Comparison of fees and external costs between a European Patent and a Unitary Patent. Select Committee of the Administrative Council (for information)



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SC/19/15 Orig.: en Munich, 08.05.2015 SUBJECT: SUBMITTED BY: ADDRESSEES: Comparison of fees and external costs between a European Patent and a Patent President of the European Patent Office Select Committee of the Administrative Council (for information) This document has been issued in English and electronic form only. SC/19/15 e

Comparison of the fees and external costs, between an European Patent validated in 1 to 25 countries and a Patent (based on the 2 EPO's adjusted proposals SC/18/15) The purpose of this comparison is to evaluate the total costs of an Patent versus the cost of a classic European Patent depending on the scope of protection (number of validated MS). The total costs include in both cases the renewal fees and the external costs. The cost comparison is based on data relating to the validation and maintenance of European s collected by the EPO from attorneys, validation service providers, translation service providers and payment service providers. Given the low reply rate, these data, which vary in addition from country to country, from language to language, from technical field to technical field and between different types of service providers, are not representative and only indicative. The level of the renewal fees of an Patent have been used as presented in the EPO's adjusted proposals SC/18/15 (True TOP4, True TOP5 with SME reduction). The external costs for registering the UP protection (including the furniture of a full translation of the into another EU language during a transitional period of 12 years ) and for the maintenance of a UP are speculative. As a result, the cost comparison can only result in rough estimates. These cost comparisons are presented on the basis of examples of European s validated in the most usual countries. The total cumulated costs are presented until year 10, 12, 15 or 20. These exemples do not represent the costs of an average European, as these calculations do not take into consideration the average maintenance rate of EP in each country and the average age of the at grant. However, such exemples allow to evaluate the cost comparison for different types of applicants (using attorneys or service providers, validating in a small number of countries and maintaining for a short period of 10-12 years or on the opposite validating in a large number of countries and maintaining for a longer period of 15-20 years). Assumptions : The external costs (for validation and maintenance) of an EP are estimated for a European application granted in English ( text 24 pages = description 20 pages + claims 4 pages) - during the 4th year (renewal fees 3d and 4th year paid at the EPO). European large enterprises use frequently specialised companies (validation and payment service providers). SMEs use normally a network of attorneys for validation and maintenance. Validation, translation and maintenance costs of European Patents have been indicated already in SC/16/14 page 13-19. Page 1

1.1 UP= True TOP 4 : Estimated costs in EUR, including external costs, for validation and maintenance, by a network of attorneys True TOP4 DE DE FR DE FR GB DE FR GB NL DE FR GB NL DE FR GB NL DE FR GB NL SC/18/15 SE SE BE SE BE AT 1Val: 9% grants 2Val: 16% grants 3Val: 39% grants 4Val: 13% grants 5val: 7% grants 6Val: 4% grants Val: 2,5% grants 25Val :0,4% grants Total official fees years 5-10 in 4400 1280 1990 2898 4428 5951 6641 8635 29116 Total external costs years 5-10 in 2980 640 995 1449 2999 4591 6906 9778 41728 (attorney costs: translation, validation + maintenance) Total costs till year 10 in 7380 1920 2985 4347 7427 10542 13547 18413 70844 5460 4395 3033-47 -3162-6167 -11033-63464 284% 147% 70% -1% -30% -46% -60% -90% Total official fees years 5-12 in 7635 2370 3620 5033 7663 9880 10985 14336 45013 Total external costs years 5-12 in 3627 1185 1810 2517 4617 6555 9078 12628 49677 Total costs till year 12 in 11262 3555 5430 7550 12280 16435 20063 26964 94690 7707 5832 3713-1018 -5173-8801 -15702-83428 217% 107% 49% -8% -31% -44% -58% -88% Total official fees years 5-15 in 15025 5100 7490 10026 15056 18587 20562 26732 77265 Total external costs years 5-15 in 5105 2550 3745 5013 8313 10909 13866 18826 65803 Total costs till year 15 in 20130 7650 11235 15039 23369 29496 34428 45558 143068 12480 8895 5091-3239 -9366-14298 -25428-122938 163% 79% 34% -14% -32% -42% -56% -86% Total official fees years 5-20 in 35270 13030 18530 24269 35299 41693 45948 59217 158309 Total external costs years 5-20 in 9154 6515 9265 12135 18435 22462 26559 35069 106325 Total costs till year 20 in 44424 19545 27795 36404 53734 64155 72507 94286 264634 24879 16629 8021-9310 -19731-28083 -49862-220210 127% 60% 22% -17% -31% -39% -53% -83% Page 2

