Patent Applications in Taiwan Down 1.6% to 19,543 in Q1, 2014

Patent applications received by Taiwan's Intellectual Property Office (TIPO) in the first quarter of this year totaled 19,543, down 2.7% year-on-year for the fourth consecutive quarter, compared to a severe decline over five quarters in a row during the global financial turbulence in 2009, according to the latest statistics by the authorities.

In the quarter, patent applications filed by domestic enterprises reached 10,982, sliding 7.1% yearly. Of the total, invention patent filings declined 6.4%, for the 10th consecutive quarter, to make up only around 40%, TIPO noted.

TIPO officials indicated that since filings for patent applications are highly related to R&D spending by enterprises, the decline in patent applications in the first quarter suggests that many companies had slashed R&D spending in response to challenging economic climates.

Among domestic patent applicants, Hon Hai Precision Industry Co., Ltd., world's largest EMS (electronics manufacturing service) firm by revenue, filed 391 applications in the quarter as the highest, which, however, represented a 32.59% deep drop yearly. TIPO officials said that Hon Hai has seen its patent filings decrease by over 30% year-on-year for two quarters in a row, due perhaps to the firm gradually restructuring its business deployments.

By invention patent application number, Acer Inc., a PC brand vendor, AU Optronics Corp., a display maker, Wistron Corp., an electronics contract manufacturer, and Taiwan Semiconductor Manufacturing Co., Ltd., a globally leading IC foundry, were the top-4 applicants among domestic enterprises in the quarter, according to TIPO.

Contrasting persistently decreasing filings by domestic companies, patent applications by foreigners in Taiwan, however, increased 3.4% yearly to 8,561 in the quarter, with invention patent filings surging 10.7% to account for 90% of the total.

TIPO said that increasing patent filings by foreigners show their growing interest in deploying and investing in the Taiwanese market. Among foreign applicants, U.S.-based Applied Materials Inc. led by filing 171 patent applications in the quarter, surging 128% yearly. (SC)