The Changing Profile of Users of the UK Patent System

The changing profile of users of the UK patent systemPart of the ‘Building the evidence base on the drivers of IP demand’ research programmeAuthor: Peter Thomas-KeefePublished: August 2021Top lines:1.Patent applications to the IPO have dropped since around 2010,driven by a fall in ‘search-only’ applications.2.UK-based patent applicants still use the IPO more than the EPO, but the gap has closed.3.Overseas applications remain steady, but within this more are coming from China. Results: ERE is undertaking extensive research to build the IPO’s evidence base on the strategic drivers for IP. In this report, trends in patent applications made to the IPO between 2000 and 2020 were analysed and compared to trends at the EPO. Applications to the IPO have dropped over time, with a clear change in the pattern occurring around 2010. On closer inspection, the fall is due to a particular group of UK-based individual applicants rather than companies. These customers often do not pursue their applications beyond the search stage. This could be through lack of interest or merit, so the reduction in applications has made less impact on the number of publications and grants.Factors affecting patent applicants were considered. The Great Recession of 2008 had a big influence on applicant behaviour with a significant turnover of applicants at the time. There are early indications that Brexit and COVID-19 have also affected applicant behaviour. This is despite the fact that no fundamental changes to the patent system have resulted from Brexit. Internal IPO and EPO priorities have an effect on the number of patents granted and in force, but do not appear to influence applicant behaviour.UK-based applicants use the IPO more than the EPO, but the gap has closed. There is some evidence of a small number of applicants shifting to using the EPO instead of the IPO. The differences in fees and coverage of these two offices drive customer behaviour. The majority of applications at the IPO are from UK applicants. UK-based applications to the IPO have dropped whilst overseas applications have remained constant. International applicant behaviour has changed, with applications from China growing.The largest technical fields at the IPO are Civil Engineering, Computer Technology, and Transport. Telecommunications used to be one of the largest technical fields but applications have fallen over time.The IPO is often used as an office of first filing. More than 40% of IPO applications form the basis for a later priority claim.Methodology:This report focuses on the changing profile of users of the UK patent system and explores patenting trends over the past 20 years using data from the UK patent register (COPS) and the EPO’s PATSTAT worldwide patent statistical database.Economics, Research and Evidence team (Innovation Directorate)September 2021