According to Internal Market Commissioner Frits Bolkestein: "If there is no prospect whatsoever of Member States agreeing this proposal, there is no point in keeping it on the Council's table and going round in circles."
"I am not saying the proposal will be withdrawn but that withdrawal will be considered. We will have to think very carefully whether another proposal is possible," he added.
At present, patents can either be granted through national patent offices, or by the European Patent Office (EPO). The EPO grants Europe-wide patents on the basis of a single application; but to be enforceable in the individual Member States the patent may still have to be translated into the language of the respective State.
Consequently, getting an EU-wide patent is far from cheap. The Commission last year estimated the cost to be in the region of €50,000 – five times more expensive than the cost of registering a patent in Japan or the US. It anticipates that a Community Patent would cost €25,000.
The Community Patent is therefore intended to make it cheaper and easier to protect new inventions in all EU Member States. The hope is that it will remove a competitive handicap suffered by Europe's innovators and stimulate investment in research and development.
The establishment of a Community Patent system has been long delayed, but most issues have now been resolved, with the exception of a few relating to the translation of patents and how infringements of patents, which might arise as a result of mistranslations, should be treated.
It was hoped that, at the third attempt, Member States would be able to compromise on these issues, but it was not to be. Germany, France, Spain and Portugal voted against the proposals, and Italy abstained. Unanimity was required to approve the measure.
As Commissioner Bolkestein reflected, "With regrettable regularity, a small number of Member States have blocked this proposal by giving precedence to narrow, vested interests rather than the broader interests of boosting Europe's competitiveness by fostering research, development and innovation."
"The European Council will be apprised of today's fiasco", concluded the Commissioner. "What is the point of the European Council asking three times for the Competitiveness Council to agree the Community Patent, if it does not do so? This is a lesson we should take to heart."