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French officials started inspecting possible locations of the UPC's Central Division in Paris

Some days ago we reported on a press report basically saying that Munich has been dropped out of the hard fought race for the seat of the Central Division of the future EU Unified Patent Court:

[...] Munich seems to be out of the running, Paris appears to be the favourite and London could win a few laurels.

Paris as the court location appears to be backed by the President of the EU Council, Herman Van Rompuy, while it is speculated that

[t]he smart money appears to be on Paris at the moment, but diplomats warn that it’s still anyone’s guess whether a deal will be reached.

Now, on the eve of the decisive EU Summit, another article clarifies that Van Rompuy’s compromise plan, being the “result of consultation with the most concerned member states”, in fact proposes to share the location of the court between Paris, London and Munich. According to this plan, the official seat of the court’s central division, its president’s office and registry will reside in Paris, while some departments will be based in London and in Munich:

Given the highly specialised nature and quality standards, we also propose to create specialised clusters in two sections of the UPC, one in London, the other in Munich, which will continue to deal with administrative matters.

As the wording ‘administrative matters’ appears to exclude – for now – that court chambers will be established in London or Munich, one may ask what kind of administrative support can be given by Munich and London if even the registry is bound for Paris.

However, even though all these rumours cetrainly have a core of truth, it is also true that the race will not be decided by ‘smart money’ but by the EU Heads of Government on the EU Summit on 28/29 June 2012. It is further true that the outcome will highly depend on and be strongly linked to the much more important negitiations as to how the EU depth crisis can be effectively  tackled. And this central issue will be dominated by the antagonism between the EU leaders who dramtically proposed a ‘Grand Plan‘ (pdf here) to safe the eurozone and Federal Chancellor Angela Merkel, who is prepared to rule out eurobonds “as long as I live“. Hence, there remains plenty of room for discussion and compromise – also on the seat issue.

 

(Photo 2009 by El Brown via Flickr under a CC license)

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Seat of ... Federal Chancellor Angela Merkel in Berlin (Bundeskanzleramt)

In one of our latest postings on the legal and political shadows of  the Unified Patent Court Agreement we concluded that the stuck ‘seat issue’ will now have to be decided on the top executive level, i.e. in personal talks between Federal Chancellor Angela Merkel, Prime Minister David Cameron, and - should he survive the French presidential election in April/May 2012 - Nicolas Sarkozy as the only serious and realistic bits were Berlin, London, and Paris, respectively.

While the German government always claimed the seat of a European Patent Court, should such court ever exist, London became a candidate rather late and only after intervention of the UK legal profession and Paris was considered a compromise location to prevent a deadlock between Munich and London. None of these bits is ideal for everyone as each has considerable drawbacks, as has been recently summarised on FT.comfew other EU countries are happy with a Munich seat because the city is already the home to EPO“, “Britain lacks goodwill or allies“, and “French inflexibility has been damaging“.

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Absent of any reliable source the tea leaves give some cryptic clues: Munich on schedule, London delayed, Paris vanished?

The story so far. As we all know, the talks on the new EU-wide patent infrastructure (consisting basically of the Unitary Patent Regulation and the Unified Patent Court Agreement) run aground in late December despite quite some rounds of negotiations producing encouraging press releases according to which the so called ‘EU Patent Package’  was considered “broadly accepted in substance”. However, at the end of the Polish EU Presidency‘s half-year term, the adoption of the “Warsaw Patent Convention” – a term coined by Polish Deputy Prime Minister Pawlakcould not be celebrated as expected due to ongoing dissension.

Even though it was spread after the failed Competitiveness Council of December 5/6 through semi-official channels (e.g. tweets and press report) that the whole deal was almost done and only the seat of the central division of the Unified Patent Court remained to be decided, real doubts and harsh criticism almost immediately occurred and stakeholders saw an opportunity to again open the discussion on various substantive legal issues (see e.g. EPLAW resolution, FICPI position paper), such as on Articles 6 to 9 of the Regulation (effects of patents) that require substantive patent law to be subject to review by the CJEU.

Despite ongoing controversies and criticism (“desaster“, “bound to fail“) as to substantive issues, the politicians declared the dice cast for the Unitary Patent so that the Regulation was not unwrapped again for negotiations as to the legal merits. In fact, the Regulation for the Unitary Patent meanwhile got a green light from the powerful legal committee (JURI) of the EU Parliament in late December and the EU Council began to linguistically finalise the Regulation text in early January.

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