Contributed By Advokatfirman Vinge KB
In Sweden, inventions are protected through the possibility to apply for a patent that gives the patentee an exclusive right to exploit the invention (a negative right).
Information concerning an invention that has not yet been patented, or which for some reason cannot enjoy patent protection, or is not appropriate for patent protection, can enjoy protection as a trade secret provided that the information concerning the invention fulfils certain criteria, including that it is kept a secret and the information may be deemed as important to the company’s business in a way that it would be detrimental to the company if the information were disclosed.
The protection for inventions and trade secrets is primarily governed by statute, although the details of protection conferred have been developed through case law.
The exclusive right for an invention arises through a patent being granted and thereby registered. A patent application can be made:
For the two latter options, the application is made to the European Patent Office (EPO) or the World Intellectual Property Organization (WIPO) and, following an initial examination, the applicant may choose to designate Sweden as the protected country. The application is then transferred to the national regulatory authority for the necessary steps to move the application forward. For PCT applications further examination is required and for a European patent application it is rather a validation of the European patent. The application authority in Sweden is the Swedish Patent and Registration Office (PRO) in relation to both national and foreign applications. Irrespective of the form in which the application is made, a granted patent results in a national Swedish patent registration.
The national application procedure includes a formal and a technical examination; the same also applies to EPC applications, where the application is processed by the EPO.
As for the national application procedure, the initial, formal examination is based upon whether the application is complete and whether the application fee has been paid. Any deficiencies in these respects must be rectified for the technical examination of the invention to be commenced. The subsequent technical examination is based upon whether the invention is patentable, ie, whether it is novel, may be subject to industrial application and involves an inventive step. Inventions whose commercial exploitation would violate public order or morality, such as inventions relating to cloning of human beings, are not patentable. The person responsible for the subsequent technical examination must be a qualified patent engineer who possesses knowledge of the area in question for the relevant invention. This part of the examination leads either to a technical order or to a final order. In a technical order, the applicant is given the opportunity to address any impediments towards the grant of the patent that the examiner has identified. In the event the PRO considers that a patent can be granted, a final order is issued whereby the applicant is given the opportunity to perform minor adjustments and review the application documents. After the applicant has paid a basic fee for publication, the PRO publishes its decision and the patent is thereby deemed to be granted.
A final decision concerning the rejection of the application is taken by the technical administrator in consultation with a separate and experienced patent expert. A decision to reject an application can be appealed to the Swedish Patent and Market Court.
Certain information in an application becomes public as the result of the filing of the application (eg, the applicant’s name). Other information becomes public within a period of 18 months from the date of filing or the priority date or, alternatively, in connection with the grant of the patent if this occurs earlier and the applicant has not requested that the PRO postpones the grant. If the application is rejected, withdrawn or discontinued prior to the expiry of the 18-month period, it is not published. Accordingly, the applicant can withdraw the application during the prosecution phase if he or she believes that the patent will not be granted and wishes to keep the invention secret.
Information regarding an invention can be protected as a trade secret, provided that the information is kept secret and is important to the company’s business in such a manner that it would be detrimental to the company if the information is disclosed. There is no registration procedure regarding trade secrets. Instead, protection is acquired automatically provided that certain criteria are fulfilled.
If an application meets the formal requirements, then the PRO will issue a technical, or final, notice within approximately seven months. The time-limits for a final decision vary, depending on whether there is an obstacle to granting the patent or not. The final decision is generally rendered within two years from the filing date.
There is no requirement according to Swedish law concerning representation (authorised or other) for a patent applicant. However, statistics show that applications by professional patent attorneys are granted to a much higher extent.
The average application costs to grant a national patent are relatively low. The general application fee is SEK3,000 and the publication fee is SEK2,500 (as of January 2019). Additional fees may apply, eg, if the sought patent has more than ten patent claims. The costs vary on a case-by-case basis and are dependent on circumstances such as the need for representation, the need for translation, as well as the scope and complexity of the application. The average costs in addition to the formal fees amount to approximately SEK40,000.
A patent remains in force for a maximum term of 20 years from the application date. Medicinal and plant protection products can, however, be granted an extended term of protection for a maximum of five years. Also, medical products authorised for treatment of children may be granted an additional protection term of six months (5.5 years in total).
