In a reference for a preliminary ruling from the Rechtbank van eerste aanleg te Brussel (Belgium) to the Court of Justice of the European Union lodged on July 19, 2010 (Belgische Vereniging van Auteurs, Componisten en Uitgevers (Sabam) v Netlog NV, Case C-360/10), a legal question was posed as follows:
Do Directives 2001/29 ( 1 ) and 2004/48, ( 2 ) in conjunction with Directives 95/46, ( 3 ) 2000/31 ( 4 ) and 2002/58, ( 5 ) construed in particular in the light of Articles 8 and 10 of the European Convention on the Protection of Human Rights and Fundamental Freedoms, permit Member States to authorise a national court, before which substantive proceedings have been brought and on the basis merely of a statutory provision stating that: ‘They [the national courts] may also issue an injunction against intermediaries whose services are used by a third party to infringe a copyright or related right’, to order a hosting service provider to introduce, for all its customers, in abstracto and as a preventive measure, at its own cost and for an unlimited period, a system for filtering most of the information which is stored on its servers in order to identify on its servers electronic files containing musical, cinematographic or audio-visual work in respect of which SABAM claims to hold rights, and subsequently to block the exchange of such files?
This case throws a spotlight on a phenomenon which has become ubiquitous in the age of the Internet: When there is a case of wrongdoing related to the digital domain, stakeholders find that often it is inconvenient, sometimes even practically impossible to go for the primary wrongdoer because of difficulties to identify him or her or because of the wrongdoer is seated in a foreign jurisdiction which might be less than co-operative due to a variety of reasons. Cases based on some sort of infringement of IP rights and related to the digital domain are notorious for this kind of scenario.
So why not going for the intermediaries, which are plenty and inevitable necessary for running the Internet, some of them surely located in your own jurisdiction or at least in a foreign jurisdiction which shows a co-operative habit, many rights holders may ask themselves.
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It has just now come to my attention that on September 23, 2011, the Committee on Legal Affairs of the European Parliament has published a Draft Report on a jurisdictional system for patent disputes (2011/2176(INI)) (Rapporteur: Klaus-Heiner Lehne). The document comprises a text of a motion for a European Parliament resolution on a jurisdictional system for patent disputes (2011/2176(INI)) generally acknowledging that the establishment of a coherent patent litigation system in the Member States taking part in the enhanced cooperation should be accomplished by an international agreement between these Member States creating a Unified Patent Court. However, there is an interesting twist:
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Yesterday I wrote a post reporting on the publication of EU Council Document 15539/11 conveying another version of the Draft agreement on a Unified Patent Court and draft Statute. Apparently there seems to be some political desire to get this thing done – together with Draft Regulations implementing enhanced cooperation in the area of unitary patent protection (Document 11328/11) – by finalising the entire package by end of this year.
To me it is quite a bit open as to whether or not this ambitious target will be met. We are amidst a grave stress test of the Euro framework, perhaps even of the EU itself. And, members of the political elites in all of the EU Member States are extremely busy to pretend as if they were aware of any viable solution advising how to exit this situation which perhaps might be reported in future textbooks of history as the worst crisis of the European Union ever. Will there be sufficient time and political will power to sort out problems in the field of patent law? I remember well the months of the French EU Presidency from July to December 2008. Up to September 2008 there had been strong hopes that French President Mr Sarkozy to take the bull at its horns and force a political compromise in the nasty languages issue concerning the original proposal for a EU Community Patent covering all of the EU Member States, including Italy and Spain. But on September 15, 2008, Lehman Brothers had to file for bankruptcy, and the world was no longer the same as it had used to be. The French Government had to shift their priorities, and Mr Sarkozy did not make it to push a compromise towards the EU Community Patent during his time at the helm of EU Presidency.
If the approach now pending – ‘enhanced co-operation’ – succeeds, what will be the practical consequences of its implementation?
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On October 19, 2011, the Polish EU Presidency has issued Document 15539/11 titled Draft agreement on a Unified Patent Court and draft Statute – Revised Presidency text. Changes in relation to the previous as provided with the version as of Document 15289/11 are marked. The provisions in italics marked with square brackets are still being developed as their final version depends either on the drafting technique to be adopted or on the content of the planned Commission proposal on changes to the acquis communitaire itself. Articles 14b and 14c now read:
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On October 07, 2011, the Polish EU Presidency has sent Document 15289/11 to the Delegations of the EU Member States for carrying on with negotiating an Agreement for a Unified Patent Court during a technical drafting session to be held from October 12-14, 2011 in Warsaw. The Document is titled Draft agreement on a Unified Patent Court and draft Statute – Revised Presidency text. In the Draft, changes in relation to the previous version (Document 13751/11 + COR 1) are marked. Concerning this elder version see also my earlier post here.
