Erik Nijs

Nederlandsch Octrooibureau

Netherlands Amending the Act: major changes on the horizon

Until 1995, the Netherlands Office (NPO) granted In addition to the proposed amendments to the patents only after substantive examination, in which a Patents Act 1995, a new working agreement between the technical examiner assessed whether the invention EPO and the Netherlands entered into force in July 2006. claimed in the application was new and involved an As a result of the working agreement, the EPO continues inventive step. However, the success of the European to carry out searches for Dutch patent patent system affected the number of national patent applications filed with the NPO. However, following the applications filed in the Netherlands. This number European and Patent Cooperation Treaty procedures, the decreased from over 12,500 in 1978, when the European search report is now accompanied by a written opinion Patent Office (EPO) opened, to fewer than 3,000 in 1990. on the question of whether the invention claimed in the It was predicted that the workload of the NPO would is new and involves an inventive step become insufficient to maintain a staff of technical with respect to the prior art cited in the search report. examiners skilled in all fields of technology. As the Although the written opinion is not binding, it provides quality of substantive examination depends to a large a tool for assessing the validity of the patent, both for the extent on the knowledge and experience of the technical proprietor and for third parties. This increases legal examiners, the Netherlands decided to switch to a certainty. registration system for patents. In 1995 the NPO began to The most important changes in the Dutch patent grant patents without substantive examination; the system after the amended Patents Act has entered into patent is granted according to the application drafted by force will be as follows: the applicant no matter whether the claimed invention is patentable. After grant, it is up to the Dutch courts to • The six-year patent will be abolished; decide on the validity of the patent. • Patent applications in English will be accepted During 2005 and 2006 the Patents Act 1995 was (although the claims must still be in Dutch); reviewed (see Evaluatie 2006 Rijksoctrooiwet 1995, which • The first annual fee will be due after three years, can be downloaded in Dutch at www.minez.nl). The instead of after four years; general conclusion of the review was that the Dutch • The NPO will be more active in advisory proceedings registration system is a valuable supplement to the regarding the nullification of patents; and European patent system and provides a good balance of • The partial or full surrender of a patent will have speed, reasonable costs and legal certainty. However, the retroactive effect. review also revealed that there is a need for increased legal certainty, reduced costs and improved patent Abolition of the six-year patent awareness. Under the Patents Act 1995, an applicant can choose In July 2007 the Tweede Kamer (House of between a six-year and a 20-year patent. The term of the Representatives) of the Dutch Parliament approved a patent is 20 years if the applicant requests a search of proposal to amend the Patents Act. Before it can enter prior art, and six years if such a search is not requested. into force, the amended Patents Act requires the The six-year patent has been referred to as a utility approval of the Eerste Kamer (Senate) of the Dutch model similar to the German . However, Parliament. The amended act is expected to enter into this is not strictly correct because no utility model system force in the first half of 2008. exists in the Netherlands. The substantive requirements

152 Building and enforcing intellectual property value 2008 Nederlandsch Octrooibureau Netherlands

(ie, and inventive step), although not checked application. Under the Patents Act 1995, Dutch patent under the Dutch registration system, are identical for the applications must be filed in Dutch. If a Dutch applicant six-year and 20-year patents. files a subsequent patent application abroad claiming One key criticism which emerged from the review of priority from the Dutch patent application, a translation the Patents Act 1995 was that the six-year patent can lead is necessary. The Dutch text is usually translated into to unwanted legal uncertainty for both patent English. The new, relaxed language requirement aims to proprietors and third parties. As no search report by the reduce these translation costs. The Dutch Parliament NPO or the EPO is available for the six-year patent, expects that small and medium-sized companies will neither the patent proprietor nor third parties obtain particularly benefit from the reduction in translation information about novelty and inventive step in regard costs. As the claims of the application must still be to the six-year patent. As this is generally felt to cause too submitted in Dutch, legal certainty should be much uncertainty, the six-year patent will be abolished. safeguarded. Thus, under the amended Patents Act, a search will be The Netherlands will be one of the first countries in carried out for all patent applications. All patent Europe to depart from the national language applications will follow the existing procedure for requirement for national patents. Although the impact of obtaining a 20-year patent. If the patent application is a this step remains to be seen, the change could have major first filing, the search report should generally be implications for the number of Dutch applications filed available within nine months of filing the patent by foreign companies. Both Dutch and foreign applicants application. The search report is accompanied by a will benefit from the reduction in translation costs. If a written opinion, in which the European examiner foreign company already has the English text of a patent explains the relevance of the documents cited in the application, a full translation is not required; the search report. Approximately 18 months after the filing translation of the claims into Dutch will suffice to obtain date, the NPO will enter the application in the Patent a Dutch patent. Thus, the number of Dutch patents Register. The NPO will grant the 20-year patent as soon claiming priority from foreign filings could increase as the patent application has been entered in the register. substantially. If the patent application claims priority from another At the same time, Dutch companies will no longer be application, the search report may be received rather late. able to read Dutch patents in the Dutch language when In that case, the NPO grants the patent at least two they are trying to avoid infringing competitors’ patents. months after dispatch of the search report. This two- Although the claims, which will be in Dutch, determine month time limit relates to the applicant’s right to amend the scope of protection, infringement must also be the application after the search report and before grant. assessed using the description to interpret the claims. If the description is in English, a Dutch company which is Filing applications in English not proficient in the English language will need to The amended Patents Act will allow for the filing of translate the description into Dutch. The translation costs patent applications (except for the claims) in English. which the proprietor no longer has to pay for the Thus, the NPO will accept Dutch patent applications in description as it is filed in English will then fall to the English, provided that the claims are written or Dutch competitor to pay. Clearly, this will affect small translated into Dutch. and medium-sized companies rather than larger The provision that the language requirement is multinationals, which generally have better English irrelevant for obtaining a filing date remains unchanged. language skills. If a Dutch patent application is filed in a language other The liberalised language requirement in the amended than Dutch or English, a filing date will be accorded, but Patents Act is isolated from the London Agreement, the applicant must file a translation in Dutch or English which is expected to enter into force in the first half of shortly after filing (except for the claims, which must be 2008. The parties to the London Agreement will largely translated into Dutch). waive the requirement for translations of granted The motivation for this fundamental amendment can European patents to be filed in their national language. be found in the explanatory memorandum to the For states having one of the three EPO languages (ie, amended Patents Act: filing in English is allowed in English, French or German) as an official language, a order to reduce translation costs for Dutch applicants translation of the claims into their national language is when filing patent applications outside the Netherlands. already a condition for grant of the European patent and Dutch applicants often use the Dutch patent application there will be no further translation provisions. For other as the basis for an international or European patent states, the claims must still be translated into the national

