loader image

New joint EPO-EUIPO study on startup finance reveals how IP helps startups raise finance

European startups applying for patents and/or trademarks during their initial seed or early growth stages are up to 10.2 times more likely to secure funding from investors. What’s more, the ownership of European patents and EU trademarks is associated with an even higher advantage, with a rate of securing early-stage funding exceeding five times that of those with only national intellectual property rights. These are the key findings of a new study published jointly by the EPO and EUIPO.
The key findings of the study include:

• On average, 29% of European startups have filed for patents or registered trademarks, though there are significant differences between industry sectors.
• Startups increasingly make use of IP rights as they grow, with a strong focus on European IP rights at all growth stages.
• The filing of patent and trademark applications in the seed or early growth stage is associated with a higher likelihood of subsequent venture capital (VC) funding.
• The filing of applications for European patent and EU trademark is associated with an even higher likelihood of subsequent VC funding for startups (compared to just national IP rights).
• The filing of patent and/or trademark applications is associated with a more than twice as high likelihood of successful exit for investors.

Diagnosing COVID-19: A perspective from U.S. patenting activity

The United States Patent and Trademark Office’s (USPTO) Office of the Chief Economist released a report revealing that small companies and universities led the way in developing inventions to diagnose COVID-19, as evidenced by patent applications filed at the USPTO through April 2023.
The U.S. federal government helped spur this invention, with 10.7% of COVID-19 diagnostic public filings receiving support. The National Institutes of Health provided the most assistance (about 64%), while the National Science Foundation provided the second most, at 21.59%. Although COVID-19 diagnostic invention was highly concentrated in a few technologies, 8.6% of these inventions were also applicable to the treatment of COVID-19. Among 5,585 global COVID-19 diagnostic patent families found in this study, 47% have at least one filing at the China National Intellectual Property Administration (CNIPA), the most of any jurisdiction.

Pfizer’s Billions: A Russian Patent Showdown

In a significant legal development within the pharmaceutical landscape, Pfizer, the American pharmaceutical giant, has initiated a legal battle in Russia to claim over 12.5 billion rubles from Nativa, a company currently undergoing bankruptcy proceedings. This substantial claim is believed to encompass the financial losses that Pfizer asserts it incurred due to the sale of a generic version of its anti-tumor medication, sunitinib, by Nativa.
The indicated legal dispute between Pfizer and Nativa is rooted in the alleged patent infringement related to Sunitinib-Native, a generic version of Pfizer’s oncological drug, Sutent. Notably, Nativa began marketing this generic in 2017, while Pfizer’s patent for sunitinib, the active component within Sutent, was still in effect until August 31, 2022. Pfizer had previously engaged in legal disputes with Nativa over patent infringements, aiming to terminate the production and distribution of Sunitinib-Native. The court initially ruled in favor of Nativa, granting them a compulsory license for sunitinib in exchange for annual payments to Pfizer, amounting to 10% of the product’s sales revenue. It was only in October 2022 that Pfizer successfully challenged this decision on appeal.
In the most recent development, the court granted Pfizer Innovations’ request for information from Nativa about the quantity and pricing of Sunitinib-Native, which has been available in the market since March 2017. Sunitinib-Native has remarkably overtaken the original Sutent in sales since 2019 – 8.12 billion rubles vs 4.88 billion rubles through state procurement between 2018 and 2022.
Current complex patent dispute extends to Nativa’s prior legal conflicts with prominent pharmaceutical entities, including BMS, Celgene, and AstraZeneca. By the time bankruptcy proceedings were initiated, Nativa no longer held valid certificates for its pharmaceutical products. As a result, some of these certificates, including sunitinib, were transferred to Pharmmental Group in 2021.
In the legal battle with Pfizer, Nativa’s insolvency adds complexity to the case, raising questions about the practicality of recovering substantial damages.

Planes against birds

According to international experts, the annual damage to global commercial aviation from bird strikes amounts to up to $1.2 billion. Engineers from the Vector Research Institute have received a Eurasian patent for a system that, using television, can prevent strikes even at poorly equipped airports.

The solution uses the digital broadcasting television center signals protecting equipment already installed on the territory of the airport from the effects of radar radiation.

