RESTRICTED
WORLD TRADE IP/C/W/62
12May1997
ORGANIZATION(97-1985)
Original: English Council forTrade-Related Aspects
ofIntellectual Property Rights
REVIEW OFLEGISLATION INTHE FIELDS OFPATENTS, LAYOUT-DESIGNS
(TOPOGRAPHIES) OFINTEGRATED CIRCUITS, PROTECTION OF
UNDISCLOSED INFORMATION AND CONTROL OF
ANTI-COMPETITIVE PRACTICES IN
CONTRACTUAL LICENCES
Replies from NewZealand toquestions posed by
theEuropean Communities andtheirMember States, Japan andtheUnited States
Thefollowingcommunication,dated2May1997,hasbeenreceivedfromthePermanentMission
ofNewZealand.
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REPLIES TOQUESTIONS POSED BYTHE EUROPEAN COMMUNITIES AND THEIR
MEMBER STATES
Patents
1. Would acompulsory licence pursuant toSection 46(1) ofthePatents Act1953 (asamended)
begranted under NewZealand patents lawwhere thepatentee justifies hisfailure towork thepatent
bylegitimate reasons? Ifso,whatreasons would beregarded asbeing legitimate? (Article 2.1TRIPS
inconjunction withArticle 5(A)(4) oftheParis Convention)
Section 46(2) provides foroneground onlyforthegrant ofacompulsory licence, namely where
"amarket forthepatented invention isnotbeing supplied, orisnotbeing supplied onreasonable terms,
inNewZealand".
2. Does NewZealand lawallow foraperiod ofgrace forthepayment offeesprescribed forthe
maintenance ofpatent rights which isnotshorter thansixmonths, having regard toSection 30(5) of
thePatents Act1953 (asamended)? (Article 2.1TRIPS inconjunction withArticle 5bisoftheParis
Convention)
Yes. SeeSection 30(5) ofthePatents Act.
3. Istheauthorization oftheuseofpatented inventions fortheservices oftheCrown pursuant
toSections 55(2) and55(3) ofthePatents Act1953 (asamended) considered onitsownindividual
merits? (Article 31TRIPS)
Yes. SeeSections 55and58ofthePatents Act.IP/C/W/62
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4. Does NewZealand lawprovide foranobligation toinform promptly thepatent owner where
apatent isusedfortheservices oftheCrown, andthegovernment orcontractor, without making a
patent search, knows orhasdemonstrable grounds toknow thatitwilluseavalidpatent? (Article 31
TRIPS)
Yes. SeeSection 58BofthePatents Act.
Layout-designs (topographies) ofintegrated circuits
1. Could theGovernment ofNewZealand clarify whether anauthorization tousealayout-design
byoronbehalf oftheCrown isliable tobeterminated ifandwhen thecircumstances which ledto
itcease toexistandareunlikely torecur? Isthecontinued existence ofthese circumstances subject
toreview bythecompetent authority? Please explain. (Article 37TRIPS)
Anauthorization tousealayout-design onbehalf oftheCrown isonlypermitted indefence,
national security, ornational civilemergency circumstances andwhere theCrown hasbeenunable
toobtain thelicence oftheowner ofthelayout design onreasonable terms. Theauthorization isliable
tobeterminated ifthecircumstances which ledtoitbeing granted cease toexist. SeeSection 21of
theLayout Designs Act1994.
Thecontinued existence ofthese circumstances issubject toreview. SeeSection 24ofthe
Layout Designs Act.
Protection ofundisclosed information
1. Onwhatbasisandunder whatconditions doesNewZealand grant theprotection toundisclosed
information provided forunder Article 39.2TRIPS?
NewZealand grants protection toundisclosed information onthebasislaidoutinArticle 39.2
oftheTRIPS Agreement bywayoftheMedicines Amendment Act1994, theanimal Remedies
Amendment Act1994, andthePesticides Amendment Act1994.
2. HowdoesNewZealand protect confidential information disclosed toaNewZealand Government
Department orStatutory Body under Section 35C(1)(b) oftheAnimal Remedies Amendment Act1994,
Section 35C(1)(b) ofthePesticides Amendment Act1994, andSection 23C(1)(b) oftheMedicines
Amendment Act1994 against unfair commercial use? Arethere anylimitations totheconditions in
which suchinformation maybedisclosed? (Article 39.3TRIPS)
Confidential information isdisclosed toother departments orbodies onlywhen theoriginal
Minister ofdepartment isconfident thatappropriate protocols andprocedures areinplace toensure
thattheconfidentiality ofthematerial willberespected andthatthematerial willbeusedonlyin
accordance withlegislation.
