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Th 6, 09/04/2021 | 14:50 CH
Innovation Perseveres: International Patent Filings via WIPO Continued to Grow in 2020 Despite COVID-19 Pandemic
International patent applications via WIPO in 2020 continued to grow amid the COVID-19 pandemic’s vast human and economic toll, with leading users China and the U.S. each marking annual growth in filings.
International patent applications filed via WIPO’s Patent Cooperation Treaty (PCT), which is one of the widely used metrics for measuring innovative activity, grew by 4% in 2020 to reach 275,900 applications – the highest number ever, despite an estimated drop in global GDP of 3.5%.
China (68,720 applications, +16.1% year-on-year growth) remained the largest user of WIPO’s PCT System, followed by the U.S. (59,230 applications, +3%), Japan (50,520 applications, -4.1%), the Republic of Korea (20,060 applications, +5.2%) and Germany (18,643 applications, -3.7%)
(Annex 1 PDF, Annex 1).
Beyond the top 10, other countries that saw strong growth include Saudi Arabia (956 applications, +73.2%), Malaysia (255 applications, +26.2%), Chile (262 applications, +17.0%), Singapore (1,278 applications, +14.9%) and Brazil (697 applications, +8.4%). Longer term trends point to the globalization of innovation, with Asia accounting for 53.7% percent of all PCT filing activity, versus 35.7% 10 years ago.
Use of the international trademark system dipped, but only slightly. This was expected given that trademarks tend to represent the introduction of new goods and services – both of which slowed as a result of the global pandemic. International trademark applications via WIPO’s Madrid System for the International Registration of Marks decreased by 0.6% to 63,800 in 2020 - the first decline since the global financial crisis of 2008-2009.
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The economic fallout from the pandemic hit demand for the protection of industrial designs via the Hague System for the International Registration of Industrial Designs. Demand fell by 15% in 2020 to 18,580 designs – the first decline since 2006.
Worldwide demand for IP rights, which help innovators and enterprises take their ideas to the market, has historically and broadly tracked global economic performance. However, growth over the past decade in the use of WIPO’s global IP services, most notably the PCT, has outperformed global GDP growth.
International patent system (Patent Cooperation Treaty – PCT)
Top PCT filers
For the fourth consecutive year, China-based telecoms giant Huawei Technologies, with 5,464 published PCT applications, was the top filer in 2020. It was followed by Samsung Electronics of the Republic of Korea (3,093), Mitsubishi Electric Corp. of Japan (2,810), LG Electronics Inc. of the Republic of Korea (2,759) and Qualcomm Inc. of the U.S. (2,173) (Annex 2 PDF, Annex 2). Among the top 10 filers, LG Electronics reported the fastest growth (+67.6%) in the number of published applications in 2020 and as a result it moved up from 10th position in 2019 to 4th position in 2020.
The University of California with 559 published applications continues to head the list of top applicants among educational institutions in 2020. Massachusetts Institute of Technology (269) ranked second, followed by Shenzhen University (252), Tsinghua University (231) and Zhejiang University (209) (Annex 3 PDF, Annex 3). The top 10-university list comprises five universities from China, four from the U.S., and one from Japan.
Among fields of technology, computer technology (9.2% of total) accounted for the largest share of published PCT applications, followed by digital communication (8.3%), medical technology (6.6%), electrical machinery (6.6%), and measurement (4.8%) (Annex 4 PDF, Annex 4).
Six of the top 10 technologies recorded double-digit growth in 2020, with audio-visual technology reporting the fastest rate of growth - +29.5%, compared to 8.7% the previous year - followed by digital communication (+15.8%), computer technology (+13.2%), measurement (+10.9%) semiconductors (+10.1%) and pharmaceuticals (+10%).
International trademark system (Madrid System)
U.S.-based applicants (10,005) filed the largest number of international trademark applications using WIPO’s Madrid System in 2020, followed by those located in Germany (7,334), China (7,075), France (3,716) and the U.K. (3,679) (Annex 5 PDF, Annex 5).
Among the top ten origins, China (+16.4%) is the only country to record double-digit growth in 2020. The U.K. (+5.1%) and Italy (+3.6%) also reported notable growth. Outside the top ten origins, the Republic of Korea (+13.4%), Canada (+94.4%), and Denmark (11.5%) saw the strongest growth. In contrast, France (-16.3%) and Turkey (-15.4%) saw sharp declines.
