EU tweaks draft patent rules making it easier for patent holders to sue

HTC

24/04/2023 22:38

By Foo Yun Chee
       BRUSSELS, April 24 (Reuters) - The European Commission
has tweaked draft patent rules to make it easier for patent
holders to sue companies over royalty disputes following
criticism that an earlier draft favoured users while restricting
patent owners from seeking injunctions.
    The EU executive, which will announce the draft rules on
Wednesday, is hoping the move will end costly legal spats over
patents essential to key technologies for telecoms equipment,
mobile phones, computers, connected cars and smart devices.
    Mobile technology was a hotbed of patent litigation in the
previous decade involving Apple Inc  AAPL.O , Microsoft
 MSFT.O , HTC Corp  2498.TW , Motorola, Samsung Electronics
 005930.KS  and Nokia  NOK1V.HE .
    EU officials say worries of a patent war involving the
automotive industry and the Internet of Things technology as
well as China's growing share of key patents were key reasons
for the Commission's proposed rules.
    The latest draft seen by Reuters allows patent holders to
ask a court for injunctions against infringing companies even
while the two sides negotiate on fair, reasonable and
non-discriminatory (FRAND) royalties under the auspices of the
European Intellectual Property Office (EUIPO).
    An earlier draft blocked such legal action until the
conclusion of the FRAND-setting process within nine months.
    "The obligation to initiate FRAND determination should not
be detrimental to the effective protection of the parties'
rights," the latest proposal said.
    "In that respect, the party that commits to comply with the
outcome of the FRAND determination while the other party fails
to do so should be entitled to initiate proceedings before the
competent national court pending the FRAND determination." 
    Patent owners say injunctions help to protect their rights
while opponents say such bans can inflate royalties and stifle
competition.
    The draft rules need to be agreed with EU countries and the
European Parliament before they can become law.

 (Reporting by Foo Yun Chee; Editing by Sonali Paul)
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