Moves towards a European Patent, January 2002

Author (Person)
Publisher
Series Title
Series Details 11.1.02
Publication Date 11/01/2002
Content Type , ,

Attempts by the Member States of the European Patent Organisation to revise the European Patent Convention are proving difficult. Limited progress was achieved at the 'Diplomatic Conference' held in Munich in November 2000, but much remains to be done in areas such as software and biotechnological inventions.

Parallel to this is the European Union proposal to adopt a law to create a Community Patent. The Heads of State and Government of the European Union at the European Council in Lisbon in March 2000 set the end of 2001 as the date for the establishment of the Community Patent. Despite strenuous efforts by the Belgian EU Presidency during the autumn of 2001 to secure agreement the deadline was not met.

Background

Patents are concerned with the technical and functional aspects of products and processes (as opposed to a 'design' which relates to the visual appearance of products, and a 'trade mark', which identifies the products or services of a particular trader). A patent for an invention is granted by a government to the inventor, giving the inventor the right for a limited period to stop others from making, using or selling the invention without the permission of the inventor. When a patent is granted, the invention becomes the property of the inventor, which - like any other form of property or business asset - can be bought, sold, rented or hired. Patents are territorial rights; a UK Patent, for example, will only give the holder rights within the United Kingdom and rights to stop others from importing the patented products into the United Kingdom. The purpose of a patent is to help the inventor recoup the investment in research and production, while fostering technical innovation and avoiding research and development duplication.

Further background information on patents can be found on the Patents page of the UK Patent Office. The formal definition of a patent by the World Intellectual Property Organisation is:

A patent is an exclusive right granted for an invention, which is a product or a process that provides a new way of doing something, or offers a new technical solution to a problem.

For many years there have been attempts to create a system whereby an inventor can apply for a single patent to cover 'Europe'. While the desirability of this is unquestioned in terms of encouraging innovation and competitiveness in Europe, and to reduce bureaucracy and costs involved in inventors having to apply for many individual patents across Europe, in practice it has proved extremely difficult to achieve. Commercial companies, research centres and universities want to secure their inventions through patents but have to cope with a patent system in Europe that is seen as complex and expensive. This is particularly striking for companies operating in the United States where the patent system is much less expensive and where a single patent automatically covers the whole market. This situation appears more and more inconsistent with a single European market and a single European currency.

Two initiatives aimed at simplification of the patents system in Europe are currently in hand.

The first is an ongoing intergovernmental approach relating to the European patent through the European Patent Organisation, while the second is European Union based aimed at the creation of a Community Patent.

Many people when they hear of the European Patent Organisation think that it is already possible to submit a single application for a Europe-wide patent. However, this is not the case.

The existing procedure was established by the European Patent Convention of 1973 (the Munich Convention). This is an international convention outside the framework of the European Union, although all EU Member States have signed the Convention, plus Switzerland, Cyprus, Liechtenstein, Monaco and Turkey. The EPC allows not for a single, unitary European patent, rather the 'bundling of national patents' through a centralised procedure through the European Patent Organisation(EPO), and its executive organ, the European Patent Office, operational since 1977. Thus, an inventor can apply for national patents in individual countries or apply for national patents using the centralised EPO procedure. The latter procedure is said to be advised if an inventor wants to protect an invention in three or more countries (Intellectual property laws of Europe (Wiley, 1995, p14)).

For many years there have been attempts to revise the European Patent Convention. A 'Diplomatic Conference' was held in November 2000. A Press Release from the EPO summarised the aim of the November 2000 conference:

Against a backdrop of ever-increasing global commerce and technological competition, the central objective of the proposed revision will be to enable the flexible adaptation of the EPC to the legal conditions pertaining throughout a politically and economically integrated Europe. The delegates from the EPO member states will have to decide on a raft of just under 100 proposed amendments to the provisions of the Convention, all of which are aimed at bringing about a carefully considered modernisation of the EPC, whilst at the same time safeguarding the standards of quality for which the system is known.

The proposals take account of suggestions from users of the European patent system, as well as of the needs of the Organisation and the European Patent Office itself. The proposals for revision relate to many different aspects of the EPC, from institutional provisions and substantive patent law through to proceedings before the EPO and its boards of appeal, and including the post-grant phase. It is also proposed to make a conference of ministers of the contracting states a permanent institution under the EPC, in order to give the European patent system a stronger political context as far as the EPO's member states are concerned. Moreover, the Administrative Council of the EPO is to be given the power to adapt the Convention to international treaties and Community law without having to hold a revision conference. An important proposal in terms of the intended streamlining of the procedure for granting European patents foresees the bringing together of search and substantive examination. A further item on the Conference agenda is patent protection for computer programs, a subject of some controversy among the general public.

A number of issues which are of particular relevance to the patent system but which have not yet been debated in full are not on the conference agenda this time, including patent protection for biotechnological inventions. In view of the existing EU Biotechnology Directive and the fact that the EPC contains identical provisions, there is currently no urgent need for action on this matter. Nor will the conference be discussing changes to the EPC arising from the future Community Patent. Both these issues will, however, be subjected to further examination once the present reform has been concluded, and may be submitted to a subsequent revision conference.

