A final draft amending the Patent Law in Lebanon was submitted to the Parliament last month. Highlights of the most significant changes are:
Current
Proposed
Reasons for change
Article 3:
A certificate shall not be granted for financial methods and for inventions which are obviously contrary to the public order, and pharmaceutical compositions and prescriptions
Article 3:
A letters-patent shall not be granted for the following:
A)Financial methods.
B)Inventions which contravene with public order or morality,
C)Medical, therapeutic and diagnostic methods with the exception of the devices and apparatus which are used in applying those methods.
Proposed
Article 3:
Allowing the protection of pharmaceutical. This makes the law in conformity with the new international conventions, especially the TRIPs Agreement.
Reasons for change
Article 4:
The protection shall remain guaranteed through the letters-patent for 15 years starting from the filing date provided for in Article 12.
Article 4:
The exclusive right to exploit the invention subject of the patent shall extend for a period of 20 years starting from the date of settling the first annuity provided for in Article 10.
Article 4:
Increasing the protection period as per the requirements of the TRIPs Agreement.
Article 10:
For every letters-patent the following annuity, which will gradually increase as specified below, shall be collected.
Annuity YearLebanese Pound*
1st120,000.00
2nd150,000.00
3rd175,000.00
4th200,000.00
5th220,000.00
6th250,000.00
7th300,000.00
8th325,000.00
9th350,000.00
10th400,000.00
11th450,000.00
12th500,000.00
13th550,000.00
14th600,000.00
15th650,000.00
* 1 US$= 1,000 Lebanese Pounds
Article 10:
A)An annuity fee shall fall due on the first day of each year of the patent validity as follows:
Annuity YearLebanese Pound*
1st100,000.00
2nd150,000.00
3rd200,000.00
4th250,000.00
5th300,000.00
6th350,000.00
7th400,000.00
8th450,000.00
9th500,000.00
10th550,000.00
11th600,000.00
12th650,000.00
13th700,000.00
14th750,000.00
15th800,000.00
16th850,000.00
17th900,000.00
18th950,000.00
19th1,000,000.00
20th1,050,000.00
B)An annuity fee settled during the six-month grace period as of the date of falling due shall be subject to a fine of Lebanese Pounds 100,000.00.
C)A patent shall lapse when the grace period provided for in paragraph B expires if the patentee does not pay the due annuity fee and the fine.
Article 10:
Amending the fees and increasing them in a progressive and specific manner.
Article 11:
An application shall not be accepted unless it is accompanied by the first-year annuity at least.
Article 11:
A)The patentee whose patent lapsed as per the provision of paragraph C above may apply to the Head of the Intellectual Property Department within six months of the patent lapse date requesting to restore his rights in the patent, provided that he proves that his lateness in paying the annuity fee and fine is due to a serious reason.
B)If the Department's Head accepts the said application, then the patentee shall settle the due annuity and fine in double amounts within a weak of the date of receiving the approval.
Article 11:
The provision is a repetition of what was in Article 9. Therefore, Article 9 was cancelled and replaced by a text allowing restoration of rights in a patent for a serious reason. The new text is available in most of modern legislations.
Article 31:
Every assignment or transfer shall be in writing or else it shall be void. If it is not registered with the protection office, the assignment shall be null and void against third parties. The assignment shall be recorded in the register kept for this purpose in the office based on an application by the assignee within 3 months as of the assignment date. The recordal entry shall comprise the names and addresses of the parties, number and date of the letters-patent, and the assignment's type, date, and period.
Article 31:
Every agreement on a patent of invention shall be in writing or else it shall be regarded as null and void, and its effect shall not be valid against third parties unless it is recorded in the patents register with the Intellectual Property Protection Department. The recordal shall be made on the basis of an application by one of the parties within 3 months of signing the agreement plus distance grace periods against a fee of Lebanese Pounds 90,000.00. A lateness fine of Lebanese Pounds 50,000.00 shall be levied for every two-month period.
Article 31:
Rewording and increasing the assignment recordal fee.
Article 46:
The rights of the patentee shall lapse in the following cases:
First:
If products similar to those which are included in his letters-patent enter Lebanon from foreign sources without prejudice to any conflicting international conventions which are applied in Lebanon.
Second:
If the patentee doesn't exploit his invention for two years unless he proves that he offered his invention directly to industrialists capable of exploiting it and that he refused without cause applications for licenses to exploit it under reasonable conditions.
Article 46:
First:
In accordance with Article 5 of the Paris Convention of 1883 (as amended), natural and legal persons shall have the right, after the elapse of 3 years as of the issuance of the patent grant decision, to apply for obtaining a compulsory license to exploit the patent in Lebanon as per the following conditions if the patentee or his successor, at the time of filing the application, hasn't actually and seriously started without a reasonable excuse to exploit or to prepare for exploitation of the invention subject of the patent in Lebanon.
Second:
The application for a compulsory license shall be by a petition to the court and accompanied by what proves that the plaintiff was unable to obtain from the patentee a license to exploit the patent and that he is capable of exploiting the invention seriously and effectively. The compulsory license may not be exclusive. It shall be granted under specific terms, especially as regards its duration, scope and royalties. The patentee or the licensee may request amending the terms of the license granted through the court, if new circumstances arise and justify that.
Third:
The compulsory license may not be sublicensed to third parties except for assigning the compulsory license with the business enterprise which exploits it and in cases of merger or breaking-up of companies.
Fourth:
If the compulsory licensee doesn't honor the conditions specified in the court decision, the patentee or other licensees may resort to the court to obtain a cancellation decision of the compulsory license.
Fifth:
On the strength of a request by the Ministry of Health, and for health related reasons, the Minister of Economy and Trade may, subject to the compulsory licensing system, the patents of invention which relate to medicines, their methods of manufacture or the substances required for manufacture, if the drugs offered to the public are in short supply as to quantity or the quality of it does not meet the demand or to be unjustifiably at high cost, under a decision and as per the conditions stated below.
Sixth:
As soon as the decision is published, any person who meets the requirements to exploit the invention subject of the patent may apply to the Minister of Economy and Trade to grant him an unexclusive license to exploit the patent in Lebanon. The license is granted as per a decision issued by the Minister of Economy and Trade under certain conditions, particularly as to its duration and scope, with the exception of the annual royalties arising there from which are fixed by agreement of the two parties or else through the court. An administrative compulsory license shall be enforceable as of the date of notifying it to the patentee, licensee, Intellectual Property Office, and all the patent owners mentioned in the Patents Register.
Seventh:
In accordance with a request by the Minister of National Defense, the Minister of Economy and Trade may grant the state a license to exploit any patent of invention for the demands of national defense. This license shall be granted under a decision issued by the Minister of Economy and Trade which shall determine its conditions, except for the royalties arising there from. If it is not possible to fix the annual royalties by agreement, it can be done through the court. This license shall be enforceable as of the date of the request of the Minister of National Defense.
Eight:
In accordance with a request by the Minister of National Defense, the Minister of Economy and Trade, and for the purposes of national defense, may expropriate, wholly or partially, any patent of invention under a decision which he issues and which fixes a fair compensation for the expropriation.
Ninth:
A) Reviewing the appeals regarding this section shall be done by the court of the first instance in Beirut whose decisions shall be subject to all types of appeal.
B) The patent owners may oppose the decision mentioned in this article within 60 days of the date of notifying them.