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● 09.11.11

●● Cablegate: Chancellor Merkel Organises Initiative Striving for “Increased Support for Cooperation Between U.S. and EU Patent Agencies”

Posted in America, Cablegate, Europe, Patents at 3:40 am by Dr. Roy Schestowitz

Summary: US perspective on the EU Patent, which is a prelude to a global patent, permitting far-reaching litigation even with software patents

EUROPE is under an assault to assimilate. We previously covered a related cable about the EU Patent, which helps create a bridge towards a Global Patent (more on that later). The effects would be devastating to everyone but monopolists and their patent lawyers.

=> related cable about the EU Patent

The following 2006 Cablegate cable shows us how negotiations of the EU Patent has been going. ¶4 of the first cable says that “Notes from the Chancellery’s working group on IPR, provided by a BDI representative, focused on fighting piracy and cooperating more in the area of patents. On combating piracy, the working group recommends coordinating diplomatic efforts to apply political pressure on countries where piracy originates; improving cooperation among customs agencies; and taking political steps to implement a public consumer awareness campaign on pirated and counterfeit goods. For improving transatlantic cooperation on patents, the IPR working group recommends reaching agreement on the Substantive Patent Law Treaty (SPLT); recognizing common U.S.-EU standards; establishing an international court specializing in patent-law; and recognizing extended patent protection for substances that are subject to licensing procedures. The working group also recommended improving cooperation between the EU and U.S. patent offices through targeted programs like establishing exchanges of patent reports, creating a central database for formal data on patents, creating a worldwide standard patent application format, establishing higher quality standards for patent agencies and increased support for cooperation between U.S. and EU patent agencies. For patent applicants or users, the working group recommends prohibiting patents for business practices and formally prohibiting the practice of “patent trolling.” (Note: These recommendations have yet to be presented to the Chancellor for approval and will become part of a larger paper listing the working groups’ recommendations. End Note).”

Just “prohibiting the practice of patent trolling” is not going to address the main problem, which is monopolisation. Trolls are often just pawns in this battle and they mostly hurt the monopolists. Removing them only gives more incentive for multinationals to support this scheme. And as explained in the latter cable, “The EU has long had a goal of creating a single EU patent system under which, as in the United States, a patent could be applied for and granted through a single office, valid in all 27 member states.”

Their long term goal is a global patent subservient to the US system i.e. the USPTO with all of its software patents (hundreds of thousands of them, depending on criteria). We will show this separately in a cable about Japan. In the mean time, consider this:

VZCZCXRO6490

PP RUEHAG RUEHROV

DE RUEHRL #3518/01 3491551

ZNY CCCCC ZZH

P 151551Z DEC 06

FM AMEMBASSY BERLIN

TO RUEHC/SECSTATE WASHDC PRIORITY 6435

INFO RUCNMEU/EU INTEREST PRIORITY

RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY

RUCNFRG/FRG COLLECTIVE PRIORITY

RUEATRS/DEPT OF TREASURY WASHDC PRIORITY

RUEHBS/USEU BRUSSELS PRIORITY

RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 BERLIN 003518

SIPDIS

SIPDIS

STATE FOR EB/TPP, EUR/ERA, AND EUR/AGS

USTR FOR DDWOSKIN, MMOWREY, SDONNELLY

USDOC FOR KPARSONS

E.O. 12958: DECL: 12/14/2016

TAGS: ETRD [Foreign Trade],

EFIN [Financial and Monetary Affairs],

ECIN [Economic Integration and Cooperation],

KIPR [Intellectual Property Rights],

PREL [External Political Relations], GM [Germany]

SUBJECT: GERMANY HONING TRANSATLANTIC ECONOMIC INITIATIVE

REF: A. BERLIN 1747

 B. BERLIN 3076 

Classified By: DCM John Koenig for reasons 1.4(b) and (d).

¶1. (C) Summary: The Chancellor and other senior German

officials continue to note Germany's economic agenda for its

EU presidency includes promoting a more highly integrated

transatlantic market place, while at the same time

reiterating support for a successfully concluded Doha

Development Agenda (DDA). The exact parameters of the

Chancellor's transatlantic economic initiative have continued

to evolve over the past four months, moving from exploring

the possibility of a transatlantic free trade agreement

(TAFTA) (ref A) to the current formulation, which focuses

mostly on overcoming or alleviating regulatory barriers.

