Crucial news expected on the UPC and Unitary Patent in Spring 2018

Delays to the ratifications of the UPC Agreement by the UK and Germany continue to delay the opening of the Unified Patent Court (UPC) so far. News is expected in the Spring of developments that will determine how long these delays will be.

It is well known now that for the UPC and Unitary Patent to come into force, the ratification of the UPC Agreement by 13 Member States must be completed by deposit with the Council of the European Union. Three of these are mandatory: France, Germany and the UK. It is less well known that in addition to these ratifications, further instruments called the Protocol on Provisional Application (PPA) and the Protocol on Privileges and Immunities (PPI) must also receive the necessary number of ratifications and signatures (see the April 2017 Transceiver) and these are not all in place either.

However, it is delays to the ratifications of the UK and Germany that have currently posed the greatest obstacle to the start of the UPC and Unitary Patent. What is the current status of these?

The UK

After a lengthy delay in the aftermath of the decision to leave the EU, the UK Government decided to press on with ratification of the UPC and Unitary Patent. Legislating to implement the Protocol on Privileges and Immunities was the last step that needed to be taken before the UK ratification could be deposited. This legislation was provided in two parts: one part dealing with Scotland 'the Scottish Order' and the other part, 'the Westminster Order', dealing with the rest of the UK. The Scottish Order was agreed at Privy Council in December 2017 and the Westminster Order was approved by Privy Council in February 2018. These Orders are now with the Foreign Office for signature by the Foreign Secretary, Boris Johnson MP. On 26 April 2018, the UK ratification was finally deposited in Brussels.

This now leaves the onus on Germany to provide the final mandatory ratification of the UPC Agreement.

Germany

In Germany, close attention is being given to the complaint filed against ratification of the UPC Agreement before the Federal Constitutional Court (FCC) in March 2017. The filing of this decision resulted in a request to the German President's office to stay signature of the legislation necessary to ratify the UPC in Germany. A decision by the FCC on whether to formally admit the complaint is also expected later in the spring of 2018. If the complaint is dismissed, German ratification can take place and, providing the UK ratification is also deposited, and the approvals of the PPA and PPI are in place, the UPC can proceed.

If the complaint is admitted, however, the future of the UPC will depend on the decision of the FCC on the merits of the complaint. This will be a longer process and there would be no guarantee that the FCC would find in favour of ratification proceeding.

The future of the UPC and Unitary Patent therefore hangs in the balance, and developments expected soon in Germany will be crucial.