Wednesday, January 30, 2008

The Scores on the Doors

Yes, the "Ayes" have it, or had it, yesterday, at the AGM of the National Guild of Industrial Property Counsel in France. A massive 66% voted in favour of the resolution for the Guild to continue talks with the French Bar Association with an aim to proposing a text to the Ministry of Justice that would allow for merger of the two professions.

Despite the attempted disruption by the old guard, the motion went through, although by all accounts it was somewhat "mouvementé" as we say over here. However, all is not packaged and parcelled as neatly as one might assume from the results above. Oh no, democracy (or should I say, bureaucracy ?) above all else has to be seen to be respected - this is France, after all, the birthplace of the people's revolution (hmmm, better not wander off down that track). Forget the babbling, what I mean is that we will have to have another vote once the agreement has been hammered out with the Bar Association, and there are plenty of opportunities for the "Nays" to scupper the project and send us all back into oblivion or early retirement. Indeed, in the true "democratic" fashion, the Nays are requiring a qualified majority for that vote, scheduled on February 19th, 2008, for the vote to even be considered valid. I must admit to not being aware of the various quorum requirements for subjects like this within our representative body, so am unable to comment. I will undoubtedly just vote with my feet, as they say, and make sure that my vote goes to the "Ayes".

Told you it was going to be gripping stuff, its about the most exciting thing that's happened to us since the Guild was created (which isn't in fact all that long ago, but hey, who's counting ?)


Anway, time to calm down now and gloat over our recent victory against the Forces of Oblivion...more in Episode IX...where's that good looking princess gone ?

London Protocol - at last !!!

Just a very quick note to say that I have just been informed by my national representative body of the entry into force of the London Protocol for May 1st, 2008. Three cheers, and drinks all round !!!

On the down side, it is interesting to note that our national body, the CNCPI, were informed of France's deposition of its instruments of ratification by the German Ministry of Justice. One would have thought that the INPI/French government would have been kind enough to inform us before everyone else (some British and German colleagues knew before we did, take a look at, e.g. the IPKat blog). Obviously, we are in the dog's house with the French Ministry of Industry and Commerce now that we are going to defect to the Ministry of Justice, or maybe we are just being snubbed in general by the government. I wouldn't be totally surprised considering how we've behaved over the past year or so, humming and hahing, blowing hot and cold, and generally kicking up a stink when it came to the question of translations (among other things).

Well, at last, the wood is starting to be seen through the trees. I can see much belt tightening and gnashing of teeth in store for those French firms who haven't planned financially for the drop off in easy money that the coming into force of the protocol will cause. At least I can now tell my clients that they will be able to make some savings when it comes to validating their European patents. Better than a knock in the teeth with a spiked cricket bat (not that I've ever seen one, mind you, or isn't that what they used to call a cudgel ? - we English are so civilized)

Come on, all we need now is the EPLA and we'll have some semblance of a unitary system of law throughout the EU. Astute readers will note that in my Euroland gung-ho approach I haven't said anything about the Community patent. IMHO, this will remain an economically unviable pipe dream until the various nations can pull their fingers out and do away with the requirement of having everything translated into whatever minority language we can think of adding at ever decreasing intervals as the Union expands. But I shall leave my criticism of that for another day, time to crack open that bottle of champagne that I paid with all those fees gained from translation last year :-)) after all, next year I might be sipping water and riding a bicycle !!!

Toodlepip !!!

Tuesday, January 29, 2008

The Name Game

A rather obscure title for a rather obscure blog entry on something that is going to have a huge impact on our daily working lives as IP professionals in France. Today, is the day, when the members of the CNCPI, or National Guild of Industrial Property Counsel, meet at their AGM and decide on whether we should all just stay as we are, i.e. insignificant, unheard of and drowning in our own narcism, or instead throw ourselves into the gaping mouth (Ed : shouldn't that be "welcoming arms" ?) of the tentacular bar association mothersquid (Ed : all similarities to any existing ET films starring Sigourney Weaver are purely coincidental).

