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Unitary Patent Package – The Ratification Game (The UK completes its ratification formalities)

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Update (26 April 2018)

According to the website of the Council of the European Union (and just about every other official IP channel), the UK deposited its instrument of ratification (on 26 April 2018) to become the 16th country to complete its ratification formalities. The UK joins Latvia, Lithuania, Estonia, Italy, the Netherlands, Bulgaria, Finland, Portugal, Luxembourg, Malta, Denmark, Belgium, Sweden, France and Austria as one of the sixteen countries who have completed their ratification processes.

The unitary patent system requires 13 countries to ratify, including the UK, France and Germany. However, the German Constitutional Court challenge has thrown the timescale and the long term future of the unitary patent system into doubt.

There are now enough countries to have ratified the unified patent court agreement that the system will come into effect if Germany completes its own ratification procedures and sufficient approvals to the PPA are obtained.

Now that the UK has completed all of the formalities we have updated our ratification infographic (for an answer to the question “What’s up with this infographic?“, please see the bottom of the post!”).

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Unitary Patent Package – Timeline of events for 2013/2014

EU flagThe much heralded unitary patent package* appears to be moving towards implementation after many years of proposal and counter-proposal.

Looking ahead, the various parts of the package are likely to come into force in 2014 (according to the official timescale anyway). Over the coming 12-24 months, there are a number of keys dates to note.

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Unitary Patent Package – does Article 47(5) of the UPC Agreement hardcode bifurcation?

Europe flagOne of the most frequently-discussed concerns regarding the unified patent court agreement is the possibility of bifurcation*. This has, in turn, lead to concerns in some quarters that local divisions of the unified patent court could set themselves up to be patent proprietor friendly but send validity counterclaims back to the central division. In such scenarios, the argument goes, a patent owner could secure an injunction in the local division based on the issue of infringement that would have effect across the whole of the unitary patent area before validity has even been heard in the central division.

Regardless of the above “doomsday” scenario, however, it is noted that according to the UPC agreement the defendant will be able to raise validity as a counterclaim within an infringement action. It will then be up to the local division in question as to whether they hear both infringement and validity (I&V) or whether they kick the validity part of the action back to the central division (and thereby create a bifurcated case). [This IPcopywriter has assumed (probably naively) that local divisions will probably follow the practice of the country within which they are set up.]

However, on a review of the final text of the UPC agreement, we have come across a particular scenario, written explicitly into the agreement, in which the defendant is apparently not even able to raise validity as a counterclaim in an infringement action. We are referring to Article 47(5) UPC agreement and the scenario where an exclusive licensee brings an infringement action.

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