The introduction of the Unitary Patent (UP) system in Europe has brought significant changes to the patent landscape, particularly in terms of freedom to operate (FTO) risks for businesses operating in Finland. By examining the data from the Finnish Patent and Registration Office (PRH) and the European Patent Office (EPO), we can gain insights into how the increasing number of Unitary Patents may affect the FTO risks in Finland.
Historical Data Overview
The data from 2004 to 2024 provides a comprehensive view of the patent landscape in Finland, including PRH granted national patents, validated European patents (EP) in Finland, and the newly registered Unitary Patents. Here are some key observations:
- PRH Granted Patents: The number of patents granted by PRH has seen a general decline over the years, from 2,075 in 2004 to 591 in 2024.
- Validated EP Patents in Finland: The number of validated EP patents in Finland has fluctuated, peaking at 8,133 in 2019 before declining to 3,248 in 2024.
- Unitary Patents: The introduction of Unitary Patents has added a new dimension to the patent landscape, with 17,072 registered in 2023 and 28,033 in 2024.
Cumulative Patents in Force
The cumulative number of patents in force at the end of each year provides a clearer picture of the overall patent density in Finland:
- PRH Patents in Force: The cumulative number of PRH patents in force has decreased from 18,234 in 2004 to 6,304 in 2024.
- Validated EP Patents in Force: The cumulative number of validated EP patents in force has increased from 17,825 in 2004 to a peak of 50,370 in 2021, before declining to 45,137 in 2024.
- Unitary Patents in Force: The cumulative number of Unitary Patents in force has grown rapidly, reaching over 45,000 by 2024, meaning that in less than two years, it is at the same level as traditional European patents achieved in 20 years in Finland.
Implications for Freedom to Operate
The increasing number of Unitary Patents poses several challenges and risks for businesses in Finland:
- Increased Patent Density: The rapid growth in the number of Unitary Patents, combined with the existing EP and PRH patents, significantly increases the overall patent density. This makes it more challenging for businesses to navigate the patent landscape without infringing on existing patents.
- Higher FTO Risks: With more patents in force, the likelihood of encountering overlapping or conflicting patents rises. This increases the risk of patent infringement, which can lead to costly legal disputes and potential injunctions against business operations.
- Complexity in Patent Searches: The presence of multiple types of patents (PRH, EP, and UP) complicates the process of conducting thorough patent searches and FTO analyses. Businesses need to invest more resources in comprehensive patent searches to ensure they are not infringing on any existing patents.
- Strategic Patent Management: Companies must adopt more sophisticated patent management strategies to mitigate FTO risks. This includes regular monitoring of new patent filings, maintaining a robust patent portfolio, and considering defensive patenting strategies.
Conclusion
The introduction of Unitary Patents has undoubtedly increased the complexity of the patent landscape in Finland. While it offers a streamlined process for obtaining patent protection across multiple European countries, it also raises significant FTO risks for businesses in smaller countries like Finland where number of validated EP patents has been relatively low. Companies operating in Finland must be proactive in their patent management practices to navigate this evolving landscape and minimize the potential for patent infringement.
By staying informed about the latest developments in the patent system and investing in comprehensive FTO analyses, businesses can better manage patent risks, protect their innovations and maintain their competitive edge in the market.
Need expert guidance on navigating the Unitary Patent system and managing FTO risks? Our experienced patent professionals at Berggren can help you develop a strategic approach to patent management and ensure your innovations are well protected.
Get in touch with us today to discuss your patent strategy and FTO needs!
Mika Pinolehto
IPR Business Manager, Patent Attorney
+358 50 486 9663
mika.pinolehto@berggren.fi
