Law on Patent was adopted initially in 1993 to facilitate the legalization of the ownership rights of the industrial design, the patent, the utility models and the certificate holders; to regulate relations arising out of their use; and to facilitate them into economic circulation. The Law on Patent was amended in 1996, 1999 and revised in 2006 in connection with social and economic reform.

With the development of technological developments, innovation of Industrial designs, utility model and patent and their scope of applications are growing rapidly.

Thus, innovators and entrepreneurs are keen to produce value-added products, as well as to focus on foreign markets and business development.

In Mongolia, the number of patent applications is steadily increasing, with 70% of 1555 applications filed for patent the last 6 years (2010-2016), 94% of 1817 applications for industrial designs, and 80% of 1065 applications for utility models have been issued.

Patents grant with exclusive rights in the territory. In Mongolia, 16 patents were filed under Patent Cooperation Agreement in 2008-2016

However, in practice, the enforcement of laws is inadequate due to failure of regulations that need to be regulated by law, conflicting regulations, as well as renewing needs to meet with international treaties in which Mongolia ratified.

In other words, there is only one standard regulated by laws regardless the difference between the 3 objects of the invention, the industrial design and the utility model, regulation in connection with the filing and examination process is not appropriate in practice, as well as the use of a compulsory license of the patent that violates the rights of the owners. In addition, there is no financial support, tax and fee discount policy that supports creators, and the process of international application relating to the patent regulated by laws do not meet the standards and requirements of international agreements ratified by Mongolia.

Guidelines for improvement Mongolian legislations until 2020 states that the Patent Law is aimed at improving the protection of patents based on global trends and agreements with World Intellectual Property Organization based on the views of the World Intellectual Property Organization.

In addition, the Government’s Action Plan for the 2016-2020 was obliged to the Ministry of Justice and Home Affairs in order to draft a law on amendments to the Patent Law to submit to the State Great Hural.

As a member of the World Intellectual Property Organization, Mongolia obliges to comply with the fundamental principles set forth in international treaties and conventions which ratified.

Law on Patent expects to be amended based on abovementioned requirements.