IP Australia Corporate Plan 2020-21

ContentsDirector General’s Introduction .................................................................................................. 3

Introduction .................................................................................................................................. 4

Operating environment ........................................................................................................... 5

Strategic objectives ................................................................................................................. 7

Performance monitoring.............................................................................................................. 9

Operational Excellence ........................................................................................................... 9

Service Excellence .................................................................................................................. 9

Value Add ................................................................................................................................ 9

Performance framework .............................................................................................................10

Regulator Performance Framework .......................................................................................10

Environment ............................................................................................................................10

Quality ....................................................................................................................................10

Cost recovery .........................................................................................................................10

Demand forecast .....................................................................................................................11

Capability ....................................................................................................................................12

Planning and reporting framework ........................................................................................12

People Strategy ......................................................................................................................12

International Engagement Strategy ....................................................................................... 13

IT Strategy 2022 ..................................................................................................................... 13

Capital Investment Strategy ................................................................................................... 14

Risk oversight and management ...............................................................................................15

Overview .................................................................................................................................15

Risk appetite ..........................................................................................................................15

Strategic risks .........................................................................................................................15

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Director General’s IntroductionIP Australia’s vision is to deliver world leading IP services that are modern, effective and efficient to ensure all Australians benefit from great ideas. We achieve this through the administration and registration of patents, trade marks, designs and plant breeders rights; the professional registration of patents and trade marks attorneys; educating our customers on the role of IP in their business and providing advice to the Australian Government to better shape the IP rights system both domestically and internationally.

Our customers are at the centre of what we do and our new Customer Service Charter sets out the key commitments we have made to become a more customer focused agency. The new Charter has been streamlined and simplified to focus on the things that matter most to our customers; the timeliness and quality of their IP rights. Most importantly, our performance against the new commitments will be measured directly by our customers, which will then inform the way we do business in the future.

The quality of our IP rights is crucial to our work and will be supported by the implementation of a new Quality Framework and system in 2020-21. The Framework, with a strong emphasis on outcomes for our customers, will help embed principles of continuous improvement and ensure greater consistency across search and examination services.

While our focus on innovation and being a leader in digital services will continue, COVID-19 has seen demand for IP rights fall across the globe. As a result of the projected financial impacts of the COVID-19 pandemic, IP Australia has chosen to reduce our capital investment budget in 2020-21 and focus our investments on critical activities that transform service delivery for the benefit of our customers, reinforce the agency’s strong security culture and consolidate work on our IP data platform.

We will continue to progress the replacement of our transactional platforms with simple and modern solutions that make it easier for our customers to do business with us, cementing our position as one of the few government agencies offering 99 per cent digital end to end services.

Our people remain our greatest asset and we have a workforce of highly educated staff, with skills that span technical, scientific and legal disciplines. We will continue to invest in talent, capability development and flexible ways of working to build the workforce of the future. We value diversity and are committed to creating a culture where all our employees feel respected and included. By encouraging diversity of thought we inspire leadership and accountability at all levels.

As the Accountable Authority for IP Australia, I am pleased to present our 2020-21 Corporate Plan which covers the period 2020-21 to 2023-24 and is presented as required under paragraph 35(1) of the Public Governance, Performance and Accountability Act 2013.

Michael Schwager

Director General IP Australia

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IntroductionEnsuring Australians benefit from great ideasIP Australia is responsible for administering Australia’s IP rights system, specifically patents, trade marks, designs and plant breeder’s rights. Our vision is to create a world leading IP system building prosperity for Australia and our purpose, to ensure Australians benefit from great ideas, drives the work that we do.

We deliver improved IP rights administration and professional registration services to increase awareness of the IP system, and shape the IP system domestically and internationally to help Australian innovation and business. We are committed to building the capability of our people and our organisation to support the work we do.

Delivery of these elements enables us to provide an effective framework for protection of innovative products and brands. This creates a secure environment for investment in innovation, enables firms to build brand value and business reputation, and encourages the disclosure of inventions and the transfer of knowledge and technology.

We deliver on our responsibilities by focusing on our three strategic objectives of Operational Excellence, Service Excellence and Value Add.

