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September 2008
 
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Welcome to the 22nd edition of Spruson & Ferguson's Biotech E-news – a bi-monthly breakdown of important IP issues in the Australian biotech industry including expert analysis and practical advice to advance your business.

It is our intention that this e-Newsletter will provide useful news and information for our clients and associates. Please feel free to send us your feedback, particularly suggestions for topics you would like to see addressed in future issues to BiotechEnews@sprusons.com.au

NEWS IN BRIEF
BioFirst Commercialisation Awards

The BioFirst Commercialisation Award is an annual event recognising life science-based companies that are able to obtain great business success in their field through the assistance of the Department of State and Regional Development’s BioBusiness programs.

This year Special Phage Holdings is the recipient based on a cutting edge medical treatment that relies on bacteriophages (bacteria-eating viruses) to fight bacterial infections. From the development and use of antibiotics, there has emerged the problem of antibiotic-resistant bacteria. The annual cost in treating antibiotic infections in Australia alone is estimated to be over a billion dollars.

Source: http://www.ats.e-newsletter.com.au/

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Changes in New Zealand Patent Law and Practice

The New Zealand Patent Bill 2008, was recently tabled in Parliament. The Bill is proposed to replace the current New Zealand Patents Act 1953.

One of the purposes of the Bill is to align New Zealand patent law with that of most countries, and the changes will inevitably affect the patentability of inventions within various fields of technology including biotechnology/pharmaceuticals.

Some of the aspects in the Patents Bill 2008 that differ from New Zealand’s current law would result in the raising of the bar of patentability for inventions which we consider may have a direct impact on our clients with New Zealand pending applications. We list a few of the more significant changes below.

  • The novelty of an invention will now be assessed against prior written or oral description or use anywhere in the world rather than only on such publications or use in New Zealand as is currently the case.
  • The Intellectual Property Office of New Zealand will be able to examine patent applications for inventiveness. As it currently stands, inventiveness is only considered during opposition proceedings to refuse an application or during revocation proceedings.
  • Statutory exclusions from patentability have been introduced, such as methods for the medical treatment of humans by surgery or therapy and methods of diagnosis practised on human beings. Previously, such exclusions arose out of New Zealand case law.
  • Where an invention involves a micro-organism, there will now be a requirement to deposit the micro-organism with a prescribed depositary institution on or before the filing date of the application.

The proposed new Act should provide greater certainty to patent applicants in terms of patentable subject matter and the more comprehensive examination process should result in a higher level of confidence in the validity of granted patents.

Given the current legislative timetable, it is unlikely that the Bill will be considered by Parliament until 2009.

We will advise of relevant developments in future newsletters.

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Joint Technology Project Grants with South Korea

The NSW Government has created a new grant scheme, called NSW-Gangwon Technology Collaboration Grants to bolster technical collaborations with South Korea and has called for nominations.

Grants under this scheme are intended to provide up to $100,000 per annum to assist joint projects involving researchers from NSW and the South Korean province of Gangwon in a wide variety of areas such as medical devices, information and communications technology (ICT), advanced materials, nanotechnology and biotechnology.

This grant scheme is open to any interested party including companies, universities, research organisations or technical institutes. Application forms and submission guidelines are available from the NSW-Gangwon Technology Collaboration website: www.business.nsw.gov.au/gangwon. The first step in the application process is to file a preliminary application which is due by 30 September 2008. The website will post these preliminary applications to assist NSW and Gangwon researchers in identifying complementary researchers. The deadline for final applications is 15 November 2008.

Source: http://www.ausbiotech.org

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REVIEW OF PATENTABLE SUBJECT MATTER IN AUSTRALIA

The Advisory Council of Intellectual Property (ACIP), an independent body appointed by the Australian Government to advise the relevant Minister on IP issues, is currently conducting a review into Patentable Subject Matter. This is a topical issue at the moment in the area of biotechnology, for example, as it involves stem cell research and patenting of genetic material.

