The EU Competitiveness Council, which met in Brussels on May 29 and 30, held an "extensive debate" on both issues, following a report submitted by Slovenia, which holds the EU presidency until the end of this month.

The report summarized discussions that have taken place in recent months in the working group on patents, and said that "considerable progress" has been achieved on both proposals.

It added that the discussions provide "ground for optimism that solutions can be found for both the patent litigation system and the Community patent".

However, a number of issues remain to be resolved.

In particular, member states remain divided over whether the patent litigation system should be kept separate from the Community patent, or whether agreement should be reached in both areas together.

In the discussions last week, questions were raised over making the litigation system compatible with Community rules and the language regime that would apply.

Translation arrangements (the latest proposals envisage the use of automated translations) and distribution of renewal revenues were the main issues discussed regarding the Community patent.

The ministers asked for more work to be carried out under the next presidencies (France takes over in July) to find adequate solutions.

The next working party meeting is scheduled for June 11.

The Council also welcomed and supported the Commission's recommendation on the management of intellectual property in knowledge transfer activities, and recommended that its code of practice for universities and other public research organizations be broadly implemented.