Top Madrid filers
Novartis AG of Switzerland with 233 Madrid applications heads the list of top filers in 2020. WIPO received 104 more applications from Novartis in 2020 than in 2019, elevating it from 3rd position to the top spot. Novartis AG was followed by Huawei Technologies of China (197), Shiseido Company of Japan (130), ADP Gauselmann of Germany (123) and L’Oréal of France (115). L’Oréal – the top filer in 2019 – moved down to 5th position as it filed 78 fewer applications in 2020 (Annex 6 PDF, Annex 6).
The most-specified class in international applications received by WIPO was Class 9 (computer hardware and software and other electrical or electronic apparatus, etc.) that accounted for 10.6% of the 2020 total. It was followed by Class 35 (services for business; 8.1%) and Class 42 (technological services; 7.1%). Among the top 10 classes, Class 10 (surgical, medical, dental and veterinary apparatus, etc.; +21.1%) and Class 5 (pharmaceuticals and other preparations for medical purposes; +9.2%) saw the fastest growth.
International design system (Hague System)
Despite a substantial decrease, Germany remained the largest user of the international design system, with 3,666 designs (Annex 7 PDF, Annex 7). The U.S. (2,211 designs) moved up from 6th position to become the second largest user of the Hague System in 2020. Switzerland (1,944 designs), the Republic of Korea (1,669) and Italy (1,231) are ranked third, fourth and fifth, respectively. Among the top ten origins, the U.S. (+62.7%), Turkey (+34.7%) and China (+22.7%) are the only three countries to record growth in 2020.
Top Hague filers
For the fourth consecutive year, Samsung Electronics of the Republic of Korea with 859 designs in published applications headed the list of top filers, followed by Procter & Gamble of the U.S. (623), Fonkel Meubelmarketing of the Netherlands (569), Volkswagen of Germany (524) and Beijing Xiaomi Mobile Software of China (516). For the first time a company from China is among the top five applicants. Lampenwelt GMBH of Germany –ranked tenth with 276 designs – is a new user of the Hague System (Annex 8 PDF, Annex 8).
Designs related to means of transport (10.1%) accounted for the largest share of total designs in 2020; followed by recording and communication equipment (8.8%); packages and containers (8.4%); furnishing (7.4%); and lighting apparatus (6.9%). Among the top 10 classes, pharmaceutical and cosmetic products (+42.6%) saw sizeable growth in 2020.
Domain name disputes
Trademark owners in 2020 filed a record 4,204 cases under the Uniform Domain Name Dispute Resolution Policy (UDRP) with WIPO’s Arbitration and Mediation Center, moving past the 50,000 mark since the start of this WIPO service (Annex 9 PDF, Annex 9). It was also a record year for WIPO Mediation and Arbitration cases involving patents, trademarks, digital copyright, and other types of disputes involving technology.
With a greater number of people spending more time online during the COVID-19 pandemic, trademark owners are taking up this WIPO service not only to reinforce their online presence, but also to offer authentic content and trusted sales outlets to Internet users across varied business areas (Annex 10 PDF, Annex 10). Representing 75% of WIPO’s generic Top-Level Domain (gTLD) caseload, .COM demonstrated its continuing primacy.
WIPO UDRP cases in 2020 involved parties from 127 countries, up from 122 in 2019. The U.S., with 1,359 cases filed, France (786), the U.K. (411), Switzerland (256) and Germany (235) were the top five filing countries (Annex 11 PDF, Annex 11).
WIPO also offers dispute resolution services for over 75 country code Top-Level Domains, such as .CN (China), .EU (European Union) and .MX (Mexico).
Outside the area of domain name disputes, the WIPO Center in 2020 received 77 mediation and arbitration cases in different areas of IP, up 24% from the previous year’s caseload (Annex 12 PDF, Annex 12). These WIPO procedures allow parties from around the world to resolve their cases without having to go to court. Patent-related disputes remained the most common in WIPO’s caseload, followed by trademark, information and communications technology (ICT), and copyright disputes (Annex 13 PDF, Annex 13).
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