German technology companies are encountering increasing competition from Chinese companies who are protecting themselves in their own country with more and more patents. In the US, companies are having to wait longer and longer for their patents to be accepted. Germany received the best marks of all countries from the patent lawyers. These are the results of a survey summarised by the international law firm of Taylor Wessing (Germany: Düsseldorf; www.taylorwessing.com) in the Global Intellectual Property Index (GIPI).

According to the study, China is catching up all the time in matters of patent law. “In terms of patent applications and patent licences, the country is constantly gaining in importance,” said Roland Küppers, a partner in patent law at Taylor Wessing. Many internationally operating Chinese companies have since protected their technologies with patents in their own country. “Chinese companies deploy their patents in patent disputes in the same way as commercial products,” explained Küppers. “In conflicts, Chinese companies now offer their opponents the possibility of jointly licensing their patent-protected technology.” In the US, on the other hand, the detailed and lengthy checking of patent applications is resulting in a devaluation in global terms. It takes an average of three years for US experts to examine a patent application. More than 700,000 as yet unexamined applications from the last few years have led to the build-up of a considerable backlog. The participants in the GIPI study expressed criticism that the examiners in the US patent office are under a great deal of pressure and that the many mistakes further extend the examination period. There is often a lack of public funds to equip the US patent office. A legal initiative aimed at eliminating these flaws still has to be approved by parliament. In fact, patent applicants in the US face immense costs if patents have to be enforced in court because of the high court costs and possible damage compensation payments.

The procedures for patent protection in Germany received the best marks worldwide from the patent lawyers in attorney’s offices and corporations. They received high marks on various counts: actions and proceedings are designed effectively, patents can be applied for, disputed and defended quickly and inexpensively, and specialised courts with expert, internationally recognised judges decide on contentious cases. The nullity proceeding modernised in 2009 now also allow companies to defeat patents from competitors much quicker than before. Such proceedings, which are frequently conducted in parallel with a patent infringement suit, have been significantly speeded up through quick decisions by the nullity senates. The appeals procedures should also become shorter in future because the highest instance will no longer have to re-check all the facts and then obtain an expert opinion.

The legal picture for patent protection has become more and more similar worldwide. The gap between the countries with the best and worst evaluations is smaller than ever. In Europe, Spain, Poland and Italy have improved the most. Last year, Spain deregulated its application procedure and reduced costs at the same time. Poland improved the quality and efficiency of examining patent claims, while Italy speeded up patent litigation procedures.