RESTRICTED
WORLD TRADE IP/C/W/66
14May1997
ORGANIZATION(97-2018)
Original: English Council forTrade-Related Aspects
ofIntellectual Property Rights
REVIEW OFLEGISLATION INTHE FIELDS OFPATENTS, LAYOUT-DESIGNS
(TOPOGRAPHIES) OFINTEGRATED CIRCUITS, PROTECTION OF
UNDISCLOSED INFORMATION AND CONTROL OF
ANTI-COMPETITIVE PRACTICES IN
CONTRACTUAL LICENCES
Replies from Australia toquestions posed by
theEuropean Communities andtheirMember States
Thefollowing communication, dated 12May1997, hasbeenreceived from thePermanent
Mission ofAustralia.
_______________
REPLIES TOTHE QUESTIONS POSED BYTHE EUROPEAN COMMUNITIES AND THEIR
MEMBER STATES
Patents
1. DoesAustralia grant temporary protection topatentable inventions inrespect ofgoods exhibited
atofficial exhibitions heldinAustralia inaccordance withArticle 11oftheParis Convention (1967)?
(Article 2.1TRIPS)
Yes. SeeSection 24(1)(a) ofthePatents Act1990together withregulations 2.2(2)(a) and(b),
2.2(3) and2.3(1)(a).
2. Inwhatcircumstances andunder whatconditions would theCommonwealth ofAustralia order
theacquisition ofapatent pursuant toSection 171ofthePatents Act? (Article 8TRIPS)
Weareunable togiveaprecise answer tothisquestion astherearenoinstances oftheprovisions
ofSection 171(norSection 129ofthe1952Act)having beenused. However ifaninvention isacquired,
Section 51(xxxi) oftheAustralian Constitution requires thattheterms ofthatacquisition bejust.
3. Does theexclusion ofaninvention which issecretly usedfromthedefinition of"patentable
invention" inthePatents Actlimitinanywaythecircumstances inwhich "patents shallbeavailable"
within themeaning ofArticle 27.1TRIPS?
Theexclusion from"patentable invention" ofinventions thathavebeensecretly useddoesno
more thanprevent aperson, whohassecretly usedaninvention forcommercial purposes, from
subsequently obtaining apatent -irrespective ofthesubject matter. [SeealsoSection 9(c)]. Itdoes
notprevent apatent frombeing granted forthatinvention foranyofthereasons setoutinArticle 27.1
ofTRIPS.IP/C/W/66
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4. Pursuant toSection 51(1)(a) ofthePatents Act,isitwithin thediscretion oftheCommissioner
torefuse thegrant ofapatent where theprevention ofitsexploitation isnotrequired fortheinterests
listed inArticle 27.2TRIPS?
Section 21(1)(a) ofthePatents Actisinterpreted tobelimited toinventions where theonly
usedescribed foritwould bepunishable asacrime. Thus gunsarepatentable since theycanbeused
forbothlawful andunlawful purposes. Consequently exclusions beyond thescope ofArticle 27.2
ofTRIPS cannot arise.
5. Would thegrant ofacompulsory licence pursuant toSection 133ofthePatents Act,asamended,
besubject totherequirements ofArticle 31(c) and(f)TRIPS? Ifso,please explain.
ThefirstpartofArticle 31(c) isrecognized inSection 133(6), where thelicence canberevoked
ifcircumstances thatjustified thelicence haveceased toexistandareunlikely torecur. Article 31(f)
isembodied intheprerequisite ofSection 133(2)(a) thatthereasonable requirements ofthepublic have
notbeensatisfied; "thepublic" isareference topersons inAustralia, andisexclusive ofpersons outside
thejurisdiction oftheAct.
Itisourunderstanding thatthesemi-conductor technology referred tointhesecond partof
Article 31(c) refers tocircuit layouts which areprotected inAustralia under theirownlegislation, the
Circuit Layouts Act1989.
