Intellectual property in Italy: progresses and challengesBY CAROLA MACAGNO
- 26 April 2023
- Posted by: Competere
- Categories: highlights, News
Today is World Intellectual Property Day. Without it, technological progress and invention would be at risk of stagnation, with disastrous consequences for the economy and society. To promote innovation and creativity, Italy must adopt a culture of intellectual property. This is the message we conveyed in the open letter we sent to the government, urging political forces to work towards assigning all the competences that belong to the Milan branch of the Unified Patent Court.
WHY IT IS IMPORTANT
To succeed, it is not enough to have a winning idea; it is also necessary to value and protect it. Intellectual property is therefore crucial: it allows those who have an intuition to turn it into a successful product or service and obtain a return on investments, which are the core of innovation.
Moreover, the protection of property rights promotes fair competition and the prevention of counterfeiting, ensuring the quality of products and services. It is thus a crucial component of the modern economy and growth. Europe knows this: protecting property rights is strategic to remain competitive against industrial giants like the US and China.
But not only Europe, Italy too: despite the excellent performance in the number of patents filed, there is still much work to be done. To defend the Made in Italy and human capital, it is essential to protect property rights, without which it will be complex (if not impossible) to innovate and create economic development.
PROPERTY RIGHTS: DECLINING INDEX
As demonstrated in the International Property Rights Index, Italy has been experiencing a concerning decline in its ability to protect property rights. Compared to 2021, the country has lost two points in the global ranking, falling to 46th place. To provide some global benchmarks, it is preceded by Jordan, Costa Rica, and Slovakia and is just one position above China (followed by South Africa and Brunei). An alarming signal that widens the gap with countries that are driving innovation – Finland, Singapore, and Switzerland. However, some data are encouraging.
EXCELLENCE IN PATENT PROTECTION
Italy generates 2.5% of patents in the world. In 2022, the country ranked eleventh by the number of international patents filed at the European Patent Office (EPO): 4,864. This is the second-highest number ever, second only to the 2021 record. This confirms Italy’s ability to compete with global leaders.
BUT ALL THAT GLITTERS IS NOT GOLD
There is still significant room for improvement. Many small and medium-sized enterprises (SMEs), which constitute the backbone of the Italian economy, are not yet aware of the importance of protecting their innovations. There is a lack of a managerial culture of prevention and a national system for rapid intervention in case of law violation. Although the regulations are in place, the legal expenses for an effective counterattack are not within the reach of many companies, which risk remaining defenceless. Italy should strengthen its culture of patent protection by providing more information and resources to SMEs and micro-enterprises.
A GREAT OPPORTUNITY
The assignment of the third seat of the Unified Patent Court to Milan represents – at least at first glance – a great opportunity for Italy. However, there are concerns about a “lighter” seat, with a more limited scope of competencies than the one that would have been established in London. Without competencies in the pharmaceutical and chemical sectors – which France and Germany want to keep jealously for themselves – the Italian seat would be reduced to a shell of its potential, unable to generate economic benefits.
CALL TO ACTION
Italy cannot allow this to happen. For this reason, Competere, in partnership with the Property Rights Alliance, has drafted an open letter (in Italian) signed by over thirty academics, law firms, and think tanks, inviting political forces to work towards making Milan the third seat of the Unified Patent Court in full. With all the delegations that it deserves. Only then will Italy become an innovation hub. Only then will the country demonstrate the economic role it represents within the Union.
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Image credits: courtesy of the Ottawa Business Journal >>>
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