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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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Other press coverage
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.
Patrick Oliver
Statement in response to publication of the European Commission’s IP Action Plan
IP2Innovate welcomes the European Commission’s efforts to improve the IP landscape in Europe, in particular the emphasis on ensuring that the proportionality requirement in the granting of injunctions is met. However, the IP Action Plan outlined today needs to go further to address continuing abuses of the patent system.
Managing IP
NPEs set sights on UPC and more patent acquisition - Blackbird, Dominion Harbor, Acacia, and Harfang IP say the market is hot for patent acquisitions and that litigation opportunities could soon emerge in Europe
Managing IP’s article outlining the views of Non-Practicing Entities (NPEs) on the Unified Patent Court (UPC) points out that several NPEs are gearing up for the launch of the UPC in the following months because the UPC’s centralised system “would make Europe a much easier place to litigate”. NPEs also argue that UPC would provide for another way to litigate in a “market comparable to China or the US”.