Budget Days in Canada: Much ado about, well, stay tuned…

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BudgetDaysinCanada:Muchadoabout,well,stay
tuned…

Louis-PierreGravelle1
ROBIC,LLP
LAWYERS,PATENTANDTRADEMARKAGENTS

AttheFederalLevel
Sinceitselectionin2015,theLiberalgovernmenthasbeen
toutingthelaunchofitsInnovationAgenda.Althoughthe
chatterprecedingthebudgetseemedtoindicatethatatleast
someaspectoftheAgendawouldbeannouncedinthe
Budget,itwasnottobethecase.Forwhateverreason,the
MinisterofFinance,BillMorneau,choseinsteadtolaythe
groundworkforanIntellectualPropertyStrategy,whilebeing
scantondetails.

TheMinisterdidsignalthatintellectualpropertyisan
importantcornerstoneoftheinnovationagenda.Inthis
context,thegovernmentislookingintoamodelforregulating
thepatentandtrademarkagentprofession,andtheHouseof
Commonsthroughsomeofitscommittees,isexploringIP
policiesconcerningtechtransfer,theintroductionofafirst
patentfundingprogram,andthedeploymentofapatentbox
taxincentive,amongothers.

©CIPS,20171FromROBIC,LLP,amultidisciplinaryfirmofLawyers,andPatentandTrade-markAgents.Published
intheWinter2016(Vol.20,no.1)Newsletterofthefirm.Publication068.202F.

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TheBudgetdidproposetocreateanew$1.26B(CDN)
StrategicInnovationFund,toconsolidateandsimplifyexisting
businessinnovationprogramming,inparticulartheStrategic
AerospaceandDefenceInitiative,TechnologyDemonstration
Program,AutomotiveInnovationFundandAutomotive
SupplierInnovationProgram.UsingastreamlinedFund,itis
expectedthatbusinesseswillhaveaccesstoasimpler
applicationprocess,quickerprocessingandassistancethatis
moreresponsiveandfocusedonresults.

DetailsregardingtheFundwillmostlikelybereleasedbythe
governmentastheyintroducebudgetlegislation.Thatstill
leavesthematterofthemuch-promisedInnovationAgenda
hangingforanotherday.Staytuned.

Attheprovinciallevel

Inwhatcouldbetermedasacoincidence,theQuébec
governmentreleaseditsownbudgetascantweekafterthe
Federalbudget,onMarch29.Althoughthegovernment
promisedsubstantialinvestmentsindifferentsectors,the
detailsoftheimpactoftheseinvestmentsinIParenotyet
known.

Whatfollowsaresomeofthekeyinvestmentsproposed:
•$180Mtoencourageresearchandinnovationinhigher
educationestablishments;
•$305Mtoencourageinnovationandanewgenerationof
scientists,including:

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➢$25MtosupporttheNationalOpticsInstituteinthree
keysectors:advancedrobotics,theInternetofThings,
and3Dprinting
➢$60Mtodevelopskillsandtosupportemerging
innovators
➢$60Mtoacceleratethetransferandmarketingof
Québecinnovations
➢$100Mtocreateanartificialintelligencesupercluster
➢$125Mtopromotethedevelopmentoftheinnovative
manufacturingsector
➢$22.5Mtocapitalizeandincreasethecapitalizationof
twofundsfocusedonstart-upsandSMBs
➢$43Mtosupportinnovativeagricultureandfood
processing

Theseandothermeasurerepresentover$700Min
investments,asignificantsum.However,manyofthese
investmentswillbepartofQuébec’snextresearchand
innovationstrategy,whichtheMinisterofEconomy,Science
andInnovationwillrelease….atalaterdate.

Itisparticularlytellingthatinthedocumentsaccompanying
theQuébecbudgetspeech,“intellectualproperty”is
mentionedonlyafewtimes,andwhenitis,itisinconnection
withculture.Oneparticularlyinterestingpassageinthe
contextoftheQuébecCultureCapitalFundreadsasfollows:
“Thefollowinggoalwillalsobeaddedtotheabove
objectives:supportinganddevelopingQuébecintellectual
propertywithaviewtoensuringthatprojectsfundedbythis
Fundwillleadtothedevelopmentofstrongbusinessesand
brandsinQuébec.”

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Brandingisonething,andimportant.However,intellectual
propertycoversmuchmorethanthis,andneedstobe
recognizedandencouragedassuch.TheQuébec
government’sFirstPatentinitiativeisaverygoodprogram,
thatneedstobecontinued.TheDeductionforInnovative
Companies,introducedlastyear(the“PatentBox”)isanother
laudableeffort,notwithstandingthefactthatthedetails
regardingtheapplicationofthislastmeasurearenotyet
known.

Governmentsatalllevels,thepressandthegeneralpublic
needtohaveabetterunderstandingof“innovation”:theword
isbeingusedfrequently,offhandedly,andoftenwitha
misunderstandingofitsmeaning.Innovationinallitsforms
mustbeencouraged;innovationthatleadstointellectual
propertyrightsthatcanbeprotected,defendedand
monetizedmustbeproperlysupported,andvalued,asitisthe
foundationoftheknowledgeeconomythatistoutedasbeing
thesavioroftheCanadianeconomy.Iamoptimisticthatthe
measuresannouncedbybothlevelsofgovernmentwillpay
specialattentiontoIP.