If an invention is protected as a trade secret it will remain protected for as long as it fulfils the requirements for being a trade secret (eg, that it is kept a secret and it remains of importance for the business).
The exclusive right of a patent is set forth in statutory law. It allows the holder, inter alia, to stop others from using the protected invention commercially. This includes the right to take legal action against infringements. The patentee may obtain an injunction, under penalty of a fine, against the infringer or anybody who participates in the infringement. In order to stop an ongoing infringement it is also possible to apply for a preliminary injunction. A patentee can also apply for other measures such as an order to provide information regarding the origin and distribution network of the infringing goods. The patentee is entitled to reasonable compensation for infringed use and damages caused by the infringement. The different options made available to the patentee in the Swedish Patents Act are based mainly on the EU Directive 2004/48 on the enforcement of intellectual property rights (IPRED).
The scope of the exclusive right also includes the right to assign, licence or pledge the right to a patent.
There is no obligation to make use of the invention although a court may, under certain circumstances, grant a compulsory licence if it is not used.
A patentee is obliged to pay annual fees in order to maintain the patent. The annual fee increases each year the patent is maintained and ranges between SEK1,400-8,400. This obligation also applies during the application procedure.
Trade secret protection is acquired automatically under certain circumstances. Therefore, the owner of a trade secret is not obliged to pay any fees. Trade-secret protection covers several types of infringement, for example when secret information is obtained, exploited or disclosed without permission. Trade-secret infringements may result in an injunction and damages may also be awarded.
A patent can be maintained for a maximum term of 20 years. Medicinal and plant protection products can, however, be granted a Supplementary Protection Certificate (SPC) by which the term of protection is extended to a maximum of an additional five years; the term of such additional protection is calculated by the time lost between the filing date and the date of first marketing authorisation in the European Economic Area, minus five years. Medical products authorised for treatment of children may be granted an additional protection term of six months (5.5 years in total). The additional protection term of six months requires, inter alia, that the product has been granted marketing authorisation in all European Union Member States.
The purpose of the SPC is to compensate the patentee for the time during which a product cannot be commercialised since it requires marketing authorisation. The application has to be filed within six months from the first marketing authorisation.
Similar rules apply as regards granting procedure and fees. The patentee has to pay an application fee as well as annual fees and a decision to grant an SPC can be challenged by third parties.
Third-party observations can be filed during the application procedure. An observation may refer to any aspect that affects the decision on whether a patent should be granted. The person who files an observation is not party to the proceedings in a formal sense. However, the third party shall receive a notice if the patent application is granted.
A third party may also file a written opposition within nine months after a patent has been granted. The opposition procedure includes an exchange of submissions between the patentee and the opponent, after which the PRO decides whether to revoke the patent, maintain it with an amended wording, or reject the opposition. The patent shall be revoked if:
The patent shall be maintained with an amended wording if the patentee modifies it during the opposition procedure in order to overcome the obstacles in question. The final decision in an opposition procedure may be appealed by the patentee or the objecting party to the Patent and Market Court within two months from the date of the decision.
A third party may also file a claim for transfer of ownership based on the party’s title to an invention pending patent registration (a “better right” or “entitlement” claim). At the request of the claimant, the PRO may transfer the patent application or register the claimant as the inventor. The claimant may also be registered as a co-applicant or co-inventor. If it cannot be determined who has the better right to the invention, the PRO can order the claimant to initiate court proceedings. The PRO will disregard the claim unless the claimant initiates court proceedings within a certain time. A decision to reject a request for transfer may be appealed by the claimant.
An applicant who is not granted a patent may appeal the decision of the PRO. Likewise, final decisions in opposition proceedings may be appealed by the losing party. An appeal has to be made within two months from the date of the PRO’s decision. The appeal is to be lodged with the PRO, which may reconsider its decision unless there is a party opposing it. If the PRO stands by its decision, or if there is an opposing party, the appeal is submitted to the Patent and Market Court.
Failure to pay the annual fees of a patent application will lead to a dismissal of the application. This situation is unusual, since payment for the first three years is due in the third year. Where a patent has been granted, failure to pay the fees will lead to annulment of the patent. A delay in payment can be remedied if an additional fee of 20% of the due amount is paid within six months.
