ANNUAL REPORT WHERE IDEAS TAKE FLIGHT · Office, Korean Intellectual Property Office, State Intellectual Property Office of the People’s Republic of China, and the United States

WHERE IDEAS TAKE FLIGHT

2014/2015ANNUAL REPORT

CONTENTS

02 CHAIRMAN’S MESSAGE

CHIEF EXECUTIVE’S MESSAGE

ORGANISATION CHART

BOARD OF DIRECTORS

SENIOR MANAGEMENT

ACCESSIBILITY - BRINGING IP TO EVERYONE

YEAR AT A GLANCE

INTEROPERABILITY - BUILDING LINKAGES WITH PARTNERS

OUR PEOPLE

CORPORATE PROFILE

QUALITY - ENSURING EXCELLENT STANDARDS

2014 STAFF AWARDS

2013-2014 STATISTICS AND INFOGRAPHICS

FINANCIAL STATEMENTS

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2 3Annual Report 2014/15 Annual Report 2014/15

2014 was a fruitful year. While we continued to deepen our core competence in service delivery, efforts had begun to internationalise our footprint.

Domestically, three key policy anchors – accessibility, interoperability and quality – remained our guiding beacons as we stayed on course towards achieving our vision to becoming an IP hub of Asia.

Internationally, Singapore chaired the ASEAN Working Group for Intellectual Property Cooperation (AWGIPC), and began to seek opportunities in emerging markets such as China. ENHANCING ACCESSIBILITYEfforts to ensure accessibility to IP system in Singapore had intensified. We continued our efforts to help businesses and IP creators tap on the wellspring of international opportunities. A new $100-million IP Financing Scheme was launched to encourage the use of granted patent as loan collateral for business growth.

On the community front, IP 101, IPOS’ one-stop IP service centre, was launched. A new public campaign called

Embracing IP was introduced to make IP knowledge, networks and schemes more

accessible. Businesses, innovators, professionals and the community

Three key policy anchors – accessibility, interoperability and quality – remained our guiding beacons as we stayed on course towards achieving

our vision to becoming an IP hub of Asia.

CHIEF EXECUTIVE’S MESSAGE

MR TAN YIH SANChief Executive

could benefit from specially tailored info-connect sessions that promote knowledge, use and respect of IP for improving lives, as well as business and economic growth. DEEPENING INTEROPERABILITYExternal linkages were deepened to help companies internationalise. IPOS intensified efforts to establish linkages with key partners to build strategic inroads for IP creators and businesses to access overseas markets. As Chair of the AWGIPC, we worked in close cooperation with ASEAN states to strengthen our IP capabilities and infrastructure. 2014 saw the fruition of the ASEAN Patent Examination Co-operation (ASPEC) work-sharing programme, established to reduce complexity and waiting time for a patent to be granted. We also revamped ASEAN IP Portal which provides access to IP information in the region. Both initiatives would go a long way to serve 620 million people in ASEAN.

We also began to internationalise our IP services and explore opportunities in emerging markets such as China. New subsidiary companies – IPOS-International (IPOS-I) and IP ValueLab – were established to further our engagements into China and other regions. ENSURING QUALITYQuality IP products and services remained central to our development. IPOS structured an IP professional competency framework to strengthen our nation’s IP manpower base and cater to the increasing demand for IP services. Our training arm, IP Academy, continued its efforts to collaborate with several institutes of higher learning to develop undergraduate and post-graduate IP programmes. IPOS also worked with relevant industries to introduce IP skills upgrading programmes and certify professionals who had undergone such trainings. 2014 also saw the launch of the professional service scheme in IPOS to groom our IP specialists as trade mark examiners, patent examiners, as well as legal counsels. We will do more to better serve the IP industry and equip our professionals. MOVING FORWARDThe future of IP continues to be promising. We are excited to serve our creators and innovators to remake a better Singapore with IP. A good year ahead.

IPOS Annual Report 2014/2015

CHAIRMAN’S MESSAGE

2014 was a noteworthy year that saw many significant accomplishments for IPOS. While Singapore maintains its strong standing in the World Economic Forum’s Global Competitiveness Report 2014-2015, and can boast of having the best intellectual property (IP) protection in Asia for the fourth consecutive year, new foundations have also been laid this past year to bring about greater accessibility to our IP system, deepen interoperability with key partners and also improve the quality of IP filings for the future.

GLOBAL IP TRENDS IP continues to be a key driver for the global economy. In 2014, the IP5 offices1 received 2.3 million patent applications, a growth of 5.5% from 20132.

To help businesses, entrepreneurs and innovators take full advantage of the myriad of opportunities that are presented by the global IP economy, Singapore became the first ASEAN country to be appointed as an International Searching Authority. This will facilitate patent protection in over 140 countries through a single international application. Fortified by the ISO 9001:2008 certification of our Search and Examination Unit, I am pleased to say that IPOS is well positioned to help creators and inventors optimise their IP protection and effectively fast-track this success into other countries.

SINGAPORE’S IP SECTOR Singaporeans are quick to recognise the intrinsic value of IP and the need for quality IP services. In 2014, a total of 26,643 IP registrations were granted, representing an increase of 32% from 2013. In the same year, trade mark applications hit a record high of 40,540 filings. Our Registry team’s development and implementation of a single one-stop filing platform – IP2SG – is yet another strong testament to our ongoing commitment to improve our service offerings and the end-user IP filing experience.

IP has and will continue to play a key role in the development of Singapore’s economy. IP-intensive industries accounted for almost half of Singapore’s GDP from 2011 to 2013, generating 1.3 million jobs and contributing 42.5% of total employment in Singapore. IPOS will

continue to strengthen our nation’s IP competencies, skills and infrastructure, and ultimately, create high value-added jobs for our people. AN IP ECOSYSTEM FOR EVERYONE As we embarked on the journey to make IP more accessible to the community, we were mindful that the disadvantaged amongst us should not be forgotten. In March 2015, Singapore became the first country in Southeast Asia to accede to the Marrakesh Treaty, which provides for the improvement of access to information and copyrighted works for the visually impaired. At its core, a strong and accessible IP system should be enjoyed by each and every member of the society.

CONFIDENCE FOR THE FUTUREPersonally, I am very proud of the significant progress that IPOS has achieved thus far. IPOS’ achievements have been made possible because of the dedication and sterling leadership of the Chief Executive and his management team, IPOS Board members, colleagues at IPOS, all our partners and stakeholders in the IP ecosystem. I thank you all. In 2016, I look forward to celebrating IPOS’ 15th anniversary, which is a significant milestone for our statutory board. Let us all continue to strive towards greater heights of success in realising the IP dream for Singapore.

DR STANLEY LAIChairman

IPOS will continue to strengthen our nation’s IP competencies, skills and infrastructure, and ultimately, create high value-added jobs for our people.

1 The IP5 offices include the European Patent Office, Japan Patent Office, Korean Intellectual Property Office, State Intellectual Property Office of the People’s Republic of China, and the United States Patent and Trademark Office.

2 Source: http://www.fiveipoffices.org/statistics/2014keydata.pdf

Where Ideas Take Flight


Capability Development Department

Patent Search & Examination Unit

MEMBERS OF THE IPOS FAMILY

IP Academy IPOS-International IP ValueLab

Capacity Building Group

Hearings & Mediation Group

Deputy Chief Executive

Internal Audit Department


Assistant Chief Executive

ORGANISATION CHART AS OF 1 AUGUST 2015

Board of Directors

Chief Executive / Registrar

Strategic Planning & Policy Department

Deputy Chief Executive

Registries & Legal Cluster

Customer Service & Information Department Finance Department

Communications & Engagement Department

Legal Department Human Capital Department Enterprise Development Department

Registries of Patents, Designs & Plant Varieties

Information Technology Department

InternationalEngagement Department

IP 101Registry of Trade Marks

Corporate Services Group

Promotion Cluster

Group Director


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Mr Suresh SachiDeputy Managing Director for Corporate & Legal and General CounselAgency for Science, Technology and Research

Prof Tsui Kai ChongProvostSIM University

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BOARD OF DIRECTORSAS OF 1 AUGUST 2015

Dr Stanley LaiChairmanIntellectual Property Office of SingaporePartner and Head of IP PracticeAllen & Gledhill LLP

Ms Deborah HoManaging Director and Head of Senior Relationship Management for Southeast AsiaBarclays Bank

Dr Lim Kuo-YiManaging Director Monk’s Hill Ventures

Mr Poon Hong YuenDeputy SecretaryMinistry of Law

Mr Keoy Soo EarnPartner, Leader Mergers & Acquisitions, Singapore & Southeast Asiaand Valuation & Financial Modelling, Southeast AsiaDeloitte & Touche LLP

Ms Audrey YapManaging Partner Yusarn Audrey

Mr Tan Yih SanChief ExecutiveIntellectual Property Office of Singapore

Mr Abhijit GhoshPartner, International TaxPricewaterhouseCoopers

Mr Douglas FooExecutive ChairmanSakae Holdings

Mr Tan Min-LiangCEORazer Inc.

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Ms Sharmaine WuActing DirectorEnterprise Development Department

Mr Darren Chan Director Information Technology Department

Ms Trina HaActing Director IP Academy

Mr Dexter Teo Acting Director IPOS-International

Dr Eric GanDirector Capability Development Department

Mr Daren Tang Deputy Chief Executive Registries and Legal Cluster

Mrs Ang-Ong Bee LianDirectorCustomer Service and Information Department

Mr Mark LimDirector Hearings & Mediation Group

Mr Woo Yew ChungGroup Director Corporate Services Group

Mr Ng Kok WanAssistant Chief Executive International Services andExecutive Director IPOS-International

Dr Leong Hoi Liong Director Registries of Patents, Designs and Plant Varieties

Dr Bernard OngDirectorInternational Engagement Department

Ms Christina Lim Director Communications and Engagement Department

Mr Kok Kitt-WaiDirector IP Academy

Ms Tan Mei Lin Director Registry of Trade Marks

Ms Joan KohDirector Finance Department

Mr Chig Kam TackDirectorIP 101

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Mr Tan Yih San Chief Executive


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SENIOR MANAGEMENTAS OF 1 AUGUST 2015

Ms Joyce TanHead Internal Audit Department

Ms Michelle TanDirector IP ValueLab

Ms Chiam Lu LinDeputy Chief Executive Hearings & Mediation and Capacity Building Group andExecutive Director IP Academy

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Signing of MoU with SIPO to further IP collaborations

Acceptance into the Global Patent Prosecution Highway network

ISO Certification for Quality Management System

March 2015

Launch of one-stop e-Portal for IP registration – IP2SG

Findings of IP Manpower Survey

Accession to the Marrakesh Treaty

Recognition of first Singapore patent in Cambodia

Launch of IP Legal Clinic

Launch of Embracing IP @ IP 101 programme

October – December 2014

January – March 2015


December 2014

March 2015

February 2015

October 2014

November 2014

YEAR AT A GLANCE (April 2014 – March 2015)

Opening of IPOS’ Customer Service Centre – IP 101

Launch of $100-million IP Financing Scheme

Adoption of IPOS’ IP Competency Framework by LawSoc, ASPA and IES3

Enhancement to Plant Varieties Protection Act

Opening of IP Week @ SG

Launch of IPOS’ new subsidiary – IP ValueLab

Organisation of Best Practices for Patent Drafting in ASEAN workshop

Commencement of 44th ASEAN Working Group on IP Cooperation meeting

Appointment as International Authority in Patent Search and Examination

Signing of Patent Prosecution Highway pilot programme with European Patent Office

Continuation of WIPO Singapore Summer School

LOCAL

INTERNATIONAL

April – June 2014

July – September 2014


April 2014

July 2014

July 2014

September 2014

August 2014

June 2014

3 LawSoc : The Law Society of Singapore ASPA : Association of Singapore Patent Attorneys IES : The Institution of Engineers, Singapore


ACCESSIBILITY -BRINGING IP TO EVERYONE


CORPORATE PROFILE

OUR MISSIONTo provide the infrastructure, build expertise and grow the ecosystem in support of the greater creation, protection and exploitation of IP

OUR CORE VALUESIntegrity Professionalism Teamwork People-focused

OUR CORPORATE PURPOSEA trusted partner to empower creators of our knowledge economy

OUR VISIONAn IP hub of Asia




IP Week @ SG is an excellent opportunity for IP professionals and business leaders from around the world to network and share views on the competitive

advantages achieved through IP.

Dr Francis Gurry, Director General World Intellectual Property Organization

More than

delegates from over

countries attended IP Week @SG 2014

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Gathering of business and IP leaders at Asia’s premier IP event, IP Week @ SG 2014.

help businesses unlock the value of their IP through collaborations with global and local business partners, for provision of solutions in IP management, valuation and monetisation.

To deliver its goals, IP ValueLab partnered Singapore Accountancy Commission to develop and promote IP valuation guidelines, methodologies and best practices, as well as develop the curriculum for IP valuers training.

Developing and promoting IP programmes and initiatives to help businesses and entrepreneurs grow and build a

competitive advantage, locally and beyond.



ACCESSIBILITY

BUILDING A COMPETITIVE ADVANTAGE AT IP WEEK @ SG

Singapore’s annual international IP conference, IP Week @ SG, enjoyed a successful third run in 2014, drawing over 1,000 participants from more than 30 countries.

Held in August at the Marina Bay Sands Expo and Convention

Centre, the event saw C-suite executives, business heads and IP thought leaders network and share insights on how businesses and entrepreneurs could capitalise on the vast richness of the IP ecosystem, to gain a competitive advantage in today’s global markets.

One of the highlights of the event was the 2nd IP Management for C-Suite

Guest-of-Honour, Mr K Shanmugam, Minister for Foreign Affairs and Law (2014), together with Dr Francis Gurry, Director General of WIPO and CE of IPOS at the opening of IP Week @ SG 2014.

(IPMCS) conference. Distinguished speakers at the event included Dr Francis Gurry, Director General of the World Intellectual Property Organization, and Hitoshi Ito, Commissioner of the Japan Patent Office.

The event also witnessed the unveiling of IPOS’ brand new subsidiary, IP ValueLab. It aims to

16 Annual Report 2014/15 17Annual Report 2014/15


EXPANDING IP OUTREACH TO BUSINESSES AND THE COMMUNITY

Embracing IP @ IP 101 is a community outreach programme by IPOS which seeks to make IP knowledge, networks and schemes accessible to all. It focuses on encouraging businesses, innovators, professionals and the community to respect, protect and use IP to improve the quality of lives, as well as spur business and economic growth.

As part of the programme, the IP Business Clinic and IP Legal Clinic were launched in April 2014 and March 2015 respectively. The IP Business Clinic provides businesses and individuals with access to professional advice from qualified practitioners on IP business strategies, including IP monetisation and commercialisation, and the protection of IP overseas.

The IP Legal Clinic provides access to a panel of law firms for legal advice on IP disputes. This complimentary service is designed to help businesses and individuals understand remedy and enforcement options, as well as the viability of commencing proceedings and possible strategies to adopt in dispute cases.

Feedback from the sessions has been positive to date, and IPOS aspires to deliver more of such programmes to better serve the needs of businesses and the community.

enterprises and individuals had benefitted from the IP Business and IP Legal Clinics

More than

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A participant receiving advice on IP business strategies at an IP Business Clinic.


ACCESSIBILITY

The signing of a Memorandum of Understanding on the IP Financing Scheme partnership between IPOS and participating financial institutions in Singapore.

IP FINANCING SCHEME FOR BUSINESS GROWTH

In April 2014, Ms Indranee Rajah, Senior Minister of State for Law and Education, announced a S$100-million IP Financing Scheme that will enable local businesses to use their granted patents as collaterals for bank loans.

Targeted at IP-rich and asset-light companies in the technology sector,

the scheme aims to open a new avenue for innovative companies to access capital for growth and expansion.

Eligible companies must be incorporated in Singapore and possess granted patents to serve as collaterals. Three financial institutions – DBS, OCBC and UOB – had partnered IPOS to help local enterprises grow by unlocking the

value of their IP. Companies could apply through any of these banks to seek the necessary referrals for the valuation of their IP. Such loans are risk-shared with the Singapore Government.

The scheme reaffirmed IPOS’ commitment to tailor programmes and initiatives for businesses to grow, expand and gain a competitive edge in the global markets.

18 Annual Report 2014/15 Annual Report 2014/15 19

PROMOTING IP KNOWLEDGE AMONGST YOUTHS AND THE COMMUNITY

Under the ambit of the Embracing IP @ IP 101 programme, Project IP Partners (PIPP) is a public outreach effort by IPOS aimed at gathering established local IP creators from the creative industry to share their creation journeys and IP experiences with youths and the community. In 2015, the project kicked off with the genre of animation which saw more than 120 aspiring animators gather at IPOS’ customer service centre to learn from Tiny Island Productions - an award-winning local animation company. This was followed by a discussion led by a legal expert on how animators could capitalise their IP and protect their works from being exploited by others. PIPP has been received favourably since its launch. Familiar faces at subsequent sessions signalled the fact that IPOS is on the right track in bringing IP closer to the public.

