EU patent package: unitary patent and Unified Patent Court. Lawyer, International Legal Affairs, PCT
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1 EU patent package: unitary patent and Unified Patent Court Lawyer, International Legal Affairs, PCT Stefan Luginbuehl Munich
2 Today's European patent system Since 1977, successful centralised European patent granting procedure at the EPO Shortcomings in the post-grant phase sub-optimal enforcement scheme implying parallel litigation with high costs, risk of diverging decisions and legal uncertainty high costs for patent proprietors due to validation requirements and renewal fees in each Member State The European Union's patent package 1. Unitary patent (protection) 2. Unified Patent Court 2
3 From Community patent to unitary patent 14 December 2010: Commission presents proposal for a Council Decision authorising enhanced cooperation 10 March 2011: Competitiveness Council adopts decision authorising enhanced cooperation among 25 participating Member States (all EU states with the exception of ES, [HR] and IT) 13 April 2011: Commission presents proposals for 2 Regulations Regulation creating unitary patent protection Regulation on translation arrangements 17 December 2012: Regulations are formally adopted and signed 3
4 From Community patent to unitary patent 20 January 2013: Entry into force of the Regulations Regulation (EU) No. 1257/2012 of 17 December 2012 implementing enhanced cooperation in the area of the creation of unitary patent protection Regulation (EU) No. 1260/2012 of 17 December 2012 implementing enhanced cooperation in the area of the creation of unitary patent protection with regard to the applicable translation arrangements for the 25 participating Member States 4
5 From Community patent to unitary patent IT joined enhanced cooperation on unitary patent protection in early October 2015 Regulations are applicable at the date of the entry into force of the Agreement on a Unified Patent Court (UPC Agreement) 5
6 Regulations on unitary patent protection The UPC Agreement was signed on 19 February 2013 by 25 EU Member States (not by ES, HR and PL, but by IT) It will enter into force after the deposit of the 13th instrument of ratification or accession, including FR, DE and UK So far, eight states have deposited their instruments of ratification AT: 7 August 2013, FR: 14 March 2014, SE: 5 June 2014, BE: 6 June 2014, DK: 20 June 2014, MT: 9 December 2014, LU: 22 May 2015, PT: 28 August 2015 Several states have indicated their intention to ratify in
7 The unitary patent: concept The unitary patent is a "European patent with unitary effect" The unitary patent has unitary character throughout the territories of the 26 participating states A European patent will benefit from unitary effect at the request of the patentee Single EPC procedure for European and "unitary patents Application and examination procedure will remain unchanged 7
8 The unitary patent: concept The unitary patent will co-exist with national patents and with classical European patents Various combinations of classical European patent and unitary patent a unitary patent for the 26 participating EU Member States (pms) together with a classical European patent taking effect in one or more EPC Contracting States, such as for instance NO, ES, IT, CH, TR No double protection by a unitary patent and a classical European patent on the territory of the 26 pms. Double protection by unitary patent and national patent open Effect: unitary patent takes effect retroactively in the pms as from the date of publication of the mention of the grant of the European patent 8
9 Regulation on unitary patent protection Appeal proceedings European patent application Refusal or withdrawal of application Limitation Revocation Opposition proceedings Filing and formalities examination Search report with preliminary opinion on patentability Substantive examination Grant of European patent Request of the patent proprietor European patent with unitary effect in the territories of the 26 participating Member States Same grant procedure as for a traditional European patent The European patent is deemed not to have taken effect as a national patent in the 26 participating Member States 9
10 The unitary patent: Translation arrangements Basic concept Builds on EPO language regime (Article 14(6) EPC) No further translations required after transitional period, unless a legal dispute arises Reliance on high-quality machine translations for both applications and specifications to be available for free in all EU official languages for information only (no legal effect) 10
11 The unitary patent: The Select Committee A Select Committee of the Administrative Council Representatives of the 26 participating Member States, as well as the European Commission, epi, BusinessEurope and EPC Contracting States that do not participate in the enhanced cooperation scheme - such as eg Norway or Switzerland - as observers Principle tasks in relation to the implementation of the unitary patent into the European patent system: Adoption of the implementing rules relating to unitary patent protection Setting of level of renewal fees and share of distribution of renewal fees Up to date 15 meetings of the committee 11
12 The unitary patent: Implementing Rules Define inter alia in detail the registration of unitary effect and the tasks of the EPO related to it the tasks and competences of the Select Commitee, the EPO President, as well as the entries in the Register for unitary patent protection Consolidated version of the Implementing Rules were adopted in principle by the Select Comittee on 9 December
13 Registration of unitary effect Substantive requirements Unitary effect can only be requested for European patents that were granted with the same set of claims in respect of all 26 participating Member States 13