Yes, if the vote goes in favour of the resolution, we shall all become "Avocats - Conseils en Propriété Intellectuelle" - oooooh, I hear the crowd cry in wonderment. "Errrr, I'm sorry, what' s one of them ?", says someone at the back, like a comment out of another animated movie starring a plasticine dog and his dolt master. So, come on smartass, what is it ?

"Well", I say, my pointy fangs glinting in the dark (Ed - you're frightening the kids, you know that?), "its a lawyer, specialising in intellectual property". Shock horror, faints, swoons, cries from the children, and consternation. But don't worry, we're still going to carry on what we were doing before, we're just getting a new name because we think that it'll make us more familiar to the public (a child gawps at me in fear), (Ed - no, its coz you're 6'4" and you look mean and ugly). No seriously, we are going to be harmoniously integrated into the great bosom of the French legal system, and all will be well (Ed - you're fired, too sarcastic by half).

"I'll be back, vengeance will be mine, ah, ah, ah, ah, ah", I say, grinning menacingly and cackling like all madmen in B-rate movies tend to do.

So there it is. Will I become a Avocat or not ? Whilst those of you with limited knowledge of French might be inclined to chide "he's obviously nuts if he thinks he's going to become a green fleshy fruit that you turn in guacamole", then let me put you straight about what this means for us as a profession :

- we cease to exist in an independent form (much like green fleshy fruit turned into guacomole); no great loss as far as I'm concerned, nobody in the general public knew what we did anyway, other than having a ludicrously pompous title. My son's school administration changed my professional title to "Estate Agent" in their database, which just goes to show how insignificant we are (sob, sob, nobody loves me);

- we get to be called Avocat - isn't that great, sounds so cool, yeah, "Avocat, Avocat, Avocat" (perhaps I really do need a holiday);

- we get to plead in French and European courts (if we ever get a European IP tribunal that is, rage, rage), instead of being relegated to haggling like fishmongers with the INPI, EPO or the OHMI - yay, go Avocat, go !!

- we get to snub our noses back at our European and US counterparts in true French arrogant fashion (Ed - oooh, that was low);

- errrm, did I mention that we get to be called Avocat (Ed - that'll do, lad) ?


Believe it or not, I'm actually in favour of the change. It won't stop me from doing what I do at the moment. It might even open up opportunities elsewhere. For once, our profession is actually doing something about its future, instead of looking over its shoulder to its past. Good luck to the committee, I've already given it a big thumbs up !!

However, all is not rosy and plain sailing in the Guild. There are opponents, who have themselves sharpened their knives and ground their axes. The Dark Side is moving to counter the Light, and the light sabres are drawn. If the resolution fails to get the majority vote, then the central committee will undoubtedly be thrown into disarray, and their may be calls for the current president to resign. It might end in an almost civil war-like stance within the profession, and perhaps we'll get a Chancellor Palpatine instead. Oh, the grippiness of it all, I'm on the edge of my seat in anticipation (Ed - no you're not, you're eating your lunch).

Stay tuned for another thrilling episode in "IP - what's the game ?", coming to your screens soon (Ed - you're still fired, and don't come back).

Thursday, January 17, 2008

Give me an E, a P, a L and an A, and I'll give you the London Protocol

Such might be the title of the current ongoing political debate between France, and Germany, at least if the rumours in the European IP grapevine are true.

Indeed, in the very true spirit of intergovernmental political negotiation, it appears that the French government is holding back on filing its instrument of ratification with the European Patent Office (EPO) on the London Protocol, at least until the German government agrees to abandon the dual court system for trying invalidity and infringement and wholeheartedly and unreservedly adopts the EPLA.

As one might guess, the German government doesn't appear to be particularly keen on being held hostage in this way.

When I submitted the question of this rumour to our representative professional body, all I got in return was a rather laconic, "the French government will soon be filing its instrument of ratification with the EPO". Well, that was in early December 2007, and still nothing appears to have happened, so maybe there is some truth to the rumour after all. Sigh.

