Between the fourth quarter of 2022 and the first quarter of 2023, the Unified Patent Court (the “UPC”), which will have jurisdiction over most European patents, will begin operations. It has been a very long process, and it’s now included in the ‘Unitary Patent Package.’ The goal of this package is to provide unitary patent protection across Europe, as well as to make obtaining and enforcing patents easier and more efficient for patent holders. Future developments will require all inventors to be aware of them.
Unitary Patent Package
The Unitary Patent Package is made up of two parts that are meant to improve the present European patent system. The first part is the establishment of a new patent right known as the “Unitary Patent” under EU Regulation 1257/2012. With the exception of Spain, Croatia, and Poland, which have chosen to opt-out of the system, this right can be enforced across all EU member states.
The Unitary Patent is designed to supplement the development of the United Patent Court (UPC), which is an international court established by the Agreement on a Unified Patent Court (the “UPC Agreement”). The Court will have authority over all European patents assigned to states that have signed the UPC agreement, as well as unitary patents, and will address infringement and validity issues. All member states that have ratified the UPC agreement will be governed by its rulings.
The importance of the Unified Patent Court
The UPC intends to address the problems with the current European patent system, which relies on national courts to decide on the validity and infringement of European patents. Patentees wishing to maintain their European patents in several countries, as well as those seeking to dispute European patents, face challenges as a result of the current system. This is because they must normally initiate legal actions in each nation. This frequently results in simultaneous lawsuits in different nations, which is costly and raises the chance of courts reaching divergent rulings, causing confusion.
Because the UPC’s ruling will be enforceable in all states that are members of the UPC Agreement, patentees will no longer be required to participate in lawsuits in several jurisdictions. This is supposed to standardize patent law across the EU and make patent litigation more affordable and accessible. In addition, the UPC will be made up of competent and professional decision-makers, with the goal of producing judgments that are timely, respectable, and of high quality.
The UPC’s authority to make Europe-wide judgments and awards, including injunctions, will help those seeking to enforce patents. Meanwhile, people who want to question a patent’s validity will simply have to file one centralized revocation action. However, because there will be a seven-year transitional period during which procedures relating to European patents can still be taken in national courts, the implications of this may not be noticed right once.
With the exception of Spain, Croatia, and Poland, all EU member states have joined the UPC Agreement. Non-EU member nations are currently not allowed to be involved in the UPC agreement. The United Kingdom ratified the UPC Agreement at first but revoked its ratification in July 2020.
The main benefit for signatories to the UPC Agreement is that assuming the UPC is functional in practice, it will strengthen their patent protection system and signal that their government is committed to IP rights protection. This is critical for promoting innovation in an environment where intellectual property legislation is a major consideration.
The differences between national court systems make it particularly difficult for small and medium-sized enterprises (SMEs) to maintain their patents or protect themselves against validity disputes, which is one of the concerns exacerbated by the current European patent system. The process of inventing becomes economically unfeasible if a firm is unable to appropriately protect its inventions. The UPC should address this problem because it would make it easier and less expensive for patent owners, particularly SMEs, to enforce and protect their patents.
The list of EU IP Firms can be found here.