IP2Innovate

A new academic study by economists at the universities of Bordeaux, Grenoble, and Universitat Pompeu Fabra (Barcelona) highlights how patent assertion entities (PAEs) are continuing to take advantage of weaknesses in Europe’s patent system. The study, entitled Patent Privateering, looks at one specific method of patent abuse. Patent privateering is a term to describe a situation where a patent owner hands patents to a patent assertion entity (PAE) to exploit for mutual benefit, allowing the patent owner to maintain a secret stake in the patents. The study concluded that patent privateering is widespread in Europe. The practise has been around for many years but as other jurisdictions including the US have made it harder, Europe’s patent system is a ripe target for abuse. This is largely because patent courts in Europe do not apply the principle of proportionality, and instead hand out injunctions to patent owners almost automatically.

IP2Innovate

In the paper by Professor Sikorski, titled: Towards a more orderly application of proportionality to patent injunctions in the EU, he proposes changes needed to safeguard Europe’s patent system from abuse by opportunistic PAEs.

IP2Innovate

With Austria signed up, the Unified Patent Court agreement has now been ratified by the required 13 member countries. The dream of forging one single patent jurisdiction for Europe is on course to become a reality, after decades of uncertainty.