Two renowned German patent litigators stated in the podcast I published yesterday that patent injunctions would remain just as available as before the German patent "reform" bill that was adopted earlier this month by the Federal Parliament. Dr. Dietrich Kamlah of Taylor Wessing pointed to the high hurdle that "disproportionate hardship" represents. Dr. Christof Augenstein of Kather Augenstein highlighted that the legislation is merely meant to codify the case law of the Federal Court of Justice, a court that rejected a proportionality argument in the only case of this kind it ever decided (Wärmetauscher, or Heat Exchanger).
In case you missed it, here's the podcast again:
Arguably, Daimler has lost that Heat Exchanger case--in which defended itself against an inventor--a second time by not achieving a German patent injunction reform that would make a practical difference. But perseverance sometimes pays off, and maybe they will succeed on a third attempt, if they and their allies figure out how to win a patent policy battle.
As Mr. Augenstein said in yesterday's podcast, the Federal Court of Justice told Daimler that it could still make cars--convertibles in that case--even without the "Airscarf" feature. I'd like to add something that relates to my previously-published explanations of a "Keep It Simple, Stupid" test, which checks whether a patent holder can simply pre-empt any proportionality arguments by making a licensing offer. In that Heat Exchanger decision, the Federal Court of Justice also pointed to the availability of a license. Twice, in fact--and both references to licensing are found on page 25 of the decision:
"Dass keine oder keine angemessene Lizenzierungsmöglichkeit bestanden hätte, ist nicht aufgezeigt."
Unofficial translation: "Defendants have not pleaded that a license was unavailable, or not reasonably available."
"Von der Möglichkeit, den Gegenstand des Streitpatents in Lizenz zu nehmen, haben die Beklagten keinen Gebrauch gemacht."
Unofficial translation: "Defendants did not avail themselves of the possibility to take a license to the patented invention."
The plaintiff in that case was an inventor, and he was interested in getting paid--not in shutting down factories. So there was a licensing offer on the table, and Daimler argued that the lower courts had not identified an infringement.
Not only do the new injunction statute (§ 139 PatG) and the official rationale stated by the German federal government (which made the original legislative proposal) suggest continuity, but the conservative CDU/CSU group in the German parliament, which consists of parliamentarians from Chancellor Merkel's CDU as well as the CDU's Bavarian sister party, the CSU) made its legislative intent clear at every single juncture of the process.
German courts do not analyze the legislative intent as systematically as their U.S. counterparts do. But statements by lawmakers always provide potential guidance to the judiciary.
On June 2, after the CDU/CSU group had reached a political agreement with its coalition partner, the center-left SPD, on the patent bill, the legal affairs spokesman of the CDU/CSU group, Dr. Jan-Marco Luczak a member of parliament from a Berlin district), placed the emphasis on the intent to keep patent enforcement in Germany as strong as before. Here are some passages from what he said, and my translations:
"Ein starker Patentschutz ist für Deutschlands Wirtschaft zentral, um unsere enormen Potenziale bei Innovation, Kreativität und Erfindergeist zu heben."
Unofficial translation: "Strong patent protection is paramount for the German economy in order to exploiit our enormous potential in innovation, creativity, and inventorship."
"Diese Innovationskraft zu schützen, das stand bei der Reform des Patentgesetzes für uns als Union im Mittelpunkt. Deswegen haben wir im parlamentarischen Verfahren sichergestellt, dass das hohe patentrechtliche Schutzniveau mit einem robusten Unterlassungsanspruch erhalten bleibt."
Unofficial translation: "For our parliamentary group of the CDU/CSU, it was the central objective in connection with this patent reform bill to protect this innovative capacity. Therefore we have ensured in the parliamentary process that the high level of patent protection would be preserved in the form of a robust right to injunctive relief."
"Damit kodifizieren wir die Rechtsprechung des Bundesgerichtshofes [...]"
Unofficial translation:"This way we codify the case law of the Federal Court of Justice [...]"
I've found another statement by the CDU/CSU group that plaintiffs seeking injunctions can point to (if needed at all, which is doubtful). The plenary of the Federal Parliament voted to adopt the Legal Affairs Committee's report. That was the lead committee on this bill. The CDU/CSU statement I mean starts on page 59 of the committee report, and ends after five lines on page 60. I'll quote and translate it sentence by sentence:
"Die Fraktion der CDU/CSU betonte, dass die Synchronisierung der Verletzungsverfahren vor den Zivilgerichten und dem Nichtigkeitsverfahren vor dem BPatG gerade in Fällen des Missbrauchs von Patentrechten zu einer erheblichen Verbesserung beitrage."
