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Yet Another Revised Proposal For A Council Regulation On The Community PatentWednesday, September 30. 2009Tools
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EU Community Patent: The Mill Goes On And On
On October 30, 2009, the General Secretariat of the EU Council has issued another Document 15149/09 addressed to the Intellectual Property Attachés of the EU Member States and titled Proposal for a Council Regulation on the Community patent - Revised t
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Nothing is set on hold. The ECJ opinion is a formality and it has nothing to do with the community patent progress. I find it a pity that they don't discuss substantive harmonisation of national patent laws yet. Unlike the community patent that project cannot fail. If anything puts the EU on hold then this.
The EU-Community Patent proposal from the Council looks frightening for the EU level: "The Community patent is a European patent designating the Community, granted by the EPO under the provisions of the EPC"
Is there a term for "Untreue" in English for Council legislators? Defalcation? Disloyality?
@Rebentisch:
Well, at least the EU Council won't take any formal decision to adopt the proposals lying on the table until the ECJ has had its say.
@Rebentisch: I can't really understand your last sentence. What alternative would you propose? Creating a Community patent office? That would be an outrageous duplication of resources. Or would you like to have Community patents granted by the national patent offices? Considering that it is in general rather easier to get a patent granted by most NPOs than by the EPO (something that the EPO's most vocal critics consistently overlook), that would be an open invitation for forum shopping. Unscrupulous patent applicants and prospective "patent trolls" would go to the NPO which would be the easiest touch for grant.
And, mind you, for patent examination, size matters. A large patent office can have much more specialised examiners than a small one. Individual EPO examiners are in general extremely knowledgeable over a very narrow field of technology.
Finally, for the EU to delegate the grant of its patents to the EPO wouldn't be anything new. For over three decades, individual EU states have been delegating the grant of patents valid in their territories onto the EPO. Can that be also be considered "defalcation"? For that matter, when EU states delegate legislating to the EU, wouldn't that be "defalcation" too?
If you want to discuss the EPO's governance, that sould be improved, that I definitely grant you. But again, the problem there is not excessive centralisation, but rather the opposite.
A) When you do EU, get everything on the EU level or you will run into technicalities and conflicts. Means, take the EPC and implement it as a community act. Harmonise national patent laws with an EU directive (irrespective of the EPC). The Commission can propose that tomorrow, without an ECJ opinion, without joining the EPC by the Community and so forth. So it is like a codification, get a prior agreement with parliament groups not to make change proposals. Merge the biopat directive provisions, don't mention the CII. ---
B) EUPO, well think of virtual solutions. The most simple idea (I was quite sceptical as a German) is the Alicante proposal. OHIM will be formally responsible for the community patent but all actual examination work is done by the EPO, contracted national patent offices or commercial legal contractors. The relationship is public or private contractual. So you avoid all the trickery and fee distribution fights in the Administrative Council, instead the ItalianPOn can fight with France and the EPO over the Chemistry examination contract for 2015-2020 etc. National Patent offices are "sales departments" for the community patent. OHIM itself would just manage the workflows, seal the work and do quality review. Of course OHIM could also be an EUPO in Munich. All we have to avoid is a construction that is neither fish nor meat, where an EU court rules on non-community laws effective in the EU and neither the ECJ nor the EU legislature could ever make any corrections or integrate patent law with other policies as standardisation or competition law.
@Rebentisch - I've never heard the idea that OHIM could grant Community patents before, but it is an interesting idea. The proposals seem to be talking about a new system of quality control for patents, which will seemingly apply to the EPO and other patent offices. All offices which meet the quality standard will be able to provide Community patent searches. So perhaps one day we will truly have a Community body formally granting Community patents, and examinations as well as searches will be done by others on the Community's behalf. Of course, the EPO will complain about this, which could be why the proposals just talk about contracting searches, and in a rather vague way.
@ Rebentisch: Re. your paragraph A), it would be nice if it were so simple, but if you look at Community patent discussions over the years I suspect it never will be.
