Europe's patent system discourages innovation, experts tell hearing
A public hearing on intellectual property rights (IPR) on 31 January heard that the current system for patenting in Europe is too expensive for firms and could be hampering competition instead of boosting innovation. Small and medium sized enterprises (SMEs) are particularly critical of the current system, as they struggle the most to meet the costs of obtaining and defending a patent. Access to the innovation market is therefore restricted for SMEs, leaving larger firms with a monopoly. Cost is certainty an issue in Europe. A patent from the European Patent Office or national patent offices can cost up to 100,000 euro, which is twice as much as a patent costs in Japan, and three times the cost of a US patent. The lack of legal certainty in the existing European patent system was also criticised at the hearing, although experts from academia, industry, as well as professionals, did agree on the principle of needing patents to protect intellectual property. According to Italian MEP and chair of the Legal Affairs committee, Giuseppe Gargani, European companies wish to see standard legislation in Europe on patents so that they can compete effectively with the US. Representing the European employers' association UNICE, Klaus-Dieter Langfinger drew attention to the relationship between IPR and economic growth. He quoted a study from the World Economic Forum which states that the 20 countries with the highest IP protection standards are among the 27 richest nations in the world. If the EU is to become more competitive, the lack of legal certainty and the high costs should be addressed, he said. While recognising the benefits of a standardised patent system for the EU, most participants were however reluctant to see a harmonisation of national criminal law on the enforcement of IP rights.