3. HowdoesNewZealand protect confidential information disclosed tothepersons orbodies
asprovided under Section 35C(1) oftheAnimal Remedies Amendment Act1994, Section 35C(1) of
thePesticides Amendment Act1994, andSection 23B(1) oftheMedicines Amendment Act1994? Are
there anylimitations astotheconditions inwhich suchinformation maybedisclosed? (Article 39.3
TRIPS)
Itisassumed thatthequestion refers toSection 23C(1)(c) oftheMedicines Amendment Act.IP/C/W/62
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Disclosure ofconfidential information totheregulatory authority ofaWTO Member willnot
leadtoabreach ofcommercial confidence, asallMembers arebound tocomply withArticle 39.3
oftheTRIPS Agreement.
Theinformation provided tointernational organizations isintheform ofreports containing
anevaluation ofdatacontained inaregistration package. Itisnotpossible tomake unfair commercial
useofsuchinformation.
Information isprovided toother persons orbodies onlyasapproved byregulation and,as
required byTRIPS, onlywhen safeguards areinplace toprevent unfair commercial use.
REPLIES TOQUESTIONS POSED BYJAPAN
ToallMembers:
Patents
1. Inyourcountry, arethefollowing subject matters protectable bypatent: (1)Plants andanimals,
and(2)Plant andanimal varieties?
Patents canbegranted forplants andplantvarieties andanimals providing theinvention falls
within thedefinition ofaninvention specified intheAct,isuseful, new,andisnotobvious. Itshould
benoted thatinNewZealand plant varieties aregenerally protected under theplant variety rights
legislation.
2. Inyourcountry, istheactofoffering forsaleincluded intheexclusive rights ofpatent?
Yes.
3. Inyourcountry, whatkinds ofactsarerecognized asexceptions totheexclusive rights conferred
byapatent right?
Themain exceptions areusewithout theauthorization oftherightholder andCrown use.
4. Inyourcountry, inwhich caseisusewithout theauthorization oftherightholder permitted,
including usebythegovernment orbythird parties authorized bythegovernment?
Usewithout theauthorization oftheright holder isdiscussed intheresponse toquestion 1
from theEuropean Communities andtheirMember States.
Used bytheGovernment orbythirdparties authorized bytheGovernment ("the Crown") is
provided forinSection 55ofthePatents Act1953 (asamended in1994). Special provision isalso
made (Section 58refers) forCrown useduring emergencies.
5. Inyourcountry, howistheobligation under TRIPS Articles 34.1and34.2regarding theshift
oftheburden ofproof incivilproceedings forpatent infringement related toaprocess patent
implemented?
Section 68AofthePatents Act(asamended in1994) governs theburden ofproof ininfringement
proceedings concerning aprocess patent.IP/C/W/62
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Additional questions:
Patents
1. Please explain whether Articles 46,48,55,56(1), 57and58oftheNewZealand Patents Act
withrespect tothecompulsory licences anduseofpatented inventions forservices oftheCrown are
consistent witheachparagraph ofTRIPS Article 31.
Sections 46,48,55,56(1), 57and58ofthePatents Actareconsistent withArticle 31ofthe
TRIPS Agreement.
2. Please explain howArticle 10oftheNewZealand Patents Actwithrespect tothecontents of
specification isconsistent withTRIPS Article 29which requires thattheinvention shallbedisclosed
inamanner sufficiently clear andcomplete fortheinvention tobecarried outbyaperson skilled in
theart.
Theinformation required bySection 10ofthePatents Actwithapatent application provides
thenecessary disclosure ofthedetails required inorder todetermine whether theinvention canbecarried
outbyaperson skilled intheart.
Undisclosed information
1. Please explain howundisclosed information isprotected inyourcountry, asrequired byTRIPS
Article 39.2.
NewZealand grants protection toundisclosed information onthebasislaidoutinArticle 39(2)
oftheTRIPS Agreement bywayoftheMedicines Amendment Act1994, theAnimal Remedies
Amendment Act1994, andthePesticides Amendment Act1994.