It is the same with defense policy, right? Basically it requires the initiative of the Council and the Commission to ignore the existence of the EPO and their lobbying. I really don't understand why the Commission does not harmonise national substantive patent law first (no language problems ahead!) Formally the EPO just carries out examination under the EPC while enforcement is based on national laws. When it is harmonised you can move towards a community patent, either as a community patent directive or via mutual recognition. But the main advantage of having it at the same level is smooth integration with other policies as enforcement, standardisation and competition laws. The idea to get a EPO community patent with fee sharing with national offices is rather grotesque. Or an EU Patent Court which does not rule on an EU legal base. -- ad B) It is kind of natural to have trademarks and patents under the same umbrella. The idea comes from Spanish politicians. Indeed what is attractive is that we would get a kind of quality control mechanism or certification. The basic idea of outsourcing examination services could create an interesting market of examination service competition. Even today patent attorneys are a sort of external service providers of the patent offices. The current examination process is not sustainable given the massive backlog.
I am sorry, Rebentisch, but this idea reveals an [***] ignorance of how the patent system actually works. Let's see why:
a) Re. "patent law harmonisation". First of all, what is harmonised right now, and what should be harmonised?
In fact, substantive patent law regarding the validity of patents is already harmonised throughout Europe. For European patents, the European patent convention applies throughout Europe. The EPC is already incorporated into the national law of the EPO member states and would be incorporated into EU law if the EU was to become an EPO member. For national patents, national law applies, but AFAIK, regarding patent validity national patent laws throughout Europe are carbon copies of the EPC. Now, currently, in a few cases in some very specific fields (biotech and IT) differences arise in how the national courts interprete the EPC. This can be solved either via a common court which would set EU (or EPOrg) wide case law, or by legislating those gray zones. However, the latest attempt to harmonise EU patent law regarding one of those grey zones (the CII directive) was the fiasco we all remember.
What isn't at all harmonised, on the other hand, is procedural patent law, i.e. how patents are granted and litigated in European countries. Some countries have a simple registration system for patents, without prior art search or examination of validity. Others perform a prior art search (or outsource it to...the EPO), but then grant the patent regardless of the results of the prior art search. Finally, a few countries (a minority, in fact), carry out a full search and examination. Even among those countries, Germany, for instance, while submitting 20-year patents to a thorough search and examination, simultaneously grants so-called "utility models" with a ten-year term without any search or substantive examination whatsoever.
Harmonising that won't be a picnic either. If everybody was to be brought to a "best practice" standard issuing patents only after search or examination, most NPOs would have to hire thousands of examiners, or (more likely) outsource all that work to the EPO.
Also, that still doesn't solve the language question, which involves whether granted patents have to be translated into a country's language in order to be valid there.
Moreover, patent litigation won't be easy to harmonise either. The Germans have a different litigation system than everybody else, splitting litigation of patent validity and infringement towards different court systems. Mind you, there is more patent litigation in Germany than anywhere else in Europe.
b) The practicalities of search, examination and grant.
"the ItalianPOn can fight with France and the EPO over the Chemistry examination contract for 2015-2020 etc."
Well, for starters, neither the Italian PO, nor the French one currently do any actual examination work. They both subcontract their prior art searches to the EPO, and grant without substantive examination. Just a handful of NPOs have actual examination capabilities, and of these, only two (the German DPMA and the British UKIPO) could really be measured to the EPO. Others' examination capabilities are mostly vanity projects, highly dependent on IT infrastructure provided free of charge by...the EPO.
Take your hypothetical "Chemistry contract 2015-2020". About 200000 patent applications are filed yearly at the EPO. Of these, maybe half are in Chemistry. Over 5 years that would make half a million patent applications to process. The EPO takes, in average, some 4 mandays to process an application from filing to grant. Even if competition was to breed hugely more efficiency (not necessarily the case, as we'll see) and reduce this to 2 mandays, it'd still be one million mandays. Spread over 5 years, that's 200000 mandays per year, or the work of about 1000 full-time examiners. You need highly qualified people to perform a proper examination: can you even imagine the disruption of hiring, training, and then firing thousands of engineers and scientists all over Europe in five-year intervals?! Never mind that pesky language problem: in which language would the examination take place?
Mind you, no NPO is even remotely interested in bidding for such indigestible chunks of work. The biggest ones have enough on their plates, anyway. Only two or three would like to take on some EPO work on a much more limited scale, and primarily just in order to be able to maintain their current vanity examination capabilities. The rest are only interested in the fees, not the work associated with them.