The broadcasting center emits the digital broadcasting television signal. The signal is then reflected from the birds and received by surveillance channel antennas, and the direct signal from the broadcasting center is received by a reference channel antenna. The received signals are processed in the receiver. In case of a threat of collision, a threat processor launching the device of deterrence is activated.

The system provides autonomous operation, increases airport safety during the takeoff/landing of aircraft and reduces the number of false alarms.

EPO-CNIPA Joint Communiqué: PCT applicants in China may continue to designate EPO as their ISA

Nationals and residents of the People’s Republic of China will continue to have the option to select the EPO as their International Searching Authority (ISA) for international patent applications filed in English under the Patent Cooperation Treaty (PCT) until 30 November 2026. This follows the success of the pilot scheme first started in December 2020, which is being extended for a further three years as mutually agreed between the European Patent Office (EPO) and the China National Intellectual Property Administration (CNIPA).
This extension enables nationals and residents of the People’s Republic of China to continue to obtain international searches and written opinions from the EPO, supporting their strategic objectives when considering patent protection in Europe. By using the EPO as their ISA, applicants can speed up the European patent grant process and save even more prosecution time if they request early entry into the European phase. Furthermore, they can save costs as neither a supplementary European search nor a translation of the PCT application would be required and the examination fee payable on entry into the European phase would be reduced by 75% when requesting international preliminary examination under PCT Chapter II with the EPO.
The decision to extend the scheme follows the pilot’s favourable evaluation by applicants, including enterprises, universities, research institutes, and private individuals. The capacity of the pilot remains set at 3 000 applications per year.

AstraZeneca Challenges Osimertinib Registration in Russian Court

At the beginning of September, a major British-Swedish pharmaceutical group, AstraZeneca, made headlines by taking legal action in the Moscow Arbitration Court. They aim to dispute the Russian Ministry of Health’s decision regarding the approval of the oncology drug, Osimertinib, as submitted by Russian pharmaceutical firm Axelfarm.

Osimertinib is a substance invented by AstraZeneca and protected in Russia and Eurasian region by an Eurasian patent valid until 2032.

AstraZeneca considers the drug Osimertinib to be a reproduced pharmaceutical product (generic), meaning a drug with the same qualitative and quantitative composition of active ingredients as its pharmaceutical product Tagrisso, which is supplied to Russia.

The drug is indicated as a therapy for non-small cell lung cancer with EGFR gene mutations. According to data from the phase III ADAURA clinical trial, Osimertinib reduces the risk of recurrence or death by 80% when used as adjuvant therapy for the early stages of this type of cancer.

Axelfarm first submitted documents for the registration of Osimertinib in December 2020. In 2021, AstraZeneca claimed a violation of patent rights for Tagrisso. However, the company’s lawsuit remained unresolved. According to the court’s decision, the intention to register a generic cannot be considered a threat of patent rights infringement.

The preliminary hearing for this new case is scheduled for October 30th.

There were other legal precedents concerning Osimertinib, for example, in the USA AstraZeneca achieved favorable resolutions in its patent infringement litigations with Zydus Pharmaceuticals, Cadila Healthcare, MSN Laboratories, and MSN Pharmaceuticals in 2021 and with Alembic Pharmaceuticals in 2022.

In the meantime, AstraZeneca itself faced a different challenge concerning Tagrisso patents. This is because Puma Biotechnology and Pfizer’s Wyeth initiated their own lawsuit against AstraZeneca in 2022 for infringement of two US patents, the results of which are yet to be seen.

PLAYSTATION CALLS FOR FAIR PLAY

In 2023 Sony Interactive Entertainment Inc, the owner of PLAYSTATION trademarks, initiated multiple court cases against counterfeiters in the Russian Federation. The court recognized several cases of infringement of IP rights and awarded monetary compensation for sales of fake PLAYSTATION game consoles on popular marketplaces. Despite the currently limited presence in the market, many companies such as SONY continue to carefully monitor and combat illegal trademark use.

The Commercial Court Registry shows 27 cases initiated by Sony Interactive Entertainment Inc. in 2023 against various individuals in different regions of the country including 12 last August. That is a remarkable increase comparing to one case filed by Sony during the entire year of 2022. Some of the cases have already been decided in favor of Sony Interactive Entertainment satisfying the claims in full or partially. Some cases are based on trademark infringement while the decisions refer to illegal sale of PLAYSTATION gamepads on the widely used online platform Wildberries. Rapidly raising popularity of online retail platforms brings more counterfeit opportunities, so the marketplaces take actions to prevent and fight infringement. Wildberries, for example, introduced their own tool called digital arbitration.