Building and enforcing intellectual property value 2008 153 Netherlands Nederlandsch Octrooibureau

language and the text of the patent needs to be provided grounds for nullification apply to a particular registered in a specific EPO language – for example, the patent. Based on this advisory report, third parties may Netherlands requires an English text. The London gain an insight into the validity of the registered patent. Agreement can be downloaded at www.epo.org. A party instigating nullification proceedings before the Thus, the London Agreement will also force many Dutch courts will be admitted only if it has obtained such European companies to read European patents in a an advisory report. The Dutch courts usually confirm the foreign language when assessing infringement. conclusions as to validity that are set out in the advisory However, the London Agreement will reduce the overall report. translation costs for proprietors of European patents and The request for the advisory report should be the reduction of these costs has been welcomed. As the reasoned and indicate the objections to the patent. acceptance of English as a language for national Dutch According to the Patents Act 1995, the NPO is restricted patent applications is unilateral, Dutch companies will to the consideration of the grounds for nullification set not yet benefit from reduced translation costs in most out in the request. The NPO may not consider a ground other countries when filing nationally. Therefore, there is for nullification which is not included in the request for concern that this may put Dutch companies at a the advisory report. disadvantage in comparison to foreign companies. The amended Patents Act will empower the NPO to supplement the advisory report with nullification Annual fees grounds which have not been raised in the request, but Under the Patents Act 1995, the proprietor must pay an which can be derived from the search report. Therefore, annual fee in order to maintain the patent from the fifth the NPO will become more active in advisory year after the filing date. This means that for four years proceedings. As a result, the quality of the advisory from the filing date, no annual fees are payable. The report is expected to rise so that third parties obtain a annual fees increase progressively as the patent gets older. more complete understanding of the validity of a patent. The annual fees are meant to encourage patent proprietors to consider whether they want to maintain Surrendering a patent their patents. The Netherlands belongs to a small group During the life of a patent, the proprietor may surrender of countries in Europe which charge annual fees from the that patent wholly or in part. This could be desirable fifth year only. However, under the amended Patents where the proprietor expects that nullification of the Act, the first annual fee will become due one year earlier. patent or part of the patent is imminent. Under the Shortening the no-fee period by one year will encourage Patents Act 1995, the surrender of a patent has no patent proprietors to assess at an earlier stage whether to retroactive effect. maintain their patents. Three years is considered to be On December 13 2007 the revised European Patent sufficient to allow proprietors to explore the commercial Convention (EPC 2000) entered into force. The EPC 2000 possibilities of the patent. incorporates a new limitation procedure before the EPO to surrender a European patent, wholly or in part, which Advisory proceedings for nullification has retroactive effect. Therefore, the effect of surrender The Patents Act 1995 introduced the new system for for national Dutch patents is amended in a registration of patents. In order to compensate for the corresponding manner. Thus, under the amended lack of substantive examination, any person can ask the Patents Act, the surrender of a patent, wholly or in part, NPO to provide an advisory report on whether the will also have retroactive effect.

Erik Nijs is a Dutch and European patent attorney. He obtained an MSc Erik Nijs degree (cum laude) in aerospace engineering from Delft University of Dutch and European patent attorney, Technology. Mr Nijs works in the field of mechanical engineering. He has The Hague particular experience in offshore engineering, energy technology and Tel +31 70 331 2549 aerospace engineering. His clients range from international companies to Email [email protected] small and medium-sized enterprises. Nederlandsch Octrooibureau Netherlands

154 Building and enforcing intellectual property value 2008