As I said, for patent examination, economies of scale matter. A large office like the EPO can afford satisfying recruitment, training and IT facilities. Many NPOs actually take advantage of those facilities free of charge, or at rates well below cost. They would never be able to afford them on their own. Moreover, a large office can specialise much further than a small one. When you file a patent application at the EPO, you know that it is going to be examined by someone with an advanced degree in just that area of technology, and who has done nothing but examining such patent applications for maybe a decade. This is why the EPO's quality is generally considered to be the best in the game, not just in Europe, but also elsewhere (the USPTO, for instance, has a much bigger staff turnover: you are lucky if you get an examiner with more than two years' experience, and then it's probably because he couldn't get a better paid job elsewhere).
c) Why OHIM?!
The intricacies of administering patent applications are quite different from those of administering trademark and design applications. Due to the examination process, it's a lot more complicated. OHIM can hardly cope with its own work right now, it'd have to hire significant numbers of people just to deal with the administration of the system you propose. All this administration would basically be duplicating administration that already exists at the EPO level. What's the point?
If this proposal comes from Spanish politicians, the point becomes in fact blatantly clear: accommodating the powerful vested interests of some Spanish IP firms. Spain has a big deficit of qualified European patent attorneys. The problem is that the IP agent profession in Spain is dominated by trademark attorneys, law graduates who traditionally have looked down to the engineering and science graduates that do the actual footwork of prosecuting patent applications. Since however one of the requirements for EPAs is an engineering or science degree, there are almost no qualified EPAs left to represent applicants before the EPO. However, the requirements for representing a client before OHIM are much lower. The only substantial consequence of putting OHIM as a "front desk" for Community patent application would be to allow Community trademark attorneys to charge for patent prosecution work (which they'd in any case hand down to their technically qualified employees).
@ R. Calvo
1. European patent law is NOT harmonised by the EPC. True harmonisation also requires uniform interpretation, hence the need for a single patent jurisdiction.
2. Germany is not the only EU state which splits infringement and validity actions. There are at least four others.
I think these concerns are valid, as I said, it is a Spanish proposall. But what I observed during the last 4 or 5 years was the technicalities of the EU Community patent. Is substantive harmonisation necessary? Actually, the EPO.org cannot harmonize national patent laws because it lacks competence, what happens is technocratic "soft harmonisation" shielded from the competent democratic legislators. The point of EU substantive harmonisation is to get EPC rules as an EU directive, patents are already part of the acquis communautaire via the IPRED1, so formally member states may not use another forum for harmonisation than the EU. Also other international treaties as the WIPO ones were implemented as EU legal documents.
Now: For implementing the EPC rules as an EU directive, the Commission does not need to be a party of the EPC. All the complicated legal technicalities are beyond the scope.
As of the EPO we still have to think about a longterm migration path under the framework of the EU. The advantages also include horizontal rules which make the EU framework more advanced and future proof. So the approach on behalf of the EPO.org would be to voluntarily implement EU rules (works pretty well for Switzerland) such as e.g. 1049/2001 or staff regulations, or get an agreement between the Administrative Council and the European Parliament President to admit written question of MEPs addressed to the Administrative Council. For the EU the approach is to (further) harmonise patent laws in line with the EPC and the Strassbourg Convention, even when it is 1:1 in a first step. What is legally and politically difficult are constructions where EU and EPO are directly interlinked in the sense that the EU Patent Court rules with the EPC as the legal base, while EU legislature has no influence on the EPC nor is there any oversight of a general constitutional court. From an industrial policy perspective I want an interlink of competition law, standards regulation, patent law, enforcement and so forth. For this I need laws on the same political level and a democratic, an aristotelic legislator who represents all relevant polical forces and interests in the society. The specialised governance of the EPO cannot provide for all this. And actually patent law is pretty diverse in Europe, the post-grant sphere is mostly beyond the scope of the EPO.org but a matter of member states jurisdictions.
Have tried to look in the register of the ECJ?
If there was a document sent to the ECJ by the Council, there should be a least a number in the registry.
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