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intellectual property expert

Article 18, 19, 58, 58a, 58d and 59 – Full text

Article 18 – Budget of the Court

(1) The budget of the Court shall be financed by the Court’s own financial revenues and at least in the transitional period referred to in article 58 as necessary, by contributions from the Contracting Member States. The budget shall be balanced.

(2) The Court’s own financial revenues shall comprise court fees and other revenues.

(3) Court fees shall be fixed by the Administrative Committee. They shall consist of a fixed fee, combined with a value-based fee above a pre-defined ceiling. The court fees shall be fixed at such a level as to ensure a right balance between the principle of fair access to justice, in particular for small and medium-sized enterprises and micro entities and an adequate contribution of the parties for the costs incurred by the Court, recognising the economic benefits to the parties involved, and the objective of a self-financing Court with balanced finances. The level of th Court fees shall be reviewed periodically by the Administrative Committee. Targeted support measures for small and medium-sized enterprises and micro entities might be considered.

(4) If the court is unable to balance its budget out of its own resources, the Contracting Member States shall remit to its special financial contributions.

 Article 19- Financing of the Court

(1) The operating costs of the Court shall be covered by the budget of the Court, in accordance with the Statute.

Contracting Member States setting up a local division shall provide the facilities necessary for that purpose. Contracting Member States sharing a regional division shall provide jointly the facilities necessary for that purpose. Contracting Member States hosting the central division or th Court of Appeal shall provdie the facilities necessary for that purpose. During the first three years starting form the date of entry into force of this Agreement, the Contracting Member States concerned shall also provide the administrative support staff.

(2) On the date of entry into force according to Article 59(1), the Contracting Member States shall provide initial financial contributions necessary for the setting up of the Court.

(3) Option A

The contributions by the Contracting Member States shall be calculated on the basis of the number of European patents in force (…) and the number of European patents (…) with respect to which proceedings for infringement or for revocation have been initiated before the national courts in the Contracting Member States, on the date of entry into force of this Agreement, complemented by equal parts borne by each Contracting Member State.

Option B

The contributions by the Contracting Member States shall be determined in accordance with the scale (…) for the distribution of annual renewal fees for European Patents with unitary effect applicable at the date of entry into force of this Agreement.

Article 58- Transitional period

(1) During a transitional period of seven years after the date of entry into force according to Article 59, proceedings for infringement of for revocation of a European patent may still be initiated before the national courts or other competent authorities of a Contracting Member State having jurisdiction under national law as determined by Union law.

(2) Any proceedings pending before a national court at the end of the transitional period shall continue to be sujbect to the transitional regime.

(3) Unless proceedings have already been initiated before the Court, holders of European Patents or patent applications granted or applied for prior to the date of entry into force according to Article 59 shall have the possibility to op out from the exclusive competence of the Court. To this end they shall notify their op-out to the Registry by the latest one month before expiry of the transitional period. The opt-out shall take effect upon its entry into the Registry.

(4) Unless proceedings have already been initiated before a national court, holders of European patents who made use of the opt-out in accordance with paragraph 3 shall be entitled to withdraw their opt-out at any moment. In this event they shall notify the Registry accordingly. The withdrawal of the opt-out shall take effect upon its entry into the Registry.

(5) Five years after the entry into force of this Agreement, the Administrative Committee shall carry out a broad consultation with the users of the patent system and a survey on the number of European patents with respect to which proceedings for infringement or for revocation are still initiated before the national courts pursuant to paragraph 1, the reasons for this and the implications. On the basis of this consultation and an opinion of the Court, the Administrative Committee may decide to prolong the transitional period for another seven years.

Article 58a- Ratification, depositing and notification

(1) This agreement shall be ratified by the Contracting Member States in accordance with their respective constitutional requirements. Instruments of ratification shall be deposited with (the General Secretariat of the Council of the European Union (herinafter referred to as “the depository”)).

(2) Each Contracting Member State shall notify the European Commission of its ratification of the Agreement at the time of deposit of its ratification instrument pursuant to Art. 22(3) of Regulation …/… on the enhanced cooperation in the area of the creation of unitary patent protection.

Article 58d- Revision

(1) Either seven years after the entry into force of this Agreement or once 2000 infringement cases have been decided by the Court, whichever is the later point in time, and if necessary at regular intervals thereafter, a broad consultation with the users of the patent sytsem shall be carried out by the Administrative Committee on the functioning, the efficiency and the cost-effectiveness of the Court and the patent system’s users’ trust and confidence in the quality of its judgements(…). On the basis of this consultation and an Opinion of the Court, the Administrative Committee may decide to revise (…) this Agreement with a view to improve its functioning.

(2) The Administrative Committee may amend this Agreement to bring it into line with an international treaty relating to patents or Union legislation (…).

(3) A decision of the Administrative Committee taken on the basis of paragraphs 1 and 2 shall not take effect if a Contracting Member State declares within twelve months following the date of the decision, on the basis of a resolution of its national Parliament that it does not wish to be bound by the decision. In this case, a Review Conference of the Contracting Member States shall be convened.

Article 59- Entry into force

(1) This Agreement shall enter into force on (date) or on the first day of the (…) month after the deposit of the last instrument of ratification by (9) Contracting Member States in accordance with Article 58a, including the three States in which the highest number of European patents was in force in the year preceding the year in which the Diplomatic Conference for the signature of the Agreement takes place, whichever is the later.

(2) In respect of any State which is eligible to accede to this Agreement in accordance with the provisions of Article 58b and which subsequently expresses its consent to be bound by it, this Agreement shall enter into force on the first day of the month following the deposit of the instruments of ratification by that Member State.

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