OUR VISIONPROVIDES A PICTURE OF WHAT WE

ULTIMATELY WANT TO ACHIEVE

Creating a world leading IP system building prosperity for Australia

IP Australia

OUR PURPOSECOMMUNICATES WHY WE EXIST AND

INFORMS THE BASIS OF ALL OUR WORKEnsuring Australians benefit from great ideas

OUR OBJECTIVESOUTLINES HOW WE WILL ACHIEVE OUR

PURPOSE, AND HOW WE ORGANISE OUR WORK

OPERATIONAL EXCELLENCE

High performing core business and internal operations

SERVICE EXCELLENCE

High performing customer services that support our core business

VALUE ADD

Our expertise is leveraged to deliver value to the IP system, stakeholders

and the broader economy

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Operating environmentAs we move to a more globalised and knowledge-based economy, IP is the backbone of most high value enterprises. Intangible assets now make up the majority of the value of leading global companies and many local companies.

Businesses and markets acknowledge the extent to which IP underwrites their value. We see this in the level of company value ascribed to IP assets when companies are sold or invested in. We see it in the range of legal actions relating to IP (particularly by large technology companies) demonstrating a determination to protect their intellectual assets. We also see it in the international trade agenda, where IP is increasingly a key focus of negotiations.

There is also an increased awareness within governments that IP is an important economic asset which can generate growth, jobs and innovation by encouraging trade, investment, research and development, and technology diffusion. This leads to a greater focus on developing and implementing policies to attract and retain IP. In relation to the COVID-19 pandemic, the establishment of IP solutions that support innovation, cooperation and collaboration will play a critical role in helping to facilitate the rapid production of life saving diagnostics and vaccines.

It is critical that the IP system in Australia adapts to this changing landscape to serve Australian innovation and business both at home and abroad.

Global demand for IP rightsIP rights provide an incentive for businesses to invest in innovative and entrepreneurial activity, which contributes to productivity growth. Filings from international applicants represent a critical feature of our economy and support foreign investments in our market. Australia has long imported foreign capital, including technology, to grow its economy at a faster rate than reliance on its domestic resources would otherwise allow.

In 2019, growth in the world’s advanced economies slowed noticeably in 9 out of 10 major international markets. The impact of this global slowdown has been felt throughout the Australian economy, as world output growth fell from 3.6 per cent in 2018 to an estimated 2.9 per cent in 2019 and international businesses filed fewer IP rights in Australia overall than in 2018.

This fall in Australian applications reflects a softening of growth in the world’s advanced economies as well as the fact that 2018 was a record breaking year. As at March 2020, year on year growth in IP rights demand had remained relatively flat, and while there has been a small drop in demand since March, potentially due to the impact of COVD-19, it is too soon to determine the long-term impacts of the pandemic on the level of Australian or international filings for IP rights. We will continue to collaborate internationally to share data and undertake joint analysis to closely monitor the effect on the Australian and global economies of COVID-19, and in turn the demand for our services.

Technology drives fast-paced change and opens opportunities Along with economic globalisation we continue to witness huge technological change. Technologies including artificial intelligence, big data, the internet of things, advanced robotics, blockchain and biomedical developments such as CRISPR technology will reshape business, markets and the workforce over the coming decades.

Rapid developments in device connectivity, computing power, artificial intelligence and data capacity are fuelling growth in digital technologies, with implications for IP functions and processes. Digital technologies provide us with options for more efficient administration, examination and monitoring of IP rights.

The way we interact with each other has also increasingly moved online. Customers expect leading-edge online services to facilitate their use of the IP system. Digital information systems are more important than ever and provide a powerful platform for us to interact with our customers. We are increasingly utilising smart analytics and improved data holdings to innovate and find efficiencies in how we conduct our work and improved methods to gain insights on our data. We aim to position IP Australia at the leading edge of technology and leverage our knowledge and expertise to add value to the IP system both at home and abroad.

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Working together to enable Australians to benefit from great ideas.In addition to administering Australia’s registrable IP rights and Trans-Tasman IP attorney regime, we also promote awareness of IP, provide advice to Government on the development of IP policy and contribute to bilateral and multilateral negotiations and develop cooperation programs to support the global IP system. This system will require adjustment to meet new demands and to keep up with economic, social, legal and business developments. We play a key role to ensure these changes are in Australia’s best interest and meet customers’ needs.

