Benefits of protecting
your IP in Australia
Patent enforceability
Australia has a strong domestic economy
that is underpinned by a large and wealthy
middle class. This demographic ensures we
have a diverse consumer market that is always
looking to consume innovative products.

Australia is also uniquely positioned in the
Asia-Pacific with ties not only to traditional
economic powers such as the US and Europe
but also to the emerging Asian markets. To help
maximise the advantages of our geographic
location, successive Australian governments
have entered into bilateral free trade
agreements with many nations including the
US, China, India, Japan and Korea. Australia is
also a member of the Regional Comprehensive
Economic Partnership Agreement which
accounts for 30% of the world’s population
and 30% of the world’s GDP.

Early adopters of technology
Australia has a robust legal system that ensures
the enforcement of Intellectual property rights.

Our tech-hungry culture also takes advantage of
innovation. Investors and global tech developers know
that Australian consumers are early technology adopters
who are open to change.

Sovereign risk
Our major political parties support the maintenance
of a patent system and as such, there is no sovereign risk
for rights holders.

A free society with good governance
Australia is founded on strong institutions. Our regulatory
environment, rule of law and lack of corruption are all
highly rated in World Bank rankings. In Australia, fair
and effective governance is seen as the foundation for
economic growth and a free society. Good governance
generates confidence among major investors. It also
makes Australia a secure base for multinationals that
want to expand or set up new operations in the Asia-
Pacific region.

Relative cost of obtaining patent
protection In comparison to many other jurisdictions, the cost
of obtaining patent protection is quite reasonable.

In addition, Australia is a member of the GPPH and
as such, allowance in Australia can facilitate prosecution
in a number of other jurisdictions.

The Pharmaceutical Benefits Scheme
The Pharmaceutical Benefits Scheme is an Australian
government initiative that subsidises medicines in
Australia to make them available to the entire population.

This increases the possibility of the IP rights holder
obtaining reimbursement in Australia.

Pharmaceutical patent term extension
The Australian patent system provides for patent term
extension of up to 5 years in circumstances where there
is regulatory delay in achieving marketing approval.

This increases the prospects of the patentee receiving
reimbursement. 02 Intellectual Property Protection in Australia



Data exclusivity and clinical trials
Our TGA provides for a 5 year data exclusivity period
for data submitted in order to obtain regulatory
approval; meaning that there is little downside to the
patentee in seeking regulatory approval in Australia.

Trade mark
Trade mark registrations in Australia can claim a relatively
broad range of goods and services, and applications
can be based on a genuine intention to use the mark
in relation to those goods/services, (e.g. “clothing”).

In other jurisdictions, the goods/services must be
restricted to specific goods/services (e.g. “pants and
jackets”) and sometimes actual use on each item must
be shown prior to registration.

Comparable GDP
The comparable GDP per capita shows that Australia
is relatively on par with the US economically.

• GDP per capita US - $59,939
• GDP per capita AU - $53,831
Australia as a test market
Australia is a good test market
• Australia is a low cost market to test strategies
and negotiate deals before engaging in worldwide
litigation. • Australia is ranked in the top 15 countries by GDP.

• Australia has an educated, affluent population
of 23.9 million, hungry for new experiences and
products. With a predominantly Western culture,
it’s a large enough test bed and small enough market.

• Australia also offers a ready and relatively contained
infrastructure—media, distribution channels, talent—
and some privacy. Testing products in Australia has
been referred to as “Undercover Down Under” – there
is a sentiment that if a product flops in the ‘outback’
and no one hears about it, did it really happen?
• Examples of companies that have tested products /
services in Australia:
Tesla Powerwall
Industries in Australia
• Mining
• Manufacturing
• Agriculture
• Healthcare
(Pharmaceuticals/ Medtech)
• Telecommunications
• Food
Innovation in Australia
Australia is positioned among the top most
innovative economies in the world
• In the two-year period ended 30 June 2021, over half of
all businesses (52%) reported being innovation-active.

• Of the innovation-active businesses, 36% collaborated
and/or had a fee-for-service arrangement for innovation.

Global Innovation Index (2022)
64.6 61.8
61.6 59.7
58.0 57.8
SWITZERLAND USA
SWEDEN UK
NETHERLANDS SOUTH
KOREA 57.3
57.2 56.9
55.9 SINGAPORE
GERMANY FINLAND
DENMARK 47.1
McCafe opened in Australia before anywhere else
in the world
Facebook uses Australia to test new technologies
prior to a wider population e.g., videos without
sound, ‘rooms’ in messenger
Spotify frequently tests new features in Australia.

AUSTRALIA The above diagram shows the most innovative economies in the
world, based on analysis from the WIPO Global Innovation Index.

Phillips Ormonde Fitzpatrick 03