Merkel recently brought together leaders from business and

government to help define this transatlantic initiative. The

reformulation resulted from German officials concluding a

free trade agreement would not achieve much in terms of

tariff reduction on non-agricultural products and would face

the same challenges on agriculture market access the EU and

U.S. are currently confronting in the DDA. The Chancellery

and other ministries have become more careful to stress that

the primary objective remains a successful Doha Round, but

that they also see the transatlantic market place initiative

as something which could subsequently contribute to improved

prosperity on both sides of the Atlantic. German business

and government officials say they plan to reach out to

parliamentarians and Members of Congress to discuss the

initiative. End Summary.


Fleshing Out German Thoughts on Transatlantic Economic

Cooperation


¶2. (SBU) Taking a further step to refine thinking on

increasing trade between the U.S. and EU, representatives

from German government and business met November 22 at the

Chancellery to discuss how to integrate further the

transatlantic market economy. Starting from a premise that

any type of a transatlantic free trade agreement is

unrealistic, Chancellery and business representatives from

the Federation of German Industries (BDI) have sought to find

a more pragmatic way forward. Both government and business

representatives characterize their initiative as

complementary to Doha, rather than an alternative or

competing idea. All continue to stress the importance of a

successful DDA, even though many officials and business

people privately offer serious misgivings over the prospects

for the Round. At the request of Chancellor Merkel, who has

publicly stated her desire for a transatlantic economic

element in Germany's EU presidency, business and government

representatives created working groups in five key areas --

Energy, Finance, IPR, Standards, and Environment -- to flesh

out concrete proposals. Officials noted the first session

was intended to develop a work program for each group, with

the working groups presenting their recommendations on

December 20.

¶3. (SBU) According to Stefanie Conrad of the Chancellery's

Foreign Trade and G-8 Office, Merkel wants the U.S. and EU to

use what she sees as already excellent economic relations to

move forward on more challenging economic issues,

particularly on regulatory convergence and standards

recognition in the five aforementioned areas. The working

groups would develop recommendations in terms of what they

actually see as achievable. Chancellery officials see only

limited success in the previous efforts dealing with

regulatory and standards issues and say Merkel is looking to

give these efforts, and the overall transatlantic economic

relationship, a higher-profile. She wants political leaders

involved in the issues rather than leaving them to experts

for discussion. German officials see engaging Congress as an

important part of the equation. They see the Federation of

German Industry's annual US-German Roundtable, which brings

U.S. Members of Congress to Germany to discuss transatlantic

issues, as an opportunity for such engagement. The

roundtable is scheduled to take place in Hamburg in February


BERLIN 00003518 002 OF 002

A Glimpse Inside A Working Group


¶4. (C) Notes from the Chancellery's working group on IPR,

provided by a BDI representative, focused on fighting piracy

and cooperating more in the area of patents. On combating

piracy, the working group recommends coordinating diplomatic

efforts to apply political pressure on countries where piracy

originates; improving cooperation among customs agencies; and

taking political steps to implement a public consumer

awareness campaign on pirated and counterfeit goods. For

improving transatlantic cooperation on patents, the IPR

working group recommends reaching agreement on the

Substantive Patent Law Treaty (SPLT); recognizing common

U.S.-EU standards; establishing an international court

specializing in patent-law; and recognizing extended patent

protection for substances that are subject to licensing

procedures. The working group also recommended improving

cooperation between the EU and U.S. patent offices through

targeted programs like establishing exchanges of patent

reports, creating a central database for formal data on

patents, creating a worldwide standard patent application

format, establishing higher quality standards for patent

agencies and increased support for cooperation between U.S.

and EU patent agencies. For patent applicants or users, the

working group recommends prohibiting patents for business

practices and formally prohibiting the practice of "patent

trolling." (Note: These recommendations have yet to be

presented to the Chancellor for approval and will become part

of a larger paper listing the working groups'

recommendations. End Note).

