Evaluation of the UPC by the German Federal Government
In early December the draft by the German Federal Government for the implementation of the UPC Agreement was published. In this draft the Federal Government gives some statements on the costs and expected case numbers. The German Federal Government will invest the one-time sum of €1 million for starting the Central Division in Munich and expects a further €450,000.00 of yearly operational costs. Starting the four Local Divisions is expected to cost about €2 million and additional yearly operational costs of €900,000.00.
In the draft the government also states that it expects that the Unified Patent Court will reach full utilisation after about 10 years with about 2000 actions. In the first year, the government expects only 180 actions. To this end total 20 judge positions should suffice which will be predominantly staffed by part-time judges.
Including the personal costs the overall costs for the court will be about €15 million in the first years and then climb to €18 million in the fourth year. This is countered by expected income of €1,8 million in the first year, €3,6 million in the second year, €5,4 million in the third year and €7,2 million in the fourth year. The deficit to be carried by the member states will therefore be about €13,6 million in the first year and then fluctuate between €10 million and €11,5 million per year. Germany’s part of this is expected to be €6 million in the first year and between €4,5 million and €5 million in the following years due to the high number of actions expected for Germany.
Thus, the member states do not seem to expect any more that the UPC will be self-financed in the first years. We will have to wait and see if in the end the necessary financial funds for the Unified Patent Court will be produced by court fees or penalty payments during the further operation of the Court.
Our Managing Partner Miriam Kiefer LL.M. is a new member of the board of women in ip. What began in 2011 as a platform for women in intellectual property quickly developed into an international non-profit platform that was registered as a non-profit association in 2014.
Our partners Dr. Peter Kather and Dr. Christof Augenstein are pleased to explain once again the details of the patent infringement trial this year. The VPP seminar "The infringement trial" will take place from 19-21 September 2019 at the Maritim Hotel in Ulm.
The federal government is currently suggesting that it will wait for Brexit before the Unified Patent Court (UPC) is allowed to start. This is the result of an answer to a question from the FDP parliamentary group. In our opinion, however, the Federal Government is firmly bound to the will of Parliament and must implement the Ratification Act with the signature of the Federal President without delay.
In order to give everyone interested a comprehensive overview of the development of FRAND jurisprudence in Germany, we have compiled the most important decisions and published them on our homepage.