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ARTICLE · 17 SEPTEMBER 2020

Revised Draft Law To Introduce Much Awaited Proportionality Requirement For Patent Injunctions

Cleary Gottlieb Steen & Hamilton LLP
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On September 1, 2020 the German Federal Ministry of Justice and Consumer Protection published a new draft amendment to the Patent Act to simplify and modernize German patent law.

GermanyIntellectual Property

On September 1, 2020, the German Federal Ministry of Justice and Consumer Protection ("BMJV") published a new draft amendment to the Patent Act to simplify and modernize German patent law. Among other things, it substantially improves amendments to German law on injunctive relief for patent infringements, introducing a proportionality criterion. The development is particularly important in light of the emerging debate on patent protection for standards for 5G and Internet of Things, affecting manufacturers EU-wide. Deadline for comment is September 23, 2020.

While questions remain, the current draft proposal is promising as it materially improves a previous draft, and offers the prospect of compensation for patentees in cases where an injunction is denied on the basis of a proportionality defense, while mitigating the risk of hold-up by patent holders. Car manufacturers, for example, are increasingly under pressure and face claims for injunctions on small

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