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Wall Street Journal

Germany Shuts Door on Patent Trolls

Germany on Friday removed a legislative quirk that had made it a prime destination for globally active patent litigators who increasingly target fast-growing tech companies. Under the new legislation, courts examining a patent claim will conduct a proportionality check to decide whether an injunction would cause “undue hardship” to the alleged infringer or any third party. Ludwig von Reiche, IP2Innovate's board member told Wall Street Journal, that the law was an important step towards creating a better balance between patent and innovation protection. It remains to be seen how judges apply the new law, he added.

 

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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.
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Brussels – EU common patent gets boost from bloc’s industry boss after decades of delays.

IP lobby group IP2Innovate, which includes Daimler, BMW and Intel, said it shares Breton’s view that the patent system needs to be adapted to the digital age and needs a single EU patent.
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Patent law reform strengthens Germany as a location for innovation; Europe needs to follow suit to enhance its competitiveness

Berlin, June 11th 2021 - The Bundestag today adopted legislation to modernise German patent law. The changes are an important step towards creating a better balance between patent protection and innovation protection. European patent law needs to follow Germany’s lead.
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