2019-02-25

Panorama of Turkish Intellectual Property Rights: 2015-2018

Considering the geopolitical conjuncture and global macroeconomic developments, the number of Intellectual Property Rights applications in 2018 remained below the target. According to TURKPATENT data, we can say that there was a positive trend in the number of foreign applications in 2018.

The negative trend seen in Intellectual Property Rights applications, including patents, stems from the 2016-2018 period which Turkey and in fact, the global conjuncture have been navigating. We observe the smoothest transition in trademarks. However, official data clearly show that the volatile movements that took place in the financial markets in August 2018 caused damage to both general economic activities and the area of Intellectual Property Rights for the rest of the year.

For this reason, 2018 statistics do not give the full picture given the potential of the Turkish economy. Especially with the recovery in 2019 and the 2018 base effect, we expect a positive momentum in the country's economy and Intellectual Property Rights in 2019.

In order to analyze the outlook and general trends of 2018, it is necessary to understand and interpret the 2015-2017 periods correctly. Having a positive correlation with economic developments, Intellectual Property Rights continue to be an important indicator of the production of higher value-added goods and services. For this reason, among all the steps taken to achieve a stronger and sustainable economy as a country, the fact that the multiplier effect of the Intellectual Property Rights field is one of the biggest factors is understood from the publication of the Intellectual Property Rights Code in the Official Gazette. When trying to establish a relationship between the GDP rankings of countries and the Intellectual Property Rights statistics, it is clear that we can talk about a statistically valid relationship between the two time series.

2015-2017 General Outlook

According to TURKPATENT statistics, the number of patents, utility model, trademark and design applications in the 2015-2017 period was as follows.

Although we relatively slowed down in 2017 in patent applications, it is seen that the importance of the patent issue in the period of 2015-2016 becomes more and more understood and appreciated. Especially after the average increase of 12.3% in the first quarter of 2016, the average of the last three quarters increases to 23.7% and doubles the first quarter performance. The aggressive increase rate in these remaining periods of 2016 (when the effect of the July 15 is taken into account), in fact, shows how important patents are for companies. One of the reasons for 2017's performance at the level of 15% is the rapid recovery process that started in the 2nd half of 2016 and the positive change of 23.68% in the 1st quarter of 2017.
Category2015Change2016Change2017Change
Patent13,958%12.7916,778%20.2019,283%14.93
Utility Model3,583%0.423,534%-1.373,320%-6.06
Trademark110,679%-0.78107,176%-3.17121,108%13.00
Design46,413%-5.6946,500%0.1946,853%0.76
As can be seen in the table, when we look at the averages for the period of 2015-2017, we can infer that the number of patent and trademark applications is in a positive trend. However, it is not possible to draw the same conclusion for utility models. This may be influenced by the fact that the support and incentives given to patents by TÜBİTAK are not provided for utility models. Growing awareness on Intellectual Property Rights is also manifested in the decreases in the number of utility models and increases in the number of patents. The negative change in 2016 can be interpreted as a result of the dire event we experienced on July 15, 2016. Especially, if we look at TURKPATENT data again, when we look at the change of first 6-month utility model applications in 2016 compared to the same period of 2015, we see a positive change of 6.2% on average. However, if we look at the second 6-month period of 2016, the average change is around -9.0% and this explains the performance of 2016. The downward trend in 2017 is not specific to Turkey and is also observed in the data of other countries. Especially, as shown in the WIPO report, in the Top 20 List in 2017 which also includes Turkey, only five countries achieved a positive change in the number of utility model applications. The remaining 14 countries (except for China because WIPO did not find the calculation of the rate of change valid as the Chinese Patent Office changed its method of data collection in 2017) had a negative change performance. As the average of countries showing negative change is -6.78%, therefore in a way, Turkey has achieved a relatively more positive result with a -6.1% performance.

On the design side, as can be seen, the downward trend between 2011-2015 turned positive and displayed an encouraging performance throughout the 2016-2017 period. Particularly, The Hague applications, which constitute approximately 12-14% of the total design applications, have been the driving force on the design side with an increase of 7.79% in 2017.

Again, as the WIPO report states, the number of trademark applications worldwide in 2017 (9.11 million) was almost three times the number of applications in 2007 (3.5 million). In parallel to this trend, these days, the first double-digit positive change of 13% seen since 2011 in Turkey has become a promising turning point for the future. Although we have performed above 12.6%, which is the rate of change in 2017 in the United States, when we look at our potential, it is obvious that we have a long way to go.

Analysis of 2018

As it can be seen when the monthly data of patent and trademark applications are carefully examined, the rate of change is progressing in a very positive manner until August 2018 compared to the previous year. However, we see that the speculative attacks we experienced in August 2018 had a negative impact on the rest of the year. While the change in trademark applications in the first 7-month period was 2.6%, it decreases to -5.9% in the remaining months. Similarly, the average change in patent applications in the first 7-month period is 3.8%, while this figure decreases to -5% in the remaining months.

A. Faruk Yamankaradeniz
Director of Shared Services
faruk.yamankaradeniz@destekpatent.com