UnitaryPatentinEurope&UnifiedPatentCourt(UPC)

Anoverviewandacomparisontothe„classical“

patentsysteminEurope

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

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Leifert & Steffan European and German Patent, Trademark & Design Attorneys

Today’ssituation:ObtainingpatentprotectioninEurope•  Directfilingandgrantinnationalpatentofficesor•  FilinginEuropeanPatentOffice(EPO)leadingtograntof

Europeanpatentsand•  ValidationofEuropeanPatentsasnationalpatents

Nationalpatentenforcement

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Leifert & Steffan European and German Patent, Trademark & Design Attorneys

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Today’ssituation:AdvantageoffilingwiththeEPO:•  SinglepatentprosecutionprocedureforallEPCmemberandextensionstates(includingbothEUandnon-EUstates)

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

Today’ssituation:AdvantageoffilingwiththeEPO:•  SinglepatentprosecutionprocedureforallEPCmemberandextensionstates(includingbothEUandnon-EUstates)Disadvantagesaftergrant:

•  Highcostsduetorequiredtranslationsofclaims/descriptionintonationallanguageatvalidationforanumberofstates(including,e.g.,ITandES)•  Highcostsduetorenewalfeesoccurringannuallyineachstateseparately•  Highcostsduetoseparatepatentregistersineachstate

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Leifert & Steffan European and German Patent, Trademark & Design Attorneys

Today’ssituation:Disadvantagesofnationalpatentenforcement:•  Riskofdivergingnationaldecisions•  Potentiallyhighcostsduetohighnumber(parallel)nationalenforcementprocedures(litigationandnullityproceedingsseparatelyineachstate)•  Legaluncertainty

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Leifert & Steffan European and German Patent, Trademark & Design Attorneys

Conceptof„Unitarypatent“protectioninEuropeisintendedtoovercomeboththeseaforementioned

•  Disadvantagesaftergrantandthe•  Disadvantagesofnationalpatentenforcement.

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Leifert & Steffan European and German Patent, Trademark & Design Attorneys

Conceptof„Unitarypatent“protectioninEurope

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•  A"Europeanpatentwithunitaryeffect"(UnitaryPatent)willbeaEuropeanpatent,grantedbytheEPOundertherulesandproceduresoftheEPC,towhich,atthepatentproprietor'srequest,unitaryeffectisgivenfortheterritoryofupto26(EU)MemberStatesparticipatingintheUnitaryPatentsystemandhavingratifiedtheUPCAgreement

•  AunitarypatentcanbeobtainedforEPpatentapplicationspendingatthetimeofintroductionofthenewsystem

•  TheUnitaryPatentonlycoversstatesthathaveratifiedtheUPCagreementatthattime(nostatescanbeaddedlater)

•  Non-EUstatesarenotandcannotbepartoftheUnitaryPatentsystemàUnitaryPatentsystemthusdoesnotandcannotcoverall38EPCmemberstates

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

Conceptof„Unitarypatent“protectioninEurope

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•  TherewillbenochangeasfarasthepatentprosecutionproceedingsbeforetheEPOareconcerned,i.e.therewillstillbeboththesameapplicationprocedureandthesameexaminationprocedureandthesamegrantprocedure:theintroductionoftheUnitarypatentmerelyaffectstheprocedureaftergrantoftheEuropeanpatentbytheEPO•  EuropeanPatents,grantedbytheEPO,canbe,e.g.,validatedas:

o  aunitarypatentfortheparticipating(EU)MemberStatestogetherwitho  a“classical”EuropeanpatenttakingeffectinoneormoreEPCContractingStates,whicharenotEU-statesand/orarenot(yet)participatingintheunitaryPatentagreementsuchas,e.g.,ES,CH,TK,NOetc.

•  Theunitarypatentwillco-existwithnationalpatentsandwith“classical”

EuropeanpatentsandisthusanalternativetotheclassicalEuropeanpatent

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

Advantagesof„Unitarypatent“protectioninEuropewithrespecttoreducingcosts

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•  Notranslationrequirementaftergrantatleasteventuallyaftera12-yeartransitionperiod(singletranslationfeewithinthisperiodhastobepaid)

•  Singleannualrenewalfeehastobepaid(insteadofanumber

ofdifferentrenewalfeesforeachEPCmemberstate,inwhichthepatenthasbeenvalidated):thisfeewillbeequaltothecombinedannualrenewalfeesinthe“Top4”mostfrequentlyvalidatedcountriesparticipatingintheUnitaryPatent,namely,Germany,France,theNetherlands,(andtheUK)

•  Expensivevalidationprocessincludingcostsassociatedwith

nationalrepresentativesinallvalidatedcountrieswillnolongeroccur,sinceEPOwillactasa“one-stop-shop”,providingasimpleregistrationofaUnitaryPatent

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

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Graphicalcomparisonofrenewalfees(unitarypatentvs.classicalEuropeanpatent(validatedinall26states))

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

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Disadvantagesof„Unitarypatent“protectioninEuropewithrespecttoreducingcosts

•  Singleannualrenewalfeehastobepaidforaunitarypatent;however:thereisnoopportunitylatertoreducethisfeebyabandoningthepatentinsomeUPCstatesasitisthecasefor“classicalEuropeanpatents”,i.e.individualdesignationscannotbedroppedinordertosaveonrenewalfees

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

EstablishmentoftheUPC(UnifiedPatentCourt)

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•  ThenewadditionalroleoftheEPOforregisteringunitarypatentsisintendedtoovercometheaforementioneddisadvantagesaftergrantofEuropeanpatents,whicharemainlyassociatedwithundesiredhighcosts

•  TheaforementioneddisadvantageswithrespecttoonlynationalpatentenforcementareintendedtobeovercomebyinstitutinganewpatentcourtinEurope,namelytheUnifiedPatentCourt(UPC)

