CIPO fee increases and Patent Rules changes

Summary#

This is a proposal from the Canadian Intellectual Property Office (CIPO) to change the Patent Rules and related fee schedules. It would raise most CIPO fees by 25%, keep discounted patent fees for small applicants unchanged, and expand the small-entity test from 50 to fewer than 100 employees; most changes would take effect on January 1, 2024.

What it does#

• Raises most patent, trademark, industrial-design and copyright fees by 25% above the planned 2024 levels.
• Keeps the existing reduced patent fees for qualifying small applicants (no 25% rise for those small-entity patent fees).
• Expands the patent “small entity” definition from 50 employees to fewer than 100 employees.
• Caps some very small (“low-materiality”) fees so they stay under $150 after rounding.
• Exempts some recently added fees (for example, certain excess-claims fees) from the 25% increase.
• Makes a number of technical or “housekeeping” fixes to the Patent Rules to clarify how certain provisions apply.
• Most changes are proposed to come into force on January 1, 2024; a few housekeeping items would come into force on registration.
• CIPO says the fee changes would raise about $284.7M (present value) in revenue over 10 years and produce a net present-value benefit of about $222.2M.

Who's affected#

• People and businesses that use CIPO to get IP rights: patent applicants, trademark filers, industrial-design filers and copyright filers.
• Foreign applicants in particular: CIPO notes that over 70% of its clients are from outside Canada, and most of the extra revenue would come from foreign users.
• Small and medium-sized enterprises: some will benefit because more firms would qualify for small-entity patent discounts under the new fewer than 100 employee rule. Universities remain eligible under the small-entity rules.
• IP professionals and agents who file on behalf of clients; they will need to update fee calculations and client billing.
• The Canadian Intellectual Property Office itself: the changes are intended to stop a forecasted shortfall and fund IT and service improvements.
• For domestic distribution, the analysis shows the largest billed impacts would fall on Ontario ($27.9M), Quebec ($12.9M), British Columbia ($9.8M) and Alberta ($7.6M) over the analysis window.

Why it matters#

• CIPO says it faces a structural funding shortfall and could run out of money by September 2024 unless it raises fees or finds other funding. Without action, CIPO warns of service cuts, longer delays, or the need for taxpayer support.
• The extra revenue is intended to pay for critical IT upgrades, reduce backlogs, and rebuild financial reserves (CIPO cites a client prepayment liability of about $100M that it wants to cover).
• For users: fees would be higher when they apply for or maintain IP rights in Canada, but small patent filers get protection from the increase and more firms would qualify as “small.”
• The government sought comments (online consultation launched March 31, 2022 for 30 days). Responses were mixed: many accepted the need for higher fees if service improves, while others asked for phased increases or simpler rounded fees.

If you regularly use CIPO services or plan to file for IP protection in Canada, watch for the final rules and the official coming-into-force notice so you can plan for higher fees or check whether you now qualify as a small entity.