The recently adopted The unitary patent system should support European SMEs and startups and reduce the innovation gap in Europe, according to the European Patent Office, which hopes that more countries will join the system soon.
The system, which came into force in June 2023, was introduced by the European Patent Office (EPO) to grant applicants automatic protection for their inventions in the currently 17 participating countries and is expected to make patent applications easier for SMEs and startups.
“Obtaining a patent is an asset that gives confidence to the investment world,” Luis Berenguer, spokesperson for the European Patent Office, told EURACTIV.
He added that the unitary patent is also “cost-effective” because it significantly reduces the cost of the patent compared to single national applications.
Maintaining the unitary patent would cost its holder 5,000 euros over ten years, compared to 30,000 euros currently, according to the EPO.
System well received
The unitary system has been well received by SMEs and startups because it simplifies the process of protecting their intellectual property rights.
“Anything that allows small businesses to cut costs and reduce paperwork is a good thing,” Eimear O’Carroll, Irish physicist and founder of Lios, told EURACTIV on the sidelines of the European Inventor Award in Valencia The 4th of July.
With his colleague Rhona Togher, O’Carroll developed a lightweight, thin and cost-effective material capable of dampening sound, which was awarded first place for SME inventions by the EPO, and hwhich has already attracted the attention of the European Space Agency.
However, the process to patent their product was lengthy.
“We filed our first PCT (international patent application) in 2010 and our patent was issued in 2016,” Togher said, adding that “it’s a long process, but it’s worth every penny.”
The international patent ensures that no one else can use the invention. However, it must be granted by each nation or region, making the process lengthy.
“Working with all the different intellectual property offices around the world takes time, they are all very different and all have completely different deadlines,” Togher explained.
Both Togher and O’Carroll highlighted the unitary patent as a step in the right direction to ensure SMEs have easier access to patents, at least across Europe.
Slow adoption
However, not everyone is convinced by the new system.
With the unitary patent, disputes take place under a single legal system before the new Unified Patent Court (UPC) and some companies are still hesitant to join the system.
Many companies have taken a “wait and see attitude” to first understand how the new system works, Berenguer said.
Furthermore, so far 17 member states are part of the system, but 10 of them, including Spain, Hungary and Poland, are reluctant to participate for various reasons, ranging from language requirements to questions of sovereignty.
For example, not all countries accept the requirement to file the patent in English, French or German, a rule introduced by the EPO to reduce the costs of translating into other languages.
“But the idea is that other countries will join within the first year,” Berenguer said.
Catching up with the United States
With the UPC, the unitary patent also constitutes a step towards a single jurisdiction, which is the model currently used in the United States.
“The step we are taking in Europe is to create a single territory for the unitary patent system,” Berenguer explained, adding that the United States will likely remain more advanced than Europe in patents due to a different politics and industrial culture.
While European patents are increasing – and expected to reach the 200,000 mark in 2023 – the United States receives slightly fewer. 600,000 patent applications each year.
Additionally, patent applications vary considerably between European countries. For example, Germany has the highest number of patents due to its automotive industry – despite a decline in recent years – while Spain and Greece, whose economies rely heavily on tourism, have lower numbers .
“In the United States, patenting is something that is embedded in the culture of the industry and it is very rare to find research that is not focused on patents. In Europe, research is often carried out with a view to publishing the research itself or scientific development,” said the EPO spokesperson.
There is also a gap in financial support for SMEs in the United States and Europe, according to Togher.
“European countries have been lagging behind America for a very long time,” she said, adding that “private financing could certainly be improved” to complement European funding for startups and SMEs.
“There is a lot more capital there (in the United States), and small businesses and startups have a much greater opportunity to access capital and make greater progress.”
(Edited by Alice Taylor)