In exceptional cases, if the patentee, despite having observed all due care required in the circumstances, has suffered a loss of rights because he or she failed to make a payment (or perform another act) within the prescribed time but completes payment within two months (under certain circumstances within two months from the removal of the reason for non-compliance), the patentee can apply for a declaration that the payment shall be deemed to have been completed within the proper time limit. An additional fee of SEK1,000 is required for such an application.
A patent-holder has several options as to how to handle infringement against its patent. A patentee (or licensee) is entitled to apply for an injunction against imminent or ongoing infringements. An injunction can be obtained against the infringer or anybody who participates in the infringement and can be subject to a penalty of a fine. When it is considered urgent to stop an ongoing infringement, the patentee may request the court to issue an interim injunction.
Patent infringement can also be prosecuted as a criminal offence if the injured party reports the offence. However, for a prosecutor to initiate a criminal offence action there must be special reasons from a public interest standpoint and it is therefore not common. There are special intellectual property rights' prosecutors in Sweden who deal with infringement cases.
A separate action that can be considered as an alternative is custom control. Customs can be contacted in order to seize suspected infringing goods.
There are several remedies for third parties who wish to remove the exclusive right of a patent. Third parties can:
To initiate court actions certain formal rules apply.
Only a person claiming entitlement to a patent can initiate an action for transfer of ownership. Such an action can be brought within one year from the date on which the party claiming to have a better right learned of the grant of the patent. If the patentee was acting in good faith about his or her right to the invention when the patent was granted, or when it was assigned to him or her, an action must be brought within three years after the patent was granted.
A third party may bring a revocation action if a patent is deemed to be detrimental to him or her. It is common that an alleged infringer files a revocation action as part of the defence against the alleged infringement.
A declaratory action for non-infringement requires that the claimant have a specific interest in getting a clarification whether there has been an infringement. This maybe the case, for example, if someone deems that he or she is prevented from using a method or product in his or her business because it is uncertain whether the exclusive right of the patent protects it.
Any third party who may be presumed to have the ability to exploit the invention in an acceptable manner may be granted a compulsory licence. The applicant must demonstrate that he or she has unsuccessfully attempted to obtain a licence on reasonable terms from the patent-owner. Further, a patentee may obtain a compulsory licence to use an invention protected by another patent, where the use of the aforementioned patent is dependent on a patent owned by another party. In this case the applicant must demonstrate that the first invention constitutes significant technical progress of considerable economic interest in relation to the other invention. It is very rare that an application for a compulsory licence is granted by Swedish courts.
In addition, anyone who was commercially exploiting an invention at the time the patent application pertaining to the invention was filed may continue to use the invention notwithstanding the patent. However, such prior-use right requires that the exploitation did not entail clear abuse in relation to the applicant for the patent or any predecessor in title.
The Patent and Market Court has exclusive jurisdiction in matters concerning Swedish patents or the Swedish part of a European patent. It is a special court hosted within Stockholm District Court. It is also designated as the Nordic-Baltic division of the proposed Unified Patent Court.
Appeals are made to the Patent and Market Court of Appeal within the Svea Court of Appeal in Stockholm. Leave to appeal is required for the court to try a case.
Judgments and decisions from the Patent and Market Court of Appeal are as a rule not appealable. However, the court may allow an appeal to the Supreme Court if a case involves an important issue of legal principle. However, such an appeal is still subject to leave to appeal from the Supreme Court.
There are no specialised bodies or organisations for the resolution of disputes related to patents or trade secrets. However, the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) manages a large number of disputes relating to intellectual property-contractual matters on a regular basis.
There are no statutory prerequisites to filing a lawsuit. However, the ethical rules of the Swedish Bar Association require members of the Bar (advokater) to provide an opponent reasonable time to consider a claim before taking legal action. Furthermore, a party who initiates an unnecessary action is liable to pay the counterparty’s litigation costs even if he or she wins the case. Cease-and-desist letters are thus used in almost all cases unless there are particular (urgent) reasons not to do so, eg, when a claimant considers an interim injunction action.
It should also be noted that there are certain prerequisites that must be included in the summons application for the court to initiate the legal proceedings (eg, a Power of Attorney for any appointed representative, company information and address of claimant and defendant and a precise request of relief and the grounds thereof).