We work with professional bodies, business groups and other government agencies and hold regular meetings with our national stakeholder groups to ensure the continuing effectiveness and ongoing improvement of Australia’s IP system. This includes seeking their views on new and existing policies, such as the protection of indigenous knowledge or designs reform. Our aim is for stakeholders to engage with the system and help us make informed changes that provide greater benefits.

We also engage internationally, working with bodies such as the World Intellectual Property Organization and other IP offices to influence international policy and practice that contributes to increased consistency and confidence of international IP systems. In doing so, Australian businesses are better able to engage with and export to those international markets while protecting their IP.

IP Australia sits within the Industry, Science, Energy and Resources portfolio. In addition to working closely with the Department of Industry, Science, Energy and Resources (DISER), we actively engage with other Australian government entities such as the Attorney-General’s Department, the Department of Agriculture, Water and the Environment, the Department of Foreign Affairs and Trade and the Department of Health. We provide advice and input to policies and negotiations that may impact the way in which Australian businesses engage with and benefit from our IP system and those of our trading partners.

IP Australia and the

IP system

Innovators/Business All organisations, big and small,

who could potentially apply for a right.

IP Attorney professionThose who assist applicants by

providing advice for drafting, filing and defending applications.

They provide feedback and we collaborate on delivery of services.

GovernmentCommonwealth departments

and agencies working together to support jobs and growth

Applicants/Rights Holders (fee payers)

All organisations, big and small, who hold a right including those applying through attorneys.

Thought LeadersInnovators, business, industry leaders, prominent speakers providing regular commentary.

Delivery PartnersBusiness and entrepreneurs – includes technology companies, message multipliers sharing IP messaging.

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Strategic objectivesIP rights play an important role in encouraging economic growth, productivity and job creation for Australian innovators and businesses. We must be well positioned to adapt and respond to future challenges and opportunities that impact the IP rights system.

We achieve this through our Strategic Roadmap to 2030 which forms the basis of our strategic decision making, outlining the key activities that inform the way we operate in the short term as well as the vision we work towards over the long term. Each Horizon under our roadmap provides a snapshot of priority activity over a four-year period that enables us to our deliver on our vision and purpose. The strategic objectives for our current horizon (2018-22: Invest and Innovate) are:

1. Operational Excellence – ensuring that our core business and internal operations are high performing.

2. Service Excellence – ensuring we have high performing customer services that support our core business.

3. Value Add – that we leverage our expertise to deliver value to the broader IP system and economy.

In 2020-21, we will focus on improved IP rights administration and registration, valuable and active engagement with our customers and providing quality information and advice to better shape the domestic and international IP rights system. We will actively contribute IP intelligence and insights to the Australian Government’s post COVID-19 recovery efforts.

Operational Excellence: High performing core business and internal operations

Meeting our customers’ expectations

• Meeting our revised Customer Service Charter commitments, providing quality and timely IP rightsadministration.

• Continuously improving and better managing the quality of our services through our in-house qualitymanagement system.

Updating our fees

• Progress legislative approvals to implement fee changes following extensive consultation with ourstakeholders following our fee review in 2019-20.

Building our capability

• Embed our Capability Framework, including the +1 Job Specific (Technical) Capabilities which defines thenecessary capability of staff to ensure we have the right skill sets to administer IP rights.

• Ensure our staff can continue to work flexibly, utilising the best available technology, policies and practices tokeep our staff connected to each other and our customers whether they are in the office or work remotely.

Service Excellence: High performing customer services that support our core business

Engaging with our customers

• Deliver education and awareness programs to our customers.

• Improve our website to better inform and educate our customer through their IP journey.

Improving our systems

• Modernise our ICT platforms and environment to better support our customers.

• Redevelop our transaction and digital channels so customers can harness our digital assets.

• Modernise the plant breeder’s rights system to ensure that we continue to provide an effective framework forthe development of new plant varieties.

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Value Add: Our expertise is leveraged to deliver value to the IP system, stakeholders and the broader economy

Improving our data

• Build on our data matters strategy to ensure the right data is available and can be transformed into actionableinsights by decision makers.

• Improve the quality of data we provide through the Australian Government’s open data repository (data.gov.au),providing more information to enable new areas of research.

• Streamline data sharing with other government entities and accredited users in-line with the Data Availabilityand Transparency Legislation anticipated in 2020-21.