Altogether, the amendments made in Document 15289/11 compared to the previous version of document 13751/11 appear to be more or less of a technical nature. In particular, some conclusions from the non-paper Document 14191/11 titled Compatibility of the draft agreement on the Unified Patent Court with the Union acquis appear to have been drawn. In particular, a new Article 15b now defines the relation of the Unified Patent Court with the jurisdiction of courts of States not party to this Agreement (i.e. Italy and Spain) as follows:
(1) The Court shall have jurisdiction any time the court or courts of a Contracting Member State would have jurisdiction on the basis of Regulation (EC) 44/20019 or, where applicable, on the basis of the Convention on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (Lugano Convention).
(2) Where proceedings involving the same cause of action and between the same parties are brought in this Court and (a) court(s) of States not party to this Agreement, the Court shall of its own motion stay its proceedings until the jurisdiction of the court first seized is established.
(3) Where the jurisdiction of the court of a State not party to this Agreement is established, the Court shall decline jurisdiction in favour of that court.
Furthermore, a newly introduced paragraph 3 in Article 14c indicates that
The law of non-contracting States shall be applicable where relevant and as provided by provisions of Union law, in particular on the basis of Regulations 593/2008 (Rome I) and 864/2007 (Rome II), or by international instruments.
I expect to get further news next week after the technical drafting session to be held in Warsaw is closed.
As reported by Reuters, representatives of Governments of eight nations, namely Japan, the United States, Australia, New Zealand, Canada, Morocco, South Korea and Singapore have signed ACTA on October 01, 2011 in Tokyo. A number of signatories involved in ACTA negotiations, including the European Union, abstained. This does, however, not mean that EU dissociate themselves from the Agreement – there are merely formal obstacles which have to be removed before a signature on behalf of the EU can be given. As reported earlier on this blog, preparatory work of EU Council is underway to sign and ratify ACTA. For further background, see also here.
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Compatibility Of Draft Agreement On Unified Patent Court with EU acquis
On September 20, 2011, the General Secretariat of the Council of the European Union has filed Document 14191/11 titled Compatibility of the draft agreement on the Unified Patent Court with the Union acquis. It was classified “LIMITE” but after having filed a request on the basis of Regulation (EC) No 1049/2001 of the European Parliament and of the Council regarding public access to European Parliament, Council and Commission documents and the specific provisions concerning public access to Council documents set out in Annex II to the Council’s Rules of Procedure (Council Decision No 2009/937/EU, Official Journal L 325, 11.12.2009, p. 35) the General Secretariat has come to the conclusion that I may have access to this document. Hence, I expect this Document to become accessible in the Register very soon.
The Document conveys a non-paper from the Commission services who have analysed the compatibility of the draft agreement on the Unified Patent Court (UPC) with the Union acquis. In particular, they have checked the Draft against:
- Regulation (EC) No 44/2001 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (Brussels I)
- The Convention on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (Lugano Convention)
- Regulation (EC) No 593/2008 on the law applicable to contractual obligations (Rome I) and Regulation (EC) No 864/2007 on the law applicable to non-contractual obligations (Rome II)
- Regulation (EC) No 1206/2001 on cooperation between the courts of the Member States in the taking of evidence in civil or commercial matters
- Regulation (EC) No 1393/2007 on the service in the Member States of judicial and extrajudicial documents in civil or commercial matters
- Directive 2004/48/EC on the enforcement of intellectual property rights
As a general result the Commission services concluded that the relationship between the Brussels I Regulation and the draft agreement on the Unified Patent Court should be clarified in a particular way as suggested in the paper. The Commission services furtherrecall that the revision of the Brussels I Regulation is ongoing before the co-legislators. In addition, changes to the draft UPC Agreement should be made. It does not appear that issues of compatibility with other Union instruments would arise. A technical analysis of each of the provisions of the draft UPC Agreement should continue. It is clear that many procedural matters will need to be regulated in the rules of procedure.1 It is obvious that such rules will also need to comply with the relevant Union legislation. The UPC Agreement should clearly provide for this and foresee a mechanism how such compliance with the acquis may be ensured.
