Posts in Europe

The European Commission (EC) is at it again, threatening to regulate standard essential patent (SEP) licensing relationships, despite a lack of evidence that such regulation is appropriate. The economically harmful nature of this regulatory framework (and its prior draft) has been highlighted by many expert commentators, including contributors to IPWatchdog (see here, here, and here) and Truth on the Market (see here and here). Fortunately, the EC’s proposed regulatory framework is still open for public comments. Mindful of that opportunity, on May 23, Mercatus Center scholars Christine McDaniel, Satya Marar, and I filed a public interest submission with the European Commission, focusing on three sets of problems posed by the framework. I summarize our submission below.

The Unified Patent Court (UPC) is only a fortnight away; it will go live on June 1, 2023. No doubt, the UPC will become a game changer requiring diligent planning and preparation. In order to faciliate such preparation, we have been providing a series of articles that will deal with the most important aspects of the UPC. Whereas Part 1 focused on the designated UPC judges, Part 2 on the timelines and Part 3 on the remedies that are available at the UPC, this Part 4 will address the financial aspects of UPC infringement proceedings.

On Tuesday, the European Patent Office (EPO) announced the 12 inventors and inventor teams that have been selected as finalists for the 2023 European Inventor Award. The EPO placed three finalists each into four groups: Industry, Research, SMEs, and Non-EPO Countries. Members of the public can vote for the winner on the EPO’s website. The finalists hail from 12 countries, Australia, Austria, Belgium, China, Finland, France, Germany, Iceland, India, Ireland, Italy, and the United States. An independent jury of former European Inventor Award finalists used their expertise to select this year’s finalists.

The Unified Patent Court (UPC) will go live in less than a month, on June 1, 2023. Thus, it’s time to prepare for the biggest change in the global IP landscape in more than a decade. To facilitate such preparation, we will be providing a series of five articles that will deal with the most important aspects of the UPC. Whereas Part 1 focused on the designated UPC judges, and Part 2 on the timelines that govern the proceedings before the UPC, Part III will illustrate the remedies (and the potential enforcement of such remedies) that are available at the UPC in a main action.

On April 27, a pair of legal measures were advanced within the European Union that promise to greatly impact the state of technological commercialization within Europe for both standardized and artificial intelligence (AI) technologies. While political leaders in the EU maintain that either proposal addresses consumer safety and competition concerns, multiple commentators have pointed out issues that could slow the rate of technological commercialization to the detriment of Europeans across the continent.

The United States Trade Representative (USTR) released its annual Special 301 Report on April 26, adding two countries to the “Watch List”: Bulgaria and Belarus. In total, there are now 29 countries on either the Priority Watch List or Watch List, up from 27 last year. Belarus was added because it passed a law that “legalized unlicensed use of certain copyrighted works if the right holder is from a foreign state ‘committing unfriendly actions.’” This includes the U.S. sanctions imposed on Belarus for its support of Russia’s invasion of Ukraine. “

The European Union is reportedly considering sweeping new regulations for the licensing and litigation of standard essential patents (SEPs), which make fair-minded observers wonder whether any sane adults are in charge at the European Commission (EC). The EU’s proposed new regulatory regime is scheduled to be released on April 26 by the Directorate for the Internal Market, Industry, Entrepreneurship and SMEs (DG GROW) of the European Commission (EC). And recently leaked drafts suggest that proposal will contain sweeping new regulations that will effectively put an end to the licensing and litigation of SEPs as it exists today.

In late March, news broke that the European Commission was drafting sweeping regulations on the licensing of standard essential patents (SEPs). Commentators predict the draft will be released in late April and, although this is an early draft that will likely evolve, below we offer the following initial observations. In its current form, the new regulatory framework would encourage increased transparency in SEP licensing through several new policies and procedures. In particular, the regulations would establish a “competence center” at the European Union Intellectual Property Office (EUIPO) to act as a sort of clearinghouse for SEP issues (both technical and economic). The EUIPO does not currently have patent expertise; EP patents are the purview of the European Patent Office (EPO), which is separate from the European Union and includes non-EU members.

