EU PATENT SME perspective Vincent Tilman EUROCHAMBRES Avenue des Arts 19 AD - B-1000 Brussels phone: +32 2 282 08 67 - fax: +32 2 230 00 38 mailto:[email protected]

ASSOCIATION OF EUROPEAN CHAMBERS OF COMMERCE AND INDUSTRY

Agenda • IPR and innovation in SMEs





Shift to the knowledge economy IPR and innovation for SMEs Importance of IPR strategies for SMEs Barriers faced by SMEs in using the IP system

• The EU patent
The voice of SMEs
The EU patent
The EU patent jurisdiction ASSOCIATION OF EUROPEAN CHAMBERS OF COMMERCE AND INDUSTRY

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IPR and innovation in SMEs • The ability to recoup its investment and make profits will determine a company’s decision to invest in R&D • Innovation may be protected through a variety of IPR or alternative means

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Shift to the knowledge economy • Global approach taken by many firms – patent in more foreign markets • Increasing importance on intangible assets as source of competitive advantage • Outsourcing of manufacturing in low-cost foreign locations – retain ownership over the innovative aspects of their products • Expansion of patentable subject matter • Commercialisation of university research results via IPR transfer to the private sector.

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SMEs IPR and innovation • Innovative capacity varies significantly depending on sector, size, focus, ressources and business environment • For new technology-based SMEs, reliance on IPR for competitive edge is increaslingly important.
Limited capital and tangible assets
Innovative idea is main asset during the start-up phase ASSOCIATION OF EUROPEAN CHAMBERS OF COMMERCE AND INDUSTRY

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SMEs IPR and innovation • For non new technology based firms, innovations are mainly of an informal nature • Trademark and industrial designs may provide SMEs with the ability
to differentiate their products
to segment market
to create brand image ASSOCIATION OF EUROPEAN CHAMBERS OF COMMERCE AND INDUSTRY

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IPR strategy for an SME • • • • •

Obtain access to new markets Enhance the reputation of a company Segment market through different designs Provide access to new financing opportunities Learn about recent technological developments
Avoid wasteful investments in R&D

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Barriers in using the IP system • Empirical evidence
propensity to apply for patents relates highly to the size of the companies
SMEs file for less patent abroad than do large firms

• SMEs success rate is significantly lower





Insufficient info on prior art Poorly drafted patent applications Limited access to adequate legal advice Lack of resource to follow the application through the grant stage

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Barriers in patenting • Cost
Costs for acquiring and maintaining the patent
Costs related to enforcement of patent rights

• Time needed
Great degree of uncertainty
Delays the possibility of finding licensees or investors
Increasing backlog

• Information deficit ASSOCIATION OF EUROPEAN CHAMBERS OF COMMERCE AND INDUSTRY

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The EU patent

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Vote: is the continued absence of a Community patent damaging to European business? • 90% yes • 6% no • 4% abstain

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The EU patent • Should raise effectiveness of the fight against counterfeiting • Unitary character with uniform patent protection over the entire EU territory • A third option beside the national or European patent

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The EU patent • Better transparency and quality • Review of translation system with significant reduction of the overall costs • Automated translation system
Reduce time for accessing the information
High quality of the translations must be researched

• In favor of mutualisation of costs ASSOCIATION OF EUROPEAN CHAMBERS OF COMMERCE AND INDUSTRY

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The patent jurisdictional system • Must guarantee accessibility of the procedure to users • Must guarantees trust and confidence of users
appointment of highly qualified judges
spreading of experience with patent litigation throughout Europe

• Considerable autonomy should be left to the parties to agree on the place and the language of the litigation process. • Alternative Dispute Resolution ASSOCIATION OF EUROPEAN CHAMBERS OF COMMERCE AND INDUSTRY

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Conclusion • SMEs need a simplified system sooner rather than later!

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Thank you for your attention

EUROCHAMBRES Avenue des Arts 19 AD - B-1000 Brussels phone: +32 2 282 08 67 - fax: +32 2 230 00 38 [email protected]

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