14 Registration of unitary effect Formal requirements Patent proprietor has to file the request for unitary patent protection with the EPO no later than one month after the mention of the grant is published The request has to be filed in writing in the language of proceedings and must include the name of the requester, number of the European patent to which unitary effect shall be attributed, information regarding the representative, etc. a translation during the transitional period: full EN translation if the patent is granted in FR or DE full translation into any language of the EU if the patent is granted in EN 14
15 Registration of unitary effect The EPO registers the unitary effect in the Register for unitary patent protection and informs the requester if the substantive and formal requirements are met The EPO rejects the request if the substantive requirements are not met or if the request is not filed in due time In the latter case, a request for restitutio in integrum may be filed within two months after expiration of one month period 15
16 The unitary patent: Registration of unitary effect The EPO invites the requester to correct the deficiencies within a nonextendable period of one month if the request is filed in due time but at least one of the formal requirements is not met The request is rejected if the deficiency is not corrected within the set period Requester can file an appeal with the UPC against the decisions of the EPO Special procedure before the UPC (Rule 97 draft UPC RoP): Application to annul EPO decision to refuse a request for unitary effect to be lodged within 3 weeks of service of EPO decision standing judge to decide within 3 weeks Appeal against latter decision possible; also to be decided within 3 weeks by standing judge of UPC Court of Appeal 16
17 The unitary patent: Renewal fees Single renewal fee for the unitary patent to be paid to the EPO: EPO retains 50% remaining amount distributed in accordance with Article 146 EPC and the key defining the participating Member States share To fix the level of the renewal fees and the distribution key is highly complex A very delicate balance needs to be achieved between the need to fix the fee at a level which makes the Unitary Patent attractive for users and the need to achieve a balanced budget for the EPO and to generate appropriate income for national offices 17
18 The unitary patent: Renewal fees The EPO submitted two proposals for renewal fee levels in March These proposals were adjusted after discussions with users and participating Member States June 2015: Select Committee takes a preliminary decision on the EPO's True TOP 4 proposal for renewal fees for European patents with unitary effect This proposal provides fee levels corresponding to the equivalent of the renewal fees which have to be paid for the four countries out of the 25 participating Member States in which European patents are currently most often validated (DE, FR, GB, NL) Discussions in the Select Committee will now focus on the Rules relating to Fees and the distribution key determining the share of distribution of the renewal fees among the participating Member States 18
19 Renewal fees: the adopted True Top 4 approach Business-friendly fee pattern 19
20 UPC Agreement : Court structure Court of Justice of the EU Requests for preliminary rulings Court of appeal Luxembourg Local Divisions Central division Paris (general) London (pharmaceuticals) Munich (engineering) Court of First Instance Regional Divisions 20
21 UPC Locations Local/regional division(s) Brussels, Copenhagen, Dublin, Dusseldorf, Hamburg, Helsinki, Lisbon, London, Mannheim, Milan, Munich, Paris, Stockholm, The Hague, Vienna Central division Paris, London, Munich Court of Appeal Luxembourg Patent mediation and arbitration centres Lisbon, Ljubljana Judicial Training Centre Budapest 21
22 Jurisdiction of the UPC as regards the subject-matter (Art. 32 UPC Agreement) Exclusive jurisdiction inter alia in respect of actions for actual or threatened infringement of classic European and unitary patents and SPCs and related defences, including counterclaims concerning licences, declarations of non-infringement of classic European and unitary patents, revocation of classic European and unitary patents by direct attack by counter-claim declaration of invalidity of SPCs injunctions 22
23 Jurisdiction of the UPC as regards the subject-matter (Art. 32 UPC Agreement) Exclusive jurisdiction inter alia in respect of actions for provisional and protective measures for damages or compensation related to the decisions of the EPO in carrying out the additional tasks concerning the unitary patent 23
24 Jurisdiction of national courts (Art. 32(2) and Art. 83 UPC Agreement) National courts All actions relating to European patents and unitary patents which do not come within the exclusive jurisdiction of the UPC, such as actions related to the right to a patent, or actions related to the transfer of a patent right Parallel jurisdiction with UPC concerning disputes related to classic European patent during transitional period of at least 7 years Opt-out possibility 24
25 The Preparatory Committee Five working parties: legal finance facilities IT human ressources 25
26 The Preparatory Committee Up to date the committee held 11 meetings Contents of discussions inter alia: Budgetary rules Fee structure Legal aid Contributions of signatory states Rules on the European Patent Litigation Certificate (EPLC) Rules related to the mediation and arbitration proceedings Training of candidate judges Rules of proceedings of the UPC different committees Protocol on provisional application of the UPC Agreement 26
27 Preparatory Committee: Major steps November 2014: Public hearing concerning the 17th draft of the UPC Rules of procedure February 2015: Start of the training of candidate judges with the support of the EPO May 2015: Consultation on Rules on Court fees and recoverable costs September 2015: Agreement on the draft proposal for rules on the European Patent Litigation Certificate (EPLC) 1 October 2015: Protocol on provisional application of the UPC Agreement signed in Brussels 27
28 Thank you for your attention Stefan Luginbuehl, PhD Lawyer, International Legal Affairs, PCT, Munich Tel Fax
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