6. IstheGovernment ofAustralia obliged tomake efforts toobtain authorization fromtheright
holder onreasonable commercial terms andconditions prior totheexploitation ofinventions bythe
Crown pursuant toSection 163ofthePatents Act1990, asamended? (Article 31(k) and(b)TRIPS)
There isnostatutory requirement thatthegovernment must make anyeffort toobtain
authorization from therightholder prior toexploitation. TheGovernment isrequired toadvise the
relevant persons afterexploitation hascommenced -Section 164.
7. Does Section 163ofthePatents Actallow forexploitation ofsemiconductor technology bythe
Crown?
Section 163isnotlimited inanywaybythesubject matter oftheinvention.
8. Would theexploitation ofapatent bytheCrown pursuant toSection 163ofthePatents Act
benon-exclusive inallareas and,ifso,onwhatbasis? (Article 31(d) TRIPS)
Exploitation bytheCrown under Section 163isnon-exclusive inallareas.
9. Istheexploitation ofapatent bytheCrown pursuant toSection 163ofthePatents Act
assignable? Please explain. (Article 31(e) TRIPS)
Section 163provides thattheusecanbebyaperson authorized inwriting bytheGovernment -
buttheusemuststillbefortheservices oftheGovernment. TheActdoesnotallow fortherightto
exploit theinvention tobeassigned toaperson fortheirownbenefit.
10. Isuseofapatent fortheservices oftheCrown pursuant toSection 163ofthePatents Act
predominantly forthesupply oftheAustralian market, having regard inparticular toSection 168of
theAct? (Article 31(f)TRIPS)IP/C/W/66
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Section 163(3) imposes acondition thattheexploitation isnecessary fortheproper provision
ofservices inAustralia. Ineffect, thismeans thattheuseoftheinvention mustbepredominantly for
theAustralian market.
11. Does Australia provide forthejudicial review ofthelegal validity ofanydecision relating to
theauthorization ofusebytheCrown pursuant toSection 163ofthePatents Actoristhislimited to
applying foradeclaration tothecourt thattheexploitation isnolonger necessary assetoutin
Section 165A oftheAct? Please explain. (Article 31(i)TRIPS)
Anyadministrative decisions under Chapter 17oftheActwould bereviewable bytheFederal
court ofAustralia under theAdministrative Decisions (Judicial Review) Act.Anydecisions ofacourt
offirstinstance areappealable.
12. Does Australia provide fortheconditions assetoutinArticle 31(l)TRIPS inthecaseofuse
bytheCrown pursuant toSection 163ofthePatents Actofapatent which cannot beexploited without
infringing another patent? Please explain.
Therequirements under Article 31.1ofTRIPS areimplemented inSection 133,dealing with
compulsory licences forpersons otherthantheCrown. Ifexploitation ofaninvention under Section 163
necessarily involves exploitation ofanother invention, clearly thatother invention willbecovered by
Section 163aswellandArticle 31.1isnotapplicable.
Layout-designs (topographies) ofintegrated circuits
1. DoesAustralia apply itslawonlayout-designs (topographies) ofintegrated circuits tonationals
ofalltheWTO Members? (Article 1.3TRIPS, Article 3.1TRIPS)
Yes.Rights aregranted intheCircuit Layouts Act1989totheowner ofELRights inaneligible
layout (seeSection 17).Eligible layout isdefined inSection 5oftheActtomean anoriginal circuit
layout inwhich either themaker wasaneligible person orthecircuit wasfirstcommercially exploited
inAustralia oraneligible foreign county. Eligible foreign country andeligible person arealsodefined
inSection 5.Theeffect ofthese provisions istoprovide fortherights under theActtobeavailable
tocitizens, nationals orresidents of(orcorporations incorporated byorin)countries declared tobe
eligible foreign countries inregulations made under theAct.
TheCircuit Layouts Regulations (r.3)contains aschedule ofeligible foreign countries. This
listwasamended toinclude WTO Members inDecember 1995andwillbeamended fromtimetotime
totakeaccount ofnewaccessions totheWTO. Section 42oftheCircuit Layouts Actrestricts the
declaration ofeligible foreign countries to,interalia,those thatareparty toaconvention relating to
theprotection ofcircuit layouts, towhich Australia isalsoaparty.
