CCIA Warns Against Handing Innovation Policy to Patent Institutions

File Under: 2006, Copyright

Sep 26, 2006

FOR IMMEDIATE RELEASE

Washington, DC - In a letter addressed to Members of the European Parliament, the Computer & Communications Industry Association bluntly warned against the creation of a system of patent courts under the auspices of the European Patent Organization and national patent agencies. "European policymakers are being asked to follow the U.S. model – a specialized patent appeals court – unadvised of the problems the U.S. model has created, especially for producers of software and information technology," warned Ed Black, President and CEO of CCIA.

Ironically, Internal Market Commissioner Charlie McGreevy has endorsed the proposed European Patent Litigation Agreement (EPLA), even though the patent courts would be independent of the European Union and create precedent for more independent institutions. In the United States, decisions of the specialized Court of Appeals for the Federal Circuit can be directly appealed to the Supreme Court or to Congress. However, there would be no judicial review or democratic review of the European Patent Court decisions. Said Black: "Astoundingly, the Commissioner is arguing for his irrelevance – or rather the irrelevance of his successors."

"EPLA’s supporters are experts in obtaining patents, not innovation," observed Mark Webbink, Deputy General Counsel for Red Hat, a CCIA member. "Patent systems do not monitor economic results – how patents affect competition and innovation in the real world. Without this accountability, an insulated patent system is bound to serve its own professional and institutional interests, and the proposed European system would be far more autonomous and insular than U.S. system."

"A specialized patent court makes its mark o n the world by championing its speciality," added Black. CCIA has been critical of the Federal Circuit for making patents easy to get, easy to assert, more potent, and available for any subject matter. It has become virtually impossible for innovators in information technology to avoid inadvertent infringement, while patent litigation has grown astronomically expensive.

While litigation in Europe is generally not as costly as the United States, EPO figures show that cost would likely grow under EPLA. And these figures do not even reflect the fact the new freestanding European Patent Courts would have to be fully funded by its own fees to survive. Webbink warned: "All this is bad news for small firms who already lack the resources to avoid infringement or defend themselves against the rising tide of patent trolls."

Click here to view the Letter

Contact: Will Rodger, 202-783-0070 ext. 105