Of course, political bickering and blackmail between states is nothing new, often it is simply called "diplomacy" failing a more honest appraisal of the situation. Like most things here in Euroland, however, this form of diplomacy wreaks havoc with legal certainty, and evidently stands in the way of getting anything done, not to mention the strategy that we, as counsel, might have with regard to our clients in attempting to offer them the best protection for the least amount of financial outlay. Of course, the French government believes it has the upper hand, but in the end, I personally feel they've chosen the wrong hostage to hang up and threaten with a knife to the jugular. If I were paranoid, I'd probably say that it was thanks to the own workings of our internal representative body which was strongly against ratification of the London Protocol, and that they have now found a way of leveraging pressure just to put the axe in one more time. Of course, I have absolutely no proof of my paranoid theories, and maybe I should just sit down with a cup of tea and take my tablets like a nice boy ;-) - there, there, that's better, now, where was I ?

Back some time soon no doubt for further mind numbing, I mean, thought provoking :-) adventures.

Wednesday, October 10, 2007

Adoption of London Protocol in France or, How Many French IP Firms will go bust in 2008 ?

At last !! The French government has finally managed to get its act together and vote for ratification of the London Protocol - Welcome to the 21st century! With a whopping 280 votes in favour, and only 33 votes against, the French Senate has confirmed the trend set by the parliament a few weeks ago, and finally practiced what the government has been preaching about stimulating economic growth in France.

As a French patent attorney, I personally welcome this decision, which has been all too slow in the coming. Many of my French colleagues, including the professional body that represents us, the CNCPI, do not, and have always opposed moves to reduce costs for the hands that feed us, i.e. our clients, instead of focussing on what we are supposed to be doing, i.e. counselling. Those very same clients are the ones that would file European patent applications, and then could not afford to validate the granted European patent in the various designated states because of the cost of translations. What would be the advice that we gave them ? Well, limit your choices to those countries where you either have an actual business activity (commercial or production), or to those where infringement might be a possibility. This often meant a drastic reduction in the playing field, and many a client quite reasonably questioned me on the rationale of having filed an European application in the first place.

Aside from the immediate consequences of this vote, there will be a significant impact on the revenue streams of many French IP outfits that basically depended on translation activity for survival, and that either refused to look ahead and leave some eggs out of the basket, or just simply buried their heads in the sand (ostrich for dinner, any one ?). That behaviour in itself now turns out to have been a major strategic business error, which additionally was, in my opinion, totally foreseeable.

The fallout of this decision, however, does not stop at the IP boutiques : patent translation firms have flourished over the past 20 years in France, and these firms are all going to be hit by the ratification. Rather unsurprisingly, the representative bodies of these firms also attempted to put pressure on the government not to ratify the London Protocol.

So what is the likely outcome of the present decision, once it comes into effect ? As I see it, and I may be wrong (nobody is perfect, after all), a fairly sizable number of small IP firms in France will simply go bust, because they didn't have the foresight to address this issue before it became a reality. Others will undoubtedly be so weakened that they will be forced into buyouts or mergers with larger firms, probably on not so friendly terms, since the global value of the boutique will be diminished (and this, irrespective of the size of the firm). Even the mammoths of the French IP world will be hit, although they will probably have the resources and variety of work that will enable them to weather the storm and come out battered, but essentially unbroken. Nonetheless, layoffs are in all likelihood to be expected and we may see a good deal more job postings for administrative staff seeking work.

Another thing that will have to change will be the daily life of the junior or trainee attorneys, who used to spend a lot of their early days in law firms proofreading the translations before they were filed with the French PTO (INPI). My own personal recollection is that it was an extremely unrewarding and entirely unprofitable experience period in my life, especially once I learned the statistics relating to who actually read the damn things in the first place, i.e. virtually nobody. Some of my fellows might say, and even did, "All character building stuff", to which I would reply : "Characters could be better built by teaching trainees to "counsel" clients, rather than force feeding them with sales pitch." Unfortunately, our profession in particular, seems to feel that it has had for the past 20 years an unwritten duty to "sell" rather than "advise".

