Deminor Wiki - Unified Patent Court (UPC)

Read below for a definition of the term: "Unified Patent Court (UPC)".

What is the "Unified Patent Court (UPC)"?

The Unified Patent Court (UPC) is an international court established to provide a centralised judicial system for patent disputes in Europe. Created under the Unified Patent Court Agreement (UPCA) as part of the broader European patent with unitary effect system, the UPC is intended to streamline patent litigation across participating European Union (EU) member states. The court, headquartered in Luxembourg with regional and local divisions throughout Europe, officially came into operation in 2023. The UPC aims to improve efficiency, reduce costs, and enhance legal certainty in patent protection across the EU.

Structure and Composition

The UPC consists of several judicial bodies designed to handle different aspects of patent litigation:

  1. Court of First Instance: The Court of First Instance has central, regional, and local divisions in participating member states. The central division, located in Paris, with additional sections in Munich and Milan, hears cases involving patent validity and technical issues.
  2. Court of Appeal: Based in Luxembourg, the Court of Appeal reviews decisions made by the Court of First Instance, ensuring consistency in legal interpretation and application across the UPC.
  3. Registry: The court’s administrative body is also based in Luxembourg, responsible for handling case filings, managing records, and supporting the operations of both the Court of First Instance and the Court of Appeal.

Each case is presided over by a panel of legally and technically qualified judges, ensuring that patent disputes are resolved by experts in both patent law and relevant technical fields.

Jurisdiction and Legal Competence

The UPC has exclusive jurisdiction over unitary patents (a new type of European patent that provides uniform protection across multiple EU member states) and European patents that have yet to opt out of its jurisdiction. The court’s competencies include:

  • Infringement Actions: The UPC can hear cases of patent infringement, including injunctions, damages, and provisional measures.
  • Validity Challenges: The court has the authority to determine the validity of a patent, allowing it to revoke patents that do not meet the necessary legal requirements.
  • Preliminary Injunctions and Provisional Measures: The UPC can issue interim orders to prevent alleged infringements while a case is ongoing.
  • Revocation Actions: The UPC can invalidate patents at the request of third parties or following a counterclaim in infringement proceedings.

The UPC provides a single venue for these actions, which would otherwise have to be conducted separately in each national court, often leading to conflicting decisions and increased costs.

Participating Member States

As of 2024, most EU member states have signed the Unified Patent Court Agreement (UPCA), with the court operational in the countries that have ratified the agreement. Notably, some EU countries, including Spain and Poland, have chosen not to participate in the UPCA. Additionally, the United Kingdom was initially a signatory but withdrew following Brexit.

The UPC’s decisions are enforceable in all participating states, meaning that a single court ruling applies across multiple jurisdictions, significantly simplifying enforcement for patent holders.

Benefits and Goals

The establishment of the UPC aims to:

  • Reduce Costs and Complexity: By consolidating patent litigation into a single system, the UPC reduces the need for multiple parallel proceedings in different countries, lowering legal costs and increasing efficiency.
  • Increase Legal Certainty: The court provides consistent rulings across jurisdictions, offering patent holders and challengers greater predictability and reducing the risk of contradictory outcomes.
  • Strengthen Patent Protection in Europe: With centralized enforcement of unitary patents, the UPC enhances protection for patent holders, making it easier to defend intellectual property rights across participating states.

Challenges and Influence on EU Patent Law

The UPC has faced criticism and legal challenges over concerns about judicial independence, language diversity, and the impact of a single patent system on national sovereignty. Language diversity remains an issue, as proceedings are conducted in the official languages of the divisions, which may pose difficulties for parties unfamiliar with those languages. Additionally, there have been concerns about the potential loss of national courts' authority in handling patent cases. The UPC’s structure and jurisdiction may continue to evolve as more countries join and operational adjustments are made.

However, the UPC represents a major shift in European patent law, aligning Europe more closely with other regions with unified patent systems, such as the United States. By offering a centralised forum for patent disputes, the UPC aims to make Europe more attractive to innovation-driven industries by providing a more streamlined and reliable system for protecting intellectual property rights. As the UPC grows, its case law is expected to influence patent litigation and harmonise legal standards across the EU, fostering innovation and investment.