“Un passo più vicino”: The Italian government has approved the draft legislation for the ratification of the UPCA

Encouraging steps by participating member states towards the entry into force of the UPC Agreement

The Italian Council of Ministers has published a press release announcing that it had approved the draft law on the ratification of the Unified Patent Court Agreement that will “lead to the completion of Italy’s participation in the enhanced cooperation in the Unitary Patent package”.

The government declared that “this new phase in the development of the internal market will enable innovating Italian operators to benefit from a patent valid in the whole of the European Union, guaranteed by a supranational and specialized jurisdiction.”

The press release also highlights the fact that Italy will host a local division of the UPC, which the government hopes will be a project “that presents a significant potential for the improvement of the Italian capacity”.

Finally, it is interesting to note that the Italian government refers to the Italian local division of the UPC as a “signal from the (Italian) government to continue to protect and promote the Italian language”, while the issue of the promotion of the Italian language was the very reason Italy initially stopped taking part in the UPC.

Bulgaria will be 10th country to ratify the UPCA:

Encouraging steps by participating member states towards the entry into force of the UPC Agreement

Bulgaria will be the next country to ratify the UPC Agreement according to the UPC Preparatory Committee which expects the ratification to happen by the end of April.

Bulgaria would then become the 10th country to ratify the UPCA ( Austria, Belgium, Denmark, Finland, France, Luxembourg, Malta, Portugal and Sweden have already ratified). To enter into force the UPCA must be signed by 13 countries including France, Germany and the UK.

See our ratification table here and all the news about ratification here.

The Patents (European Patent with Unitary Effect and Unified Patent Court) Order 2016: Despite the Brexit referendum the UK is getting ready to take part in the UPC.

Encouraging steps by participating member states towards the entry into force of the UPC Agreement

As mentioned a few weeks ago the UK Parliament has been working on secondary legislation to amend the UK Patents Act 1977 to give effect to the UPC Agreement and EU legislation on the Unitary patent.

The final legislation has now been published.  The Statutory Instrument (SI)  (2016 No. 388) was signed on 12 March 2016  without the Parliament needing to amend it. It will however only come into force when the UPC Agreement comes into force (art 1(2) SI) .

This SI is only one of the two SIs required to enable the UK to ratify the UPC Agreement.  The other SI is required to reflect the UPC Protocol on Privileges and Immunities, and is now being drafted following the recent approval of that Protocol by the Preparatory Committee at the February meeting.

Since the UK Brexit referendum is getting closer and has become a subject of much speculation it is interesting to note the opposite dynamics that it has created.  On the one hand, it seems that were the UK to leave the EU, it would no longer  be able to take part in the UPC, as noted in the House of Commons debate on  01/03/2016 on the SI.

On the other hand, the UK government has adopted  a policy  whereby it proceeds on all matters on the basis that the UK will remain in the EU. The UK IPO for example stated that the Brexit referendum will have no effect on the UK’s ratification of the UPCA by mid-2016 and on the opening of the Court at the start of 2017. Indeed the Patents (European Patent with Unitary Effect and Unified Patent Court) Order 2016 is a tangible proof of the UK government’s willingness to be ready on time for the UPC to meet its opening schedule.

Will the UK ratify the UPCA before its referendum on the EU membership?

Brexit and the German constitutional challenge

In a statement sent to the magazine Managing IP the UK IPO declared that “the UK’s EU referendum will have no effect on UK ratification of the Unified Patent Court Agreement by the middle of 2016. This is in line with the timescale identified for the conclusion of the preparatory work necessary for the UPC to become operational.  Ratification will happen before the Court is expected to open, in early 2017.”

Similarly the UK’s Chartered  Institute of Patent Attorneys confirms that “the Government is proceeding on the basis that the UK will remain in the European Union. The UK Intellectual Property Office is working actively to establish the Unified Patent Court (UPC) and is preparing for ratification of the UPC Agreement.” It also published a table which highlights the major consequences on the intellectual property system the UK will face if choosing to leave the EU.

