Deal brings new EU patents closer

28 June 2011 Last updated at 14:57 GMT Simplifying European patents is part of a drive to boost innovation in the EU All but two of the EU's 27 member states have agreed to set up a common European patent system that could mean big savings for hundreds of firms.

Currently European patents can cost ten times more than patents registered in the US because of translation costs.

A fast-track procedure is being used to make the common patent a reality, but there is still a big legal obstacle.

Italy and Spain fear discrimination because patents would be filed only in English, French or German.

The two countries have lodged a legal challenge with the EU's top court, the European Court of Justice (ECJ), arguing that the new enhanced co-operation procedure should not be used to bring in the patent system.

The procedure, which came in with the Lisbon Treaty, allows a group of countries to go ahead with EU legislation even when not all 27 member states agree.

It has not been used before for EU single market issues, and Italy and Spain consider its use to be illegal in an area as sensitive as patents.

Legality questioned

In March the ECJ, based in Luxembourg, raised a separate objection to the common patent plan. It warned that the planned new European Patent Court would infringe EU law.

According to the ECJ, the court as envisaged would be above national courts in patent cases that could affect many EU citizens. It would be outside the EU's judicial framework but would rule on matters affecting the EU, the ECJ said in a legal opinion.

Despite the legal wrangling, 25 governments represented in the EU's Competitiveness Council gave the go-ahead on Monday to begin formal talks with the European Parliament and EU Commission on setting up a common patent system.

The UK's Intellectual Property Minister, Baroness Wilcox, said a breakthrough on patents was "crucial for UK industry".

"It is vital to offer businesses the same access to patent protection in their home market of Europe as competitors in the US, China and Japan enjoy in theirs," she said.

"A unitary patent and court system will save businesses time and money... The savings to UK business are likely to be around ?20m per year in translation costs alone."

For about a decade, efforts to get an EU-wide agreement on patents have been blocked by language disputes and the lack of unanimity.

Single market priority

Hungary's Minister for Economic Strategy, Zoltan Csefalvay, said the new agreement sent a clear signal that "the EU is able to deliver on a topic of such crucial importance for European innovation and competitiveness".

He called the current fragmented patent system an "innovation tax" on European enterprises.

The EU Internal Market Commissioner, Michel Barnier, said the enhanced co-operation procedure still left the door open for Italy and Spain to join the other EU states in embracing a new patent system.

He insisted that the fast-track procedure was legal because "European treaties envisage it for cases where there is no other mechanism or option".

The Association for Competitive Technology (ACT), a grouping of European technology firms, welcomed the ministers' agreement.

ACT president Jonathan Zuck said "strong intellectual property protection is essential if the European Union wants to remain competitive and achieve even greater innovation".

"A fragmented and over-complicated patent system does not have a place in today's market - Spain and Italy should be pragmatic."

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Energy saving plan comes closer

2 June 2011 Last updated at 10:36 GMT The cost of the work will be added to electricity or gas bills The government has revealed more details of its Green Deal scheme to help people pay for home insulation and other energy saving measures.

The plan should be launched in the autumn of next year.

Under it, authorised companies will pay for the insulation work and homeowners will repay the money, plus interest, through additional charges on their energy bills.

The government hopes people will repay loans of up to ?10,000, over 25 years.

Climate change minister Greg Barker said: "The Green Deal is the government's flagship energy saving plan to transform the country's homes to make them warmer and cheaper to run.

"From next year, people will be able to access up to ?10,000 upfront to pay for energy efficiency work, repaying the costs through savings on energy bills."

Legal changes

The scheme still requires a lot of work before it is ready to start.

A few firms such as Marks & Spencer, B&Q, Tesco and British Gas have expressed an interest in marketing the scheme and providing the finance.

But the law will need to be changed so that energy firms will be obliged to collect the repayments from homeowners via their energy bills.

The law will also need to be altered so that anyone who buys after the work has been done, but before the bill has been fully paid, is obliged to take on the debt and repay it.

These legal changes are included in the current Energy Bill, which is going through parliament and should receive its Royal Assent this July.

It has also not yet been decided just how much interest will be added to the loans.

How will it work?

The firms who eventually market the Green Deal will employ assessors to estimate just how much a householder can save through various insulation or heating measures.

These may include loft insulation, condensing boilers, draught proofing, solar panels and double glazing.

Once the work is assessed and agreed, the installation work will be contracted out to accredited installers.

Then the homeowners will have to start paying.

A key feature is that homeowners must be able to save more on their energy bills than they pay back.

What is the attraction for the big firms that the government hopes will market the scheme?

"Companies will see it as a marketing opportunity to sell other things," said a spokeswoman for the Department of Energy and Climate Change.

Anne Robinson, of the price comparison website Uswitch, said: "People who have the Green Deal will be paying a lot less for their energy after a year or two."

But Richard Lloyd, of the consumers' association Which?, warned against the dangers of shoddy workmanship.

"Our latest research into cavity wall insulation uncovered inadequate inspections and poor advice," he said.

"For this scheme to be a success, Green Deal assessors need to be held to the highest standards."

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