Posts Tagged: "Brexit"

Effective June 11, 2017, the Office of the President of the Federal Republic of Germany has agreed to suspend the Presidential signature required for formal ratification of the UPC Agreement. This suspension will remain in place until the German Federal Constitutional Court (“Bundesverfassungsgericht”) has reached a decision in the ongoing expedited proceedings relating to an action (“Verfassungsbeschwerde”) challenging the ratification.

Íñigo Méndez de Vigo, Spain’s Minister of Education, Culture and Sport began by explaining talent must always have a price and that it should be rewarded. Believing the fight against anti-piracy should be communicated through the school curriculum so as to reach children at a young age, Méndez de Vigo, added that infringing creator rights should be explained to students as stealing. “We want to raise an anti-piracy generation,” he explained, adding that neither piracy nor stealing are “acceptable in our legal framework.”

The UK is the fifth largest economy in the world, so I have little doubt that companies would pay solid money to protect their interest in that country alone, however in our modern day and age the concept of mutual recognition of protections is ever important to protect innovation. Therefore in order to pull this off the UK would have to make Patents registered in its country either totally mutually exclusive (effectively taking what is already there and making all new patents register in the region) or partner with the largest commonwealth in the world and expand upon current patent treaties and mutual recognition, in essence becoming more of a power house than the EU currently is. For those of you not in the Know countries like Canada, BVI, Australia, New Zealand are all members of the English Commonwealth. It’s the reason why the British Queen features on their currency, stamps, and many other administrative areas.

If you ask ten different people, you will probably get ten different answers. In fact, fewer than half of the European Union’s 28 member states actually have a clear legal definition at all for a trade secret. It’s no surprise, therefore, that the ways in which trade secrets are defined and treated varies considerably between the EU’s member states. These inconsistencies make it tricky for companies to do business in the EU. Somewhat belatedly, the EU has recognized the problems posed and, in order to address them, it has taken the step of harmonizing and upgrading the existing legal landscape by passing the Trade Secrets Directive.

Softbank’s acquisition of ARM Holdings is widely known and several blogs and articles have tried to explain the business background of the huge deal. Just following the BREXIT vote, one of the best-known (worldwide) United Kingdom-based high tech companies is leaving the for seemingly greener pastures. Despite the new owners’ assurances to leave the headquarters in the United Kingdom and promises to double the number of employees in five years, speculation persists. And, though much has been reported about the business deal, little has been said about how the acquisition changed Softbank’s IP portfolio.

This decision will continue to have a significant effect on the IP/IT market which has been governed by so many EU Regulations and Directives in the past (albeit not exclusively) that intricately bound the UK to the EU. The UK will in due course enter a negotiation period during which laws will be amended and enacted and international agreements will be negotiated. Due to the required notice period, the actual exit date will not be before 2018. The exact fate of the UK is also still up for debate with many options including retaining membership of the EEA only, or joining EFTA, or having a customs-only arrangement with the EU. The implications of this Brexit are currently very uncertain and will, to a large extent, be determined by the model that would be adopted and the terms of any international agreements negotiated.

As is being widely reported in the general press, the UK has voted to exit the European Union. There are many questions about what this decision means to the global economy, but for the intellectual property systems at least, we see no significant changes in the short term.

As the UK indeed voted for Brexit, the Unitary Patent system will now have to be re-negotiated altogether. The Unitary Patent Regulation states that the Unitary Patent cannot start before the UPC Agreement has been ratified by 13 participating Member States, including the three Member States in which the highest number of European Patents had effect in 2011, i.e. France, Germany and the UK. That alone means that the Unitary Patent must be put on hold now the Brexit referendum has been approved. Indeed, as a non-member of the EU, the UK will not be able to further participate in the Unitary Patent. Without the UK, with its market size and its reputation for patent litigation, the Unitary Patent will lose substantial value.

While the precise details of the terms of a Brexit will be worked out in the coming months and years, businesses likely to be affected by a Brexit should start to identify potential areas of risk and impact and plan staff and customer communications… Overseas businesses often establish operations in the UK as a stepping stone to trading with other EU countries. Government analysis in 2013 found that half of all European headquarters of non-EU firms are in the UK. The vote for a Brexit may affect decisions to establish in the UK and could lead to a relocation of the headquarters of some non-EU firms to other member states.

On 23 June 2016, the British citizens will hold their referendum on the country’s membership in the European Union. Should they vote for the UK to leave the EU (the so-called ‘Brexit’), the new European unitary patent system is likely to collapse before it started… If the UK was to refuse to ratify the European Patent Court Treaty after the exit vote on June 23 2016, the Treaty would also need to be renegotiated so that UK ratification is no longer required for the Treaty’s entry into force. Without such renegotiation, this requirement would only cease to apply when the UK has in fact left the EU.