What 52% tells us about the Unitary Patent discussions

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

What 52% tells us about the Unitary Patent discussions

There’s lots of good stats in the UK IPO’s excellent Corporate Plan 2014-17. One of the most revealing is that more than half of its income comes from European patent renewals

Yes, that’s right: the UK IPO makes more money from renewing EP(UK) patents than from all its other activities put together. According to the Office’s three-year plan, published this month, EP (UK) renewals are expected to bring in just over £42 million ($70 million) – that is 52% of total income – in 2014-15.

This will not be news to patent owners, particularly those who have to pay the extensive renewal fees for each member state in which their European patent is designated. There’s also no reason to think the UK is exceptional – I expect most European offices make a similar proportion of their income from EP renewals, if not more (though they may not be as transparent about it).

But it is worth thinking about as the 25 EU member states that have signed up to the Unitary Patent haggle over the fees to be charged.

Unlike European patents, Unitary Patents will be renewed centrally at the EPO. You might think therefore that little or no money will be distributed to national offices. But the EU Regulation specifically sets out that 50% of fees will be distributed to national offices based on “fair, equitable and relevant criteria”.

That was the result of a political compromise. And you can see why: if applicants switch away from European patents to Unitary Patents in large numbers, that will leave a big hole in the income of many national offices.

My understanding is that the UK’s position is that change is inevitable, and the system should be designed to offer value to users rather than revenue to national offices, even if that means a big drop in revenue. The Corporate Plan in fact notes that the Unitary Patent may have an effect on demand towards the latter part of the three-year plan.

But that will not be true of other offices in Europe.

And that tension explains why discussions over the renewal fees are still continuing, and we do not yet have any light on what they will be. As EPO President Benoit Battistelli told us last year, keeping fees down while trying to maintain national office revenues is “like trying to transform a circle into a square”.

But as we have argued before (Unitary Patent figures don’t add up; The importance of getting Unitary Patent fees right, Patent practitioners call for cost clarity), if the price of a Unitary Patent isn’t right, there’s no good reason why applicants should use it.

more from across site and SHARED ros bottom lb

More from across our site

A development concerning Stephen Thaler’s AI copyright application in India and an integration between IPH group firms were also among the top talking points
As concerns around the little-known litigation tool increase, practitioners say they are educating their clients on how it can be most effective
Kilburn & Strode and Mewburn Ellis are just two firms that have invested heavily in office space – a sign that the legal industry is serious about in-person working
In major recent developments, Dyson snagged another win against Hong Kong-based competitor Dreame and a new AI-powered UPC platform was launched
Mohit and Sidhant Goel decided not to pursue an interim injunction application so that their client, Communications Components Antenna, could benefit from a fast-track trial
Anita Cade, head of Ashurst’s IP and media team in Australia, discusses why law firms that can pull together capability across different practice areas and jurisdictions stand to gain
INTA’s CEO says London-based firms have registered fewer delegates compared to past meetings in San Diego and Atlanta, and questions the 'ethics' of trying to participate without registering
Lobbies and interest groups are among the interveners in a major dispute over whether courts can set patent pool rates
Benoit Geurts and Coreena Brinck will help the firm ‘accelerate its innovation agenda’, according to its managing partner
News of a trademark row over Taylor Swift’s ‘The Life of a Showgirl’ and Nokia’s expansion of its IoT licensing programme were also among the top talking points
Gift this article