When it comes to IP protection, new provisions in EU free trade agreements (FTAs) have broken new ground. The necessity for stronger IP provisions has become critical in recent years, particularly with covid-19. The benefits of IP rights in FTAs and their beneficial effects on the EU economy are highlighted in a recent study done by the European Centre for International Political Economy (ECIPE).
Why is it necessary to include strong IP provisions in EU free trade agreements?
The ECIPE report examines the protection of trademarks and patents in European Union trade agreements in relation to European legislation and other IP-protected industries. While the European Union has taken significant steps to ensure the protection of some categories of IP rights (e.g., geographical indications, plant varieties, and traditional knowledge) and to establish an IP framework capable of encouraging their development and exploitation, when it comes to trademarks and patents, and particularly the relevant provisions in the European Union’s FTAs with the United States, the agreed protection is neither proportional to that provided by EU law nor is it proportional to that provided by EU law. As a result, member nations are exposed to two areas that are critical to their economy.
According to the same ECIPE analysis, the EPO handle more than 180,000 patent applications in 2020 and grant over 138,000 patents. Medical technologies, digital communications, computer technologies, electrical machinery, and transportation areas appear to have more applications. Pharmaceuticals (+10.2 percent), biotechnology (+6.3 percent), and medical technology (+12.6 percent) had the highest growth rates in 2020. In fact, trademark-intensive sectors, along with design and patent-intensive industries, produce almost €10 trillion for the European Union while also providing significant employment opportunities.
As a result, it is obvious that intellectual property is extremely important for EU member states’ economies. Many countries, such as Greece, offer high-quality jobs in these disciplines, with a large financial commitment per employee. In Greece, IP-intensive industries account for 10% of total production and employ more than 170,000 people. To be more specific, despite the disease outbreak and the mandatory lockdown imposed in Greece, the Hellenic Industrial Property Organisation (HIPO) reported a 26 percent increase in applications for national patent diplomas filed to the HIPO in 2020 (compared to 2019) and a further 14 percent increase in 2021 (compared to the previous year). As a result, in 2021 the total number of patent applications reached an all-time high.
Nevertheless, it is their prospective growth and development that makes sectors including medical technology, digital communications, computer technology, electrical machinery, and transportation so important to the Greek economy, highlighting the need for improved IP protection. More exports, imports, and investment will result from stronger provisions, boosting a country’s GDP overall. Indeed, according to ECIPE’s research on the beneficial macroeconomic impact of stricter IP provisions, Greece is one of the member states that stands to benefit the most from such a situation. Greece will have the largest relative, not monetary, increase of 1.5 percent, followed by Malta and Bulgaria.
Such an impact, particularly for a country like Greece, cannot be overstated, and it serves as a powerful incentive for the European Union to move forward with stricter protection of its trademarks and patents in FTAs with third countries, while also raising the level of protection to that by EU law. provided The Greek model highlights the unrealized potential of new provisions in its FTAs, as well as the difference they may make for member states’ economies and the European Union as a whole.
The list of EU IP Firms can be found here.