Overview of Patents in Cambodia

Patents grant an inventor the exclusive right to an invention for a set period of time. In Cambodia, the Law on Patents, Utility Model Certificates and Industrial Designs (2003) governs registration, protection and enforcement of patents. The Prakas on the Procedure for the Grant of Patents and Utility Model Certificates (2007) provides details on the administrative procedures for the filing and granting of patents. As patent law is still very much in its infancy in Cambodia, no patents have been finalized and granted to date, and the law is largely untested. However, a review of the law can provide some indications as to what issues to consider when filing and maintaining a patent in Cambodia.

What can be patented in Cambodia?

Patents can cover inventions which are new, involve an inventive step and are industrially applicable. An invention is defined as an idea which permits the solution to a specific problem in the field of technology, and may be, or may relate to, a product or process. However, certain types of inventions are not patentable, such as scientific theories, business methods, surgical treatments, and plants and animals. Plant variety registration is governed by a separate law. Pharmaceutical products are currently excluded from protection until January 1,2016 (though applications can be filed earlier to be examined after this date). Furthermore, inventions which would cause social harm (such as illegal narcotics) are not patentable.

An invention is considered new if it is not anticipated by prior art. This means that prior to the Cambodian filing (or priority date), any prior public disclosure of the invention anywhere in the world and by whatever format will be considered prior art and affect the novelty of the invention. An exception is if the disclosure occurred within twelve months prior to the filing date (or if applicable, the priority date) and the disclosure was either by reason or as a result of acts committed by the applicant/predecessor in title, or as an abuse by a third party against the applicant/predecessor in title.

QIP’s: could your business be eligible for a tax holiday?

In order to encourage rehabilitation and growth in the Cambodian economy, in 1994, the Cambodian government came up with an incentive scheme to attract investment in the Kingdom. The scheme provides that candidates can apply to the Cambodian Development Council (CDC) for recognition as a Qualified Investment Project (QIP). This grants them a holiday on income tax and/or customs duties for up to nine years.

If the CDC approves the application, the business will be granted a tax holiday based on the formula below. Note that it is the project itself, rather than the company or entity that qualifies for the exemption, meaning that non-QIP income will still be liable for tax.