Industrial property taxes are paid by legal entities and natural persons to have their industrial property, inventions, trademarks, industrial drawings and models protected. Patent owners that fail to pay industrial property taxes may lose protection.

The level of the tax may be updated annually, through a Government decision, considering inflation and the exchange rates valid on November 1. The Government decision takes effect on January 1.

On January 1, 2011, industrial property taxes should have been updated using an exchange rate of 4.3 lei to the euro, and not of RON3.6 to the euro, which would have translated into a 20% increase.

The Government decided through an emergency ordinance approved on December 30, 2010 to postpone the increase by one year, until January 1, 2012, as the measure would have reduced the number of protection requests.

Gabor Varga, general manager of the State Office for Inventions and Trademarks (OSIM), told MEDIAFAX Thursday he proposed that the measure be postponed again, adding he did not receive authorization from the ministries of Economy and Finance in time.

The Government may not issue an emergency ordinance during the parliamentary recess to postpone the increase. Considering this situation, industrial property taxes will be 20% higher at least until the end of January, when the Parliament resumes work and a decision may be taken.

OSIM drafted an emergency ordinance to postpone the tax increase by two more years, until January 1, 2014.

OSIM officials said the draft emergency ordinance was sent to the two ministries for approval in mid-November. The document was put up for public debate on December 29, while the last 2011 Government meeting took place on December 27.