Select Committee on Regulatory Reform Second Report


2 Introduction

2. On 10 November 2003 the Government laid before Parliament a proposal[1] for the Regulatory Reform (Patents) Order 2004 in the form of a draft of an order and an explanatory memorandum from the Department for Trade and Industry.[2]

3. The purpose of the proposed order is to amend the Patents Act 1977 (the 1977 Act) in seven separate respects.

  • Proposal A would amend the provisions of the 1977 Act insofar as they relate to the date of filing of a patent application at the Patent Office.
  • Proposal B would amend the provisions of the 1977 Act insofar as they relate to the formalities of filing an application.
  • Proposal C would amend the procedures provided for by the 1977 Act where applicants are offered an opportunity to remedy defects in their application which have been discovered during the course of the preliminary examination or the substantive examination.
  • Proposal D would provide for a limited right of reinstatement of a patent application where it has been terminated because a deadline has been missed.
  • Proposal E would amend provide more flexibility in the time in which an applicant may file an application which claims priority from an earlier application.
  • Proposal F would reform the regime applying to patent applications whose contents, if disclosed, would prejudice national security.
  • Proposal G would remove a burden and an anomaly which the Department claims presently exists between the signature formalities required to make a transaction in a patent in Scotland and elsewhere in the UK.

4. The House has instructed us to examine the overall proposal against the criteria specified in Standing Order No. 141(6) and then, in the light of that examination, to report whether the Government should proceed, whether amendments should be made, or whether the order should not be made.[3]

5. Our discussion of matters arising from our examination is set out below. Where a criterion specified in Standing Order No. 141(6) is not discussed in the report, this indicates that we have no concerns to raise about that criterion.

6. In the course of our examination, we requested further information from the Patent Office about a number of issues relating to the proposal on two occasions. The Patent Office's responses are reproduced at Appendix B and Appendix L. In addition, we sought the views of a number of respondents to the original consultation as to whether the proposal laid before the House had adequately reflected the concerns they had expressed in their responses. The submissions received in response to these requests are also reproduced as appendices to this Report.

Expiry of period for Parliamentary consideration

7. The Regulatory Reform Act provides that "where a document [i.e. a proposal for an order] has been laid before Parliament under section 6(1) [of the Act], no draft of an order under section 1 to give effect (with or without variations) to proposals in that document shall be laid before Parliament until after the expiry of the period for Parliamentary consideration".[4] The period for Parliamentary consideration is defined as sixty days beginning on the day the proposal was laid before Parliament, leaving aside from that reckoning "any time during which Parliament is dissolved or prorogued or during which either House is adjourned for more than four days".[5]

8. In preparing a draft order to give effect to the proposal, a Minister is required to "have regard to any representations made during the period for Parliamentary consideration and, in particular, to any resolution or report of, or of any committee of, either House of Parliament with regard to the document [i.e. the proposal]."[6]

9. The proposal for the order was laid on 10 November 2003. Parliament was prorogued between 21 and 25 November 2003, and was adjourned between 19 December 2003 and 4 January 2004. The 60-day period for Parliamentary consideration expired on Friday 30 January 2004.

10. We have been obliged to make this report to the House after the expiry of the period for Parliamentary consideration. The delay in reporting has been necessitated by the need to seek further information from the Department in the light of representations made to us by respondents to the initial consultation. In order to prepare the information we requested, the Department convened a meeting with representatives of interested parties on 21 January. Following that meeting, a response was sent to the Committee on 23 January.[7] In order to take that response into account, the preparation and consideration of a draft report were necessarily deferred past the 30 January deadline.

11. In order to complete the scrutiny of this large and complex proposal and to prepare a report for the House, it was therefore necessary to report after the expiry of the 60-day period. While we have hitherto always completed first-stage scrutiny of proposals within the 60-day period, and will use our best endeavours to do so in the future, we consider that in this case no adverse consequences flow from our failure to complete this stage of our scrutiny within the statutory period.

Structure of report

12. The report outlines the purpose of the proposal, its background and its territorial extent, and analyses it against the criteria set out in Standing Order No. 141(6).

13. Since the proposal consists of amendments to seven separate areas of patent law, it is more convenient for our analysis of the proposal against the criteria set out in our standing order to be structured in two parts. First, the effect of each of the individual proposals is described, followed by our assessment of each against the criteria which apply to the individual provisions of a proposal. Then the proposal is assessed against the remaining criteria, which apply to the proposal as a whole.


1   Copies of the proposal are available to Members of Parliament from the Vote Office and to members of the public from the Department. The proposal is also available on the Cabinet Office website: http://www.cabinetoffice.gov.uk/regulation/act/proposals.htm  Back

2   The Patent Office, an executive agency of the Department of Trade and Industry, is promoting the proposal. Unless otherwise stated, all references to 'the Department' are to the Patent Office. Back

3   Standing Order No. 141(2) Back

4   Regulatory Reform Act 2001, section 8(1) Back

5   Ibid., section 8(2) and (3) Back

6   Ibid., section 8(4) Back

7   Appendix J Back


 
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Prepared 17 February 2004