hague system from each country over the total number of designs received by CIPO for that country. The 798 designs received from the United States through the Hague system represent 23% of all designs filed from that country in Canada. Although the design count in international registrations is lower for the other 5 countries, the rates of use of the Hague system are higher. Notably, China, in third place this year with 462 designs in international registrations designating Canada, increased the proportion of these designs over its total from 39% in 2022 to 47% in 2023. Four European countries complete the chart with high usage rates of the Hague system. Of the designs in international registrations designating Canada from Switzerland, Germany, the United Kingdom, and France, the proportion over the total design activity in Canada ranged from 65% to 85%.
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| Country of origin | Designs in international registrations designating Canada | Designs in international registrations designating Canada / total designs filed in Canada by origin (right axis) |
|---|---|---|
| United States of America | 798 | 23% |
| Switzerland | 483 | 85% |
| China | 462 | 47% |
| Germany | 427 | 82% |
| United Kingdom | 260 | 65% |
| France | 239 | 85% |
Industrial designs filed abroad by Canadians
The industrial design filing activity abroad by Canadians is presented in Figure 16, with the line indicating the total filing volume, and the bars showing annual changes. After achieving a record performance in 2021 with 2,634 industrial designs, Canadians filed for 2,586 designs in 2022, a 2% decrease. International industrial design activity by Canadians is more volatile than that of other types of IP, but the net trend is still firmly positive, with a 32% total increase over the 10-year period. Canadians continued to increase their use of the Hague system, which accounted for 27% of all filings abroad in 2022, up from 20% in the year prior.
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| Year | Volume | Growth (right axis) |
|---|---|---|
| 2013 | 2,102 | 7% |
| 2014 | 1,962 | -7% |
| 2015 | 1,691 | -14% |
| 2016 | 1,914 | 13% |
| 2017 | 1,868 | -2% |
| 2018 | 2,134 | 14% |
| 2019 | 2,323 | 9% |
| 2020 | 1,846 | -21% |
| 2021 | 2,634 | 43% |
| 2022 | 2,586 | -2% |
The top 5 international destinations for industrial design applications by Canadians in 2022 are presented in Figure 17. The rankings are consistent with those of the previous year, save for an increase in activity originating from Japan bringing that country to fifth place. The top 3 destinations maintained their positions from 2021, but all experienced decreased activity. Filings received by the United States, the EUIPO, and the United Kingdom decreased by 18%, 20%, and 27% with 852, 448, and 289 designs, respectively. The 137 designs filed in China, however, represent a 6% annual increase. Collectively these 5 destinations account for 70% of all designs filed internationally by Canadians.
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| Top-five destinations | 2022 | % of total | Variation 2022 |
|---|---|---|---|
| United States of America | 852 | 33% | -18% |
| European Union Intellectual Property Office | 448 | 17% | -20% |
| United Kingdom | 289 | 11% | -27% |
| China | 137 | 5% | 6% |
| Japan | 96 | 4% | 48% |
Conclusion
In 2023, CIPO received applications for 9,045 industrial designs, a 2% increase, returning the trend back to positive growth, after a slight 1% decrease in 2022. The long-term trend for the 2013–2023 period yielded a 69% growth. Designs by non-resident applicants make up 91% of the filings at CIPO. The use of the Hague system achieved a new record with 43% of designs filed with CIPO having opted for that route, an increase of 2 percentage points from the previous year. In 2022, Canadians applied for 2,586 industrial designs in other countries, a 2% decrease from the previous year's record performance. Their filing destinations are highly concentrated, with the top 5 destinations accounting for 70% of Canadian designs filed abroad. As observed in applicants from other developed countries, Canadians filing internationally continue to rely on the Hague system; its use rose from 20% of outgoing designs in 2021 to 27% in 2022.
Plant breeders' rights
Plant breeders' rights allow plant breeders to protect their new varieties, giving them exclusive rights in relation to the propagating material (seeds, cuttings, budwood, etc.) of their plant varieties. There are 2 groups of plant varieties: horticulture plants, which include fruits, vegetables, and ornamentals; and agricultural plants, covering cereals, pulses, potatoes, oilseeds, and forages. The PBRO, an office within the CFIA, is responsible for the administration of the Plant Breeders' Rights Act and Plant Breeders' Rights Regulations in Canada. The PBRO received 394 plant breeders' rights applications in 2023, 3% more than the previous year. This growth comes from a rise in resident activity and filings for agricultural varieties.
