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21 July 2017Patents

UK parliament debate on UPC delayed

The Unified Patent Court (UPC) Agreement has hit another roadblock, with the delay this time stemming from the UK.

On Monday, July 17, the motion on the Unified Patent Court (Immunities and Privileges) Order 2017, the final legislative step in the UK’s ratification process, was not debated in the House of Commons as had been scheduled.

According to a spokesperson from the UK Intellectual Property Office (IPO) a new date for the debate will be scheduled “after the recess/in due course”.

“The motion was not moved as other urgent parliamentary business took priority,” the spokesperson said.

Separate legislation will be laid in the Scottish parliament after the summer recess, which ends on September 5, 2017.

The Immunities and Privileges Order is affirmative, which means it will be debated in the respective parliaments and also requires Privy Council approval.

Once the legislation has been passed, the UK will be able to formally ratify the UPC Agreement.

“We are working with the UPC preparatory committee to bring the UPC into operation as soon as possible,” said the IPO’s spokesperson.

“For as long as we are members of the EU, the UK will continue to play a full and active role and continue to fulfil its obligations. As such, we will aim to deliver on our commitment to ratify the UPC, fulfilling our role as a constructive partner.”

In June, the UPC’s preparatory committee  announced that the court would not become operational in December this year, as previously intended.

Helen Goodman, member of parliament for Bishop Auckland in County Durham, tweeted on Tuesday, July 18: “Government withdrew motion on Unified Patent Court with no notice last night. Chaos and confusion for industry, especially for pharma and lawyers.”

Andrew Bowler, partner at Bristows, said: “I really don’t see this as a concern. I understand that the government had originally planned to deal with this legislative business after the summer break but then found a slot on Monday.”

He added that some urgent business was introduced, so it was decided that there wasn’t enough time to deal with the UPC bill.

Marc Döring, partner at Allen & Overy, explained that in light of the wider Brexit negotiations and the pressure on the government more generally, he was not surprised that the motion was bumped.

“Given that the UPC is required to apply EU law and to make references to the Court of Justice of the European Union, I can imagine that the government might well not want this topic to be put before parliament right now and be seen to press ahead with its ratification,” said Döring. “This is irrespective of whether the UPC is actually an international court, rather than a domestic court.”

Also in June, the German Constitutional Court (Bundesverfassungsgericht) delayed the ratification of the UPC Agreement.

The Constitutional Court held up the process because of a constitutional complaint brought by a private person.

According to Döring, the factor more likely to delay the UPC’s coming into effect is the German challenge which, as he understands, may not be resolved by the end of the year.

“If the UPC is not ratified by the UK and Germany by the end of the year so that it can start by around spring 2018, it is far more likely to become part of the overall Brexit negotiations. Then the chances that it goes ahead prior to Brexit increasingly diminish,” he said.

Peter Thorniley, senior associate at Kilburn & Strode, said: “Indications are that this latest wobble is procedural rather than political—a question of available parliamentary time rather than a change in government policy.”

He warned however that this development is another indication that the “fragile momentum behind the UPC process is easily blown off course”.

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Patents
8 December 2017   The UK took one step closer to ratifying the Unified Patent Court Agreement this week, after the draft legislation was heard in the House of Lords.