Reviewing the Designs system

• Identify priority action and proposed solutions for future changes to the Design system based on key findingsfrom the 12-month research we conducted into Australia’s design ecosystem.

Increasing our patent classification capability

• Continue to classify Australian patent applications using the Cooperative Patent Classification scheme,strengthening our international partnerships with the EPO.

• Develop tools to improve our classification capability and increase the value and quality of our patent dataholdings to ensure Australian inventions are readily searchable in worldwide databases.

Protection of Indigenous Knowledge

• Improve Australia’s IP system to promote the cultural integrity and economic potential of IndigenousKnowledge.

• Better support Aboriginal and Torres Strait Islander people so they benefit from and protect their IndigenousKnowledge.

• Increase awareness and understanding about the use and misappropriation of Indigenous Knowledge.

• Review our IP guide for Indigenous businesses.

• Explore potential changes to how IP Australia examines IP applications that involve Indigenous Knowledge.

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Performance monitoringOur approach to measuring our performance against these strategic objectives over the life of the 2020-21 Corporate Plan is outlined below.

Operational ExcellenceSTRATEGY PERFORMANCE CRITERIA ANNUAL TARGET

2020-21 2021-22 2022-23 2023-24

Maintain high customer satisfaction with the quality and timeliness of IP rights

Customer Service Charter (CSC) and legislative commitments are met

There are nine key targets under IP Australia’s Customer Service Charter, available on our website

Provide effective and efficient trans-Tasman attorney registration

Process applications within 15 working days from the date that the application complies with registration requirements

Achieve

Service ExcellenceSTRATEGY PERFORMANCE CRITERIA ANNUAL TARGET

2020-21 2021-22 2022-23 2023-24

Improve public awareness of the IP system through tailored education products

Improved awareness of the IP rights system

90%+ of people and partners accessing our public education, awareness and information products have an improved understanding of how IP rights can benefit their business

Digital services suit preferences of customers and exceed expectations

Customer satisfaction with the reliability and effectiveness of externally facing ICT systems

85%+ of customers are satisfied with the reliability and effectiveness of externally facing ICT systems

Build the customer service capability and knowledge of our staff

Customer satisfaction with our staff

85%+ of customers are satisfied with our staff is maintained in the customer satisfaction survey

Value AddSTRATEGY PERFORMANCE CRITERIA ANNUAL TARGET

2020-21 2021-22 2022-23 2023-24

Improve support for customers seeking to engage in international and domestic markets

Utility of value-added services to customers as measured by evaluation of key initiatives

Maintain or improve results for key initiatives, benchmark new initiatives and use feedback to improve future service offerings

Increase the accessibility of our data holdings

IP Australia’s public data is available

Increase in number of annual downloads from data.gov.au

Provide high quality and timely advice to Government

Provision of high quality advice to the Australian Government on policy, legislation, ministerial correspondence and briefs

Ministerial briefs and correspondence delivered to the Minister’s Office are of a high quality with less than 10 per cent requested to be redrafted.

100 per cent of ministerial briefs and correspondence requested by the Minister’s Office are delivered within the agreed timeframes

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Performance frameworkOur key performance setting and reporting documents are the Portfolio Budget Statement (PBS), Annual Report encompassing the Annual Performance Statement, and our Corporate Plan. Other key documents that contribute to our performance framework are set out below.

RegulatorThe regulator performance framework aims to reduce unnecessary or inefficient regulation imposed on individuals, business and community organisations. Performance against the framework is measured through an externally validated self-assessment report which aims to identify the extent to which a regulator is performing against the six KPIs which state the Government’s expectations of a regulator’s performance. Measuring a common set of performance indicators allows organisations to benchmark their performance against other regulators, share lessons learnt and work together to reduce the overall regulatory burden on Australian individuals and businesses.

Our measures of success against these indicators have been selected to ensure:

• high-quality services are provided in a timely way.

• communication is clear, meaningful and timely.

• compliance standards are transparent.

Our annual self- assessment is validated by the IP Stakeholder Forum and results against the full suite of key performance indicators are reported externally as part of the Industry, Science, Energy and Resources portfolio deregulation agenda.

