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PDF, PCT Yearly Review - WIPO

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43<br />

B.10 Efficiency<br />

The IB’s productivity in processing <strong>PCT</strong> applications can be measured by unit cost of processing, defined as<br />

the average total cost of publishing a <strong>PCT</strong> application. Average total cost is determined by total <strong>PCT</strong><br />

expenditure, plus a certain share of expenditure on support and management activities. 20 The unit cost thus<br />

includes the cost of all <strong>PCT</strong> activities – including translation, communication, management and others. 21<br />

In computing unit cost, the production cost consists of two parts: direct and indirect costs. Direct costs<br />

correspond to the expenditure incurred by the IB (for administration of the <strong>PCT</strong> system and related<br />

programs). Indirect costs include expenditure for supporting units (e.g., building, information technology<br />

among others). Indirect costs are weighted to take into account only the share attributable to the <strong>PCT</strong><br />

system. The cost of storing published applications is added to unit cost since the <strong>PCT</strong> system must store<br />

applications for 30 years.<br />

Formally, unit cost is defined as:<br />

Total cost of production<br />

Unit cost =<br />

+ Cost of storage<br />

Number of publications<br />

Figure B.10 depicts the evolution of the unit cost of processing from 2004 to 2010, including a breakdown<br />

of the contribution of direct and indirect costs.<br />

Figure B.10: Unit cost of processing a published <strong>PCT</strong> application<br />

1,200<br />

Direct Costs<br />

Indirect Costs<br />

Total Processing Cost (CHF)<br />

1,042 934 833 836 782 826 756<br />

Cost of Processing (CHF)<br />

1,000<br />

800<br />

600<br />

400<br />

393<br />

649<br />

351<br />

583<br />

295<br />

538<br />

302<br />

531<br />

271<br />

509<br />

282<br />

541<br />

220<br />

536<br />

200<br />

0<br />

2004 2005 2006 2007 2008 2009 2010<br />

Processing Year<br />

Source: <strong>WIPO</strong> Statistics Database<br />

> Although the number of <strong>PCT</strong> applications published was 2% lower in 2010 than in 2009, cost reductions<br />

in 2010 were such that the unit cost per application was reduced by 8% to reach 756 CHF. The<br />

main causes of this decrease are reductions in the indirect costs associated with the processing of applications<br />

and staff reductions within <strong>WIPO</strong>.<br />

20<br />

The complete methodology is available at www.wipo.int/edocs/mdocs/govbody/en/a_42/a_42_10-annex3.pdf.<br />

21<br />

As of January 2010, the number of <strong>PCT</strong> applications published is determined based on actual publication date instead of the year indicated<br />

in the publication number. As a consequence, processing costs have slightly changed compared to previous editions of the <strong>PCT</strong> <strong>Yearly</strong> <strong>Review</strong>.

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