Educational institutions are encouraged to use recordings of these sessions as part of their IP coaching to students. These resources are available on IPOS’ YouTube.


members of the public had benefitted from Embracing IP @ IP 101

More than

1,000

David Kwok, founder and CEO of Tiny Island Productions, sharing his IP journey at a PIPP session on animation.

Students trying their hands on a new game at a PIPP session on game development.

INTRODUCING IPOS’ INTEGRATED E-FILING PLATFORM - IP2SG

IP2SG is an integrated, one-stop online platform for IP e-filing, searches and transactions. It allows applicants and businesses to file their patent, trade mark and design applications online in a cost and time efficient manner.

The project was a collaboration amongst the Registries & Legal Cluster, the Information Technology Department and the Hearings & Mediation Group at IPOS. The strong internal collaboration facilitated the successful integration of Trade Mark, Design and Hearing & Mediation forms and workflow into the system within a year.

IP2SG attests to IPOS’ commitment to deliver better services in IP filing and protection for users.

To guide users, IPOS posted video tutorials on YouTube which offer simple step-by-step instructions on how to file IP applications online.

With the enhanced IP2SG system, I am now able to apply for IP registration and protection, do

complex searches and correspond with IPOS – all at my convenience. The improved user interface and

upgraded capabilities enable me to be more responsive to the needs of my firm’s clients,

and deliver more robust services to them.

Ooi Siew Ting, Patent Agent at Horizon IP


ACCESSIBILITY

All smiles from the project team at the successful launch of IP2SG Phase II in December 2014.

The IP2SG project team working hard to ensure a smooth system migration.


INTEROPERABILITY -BUILDING LINKAGES WITH PARTNERS

IPOS Annual Report 2014/2015Where Ideas Take Flight

ACCESSIBILITY

The Sam Willows performing at the concert of World IP Day 2014.

Learning to respect IP at a young age.

Partnering with IPOS are members of the public and local IP creators to celebrate all things creative and original.

CELEBRATING WORLD IP DAY 2014

In April every year, IPOS joins more than 100 nations across the world to celebrate World IP Day (WIPD) in honour of creators and their creations.

For WIPD 2014, Singapore organised a day of festivities that promoted IP awareness in genres such as film, music and design. More than 3,000 members of the public gathered to show their support and respect for IP. Well-known local fashion designer, Jo Soh, and director /actress, Michelle Chong, were appointed Singapore’s IP Ambassadors 2014.

The nation’s first crowdsourced song was also unveiled at the event by YouTube sensation, Jason Chen. Over 800 members of the local community contributed to the

making of a song entitled, “I Got You”, as they pledged to respect IP as a way of life.

In conjunction with Singapore’s accession to the Marrakesh Treaty, aimed at facilitating access to copyrighted works for the visually-impaired, IPOS also collaborated with the Singapore Association of the Visually Handicapped (SAVH) to lend support and raise funds for the cause.

The event culminated in an electrifying concert by local artistes Taufik Batisah, Jack and Rai, MICappella and The Sam Willows, who partnered IPOS to rally support for local IP creators and their original works.

WIPD has and will always be IPOS’ anchor public outreach event. Inspired by this year’s success, the community can look forward to more memorable and exciting events in the future.


ENJOYING ACCELERATED PATENT PROTECTION IN KEY MARKETS

In November 2014, IPOS joined a host of IP offices as part of the Global Patent Prosecution Highway (GPPH) network, increasing Singapore’s current PPH arrangements from five to 20 offices.

The GPPH network allows IP offices across the world to share search and examination results, providing businesses with the option of accelerating their patent applications in those territories, based on the results of a corresponding Singapore patent application.

In January 2015, Singapore became one of only four non-IP5 offices to establish a PPH with the European Patent Office. The cumulative number of countries which Singapore had established PPHs with was 30, inclusive of China, the European Union, Japan, the United States of America, and countries under the ASEAN Patent Examination Cooperation programme. This makes Singapore the second most interconnected patent office in the world, after the United States of America.



Singapore had established PPHs with

countries30

CE of IPOS and former Director General of the National Office of Intellectual Property of Vietnam, Mr Ta Quang Minh, at the signing of a Memorandum of Understanding to signal enhanced cooperation between the two IP offices.

GAINING ACCESS TO ASEAN MARKETS AND BEYOND FOR BUSINESS GROWTH

The ASEAN Working Group on Intellectual Property Cooperation (AWGIPC) is a strategic platform for ASEAN IP chiefs to discuss and progress IP developments in the region. In a bid to deepen


INTEROPERABILITY

Establishing linkages with key partners to build strategic inroads for IP creators and businesses to tap on the

wellspring of international opportunities.

Growing IP for the region, by the region - ASEAN Working Group on IP Cooperation.

this cooperation, ASEAN Patent Examination Co-operation (ASPEC) – the first regional patent work-sharing programme among nine ASEAN members – was launched in June 2009.

Since then, the ASPEC programme saw progress with all requests being acted on within six months of filing.

The strong collaborative relationships among the ASEAN IP offices enabled examiners to access and use each other’s reports for similar patent applications, thereby granting patent applicants faster access to ASEAN markets.


EASING PATENT REGISTRATION IN CAMBODIA

A Memorandum of Understanding (MoU) between IPOS and Cambodia’s Ministry of Industry and Handicraft was signed in January 2015 to further boost the accessibility of IP protection between the two countries. Two months later, the first Singapore patent was granted protection and recognised in Cambodia. This constituted part of IPOS’ wider efforts to facilitate the process of obtaining IP protection in the region.

Earlier, IPOS signed a series of bilateral agreements with the European Patent Office, the German Patent and Trade Mark Office and the Russian Federal Service for Intellectual Property, to enhance patent connectivity. These agreements are set to open up more growth and expansion opportunities for businesses and entrepreneurs seeking to venture into Europe, Germany and Russia.


Singapore patent recognised in Cambodia in 2015

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CE of IPOS and Cambodia’s Senior Minister for Industry and Handicraft, Dr Cham Prasidh, at the signing of a Memorandum of Understanding between the two IP offices.

FOSTERING BILATERAL RELATIONSHIPS WITH KEY ECONOMIC PARTNERS

IPOS and the State Intellectual Property Office of China (SIPO) signed a Memorandum of Understanding (MoU) at the sidelines of the 11th Singapore-China Joint Council for Bilateral Cooperation (JCBC) meeting in October 2014. This would

enhance IP cooperation between the two countries.

Under the agreement, the Sino-Singapore Guangzhou Knowledge City (SSGKC) is envisioned to be a model zone for IP cooperation between Singapore and China. This added to previous plans between IPOS-International (IPOS-l) and other stakeholders to develop activities that would help companies in SSGKC

commercialise and develop their IP, undertake capacity building and training, as well as host study visits and exchanges.

To meet the needs of both Singapore and Chinese companies, IPOS, alongside with SIPO and the Guangdong Provincial People’s Government, established an IPOS-I representative office within SSGKC to offer IP services and trainings.


INTEROPERABILITY

Deputy Prime Minister and Coordinating Minister for National Security and Minister for Home Affairs (2014), Mr Teo Chee Hean, and China’s Vice Premier, Zhang Gaoli, witnessing the signing of a Memorandum of Understanding by CE of IPOS and Commissioner of SIPO, Dr Shen Changyu.


DESIGNING TRAINING PROGRAMMES FOR AN INTERNATIONAL COMMUNITY

Over the past year, the training arm of IPOS, IP Academy, focussed on developing and delivering a wide range of customised IP training programmes and training initiatives for participants from all over the world.

These included the WIPO Singapore Summer School that provided an opportunity for senior students and young professionals to acquire deeper knowledge of IP, gain an appreciation of IP as a tool for economic, social, cultural and technological development, and understand the role WIPO plays in the global administration of IP.



More than

trainingprogrammes conducted by IPA

participants had benefitted from

Over

milliontrade marks in ASEAN countries are available on TMview

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Senior government officials from the Guangzhou Development District of China at a customised IP training programme organised by IP Academy.

Participants from all over the world had benefitted from the in-depth training courses provided by IP Academy.

DEVELOPING COMMON IP GUIDELINES ACROSS ASEAN Common guidelines for the substantive examination of trade marks in ASEAN countries were developed as part of the EU-ASEAN Project on the Protection of Intellectual Property Rights (ECAP III Phase II).

These common guidelines took into account the legislations, regulations, practices and administrative decisions of ASEAN countries, and harmonised IP standards for the protection and administration of IP rights in the region.

The guidelines would facilitate information flow within the region’s IP knowledge network and enable stakeholders to access relevant information such as notices and procedures on the ASEAN Patent Examination Co-

operation (ASPEC). When completed, these guidelines will be accessible from the ASEAN IP Portal.

Aside from the common guidelines, another major initiative launched in August 2014 was ASEAN TMview,


INTEROPERABILITY

Examiners sharing insights on how patent laws and practices work in their countries.

Sharing knowledge and expertise at IPOS were patent examiners from various ASEAN member states.

which offers free and easy access to ASEAN trade mark data. The database included over 2.2 million trade mark applications and registrations of participating ASEAN countries, including Singapore.


QUALITY -ENSURING EXCELLENT STANDARDS


The programme covered fundamental aspects of IP and issues on IP protection and commercialisation. It also included real life case studies which added to my understanding and appreciation of prevailing IP issues.

This is an intensive and broad-based training programme that has deepened my understanding and appreciation of IP issues. I value the practical insights gained from the open discussions and informative sharing by the IP experts.

Paul Tiebot, PhD Candidate Ghent University, Belgium

- A participant of the WIPO Singapore Summer School 2014

Tang Ping, Director General Office, Guangzhou Development District Organisation Department, China

- A participant of the Promotion of Utilisation of Intellectual Property Information programme


INTEROPERABILITY

Here are what some of the participants of IPA courses had to say:


ATTAINING ISO CERTIFICATION AS A MARK OF QUALITY

In November 2014, IPOS’ Search and Examination Unit was awarded the internationally recognised ISO 9001:2008 certification for Quality Management System. The achievement of this award attested to the high standards and quality IPOS upholds.

Beyond the certification, IPOS initiated study trips to overseas IP offices to build up knowledge of search techniques and databases, as well as understand each other’s patent processes and examination practices. These visits allowed patent examiners from the region to exchange best practices and knowledge in the field of patent search and examination.

ACCELERATING PATENT FIRST FILING

In April 2014, IPOS’ Search and Examination Unit achieved the goal of providing the first search and examination report in about 60 days for patent applications first filed at IPOS – a significant reduction in time taken compared to an average of 12 months in the past. With the accelerated service, businesses and innovators may now benefit from having a swift assessment on the merits of their inventions, and advance their business interests early to compete in the global markets.


patent applications first filed at IPOS

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Achieving ISO 9001:2008 certification standards to better serve businesses and IP creators.

Gleaning knowledge from a Japan Patent Office study trip.

certification for Quality Management System

ISO 9001:2008

Ensuring a quality IP regime through global benchmarking and developing a professional workforce that supports

innovation and creativity.

ACHIEVING INTERNATIONAL PATENT SEARCH AND EXAMINATION AUTHORITY STATUS

It was a historic milestone for Singapore as IPOS became the first IP office in ASEAN to be appointed an International Authority in Patent Search and Examination. This appointment was announced by the Assembly of the Patent Cooperation Treaty (PCT) Union during the 54th World Intellectual Property Organization (WIPO) Assemblies in September 2014.


QUALITY

IPOS became the first IP office in ASEAN to be appointed an International Authority in Patent Search and Examination in 2014.

The PCT is an international patent filing system administered by WIPO. It assists businesses and inventors to seek patent protection amongst 148 countries through a single international patent application. The search and examination of PCT applications can only be conducted by appointed International Authorities known as International Searching Authority (ISA) and International Preliminary Examining Authority (IPEA).

With Singapore’s appointment, businesses and innovators,

particularly in Asia, would have increased use of the PCT system to access other markets. They would also enjoy greater time and cost savings.

The ability to do PCT search and examination adds to the suite of IP services which IPOS offers to innovators and businesses, bringing more IP related work to Singapore and strengthening the nation’s proposition as an IP hub of Asia. It is hoped that this would also engender more innovative activities and high value-added jobs in Singapore.

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Performance Pledge to expedite IP registration:

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PLEDGING EXPEDITED SERVICE FOR IP REGISTRATION

In August 2014, IPOS launched a Performance Pledge as part of an ongoing effort to deliver quality IP services for businesses and innovators. From the time an application is filed, the registry team commits to issue a patent grant, trade mark and design registration within 12, nine and four months respectively*. The expedited service is aimed at helping applicants gain a competitive advantage through time and cost efficiencies, when venturing into global markets. Details of the Performance Pledge for IP registration are accessible via the Corporate Dashboard page on IPOS’ corporate website. The improved transparency and IP registration processes for users are testament to IPOS’ dedication towards higher level of customer satisfaction and service excellence.

REVIEWING THE TRADE MARKS DISPUTE RESOLUTION REGIME

In March 2014, IPOS embarked on a review of the Trade Marks Dispute Resolution Regime. A broad spectrum of stakeholders comprised of the Supreme Court, international and national trade mark filers, Singaporean companies from the top local filers, IP professional bodies, law firms and trade mark academics, were consulted on a variety of topics. These included evidence, procedure and mediation (under IPOS’ collaboration with WIPO Arbitration and Mediation Center). In addition, IPOS benchmarked our current dispute resolution practices against those of other leading IP offices to identify best practices.

These consultations and research were distilled into a set of recommendations for implementation that was subsequently announced in November 2014. Parties involved in trade mark disputes can now look forward to positive changes, including the clarification and simplification of our procedures, for an enhanced dispute resolution experience.

months

months

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Trade mark

Design

*Subject to objections and irregularities in the application process.

UPSKILLING OUR PROFESSIONALS WITH QUALITY TRAINING PROGRAMMES

IP Academy, a subsidiary of IPOS, is dedicated to the broadening and deepening of Singapore’s knowledge and capabilities in IP protection, exploitation and management. Last year, IPOS developed seven high-level training programmes that complied with the IP Competency Framework (IPCF) and the Singapore Workforce Skills Qualifications (WSQ) national credentialing system, with four more pending accreditation.

These included the IPCF-accredited courses Review Risk Management in IP, Review Audit of Intellectual Assets, and the WSQ-accredited course, Monitor and Maintain IP Processes.


QUALITY

Highly qualified speakers and wide-ranging courses were conducted by IPA to broaden the IP knowledge of participants.

Student engagement at IPA training sessions for quality learning.

IPA collaborated with the Singapore Business Advisors and Consultants Council and implemented IPCF- and WSQ- accredited IP management courses for business consultants.These accredited courses support

Singapore’s efforts to professionalise the IP ecosystem, allowing IP professionals to enhance their capabilities and deliver high level of service standards to businesses and IP creators.


OUR PEOPLE



QUALITY

IPOS officers after a week of networking and learning at Asia’s premier IP event - IP Week @ SG 2014.


ENHANCING PLANT VARIETIES PROTECTION

In July 2014, Singapore became the first ASEAN country to extend the Plant Varieties Protection Act to cover all plant genera and species.

The enhanced regime would allow plant breeders, importers and

exporters in the fruits, vegetables and plants trade to take their horticulture business further, as well as spur research and development in new plant varieties.

VALUE-ADDING TO OUR PEOPLE

For the year in review, strong emphasis was placed on the

continual training and upgrading of our officers. IPOS provided opportunities to keep officers abreast of the latest IP developments through structured training programmes. This ensures that our officers are equipped with the necessary skillsets and knowledge to assist customers with their IP needs, and be a trusted partner of all creators.


OUR PEOPLE - OUR GREATEST ASSET

At IPOS, we aim to be a vibrant and dynamic organisation that embraces integrity, performance, professionalism and teamwork. We


Extensively-trained patent examiners who are experts at conducting comprehensive searches on patent, non-patent and other databases.

create an environment that promotes the growth and development of our people, one that enables every individual to reach their fullest potential. We aspire towards making IPOS a great place to work, strengthened through regular staff

events and social activities. These are key tenets that motivate and build our organisation, as we continue our journey towards becoming an IP hub of Asia.