The parties in patent proceedings do not need to be represented by a lawyer. In theory, anyone may be appointed and act as a party’s representative, or a party may simply choose to represent him or herself. However, due to the technical and complex nature of patent litigation, a legal counsel is almost always chosen to act as the party’s representative.
A patentee or a licensee may request an interim injunction. A request for an interim injunction is usually made in connection with a summons application that includes a request for a final injunction. Interim injunctions are frequently requested in patent cases.
An interim injunction may be granted if the following conditions are fulfilled:
Where the claimant does not have the ability to lodge the security, the court may discharge him or her from the obligation. This might, for example, be the case when the applicant is also the inventor. The security is normally a bank guarantee that may be used by the defendant, eg, if the applicant is granted a preliminary injunction and the defendant therefore must cease all use of the allegedly infringing product or method but the court subsequently in the main infringement action finds non-infringement.
The purpose of an interim injunction is to preserve the value of an exclusive right until the case has been conclusively adjudicated or the court has reverted the interim injunction decision (for example following the inclusion of new evidence). The court will issue a preliminary decision, having assessed whether the interim injunction is proportional and weighing the applicants interest against the potential loss to the defendant. If the defendant has filed a counterclaim for revocation, the court will also take into account whether it is likely that the patent will be invalidated. Interim injunctions are normally decided following written correspondence between the parties without any oral hearing. It is very unusual to make use of the possibility of holding a preliminary oral hearing.
There is no clear case law regarding how the assessment of a grant of an interim injunction is affected by the fact that the claimant has remained passive in relation to the defendant’s alleged wrongdoing. However, an interim injunction action must be brought reasonably promptly after the claimant has been made aware of the defendant’s actions.
An injunction may be issued without notifying the defendant before the decision is rendered if a delay would entail a risk of loss (an ex parte decision). Swedish courts are, in general, reluctant to issue injunctions before the defendant has been given an opportunity to respond. It would require extraordinary circumstances in patent cases.
The period of time of preliminary injunctions varies, depending on the complexity of the case. In normal cases one can expect to have a decision within three to six months.
There are no particular protective measures, such as protective briefs, for a potential opponent. However, in order to challenge a claimant’s request for a preliminary injunction, the defendant may, apart from arguing non-infringement, argue that the security provided by the claimant contains deficiencies or ambiguities (eg, regarding the amount or the wording of a bank guarantee or the authority on which it is based).
A potential opponent may file a declaratory action for non-infringement or commence invalidity proceedings.
The Swedish Patents Act contains several special limitation provisions.
The right to damages in infringement proceedings is limited to damages incurred during the five years preceding the date on which an action is brought. This means if an action is initiated on 1 January 2019 damages may only be claimed from 1 January 2014.
An action regarding damages pertaining to the application period up until the grant of a patent must be brought no later than one year after the expiry of term for opposition or, where an opposition has been brought, not later than one year after a ruling by the patent authority that the patent shall be maintained.
An invalidity action that is based on the fact that a patent has been granted to someone who is not entitled to the patent must be brought within one year from the date on which the party claiming to have such entitlement learned of the grant of the patent. If the patentee was acting in good faith about his or her right to the invention when the patent was granted, or when it was assigned to him or her, an action must be brought within three years after the patent was granted. The same limitation provision applies to an action for transfer of ownership based on entitlement to an invention. It may be noted that the one-year period applies, regardless of whether the patentee was acting in bad faith.
There are several mechanisms by which a party can obtain information from an opposing party or a third party.
As a general option, a court may, upon request from any party, issue an order for production of written documents according to general provisions in the Code of Judicial Procedure (1942:740). Anybody holding a written document that can be assumed to be of importance as evidence in a court case is obliged to produce it. Certain types of documents/information are privileged (eg, correspondence between an attorney and his or her client or between relatives). An order for production of written documents can refer to documents in the other party’s possession, or in a third-party’s possession.
Furthermore, there are several mechanisms specific for intellectual property rights available for a party seeking relevant information related to infringement. A patentee or licensee can obtain an order for production of information regarding the origin and distribution network of infringing goods or services. The court may order an infringer, or certain third parties involved in an infringement, to provide such information under penalty of a fine. Information on the origin and distribution network typically relate to:
An order for production of information may be issued under condition that the applicant shows probable cause of patent infringement and that the requested information can be deemed to facilitate the investigation of infringement. It may only be issued if the reasons for the measure outweigh the inconvenience or injury it entails for the person subject to the order or any other opposing interest. Anyone who has been ordered to provide information is entitled to reasonable compensation for the costs and inconvenience caused by the measure.
