21.2.2017

The Unified Patent System – Where Do We Stand Now?

Lately, there has been a lot of discussion around the UPC and European patents with unitary effect. But what is the UPC and what does it mean in practice? What are European patents with unitary effect and how do they differentiate from the traditional European patents?

Towards an Enhanced European Patent System

First of all, the UPC relates to the European-wide patent reform. The UPC, which is an abbreviation for the Unified Patent Court, is a planned single patent court covering 25 EU member states. If established, the UPC would be a common court to all member states contracting to the Unified Patent Court Agreement.

The purpose is that the UPC would have exclusive jurisdiction over both future European patents with unitary effect, European patents validated in one or more EU member state which is a party to the Unified Patent Court Agreement, supplementary protection certificates issued for a product covered by such a patent and European patent applications − the jurisdiction, however, being subject to certain exceptions during the transitional period. The UPC’s rulings would have effect in those contracting member states that have ratified the Unified Patent Court Agreement. The UPC would not have any jurisdiction over national patents or supplementary protection certificates granted for a national patent. After the reform, the Finnish Market Court would still have jurisdiction over Finnish national patents and supplementary protection certificates granted for a Finnish patent.

The European patent with unitary effect − the unitary patent − would be a new, supranational option to have patent protection in Europe. At the moment a European patent needs to be validated in each contracting state where patent protection is desired. This means in practice that a patent holder has a bundle of national patents. A unitary patent would only consist of a one single patent providing patent protection in the member states who are participating in the enhanced cooperation procedure.

After the reform, unitary patents and traditional European patents will be granted by European Patent Office (EPO). The pre-grant phase at the EPO is not subject to change. When the EPO has granted a European patent, the patent holder can file a request for unitary effect, i.e., a uniform patent protection in the participating member states.    

When Will All This Happen?

To date, the implementation of the unified patent system is still ongoing. In order for the entire system to come into force, the Unified Patent Court Agreement must be ratified by at least thirteen EU member states (including the high-profile patent countries: the UK, France and Germany). At the moment, the following member states have ratified the agreement: Austria, Belgium, Bulgaria, Denmark, Finland, France, Italy, Luxembourg, Malta, Netherlands, Portugal and Sweden. Last autumn, the UK government confirmed it is continuing with preparations for ratification of the Unified Patent Court Agreement despite Brexit.

According to the latest information, the UPC Preparatory Committee, which is an entity responsible for establishment of the UPC, is currently working under the assumption that the Provisional Application Phase (PAP) will start this spring, most likely in May 2017. In practice, the PAP means that the UPC organisation will be established.

The assumption is that the Unified Patent Court Agreement will enter into force and the UPC will become operational in December of this year. Before the UPC becomes operational, the patent holders or applicants have the possibility to opt out their already-existing European patents or patent applications from the new UPC system for the whole life-time of that patent. This sunrise period for opting out patents will be a minimum of 3 months. The current plan is that the opt-out period will start in September 2017. As the sunrise period is somewhat short, it is worth making some contingency plans in this regard and considering implementing the opt-out (if so desired) already in the beginning of the sunrise period in order have sufficient time to deal with any possible queries or difficulties in the opt-out registration procedure.

Latest references

We advised Huhtamaki Oyj in relation to a EUR 450 million sustainability-linked syndicated multi-currency revolving credit facility loan agreement (“RCF”) with a maturity of five years. The RCF refinances an existing EUR 400 million sustainability-linked syndicated revolving credit facility signed in January 2021 and will be used for general corporate purposes of the Group. The RCF has two one-year extension options at the discretion of the lenders. The Mandated Lead Arrangers and Bookrunners of the RCF are Citi, Nordea Bank Abp, Skandinaviska Enskilda Banken AB (publ), BNP Paribas, Commerzbank Aktiengesellschaft, Danske Bank A/S, DBS Bank Ltd., London Branch, J.P. Morgan SE, Landesbank Hessen-Thüringen Girozentrale, OP Corporate Bank plc, Raiffeisen Bank International AG and Standard Chartered Bank AG.
Case published 28.11.2024
We represented a mutual real estate company belonging to a large Finnish group in arbitration proceedings against a construction company. The arbitral tribunal rejected the construction company’s claims in their entirety and ordered the construction company to reimburse our client for the costs of the arbitration proceedings in full. The dispute concerned the contract price under the construction contract, which was agreed to be determined on the basis of our client’s yield requirement and the rent under the lease agreement for the building in question. The parties disagreed on the indexation clause applicable to the rent adjustment and its impact on the contract price.
Case published 22.11.2024
We are acting as legal advisor to VR-Group Plc in their strategic decision to sell their road logistics business to the investment company Mutares. This transaction supports VR’s focus on rail transport in freight traffic. The road logistics business, which generated a revenue of approximately EUR 80 million in 2023, will be transferred to a newly established company under Mutares. The business unit employs around 75 people who will transition to the new company. The completion of the transaction is subject to approval by the Finnish Competition and Consumer Authority.
Case published 18.11.2024
We advised Neste as it signed a EUR 150 million bilateral green term loan agreement with Danske Bank A/S, Finland Branch. The proceeds of the loan will be used to finance eligible assets and projects in accordance with Neste’s Green Finance Framework. The loan has a tenor of 24 months with one 12-months extension option of 12 months. Neste published a renewed Green Finance Framework in February 2024 to align future financing activities with market best practices and standards. In addition to renewable and circular solutions, Neste’s renewed framework includes renewable energy as an investment category. Longer term actions on ourNeste’s climate roadmap include scaling up new technologies and innovations, with focus on renewable hydrogen. Renewable hydrogen and other new technologies are estimated to have a reduction potential of 20% or more of the 2019 scope 1 &and 2 emission baseline by 2030. 
Case published 4.11.2024