STAFF AWARDS IN 2014

5 Years Long Service Award Recipients

Dr Eric Gan Capability Development Department

Mr Ng Kok Wan Patent Search & Examination Unit

Ms Nurhidayah Binte RosliRegistry of Patents

Mr Desmond TanStrategic Planning & Policy Department


Mr Francis ChewCustomer Service & Information Department

Ms Angelia Chia Communications & Engagement Department

Mr Adrian ChiewLegal Department

Mr Ken ChinRegistry of Trade Marks

Mr Edmund Tay Customer Service & Information Department


Ms Erlina Bte AdamRegistry of Trade Marks

Ms Sharon HengFinance Department

Ms Linda Bernadatte d/o A MitchellRegistry of Patents

Ms Nur’Abidah Binti CholanEnterprise Development Department

Ms Nurhadiana Bte Mohd RahimIP 101

Ms Siti Hajar Bte SuaimeHuman Capital Department

Ms Sitizawiah Bte MasnoorRegistry of Trade Marks


Ms Diana Lim Registry of Patents

Ms Normala Bte JasmaniRegistry of Trade Marks

Ms Nur’Azah Binti HassanRegistry of Trade Marks

Mr John TanRegistry of Patents

Mr Daren Tang Registries and Legal Cluster

30 Years Long Service Award Recipient

Mr Tan Yih SanChief Executive Office

35 Years Long Service Award Recipient

Ms Rahimah Binti Maarof IP 101

LONG SERVICE AWARDS

MinLaw Star Service and PS21 Star Service Awards 2015

Mr Nae Win AungEnterprise Development Department

National Day Awards 2015

National Day Commendation Medal

Ms Isabelle Tan International Engagement Department

National Day Efficiency Medal

Ms Parameswari d/o Ramalingam IP 101

National Day Long Service Medal

Ms Norlela Binti NasirHuman Capital Department

OUR PEOPLE



Strengthening unity and building camaraderie through internal events.

Senior management “walking the talk” – leadership in action at work and play.

Embracing diversity through the appreciation of different cultures.

EMPLOYEE ENGAGEMENT


OUR PEOPLE

Equipping our people with IP knowledge and skillsets through regular training sessions.

Organisational alignment on work goals at townhall sessions. Broadening our people’s experiences and learning through exchange programmes with overseas IP offices.

TRAINING AND DEVELOPMENT

Reflecting on the late Minister Mentor Lee Kuan Yew’s contributions to Singapore.


My job requires me to keep abreast of the latest IP developments in the region so that I remain relevant to serve the needs of fellow Singaporeans.

I am glad to be in IPOS where our management is supportive of grooming and developing us to our fullest potential.

Mr Fu ZhikangAssistant DirectorRegistry of Patents

Ms Siti Hajar Bte SuaimeExecutiveHuman Capital Department


Towards a vibrant and dynamic work culture!


OUR PEOPLE

Fostering social cohesion through team-building events.

Encouraging good work-life balance through scheduled health activities.

WORK-LIFE BALANCE

Germany

2319

United States

of America

6063

United

Kingdom

2110

France

1734

China

1928

Italy

1123

Singapore

9103

Advertising; business management; business administration; office functions

1096

Scientific, nautical, surveying, photographic, cinematographic etc

4031

Services for providing food and drink; temporary accommodation

792

Advertising; business management; business administration; office functions

3473

Education; providing of training; entertainment; sporting and cultural activities

756

Scientific and technological services and research and design relating thereto etc

2293

Scientific, nautical, surveying, photographic, cinematographic etc

664

Education; providing of training; entertainment; sporting and cultural activities

2223

Scientific and technological services and research and design relating thereto etc

490

Pharmaceutical and veterinary preparations etc

2176

Switzerland

1755

Australia

1039

Japan

3217

TOP 5 APPLICANTS

TOP 5 CLASSES

Local Global

SINGAPORE SPORTS

COUNCIL

STARHUB LTDFULLSHARE GROUP PTE. LTD.

INTERNATIONAL ENTERPRISE SINGAPORE

BOARD

MOHAMED MUSTAFA & SAMSUDDIN CO. PTE LTD

Local

76 71 6345

0

20

406080

100 89

50

ALIBABA GROUP HOLDING

LIMITED KY

ABBOTT LABORATORIES

US

AEON KABUSHIKI KAISHA (also

Trading as AEON Co. Ltd.) JP

SOCIETE NATIONALE DES

CHEMINS DE FER FRANCAIS

SNCF FR

WIKIMEDIA FOUNDATION,

INC. US

Global

104105135

285

0

100

150

200

250

300

97



TRADE MARKSSingapore’s Trade Mark Landscape in 2014

TOP 10 COUNTRIES

385,146Registrations

in force


STATISTICS 2013-2014


Singapore

776

Articles of adornment

407

Recording, communication or information retrieval equipment

507

Furnishing

78Articles of adornment

442

Fluid distribution equipment, sanitary heating, ventilation and air-conditioning equipment, solid fuel

36

Packages and containers for the transport or handling of goods

147

Recording, communication or information retrieval equipment

31

Fluid distribution equipment, sanitary heating, ventilation and air-conditioning equipment, solid fuel

120

Packages and containers for the transport or handling of goods

27

Furnishing

113

Republic of

Korea

106

Hong Kong

SAR

30

United States

of America

240

China

45

Brazil

27

France

25

Japan

193

United

Kingdom

38

Switzerland

20

TOP 5 APPLICANTS

TOP 5 CLASSES

Local Global


INDUSTRIAL DESIGNS

TOP 10 COUNTRIES

Singapore’s Industrial Design Landscape in 2014

ASPIAL-LEE HWA JEWELLERY

SINGAPORE PTE LTD

WOHA ARCHITECTS

PTE LTD

SK JEWELLERY PTE LTD

SKJ GROUP PTE LTD

STAR FURNITURE

PTE LTD

Local

374585

208

0

50

100

150

200

250

20

ASPIAL-LEE HWA JEWELLERY

SINGAPORE PTE LTD SG

WOHA ARCHITECTS PTE LTD SG

SK JEWELLERY PTE LTD SG

SAMSUNG ELECTRONICS

CO LTD KR

SKJ GROUP PTE LTD SG

Global

414585

208

0

50

100

150

200

250

37

14,587Registrations

in force


Switzerland

550

France

353

Japan

1424

Germany

543

China

327

Netherlands

171

Singapore

1303

United

Kingdom

356

Australia

169

TOP 5 APPLICANTS

TOP 5 CLASSES

PATENTSSingapore’s Patent Landscape in 2014

TOP 10 COUNTRIES

HUMAN NECESSITIES

PHYSICS

PERFORMING OPERATIONS;

TRANSPORTING

ELECTRICITY

100

AGENCY FOR SCIENCE,

TECHNOLOGY AND RESEARCH

NATIONAL UNIVERSITY OF

SINGAPORE

NANYANG TECHNOLOGICAL

UNIVERSITY

STATS CHIPPAC LTD

SINGAPORE HEALTH

SERVICES PTE LTD

Local

2969

127

335

50

150

200

250

300

350

290

100

AGENCY FOR SCIENCE,

TECHNOLOGY AND RESEARCH SG

UNITED TECHNOLOGIES CORPORATION

US

NANYANG TECHNOLOGICAL UNIVERSITY SG

LAM RESEARCH CORPORATION

US

JOHNSON & JOHNSON

VISION CARE, INC US

Global

106120127

335

50

150

200

250

300

350

88

CHEMISTRY; METALLURGY 32.4%

23.6%

20.7%

18.7%

18.6%

0

47,422Registrations

in force

United States

of America

3645





International applications filed through Singapore

Registrations in force in Singapore1

Renewals filed in Singapore

2013 2014

Trade Mark international applications filed through

Singapore as the office of origin 221 476

PCT international applications filed through Singapore

as the receiving office 564 632

Industrial Design international applications filed

through Singapore 1 1

2013 2014

Trade Marks 336,879 385,146

Patents 46,603 47,422

Industrial Designs 12,823 14,587

2013 2014

Trade Marks 16,798 17,974

Patents 44,469 44,082

Industrial Designs 1,207 942

2014: Data extracted in May 2015

1Patent registrations in force do not include patents pending restoration.


STATISTICS 2013 - 2014

Applications and Registrations

Industrial Design international registrations resulting from international applications designating Singapore under the Geneva Act of the Hague Agreement

Applications Registrations

2013 2014 2013 2014

Trade Marks Total (Applications) 21,245 21,856 12,920 19,430

Local 4,809 5,635 2,835 4,573

Foreign 16,436 16,221 10,085 14,857

National 12,381 12,960 8,274 11,858

Applications filed under Madrid Protocol 8,864 8,896 4,646 7,572

Total (Class) 39,671 40,540 22,110 34,321

Local 7,579 9,086 4,351 7,238

Foreign 32,092 31,454 17,759 27,083

National 20,872 22,090 13,251 19,499

Applications filed under Madrid Protocol 18,799 18,450 8,859 14,822

Patents 9,722 10,312 5,575 5,538

Local 1,143 1,303 393 402

Foreign 8,579 9,009 5,182 5,136

National 3,165 3,189 1,428 1,602

PCT applications entering National Phase 6,557 7,123 4,147 3,936

Industrial Designs 1,681 1,629 1,675 1,675

Local 718 776 683 716

Foreign 963 853 992 959

Note: Local includes all applications with at least one local applicant.

2013 2014

Registrations* 712 676

Designs contained in Registrations 2,639 2,656

Source: WIPO Statistics Database

*A single registration may contain up to 100 designs



Trade Marks Patents DesignsCountry / Economy Applications Registrations Applications Registrations Applications Registrations

National Madrid National Madrid National PCT National PCT National National

Albania 0 4 0 0 0 0 0 0 0 0 Algeria 0 0 0 0 0 0 0 0 0 0 Andorra 0 0 0 0 0 0 0 1 0 0 Angola 0 0 0 0 0 0 0 0 0 0 Antigua and Barbuda 0 1 0 0 0 0 0 0 0 0 Argentina 3 0 5 0 0 0 0 1 0 0 Armenia 0 5 0 5 0 0 0 0 0 0 Aruba 0 0 0 0 0 0 0 0 0 0 Australia 248 791 207 520 46 123 18 64 13 17 Austria 14 238 17 158 5 67 7 25 0 1 Azerbaijan 0 0 0 1 0 0 0 0 0 0 Bahamas 19 1 27 1 0 0 0 2 0 0 Bahrain 0 0 0 0 0 0 0 0 0 0 Bangladesh 0 0 1 0 0 0 0 0 0 0 Barbados 15 0 5 2 1 2 1 2 0 0 Belarus 0 10 0 2 0 0 0 0 0 0 Belgium 5 105 10 150 18 42 21 33 2 4 Belize 1 0 1 0 0 1 0 1 0 0 Benelux 0 342 0 8 0 0 0 0 0 0 Bermuda 61 0 22 7 7 2 1 3 0 0 Botswana 0 0 0 0 0 0 0 0 0 0 Bosnia and Herzegovina 0 1 0 0 0 0 0 0 0 0 Brazil 35 2 25 0 1 27 0 12 27 24 British West Indies 0 0 3 0 0 0 0 0 0 0 Brunei Darussalam 2 0 1 0 0 0 0 1 0 0 Bulgaria 1 35 0 43 0 2 0 0 0 0 Cambodia 0 0 0 0 0 0 0 0 0 0 Canada 167 12 147 27 30 64 18 60 10 7 Cayman Islands 410 0 207 7 32 4 7 1 0 0 Chad 0 0 0 0 0 0 0 0 0 0 Channel Islands 2 0 0 0 0 0 0 0 0 0 Chile 11 0 13 0 0 1 0 0 0 0 China 959 969 626 961 47 280 9 110 45 47 Colombia 7 2 4 0 0 2 0 1 0 0 Columbia 0 0 0 0 0 0 0 0 0 0 Costa Rica 0 0 0 0 0 0 0 0 0 0 Côte D’Ivoire 0 5 0 0 0 0 0 0 0 0 Croatia 0 6 0 6 0 0 0 2 0 0 Cuba 0 1 0 1 0 3 0 1 0 0 Curacao 1 9 0 0 0 0 0 0 0 0 Cyprus 7 33 9 74 2 11 0 3 0 1 Czech Republic 0 50 0 24 2 3 0 1 0 0 Democratic People’s Republic of Korea 1 1 0 0 0 0 0 0 0 0

Applications and Registrations in 2014 according to country of applicant



Top 10 filers of applications in Singapore in 2014

Rank Overall filers Number Local filers NumberTrade Marks 1 ALIBABA GROUP HOLDING LIMITED KY 285 SINGAPORE SPORTS COUNCIL 89 2 AEON KABUSHIKI KAISHA 135 FULLSHARE GROUP PTE. LTD. 76 (ALSO TRADING AS AEON CO. LTD.) JP 3 ABBOTT LABORATORIES US 105 STARHUB LTD 71 4 SOCIETE NATIONALE DES CHEMINS 104 INTERNATIONAL ENTERPRISE 63 DE FER FRANCAIS SNCF FR SINGAPORE BOARD 5 WIKIMEDIA FOUNDATION, INC. US 97 MOHAMED MUSTAFA & SAMSUDDIN 45 CO. PTE LTD 6 NOVARTIS AG CH 89 WORLD GLOBAL ASSETS PTE. LTD. 40 7 SINGAPORE SPORTS COUNCIL SG 89 LEONIAN SINGAPORE PTE. LTD. 39 8 APPLE INC. US 88 POLLUX HOSPITALITY PTE. LTD. 36 9 KING.COM LIMITED MT 88 SINGAPORE EXCHANGE LIMITED 33 10 AMOREPACIFIC CORPORATION KR 86 DANATEQ PTE. LTD. 32

Rank Overall filers Number Local filers NumberPatents 1 AGENCY FOR SCIENCE, TECHNOLOGY 335 AGENCY FOR SCIENCE, TECHNOLOGY 335 AND RESEARCH SG AND RESEARCH 2 NANYANG TECHNOLOGICAL 127 NANYANG TECHNOLOGICAL 127 UNIVERSITY SG UNIVERSITY 3 UNITED TECHNOLOGIES CORPORATION US 120 NATIONAL UNIVERSITY OF SINGAPORE 69 4 LAM RESEARCH CORPORATION US 106 STATS CHIPPAC LTD 29 5 JOHNSON & JOHNSON VISION 88 SINGAPORE HEALTH SERVICES 29 CARE, INC US PTE LTD 6 NOVARTIS AG CH 87 GLOBAL FOUNDRIES SINGAPORE PTE LTD 21 7 HALLIBURTON ENERGY SERVICES, INC US 81 CREATIVE TECHNOLOGY LTD 16 8 TENCENT TECHNOLOGY (SHENZHEN) 75 MASTERCARD ASIA PACIFIC PTE LTD 13 COMPANY LIMITED CN 9 QUALCOMM INCORPORATED US 75 HEPTAGON MICRO OPTICS PTE LTD 12 10 EXXONMOBIL RESEARCH AND 71 NANYANG POLYTECHNIC 9 ENGINEERING COMPANY US 11 F. HOFFMANN-LA ROCHE AG CH 71 NGEE ANN POLYTECHNIC 9 12 - - ASM TECHNOLOGY SINGAPORE PTE LTD 9

Rank Overall filers Number Local filers NumberIndustrial 1 ASPIAL-LEE HWA JEWELLERY 208 ASPIAL-LEE HWA JEWELLERY 208Designs SINGAPORE PTE LTD SG SINGAPORE PTE LTD 2 SK JEWELLERY PTE LTD SG 85 SK JEWELLERY PTE LTD 85 3 WOHA ARCHITECTS PTE LTD SG 45 WOHA ARCHITECTS PTE LTD 45 4 SAMSUNG ELECTRONICS CO LTD KR 41 SKJ GROUP PTE LTD 37 5 SKJ GROUP PTE LTD SG 37 STAR FURNITURE PTE LTD 20 6 KONINKLIJKE PHILIPS N.V. NL 33 LOVE & CO. 17 7 SWATCH AG (SWATCH SA) (SWATCH LTD) CH 31 SHEVRON PTE LTD 14 8 A3NP INDUSTRIA E COMERCIO DE 26 E & Y DESIGN PTE LTD 10 MOVEIS S/A BR 9 DAIKIN INDUSTRIES LTD JP 26 JULIE ROBERTS PTE LTD 10 10 3M INNOVATIVE PROPERTIES COMPANY US 25 EIGHT INC. DESIGN SINGAPORE PTE LTD 8 11 - - KUSAGA ATHLETIC PTE LTD 8 12 - - TECHNIGROUP FAR EAST PTE LTD 8 13 - - VICPLAS HOLDINGS PTE LTD 8






