Research is indicating that renewal fees can be used to improve the innovation incentives generated by patent rights.
[1] Article 5bis of the Paris Convention requires that parties to the convention should provide a six-month grace period for paying maintenance fees:[2] International patent applications filed under the Patent Cooperation Treaty are not subject to the payment of maintenance fees.
[5] Once granted of the patent maintenance fees are due based on the anniversary of application date.
[13] Subsequently, renewal fees are payable to the national offices of the EPC Contracting States in which the European patent is brought into effect.
[14] In a widely criticised move the Italian Parliament approved the cancellation of all maintenance fees due for Italian patents (including European patents validated in Italy), utility models and designs, as from January 1, 2006.
Consequently, for any fees that fell due between January 2, 2007, and April 30, 2007, the time limit for paying these was extended to June 30, 2007.
[17] Some, including Roland Grossenbacher, then chairman of the Administrative Council of the European Patent Organisation, considered that the abolishment of annuity fees in Italy was an error, because, if annuities were abolished, "all patents would remain in force up to the 20th year.
Up to 5-fold discounts are available for individual inventors, small and non-profit businesses, and those, who are willing to license their patents under nominal cost and non-discriminatory terms.
Following amendments made by the Patents Act 2004, The Patents (Amendment) Rules 2005, which came into effect on 1 October 2005, ensured that any period prescribed for payment of a renewal fee does not expire until the end of the month in which the renewal date falls.