Plant breeders' rights applications filed in Canada
As seen in Figure 18, the total plant breeders' rights filings grew in 2023 reaching 394 filings, of which 211 (54%) were on horticultural varieties and the remaining 183 (46%) sought protection of agricultural varieties. The 3% annual increase observed in 2023 is driven by resident filings increasing by 20% to 97 applications, while non-resident filings fell by 2% to 297 counts. The activity in 2023 continues an upward trend that started in 2017 and was only interrupted in 2020.
Text version
| Year | Resident | Non-resident | Total |
|---|---|---|---|
| 2014 | 83 | 263 | 346 |
| 2015 | 69 | 214 | 283 |
| 2016 | 66 | 216 | 282 |
| 2017 | 59 | 244 | 303 |
| 2018 | 51 | 280 | 331 |
| 2019 | 74 | 296 | 370 |
| 2020 | 75 | 263 | 338 |
| 2021 | 94 | 275 | 369 |
| 2022 | 81 | 303 | 384 |
| 2023 | 97 | 297 | 394 |
Figure 19 presents the top 6 countries filing for plant breeders' rights at the PBRO in 2023. The 162 applications from the top origin, the United States, represent 41% of the total filing activity, down 5% with respect to 2022. With 25% of all filings received by the PBRO, Canada positions itself in second with 97 filings, 20% more than in the previous year. The Netherlands and Germany rank third and fourth, with 48 and 22 filings, respectively. In Canada, slightly more than 9 out of every 10 plant breeders' rights applications are filed from these top 6 countries.
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| PBR applications by country of origin | 2023 | % of total | Variation 2022 |
|---|---|---|---|
| United States of America | 162 | 41% | -5% |
| Canada | 97 | 25% | 20% |
| Netherlands | 48 | 12% | 2% |
| Germany | 22 | 6% | 5% |
| Japan | 22 | 6% | 267% |
| Switzerland | 14 | 4% | -46% |
Filing activity by variety group – Horticultural
Non-resident filings are especially prevalent for horticultural varieties, of which they encompass 91% of all applications in 2023. The 192 applications received by other countries represent a 19% annual increase, and are the main driver for the overall 25% increase in horticultural applications. Although resident filings represent a small fraction of the total (9%) in 2023, these filings represent more than double the number of those filed in 2022, as Figure 20 shows. The long-term growth calculated over a 10-year period is 5%, driven by a 9% drop in non-resident activity, while filings from residents experienced a 58% increase in that time frame.
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| Year | Resident | Non-resident | Total |
|---|---|---|---|
| 2014 | 9 | 179 | 188 |
| 2015 | 10 | 162 | 172 |
| 2016 | 11 | 135 | 146 |
| 2017 | 14 | 169 | 183 |
| 2018 | 7 | 196 | 203 |
| 2019 | 7 | 188 | 195 |
| 2020 | 11 | 159 | 170 |
| 2021 | 17 | 186 | 203 |
| 2022 | 8 | 161 | 169 |
| 2023 | 19 | 192 | 211 |
Filing activity by variety group – Agricultural
In 2023, the PBRO received 183 filings for agricultural varieties, a 15% decrease from 2022. Resident activity is rather concentrated on agricultural varieties and, as Figure 21 reveals, the ratio of resident to non-resident filings is more comparable for agricultural varieties. In 2023, residents filed 78 applications, representing 43% of the total, an increase from the 34% observed in 2022. Non-resident filings, on the other hand, suffered a 26% annual decrease, with 105 filings. Agricultural varieties account for most of the long-term growth in plant breeders' rights filings, with a 79% growth observed over the 10-year period.