Macau SAR 52 0 5 4 0 2 1 1 9 7 Madagascar 0 0 0 0 0 0 0 0 0 0 Malaysia 550 2 496 3 14 34 6 14 19 26 Maldives 0 0 5 0 0 0 0 0 0 0 Mali 1 0 1 0 0 0 0 0 0 0 Malta 10 51 12 37 0 3 0 0 0 0 Marshall Islands 11 0 5 0 0 0 0 0 0 0 Mauritius 30 3 41 2 0 0 0 0 0 0 Mexico 32 7 27 3 0 1 1 4 0 0 Monaco 3 14 1 41 0 0 0 0 0 0 Mongolia 0 0 0 3 0 0 0 0 0 0 Montenegro 0 5 0 0 0 0 0 0 0 0 Morocco 0 3 0 4 0 0 0 0 0 0 Myanmar 2 0 0 0 0 0 0 0 0 0 Nepal 0 0 0 0 0 0 0 0 0 0 Netherlands 146 242 139 396 34 137 29 84 7 2 Netherlands Antilles 0 0 0 0 0 0 0 1 0 0 New Zealand 84 141 58 97 2 14 3 7 4 4 Nigeria 2 0 2 0 0 0 0 0 0 0 Norway 8 144 4 64 17 52 2 32 1 2 Oman 5 0 4 0 0 0 0 0 0 0 Pakistan 10 0 6 2 0 0 0 0 0 0 Panama 6 14 14 4 0 1 2 1 0 0 Papua New Guinea 0 0 0 0 0 0 0 0 0 0 Paraguay 1 0 0 0 0 0 0 0 0 0 Peru 5 0 4 0 0 0 0 0 0 0 Philippines 25 19 50 21 9 2 1 0 1 1 Poland 3 30 4 33 0 10 0 4 0 0 Portugal 2 42 5 37 2 7 0 3 1 1 Puerto Rico 0 0 0 0 2 0 0 1 0 0 Qatar 48 0 14 0 0 1 0 0 0 0 Republic of Korea 683 272 598 236 35 111 17 70 106 142 Republic of Moldova 0 0 0 0 0 0 0 1 0 0 Romania 0 8 0 3 0 1 0 0 0 0 Russian Federation 6 245 11 141 2 7 2 6 0 0 Saint Kitts and Nevis 0 0 0 0 0 0 0 0 0 0 Saint Lucia 3 3 0 0 0 0 0 0 0 0 Saint Vincent and The Grenadines 0 0 0 0 0 0 0 0 0 0 Samoa 4 0 5 0 0 0 0 0 0 0 San Marino 0 0 0 0 0 0 0 0 0 0 Sao Tome and Principe 0 0 0 1 0 0 0 0 0 0 Saudi Arabia 72 0 67 0 0 41 0 4 0 0 Serbia 0 0 0 0 0 0 0 0 0 0 Sierra Leone 0 2 0 0 0 0 0 0 0 0 Seychelles 3 0 3 0 0 1 1 0 0 0






Democratic Republic of the Congo 0 0 0 0 0 0 0 0 0 0 Denmark 43 152 35 162 6 33 2 39 5 5 Dominica 0 0 0 6 1 0 1 0 0 0 Dominican Republic 1 0 1 0 0 0 0 0 0 0 Dutch Antilies 0 0 0 0 0 0 0 0 0 0 Ecuador 1 0 0 0 0 0 0 0 0 0 Egypt 0 14 1 0 0 0 0 2 0 0 Estonia 0 2 2 16 0 3 0 0 0 0 Ethiopia 0 0 0 0 0 0 0 0 0 0 European Union 0 832 0 4 0 0 0 0 0 0 Fiji 2 1 1 6 0 0 0 0 0 0 Finland 1 65 30 127 21 65 5 27 0 0 France 253 1,481 281 1,440 100 253 56 181 25 18 Georgia 0 2 0 0 0 0 0 0 0 0 Germany 180 2,139 141 1,891 127 416 88 281 9 10 Gibraltar 0 3 2 4 0 0 0 0 0 0 Greece 2 11 0 22 0 3 0 0 0 0 Guernsey 7 0 0 0 0 0 0 0 0 0 Guatemala 0 0 0 0 0 0 0 0 0 0 Guyana 0 0 0 0 0 0 0 0 0 0 Holy See 0 0 0 0 0 0 0 0 0 0 Hong Kong SAR 741 5 609 16 9 4 10 4 30 24 Hungary 0 30 0 4 0 3 0 5 0 0 Iceland 26 35 0 15 0 0 1 1 0 0 India 224 113 181 10 24 78 4 35 7 7 Indonesia 168 0 148 0 2 0 0 1 4 4 Iran (Islamic Republic of) 0 27 0 6 0 0 0 0 0 0 Ireland 54 86 53 71 10 29 11 25 0 0 Isle of Man 39 0 49 1 1 0 1 1 0 2 Israel 10 66 12 40 23 80 7 17 1 1 Italy 71 1,052 64 881 11 73 27 39 6 6 Jamaica 0 0 0 0 0 0 0 0 0 0 Japan 1,711 1,506 2,072 1229 332 1,092 306 651 193 235 Jersey 1 0 8 16 0 0 0 0 0 0 Jordan 3 0 8 0 0 0 0 0 0 0 Kazakhstan 0 9 0 1 0 0 0 0 0 0 Kenya 0 1 0 0 0 0 0 0 0 0 Kuwait 4 0 5 0 0 0 0 0 0 0 Lao People’s Democratic Republic 0 0 0 0 0 0 0 0 0 0 Latvia 6 16 0 5 0 0 0 0 0 0 Lebanon 1 1 4 6 0 0 0 0 0 0 Liberia 21 0 0 0 0 0 0 0 0 0 Liechtenstein 62 89 13 69 1 3 0 1 0 0 Lithuania 0 10 1 0 0 0 0 0 0 0 Luxembourg 65 151 66 217 5 22 6 12 1 1



Trade Mark applications (by class) in 2014 according to the Nice Classification

Class Goods and Services Number

1 Chemicals used in industry etc 630

2 Paints, varnishes, lacquers etc 145

3 Cleaning preparations, soaps, perfumery, essential oils, cosmetics etc 2131

4 Industrial oils and greases, lubricants etc 286

5 Pharmaceutical and veterinary preparations etc 2176

6 Common metals and their alloys etc 494

7 Machines and machine tools etc 920

8 Hand tools and implements (hand-operated); cutlery; side arms; razors 234

9 Scientific, nautical, surveying, photographic, cinematographic etc 4031

10 Surgical, medical, dental and veterinary apparatus and instruments, artificial limbs etc 710

11 Apparatus for lighting, heating, steam generating, cooking, etc 810

12 Vehicles; apparatus for locomotion by land, air or water 657

13 Firearms; ammunition and projectiles; explosives; fireworks 29

14 Precious metals and their alloys etc 825

15 Musical instruments 30

16 Paper, cardboard etc 1333

17 Rubber, gutta-percha, gum, asbestos, mica etc 309

18 Leather and imitations of leather etc 948

19 Building materials (non-metallic); non-metallic rigid pipes for building etc 260

20 Furniture, mirrors, picture frames etc 533

21 Household or kitchen utensils and containers etc 537

22 Ropes, string, nets, tents, awnings, tarpaulins, sails etc 70

23 Yarns and threads, for textile use 36

24 Textiles and textile goods, not included in other classes; bed and table covers etc 342

25 Clothing, footwear, headgear 1816

26 Lace and embroidery, ribbons and braid; buttons, hooks and eyes etc 121

27 Carpets, rugs, mats and matting, linoleum etc 97

28 Games and playthings; gymnastic and sporting articles etc 713

29 Meat, fish, poultry and game; meat extracts etc 1021

30 Coffee, tea, cocoa, sugar, rice, tapioca, sago, powder; salt etc 1498

31 Agricultural, horticultural and forestry products and grains for animals; malt etc 308

32 Beers; mineral and aerated waters and other non-alcoholic drinks etc 745

33 Alcoholic beverages (except beers) etc 624

34 Tobacco; smokers’ articles; matches 278

35 Advertising; business management; business administration; office functions 3473

36 Insurance; financial affairs; monetary affairs; real estate affairs 1293

37 Building construction; repair; installation services 799

38 Telecommunications 859

39 Transport; packaging and storage of goods; travel arrangement 700

40 Treatment of materials 352

41 Education; providing of training; entertainment; sporting and cultural activities 2223

42 Scientific and technological services and research and design relating thereto etc 2293

43 Services for providing food and drink; temporary accommodation 1599

44 Medical services; veterinary services; hygienic and beauty care for human beings etc 770

45 Legal services; personal and social services rendered by others to meet the needs of individuals etc 482






Singapore 9,087 16 7,209 48 962 341 251 151 776 716 Slovakia 0 22 0 5 0 2 0 0 0 0 Slovenia 6 16 4 17 0 0 1 0 0 0 South Africa 36 0 27 0 1 14 0 6 0 0 Spain 31 263 24 250 10 37 2 18 1 1 Sri Lanka 14 0 11 2 1 0 0 0 0 0 Suriname 0 0 0 0 0 0 0 0 0 0 Sweden 67 213 65 288 15 68 12 64 8 9 Switzerland 227 1,528 231 1,498 88 462 42 236 20 15 Syrian Arab Republic 0 0 0 0 0 0 0 0 0 0 Taiwan 561 2 602 0 75 6 48 7 15 20 Thailand 229 4 202 6 0 6 0 3 0 0 The Former Yugoslav Rep of Macedonia 0 0 0 1 0 0 0 0 0 0 Trinidad and Tobago 0 0 0 0 0 0 0 0 0 0 Tunisia 0 0 0 0 0 0 0 0 0 0 Turkey 5 155 12 141 0 2 1 3 1 0 Turks and Caicos Islands 1 0 1 0 0 0 0 0 0 0 Uganda 0 0 0 0 0 0 0 0 0 0 Ukraine 2 30 0 26 0 0 0 0 0 0 United Arab Emirates 64 13 58 9 0 2 0 2 0 0 United Kingdom 573 1,537 441 1,051 93 263 61 151 38 46 United States of America 3,287 2,776 3,596 1,930 954 2,691 511 1,408 240 266 Uruguay 6 1 7 7 0 0 0 0 0 0 Uzbekistan 0 0 0 0 0 0 0 0 0 0 Vanuatu 0 0 0 0 0 0 0 0 0 0 Venezuela 5 0 1 0 0 0 0 0 0 0 Vietnam 11 43 11 49 0 2 0 0 0 0 Virgin Islands, British 403 58 298 99 9 11 1 8 4 3 Virgin Islands (US) 0 0 0 0 0 0 0 0 0 0 West Indies 0 0 0 0 0 0 0 0 0 0 Yemen 0 0 1 0 0 0 0 0 0 0 Unknown 2 4 0 1 0 0 0 0 0 0



Top 10 Industrial Design classes filed in 2014

Patents granted in 2014 according to the International Patent Classification

Intellectual Property Disputes filed with IPOS

Overall filers Local filers Rank Class Number Class Number 1 14 507 11 407 2 11 442 6 78 3 9 147 23 36 4 23 120 14 31 5 6 113 9 27 6 12 90 7 23 7 7 78 26 22 8 8 75 8 21 9 21 60 25 19 10 13 59 2 17

Class Field of invention Percentage A Human Necessities 23.6% B Performing Operations; Transporting 18.7% C Chemistry; Metallurgy 32.4% D Textiles; Paper 0.5% E Fixed Constructions 5.7% F Mechanical Engineering; Lighting; Heating; Weapons 5.9% G Physics 18.6% H Electricity 20.7% Total number of grants in 2014 5,538

2013 2014Trade Marks (by class) Intended Oppositions 176 271 Oppositions 197 207 Percentage of TM oppositions to TM published 0.76% 0.57% Invalidations/Revocations/Rectifications 46 65Patents Revocations 0 1 Others* 0 0Industrial Designs Revocations 0 0

* 'Others' include cases such as Patent Entitlement or Opposition to Inventorship.



Top 10 Trade Mark classes filed in 2014

Overall filers Local filers Rank Class Number Class Number 1 9 4031 35 1096 2 35 3473 43 792 3 42 2293 41 756 4 41 2223 9 664 5 5 2176 42 490 6 3 2131 30 396 7 25 1816 25 376 8 43 1599 16 355 9 30 1498 36 336 10 16 1333 5 326

Industrial Design applications in 2014 according to the Locarno Classification

Class Goods Number

1 Foodstuffs 7

2 Articles of clothing and haberdashery 48

3 Travel goods, cases, parasols and personal belongings, not elsewhere specified 41

4 Brushware 9

5 Textile Piecegoods, Artificial and Natural Sheet Material 18

6 Furnishing 145

7 Household goods, not elsewhere specified 35

8 Tools and hardware 80

9 Packages and containers for the transport or handling of goods 135

10 Clocks and watches and other measuring instruments, checking and signalling instruments 24

11 Articles of adornment 427

12 Means of transport or hoisting 41

13 Equipment for production, distribution or transformation of electricity 45

14 Recording, communication or information retrieval equipment 215

15 Machines, not elsewhere specified 23

16 Photograhpic, cinematographic and optical apparatus 11

17 Musical instruments 0

18 Printing and office machinery 4

19 Stationery and Office equipment, artists and teaching materials 18

20 Sales and advertising equipment, signs 28

21 Games, toys, tents and sports goods 16

22 Arms, pyrotechnic articles, articles for hunting, fishing and pest killing 0

23 Fluid distribution equipment, sanitary heating, ventilation and air-conditioning equipment, solid fuel 89

24 Medical and laboratory equipment 34

25 Building units and construction elements 37

26 Lighting apparatus 27

27 Tobacco and smokers’ supplies 6

28 Pharmaceutical and cosmetic products, toilet articles and apparatus 38

29 Devices and equipment against fire hazards, for accident prevention and for rescue 5

30 Articles for the care and handling of animals 0

31 Machines and appliances for preparing food or drink, not elsewhere specified 22

99 Miscellaneous 1

Note: Possible for an Industrial Design application to have more than one class.

57Annual Report 2014/1556 Annual Report 2014/15



IPOS Hearings in 2014

IPOS Hearings Outcome in 2014

High Court / Court of Appeal Outcome in 2014

Trade Marks Industrial (by class) Patents DesignsCase Management Conferences 100 5 0Pre-hearing Reviews 32 0 0Interlocutory Hearings 6 1 0Taxation Hearings 12 0 0Ex Parte Hearings 2 0 0Inter Partes Hearings Oppositions 8 0 - Invalidations 4 - - Revocations 3 0 0Appeals to the High Court / Court of Appeal 1 0 0

Application Successful Application Unsuccessful Trade Marks Industrial Trade Marks Industrial (by class) Patents Designs (by class) Patents DesignsEx Parte Hearings 0 0 0 2 0 0 Application Successful Application Unsuccessful Trade Marks Industrial Trade Marks Industrial (by class) Patents Designs (by class) Patents DesignsInter Partes Hearings Oppositions 1 0 - 11 0 - Invalidations 1 - - 1 - - Revocations 1 0 0 1 0 0

IPOS Decision Upheld IPOS Decision Overturned Trade Marks Industrial Trade Marks Industrial (by class) Patents Designs (by class) Patents DesignsEx Parte Hearings 0 0 - 0 0 -Inter Partes Hearings Oppositions 0 - - 0 - - Revocations 0 0 0 0 0 0

FINANCIAL STATEMENTS

REPORT OF THE DIRECTORS ANDFINANCIAL STATEMENTS31 MARCH 2015

IPOS AND ITS SUBSIDIARIES

BDO LLPPUBLIC ACCOUNTANTS AND CHARTERED ACCOUNTANTS




STATEMENT BY MEMBERS OF THE BOARD

In the opinion of the Members of the Board:

(a) the accompanying financial statements of Intellectual Property Office of Singapore (the “Office”) and its subsidiaries (the “Group”) as set out on pages 62 to 96 are properly drawn up in accordance with the provisions of the Intellectual Property Office of Singapore Act 2001, Chapter 140 (the “Act”) and Statutory Board Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Group and of the Office as at 31 March 2015, the results and changes in equity of the Group and of the Office and cash flows of the Group for the year ended on that date; and

(b) proper accounting and other records have been kept, including records of all assets of the Office whether purchased, donated or otherwise; and

(c) the receipts, expenditure, investment of moneys and the acquisition and disposal of assets by the Office during the financial year have been made in accordance with the provisions of the Act.

The Board of Intellectual Property Office of Singapore has, on the date of this statement, authorised these financial statements for issue.

On behalf of the Board

Dr. Stanley Lai Mr Tan Yih SanChairman Chief Executive

Singapore3 August 2015


CONTENTS

59 Statement by the board of director

Independent Auditor’s Report

Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Financial Statements

60

62

63

65

66

67



INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE BOARD OF IPOSReport on Other Legal and Regulatory Requirements

Management’s Responsibility for Compliance with Legal Regulatory Requirements

Management is responsible for ensuring that the receipts, expenditure, investment of moneys and the acquisition and disposal of assets, are in accordance with the provisions of the Act. This responsibility includes implementing accounting and internal controls as management determines are necessary to enable compliance with the provisions of the Act.

Auditor’s Responsibility

Our responsibility is to express an opinion on management’s compliance based on our audit of the financial statements. We conducted our audit in accordance with Singapore Standards on Auditing. We planned and performed the compliance audit to obtain reasonable assurance about whether the receipts, expenditure, investment of moneys and the acquisition and disposal of assets, are in accordance with the provisions of the Act.

Our compliance audit includes obtaining an understanding of the internal control relevant to the receipts, expenditure, investment of moneys and the acquisition and disposal of assets; and assessing the risks of material misstatement of the financial statements from non-compliance, if any, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Because of the inherent limitations in any accounting and internal control system, non-compliances may nevertheless occur and not be detected.

We believe that the audit evidence we obtained is sufficient and appropriate to provide a basis for our opinion on management’s compliance.

Opinion

In our opinion:

(a) the receipts, expenditure, investment of moneys and the acquisition and disposal of assets by the Office during the year ended 31 March 2015 are, in all material respects, in accordance with provisions of the Act; and

(b) proper accounting and other records have been kept, including records of all assets of the Office whether purchased, donated or otherwise.

