IP Australia, the government agency for intellectual property and patents, will act as an international search and examination authority for patents filed with the US Patent and Trademark Office (USPTO).

Applicants to the USPTO can now choose IP Australia to undertake their initial search and examination, the agency announced today.

It already acts as an international search and examination authority for 17 countries, including New Zealand, Korea, Singapore, India and Malaysia.

"This is a significant development for IP Australia," the authority's director general, Philip Noonan, said.

"The agreement is also good news for Australian inventors who may wish to seek patent protection in the US as it will smooth the transition between US and Australian standards in the areas of search and examination."

The agreement followed the conclusion of a pilot program between IP Australia and the USPTO focusing on search and examination of applications under the Patent Co-operation Treaty (PCT).

This pilot program has now been cancelled due to budget constraints, the agency said.