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The EU Competitiveness Council met in Brussels on Thursday 29 and Friday 30 September under the chair of Mr. Marcin Korolec, Deputy Minister of Economy, and Mrs Barbara Kudrycka, Polish Minister of Science and Higher Education. Below please find a quote from recent MEMO/11/643:
Draft Agreement on the creation of a Unified Patent Court
The European Commission and the Polish Presidency are giving high priority to patent reform. The objective is to reach agreement on a new patent system by the end of the year.
In that context, intensive work has been done to find agreement among the Member States on the basic features of the Unified Patent Court. Currently, patent litigation in Europe is fragmented and expensive. National patent courts only decide on the validity of European patents in their own territory. A patent owner needs to start court proceedings in a number of different courts in order to enforce his European patent for the same invention throughout Europe. This creates unnecessary costs as well as legal uncertainty.
To address these issues, a draft agreement for the setting up of a Unified Patent Court was developed between 2007 and 2009. However, in its Opinion in March 2011, the Court of Justice of the European Union (CJEU) raised concerns in respect of certain aspects of the draft agreement.
In May, the Commission tabled a working paper on the way forward. The paper addressed the concerns of the CJEU and met the expectations of Member States and industry. The solution suggested by the Commission was examined and endorsed by the Member States at the May Competitiveness Council. On that basis, the Hungarian Presidency tabled a revised draft agreement in June. This will be discussed at tomorrow’s meeting.
Commissioner Barnier will welcome progress made in recent weeks and stress the importance of reaching a final agreement by the end of 2011. He will highlight that reducing the costs and complexity of the existing European patent system has a substantial impact on innovation and growth.
The result was described in Document 14691/11 – PROVISIONAL VERSION – PRESSE 331 PR CO 55 as follows:
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On September 2, 2011, the Polish EU Presidency submitted Document 13751/11 to the Friends of the Presidency Group titled Draft agreement on a Unified Patent Court and draft Statute – Revised Presidency text and originally marked as “LIMITE”, i.e. confidential. On September 23, 2011, another related Document 13751/11 COR 2 removed the “LIMITE” restriction from its parent document. However, Document 13751/11 COR 1 still appears not to be accessible at the time of writing this blog posting.
The history of the proceedings according to the narrative of the above-identified Document is that, following the discussions with Member States, the Polish Presidency has prepared a first set of amendments to the Draft Agreement on a Unified Patent Court and draft Statute covering up to Article 14d. The aim of this note is to explain the suggested changes and the envisaged way ahead. On June 14, 2011, the Hungarian Presidency had presented to the Mertens Group a modified Draft Agreement which confers exclusive jurisdiction upon a court common to the Member States in the field of European Patent and European Patent with unitary effect. This modified Draft Agreement was based on the previous draft agreement on the European and Community Patent Court and necessary amendments have been made to ensure compliance with the EU Treaties in response to the opinion 1/09 of the Court of Justice of the European Union (CJEU). It also included adaptations to the text in light of the December 2009 Council conclusions.
The introductory passage of the recently released Document explains the amendments done with regard to earlier versions as follows:
The main changes, which were proposed to ensure compliance with the EU Treaties as set out in the opinion of the CJEU were the limitation of participation in the draft agreement to EU Member States (thus excluding the participation of third states as well as the EU) and the strengthening of the obligation of the Unified Patent Court to comply with EU law and request preliminary rulings, if necessary, including through the introduction of sanctions. The removal from the draft of the EU and non-EU states as possible contracting parties fundamentally changed the nature of the Draft Agreement, the aim of which is to establish not just an international court, but a court common to the Member States. This will represent a new patent jurisdiction which will be an inherent part of the judicial systems of those Member States which are party to the agreement.
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Industrial Revolution 2.0: How the Material World Will Newly Materialize
3D printing is a form of additive manufacturing technology where a three-dimensional object is created by laying down successive layers of material. Since 2003 there has been large growth in the sale of 3D printers. Additionally, the cost of 3D printers has declined.
Just in these days and within the framework of the London Design Festival, the London Albert & Victoria Museum is staging an exhibition ‘Industrial Revolution 2.0: How the Material World will Newly Materialise’ . The exhibition is a showcase displaying works made by 3D printing by Stephen Jones, Patrick Jouin, Iris van Herpen, and many others. Renowned New York-based design gallerist and curator Murray Moss has collaborated with industry provider Materialise, Belgium to create a special exhibition which pushes the parameters of 21st century 3D printing. A series of unique ‘printed’ works, using cutting edge laser and digital technologies to build three-dimensional objects, are placed throughout the Museum’s most important galleries, wittily referencing eight of the Museum’s key pieces and spaces; see also this report on i.materialise.
