One step closer to the long-awaited European patent
Easier and cheaper registration of patents could soon be a reality for small and medium-sized enterprises (SMEs) and other businesses as EU Competition ministers have given the go-ahead for 25 Member States to create a unitary patent system. This historic step means the end of the long legislative journey towards an EU patent is almost in sight. At the Competitiveness Council meeting on 10 March, the proposal was adopted by all Member States bar Italy and Spain under the new enhanced cooperation procedure. The future unitary patent will be automatically valid throughout the territory of all the participating Member States in the language in which it has been granted. The concept of a single EU patent was first conceived way back in 1949, and since then agreement between Member States on the matter has been impossible, and language has proved to one of the major sticking points in the negotiations. In light of the Council's authorisation, the official languages of the new patent system would be English, French and German, but Italy and Spain have opted out as they would like their languages to be included too, although under the Lisbon Treaty they can join up if and when they choose to do so. Ministers hope that the future patent system will be more streamlined and of a higher quality in order to help foster economic growth. Internal Market Commissioner Michel Barnier said the new patent would 'reduce the incredible weakness in European competitiveness'. The current European process requires separate patents to be registered in each Member State and translated fully into the national language, adding significantly to the cost of registering a patent. It currently costs in the region of EUR 20,000 - a sum 10 times higher than its US equivalent. Overall, the fragmented patent system in Europe causes between EUR 700 and EUR 800 million to be lost from the business sector each year. There are also indirect effects on Europe's capacity for innovation and creativity in research. The European Parliament gave its approval in February 2011 for ministers to use the system of 'enhanced cooperation' despite the objections from Italy and Spain. Under the Lisbon Treaty, enhanced cooperation can be used to enable a group of Member States to adopt new common rules when a unanimous EU-wide agreement cannot be reached. Such a procedure can only be implemented after the Council authorises it, on the basis of a Commission proposal, and after the European Parliament has given its consent. This is the second case of enhanced cooperation, the first being the divorce law approved in 2010. Enhanced cooperation is effectively a last resort for long-blocked legislation when unanimity is no longer possible. Much of the groundwork for the EU patent was set out during the Belgian Presidency, where a proposal from the Commission in December 2010 opened the way for enhanced cooperation towards an EU Patent. The Hungarian Presidency has continued this momentum. 'Today is really an historic day for innovation and the internal market,' said Zoltán Cséfalvay, Minister of State on behalf of the Hungarian Presidency. 'The stars have aligned for European patent reform for the first time in nearly 50 years.' The move has been welcomed by many entrepreneurs and representatives of SMEs. Jonathan Zuck from the Association for Competitive Technology (ACT) commented: 'The official endorsement of the enhanced cooperation in the creation of an EU patent is without doubt an important step forward for all businesses, entrepreneurs, and overall growth and innovation. However, we need to be cautiously optimistic as there have also been setbacks along the road. We encourage policymakers to work together to overcome the remaining blockages and find simpler solutions to litigate the new EU patent.' The Commission will now have to set out detailed proposals for the patent over the coming weeks.For more information, please visit: Hungarian Presidency of the Council of the EU: http://www.eu2011.hu(opens in new window)
Countries
Belgium, Hungary