The Unified Patent Court: A Tool for the Competitiveness of Innovation in the Global Arena

Key Takeaways

The Unified Patent Court (UPC) and the Patent Mediation and Arbitration Centre (PMAC) represent the new specialized European system for patent protection. This system supports national courts without replacing them.
The goal is to overcome divergent decisions across countries and to provide greater consistency and predictability for businesses in an increasingly competitive global context, especially compared to the United States and China.
Italy has successfully secured one of the seats of the UPC Central Division in Milan. Now the inauguration of the PMAC, together with the UPC, represents key tools that provide a broad range of judicial and alternative dispute resolution instruments for resolving disputes, enhancing legal certainty, and supporting investment and innovation, while strengthening Europe’s overall competitiveness.

The following text is an excerpt from the speech by Hon. Simone Billi, President of the Intergroup for the Protection of Technological Innovation, at the conference “The Patent Mediation and Arbitration Centre (PMAC) of the Unified Patent Court (UPC)”, held in Milan on April 21, 2026.

The Unified Patent Court (UPC) is a new international jurisdiction common to the 18 European states that have ratified the founding Agreement, with competence over European patents and unitary patents. The system includes a central division, structured among Paris, Munich, and Milan, supported by a network of local divisions distributed across the contracting countries. Alongside it is the Patent Mediation and Arbitration Centre (PMAC), the center dedicated to alternative dispute resolution — particularly mediation and arbitration — whose inauguration is scheduled for next June.

These are two central elements of a specialized judicial system that is not intended to replace national systems, but to strengthen and make them more effective, especially in an increasingly global economic and technological context. Until today, in fact, the judicial protection of patents in Europe has been exercised at the national level, through independent courts in different countries, with the risk of divergent decisions on the same patent. A model that has guaranteed legal quality and protection of innovation, but which has shown growing limitations with the increase in economic integration and international competition, especially in the enforcement phase.

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The Global Landscape

Today, companies operate in a global and highly competitive context. In the United States, the uniform application of industrial property protection has always been a strategic lever to support technological innovation, economic growth, and the creation of qualified jobs. Other major global players, such as China, are also strengthening their tools for protecting innovation. In this scenario, Italy and Europe cannot afford to fall behind. This is a challenge that individual states can hardly face alone, but which can be managed more effectively through closer cooperation and the creation of common tools. It is in this perspective that the UPC system fits: not as a defensive response, but as a lever to strengthen European competitiveness, offering companies — both European and non-European — a more coherent, integrated, and predictable framework. The first operational data confirm this direction. Since its entry into force on June 1, 2023, the Court has recorded a progressive increase in litigation, a sign that the system is being used and is finding its operational space alongside traditional tools.

At the same time, an initial trend toward concentration of litigation in certain venues is emerging. In particular, about 70% of first-instance proceedings are filed with German divisions. This concentration largely reflects the weight of the German industrial base and the high number of patents linked to that market. It is an understandable dynamic, which however highlights the need to guide the development of the system toward a broader balance among the various venues, enhancing the contribution of all participating countries.

How We Got to the Unified Patent Court

The path that led to the creation of the UPC has been long and complex. The key milestones were: the adoption of the European regulations on the unitary patent in 2012, the signing of the Agreement in 2013, the preparatory work that lasted about a decade, the decisive ratification by Germany in 2023, and finally the entry into force of the system. This demonstrates an essential element: the UPC is not an autonomous institution, but a structure built and governed by the states themselves, through the Administrative Committee, composed of one representative per country.

In this process, Italy has played an active role. As early as 2019, Parliament approved a motion to support the Italian candidacy for the transfer of the division originally planned for London. In 2023, the issue was relaunched through parliamentary hearings and in-depth analyses, up to the political agreement with France and Germany for the assignment to Milan of the section of the central division. In February 2024, the host agreement was finally approved. The presence of a division in Milan represents an important achievement, because it allows the attraction of international litigation, specialized expertise, and investments in the industrial property sector.

An integrated judicial system is indeed a determining factor for attracting investments, encouraging the establishment of companies, and supporting industrial development. In this context, the PMAC represents an additional piece of the system. The Centre will offer alternative dispute resolution tools, which can be activated either before or during a judicial proceeding, allowing the parties to find solutions that are faster, more flexible, and potentially less costly than litigation. These are tools that are particularly relevant for Italian and European small and medium-sized enterprises.

The strengthening of the European patent system is therefore part of a broader strategy, linked to Europe’s ability to compete on the global stage, attract innovation, and retain value within its own economic system. The system is not perfect, but it represents an important step forward. The challenge today is to improve it, consolidate it, and make it grow, while also strengthening Italy’s role within this new balance over time. Because where there is legal certainty, there are investments. And where there are investments, there are jobs and growth.

Note: The opinion expressed in the articles are those of the respective authors and may not reflect the views of the Machiavelli Foundation.

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