Text version
| Year | Resident | Non-resident | Total |
|---|---|---|---|
| 2014 | 74 | 84 | 158 |
| 2015 | 59 | 52 | 111 |
| 2016 | 55 | 81 | 136 |
| 2017 | 45 | 75 | 120 |
| 2018 | 44 | 84 | 128 |
| 2019 | 67 | 108 | 175 |
| 2020 | 64 | 104 | 169 |
| 2021 | 77 | 89 | 166 |
| 2022 | 73 | 142 | 215 |
| 2023 | 78 | 105 | 183 |
Conclusion
Plant breeders' rights applications in Canada continued a growth that started in 2016 and was interrupted in 2020. In Canada, filing trends for this form of IP right are typically characterized by a strong presence of non-resident activity, and protection is sought mainly for horticultural varieties. The 3% increase in filing activity in 2023 was characterized by a 25% increase in applications for horticultural varieties, contrasted by a 15% decrease in filings for agricultural plants.
IP-backed financing in Canada
Introduction
Canada is the second largest country in the world with investments around intangible capital having reached $134.3 billion in 2016.Footnote 16 Approximately 30% of Canadian firms with 20 or more employees and revenues of $250,000 or higher reported having developed some sort of product innovation between 2019 and 2022, of which 38% reported protecting the IP of such innovation.Footnote 17 This IP is acknowledged as a significant contributor to value, not only by the firms themselves but also by financial institutions. This observation is substantiated by the fact that companies with formal IP tend to receive financing amounts 2.4 times higher than those without IP.Footnote 18
Who is using IP in security agreements? Key statistics
It has been mostly larger firms (with more revenue and employees) that own IP and are therefore able to use these in financing transactions. In 2020, 85% of Canadian firms owning formal IP requested government financing, compared to 75% of their counterparts not owning IP. The average approved amount of debt financing for small- and medium-sized enterprises (SMEs) owning formal IP was $757,000; 3 times higher than the average amount approved for companies with no IP ($245,000). The type of debt funding most commonly sought by SMEs with registered IP are lines of credit, followed by term loans.Footnote 19
Security agreements involving patents
According to internal data, CIPO recorded 2,800 security agreements involving over 17,100 patents between 2000 and 2016.Footnote 20 Of that, 53% of recorded security agreements include patents with only foreign patent applicants, and around 40% of recorded agreements involved patents exclusively filed by Canadian applicants. The remaining 7% consisted of patents with both Canadian and foreign applicants.
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| Year | Only Canadian applicants | Mixed foreign and Canadian applicants | Only foreign applicants | Trend |
|---|---|---|---|---|
| 2000 | 41 | 2 | 64 | 107 |
| 2001 | 49 | 1 | 52 | 102 |
| 2002 | 44 | 9 | 74 | 127 |
| 2003 | 63 | 13 | 85 | 161 |
| 2004 | 54 | 15 | 82 | 151 |
| 2005 | 68 | 11 | 91 | 170 |
| 2006 | 86 | 12 | 105 | 203 |
| 2007 | 53 | 8 | 93 | 154 |
| 2008 | 54 | 10 | 69 | 133 |
| 2009 | 68 | 19 | 104 | 191 |
| 2010 | 72 | 12 | 109 | 193 |
| 2011 | 66 | 13 | 105 | 184 |
| 2012 | 83 | 19 | 100 | 202 |
| 2013 | 86 | 15 | 87 | 188 |
| 2014 | 107 | 19 | 114 | 240 |
| 2015 | 84 | 14 | 122 | 220 |
| 2016 | 63 | 8 | 71 | 142 |
The average size in terms of number of patents per security agreement varied significantly between the applicant origin groups. The security agreements with mixed foreign and Canadian applicants had on average 13 patents per agreement, almost 4 times more patents per agreement than for agreements involving patents with exclusively Canadian applicants (average 3.4 patents per agreement). Security agreements involving patents filed exclusively by foreign applicants had on average 5.9 patents per agreement.
