Working Paper: CEPR ID: DP7142
Authors: Malwina Mejer; Bruno van Pottelsberghe de la Potterie
Abstract: This paper argues that the consequences of the ?fragmentation? of the European patent system are more dramatic than the mere prohibitive costs of maintaining a patent in force in many jurisdictions. First, detailed analysis of judicial systems in several European countries and four case studies provide evidence suggesting that heterogeneous national litigation costs, practices and outcome induce a high level of uncertainty. Second, a high degree of managerial complexity results from systemic incongruities due to easier ?parallel imports?, possible ?time paradoxes? and the de facto paradox of having EU-level competition policy and granting authority ultimately facing national jurisdictional primacy on patent issues. These high degrees of uncertainty and complexity contribute to reduce the effectiveness of the European patent system and provide additional arguments in favour of the Community patent and a centralized litigation in Europe.
Keywords: Enforcement; European Patent System; Litigation Process; Patent Cost; Uncertainty
JEL Codes: K41; O34; P14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| fragmentation (F12) | high level of uncertainty (D89) |
| high level of uncertainty (D89) | effectiveness of the European patent system (O36) |
| fragmentation (F12) | managerial complexity (L22) |
| managerial complexity (L22) | effectiveness of the European patent system (O36) |
| heterogeneous national litigation costs and practices (K41) | high level of uncertainty (D89) |
| high litigation costs and conflicting judicial decisions (K41) | disincentive for firms to engage in patenting activities (O31) |
| high litigation costs and conflicting judicial decisions (K41) | less attractive patent environment in Europe (O52) |