Select Committee on Regulatory Reform Second Report


Appendix G

Letter from QinetiQ to the Clerk of the Committee

Proposal for the Regulatory Reform (Patents) Order 2004: request for further information

I am writing to express extreme concern with the text enclosed with your letter of 12 December to Ms Jennifer Carlton at Intellect concerning the proposed amendments to Sections 22 and 23 of the Patents Act 1977. This response is made on behalf of QinetiQ but I believe others in the defence industry have similar concerns.

One would assume from the title of the order that the proposed amendments are to reduce the administrative burden on patent applicants, but the effect is in many respects quite the opposite.

At present the Patent Office screens all patent applications for matter the publication of which might be prejudicial to the defence of the realm or the safety of the public. Section 22 provides for the comptroller to make orders prohibiting publication or further communication of such material. If such an order is made the matter is reviewed by the Secretary of State (in most cases the Secretary of State for Defence) as a result of which the order may be maintained or cancelled. We understand that at least half of the orders imposed by the Patent Office are cancelled when referred to the Secretary of State.

Section 23 provides that no application for patent protection outside the UK may be made by a person resident in the UK unless either (a) an application has been made within the UK at least 6 weeks earlier and no prohibition order has been made; or (b) a permit is obtained from the Patent Office.

We are aware that Section 23 is burdensome to applicants whose inventions are never likely to give rise to a prohibition order and also to the Patent Office in issuing permits. We would therefore support a proposal to limit the application of Section 23 to inventions in certain defined fields. Any definition would catch applications which turn out to be unclassified, but in such cases the applicant would be in no worse position than under the current law and all other applicants would benefit.

However the changes to Section 22 are far more onerous than the present law. Applicants would have to file in an "approved manner" applications many of which would in the end attract no prohibition order. We are advised that such applications would need to be filed by post or hand, removing the option to file by FAX or, in future, electronically. The implication of this is loss of at least one day of "priority" which may seem trivial, but could result in invalidity of the eventual patent.

Worse still, under proposed Clause 22(1C) it would be an offence to communicate to any person (technically including the Secretary of State for Defence) any information included in such a patent application even if unclassified or even cleared for publication by MOD unless consent of the comptroller is obtained. This would apply in all such case unless or until a decision not to impose a secrecy order is communicated to the applicant, whereas at present a more limited restriction applies only if a prohibition order is made. In effect the new provision is "guilty until proven innocent" and will impose significant burden on both applicants and the comptroller.

The implication of this would be to prevent the common practice of filing a patent application a few days (often 1 day) before publication or disclosure to a fellow defence contractor. The effect of the proposals is that filing a patent application could turn an otherwise innocent publication or disclosure into a criminal offence.

In our view use of the Patent Act to control publication of information prejudicial to the defence of the realm is in any event inappropriate. Such control should be based on the Official Secrets Acts and Export Controls rather than the originator's decision to file a patent application. However given that such provisions exist in the present act we believe the order should be limited to removing administrative burden and not creating a new burden. Hence the amendments to Section 22 should be dropped, but those to Section 23 should proceed, referring of course to the present Section 22. Proposed Section 23A should be retained in modified form to make clear that a person may seek confirmation that a proposed application is not caught by Section 23 even in cases of doubt.

5 January 2004


 
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