Article 44

ADMINISTRATIVE COUNCIL

Report on the 183rd meeting of the Administrative Council of the European Patent Organisation (Munich, 24 and 25 June 2025)

The Administrative Council of the European Patent Organisation held its 183rd meeting in Munich in a hybrid format on 24 and 25 June 2025 under its Chairperson Josef KRATOCHVÍL (CZ).

After the Chairperson's activities report, the Council noted the Office's Annual Review, presented with a video illustrating the Office's major achievements for 2024 in the implementation of SP2028. The Council congratulated the President and the staff on the impressive results and welcomed the focus on concrete quality actions in dialogue with users, the positive development of the EPO funding level and the development of further KPIs. The Office's prudent approach and strategic direction were acknowledged too, including the notable results achieved in productivity, the increase in staff engagement, the commitment to long-term financial sustainability, the progress made in digital transformation, and the deepened co-operation with national offices.

The Council decided to elect Mr Panagiotis KANELLOPOULOS (GR) as member of the Board of the Administrative Council, with effect from 24 June 2025. It also decided to appoint Ms Zane PĒTERSONE (LV) as alternate external member of the Boards of Appeal Committee for a renewable term of office of three years, with effect from 24 June 2025.

In closed session, the Council unanimously decided to launch a call for candidates for an English-speaking member of the Board of Auditors and decided on the composition and setting up of the selection board. It also agreed to decide on the reappointment of the President of the Boards of Appeal in its October meeting. Further, the Council decided on the appointment and reappointment of chairpersons and members of the Boards of Appeal and of the Enlarged Board of Appeal, based on proposals by the President of the Boards of Appeal. Finally, the Council unanimously decided on the early termination of the lease agreement for the 8inOne building in Haar, Munich.

Turning to diversity and inclusion, the Council unanimously adopted a proposal to modernise the EPO legal framework around parenthood based on inclusivity, flexibility, and fairness. Delegations noted that the new scheme would ensure that all forms of parenthood are treated equally and provide additional support for single parents, secondary caregivers in exceptional circumstances, and families facing challenging situations.

Furthermore, the Council gave a favourable opinion on the proposal for an update of the EPO Validation Policy to reflect the evolution of the system over the past 25 years, bringing benefits for both users and partner countries, which will always be based on the Council's authorisation prior to the launch of negotiations with potential validation partners. Various aspects of the proposal were discussed, including the proposed selection criteria for potential validation partners, financial and political considerations in fee distribution, and the importance of maintaining flexibility through a case-by-case approach.

The Council then took note of the Office's report on the processing of divisional applications and welcomed the Office's commitment to ensuring legal certainty, transparency, and timely handling – particularly in response to concerns about their strategic use in the health sector – while also acknowledging that most applicants use divisionals responsibly.

Turning to operational matters, the Council unanimously adopted amendments to the Service Regulations regarding change of place of employment, which aim to enhance internal mobility and work-life balance while remaining budget neutral, taking into account feasibility and existing agreements with the Office's host countries. The Council also unanimously adopted amendments to the EPO's legal framework governing the Salary Savings Plan to ensure legal consistency and simplify and modernise existing provisions.

Turning to financial matters, the Council noted the opinion of the Board of Auditors and approved their report, along with the EPO's accounts for 2024, and therefore discharged the President under Article 80(5) FinRegs and the Fund Administrator under Article 7(1) RFPSS Regs and Article 80(4) FinRegs. The Council also noted the positive new developments in both the planned IFRS standardised operating result and in the expected cash flow, and gave a favourable opinion on the initial budgetary orientations for 2026, welcoming the Office's prudent financial planning, digitalisation efforts, and focus on long-term sustainability.

Finally, the Council noted the reports from the chairpersons of its various advisory bodies on their recent meetings, namely of the Budget and Finance Committee, the Technical and Operational Support Committee, Supervisory Board of the Reserve Funds for Pensions and Social Security, and the Select Committee.

Regarding the Unitary Patent, the Council was updated by the Office on the latest developments and was briefed by the Registrar of the Unified Patent Court (UPC), including on the Patent Mediation and Arbitration Centre (PMAC). It also noted the status report by the Polish and Danish delegation, the member states holding the EU presidency for the first and second half of 2025 respectively, and the intervention by the European Commission.