'Brexit' to impact European IP rights, attorney says

By Sheila Pursglove
Legal News

The surprise “Brexit” result in the recent UK referendum is already causing major political, economic and social turmoil.

It also will impact European intellectual property rights, noted Monte Falcoff, a patent lawyer and principal with Harness Dickey in Troy.

“Once the UK legally exits the EU, the strategies will change for future patent enforcement, and trademark and industrial design protection,” he said.    

The commonly used European Patent Office (EPO), which examines and grants patents nationalized in applicant-selected European countries, is set up by the European Patent Convention, entirely distinct from the EU.

“Some non-EU countries, such as Switzerland, are EPO members,” Falcoff said. “Brexit will not affect the inclusion of the UK as an EPO member and the ability of patent owners to nationalize their EPO patents in the UK.”    

According to Falcoff, problems loom for the soon-to-be implemented European Unitary Patent — allowing a patent owner to enforce its EPO patent throughout all EU countries based on a single court proceeding — and for the Unified patent court system, created by, and to be run by, the EU.     

Three trial courts were set to begin next year: London for chemistry and pharmaceuticals, Munich for mechanical, and Paris for all others including electrical and telecommunications.

An implementation delay is now expected and the trial court earmarked for London will probably instead be seated in Italy, Europe’s fourth largest economy.    

On a more strategic level, patent owners may reconsider if they will enforce a patent through the Unitary Patent system without the UK versus enforce it country-by-country as is currently done, Falcoff said.     

“Typically,” he said, “a company will currently pick the country of most damages or injunctive value, or the one with the most pro-patentee laws, to bring the first law.

Falcoff said some corporate executives of his continental European clients “are hopeful Brexit will cause the EU to reduce its bureaucracy and use more common sense for its future regulations.”

Falcoff will get an up-close-and-personal look at the mood in the UK during an upcoming London trip.
 

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