The European Patent Organisation was given the mandate to hold the conference, which was held from the 20-29 November 2000, by the first Intergovernmental Conference on the Reform of the European Patent System, Paris, 24-25.6.99. This conference had the objective of reforming the current system in three main areas:

  • reduction of the European patent's costs, particularly in the translation area
  • legal security in litigation, particularly in procedures to enforce patent rights
  • modernisation of the European Patent Office's management system, especially in view of new memberships.

A second Intergovernmental Conference took place in London on 16-17 October 2000. An optional Agreement signed by Denmark, Germany, Liechtenstein, Switzerland, the Netherlands, Sweden, Monaco and the UK was reached to cut costs. Ministers also took steps towards developing a protocol on post-grant litigation so that disputes about European patents can be resolved in the courts more quickly and consistently across Europe.

Further information on the background, objectives, documentation and results of the Diplomatic Conference of November 2000 can be found on the EPO site, in particular the

A further 'Diplomatic Conference' is expected to take place in June 2002.

Proposal for a Regulation on the Community Patent

Parallel to the initiatives within the framework of the European Patent Organisation are activities specifically within the EU framework.

In 1975 a Community Patent Convention (CPC or Luxembourg Convention) was adopted by the then EC Member States, not as a formal piece of EC legislation but as an agreement between the Member States. This was amended in 1989. The text of the Convention, as amended, is available. The aim of the CPC is to allow a uniformly valid EC patent to be created, with a uniform law on infringement. Essentially, however, the CPC has not yet come into force.

The next major development at the EU level took place in 1997 with the publication by the European Commission of a Green Paper on the Community Patent and the European patent system (COM (1997)314 final) (Summary). This was a consultation document aiming to launch a discussion on the need to take new initiatives in this area. A separate Green Paper on Innovation (COM (1995)688 final) also called for the establishment of a Community Patent.

Following consultation, the European Commission adopted in 1999 a Communication on the follow-up to the Green Paper (COM (1999)42 final). The aim of the Communication was to announce the various measures and new initiatives which the Commission was planning to take or propose in order to make the patent system attractive for promoting innovation in Europe.

At the European Council in Lisbon in March 2000 the Heads of State and Government identified the Community Patent as an essential component of Europe's efforts to boost competitiveness and build a knowledge-based economy. The Presidency Conclusions state that the EU should

ensure that a Community Patent is available by the end of 2001, including the utility model, so that Community-wide patent protection in the Union is as simple and inexpensive to obtain and as comprehensive in its scope as the protection granted by key competitors.

In July 2000 the European Commission adopted a proposal for a Council regulation on the Community Patent. It is this proposal which is currrently progressing through the EU's policy-making process. This proposal addresses questions relating to the controversial matters of the future role of national patent offices and their relationship to the European Patent Office, the language regime, and the establishment of a Community Patent jurisdiction. Linked to these issues is the desire to reduce costs for the adoption of a patent. It on these issues that current disagreements are centred.

52000PC0412
European Commission
Proposal for a Council Regulation on the Community Patent
COM (2000) 412 final (1.8.00)(CNS 2000/0177) Consultation procedure

The full text, and associated Press Release, is also available on the European Commission: DG Internal Market website

The existing and subsequent progress of the proposal through the EU policy-making process can be traced in:

In March 2001 the Economic and Social Committee adopted its Opinion, essentially supporting the Commission's proposal, stressing the urgency for inventors and for innovation to have cheap, accessible and legally secure patents in the EU. A Press Release summarising the Opinion is available.

As of December 2001 the European Parliament had yet to adopt an opinion on the proposal. The Legislative Observatory predicted the lead EP Committee for the proposal, the Committee on Legal Affairs and the Internal Market, would adopt its report in January 2002 and the plenary session of February 2002 would adopt the EP's opinion. A draft report from the lead Committee's Rapporteur, Ana Palacio Vallelersundi, dated September 2001 is available

The Belgian EU Presidency (July-December 2001) placed reaching agreement on the proposal for a Community Patent as one of its key sixteen priorities. Following intensive work by the Presidency during the autumn of 2001 the European Commission was hopeful that substantive progress would be made at the Internal Market Council on the 26 November 2001 (PRES/01/440).

The Council held a long discussion on the different aspects of the draft Community Patent, in particular the language arrangements and the role of national patent offices in relation to the European Patent Office in Munich. Despite all efforts, it was not possible to reach a political agreement at this Council meeting. In these circumstances, the Presidency undertook to consider how best to continue the work so that agreement could be reached on the dossier as a whole in due course.

Following this disappointment Internal Market Commissioner Frits Bolkestein expressed his frustration in a speech 'The Community Patent: Objectives of the Commission and present situation' at a conference in Liège on 29 November 2001 (SPEECH/01/597). Further information about the conference is also available, as is the final report.

