Author: Mrudula Mahesh Kale, Student At University Of Mumbai Law Academy
To the Point
The UPC is an ambitious project in the sphere of European patent law that aimed at creating a unified and effective system of litigating on patents in the participating EU members. This new specialized court comes as a result of the signature of the Agreement on a Unified Patent Court (UPC Agreement) which provides for a unified procedure that eliminates certain jurisdictional complexities of previous legal systems. The UPC replaces the inefficiencies deeply embedded in the decentralized national systems; it seeks to offer enhanced legal predictability, lower costs of protection, and consistent enforcement of patents. Nevertheless, the response to its implementation has been mixed, the participation of EU member states in certain aspects of this program is only partial; in addition, there are concerns regarding elaborate procedure.
The UPC started to operate on June 1, 2023, even though its establishment took many years in international negotiations, ratifications, and discussions. It is the judicial backbone of the Unitary Patent System; a new system regulatory the patent protection in Europe. Although the UPC is a positive development toward European integration, it comes with questions about jurisdictions, transition periods, and its potential effect on worldwide patent plans.
Use of Legal Jargon
The Unified Patent Court brings a new supranational, but exclusive jurisdiction over Unitary Patents and, in some cases European patents. The system implemented pursuant to the UPC Agreement, which is the multilateral treaty governed by the participating EU states exercising the enhanced cooperation.
Competence: It deals with, inter alia, infringement, revocation and declaratory proceedings relating to European and Unitary Patents. Another plus on the current national systems is that the court will have a cross-border injunction.
Structure: UPC comprises of the following divisions;
Court of First Instance: This is a decentralised system that contains divisions that handle hearing cases from local, regional and central jurisdictions.
Court of Appeal: It is lodged in Luxembourg and it reassesses decisions of the Court of First Instance.
Registry: B Islamabad The government institution principally in charge of administrative work of the UPC.
Opt-Out Mechanism: In an overall context, holders of patents may choose not to be governed by the UPC for traditional European patents during a seven-year transition period during which they may litigate in national courts.
It answers the long standing issue of forum shopping and differing judicial interpretations across different EU states as witnessed by the introduction of the UPC. Through the generally centralized procedure of its proceedings the UPC helps to avoid unpredictability of the legal regulation of patents enforcement.
The Proof
The UPC emerged from long-staged diplomatic negotiations among the EU member states, due to requirements made in streamlining the patent litigation. Before the UPC, obtaining enforcement of a European patent meant to proceed to judicial litigation across Europe leading to excessive costs and frivolous court decisions. The establishment of UPC together with the Unitary Patent system is in line with the EU overall goal of realizing the single market in IP rights.
Key facts supporting the UPC’s importance:
Ratification and Commencement: UPC Agreement came into force after ratification by at least thirteen EU member states including Germany, France, Italy etc. The operations started on 1st of June 2023.
Cost Efficiency: In eliminating the need to pursue different lawsuits in various jurisdictions, the UPC helps to slash the amount of money required to engage a lawyer.
Legal Certainty: One court decision will be binding on all the member states and therefore will help to harmonise the enforcement of patents.
Accessibility: The UPC establishes a well-defined procedural system that provides some timeframes, and thereby is more favorable for the predictability of patent owners.
The creation of the UPC responds to important issues related to the enforcement of patents in Europe and at the same time contribute to the positioning of Europe as a competitive center for innovation and investments.
Abstract
This paper identifies the Unified Patent Court or (UPC) as a new development in the European patents regime due to the fact that it anticipates a single body for the determination of patent conflicts. Connected to the Unitary Patent system, the UPC synchronises enforcement procedures for the JPPL across the EU member states with a predictable legal environment and reduced costs. As already said the UPC will have a multi-legged judiciary system & is invested with exclusive competence of Unitary Patents & optional competence of classic European patents during the transitional period. Despite these advantages, critics are viable when it comes to filing a case and getting a judgment as certain factors are still apparent like; some of the EU countries are not entirely part of the UPC; there are certain jurisdictional issues; and there are also certain measures which are still likely to bring certain difficulties. This paper discusses the nature of the UPC as well as some relevant advantages and current issues, which are essential to understand in order to expect development of European patent litigation.
Case Laws
Unwired Planet v. Huawei (UKSC 2018/0214)
Facts: The case concerned the licensing of standard-essential patents (SEPs) on Fair, Reasonable, and Non-Discriminatory (FRAND) terms. The dispute raised questions about cross-border enforcement of patent rights.
Relevance: While the case was decided in the UK, it highlights issues the UPC is expected to resolve, such as FRAND licensing and pan-European injunctions.
Storer Trading v. Utopik Pharma (UPC, June 2023)
Facts: In this hypothetical case, a pharmaceutical company filed a patent infringement suit before the UPC’s central division. The UPC issued a cross-border injunction, demonstrating its ability to deliver swift and enforceable decisions.
Relevance: This example underscores the UPC’s role in simplifying and expediting patent enforcement across multiple jurisdictions.
Conclusion
The Unified Patent Court has renamed the European patent litigation, and it provides patentees with a more effective way of defending their patents. As a result, adopting the UPC will effectively solve problems that are related to national litigation since it centralizes patent disputes, promotes legal certainty and innovation. So far its success lies in increasing the number of ‘players’, stakeholder changes, and the issues of jurisdictions.
Since the UPC is capable of delivering cross-border injunctions and coordinating the legal viewpoints, Europe as a market is more favored by its patent owners. There is still cautiousness about opt-outs, language issues, and the complexity of procedures but in the long-term the UPC is expected to redesign the International patents environment. Future research will therefore focus on continued observation of the UPC and its performance relative to its established goals.
FAQS
What is the Unified Patent Court (UPC)?
The UPC is a specialized court with exclusive jurisdiction over Unitary Patents and optional jurisdiction over traditional European patents. It centralizes patent litigation to reduce costs and enhance legal certainty.
Which countries are part of the UPC?
The UPC includes participating EU member states that have ratified the UPC Agreement. Notably, Spain, Poland, and Croatia have not joined the system.
What are the advantages of the UPC?
The UPC simplifies patent enforcement, reduces litigation costs, and ensures uniform decisions that are enforceable across participating states.
Can patent holders opt out of the UPC?
Yes, during a seven-year transitional period, patent holders can opt out of UPC jurisdiction for traditional European patents.
How does the UPC affect patent litigation costs?
The UPC reduces overall litigation costs by eliminating the need for multiple lawsuits in different national courts, providing a single, enforceable decision.
Where is the UPC headquartered?
The Court of Appeal is located in Luxembourg, while the Court of First Instance operates through local, regional, and central divisions across participating member states.
