Entries by Jacopo Maria Orsi

European Patent with Unitary Effect

The new ‘Unitary Patent’ regime

Our civilisation is characterised by continuous evolution generated by human’s constant work of ingenuity, which allows reality to be shaped by tending to improve on the advantageous conditions hitherto achieved. From a legal point of view, invention has the task of explaining how a new, useful result is technically obtained, which enriches collective knowledge. 

The valuable contribution made by the inventor encourages the community to ‘reward’ the inventor by granting the right to exclude others from exploiting the invention for a fixed period of time. The duration takes into account the time needed to remunerate the effort expended, without disincentivising general technological development.  

This is the ratio behind the institution of the patent, which the Italian Patent and Trademark Office (UIBM) specifically attributes only to technological innovations with industrial application, which are presented as new, original and concrete solutions to a technical problem.

According to the principle of territoriality, this exclusive right is only effective within the issuing state. Therefore, if an inventor (individual, company or institution) is interested in exploiting the patent only in his national territory, may file the application at the UIBM following the prescribed procedures. If, on the other hand, it is interested in protecting the invention in more than one Member State, it may file a patent application with the European Patent Office (EPO), through the competent national offices. In that case, the owner of the invention with a single application may obtain recognition of the right to the invention in the states designated by him, which are parties to the European Patent Convention (EPC) . Once the procedure has been validated, a bundle of patents with effect in the chosen countries will be granted, each of which will be subject to its own national rules on infringement. 

The implementation of this system, the complexity and high costs involved in filing and maintaining a patent, result in a significant competitive disadvantage for companies, which prefer to obtain a patent right in a limited number of countries, exposing the invention to the risks of exploitation by others. 

To overcome these drawbacks, the EU passed a series of legislative measures with the aim of creating unitary patent protection. The result was the creation of the European patent with unitary effect (so-called unitary patent), the aim of which is to guarantee, against payment of a single fee, a single, uniform right that can be simultaneously extended to up to 25 Member States . In addition to simplifying the granting procedure and reducing costs, the protection of the unitary patent is uniform for each country and subject to the jurisdiction of the Unified Patent Court, avoiding the possible initiation of parallel litigation in the different national jurisdictions.

The regulation of the unitary patent is not envisaged as a substitute for the European patent, but rather as a complement to it, leaving the owner of the invention the choice of which level of protection to apply for. It is therefore a strategic assessment based on several factors, including, for example, the markets of interest. 

Such a system can only be operational after the entry into force of the Agreement establishing the Unified Patent Court (UPC), scheduled for June 2023.

In order to adapt the current rules to the new discipline, the so-called sunrise period will begin on 1 April 2023, during which the owners of a European application or patent will have to decide whether to exercise the so-called Opt-Out option, through which it is possible to prevent the automatic attribution of jurisdiction in disputes to the CTI, leaving jurisdiction to the courts of the individual countries

Notes
  1. Pursuant to Art. 45 CPI.
  2. Drafted in a language of your choice between English, French and German.
  3. The Convention regulates a common discipline of the contracting states regarding the granting of the European patent and establishes a European Patent Organisation, which is responsible for granting the patent right through the European Patent Office.
  4. EU Regulation No. 1257/2012 on enhanced cooperation in the area of the creation of unitary patent protection; EU Regulation No. 1260/2012 on enhanced cooperation with regard to the applicable translation arrangements; Agreement establishing the Unified Patent Court for the settlement of disputes concerning European patents and European patents with unitary effect. 
  5. here are currently 17 countries participating in the unitary patent regime: Austria, Belgium, Bulgaria, Denmark, Estonia, Finland, France, Germany, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovenia and Sweden. Seven more states will join following the completion of certain required legislative procedures: Cyprus, Czech Republic, Greece, Hungary, Ireland, Romania and Slovakia. 
  6. It should be noted that initially, depending on the states that have transposed Council Agreement No. 2013/C 175/01, there will be several generations of unitary patents with different territorial coverage that will remain invariable for the duration of the design right.
  7. In the case of patents co-owned by two or more owners, as is the case, for example, with patents developed collaboratively between a company and a university, one point of attention is that the Opt-Out choice must be made by all patent owners.
  8. In fact, the Unified Patent Court, once established, will have jurisdiction together with national courts on disputes concerning both unitary and European patents for a transitional period (7 years). 

Annual Market and Competition Law

Some novelties on the simplification of administrative regimes for companies.

The Annual Market and Competition Law 2021 (No. 118/2022) entered into force on 27 August. In addition to being enacted in compliance with Article 117, paragraph II, letter e) of the Constitution, it is among the objectives included in the NRP, which considers the protection and promotion of competition as essential factors for fostering efficiency and economic growth, removing regulatory obstacles of a regulatory or administrative nature, and ensuring consumer protection.

There are several regulatory interventions, including the extension of powers in the field of antitrust activities, in particular regarding the investigative capacities of the AGCM , the fight against the abuse of economic dependence with reference to the digital sector , the settlement instrument (so-called settlement ) for the closure of investigative proceedings concerning restrictive practices and abuse of dominant position. In addition to these, the Act also contains several provisions aimed at simplifying the administrative activities of individual companies.

In this regard, Article 26 delegates the Government to adopt legislative decrees (within 24 months) in order to identify new administrative regimes for private activities and to simplify and digitally re-engineer the related administrative procedures. The objective appears to be to identify and typify private activities subject to different regimes to eliminate unnecessary administrative burdens in compliance with the principles of EU law on access to service activities and in such a way as to reduce the administrative burden on businesses. For the implementation of this simplification activity, the regulatory provision identifies a number of criteria and guiding principles, including the possibility of delegating a natural person or a self-employed professional to take care of the fulfilments with the public administration, as well as reducing the time of the authorization procedures for the start-up of the business activity.

Article 29 provides for the regulation of the single communication for the creation of a company , reducing from seven to four days the deadline within which the competent administrations are to communicate, electronically, to the interested party and to the business registry office the further definitive data relating to the registered positions.

Dr. Jacopo Maria Orsi



Consult the vocabulary

1 The AGCM may at any time request undertakings and entities in its possession to provide information and to produce useful documents (also outside investigation proceedings). Such requests must indicate the legal grounds on which they are based, must be proportionate and shall not oblige the addressees to admit to an infringement (Article 35 of Law No. 118/2022).

2 In order to avoid abuses of economic dependence in the sector, a relative presumption of economic dependence is introduced in the event that a business uses the intermediation services provided by a digital platform that plays a decisive role in reaching end users or suppliers, including in terms of network effects or data availability (Article 33 of Law No. 118/2022).

3 An instrument that allows companies subject to cartel and abuse of dominance investigations to close the proceedings with a settlement, obtaining a reduction of the fine in exchange for an acknowledgement of participation in the infringement. The Authority may decide at any time to discontinue settlement discussions altogether if it considers that their effectiveness is in any case compromised. (Art. 34 L. No. 18/2022).

4 Single communication is an IT practice that simplifies the relationship between businesses and the P.A. By turning to a single telematic pole (the Company Registry) with a single procedure, the interested party can fulfil its obligations vis-à-vis the Chambers of Commerce, the Revenue Agency, INAIL and INPS.