The question of the proposal (and the deadline of reaching agreement before the end of December 2001) came up at the European Council held at Laeken in December 2001. The Presidency Conclusions stated:

The Lisbon European Council drew attention to the importance of encouraging innovation, especially through the introduction of a Community Patent, which should have been available at the end of 2001. The European Council asks the Internal Market Council to hold a meeting on 20 December 2001 in order to reach, in particular in the light of the Presidency document and of the other contributions of the Member States, agreement on a flexible instrument involving the least possible cost while complying with the principle of non-discrimination between Member States' undertakings and ensuring a high level of quality.

As a result of this 'instruction' the Internal Market Council held a special meeting in Brussels on 20 December 2001(PRES/01/489), but again were unsuccessful in reaching agreement on key details of the proposed Directive, despite a new compromise text having been tabled by the Belgian EU Presidency (a summary of the key points can be read in MEMO/01/451). The question of language for translation of a Community Patent remains one of the key stumbling blocks.

The European Commission expressed its regret at the failure of the Council to reach a political agreement and stressed that 'We must have a concrete agreement in time for the Barcelona Summit' (the European Council to be held in Barcelona in March 2002 plans to review the progress of the goals laid down at the European Council in Lisbon in March 2000).

Some of the detailed issues of contention can be gleaned from papers on the Community Patent proposal in the Council of the European Union's Register of documents. Documents which are 'not available' directly from the Register can be requested by emailing: access@consilium.eu.int

Further background information on the Community Patent can be found in:

Further information within European Sources Online:

European Sources Online: Topic Guide:

  • The Single Market

European Sources Online: In Focus:

  • European Council, Lisbon, 22-23 March 2000
European Sources Online: Financial Times
17.11.00: The politics of plagiarism
19.11.01: EU governments told to speed economic reforms
21.12.01: Language fears stall Community Patent drive
 
European Sources Online: European Voice:
19.06.97: Call for new method of awarding patents in EU
17.07.97: Patent headache for EU inventors
22.01.98: Fast-track plan for revamped patents policy
27.01.00: EU patents 'crucial' to win science race
25.05.00: New Union software patent rules set to boost eEurope
01.06.00: Commission plans 'one-stop shop' patents
08.06.00: Tackling the EU's 'innovation deficit'
12.10.00: Lisbon pledges under threat from row over patents
12.10.00: Bolkestein move to protect software put on hold
16.11.00: French bid to break EU patent deadlock attacked by industry
16.11.00: Paris breaks the deadlock over patents
08.02.01: Prodi attacks lack of progress on goals for Stockholm summit
15.03.01: Call for patent action
29.03.01: Summit scoreboard: where EU leaders hit the target - or missed
07.06.01: EU patent plans get Swedish kiss-of-life
08.11.01: Put up or shut up on patents, bosses warn
 

Further information can be seen in these external links:
(long-term access cannot be guaranteed)

European Commission: DG Internal Market
Intellectual and Industrial Property: Industrial Property
 
European Commission: DG Enterprise: IPR Helpdesk
Notice
 
European Commission: Press and Communication Service
05.07.00: Press Release: Commission proposes the creation of a Community Patent (IP/00/714)
30.03.01: Press Release: European ESC: EU patent long overdue (CES/01/42)
29.11.01: Speech: The Community Patent: Objectives of the Commission and present situation, Belgian Community Patent Conference, Liège, 29 November 2001 (SPEECH/01/597)
15.12.01: European Council, Laeken, 14-15 December 2001: Presidency Conclusions (DOC/01/18)
20.12.01: Preparation of the Internal Market Council, Brussels, 20 December 2001: Community Patent (MEMO/01/448)
21.12.01: Results of the Internal Market Council, Brussels, 20 December 2001: Community Patent (MEMO/01/451)
Further Press Releases, and related material, can be found by a search on RAPID. 'Search all database (no date specified)', add 'Community Patent' to 'Text' field and amend to 'Exact match'
 

European Commission: US Delegation

European Patent Office

United Kingdom: Department of Trade and Industry

United Kingdom: The Patent Office

United Kingdom: House of Lords: Select Committee on the European Communities

World Intellectual Property Organisation (WIP0)

International Federation of Intellectual Property Attorneys (FICPI)

Union of Industrial and Employers' Confederations of Europe (UNICE)

The EU Committee of the American Chamber of Commerce in Belgium

  • Community Green Paper on patents, 1997
  • EU Committee welcomes Community Patent proposal, 2000
  • EU Committee Position Paper on the Community Patent, April 2001
  • Developments on the Community Patent proposal, November 2001

EuroLinux

International Chamber of Commerce

Derwent Information

Edward G Fiorito

Ladas and Parry:

Further and subsequent information on the subject of this week's In Focus can be found by an 'Advanced Search' in European Sources Online by inserting 'Patents', 'European patent', 'Community Patent' etc in the search box.

Ian Thomson
Executive Editor, European Sources Online
Original compilation: November 2000
Latest revision: 11 January 2002

Analysis of the attempts by the Member States of the European Patent Organisation to revise the European Patent Convention and the European Commission's proposal to adopt a law establishing a Community Patent.

Subject Categories