With regard to patent law, 3D printing taken as such appears to bear no particular implications out of the normal routine: We may assume that professional providers like Materialise NV and others know what they are doing and have some legal or patent department giving suitable advice.
However, as 3D printing technologie gets mature, two developments are foreseeable:
- In a first stage, perhaps to be experienced in a few years of time, heavy-duty 3D printing equipment might be generally available but too expensive to be bought by broader consumer circles. Maybe that costs for such devices will be comparable to large professional photocopying machines. If such assumption should become reality, there might be room for new business models of 3D copy shops: Small businesses loacted in your town around next corner where you can show up with a memory stick or something like that storing a 3D model of some object you would like to have produced. Perhaps such shop even might provide 3D scanning services as well; in such case the customer simply shows up with some 3D object in his pocket and goes away with one or more exact replicas thereof.
- In a second stage, costs of 3D printing equipment might drop to levels comparable to today’s laser printer devices. Maybe that 3D printers will be heavily cross-subsidised by surcharges on printing raw materials in the same manner as 2D printers today are subsidised by expensive ink or toner cartridges. This would mean that consumers can produce a broad range of 3D objects at home without need to contract any external service provider.
Of course, there is some hype in the current reporting on 3D printing: For many practical applications, not only the 3D shape is of relevance but also more elaborate characteristics, e.g. in view of a specific electrical conductivity, hardness, heat-resistance and/or elasticity. Those who fear that in the age of 3D printing everyone might be able to produce firearms at home might be reminded that the functionality of a gun is not determined by its 3D shape alone; it must also bear the heat and the enormous forces of the explosion of the propellant.
But nevertheless surely there will be many useful real world applications of 3D printing, most of them perfectly legal, some, of course, blatantly illegal or serving illegal ends. There are, for example, reports saying criminals stole more than $400,000 using ATM skimming devices made from high-tech 3D printers.
But what we might see, if the above-noted assumptions are true, is that another front of legal battles will be opened where John Doe and Max Mustermann risk entanglement with Intellectual Property laws.
In the first half of the 20th century, virtually no private individual living a mainstream-style life ever was in risk of infringing copyright laws: Printing presses were as expensive as, later in the century, radio and TV broadcasting equipment and out of reach for private consumers. Mass media were, due to economic necessity, owned by larger corporations which could afford to take legal advice and which could held liable easily in case of wrongdoing.
But in the age of PCs connected to the Internet we today see an epic battle of rights holders attempting to defend and to enforce their exclusion rights in the field of Copyright in the courts against countless private individuals engaging e.g. in file-sharing activities at home on the basis of their own PC and Internet infrastructure.
The PC and the Internet are also the tools which even today might bring individuals in conflict with patents on computer-implemented inventions or software patents. However, contrary to many fears of open source advocates, up to now the mainstream of litigation e.g. in the smartphone patent litigation business is directed against major players in that market, not against more or less private individuals. Exceptions are a few commercial developers creating smartphone apps sued by Lodsys; however, the particulars of such cases appear to hint that the main direction of attack was meant to be platform providers like Apple or Google.
Things might again change in an age where 3D printing techniques have matured and are cheaply in everybody’s reach. 3D copy shops will probably not benefit from any exemptions in patent law privileging private and non-commercial use of patented technologies as they are present e.g. in national German patent law. I don’t talk here on patents covering the 3D scanning / printing processes and devices (these problems should be dealt with by the manufacturers of such equipment) but on patents (and, by the way, also registered designs) infringed not by the technology provided in the 3D printing shop but by the specific 3D objects or object models brought in by the non-commercial customers. Will rights holders attempt to shut down such small 3D copy shop businesses by filing lawsuits on the basis of secondary patent infringement? Anyway, consumer-oriented 3D copy shops would face utter difficulties in assessing if replicating some object brought in by a customer infringes third party’s IP rights if they were legally required to do so.
Even if the 3D technology gets operated at home by the consumer, problems remain. For example, the German patent exemption covers only acts that are cumulatively of private nature as well as non-commercial. Excange of money is not a necessary precondition to get out of the scope of this exemption. For example, producing a small lot of object for free distribution amongst friends might, under some circumstances, be considered lying outside the scope of the German private-use patent infringement exemption.
Will we see in, say 10 years from now, a discussion on liability of ISPs for not filtering out 3D model data utilisable for 3D printing if they are suspected of infringing patent / design rights?
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