Of course, even the most basic of IP entrepreneurs understands that we are in it to make money (and I am no exception), otherwise we would all be working for the Citizen's Advice Bureau or some other such freebie quango (which we already do, by the way, to the extent provided by the law), but there is a distinct difference between making a client pay for a service to which real value, of use to the client, has been added, e.g. counselling with all of the experience and business acumen that goes with it, and the opposite end of the spectrum where one simply takes the client's money because it is easy to do so and facilitated or obligatory from the legislative perspective. Perhaps it has also got something to do with the fact that many French IP professionals have either very little or no strategic industrial experience, and so feel ill at ease offering advice that truly corresponds to a client's business strategy. I'm being naturally provocative here, but I do suspect that there is some degree of truth in what I write, and this is certainly true from my own personal experience of many of those whom I have had cause to meet along the way.

In response to the impending crisis, I sometimes hear IP firms saying : "We'll develop new "products" to sell to our clients and generate new income". My own response to that kind of thinking is that (a) it would appear to be rather late in the day to begin thinking about new products, (b) how precisely does one propose to sell these products to these clients, I mean, why buy this new "product", when the client was (dis)satisfied with what we were already doing, (c) other than counselling, exactly which new products can one come up with - it's not as if we are selling vacuum cleaners or bathroom detergents - and (d) even if all of the above were possible, the number of "products" created would have no market penetration in the timeframe required to offset the drop in income due to the London protocol.

So, how many French IP firms will go bust or be acquired during 2008 ? Well I really don't know, but would hazard a guess at say 25-30% of all French firms. A quarter to a third of the profession, now that's something to think about. As it stands, we currently do not even have enough young professionals working in French IP to cover the projected retirement of a third of the profession over the next 10 years, a situation which is yet again of our own making (and on which I shall no doubt rant in a separate entry). Whatever happens, there will necessarily be a radical change in the IP landscape in France in the coming year. We had it coming guys (and girls), and as usual, we've only got ourselves to blame.

Friday, December 15, 2006

Inciting French SME's to Use Patents

Sub us for a patent, anyone ? - In a bid to improve France's position in the patent filings number race, the French government has recently announced a measure intended to promote use of the French patent system, by allowing certain small business enterprises meeting defined criteria (I don't have all of the info yet as to what these criteria might be) to file their first patent application for free. Quite how this is going to work in the long term is beyond me. The government has already attempted to make patenting more attractive to individuals, SMEs and research groups by enacting official fee reductions with the French PTO (patent and trademark office), but even this kind of "nearly free" as in "beer" attitude hasn't taken with the general public or businesses in general.

As it stands, the first patent application filed by a French registered eligible enterprise will be subsidised by Oseo, a regional development agency quango, which now brings together the BDPME, ANVAR and various sundry other organisations into an umbrella group. Oseo is set to foot 75% of the bill for the first patent filing, with the remaining 25% being paid for by the Ministry for SMEs.

How this is actually going to work in practice is beyond me. I have not yet been informed by my representative professional body, the CNCPI (similar to the Patent Attorney Bar in the US, or the Chartered Institute of Patent Agents in th UK), save to say that the CNCPI will form part of the commission to examine the candidates for subsidy. Ho hum...I wonder if the Minister has given due thought to whether or not actions of this ilk are not anti-competitive in light of the European Commission's stance on subsidising, directly or indirectly, national industry. Well, it wouldn't be the first time the French government has been fined for doing that, so I suppose it is really par for the course.

So here we are then - yet another subsidy for small and medium sized French businesses. I'm all for making businesses more aware of the value they can create for themselves, but I can't see how subsidising is really going to change mentalities, if anything, it will make them even more dependent on subsidies to actually even think about protection. This is the case already to a certain extent, having personally had clients who only filed patent applications because they would be receiving a subsidy from the state, the regional council, or some other national or local aid agency. Talk about entrepreneurial spirit !!!!

