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The EUROPEAN PATENT SYSTEM AND ITS FUTURE PROSPECT

The EUROPEAN PATENT SYSTEM AND ITS FUTURE PROSPECT. Ar ū nas Ž elvys , Lithuanian Patent Office. Summary. European patent system Problems of the system Possibile solutions. STATUS QUO . Several Layers of Protection. European patents

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The EUROPEAN PATENT SYSTEM AND ITS FUTURE PROSPECT

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  1. The EUROPEAN PATENT SYSTEM AND ITS FUTURE PROSPECT ArūnasŽelvys, Lithuanian Patent Office

  2. Summary • European patent system • Problems of the system • Possibile solutions

  3. STATUS QUO

  4. Several Layers of Protection • European patents • National patents (granted on national and PCT applications) • In some countries – “small” patents, or utility models

  5. European Patents • European Patent Convention • 38 Member States • Unitary patent grant procedure and opposition • Nonunitary: • Validation(translations) • Enforcement(jurisdictions)

  6. European Patent Validation • Validating European patent means translating patent and paying the state fee • Validation in EPC states is different: • London Agreement has reduced translations costs. • However, London Agreement is not valid in 22 EPC states now. Majority of them require translations both of description and claims • For rest of the EPC states only translation of claims is enough or no translations at all

  7. Costs of Translations • Validation costs can amount to 40% of the overall costs of patenting in Europe • A European patent validated in 13 countries costs as much as 20 000 EUR, of which nearly 14 000 EUR arises from translations alone. • European patent more than 10 times more expensive than a US patent costing about 1 850 EUR • 85 EUR per translated page (average).Typical length 20 pages. • Official fees vary from 25 to 400 EUR.

  8. European Patent Enforcement • Enforcement is different: • Legal dispute means dispute only in that country • Who can afford to litigate in 38 EPC member states? • Speed of the case is particularly different • Assessment of evidence and other rules of proceedingsare different • The decisions may also be different!

  9. Costs of Enforcement • Between 146 and 311 infringement cases are being duplicated in the Member States. By 2013, this number is likely to increase to between 202 and 431 cases. • Total private savings from having access to a unified Patent Court in 2013 would span the interval between EUR 148 and 289 million.

  10. Costs of the Enforcement • Multiple litigation in UK, NE, DE, FR costs vary from €310,000 before up to €3.6 million when accounting for the cost of appeal at second instance.

  11. National Patents • Every European state has its own patent system. Substantial principles of patent systems are almost the same. • Some states have substantial patent expertize, some preliminary expertize • Only some aspecs are unitary within the EU: botech patents, supplementary protection certificates for medicinal and plant protection products, rules on enforcement (not the enforcement institutions) • In principle, non unitary: • Procedure up to grant • Enforcement

  12. National Utility Models • “Small patents” with softer patentabilty criteria • Only some states have utility models systems • But all of them have their patent systems

  13. No Unitary Patent • Europe has no unitary patent at all • This is NOT OK for businesses....

  14. System is Fragmented • In other words, system is fragmented • Fragmentation is expensive • Not only for bussinesses, but for states as well • ...and creates legal uncertainty

  15. Directions to Go • Doing nothing is not the best option • Europe has pleny of competitors in the world that are doing their bussiness much and much better

  16. SOLUTIONS TO BE MADE

  17. Something Unitary is Necessary • Unitary patent system for Europe? • Unitary procedure up to grant – already exists • Unitary validation- none • Unitary enforcement- none • EU patent and unified litigation system - sounds good, but very hard to archieve • Initiative burns and rebornes periodically

  18. EU patent • A patent which covers all the EU – 27 member states. Similar to Community trademarks of Community designs • The same European patent, which is extended to the teritory of the EU • In principle, should be unitary in granting procedure, validation and enforcement stages

  19. Unitary litigation system • One litigation system for EU and European patents • First Instance, Appeal Instance Court and Registry • First Instance Court – central, local and regional divisions • Significant only if it is enacted altogether with EU patent

  20. Unitary patent • There is no consent on the EU patent mainly because of different opinions on patent translations. • Why? Are there any reasonable solutions? • Unitary litigation system – complex, but plausible.

  21. Benefits for Businesses of Turkey • In case unitary patent system revives... • EU territory may be covered by unitary EU patent • European patent may still be validated in any EPC country • Unitary litigation system for both EU and European patents • Global competitiveness is increased

  22. Thank you! ArūnasŽelvys Head of Law and International Affairs Division Arunas.Zelvys@vpb.gov.lt The State Patent Bureau of the Republic of Lithuania www.vpb.gov.lt Ankara, Turkey 2011-01-26

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