The Power of IP in a World of Tariff Barriers: An Australian Perspective
It has been a few weeks since the USA started announcing the implementation of tariffs and associated threats. In such an environment, I feel that it is more important than ever that Australian innovators and businesses pay special attention to their intellectual property.
While tariff uncertainty might eventually re-shape global trade, Australian businesses that do business in overseas markets must be proactive in identifying their intellectual property assets and securing patents and trade marks abroad. Registering important intellectual property assets in key markets like the USA would ultimately position Australian businesses in a much better position for long term success.
Australian Owned Patents in Protectionist Markets
Australian businesses, and all foreign-based companies selling goods into protectionist markets like the USA could consider safeguarding their commercial advantage by ensuring that their intellectual property (which may be in the form of patents or designs) is protected in the USA.
Even though seeking patent protection in key markets like the USA has always been recommended, I believe that there has never been a better time to consider IP identification and protection for any new products and inventions in key markets like the USA. United States Patent Law, like nearly all other jurisdictions, provides foreign patent holders the right to “exclude others from making, using, offering for sale, or selling” an invention or “importing” it into the United States. As a result, an Australian company that holds a U.S. Patent can stop unauthorised American-based businesses from exploiting the patented technology.
Navigating Tariffs: How Can Australian Businesses Prepare? IP Review
Innovative Australian companies should at least consider reviewing their intellectual property position. In many instances, Australian businesses that may have previously competed on costs may no longer be able to rely solely on this strategy to stay competitive. Therefore, auditing and protecting any intellectual property in new products should be a consideration for Australian businesses with an export focus.
Reversing the Decline in Australian Originating Patent Filings
The new global economic environment warrants that Australian businesses and innovators place greater importance on intellectual property. The Australian IP Report from 2024 confirms the long term trend of overall decline in Australian originating patent applications, which recent statistics have indicated has been decreasing year after year. Since 2018, there has been a 10% decline in Australian Provisional Application filings with 2022 being the worst year.
To remain viable, Australian companies need to consider the advantages of patent protection and change their views on protecting their intellectual property for competitive advantage.
Role of Australian Government Support for IP Strategies
The Australian government does provide some assistance in the form of Export Market Development Grants (EMDG) for supporting and subsidising foreign patent filing activity.
In the past, tax incentives such as the Research and Development (R&D) Grants and proposals to introduce a UK-style Patent Box regime were also considered helpful. However, over the years any direct incentives via the R&D tax concession for direct patenting activity have been extinguished. The Patent Box concessions which were meant to support patenting activity in key focus industries were never legislated for various political reasons.
Looking Ahead and Future Opportunities
The evolving tariff situation presents opportunities for Australian businesses. Australian businesses that want to truly innovate should be proactive in identifying and protecting their intellectual property assets.
It is more important than ever for the Australian government and Australian industry to support and invest in robust IP strategies. Good innovation with a sound IP protection strategy can at least mitigate the impact of potential tariffs and reward Australian innovation on the global stage.
Now is the ideal time to reassess and adapt. If you want to learn more about global patenting strategies from an Australian perspective, one of our attorneys would be glad to discuss with you. Contact us on mail@mbip.com.au to connect with an IP expert specific to your technical area or sector.