¶5. (SBU) The transatlantic economic initiative might also be

a topic for the U.S.-EU Summit in April, according to

Chancellery officials. They note that Merkel is personally

involved in the decision making on this subject and thus

wants her stamp of approval on every aspect of this

initiative. As currently envisioned, points for discussion

would be on how to structure a more formal arrangement for

dealing with regulatory and standards issues, providing the

initiative with a strong political grounding, and agreeing to

clear goals that advance U.S. and German common interests

related to this initiative.


Comment


¶6. (C) Germany's current efforts to produce a workable

transatlantic market place initiative reflect a new approach

to old themes. The Chancellery's deliberate and evolving

approach shows as well the importance Merkel has attached to

producing a tangible objective for Germany's EU presidency

and a possible deliverable for the U.S.-EU Summit. Trade

affected by regulations and standards is a growing share of

the $3 trillion annual transatlantic ($160 billion

U.S.-Germany) economic relationship; progress in this area

could bring strong benefits to companies on both sides of the

Atlantic. The government's focus on standards and

regulations is a sign that German business and government

realize the transatlantic market place initiative cannot

replace a successful outcome to Doha, which remains a Germany

priority. By engaging a variety of upper and mid-level

business and government officials, German officials hope to

produce an honest assessment with broad commitment as to what

is achievable in terms of regulatory convergence and

standards recognition. Germany could use this assessment to

persuade skeptics in Brussels and other EU member states that

Germany's, and EU's, interests lie in accelerating the

important process of regulatory convergence and standard

recognition.

TIMKEN JR

Several years later, US politicians were jubilant, saying that the “EU Makes Progress Towards, An EU-wide Patent System” (from Monday, the 14th of December, 2009). “The ministers also reached a deal on the establishment of an EU patent court system,” says the cable, “that would set up a single European appeals courts for patent infringement disputes. The agreement paves the way for further discussion, under Spanish and later Presidencies, towards a future patent system, but, given institutional and procedural hurdles, such a system is likely still one or more years away.” Here is the full cable:

VZCZCXRO5488

RR RUEHIK

DE RUEHBS #1673/01 3481522

ZNR UUUUU ZZH

R 141522Z DEC 09

FM USEU BRUSSELS

TO RUEHC/SECSTATE WASHDC

INFO RUCNMEM/EU MEMBER STATES COLLECTIVE

RUEHSS/OECD POSTS COLLECTIVE

UNCLAS SECTION 01 OF 02 BRUSSELS 001673

SENSITIVE

SIPDIS

STATE FOR EUR/ERA KESSLER

STATE FOR NSC KVIEN, DBELL

STATE FOR EEB/TPP/IPE URBAN

USDOC FOR ITA/MAC/EUR/OEU/DEFALCO

USDOC FOR ITA/MAS/OCG/JFERMAN

USDOC FOR ITA/MAS/OTEC/RBLANKENBAKER

STATE PASS TO USTR

E.O. 12958: N/A

TAGS: KIPR [Intellectual Property Rights],

EIND [Industry and Manufacturing],

ETRD [Foreign Trade], SENV [Environmental Affairs],

ECON [Economic Conditions], TPHY [Physical Sciences],

TSPL [Science and Technology Policy], EUR, EUN [European Union]

SUBJECT: EU MAKES PROGRESS TOWARDS, AN EU-WIDE PATENT SYSTEM

BRUSSELS 00001673 001.2 OF 002

¶1. SUMMARY: At a Competitiveness Council meeting in Brussels

December 4, EU industry ministers reached a political

agreement on a process to move toward setting up a single EU

patent to replace the multitude of national patents in force

across 27 member states. The ministers also reached a deal

on the establishment of an EU patent court system that would

set up a single European appeals courts for patent

infringement disputes. The agreement paves the way for

further discussion, under Spanish and later Presidencies,

towards a future patent system, but, given institutional and

procedural hurdles, such a system is likely still one or more

years away. END

SUMMARY


BACKGROUND


¶2. The EU has long had a goal of creating a single EU patent

system under which, as in the United States, a patent could

be applied for and granted through a single office, valid in

all 27 member states. Such a system would, according to

Commission proponents, save firms at least 150 million

Euros/year.