Furthermore, a patentee or licensee may obtain an order for an infringement investigation. Where it can reasonably be assumed that someone has committed, or contributed to, an infringement of an intellectual property right, the court may order an investigation in order to search for objects or documents that can be assumed to be of importance for the inquiry into the infringement. Such an order may also be issued in relation to attempts and preparations for infringements. The applicant must provide sufficient security for any damage that may be caused to the subject of the investigation.
An order for an infringement investigation is executed by the Enforcement Authority, which has the right to make copies of, and extracts from, documents for which it is authorised to search. The Enforcement Authority may also take photographs and make video and sound recordings of infringing products and materials or tools that have been used for production and/or distribution of the products.
A request for an infringement investigation can be made during infringement proceedings or prior to the initiation of such proceedings. Since the purpose is to preserve evidence, the applicant must initiate main proceedings within one month from the finalising of the investigation if a request is made separately.
The initial pleading standard is determined by the general provisions in the Code of Judicial Procedure (1942:740). The summons application must include, inter alia, detailed contact information of the claimant and defendant, a precise request for relief, a detailed description of the circumstances relied upon and a preliminary statement of evidence including the evidentiary theme for each evidence. In a general sense, the procedural rules are the same as in other civil law matters. However, substantive patent law contains a number of specific provisions regarding, for example, time-limits for bringing an action for compensation.
In practice, the summons application in main proceedings is quite extensive, due to the subject matter. The application should include an adequate description of the patent in suit, as well as an infringement analysis or analysis regarding invalidity. However, it is possible to elaborate an argument and invoke new or different evidence during the entire preparatory stage. The technical and legal aspects are therefore often elaborated in subsequent pleadings.
The preparatory stage of the proceedings includes an exchange of several submissions between the parties and at least one case management hearing. As a starting point, the parties are free to file submissions until the main hearing, unless the court decides to close the preparatory stage some time before the main hearing. Patent cases are normally closed approximately one month before the main hearing. During the preparatory stage, it is also possible to invoke new evidence. However, negligence on one party’s side (ie, to submit new arguments and evidence late in the proceedings) may be reflected in his or her liability to pay for the opposing party’s legal costs.
The Swedish legal system does not permit representative or collective actions in patent cases.
The patentee is restricted not to assert his or her right against others in breach of Swedish competition law (eg, anti-competitive agreements and abuse of dominant position). Anti-competitive agreements are invalid and cannot be enforced.
The patentee or a licensee may bring an infringement action (exclusive as well as non-exclusive).
It is not possible for third parties such as distributors or sales agencies to initiate an action for infringement.
Both legal entities and/or their representing individuals can be sued for patent infringement. According to Swedish case law, representatives of legal entities may be held liable for the patent infringement committed by the company, on the ground that their influence on the company constitutes a personal liability for the company’s infringement. However, in practice, it is very rare that individuals are sued for patent infringement.
Statutory law provides that any of the following actions constitutes direct infringement:
Indirect infringement, on the other hand, requires an act that contributes to a direct infringement. Indirect infringement is at hand under the following circumstances:
A patentee is entitled to the same remedies in both cases – to request an injunction or a declaratory judgment against the infringer and to seek compensation for damages.
According to the Swedish Patents Act, the scope of patent protection is determined by the patent claims. When construing the patent claims, the description may serve as a guide.
Further principles of how to assess the scope of protection have been elaborated in case law. In general, Swedish courts follow the principles of Article 69 of the EPC and the Protocol on the Interpretation of Article 69. The Protocol on the Interpretation of Article 69 EPC adds that claims shall neither be interpreted literally nor treated as mere guidelines for the scope of protection. Equivalents are thus deemed to be protected under Swedish law provided that certain criteria – which have been developed in case law – are fulfilled.
An alleged infringer will try to exclude infringement of the patent enforced by stating that the act does not fall within the patent’s scope of protection. However, there are other defences that are commonly used depending on the specific situation. The defendant may:
Experts appointed by parties have an important role in Swedish patent proceedings. They are frequently consulted and relied upon in order to provide the court with information concerning one or several technical issues. The court can also appoint an expert, although this right is rarely exercised.