(c) The accounting and other records of those subsidiary corporations incorporated in Singapore of which we are the auditors have been properly kept in accordance with the Singapore Companies Act, Chapter 50.

Other matters

The financial statements of the Group and of the Office for the financial year ended 31 March 2014 were audited by another firm of auditor who expressed an unqualified opinion on the report dated on 31 July 2014.

BDO LLPPublic Accountants andChartered Accountants

Singapore3 August 2015


INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE BOARD OF IPOSReport on the financial statements

We have audited the financial statements of Intellectual Property Office of Singapore (the “Office”) and its subsidiaries (the “Group”), which comprise the consolidated statement of financial position of the Group and the statement of financial position of the Office as at 31 March 2015, and the statements of comprehensive income and statements of changes in equity of the Group and of the Office, and the consolidated statement of cash flows of the Group for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Intellectual Property Office of Singapore Act 2001, Chapter 140 (the “Act”) and the Statutory Board Financial Reporting Standards (“SB-FRS”), and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements of the Group and the statement of financial position, statement of comprehensive income and statement of changes in equity of the Office are properly drawn up in accordance with the provisions of the Act and SB-FRS so as to present fairly, in all material respects, the financial position of the Group and of the Office as at 31 March 2015 and of the financial performance of the Group and of the Office and the changes in equity of the Group and of the Office and cash flows of the Group for the year ended on that date.




STATEMENTS OF FINANCIAL POSITION FOR THE FINANCIAL YEAR ENDED 31 MARCH 2015



STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2015

Group Office As at 31 As at 31 As at 1 As at 31 As at 31 As at 1 Note March 2015 March 2014 April 2013 March 2015 March 2014 April 2013 $ $ $ $ $ $ (Restated) (Restated) (Restated) (Restated)Equity Share capital 11 853,153 614,377 285,606 853,153 614,377 285,606Accumulated surplus 71,774,650 65,639,822 56,705,978 71,127,733 65,111,704 56,129,808

Total equity 72,627,803 66,254,199 56,991,584 71,980,886 65,726,081 56,415,414 Current assets Cash and cash equivalents 12 109,464,521 106,304,216 86,861,043 106,586,867 105,183,191 85,724,475Trade receivables 13 972,626 1,446,861 2,409,905 890,690 1,432,157 2,325,665Other receivables 14 1,665,258 1,675,608 666,273 1,493,846 1,175,639 1,616,877Grant receivable 15 517,321 - 66,950 517,321 - 66,950

Total current assets 112,619,726 109,426,685 90,004,171 109,488,724 107,790,987 89,733,967 Non-current assets Intangible assets 16 10,366,315 2,955,487 2,590,109 10,364,253 2,951,175 2,590,109Plant and equipment 17 1,973,693 2,590,828 2,054,934 1,584,481 2,112,158 1,813,083Investment in subsidiaries 18 - - - 4 2 -

Total non-current assets 12,340,008 5,546,315 4,645,043 11,948,738 5,063,335 4,403,192

Total assets 124,959,734 114,973,000 94,649,214 121,437,462 112,854,322 94,137,159 Current liabilities Trade payables 19 6,480,765 4,133,385 2,839,937 6,100,702 3,357,079 3,322,860Other payables 20 13,286,895 6,814,596 4,445,213 12,738,964 8,328,100 5,290,920Deferred revenue 21 3,392,455 3,109,803 2,860,278 3,153,141 2,862,103 2,652,363Grant payable 22 - - - - 461,832 -Grant received in advance 15 1,538,599 5,884,218 1,000,000 - 3,745,989 -Provision for contribution to Consolidated Fund 9 1,310,849 2,011,831 2,121,918 1,310,849 2,011,831 2,121,918Income tax payable 10 33 33 56,600 - - -Patent deposits 23 10,308,381 11,912,894 11,073,373 10,308,381 11,912,894 11,073,373Finance lease payable 24 4,962 69,221 83,730 4,962 69,221 83,730Deferred capital grants - Government 8 195,842 432,458 28,830 26,427 28,830 28,830

Total current liabilities 36,518,781 34,368,439 24,509,879 33,643,426 32,777,879 24,573,994

The accompanying notes form an integral part of these financial statements.

Group Office Note 2015 2014 2015 2014 $ $ $ $ (Restated) (Restated)Operating income Registration fees 4 40,767,147 38,446,069 40,767,147 38,446,069Training course income 1,110,045 618,137 - -Other fees and charges 2,364,587 1,203,517 2,347,061 1,272,443

44,241,779 40,267,723 43,114,208 39,718,512Operating expenditure Employee benefit expenses 5 32,169,886 22,223,387 28,660,177 20,320,688Maintenance of office premises and computers 6,452,514 6,317,656 6,407,350 6,287,049Rental of office premises 3,394,340 2,774,500 2,963,768 2,543,918General and administrative expenses 6 7,851,089 7,134,330 7,517,740 5,673,137Amortisation expense 16 856,747 169,174 854,497 168,986Depreciation expense 17 907,841 699,782 635,933 548,248Operating grant 22 - - 558,198 461,832

51,632,417 39,318,829 47,597,663 36,003,858 Operating (deficit)/surplus (7,390,638) 948,894 (4,483,455) 3,714,654 Non-operating income Interest income 7 988,178 479,455 988,178 479,455 (Deficit)/surplus before grants and Contribution to Consolidated Fund (6,402,460) 1,428,349 (3,495,277) 4,194,109 Grants Operating grants 15 13,969,094 9,430,353 11,177,325 6,770,788Deferred capital grants amortised - Government 8 263,043 86,973 28,830 28,830

14,232,137 9,517,326 11,206,155 6,799,618Surplus before Contribution to Consolidated Fund and taxation 7,829,677 10,945,675 7,710,878 10,993,727 Contribution to Consolidated Fund 9 (1,310,849) (2,011,831) (1,310,849) (2,011,831)Income tax expense 10 - - - -

Total comprehensive income for the year 6,518,828 8,933,844 6,400,029 8,981,896




STATEMENTS OF CHANGES EQUITYFOR THE FINANCIAL YEAR ENDED 31 MARCH 2015


STATEMENTS OF FINANCIAL POSITION FOR THE FINANCIAL YEAR ENDED 31 MARCH 2015

Share Accumulated Note capital surplus Total $ $ $Group 2015 Balance at 1 April 2014 - as previously reported 614,377 70,068,721 70,683,098 - prior year adjustments 31 - (4,428,899) (4,428,899)

- as restated 614,377 65,639,822 66,254,199 Total comprehensive income for the financial year - 6,518,828 6,518,828 Equity injection 11 238,776 - 238,776 Dividend paid 25 - (384,000) (384,000)

Balance at 31 March 2015 853,153 71,774,650 72,627,803 2014 Balance at 1 April 2013 - as previously reported 285,606 60,291,645 60,577,251- prior year adjustments 31 - (3,585,667) (3,585,667)

- as restated 285,606 56,705,978 56,991,584 Total comprehensive income for the financial year - 8,933,844 8,933,844Equity injection 11 328,771 - 328,771

Balance at 31 March 2014 614,377 65,639,822 66,254,199 Office 2015 Balance at 1 April 2014 - as previously reported 614,377 69,426,729 70,041,106- prior year adjustments 31 - (4,315,025) (4,315,025)

- as restated 614,377 65,111,704 65,726,081 Total comprehensive income for the financial year - 6,400,029 6,400,029Equity injection 11 238,776 - 238,776Dividend paid 25 - (384,000) (384,000)

Balance at 31 March 2015 853,153 71,127,733 71,980,886

2014 Balance at 1 April 2013 - as previously reported 285,606 59,604,265 59,889,871- prior year adjustments 31 - (3,474,457) (3,474,457)

- as restated 285,606 56,129,808 56,415,414 Total comprehensive income for the financial year - 8,981,896 8,981,896Equity injection 11 328,771 - 328,771

Balance at 31 March 2014 614,377 65,111,704 65,726,081


Group Office As at 31 As at 31 As at 1 As at 31 As at 31 As at 1 Note March 2015 March 2014 April 2013 March 2015 March 2014 April 2013 $ $ $ $ $ $ (Restated) (Restated) (Restated) (Restated)Non-current liabilities Deferred revenue 21 15,813,150 14,323,935 13,072,734 15,813,150 14,323,935 13,072,734Finance lease payable 24 - - 19,760 - - 19,760Deferred capital grants - Government 8 - 26,427 55,257 - 26,427 55,257

Total non-current liabilities 15,813,150 14,350,362 13,147,751 15,813,150 14,350,362 13,147,751

Total liabilities 52,331,931 48,718,801 37,657,630 49,456,576 47,128,241 37,721,745

Net assets 72,627,803 66,254,199 56,991,584 71,980,886 65,726,081 56,415,414 Funds held in trust Patent Agent Manpower Capability Development Fund 29 5,474 5,474 5,474 5,474 5,474 5,474

The accompanying notes form an integral part of these financial statements

IPOS AND ITS SUBSIDIARIESIPOS AND ITS SUBSIDIARIES



NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2015

CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE FINANCIAL YEAR ENDED 31 MARCH 2015


These notes form an integral part of and should be read in conjunction with the accompanying financial statements.

1. General information

The Intellectual Property Office of Singapore (the “Office”), officially established under the Intellectual Property Office of Singapore Act 2001, Chapter 140, is domiciled in Singapore. The Office’s place of business is situated at 51 Bras Basah Road #04-01 Manulife Centre, Singapore 189554.

The principal activities of the Office are

(a) administering the systems of protection of intellectual property (“IP”) in Singapore; (b) formulating and reviewing of IP rights policies and legislations; (c) maintaining and disseminating of IP information and documents; (d) representing the Government internationally on IP matters; (e) nurturing and training of IP agents; (f) co-operating with other organisations and IP offices on IP programmes; and (g) promoting the awareness and effective use of IP rights.

The principal activities of the subsidiaries are described in Note 18 to the financial statements.

The financial statements of the Group and of the Office for the year ended 31 March 2015 were authorised for issue by the Board of Directors on 3 August 2015.

2. Summary of significant accounting policies

2.1 Basis of preparation

These financial statements are prepared in accordance with the provisions of the Intellectual Property Office of Singapore Act 2001, Chapter 140 and Statutory Board Financial Reporting Standards (“SB-FRS”). SB-FRS includes Interpretations of SB-FRS and SB-FRS Guidance Notes as promulgated by the Accountant-General’s Department.

The financial statements have been prepared under the historical cost convention, except as disclosed in the accounting policies below.

The financial statements are presented in Singapore dollar (“$”) which is the Office’s functional currency and the presentation currency for the consolidated financial statements.

The preparation of financial statements in conformity with SB-FRS requires management to exercise its judgement in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions. Although these estimates are based on the Group’s best knowledge of current events and actions, actual results may ultimately differ from these estimates. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 3.

Where necessary, comparative figures have been adjusted to conform to changes in the current year presentation. These reclassifications have been made to better reflect the nature of items in the set of financial information.

In the current financial year, the Group has adopted all the new and revised SB-FRS that are relevant to its operations and effective for the current financial year. The adoption of these new/revised SB-FRS did not result in changes to the Group’s accounting policies and had no material effect on the amounts reported for the current or prior years, except as detailed below.

SB-FRS 110 Consolidated Financial Statements and SB-FRS 27 (Revised) Separate Financial Statements

SB-FRS 110 introduces a single new control model, as the basis for determining which entities are consolidated in the Group’s financial statements. Under SB-FRS 110, control exists when the Group has: - power over an investee; - exposure, or rights, to variable returns from the investee; and - the ability to use its power over an investee to affect the Group’s returns from the investee.

The Group Note 2015 2014 $ $ (Restated)Operating activities (Deficit)/surplus before grants and Contribution to Consolidated Fund (6,402,460) 1,428,349 Adjustments for: Amortisation of intangible assets 16 856,747 169,174 Depreciation of plant and equipment 17 907,841 699,782 Intangible assets written off 16 119,955 - Plant and equipment written off 17 71,110 189,904 Loss on disposal of plant and equipment - 800 Interest on finance lease - 703 Interest income 7 (988,178) (479,455)

(Deficit)/surplus before working capital changes (5,434,985) 2,009,257 Operating cash flows before working capital changes: Trade and other receivables 832,809 (3,582) Trade and other payables 8,819,679 3,662,831 Deferred revenue 21 1,771,867 1,500,726 Patent deposits 23 (1,604,513) 839,521

Cash flows generated from operations 4,384,857 8,008,753 Interest received 639,954 436,746 Income tax paid - (56,567) Payment of Contribution to Consolidated Fund (2,011,831) (2,121,918)

Net cash flows generated from operating activities 3,012,980 6,267,014 Investing activities Purchase of intangible assets 16 (8,387,530) (534,552) Purchase of plant and equipment 17 (361,816) (1,426,380)

Net cash flows used in investing activities (8,749,346) (1,960,932) Financing activities Government grants received 9,106,154 14,843,292 Equity injection 11 238,776 328,771 Dividend paid 25 (384,000) - Repayment of finance lease obligations (64,259) (34,972)

Net cash flows generated from financing activities 8,896,671 15,137,091 Net increase in cash and cash equivalents 3,160,305 19,443,173 Cash and cash equivalents at beginning of the year 106,304,216 86,861,043

Cash and cash equivalents at end of the year 12 109,464,521 106,304,216



Where Ideas Take Flight IPOS Annual Report 2014/2015





2. Summary of significant accounting policies (Continued)

2.1 Basis of preparation (Continued)

SB-FRS 115 Revenue from Contracts with Customers

SB-FRS 115 introduces a comprehensive model that applies to revenue from contracts with customers and supersedes all existing revenue recognition requirements under SB-FRS. The model features a five-step analysis to determine whether, how much and when revenue is recognised, and two approaches for recognising revenue: at a point in time or over time. The core principle is that an entity recognises revenue when control over promised goods or services is transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. SB-FRS 115 also introduces extensive qualitative and quantitative disclosure requirements which aim to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.

On initial adoption of this standard there may be a potentially significant impact on the timing and profile of revenue recognition of the Group. Due to the recent release of this standard, the Group has not yet made a detailed assessment of the impact of this standard. The Group plans to adopt the standard in the financial year beginning on 1 April 2017 with either full or modified retrospective effect in accordance with the transitional provisions, and will include the required additional disclosures in its financial statements for that financial year.

2.2 Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Office and its subsidiaries. The subsidiaries are entities over which the Group has control. The Group controls an investee if the Group has power over the investee, exposure to variable returns from the investee, and the ability to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control.

The subsidiaries are consolidated from the date on which control is obtained by the Group up to the effective date on which control is lost, as appropriate.

Intra-group balances and transactions and any unrealised income and expenses arising from intra-group transactions are eliminated on consolidation. Unrealised losses may be an impairment indicator of the asset concerned.

The financial statements of the subsidiaries are prepared for the same reporting period as that of the Office, using consistent accounting policies. Where necessary, accounting policies of subsidiary are changed to ensure consistency with the policies adopted by other members of the Group.

When a change in the Office’s ownership interest in a subsidiary results in a loss of control over the subsidiary, the assets and liabilities of the subsidiary including any goodwill are derecognised. Amounts recognised in other comprehensive income in respect of that entity are also reclassified to profit or loss or transferred directly to retained earnings if required by a specific Standard.

Any retained interest in the entity is re-measured at fair value. The difference between the carrying amount of the retained investment at the date when control is lost and its fair value is recognised in profit or loss.

In the separate financial statements of the Office, investments in subsidiaries are carried at cost, less any impairment loss that has been recognised in profit or loss.

2.3 Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable.

(i) Registration fees

Local and international registration fee are recognised when the registration service has been rendered. Patent revenue is presented net of search and examination work performed by international patent offices. Revenue from renewal for trademarks and designs are recognised over the effective protection period from 5 to 10 years on a straight-line basis.


2.1 Basis of preparation (Continued)

SB-FRS 110 Consolidated Financial Statements and SB-FRS 27 (Revised) Separate Financial Statements (Continued)

The Group has applied SB-FRS 110 retrospectively, in accordance with the transitional provisions of SB-FRS 110 and changed its accounting policy for determining whether it has control over an entity and whether it is required to consolidate that interest. The adoption of SB-FRS 110 did not result in any changes to the control conclusions reached by the Group in respect of its involvement with other entities as at the date of initial adoption on 1 April 2014. The adoption of SB-FRS 27 (Revised) did not result in any changes to the Group’s or the Office’s financial statements.

SB-FRS 112 Disclosure of Interests in Other Entities

SB-FRS 112 prescribes comprehensive disclosure requirements for all types of interests in other entities. It requires an entity to disclose information that helps users to assess the nature and financial effects of relationships with subsidiaries, associates, joint arrangements and unconsolidated structured entities. As the new standard affects only disclosure, there is no effect on the Group’s financial position or performance. Certain new disclosure are included in these financial statements following the adoption of SB-FRS 112 on 1 April 2014.

SB-FRS issued but not yet effective

At the date of authorisation of these financial statements, the following SB-FRS that are relevant to the Group were issued but not yet effective:

Consequential amendments were also made to various standards as a result of these new/revised standards.