2. Does Australia require thattheexploitation ofacircuit layout bytheCrown pursuant to
Section 25oftheCircuit Layouts Actbenon-exclusive inallcases? (Article 31(d) TRIPS)
Section 25(4) oftheCircuit Layouts Actdoesnotdenytheright oftheowner tolicence to
other parties besides theCommonwealth.
3. Istheexploitation ofacircuit layout bytheCrown pursuant toSection 25oftheCircuit Layouts
Actassignable? (Article 31(e) TRIPS)
Section 25provides thatanactdone bytheCommonwealth, oraperson authorized bythe
Commonwealth isnotaninfringement oftheELrights, incertain circumstances, iftheactisfortheIP/C/W/66
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security ordefence oftheCommonwealth. OnlytheCommonwealth maydotherelevant actorgrant
authority foranother todotheact.Thatbeing so,therightorimmunity granted tothecommonwealth
isnotassignable although, asalready noted, Section 25permits thecommonwealth toauthorize another
toundertake action thatwould otherwise beaninfringement oftheELrights.
4. CanusebytheCrown ofacircuit layout pursuant toSection 25oftheCircuit Layouts Act
beterminated ifandwhen thecircumstances which ledtoitcease toexistorareunlikely toreturn,
anddoesacompetent authority havetheability toreview onrequest theconfirmed useofthecircuit
layout? Please explain. (Article 31(g) TRIPS)
AnELowner aggrieved byadecision oftheCommonwealth touseacircuit layout could seek
judicial review ofthedecision, either pursuant totheAdministrative Decisions (Judicial Review) Act
1977orSection 39BoftheJudiciary Act1903. Suchproceedings would consider thequestion whether
thepower hadbeenexercised lawfully.
While notexpressly stated, therequirement thatthedefence orsecurity purpose would need
tocontinue tosubsist would beimplied byacourt. Thiswould alsoapply inrelation toagreed or
imposed terms under Section 25(4).
5. Does Australia require thatadequate remuneration bepaidtotheowner ofexclusive rights
inrelation tocircuit layouts, inallcases ofusebytheCrown pursuant toSection 25(4) oftheCircuit
Layouts Act? Please explain. (Article 31(h) TRIPS)
Section 25(3) oftheCircuit Layouts Actstates thattheowner mustbenotified assoonaspossible
oftheuse,unless thiswould compromise thedefence orsecurity ofAustralia. Section 25(4) states
thattheCommonwealth andtheowner mustagree onterms thataremutually acceptable totheowner
andtheCommonwealth. Indefault ofsuchagreement, theterms aretobesetbytheFederal Court
ofAustralia.
There isaclearimplication thatadequate remuneration mustbepaidorother compensation
offered totheowner under Section 25(4). Thiswould besoeveniftheowner hasnotbeenadvised
oftheuseduetotheoperation ofSection 25(3).
6. Does Australia provide forageneral rightofreview ofthedecision oftheCommonwealth of
Australia toundertake anactinrelation toaneligible layout pursuant toSection 25(4) oftheCircuit
Layouts Act? Please explain. (Articles 31(i)and31(j)ofTRIPS)
Please seetheanswer toQuestion 4above.
Protection ofundisclosed information
1. Does Australia, andifsoonwhat legal basis, protect (i)thetypeofinformation thatisthe
subject matter ofArticle 39.3TRIPS and(ii)inaccordance withtherequirements ofArticle 39.3TRIPS?
Ifnot,doesAustralia intend tointroduce legislation soastogrant thenecessary protection and,if
so,when would thisbeinplace andwhatwould bethecontent ofsuchlegislation?
AustraliaannouncedinDecember1996itsintentiontointroduceanewregimeofdataexclusivity.
Under thisregime confidential datasubmitted totheTherapeutic Goods Administration (TGA) orthe
National Registration Authority forAgricultural andVeterinary Chemicals (NRA) toregister anew
pharmaceutical, agricultural andveterinary chemical product containing anewchemical entity will
beprotected foraperiod offiveyears fromthedateofregistration oftheoriginal product. Legislation
iscurrently being prepared toimplement thenewregime which willbefullyconsistent withArticle 39.3
oftheTRIPS Agreement. Thenewlegislation willbenotified totheCouncil forTRIPS when finalized.