Three judges of the new Unified Patent Court took part in a panel discussion about the new system at the Fordham IP Conference on April 13. Introducing the panel, Myles Jelf of Bristows LLP in London emphasized that the UPC is a completely new Court, which will have a huge impact on patents globally. He stressed that it is an amalgam of existing procedures: “In the UPC those procedures will surely come to have their own character and usage. As we stand here today, we have no precedents, case law or customs as to what those procedures will be.”

By now, unless you live in a total IP blackout zone, you’ve heard about the Unitary Patent and Unified Patent Court (UPC). Your friends in Europe, particularly, have been insistent on informing you, whether you want to know or not, with daily (if not hourly) email blasts, since January of this year. But most of what they tell you misses the forest for the trees. Here’s why. Let’s begin at the beginning. Aside from your client telling you to, why do you file a patent application? The only answer is: it is a hedge as to the future. The reason for that is that you and they have no way of knowing at the time of filing whether this will be the “next big thing” or just another “thing”. You might say or even believe that filing an application is about “protection” or potential “revenue”. But it isn’t.

The European Union is considering a new regulatory regime for the licensing and litigation of standard essential patents (SEPs) that will destabilize the global telecommunications market. This proposed regulatory regime is unbalanced in favoring implementers over innovators, and thus it threatens to hamstring the explosive technological and economic growth in this vital sector of the modern innovation economy. Although the EU has finally awoken to the competitive and geopolitical threat posed by China, this regulatory proposal undermines efforts by the EU and the United States to sustain their global technological leadership.

On February 17, 2023, Germany ratified the Agreement on the Unified Patent Court. This means that the Unified Patent Court (UPC) will definitely go live on June 1, 2023. Thus, it’s time to get one’s ducks in a row and to prepare for this new court system, which provides for a pan European injunction in patent matters. In order to faciliate such preparation, we will be providing a series of five articles that will deal with the most important aspects of the UPC. Whereas Part 1 focused on the designated UPC judges, this Part 2 will deal with the timelines that govern the proceedings before the UPC.

U.S. companies and inventors still filed more patent applications with the European Patent Office (EPO) than any other country, according to its Patent Index 2022, which was released today. The index showed that U.S. patent applications numbered 48,088, a 2.9% increase from 2021. However, China’s filings jumped by 15.1% over 2021, keeping it in fourth place out of the top five countries of origin for applications and narrowing the gap between it and Japan, the number three filer.

Lenovo has been ordered to pay InterDigital a lump sum of $138.7 million for a global FRAND (fair, reasonable and non-discriminatory) license covering sales of cellular devices from 2007 to December 31, 2023, in the second full FRAND trial to be decided by the UK courts, following the landmark Unwired Planet case. (Interdigital Technology Corporation & Ors v Lenovo Group Ltd (FRAND Judgment – Public Version) [2023] EWHC 539 (Pat).) In his redacted judgment published on March 15, Mr. Justice Mellor found that neither InterDigital’s August 2021 license offer (which amounted to $337 million) nor Lenovo’s counter offer (which comprised a lump sum of $80 million +/-15% for all sales in the six-year term to the end of 2023 with a full release for all past sales for no additional consideration) were FRAND or within the FRAND range.

The Global Innovation Policy Center (GIPC) of the U.S. Chamber of Commerce issued its 11th annual International IP Index today, striking what seems like a more dismal tone than usual compared with past reports. While 18 economies saw modest progress on IP protection improvements, 28 economies, including many of the high-scorers, like the United States and the United Kingdom, had a 0% change in score. Only two countries had a 0% change in the 10th edition of the Index. The Index covers 55 economies that represent “most of the global economic output, together contributing over 90% of global GDP.”