Financial Performance
For managing its finance in the reported period, the Eurasian Patent Organization relied on the Eurasian Patent Convention, the Financial Regulations under the Eurasian Patent Convention and the effective law of the host country of EAPO's headquarters. The EAPO managed its finance as budgeted and approved by the EAPO Administrative Council for the 2018 corporate expenditure.
The year 2018 saw an increase in the total number of Eurasian applications filed. This had a healthy effect on Eurasian Patent Organization’s income, which grew by 6 per cent, with no account taken of positive exchange rate, compared to 2017.
The overall growth of the budget revenue was largely prompted by significant change in the exchange rate by the end of 2018, as well as by the structure of placement of the Organization’s financial resources.
Diagram 1 shows EAPO revenue structure in 2018
EAPO revenue structure in 2018
Earnings from fees for maintaining the Eurasian patents in force in the territory of the Eurasian Patent Convention Contracting States and the Republic of Moldova saw healthy growth in 2018. The landmark was a 10 per cent increase over 2017 in terms of maintenance fees paid and accounted for with regard to total patents in the reported period as against the preceding year.
The table below shows growth details of fees paid for maintaining the Eurasian patents in force over the last five years.
Fees for maintaining Eurasian patents in force, millions of roubles
Diagram 3 shows the ratio of each Eurasian Patent Convention Contracting State and the Republic of Moldova as fees for the maintenance of the Eurasian patents in force in the aggregated earnings in 2018.
The ratio of each Eurasian Patent Convention Member State and the Republic of Moldova as fees for the maintenance of the Eurasian patents in force in the aggregated earnings for 2018.
Following the Procedure for Building and Disbursing the Eurasian Patent Organization Reserve Fund, EAPO made budgeted statutory deductions at the end of 2018. The Reserve Fund is meant to sustain the functionality of the EAPO, should the Organization experience an unforeseen budget deficit.
By meeting the revenue target in the reported year, the Organization was able to fully finance expenditure as budgeted, while supporting sustainable operations.