The creation of a Unified Patent Litigation System has been under discussion since April 2007. The Commission says a broad consensus is now emerging on the main features and the basic tasks of the system, including a largely decentralised first instance, a single appeal instance, and a role for the European Court of Justice in providing a consistent interpretation and application of Community law.
The court structure proposed for the system would have jurisdiction both for existing European patents and future Community patents.
A unified system would increase legal certainty, reduce costs and improve access to patent litigation for businesses, in particular small and medium enterprises, said Internal Market and Services Commissioner Charlie McCreevy, “European businesses find the current patent litigation system complex, slow and costly. Once agreed, a unified system with a dedicated unified patent court would make patent litigation more predictable, faster and less expensive.”
Announcing the outline of the court structure, the Commission said it remains firmly committed to a comprehensive patent reform package involving both a unified patent litigation system and a cost-effective single patent.
As a next step the European Court of Justice will be asked for an opinion on the compatibility of the draft agreement with the EC Treaty. At the same time, outstanding issues around other components of the patent reform package, such as the regulation on the Community patent and the relationship between the EU and the European Patent Office will be addressed.
The current fragmentation of the patent system in Europe, and in particular the lack of a unitary title, makes the system complex and costly, and hampers enforcement. Whether registered through separate national offices or the European Patent Office, companies whose patents are infringed have to litigate in all countries where the patent is granted.
The most recent economic cost-benefit analysis came to the conclusion that there would be substantial financial and other benefits for companies, and the European economy, in a unified system. It is predicted that by 2013 the creation of a unified system would result in savings of between €148 and €289 million each year, while reducing legal uncertainty.
The recommendation on the structure is available at: http://ec.europa.eu/internal_market/indprop/patent/index_en.htm
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