In Australia, the test to determine whether an invention constitutes patentable subject matter includes whether the invention is a ‘manner of manufacture’ and which is not ‘generally inconvenient’. In a 2004 review, the Australian Law Reform Commission (ALRC) “recognised the value of a flexible test for patentable subject matter, but found that the manner of manufacture test was ambiguous and obscure” particularly the meaning of the phrase ‘generally inconvenient’. The ALRC concluded their review by recommending that the ‘manner of manufacture’ test be reviewed.

On that basis, the Minister for Innovation, Industry, Science and Research requested that ACIP conduct a review of patentable subject matter, including the “appropriateness of the 'manner of manufacture' test as the threshold requirement for patentable subject matter and the historical requirement that an invention must not be 'generally inconvenient'”.

As a first step, ACIP has released an Issues Paper (which can be found as a link at the website below) to provoke discussion and invite submissions from interested parties. The Paper focuses on three main areas of the test, which are:

  • its breadth and whether it allows patents in unsuitable subject matters;
  • whether it is too flexible and unpredictable, and
  • whether its structure and wording is confusing.

In the Paper, ACIP recognises that some in the community have a concern regarding the subject matter that can be patented. One perception was that “patents are being granted which hinder innovation, investment and public access to new technologies, rather than promote such activities”. ACIP noted that would have implications in various areas of technology, including software, business methods, medical treatments and biological and genetic materials.

With regard to medical treatments and biological materials, the Issues Paper notes that some see the patenting of such subject matter as restricting access to the best available medical care and states that “it has been argued that biological and genetic materials should not be patented because the power this gives patent owners is out of proportion with the contribution they provide to society, or that it is immoral for some to have a degree of ‘ownership’ over other life forms”.

From a historical perspective, the seminal Australian court case on what constitutes patentable subject matter was the 1959 High Court decision of National Research Development Corporation v Commissioner of Patents (NRDC). The Paper recognises NRDC as a landmark case which led to a complete rethinking of the historical categories of unpatentable subject matter and of pre-existing and newly emerging technologies. In the Paper, ACIP lists several examples of subject matter that the courts considered, post-NRDC, to be patentable, such as methods of treating humans, living organisms, and genetic material where the claimed matter had some use or commercial application.

The Paper further discusses patentable subject matter in the general context of “a manner of manufacture” and considers that a new product or process for which a practical, technical application has been identified is patentable subject matter. The Paper includes examples of how this principle is applied in practice. In the biotechnology area, such matter may include:

  • a micro-organism, protein, enantiomer or antibiotic in its isolated form;
  • a recombinant, isolated or purified gene;
  • a gene per se, provided the claim does not include within its scope the native chromosome of which the gene forms part.

In light of the above, the Paper highlights subject matter (particularly as it relates to stem cell work) that is currently excluded from patenting in Australia, including:

  • fertilised human ova and equivalents, zygotes, blastocysts, embryos, fetuses and totipotent human cells;
  • methods of in vitro fertilisation, sperm injection, cloning, growing fertilised ova, introducing transgenes and donor genetic cytoplasmic material into fertilised ova, and methods of obtaining embryonic stem cells which include making an embryo.

Notably, the Australian Patents Act 1990 includes a general provision prohibiting patents for inventions that are “contrary to law” and explicitly states that human beings and biological processes for their generation are not patentable.

The Paper also provides some examples of subject matter that would be currently allowed in Australia including processes for:

  • cryopreservation of gametes;
  • preimplantation genetic analysis of gametes, and
  • determining the developmental progress or viability of a fertilised ovum, blastocyst or embryo, by analysis of culture or incubation media.

ACIP is asking for written submissions from any interested parties by 19 September 2008 particularly in answer to specific questions posed in the Paper, including:

Question 1 – Economic objectives of limiting patentable subject matter
Can placing limits on inherently patentable subject matter be justified on economic grounds? Should the subject matter of each individual invention be assessed to determine whether a patent is necessary to encourage innovation, or should such an assessment be done for entire fields of technology?