REPLIES TOQUESTIONS POSED BYTHE UNITED STATES
Patents
1. Please explain whether anyinventions arenoteligible tobepatented under NewZealand law,
notwithstanding thefactthattheinvention satisfies thecriteria ofbeing novel, involving aninventive
step,andbeing useful. Insodoing, please explain themeaning ofthephrase "means anymanner
ofnewmanufacture thesubject ofletters patent andgrant ofprivilege within Section 6oftheStatute
ofMonopolies andanynewmethod orprocess oftesting applicable totheimprovement orcontrol of
manufacture" andwhether under thisdefinition anyofthefollowing inventions ifotherwise patentable
aredeemed ineligible tobepatented inNewZealand:
(a) process inventions which, inwhole orinpart, consist ofsteps thatareperformed by
acomputer andaredirected byacomputer program;
(b) product inventions consisting ofelements ofacomputer-implemented invention,
including, inparticular:
(i) machine-readable computer program codestored onatangible medium such
asafloppy disk,computer harddrive orcomputer memory; andIP/C/W/62
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(ii) ageneral purpose computer whose novelty overtheprior artarises primarily
duetoitscombination withaspecific computer program;
(c) methods oftreatment ordiagnosis ofhumans oranimals; or
(d) non-naturally occurring microorganisms, plants oranimals produced through some
actofhuman intervention.
Inventions which maybecontrary tomorality maynotbeeligible tobepatented. SeeSection 17
ofthePatents Act.
Themeaning ofthephrase "anymanner ofnewmanufacture thesubject ofletters patent and
grant ofprivilege within Section 6oftheStatute ofMonopolies andanynewmethod ofprocess of
testing applicable totheimprovement orcontrol ofmanufacture" hasbeendetermined bynumerous
court decisions bothinNewZealand andother countries. InNewZealand, theleading caseisthe
Court ofAppeal decision inWelcome Foundation vTheCommissioner ofPatents [1983] NZLR 387.
Theprinciples thatguide acourt ininterpreting thisphrase onwhether apatent canbegranted are
thattheinvention cannot becontrary tolaw,cannot bemischievous totheState byraising prices of
commodities athome orhurttrade, andcannot begenerally inconvenient.
Interms ofthedefinition ofinvention, thesituation applying tothefourtypes ofinventions
listed in(a)-(d)above isasfollows:
(a) patentable;
(b) notpatentable;
(c) methods oftreatment where theydonotrelate tosurgery, andmethods ofdiagnosis
arepatentable;
(d) patentable.
2. Article 30(3) oftheNewZealand Patents Actstates that"thetermofevery patent shall be
20years fromthedateofthepatent". Please clarify whether the"date ofthepatent" refers tothe
dateonwhich thepatent isgranted, ortheeffective filing dateoftheapplication leading tothepatent.
Thedateofthepatent iscalculated from thedateofthefiling ofthecomplete specification.
3. Section 18ofthe1994 Patents Amendment Actspecifies thatthetermofpatents thatwerein
effect onthedateofenactment oftheActshall beextended from16to20years fromthedateofthe
patent. Under Section 17oftheAct,itappears thatsome, butnotall,applications thatwerepending
onthisdate,should theymature intoapatent, canobtain atermof20years fromthedateofthepatent.
Please explain (a)theprocedures thatmustbecomplied withbyanapplicant whose application was
pending onthedateofenactment ofthe1994 Actinorder toobtain apatent withatermof20years
fromthedateofthepatent, and(b)whether, under anyconditions, a20yeartermwillnotbeaccorded
toapatent thatderives fromanapplication pending onthedateonwhich theTRIPS Agreement became
applicable toNewZealand.
(a) Allapplications forpatents pending atthedateofcommencement ofthePatents
Amendment Act1994andwhich subsequently resulted inthegrant ofapatent automatically obtained
a20yearpatent term. SeeSection 4(1)ofthePatent Amendment Act.
Theprocedures referred toinSection 17relate tothewayinwhich applications pending at
thedateofcommencement were tobehandled.IP/C/W/62
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(b) No.
4. TheNewZealand Patents Actdoesnotappear tocontain aprovision which specifically defines
thespecific exclusive rights tobeenjoyed byapatent owner. Please identify thelegalbasis uponwhich
apatent owner canenforce therights tobeprovided withthegrant ofapatent asspecified inArticle 28
oftheTRIPS Agreement.
Thescope oftherights enjoyed byapatent owner aredefined intheletters patent. See
Section 2(1)"Patent".