National Post

Going rogue at the patent office

- Richard C. Owens Richard C. Owens is a senior Munk fellow at the Macdonald- Laurier Institute and an adjunct professor at the University of Toronto Faculty of Law.

Something’s rotten in the Patent Office, a division of the Canadian Intellectu­al Property Office (CIPO). The office is running roughshod over inventors’ rights, arbitraril­y denying patents to a whole class of inventions: the rapidly growing breakthrou­ghs that are medical diagnostic tests. This demonstrat­es, yet again, that with innovation Canada can talk the talk but never walk the walk.

A patent is a 20-year monopoly to make, sell or use an invention. A patent is issued by the commission­er of patents ( currently Johanne Bélisle) in exchange for the inventor publishing a complete descriptio­n of the invention and how best to implement it. This way, society benefits from knowledge of the invention and inventors have an incentive to invent. The Patent Office is obligated to issue qualifying patents. It is an inventor right. No ifs, ands, buts or policy outs, the Patent Act states “The Commission­er shall grant a patent for an invention … if an applicatio­n for the patent in Canada is filed in accordance with this Act and all other requiremen­ts for the issuance of a patent under this Act are met.”

Perhaps no technology is more heavily investigat­ed and hyped at the moment than “personaliz­ed” or “precision” medicine, the tailoring of medical treatments to an individual’s specific genetic attributes. Inventions underpinni­ng personaliz­ed medicine include diagnostic tests. And Canadian law is completely clear: diagnostic tests are patentable. That’s the l aw. But in practice, they’re not getting patents because of a bogus Patent Office policy.

This policy is expressed in internal “examinatio­n guidelines,” quasi- official, nonlegal policy statements. They avoid patents on diagnostic­s by mis- applying the law of interpreta­tion of patent claims. As guideline 2015- 02 states “... a diagnostic method claim construed as consisting solely of essential elements that are disembodie­d (e.g., mental process, lacking physicalit­y, no practical applicatio­n, etc.) will be identified as defective for not complying with section 2 of the Patent Act.” In other words, it’s essentiall­y claiming that because the invention is a method, it’s not patentable. But this policy breaks the law on interpreta­tion of patent claims as set out by the Supreme Court of Canada ( in a case recently brought, and won, by Amazon, and in earlier cases involving Whirlpool and Free World Trust). It breaks the law of patentable subject matter, as upheld by the Supreme Court. It breaks the legal obligation, again asserted by the Supreme Court, of the Patent Office not to make policy. And it violates statutory obligation­s under the Patent Act ( under which, it might be noted, penal provisions may apply against the patent commission­er and non-compliant examiners).

Quite a l oad to bear. Neverthele­ss, the Patent Office soldiers on its merry way. In spite of the fact that policy- making by the Patent Office is clearly illegal according to the Supreme Court — which, along with f e deral a nd provincial courts, are the ones solely responsibl­e to make legal pronouncem­ents on the Patent Act in Canada — the Patent Office actually has a policy that its examiners should obey policy over law, a policy to which even the Patent Appeal Board has been said to be subject. An inventor would face years and years of litigation to possibly get her due in Federal Court.

But without patents, who would invest in the disclosure, costly Health Canada approvals as a class- 4 medical device, and commercial­ization of a diagnostic method? If inventions do not advance, patients suffer and die without them. Make no mistake: absent patents, inventions stay in the lab. Health cost savings and im- proved outcomes are lost. And Canadians pay not only for want of health benefits: it is usually our tax dollars that funded the wasted research in the first place.

This must stop. In trying to get to the bottom of this mess, access- to- informatio­n requests have been made and the results published online. They demonstrat­e that the overwhelmi­ng majority of Patent Office patent examiners in relevant fields oppose the policy. They know their legal obligation­s. They are frustrated. But higherups order them to break the law. Why? Hard to say, since absolutely no good comes of it.

Maybe the Commission­er of Patents, or other bureaucrat­s in the Ministry of Innovation, Science and Economic Developmen­t Canada ( to which CIPO reports) want to stifle diagnostic patents out of the completely mistaken belief that they would increase health- care costs, but that, without patents, they would somehow miraculous­ly turn into products anyway. It wouldn’t be the first time that patent policy has failed health-care research. Canada only recently overruled the promise doctrine, which was poisonous to pharmaceut­ical patents, and has long restricted patents on drugs and medical methods. Anyway, there must be someone in the Canadian government to whom withholdin­g the power of patents from an area of scientific developmen­t that matters most to people and their health makes sense.

Perhaps a frustrated inventor will sue to make the CIPO obey the law, but Canadians are not particular­ly good at that sort of thing. Perhaps a class- action suit could be arranged, or a mandamus applicatio­n, where a court orders an agency to stop doing something unlawful. If the Canadian government were serious about innovation, it would bring the CIPO to heel. Internal policy is easily amended. It would also strengthen intellectu­al property rights in other ways and go ahead with the IP provisions in the Trans- Pacific Partnershi­p proposals, and accept similar provisions in NAFTA. But it’s clear that, despite what the government claims, Canada is not serious about innovation.

MEDICAL DIAGNOSTIC TESTS AREN’T GETTING PATENTS BECAUSE OF A BOGUS POLICY.

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