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| Year | Only Canadian applicants | Mixed foreign and Canadian applicants | Only foreign applicants |
|---|---|---|---|
| 2000 | 1 | 6 | 3 |
| 2001 | 3 | 8 | 14 |
| 2002 | 3 | 6 | 4 |
| 2003 | 3 | 11 | 7 |
| 2004 | 3 | 5 | 5 |
| 2005 | 4 | 20 | 8 |
| 2006 | 3 | 12 | 5 |
| 2007 | 4 | 30 | 5 |
| 2008 | 4 | 6 | 7 |
| 2009 | 3 | 10 | 10 |
| 2010 | 4 | 9 | 5 |
| 2011 | 3 | 7 | 3 |
| 2012 | 3 | 10 | 5 |
| 2013 | 5 | 32 | 6 |
| 2014 | 3 | 23 | 7 |
| 2015 | 3 | 22 | 3 |
| 2016 | 5 | 7 | 4 |
Of the 17,145 patents filed between 2000 and 2016 and involved in security agreements, 9,528 (56%) were filed by foreign applicants, while 4,814 applications (26%) were filed exclusively by Canadian applicants, leaving the remaining 2,803 applications (16%) in the group of mixed applicants, as Figure 24 reveals.
Text version
| Year | Only Canadian applicants | Mixed foreign and Canadian applicants | Only foreign applicants | Trend |
|---|---|---|---|---|
| 2000 | 98 | 12 | 232 | 342 |
| 2001 | 200 | 8 | 770 | 978 |
| 2002 | 175 | 52 | 375 | 602 |
| 2003 | 275 | 138 | 628 | 1,041 |
| 2004 | 222 | 80 | 458 | 760 |
| 2005 | 313 | 216 | 770 | 1,299 |
| 2006 | 351 | 145 | 572 | 1,068 |
| 2007 | 240 | 237 | 488 | 965 |
| 2008 | 291 | 66 | 501 | 858 |
| 2009 | 283 | 191 | 1,105 | 1,579 |
| 2010 | 329 | 106 | 568 | 1,003 |
| 2011 | 251 | 87 | 360 | 698 |
| 2012 | 309 | 197 | 550 | 1,056 |
| 2013 | 489 | 475 | 548 | 1,512 |
| 2014 | 367 | 434 | 869 | 1,670 |
| 2015 | 267 | 303 | 450 | 1,020 |
| 2016 | 354 | 56 | 284 | 694 |
A subset of 423 security agreements was selected and analyzed to determine the duration (start and end date for when the security agreement was in force).Footnote 21 Based on this subset, more security agreements with Canadian applicants had their patents locked into a security for a longer period than security agreements with mixed or entirely foreign applicants. Around 55% of agreements with exclusively Canadian patent applicants tended to be active over 2 years. Fifty-three percent of agreements with mixed patent applicants had a lifetime of under 2 years, whereas agreements with foreign applicants had the most even distribution of the duration of the agreement.
Text version
| Only Canadian applicants | Mixed foreign and Canadian applicants | Only foreign applicants | |
|---|---|---|---|
| Less than 1 | 21% | 24% | 28% |
| Between 1 and 2 | 24% | 29% | 21% |
| Between 2 and 4 | 36% | 26% | 21% |
| More than 4 | 19% | 21% | 24% |
Security agreements involving trademarks
Unlike the patent data where a security agreement is linked to one or several patents, security agreements involving trademarks are registered for each trademark. In addition, the number of security agreements involving trademarks is overstated since security agreements registered in CIPO's trademark database include both security agreements as well as licensing agreements. The data is not limited to scenarios where these trademarks were used as a security.
From 2000 to 2021, CIPO recorded security agreements involving 77,000 trademarks, as Figure 26 indicates. Over this period, the annual number of trademark security agreements increased from 1,228 in 2001 to more than 9,630 in 2021.
Text version
| Year | Trend |
|---|---|
| 2000 | 727 |
| 2001 | 1,228 |
| 2002 | 1,309 |
| 2003 | 1,350 |
| 2004 | 1,771 |
| 2005 | 2,307 |
| 2006 | 1,627 |
| 2007 | 2,463 |
| 2008 | 3,064 |
| 2009 | 2,798 |
| 2010 | 4,507 |
| 2011 | 3,306 |
| 2012 | 3,280 |
| 2013 | 4,764 |
| 2014 | 4,577 |
| 2015 | 3,858 |
| 2016 | 4,902 |
| 2017 | 5,871 |
| 2018 | 4,493 |
| 2019 | 3,616 |
| 2020 | 5,640 |
| 2021 | 9,637 |
A subset of the trademark security agreements were analyzed for duration and the results indicated that trademarks are locked up in security agreements for a shorter period than patents. Figure 27 reveals that well over half of trademarks were used as security for less than 2 years.