Except as disclosed below, management anticipates that the adoption of the above SB-FRS in future periods, if applicable, will not have a material impact on the financial statements of the Group in the period of their initial adoption.

Effective date (annual periods beginning on or after) SB-FRS 19 (Amendments) : Defined Benefit Plans: Employee 1 July 2014 Contribution Improvements to SB-FRSs (January 2014) 1 July 2014 Improvements to SB-FRSs (February 2014) 1 July 2014 SB-FRS 110 and SB-FRS 28 (Amendments) : Sale or Contribution of Assets between an Investor and its 1 January 2016 SB-FRS 1 (Amendments) : Disclosure Initiative 1 January 2016 SB-FRS 16, SB-FRS 38 (Amendments) : Clarification of Acceptable 1 January 2016 Methods of Depreciation and Amortisation SB-FRS 16, SB-FRS 41 (Amendments) : Agriculture: Bearer Plants 1 January 2016 SB-FRS 27 (Amendments) : Equity Method in Separate 1 January 2016 Financial Statements SB-FRS 111 (Amendments) : Accounting for Acquisitions of 1 January 2016 Interests in Joint Operations SB-FRS 114 : Regulatory Deferral Accounts 1 January 2016 Various : Improvements to SB-FRSs (November 2016) 1 January 2016 SB-FRS 115 : Revenue from Contracts with Customers 1 January 2017






2.6 Government grants

Government grants utilised for the purchase of equipment are included in the statements of financial position as deferred capital grant account - government.

Deferred capital grants are recognised in the profit or loss over the periods necessary to match the depreciation of the assets purchased. On disposal of the equipment, the balance of the related grants is taken to the profit or loss to match the net book value of the equipment disposed.

Grants and contributions received for the purchase of equipment but which are not yet utilised are taken to the grant received in advance account.

Government grants are recognised as income over the periods necessary to match them with the related costs which they are intended to reimburse, on a systematic basis. Government grants that are receivable as reimbursements for expenses already incurred are recognised in profit or loss in the period in which they become receivable.

Grants are recognised only when there is reasonable assurance that the Group would comply with the conditions attaching to those grants, and the grants would be received.

2.7 Taxes and Contribution to Consolidated Fund

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current income tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit reported as profit or loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are not taxable or tax deductible. The Group’s liability for current tax is recognised at the amount expected to be paid or recovered from the tax authorities and is calculated using tax rates (and tax laws) that have been enacted or substantively enacted by the end of the financial year.

Current income taxes are recognised in profit or loss, except to the extent that the tax relates to items recognised outside profit or loss, either in other comprehensive income or directly in equity.

Deferred tax

Deferred tax is recognised on all temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each financial year and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Group expects to recover or settle its assets and liabilities.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised based on the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the financial year.




2.3 Revenue recognition (Continued)

(ii) Training course income

Training course income is recognised on a straight line basis over the period of the course.

(iii) Other fees and charges

Other fees and charges comprise of regulatory charges, conference and workshop service charges and membership fees. These are recognised when the relevant services have been rendered.

(iv) Interest income

Interest income is recognised on an accrual basis by reference to the principal outstanding and at the effective interest rate applicable which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount.

(v) Dividend income

Dividend income is recognised when the right to receive payment is established.

2.4 Employee benefits

(i) Retirement Benefit Costs

Payments to defined contribution plans are charged as an expense as they fall due. Payments made to state- managed retirement benefit schemes, such as the Singapore Central Provident Fund, are dealt with as payments to defined contribution plans where the Group’s obligations under the plans are equivalent to those arising in a defined contribution plan.

(ii) Employee leaves entitlements

Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated undiscounted liability for annual leave expected to be settled wholly within 12 months from the reporting date as a result of services rendered by employees up to the end of the financial year.

2.5 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Finance lease

Assets held under finance leases are recognised as assets of the Group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly to profit or loss. Contingent rentals are recognised as expenses in the periods in which they are incurred.

Operating lease

Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of the relevant lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.






2.9 Financial instruments (Continued)

Financial assets (Continued)

Initial measurement

Financial assets are initially recognised at fair value plus transaction costs.

Subsequent measurement

Loans and receivables are subsequently carried at amortised cost using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial instrument and allocating the interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial instrument, or where appropriate, a shorter period, to the net carrying amount of the financial instrument. Income and expense are recognised on an effective interest basis for debt instruments other than those financial instruments at fair value through profit or loss. Impairment

The Group assesses at the end of each financial year whether there is objective evidence that a financial asset or a group of financial assets is impaired and recognises an allowance for impairment when such evidence exists.

Loans and receivables

Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy, and default or significant delay in payments are objective evidence that these financial assets are impaired.

The carrying amount of these assets is reduced through the use of an impairment allowance account which is calculated as the difference between the carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. When the asset becomes uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are recognised against the same line item in profit or loss.

The impairment allowance is reduced through profit or loss in a subsequent period when the amount of impairment loss decreases and the related decrease can be objectively measured. The carrying amount of the asset previously impaired is increased to the extent that the new carrying amount does not exceed the amortised cost had no impairment been recognised in prior periods.

Financial liabilities

Financial liabilities are classified as other financial liabilities which comprise trade and other payables, patents deposits and finance lease payable (excluding Patent Cooperation Treaty advances, other advances, provision for reinstatement costs and provision for unconsumed leave).

Other financial liabilities

Trade and other payables

Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. They are classified as current liabilities.

Trade and other are initially recognised at fair value, and subsequently carried at amortised cost using the effective interest.

Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or expired. The difference between the carrying amount and the consideration paid is recognised in profit and loss.




2.7 Taxes and Contribution to Consolidated Fund (Continued)

Deferred tax (Continued)

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

Deferred tax is recognised in profit or loss, except when it relates to items recognised outside profit or loss, in which case the tax is also recognised either in other comprehensive income or directly in equity.

Contribution to Consolidated Fund

The contribution to the consolidated fund is required under Section 3(a) of the Statutory Corporations (Contribution to Consolidated Fund) Act (Cap. 319(A)). The contribution is pegged at the prevailing statutory income tax rate for corporate bodies. Accounting surplus would be used for the purpose of computing the contribution and this is accounted for on an accrual basis.

Good and Services Tax

Revenue, expenses and assets are recognised net of the good and services taxes except when the good and services tax that is incurred on purchase of assets or services is not recoverable from the tax authorities, in which case the good and services tax is recognised as part of cost of acquisition of the asset or as part of the expense item as applicable and of those incurred on purchase of assets or services through government grant.

2.8 Cash and cash equivalents

Cash and cash equivalents comprise cash and bank balances and deposits with the Accountant-General’s Department (“AGD”). Deposits with AGD refers to cash that is managed by AGD under Cash Liquidity Management (“CLM”) as set out in the Accountant-General’s Circular No. 4/2009 Centralised Liquidity Management for Statutory Boards and Ministries.

2.9 Financial instruments

Financial assets

Classification

The Group classifies its financial assets as loans and receivables. The classification depends on the nature of the asset and the purpose for which the assets were acquired. Management determines the classification of its financial assets at initial recognition.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are presented as current assets. Loans and receivables are presented as “trade receivables” (exclude accrued revenue), “other receivables” (exclude prepayment and deferred expenses), and “cash and cash equivalents” on the statements of financial position.

Recognition and derecognition

Regular way purchases and sales of financial assets are recognised on trade date — the date on which the Group commits to purchase or sell the asset.

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. On disposal of a financial asset, the difference between the carrying amount and the sale proceeds is recognised in profit or loss. Any amount in other comprehensive income relating to that asset is reclassified to profit or loss.








2.9 Financial instruments (Continued)

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs. The Office classifies capital account as equity instruments.

Ordinary shares issued are classified as equity and are valued at the considerations received for the issuance of the shares.

Equity injected by the Government for project funding, which is subject to the Capital Management Framework for Statutory Boards, is recognised in the financial year ended 31 March 2015 and 31 March 2014 when the Office’s parent Ministry, Ministry of Law approves the claims for reimbursement of project expenditure.

2.10 Intangible assets

Computer software

Computer software comprises software purchased and developed by third parties.

Computer software is stated at cost less accumulated amortisation and accumulated impairment losses. These costs are amortised to profit or loss using the straight-line method over their estimated useful lives of 3 to 5 years.

Subsequent expenditure on capitalised intangible assets is added to the carrying value only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in profit or loss when incurred.

2.11 Plant and equipment

Measurement

All items of plant and equipment are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses (“carrying amount”).

The cost of an item of plant and equipment initially recognised includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable. Dismantlement, removal or restoration costs are included as part of the cost if the obligation for dismantlement, removal or restoration is incurred as a consequence of acquiring or using the plant and equipment.

Depreciation

Depreciation on plant and equipment (except works-in-progress) is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives as follows: Useful lives Office equipment, furniture and fittings 3 to 8 years Computer equipment 2 to 5 years

No depreciation is charged on assets under work-in-progress.

Low value assets costing less than $2,000 are fully depreciated in the month of purchase.

The residual values, estimated useful lives and depreciation method of plant and equipment are reviewed, and adjusted as appropriate, at the end of each financial year. The effects of any revision are recognised in profit or loss when the changes arise.


2.11 Plant and equipment (Continued)

Subsequent expenditure

Subsequent expenditure relating to plant and equipment that has already been recognised is added to the carrying amount of the asset only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repair and maintenance expenses are recognised in profit or loss when incurred.

Disposal

On disposal of an item of plant and equipment, the difference between the disposal proceeds and its carrying amount is recognised in profit or loss.

Impairment

The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

Fully depreciated assets are retained in the financial statements until they are no longer in use.

2.12 Impairment of non-financial assets

At the end of each financial year, the Group reviews the carrying amounts of its non-financial assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to sell and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

2.13 Foreign currency transactions

In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional currency are recorded at the rate of exchange prevailing on the date of the transaction. At the end of each financial year, monetary items denominated in foreign currencies are retranslated at the rates prevailing as of the end of the financial year. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences arising on the settlement of monetary items, and on retranslation of monetary items are included in profit or loss for the period. Exchange differences arising on the retranslation of non-monetary items carried at fair value are included in profit or loss for the period except for differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognised directly in equity. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in equity.








2.14 Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the financial year, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

The Group reviews the provisions annually. If in their opinion, the provision is inadequate or excessive, due adjustment is made.

2.15 Contribution to consolidated fund

The Office is required to make contribution to the Government Consolidated Fund in accordance with the Statutory Corporations (Contribution to Consolidated Fund) Act, Chapter 319A and Finance Circular M5/2005. It is computed based on the accounting surplus of the Office for each of the financial year at the prevailing corporate tax rate for the year of assessment. Contribution to consolidated fund is provided for on an accrual basis.

2.16 Dividends Dividends proposed by the Office are not accounted for in capital and reserves as an appropriation of accumulated surplus, until they have been declared by the Office. When these dividends have been declared and approved by the Office, they are recognised as a liability.

2.17 Funds held on behalf of others

Funds held on behalf of others such as the Patent Agent Manpower Capability and Development Fund (“PAMCDF”) are set up to account for monies held in trust for external parties.

These funds are maintained separately from the Group’s financial statements.

3. Critical accounting estimates, assumptions and judgements

In the application of the Group’s accounting policies, which are described in Note 2, management made judgements, estimates and assumptions about the carrying amounts of assets and liabilities that were not readily apparent from other sources. The estimates and associated assumptions were based on historical experience and other factors that were considered to be reasonable under the circumstances. Actual results may differ from these estimates.

These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

3.1 Critical judgements in applying the Group’s accounting policies

In the process of applying the Group’s accounting policies, the management is of the opinion that there are no critical judgements (other than those involving estimates) involved that have a significant effect on the amounts recognised in the financial statements.

3. Critical accounting estimates, assumptions and judgements (Continued)

3.2 Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the financial year, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.

(i) Allowance for trade and other receivables

The management establishes allowance for trade and other receivables on a case-by-case basis when they believe that payment of amounts owed is unlikely to occur. In establishing these allowances, the management considers its historical experience and changes to its customers’ financial position. If the financial conditions of customers were to deteriorate, resulting in impairment of their ability to make the required payments, additional allowances may be required. The carrying amount of the Group’s and the Office’s trade and other receivables (excluding accrued revenue, deferred expenses and prepayment) as at 31 March 2015 amounted to $1,509,662 (2014: $2,005,628) and $1,398,248 (2014: $1,577,296) respectively.

(ii) Depreciation of plant and equipment

The Group depreciates the plant and equipment, using the straight-line method, over their estimated useful lives after taking into account of their estimated residual values. The estimated useful life reflects management’s estimate of the period that the Group intends to derive future economic benefits from the use of the Group’s plant and equipment. The residual value reflects management’s estimated amount that the Group would currently obtain from the disposal of the asset, after deducting the estimated costs of disposal, as if the asset were already of the age and in the condition expected at the end of its useful life. Changes in the expected level of usage and technological developments could affect the economic useful life and the residual values of these assets which could then consequentially impact future depreciation charges. The carrying amounts of the Group’s and the Office’s plant and equipment at 31 March 2015 were $1,973,693 (2014: $2,590,828) and $1,584,481 (2014: $2,112,158) respectively.

(iii) Amortisation of intangible assets

The Group amortises the intangible assets, using the straight-line method, over their estimated useful lives after taking into account of their estimated residual values. The estimated useful life reflects management’s estimate of the period that the Group intends to derive future economic benefits from the use of the Group’s intangible assets. The residual value reflects management’s estimated amount that the Group would currently obtain from the disposal of the asset, after deducting the estimated costs of disposal, as if the asset were already of the age and in the condition expected at the end of its useful life. Changes in the expected level of usage and technological developments could affect the economic useful life and the residual values of these assets which could then consequentially impact future amortisation charges. The carrying amounts of the Group’s and the Office’s intangible assets at 31 March 2015 were $10,366,315 (2014: $2,955,487) and $10,364,253 (2014: $2,951,175) respectively.

4. Registration fees Group and Office 2015 2014 $ $ (Restated) Trademarks – local 10,990,580 10,347,066 – international 7,844,968 7,387,275 Patents – local 21,180,502 19,810,935 Designs – local 634,968 774,517 – international 46,727 60,106 Patent agent 62,930 62,970 Others 6,472 3,200

40,767,147 38,446,069







5. Employee benefit expenses Group Office 2015 2014 2015 2014 $ $ $ $ Wages and salaries 26,241,866 19,200,435 23,130,428 17,212,769 Employers’ contribution to defined contribution scheme 3,205,618 2,267,593 2,888,229 2,027,146 29,447,484 21,468,028 26,018,657 19,239,915 Staff welfare 406,160 270,757 331,688 254,228 Staff training 525,147 33,602 487,832 375,545 Other staff expense 1,791,095 451,000 1,822,000 451,000 32,169,886 22,223,387 28,660,177 20,320,688

Wages and salaries include directors’ fee of $94,685 (2014: $94,392) and $78,750 (2014: $83,142) paid by the Group and Office during the year respectively.

7. Interest income Group and Office 2015 2014 $ $ Interest income 988,178 479,455

Interest income from deposits with Accountant General Department (“AGD”) amounted to $988,067 (2014: $446,021).

6. General and administrative expenses Group Office 2015 2014 2015 2014 $ $ $ $ Net foreign exchange loss 48,454 69,431 48,454 69,270 Professional services 1,033,175 1,525,728 2,290,297 1,525,728 Event services 1,392,012 1,185,636 1,392,012 1,185,636 Storage charges 247,310 245,241 247,310 245,241 Irrecoverable Goods and Service Tax 1,401,592 902,343 1,339,594 873,709 Telecommunication expenses 540,595 444,761 535,122 433,983 Conference and workshop expenses 559,712 491,399 559,712 491,399 Sundry supplies expenses 335,376 343,753 285,424 314,884 Other expenses 2,292,863 1,926,038 819,815 533,287 7,851,089 7,134,330 7,517,740 5,673,137

8. Deferred capital grants - Government Group Office 2015 2014 2015 2014 $ $ $ $ Balance at the beginning of the financial year 458,885 84,087 55,257 84,087 Add: government grants received - 461,771 - - Less: amortisation of deferred capital grants (263,043) (86,973) (28,830) (28,830) Balance at the end of the financial year 195,842 458,885 26,427 55,257 Presented in the statements of financial position as: Current portion 195,842 432,458 26,427 28,830 Non-current portion - 26,427 - 26,427 195,842 458,885 26,427 55,257

9. Provision for Contribution to Consolidated Fund Group and Company 2015 2014 $ $ Balance at the beginning of the financial year 2,011,831 2,121,918 Amount paid during the financial year (2,011,831) (2,121,918) Contribution during the financial year 1,310,849 2,011,831

Balance at the end of the financial year 1,310,849 2,011,831

This represents the contribution to be made to the Government Consolidated Fund in accordance with Section 8 of the Statutory Corporations (Contribution to Consolidated Fund) Act, Chapter 319A and Finance Circular Minute M5/2005. The amount to be contributed is based on 17% (2014: 17%) of the accounting surplus of the Office.

