CHAPTER V

FINANCIAL PROVISIONS

Principle on expenses
Article 10
The expenses incurred by the EPO in carrying out the additional tasks given to it, within the meaning of Article 143 of the EPC, by the participating Member States shall be covered by the fees generated by the European patents with unitary effect.

Renewal fees
Article 11
1
Renewal fees for European patents with unitary effect and additional fees for their late payment shall be paid to the European Patent Organisation by the patent proprietor. Those fees shall be due in respect of the years following the year in which the mention of the grant of the European patent which benefits from unitary effect is published in the European Patent Bulletin.
2
A European patent with unitary effect shall lapse if a renewal fee and, where applicable, any additional fee have not been paid in due time.
3
Renewal fees which fall due after receipt of the statement referred to in Article 8(1) shall be reduced.

Level of renewal fees
Article 12
1
Renewal fees for European patents with unitary effect shall be:
a
progressive throughout the term of the unitary patent protection;
b
sufficient to cover all costs associated with the grant of the European patent and the administration of the unitary patent protection; and
c
sufficient, together with the fees to be paid to the European Patent Organisation during the pre-grant stage, to ensure a balanced budget of the European Patent Organisation.
2
The level of the renewal fees shall be set, taking into account, among others, the situation of specific entities such as small and medium-sized enterprises, with the aim of:
a
facilitating innovation and fostering the competitiveness of European businesses;
b
reflecting the size of the market covered by the patent; and
c
being similar to the level of the national renewal fees for an average European patent taking effect in the participating Member States at the time the level of the renewal fees is first set.
3
In order to attain the objectives set out in this Chapter, the level of renewal fees shall be set at a level that:
a
is equivalent to the level of the renewal fee to be paid for the average geographical coverage of current European patents;
b
reflects the renewal rate of current European patents; and
c
reflects the number of requests for unitary effect.

Distribution
Article 13
1
The EPO shall retain 50 per cent of the renewal fees referred to in Article 11 paid for European patents with unitary effect. The remaining amount shall be distributed to the participating Member States in accordance with the share of distribution of the renewal fees set pursuant to Article 9(2).
2
In order to attain the objectives set out in this Chapter, the share of distribution of renewal fees among the participating Member States shall be based on the following fair, equitable and relevant criteria:
a
the number of patent applications;
b
the size of the market, while ensuring a minimum amount to be distributed to each participating Member State;
c
compensation to the participating Member States which have:
1. an official language other than one of the official languages of the EPO;
2. a disproportionately low level of patenting activity; and/or
3. acquired membership of the European Patent Organisation relatively recently.