Text version
| Only Canadian applicants | |
|---|---|
| Less than 1 | 727 |
| Between 1 and 2 | 3,616 |
| Between 2 and 4 | 5,640 |
| More than 4 | 9,637 |
Conclusion
This section provided an overview of typical IP use and ownership among Canadian firms, with a focus on how patents and trademarks are used as security in financing. A more comprehensive version will include a discussion on Canadian lending institutions involved in intangible asset financing, and will be part of a compendium of country reports published by WIPO.
Patenting in quantum technologies
Introduction
Quantum technologies apply atomic and subatomic physics to drive change in security, energy, health, the environment, and more. According to a study commissioned by the National Research Council of Canada, by 2045, quantum technologies will become a $139-billion industry in Canada with more than 200,000 jobs and $42 billion in returns, potentially contributing 3% to Canada's GDP.Footnote 22 Canada's National Quantum Strategy (NQS) commits programs and funding to reinforce 3 strategic pillars: research, talent, and commercialization. These efforts aim to strengthen Canada's quantum advantage and support the anticipated economic benefits of the quantum industry.Footnote 23
In an upcoming report on patenting in quantum technologies, CIPO will provide analysis to shed light on the NQS's effectiveness, particularly in its research pillar. As the path from initial research to patent commercialization is several years long, data available for the report does not reflect the effects after the NQS. Rather, it establishes a baseline upon which the Strategy is expected to improve.
Canada's quantum competitiveness
As shown in Figure 28, between 2001 and 2020, 7,644 organizations (corporate, academic, government, and health) applied for patents for a total of 44,547 inventions in quantum technologies worldwide.Footnote 24 Among these, 92 Canadian organizations applied for patents for a total of 485 inventions, making Canada the eighth most prolific country in the dataset.
Text version
Figure 28 consists of an inverted triangle. The triangle, coloured in shades of red, shows the breakdown of the patent dataset for quantum technologies. The light red upper partition indicates that 7,644 organizations applied for patents for a total of 44,547 inventions in quantum technologies worldwide between the application years 2001 and 2020. Out of these, the dark red bottom portion shows that 92 Canadian organizations applied for patents for 485 inventions.
After adjusting for annual GDP, Canada falls from eighth to ninth place with approximately 129 inventions per $10 trillion (USD) GDP. Figure 29 reveals that China, Japan, and the United States maintain strong quantum patent outputs even after adjustment, while Finland and Israel emerge as strong performers. Canada is not far behind, in a grouping with other second-tier countries such as Germany and the United Kingdom.
Text version
Figure 29 is a world map highlighting different countries based on their patent activity in quantum technologies, adjusted for GDP. Countries are shaded in varying intensities of colour, with darker shades indicating higher levels of patent output relative to their GDP. The top 3 countries with the highest levels of patent activity in quantum technologies, adjusted for GDP, are China, Japan, and the United States. This visual representation helps identify which countries are leading in quantum technology innovation when considering the size of their economies.
In addition to quantity, it is essential to examine the importance of the patents associated with these inventions. Canada's share of patent activity in the quantum technology area is roughly in line with the size of its economy, but the importance of its inventions surpasses other innovative countries. Canadian inventions command high PatentVector patent importance scores;Footnote 25 they are cited more often and thus may be more influential and valuable if granted. Canada's average patent importance is third among the 10 most prolific countries, behind only the Netherlands and the United States. Canada's share of important patent applications in quantum technologies is comparable to that of China despite the Chinese portfolio being nearly 50 times as large.
