Patent Litigation in Europe- Presence and Future –

Innovation Support Training Program (ISTP)Module 2 / November 27, 2006

Christian W. AppeltGerman and European Patent and Trademark Attorney

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Patent Litigation Procedures

• Territorial Rights• Enforcement in principal national• National Court Systems vary

(DE: 13 specialized District Courts)• Effect generally only nation-wide

• Cross-Border Litigation in Europe ?• Related Patents, national parts of EPC

patent• Defendant domiciled in country of dispute• Remarkably restricted by recent dec. ECJ

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Jurisdictions

• Key jurisdictions:UK, Germany and the Netherlands

• Important jurisdictions:France, Italy and Spain

• No deposition, no extensive discovery• No juries

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Courts and Judges

• UK: Patents County Court and Patents Court• Germany: bifurcated

– Invalidity actions – specialist Federal Patent Court in Munich

– Infringement actions: special chambers hearing IP actions, 50 per cent in Düsseldorf

• Netherlands: specialist exclusive jurisdiction for patents

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Discovery/Disclosure

• UK: most like the US – unlike rest of Europe:– Mandatory obligation, search limited by

proportionality– Implied undertaking: disclosure cannot be used for

other purposes• Germany: historically, no provision for any discovery,

although:– Inspection of the allegedly infringing device is

possible in principle– New powers to order production of relevant

documents

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Financial Compensation

• Purely compensatory: no triple damages• UK, Germany, Netherlands, Spain:

– Damages (reasonable royalty, profitsgained, profits lost) / an account of profits

• France and Italy: – Damages, no account of profits

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Infringing Activities

• Products:– Manufacturing– Offering / Selling– Import/Export– Use of patented product– Damages, no account of profits

• Method:– Use– Product being manufactured by protected method

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Article 69 EPC and Protocol

Article 69(1) EPC

• The extent of the protection conferred by a European

patent or a European patent application shall be

determined by the terms of the claims. Nevertheless, the

description and drawings shall be used to interpret the

claims.

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Article 69 EPC and Protocol

Article 69 (Protocol)

• Article 69 should not be interpreted in the sense that the extent of the protection conferred by a European patent is to be understood as that defined by the strict, literal meaning of the wording used in the claims, the description and drawings being employed only for the purpose of resolving an ambiguity found in the claims.

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Article 69 EPC and Protocol

Article 69 (Protocol)• Neither should it be interpreted in the sense that the

claims serve only as a guideline and that the actual protection conferred may extend to what, from a consideration of the description and drawings by a person skilled in the art, the patentee has contemplated.

• On the contrary, it is to be interpreted as defining a position between these extremes which combined a fair protection for the patentee with a reasonable degree of certainty for third parties.

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Infringing Activities

• Literal Infringement:– All features of at least one claim are realized

• Equivalent Infringement:– One or more features of the claim are realized by

equivalent means

• Direct Infringement• Indirect Infringements

– Essential elements of the invention are provided

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Defense Argumentation - I

Product does not infringe• Out of scope of protection

• Slightly dependent on jurisdiction• Language? (national, max: language of proceedings)

• (patent) right “exhausted”

(Patent) right is not valid?• Country / IPR dependent

• DE: Utility Model (unexamined) (+)• DE: Patent (national/EPC) (-)

• Separate Invalidation / Nullity procedure• Generally nation-wide (but, EPC-opposition)

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Defense Argumentation - II

Prior Use Right• Not freely transferable

• Can be “sold” with the complete business• Amendments might be restricted

Research Exemption

Exhaustion of Patent Rights• Internationally: No• EU-common market exhaustion

Product/Method is within the Prior Art• Only in case of Equivalency

DE: Formsteineinwand

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Time Frame and Costs

Extremely Country Dependent (DE….IT, US,…)• 1st instance decision: 1-5 years• 2nd instance decision: 1-5 years

Cost risk• Generally dependent on “amount of dispute”• Losing party has to reimburse cost/fees?

• DE: 1 year, Euro 100.000 to 250.000 cost risk• reimbursement

• US: 2..3 years, each year US$ 400.000 to 1.000.000• No reimbursement

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Interlocutory Injunction

• Einstweilige Verfügung (Germany)– Schutzschrift (Protective Writ)

• Action en referée (France)• Kort geding (summary proceedings to obtain a

preliminary injunction (Netherlands)• Provisional injunctive measures (Belgium, Spain,

Italy, Denmark, Sweden)

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European Patent Litigation Protocol

• ‘European patent’ is a bundle of national patents • Litigated in national courts and under national patent

laws• Group of EPC contracting states are negotiating a

protocol for a single court system – Includes UK, the Netherlands, Germany, France

• Objective: to create single 1st and 2nd instance courtfor infringement and validity

• Leaves some issues for national courts– Enforcement– Interlocutory injunctions

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European Patent Litigation Protocol

• EPC Patents– EPLP 4th Proposal (WPL/SUB 2/02, 31/05/02)

EP Patent Court Structure• Court of First Instance

– Central Division (Luxembourg?)– Regional Divisions

• Court of Appeal– Central (Luxembourg?)

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EPLP – Regional Divisions

• National or Regional• At Start: max. 1 per Country• After 3 Years: up to 3 per Country/Region

– if more than 100 cases annually heard in Country/Region• Certainly Germany !

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EP Patent Court Competence

• Litigation– with Effect for all Countries chosen

• Revocation/Invalidation– with Effect for all Countries chosen

• Countries involved to be chosen by Plaintiff

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Miscellaneous Provisions

• Languages English, French, or German– depending on EPC Language of

proceedings• 7 years Transition Competence of national

Courts• Effects of Decisions only nationally• EP Court considered as „National Court“ for

EU (Art. 234 EU Treaty)

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Problems ….

• For initial 3 years: Only 1 Regional Division, e.g. in Germany

• No factual arguments in Appeal• No sole representation by Patent Attorneys,

even in Invalidation Actions

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Further Questions ?

Contact me at:

Appelt@Boehmert.deChristian W. AppeltBoehmert & BoehmertPettenkoferstr. 20-22D-80336 MunichGermanyTel.: + 49 – 89 – 55 96 80Fax: + 49 – 89 – 34 70 10