Thank you, Jeff.
The Intellectual Property Institute of Canada, or IPIC, proposes that the federal government create a first patent program. Such a program has existed in Quebec since 2015 and offers financial assistance to help businesses obtain a first patent or an industrial design. The assistance can cover as much as 50% of eligible expenses, up to a maximum of $25,000. Such a program at the federal level would offer assistance to inventors and SMEs at a critical point when they have developed an idea to be protected, but may not have the necessary financial resources to obtain this protection or may not understand the importance of doing so. It is estimated that the program cost would be approximately $25 million a year.
Second, the federal government should adopt an innovation box model that provides favourable tax treatment for income derived from intellectual property, or IP. The expression "innovation box" comes from the checkbox provided on tax forms to identify revenues eligible for a reduced tax rate. The expression "patent box" is also used.
Tax incentives related to research and development activities, or R and D, support the invention process, while innovation boxes support the commercialization of these R and D activities. These incentives are complements and not substitutes. They work together to improve both R and D activity and commercialization activity in Canada.
and it is important that the government and Parliament continue to devote resources and time to ensure that IP laws remain current and competitive. We hope that you, the members of the industry committee, will be busy during your term in examining more changes to IP legislation.
Jeff will now speak about a recommendation that would require legislation.