1.2 UP= True TOP 4 : Estimated costs in EUR, including external costs, for validation and maintenance, by specialised validation/translation/payment service providers True TOP4 DE DE FR DE FR GB DE FR GB NL DE FR GB NL DE FR GB NL DE FR GB NL SC/18/15 SE SE BE SE BE AT 1Val: 9% grants 2Val: 16% grants 3Val: 39% grants 4Val: 13% grants 5val: 7% grants 6Val: 4% grants Val: 2,5% grants 25Val :0,4% grants Total official fees years 5-10 in 4400 1280 1990 2898 4428 5951 6641 8635 29116 Total external costs years 5-10 in 1490 240 480 720 1460 2340 3530 4840 23400 (provider costs: translation, validation + maintenance) Total costs till year 10 in 5890 1520 2470 3618 5888 8291 10171 13475 52516 4370 3420 2272 2-2401 -4281-7585 -46626 288% 138% 63% 0% -29% -42% -56% -89% Total official fees years 5-12 in 7635 2370 3620 5033 7663 9880 10985 14336 45013 Total external costs years 5-12 in 1570 320 640 960 1780 2740 4010 5400 25400 Total costs till year 12 in 9205 2690 4260 5993 9443 12620 14995 19736 70413 6515 4945 3212-238 -3415-5790 -10531-61208 242% 116% 54% -3% -27% -39% -53% -87% Total official fees years 5-15 in 15025 5100 7490 10026 15056 18587 20562 26732 77265 Total external costs years 5-15 in 1690 440 880 1320 2260 3340 4730 6240 28400 Total costs till year 15 in 16715 5540 8370 11346 17316 21927 25292 32972 105665 11175 8345 5369-601 -5212-8577 -16257-88950 202% 100% 47% -3% -24% -34% -49% -84% Total official fees years 5-20 in 35270 13030 18530 24269 35299 41693 45948 59217 158309 Total external costs years 5-20 in 1890 640 1280 1920 3060 4340 5930 7640 33400 Total costs till year 20 in 37160 13670 19810 26189 38359 46033 51878 66857 191709 23490 17350 10971-1199 -8873-14718 -29697-154549 172% 88% 42% -3% -19% -28% -44% -81% Page 3

