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Technology rarely stands still and new technologies rarely exist in isolation: as technology convergence carries on at pace, understanding the pitfalls and the benefits of different patent systems can give you a competitive edge. In this article, we discuss the UK's performance in areas of cutting-edge technology related to the fourth industrial revolution (4IR), the key points of the European and UK routes to patent protection, and relevant aspects of the UK courts.
Technology Convergence: a more connected future
From the minute that a new innovation is made, entrepreneurs and developers seek new uses for the underlying technology. In the telecommunications field, traditional telephones have evolved into mobile phones, camera phones, and finally smart phones â powerful portable computers a million times faster than the computers that NASA used to put a man on the moon in 1969. Recently, the deployment of 5G wireless technology has meant that complex connected systems, such as the Internet of Things, are now possible, and that the patent standards underpinning telecommunication technologies will now have a bearing on new and previously unrelated areas of industry and commerce. Of particular interest is the automotive sector, in which connected self-driving cars powered by the latest developments in Artificial Intelligence will soon communicate with each other and with centralised control systems using 5G wireless technology. The UK has a long history of making excellent contributions in this area, and we expect the UK market to continue to be of considerable importance in this more connected future.
UK Innovation (Automotive and Artificial Intelligence)
The UK Government's recent Industrial Strategy paper set out four areas of focus, referred to as Grand Challenges, for which it intends to make funding available and drive innovation. Significantly, within this grand plan, two areas of focus are "Future Mobility" and "Artificial Intelligence and Data".
For the former challenge, the UK has a long and illustrious history of innovation in the automotive field, including developments of the internal combustion engine, the compression ignition engine, and the hydrogen fuel cell. The Future Mobility Grand Challenge aims to continue this tradition by making available almost £250 million for battery R&D, as well as £1 billion to invest in low carbon powertrains. Both form part of the government's "Road to Zero: Next steps towards cleaner road transport" â a plan of nearly £1.5 billion earmarked for investment.
Research and development activity in the mobility field continues apace. The Silverstone Technology Cluster, which is part of a super cluster of 3500 companies in the arc between Oxford, Silverstone and Cambridge, has recently attracted interest, as it promises to bring the talent and research capabilities of the world's top two universities together with local world-class motorsport companies. The generation of key IP rights, secured both in the UK market and overseas appears inevitable, as collaboration between innovators leads to world class development in technology.
For the second challenge, Artificial Intelligence and Data, the UK offers a long tradition of excellence. The UK's hi-tech super-clusters based in and around London and Cambridge are frequently ranked as the largest groupings of start-up technology companies in Europe, and a recent paper by the UK IPO (United Kingdom Intellectual Property office) highlights the UK's recent success stories, including start-ups such as Deepmind, Magic Pony Technology and Swiftkey (acquired by big names such as Google, Twitter and Microsoft respectively).
The UK IPO paper points out that the UK is in the top three countries worldwide in which AI related patent applications, as a proportion of total patent applications filed, has risen most quickly (the others being the US and Australia), and that nearly 90% of first filed UK patent applications for AI innovations are filed overseas (a much larger percentage than for applications first filed in US or China for example).
The UK and European Patent Systems
Innovators have access to patent protection either nationally via the UK IPO or centrally via a European patent application filed at the EPO (European Patent Office) and designating the UK.
For companies based in the UK, first filing a patent application at the UK IPO offers low cost entry into the patent system and a quick high quality examination and search, before deciding whether to file applications overseas. Indeed, some US applicants have been known to file in the UK as soon as a US provisional application has been filed at the USPTO, solely to benefit from the UK's swift combined search and examination procedure.
Official Fees at the UK IPO are low. Official filing, search and examination fees presently cost no more than £320, including discounts available for electronic filing. Claims over 25 incur a small fee per claim, and description pages over 35 incur a small additional examination fee, but generally no further official fees due. Even renewal fees are only due after the grant of the patent, with the first fee being due on the fourth anniversary of the filing date.
The higher search, examination, designation and grant fees of the EPO reflect the wider geographical coverage offered by a European patent, as well as the EPO's considerable investment in both quality of service for applicants, and its state-of-the-art patent information systems. For European applications, renewal fees are payable in respect of each year after the third. Nevertheless, once translation and local attorney costs are factored in, the breakeven point for filing a European Application is usually reached if three or more applications in national countries are desired.
In cases where a client's budget does not stretch to filing a full European application, filing a national UK patent application is a cost effective way of securing protection in the European market. The UK is the second largest economy in Europe in terms of nominal GDP. For applications not originally filed in English, and for which an English translation of the application already exists for filing at the US PTO, protection in the UK can easily be added.
Different Routes â Different Strategies
Patent protection in the UK is available via both the national UK route, and by the designation of the UK in a granted European patent. This will continue whether or not the UK leaves the European Union, as will the ability of UK patent attorneys to file European applications. The EPO is not a European Union institution, and many non-EU states, such as Switzerland, Iceland, and Norway currently participate in the European Patent Organisation. UK based patent attorneys frequently achieve the highest pass rates in the European Patent Attorney qualifying exams, and so are well placed to act for applicants worldwide.
