Cost considerations for the European Unitary Patent

Submitted by song on
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As we all know, in order to maintain the validity of patent rights, patent holders need to pay annual fees on an annual basis. This is different from traditional European patents, which require paying annual fees of different amounts to patent offices in multiple countries and comply with the different annual fee payment rules and requirements of each country, especially the annual fee payment period of each country. However, the European unified patent is different. Patent holders can only pay an annual fee to the European Patent Office (EPO) in a single currency (Euro) within a unified period in accordance with the legal provisions of the European unified patent. This greatly simplifies the operating procedures for users.

The annual fee for the unified patent is very consistent with business interests. Its level is the same as the sum of the annual fees of the four European countries that took effect in 2015. The total annual fee for a unified patent in the first 10 years (the average life cycle of a European patent) is less than 5,000 euros, which is particularly attractive in the early stages.

Unified annual patent fee for each year (unit: Euro)

year

Unitary Patent (UP)

Currently covers 18 member states

25 member countries to strengthen cooperation

2 35 146 223
3 105 1,049 1,321
4 145 1,209 1,815
5 315 1,663 2,470
6 475 2,224 3,207
7 630 2,774 3,830
8 815 3,461 4,607
9 990 4,296 5,584
10 1,175 5,036 6,518
11 1,460 5,861 7,572
12 1,775 6,734 8,695
13 2,105 7,646 9,919
14 2,455 8,533 11,099
15 2,830 9,411 12,279
16 3,240 10,483 13,670
17 3,640 11,464 15,022
18 4,055 12,362 16,277
19 4,455 13,554 17,844
20 4,855 14,702 19,353

total:

  • Unitary Patent: EUR 35,555
  • Total annual fees for the 18 countries currently covered: 122,608 Euros
  • Total annual fees for the 25 enhanced cooperation members: 161,305 Euros (based on the national annual fee standards as of August 1, 2023)

Overall cost of the unitary patent

When comparing the total costs of the Unitary Patent with those of a traditional European patent, one should consider not only the annual fees, but also the validation and maintenance costs of the European patent. These costs usually include: translation costs for validation in each country; publication fees paid to the national patent offices; service fees for lawyers or other service agencies. Based on these comprehensive costs, it is clear that the overall cost of the Unitary Patent is lower than the cost of validation and maintenance in four Member States (the average number of validation countries at present). The more countries the Unitary Patent is validated, the more obvious the economic advantages of choosing the Unitary Patent become.

For example, the total cost of validating a European patent in Germany, France, Italy and the Netherlands (the four most frequently validated countries) and maintaining it until its 12th year can be as high as €16,527 (estimated based on attorney quotes; costs may be slightly lower if using an annuity firm).

In contrast, the Unitary Patent has slightly lower annual fees for the same period, and the cost can be significantly reduced to €11,399, which is a 31% saving compared to the traditional European patent. This saving is roughly the same in the 10th or 15th year. Even if the Unitary Patent is used in combination with the European Patent (for example, validation in major countries that do not participate in the Unitary Patent system, such as the UK or Switzerland), the overall cost is still 10%-19% lower than the traditional way.

Estimated total costs for implementation and maintenance (in Euros, including external costs)

category Unitary Patent (UP) UP + UK EP UP + Swiss EP UP + English/Swedish EP Traditional EP (4 countries)
5th-10th year government fees 4,400 5,235 5,522 6,357 4,661
External expenses in years 5-10 2,988 3,490 3,661 4,163 6,106
Total (until year 10) 7,388 8,725 9,183 10,520 10,767
Savings amount and percentage 3,379 (31%) 2,042 (19%) 1,583 (15%) 247 (2%)
category Unitary Patent (UP) UP + UK EP UP + Swiss EP UP + English/Swedish EP Traditional EP (Four Countries)
Official fees for years 5-12 7,635 8,946 9,422 10,733 8,261
External expenses for years 5-12 3,764 4,552 4,837 5,623 8,266
Total (until year 12) 11,399 13,498 14,259 16,356 16,527
Savings amount and percentage 5,127 (31%) 3,029 (19%) 2,267 (14%) 170 (1%)
category Unitary Patent (UP) UP + UK EP UP + Swiss EP UP + English/Swedish EP Traditional EP (Four Countries)
Official fees for years 5-15 15,025 17,404 18,245 20,624 16,591
External expenses for years 5-15 5,538 6,966 7,470 8,898 13,264
Total (until year 15) 20,563 24,370 25,715 29,522 29,855
Savings amount and percentage 9,292 (31%) 5,485 (18%) 4,140 (14%) 333 (1%)
category Unitary Patent (UP) UP + UK EP UP + Swiss EP UP + English/Swedish EP Traditional EP (Four Countries)
Official fees for years 5-20 35,270 40,654 42,500 47,884 37,461
External expenses from 5th to 20th year 10,397 13,627 14,735 17,965 25,786
Total (until year 20) 45,667 54,281 57,235 65,849 63,247
Savings amount and percentage 17,580 (28%) 8,965 (14%) 6,012 (10%) -2,603 (-4%)
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