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European courts failing over proportionality: IP2Innovate

"Trade group IP2Innovate has warned that courts across Europe are failing to consider proportionality in patent cases, while urging the European Commission to promote similar reforms to those recently enacted in Germany" wites World IP Review.

 

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IP2Innovate

SEP regulation: a step in the right direction

BRUSSELS, 28 April 2023 – IP2Innovate welcomes the European Commission’s proposal to reform the licensing of standard essential patents. “This initiative should at least help level the playing field when standard essential patents licensing is involved,” said Patrick Oliver, executive director of IP2Innovate. “The proposal isn’t as bold as it was a week ago, but it still has certain important reforms in place. Opponents of this reform have lobbied intensely for the Commission to abandon it. I hope that in an effort to compromise, the Commission hasn’t opened up loopholes that would undermine its effectiveness,” he added. IP2Innovate welcomes the Commission’s effort to inject much needed transparency into SEP licensing, limiting the instances where patent owners could abuse the system. In his press conference on 27 April, Commissioner Thierry Breton referred to how the current SEP system enables patent owners to extract excessive royalties. “He is right. This happens not only with SEPs but also in the broader patent system too,” said Mr Oliver, adding: "We hope he is also right when he says this practise will become impossible in the areas of SEPs, and that he then turns his attention to fixing related problems that plague the broader patents system in Europe.” IP2Innovate members collectively have thousands of European patents, including SEPs. They believe that patents play a vital role in the innovation process. But when the system is abused patents become an obstacle to innovation. And it’s not only happening with SEPs. Many patent assertion entities (PAEs) are in business to exploit the weaknesses in the system. IP2Innovate was established in 2016 to combat patent abuse by these PAEs, often referred to as patent trolls. It has been pushing for courts to move away from granting automatic injunctions in patent disputes, and instead apply remedies that are proportionate, especially when highly complex products are involved.

IP2Innovate welcomes the call by CDU/CSU to introduce a proportionality test in the German Patent Act to better protect innovators against patent trolls

In a recent  the German Conservatives (CDU/CSU) Elisabeth Winkelmeier-Becker and Ingmar Jung express concerns over abusive litigation practices by patent trolls, which distort the market and undermine Germany’s attractiveness as a business location. They note that in light of the high complexity of modern products, companies can no longer completely rule out the possibility of patent infringements. In this context, an unlimited right to injunctive relief create unwarranted leverage for patent trolls who buy up patents only to assert them against companies and extract disproportionately high settlements. Solutions proposed by CDU/CSU are the introduction of a proportionality test in the German Patent Act as well as a synchronisation of infringement and nullity proceedings.
IP2Innovate

IP2Innovate calls on the European Commission to strengthen EU law to ensure a balanced patent system and enhance Europe’s competitiveness

BRUSSELS, 25 March 2024 - IP2Innovate is calling for targeted amendments to EU intellectual property law to ensure that European patent courts consider the proportionality of remedies in their handling of patent litigation cases. The proposed amendments will help create a more balanced patent system. This will spur innovation and, in turn, help to address Europe’s lagging competitiveness. The 2004 EU IP Rights Enforcement Directive (IPRED) requires that remedies for patent infringement be applied in a proportionate manner, but courts are handing out injunctions to patent owners in effect automatically, without considering the disproportionate impact that may result.
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