Regarding Sony’s increase in court activity in comparison to the years preceding 2022, the reason could be legalization of parallel import which allowed third parties to import the goods labelled by brands that had left the Russian market. Although parallel import allows only genuine goods, once the borders have been opened for third party importers, the higher percentage of fake products calls for increased attention from the right holders.

Among other companies actively combatting IP rights infringement is Robert Bosch GmbH that has already filed 163 cases in 2023 and Harman International Industries Incorporated – the Samsung-owned company, holder of JBL trademarks – which is a Plaintiff in more than 430 court cases in Russia this year.

These numbers show that despite the unstable environment and suspension of activity many manufacturers and trademark holders find it important to keep the counterfeit level as low as possible and continue to carefully sustain their reputation for consumers.

Harman’s JBL speakers designs protection: to be continued

If one asks for a list of companies that protect its rights abroad to the fullest, we would definitely recall Harman International Industries (hereinafter – Harman) producing electronic audio devices. This American company owned by Samsung Corporation is widely known for such brands as JBL and AKG. Over the last two years, Harman has been especially active in struggling against infringement of its intellectual property. For instance, Harman has filed more than a 1000 lawsuits with the Russian commercial courts. This overview contains key information about the latest legal proceedings initiated by Harman.

Remarkably, Harman keeps fighting not only for its trademark rights. In addition, this company is constantly monitoring the cases of illegal imitation or copying its industrial designs. Therefore, Harman approaches courts with various claims: to destroy the revealed counterfeit goods, to terminate the illegal use of patents, to pay compensation for trademark rights infringement, etc. The vast majority of these lawsuits were satisfied. Moreover, a substantial part of the cases was considered via simplified procedure without parties’ participation and series of hearings.

One more legal proceeding is about to be held. In October 2023 the Commercial Court of Moscow will start litigation between Harman and one of the leading consumer electronics retailers in Russia M.Video-Eldorado Group (hereinafter – M.Video) on the case no. А40-147100/2023. Harman accuses M.Video of violating its exclusive rights for design of portable wireless speakers and requests compensation. With no doubt, opposing such solid market participant as M.Video will be complicated and durable.

The current court cases demonstrate that many foreign companies don’t tend to weaken their grip over brands, patents and other incorporeal property in the Russian jurisdiction.

Eurasian patent for technology for the production of immunoglobulin for the treatment of COVID-19

The global easing of the regime of preventive measures against coronavirus infection after almost two years of the pandemic does not yet guarantee a regime of absolute calm. The COVID-19 virus and its evolving strains remain, although already familiar, still a significant threat.

Against this background, Russian scientists continue to protect with patents new methods for obtaining components of possible drugs for the prevention and treatment of coronavirus infection, improving both their effectiveness and reducing the cost of obtaining such components.
A new method for producing immunoglobulin G, for which Eurasian patent No. 044535 was issued in August, was developed by the National Immunobiological Company.
The process of obtaining a patented component includes the selection of donor plasma, alcohol fractionation of plasma to obtain precipitate II+III according to Cohn, dissolution of the resulting precipitate II+III in a buffer solution, viral solvent-detergent inactivation and chromatographic purification.
It was the use of blood components containing antibodies to SARS-CoV-2 that became one of the first solutions that doctors around the world proposed for the prevention and control of COVID-19. Over the long months of the pandemic, the proposed method has repeatedly proven its effectiveness, which also depended on the receipt of the starting components.
The method of Russian scientists, protected by a Eurasian patent, uses a simpler and more routine analytical method for collecting plasma samples – enzyme-linked immunosorbent assay (ELISA), which allows testing a large number of plasma samples in a short time.
The drug obtained according to the technology has a higher degree of viral safety compared to analogues and contains 6-22 times more diverse antibodies than the original plasma, which provides a wider range of antiviral activity and makes drugs based on immunoglobulin G much more effective.