2.1 UP= True TOP 5 : Estimated costs in EUR, including external costs, for validation and maintenance, by a network of attorneys True TOP5 DE DE FR DE FR GB DE FR GB NL DE FR GB NL DE FR GB NL DE FR GB NL SC/18/15 SE SE BE SE BE AT 1Val: 9% grants 2Val: 16% grants 3Val: 39% grants 4Val: 13% grants 5val: 7% grants 6Val: 4% grants Val: 2,5% grants 25Val :0,4% grants Total official fees years 5-10 in 5705 1280 1990 2898 4428 5951 6641 8635 29116 Total external costs years 5-10 in 3241 640 995 1449 2999 4591 6906 9778 41728 (provider costs: translation, validation + maintenance) Total costs till year 10 in 8946 1920 2985 4347 7427 10542 13547 18413 70844 7026 5961 4599 1519-1596 -4601-9467 -61898 366% 200% 106% 20% -15% -34% -51% -87% Total official fees years 5-12 in 9635 2370 3620 5033 7663 9880 10985 14336 45013 Total external costs years 5-12 in 4027 1185 1810 2517 4617 6555 9078 12628 49677 Total costs till year 12 in 13662 3555 5430 7550 12280 16435 20063 26964 94690 10107 8232 6113 1383-2773 -6401-13302 -81028 284% 152% 81% 11% -17% -32% -49% -86% Total official fees years 5-15 in 18340 5100 7490 10026 15056 18587 20562 26732 77265 Total external costs years 5-15 in 5768 2550 3745 5013 8313 10909 13866 18826 65803 Total costs till year 15 in 24108 7650 11235 15039 23369 29496 34428 45558 143068 16458 12873 9069 739-5388 -10320-21450 -118960 215% 115% 60% 3% -18% -30% -47% -83% Total official fees years 5-20 in 41450 13030 18530 24269 35299 41693 45948 59217 158309 Total external costs years 5-20 in 10390 6515 9265 12135 18435 22462 26559 35069 106325 Total costs till year 20 in 51840 19545 27795 36404 53734 64155 72507 94286 264634 32295 24045 15437-1894 -12315-20667 -42446-212794 165% 87% 42% -4% -19% -29% -45% -80% Page 4

2.2 UP= True TOP 5 : Estimated costs in EUR, including external costs, for validation and maintenance, by specialised validation/translation/payment service providers True TOP5 DE DE FR DE FR GB DE FR GB NL DE FR GB NL DE FR GB NL DE FR GB NL SC/18/15 SE SE BE SE BE AT 1Val: 9% grants 2Val: 16% grants 3Val: 39% grants 4Val: 13% grants 5val: 7% grants 6Val: 4% grants Val: 2,5% grants 25Val :0,4% grants Total official fees years 5-10 in 5705 1280 1990 2898 4428 5951 6641 8635 29116 Total external costs years 5-10 in 1490 240 480 720 1460 2340 3530 4840 23400 (provider costs: translation, validation + maintenance) Total costs till year 10 in 7195 1520 2470 3618 5888 8291 10171 13475 52516 5675 4725 3577 1307-1096 -2976-6280 -45321 373% 191% 99% 22% -13% -29% -47% -86% Total official fees years 5-12 in 9635 2370 3620 5033 7663 9880 10985 14336 45013 Total external costs years 5-12 in 1570 320 640 960 1780 2740 4010 5400 25400 Total costs till year 12 in 11205 2690 4260 5993 9443 12620 14995 19736 70413 8515 6945 5212 1762-1415 -3790-8531 -59208 317% 163% 87% 19% -11% -25% -43% -84% Total official fees years 5-15 in 18340 5100 7490 10026 15056 18587 20562 26732 77265 Total external costs years 5-15 in 1690 440 880 1320 2260 3340 4730 6240 28400 Total costs till year 15 in 20030 5540 8370 11346 17316 21927 25292 32972 105665 14490 11660 8684 2714-1897 -5262-12942 -85635 262% 139% 77% 16% -9% -21% -39% -81% Total official fees years 5-20 in 41450 13030 18530 24269 35299 41693 45948 59217 158309 Total external costs years 5-20 in 1890 640 1280 1920 3060 4340 5930 7640 33400 Total costs till year 20 in 43340 13670 19810 26189 38359 46033 51878 66857 191709 29670 23530 17151 4981-2693 -8538-23517 -148369 217% 119% 65% 13% -6% -16% -35% -77% Page 5

