Single European patent court 'welcomed by businesses'

System could take cost and complexity out of protecting IP

New measures to simplify the means of protecting companies' intellectual property in the European Union are welcome, according to research by law firm Allen & Overy.

The EU is establishing a 'Unified Patent Court' (UPC) that is intended to overcome a “fragmented market for patents and the significant variations between national court systems” that are “detrimental to innovation”. The court could be established next year.

In a survey of businesses in Europe, Allen & Overy found that three-quarters of those responsible for preparing for the new system expected it to be “positive” for their companies. Only 15% expected the UPC to have a negative impact on their firms.

Global head of IP litigation at Allen & Overy, Nicola Dagg, said that European patents had had to be obtained country-by-country, resulting in a “patchwork quilt” approach. There was broader scope for patent protection under the new system. “It is taking some of the cost and complexity out,” she told PE. She said the UPC could bring European patent standards to levels greater than US models.

Preparations are being made in Europe to establish the court. Andrew Thompson, partner at patent specialist Withers & Rogers, said the unitary patent package promised many benefits “in principle”. He said: “It will be possible to obtain a single patent protecting a company’s innovation across most countries of the European Union, instead of the current system, which requires European patents to be validated in each jurisdiction individually.”

Potentially, he said, this meant patent protection could be secured at a much lower cost and any patent litigation will take place from a single court.

“However, not all patent holders stand to gain. For those who only seek protection in two or three countries at present, costs could rise if the unitary patent route is followed." The renewal fee for patents had not been set, he said.

Thompson added: “However, it is predicted to be the cost of the ‘average’ European patent, which is believed to be a patent validated in four or five countries.

“The arrival of the pan-European patent also stands to level the playing field with the US system, from both a cost and litigation perspective – therefore, making the EU more attractive for foreign companies looking to invest. This could help to make litigation in Europe less expensive than the US.”