10. Income tax expense

The subsidiary companies of the Office are subject to tax under Singapore income tax legislation. (a) Current tax expense Group 2015 2014 $ $ Current income tax expense - -

The tax expense on profit differs from the amount that would arise using the Singapore standard rate of income tax due to the following:

Group 2015 2014 $ $ (Restated) Surplus Contribution to Consolidated Fund and taxation 7,829,677 10,945,675 Tax calculated at tax rate of 17% (2014: 17%) (1,331,045) (1,860,765) Income tax expense on grants received and receivable (1,088,418) 242,819 Income not subject to tax 2,419,463 1,617,946

Total income tax expense - -

The subsidiary companies of the Office are subject to tax under Singapore income tax legislation. (Continued)

(b) Movement in current tax liabilities Group 2015 2014 $ $ Beginning of financial year 33 56,600 Income tax paid - (56,567)

End of financial year 33 33







11. Share capital Group and Office Group and Office 2015 2014 2015 2014 $ $ $ $ Beginning of the financial year 614,377 285,606 614,377 285,606 Addition during the financial year 238,776 328,771 238,776 328,771 End of the financial year 853,153 614,377 853,153 614,377

In November 2008, the Ministry of Finance implemented the Capital Management Framework which aims to sensitize Statutory Boards to the opportunity cost of capital utilised by the Statutory Boards to perform their functions. In the current financial year, a further equity of $238,776 (2014: $328,771) was injected to fund the establishment of the Patent Search and Examination Unit.

The holder of these shares is entitled to receive dividends as and when declared by the Office. All issued shares are fully paid. The shares carry neither voting rights nor par value.

12. Cash and cash equivalents Group Office 2015 2014 2015 2014 $ $ $ $ Deposits with Accountant General Department (“AGD”) 104,659,354 104,540,469 104,659,354 104,540,469 Cash and bank balances 3,419,589 1,763,747 541,935 642,722 Fixed deposits with financial institutions 1,385,578 - 1,385,578 - 109,464,521 106,304,216 106,586,867 105,183,191

The interest rate of deposits with AGD, defined as the ratio of the interest earned to the average cash balance is 0.96% (2014: 0.49%) per annum.

The fixed deposits with financial institutions bear interest ranging from 0.13% to 0.14% per annum and for a tenure of approximately 2 to 11 days.

Cash and cash equivalents are denominated in the following currencies:

Group Office 2015 2014 2015 2014 $ $ $ $ Euro 1,385,578 - 1,385,578 - Singapore dollar 108,078,943 106,304,216 105,201,289 105,183,191 109,464,521 106,304,216 106,586,867 105,183,191

13. Trade receivables Group Office 2015 2014 2015 2014 $ $ $ $ Trade receivables – third parties 28,297 43,184 - 40,482 Amount due from related parties 83,639 560,708 30,000 548,706 Accrued revenue 860,690 842,969 860,690 842,969 972,626 1,446,861 890,690 1,432,157

The average credit period on rendering of services is 30 days (2014:30 days).

Amount due from related parties are unsecured, non-interest bearing and repayable on demand.

13. Trade receivables (Continued)

Information on the credit risk profile for trade receivables based on profile of type of customers and ageing analysis provided to key management are as follows:

The ageing analysis of the Group and the Office’s trade receivables at the reporting date is as follows:

Group Office 2015 2014 2015 2014 $ $ $ $ Not past due 924,671 1,376,464 890,690 1,368,091 Past due 0 to 30 days 36,166 68,828 - 64,066 More than 30 days 11,789 1,569 - - 972,626 1,446,861 890,690 1,432,157

Based on historical default rates, the Group believes that no impairment allowance is necessary in respect of trade receivables not past due or past due up to 60 days. These receivables are mainly arising by customers that have a good record with the Group.

Trade receivables are denominated in the following currencies:

Group Office 2015 2014 2015 2014 $ $ $ $ Singapore dollar 141,956 707,436 60,020 692,732 Swiss franc 830,670 739,425 830,670 739,425 972,626 1,446,861 890,690 1,432,157

14. Other receivables Group Office 2015 2014 2015 2014 $ $ $ $ Deposits 638,271 628,326 380,461 401,384 Interest receivables 578,607 230,383 578,607 230,383 Deferred expenses 107,301 86,341 - - Amount due from subsidiaries - - 352,604 116,191 Amount due from related parties 56,705 240,011 56,437 240,011 Other receivables – third parties 124,143 303,016 139 139 Prepayment 160,231 187,531 125,598 187,531 1,665,258 1,675,608 1,493,846 1,175,639

Amount due from subsidiaries and related parties are unsecured, non-interest bearing and repayable on demand.

Other receivables are denominated in Singapore dollar.

15. Grant receivable/received in advance Group Office 2015 2014 2015 2014 $ $ $ $ Beginning of the financial year 5,884,218 933,050 3,745,989 (66,950) Received/receivable during the year 9,344,930 14,710,292 7,152,791 10,912,498 Transfer to equity (238,776) (328,771) (238,776) (328,771) Transfer to statement of comprehensive income (13,969,094) (9,430,353) (11,177,325) (6,770,788)

End of the financial year 1,021,278 5,884,218 (517,321) 3,745,989







15. Grant receivable/received in advance (Continued)

Presented in the statements of financial position as: Group Office 2015 2014 2015 2014 $ $ $ $ Grants receivable 517,321 - 517,321 - Grants received in advance 1,538,599 5,884,218 - 3,745,989

16. Intangible assets Group Office 2015 2014 2015 2014 $ $ $ $ Cost Balance at 1 April 23,275,937 22,745,535 23,177,498 22,647,446 Additions 8,387,530 534,552 8,387,530 530,052 Written off (19,812,211) (4,150) (19,812,211) -

Balance at 31 March 11,851,256 23,275,937 11,752,817 23,177,498 Accumulated amortisation: Balance at 1 April 20,320,450 20,155,426 20,226,323 20,057,337 Amortisation for the financial year 856,747 169,174 854,497 168,986 Written off (19,692,256) (4,150) (19,692,256) -

Balance at 31 March 1,484,941 20,320,450 1,388,564 20,226,323 Net carrying amount Balance at 31 March 10,366,315 2,955,487 10,364,253 2,951,175

Average remaining useful life 2 years Less than 1 year 2 years Less than 1 year

17. Plant and equipment Office equipment, Computer Assets under furniture and fittings equipment work-in-progress Total Group $ $ $ $ 2015 Cost Beginning of financial year 3,969,643 2,888,674 543,423 7,401,740 Reclassification 543,423 - (543,423) - Additions 127,622 125,312 108,882 361,816 Disposal (29,700) - - (29,700) Written off (71,110) (6,753) - (77,863)

4,539,878 3,007,233 108,882 7,655,993

Accumulated depreciation Beginning of financial year 2,262,911 2,548,001 - 4,810,912 Depreciation for the financial year 739,948 167,893 - 907,841 Disposal (29,700) - - (29,700) Written off - (6,753) - (6,753)

2,973,159 2,709,141 - 5,682,300 Net Book Value 1,566,719 298,092 108,882 1,973,693

17. Plant and equipment (Continued) Office equipment, Computer Assets under furniture and fittings equipment work-in-progress Total 2014 $ $ $ $ Cost Beginning of financial year 3,446,082 2,907,043 49,721 6,402,846 Reclassification 334,750 - (334,750) - Additions 549,662 48,266 828,452 1,426,380 Disposal (1,500) - - (1,500) Written off (359,351) (66,635) - (425,986) 3,969,643 2,888,674 543,423 7,401,740 Accumulated depreciation Beginning of financial year 1,889,326 2,458,586 - 4,347,912 Depreciation for the financial year 543,732 156,050 - 699,782 Disposal (700) - - (700) Written off (169,447) (66,635) - (236,082) 2,262,911 2,548,001 - 4,810,912 Net Book Value 1,706,732 340,673 543,423 2,590,828

Office 2015 Cost Beginning of financial year 3,381,503 2,755,564 543,423 6,680,490 Reclassification 543,423 - (543,423) - Additions 54,601 118,614 - 173,215 Written off (64,959) (6,753) - (71,712) 3,914,568 2,867,425 - 6,781,993 Accumulated depreciation Beginning of financial year 2,135,242 2,433,090 - 4,568,332 Depreciation for the financial year 482,831 153,102 - 635,933 Written off - (6,753) - (6,753) 2,618,073 2,579,439 - 5,197,512 Net Book Value 1,296,495 287,986 - 1,584,481

2014 Cost Beginning of financial year 3,072,780 2,732,414 49,721 5,854,915 Additions 16,752 23,150 828,452 868,354 Reclassification 334,750 - (334,750) - Written off (42,779) - - (42,779)

3,381,503 2,755,564 543,423 6,680,490 Accumulated depreciation Beginning of financial year 1,757,874 2,283,958 - 4,041,832 Depreciation for the financial year 399,116 149,132 - 548,248 Written off (21,748) - - (21,748)

2,135,242 2,433,090 - 4,568,332 Net Book Value 1,246,261 322,474 543,423 2,112,158







17. Plant and equipment (Continued) As at the end of the reporting period, the net carrying amount of computer equipment which was acquired under finance lease agreements were as follows: Group and Office 2015 2014 $ $ Computer equipment 188,896 289,897

18. Investment in subsidiaries Office 2015 2014 $ $ Unquoted equity shares at cost 4 2

Details of the subsidiaries are as follows:

Name of companies (Country Effective equity of incorporation and principal interest held by place of business) Principal activities the Group 2015 2014 % % IP Academy (a) (Singapore) Company to promote education and 100 100 research in the field of intellectual property

IPOS International Pte. Ltd. (b) Company to market and export IPOS products and 100 100 (Singapore) services to foreign entities and businesses, and to engage in activities and collaborative arrangement with strategic partners to support Singapore and/or IPOS

IP Valuelab Pte. Ltd. (c) Company to develop IP management, IP valuation 100 - (Singapore) standards and services and catalyse IP Financing scheme

(a) A private company limited by guarantee. Under Clause 12 of IP Academy’s Memorandum of Association, each of the member of the Company undertakes to contribute a sum not exceeding $1 to the asset of the Company in the event of it being wound up. The number of members at the date of the reporting period is 5 (2014: 4). The financial statements for the financial year ended 31 March 2015 are audited by BDO LLP. The financial statements for the financial year ended 31 March 2014 was audited by RSM Chio Lim LLP.

(b) A private limited company incorporated on 28 February 2014. The financial statements for the period from 28 February 2014 to 31 March 2015 are audited by BDO LLP.

(c) A private limited company incorporated on 25 July 2014. IPOS subscribed to 2 ordinary shares of $1 each at the date of incorporated of IP Valuelab Pte. Ltd. The financial statements for the period from 25 July 2014 to 31 March 2015 are audited by BDO LLP.

19. Trade payables

Group Office 2015 2014 2015 2014 $ $ $ $ Trade payables – third parties 6,059,970 3,556,802 5,679,907 2,780,496 Amount due to related parties 420,795 576,583 420,795 576,583

6,480,765 4,133,385 6,100,702 3,357,079

The average credit period on purchases is 30 days (2014: 30 days). No interest is charged on the outstanding trade payables. Trade payables are denominated in the following currencies: Group Office 2015 2014 2015 2014 $ $ $ $ Euro 2,807,785 14,821 2,807,785 14,821 United States dollar 31,114 17,569 31,114 17,569 Singapore dollar 3,641,866 4,100,995 3,261,803 3,324,689

6,480,765 4,133,385 6,100,702 3,357,079

Amount due to related parties is unsecured, non-interest bearing and repayable on demand.

20. Other payables Group Office 2015 2014 2015 2014 $ $ $ $ Accrued expenses 11,450,287 3,883,264 10,547,697 2,782,871 Patent Cooperation Treaty advances 18,516 261,151 18,516 261,151 Provision for reinstatement costs 426,500 450,000 353,500 450,000 Provision for unconsumed leave 858,293 724,713 844,791 715,449 Other payables and advances 50,045 1,260 49,510 1,260 Amount due to subsidiaries - - 441,696 2,623,161 Amount due to related parties 483,254 1,494,208 483,254 1,494,208

13,286,895 6,814,596 12,738,964 8,328,100

Amount due to subsidiaries and related parties are unsecured, non-interest bearing and repayable on demand.

Other payables are denominated in Singapore dollar.

Group Office Provision for Provision for Provision for Provision for unconsumed reinstatement unconsumed reinstatement leave Cost leave Cost 2015 $ $ $ $ Balance at beginning of the year 724,713 450,000 715,449 450,000 Provisions made 858,293 73,000 844,791 - Provisions reversed (724,713) (96,500) (715,449) (96,500)

Balance at end of the year 858,293 426,500 844,791 353,500







21. Deferred revenue Group Operating government Course Renewal fees grant fees Total $ $ $ $ 2015 Balance at beginning of the year 17,186,038 113,874 133,826 17,433,738 Additions during the financial year 4,859,392 423,007 552,614 5,835,013 Revenue recognised/grant amortised during the financial year (3,079,139) (419,428) (564,579) (4,063,146) Balance at end of the year 18,966,291 117,453 121,861 19,205,605 2014 Balance at beginning of the year 15,725,097 111,210 96,705 15,933,012 Additions during the financial year 4,287,448 113,874 510,867 4,912,189 Revenue recognised/grant amortised during the financial year (2,826,507) (111,210) (473,746) (3,411,463) Balance at end of the year 17,186,038 113,874 133,826 17,433,738

Renewal fees and operating government grant of the Group were restated for the year ended 31 March 2014 (See Note 31 for details).

Office Renewal fees 2015 2014 $ $ (Restated) Balance at beginning of the year 17,186,038 15,725,097 Additions during the financial year 4,859,392 4,287,448 Revenue recognised during the financial year (3,079,139) (2,826,507) Balance at end of the year 18,966,291 17,186,038

22. Operating grant/Grant payable Operating grant was funded by the Office to create and run IPOS International Pte. Ltd. (“IPOS- I”) for three years from January 2014. IPOS-I is seeking first round funding for the amount $5 million cumulatively for the first three years of operations. The funding will be used for staffing and retainer fees, marketing and foreign travel as well as hosting of local events and strategic initiative to establish Singapore as a regional intellectual property hub.

In prior year, grant payable referred to the operating grant funding by the Office to its subsidiary, IP Academy (“IPA”). The operating grant aimed to assist IPA in its development plans to be the premier IP training center in the region so that it could set regional footprints and build up Singapore’s position as an IP hub of Asia. It also provided a better alignment of the Office with IPA, to set new directions in boosting Singapore as an IP hub in the areas of IP education, training, research, and thought-leadership.

23. Patent deposits

Patent deposits are received for patent search and examination conducted by international search authorities. Upon completion of the search and examination, it will be paid to the respective international patent offices.

24. Finance lease payable Group and Office Present value of Minimum lease payments Minimum lease payments 2015 2014 2015 2014 $ $ $ $ Amount payable under finance lease: Within one year 5,039 70,371 4,962 69,221 In the second to fifth year inclusive - - - - 5,039 70,371 4,962 69,221 Less: Future finance charge (77) (1,150) - -

Present value of lease obligations 4,962 69,221 4,962 69,221

Less: Amount due for settlement within 12 months (shown under current liabilities) (4,962) (69,221)

Amount due for settlement after 12 months - -

21. Deferred revenue (Continued) Group Office 2015 2014 2015 2014 $ $ $ $ Presented in the statement of financial position as: Current portion 3,392,455 3,109,803 3,153,141 2,862,103 Non-current portion 15,813,150 14,323,935 15,813,150 14,323,935 19,205,605 17,433,738 18,966,291 17,186,038

20. Other payables (Continued) Group Office Provision for Provision for Provision for Provision for unconsumed reinstatement unconsumed reinstatement leave Cost leave Cost 2014 $ $ $ $ Balance at beginning of the year 511,965 450,000 507,023 450,000 Provisions made 724,713 - 715,449 - Provisions reversed (511,965) - (507,023) -

Balance at end of the year 724,713 450,000 715,449 450,000

The provision for reinstatement costs are the estimated costs of dismantlement, removal or restoration of office premises arising from the acquisition or use of assets, which are capitalised and included in the cost of plant and equipment.







26. Significant related party transactions

A related party is defined as follows:

(a) A person or a close member of that person’s family is related to the Group and the Office if that person:

(i) Has control or joint control over the Office; (ii) Has significant influence over the Office; or (iii) Is a member of the key management personnel of the Office or of a parent of the Office.

