The  (IRAP) and the  (IPIC) have partnered to offer the  program for Canadian small and medium-sized enterprises (“SMEs”). IPilogue readers may have seen ’s&�Բ�����; of another CIC program, , which provides funding for a similar purpose through a different government channel. That article outlined the motivation behind these types of programs and summed up that  Canadian SMEs often lack access to the means to protect intellectual property (IP) and highlighted a clear economic need for innovative Canadian businesses to improve their IP commercialization.

NRC IRAP, CIC, and IPIC

The NRC IRAP provides a range of innovation support services for Canadian SMEs. The program offers funding, advisory services, and networking opportunities to help SMEs undertake research and development (“R&D”) and to commercialize, and improve their competitiveness in domestic and global markets. IRAP also provides support for technology adoption, productivity improvement, and business expansion. On February 16, 2023, the Government of Canada announced that NRC IRAP will be integrated into the  (CIC).

The CIC will be a new, operationally independent organization solely dedicated to supporting business R&D across all regions and all sectors of the economy. It is a federal initiative that will be  that aims to “play an important role in building a stronger and more innovative Canadian economy for generations to come.” The CIC will include an umbrella of programs, including both IP Assist and ElevateIP, to support the development and exploitation of IP.

IPIC is Canada’s professional association of patent agents, trademark agents and lawyers practicing in all areas of intellectual property (“IP”) law and is comprised of over 1700 members.  is to match SMEs with IPIC members who practice in their specific industry. The IP professional will help SMEs better understand the key aspects of IP and how it can support their business goals.

The IP Assist Program

There are three levels to the IP Assist Program — levels 1, 2 and 3 (L1, L2, L3, respectively). Each level brings :L1 – up to $1k, L2 – up to $20k, L3 – up to $20k+), as well as increasing engagement with an IP professional matched to the SME:

The L1 IP Awareness is a one-to-one IP awareness session during which an IP professional will provide industry-specific IP information and guidance to an SME. Engagement at L1 provides IP professionals with an opportunity to connect, support and guide innovative Canadian SME to help them achieve their business goals. Engagements with SMEs will take, on average, up to 3 hours and include an IP awareness presentation followed by Q&As.

The L2 IP Strategy relates to the IRAP SME’s specific technology space, aligns with the IRAP SMEs business objectives, and provides IRAP SMEs with specific prioritized IP actions. The IP Strategy must be informed by key relevant information relating to the technology and competitor landscapes relevant to the IRAP SMEs.

The L3 IP Implementation relates to detailed IP asset assessments, such as IP audits, trademark clearance searches, prior art searches and analysis, advice on branding strategy, legal analysis of IP landscaping, patentability analysis, licensing strategy formulation, and other activities. However, some patent and trademark preparation services and filing fees may not be covered.

Conclusion

Canada’s investment in the CIC indicates that there is an increased focus on innovation as a driver of economic growth. There is also a clear aim through programs like IP Assist and ElevateIP to ensure that IP generated by innovative SMEs in Canada are carefully strategized for and well-protected. Hopefully, this increases Canadian presence in innovation and brings greater investment in R&D into Canada.

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Serena Nath is an IPilogue Writer and a 2L JD candidate at Osgoode Hall Law School.

In 2018, the Government of Canada to aid “Canadian businesses, creators, entrepreneurs and innovators” to “understand, protect and access IP”. The hope is to achieve this via IP awareness, education and advice, strategic IP tools for growth, and IP legislation.

ElevateIP

To further its IP strategy, the Government of Canada announced its intention in their 2022 budget to launch ElevateIP. consisted of the federal government pledging $90 million over 4 years starting in 2022-2023 to provide Canadian SMEs (small and medium-sized enterprises) with the tools needed to understand, manage, and leverage their IP and with access to professional IP services. Specifically, ElevateIP funding can support three different categories of activities including, and limited to, IP awareness, developing IP strategies, and implementing IP strategies. To be eligible for ElevateIP funding, applicants undertook a competitive application process where they were evaluated on their proposal’s capacity to achieve results and alignment with all three of ElevateIP’s program objectives. On December 19, 2022, the Parliamentary Secretary to the Minister of Tourism, on behalf of the Minister of Innovation, Science and Industry, announced of the ElevateIP funding.

Importance of ElevateIP

Many studies have shown how valuable intangible assets, including IP, are for a company. Along with more well-known advantages, such as the protection of creator ideas and brand reputation, intangible assets also have less-known benefits for companies. A Business Valuation Resources illustrated that having more intangible assets, such as IP, correlates with higher business valuations. Another EUIPO showed that companies with patents tend to grow more than companies without patents. However, studies have also shown that many Canadian start-ups are not capitalizing on their company’s potential due to a lack of IP. This is reflected in a study by the World Intellectual Property Organization that showed that in 2019, by the number of IP rights filed. Additionally, by the Canadian Intellectual Property Office from 2019 showed that only two percent of small and medium Canadian enterprises owned a patent. Thus, the overall goal of ElevateIP is to help Canadian SMEs overcome their lack of IP.