This issue was also raised in UK Parliament before the Fourth Delegated Legislation Committee on Monday 01/03/16 when Mr Edward Vaizey,  the UK Minister for Culture and the Digital Economy, introduced the Draft Patents (European Patent with Unitary Effect and Unified Patent Court) Order 2016 to the committee, meeting which is reported  in the hansard published by Parliament.

Mr Vaizey therefore explains to the Committee that it would  be “clearly, were we to leave the European Union, we would no longer be members of the unified patent court. It would then be a matter for  the UK Government to ask the European Union whether we could be a member, if we thought that was a good thing. I suspect the European Union would have something to say about that. For people whose lives are dominated by thoughts of having a European patent, it would be a bad thing if we were not a member of the European Union. I hope that that is clear.” The Minister reminded the Committee at this occasion that the aim of the creation of the UPC and Unitary Patent was to “boost competitiveness and drive growth, and for a target to cut the burden on business.

One step closer to the German ratification – The German Federal Ministry of Justice reveals two draft bills:

Encouraging steps by participating member states towards the entry into force of the UPC Agreement

The Kluwer Patent Blog publishes the first draft bill on the ratification of the Unified Patent Court and draft bill to implement the Unitary Patent at national level, both revealed by the German Federal Ministry of Justice.

A public consultation will take place before the final version is presented to the German Parliament, and should end before summer according to a spokesman for the German Ministry of Justice. The date of the ratification of the UPCA by Germany is on the other hand still unknown, and Germany’s delay in doing so is seen as a way to control the timing of the UPC’s entry into force.

The draft bills give indications as to the costs that Germany will bear for the Central Division in Munich, which should be around one million euros for its creation and 450.000 euros annually for its operation; and the states of Bavaria, Baden Württemberg, North Rhine-Westphalia and Hamburg for the four local divisions, estimated at two million euros altogether for their implementation and another 900.000 euros every year .

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Finland is the ninth country to ratify the UPCA:

Encouraging steps by participating member states towards the entry into force of the UPC Agreement

Finland deposited its instrument of ratification of the UPC Agreement in Brussels with the General Secretariat of the Council of the European Union on 19th January.  Finland is the ninth member state to complete this step, the others being Austria, Belgium, Denmark, France, Luxembourg, Malta, Portugal and Sweden.  Two more countries must now ratify the UPCA, on top of the ratifications of Germany and the UK.

The UK has indicated that it would ratify the Agreement before its referendum on its EU membership, whose date has not been confirmed yet. On the other hand, it is expected that Germany will only ratify the UPCA in Septembre 2016. The entry into force of the UPC is planned for February 2017.

Updates on the Protocol on Provisional Application of the Unified Patent Court Agreement:

protocol to the agreement on unified patent court on provisional application

The Protocol on Provisional Application of the Unified Patent Court signed on 01/10/15  has had a few updates since its our first post:

  • Hungary signed the Protocol on 07/10/15 after  its representative was prevented from signing the Protocol on 01/10/15, as the necessary Hungarian legal requirements had not been completed on time.
  • The Netherlands made a declaration stating that it will be bound by the provisional agreement from the day it will ratify the Unified Patent Court Agreement.
  • The United Kingdom made a reservation to the Unified Patent Court Agreement stating that it “shall not provisionally apply Article 4 of the Agreement on a Unified Patent Court”.

The Protocol will allow  “final decisions on the practical set up of the Court” to enter into application such as the “recruitment of judges and testing of IT systems“,  to permit a smoother set up of the court. The provisional application phase will also be used to allow for early registration of opt-out demands.

Italy joins the Unitary Patent

Encouraging steps by participating member states towards the entry into force of the UPC Agreement

We reported a few weeks ago that Italy had formally requested the European Commission to join the unitary patent. It appears from the European Commission website that Italy’s request was accepted and that it has now become the 26th member of the enhanced cooperation on unitary patent protection.