Question 3 – Ethical reasons for limiting patentable subject matter
Can placing limits on inherently patentable subject matter be justified on ethical grounds? Is it appropriate for legislation to predetermine ethical limitations on patentable subject matter, or is it more appropriate for courts to determine such limitations on a case-by-case basis? Is patent law an appropriate avenue for dealing with ethical issues? If not, what is an appropriate avenue?

Question 4 – Ethical effect of inherent patentability test.
What would be the ethical consequences of imposing or removing limits on patentable subject matter? Are you aware of any examples of such consequences?

A complete copy of the Issues Paper can be accessed through the website below, which also includes details on making submissions to ACIP. After receipt of the written submissions, ACIP may engage interested parties through “round table” or one-on-one discussions later this year to assist in the preparation of the review.

We will report again when the review is released.

Source: http://www.acip.gov.au/reviews.html#subject

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UPCOMING EVENTS & RECENT ACTIVITIES
Intellectual Property in Hospitals

We are pleased to announce our sponsorship of the 2nd Annual Intellectual Property Management and Commercialisation for Hospitals Conference which is being held at the Westmead Hospital on 11 September 2008. Dr Martin O’Brien, of our Biotechnology Group, will be speaking that day on “Important Aspects of IP Management for Health”. Further information about this conference can be found at www.OfficeofCommercialisation.com and www.BioMedNorth.org

 

NSW Enterprise Workshop

NSW Enterprise Workshop, a non-profit organisation located at the Australian Technology Park in Sydney, aims to create and expand successful businesses through the assistance of professionals with business expertise in their field in planned sessions throughout the year. These sessions attract a variety of businesses and business projects including organisations involved in the commercialisation of new high-technology and biotechnology projects.

Spruson & Ferguson is actively involved with NSW Enterprise Workshop as a long-standing major sponsor with our professional staff volunteering their time to lead various workshop sessions. Martin Pollock, of our Trade Marks Group, has provided lectures on Trade Marks practice whilst Rob McInnes, of the Commercialisation Group of Spruson&Ferguson Lawyers, has lectured on Intellectual Property Management. Recently, Dr Martin O’Brien was a member of the Judging Panel for candidates presenting their business plans as part of the Autumn session.

For more information go to http://www.enterpriseworkshop.com.au/

 

Knowledge on a Global Scale

AIPPI (Association Internationale pour la Protection de la Propriété Intellectuelle also known as International Association for the Protection of Intellectual Property) is holding the 41st World Intellectual Property Congress in Boston, USA from 6 to 11 September 2008.

Dr Andrew Blattman of our Biotechnology Group and Shahnaz Irani of our Chemical/Biotechnology Group are attending this conference to ensure that Spruson & Ferguson remains current on the ever changing international landscape of Intellectual Property.

AIPPI is focused on all types of intellectual property rights (including patents, trademarks, and copyrights) and is the oldest global intellectual property association in existence today. AIPPI has strong relations with various governments and global organizations, such as the World Intellectual Property Organization and the World Trade Organization.

http://www.aippi.org/

 
FEEDBACK ASK US
We are interested in your feedback. Email biotechenews@sprusons.com.au to let us know if Biotech eNews is of interest or to give your suggestions for future issues. Please also let us know if you have a colleague who would like to be added to our circulation list.

We are here to be of service to you. If you have any questions about how to best protect your IP or if you wish to discuss the patentability of your ideas, we would be happy to arrange a meeting. Our principals and associates are also available to present seminars and information sessions to your staff. Please call Dr Martin O'Brien or Dr Andrew Blattman on (02) 9393 0100 or email martin.obrien@sprusons.com.au or andrew.blattman@sprusons.com.au

CONTACT US

Address:
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31 Market Street
Sydney NSW 2000 Australia
Mail to:
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Sydney NSW 2001 Australia
Telephone: +61 2 9393 0100
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Email: mail@sprusons.com.au
Web Site: www.sprusons.com.au

© Spruson & Ferguson 2008. This Newsletter is for the general information of our clients. Its contents are not a complete statement of the law on any subject. Professional advice should be sought before any course of action is pursued.

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