Federal Budget 2022: Government Commits to Study IPIC’s Recommended Patent Box Incentive
IPIC was pleased with the government’s commitment to study IPIC’s recommendation for a patent box tax incentive, however, it is clear much work is left to be done to gain the government’s support on the importance of other IP incentives, such as First Patent Program, a Brand Protection Strategy, and other IP subsidies and policies IPIC has advocated for over the last few years.
Tabled by the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, the Budget titled A Plan to Grow Our Economy and Make Life More Affordable includes new investments in a number of specific industries and infrastructure priorities for the Trudeau government.
“While IPIC was pleased with the government’s commitment to study its recommendation for a patent box tax incentive, IPIC will continue to advocate for the government’s support on other IP incentives,” said Louis-Pierre Gravelle, President of IPIC. “IPIC had the opportunity on Thursday evening to discuss initial feedback on the Intellectual Property (IP) related components of the Budget with the Office of the Minister of Innovation, Science and Industry,” said Adam Kingsley, CEO of IPIC. Both parties agreed to continue the dialogue over the coming weeks on the 2022 Budget measures as well as implementation issues of the programs still in development from the 2021 Budget.”
- IP Incentives – IPIC Recommendation - The Government will consider whether the tax system can play a role in encouraging the development and retention of IP stemming from R&D conducted in Canada. In particular, the government will consider, and seek views on, the suitability of adopting a patent box regime in order to meet these objectives.
- The government will also undertake a review of further ways to build innovative companies that support Canada’s competitiveness, keep IP in Canada, and attract talent and investment from around the world.
The Strategic Intellectual Property Program Review announced in Budget 2021 is underway. Where appropriate the federal government intends to strengthen IP conditions to promote the growth of IP in Canada.
- IP Investments - $96.6 million over five years, starting in 2022-23, and $22.9 million ongoing, including $35 million over five years to Global Affairs Canada for the CanExport program to help Canadian businesses secure their IP in foreign markets; $2.4 million over five years and $0.6 million ongoing to Innovation, Science and Economic Development Canada (ISED) to expand use of ExploreIP, Canada’s IP marketplace, so that more public sector intellectual property is put to use helping Canadian businesses; and $0.8 million over five years and $0.2 million ongoing to ISED to expand the Intellectual Property Legal Clinics Program, which will make it easier to access basic IP services.
- Innovation Clusters (Superclusters) - $750 million over six years, starting in 2022-23, to support the further growth and development of Canada’s Global Innovation Clusters. Building on their success to date, these clusters will expand their national presence and will collaborate to deepen their impact, including through joint missions aligned with key government priorities, such as fighting climate change and addressing supply chain disruptions. To maximize the impact of this funding and to ensure it corresponds with industry and government needs, it will be allocated between the five clusters on a competitive basis.
- Canada’s innovation clusters have already approved more than 415 projects with 1,840 partners, worth over $1.9 billion. These projects have been supported through co-investment by government and industry across 11 provinces and territories. Together they have also generated more than 850 new IP rights.
- College Of Patent Agents and Trademark Agents Act - In Budget 2022, the government proposes to make legislative amendments to the College of Patent Agents and Trademark Agents Act to better enable directors of the College to prioritize the public interest and to improve the efficiency of the College’s operations.
IPIC is pleased to provide you with our full report on Budget 2022 and its implications for IPIC members. To view this exclusive report please click here.