IMHO, innovative small French businesses need to be made responsible for their decisions, not mollycoddled. What they do need, however, is to be able to keep most of what they earn in order to be able to plough it back into research and development. This, unfortunately, is still not the case. I often drop hints to would-be French entrepreneurs that their fiscal interests might be better served by setting themselves up in another country and operating from there. Indeed, some of them do choose that route after consultation with their financial advisers. Most however, have recognised that short term gain is better than any form of "learning it the hard way" experience and gladly take any grants that are going, simply because they exist.

I can hear some of my fellows chanting already, "you must be off your rocker, you're shooting yourself in the foot"", but I can't help thinking that our clients interests would be better served if we listened more closely to their needs and proposed a protection strategy adapted thereto and their actual means instead of just organising another way of drumming up more business for our profession as a whole, and receiving government backing to boot.

Only time will tell in the end, but honestly folks, don't hold your breath !!! Toodlepip until next time.

Wednesday, September 21, 2005

Making French Industry a Frontrunner in Innovation

Well, it looks like I failed miserably on the blog up-to-date act ;-) Never mind, at least I can still carry on putting odd articles in from time to time, that's the really cool thing about blogs, and it doesn't matter if nobody reads them.

Since my last post, we have seen the rise and fall of the CII Directive : in the end parliament finally got its way, and the Commission got one big smack in the chops. Personally, I think this is a good thing - better not to have poor law, than a fundamentally flawed one. So that chapter is closed for the time being, until the pro-patent protection lobby come back in about 5 to 10 years time...

What else is new on this front that warrants a rant from yours truly ? Oh yes, the French government has introduced a new set of fees for IP filings in France, which of course have been increased, fairly significantly in some cases. I'm just waiting to hear how much of the INPI's increased intake will be siphoned off by the government to finance other projects totally unrelated to innovation, like the huge whole in the social security system, or meeting the budget deficit ;-)

To be fair, the government have also introduced a new fee schedule for SMEs, but it is unclear at the moment whether they will apply to foreign entities, since the decree that lays out the application of the new law hasn't been passed yet and won't be until January 2006 - typical. The new fee regime allows a 25% reduction in official fees for the major fees, i.e. the filing fee, search fee, and extra claims fee. Renewal fees will also be covered by the reduction.

The reduction is available to individual inventors, public research institutes, and small business that have fewer than 500 employees, generate less than 50 Million Euros annual turnover, and are not held at more than 25% share by a company not eligible for the reduction. The reduction is available simply by filing a declaration. Financial sanctions will be imposed for those applicants who misrepresent the truth, but there appears to be no counterpart to the unenforcibility rule that exists, say in Canada or the US. Similarly, and in true French legislative fashion, it is uncertain whether an applicant must keep the French Patent Office (INPI) informed of any changes in its status. In theory for French applicants at least, the French PTO (INPI) is the guardian of the nationwide commercial register, so it should be relatively easy for them to check up on potential fraudsters that are French domiciled, but I see no way of the INPI being able to keep tabs on foreign companies not registered in France. Should be fun to watch, in any case.

How do I feel about this new incentive to get French businesses to file for IP rights ? Personally, too little, too late, and especially, completely out of touch with market reality in the world today. The reductions won't be available for French companies wanting to file European applications, even if they designate France, nor PCT applications, by the looks of it, and I really must ask myself what the point of the whole maneuver was in the first place : promotion of French SME competitivity in the French market place ? Hardly, considering that these home markets are essentially dwindling in the face of foreign imports and globalisation. What else then ? The cynic in me says political rhetoric, vote counting, and looming presidential elections in 2007. To be frank, I'm really not convinced that these measures will do anything to promote and strengthen French SMEs in the world market as it is developing today.

Well, all for now, toodle pip !!!