While some Intellectual Property experts hope that this program will increase the commercialization of IP for Canadian companies, others, including the president and chair of the Intellectual Property Institute of Canada, that ElevateIP’s goal of helping companies create an IP strategy will not necessarily result in more IP filings. This is mainly due to the federal government’s focus on educating companies about IP rights and not enough incentivization for companies to acquire IP rights. Perhaps ElevateIP is an important first, but not final, step in the federal government’s plan to increase IP among Canadian companies.

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Emily Xiang is an IPilogue Writer, the President of the Intellectual Property Society of Osgoode, and a 2L JD candidate at Osgoode Hall Law School.

This article is part of a series covering the 5th Annual IP Data & Research Conference, hosted by the Canadian Intellectual Property Office and the Centre for International Governance Innovation.

On Thursday, March 24th, 2022, the Canadian Intellectual Property Office (CIPO) and the Centre for International Governance Innovation (CIGI) hosted their 5th Annual IP Data & Research Conference. For their third themed session, “IP Metrics”, experts were invited to speak about the ways they have been observing global IP trends, making IP data more accessible, and measuring the impact of IP on economic growth in Canada.

Where do Canadians Patent? Implications for Canada’s Patent Regime

Joel Blit, Professor of Economics at the University of Waterloo and CIGI Senior Fellow, kicked off the session. Blit examined the countries in which Canadian investors filed patent applications and sought to determine the extent to which the Canadian patent regime fosters domestic innovation. He found that Canadians were increasingly filing patents abroad, with more Canadians filing in at least one other country each year. Results also showed that patents filed exclusively in the US related to more advanced fields of computer sciences and technologies, while Canada-exclusive patents focused more on special-purpose machinery and the resources and energy sectors. Canadian patents also tended to belong to individual inventors rather than larger assignees, involved fewer inventors, and were cited less frequently, making them relatively less valuable in the global market for innovation.

Blit puts forward several potential explanations. One is that the Canadian patent system is providing less incentive over time for protecting domestic innovations. Another explanation is that Canadian patents are too strong, meaning it may be preferable to “weaken” them by setting higher examination standards, limiting patentable subject matter, or reducing the scope of issuable patents. That Canadians are increasingly patenting abroad could mean that Canadian inventors are becoming increasingly sophisticated, yet it could also mean that Canadian innovations and ideas are more frequently bought up by multinationals. Either way, the current Canadian patents regime seems to play a relatively minor role in promoting domestic innovation worldwide.

Identifying Artificial Intelligence (AI) Invention: A Novel AI Patent Dataset

Nicholas A. Pairolero, Economist in the Office of the Chief Economist at the United States Patent and Trademark Office (USPTO). delivered the second presentation of the session. Pairolero’s team sought to make data on AI more accessible to the public by developing a novel dataset that identified AI tech components in over 13.2 million USPTO patents and pre-grant publications.

After first determining a definition of AI, Pairolero and his team searched through USPTO’s patents using an automated machine learning (ML) model that differentiated between patent documents that did and did not contain any AI component technology. In the evaluation stage, expert AI examiners evaluated each document for AI component technology. Compared to more traditional, query-based approaches, the ML approach resulted in relatively lower precision (as a much larger number of documents were identified as containing AI), but a much higher recall (higher probability of correctly identifying AI). Moreover, both machines and humans seemed to struggle with classification at the boundaries of the various AI component technologies. However, results indicated that the ML approach achieved state-of-the-art overall performance relative to a variety of existing benchmarks from academic and policy literature, holding much promise for the future of automated processing in expediting the transmission of publicly available data.

Missions, Mandates and Metrics: What are the Right Metrics for Academic Technology Transfer?

The session concluded with a pair of presentations by Mike Szarka, Director of Research Partnerships at the University of Waterloo, and Natalie Raffoul, IP Lawyer and Managing Partner at Brion Raffoul LLP. Szarka began by suggesting that most Technology Transfer Offices (TTOs) focused on some combination of a) maximizing gross revenue and licensing income generally; b) focusing on the few projects that would maximize profits; c) maximizing knowledge mobilization and research impact; d) maximizing local economic growth, and e) maximizing client satisfaction and prioritizing the needs of faculty and students. Szarka’s surveying of TTO directors across the country demonstrated that knowledge mobilization, economic development, and service to academic communities ranked much higher in the minds of the respondents than revenue generation, indicating that commonplace TTO metrics focused on royalties do not reflect the true priorities and missions of most TTOs.

Raffoul identified several alternative metrics focused on “the betterment of Canadian society”. Average reported business expenditures invested into research and development () and have been low in Canada compared to the global stage. The greater concern is whether Canadians are owning their ideas and subsequently having the opportunity to commercialize those ideas downstream (instead of assigning their rights over to foreign firms). Raffoul suggested that TTOs ought to track the number of patents they are licensing/optioning/transferring to Canadian headquartered firms compared to foreign ones, along with the revenue generated from those licenses/options/transfers and any research collaborations with those firms. For company-sponsored academic research, co-ownership of patents ought to be held up to co-authorship of papers and publications, in order to correlate evidence of knowledge creation with the ultimate ownership and control of that knowledge.

Conclusion

Though there is much work to be done for Canadian innovators and owners to remain competitive in the global market, the most recent advancements in research and technology prove that Canada is well-positioned to identify shortcomings and well-equipped to tackle them.

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