1. The EUROPEAN PATENT SYSTEM AND ITS FUTURE PROSPECT
Arūnas Želvys, Lithuanian Patent Office

2. Summary European patent system Problems of the system
Possibile solutions

3. STATUS QUO

4. Several Layers of Protection
European patents
National patents (granted on national and PCT applications)
In some countries – “small” patents, or utility models

5. European Patents European Patent Convention 38 Member States
Unitary patent grant procedure
and opposition
Non unitary:
Validation (translations)
Enforcement (jurisdictions)

6. European Patent Validation
Validating European patent means translating patent and paying the state fee
Validation in EPC states is different:
London Agreement has reduced translations costs.
However, London Agreement is not valid in 22 EPC states now. Majority of them require translations both of description and claims
For rest of the EPC states only translation of claims is enough or no translations at all

7. Costs of Translations
Validation costs can amount to 40% of the overall costs of patenting in Europe
A European patent validated in 13 countries costs as much as 20 000 EUR, of which nearly 14 000 EUR arises from translations alone.
European patent more than 10 times more expensive than a US patent costing about 1 850 EUR
85 EUR per translated page (average). Typical length 20 pages.
Official fees vary from 25 to 400 EUR.

8. European Patent Enforcement
Enforcement is different:
Legal dispute means dispute only in that country
Who can afford to litigate in 38 EPC member states?
Speed of the case is particularly different
Assessment of evidence and other rules of proceedings are different
The decisions may also be different!

9. Costs of Enforcement
Between 146 and 311 infringement cases are being duplicated in the Member States. By 2013, this number is likely to increase to between 202 and 431 cases.
Total private savings from having access to a unified Patent Court in 2013 would span the interval between EUR 148 and 289 million.

10. Costs of the Enforcement
Multiple litigation in UK, NE, DE, FR costs vary from €310,000 before up to €3.6 million when accounting for the cost of appeal at second instance.

11. National Patents
Every European state has its own patent system. Substantial principles of patent systems are almost the same.
Some states have substantial patent expertize, some preliminary expertize
Only some aspecs are unitary within the EU: botech patents, supplementary protection certificates for medicinal and plant protection products, rules on enforcement (not the enforcement institutions)
In principle, non unitary:
Procedure up to grant
Enforcement

12. National Utility Models
“Small patents” with softer
patentabilty criteria
Only some states have utility
models systems
But all of them have their
patent systems

13. No Unitary Patent Europe has no unitary patent at all
This is NOT OK for businesses....

14. System is Fragmented In other words, system is fragmented
Fragmentation is expensive
Not only for bussinesses, but for states as well
...and creates legal uncertainty

15. Directions to Go Doing nothing is not the best option
Europe has pleny of competitors in the world that are doing their bussiness much and much better

16. SOLUTIONS TO BE MADE

17. Something Unitary is Necessary
Unitary patent system for Europe?
Unitary procedure up to grant – already exists
Unitary validation - none
Unitary enforcement - none
EU patent and unified litigation system - sounds good, but very hard to archieve
Initiative burns and rebornes periodically

18. EU patent
A patent which covers all the EU – 27 member states. Similar to Community trademarks of Community designs
The same European patent, which is extended to the teritory of the EU
In principle, should be unitary in granting procedure, validation and enforcement stages

19. Unitary litigation system
One litigation system for EU and European patents
First Instance, Appeal Instance Court and Registry
First Instance Court – central, local and regional divisions
Significant only if it is enacted altogether with EU patent

20. Unitary patent
There is no consent on the EU patent mainly because of different opinions on patent translations.
Why? Are there any reasonable solutions?
Unitary litigation system – complex, but plausible.

21. Benefits for Businesses of Turkey
In case unitary patent system revives...
EU territory may be covered by unitary EU patent
European patent may still be validated in any EPC country
Unitary litigation system for both EU and European patents
Global competitiveness is increased

22. Thank you!
Arūnas Želvys Head of Law and International Affairs Division The State Patent Bureau of the Republic of Lithuania Ankara, Turkey