(b) An entity is related to the Group and the Office if any of the following conditions apply:

(i) The entity and the Office are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others); (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member); (iii) Both entities are joint ventures of the same third party; (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity; (v) The entity is a post-employment benefit plan for the benefit of employees of either the Company or an entity related to the Office. If the Office is itself such a plan, the sponsoring employers are also related to the Office; (vi) The entity is controlled or jointly controlled by a person identified in (a); (vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

During the financial year, in addition to the information disclosed elsewhere in these financial statements, the Office has entered into the following transactions with related parties at rates and terms agreed between the parties:

Group Office 2015 2014 2015 2014 $ $ $ $ Ministries and Statutory Boards - Operating grants received from government 9,106,154 14,381,521 6,900,171 10,583,727 - Contributions to Consolidated Fund 1,310,849 2,011,831 1,310,849 2,011,831 - Equity injection 238,776 328,771 238,776 328,771

27. Capital commitments

As at the end of the financial year, commitment in respect of capital expenditure is as follows: Group and Office 2015 2014 $ $ Capital expenditure contracted but not provided for - Intangible assets 966,706 7,323,849 - Plant and equipment 292,390 - 1,259,096 7,323,849

26. Significant related party transactions (Continued)

During the financial year, in addition to the information disclosed elsewhere in these financial statements, the Office has entered into the following transactions with related parties at rates and terms agreed between the parties (continued):

Group Office 2015 2014 2015 2014 $ $ $ $ Subsidiaries Purchases of goods and/or services - Training course - - 133,290 363,676 - Course development - - - 249,510 - Research - - - 90,000 Sales of goods or services - - - 67,930 Salaries of seconded staff - - 1,967,018 761,566 Renovation paid - - 646,625 20,367 Rental deposit paid - - 107,306 236,707 Consultancy services - - 174,000 - Training fees - - 1,024,380 597,413 Rental and utilities - - 520,245 156,326 Development grant expense - - 558,198 461,832

Compensation of key management personnel The remuneration of members of key management during the year was as follows:

Group Office 2015 2014 2015 2014 $ $ $ $ Short-term employee benefits 2,273,641 2,081,009 1,960,504 1,853,360 Post-employment benefits 83,083 75,042 71,170 66,502 2,356,724 2,156,051 2,031,674 1,919,862

Key management refers to employees designated as Group Directors and above who have the authority and responsibility for planning, directing and controlling the activities of the Office.

There is a change in comparative figures for remuneration of key management personnel to reflect change in definition of key management.

25. Dividends On 17 November 2014, the Board approved a dividend of $384,000 to the Ministry of Finance. The source of this dividend is the surplus after income tax and Contribution to Consolidated Fund, for the financial year ended 31 March 2014.

24. Finance lease payable (Continued)

The Group has taken up finance leases for the computer equipment with a lease terms of 3 years. For the year ended 31 March 2015, the effective borrowing rate was 1.55% (2014: 1.55%) per annum. The Group’s exposure to fair value interest rate risk is minimal due to its immateriality. All leases are on fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The carrying amount of the Group and Office’s lease obligations approximates its fair value.

The subsidiaries do not have any asset under finance lease arrangement.






Group Office 2015 2014 2015 2014 $ $ $ $ Financial assets Cash and cash equivalent 109,464,521 106,304,216 106,586,867 105,183,191 Trade receivables 972,626 1,446,861 890,690 1,432,157 Other receivables 1,665,258 1,675,608 1,493,846 1,175,639

112,102,405 109,426,685 108,971,403 107,790,987 Less: Prepayment (160,231) (187,531) (125,598) (187,531) Accrued revenue (860,690) (842,969) (860,690) (842,969) Deferred expenses (107,301) (86,341) - -

(1,128,222) (1,116,841) (986,288) (1,030,500)

Loans and receivables 110,974,183 108,309,844 107,985,115 106,760,487

30. Financial Instruments, financial risks and capital risks management

Management Categories of financial instruments

The following table sets out the financial instruments as at the end of the reporting period:

30. Financial Instruments, financial risks and capital risks management (continued)

Group Office 2015 2014 2015 2014 $ $ $ $ Financial liabilities Trade payables 6,480,765 4,133,385 6,100,702 3,357,079 Other payables 13,286,895 6,814,596 12,738,964 8,328,100 Patent deposits 10,308,381 11,912,894 10,308,381 11,912,894 Finance lease payable 4,962 69,221 4,962 69,221 30,081,003 22,930,096 29,153,009 23,667,294 Less: Patent Cooperation Treaty advances (18,516) (261,151) (18,516) (261,151) Advances (49,510) (1,260) (49,510) (1,260) Provision for reinstatement costs (462,500) (450,000) (353,500) (450,000) Provision for unconsumed leave (858,293) (724,713) (844,791) (715,449) (1,388,819) (1,437,124) (1,266,317) (1,427,860)

Other financial liabilities at amortised cost 28,692,184 21,492,972 27,886,692 22,239,434 Risk management is integral to the business of the Group. The Group has a system of control in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risks. The management continually monitors the Group’s risk management process to ensure that an appropriate balance between risk and control is achieved.

Credit risk

Credit risk refers to the risk that the counterparties will default on its contractual obligations resulting in a financial loss. The carrying amount of trade and other receivables represent the Group’s and the Office’s maximum exposure to credit risk.

At the end of the reporting period, the Group has trade and other receivables due from government bodies which accounts for approximately 5% (2014: 26%) of the trade receivables balance. However, no significant credit risk is expected to arise. The maximum exposure to credit risk in the event that the counterparties fail to perform their obligations as at the end of financial year in relation to each class of recognised financial assets is the carrying amount of those assets as stated in the statement of financial position.

Cash and fixed deposits are placed with banks and financial institutions which are regulated. The Office entered into a cash pooling arrangement with a government body under a Centralised Liquidity Management scheme (Note 12). The Office is of the view that the credit risk arising is minimal as the counterparty is a government body. The summary of significant accounting policies of cash and cash equivalents are described in Note 2.8.

The deposits with Accountant-General’s Department (“AGD”) under Centralised Liquidity Management are placed with high credit quality financial institutions and are available upon request.

Liquidity risk

The Group monitors its liquidity risk and maintains a level of cash and bank balances deemed adequate by management to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. The Office’s funds are placed in bank deposits and a government body which have high liquidity.

The Group’s financial assets and financial liabilities are due within 1 year.

28. Operating lease commitments

As lessees

At the end of the financial year, commitments in respect of non-cancellable operating leases in respect of office premises is as follows:

Group Office 2015 2014 2015 2014 $ $ $ $ Within one year 3,631,859 3,392,993 3,178,247 2,963,768 In the second to fifth year inclusive 9,676,814 1,696,496 8,481,814 1,481,884

13,308,673 5,089,489 11,660,061 4,445,652

Operating lease payments represent rental payable by the Office for office premises. Leases are negotiated for an average of three years (2014: six years) and rentals are fixed for the duration of the leases.

29. Funds held on behalf of others Group and Office 2015 2014 $ $ Patent Agent Manpower Capability Development Fund 5,474 5,474

These funds refer to the Patent Agent Manpower Capability Development Fund which is a funding arrangement between the Office and Ministry of Law, and are maintained separately from the Group’s financial statements. This project seeks to develop Singapore’s manpower capability in patent agent services by developing an advanced patent drafting course and implementing a co-funding scheme to support experienced foreign patent agents for two-year stints to provide mentorship and training for patent agent trainees in Singapore. The aim of these efforts is to eventually build up a pool of specialist patent agents which could serve not just the Singapore market but also regional markets.



93Annual Report 2014/1592 Annual Report 2014/15



United States dollar Euro Swiss Francs $ $ $ The Group and Office 2015 Cash and cash equivalent - 1,385,578 - Trade receivables - - 830,670 Trade payables (31,114) (2,807,785) -

(31,114) (1,422,207) 830,670 2014 Trade receivables - - 739,425 Trade payables (17,569) (14,821) - (17,569) (14,821) 739,425

Sensitivity analysis for foreign currency risk

A 5% strengthening of Singapore dollars against the following currencies at the reporting date would increase (decrease) the Group’s and Office’s surplus before grants and contribution to Consolidated Fund by the amounts shown below. This analysis assumes that all other variables remain constant. Group and Office 2015 2014 $ $ United States dollar 1,556 878 Euro 71,110 741 Swiss francs (41,533) (36,971) A 5% weakening of Singapore dollar against the above currencies would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables in particular interest rates, remain constant.


Market risk

Market risk is the risk that changes in market prices, such as interest rates and foreign exchange rates will affect the Office’s income or the value of its holdings of financial instruments.

The Group actively manages the market risk by placing deposits with AGD under Centralised Liquidity Management. Interest rate risk

The Group is exposed to interest rate risk through the impact of rate changes mainly from investments in fixed deposits. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The interest rate for deposits with AGD and financial institutions are based on deposit rates determined by the AGD and financial institutions with which the cash are deposited and are expected to move in tandem with market interest rate movements.

No sensitivity analysis is prepared as the Group does not expect any material effect on the Group’s profit or loss arising from the effects of reasonably possible changes to interest rates on interest bearing financial instruments at the end of the reporting period.

Foreign exchange risk

The foreign exchange risk arises mainly from collections for international trademark and design applications through the World Intellectual Property Office and payments for search and examination by international search authorities.

The following table represents the Group’s major currency exposure as at the end of the reporting period, expressed in Singapore dollars equivalent.

31. Reclassifications and restatements

31.1a The protection period for the renewal of trademark international applications is 10 years. In the previous financial years, the Office had erroneously recognised the renewal fees of trademark international protection as income at the point of receipt of the application instead of recognising them over the extended protection period of 10 years on a straight-line basis.

Management had rectified the error and restated the comparative figures by increasing the Office’s deferred revenue by $4,315,025 (current: $647,457; non-current: $3,667,568) and $3,474,457 (current: $507,007; non-current: $2,967,450) for the financial years ended 31 March 2014 and 31 March 2013 respectively.

As a result, the accumulated surplus of the Office for financial year ended 31 March 2014 decreased by $4,315,025 with $3,474,457 being brought forward from financial year ended 31 March 2013.

31.1b Resulting from the error, registration fee income of the Group and the Office for the financial year ended 31 March 2014 had been restated and reduced by $840,568, which should be recognised over the remaining protection period.

31.2 One of the Group’s subsidiaries had erroneously recorded the full subvention income in the financial year ended 31 March 2014 and 31 March 2013 instead of deferring the portion related to the course that was conducted subsequent to the relevant financial year end. Adjustments amounting to $113,874 and $111,210 were made to increase the carrying amounts of deferred revenue as at 31 March 2014 and 31 March 2013 respectively. The accumulated surplus amounts as at 31 March 2014 and 31 March 2013 have also been restated by the same amounts respectively.

As a result, other fees and charges for financial year ended 31 March 2014 had been restated and reduced by $2,664 which represented the net impact of the above adjustments.

31.3 In the previous financial year, the Group and the Office had classified computer software as plant and equipment instead of intangible assets. Accordingly, the Group and the Office have reclassified these items amounting to $2,955,487 (2013: $2,590,109) and $2,951,175 (2013: $2,590,109) respectively. Accordingly, for financial year ended 31 March 2014, the Group’s depreciation expense of $169,174 had been reclassified to amortisation expense. Similarly the Office’s depreciation expense of $168,986 had been reclassified to amortisation expense.

31.4 In the previous financial year, the Group and the Office had classified amortisation of deferred capital grant as operating grant. Accordingly, the Group and the Office had reclassified this item amounting to $58,143 in the Statement of Comprehensive Income.

31.5 In the previous financial years, the Group and the Office had classified certain other receivables as trade receivables. Accordingly, the Group had reclassified these items amounting to $469,041 in financial year ended 31 March 2014. For financial year ended 31 March 2014 and 2013, the Office had reclassified these items amounting to $240,150 and $137,518 respectively. These items are considered non trade in nature as the amounts receivable are relating to reimbursement of expenses incurred.


Fair value of financial assets and financial liabilities

The carrying amounts of cash and cash equivalents, trade and other receivables and payables and other liabilities approximate their respective fair values due to the relatively short-term maturity of these financial instruments.

Capital risk management policies and objectives

The capital structure of the Group consists of share capital and accumulated surplus. The Group’s policy is to maintain a strong capital base so as to maintain shareholder, creditors and market confidence and to sustain future development of the business. The Group’s approach to capital management remains unchanged from 2014.






As As reclassified Note previously Reclassification Restatement and restated 2014 2014 2014 2014 $ $ $ $ Group Statement of comprehensive income Operating income Registration fees 31.1b 39,286,637 - (840,568) 38,446,069 Other fees and charges 31.2 1,206,181 - (2,664) 1,203,517 Operating expenditure Depreciation expense 31.3 868,956 (169,174) - 699,782 Amortisation expense 31.3 - 169,174 - 169,174 Grants Operating grants 31.4 9,488,496 (58,143) - 9,430,353 Deferred grants amortised – Government 31.4 28,830 58,143 - 86,973

Statement of financial position Current assets Trade receivables 31.5 1,915,902 (469,041) - 1,446,861 Other receivables 31.5 1,206,567 469,041 - 1,675,608 Non-current assets Plant and equipment 31.3 5,546,315 (2,955,487) - 2,590,828 Intangible assets 31.3 - 2,955,487 - 2,955,487 Current liabilities Deferred revenue 31.6, 31.7 2,752,100 (403,628) 761,331 3,109,803 Deferred capital grants - Government 31.6 28,830 403,628 - 432,458 Non-Current liabilities Deferred revenue 31.7 10,656,367 - 3,667,568 14,323,935 Funds Accumulated surplus 31.7 70,068,721 - (4,428,899) 65,639,822

As As reclassified Note previously Reclassification Restatement and restated 2014 2014 2014 2014 $ $ $ $ Office Statement of comprehensive income Operating income Registration fees 31.1b 39,286,637 - (840,568) 38,446,069 Operating expenditure Depreciation expense 31.3 717,234 (168,986) - 548,248 Amortisation expense 31.3 - 168,986 - 168,986 Statement of financial position Current assets Trade receivables 31.5 1,672,307 (240,150) - 1,432,157 Other receivables 31.5 935,489 240,150 - 1,175,639 Non-current assets Plant and equipment 31.3 5,063,333 (2,951,175) - 2,112,158 Intangible assets 31.3 - 2,951,175 - 2,951,175 Current liabilities Trade payables 31.8 4,171,277 (814,198) - 3,357,079 Other payables 31.8 7,513,902 814,198 - 8,328,100 Deferred revenue 31.1a 2,214,646 - 647,457 2,862,103 Non-Current liabilities Deferred revenue 31.1a 10,656,367 - 3,667,568 14,323,935 Funds Accumulated surplus 31.1a 69,426,729 - (4,315,025) 65,111,704

31. Reclassifications and restatements (Continued) As reclassified Note previously Reclassification Restatement and restated 2013 2013 2013 2013 $ $ $ $ Group Statement of financial position Non-current assets Plant and equipment 31.3 4,645,043 (2,590,109) - 2,054,934 Intangible assets 31.3 - 2,590,109 - 2,590,109 Current liabilities Deferred revenue 31.7 2,242,061 - 618,217 2,860,278 Non-Current liabilities Deferred revenue 31.7 10,105,284 - 2,967,450 13,072,734 Funds Accumulated surplus 31.7 60,291,645 - (3,585,667) 56,705,978

31. Reclassifications and restatements (Continued)

31.6 In the previous financial year, the Group had classified deferred capital grant as deferred revenue. Accordingly, the Group had reclassified this item amounting to $403,628 as deferred capital grant in the Statement of Financial Position.

31.7 For the financial year ended 31 March 2014 and 2013, the deferred revenue of the Group had been restated by $4,428,899 (current: $761,331; non-current: $3,667,568) and $3,585,667 (current: $618,217; non-current: $2,967,450) respectively. These are relating to error in recognition of renewal fees as shown in note 31.1a as well as error in recognition of Other fees and charges as shown in note 31.2.

31.8 In the previous financial years, the Office had classified other payables as trade payables. Accordingly, for financial year ended 31 March 2014 and 2013, the Office had reclassified these items amounting to $814,198 and $32,098 respectively. These items were considered non trade in nature as the amounts payable were related to renovation costs and computer services.





31. Reclassifications and restatements (Continued) As As reclassified Note previously Reclassification Restatement and restated 2013 2013 2013 2013 $ $ $ $ Office Statement of financial position Current assets Trade receivables 31.5 2,463,183 (137,518) - 2,325,665 Other receivables 31.5 1,479,359 137,518 - 1,616,877 Non-current assets Plant and equipment 31.3 4,403,192 (2,590,109) - 1,813,083 Intangible assets 31.3 - 2,590,109 - 2,590,109 Current liabilities Trade payables 31.8 3,354,958 (32,098) - 3,322,860 Other payables 31.8 5,258,822 32,098 - 5,290,920 Current liabilities Deferred revenue 31.1a 2,145,356 - 507,007 2,652,363 Non-Current liabilities Deferred revenue 31.1a 10,105,284 - 2,967,450 13,072,734 Funds Accumulated surplus 31.1a 59,604,265 - (3,474,457) 56,129,808

32. Events subsequent to the reporting date

The Office declared a dividend of $1,000 on 3 August 2015 to the Ministry of Finance in respect of the financial year ended 31 March 2015.



Intellectual Property Office of Singapore51 Bras Basah Road #01-01, Manulife Centre

Singapore 189554www.ipos.gov.sg

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Documents

ANNUAL REPORT WHERE IDEAS TAKE FLIGHT · Office, Korean Intellectual Property Office, State Intellectual Property Office of the People’s Republic of China, and the United States