With improved business environment, foreign investors are showing a keen interest in Pakistan as 105,109 applications have been received since 2013 for their intellectual property rights registration.

Of these, only 40,650 or 38.67pc were granted registration under the four categories—trademarks, copyrights, patent and industrial designs.

Registration gives rights to the owner to legal initiate action against piracy, infringement and unfair commercial use. Once an intellectual property right (IPR) is registered at home, then it should be registered in the country of export as well.

IPO-Pakistan also plans to develop a national IPR strategy and make necessary amendments in the existing laws

An apex organisation, Intellectual Property Organisation (IPO)-Pakistan was created in 2005 to give focus to the existing, but fragmented infrastructure on IPR. Three IPR registries namely Trademarks, Patents and Design and Central Copyrights were brought under IPO-Pakistan.

There are two main reasons for the low registration of IPRs despite the overwhelming response of the last three years (2013-14 to 2015-16).

Data compiled by IPO-Pakistan shows that investors, mostly foreigners, have submitted 88,067 applications at Trademarks Registry, Karachi since 2013 for trademark registration. Of the total applications for IPR registration, the share of trademarks stood at 83.78pc.

The trademarks actually registered stood at 33,822 or 38.4 pc of the total applications. The increase in application filing for trademarks is a healthy sign, but the low registration rate puts a question mark on the performance of IPO-Pakistan.

One of the reasons is the shortage of human resource at the trademark registry office. Of the sanctioned posts of 23 officers, only 13 are working. A similar gap exists in the supporting staff. At the same time, training of human resource regarding the relevant laws is another area for consideration.

Experts say there is no issue of funds to fill the human resource gap but government priority is lacking.

The fourth registry will be established after enactment of a Geographical Indications law for protecting ownership rights of commodities that have a Pakistan-specific geographical origin and are distinguishable by their quality, reputation, or other distinct characteristics. The law is being finalised and will soon be tabled in the National Assembly for registration.

An officer of IPO-Pakistan said that a number of initiatives are under-consideration to upgrade the existing infrastructure to enhance better service delivery. As part of a one window operation, all the three registry offices will be placed in a building of the PBC at Civic Centre, Karachi. The integrated offices at Lahore and Islamabad are already functional.

A new web-portal of IPO-Pakistan will offer e-filing of all types of IP applications, e-payments, online search in IP Gazettes/journals, online application status search and online IP infringement complaints, etc.

Two more regional offices will be established at Peshawar and Quetta. Three IP tribunals have been established at Islamabad, Lahore and Karachi. Of these the former two tribunals are functional while the later one will initiate its work shortly, the officer added.

IPO-Pakistan also plans to develop a national IPR strategy and make necessary amendments in the existing laws. The work for the establishment of a national data base of genetic resources and traditional knowledge has also been initiated.

The data breakup on trademark registrations in the year 2015-16 shows that 11pc applications were filed for foreign brands. Out of 8,882 applications for the registration of foreign brands, 3,904 requests were from the United Kingdom, followed by the United States 1,164, China 828, Germany 488, Japan 267, France 154, South Korea 132, India 85, Singapore 50 and Australia 26.

A majority of trademark registration applications from the local market related to the pharmaceutical, food, cosmetics and clothing sectors.

In the last three years, the Patents and Design Office, Karachi, received 2,703 applications for patent registration. Of these only 665 or 24.6 pc patents have been registered since July 2013. An overwhelming number of patents were registered by foreigners. Out of a total 214 applications in 2015-16, 203 patents were foreign and 11 national.

The same office also received applications for the registration of industrial designs. As many as 1,509 applications were received in the last three years, of which only 964 or 63.88pc designs were registered.

One of the reasons for the low rate of registration is the shortage of human resource at the office. At the Patents Office, Karachi, there are only 15 officers against the sanctioned post of 31. A similar gap exists in the supporting staff.

The Copyrights Office, Karachi, received 12,830 applications in the last three years, of which only 5199 or 40.522pc copyrights were registered. The only reason for low copyright registration is limited human resource at the office.

IPO-Pakistan, which is responsible for making policies ensuring IPR implementation, is also understaffed. Currently, there are only 17 officers against the sanctioned posts of 47. The organisation also works without a regular director general.

IPO-Pakistan generates revenue from the registration of IPRs. In the last three years, a surplus of over Rs90m was deposited to the government exchequer after spending on expenditures. For example, IPO-Pakistan generates an amount of Rs280.43m as revenue from registration in the year 2015-16 as against the expenditure of Rs189.8m, leaving a surplus of Rs90.63m.

The main challenge for IPO-Pakistan will remain IPR enforcement to address issues of piracy and counterfeiting in the country. Analysts say strong enforcement is also one of the conditions to attract more foreign investments in the country.

Published in Dawn, Business & Finance weekly, March 6th, 2017