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Thursday, 30 August 2012 - Painful birth for Europe's new one-stop patent |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Breakingviews Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Video Reuters TV Reuters News Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read Obama tells voters to watch Republicans, but he's not 29 Aug 2012 Isaac heads north after soaking U.S. Gulf, New Orleans | 10:44am EDT "Little flash" as bionic eye brings amazed woman some sight 10:32am EDT Samsung steals march on Nokia with first Windows phone 29 Aug 2012 Iran's policies attacked by U.N. head, Egyptian leader | 11:42am EDT Discussed 138 Obama’s lead over Romney grows despite voters’ pessimism 122 Romney to announce vice presidential choice Saturday 94 Analysis: Are Israelis tough enough for a long war with Iran? Sponsored Links Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography.  See more | Photo caption  Burning Man Strange sights at the Burning Man 2012 arts and music festival in the Black Rock Desert of Nevada.   Slideshow  Syria's indoor war Members of the Free Syrian Army often wage their battle from inside abandoned homes.  Slideshow  Painful birth for Europe's new one-stop patent Tweet Share this Email Print Related News Special Report: China's "wild east" drug store Tue, Aug 28 2012 Analysis: Friend and foe; Samsung, Apple won't want to damage parts deal Mon, Aug 27 2012 Samsung shares drop $12 billion after Apple's court victory Mon, Aug 27 2012 Analysis: How Apple overwhelmed Samsung's patent case tactics Mon, Aug 27 2012 Apple triumphs over Samsung in landmark patent case Fri, Aug 24 2012 Analysis & Opinion Knight Capital’s filings reveal scant oversight focus on tech risks for board Related Topics Health » Tech » Media » France » By Ben Hirschler MUNICH | Thu Aug 30, 2012 5:30am EDT MUNICH (Reuters) - That Europe needs a common patent is patently obvious to Michael Setton, who runs a tiny technology firm in France making wireless sensors that track environmental and biomedical data. Yet he and thousands of other inventors are still waiting to hear when they will finally be able to protect their inventions across the region at one go, cutting costs dramatically. For now, Setton has given up and skipped the European market by going directly to the United States because his company, Sensaris, which has a staff of just five, cannot afford the expense of getting patents in each individual European country. Two months ago, it seemed the issue had been fixed. Even as Europe's single currency system teetered, European Union leaders hailed an agreement, after more than 30 years of wrangling, to launch another pan-European project - a common patent and a single court in which to defend property rights. But the June deal has been delayed by the European Parliament, whose members are angry at the exclusion of the European Court of Justice from the patent litigation process. Benoit Battistelli, president of the Munich-based European Patent Office (EPO), which will administer the new unitary patent, is confident there will eventually be an accord. "I don't think so many years of discussion could fall down on such an issue, and I'm convinced there is room to find a solution that is good for everybody," he said in an interview. "We have never been closer to a final decision, but the last few meters can be the most difficult." A spokesman for the European Commission said the EU's executive was "working hard to reach a solution by the autumn". Even if there is a deal by the end of 2012, it will still be more than two years before inventors actually get the one-stop patent, which the EPO estimates will be 70 percent cheaper than the 30,000-35,000 euros ($38,000-44,000) it costs to protect an idea across the EU today. "Some time in 2015 should be a reasonable time frame," Battistelli said. Europe's splintered patent system has been blamed as one factor behind the region's failure to match other regions in commercializing science. Currently, inventors can apply to the EPO for a patent but it has to be validated in each member state, and litigation is country by country. At a time when competition in new inventions is increasing, not only from Silicon Valley but also from Asia, Battistelli is convinced a single patent is an important tool for innovation. After all, intellectual property is at the heart of business, as shown by the global patent fight between Apple and Samsung Electronics over smartphones. "It puts Europe on the same level as our main partners and competitors," Battistelli said. "European companies will be in the same situation as American or Chinese companies in their own market, with a single patent-granting authority and a single litigation system." It also promises clarity over what qualifies for protection in controversial areas like genetic and stem-cell research. BIG COST FOR SMALL FIRMS The issue is acute for small firms. They lack the deep pockets of multinational technology or pharmaceutical corporations, and patents are vital for attracting investors. "It is very important for small fish to be able to get patents because it gives value even before you have sales," said Sensaris boss Setton. "When it comes to raising capital, investors are looking for intellectual property protection." Jonathan Zuck, president of the Association for Competitive Technology, representing 3,000 small and mid-sized technology firms on both sides of the Atlantic, said the current fragmented system made it around 10 times more expensive to get patent cover in Europe than in the United States. And the upfront expense is only part of the story. With no centralized patent court, small firms also have to fight off litigants who can shop around to challenge patents in multiple jurisdictions, all potentially delivering different verdicts. "The biggest issue for small businesses is getting the protection they need to stop their ideas being stolen, more often than not by large companies," Zuck said. But while the planned common patent will be a major step forward, it will be far from perfect. Notably, a political compromise means the new patent court will be split into three, with its headquarters in Paris but London handling life science disputes and Munich engineering. That has raised fears of procedural delays and uncertainty. What is more, Spain and Italy have so far refused to back a deal because the new regime stipulates the official languages for patents as English, French and German, so it will apply to 25 rather than 27 EU states initially. Italy may join later but it is not clear if Spain will. Zuck said Madrid's bid to preserve the language in the arcane world of patents was frustrating and baffling. "The message we get from our Spanish members is 'Put your effort behind the next Don Quixote, rather than having patents in Spanish'," he said. ($1 = 0.7958 euros) (Additional reporting by Chris Wickham in London; Editing by Will Waterman) Health Tech Media France Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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