<\/span><\/h2>\n\n\n\nAs per the Unified Patent Court agreement rules, patent owners have the option to opt-out their current-style European patents from the jurisdiction of the UPC and remain under the jurisdiction of the national courts. With the current UPC Case Management System, patent owners must opt-out for every single European patent in their portfolio. The same rule applies to all applications pending before the European Patent Office.<\/p>\n\n\n\n
The opt-out option is being looked at as an effective defensive strategy since revocation by a single authority (UPC) can render European patents with unitary effect revoked across a big chunk of the continent. However, patent owners going for the opt-out option will also miss reaping the benefits of Unitary Patents. <\/p>\n\n\n\n
The Unified Patent Court will share jurisdiction with national courts till the end of a transitional period \u2013 seven years from the date of UPCA coming into effect. This transitional period may be extended once for a period of up to seven years. Post the expiry of this transitional period, only UPC will govern jurisdiction over European patents (either Unitary Patents or current-style European patents).<\/p>\n\n\n
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Figure 2: UP and UPC Timeline<\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<\/span>Is Sunrise Period Critical?<\/span><\/h2>\n\n\n\nThe sunrise period will provide a window for patent owners to file opt-out applications and remove their European patents and patent applications from the exclusive competence of the Unified Patent Court. The opt-out option will be available from the commencement of the sunrise period till the conclusion of the transitional period. The option is no longer available to a patent owner once an action has been brought against their patent or application before the UPC.<\/p>\n\n\n\n
<\/span>Benefits of UP and UPC<\/span><\/h2>\n\n\n\nThe benefits of the Unitary Patent system are explained below:<\/p>\n\n\n\n
\nCost Saving: <\/strong>The annual cost of renewing a Unitary Patent is equivalent to the cost of renewing patents in four European countries. Thus, businesses seeking wide protection for their innovations can advantageously apply for unitary effect for their patents. Additionally, the new system will also help applicants save translation and validation costs.<\/li>\n\n\n\nPan-European Union Enforcement: <\/strong>The single court system eliminates scenarios with conflicting decisions from different judiciaries within the participating countries. Also, it makes it possible to seek relief at one spot despite infringement taking place in a range of separate territories.<\/li>\n\n\n\nQuick Resolution: <\/strong>Patent infringement cases can stretch several years depending on the jurisdiction, discouraging companies from engaging in litigation. However, the Unified Patent Court aims to resolve cases within a year. Combined with the broad jurisdiction of the court, the quick resolution of cases will assure businesses regarding the protection of their IPs.<\/li>\n\n\n\nExcellent for Small Businesses: <\/strong>Thevarious aspects of the new patent regime make it greatly beneficial for small and micro-businesses with limited resources at their disposal. Moreover, small and micro-businesses are also entitled to reduced court fees, adding to their delight.<\/li>\n\n\n\nEnglish as Primary Language: <\/strong>All Unitary Patents will have an English version. This is a great benefit for companies from English-speaking countries as this will save them translation costs. Further, in most, if not all, of the participating UPC local and central divisions, English may be used as the language of the proceedings.<\/li>\n\n\n\nSimple Process: <\/strong>The emergence of the Unitary Patent and Unified Patent Court has certainly made things simple for applicants, plaintiffs as well as defendants.<\/li>\n<\/ul>\n\n\n\n<\/span>Threats, Challenges and Opportunities Emerging with the New System<\/span><\/h2>\n\n\n\nThe new system is expected to pose threats, challenges, as well as opportunities. Let\u2019s take a look at this for different stakeholders.<\/p>\n\n\n\n
\nFor Litigators: <\/strong>The establishment of the UP and UPC will draw the attention of companies toward international litigators with specialization or expertise in international patent law. It will also persuade law firms to go international by limiting\/eliminating the jurisdiction of national courts over European patents. Further, not only attorneys-at-law but also European Patent Attorneys may represent before the court.<\/li>\n<\/ul>\n\n\n\n\nFor Applicants: <\/strong>The Unitary Patent and Unified Patent Court have created several dilemmas for applicants as they must now answer several questions for each old and new EP in their portfolio. For instance, they must decide the extent of protection they need for their innovation, the markets they wish to explore, maintenance costs, strengths and weaknesses of their patents, their commercial value, and more.<\/li>\n<\/ul>\n\n\n\n\nFor Patent (Law) Firms: <\/strong>Patent firms must also adapt to the new regime. They must start with training their attorneys and paralegals regarding the latest patent system. Patent\/law firms should also connect to and prepare a docketing system for the procedures before the UPC.<\/li>\n<\/ul>\n\n\n\n<\/span>Final Thoughts<\/span><\/h2>\n\n\n\nYears of efforts will soon come to fruition with the establishment of the Unitary Patent and Unified Patent Court. This tectonic shift in the European IP regime has its challenges as well as opportunities for businesses. Patent holders and innovators ought to start reanalyzing their patent strategies right away. Amongst the most critical tasks for companies is to decide whether they should go for unitary effect for their patent or stay with the current system. A further important task is to consider whether or not to submit opt-out requests. Thus, a thorough analysis of every EP in the portfolio is essential, based on business strategy as well as the impact of each individual patent. Sagacious IP can help your business prepare for the upcoming patent regime. Visit our Unitary Patent and Unified Patent Court Services<\/a> page to learn about our expertise.<\/p>\n\n\n\n– The Editorial Team<\/p>\n\n\n\n
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