In the management of its finances during the reporting period, the EAPO relied on the Eurasian Patent Convention (EAPC), the Financial Regulations under the EAPC, and the effective laws of the country of location of the EAPO headquarters. The EAPO managed its finances in accordance with the budget approved by the Administrative Council of the Eurasian Patent Organization for 2022.
The amended EAPO budget for 2022 was adopted in accordance with Rule 9 of the Financial Regulations under the Eurasian Patent Convention at the fortieth (twelfth extraordinary) meeting of the EAPO Administrative Council. The need to amend the budget was associated with the introduction of new fees for legally significant actions in relation to Eurasian applications and patents on July 01, 2022, which greatly affected indicators in the adopted budget.
The complex global geopolitical situation and negative trends in the global economy certainly affect the level of inventive and applicant activity, which is crucially important for the Eurasian Patent Organization, as its expenses are primarily covered by incoming fees. As the practice of the last months of the reporting year has shown, there is growing global interest in the Eurasian regional patenting procedure. As a result, in 2022, the number of Eurasian application filings exceeded the level of the prior year by 2.4%. This applicant activity, combined with a positive trend in other volume indicators affecting financial results, contributed to the steady flow of revenue from fees and payments for Eurasian applications and patents in the reporting year.
It is important to note that the restrictions imposed in relation to the global payment system have not affected the Eurasian Patent Organization to a large extent. As of this time, there have been no changes in the payment procedure in the context of the EAPO’s activities as an international organization.
The diagram 1 shows the structure of Eurasian Patent Office revenue from fees and payments in 2022.
Revenue from fees for maintaining Eurasian patents in the territories of the States party to the EAPC and the Republic of Moldova remained high in 2022.
The diagram 2 below presents the ratio of the fees for the maintenance of Eurasian patents in force from each State party to the EAPC and the Republic of Moldova in the aggregated earnings for 2022.
Following the Procedure for Building and Disbursing the Eurasian Patent Organization Reserve Fund, the EAPO made the budgeted statutory deductions at year-end 2022. The Reserve Fund is intended to sustain the functionality of the organization should it experience an unforeseen budget deficit.
By meeting its revenue target for the reporting year, the organization was able to fully finance its expenditures as budgeted and support the sustainability of its operations.