The expert must provide a written expert opinion during the preparatory stages of the proceedings. The expert opinion must state the reasoning and circumstances on which his or her opinion is founded. The questions are decided by the party who invokes the expert. However, it should be noted that the expert is also examined at the main hearing and that the opposing party has a right to cross-examine the expert. It is common that the expert is asked to give a supplementary opinion if the opposing party invokes another expert opinion.
A competent and trustworthy expert can have great impact on a case and therefore party-appointed experts are very important in Swedish patent proceedings. However, it should also be noted that if an expert is not well prepared for his or her examination and/or cross-examination, the testimony can be detrimental to the outcome.
There is no separate procedure for construing the terms of the patent’s claims. The patent claims are inevitably construed in the infringement or invalidity proceedings.
Before the relevant authority grants a patent application, third parties have two options to oppose the registration of the patent. First, a third party may object to the granting of the patent. An objection to the granting of the patent does not, at this stage, result in the third party becoming a party in the matter. The decision regarding whether the patent application should be granted still rests with the administrator in charge. Furthermore, a third party is also able to claim entitlement to an invention. However, a claim for transfer of ownership to an invention entails the burden of proof of such title on the third party making the claim.
When a patent application is granted, third parties have the right, within nine months, to file a written opposition regarding the granting of the patent. Such an opposition must include the grounds on which the third party bases the opposition and is tried by the PRO. An opposition by a third party may result in one of the three following actions:
The decision taken by the PRO regarding an opposition filed by a third party may be appealed to the Swedish Patent and Market Court within two months from the decision.
A revocation action may also be initiated in court proceedings either as an independent action or as a counteraction in an ongoing infringement action.
According to Swedish law, there are several grounds that may result in the revocation/cancellation of the patent granted. The relevant grounds are lack of novelty, lack of inventive step, insufficient disclosure, added subject-matter and a third party having a better right to the invention.
A patentee has the possibility to request a patent limitation (eg, in order to limit the scope of the claims in a patent). This course of action may be taken to avoid revocation/cancellation proceedings. The PRO reviews a patent limitation request and if it is rejected, the decision to reject may be appealed to the Patent and Market Court.
In court proceedings, the claimant may contend that only certain claims in a disputed patent should be declared invalid, and thus, if such a claim is successful, the result will be a partial revocation/cancellation of the registered patent. Note that the question regarding the amendment of patent claims is peremptory, meaning that the court must always assess whether the requirements for an amendment are fulfilled regardless of the parties having agreed on a certain amendment.
In court proceedings regarding the invalidity of a patent, the patentee may propose that the patent claims in question shall be amended in order to maintain a limited scope of protection for the invention and prevent the allegedly invalid patent from being revoked or cancelled. The court then reviews whether the amended patent claims meet the requirements for patentability, and that the amendment de facto entails a limitation of the scope of the patent protection. As with partial revocation, note that the question regarding the amendment of patent claims is peremptory, meaning that the court must always assess whether the requirements for an amendment are fulfilled, regardless of the parties having agreed on a certain amendment.
The Patent and Market Court has exclusive jurisdiction in cases regarding patent infringement and patent revocation/cancellation. Since the two separate cases are brought before the same court, the rule is that they are joined and heard together if it is beneficial regarding the conduct of the proceedings. However, the decision to join two cases rests with the court and therefore it is recommended that the parties express their opinion regarding the joinder of the cases in the separate submissions to the court.
There are some special procedural provisions in the Patents Act (eg, regarding the competent court) and the Patent and Market Courts Act (eg, regarding the panel of judges, restrictions in the possibility to appeal). However, the procedure in patent proceedings is very similar to other civil court proceedings. Most procedural provisions are found in general provisions in either the Code of Judicial Procedure or the Court Matters Act.
It should be noted that the possibility to use written statement of facts is often used in patent proceedings. This possibility is available in other complex litigations but is probably used most in patent litigation.
The composition of the court depends on the specific decision in question and in which instance the proceedings are pending.
As a rule, both legal judges and technical judges determine decisions on the merits of a case. For example, the court of first instance (the Patent and Market Court) has two legal judges and two technical judges when a case is determined after a main hearing. In some cases, the court ie, the legal judge/judges) can decide whether the case requires a technical judge.