Unofficial translation: "The CDU/CSU group stressed that synchronization infringement proceedings before the regional and higher regional courts with nullity proceedings before the Federal Patent Court brings substantial improvement particularly in cases of patent abuse."
"Hinsichtlich der Verhältnismäßigkeitsprüfung im Rahmen des Unterlassungsanspruchs bekräftigte sie, dass in der Änderung des § 139 Absatz 1 PatG in der Fassung des Änderungsantrags der Koalitionsfraktionen keine Aufweichung der geltenden Rechtslage zu sehen sei."
Unofficial translation: "With respect to the proportionality test relating to injunctive relief, [the CDU/CSU group] stressed that the modification of § 139 para. 1 PatG as proposed by the government coalition is not to be interpreted as a dilution of the legal status quo."
"Vielmehr werde die Rechtsprechung des BGH für besondere Ausnahmefälle kodifiziert."
Unofficial translation: "Much to the contrary, the case law of the Federal Court of Justice concerning rare exceptions is codified."
"Die Einbeziehung von Drittinteressen in die Verhältnismäßigkeitsprüfung bedeute kein Hinausgehen über die Wärmetauscher-Entscheidung."
Unofficial translation: "The consideration of third-party interests with respect to the proportionality test does not mean to go beyond the Heat Exchanger decision."
"Der BGH habe sich nur deshalb nicht mit Drittinteressen befasst, weil an dem Rechtsstreit kein Dritter beteiligt gewesen sei."
Unofficial translation: "The Federal Court of Justice did not address third-party interests [in its Heat Exchanger opinion] because no third party was involved with that dispute."
"Selbstverständlich umfassten die Grundsätze von Treu und Glauben jedoch auch Drittinteressen."
Unofficial translation: "It goes without saying that the obligation of good faith also extends to third-party interests."
"Auch in Zukunft könne der Unterlassungsanspruch nach den ausdrücklich normierten Grundsätzen von Treu und Glauben nur in absoluten Ausnahmefällen nicht durchgesetzt werden."
Unofficial translation: "Just like before, enforcement of the right to injunctive relief will be precluded only in absolutely exceptional cases in accordance with the explicitly stated principe of good faith."
"Ein Patentrechtsinhaber, der bspw. einen Impfstoff entwickelt habe, werde diesen auch zukünftig exklusiv nutzen und Dritten untersagen dürfen, ihn zu produzieren oder ohne Lizenz zu nutzen."
Unofficial translation: "A patent holder who invented e.g. a vaccine is still going to be able to exclusively use the invention and to prohibit third parties from making or using it without a license."
"Selbst noch so starke Drittinteressen, wie bspw. die Betroffenheit der gesamten Allgemeinheit, führten nicht zur fehlenden Durchsetzbarkeit des Unterlassungsanspruchs; anderes sei nur in absoluten Ausnahmesituationen denkbar."
Unofficial translation: "Even the strongest third-party interests one can imagine, such as when the entire general public is affected, do not render the right to injunctive relief unenforceable, except under absolutely exceptional circumstances."
"Bei Vorliegen einer solchen außergewöhnlichen Situation bestehe ein Anspruch auf angemessenen Ausgleich."
Unofficial translation: "Should such an unusual situation arise, there will be a right to adequate compensation."
"Insoweit werde die grundsätzliche Ausschließlichkeit des Unterlassungsanspruchs nicht angetastet."
Unofficial translation: "Therefore, the fundamentally exclusive nature of the right to injunctive relief is not compromised."
Tbe above statements are also found, in an almost identical form, in the speech that Ingmar Jung, the member of parliament who was the CDU/CSU group's rapporteur on this bill, filed on June 10. You can find his speech on page 274 of this PDF document.
Some may still delude themselves into believing that German courts would deny prevailing patentees, on proportionality grounds, the injunctions they request. Neither the statute nor the well-documented legislative intent support that view. Heat Exchanger has a simple message: take a license. There's absolutely no way that a statute that isn't meant to change the situation would result in non-SEP enforcement all of a sudden being more difficult than, or even just equally difficult as, SEP enforcement. That would be a nonsensical outcome.
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