UK intends to stay in the Unitary Patent system post-Brexit

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The United Kingdom wants to stay in the Unitary Patent system post-Brexit. This has been confirmed in the UK’s Brexit White Paper, which was published today.

According to article 151 of the paper, ‘The UK has ratified the Unified Patent Court Agreement and intends to explore staying in the Court and unitary patent system after the UK leaves the EU. The Unified Patent Court has a unique structure as an international court that is a dispute forum for the EU’s unitary patent and for European patents, both of which will be administered by the European Patent Office. The UK will therefore work with other contracting states to make sure the Unified Patent Court Agreement can continue on a firm legal basis.’

A spokesman for UK IPO said: ‘This will need to reflect the change in the UK's status as we cease to be an EU Member State, which will require negotiations with our European partners. We look forward to beginning those negotiations with our European partners so as to ensure the continuing success of this new system.’

He also said: ‘The UPC and Unitary Patent project are an important means of simplifying the protection of innovative products throughout Europe’ and ‘UK participation in the UPC and Unitary Patent will extend the benefits of these systems to businesses operating in the UK.

The UK announcement doesn’t come as a surprise. Since the Brexit vote of 2016, the government has always declared it wants the UK to be a member of the Unitary Patent system. UK ratification of the Unified Patent Court Agreement and related protocols was completed in April 2018.

The announcement was immediately welcomed by the Chartered Institute of Patent Attorneys in the UK.

Still, the Brexit of 29 March 2019 is seen as a potential stumbling block for the UP system, as participation is only open to EU member states and by the time the system launches, the UK might not be an EU member any more. The system was expected to enter into force this year, which would mean the UK, as an EU member, could participate and some provisions would have to be adapted post-Brexit.

But this scenario has become unlikely due to the constitutional complaint against ratification of the UPCA in Germany (one of the obligatory signatories before the UP system can enter into force). The final decision in this case could come somewhere this year – if the Federal Constitutional Court doesn’t admit the case, but otherwise it could take up to a couple of years. In that case, the UK is not an EU member anymore and its membership of the Unitary Patent system would require complicated renegotiations and likely lead to the postponement of the implementation of the system, possibly for several years.

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Comments (8)
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Concerned observer
July 12, 2018 AT 7:09 PM

Can anyone explain to me how it is that the current UPC Agreement could be salvaged if it is not amended (to reflect the changed status of the UK) before 30 March 2019? My understanding is that it is not possible to amend the UPC Agreement before it comes into force. Thus, if adaptations are required in the light of Brexit, it would appear necessary for those adaptations to be made BEFORE Brexit.

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Concerned observer response to Concerned observer
July 16, 2018 AT 10:10 AM

I am disappointed that no one has attempted to answer my query. This is because I have heard repeated assertions (from important or influential quarters) that failure to amend the UPC Agreement before Brexit would not necessarily prove fatal for the UPC ... even if it might complicate things a little. It is just such a shame that none of those from the "optimistic" camp is prepared to explain the legal mechanisms by which the UPC Agreement can arise like a phoenix from the flames of Brexit. Whilst waving farewell to the current UPC Agreement might prove hard for some to stomach, it would at least provide certainty. As we all know, (legal) uncertainty is bad for businesses. I therefore struggle to understand why anyone would want to prolong that uncertainty by making unsupported assertions that, even if it is not amended pre-Brexit, there could still be life in the current UPC Agreement. It would be far better to get the relevant, legal arguments out in the open, so that businesses can make a reasoned assessment of their chances of success.

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Reply response to Concerned observer
July 16, 2018 AT 3:02 PM

Apparently for the governments consider Dec 2020 to be the significant date fir amending the UPCA not March 2019 provided the withdraw agreement is in place and goes more or less according to plan. Draft article 6 of the withdraw agreement says "Article 6 References to the Union and to Member States 1. For the purposes of this Agreement, all references to Member States and competent authorities of Member States in provisions of Union law made applicable by this Agreement shall be read as including the United Kingdom and its competent authorities, except as regards: (a) the nomination, appointment or election of members of the institutions, bodies, offices and agencies of the Union, as well as the participation in the decision-making and the attendance in the meetings of the institutions; (b) the participation in the decision-making and governance of the bodies, offices and agencies of the Union; (c) the attendance in the meetings of the committees referred to in Article 3(2) of Regulation (EU) No 182/2011 of the European Parliament and of the Council4 , of Commission expert groups or of other similar entities, or in the meetings of expert groups or similar entities of bodies, offices and agencies of the Union, unless otherwise provided in this Agreement." Which doesn't expressly refer to international agreements like the UPCA (only to Union law) but I can see why they might consider the UK remains an EU member states for purposes of UPCA during (2019-2020) transition period.

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Russell Barton response to Reply
July 16, 2018 AT 3:24 PM

Art 2 a (v) of the draft withdraw agreement may cover it expressly "Article 2 Definitions For the purposes of this Agreement, the following definitions shall apply: (a) "Union law" means: (i) the Treaty on European Union ("TEU"), .... (v) the agreements between Member States entered into in their capacity as Member States of the Union;" Looking at the recitals of the UPCA, the UPCA would seem to come under that definition but I'm happy to be contradicted if anyone understands that it means something else.

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Concerned observer response to Russell Barton
July 17, 2018 AT 11:32 AM

Hmmmn. I am inclined to concede that this explanation is at least not wildly implausible... though, if relied upon, I have no doubt that it would face many legal challenges and may ultimately be found wanting. However, at this stage, I see two main issues with the proposed "escape route". Firstly, the Withdrawal Agreement is only ever intended to cover a time-limited period. Thus, relying upon that Agreement for the purposes of satisfying relevant demands of PERMANENT provisions of the UPC Agreement (including Article 2(b)) is somewhat questionable. This is not least because bringing the UPC Agreement into force under such circumstances would make it more a matter of luck than judgement that another escape route (that is robust from the perspective of EU law) would be found to cope with the end of the transitional period. Secondly, agreement upon the provisions of Article 4 of the draft Withdrawal Agreement (“Methods and principles relating to the effect, the implementation and the application of this Agreement”) has not yet been reached, even at negotiator’s level. Indeed, the 19 June 2018 joint statement makes it clear that outstanding areas include “consistent application and interpretation of the Agreement by both the Union and the UK and DISPUTE SETTLEMENT”. How (or whether) these outstanding issues are resolved may well prove crucial to the chances of success in relying upon the Withdrawal Agreement as an escape route for the current UPC Agreement. Given the recent influence demonstrated by hard-line Brexiteers on shaping the UK’s negotiating stance, as well as their ideological stance on the sovereignty of the UK (and its courts), I would not place too many bets on things working out well for the UPC.

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