•  TheUPCisintendedtobeaforumforlitigationofallpatents

issuedbyEPOintheparticipatingstates,i.e.forbothUnitarypatentsand“classical”EuropeanpatentswhichissuedbeforetheUPCagreemententeredintoforce,andwhichhavenotyetlapsedbythen

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

EstablishmentoftheUPC(UnifiedPatentCourt)

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StructureoftheUPC•“CourtofFirstInstance”:

o  CentralDivisionsinParis,MunichandLondon(Londonwillhandle„chemistrycases“)

o  Local(acourtsetupinonememberstate)orRegionalDivisions(acourtsetupintwoormorememberstates)

•“CourtofSecondInstance”(„AppealCourt“)inLuxembourg•(Limited)possibilityofreferralstotheCJEU(CourtofJusticeoftheEU)inmattersofEUlaw

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

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PossibleadvantagesoftheUPCjurisdiction

•  Nodivergingnationaldecisionsinrevocation/infringementactionsduetoexclusivejurisdictionoftheUPC

•  UPCprovidescentralrevocationaction,i.e.acentralattackispossibleanytime,inparticularafterexpiryoftheoppositionperiodbeforetheEPO

•  DevelopmentofEuropeancaselawbytheUPCovertimeprovidesenhancedlegalcertaintyforallusers,inparticularfornon-EUdefendants

•  Reducedeffortsforlitigationmanagement&reducedcosts(noparallellitigationproceedingsindifferentstates)

•  Infringementandrevocationcounterclaimtriedtogether

•  Timeefficiencyandstricttimelines(1yearforanyfirstinstanceproceedings)

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

PossibledisadvantagesoftheUPCjurisdiction

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•  RiskofEurope-wideinvalidationoftheunitarypatentwithjustonestrikeanytimeduringlifeofapatentbyacentralrevocationattackfortheproprietorofaunitarypatent

•  LegaluncertaintyatleastforsometimesinceEuropeancaselawneedstobedevelopedbytheUPCovertime

•  Concernsaboutthe“qualification”ofthejudges/courtsinvolved,inparticularofthe1stinstancelocalandregionalDivisions

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

EstablishmentoftheUPC(UnifiedPatentCourt)

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•  TheUPChasexclusivejurisdictionforpatentswithunitary

effect•  Duringatransitionalperiodofatleastsevenyears,however,

anactionforinfringementorforrevocationofaEuropeanpatentmaystillbebroughtbeforenationalcourtsandwillnotbetriedbeforetheUPC(thusthereisconcurringjurisdictioninthistransitionperiodbetweentheUPCandnationalcourts),butonly,ifthepatentproprietorofaEuropeanpatentrequeststo“optout”fromtheexclusivecompetenceoftheUPC

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

„Optingout“fromUPCjurisdiction(I)

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•  An“opt-out”fromexclusiveUPCjurisdictionispossibleonceduringatransitionalperiodofatleast7yearsforpatentproprietorsof“classical”EuropeanpatentorforapplicantsofaEuropeanpatentgrantedorappliedforbeforetheendofthetransitionalperiodfortheentirelifetimeofthepatentatanytime,UNLESSanactionhasalreadybeenbroughtbeforetheUPC

•  “Opt-out”hastheeffectthatactionsforinfringementand/orforrevocationwillstillbebroughtbeforenationalcourtsandnotbeforetheUPCduringthetransitionalperiod

•  “Optout”maybewithdrawnanytime,UNLESSanactionhas

alreadybeenbroughtbeforeanationalcourt

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

„Optingout“fromUPCjurisdiction(II)

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•  Therewillbea“sunriseperiod”forthepossibilityof“optingout”whichisplannedtostartthreemonthsbeforetheUPCbecomesoperational

•  “Optout”is(ofcourse)notavailableforpatentproprietorsofunitarypatents

•  Therewillbeno“opt-out”fee,i.e.optingoutisfreeofcharge

•  “Opt-out”hastobedeclaredwithin1monthfromgrant

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

ShouldI„opt-out“ornot?

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•  Amixofapproachesfordifferentpatents,dependingontheirvalueandlikelihoodoflitigationshouldbecontemplated, e.g.“strong”patentsforwhichprotectionalloverEuropeisenvisagedcouldberegisteredasUnitary Patent(andadditionallyasclassicalpatentfortheremainingnon-UPC,butEPCstates)inorderto substantiallysavecosts(no“opt-out”)and “weaker”,butimportantandvaluablepatents couldberathervalidatedasclassicalEuropean patentsinordertoavoidacentral

revocationattack (“opt-out”)

•  Possiblestrategymayincludeto“opt-out”valuablepatentsandthenlatertooptbackinifenforcementofthesepatentsisdesiredinalotofcountries

Leifert & Steffan European and German Patent, Trademark & Design Attorneys

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Whendoesitallstart?

•  TheUPCwillbecomeoperationalwhentheUPCagreementhasbeenratifiedbyatleast13memberstatesincluding–mandatorily–Germany,FranceandtheUKàsofartheagreementhasbeenratifiedby14memberstatesincludingFrance:thusnothingwillhappenuntilbothGermanyandtheUKhaveratifiedtheagreement

•  ProblemI:BrexitImplicationsfortheUPC:itiscurrentlyunknown–althoughtheUKannouncedthatitwouldnonethelessratifytheUPCAgreement–ifandhowtheUKcanbeamemberstateoftheunitarypatentsystemwhenitwillnolongerbeanEU-memberstate

•  ProblemII:pendingcomplaintfiledwithGermany'sconstitutionalcourthasputratificationoftheUPCagreementinGermanytoaholdforanunknownperiodoftime