National Intellectual Property Institute wins contest with FGV’s support

The National Intellectual Property Institute (INPI) won the first Innovation in Public Sector Costs Contest with the support of a study carried out by FGV Projetos. This contest was launched in 2022 by the Economy Ministry’s National Treasury Secretariat.

The winning study, titled “Calculating the Cost of Services Provided by INPI Using the TD-ABC Method,” was supported by Fundação Getulio Vargas, through FGV Projetos, which suggested, adjusted and applied the methodology used.

INPI sought to determine, in detail, the costs of its processes, activities and services, in order to allow it to determine the basis for pricing the services provided by the institute. INPI is responsible for regulating intellectual property in Brazil, performing services such as the registration and granting of trademarks, patents, industrial designs and technology transfer.

FGV’s technical team, made up of professors Edilene Santos and Antonieta Oliveira from the Sao Paulo School of Business Administration (FGV EAESP), diagnosed the situation and proposed the use of Time-Driven Activity-Based Costing (TD-ABC), a cutting-edge costing tool. In addition, FGV specialists collected the data required to implement this model, together with the INPI team. They also simulated its application and provided guidance on future use.

The TD-ABC model has the potential to help INPI price its services in line with the costs incurred, and it may also be a useful tool for managing processes and planning the organization’s resources. INPI is the world’s first intellectual property office to implement this model, making it a pioneer in this area.

Manoel Reis, a professor at FGV and the coordinator of this project, says, “This is great recognition of the quality of services provided by FGV Projetos. This work may also be used as a reference for the development of similar initiatives in other government bodies or agencies, third sector organizations or labor-intensive companies that carry out complex activities.”

INPI’s acting president, Júlio César Castelo Branco Reis Moreira, points out that the study was aligned with the National Quality Foundation’s Excellence in Management Model, which is one of the drivers of INPI’s 2023-2026 Strategic Plan. “Back in 2016, we started to improve the way we calculate costs at INPI, using our own methodology, and we have now taken another step with the support of FGV, thereby enhancing our management, control and above all transparency in setting the prices we charge,” he explains.

“Government agencies that charge fees, such as INPI, need to have an effective way of measuring their costs. This will enable us to set our prices efficiently, discouraging or encouraging different actions in the area of intellectual property in Brazil,” he adds.