For UK based applicants, the UK application filed initially is often kept in force as a parallel pending application, even when protection (in the UK and other EPO participating countries) is pursued via a European patent application. This allows the applicant to take advantage of procedural benefits present in the UK system, such as the lack of an EPO style Opposition procedure, a potentially more pro-applicant stance, and the fact that the UK patent application can sometimes reach grant more quickly than the corresponding application at the EPO.
The UK applies a similar standard to examination as the EPO, but is less formal in its approach, and as a result, can appear more pro-patentee. The European Patent Office stresses patent quality, including the related burden of a granted patent on third parties, and so takes questions of unclear or overly broad claims, added subject matter, and weak inventive step arguments very seriously. While these considerations apply in the UK also, the UK IPO may give more benefit of the doubt to the applicant if a well-reasoned argument is put forward.
Combined Search and Examination is available at the UKIPO and means that for applications filed within 12 months of the priority date, the applicant receives an assessment on patentability before publication. Assuming this is favourable, the examination report can advantageously be used as the basis for a request under the Global Patent Prosecution Highway (GPPH) in other countries. Otherwise, accelerated examination at the UK IPO is possible, providing that a reason can be given, such as knowledge of an infringing act, or the application relating to environmentally friendly subject matter. The GPPH is also available in the UK and can be used to advance cases that have already been found allowable in other jurisdictions. No official fees are required for acceleration. Accelerated examination in the EPO is also available at any time using the PACE procedure.
While Japanese applicants would not be likely to first file in the UK, the advantages noted above can be obtained by filing a UK application instead of or in addition to a corresponding European Patent application covering the UK. As noted above, assuming that an English translation of the patent application exists already (for filing at the USPTO or the EPO for example) patent protection can be pursued at the UK IPO at relatively low cost.
This can be helpful if licensing or access to the UK courts is desired without delay. Furthermore, it may be possible to direct the UK application to a different embodiment of the invention compared with the claims pursued in the corresponding European application designating the UK, thereby broadening out an applicant's portfolio.
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The UK Courts (FRAND, Doctrine of Equivalence, Statistics)
Against this backdrop of technological innovation it is not surprising that the UK Courts have developed an international reputation for delivering high quality decisions on complex matters of technology and law. Recently this has been particularly significant for Standard Essential Patents, where decisions such as Unwired Planet v. Huawei have built on the FRAND (Fair Reasonable and Non-Discriminatory) provisions set out in European decision such as Huawei v ZTE and have now shaped the FRAND negotiation procedure used worldwide. Patentees holding a UK patent are in the enviable position of being able to apply to the expertise of the UK Courts for various forms of declaratory relief, including injunctions, damages, declarations of infringement or non-infringement, as well as declarations that offers are FRAND offers, and orders to settle the terms of a FRAND license.
One of the key outcomes of the Unwired Planet v Huawei cases in the UK was the determination that the UK courts are competent to decide a global licensing rate. Huawei as defendant had argued that any FRAND license should be limited to the UK only, but the UK Courts both at First Instance and later at the Court of Appeal stage disagreed, arguing that licensing on a country by country basis between a willing licensee and a willing licensor was 'madness', and that accordingly the UK court was competent to decide the global rate. This principle has since been separately confirmed in the 2019 Court of Appeal decision Conversant v Huawei , in which the defendants unsuccessfully challenged the jurisdiction of the UK Court to hear the case on the ground that ongoing litigation in China made the Chinese courts more appropriate.
The pragmatism of the UK courts has also been clearly evident in its approach to patent litigation, namely its tendency to consider infringement and validity at the same time, relying on what is known as a purposive (rather than literal) approach to claim construction. Recently, and via the Supreme Court decision in the Actavis v Eli Lilly , this approach has been extended further by the introduction of a UK Doctrine of Equivalents. This brings the UK more into line with practice in Europe, and makes the UK more pro-patentee, as it provides an additional scope of protection outside of the literal or purposive wording of the claims. In 2018, the Court of Appeal decision Icescape v Ice World decision, applied the Doctrine of Equivalents to find infringement in mobile ice rink technology. The alleged infringement possessed cooling pipes arranged "in parallel" and the patent claim required them "in series". However, the inventive core of the patent was held to be the flexible pipe coupling used between the connections, such that despite this difference, infringement was found.
There is a view that the UK experiences less patent litigation than some European countries, that the relative value of those cases is typically higher than cases in other countries, and that the UK is sometimes stricter on matters such as patent validity and infringement. This does not however accurately reflect reality. The number of patents decisions in the UK (including decisions of the Intellectual Property and Enterprise Court â a streamlined court offering capped damages and reduced costs) can appear to be lower than in other jurisdictions, because the UK does not have a bifurcated system where patent infringement and patent validity hearings are separate and so count as separate decisions. Additionally, and with a view to procedural efficiency, the UK will often bundle related patents with the same parties into a single hearing lasting several days. The UK courts regard this as the best way to balance efficiency with fairness for all parties, hoping to reach decisions that accurately reflect the circumstances of the case. As a result, the number of actual cases may be higher than first appears.