EnvironmentWe have made a commitment to sustainable operations and the protection of our environment. We do this through compliance with Government policies and the maintenance of an Environmental Management System (EMS), designed and certified to ISO 14001:2015. Our Environmental Policy establishes objectives for environmentally sustainable operations including protecting the environment, preventing pollution and implementing a modern digital workplace with a smaller, more efficient footprint. We aim to ensure our operations meet or exceed our environmental compliance obligations and objectives.

Quality Implementing an internationally recognized best practice approach to our business is an important part of our relationship with our customers. Through our ISO 9001:2015 certified Quality Management System (QMS) we identify and address process and practice improvements within our IP Rights Division in a systematic way to continue building the overall capability and efficiency of our people and organisation.

As part of our commitment to continuous improvement, we are implementing a new Quality Review Framework and continuing our multi-year “Examination Excellence” initiatives, driving a strong customer focus and improvements to the quality of our work, while maintaining our productivity.

Cost recovery IP Australia is a cost recovered agency with fees set under IP rights legislation in accordance with the Australian Government Charging Framework and Cost Recovery Guidelines. With the exception of an annual appropriation of $0.4 million to cover ministerial services, all of our costs are covered by revenue generated through customer fees.

Further information on the breakdown of expenditure associated with each IP right can be found in our Cost Recovery Implementation Statement (CRIS).

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Demand forecastEach year, we forecast the demand for our services across a four-year period (demand forecast) based on historical application trends. The demand forecast is used to determine the required workforce profile and capacity needed to meet our Customer Service Charter commitments. This process supports planning and management in our workforce modelling, efficiencies in our cost recovery framework, and transparency in our internal and external reporting.

We have experienced small growth in demand for patents over the past two financial years and a reduction in the demand for trade marks. It is expected that demand for all IP rights will fall in 2020-21 due to the economic impacts of the COVID-19 pandemic. In conjunction with the expected drop in demand, we are focused on finalising important ICT initiatives which will improve our efficiency and better enable our ability to meet service commitments.

2019-20 2020-21 2021-22 2022-23 2023-24

ESTIMATED ACTUAL

PBS FORWARD YEAR 1

FORWARD YEAR 2

FORWARD YEAR 3

APPLICATIONS RECEIVED

Patents 31,247 28,048 25,965 28,996 29,302

Plant breeder's rights (PBR) 290 275 300 325 350

Patent Cooperation Treaty (PCT) 2,827 2,544 2,415 2,603 2,634

Trade marks (TM)1 73,072 63,863 65,741 68,141 70,380

Designs 7,488 7,123 7,301 7,479 7,610

REGISTRATION SERVICE

Trans-Tasman IP Attorneys Board 1,379 1,363 1,363 1,363 1,363

1. Production forecast for trade mark applications is based on filings (previously measured in classes).

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CapabilityPlanning and reporting frameworkThis Corporate Plan is our primary planning document and outlines the initiatives we will progress over the next four years to ensure Australians benefit from great ideas. Our Strategic Roadmap provides a high-level overview of the agency’s strategic direction towards 2030. Together these documents inform our long-term investment and decision making. The 2020-21 Corporate Plan covers the remainder of Horizon one (Invest and Innovate) and the first two years of Horizon two (Develop and Deliver). Internally, our business is reflected in Group Operational Plans. Regular monitoring and reporting is undertaken as part of our internal governance structure, with a clear line of sight to our external reporting and Annual Performance Statement.

A crucial part of our performance framework is our Customer Service Charter. In line with stakeholder feedback, our new Charter, published on 1 July 2020, has been vastly streamlined and simplified, outlining nine key commitments to our customers. Our new service commitments fall under three key themes; Doing Business with us (overall satisfaction), Quality and Timeliness. Five commitments will be measured by customer ratings through the annual Customer Satisfaction Survey while a further four commitments will measure timeliness against a range of our IP rights. As part of our commitment to continuously improve our services, we will review our targets on an annual basis. Internal monitoring against the charter is provided to business groups and external reporting made available annually on our website. Our business and resource planning cycles operate on a financial year basis.

People StrategyOur People Strategy articulates the key areas IP Australia will continue focusing on to develop and leverage the capability of our people, and achieve a contemporary and adaptable organisation:

The People Strategy provides a high-level direction for building the capability of our people and works alongside our Strategic Workforce Plan. These combined plans provide the evidence to inform our approach to meeting our future workforce needs and how we can best leverage the capability, motivation and engagement of our current workforce. Specifically, in 2020-21, IP Australia will focus on:

• enhancing organisational capacity for people management during the transition to an agile workplace.