The parties may not affect the court’s decision on which legal or technical judge should determine the case. However, the parties are informed about the choice of technical judge/judges and can then make an objection that there is an apparent conflict of interest (the same applies to legal judges).
There are no formal mechanisms for settling a case. The parties may settle a case either without third-party involvement or with assistance from the court (through non-mandatory settlement conferences or court mediation). The case can be settled until the day of the judgment.
The court has an obligation during the preparatory stage to investigate if the parties can reach a settlement. This is often discussed during the case-management conference and also some time before the main hearing. The same applies if a judgment is appealed. Apart from that, there are no formal mechanisms for settling the case.
If the parties reach a settlement, they may choose either to have the settlement confirmed in a judgment by the court, or, should they prefer to keep it confidential, to withdraw the case jointly.
The court decides whether a case should be stayed pending resolution of other proceedings. Parallel proceedings do not influence the current proceedings as a starting point. However, if it is clear that the validity of a patent will be determined in the near future, the court will likely stay ongoing infringement proceedings. The court may also allow a stay in other cases, if the parties agree that is beneficial to do so.
There are several remedies available for a patentee pertaining to infringement proceedings of the patentee’s patent. A patentee can file a request at court for an injunction subject to a default fine pursuant to the terms of which the alleged infringer is enjoined from continuing its allegedly infringing conduct. Such an injunction is available both as a permanent injunction as well as a preliminary injunction, which is in force until the case has been conclusively adjudicated or another decision has been taken. For a preliminary injunction to be granted by the court, the patentee must show that there is probable cause that the alleged infringer is infringing or contributing to infringement of the patent, including attempted infringement and preparation to commit an infringement. It must also be reasonably assumed that the continuation of the infringing act diminishes the value of the exclusive right in the patent. It should also be noted that the issue of an injunction is not something the parties can agree on. Accordingly, the court not only decides whether the injunction should be granted, but is also free to rephrase the injunction claimed.
The patentee may also request that an alleged infringer shall provide the patentee, under penalty of a fine, with information regarding the origin and distribution network for the goods and services to which the infringement pertains. Such an order to provide information may also be targeted towards, for example, parties that on a commercial scale have disposition over the infringing goods or services or parties that on a commercial scale have used the services to which the infringement pertains. Before the court grants an order to provide information, it has to conclude that the reasons for the measure outweigh the inconvenience or injury that the other party may suffer due to the measure.
Furthermore, the patentee may also request an infringement investigation, resulting, if granted, in an investigation of the infringer’s premises to secure evidence regarding the infringement. For the court to grant an infringement investigation, the patentee must show that it can be reasonably assumed that the party that is the target of the infringement investigation has committed or contributed to an infringement, including attempted infringement and preparation to commit an infringement.
The court may also, due to a request from the patentee, order that goods that infringe an exclusive right to a patent must be withdrawn from the market, destroyed, modified, etc, and that an infringer may bear the costs pertaining to the patentee’s publication and spreading of information regarding the judgment on patent infringement. However, it is up to the patentee to convince the appropriate media outlet to publish said information.
The court may also order the defendant to bear reasonable costs for suitable publication of the judgment in order to enlighten the public of the infringement.
As regards damages due to a patent infringement there is a difference regarding whether or not the infringement has been made with intent or negligence. If an infringer has not acted with intent or negligently, damages are limited to compensation for the use of the invention subject to the patent, to the extent the court finds this reasonable. If an infringer has acted with intent or negligently, the patentee also has the right to additional compensation for the loss resulting from the infringement. When determining the amount of additional compensation, the court will consider in particular lost profits, profits realised by the party committing the infringement, damage to the reputation of the invention, non-pecuniary loss and also the patentee’s interest in preventing infringement from taking place. Punitive damages are not available under Swedish law.
The court has no discretion regarding the choice of remedies stated above. However, some of the remedies require that the court decide what is reasonable on the basis of a claim’s individual circumstances. If full evidence of the occurred damages cannot be produced, or only with difficulty, or if the evidence can be assumed to entail costs or disadvantages that are not proportionate to the size of the damage and the claim for damages concerns a smaller amount, the court may estimate the damages to a reasonable amount.
