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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

IP2Innovate's statement on the Commission's intention to withdraw the SEP Regulation

BRUSSELS, 12 February 2025 - IP2Innovate's statement on the Commission's intention to withdraw the SEP Regulation IP2Innovate expresses deep concern over the European Commission's intention to withdraw the Standards Essential Patents (SEP) Regulation. This last-minute decision would represent a significant setback for Europe's innovation ecosystem, including for a large number of European SMEs, and sends a troubling signal to innovative businesses that rely on predictable and fair SEP licensing frameworks. The Commission’s justification for withdrawing the proposal, citing the absence of a “foreseeable agreement,” is misleading. The European Parliament has adopted a negotiating position with an overwhelming majority. On the Council's side, several working group meetings have already been scheduled, including one for February 27, which would have allowed further discussion on this important issue. The current patent system in Europe urgently needs modernisation to bolster the region's competitiveness and innovation capacity. The lack of transparency and fairness in SEP licensing, combined with the absence of the application of proportionality to patent infringement cases, continues to impede innovation and ultimately diminishes the benefits of interoperability for European consumers. We strongly urge the Member States and European Parliament to reject this proposal for withdrawal and demonstrate their commitment to progressing this vital file. Looking ahead, we call upon the Commission to modernise the existing patent framework that applies to both SEPs and non-SEPs alike. This should include targeted amendments to the IPR Enforcement Directive, particularly concerning remedies for patent infringements. Such reforms are essential to strengthen Europe's competitive position in the global innovation landscape.

Industriekoalition IP2Innovate fordert Patentrechtsreform zur Förderung von Innovation in Deutschland

Das Patentrecht ist ein wesentlicher Eckpfeiler für Innovation und – damit verbunden – für nachhaltiges Wirtschaftswachstum. Es kann dieser Rolle allerdings nur gerecht werden, wenn es die Entwicklung und das Inverkehrbringen komplexer, multifunktionaler Hightech-Produkte wie Autos, Telefone und medizinische Geräte unterstützt. Dies tut das deutsche Patentrecht derzeit nicht! Hauptmangel: Unterlassungsklagen werden automatisch erlassen, ohne alternative, geeignetere Rechtsmittel zu prüfen. Diese Situation schadet der deutschen Industrie.
The Wall Street Journal

A Push to End Germany’s Status as ‘Paradise for Patent Trolls’

Apple and Nvidia have joined German companies advocating for legislation to make the country a less attractive destination for NPEs.
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