Tom Barry (Cork East, Fine Gael)

I will try to give a five star presentation like Deputy Dara Murphy. I am delighted to have the opportunity to speak to the Patents (Amendment) Bill 2011 which will help to reduce the cost to applicants under the patents process. It is important to note that the introduction of the Bill will have no financial implications for the Exchequer. I wish we could say this more often of other Bills.

As chairperson of Fine Gael's policy committee on jobs, enterprise and innovation, any support we can offer our entrepreneurs and indigenous industry at this vital time is welcome. We have risen from the economic doldrums before because of the wealth of talent on the island and I hope we can do so again. When we carried out a feasibility study of the sugar industry, all the knowledge came from within Ireland. When we think back to the time that industry was founded in the 1930s, we had to obtain all the knowledge from Germany and elsewhere in Europe, but now we have the confidence and education to do things for ourselves.

The cost of filing translations of patents across Europe is prohibitive and any assistance provided in reducing this cost must be welcomed. One of the main reasons for the introduction of the Bill is the need to address the disparity in the costs associated with patent applications across the European Union which, prior to the London Agreement, made the European patent uncompetitive compared to US and Japanese patents. We are competing on the world stage and cost competitiveness is vital if we are to succeed in this arena. The Bill will ratify the London Agreement which means that when an Irish company applies for a European patent in English, it will no longer have to pay to have it translated into French if it wants to apply in France, German if it wants to apply in Germany and so on. All of these costs were borne by the applicant and another financial stumbling block in progressing innovation and entrepreneurship.

I am glad to hear €1.8 billion was spent on research and development activities in 2010 and that figure will continue to rise. The figure for renewable energy projects is €800 billion worldwide. We need to become more involved in this area to attract some of this investment to this country.

As the managing director of a small business, I know what the costs are. Every cost has been dissected in recent years because businesses are hanging on. Those which export and have gone to the trouble of creating new products need to be protected. The agri-industry is a major example in this regard. We export many products worldwide and innovation is critical. When one considers that China covers 8% of the world's landmass but has 20% of its population, research in food production is critical.

As a biochemist in my early days, I understand the work required to create a patent. The long hours spent in inventing something must be understood. I heard Deputies on the other side of the House criticise large companies which are making money out of patents. They deserve to do so because they have put the time and money into them. The large agro-chemical company, BASF, applied for 1,707 patents last year. This country produces the highest yields of wheat, barley and oats in the world thanks to the help of agro-chemicals which have been tried and tested and are safe for the environment. They do not come cheap but they provide value for money. Those who invent these products deserve to be rewarded for what they do. The industries in Europe that have produced the greatest number of patents are medical technology, with 10,500 patents, computer technology and electrical machinery. Approximately 235,000 patents were filed with the European Patent Office in 2010, an increase of 11% from 2009. Innovation remains strong and we are playing our part in reducing costs and telling inventors that we are open for business. I commend the Bill to the House.

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