Generally, the prevailing party has the right to be reimbursed by the losing party for reasonable litigation costs and lawyers’ fees. However, this may vary, depending on whether the prevailing party has succeeded with all claims tried by the court, eg, in some cases where the prevailing party has lost minor claims in the proceeding but won the case overall, the right to be reimbursed may be limited to some extent.
The types of remedies for technical intellectual property rights do not differ from one another.
If a case of patent infringement has been decided by the first instance in favour of the patentee, and the patentee has requested that the court grants an injunction, it will be granted. The court may make some minor amendments of the scope of the injunction that it finds suitable in light of the circumstances. Where the defendant appeals the judgment of the first instance court, in most cases effects pertaining to such a granted injunction will be suspended until the case is conclusively adjudicated.
If the patentee has requested an interim injunction, which has been granted by the first instance court, it is possible for the defendant to appeal the granted interim injunction and the Swedish Patent and Market Court of Appeal will issue a decision regarding the granting of the interim injunction based on the merits of the case in the appealed judgment. In addition, the Patent and Market Court of Appeal may immediately decide that the first-instance court’s decision on interim injunction may not be enforced until further notice.
The appellate procedure is, in principle, the same as in proceedings not related to intellectual property rights. However, the Patents Act and the Patent and Market Courts Act include special provisions regarding the appellate procedure in patent proceedings. Note that a decision or judgment from the Patent and Market Court may be appealed to the Patent and Market Court of Appeal, provided that leave to appeal is granted. Decisions or judgments from the Patent and Market Court of Appeal may not be appealed to the Supreme Court unless the Patent and Market Court of Appeal allows it and where the determination of the appeal by the Supreme Court is important for guidance in the application of the law. In such cases, however, the Supreme Court must in turn grant leave to appeal.
An appeal implies a full review of the facts of the case. The parties can exchange submissions and thereafter an oral hearing takes place. Oral evidence invoked in the first-instance proceedings is, however, normally video-recorded and the Court of Appeal will review the recordings instead of having the witnesses testify again. The appellant can limit the scope of review to certain questions. Note also that new facts or evidence are not allowed in the appeal proceedings except under certain circumstances.
The costs arising before a lawsuit are typically related to warning letters, gathering of evidence, research on technical and legal questions, drafting the summons application, arranging a bank guarantee when necessary and efforts to settle the dispute.
Depending on the type of case and the value of the claim, the court fee for commencing proceedings is fixed at either SEK900 or SEK2,800. Additional fees of SEK600, SEK2,350 or SEK2,500 are charged for some cases that are transferred from other authorities, eg, the Patent and Registration Office.
The losing party is required to reimburse the prevailing party for his or her litigation costs. This applies to lawyers’ fees, court fees, costs for evidence, etc, but only to the extent to which the litigation costs are deemed reasonable by the court. The litigation costs can also be divided between the parties if both have prevailed in different matters. However, exemptions apply if a party has acted negligently or initiated an unnecessary trial.
Alternative dispute resolution is not normal practice when settling a patent case. Licensing agreements and other contractual issues related to patents are, however, often submitted to arbitration. Patent infringement disputes are sometimes submitted to arbitration, but the possibility of obtaining a preliminary injunction at the Patent and Market Court is probably the reason this option is more often used. It is not possible to submit an invalidity action to arbitration as it can only be determined by the court. Mediation exists as a possibility although it is rarely used.
There are no formal requirements or restrictions to assigning a Swedish patent or patent application.
However, it should be noted that, regarding European patent applications, assignments must be in writing and require the signature of both parties.
There is no formal procedure for assigning a patent right. The patentee or assignee may request that the assignment is registered in the patent register administrated by the PRO. This procedure requires, inter alia, a written, signed request from the patentee or the assignee. In general, proof of the assignment is not required for the registration.
There are no formal requirements or restrictions to licensing a patent right. The patentee is free to license his or her right by way of an agreement. However, where the patentee has granted a licence, the licensee may assign his or her right to others only if an agreement has been made to that effect.
There is no formal procedure for licensing a patent right. It is rare that patent licences are registered in the patent register. However, there still exists a possibility for the patentee or licensee to request that the licence is registered in the patent register administrated by the PRO. This procedure requires, inter alia, a written, signed request.