BUDGET STRUCTURE

The financial activity of the Eurasian Patent Organization is closely related to the work of the Eurasian Patent Office and the decisions passed by the Administrative Council of the Eurasian Patent Organization. This follows from the requirements of Article 5 of the Eurasian Patent Convention, which emphasizes the self-financing nature of the Organization, and that all of its expenses are covered by the proceeds of activity stipulated in the Eurasian Patent Convention. At the same time the Eurasian Patent Convention member states are not obliged to make financial contributions to the registered capital or any other funds of the Organization.

Diagram 1

During the period that started in 1995, the budget of the Organization was financed from the following sources:

• fees for filing Eurasian applications for inventions;
• fees for substantive examination;
• fees for the grants of Eurasian patents;
• fees for the maintenance of Eurasian patents;
• revenues for publishing activity;
• other revenues that include:
• registration, certification, and re-certification of Eurasian patent attorneys;
• maintenance of deposit accounts of Eurasian patent attorneys;
• fees for paid services performed by the European Patent Office;
• advance payments, credits, rents etc. from the Eurasian Patent Convention member states;
• gifts and subsidies from other organizations.

The revenue part of the budget has stabilized in 1998-1999, which is confirmed by the main sources of income of EAPO, presented in Diagram 1.

The Organization's expenses during the elapsed period were made proportionally to the revenues from the sources listed above, and were regulated by the articles of applicable budgets. The structure of EAPO expenditure and its changes are shown in Diagram 2.

The Organization's activity, regulated by the requirements of the Eurasian Patent Convention, is not commercial because its goal is not the making of profit, which follows from Article 5 (3) of the Eurasian Patent Convention, which requires that the excess of income over expenditure be directed at the development of the Eurasian Patent Office.

During the last few years EAPO was able to considerably improve its facilities: the office space has expanded, which allowed considerable improvements to workplace layout and social protection for EAPO employees.

The creation of an economic and social base allows the pursuit of the Organization's objectives according to the principles that constitute the core of the Eurasian Patent Convention, and gives reasons to look ahead to the fifth year in the life of the Eurasian Patent Organization with optimism.