3.1 UP= True TOP 5 SMEs: Estimated costs in EUR, including external costs, for validation and maintenance, by a network of attorneys SMEs reduction DE DE FR DE FR GB DE FR GB NL DE FR GB NL DE FR GB NL DE FR GB NL Real TOP5 SE SE BE SE BE AT SC/18/15 1Val: 9% grants 2Val: 16% grants 3Val: 39% grants 4Val: 13% grants 5val: 7% grants 6Val: 4% grants Val: 2,5% grants 25Val :0,4% grants Total official fees years 5-10 in 4279 1280 1990 2898 4428 5951 6641 8635 29116 Total external costs years 5-10 in 2956 640 995 1449 2999 4591 6906 9778 41728 (provider costs: translation, validation + maintenance) Total costs till year 10 in 7235 1920 2985 4347 7427 10542 13547 18413 70844 5315 4250 2888-192 -3307-6312 -11178-63609 277% 142% 66% -3% -31% -47% -61% -90% Total official fees years 5-12 in 8209 2370 3620 5033 7663 9880 10985 14336 45013 Total external costs years 5-12 in 3742 1185 1810 2517 4617 6555 9078 12628 49677 Total costs till year 12 in 11951 3555 5430 7550 12280 16435 20063 26964 94690 8396 6521 4401-329 -4484-8112 -15013-82739 236% 120% 58% -3% -27% -40% -56% -87% Total official fees years 5-15 in 16914 5100 7490 10026 15056 18587 20562 26732 77265 Total external costs years 5-15 in 5483 2550 3745 5013 8313 10909 13866 18826 65803 Total costs till year 15 in 22397 7650 11235 15039 23369 29495,5 34428 45558 143068 14747 11162 7358-972 -7099-12031 -23161-120671 193% 99% 49% -4% -24% -35% -51% -84% Total official fees years 5-20 in 40024 13030 18530 24269 35299 41693 45948 59217 158309 Total external costs years 5-20 in 10105 6515 9265 12135 18435 22462 26559 35069 106325 Total costs till year 20 in 50129 19545 27795 36404 53734 64155 72507 94286 264634 30584 22334 13725-3605 -14026-22378 -44157-214505 156% 80% 38% -7% -22% -31% -47% -81% Page 6

3.2 UP= True TOP 5 SMEs : Estimated costs in EUR, including external costs, for validation and maintenance, by specialised validation/translation/payment service providers SMEs reduction DE DE FR DE FR GB DE FR GB NL DE FR GB NL DE FR GB NL DE FR GB NL Real TOP5 SE SE BE SE BE AT SC/18/15 1Val: 9% grants 2Val: 16% grants 3Val: 39% grants 4Val: 13% grants 5val: 7% grants 6Val: 4% grants Val: 2,5% grants 25Val :0,4% grants Total official fees years 5-10 in 4279 1280 1990 2898 4428 5951 6641 8635 29116 Total external costs years 5-10 in 1490 240 480 720 1460 2340 3530 4840 23400 (translation costs + payment provider costs) Total costs till year 10 in 5769 1520 2470 3618 5888 8291 10171 13475 52516 4249 3299 2151-119 -2522-4402 -7706-46747 280% 134% 59% -2% -30% -43% -57% -89% Total official fees years 5-12 in 8209 2370 3620 5033 7663 9880 10985 14336 45013 Total external costs years 5-12 in 1570 320 640 960 1780 2740 4010 5400 25400 Total costs till year 12 in 9779 2690 4260 5993 9443 12620 14995 19736 70413 7089 5519 3786 336-2841 -5216-9957 -60634 264% 130% 63% 4% -23% -35% -50% -86% Total official fees years 5-15 in 16914 5100 7490 10026 15056 18587 20562 26732 77265 Total external costs years 5-15 in 1690 440 880 1320 2260 3340 4730 6240 28400 Total costs till year 15 in 18604 5540 8370 11346 17316 21927 25292 32972 105665 13064 10234 7258 1288-3323 -6688-14368 -87061 236% 122% 64% 7% -15% -26% -44% -82% Total official fees years 5-20 in 40024 13030 18530 24269 35299 41693 45948 59217 158309 Total external costs years 5-20 in 1890 640 1280 1920 3060 4340 5930 7640 33400 Total costs till year 20 in 41914 13670 19810 26189 38359 46033 51878 66857 191709 28244 22104 15725 3555-4119 -9964-24943 -149795 207% 112% 60% 9% -9% -19% -37% -78% Page 7