| Country of origin | Share of inventions | Share of patent importance | Average patent importance |
|---|---|---|---|
| China | 52% | 4% | 6,287 |
| United States | 15% | 64% | 390,241 |
| Republic of Korea | 12% | 2% | 13,842 |
| Japan | 9% | 9% | 95,035 |
| Germany | 2% | 3% | 182,367 |
| Taiwan | 2% | 1% | 33,925 |
| United Kingdom | 1% | 1% | 56,230 |
| Canada | 1% | 3% | 266,780 |
| Netherlands | 1% | 3% | 426,919 |
| India | 1% | 0.3% | 49,834 |
Conclusion
This section revealed Canada's advantage in quantum technologies, and emphasized the importance of the National Quantum Strategy for Canada to maintain and build upon this specialization. CIPO intends to publish a comprehensive report on patenting in quantum technologies in the coming year, diving deeper into Canada's competitive standing in the quantum field. Using the same 2001–2020 dataset, the report will analyze activity in quantum sub-technologies, including quantum computing, quantum communication, and quantum materials. Canadian inventors and organizations will both be assessed against their international counterparts. Measures of concentration and specialization will also offer a high-level snapshot of Canada's competitive prospects. A complete picture of the quantum landscape prior to the implementation of the NQS will assist to inform on the effectiveness of the measures taken to enhance innovation in this area.
Conclusion
The IP Canada Report 2024 presented the latest trends in IP activity in Canada and abroad by Canadians. The year 2023 was characterized by economic uncertainty, persisting inflation, and high interest rates. In that year, CIPO received 35,620 patent filings, a 6% annual decrease observed in both resident and non-resident applications. Trademark activity declined by 3% to 71,214 applications, marking the first period of 2 consecutive annual decreases since the 2008–2009 financial crisis. In contrast, industrial designs increased by 2% to 9,045 filings, driven by non-resident filing activity. Finally, the PBRO received applications for 394 plant breeders' rights, a 3% annual increase. The 10-year growth rates in filing activity were 3% for patents, 43% for trademarks, 69% for industrial designs, and 21% for plant breeders' rights. The United States, China, Germany, Switzerland, the United Kingdom, France, the Netherlands, and Japan were the top countries filing for IP in Canada. IP activity abroad by Canadians showed a decline in 2022, a year characterized by unprecedented levels of inflation. Patents, trademarks, and industrial designs decreased by 4%, 16%, and 2% respectively. The 10 year growth rates were -5% for patents, 84% for trademarks, and 32% for industrial designs.
Showcasing a national IP ecosystem that provides education, support, and financing opportunities to leverage intangible assets, a special research section provided an overview of typical IP use and ownership among Canadian firms, emphasizing the use of patents and trademarks as security in financing operations. Furthermore, a summary of an IP analytics effort showcased key trends and Canada's competitive position in the quantum technologies field.
Like in the previous edition, the IP trends presented in the IP Canada Report 2024, reflect the capacity of IP users to not only face challenging economic environments, but also to find opportunities to thrive.
Appendix A
CIPO administers IP rights in Canada, including patents, trademarks, industrial designs, copyright, geographical indications, official marks, and integrated circuit topographies. This report focuses on the first 3 of these IP rights. Each type of IP protection is designed for different circumstances. The fees applied by CIPO change yearly and can be found in the updated list of fees and payment forms on its website.
Patents
Patents provide a time-limited, legally protected, exclusive right to make, use, and sell an invention. In this way, patents serve as a reward for ingenuity. Patents apply to newly developed technology, as well as to improvements on products or processes.
Patent protection is valid in the country or region that issues the patent. In Canada, a patent lasts for 20 years from the date that it is filed. Patents can have a great deal of value. They can be sold, licensed, or used as assets to attract funding from investors.Footnote 26
In exchange for these benefits, a full description of the invention must be provided when filing a patent application. This helps enrich technical knowledge worldwide. Details of patent applications filed in Canada are disclosed to the public after an 18 month period of confidentiality.
To be eligible for patent protection, an invention must be: new (first in the world), useful (functional and operative), and inventive (showing ingenuity and not obvious to someone of average skill who works in the field of the invention). The invention can be: a product (e.g. door lock); a composition (e.g. chemical composition used in lubricants for door locks); a machine (e.g. for making door locks); a process (e.g. a method for making door locks); or an improvement on any of these.
In Canada, the first applicant to file a patent application is entitled to obtain the patent. The patent should be filed as soon as possible after an invention is completed in case someone else is on a similar track.
