EU Forges Ahead With European Patent

by Ulrika Lomas, for LawAndTax-News.com, Brussels

05 July 2010

A proposal on translation arrangements for a future European Union (EU) patent, described by the European Commission as "the final element needed for a single EU patent to become a reality," has been presented.

Obtaining a patent in Europe costs ten times more than one in the US, a situation which discourages research, development and innovation, and undermines Europe's competitiveness. An EU patent would allow innovators to apply for a single patent covering the entire EU territory with minimum translation costs and without needing to validate that patent at a national level as they currently have to do.

The new proposal seeks to build on the three language system at the European Patent Office (EPO) and, if adopted, would drastically reduce existing translation costs.

"For Europe to be competitive globally, we need to encourage innovation. That's not the case today – it is far too expensive and complicated to obtain a patent," said Internal Market and Services Commissioner Michel Barnier.

"An EU patent equally valid in all EU countries, is crucial to stimulate research and development and will drive future growth. Today's proposal – the last element of the patent reform package - is good news for innovators across Europe, in particular small businesses. I now hope that member states will act quickly to ensure the EU patent becomes a reality. I am committed to working closely with all sides to reach a final agreement," he added.

Currently, the EPO examines applications for a patent and is responsible for granting a European Patent if the relevant conditions are met. But for the granted patent to be effective in a member state, the inventor then has to request validation at national level. This implies translation and administrative costs.

Because of the costs involved, most of the inventors only patent their invention in a very limited number of member states. A European patent validated for example in 13 countries costs as much as EUR20,000, of which nearly EUR14,000 arises from translations alone. By comparison, an American patent costs about EUR1,850. Under the new proposal for a Council Regulation, processing costs for an EU patent covering 27 member states would be less than EUR6,200, of which only 10% would be due to translations.

The Commission proposed a Regulation for a Community Patent in August 2000. In December 2009, member states unanimously adopted conclusions on an enhanced patent system in Europe. The package agreed covered the key elements to bring about a single EU patent and establish a new patent court in the EU but excluded translation arrangements. On the new patent court, an opinion from the European Court of Justice on the compatibility of the draft agreement with the EU Treaties is awaited later this year. The latest proposal completes the necessary package by setting out the translation arrangements for EU patents.

The Commission proposes that EU patents will be examined and granted in one of the official languages of the EPO - English, French or German. The granted patent will be published in this language which will be the authentic (i.e. legally binding) text. The publication will include translations of the claims - the section of the patent defining the scope of protection of the invention - into the other two EPO official languages.

No further translations into other languages will be required from the patent proprietor except in the case of a legal dispute concerning the EU patent. In this case, the patent proprietor may be required to provide further translations at his or her own expense. For example, the proprietor may have to supply a copy of the patent into the language of an alleged infringer, or into the language of the court proceedings when this is different from the language of the patent.

The Commission's proposal also sets out accompanying measures to be agreed in order to make the patent system more accessible to innovators. First, high quality machine translations of EU patents into all official languages of the EU should be made available. Inventors in Europe will therefore have better access to technical information on patents in their native language. In addition, in order to facilitate access to the EU patent for applicants from countries in the EU that have a language other than English, French or German among their official languages, inventors will have the possibility to file applications in their own language. The costs for the translation into the language of proceedings of the EPO (to be chosen from English, French or German by the applicant when they file the application) will be eligible for reimbursement.

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