Further, based on recent analysis of the court decisions, the UK courts now uphold more patent claims as valid, and find infringement in around 50% of the cases that they hear. This figure likely reflects the tendency for cases that are clearly in one party's favour to settle before court, meaning that most of the cases that the courts hear are borderline in which neither party has a strong advantage.
Summary
One of the advantages that the UK and European systems offer to applicants is flexibility. Different countries offer different approaches to patent prosecution and to patent enforcement. Both the UK and EP (UK) routes to protection may benefit an applicant depending on their circumstances, provide different pros and cons. Whichever route to protection you choose, Reddie & Grose LLP has the expertise to help.
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Nick Reeve |
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Nick Reeve joined Reddie & Grose in 1999 and was made a partner in 2005. He is a fluent Japanese speaker, and specialises in patents in the software and electronics sector, primarily computer and software implemented inventions, such as those relating to AI and IoT related inventions, electronics and electrical devices, as well as telecommunications and standards related matters. He has particular expertise writing and filing UK and European applications for clients across the world, as well as building client portfolios that suit the commercial needs of his clients. He has extensive experience of European patent oppositions, giving UK pre-litigation advice, performing freedom-to-operate searches, and handling portfolio due diligence and transfer matters. Nick Reeveã¯1999幎ã«ReddieïŒGroseã«å ¥æãã2005幎ã«ããŒãããŒã«ãªããŸããã圌ã¯æ¥æ¬èªãæµæ¢ã«è©±ãããœãããŠã§ã¢ããã³ãšã¬ã¯ãããã¯ã¹åéã®ç¹èš±ãäž»ã«ãAIãIoTé¢é£ã®çºæãé»åè£ çœ®ãé»æ°æ©åšãé»æ°éä¿¡ãèŠæ Œé¢é£ã®åé¡ã«é¢é£ãããã®ãªã©ãã³ã³ãã¥ãŒã¿ãŒããœãããŠã§ã¢ã«å®è£ ãããçºæãå°éãšããŠããŸãã圌ã¯ãäžçäžã®ã¯ã©ã€ã¢ã³ãåãã«è±åœããã³æ¬§å·ã®åºé¡æžé¡ãäœæããã³åºé¡ããç¹å®ã®å°éç¥èãæã¡ããŸããã¯ã©ã€ã¢ã³ãã®åæ¥çããŒãºã«åã£ãã¯ã©ã€ã¢ã³ãããŒããã©ãªãªãæ§ç¯ããŠããŸãã圌ã¯ã欧å·ç¹èš±ç°è°ç³ç«ã«ã€ããŠå¹ åºãçµéšãæã¡ãè±åœã®èšŽèšåã®ã¢ããã€ã¹æäŸãFTO調æ»ã®å®è¡ãããŒããã©ãªãªã®ãã¥ãŒããªãžã§ã³ã¹ãšè²æž¡åé¡ã®åŠçãè¡ã£ãŠããŸããã |
Paul Loustalan |
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Paul Loustalan has been a qualified UK and European patent attorney for over ten years, and is a partner at Reddie & Grose LLP based in London. Paul has a background in mechanical engineering, and his PhD research was in the area of fuel injectors for IC engines. As a patent attorney, Paul's day-to-day practice includes drafting, filing and prosecuting patent applications in the field of advanced engineering, and in particular the automotive sector such as electric and hybrid-electric vehicles and associated technologies such as control and autonomous driving systems. As well as successfully obtaining granted patents for his clients, Paul also works closely with them to build a commercially relevant and robust IP strategy and portfolio. Paul Loustalanã¯ãè±åœããã³æ¬§å·ã®åŒç士ãšããŠ10幎以äžã®ãã£ãªã¢ãããããã³ãã³ã«æ ç¹ã眮ãReddieïŒGrose LLPã®ããŒãããŒã§ãã Paulã¯æ©æ¢°å·¥åŠã®ããã¯ã°ã©ãŠã³ããæã¡ãå士å·ã®ç 究ã¯ICãšã³ãžã³ã®çæåŽå°åšã®åéã§ããã åŒç士ãšããŠãPaulã®æ¥ã ã®æ¥åã«ã¯ãé«åºŠãªãšã³ãžãã¢ãªã³ã°ã®åéãç¹ã«é»æ°èªåè»ããã€ããªããé»æ°èªåè»ãªã©ã®èªåè»ã»ã¯ã¿ãŒãããã³å¶åŸ¡ãèªåé転ã·ã¹ãã ãªã©ã®é¢é£æè¡ã®åéã§ã®ç¹èš±åºé¡æžã®èµ·èãåºé¡ãåºé¡æç¶ããå«ãŸããŸããPaulã¯ãã¯ã©ã€ã¢ã³ãã®ããã«ç¹èš±ãååŸããã ãã§ãªãã圌ããšå¯æ¥ã«é£æºããŠãåæ¥çã«é¢é£æ§ã®ããå ç¢ãªç¥è²¡æŠç¥ãšããŒããã©ãªãªãæ§ç¯ããŸãã |