Intellectual property law: a year in review

The year 2019 was significant for Canada’s intellectual property legislation, with numerous changes that will have wide-ranging implications on businesses that rely on IP to grow. Patent and trademark legislation was dramatically overhauled for better alignment with international practices and to attempt to conform to international treaty obligations. The Canadian government has committed $30 million for the creation of a Patent Collective pilot program. We also saw unique means for protection of Indigenous peoples’ traditional knowledge and expression.  

Changes to trademarks  
After years of public consultations and revisions, the new Trademarks Act and Regulations came into force in June 2019. Perhaps the most significant change in the filing process is the removal of the “use” requirement for registration, which will mean more activity from rights’ squatters (aka “trademark trolls”). As we have already seen an increase in such activity, trademark owners will need to file more aggressively to protect their rights.  

Other notable changes include: Canada’s accession to the Madrid System, a system for divisional applications, adoption of the Nice classification and an overhaul of fees.  

A Madrid application allows filing of a single trademark application through the World Intellectual Property Organization, which can designate up to 119 countries, including Canada. Filing a divisional application allows for problematic portions of an application to be carved out and dealt with separately. Adoption of the Nice classification will require re-classification of goods and services according to international convention. And the fee overhaul has seen existing fees generally increase, while new fees have been introduced based on the number of Nice classes. Applicants will, therefore, need to be more cognizant of which goods and services are selected when filing their trademark applications. 

Changes to patents  
Amendments to the Patent Act and Rules came into force in October 2019, with significant changes made to patent prosecution procedures. Pro-patentee changes include: simplified filing procedures, the option to correct “obvious errors,” simplified amendment after allowance procedures and mandatory notification from the Patent Office before an application goes abandoned.   

Other changes include: a “due care” requirement for reinstating certain abandonments, shortened examination and response deadlines, an “unintentional” standard for late national phase entries and increased third-party rights when an application goes abandoned and is then reinstated. Notably, file wrapper estoppel was also introduced earlier in the year. As such, heightened diligence will be required to avoid abandonment of a patent or application, as well as to ensure that rights are not extinguished or limited due to statements made during prosecution. 

Patent Collective pilot program 
The Government of Canada has announced a $30-million commitment over four years to create a Patent Collective. When implemented, this may offer value to companies wishing to maximize exploitation of their intellectual property. 

Indigenous peoples’ rights 
In 2019, there was an attempt to merge western and Indigenous worlds in a novel approach to protecting copyright. A written western contract was drafted to vest legal rights to an artwork in the artwork itself and was then ratified through Indigenous traditions. This is the first time a Crown Corporation has ratified a legally binding contract in such a manner. The artwork is known as the Witness Blanket, named for bearing more than 800 artifacts related to residential schools. There may be significant implications in this precedent for businesses seeking ways to protect or otherwise respect Indigenous rights. 

The federal government has also created a grant program to support Indigenous peoples’ IP awareness and participation in development and building of law and policy related to protecting Indigenous peoples’ traditional knowledge and expression.  

Looking ahead 
In June 2019, the Parliament’s Standing Committee on Industry, Science and Technology recommended changes to Canada’s copyright regime. Recommendations include: increasing term of copyright from 50 to 70 years from an author’s death if the copyright has been registered, entitling visual artists to a royalty payment each time their work is resold publicly and making the list of what constitutes “fair dealing” illustrative as opposed to concrete. We may see these changes come into force in the next few years. 

 Meika Ellis is an associate lawyer in Ridout & Maybee LLP’s Ottawa office where her practice covers most areas of intellectual property law. 

Giselle Chin is an associate lawyer in Ridout & Maybee LLP’s Burlington, Ont. office where she assists with IP for clients ranging from individual inventors and entrepreneurs to large corporations.