PATENTS BILL

Order for Second Reading read. 5.30 pm

The Minister for Law (Prof. S. Jayakumar): Sir, I beg to move, "That the Bill be now read a Second time."

Sir, this Bill introduces a local patent system for Singapore. It will repeal some existing legislation like the Registration of United Kingdom Patents Act and the Patents (Compulsory Licensing) Act. The new system of patent registration which this Bill will provide is vastly different from the current system which dates back to 1937. Therefore, the new system will have a wide-ranging impact.

Let me first list out the drawbacks under the present system. Presently, patents are granted through a process of re-registration in Singapore after the applicant has first obtained a United Kingdom patent or a European patent designating the United Kingdom as the country of protection. The patent must be registered in Singapore within three years from the date of issue of the patent in the United Kingdom.

The first disadvantage is that the preparing and the filing of the application from here, Singapore, long distance is costly, cumbersome and time-consuming. Secondly, where the applicant does not wish to have patent protection in the United Kingdom, he will incur considerable needless expense. Thirdly, a Singapore patent is valid only if the corresponding UK patent remains in force. Fourthly, as I will elaborate further, the present system does not allow for the right of priority which flows from membership of the Paris Convention. Sir, these drawbacks are, of course, disincentives to entrepreneurs, investors and others engaged in R&D and product development in Singapore. The new system will address these and other concerns.

Apart from these disadvantages, let me make a general point, ie, we live in a global economy where trade is driven by desire, potential for profit, which in turn is determined by the element of competitiveness. Inventions and innovations sharpen this competitive edge. More countries are therefore improving their industrial property systems, particularly their patent systems, to encourage invention and innovation, and to assist in the recoupment of continuing investment costs for development of products and services. The proposed new patent system will create such a favourable climate for innovation, for developing research and innovative capabilities, and advance technological innovation in industry.

Let me now highlight the main features of this new system. First, a patent will be granted and will only be valid if the invention is new, if it involves an inventive step and be capable of industrial application. These requirements are consistent with international standards.

In order to ascertain patentability, an invention has to undergo a search and examination process. We have decided to avoid substantial investment in building up full-fledged search and examination capabilities in Singapore, and therefore search and examination reports furnished by designated Foreign Patent Offices and International Search and Preliminary Examinations Authorities under a treaty known as the Patent Cooperation Treaty will be accepted.

Under this new patent system, Singapore will accede to certain international treaties such as the Patent Cooperation Treaty, the Budapest Treaty and the Paris Convention. How will this benefit us? It will benefit us in the following ways:

By acceding to the Patent Cooperation Treaty, the Singapore Registry of Patents will have access to international search and preliminary examination reports prepared by various international Search and Preliminary Examination Authorities under this Treaty.

By acceding to the Budapest Treaty, the process of patenting an invention which involves a micro-organism or the use of a micro-organism will be much easier. The deposit of a micro-organism with any of the 25 designated International Depository Authorities will be sufficient for patent application in any of the Budapest Treaty countries.

By becoming a party to the Paris Convention, a local applicant may within 12 months of his first application in Singapore, apply for protection in any Convention country. This later application would be treated as if it had been filed on the same day as the first application in Singapore. Apart from the obvious convenience, the applicant will also obtain priority in dating his application.

Other important matters covered by the Bill include disputes concerning the validity of patents. Under the present system, these disputes are heard in the High Court. Under the new system, the disputes will be decided by the Singapore Registry, thus reducing litigation costs. Where the validity is challenged on technical grounds, the patent may be re-examined by a foreign patent office. The Singapore Registry will then decide on the validity based on the re-examination report and with assistance, if required, of a scientific advisor selected from a list of experts. Any appeal against the Registrar's decision will be to the High Court. The Bill provides for the appointment of a panel of scientific advisors to assist the Court and the Registrar of Patents in proceedings under the Bill.

Sir, the repeal of the Registration of UK Patents Act as well as the Patents (Compulsory Licensing) Act, however, will not affect rights already granted under the current law. An applicant who has obtained a patent in the United Kingdom will be given two years from the time the Act comes into operation to apply for re-registration of his patent in Singapore. As for pending applications, an applicant who has a pending application in the United Kingdom will have 12 months to exercise an option to convert that application to a national application in Singapore.

Sir, the Bill naturally confines itself to matters of policies and principles. Questions of detail and procedural matters such as fees, publication of documents and information about such documents, time limits for doing things, etc, will be covered by Regulations.

It will be noticed, Sir, that this law reform measure has many technical aspects and rather complicated provisions. In my view, we will benefit from the views and representations from outside bodies, and I therefore intend to submit it to a Select Committee so that experts in the field and other interested parties will have the opportunity to make suggestions on how to improve the provisions in the Bill.

Sir, I beg to move.

Question proposed.

Mr Zulkifli bin Mohammed (Jalan Besar GRC): Sir, I rise in support of this Bill which revises our existing patent system and I am confident that many interested parties can now sigh a relief.

Sir, as has already been explained by the Minister, the existing system is costly, time-consuming and cumbersome, particularly for local inventors. In addition, it also tends to stifle creativity. On the other hand, there will be distinct advantages when the revised system is put in place in due course.

Firstly, Singapore need not commit scarce resources in having to invest heavily in building up a full-fledged domestic system with search and examination capabilities;

Secondly, local applicants will save time and effort;

Thirdly, indigenous patent expertise will develop over time; and

Fourthly, it will make it easier for local inventors and foreign companies to obtain patents without requiring the full documentation facilities and large technical staff of developed countries.

In summary, Sir, the new system will be a major reform Bill. It will pose a major challenge to the legal and business community. It will also allow local investors and encourage MNCs to use Singapore as a R&D centre. In view of the technical complexities involved, I welcome the Minister's decision to commit the Bill to a Select Committee.

Sir, I support the Bill.

Question put, and agreed to.

Bill accordingly read a Second time.

Resolved,

That the Bill be committed to a Select Committee consisting of Mr Speaker as Chairman and such Members as the Committee of Selection may nominate. - [Prof. Jayakumar].