Italy was  initially opposed to the Council of Europe’s decision to allow the enhanced cooperation and challenged it, along Spain, before the Court of Justice of the European Union in May 2011. However after the CJEU rejected Italy and Spain’s actions in April 2013, Italy decided to sign the Unified Patent Court but abstained from participating in the enhanced cooperation.

Here our post on Italy and Spain’s challenges of the Unitary Patent from 2011 to its resolution in 2015.

Italy (but also Bulgaria, Cyprus, Czech Republic, Estonia, Finland, Germany, Greece, Hungary, Ireland, Latvia, Lithuania, Romania, Slovakia, Slovenia, and the United Kingdom)  must now ratify the UPCA.

 

More about ratification: What about Finland, Slovakia, or Germany?

Encouraging steps by participating member states towards the entry into force of the UPC Agreement

Not long ago we posted about Italy’s change of direction in relation to the Unified Patent Court and the Unitary Patent, and its notification to the European Council of its intention to participate to the enhanced cooperation. It seems however that more happened this summer concerning the ratification of the UPC Agreement:

  •  Bristows reports that Finland is progressing towards a ratification by the end of 2015. The Finish Ministry of Employment and Economy in fact set up in February 2015 a working group to prepare the ratification of the UPCA. This working group published to this effect a draft for a Government Bill focusing on “how its provisions will be brought into force in the country and on how national legislation would be amended to align it with the provisions of the Agreement “, which should be considered this autumn. The UPCA would then become part of the national legislation thanks to a special piece of legislation and therefore entail for Finland an amendment of its Patent Code, Criminal Code, Code of Judicial Procedure and the Enforcement Code.
  • Bristows also notes that The Netherlands, Lithuania and Estonia are moving towards ratification in the coming months, while Germany’s ratification process is due to start in autumn 2015 and the UK’s ratification is scheduled for spring 2016.
  • The Kluwer Patent Blog published a post on Slovakia and the Czech Republic’s ratifications. It highlights the  problems that these countries might face with the Unitary Patent renewal fees and the Unified Patent Court fees.  Martin Husovec, a Slovak-born lawyer, academic and Doctoral Research Fellow at the Max Planck Institute in Munich interviewed by the Blog explains that both countries will in fact face “a sky-rocketing increase in the number of valid patents on their territory“, which means that “many activities that have been open to free competition will now need to be licensed and paid for“. The cost of doing business in these countries will therefore increase. Second, “it is likely that in the future UPC cases involving Czech or Slovak companies, they will most often be the defending party. For them, the proposed UPC fees, sometimes more than hundred times higher than currently at national courts, is not going to be good news.” Finally the Czech Confederation of Industry complains that “the consequence of the introduction of high fees will not be better accessibility of the protection of the rights of our inventors, but rather creation of an arena for the ‘activities’ of economically stronger multinational corporations.” The Czech Republic and Slovakia have therefore signaled that if their concerns are not addressed, they might considerably delay their ratification.

 

For regular updates on the UPC and the ratification process, follow us on Twitter @UPCBlogLAVOIX

Portugal has ratified the UPC Agreement…5 more countries to go!

Protocol to the Agreement on a Unified Patent Court on provisional application

Portugal deposited its instruments of ratification for the UPC Agreement on Friday 28/08/15, as indicated on the European Council website.

According to the IP Copy, Portugal had passed the presidential decree ratifying the UPC Agreement on 06/08/15, but had not deposited its instrument of ratification at the Council of Europe before last week.

It has now become the eight country to have ratified the UPC Agreement. The UPCA will however only enter into force after Germany, the UK, and three more countries ratify it, following the ratification rule which states that:

The Agreement will enter into force on the first day of the fourth month after the fulfilment of the following two requirements (whichever is the latest):

  1. The deposit of the thirteenth instrument of ratification, including Germany, the United Kingdom and France (the three Contracting Member States in which the highest number of European patents had effect in 2012).
  2. The date of entry into force of the amendments to Regulation (EU) No 1215/2012 (Brussels I Regulation) concerning its relationship with the Agreement.