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"An incomplete European patent system puts European businesses at a competitive disadvantage"
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The European Commission has expressed its support for rapid introduction of the Community patent to strengthen the competitiveness of European industry across the world. Speaking at the European Patent Forum at the European Patent Office (EPO) in Munich, Günter Verheugen, Vice-President of the Commission said in his keynote speech : "European businesses now face unparalleled global competition. But Europe has a patent system which, over the patent term of twenty years, is nine times more expensive than its US and Japanese counterparts. That is not acceptable."
The Commissioner said that the way forward for Europe as a participant in the global economy lies in quality-oriented innovation: "We need new technologies, products and processes that give us a competitive advantage over others. There is no alternative to economic competition."
However, Mr Verheugen emphasised, "It is wrong to assume that innovation nowadays can still come from thousands of Einsteins inventing in isolation. Innovation needs to be organised and managed, and also needs a favourable regulatory framework in patenting." In terms of encouraging innovation, the present system of intellectual property protection in Europe is inadequate. "Lack of awareness of IP, cumbersome and expensive procedures for obtaining protection, concerns about disclosure requirements in patent applications, and problems in enforcement, are among the reasons why many businesses are hesitant in protecting their industrial property." Activities of the EC to promote the use of IP protection include training measures for organisations and authorities dealing directly with SMEs, such as chambers of industry and commerce, innovation agencies and centres for technology transfer, following the suggestions listed in the Marchant Report presented at the EC's Patinnova Conference which took place during the two-days event at the EPO.
"But for most companies, the costs of patenting are an issue, too", Commissioner Verheugen explained, in view of the fact that 90% of Europe's SMEs have fewer than ten employees. "We have to learn from the mistakes made as a result of short-sightedness. My proposal to support the European economy is to have the London Agreement ratified by all member states, and to have a European patent judiciary set up, in order to achieve rapid implementation of the Community patent, which is indispensable." At a press briefing Mr Verheugen said that he believed this could be done within five years.