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

IP2Innovate

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.

mlexmarketinsight.com

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.

IP2Innovate

On 28 January, IP2Innovate submitted its key recommendations for the upcoming EU Single Market Strategy 2025, highlighting the need to modernize patent enforcement in Europe. In the submission, IP2Innovate stresses that consistent application of proportionality requirement to patent enforcement is essential for the functioning of the Single Market. Modernization of the EU IPR Enforcement Directive through targeted amendments is needed to fully exploit the potential of the Single Market to boost Europe’s productivity. IP2Innovate believes that, after 20 years, now is the time to modernize the IPRED through targeted amendments to ensure that courts in the EU Member States and the newly established Unified Patent Court consistently and effectively consider the proportionality of remedies in their handling of patent litigation cases. Such targeted amendments would ensure the consistent and effective application of proportionality across all EU Member States, creating a more predictable legal environment that supports the free movement of goods and services within the Single Market. By fostering legal certainty and reducing market inefficiencies, these changes will unlock the full potential of the Single Market to drive Europe’s productivity and competitiveness.