The UK government’s code of practice on copyright and AI

Sir Patrick Vallance, the Government Chief Scientific Adviser, completed a review with proposals on pro-innovation regulation for digital technologies. In a response published on 15 March 2023, the Government acknowledged the urgent need to regulate the relationship between intellectual property and generative AI. The government is now working with users and rights holders on a code of practice on copyright and AI. The code of practice aims to make licences for data mining more available. It will help to overcome barriers that AI firms and users currently face, and ensure there are protections for rights holders. This ensures that the UK copyright framework promotes and rewards investment in creativity. It also supports the ambition for the UK to be a world leader in research and AI innovation.
The Intellectual Property Office invited industry representatives from the technology, creative and research sectors to form a working group. These sectors will help to ensure a balanced and pragmatic code of practice. It will enable both the AI and creative sectors to grow in partnership.
Working group meetings commenced on 5 June 2023. The government expects parties to enter into the final code of practice on a voluntary basis. If the code of practice is not adopted or agreement is not reached, legislation could be considered.

IP Court ruled to issue supplemental patent for RYALTRIS® nasal spray despite Rospatent refusal

In a recent decision of June 6, 2023, the IP Court overturned the Rospatent Refusal to extend the term of patent RU2687551 for RYALTRIS® nasal spray in the territory of the Russian Federation

The decision of Rospatent of July 21, 2022 to refuse extension of the patent term has been based on the conclusion that the set of claims proposed for the supplemental patent does not characterize a product relating to RYALTRIS® nasal spray (Marketing Approval LP – 006768), since the amount of one of the excipients (Na CMC) in the claims is recited as a range, but not as a specific value, as in the approved product. This was considered to be an obstacle for the patent term extension, since according to the Russian legislation, after issuance of a marketing approval for a pharmaceutical, a patent term can be extended with a supplemental patent issued with the claims adapted to cover exactly the composition of the drug approved for use.

The patent owner, Glenmark Specialty S.A., a subsidiary of the global research-based pharmaceutical company Glenmark Pharma, disagreed with the Rospatent decision and appealed to the IP Court.

A team of experienced PATENTICA representatives, Ms. Ekaterina Petrova, MSc. Biotech., patent attorney, and Mr. Alexander Tymofeev, lawyer, prepared and submitted before the IP Court an appeal supporting that the proposed set of claims totally covers RYALTRIS® nasal spray. The IP Court has appointed a court expert, specialist in the art,  who conducted detailed comparison analysis of the features recited in the independent claim with the composition of the nasal spray RYALTRIS®  disclosed in the instruction for medical use, and came to the same conclusion that all of the features of the independent claim proposed by the applicant fully coincide with the characteristics of the drug RYALTRIS®. Thanks to the professional expertise and convincing arguments prepared by PATENTICA representatives, whose opinion has been supported by the court expert evidence, and in view of Art. 1363(2) of the Civil Code, the IP Court has come to a justifiable conclusion that the term of patent RU2687551 relating to RYALTRIS® nasal spray shall be extended in the territory of the Russian Federation (IP Court decision СИП-954/2022 of June 6, 2023, https://kad.arbitr.ru/Card?number=%D0%A1%D0%98%D0%9F-954/2022).

Europe Launches Game-Changing Patent System

Europe made a giant step forward in patent protection on June 1, 2023, as it introduced the Unitary Patent system, a ground-breaking approach that promises a new era of efficiency and collaboration in patent safeguarding.

The Unitary Patent system represents a major shift in how patents are handled in Europe. Designed to modernize the patent landscape, this innovation brings a range of benefits that will make patent processes smoother and more transparent for everyone involved. From cost savings and simplified procedures to improved clarity and stronger legal protection, the Unitary Patent system aims to provide a better experience for its users.

It will now be possible to file a single patent application, pay single renewal fee in one currency once the patent is granted and even take the legal proceedings through the Unified Patent Court (UPC), a singular system introduced simultaneously. With the UPC’s debut, patent enforcement becomes centralized, offering a platform for resolving cases at a broader European level.

Seventeen countries with combined GDP over EUR 12 trillion (nearly 80% of the entire EU’s GDP) and 300 million of inhabitants have already joined the new system. These include Austria, Belgium, Bulgaria, Denmark, Estonia, Finland, France, Germany, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovenia, and Sweden. It is anticipated that eight more EU member states will enroll in the future.

With the Unitary Patent system now operational, Europe is better positioned to support inventors and entrepreneurs in protecting their intellectual property, driving progress across the region.