the future of the patent system in europe: nostalgia is not a good adviser epip conference, lund

1

THE FUTURE OF THE PATENT SYSTEM IN EUROPE:

NOSTALGIA IS NOT A GOOD ADVISER

EPIP Conference, Lund

Alison BrimelowPresident of the EPO

September, 2007, Lund

2/18

Italian Presidency / European Commission Conference 2003 "IP Quo Vadis?"

• "Business as usual"

• "If only they understood"

• "We may have a problem here"

3/18

European filings

Euro-direct Applications

61 002

Euro-PCT Regional Phase

74 181

European Applications

135 183

Euro-PCT International

Phase 147 500*

Total Filings 208 502

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

100 000

110 000

120 000

130 000

140 000

150 000

160 000

170 000

180 000

190 000

200 000

210 0001978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

* WIPO estimate

4/18

• Globally, patent systems face a boom in filings…– Globalization of markets, – Harmonization of patent systems (PCT,…)– New and dynamic countries in the arena (BRICS)– New technologies (Bio, nano…)– New actors (SMEs, universities)– New management of R&D: open innovation– New strategies (portfolio, thickets, flooding, standards…)– Active promotion of patenting by governments e.g. Japan

• Growth much stronger than growth in R&D

5/18

Increase in backlogs = increase in uncertainty + scope for new games

6/18

Audi’s recent A6 ad campaign claimed:

« To date NASA has filed 6,509 patents. In developing the A6, Audi filed 9,621 ». Patenting is identified as a proof of innovation...

7/18

The Scope-Year index...The average value of EP patents has decreased by 9 SY

Source: van Pottelsberghe and van Zeebroeck (2008)

37

39

41

43

45

47

49

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

Year of filing at EPO

Ave

rag

e S

cop

e-Y

ear

Ind

ex

SY(10,10) from the date of filing

8/18

And EPO performance has some weak points

• Productivity

• Unit costs

• 2005 and 2006 results - € 70 m

9/18

On the other hand...

10/18

EPO strategic debate

• European office strong centre = focus on core business

• Developing role of National Offices in a changing world

• Engaging with how to utilise

11/18

Strategic Renewal

• Raising the bar • The future of work and working • Managing Performance• The European Patent Network• E2E• Governance

12/18

Scenarios - thinking about "what if" globally -

and here are some ways forward.

13/18

Costs

London Agreement

EPLA/Community Patent

EPN/Trilateral/3+3 (re-use of work)

Procedural Efficiency

Financial IP-support for SMEs

Challenge Operational Tools Most relevantScenario(s)

14/18

QualityWorkload

• Fee Policy (Shift to Upfront)

• Fee Policy (Fees as a function of examination time)

• Restrict possibility for divisionals

• EPN

• Applicant Training

• Trilateral

• 3+3

• Peer Review (peer-to-patent)

• Publication of reasoned votum for grant

Challenge Operational Tools Most relevantScenario(s)

15/18

• Request for examination by third parties (+ deferred examination)

• Credit for Refusals

• Efficient procedures

• Increased threshold for inventive step/sufficiency of disclosure/clarity

• Quality control (internal/external audits

QualityWorkload(continued)

Challenge Operational Tools Most relevantScenario(s)

16/18

Blockage

• Consistent high quality

• Reduced scope of rights (e.g. patent term, limits to injunctions, compulsory licensing, license of right)

• Fixation of patent rights to the extent of usage by patentee

• Broadening of exclusions from patentability

Challenge Operational Tools Most relevantScenario(s)

17/18

Ethical, political debate

• Regular dialogue with all stakeholders

• Advisory boards

• Involvement of national and EU parliaments

• Intensive contact with international bodies (WHO, WIPO, WTO)

• Contact with competition and standard governing bodies

Challenge Operational Tools Most relevantScenario(s)

18/18

Time to abandon nostalgia and deliver some change

EPC @ 30