Highlights from the European Patent Office

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Highlights from the IP5 Heads and IP5 Industry meeting New Orleans, 13 June 2018 Benoît Battistelli, President

Main challenges for the EPO Consistent growth in demand for patents Competitive international environment Technically complex applications Users' expectations in terms of costs and timeliness Our strategic priorities + Increase quality + Increase efficiency + Increase timeliness + Control costs + Raise profile of Europe worldwide 2

Result of the reforms 1: EPO is a more efficient office 165 590 + 10% 414 269 + 36% DEMAND Applications PRODUCTION Search, examination, opposition 105 635 + 82% GRANTED PATENTS Published patents 2010 2017 2010 2017 2010 2017 3

Result of the reforms 2: EPO is a more efficient office 64.5 + 40% PRODUCTIVITY Products/FTE 4 378 + 10% - 27% in the last 3 years - 21% of unit cost 2006 CAPACITY Examiners STOCK of the patent granting process in product orders COSTS Unit cost 2010 2017 2010 2017 2010 2017 2006 2017 4

Reduction of costs enabling reduction of fees EPO performance allows for fee reductions -20% REDUCTION OF COSTS Unit cost 4 th consecutive year of falling unit cost 2017 = 78.1% of the unit cost EP Fees stable since 2010 (only slight inflation adjustment) PCT fees not increased since 2012 (not even for inflation) From 2018: PCT fees will be reduced by 5% It's estimated that the measures above will save our applicants a combined total of 25 million Euro next year 5

Quality is our first priority ISO 9001 CERTIFICATION to safeguard the quality of our processes Recertification in 2017 SACEPO SUB- GROUP ON QUALITY created with the objective to set a permanent and highlevel forum to discuss quality related matters with users CONSULTING WITH USERS around the globe: Partnership for Quality meetings with users in Europe, US, Japan, China and Korea RELIABLE MONITORING 96% of respondents are very satisfied, satisfied, average satisfied (EPO User Satisfaction Survey) Global benchmark for quality EPO ranked best patent office in every IAM survey since 2010 6

Timeliness continuously in progress Search reports Delivering search reports within 6 months of receipt Examination time Reducing examination times to just 12 months on average by 2020 Opposition time Completing oppositions in 15 months on average, while ensuring the parties are heard Actual 1 Search timeliness: 4.7 months Actual 1 Examination timeliness: 22.3 months Actual 1 duration of oppositions: 20.7 months Objective 6.0 Objective 12.0 Objective 15.0 Actual 4.7 Actual 22.3 Actual 20.7 1 Source: EPO data April 2018 7

Working with partners worldwide for an efficient and quality-based international patent system 8

Active role in international co-operation EPO initiatives CPC Patent Translate Global Dossier Common Citation Document Database (CCD) Enhanced sharing (PCT Collaborative Search & Examination) First PCT authority (34% of search reports, 64% International preliminary examination report) Strong support of industry involvement in IP5 - proactive steps in 2012 to involve representatives from industry in the IP5 - user-oriented focus to IP5 co-operation Open dialogue with industry as a fundamental part of IP5 co-operation 9

EPO: a predictable approach to patenting software Interdisciplinary technical divisions of three examiners for each application Annual improvements to the CII content of the Guidelines for Examination Focus on CII training throughout the entire EPO operational area Solid, predictable 20 years practice in CII 10

Conclusion: the EPO in 2018 Demand is growing, reinforcing Europe s attractiveness as a leading innovation market Reforms have proven to be successful, increasing quality, efficiency and cost control An Influential Global Player 20 years CII solid practice, forming the basis for a sound patent system for AI and the Fourth Industrial Revolution 11

Thank you for your attention