In the previous financial year over 36,000 patents were filed in Australia. 14,500 were filed in Singapore. Protecting intellectual property rights is an important element of business.
IPH (ASX:IPH) is the leading IP services group in the Asia Pacific region and now Canada. They are the leading patent group in Australia, New Zealand, Canada and Singapore and the top trademark group in Australia, New Zealand and Canada. They service 10 IP jurisdictions and more than 25 countries and have over 1600 staff. They file over 36,000 patent filings annually and over 14,000 trademark filings.
The company listed in 2014 and has grown through a series of acquisitions as well as organic growth. They now operate under seven distinct brands following some consolidation. Their acquisitions include taking over the listed Xenith Group in 2019 for US$109 million. In FY23 they purchased Smart & Biggar which is the number one patent filer in Canada for $387 million. Then in August 2023 they acquired Ridout & Maybee for $74 million and then ROBIC in December for $124 to build out their Canadian presence. Last month they made an offer for ASX listed Qantm Intellectual Property (ASX:QIP), but two days later, QANTM announced that they had entered into a binding implementation deed with a rival suitor.
IPH derive 72% of their revenue from patent filings. 16% comes from trade marks with the remainder from other legal revenue. The chart below shows the percentage of patent filings derived from different geographic regions during FY23. Bear in mind that they have since expanded their Canadian operations.
Source: IPH Limited, Macquarie Australia Conference presentation, 8/5/24
In Australia the market for patent filings peaked in financial year 2021 and since then has been steadily declining. IPH is the largest player, but their market share has also been in decline. It hit 38.1% in FY20, but at the most recent results it was 31.6% following a gradual reduction each year.
Following the acquisition of three firms, IPH is now the leading IP professional services firm in Canada with about 28% market share for patent filings. They are also considering making further acquisitions in that market.
They also have a strong network of practices across Asian markets. This is perceived to be an area of strong growth potential, but in…
