The Decline of Patent Litigation in Europe: Challenges and Opportunities Ahead

Decline in Patent Litigation Cases Raises Concerns for European Law Firms

The launch of the Unified Patent Court was expected to bring about a brighter future for patent litigation teams in European law firms. However, recent trends indicate a decline in the number of cases being filed at patent courts across Europe, raising concerns about the future of the industry.

Decrease in Cases at European Patent Courts

In 2023, Mannheim Regional Court in Germany saw only 70 new lawsuits over technical property rights, a significant decrease from the 215 new lawsuits filed in 2017. As a result, the court has closed one of its three patent chambers, reflecting the downward trend in patent litigation cases.

Similarly, Munich Regional Court stopped assigning new patent suits to one of its three patent chambers in 2023, with a 17% decrease in cases compared to previous years. The UK High Court also experienced a drastic decline in the number of cases, with only 35 new actions filed in 2022.

Challenges for the Unified Patent Court

While the Unified Patent Court (UPC) saw a respectable start in 2023 with 160 lawsuits filed since its launch, it may not be able to compensate for the decline in national patent cases in the near future. The lack of cases is posing challenges for large teams of lawyers and patent attorneys who rely on a steady flow of litigation work.

Notably, actions brought by Non-Practicing Entities (NPEs) have been scarce at the UPC, as the high costs and uncertainty surrounding the court’s stance on Standard Essential Patents (SEPs) deter them from filing suits. The reluctance of NPEs to engage with the UPC further contributes to the overall decline in patent litigation cases.

Adapting Growth Strategies

Law firms are now faced with the task of rethinking their growth strategies in light of the decreasing number of national patent lawsuits. With a shift towards UPC cases, firms need to ensure they have the necessary resources and expertise to handle these new types of litigation.

Furthermore, the closure of patent chambers at national courts, such as in Mannheim, raises concerns about the availability of qualified judges for the UPC. The court must prioritize recruiting and training new talent to ensure a pool of experienced judges for handling patent cases in the future.

In conclusion, the decline in patent litigation cases in Europe is prompting law firms to adapt and innovate in order to navigate the changing landscape of intellectual property law. The future of patent litigation may be uncertain, but with strategic planning and investment in talent, firms can continue to thrive in this evolving industry.