• continuous improvement of IP Australia’s employee value proposition so that we are well-positioned to meetcurrent and future organisational demands, particularly STEM roles.

• implementing a structured approach to capability development and succession planning to identify, understandand feed our talent pipeline.

• developing workforce solutions underpinned by evidence-based decision making and workforce intelligencedata.

• supporting and promoting employee safety and wellbeing, diversity and inclusion, and development of workforceresilience.

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International Engagement StrategyOur International Engagement Strategy provides a long-term vision for our international policy and engagement. The strategy focuses our forward investment and aims to position IP Australia to respond dynamically to opportunities as they arise in the international environment.

In 2020-21, international policy engagement will continue to focus on three key issues:

1. Support for Australian Exporters – Researching the IP protection and enforcement challenges facing Australianexporters to tailor information and support for IP rights holders.

2. Regional Cooperation – Working with regional partners to improve examination of IP rights and access to theglobal services for protecting IP across borders, particularly the Madrid System for the international registration oftrade marks.

3. International Data Offerings – Further developing our collection of international trade mark data in partnershipwith IP Offices and international organisations to provide an improved dataset for analysis, economic and policyinsights.

Building and strengthening the multilateral system in the interests of Australian IP rights holders and users will continue to be an overarching international policy engagement priority.

IT Strategy 2022Our IT Strategy 2022 aligns the agency’s technology direction with our Corporate Plan and supports the delivery of our 2030 Strategic Roadmap. It guides our prioritisation of technology initiatives and promotes innovation and utilisation of new digital capabilities to increase the speed of delivery.

The IT Strategy 2022 has been developed to ensure our technology meets the needs and expectations of our workforce, our customers and our broader stakeholder groups. Our IT Strategy will:

• Modernise the administration of IP rights - supporting efficiency, reliability and high quality.

• Simplify, secure and stabilise our IT foundations.

• Enable us to be a Government leader in the provision of digital services.

• Transition our agency to business centric delivery.

• Empower the agency and broader stakeholders through the utilisation and sharing of our information.

• Build the capability that enables us to research, develop and embed smart systems to improve the way we dobusiness.

Our IT Strategy is reviewed annually in the light of evolving business needs and technological advancements. Each review will include an environmental scan of emerging business needs, architectural directions, relevant industry innovations and Whole of Australian Government policy directions.

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Capital Investment StrategyWe apply a strategic approach to the investment, development and delivery of new and improved technology to support the achievement of the organisation’s outcome for Government.

We have reached a peak in our investment cycle, completing key investment in the refurbishment of our leased office space and the continuation of the modernisation of our ICT systems. As a result of the projected financial impacts of the COVID-19 pandemic, we have reduced our capital investment budget in 2020-21 and are focusing on critical activities that transform service delivery for the benefit of our customers, reinforce the agency’s strong security culture and consolidate work on our IP data platform.

Over the coming decade as our existing assets depreciate and the immediate impacts of the COVID-19 pandemic diminish, we are likely to build our cash reserves towards the next peak in the investment cycle (approaching 2030). It is possible that changes in investment trends (for example, towards software as a service ) could disrupt this cycle and we will adjust the capital and operating cost plans to reflect this as required. Key areas of capital investment over the reporting period include:

1. Improvements to our patents administration systems.

2. Uplifting the agency’s cyber-security stance.

3. Continued development and enhancement of data analytics capabilities.

4. Supporting the IT Strategy 2022.

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Risk oversight and managementOverviewAt IP Australia we look at risk and its management from two perspectives; one that considers events that may have a negative impact on our business (i.e. threats), and one that considers embracing some level of risk as an opportunity.

Under the Public Governance, Performance and Accountability Act 2013 the Director General has overall responsibility for ensuring an appropriate risk management framework is in place and managing our risk performance.

IP Australia’s risk management framework comprises:

• Accountable Authority Instructions—sets out instructions from the Director General regarding managing riskwithin IP Australia.

• Risk Management Policy—defines IP Australia’s approach to the management of risk.

