Unitary patent: What you need to know

Globalization means that more and more companies are also operating internationally. The economic union in particular is further standardizing the market in the EU and European companies have long since ceased to operate in just one country. It is more important than ever for founders, inventors and entrepreneurs to consider applying for a patent not only in Germany, but also directly in the EU.

Reason enough to take a closer look at the unitary patent. But what are the advantages of a unitary patent compared to individual national patents? And what are the special legal features? We will explain in this article.

Whether it's a trademark application, design patent or patent - WSL Patent has been successfully helping established companies and start-ups protect their intellectual property for 70+ years. As patent attorneys and attorneys-at-law, we have extensive industry knowledge and can advise you on all matters. Feel free to contact us for a non-binding initial consultation - whether in person at our office or digitally.

What is a unitary patent?

The Unitary Patent, officially known as the European patent with unitary effect, is revolutionizing patent protection in the European Union. This innovative form of protection was developed to simplify and harmonize the process of obtaining and enforcing patents within the EU. The Unitary Patent makes it possible to obtain patent protection in several EU member states with a single patent application to the European Patent Office (EPO), without the need for separate national validation procedures after the patent has been granted.

Here are the essential features of the Unitary Patent:

  1. Unitary effect: A granted unitary patent has the same legal effect in all participating EU member states. This means that the patent is automatically effective and enforceable in these countries without the need for separate national validations. This is a cost-effective way of achieving uniform patent protection for a large part of the EU internal market.
  2. Centralized application and administration: The application for a unitary patent is made centrally at the European Patent Office (EPO) - as for the classic European bundle patent. However, instead of validation in the individual states after grant, a valid intellectual property right can be obtained for all participating states with a single application to the EPO. This simplifies the procedure and reduces the administrative burden compared to individual national patent applications or the classic European bundle patent.
  3. Unified court proceedings: Parallel to the unitary patent, the Unified Patent Court (UPC) was also established, which is responsible for disputes in connection with unitary patents. This ensures uniform jurisdiction and will ultimately also lead to a harmonization of jurisdiction in the participating countries. As the decisions are valid for all participating countries, there is no longer any need for parallel court proceedings, which considerably reduces the effort and costs involved.

The Unitary Patent aims to make patent protection in the EU more efficient and cost-effective by reducing the need to apply for and enforce separate patents in several countries. It is part of the efforts to create a single market in the EU.

Unitary patent: Which countries are involved?

Not all EU Member States participate in the Unitary Patent. To date, 18 EU Member States have fully ratified the Unitary Patent system (as of September 2024).

The following countries are participating so far:
  • Belgium
  • Bulgaria
  • Denmark
  • Germany
  • Estonia
  • Finland
  • France
  • Italy
  • Latvia
  • Lithuania
  • Luxembourg
  • Malta
  • the Netherlands
  • Austria
  • Portugal
  • Sweden
  • Slovenia
  • Romania

The unitary patent can therefore only be effective for these countries at present. It is to be expected that other European countries will also participate in the near future.

What are the advantages of the unitary patent?

The Unitary Patent offers several advantages aimed at making patent protection in the European Union more efficient, cheaper and simpler. Here are the main advantages:

  • Simplification and standardization of the procedure: The application, examination, administration and maintenance of the unitary patent will be done centrally via the European Patent Office. This simplifies the entire process considerably compared to separate national patent applications or the classic European bundle patent, where only the application and examination process is centralized at the European Patent Office (EPO).
  • Uniform effect: The patent is automatically recognized in all participating EU countries without having to go through separate application or validation processes.
  • Cost savings: This results in lower costs, but administration is also simple, as there is a central administrative body in the form of the European Patent Office (EPO).
  • Market value of the patent: Unitary patents can be more attractive to investors as they offer comprehensive and uniform protection, which can increase the market value of a protected invention.
  • Broad geographical protection in a simple way: Protection can be obtained in several countries with a single application, which is particularly attractive for small and medium-sized enterprises (SMEs) that might otherwise shy away from the cost of protection in many individual countries.

Overall, the aim of the Unitary Patent is to make patent protection in the EU more accessible and uniform, especially for established companies and start-ups. So if you want to expand in the short or long term, you should look into the unitary patent in advance. We would be happy to advise you on this in a personal meeting!

What will a unitary patent cost?

With the unitary patent, entrepreneurs, founders and inventors can obtain protection in several EU member states through a single, centrally administered patent application, examination and validation process, which reduces the need for multiple national applications or separate validation steps and associated fees.

There are also lower translation costs, as the Unitary Patent only needs to be translated into one national language of an EU member state, which differs from the filing language of the patent application, after it has been granted. Previously, separate national patent applications or the validation of a European bundle patent (often) required translation into the respective national language. This significantly reduces translation costs.

As the application for unitary effect is only an alternative option to post-grant validation, but the patent application and examination process is identical to that of the "classic" European bundle patent, there are no cost changes in this respect. This means that costs, especially for legal advice, remain the same. We will be happy to advise you comprehensively on your wishes and the costs to be expected!

Renewal fees for the unitary patent

Unitary patents also require the payment of annual maintenance fees, which increase over time. These fees start in the low hundreds and rise to around EUR 4,855 by the 20th year (the maximum for patents) (as of October 2024). The fees are particularly low in the first few years. By the 10th year, they add up to less than 5,000 euros.

  • 3rd year: 35 Euro
  • 5th year: 485 euros
  • 10th year: 1,775 euros
  • 15th year: 3,000 euros
  • 20th year: 4,855 euros

Compared to the maintenance of a large number of separate national patents, the costs of maintaining a unitary patent are significantly lower. Compared to validation in all 18 participating countries, the total annual fees over the entire patent term are only just under a third.

As far as the annual fees are concerned, the unitary patent is generally "worthwhile" from as few as 3 countries compared to separate patents - especially as the administrative costs are significantly lower than for a large number of individual patents.

Unified Patent Court: Suing with the unitary patent?

The Unified Patent Court has exclusive jurisdiction for unitary patents, but also for national patents for which jurisdiction has not been excluded by means of a corresponding request (so-called "opt-out").

Thanks to the Unified Patent Court, it is now possible for the first time to sue in several countries at the same time and thus have the advantage of a single lawsuit. Previously, legal action had to be brought individually in Germany and other EU states.

However, there has not yet been much case law on the unitary patent. It remains to be seen how the legal situation will develop within the EU. However, it can be assumed that all case law (including German case law) will be standardized in the long term.

Attention:
Holders of individual national IP rights can exclude the jurisdiction of the Unified Patent Court within a transitional period of at least 7 years by submitting an opt-out request as described above.
This means that patent proprietors can insist that infringements and decisions on validity continue to be taken by national courts and not by the Unified Patent Court.

Conclusion

The unitary patent and the Unified Patent Court offer new opportunities for legal practitioners in the field of patent law. It will certainly take some time to find out how the case law of the new court develops. However, the unitary patent appears to be very attractive, especially for small and medium-sized companies, particularly in terms of costs and administrative effort.

This can be good news for companies and start-ups planning to position themselves not only in Germany, but also on a multinational level. In any case, the unitary patent can offer an alternative to individual patents. We would be happy to advise you on any open questions and individual concerns!

As a law firm specializing in patent and trademark law, we have the expertise and the right tools to support you in your searches. Thanks to our decades of experience, we can also provide you with comprehensive advice on the possible options and give you an assessment of the market and legal situation. We are also happy to take care of the entire registration process for you.

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