Call for diverging EU patent rules to be addressed immediately

The absence of an efficient patent system in Europe was highlighted during a conference organised by the Malta Business Bureau and the Parliamentary Secretariat for Small Business & Land. A number of key experts in the field highlighted how diverging EU patent rules are causing the European Union to lose out on innovation.

Experts also highlighted the fact that European enterprises’ research and innovation investments are not duly protected.

Speaking during the event, Mr John A. Huber, President of the Malta Business Bureau, stated that “this matter has dragged on for over a decade. These are timeframes that for the business environment are simply not acceptable. Action is needed. It is needed now! A European patent system truly responds to business needs to reduce costs and cross-border administrative burdens.”

He added that “the inherent structure of the Maltese economy does not lend itself to R&D-intensive set-ups; however there are already a number of success stories in certain sectors, notably the generic pharma-business, the ICT sector and other less known but highly-specialized niche sectors such as marine biology. The adoption of a unified EU patent is nonetheless of critical importance for all business as it is the best evident testament of how the internal market can facilitate the conduct of cross-border business, and how community policies in the area of the single market can enhance commercial competitiveness.”

Parliamentary Secretary, Hon. Jason Azzopardi also addressed the audience, stating that “Intellectual Property is sometimes referred to as ‘hidden value’, but whether hidden or expressly valued, it is now clear that patents, copyright and related rights, trademarks, geographical indications and trade secrets are significant contributors to enterprise value.”

To date, Europe is lagging behind the United States, Japan and other competitors not only in innovation, but also in the costs involved for patent protection. Businesses in Europe have to face legal uncertainties due to divergent rulings in different member states. Counterfeiting and piracy are also costing the European economy billions of Euros every year and furthermore they are hindering the process of innovation, which thus, undermines competitiveness.

The European Commission is proposing two important legislative proposals, which should radically reduce the cost of patents in Europe by up to 80%. This will allow any enterprises to protect their inventions through a single European patent which will be valid in all Member States – with the exception of Spain and Italy – the two countries which to date are against the current proposals.