• Risk Management Plan 2019–21—outlines roles and responsibilities, mechanisms for reporting andcommunication, and a schedule of ongoing activities designed to maintain effective risk management practices.

• Risk Management Guidelines—provides guidance for staff to support day-to-day implementation of the riskmanagement framework.

IP Australia’s Executive Board is responsible for overseeing implementation of the risk management framework, with all staff responsible for the day-to-day management of risk. The Executive Board reviews strategic risks on a quarterly basis, discussing and monitoring risks that could emerge over the period of the plan. IP Australia’s Audit Committee also provides the Director General with independent advice and assurance as to the appropriateness of IP Australia’s system of risk oversight and management in accordance with the Public Governance, Performance and Accountability Rule 2014.

As part of IP Australia’s ongoing efforts to raise its level of risk maturity, the risk management framework will be subject to review during 2020–21. The intention of the review is to further embed risk management understanding and practice into the operations of IP Australia. Any enhancements to the framework are expected to be implemented from 2021–22.

Risk appetite IP Australia’s risk appetite involves effectively managing uncertainty, not only avoiding or eliminating risk. A higher risk appetite allows us to consider opportunities that involve the acceptance of some risk. Accordingly, IP Australia is prepared to pursue, retain or accept risk that has been well considered, thoroughly assessed and is managed and monitored appropriately. This is done in an open and transparent manner to reduce threats and seize opportunities for the benefit of the organisation.

Strategic risksIP Australia faces a broad range of risks reflecting its responsibilities as an administrator and service provider for Australia’s IP rights system. The following categories of strategic risk are used by the Executive Board to measure and monitor threats and opportunities that may impact the achievement of IP Australia’s strategic objectives and purpose.

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RISK CATEGORY RISK DEFINITION RISK RESPONSE

IP ecosystem IP Australia is committed to ensuring public trust in the IP ecosystem so we can continue to deliver a system that adds value to the Australian community, achieves government objectives relating to jobs and growth, and keeps the system safe from abuse.

We have established processes for the identification and prioritisation of policy issues to ensure the IP legislative framework keeps pace with what we are doing, and what is happening within the broader IP ecosystem, including through our International Engagement Strategy.

Confidence IP Australia is committed to carrying out our responsibilities as an administrator and service provider for Australia’s IP rights system, as well as maintaining a reputation as an agency that delivers high quality IP rights.

We measure ourselves annually against our Customer Service Charter commitments.

This is supported by an established IP Rights Quality Framework, and maintenance of an ISO-certified Quality Management System.

Stakeholder engagement

IP Australia must engage effectively with customers and stakeholders, domestically and internationally. Our approach is to focus on collaboration and engagement with stakeholders to improve effectiveness, performance, meet established quality standards and expand our sphere of influence.

An overarching Stakeholder Engagement Strategy is under development to improve our engagement with stakeholders and explore new opportunities.

Governance IP Australia is responsible for meeting and administering its legislative responsibilities, fulfilling the Commonwealth’s policy agenda, adhering to its Accountable Authority Instructions, and maintaining relevant certifications.

We have established frameworks, and underpinning policies and procedures, to govern IP Australia in accordance with our legislative obligations. The Executive Board has responsibility for overseeing implementation, and we make use of our annual internal audit program to provide independent advice and assurance.

Financial IP Australia’s mandate as an agency is cost recovery rather than profit. We take a strategic approach to investment to ensure our long-term sustainability and build our capacity to adapt to the changing needs of our customers and other stakeholders.

We completed a review of our fees in 2019-20 in accordance with the Australian Government Charging Framework and new fees will come into effect from 1 October 2020.

Workforce IP Australia must make effective use of its skills and knowledge to deliver value to the Australian community, at home and abroad. To successfully compete in the contest for talent we aim to be an employer of choice, at the forefront of flexible working solutions.

We have established a Strategic Workforce Plan and People Strategy to inform leveraging our existing workforce and determining how we can meet future workforce needs.

Operations IP Australia is committed to meeting customer expectations and delivering on our core business for high quality and timely IP rights administration and registration, data and education, and advice and support to government in achieving jobs and growth.

Our annual operational planning processes identify and prioritise IP Australia’s key activities, resourcing, and risks. Delivery against these plans is monitored by the Executive Board.

© Commonwealth of Australia 2020

ipaustralia.gov.au

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