Unified Patent Court Offers Far-reaching Opportunities for MedTech Companies Finnegan Intellectual Property Law Podcasts
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On June 1, 2023, the new patent system for the unitary protection of inventions in the EU was launched. Companies can now apply for patent applications with unitary effect in currently 17 participating EU countries (EPC states). In addition, patent disputes based on ordinary European patents and Unitary Patents can now be conducted in a centralized manner before the Unified Patent Court. it is already becoming apparent that the new patent system will offer far-reaching opportunities for the medical devices industry as well.
In the field of medical technology, the protection of innovation is key. Research and development incur high costs, which are likely to have risen even further recently due to the mandatory requirements of the Medical Devices Regulation (VO (EU) 2017/745). Therefore, it is all the more important for innovative companies in the sector to be able to protect their valuable inventions and, if necessary, successfully enforce them against competitors.
Until now, European patents could only be validated and maintained individually in the desired member states. Depending on the number of states, the cost of validating a patent can quickly add up over the years. Similar to the centralized CE marking, with the unitary patent, uniform protection for all 17 participating EU countries can now be achieved simultaneously in the EPG states with just one application. This can lead to significant savings in terms of validation costs. In addition, European patents can still be applied for and granted in the EU countries not participating in the unitary patent system. The same applies to the 17 EPC states. For companies seeking patent protection, the selection spectrum has thus become significantly broader.
The Unified Patent Court has also opened up another strategic option for patent litigation in Europe. Classic European patents that have not been withdrawn from the jurisdiction of the new court by their owner and unitary patents can now each be enforced or challenged in one proceeding with equal effect for several European countries. For patent owners, this offers an efficient way to quickly enforce their claims across countries.
Sharp rise in patent applications in medical technology.
A look at the figures shows just how much potential the new patent system holds for the industry: The number of patent applications in the field of medical technology has risen significantly in recent years - by a full 50% since 2010.
With 15,321 European patent applications in 2021 (source: European Patent Office, as of July 26, 2023), the medical technology sector ranks second among the technology sectors with the highest number of applications, directly after the digital communications sector with 15,400 applications.
The German medical technology sector, which most recently generated more than 40 percent of industry sales in the EU (source: "The German Medical Technology Industry," SPECTARIS Yearbook 2022/2023), recorded the second strongest growth in European patent applications (plus 8.1% in 2021 compared to 2020).
In view of the high filing figures, it is likely that patent disputes in the medical technology sector will continue to be fought out frequently in Europe in the future.
New court already attracting proceedings
The new Unified Patent Court is expected to grow rapidly in importance given the advantages it offers companies. Just a few weeks after its launch, companies from the medical technology sector have already filed actions with the Unified Patent Court. Of a total of 29 publicly registered cases, five are from the medical technology sector (as of July 31, 2023). In particular, the German local chamber in Munich, where three of the five lawsuits were filed, is a popular port of call for companies in the medical technology sector.
The global patent dispute between DexCom Inc. and various Abbott Group companies, which was initially filed in both the U.S., U.K. and Germany and is now expanding to the Unified Patent Court,
On June 1, 2023, the new patent system for the unitary protection of inventions in the EU was launched. Companies can now apply for patent applications with unitary effect in currently 17 participating EU countries (EPC states). In addition, patent disputes based on ordinary European patents and Unitary Patents can now be conducted in a centralized manner before the Unified Patent Court. it is already becoming apparent that the new patent system will offer far-reaching opportunities for the medical devices industry as well.
In the field of medical technology, the protection of innovation is key. Research and development incur high costs, which are likely to have risen even further recently due to the mandatory requirements of the Medical Devices Regulation (VO (EU) 2017/745). Therefore, it is all the more important for innovative companies in the sector to be able to protect their valuable inventions and, if necessary, successfully enforce them against competitors.
Until now, European patents could only be validated and maintained individually in the desired member states. Depending on the number of states, the cost of validating a patent can quickly add up over the years. Similar to the centralized CE marking, with the unitary patent, uniform protection for all 17 participating EU countries can now be achieved simultaneously in the EPG states with just one application. This can lead to significant savings in terms of validation costs. In addition, European patents can still be applied for and granted in the EU countries not participating in the unitary patent system. The same applies to the 17 EPC states. For companies seeking patent protection, the selection spectrum has thus become significantly broader.
The Unified Patent Court has also opened up another strategic option for patent litigation in Europe. Classic European patents that have not been withdrawn from the jurisdiction of the new court by their owner and unitary patents can now each be enforced or challenged in one proceeding with equal effect for several European countries. For patent owners, this offers an efficient way to quickly enforce their claims across countries.
Sharp rise in patent applications in medical technology.
A look at the figures shows just how much potential the new patent system holds for the industry: The number of patent applications in the field of medical technology has risen significantly in recent years - by a full 50% since 2010.
With 15,321 European patent applications in 2021 (source: European Patent Office, as of July 26, 2023), the medical technology sector ranks second among the technology sectors with the highest number of applications, directly after the digital communications sector with 15,400 applications.
The German medical technology sector, which most recently generated more than 40 percent of industry sales in the EU (source: "The German Medical Technology Industry," SPECTARIS Yearbook 2022/2023), recorded the second strongest growth in European patent applications (plus 8.1% in 2021 compared to 2020).
In view of the high filing figures, it is likely that patent disputes in the medical technology sector will continue to be fought out frequently in Europe in the future.
New court already attracting proceedings
The new Unified Patent Court is expected to grow rapidly in importance given the advantages it offers companies. Just a few weeks after its launch, companies from the medical technology sector have already filed actions with the Unified Patent Court. Of a total of 29 publicly registered cases, five are from the medical technology sector (as of July 31, 2023). In particular, the German local chamber in Munich, where three of the five lawsuits were filed, is a popular port of call for companies in the medical technology sector.
The global patent dispute between DexCom Inc. and various Abbott Group companies, which was initially filed in both the U.S., U.K. and Germany and is now expanding to the Unified Patent Court,