Hague Agreement for designs

Overview

Hague Agreement Economic Analysis 

The Australian Government previously agreed that IP Australia would investigate the implications of Australia joining the Hague Agreement for industrial designs. The Hague Agreement allows designers to file into 70 territories through a single application. 

IP Australia has undertaken an economic analysis which explores the costs and benefits to Australia of joining the Hague Agreement.  

This draft analysis is published below and is intended to form part of the evidence base on whether Australia should join the Hague Agreement. However, the economic analysis is only one piece of evidence and does not preclude a decision to join the Hague Agreement based on other policy considerations. 

Hague agreement economic analysis report 

Note that the conclusions in the economic analysis should be read in light of the response to submissions below, including the revisions made to the quantified and unquantified impacts. 

Consultation 

From 29 March to 31 May 2018, IP Australia conducted public consultation on the Hague Agreement economic analysis report. We invited stakeholders to provide feedback on the methodology and assumptions of the economic analysis. We also sought feedback on any unquantified impacts and welcomed case studies and any experience users of the Hague system, or applicants for design overseas, have had. 

Response to submissions and revised impacts  

IP Australia has considered all submissions and we have published our response to the consultation.  

The response includes a number of revisions to the original economic analysis to account for: 

• existing Australian applicants filing overseas – the official fees savings due to a centralised renewal system (section 5.1) 

• new Australian applicants who would be enticed to file overseas – the extra expected additional profit component represented by the official fees savings due to a centralised renewal system (section 5.2) 

• using the lower average industry profit rate as the estimate for the additional profits for non-resident design owners during the additional five years of the term (section 6.1). 

Accounting for the changes above, the revised net present cost to Australia of the quantified impacts is estimated to be between $17.9 million and $87.3 million over ten years, with $43.1 million being the best estimate. Further revised impacts can be found in the response document. 

What happens next

IP Australia will continue to monitor the Hague Agreement landscape, including the impact of recent and future members such as Canada and China. As mentioned above, the economic analysis is only one piece of evidence and does not preclude a decision to join the Hague Agreement based on other policy considerations.