Any public disclosure of an invention before filing may make it impossible to obtain a patent. There is an exception in Canada and the United States if the public disclosure was made by the inventor or by someone who learned of the invention from the inventor less than one year before filing the patent application.
The PCT system provides inventors with a streamlined process to seek protection in multiple countries by filing a single international application. It helps simplify the initial stages of the patenting process and provides inventors with an international search and non-binding opinion on the patentability of an invention, before entering national or regional phases.
Trademarks
Trademarks can consist of words, designs, tastes, textures, moving images, modes of packaging, holograms, sounds, scents, 3-dimensional shapes, colours, or a combination of these used to distinguish the goods or services of one person or organization from those of others. Over time, trademarks stand for not only the actual goods or services a person or company offers, but also the reputation of the producer. Trademarks are a very valuable form of IP.Footnote 27
A certification mark, a type of trademark, can be licensed to many people or companies for the purpose of showing that certain goods or services meet a defined standard. For example, the Woolmark design, owned by Woolmark Americas Ltd., is used on clothing and other goods.
For more information, consult CIPO's web page on international trademarks under the Madrid Protocol.
Industrial designs
An industrial design is about how something looks. It protects the visual features of shape, configuration, pattern, or ornament, and any combination of these features applied to a finished article. In other words, it protects the appearance of an article. For example, industrial designs can be found in many everyday products, such as the unique contour of a car hood, the graphical user interface on a phone, or the specific shape or pattern of your favourite shoes. If you want to register an industrial design, it has to be novel. Registration will provide you with an exclusive right to your design for up to 15 years.
You may file for registration through CIPO or through the Hague system. An application filed through CIPO may protect your design only in Canada. An application filed through the Hague system may protect your design in multiple countries, including in Canada. For more information on how to apply for registration, please consult the Industrial designs guide.Footnote 28
Appendix B
Interpreting patent data
Patent data is a good starting point for analysis of the development of new technologies as it provides important information on the specific innovation in the invention, and who the inventors and applicant are. Like any data source, patent data has its strengths and weaknesses. If used in the wrong way, it can lead to erroneous conclusions and poor policy. The following provides context on the use of patents in understanding innovation.
While patents measure the flow of new ideas, it has been argued that patents may not measure innovation for 3 important reasons: patents do not include non-patented innovations, not all patents result in commercialization, and many patents are strategic in nature.Footnote 29 For this reason, the analysis is based on patent families that include applications in at least 2 jurisdictions. This makes it more likely that these patent families be a higher-valued invention and that the firm commercialize the invention.
Another challenge presented is that many innovations or inventions remain hidden as trade secrets. These innovations will be missed in a measure that includes only patents. However, a 2008 study indicates that world-first innovators patent more frequently. Conversely, firms that patent infrequently tend to be imitators.Footnote 30 In addition, the study finds that firms that protect their IP are more likely to increase their profits than those that do not. Moreover, SMEs that patent are more likely to be high-growth firms, which is important for success.Footnote 31 These conclusions are reinforced by a Canadian study that noted that firms that are aggressive innovators, introducing radically new products that involve patent protection, have higher profits.Footnote 32 Finally, while some inventions are not patented, patents are obtained for almost all economically significant inventions.Footnote 33
Below are the primary ways to view or interpret patent data:
Market reach
Patent filings in foreign markets are a good indicator of firms accessing those markets. Surveys have shown that firms that hold patents are more likely to be exporters.
Innovative activity
When we do not account for filings in multiple jurisdictions, we are double and triple counting the number of patented inventions or innovative activities. In order to address this, patent data allows for the formation of patent families whereby each family includes all related or similar patents in all jurisdictions.
Scientific strength
It is possible to identify the researchers or scientists, rather than the company or applicant. While these can be the same, they are often different. In this way, we can see the inventive activity of Canadian researchers working in other countries or for non-Canadian companies.
Relative advantage
Canada is a small open economy. For this reason, it is unlikely that our industries or innovators would have an absolute advantage in a particular area, be the most prolific IP users, or have the largest global market share. However, there are areas where we have a comparative or relative advantage. Much work has been done in the creation of metrics of relative technological advantage and relative specialization.