¶3. The EU has tried and failed to launch a common patent a

number of times. The first effort was the Community Patent

Convention (CPC) signed in Luxembourg, December, 1975, by the

nine EU states at the time, but never ratified. An Agreement

Related to Community Patents was signed by the EU 12, in

Luxembourg in December, 1989, but also was never ratified by

all signatories and thus never entered into force. A

political agreement on an approach to an EU patent was

achieved in 2003, but foundered in 2004 when the

Competitiveness Council failed to agree on details of the

regulation.

¶4. Unable to reach agreement on a common patent, European

member states agreed to the European Patent Convention, which

created the European Patent Office (EPO). This differs from

a community-wide patent in that the EPC is a mutual

recognition of nationally agreed patents and includes non-EU

European states as signatories. The arrangement does not,

however, represent a centrally enforceable, European

Union-wide patent.


LATEST EFFORTS MAY BE MORE SUCCESSFUL . . .


¶5. At a December 4 Competitiveness Council meeting, the

Swedish presidency was able to use new powers under the

Lisbon Treaty to gain get member states to agree to the basic

parameters of an approach to an EU common patent and

supporting institutions. The Commission will use this result

to draw up specific legislative proposals. Political

agreement on the key elements of the proposal should

facilitate adoption by the Council and European Parliament.

¶6. Article 118 of the Treaty on the Functioning of the

European Union (TFEU), which consolidates the Treaty of the

European Union with the Treaty of Lisbon, provides for the

creation of European intellectual property rights (IPR) and

the setting up of centralized, EU-wide arrangements for the

authorization, coordination, and supervision of IPR in the

EU. It also calls for establishment of language arrangements

for translations of European IPR, long an issue in the

creation of an EU patent. The entry into force of Lisbon on

December 1, then, provided additional clear legal support for

the patent.

¶7. The new political agreement on an Enhanced Patent System

in Europe calls for the creation of a European and EU Patents

Court (EEUPC), an EU patent (along with a separate regulation

governing translation arrangements for the EU patent), an

enhanced partnership with the EPO, and, as necessary,

amendments to the EPC. Under the agreement, the EEUPC would

be made up of a Court of First Instance, a Court of Appeals,

and a Registry. The EEUPC would be financed by court fees

and contributions from the EU member states at least during

the transition period (five years after entry into force).

The court would be composed of judges with patent litigation

experience at the national level. In addition, non-EU

BRUSSELS 00001673 002.2 OF 002

contracting members of the EPC could accede to the agreement

as well.


. . . BUT NOT A LOCK


¶8. But hurdles remain. The European Union Court of Justice

(EUCJ) is currently considering whether a new European patent

court can be set up (presumably out of concern that such a

system could be contrary to the EUCJ's role as guardians of

the EU Treaties). Member states are not united in their

support for an EU-wide patent, with national patent offices

set to lose patent renewal fees and some competence under the

proposal. And, while the Lisbon Treaty offers legal support

for both a centralized approach to IPR and patent systems and

translation arrangements, the mechanics of both are unclear.


CONCLUSION


¶9. While the notion of an EU-wide patent has been around for

some time, this agreement should come as welcome news for

supporters of a strong internal market and a more robust EU

patent regime. With entry into force of a final regulation

two or three presidencies away, there is time yet for a

roadblock or two, with the EUCJ opinion the largest potential

deal maker or breaker. But political will for an agreement,

combined with the legal support of Lisbon, make an EU-wide

patent regime more likely than not in the near future.

MURRAY

.

As pointed out above (and as we covered in this site before), “The European Union Court of Justice (EUCJ) is currently considering whether a new European patent court can be set up (presumably out of concern that such a system could be contrary to the EUCJ’s role as guardians of the EU Treaties). Member states are not united in their support for an EU-wide patent, with national patent offices set to lose patent renewal fees and some competence under the proposal. And, while the Lisbon Treaty offers legal support for both a centralized approach to IPR and patent systems and translation arrangements, the mechanics of both are unclear. [...] the EUCJ opinion the largest potential deal maker or breaker. But political will for an agreement, combined with the legal support of Lisbon, make an EU-wide patent regime more likely than not in the near future.”

We really need to stop this in order to keep software patents away and hopefully squash them all together, in one fell swoop. █

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